Business is like a board game

Posted on by Cindy Yip

Estimated read time: 4 mins

Have you ever thought business is like a game? There’s a goal, with rules to follow, and competitors. Everyone needs to keep moving until the weakest opponents fall by the wayside, with the strongest still standing. You can plan your strategy but you won’t know precisely what your move will be after the next.

Not just a board game

Let’s use one of the most classic games as an example, Monopoly. Everyone is in it to win it; each person’s tactics differs.

There’s always one person that will keep investing in every property they land on, regardless of how much cash they have. Others may wait until they land on more expensive properties, and some may save their money as reserve cash.

The same cash will be flowing to different players in the game and into the bank. Your flow of cash is dependent upon which properties you decide to invest in and how many people land on your properties.

Every participant will play the game differently. Depending on how risk adverse they are or how much cash and property they have in hand.

The real world

In place of a board, you steer your business to different levels of success in the marketplace. The strongest players in your industry will ultimately survive in the long-run.

Many factors play a part in the business decisions you make.  There are external factors, such as the current state of the economy, or new legislation and laws; as well as internal factors, such as your company structure or cash flow.

Instead of investing in plastic houses, you need to decide how much and which part of the business to invest in. The main factor that will sway your investment decision may be the availability of cash.

Unlike Monopoly, the people who land on your properties (your customers), may not pay you immediately. The property you land on (your suppliers), will want you to pay them as soon as possible. Your availability of cash to pay suppliers depends on the speed that your customers pay you.

When pretence collides with reality

Do the two scenarios sound similar now? Apart from, one is a board game and one is real life; the real difference is the insight you will get. In Monopoly, opponents’ cash and property are on show. In business, limited information is revealed.

What is the simplest way of gaining insight into your own business, customers and suppliers? Credit checking. Find out how the movement of your cash has affected your creditworthiness, giving you an increased ability to borrow and invest. Or gain insight into your customers and suppliers to predict how quickly customers will pay you or how many more times you’ll be landing on that block of hotels.

Knowledge is power and can help you to keep passing ‘GO’ time and time again. Click here to find out more.

Are you looking to minimise your business’ exposure to bad debt and make informed business decisions every day? Qualify your customers, suppliers or contractors with Experian UK Business Credit Reports. Speak to one of our agents today to claim your free trial

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