Okay, so I have tried to structure my company to be self-sustaining. I want to produce my own water, power, steel, stone, wood, and seeds. I feel this is the ultimate solution to long-term growth and prosperity, because it releases you from the bonds of the market completely.
I have selected a few products to sell for cash in stores, and I have a small oil/gas/store operation up and running, so I am producing revenue from those, as well as selling some overages in the market, when the price is right, I have managed to stabilize my profit/loss, and stop seeing pages full of red on my account sheet.
Being this is a new game, and I am in the earliest stages, I am wondering if it's normal to have problems growing your company like this? I can produce very well, but it seems I am using almost all I can produce, to expand and grow my company, so my balance of cash keeps dropping, day after day after day! Yeah, I can make a little here and there, but what I make is quickly spent in expansion costs as well as the resources I am producing, there is nothing left.
I guess what I am trying to get to, is the issue of when/how best to expand and research? Is it normal to reach a point where you just don't expand or research any, and allow your production to only generate more cash through the market? You still will have production costs, but if you market well, you should generate a good revenue, but is this wise? Would it be better to spend all you can on expansion and research along the way, even if you are spending money like Donald Trump at a wig convention? Is it better to reach a level of production and take a break, let your assets catch up, and then expand some more? Thoughts from the Guru's?
Is this normal?
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Guest
Not a Guru but
I am quite new (a week) and started the game three times:
1. The Tutorial
After recognising that Apples and Oranges will never produce good money, I tryed it anew.
2. Full Gas Line
I started with Power Plant and Well, added Well Research to produce better Oil.
I found myself needing money, so I sold some steel.
Built Factory to produce Gas and Chemical Reserearch to produce better Gas.
I had NO MONEY to build Gas Store and selling it on free market was not so good, so I tryed it again from top.
3. Gas Stores, Full Line later
I built 3 Gas stores (Germany, France, Turkey) and am buying Gas on the market and selling it for double price. This makes me enough money to invest to Advertisements (found a partner speaking the same native language and he is sending contracts on demand) and it seems to work. Will see.
1. The Tutorial
After recognising that Apples and Oranges will never produce good money, I tryed it anew.
2. Full Gas Line
I started with Power Plant and Well, added Well Research to produce better Oil.
I found myself needing money, so I sold some steel.
Built Factory to produce Gas and Chemical Reserearch to produce better Gas.
I had NO MONEY to build Gas Store and selling it on free market was not so good, so I tryed it again from top.
3. Gas Stores, Full Line later
I built 3 Gas stores (Germany, France, Turkey) and am buying Gas on the market and selling it for double price. This makes me enough money to invest to Advertisements (found a partner speaking the same native language and he is sending contracts on demand) and it seems to work. Will see.
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Guest
Well just see from this point:
What do you want to do with your money if not reinvesting it?
Different people may have different goals on what to achieve in this game, but growing your company and making more money is something probably everybody wants. To do this you need to invest your money, either by using it to resarch or to expand your production- or selling-capacities.
If i want to build a new building i do so the time i have enough cash to build it (and enough reserve to keep my production going), why should i waste time in waiting?
There is really no point in having laying huge sum of cash lying around if you don't want to become Nr.1 in the cash-stat or aren't saving for some big deal.
Also, there is the "goal" of becoming manager. With the level of manager you get the ability to sell buildings to other players and to sell technologies to other players. Two abilities which increase your flexibility and open up new buisness models. Reaching this level as fast as possible is also something many people strive for.
If you are concerned because the finances-sheet in your office shows you a loss, this is normal, because your starting capital isn't listed on the income-side (where it should be).
Use the increasement in company-value (sum of cash and fixed assets) from day to day as an indicator on how well you are doing.
What do you want to do with your money if not reinvesting it?
Different people may have different goals on what to achieve in this game, but growing your company and making more money is something probably everybody wants. To do this you need to invest your money, either by using it to resarch or to expand your production- or selling-capacities.
If i want to build a new building i do so the time i have enough cash to build it (and enough reserve to keep my production going), why should i waste time in waiting?
There is really no point in having laying huge sum of cash lying around if you don't want to become Nr.1 in the cash-stat or aren't saving for some big deal.
Also, there is the "goal" of becoming manager. With the level of manager you get the ability to sell buildings to other players and to sell technologies to other players. Two abilities which increase your flexibility and open up new buisness models. Reaching this level as fast as possible is also something many people strive for.
If you are concerned because the finances-sheet in your office shows you a loss, this is normal, because your starting capital isn't listed on the income-side (where it should be).
Use the increasement in company-value (sum of cash and fixed assets) from day to day as an indicator on how well you are doing.
Yes, I agree with MagicMagor. At the beginning you have to invest as much caps as you can into construction/ expansion. Research is also important, in order to achieve better prices, but in my opinion construction/ expansion is even more worth. So I would not stop expanding respectively getting more production/ sales facilities. The more you have, the faster your profit will flow onto your account 
The first time is hard. You will only see little steps and profits. But this does not last long. You will soon be able to build up a stock of products, invest in advertising and maybe build up the next branch you want to have.
It will also take some time until the prices on the market find their exact place... there are huge differences at the moment. But then you will get the feeling for products which are profitable and those which are not worth trading with and find "your production line". (I am doing it like you: I want to become independent from any contests, bulk purchases or strikes) But that means: if you expand e.g. your chemicals production, you will become short of power and have to expand there... this expansion will be one of the major tasks during the whole game)
The first time is hard. You will only see little steps and profits. But this does not last long. You will soon be able to build up a stock of products, invest in advertising and maybe build up the next branch you want to have.
It will also take some time until the prices on the market find their exact place... there are huge differences at the moment. But then you will get the feeling for products which are profitable and those which are not worth trading with and find "your production line". (I am doing it like you: I want to become independent from any contests, bulk purchases or strikes) But that means: if you expand e.g. your chemicals production, you will become short of power and have to expand there... this expansion will be one of the major tasks during the whole game)
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Guest
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Guest
Thanks, that was what I was getting at. I feel like I have expanded as much as I can afford to at the moment, and I need to generate some cash before moving further ahead. I also think I need to watch how my production line is working (timing) to get the right combinations going in and coming out. It is important to have your plantations, mines and wells, producing resources at a rate which fits with your ability to produce or sell them, otherwise you always run short or have stockpiles growing, which you are wasting money producing, when you could be expanding.Dwarf wrote:And perhaps your mistake is, that you are expanding too much? You should sell your products just one or two days to earn some money - than it should work
This way, I can see better what needs expanding, production, mines, plantations, stores, or whatever. It has taken some time to get adjusted to production times, as some things take much longer than others to produce. In more complex products, I am sure this is vitally important to consider.
I understand what MM is saying, if you aren't trying to be No.1 in total cash, why hoard it? My issue became cash flow, I could produce enough to expand my company, but these resources were being used to expand, and not generate revenue, therefore, after a while, production expenses start becoming a factor, and no revenue means no caps.
I love expanding and research, but let's face it, in the early days, it doesn't put bacon on the table, it literally sucks your account dry. When I first started, it was a no-brainer, if I had enough to pay for expansion and the resources, I did it, without hesitation. Now, as research becomes higher and more time consuming, I have had to really contemplate new research, and plan it around revenue gains, instead of just doing it.
What I guess I wanted to know was, is there a such thing as growing too much too fast? When should you slow down expansion a little, and let things stabilize, or should you? Obviously, if you've spent all your money, you have no choice, but is there a point where you should start thinking this way... I mean, it does no good to have 20 factories all expanded, and no money to produce anything in them.
Right now, my cash is stable at about 10% of fixed assets, I am not making a whole ton of money, because I am spending it almost as fast as I make it on expanding and research. I can maintain this 10% level for a while and just let my company gradually grow, or I can stop expanding and build up a little cash to expand later... but which is best?
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Guest
Is a chicken and egg story i supposed, money grow money. In order to break even faster, more money should be pump in to generate more profit. But to pump in more money, you just need to bare with the red financial, furthermore, a starting capital of 640K is significantly a lot. Put it in another perspective, if it took you erm, perhaps 3 days in order for you to built another 200K building, then probably, you just need to repeat that cycle for 4 days to gain back your capital investment, and whatever you earn for day 5 onwards can be reinvested as your investment. But this only will happen if you are planning to play it like if the money its real, because you can't really give back the creator your initial investment i supposed 
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Guest
Well, since I had the chance to get coins, I chose expansion over producing to sell first. I have expanded my factory as well as a mine and I've also built many buildings of the same type.
My expansion is stopped at the moment because the cost of the construction materials have significantly increased. In order to continue my expansion, I now produce my own raw materials but it still takes time.
I only sold oil before in the market since I was producing it in 5000 batches at a time. I don't mind that the turnover is slow, since I am willing to wait 2-3 days before the production is finished then i put them on the market in bulk. I find it easier to sell that way. Its good that the warehouse inventory doesn't have an "expiry date" because it helps me to just stock up and put it in the market in one sweep.
My expansion is stopped at the moment because the cost of the construction materials have significantly increased. In order to continue my expansion, I now produce my own raw materials but it still takes time.
I only sold oil before in the market since I was producing it in 5000 batches at a time. I don't mind that the turnover is slow, since I am willing to wait 2-3 days before the production is finished then i put them on the market in bulk. I find it easier to sell that way. Its good that the warehouse inventory doesn't have an "expiry date" because it helps me to just stock up and put it in the market in one sweep.
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Guest
H-B, it seems you should clarify the problema little bit more. As MM stated, what is the purpose of your profit other than to reinvest it. You act as if profit reinvested is not profit, but that is not true. All profit that you invest in new buildings or expansions increases the net value of your company aand your ability to make profit (if you planned them well). And all production costs are returned and more in the sale of your products.
I think what you are really trying to say is, in what way should you reinvest your kaps. To that I would say, you already know the answer. If you can afford new building and that new building will bring you more profit than you are making now, you should buy it.
The only tricky part is finding out what new building will bring you the most profit that you can afford. Sometimes, I will wait longer to buy a more expensive building that will bring me more profit in the future. Also, before you expand, consider that it is sometimes cheaper (and more flexible) to build a second building than to expand the one you've got. You just have to run the numbers and see.
And of course, always make sure you have a decent amount of kaps on hand to cover production costs or you will stall out your company. Just consider it your cash reserves and don't allow your self to spend it on anything besides production. I often keep all my production buildings running with 24-48 hours worth of work just so I don't even see this cash in my pocket and am not tempted to spend it. Then I can always cancel a production if I want to change it or need a little extra money.
So in the end, the question is not "Am I growing too fast" but rather "Am I growing as fast as possible in a way that maintains future growth?"
I think what you are really trying to say is, in what way should you reinvest your kaps. To that I would say, you already know the answer. If you can afford new building and that new building will bring you more profit than you are making now, you should buy it.
The only tricky part is finding out what new building will bring you the most profit that you can afford. Sometimes, I will wait longer to buy a more expensive building that will bring me more profit in the future. Also, before you expand, consider that it is sometimes cheaper (and more flexible) to build a second building than to expand the one you've got. You just have to run the numbers and see.
And of course, always make sure you have a decent amount of kaps on hand to cover production costs or you will stall out your company. Just consider it your cash reserves and don't allow your self to spend it on anything besides production. I often keep all my production buildings running with 24-48 hours worth of work just so I don't even see this cash in my pocket and am not tempted to spend it. Then I can always cancel a production if I want to change it or need a little extra money.
So in the end, the question is not "Am I growing too fast" but rather "Am I growing as fast as possible in a way that maintains future growth?"
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Guest
And of course, always make sure you have a decent amount of kaps on hand to cover production costs or you will stall out your company. Just consider it your cash reserves and don't allow your self to spend it on anything besides production.
This was the problem, I reached a point where my production costs were eating me up, I could produce materials to expand, and a few to sell on market, but expansion takes both material and money, and if you are using the material to expand, you aren't making profit from it.
I understand the overall philosophical question of growth, of course you want to grow as rapidly as you possibly can, which will produce more profit for your company, but I hit this snag at about 2 weeks, where I couldn't really afford to keep doing what I was doing, my bank account wouldn't allow it. I just wondered if that was normal, if you typically build to a certain level and then rest a while, so your company earns back some of the money it spent on expanding, and replenishes the bank account a little, before expanding further. As I said, it does no good to build and expand 20 factories, then have no money to produce anything in them. I can afford to expand some more now, but if I do, I will not have the capital for production costs, so I am not expanding, even though I have the resources and cash (barely) to do it. I need to sell some stuff first, and tweak my formulas for production, and maybe in a few days, the expansion will not seem so daunting. Does that make sense? Is that normal?
This was the problem, I reached a point where my production costs were eating me up, I could produce materials to expand, and a few to sell on market, but expansion takes both material and money, and if you are using the material to expand, you aren't making profit from it.
I understand the overall philosophical question of growth, of course you want to grow as rapidly as you possibly can, which will produce more profit for your company, but I hit this snag at about 2 weeks, where I couldn't really afford to keep doing what I was doing, my bank account wouldn't allow it. I just wondered if that was normal, if you typically build to a certain level and then rest a while, so your company earns back some of the money it spent on expanding, and replenishes the bank account a little, before expanding further. As I said, it does no good to build and expand 20 factories, then have no money to produce anything in them. I can afford to expand some more now, but if I do, I will not have the capital for production costs, so I am not expanding, even though I have the resources and cash (barely) to do it. I need to sell some stuff first, and tweak my formulas for production, and maybe in a few days, the expansion will not seem so daunting. Does that make sense? Is that normal?