What's in the business at startup?
After you've defined your business you have a number of assets you can manage. In principle the company and its resources are configured in such a way that it would (somehow) operate in the market even if you do not vary any parameters. So, what's at your disposal at the very beginning?
- Fixed assets. As a manufacturer you have the plant with production lines, as a distributor or a retailer you have your storage space, stores, shelves, and everything you need for maintenance.
- Cash. It's a starting fund, which you can potentially use to cover losses cause by suboptimal decisions. It should be, however, primarily used to finance your investments!
- Cash + (gross) fixed assets are the initial assets, equal in value to the initial fund. The sum depends on the chosed business form, and it eqials (for businesses set up after Feb 20th, 2018, before this date there have been different methods of calculating the initial fund):
- Manufacturer - 50 million NDL,
- Distributor, retail chain - 20 million NDL,
- Independent retailer - 500 thousand NDL.
- A brand. If you give a name to your company, you automatically create your first brand of the same name.
- Products. As a manufacturer you have defined products you manufacture, one per subcategory you chose. These have the default characteristics, and are named with your first and only brand. Distributors and retailers have listed all products present in the market on the business launch.
- Basic business parameters, like price or shelf allocation that guarantee relatively secure margin level. The supply and sales chain is defined. There are no bonus programs, and no marketing investments.
- No stock. As a manufacturer you begin with empty storage, as a retailer - with empty shelves. You can buy initial stock upfront from your suppliers if you have enough cash.
- No transaction history. Since it's the first day of your operation you do not see any sales or production history. You'll see the first results at the beginning of the next period.
So, go ahead! You might now vary your business parameters or read further to learn about the available game options before you make your first decisions. You are the one deciding on your management style!