Building the First Industrial Empire in Another World

Ernest blinked. He agreed that fast?

"However, there are conditions before we start this, we need to register your product first to the merchant guild."

"Merchant guild?" Ernest repeated, tilting his head to the side.

"That’s right, merchant guild. They control the commerce of the country. Everything from business registration to trade permits, taxation, distribution rights, and commercial disputes," Hollen explained calmly.

The forge owner leaned back slightly afterward while crossing his arms again.

"Without guild recognition, your business remains unofficial."

Ernest listened carefully.

Honestly, it made sense.

Every society eventually developed systems controlling trade and commerce.

Back on Earth, modern governments handled business permits, taxation, intellectual property, and regulatory approval.

Meanwhile here?

The Merchant Guild apparently fulfilled much of that role.

Hollen continued.

"And unofficial businesses attract problems quickly."

"Such as?"

"Confiscation."

That immediately got Ernest’s attention.

"Taxes."

"Guild penalties."

"Distribution restrictions."

Then Hollen narrowed his eyes slightly.

"And sometimes sabotage."

Ah.

Now things became clearer.

The guild was not merely some harmless merchant association.

It was a power structure.

A regulatory body mixed with economic cartel influence.

Actually, historically speaking, medieval merchant guilds often held enormous authority inside major cities.

They regulated trade access.

Controlled apprenticeships.

Set quality standards.

Limited competition.

And protected existing merchant interests aggressively.

Hollen tapped the desk lightly afterward.

"You think businesses in Helmarte survive purely because products are good?"

Ernest stayed silent.

The forge owner snorted softly.

"Half of commerce here runs on approval, connections, and protection."

That sounded extremely realistic.

Markets rarely operated as perfectly free systems historically.

Powerful organizations always controlled access points somewhere.

Ports.

Roads.

Markets.

Licensing.

Then Hollen pointed downstairs toward the workers.

"That’s why I allowed the soap distribution."

Ernest blinked slightly.

"...Allowed?"

"Yes."

The forge owner’s voice became more matter-of-fact afterward.

"You weren’t selling products."

"You were handing them out."

That distinction mattered heavily apparently.

Hollen continued.

"Workers testing soap privately inside their homes attracts little attention."

Then he pointed toward the city outside the office window.

"But the moment you openly start selling large quantities without guild registration?"

He shrugged lightly.

"People start asking questions."

Questions meant scrutiny.

Scrutiny meant attention.

And attention without protection in a medieval capital city probably became dangerous quickly.

Ernest slowly leaned back in his chair while processing the information.

Actually, it reminded him strongly of modern business regulation mixed with mafia-style territorial economics.

Official approval mattered.

But connections mattered more.

Hollen continued speaking.

"Merchants won’t distribute unregistered goods widely."

"Market stall owners avoid risk."

"Transporters avoid questionable cargo."

"And guild inspectors can shut operations down if they choose."

That explained why Hollen’s partnership mattered even more now.

Without an established merchant backing him, Ernest’s soap business would likely get crushed before scaling properly.

Not because the product failed.

Because the system itself blocked entry.

The forge owner suddenly smirked slightly afterward.

"You thought making soap was the hard part?"

Ernest slowly nodded afterward.

"So we need guild approval before expansion."

"Exactly."

Hollen grabbed one parchment from the desk before casually flipping through it.

"Fortunately, I already possess merchant registration through the forge."

That immediately interested Ernest.

"You can sponsor applications?"

Now it was Hollen’s turn to blink slightly.

"Sponsor? So you do know that word huh? Well, yes, through my sponsorship, I can get you a license. But to be registered and granted a license, we will need a detailed business plan. It must be very detailed, like where the workshop be built, how much money are we going to put down, how many workers, how production will operate, projected profits, projected taxes, raw material sourcing, product quality standards, and even distribution plans," Hollen continued.

The forge owner placed the parchment back down afterward before looking directly toward Ernest.

"The guild does not approve businesses blindly."

"Okay, that will be my assignment, I’m going to need two weeks to prepare it since you want it detailed and I’m going to need a lot of parchment papers."

"Just grab whatever you need. Also in your business plan, you include how much the capital would be, it must be reasonable and is calculated based on concrete data."

"Which is why I need two weeks. And I’ll present them to you once it is finished before we head to the merchant guild."

"Good, now let’s return to our original work."