No matter what I do I seem to go broke within the first couple months and start needing loans just to make payroll. Is that automatic or what can I do to make enough money in the first part of the game?
Yeah it's quite hard to play the game with default settings, I try share my thoughs about it in short as possible (but many other post has tips too).
About the starting location:
The best starting location is when you have only one neighbouring district has a concurrent business (the central district always has and it's always be your neighbour). This is important because your concurrent neighbours can siphons visitors (up to 25%) of your district and vica versa. So I advise to restart the new game until you find yourself in the ideal location (with two empty neighbouring district).
At beginning:
- Copy what your concurrents do. You can see in the log if they are start building something, or changing they opening hours. (Also you can get basic informations on they assets in Manage Club with choosing your concurrent, also you can figure they prices if you visit them and pay for they products or services like cover fee, buying drink and food, etc. -> check log if you don't see prices)
- Spend only the necessary amount on anything, try minimize the expenses and optimize the earnings. (You race in satisfaction level with your concurrents what leads more fame and visitors and earnings)
- try build good relations with at least 4 city commissioner, and focus on smooze them to vote opening hours related laws (Imo it is the most important at the beginning. More open hours -> more visitors -> more earnings -> faster progression)
- In library choose job related books only and read them as they importance (don't choose a book about stripping if you far away from hiring strippers, try figure out what is the best at your current situation, or if you can't choose from them simply return later)
- constantly build your endurance because it develop slowly and you will need it badly during all time
- be consequent what you anwer to npcs about unknown opinions (what opinion you acquire), because mostly no way to change that later and it reflects to your personality's bonus and malus values too (for example: if you choose to love working out after then you get happiness if you do in the fitness center, etc). If you unsure about the opinion's benefits then just say nothing and read about in the Help and decide what to answer on them on the next time.
- try to reach the positive cash flow and keep it positive. Until that keep your bank debt above at least -20000 (under this no one wants to work for you). But your ultimate goal at this point to eliminate completely, being debt free. (More bank loans means more interest payout so there is a point of no return (exept cheating on money) if you overspent, and it's very easy to reach that if you can't discipline yourself)
- hire the right persons for the jobs. At the beginning, forget your sympathy as you created it based on the picture what you see and concentrate to hire the persons depending the current job requirements. With low salaries you spare on expenses, and almost any npc capable to fulfill the basic roles. It's secondary how good he/she is at that kind of job, only later will be this factor more and more important (so you can think about later on they development or replacement). Greed is a good measurement of how much salary they are require (initially and to keep they happiness during the time), this means low greed leads lower salary. So basically you find the best starting workers around the university district, they're uneducated, inexperienced, but they are the cheapest ones.
P.S.: Also there is always the possibility to change the starting rules (atm in config.dat). The most popular case is raising the starting money. It seems above 500K initial cash is enough to survive the beginning until your business come profitable. My favorite other case is raising the city's initial population two or three times (more than this will kill the aspect of the game). It's doubles or triples the initial visitor count - makes the beginning more comfortable and less stressful - but in mid range can lead a short of capable workers because visitors start flooding the places with they presence and money. (Keep in mind this change makes things easier to your rivals too, and seems they can survive and never goes into bankrupticy. The first case isn't provide them such benefit, but from the config.dat other lines you can figure out they parameters are cheated to keep the rivalry with your business)