Poll: Service Industry DLC: Professional Services

[standardplayer]

Professional Services:

The majority of the developed countries economy is 80%+ services so they should be better represented in this game.

• Types of Firms/Services:
o Business Services:
- Audit/Accounting Firms
- Advertising/Marketing Agencies
- Engineering Consulting
- Legal Services
o Consumer Professional Services:
- Financial Advisers/Brokers
- Real Estate Brokers
- Private Medical Practice
- Consumer Tax Service
o etc.


• Markets for Services:
o Accounting Services:
- Public Company Audits (1%-2.5% of Companies Revenue, Banking firms would pay more because of "complexity" 2.5%-5%)
- Government Audits (1%-2.5% of Revenue)
-Corporate Tax Services (0.5%-1.25% of Companies Revenue)
o Advertising Services: Marketing/Advertising Campaigns (20%-30% of Media/Advertising Spend or 2.5%-5% Retail Firms Revenue)
o Engineering Services: Production Consulting (2.5-5% of Manufacturing and/or Raw Resource Companies Revenue)
o Legal Services: Compliance Work (1%-2.5% of Companies Revenue, Banking firms would pay more because of "complexity" 2.5%-5%)
o Financial Adviser/Broker Services: Average Family Wealth is GDP per Capita, Fee would be 1% of Wealth/Assets
- Example: City 500,000 x GDP per Capita $30k = $15 Billion x 1% Mgmt fee = $150 Million Market ($300/person)
o Medical Services: 10% x $30K GDP per Capita = $3,000/Person/year and 10% of Medical Market is Private Practices
- Example: City 500,000 x $3,000 = $1.5 Billion x 10% Private Practice = $150 Million Market
o Consumer Tax Service: $150-$300/person x Population
-Example: City 500,000 Population = $75-$150 Million Market

• Professional Service Firm Setup:
o Firm: Headquarters and Branch Locations
- Headquarters Building
- Business Services: Local Skyscraper at CBD of each city
- Consumer Services: Branch Offices across each City
- Note: Similar to Banking DLC HQ and branches
- Alternative: Headquarters and Ability or Requirement to Lease Office or Retail Space in each city based on employee count.

• Revenue and Expenses:
o Business Services Billings
-Legal: ~$1,000,000/lawyer
-Accounting, Advertising, and Engineering: ~$200,000-$300,000 per professional staff
-~$150,000-$200,000 per employee
o Consumer Professional Services Revenue:
-Financial Adviser: AUM ~$30,000,000/adviser x Fee 1% = $300,000/year per adviser, ~50 Advisers Branch
-Medical Practice: ~$1,000,000/Physician, ~10 Physicians per Practice
-Consumer Tax Service: 1,000-2,000 Taxes Prepared = $300,000/year per Tax Professional, ~50 Professionals Branch
o Expenses:
- 40-50% Billing for Professional Staff Salary and Benefits
- Overhead 30%-40%: Overhead Staff Salaries, Office Expense $/sqft times 100-200/Sqft Required per Employee, etc.
- Profit Target 10-20% Sales

[standardplayer]

Business Services would include a Corporate Contracting System

[standardplayer]

Addition to Business Services:
* IT Services
* Management Consulting

Addition to Market for Services:
* IT Services: (1%-2.5% of Companies Revenue, Banking firms would pay more because of "complexity" 2.5%-5%)
- Technology Infrastructure Management
- IT Security Consulting

* Management Consulting: (1%-2.5% of Companies Revenue, Banking firms would pay more because of "complexity" 2.5%-5%)
- Strategy Consulting
- Operations Consulting: Finance, HR, etc.

[standardplayer]

AI and Player Expert Consulting:

Could be implemented as an office in a HQ (Consulting Office) or Other UI Screen (Career Section?)
- HQ Consulting Office: 1-2 Consulting Slots
- 2-3+ Year Consulting Term (Renewable)
- Consulting Rate: $600,000-$3+ Million/year based on expertise
- Consulting: Expertise Benefit for Exec Team based on consultant’s expertise
- Relationship Benefit with Consultant: Maintain Relationship with Laid Off Executive and/or Simply Benefit from Expertise

[standardplayer]

AI and Player Professional Service Firm Partnership Positions:

Could be implemented as an office in a Service Firm HQ and/or Local Office (Partner Office)
- HQ Partners: 1-3 Slots (Managing Partner, Business Line Partners (Audit, Tax, etc.))
- Local Office Partner
- Managing or Business Line Partner Pay: $600,000-$3+ Million/year based on firm size and expertise
- Local Partner Pay: $300,000-$1+ Million/year based on firm size and expertise

[leveragedbuyout]

o Accounting Services:
- Public Company Audits (1%-2.5% of Companies Revenue, Banking firms would pay more because of "complexity" 2.5%-5%)
- Government Audits (1%-2.5% of Revenue)
-Corporate Tax Services (0.5%-1.25% of Companies Revenue)

A couple questions:
1) The accounting fees seem high. Do accounting firms in the real world charge as much as 1%-2.5% of Companies Revenue?

2) Why would companies in the game want to use accounting services? What's the benefit of doing so? Or Is it going to be compulsory?

[standardplayer]

o Accounting Services:
- Public Company Audits (1%-2.5% of Companies Revenue, Banking firms would pay more because of "complexity" 2.5%-5%)
- Government Audits (1%-2.5% of Revenue)
-Corporate Tax Services (0.5%-1.25% of Companies Revenue)

A couple questions:
1) The accounting fees seem high. Do accounting firms in the real world charge as much as 1%-2.5% of Companies Revenue?

2) Why would companies in the game want to use accounting services? What's the benefit of doing so? Or Is it going to be compulsory?

1) No they typically charge less closer to ~0.1% of revenue but, this game typically has less companies that generate less revenue so for game play purposes it would need to be higher unless you added governments, nonprofits, local companies and/or global companies to generate enough fees to create a reasonable market size of at least ~$100+ Million Across 2-4 Firms.

See: https://blog.auditanalytics.com/analysi ... ry-sector/

Game Example:
Average Company Revenue: $400 Million
20 Companies
Real World Audit Fee ~0.1% = $400,000 x 20 Companies = Market $8,000,000/Year
Game Audit Fee ~1-2.5% = $4-$10 Million x 20 Companies = Market $80-$200 Million/Year
2-4 Firms: $20-$100 Million Revenue per Firm
~7 Cities

Expenses 80% of Revenue: Partner Salaries, Auditor Salaries, Support Staff Salaries, Office Rent, Overhead, etc.
Profit 20% of Revenue: Partner Bonuses, Auditor Bonuses, and 5%-10%+ of Revenue for Shareholders or Retained Earnings/Reserves if Entirely Partnership

Managing Partner Compensation: Salary $1 Million, Bonus $1-$4+ Million, Total $2-$5+ Million Year
Business Line Partner Compensation: Salary $500,000, Bonus $500,000-$2.5+ Million, Total $1-$3+ Million Year
Local Partner Compensation: Salary $200,000, Bonus $200,000-$800,000, Total $400,000-$1+ Million Year
Auditor: 2-2.5 x ~$30,000 per Capita Income = Salary $60,000-$75,000, Bonus 5%-10% Pay

2) Audits would be compulsory like in the real world Investors want auditors to provide reasonable assurance that financial statements are accurate.

[AgataChr]

Any news about these features?