When running a business in BitLife, you need to handle many moving parts to keep your company running smoothly. At the end of every year, you receive an Annual Report that breaks down your company’s success and gives you additional Business Performance, which can be positive or negative. This guide covers everything you need to know about how Annual Reports work in BitLife.
What do Annual Reports tell you in BitLife?
Your Annual Report encompasses all the success of your company. It displays how much money you made and how much each product your company sells made throughout the year. In addition, it’s compared to the previous year to show how much you’ve grown. If you had a lousy year previously, hopefully, you were able to readjust some products and come back with more profits. However, if you have a tremendous year, sometimes it’s hard to top it, and your company might lose a little money, especially if you’re pushing a brand new product to the public.
The Annual Report details your company’s name at the top, how many years its been in business, the total revenue, the net income, your profit margin, and the sales for each product your sell. Then, at the bottom, you have your available capital, which is the amount of money you can spend on your company, such as giving your employees bonuses, increasing payroll, investing in other products, or even using this money to pay your character.
Revenue in the Annual Report
Revenue is the amount of money you receive from normal business operations, and this is calculated by the average sales price times the number of units sold. This is a good way to tell if the products you’re creating are valuable items that your customers want to purchase. While this is good, Net Income is the more important number.
Net Income in the Annual Report
The Net Income on your Annual Report is the total money your company made that year after you’ve dedicated the costs, allowances, and any taxes associated with your business, which is the money left over. You want this to be a high number because this is the real value you made while running your company.
Profit Margin in the Annual Report
The Net Income is also associated with the Profit Margin, which is the total cost to run your business and the total revenue your earn. For example, the brewery in our example picture shows the company’s profit margin is 19%, which is decent, but we want this number to increase, which also means the Net Income will improve.
After you review your Annual Report, you receive a Product Review for each product your company sells. These two components are essential to read through, giving you a good idea if you should expand your business, how you should sell a product that year, and what you need to improve.