Business questions

Hello eBelgians!
I have some questions about opening own business:
1. What is better - to buy someone's company or to create a new one?
2. Is there a big risk to fail business by buying company?
3. If I start business as soon as I have enough gold but without any money reserves will I have a lot of risk?
4. Which area of business is the best to start with?

Greets,

YaroslavK

I will answer your questions as good as I know the answers
1. Buying might be better looking at the price. If someones sells a company with a lot of resources, money, products, export licenses and maybe even good workers. It might be worth the extra money. It all depends on what is present.
2. I think my answer of 1 also solves this one.
3. You need quite some money reserves to operate, otherwise you will not be able to function. Of course you could use the new rules and only work in your own company. But if you want to run a real business I would guess you will need between 5-10 gold to operate. If the economy does not get ruined completly again by the 'fake businesses'
4. No idea, I think a food company might be interesting because you can use your own produced cheap food to get better fast

Hope this helped you already. But I hope some real economists will help you out as well

1. the general rule is, if you buy one on the market, that it's price has to be 10G or less for a Q1 company. Unless you know for a fact that there are stocks or export licenses of course.
2.You haven't got more risk than when you create one. And the risk is LOW. The only money you can lose is the money you invested in the company, so no creditors who hunt you down like in RL
3. If you buy a RAW, then you won't need a money reserve (if you work solely with the manager-work option). If you buy a secondary business or you want employees, you'll need money (to pay your employees and/or buy your RAW materials
4. I don't follow all markets and since there is a war the market prices aren't what they would be in peace time (peace is what we have the most in eBe, use to have anyway), but the grain has a good price for a while now.

hopefully this answers some of your questions

Thanks a lot:)
I think I will make a business a little bit later
Now I am going to work hard and lvl up to make more money and gold

Concidering I run 3 fully operating buisnesses, I should hopefully be qualified to answer these.

1. It depends on what companies are avaliable. If you calculate the exact value of the company's assets and it's still cheaper than making a brand new one then go for it. Otherwise don't bother.

Also, don't include export licences as their full 20 gold in your valuation. even if a company has like 10 of them, it's likely only 1 or 2 will be profitable. If you want to include them, you will have to be able to calculate the amount of profit each one is likely to bring you.

2. There's no more risk than making one. As frostie said, you can't loose anything you don't invest directly into your company (for now, there are rumours that this will change at some point) but the success rate is rather low in first companys since you usually don't know a huge amount about how to make them profitable.

3. You will need reserves. My rule in my raw companies is to keep enough assets in the company to last for 3 days on its own. As you will probably be slightly less active than me at the moment, you might want to have a bit more though. Also, you have to concider that manufacturing companys requite more starting capital than raw companys as the demand is much more irregular. In raws, you can usually expect to sell the vast majority of your produce the day it is made, in manufacturing, it can sometimes take several days to shift it.

4. For a first company, raws. They are by far the easiest (hence I run 3 of them) as the demand is much more regular and you only have to keep the company stocked up with money for wages, instead of worrying about having enough raws aswell. Iron and grain are quite similar in terms of profitability at the moment, so it doesn't matter too much which you go for.

You can also just have a manager-only company, which will make it all a lot easier, but they are usually frownd upon unless they are for self-use.

It is impossible not to make profit in these dark times
As long as you are working with the work as manager feature, the onliest thing you will see is lots of BEF going your way

I hate the lowering of the needed amount of gold to start a company, now all markets get waved with new companies and company owners who have not the slightest clue what to do
In the past these managers would go bankrupt, but now it is almost impossible to go bankrupt

There is only 1 solution, communism ^^.

Jofroi wrote:There is only 1 solution, communism ^^.

true, this game is totally supporting communism