How to Not Crash and Burn in a Complex Business Simulation (for Professors, Students, and Anyone Braving the Boardroom)

Introduction

So, you’re about to dive into a business simulation. Not the cozy, click-through-a-story-and-make-some-safe-choices kind of simulation. Oh no, we’re talking about the real-deal, big-kid version, a gnarly, complex game that simulates what it’s actually like to lead a business. It’s not unlike trying to steer a hot air balloon through a tornado: you’ve got a lot of levers to pull, and no clue what half of them do.

Here’s the thing: even the sharpest academics and students can find themselves sweating bullets trying to make coherent decisions in these simulations—especially without a background in executive strategy. My first time? I was convinced I was going to bankrupt an imaginary company. But I made it through, and now I’m here to give you a leg-up on how to tackle these things without losing your marbles. So, here’s your irreverent guide to dominating the simulation game.

1. Read the Case Study: Every Detail Counts (Yes, Really)

I know, you’re probably tempted to skim the simulation case study and dive right in. Don’t. The case study is packed with info that’s 100% relevant. In fact, every single number, metric, and scenario detail is there for a reason. Consider it your cheat sheet. In the real world, this is what we call “knowing your business and knowing your market.” So grab a highlighter, mark up the case study, and digest every bit of it until you know it backward. Trust me, your future (and imaginary bottom line) depends on it.

2. Know Your Market: Don’t Be That Kid on Day One

First off, you have to know what you’re actually selling and to whom. Sounds obvious, right? But trust me, this is where a lot of people wipe out. Just like showing up at the wrong party, it’s easy to think you’re targeting everyone when you’re actually not. So ask yourself:

• Who are we trying to impress here? In simulation lingo, that means identifying your target market and segment—aka, the folks who might actually want what you’re selling.
• What do they actually want? Get a grip on what makes your target audience tick. Spoiler alert: it’s not always what you think.

Why do this? Because your whole game strategy hinges on choosing the right dance partners. Mess this up, and you’ll be doing the business equivalent of the chicken dance at a black-tie gala.

3. Size Up Your Demand: Time to Count Your (Imaginary) Money

Once you’ve figured out who you’re selling to, it’s time to put some numbers behind your bravado.

• How much do you think you can sell? Guess how many units you can move without looking like a fool later. Imagine you’re a car salesman with only two cars on the lot—dreaming of selling 500 isn’t going to cut it.
• What’s your projected revenue? Multiply units by the price point to get your revenue estimate. Keep in mind, this is all virtual, so feel free to go a little wild. But remember, overestimating means you’ll look like you’ve bitten off more than you can chew.

Get this right, and you might even convince yourself you know what you’re doing.

4. Productive Capacity: AKA “How Much Stuff Do We Need?”

Alright, now that you have a clue about demand, let’s talk about meeting it. You’re going to need enough stuff—factories, employees, coffee machines, whatever—to actually fulfill it.

• What’s your production capacity look like? If you’re manufacturing, it’s the number of factories. If it’s services, maybe it’s the number of desks or support teams. Overdo it, and you’ll be twiddling your thumbs with excess stock; underdo it, and you’ll have unhappy (but still imaginary) customers.
• Got enough bodies on deck? If it’s humans you need, consider what you’re paying them. Too low, and they might peace out; too high, and your CFO (you) is going to be tearing their hair out.

Productive capacity is a dance between “I need all this stuff” and “Whoa, why did I buy all this stuff?” Tread carefully.

5. Numbers, Numbers, Numbers: Get That Spreadsheet Fired Up

Alright, consultants and spreadsheet lovers, this is where you shine. Simulations are driven by numbers. If you’re not using a spreadsheet to optimize every little decision, you’re flying blind. The teams who dive deep into financial modeling and analyze every metric—those are the ones who usually come out on top.

So, pull out Excel, Google Sheets, or whatever tool floats your boat, and model out every decision. If you want to prove you’re management consultant material, this is your proving ground. Get comfortable with the data and let it guide your strategy.

6. Money Matters: Cash In, Cash Out, What Now?

Here’s where the rubber meets the road. You’re building all this capacity and attracting all this demand—but can you afford it?

• Can you fund this beast? If not, you may need to go begging for cash. Look at financing options—loans, equity, perhaps even selling a kidney. You’re the CFO, make it happen.
• What if you actually have too much cash? Well, good on you, Captain Moneybags. Either reinvest it, pay out dividends, or find some money market options to make that excess work for you.

Think of it as the grand balance between debt, equity, and keeping yourself out of hot water with your imaginary board members.

Conclusion

So there you have it: your crash course on not crashing your simulation. Are there a million more nuanced decisions you could make? Sure. But in the heat of the game, start with these questions. And for those facing down that terrifying wall of data, remember: it’s just a game. (But yes, also a brutal training ground for the real world.)

Instructors, students, and fellow simulation wranglers—what do you think? Have I missed anything? Tell me your horror stories or pro tips below!

To learn more out more about how simulations can be used to train your current and future leaders, please contact us today