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[GUIDE] So, you want to own a business, and make money?


Geo

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  LIBERTY CITY ROLEPLAY

Generating Revenue, Hand Over Fist - A Guide to Business Roleplay


 

Oh, the joys of being a business owner. You pick your own hours, hire anyone you want to, and run your business how you see fit. It's very freeing. However, in a Business-oriented city like Liberty City, you should be aware of some tips and tricks to not only generate revenue, but to efficiently maintain your business. Here's a step by step to get you started in the right direction.

 

Understanding Your Business.

Your business provides some sort of service to your customer (or 'consumer'), this is how revenue is generated, an exchange of services. Business categories that are related based on their primary business activities are called Industries. Every business falls within an industry, but before we dive into that, let's consider the top three services offered in Business that is soon broken up into 'Industries'

  • Business Services - Banks, Environmental, Oil and Gas, Clothing, Insurance, or any company where its services affects more than one consumer (usually belonging to the same company). Example: I hire a company that sends out a Pipeline Surveyor to Survey a Natural Gas Pipeline, which is required in order for development to continue.
  • Social Services - Public Education, Infrastructure, Social Work, Food Banks, Libraries, Police Departments, Fire Departments, Public Transportation, and more. Most if not all of these services are funded by the Government, but really, it is derived from our tax dollars! Example: I collect Welfare because I do not make enough money to feed, clothe, and house myself.
  • Personal Services - Barbers, Hairdressers, Hotels, Tutoring, Childcare, Bars, Personal Trainer, and more. These services are 1:1, where the exchange of goods directly affects the consumer. Example: I buy a Hamburger at Burger Shot on my lunch break.

 

Asset Management.

It is no mystery that companies fail because they are unable to effectively manage their assets. When you start a company, you need to figure out what you need to allocate funds towards. If you procure more assets than you need, you are lengthening the time it takes for you to generate profits. The business owner should evaluate what he or she needs in order to generate revenue, and not procure more assets until your revenue has significantly increased or your company has generated profit. Money should be kept in a Business account at the bank, expenses and asset procurement should be paid from money inside the business bank account. The separation of business and personal assets are now evenly split, and it's easier for bookkeeping purposes. Moreover, businesses are treated as a separate entity, and as such the personal assets of the owner are now sheltered from potential liability (except in the case of gross negligence). 

 

Knowing what makes you money.

Your business should charge the consumer in one of three ways.

  • Hourly - Mainly used for project-based companies. These businesses set a fixed rate and evaluate the amount of time it takes to deliver the product to the consumer. The time it takes is multiplied by the hourly rate, and the consumer is charged. Example - It took me 5 hours to look over your paperwork, and I charge myself out at 100 dollars an hour, you owe me $500.
  • Fixed Price - Fixed Price services charges the same value for a product every day, until its decided that the fixed value is changed. Most Personal Service Businesses charge the consumer at a fixed price, as it is convenient for the business owner to understand the profit margins of the sale against the cost associated with making the product. Example, I pay $3.00 for a cup of coffee. 
  • Value - A unique way of charging your consumer, you charge the consumer based on the worth of the product. There are many factors that determine the worth of a product, and that is usually left to the discretion of the business owner or manufacturer. Example - I buy a $20,000 vehicle from the Car Dealership.

 

Consumer Outreach.

Your business needs to stand out from your competitors. here's some things you can do to get consumers eyes on your business.

  • Socialite Page
  • Advertisements (Either Script wise or Liberty Tree Wise)
  • Partnerships
  • Sales on Goods - People love promotions, offering a percentage of a discount over a short period of time is scientifically proven to generate 10% more consumer interaction.

 

You started generating revenue, how about profit?

Revenue is money coming into your company, profit is the money that's left over once your expenses are paid. Some business owners make $20,000 a day but have $24,000 a day in expenses; this business is not making any money! 

 

When you generate revenue, it is wise to pay off your assets in attempts to start generating profit sooner. If you generate a lot of revenue over a short period of time, business owners are known to allocate additional funding to pay off their assets. The main goal once your business starts making money is to pay off what it owes. Do not procure more assets as you are unaware of where your business will be tomorrow, your safest bet is to allocate your funding to paying off your staff, assets, and other necessities required to run your business. Some business owners risk procuring more product to sell, but that is left to the discretion of the business owner.

 

Profit enters the room!

Congratulations, your assets are either fully paid off or mostly paid off and you are now generating more revenue than you owe! Here's some ways to spend your hard earned profits.

  • Pay raises for staff retention
  • Save for possible downfall in industry.
  • Procurement of more assets (Cars, Buildings, alternative business lines)
  • Increase in marketing dollars to grow your customer base.
  • Hiring on more staff.
  • Pay Fully or Refinance debt.

 

Maintaining Revenue and Profits

Business owners believe that the hardest part of a business is making profits, where the real challenge is maintaining them. In a rapidly changing economy, your business could be making thousands of dollars a day to $10 the next day, so it's important to know where you're at and where you want to be. Here are some tips that help with maintaining revenue and increasing it.

  • Adjust your Pricing Strategy (raise 'em!).
  • Offer Discounts and Rebates
  • Maintain Marketing Strategy
  • Get the consumer to buy more.
  • Get the consumer to buy more frequently.
  • Retarget the consumer.

 

Closing Remarks

Owning a business will be tough here. Unlike neighboring roleplay servers, you've got an economy, loads of competition and taxes to worry about! It's not as simple as making $1,000 when you walk in the door anymore. Business owners will have to be perseverant, smart, and driven to create a realistic market. I hope this guide has provided some guidance to those wanting to obtain a business!

 

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