10 Things You Should Know Before Starting a Company

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In this article, citizen Assato writes in his newspaper, Assato News some basic tips in starting a company.

Contents

10 Things You Should Know Before Starting a Company

Sure, there are MANY newspapers out there teaching the basics before opening a company. So, to avoid any possible redundancy, I’ll try to be brief.

In this article, I’ll present 10 basic tips everybody should know before opening a company. They’re not ordered by importance or anything like that – I just wrote them as they came to my mind. The main reason why I wrote is that this is a very frequently asked question on the forums - so now I can simply link people to this article.

1) Use an org to manage the company

An org allows your citizen to work, and also provides several other benefits - and it costs only 5 Gold! If you think 5G is expensive, then it's probably not the time to open a company yet...

2) Avoid bad types of companies

By "bad types", I meant:

3) Make sure you have enough money

One of the most common mistakes made by new players is opening a company as soon as they can - with only 20G or so. DON'T DO THIS! Remember, you'll also need money to pay salaries and raw materials, and some extra cash in the beginning for emergencies...

The amount of money required to start depends on many things, and is ultimately quite subjective. In my personal opinion, here's what you should have before starting (not counting the extra 5G needed for the org, if you don't have one yet):

4) Have the recommended number of employees

Having 10 employees for manufacturing or land, and 20 employees for construction ensures you'd have maximum productivity per employee. Sometimes it's worth having over the recommended number - but you should only do it if you're know what you're doing.

5) Have active, high-wellness, employees

Wellness plays an important part of the productivity equation. A high wellness employee can produce even 3x as much as a dying one - and all that for the same salary. So make sure your employees have high wellness (or lower their salaries accordingly)!

There's no means to filter employees by wellness when hiring - so just keep firing until you get what you want. I'd also suggest sending them a message, explaining why you're firing them - many new players don't know about wellness. And sure, if you're hiring people with skill < 3, you can't really expect them to have 90+ wellness either - they probably can't even fight yet!

6) Buy the best raw material

The best raw material (RM) is not always Q1. As a matter of fact, it's almost guaranteed NOT to be Q1. This is because a Q2 RM yields 2xQ1 units; a Q3 = 3xQ1 units, etc.

So, always buy whatever has the cheapest price/quality ratio!

Also, with the help of an org, you can also buy RM from another country and donate it to your company - which might be cheaper than buying local.

7) Know your production cost

Either by using a company calculator, or by manually calculating it with the formula, knowing your production cost is very important. It allows you to know what price you can sell for, and what you can't afford.

If your production cost is too high (compared to market prices), try to lower it - or deactivate the company for a while.

8) Check import taxes when buying licenses

If you decide to buy an license (EL), make sure you understand how import taxes work, and what the taxes for the target country are. Many countries will have 99% import taxes for some product or other - make sure you DON'T buy a license in that case!

Also, only buy an EL if you're absolutely sure it will be a good thing, in many cases (even with low import taxes) it's just not worth it.

9) Sell your stock before upgrading

Remember that when you upgrade, you'll lose whatever stock you have. You'll also lose unfinished products - which hardly matters for companies such as food, weapons or raw materials - but can mean a lot for constructions!

You won't lose your raw material stock (for manufacturing and construction companies), so don't worry about that :)

10) Invest money in your company!

In order to pay salaries, upgrade and buy licenses, you must invest money in the company - using the "Finance" button on the company page.

Also, remember that by using the "collect" feature, you pay income taxes. There are ways to evade this tax, but I won't discuss it here...


Ok, that's it! Finally, it should be noted that these are only guidelines - some of which are even based solely on my opinion. If for some reason you disagree with something - then by all means feel free to ignore my tip. :)

In future articles I'll make a more thorough analysis of other details of company management (and other things).

If you liked it, please vote and subscribe :)

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