In the BitLife Business Update, you can start your own company and watch it flourish or crumble. Depending on how well you manage your business, you may very well have a successful, happy life with a large corporation. However, you’ll have to learn how to manage your finances to ensure you don’t lose money. If you’re interested in learning more, continue reading to discover how to increase your net income in BitLife using the information in your annual reports.
How to Increase Net Income in BitLife – Annual Report Guide
You’ll receive an annual report for your first fiscal year after starting your own business and aging up. Within this report is the following information:
- Company Name
- Fiscal Year
- Revenue: The money you made before expenses.
- Net Income: The money you make after deducting expenses. This is what goes into your company’s pocket.
- Profit Margin: The percentage of total revenues and net income. In other words, your overall profitability as a percentage.
- Sales: A list of your products and how much money they individually made
While the company name and fiscal years are self-explanatory, the other four sections are very important for understanding your company’s success.
The first part of this is understanding Revenue. Revenues are the total sum of all your sales, not factoring in various expenses. In simpler terms, this is the money you made before subtracting your total costs!
The section you’ll primarily focus on is Net Income. To figure out your net income, you take your total revenues and subtract all of your business expenses. In other words, it’s the money your company takes home each year. This amount is added to your capital at the beginning of the new fiscal year.
Starting from your second fiscal year, you’ll start seeing your Profit Margin. Profit margin indicates your profit by dividing your net income from total revenue. While it isn’t possible to have a 100% profit margin in BitLife, you can make it higher by having high revenues and low expenses.
Lastly, your annual report shows your Overall Sales. For each product, you’ll see how much money they each contributed that fiscal year. If you’re noticing that a new one is performing far better than older goods, you might start to consider focusing on that and shifting focus away from other products that aren’t selling. In contrast, if one of your goods is consistently doing well, you know to keep it in your production line!
Increasing Net Income in BitLife
Now that you know all this information, you may wonder exactly how you’ll increase your net income. After all, what does it take to make more money since you can’t get a 100% profit margin? The simple answer to this question is listening to the game!
After each year, BitLife provides an analyst forecast, giving you a percentage of how many more products to sell. By increasing your production to match this, you’ll naturally gain more profit if your sales price exceeds your expenses. An alternative to addressing this is raising your price without changing your costs. While this decreases demand, you’ll still sell your products, especially if demand exceeds supply.
One last tidbit of advice is to look into new suppliers. If you have a low-quality or high-cost supplier, you can try to get a higher-quality one that is cheaper. Ideally, you’ll find one that is high-quality and low-cost! Be sure to prioritize quality, though, since your customer satisfaction will increase and drive up demand.
BitLife is available on Android and iOS devices. If you’re interested in more BitLife content, check out our articles on How to Get into Business School and How to Complete the ‘It’s All Yours’ Achievement in BitLife.