Once you have started a company, you can choose to expand your business. There are two types of expansions: revenue and cost. The most common is revenue. In this type, you are coming up with a new revenue stream. Because your base revenue and base cost are the foundation of your business, revenue expansion act like a multiplier. As you may guess, if you are loosing money – it might not be a good idea to expand your business.
You have 5 ways to expand your company. Two represent good things, the third is questionable and the last two are evil. In general, the good things make less money and evil things make more money. To make it worse, good things often are harder to do and may take more turns.
In this example, we have added (Questionable) Revenue expansion. It is only ranked as a C - which gives us a multiplier of 3 (2.95). An A would give us a multiplier of 5. Once you have a healthy business, this can greatly improve your earnings.
The other type of expansion can lower or increase your cost ratio. In this case, Erron has a .85 (85%) ratio to revenue. A cost based expansion would only change that number. (Most companies do not have any cost expansions - so you really need to make sure the base cost has at least a B rating). Cheapy-Mart is a company that is mostly cost expansions.