First you need the basic knowledge:

For a high technology business these days, this may mean a university education or equivalent in the right area. If you are studying Engineering then make sure you also pick up the basics of business. One very effective method is the use of business simulations. The best ones provide excellent experiential and quantitative learning of the key ingredients, profit and loss, balance sheets, marketing, financing the business and most importantly – bringing all the skills together by team working.

You need the skill base.

Anders Ericsson postulated the 10,000 hour rule – that works out to be 5-10 years working in the relevant technology. Specific examples; The Beatles and Microsoft’s Bill Gates are given in the book Outliers by Malcolm Gladwell.  The key element here is that you need long enough to know what works and what does not. Interestingly this period will probably include some initial failed attempts – very important learning. Frank Williams at Williams Grand Prix engineering is just one a classic example; early failures did not deter him.

You need your team

Invariably you alone will not have all the detailed skills required, or the desire to do all that is needed to be successful in business. Building your team is extremely important as they can make or break the venture. They can also “steal” the business so great care is needed (and a fair dose of paranoia).  Choose the skills you need carefully – typically you may need, finance, marketing, sales, manufacturing, technology, logistics etc. Try to get the best there is and don’t be afraid to pay them more than yourself- this is not about pay prestige, it is about results. Short term consultants can also work.

Clarification of team roles, rewards and time scales is very important. One very important, rarely mentioned reality is the transient lifetime of any team. A successful venture will grow quickly and as it evolves will require new and different skills. Some team members will need to go and new ones to come in, at all levels, perhaps eventually even you. Be prepared for this, plan ahead and keep on learning, regular sessions on the business simulator will always be beneficial – like sessions in the gym.

Finally

Goes without saying that you also need a clear vision for the business, along with drive, ambition, courage and determination.  Most importantly, you also need to conduct your business ethically, with concern for your employees, customers, suppliers and the society and environment you operate in.

The aim of business simulations is to gain a better understanding of how it feels to run a corporation and attempt to produce a retained profit. Unfortunately that’s not as easy as it sounds, so here is a list of 5 top tips to do well in any business simulation:

5. Understand as much of the terminology as possible before the simulation starts. This will give you more time to concentrate on planning your decisions rather than attempting to decipher unusual business terms. Help is available, so use it wisely!

4. Make a business plan to give your team a definite strategy. This will make sure that all your decisions have sound logical reasoning behind them, and allow you to get the most out of the simulation in terms of understanding and knowledge.  Also, know what you’re trying to achieve. This will help to start the ball rolling, so make a list of core values that your company should have and design your products and marketing strategies around this. This is a good stepping stone on the way to building a company image.

3. Do some research. Investigating the current real-life market can give you clues and insight into how the simulation will progress, giving you  the opportunity to get ahead with sales and profits.

2. Read up on the facts and how the simulation works. If you know what information you have been given and how to use it, you are guaranteed to avoid silly errors that can creep in through lack of understanding. This will allow your team to concentrate on a cohesive business strategy to build up your business.

1. Most importantly, communicate with your team members! This is vital for success in simulations just as it is in real-life situations. If you consult other members of your team and make decisions diplomatically based around as much knowledge as possible, you are far less likely to make mistakes. This will result in a far more successful business as well as encouraging team spirit and good working relationships.

Good luck!

If you want to know the best way to succeed in any of our business simulations, whether you’re running Executive, Retailer or Entrepreneur, our team at April Training have put together a short list of the most important things to remember in business. If you apply these skills and techniques to our simulations, you should be well on the way to success!

1. One of the key things to remember when running a business is to make a firm strategy that is flexible enough to account for unpredicted changes. If you have a clear idea of where you would like to be, it’s much easier to get there.

2. Another important thing to think about is time-scales. Within the simulations, just like in the real world of business, there are often time limits. This means you have to think on your feet and make quick but informed decisions. Also make sure to incorporate these limits into your initial plan.

3. Keep on top of the figures. The most imporant aspect of a business is its abillity to generate income, so make sure that you understand the finances and know how you’re going to get the most out of what you start with. Always keep your eyes open for new opportunities!

4. Finally, be aware of the market. If you know there is a gap in a particular sector, there could potentially be money to be made so don’t lose the advantage and let it go to waste. Market sizes are also absolutely key when it comes to profit-making, so market research can prove to be invaluable (both in real business and within simulations).

Good luck!