Business Plans
From Mizahar Lore
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This article is about basic info in the game. |
Business Plans are written documents used in Mizahar to lay out a complete plan for using a location or job to create an income in the form of a business. These plans discuss location, costs, allocate resources, focus on primary finances of a business. Business plans are all stored in the Business Plans Forum.
Mizahar wants to encourage pc's to own businesses and have fun roleplaying their parts in commerce and growth in a budding new world. Businesses are fun, exciting and often times challenging to make successful. Businesses are great backdrops that can spawn multiple roleplays and provide endless opportunities to explore a diversity of themes and situations. Many storytellers have given the nod to pcs or even opened pathways to business loans or financing to get people started. The financing part of a business is always up to the storyteller if people can't pay up front for their initial investments (buildings, stock, employees). Business plans can be difficult to generate, however, so Gillar has provided templates and samples in the Small Business Forum that allows a user to utilize sample business plans to write one of their own.
All business plans need to be posted in the Business Plans Forum and receive a stamp of approval from Gillar to be acknowledged as valid. DS's can and need to approve financing, but the ultimate plans MUST be posted in Small Business Plans and approved. This goes for new businesses and businesses already in existence. This standardizes businesses throughout Mizahar so that no one is given an advantage or disadvantage based on where they are located, who approved their plans, or what they are selling. If one person approves all the plans in game, it creates uniformity and lightens storyteller load.
While Gillar may approve all business plans, it is entirely up to a domain storyteller whether to allow that business into their domain. So in essence, Gillar approves the plans but no DS has to allow them into their domain. That arrangement is up to the DS and player respectively. DS's, however, cannot approve businesses for their domains that do not have a business plan posted openly for others to see along with Gillar's stamp of approval.
Remember, we don't want any corporations, franchises, or absentee business owners. All businesses need to be run hands on by the PCs that start them. Those PC's need to be active and engaging, not creating a business and then ignoring it. And if you want to own a business but have NO CLUE how to get started developing one, look at sample businesses, businesses that are in operation currently or simply ask Gillar for help. He'll be glad to fix anyone up with a business plan that needs one, though remember, its totally up to a DS whether or not they allow one into their domain.
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How would you suggest I go about owning a business?
There are seven simple steps to owning a business on Mizahar.
- Talk to a local Storyteller about the feasibility of a business in their domain.
- Find out if there is a thread where your pc can talk about acquiring financing in the form of loans and how they would acquire a building, if needed, and post in that thread getting the ball rolling for acquisition of funds and facility.
- Write a business plan and post it in the Business Plans Forum
- Get your plan approved by Gillar
- Finish any final touches with the acquisition of funds/lands.
- Get final storyteller permission to post up your new business (Ie. Make sure the business plan meets with their approval)
- Post up your new business location (after the writeup has been approved by the local storyteller).
Occupation and Income
Occupation Types may be found in the Income of the Price List.
Each type of Occupation requires one to have a primary job skill. This is the skill that income is based off of. For example, an Herbalist would have a primary job skill of herbalism. A blacksmith would have the primary job skill of blacksmithing.
Income received from performing a job varies greatly and depends on not only the job itself but also the skill and ability of the worker. City structure can also play an important role as well. In smaller cities of limited wealth and resources, worker income may be less than what it would be in larger cities with greater wealth. A city that prides itself in its mining operations may value miners and masons more than others thus the income of such occupations may also be greater. Below is a list of sample professions and their basic daily income. This assumes that the worker has at least a Novice (L1) level in the primary skill of that profession. As you will see, base income may vary greatly but in general, falls within 1 and 10 gold mizas per day. From the list we can also see that jobs requiring more specialized skills offer a greater income but also require more responsibility. Those who fall behind in their job duties may see a reduction in pay or even the loss of their job.
As a person becomes more experienced and acquires a greater level of ability in skills that relate to their job, they may expect a greater income. For job-related skills of Competent (L2), income general increases by half again as much (rounded down). Thus an alchemist making 7 gm a day at a Novice level will make 10 gm a day. At the expert level (L3), income doubles thus the Competent Alchemist making 10 gm a day will make 20 gm a day as an Expert. At the Master level, income for a job doubles yet again so that the Expert Alchemist making 20 gm a day will make 40 gm a day once they become a Master. Note that this is base income. Finalized income is set by the attending Storyteller and may include extras such as a percentage of sold items, etc. Such percentages added to regular base income does not normally surpass 20% per skill level (rounded down). Thus if a character owned an alchemist shop, the storyteller may decide that the character would make an additional amount of money from sales and services. For the L1 Novice Alchemist making 7 gm, they would get an additional 1 gm from sale profits for a total of 8 gm per day. The L2 Competent Alchemist making 10 gm a day would get 12 gm a day after sales profits. The L3 making 20 gm a day would get 24 gm a day total while the Master making 40 would get 48 gm a day total. Remember that these are routine, everyday wages that do not take into account character discoveries, innovations, inventions and adventuring that may bring separate, less routine amounts of money.
Sample Business Plans
There are a few different types of businesses that can be started. These types of businesses are: Goods, Services or Goods and Services. When designing a plan note that all Business Plans need to include the following items.
- Title of Shop/Business - Name of your Business
- Business Type - Goods, Services, Goods and Services
- Items Sold - This is your business price list. Prices for general items come from the Price List.
- Base Income - This is the basic starting income value in gold mizas per day that comes from the Income section of the Price List.
- Skill Bonus - This is the modifier applied to the base income and is related to skill level.
- Sales Bonus - This is a modifier applied to the base income and is related to business ownership and other factors that affect business ownership.
- Ingenuity/Creativity Bonus - This is a modifier applied to the base income and is related to creativity in business foundation and operation. What do you do to make your business stand out?
- Total Income - This is the final, modified income after all bonuses or penalties have been applied.
- Assets - This is a list of all structures and items that are either sold or used in the foundation/operation of the business including their costs. Employee cost is also included here.
- Debts - This is a list of how much one owes to a creditor for financing their business.
Goods Shop
Below is a sample business sheet for a sample business that you can use as a model for your own creations. In creating your own business sheet it is suggested that you try to keep things as simple as possible and avoid confusing details. This business sheet is an example of a business that specializes primarily in the sale of goods.
Johan's Tent of Tools and Trinkets
Business Type: Goods
Items Sold:
Cosmetics, common 1 cm/oz. Rugs and tapestries, common 1–5 gm/5-15lb Lamp, Common 1 sm Torch 2 cm Rucksack 1 gm Pouch, Belt 1 gm Case, Map Or Scroll 1 gm Earrings, Copper 2 sm Necklace, Copper 5 sm Dice Set, Bone 5 cm Axe, Carpenter's 1 gm Shovel 2 gm
Base Income: Shopkeeper 4 gm/day This is based on the shopkeeper's skill level regardless of what is sold. The idea is that the more skilled the shopkeeper, the more mizas they can keep from a sale after covering expenses. For the sake of this example, we will use Johan, a simple man with a knack for getting people to want to buy from him. Johan is a non-specialized shopkeeper meaning that his shop does not specialize in any particular item. So we look at the Income section of the Price List and see that a shopkeeper makes a base of 4 gm per day.
Skill Bonus: Competent Persuasion 2 gm/day Since Johan's shop does not specialized in a specific type of good or service, we will rely on his Persuasion skill to determine his income bonus. Usually, a shop without a specialty will rely on Leadership for its skill. Persuasion however can be used in place of Leadership in some instances.
Johan has a Competent level of Persuasion which gives him half again as many mizas per day. So we take 4 gm base and half of that (2 gm) to it for a total of 6 gm per day income from Johan's shop. Sale's Bonus 1 gm/day
A Storyteller may also approve a bonus from sales based on especially creative business set-up and initial thread work or even further down the road from equally creative and well-deserved thread work involving the business. This bonus may also be granted based on how many mizas are invested in the initial shop set-up. This bonus does not exceed 20% per skill level, rounded down. So for the sake of Johan, we will say that because of the history of how he came to operate his shop, he gets a 20% bonus to his sales 20% of 6 gm rounded down is 1 gm for a total of 7 gm per day income.
Total Income: 7 gm/day (Base 4 GM + Skill Bonus 2 GM + Sales Bonus 1 GM)
Assets: While we do not need to number crunch all of the expenses for this shop, we do need to list all of the assets required to operate the business. Assets include the structure, furniture, transportation (if necessary), items to be sold (may refer back to the Items Sold section) and any potential employees. Items to be sold must be purchased only once at the start of the business. Replenishment of sold items is already figured as part of the income. So for Johan, he would have to purchase, once, all of the items he wishes to sell in his shop.
Johan would have assets such as a pavilion tent, average table, average shelf set and all of the items he has for sale. If he were to have an employee, Johan would have to pay the employee their standard wage out of the shop’s daily income.
Debt:This would be where one puts what is owed after full purchase of assets. Most often, this is what is owed to those who have loaned the mizas for the business start-up. Who gave you the mizas?
Service Shop
Below is a sample business sheet for a sample business that you can use as a model for your own creations. In creating your own business sheet it is suggested that you try to keep things as simple as possible and avoid confusing details. This business sheet is an example of a business that specializes primarily in the sale of services.
Yano’s Bathhouse
Business Type: Service
Services Offered: Bathing Chamber, Self-Service: 1 gm Bathing Chamber, Full-Service: 2 gm Massage Beds: 3 gm Meditation Training: Novice 50 gm
Base Income: Groomer 5 gm/day This is based on the individual’s skill level regardless of what is offered. The idea is that the more skilled the individual, the more mizas they can keep from selling their services after covering expenses. For the sake of this example, we will use Yano, a young woman with a special touch and the ability to make one feel exquisite. Yano is skilled in grooming; massage therapy and meditation. So we look at the Income section of the Price List and see that a groomer makes a base of 5 gm per day.
Skill Bonus: Competent Grooming 2 gm/day While Yano is Competent in Grooming, she also possesses a Competent level of Meditation. For the sake of this business which deals mainly in grooming techniques, we will use that as a basis for determining skill bonus. Yano has a Competent level of Grooming which gives her half again as many mizas per day. So we take 5 gm base and half of that (2.5 gm) to it for a total of 7.5 gm per day income from Yano’s Bathhouse.
Sale's Bonus: 1 gm/day A Storyteller may also approve a bonus from sales based on especially creative business set-up and initial thread work or even further down the road from equally creative and well-deserved thread work involving the business. This bonus may also be granted based on how many mizas are invested in the initial shop set-up. This bonus does not exceed 20% per skill level, rounded down. So for the sake of Yano, we will say that because of her unique flavor she adds to her business tempered by the low cost of starting the business, she gets a 20% bonus from her Competent Grooming. 20% of 7.5 gm rounded down is 1 gm for a total of 8.5 gm per day income.
Total Income: 8.5 gm/day
Assets: While we do not need to number crunch all of the expenses for this bathhouse, we do need to list all of the assets required to operate the business. Assets include the structure, furniture, transportation (if necessary), and any potential employees. For the sake of this business, it is primarily service oriented so initial costs may be less than those of a business specializing in the sale of the goods which reflects upon the lower sales bonus percentage. Yano’s assets include two simple baths, a simple common area and two average massage benches plus a collection of simple oils, soaps and perfumes. Yano performs all of the services herself so she does not require an employee.
Debt: This would be where one puts what is owed after full purchase of assets. Most often, this is what is owed to those who have loaned the mizas for the business start-up. Who gave you the mizas?
Goods & Services Shop
Below is a sample business sheet for a sample business that you can use as a model for your own creations. In creating your own business sheet it is suggested that you try to keep things as simple as possible and avoid confusing details. This business sheet is an example of a business that specializes in both goods and services and includes employees.
The Darkest Corner
Business Type: Goods and Service
Goods and Services Offered: Bloodroot (4-dose tiny vial) 50 gm Blue Whinnis (4-dose tiny vial) 175 gm Close Call (4-dose tiny jar) 75 gm Corona (4-dose tiny vial) 75 gm Dark Tongue (4-dose tiny vial) 25 gm Greenblood oil (4-dose tiny vial) 25 gm Lazy Gel (4-dose tiny jar) 10 gm Lost Tongue (4-dose tiny vial) 15 gm Blade spring 4 gm Bolt, glass-bulb 1 gm Portable Poisoncrafting kit 150 gm Treating Poisons 45-100 gm
Base Income: Poison Crafter 7 gm/day This is based on the individual’s skill level regardless of what is offered. The idea is that the more skilled the individual, the more mizas they can keep from selling their goods and services after covering expenses. For the sake of this example, we will use Vice, the nuit poisoncrafter who makes a "living" dealing in poisons and poisoning services. Vice is an Expert Poisoncrafter So we look at the Income section of the Price List and see that a poisoncrafter makes a base of 7 gm per day.
Skill Bonus: Expert Poisoncrafting 21 gm/day Vice is an Expert Poisoncrafter who sells poisons and offers treatment for those who suffer from the effects of poisons. So we take 7 gm base and half of that (3.5 gm) to it for a total of 10.5 gm per day income. That is for the Competent level but Vice is an Expert so we will double what he gets from Competent. Thus 10.5 gm becomes 21 gm per day from Vice's goods and services.
Sale's Bonus: 4 gm/day A Storyteller may also approve a bonus from sales based on especially creative business set-up and initial thread work or even further down the road from equally creative and well-deserved thread work involving the business. This bonus may also be granted based on how many mizas are invested in the initial shop set-up. This bonus does not exceed 20% per skill level, rounded down. So for the sake of Vice, we will say that because of the nature of his business; he offers poisons but also treats poison victims, a rare set of goods and services, he gets a 20% bonus based on his skill and rarity of goods and services. 20% of 21 gm rounded down is 4 gm for a total of 25 gm per day income.
Total Income: 25 gm/day - 7 gm/day for 1 employee = 18 gm/day
Assets: While we do not need to number crunch all of the expenses for this entrepreneur, we do need to list all of the assets required to operate the business. For Vice, he operates out of a small laboratory in a dark corner of a major city. Assets include the structure, furniture, transportation (if necessary), and any potential employees. For the sake of this business, Vice has his simple laboratory, poisoncrafter's lab and the poisons he sells. He also employs an apprentice who aids him in brewing poisons. His apprentice is a Novice and thus makes 7 gm a day. This must be noted and subtracted from Vice's income per day. Thus 25-7=18. So Vice's Total income is adjusted to 18 gm per day.
Debt:This would be where one puts what is owed after full purchase of assets. Most often, this is what is owed to those who have loaned the mizas for the business start-up. Who gave you the mizas?
Sales Bonuses
There are two types of Sales Bonuses, Positive and Negative. A Positive Sales Bonus is almost always granted to the Owner of a business to reflect how their focus and attention on the business benefits overall sales. Thus, most business owner can expect the full 20% bonus for simply owning their business. However, there are many reasons why the business may incur a negative bonus that either cancels out the Positive bonus for ownership or cause a Negative bonus beyond that.
This Negative Bonus would occur in a number of situations such as starting a business in a place where the goods or services offered already exist in an overabundance. For example, a general blacksmith starting a business in Sultros will likely experience a bit of a Negative Sales Bonus unless they find a way to somehow stand out in a place that has an overabundance of blacksmiths.
Another way to gain a Negative Sales Bonus would be to over-specialize with a business. While some businesses are geared toward specialization, others are not. If for example, you are a blacksmith and you only forge horseshoes and nothing else; not tools, implements, or anything other than horseshoes, chances are you will not have as good of sales as if you broadened your selection.
If you are a healer who only tends to bruises and nothing else; not cuts, scrapes, broken bones, etc., chances are your income will suffer.
If you are an apple farmer who only sells to a single fruit stand in town, chances are you will not make as much as you would if you instead sold to a number of stands and spread your product throughout the market.
If you go the discount route and purchase a substandard facility to run your business, while it may be cheaper to get things started, you may suffer a Negative Sales Bonus due to the poor conditions of your facility affecting your sales.
A Negative Sales Bonus may be put in place to address potential difficulties one may experience due to the nature of their business, its location, over-specialization or a number of other issues that may hinder sales. Unlike the standard Sales Bonus where it is more difficult to stand out above the crowd, it is far easier to fall behind in a world where extreme wealth and prosperity is not common. As with the rest of life in Mizahar, businesses must often fight for survival. Thus, the Negative Sales Bonus may reach as much as -40%.
A Negative Sales Bonus may be reduced, eliminated and an actual Sales Bonus may be attained depending on the amount of work one goes through to improve their business. Thus if someone began a business that was overspecialized in battered building in a terrible location filled with similar businesses, they would likely begin play with a rather large Negative Sales Bonus. If they in turn, broadened their goods or services a bit, upgraded and improved their building and did something to make their goods or services stand out from the rest, they would likely go from Negative to Positive.
Openly operating a business that is considered illegal or otherwise restricted in a certain city can also incur a hefty Negative Sales Bonus.
For example, a Competent business owner bringing in 8 gm a day suffering from some of the difficulties mentioned above may incur a -40% Negative Sales Bonus which means he would suffer a -3 gm penalty to his Total Income. This leaves him with a total of 5 gm a day thus more than nullifying his bonus for having a Competent Skill Level. The idea being that even though this business owner is skilled in what he does, he needs to actually employ that skill by designing and operating his business to that level.
Creativity/Ingenuity Bonuses
The Sales Bonus, while addressing many outside factors that affect business income, does not do enough to fully address the role player creativity has on how well a business does. The Creativity/Ingenuity Bonus addresses both player/character creativity and efficiency when it comes to founding a business and operating it in unique and interesting ways. Examples of what this entails include things like weaving your own fabric for use in your clothing offered in your clothing store. Also, for those who grow their own herbs or own a mine and operate their own smithy using metals they themselves mine. There are so many other examples of how one may make their businesses more efficient or otherwise just include creative elements to the whole thing.
This bonus may be added at the beginning of a business or later on. Usually, it will come later as the business develops, kinks are worked out and creative expansion is employed. Said bonus will equal another 20% added to the final total income of the business. So for example, let's take an Herbalist, maybe this person harvests their own ingredients in a garden behind the shop instead of purchasing ingredients from somewhere else before selling them in their own shop. This would reduce the costs involved in acquiring such materials and thus make the business more efficient. Thus our Herblist may acquire an additional 20% bonus to their base income.
Merchant Prince(ess)
There is a special class of business owner in the land of Mizahar who has surpassed all others. These individuals are the driving forces of business and economics within a given city and sometimes within an entire region. They are known as Merchant Princes and Princesses and with their business expertise and accompanying wealth, have amassed great influence and respect/notoriety.
For those of who have reached 100 skill points in their primary job-related skill, they may now choose another, secondary skill, related to their existing business, in order base additional income on. The income from the primary skill remains but one may now add half of the secondary skill income to the total.
For example, a currently owned/operated Herbalism shop ran by an Herbalist with an Herbalism skill of 100 (L4 Master), would earn a base income of 6 gm plus 1 gm in Sales Bonus for a total of 7 gm / day base income.
The skill bonus for our Herbalist is 7 gm x 1.5 (L2) equaling 10 gm / day. Multiply this by 2 at (L3) for 20 gm / day. Double this again at (L4) for a total of 40 gm / day.
Now, our Herbalist decides they want to include Philtering as a part of their business. They have a Competent (L2) skill in Philtering. Since Philtering is related to the Herbalism business, this skill becomes the Secondary skill. This Secondary skill becomes the new skill that we use to determine additional income. So, a Philterer would have a base income of 7 gm / day (L1) plus 1 gm Sales bonus for 8 gm / day. At (L2) 8 gm x 1.5 equals 12 gm / day. Half of that is 6 gm / day.
We take the 40 gm / day from Herbalism and add 6 gm / day from Philtering for a new total income of 46 gm / day.
It does not stop there. You can continue to raise the Secondary skill to Master (L4) level to increase the income. So our Herbalist/Philterer who masters their Philtering Skill to 100 points would have their 12 gm / day from Competent (L2) doubled at Expert (L3) to 24 gm / day and doubled again at Master (L4) for a total of 48 gm / day. Half that is 24 gm which is added to the 40 gm from Herbalism for a total of 64 gm / day.
Now, let's say our Herbalist/Philterer has maxed out both skills to 100. At this point, a Tertiary skill can be chosen. This will add more to the final income however only one-third of the total gained from the Tertiary skill is added to the final total. Maybe our Herbalist/Philterer wants to be able to offer antidotes to poisons. They have a Poison skill at Competent (L2). Base income of 7 gm / day plus sales bonus of 1 gm for 8 gm / day. Multiply that by 1.5 (L2) for a total of 12 gm / day. One third of that is 4 gm / day which can be added to the total from the Primary and Secondary. In this case, the 64 gm / day from the other two has 4 gm / day added on for a final total income of 68 gm / day or 6,188 gm / Season. Note that the Tertiary skill can be maxed out just like the Secondary skill with one-third of that final total added. Thus, carrying on this example to its ultimate end, our Herbalist/Philterer/Poisoncrafter with a Master level (100 points) in all three related skills would have a total final income of 80 gm / day or 7,280 gm / Season.
To sum it all up, here are the requirements for being able to add Secondary and Tertiary business skills to a business plan:
1. One must have Mastered their primary skill to 100 points in order to attain a Secondary skill.
2. In order to gain a Tertiary skill, one must have Mastered their Primary and Secondary both to 100 skill points each.
3. The Secondary and Tertiary skills MUST be related to the business that has been started with the Primary skill (For example, if one runs a smithy, they're not going to be able to make their Secondary skill be Herbalism).
4. Seasonal Job thread requirements increase from 2 to 3 when one gains a Secondary and 3 to 4 when they gain a Tertiary. Thus a Master of three different job skills will need 4 job threads per Season to attain their maximum income. So, if one only does two threads in a season, they only get their Primary income. If they do 3 threads, they get their Secondary income and 4 threads give them their Tertiary income.
Selling a Business
There may come a time when, for whatever reason, one feels they need to sell their business. In that case, there are a couple factors to consider when deciding to sell. These factors will affect how much return one gets on the investment put in their business.
First, does your business have a stationary physical location from which it is based out of and assets to go with it? If not, you will not get anything back. For example, if you're selling cabbage out of the back of a cart and want to get rid of it, you're really just selling a used cart and not a business. For the sake of selling a business and recouping the costs, you need to have a stationary, physical location that you use to house your business.
Second, how long has the business been in operation and how much effort has been put into operating that business? If you have only owned the business for a season and have only done the two job thread requirement for owning it, you will only get back what you paid to start the business in the first place. So for example, if you start a smithy and only have it a season before, for whatever reason, you decide to sell, you will only get back your overall investment. Note that if you do not own a business for at least a season and do not do at least two job threads before you sell the business, you will only get back half of your overall investment. Thus if you have a debt to someone, you will likely not be able to pay this back and they will come looking for you.
Length of time spent owning and operating a business including number of seasons and amount of thread effort in development does have the potential to bring great return on investment when/if a business is sold. For example, if someone has owned/operated a business for a year and has done all of the required job threads, they may expect a huge return on their overall investment. The amount of time/effort spent on operating a business directly dictates how much return one can expect.
- 1 Season + Job Threads = Initial Investment Only
- 2 Seasons + Job Threads = x 1.5 the Overall Investment
- 3 Seasons + Job Threads = Twice again the Overall Investment
- 4 Seasons + Job Threads = x 3 the Overall Investment
Let's say a master herbalist initially started her business with an initial cost of 2400 gm. After owning/operating the business faithfully for a two seasons, she decides it's time to sell. Though she is a Master, her return on investment is based on the number of mizas she's put into the business, not the amount she has made based on skill. Unlike skill modifiers to income, the modifiers to investment returns upon selling does not stack. So, in the example of the herbalist, the breakdown for return goes like this: If she sold after 2 Seasons + JT, she could expect a return upon selling of 2400 gm x 1.5 for 2 Seasons + JT for a total of 3600 gm. If she decided to sell after 3 Seasons + JT, she would get double her initial investment for a total of 4800 gm. If selling after a year + JT, she could expect a return upon selling of 2400 x 3 or 7200 gm. If owning/operating a business for more than a year, still use the modifiers for a single year + JT.
If our herbalist had put more mizas into her business beyond the initial 2400 investment, she may add the additional amount spent to improve the business to her initial investment to increase her return upon selling. So for example, if the herbalist had spent 1000 mizas over the course of a year to improve her business and then decided to sell, she would have a total of 3400 gm to figure her return off of. Thus, 3400 gm x 3 would be 10,200 gm return on investment once the business is sold.
Note that Kenash Dynasty Characters may not sell back their businesses due to them being an extension of a family business.