Making moneys with subsidiaries
Posted: Wed Oct 11, 2017 10:56 am
Experimenting with subsidiaries (I'm still learning the game) I noticed is possible to make subsidiaries in order to make a yearly income. I managed to become a billionaire this way and never built a single building by myself.
What I did was to make a subsidiary and give them enough money. I still have to get a good strategy to make the most of of this but this is the bade to this strategy, so I have no specifics on how to adjust them as I'm still trying to figure it out.
You want to hire CEOs with different expertises and personalities based on what you need. One choice would be to make them a retailer that only buys stuff from his own or parent company, giving him a reasonable price for the product which you make or have a second sub that builds factories. The point is to allow them to make a profit while they are still a private part of you company and you help them by injecting money, fine tunning the AI or placing buildings in their name. Just let them grow.
Once you are comfortable and believe the sub has a good market value, make it go IPO and set a dividend to it and make sure you own a nice amount of the company. You will be making money once a year from these diidends, so the bigger the sub (and profitable) the more money you will receive and the parent company net worth will be worth a lot more because of how much you own on the stock market. But remember, they must keep growing in order to make this strategy worth it, so don't set the dividend too high.
Something I've noticed is that retailer companies will make the biggest amount of money on the early game while manufacterers will be struggling untill they launch a product with good quality that allows them to compete unless they go for something that has no other companies on the market.
At this point, is like hiring people to do your work for you and then ask them for the results, making it a more passive experience and a strategy for stock market players, as you can try to invest your money on other companies and try to merge them into your own while making a nice amount of passive income. You can, obviously, be more active and take a diversified strategy, which might be ultimately better to help your companies grow.
Any feedback and information to make this work with greates results?
What I did was to make a subsidiary and give them enough money. I still have to get a good strategy to make the most of of this but this is the bade to this strategy, so I have no specifics on how to adjust them as I'm still trying to figure it out.
You want to hire CEOs with different expertises and personalities based on what you need. One choice would be to make them a retailer that only buys stuff from his own or parent company, giving him a reasonable price for the product which you make or have a second sub that builds factories. The point is to allow them to make a profit while they are still a private part of you company and you help them by injecting money, fine tunning the AI or placing buildings in their name. Just let them grow.
Once you are comfortable and believe the sub has a good market value, make it go IPO and set a dividend to it and make sure you own a nice amount of the company. You will be making money once a year from these diidends, so the bigger the sub (and profitable) the more money you will receive and the parent company net worth will be worth a lot more because of how much you own on the stock market. But remember, they must keep growing in order to make this strategy worth it, so don't set the dividend too high.
Something I've noticed is that retailer companies will make the biggest amount of money on the early game while manufacterers will be struggling untill they launch a product with good quality that allows them to compete unless they go for something that has no other companies on the market.
At this point, is like hiring people to do your work for you and then ask them for the results, making it a more passive experience and a strategy for stock market players, as you can try to invest your money on other companies and try to merge them into your own while making a nice amount of passive income. You can, obviously, be more active and take a diversified strategy, which might be ultimately better to help your companies grow.
Any feedback and information to make this work with greates results?