Help!

I am a CEO of an Enterprise. I am 5,100.00B in debt. My corporations are doing really well. The production is over 100% for each of them and the hiring index is at 100% for all of them. However, I am still in debt. I am not sure what to do. Can anyone give me advice on how to get out of debt?

Wait until your income pays off the debt. If you are not making money make sure you are selling the right products with good wages, trade strategies, and correct supplies quality. CEO debt is not a bad thing.

T

Mr. Morgan,

I second the cry for help. My Enterprise has recently automatically taken and repaid it's first two loans to the tune of 300 Billion in total. Should I not worry overmuch about the debt level, hoping to get enough upgrades/materials on hand to ride out market cycles? What would be a good debt (not level, but what the loans are used for?)

Everything else I've been doing has been benefiting either the corporations at the expense of the enterprise or vice versa.

Any words of wisdom greatly appreciated

Marshal Ney

PS - willing to beg, plead and grovel.

Marshal and Princess Serene,

I have experienced exactly what you two have described. When I began my enterprise (Globex -check it out now), I ran up a debt in excess of $5T.

Initially, I was also hesitant about collecting debt, however after discussing this with several experienced players I found out that to get the required number of corps needed to create a stable, profitable and versatile enterprise needed to both repay the debt and be a long-term investment in the future, I needed to spend big within the first month or two of operation. I kept a strong eye on upgrading, supplied quality, profit-margins and build up to 100 corps (my memory can be faulty) within 3 months which racked up over $5T in debt. I however found that after I stopped building my corps were already profitable enough that my debt ran down to zero in a month (with several small cash injections from my empire). Today, I would aim for 50 corps within two months of setting up.

Debt initially is nothing to be afraid of. Just note that you don't want to get too far into debt, because it is essential that your enterprise make money eventually so it is worth the 30GCs a month. $5T was my maximum, and it eventually worked out perfect.

As for who the profits benefit (Marshal), kinda tricky. My enterprise seems to fluctuate on the same settings- periods of marge growth in corp value (assets) followed by periods of large profits for my enterprise and a relative stagnation if not decline of corp value. Key is to let both parties benefit over time.

Please reply if this has not cleared anything up

Cheers,
T

Thank you for the quick response, Sirrah. I'm at 140 corps now. Biggest problem I'm having to wrap my head around is quality upgrades, and their embedded value. Trying to smooth that out now, so going to try and buy with Enterprise at lower quality for 60 months worth of each product - and then sell to individual corporations, and let the quality and efficiency rise. (more the latter than the former - at least until I can get out of the C3's.)

I'm still unsure if the quality upgrades do anything but put me a bit ahead in the line to sell - and on GR there's a lot of red. If they actually contribute to end product quality, it'll quickly put me out of business? They are supposed to raise corporate welfare, but I haven't seen any production raise in those corps already maxed (well maxed for a single Enterprise owner.)


Many thanks for your time and consideration,
Marshal Ney

never been any good with enterprises I have one but I only use it to buy companies for the country and then move them there and nationalize them. Mine has ALWAYS lost money or doesnt make a profit no matter what i do with it.

Your supply quality is too high.
is stands now on ANY
you should put it to 160 or even 170 and your cost of materials will decline.
your income will remain unchanged.
your profit will increase a lot.

This will take a while as all the materials you have are of a high quality and only new ones will be cheaper and the average will decline over a period of a week or so.

your sales strategy is asking for a higher price than your quality allows for.
this is certainly not helping. you never sell at that price. You may in fact sell for much less.
set it to quality -10 or q -15.

More corporations will help too.

Debt is OK if you invest in new corporations.
profits will grow and you will pay back the loans.

Most enterprises are now profitable.
there are several huge ones that are wavering.
mid size enterprises are profitable if the setting are reasonable.
all the corporations make profit except for ones with very bad setting or a large surplus on the market.

Supply quality being lowered to norms - in both automatic settings and supplies requested.

Concerning sales strategy. If I understand the market mechanics correctly - not selling should lead up to a build up of stock. I was definitely watching for this. But now understand that the automatic settings take priority over the sales strategy entered from the list of corporations page. Will definitely make a change.

New corporations are planned - albeit it a bit slower. I want to tie in getting to level 6 with the necessary indexes in my country as well. (and get a bit better at the econ game.)

Corporations currently extant in a low market demand have been planned for. Both as a foothold in market sectors to keep abreast of fluctuation, and with an eye to future closer participation in Local and Federation markets. As well as an eye to off-world expansion.

Many thanks for your time and consideration,
Marshal Ney

This discussion was started by Princess Serene and I checked that enterprise.

Quality was set to ANY.
It is the reason for reduced profits in that enterprise.

Thanks Andy. Quality of supplies and trade strategies are the two biggest killers of enterprises.

I thank you for your time and information Andy its appreciated

Doh. All well, still good general advice. And most of it applied to me. :P

Princess Serene, my apologies for hi-jacking your advice. (though I still intend to use it. :P)

Andy, not sure I understand this part "your sales strategy is asking for a higher price than your quality allows for.
this is certainly not helping. you never sell at that price. You may in fact sell for much less.
set it to quality -10 or q -15. "

If my Quality is 290, and I try to sell for 370, it won't sell for 370, rather, for much less then 290, is that what you're saying? I kept raising my prices in my corps, and every month, everything sold.

Hoping to also see a response from the GM on your question - here's what info I have in the interim - and my two cents.

There is a market cap. Setting your sales strategy above that won't get you any more funds. 296% of market price is the cap (to the best of my knowledge - I've seen a post or two stating it was actually 333%, but with my data 296 is the better bet.)

Your corporation will not sell goods past that price. And will not keep product offered in stock, but will sell at market cap.

This destroys of course the competitive advantage an Enterprise has as listed in the doc's. (quality to 225, 230 for a 10 shareholder corporation.)

I've not seen a corporation sell goods for less than market cap if sales strategy is set to above. However, I can no longer review recent sales in my corporations.

Understanding "buy all your supplies for above market price, and sell the finished product for below market price." Isn't that non-sensical? Sounds like a great way to reduce profitability.

I think what Andy tries to say is that if you are asking an extreme mark up on a product then the chances of it selling are reduced. If the demand is high enough, shouldnt be a problem, but if demand is dodgy then your product is likely to sit on the shelf and have its price degraded by your trade strategies and your corp will lose money with no income for a month or two. Selling below Q would seem to almost guarantee a sale.

I have lowered my profit margin in a lot of corps and achieve constant sales. But I would rather gamble for larger profits so I dont subscribe to the below Q theory and I rarely even see 'some left' nowadays, let alone 'too high'.

All of my corps always sell everything, at -10%Q or at +75%Q.

Yes, that's what I see too.

I havent really checked to see I am getting the price asked for the higher Q selling, but I am convinced...you wont get over 296 of base. pointless asking for more.

Myself and another looked into this and we were told that on rare severe shortages, like when countries start ordering immediate (which means any quality), then the market might pay over. Otherwise, the cap is there, check for yourselves.

Nod. I can get a maximum price. I don't like the arbitrariness of it, but I get it. Price controls don't work in a free market. I think there are better methods to control prices and market stability.

The GM's I know are working hard to attract and retain new players.

What's going to happen when the economy can no longer rely on the low quality products being interjected into the markets by the computer controlled corporations?

Guess it's time to really get cranking on the supply chains. No quality upgrades at all, max efficiency for easier management, and hopefully a slender profit margin.

I assure you that this reduction in actual sale price compared to (market price * quality) is in play at ALL qualities.

Look closer.

I'm lost. You mean beyond the 20% mandatory reduction?

So are you saying Scarlet, that if I offer at 10 below quality I still wont get market price less 10% but even less?

Yes, Crafty. In fact, I believe that I've already shown the details to you in another thread a while ago.

Hmm, I dont remember that, but that is outrageous imo.

I'll do some checking of my own but its not that simple as you probably know. That is not to say I dont believe you.