Business System

[ChillBilly 72]

Hey Guys,

I thought I would share with you a little guide I designed a few years ago for businesses in Arma 3 Life. It's a simple business model that worked pretty well. It's more or less an algorithm for any business you choose to make. It allows for your employees to be paid, and will minimize them breaking off for sole profit. It is purposely written so that anyone can understand.

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Business Model System

This is the business model system for maximum efficiency for any business. This model uses a percentage based pay and is designed to be easily modified and easily implemented.

Here is the Key for the following guide:

A- Overhead (This is the money you need to cover your expenses)

B- Profit (This is the money you make after your initial investment has been covered)

C- Employee Payroll (This is the money for you to pay your employees)

D- Investors Payroll (This is the money to pay your investors)

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Generally speaking you need to arrange all of your investors payroll and your employee payroll to only come from your profits. It is important to remember what your total investment is, your profit, and your payroll. Be sure that you keep an eye on your finances.

• This is an example of the business model:

Your total Overhead (A) is $1000

You have one investor, who has invested $1000 into your business in exchange for 5% of your profit (B). This places a $20,000 valuation on your company.

You have one employee plus yourself. Your employees and investors make 5% of your profits. From 100% of your profit (B), you now owe 10%, which leaves you with 90% of your profit.

Your profit is $5000. This means that $250 goes to your investor, $250 goes to your employees. 90% of your profit or $4500 is now left over.

You invest $2000 into your Overhead this time. You have the same amount of investors. Your company's valuation is still only $20,000.

You have gained another employee plus yourself.

You have banked $2500.

If your profit from a $1000 investment was $5000, this means you made $6000 from the total investment. In turn you expect to make double because of your investment of $2000. This puts you at a $10,000 profit. 5% of $10,000 is $500. You pay your employees $500 and your investor $500. This leaves you with a total of $9000 profit.

This algorithm is a progressive system. You do not have to pay any specific percentage, I was simply explaining the math with the easy percentages.

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Q: Why would someone work for me, if they could make the same amount as me?

A: Your employee pays no overhead, he uses your equipment, he uses your services, he uses your resources. He has no risk involved. If he is robbed, it is not his money he is losing. (Or She).

Also, your employee will scale with more employees and more profit. Whereas if he were to do it all on his own, he would make the same singular profit without the ability to scale, unless he were to create his own company. (Or She).

Not to mention, you could promote the employee to making more of a percentage.

Q: Why not split the profits evenly?

A: You can do that! Except you do need to take out your next expenses before dividing up the profit. Always cover your next venture.

Q: Why bank the money?

A: The reason for banking your money is insurance. If you are robbed, or an expensive piece of equipment is lost, stolen, or broken, you need to be able to cover those expenses. You pay yourself, the same amount as you pay your employees. You bank the remainder for upgrades and incidentals.

Q: Is this the only system that works?

A: Heavens no. There are many different systems that work, this is just an easy one to start with until you get your feet wet.

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Should you have any questions, or anything you would like to add to this guide (Business Model) please reply and leave a comment.

[JamesLuck01 1,531]

@HairyGrenade  I think maybe pin this as it can be very useful. Up to you but its a great and simple guide/ system.

[Arcanion 52]

This seems to be a extremely well worked out model. The main issue is the proper work of the employee. After a while trolls get in and fuck up the reputation you build up.

[uncannierlink 225]

On 11/16/2016 at 3:52 PM, Arcanion said:

This seems to be a extremely well worked out model. The main issue is the proper work of the employee. After a while trolls get in and fuck up the reputation you build up.

That's why you have an extensive hiring process and job interview.

[Indoorseeker 32]

@ChillBilly Thanks for sharing this model. It's simple and flexible. I think the community will greatly benefit from your help. 

Family First, Mission Always. Stay Safe. 

[R0m4n0 9]

Very good model.

[NecroIgy 20]

this model reminds me of BTEC business in school

 

[Honestii 16]

Thank you, this will help all f us, especially me.

[Xilvius 32]

That's a really well put together business model and realistically applicable to the real-world. Two thumbs up.

[WhosTheDaddy 12]

On 12/5/2016 at 9:37 PM, uncannierlink said:

That's why you have an extensive hiring process and job interview.

Yeah would be good to have the Job Interview to make sure somebody with a criminal record isn't joining the crew lol 

[SupremeLeader 127]

Good business model!

[Moselk 6]

This model is similar to Bussiness school and it works in real life , try it

[NyanRadscorpion 77]

Nice system!

[Genesai 298]

Economics 101. Nice reminder! It's well written out and made very clear, so anyone over the age of 12 can grasp this.

Thanks again! Well worth the sticky.

[Rauxa9 5]

So we are allowed to come up with whatever business (realistically) that we choose in this game? Or is it limited to the amount of assets the game already has?

Could there be an in-game asset creator that could compensate on the devs having to make specific assets for specific player ran companies? Tutorial included?

Owning a business in this game seems like a neat concept, given that theres no real life consequences lol, but id like to know more details about owning one when the game gets to that phase.

[Cstove 374]

There are four main cooperation types that the devs are creating systems for, these are: Delivery, legal, transportation, and manufacturing. You may also own store fronts that can sell a variety of goods.

You can read more about this here: https://www.identityrpg.com/info/corp/

 

[Nicolas 7]

This is so cool, really good job man!

[ChillBilly 72]

I know this is an old post, yet it got the coveted "sticky." The business model still works, hopefully soon we should be able to test it in identity. C'mon Motown!