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Business Board

Started by nedalezz, August 16, 2011, 12:00:35 PM

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nedalezz

In order not to clutter the other boards, please put all your business dealings here! This could be, but not limited to, if you're looking to sell your land, buy another persons land, etc.

nedalezz

So we've had a very first business deal go down!

To summarize, the Terrell family has sold all of its land (1 Jalmi Lane - 4x4 and 14 Corner Street - 1x1), along with a Market Stall worth $1,000, for a total of $22,000. The original listed price was $20,000, but the Woynitsch family countered with an offer that included $18,000 upfront and $4,000 in 6 months due to lack of funds currently.

Adella Woynitsch is now proud owner of 2 promising pieces of land - the larger one has a farm currently on it, while the smaller one has a Market Stall. The $4,000 will be loaned to her by her husband Nemanya Woynitsch next turn. As of now, Adella owns all but word has it she will sell the smaller land and the Market Stall to her trader husband. If she will keep the farm or clear the land for development is yet unknown.

nedalezz

Michael Areameder (marsh) has 1x1 plot in the CBD that he's looking to rent out. Since you are interested in setting up a stall, I recommend renting it out from him for the ongoing price of $500 a turn (Market Stall on you, ofcourse!)

benedict

Was this directed at me (Adam Baker)?

If so, that sounds like a good deal - prime location for Baker's Goods.
Click on the banner to celebrate!

nemanjanv7

Adella is serious about farming. She has no loans and wants to enter huge business venture. What she doesn't know yet is:

1. A tractor is needed for land larger then 2.500 sqm. But when is the second tractor required?
2. How does it affect productivity?
3. When land is bought, how much does it cost you to seed fruit or vegetables?
4. Does tractor add up more expenses and how much does tractor maintenance cost?

After your answer (and if i value it profitable) I wish to enter negotiations of this business deal 
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Nemanya

nedalezz

benedict: Yes, it was directed at Adam Baker :) Once Michael Areameder gives the confirmation, we'll get that stall set up.

nemanjanv7: I still have to sit and work out the details of how the tractor will increase productivity (I will do it soon!), but I will make sure the numbers are fair. When the land is bought, there is no set up cost - that is included in the Maintenance expense of the farm. The Tractor will have its own maintenance expenses, and will depreciate over time to half its value (reflected in assets.) Once I get the numbers figured, I'll be sure to let you know ASAP!

nemanjanv7

Adella wanted to take out  a loan on $125.000 (I don't know what her borrowing power is) to buy a tractor and 10x10 land (10.000 sqm). As I understood for such a big parcel I need only one tractor, 4 workers, $4.000 maintenance. I wish to negotiate terms of this loan. Maybe extend the length of loan. But it's yet unknown to be how Rawa'a bank operates it's business ventures.

Please let me know what's Adella's Borrowing power and how many plots can 1 tractor operate.

If possible it would be wisest to buy as many plots as a tractor can operate to achieve economy of scales.

Ned I will let you on ON Adella's plans because I speak English better than her.
- I take part in The Dunya Project Thumbs up for Nedalezz :)
- Favorite MD: The Winding River Project

Nemanya

nedalezz

The Bank of Dunya is willing to grant Adella a loan of up to $100,000, subject to approval after the presentation of the business plan. A tractor is needed for every 5x5 plot (for ex. 1 for 5x5, 2 for 10x10, 3 for 15x15, etc). Additionally, for each 2,500 sq. meters, Adella will need one employee, so she would be looking at 4 employees. Obviously, the bigger the land gets, the more profit she will receive. I havent worked out the details yet, but a Tractor will DEFINITELY increase the production of a farm (albeit something minor.)

For loans that involve land, the Bank of Dunya has a standard policy of 12.5 years (25 turns), and for loans that dont involve land, it is reduced to 10 years (20 turns.)

nemanjanv7

Hmh, I guess Adella will look for better investment than that:

- 5X5 = 2.500 sqm = $25.000
- a tractor will cost me another $25.000
- It means that my loan will have to be $50.000, hence the turn expenses will be $2.400 for that loan
- caretaker and land maintenance = $3.300 (rounded)
- Total business expenses = $5.700
- Expected income = $6.000
- Total operating profit = $300 (This doesn't include benefits and maintenance of tractor because they are unknown as of yet. In order for this to be profitable tractor must bring about huge productivity raise - not minor!!! But it's logical: with tractor it's much easier and a lot faster)
- The worst part is that you can't achieve economy of scales. I wish tractors can operate at least up to 15x15  :(
- That also means if I take $100.000 loan and buy two parcels I only achieve $600 profit. That is only 0.5% return on assets per turn  :thumbsdown:
- So unless Dunya comes around with a better offer, Adella is withdrawing from fruit/vegetable investment.
_______________________________________________________________________________________

Please give me a briefing on investments in [/color]fish and meatbusinesses for a government employee and also how does [/color]renting land work? Do I only rent it to other players or NPCs as well. And what incomes can I expect per plot of rented land (also I hope it's more expensive to rent near CBD)

Thank you and sorry for my long posts. I like these economic stuff a lot as you can see  ;D


- I take part in The Dunya Project Thumbs up for Nedalezz :)
- Favorite MD: The Winding River Project

Nemanya

nedalezz

Well, if Adella decides to invest in farmland, this will be the deal:

If she buys 5x5 land, she won't need a tractor. Tractor are only needed for lands bigger than that.

If she has 2 5x5 lands, her normal output would be $10,000 a turn. She has expenses of $5,856 a turn, including 2 employees and maintenance. If she took a $50,000 loan, that would roughly equal $8,200 a turn. Her output will sell for a minimum of $12,000, so it actually equals to around $3,800 in profit!

If Adella is interested in buying larger land inland to be used for farming purposes, the government has an initiative where it can offer a Tractor and a 10x10 land for $100,000. If that would be the case then:

$24,000 (harvest + 20% markup) - $4,800 (loan) - $9,152 (employees) - $4,000 (farm maintenance) = $6,136.

This obviously is excluding the benefit or expenses of a tractor, which the benefits would obviously be more.


nemanjanv7

#10
It was a pleasure doing business with Rawa'a. Consider the offer ACCEPTED (A tractor and a 10x10 land for $100.000). How is government going to subside the six month where Adella won't sell any goods? Will government subside it fully, partly or not. If not I hope bank will at least give me a grace period of 2-3 turns.

- I take part in The Dunya Project Thumbs up for Nedalezz :)
- Favorite MD: The Winding River Project

Nemanya

nedalezz

Upon further review of the numbers, it looks like Mrs. Woynitsch will be in the red for quite a few months, maybe even a year. The Bank of Dunya, with permission from the King, has granted Mrs. Woynitsch a grace period of 1 year without loan payments (Turn 13 and Turn 14), but will be taking $5,218 a turn for 23 turns instead of $4,800 for 25 after the grace period is through!

nemanjanv7

Fair enough  ;)

Just to check, when will be the first time the fruits and vegetables from Adella's new farms gonna be sold (which turn, 14 or 15)?

And can you upload a bigger map of Rawa'a so Adella can pick those 10x10 lands? (Grid ON would be helpful  ;) )
- I take part in The Dunya Project Thumbs up for Nedalezz :)
- Favorite MD: The Winding River Project

Nemanya

nedalezz

The fruits will begin getting sold in Turn 14.

As for the land, since it is an offer from the government, they will present her with the land! I will take a picture in Turn 14 :)

nemanjanv7

I would like to have a word with Dave Davis.

I have two proposals for you. One is safer and the other is riskier:

1. I would like to loan $40.000 from you, Davis. I would return $48.000 to you in 10 turns (20% interest). Obviously, that is $4.800 per turn.

or

2. We invest in a showroom and goods together. $51.000 costs a showroom with 1x1 plot and 50.000+2.500 taxes = $52.500. That is a total of $103.500. Since I don't have any money with me I would take a 10 turns long loan from you of $51.750. With this setting you would earn $13.860 for the first 10 turns and $7.650 after I pay back the loan.
This way we will be equal shareholders of the new showcase in Rawa'a.

Of course I hope Nedalezz has nothing against this joint venture. And Ned since I am a trader, Davis will not have any penalties (as he is a fisherman) for this showcase as I will manage it personally! Right?
- I take part in The Dunya Project Thumbs up for Nedalezz :)
- Favorite MD: The Winding River Project

Nemanya

nemanjanv7


Nedalezz,
Can you tell me if the land value of 4x4 farm on Jalmi lane is also $3.000 per plot. It is CBD, right. It's next to king's residents.
It would mean that the land costs $48.000 total.


- If that's the case, Adella would like to sell 10 plots for $30.000
- The 4 plots (3x2) would remain on the corner of Edward Ezamsi street (2 plots) and Jalmi Lane (3 plots). I would feel bad if I sold all the land on such prosperous part of city.
- So now Adella has +30.000. She was wondering if she could buy 5x5 farming land next to her 10x10 land. Can that one tractor work on 12.500 sqm of adjacent land?
- If I am wrong, please let me know so I can thing of a better plan.


P.S. I posted another business proposal for Dave Davis, but he hasn't replied yet. Anyway is such deal feasible (the second deal)



- I take part in The Dunya Project Thumbs up for Nedalezz :)
- Favorite MD: The Winding River Project

Nemanya

nedalezz

The Jalmi Lane plot's assessed value is $32,000 - My guess is it will go higher the next few turns, but again, thats circumstantial. As it currently stands, the official value is $2,000 per plot, so 10 plots would be sold for $20,000.

If the land is on the market, it will go on the Business Board - if after a turn no one expresses interest, then the government can step in and buy it (if it has interest in it.) If, after 2 turns, there is still no takers, I will look and see if there is any NPC with the kind of money that would be interested in such an acquisition.

As for the Tractor, I have decided to switch up the requirements a bit. Basically, the way it will work is that for every 10,000 sq. meters of farmland ones owns, he needs a Tractor. So in Adella's case, she would need 2. Each Tractor covers 10,000 sq. meter of farmland in terms of increased productivity, so the the 2 that Adella would own will still only give 3% on total productivity. Now, if Adella was to purchase an extra Tractor, that would add another 3% increased productivity on 10,000 sq. meters, while the other 2,500 would still only get 3%. The cap for increased productivity per 10,000 sq. meters is 12% (or 4 Tractors.)

As for the Davis proposal, he'd have to get back to you himself! :)

nemanjanv7

- uff, she isn't giving that land for $20.000. I am placing it under auction starting from $25.000 (The price of that land will skyrocket anyways. It's on one of the main streets and who knows, maybe government will want to build something nice in that location).


- Any government employee that has $31.000 just sitting there and losing it's value, I would gladly take that money from you and return 3.720 per turn for 10 turns ($37.200). 20% profit in 10 turns. I guess Nick Teller has such wealth.
* For LESS then 30.000 I would offer less interest. Since our bank of Rawa's still hasn't developed a term deposit service, I'd be very glad the help the folks of Rawa'a  :D   
and don't worry, I have coverage in lands ;)
- I take part in The Dunya Project Thumbs up for Nedalezz :)
- Favorite MD: The Winding River Project

Nemanya

nedalezz

The King's Office would like to inform the Woynitsch family that upon final consideration, they would like to offer them the 2,500 sq. meter land requested by them in a trade for the 1,000 sq. meter land behind the Royal Residence. This offer will take into affect if no private party expresses interest in the land in the next 6 months (up till Turn 15.)

nemanjanv7

Fantastic!
Here is the image explaining my layout offer, but since King is so generous, I will let him take whichever plots he wants. This is only the way I'd like it to be.
tradeoff layout


Since tractor is not necessary for 2.500 and it is the maximum amount one worker can handle (100% utilized worker), this is much more profitable farm than 1.600 (worker 64% utilized).


Of course the 600 remaining sqm of farm is to be destroyed. It is gonna be a place for our home and some offices. For now if someone wants to open up a stall, let me know.



- I take part in The Dunya Project Thumbs up for Nedalezz :)
- Favorite MD: The Winding River Project

Nemanya