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Do you have to manually do something to make your workshop run profit? I tried both a woodwork and velvet and both gave me negative profit.
I'm not so sure, but I think you can change workshop types from the clan menu for a couple thousand.
This is entirely wrong. I built and change 15+ workshops and found that it had nothing to do with the surrounding villages whatsoever.
Did you let them run for about a week? If your converting workshop type it takes time for them to rebuy all the needed stuff and get to work producing stuff. That could be the initial loss in money as they're buying parts and paying labour fees.
You buy one, and leave it. That's it. You can't interact with it or do anything at all. I don't understand the mechanics behind it yet but each caravan I had eventually turned a profit. Can take a long time though.
Either way, both my wood workshops cap out at 200 without me doing anything, and while being located in towns that don't have hardwood production.. so I can't test either theory.
Look at what the bonded nearby settlements produce for that city. If you see 2 towns under that city's domain produce Olives, build an Olive press. Grain, make a Brewery. Use the resources produced by the towns, because it will be cheaper for your workshop to purchase the raw goods.