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In this episode, I had set out to build on to my next venture. Interest rates tend to go up to 10% or more and it becomes very expensive to keep borrowing. Paying $5m in interest rates every month really requires you to make more than 10% profit on the loans you are taking to make a profit. So the next best thing was to issue shares. That is why Share-ing is Caring!
Lessons learned in Share-ing is Caring:
1. Get the best resources available
To have an edge, get the highest quality mine you can find. If you are not planning on building factories just yet, just build a mine and keep it for yourself before someone jumps in. Also, make sure that you start selling just to cover costs while you are waiting to expand and begin to use your mine.
2. Enter empty markets
Empty markets have the advantage of you being the sole person there until someone comes in. If you want to get fast and good results, target the easiest items to manufacture (require 1 input) and see which place has the least market share taken. Leather Briefcase and Chair are examples of 2 places I manage to quickly gain huge revenue as there was little to no competition there.
3. Share-ing is Caring
Think of it this way, invest in the future by giving yourself a salary every month. The reason I say this is because I was always using my monthly profits to reinvest into my business and when I ran out of money I had nowhere to go. Thanks to the sub-goal my player got a $10m reward. By diluting my shares and issuing them, I raised $7m to keep afloat for the month while the profit kicked in and then used my player to buy back the shares $7m worth. This way I transferred my own money to my company. By giving yourself a salary you have an opportunity to save money for when you need it and this way you avoid losing shares or paying interest.
What do you think? Leave a comment below.
Also See: Mistakes to avoid in the Food and Beverage Scenario
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