When to start subsidiary?

English Boards General
1

Hey guys,

How much money should you have before investing it into a subsidiary? 

Thanks,

Billy

2

How much you feel you need. I have started subsidiaries with three million dollars and with one billion dollars, it´s completely up to you.

3

Cheers, so if I wanted to start a regional subsidiary serving one bar airports, would you suggest around AS$6,000,000? 

4

Again it depends on what you want to accomplish and to what extend you want to serve smaller airports. As long as you dont stock list the company you can always transfer more funds if you wish. The question is how much do you want to invest and what scale do you want your regional operation to be? There is no yes or no to this question.

5

Thanks, CBE! 

6

Sorry, just to confirm, can you transfer AS$ into a subsidiary because other sources have said that you cannot transfer money but only aircraft.

Thanks,

Billy

7

No, you can't transfer AS$. You have to buy an aircraft and play "ping-pong".

8

Cheers Rainer! I saw the other post on this and try it out when I create a sub.