Business Strategy Game Guide - How to Run a Business Part 2

In the last article we discussed to not beInstead of expanding unnecessarily for the mere
overaggressive especially in the early years. So whenpleasure of bankrupting others. My choice strategy is
is it good to be overaggressive and wield absoluteto pay off debt. We will expand in sequence with the
power against your competitors.industry, but if there is no need to expand, let's pay
Time has mellowed me out from my younger days,off debt so if in the event bad times come. We will
and I can now safely say it is not good to behave deep pockets and a high credit rating to
overaggressive. My early companies that were ablesummon resources from.
bankrupt other competitors were not themselvesAs well not being overaggressive keeps the balance
innately rich on the grand scale, although they simplyof power from falling through, therefore we can
had the most money. Channel your focus towardshopefully maintain our profitable standing for a few
your company and less emphasis on wanting othermore years. As well if someone else creates a price
people to drop.war, the perception would be we were defending
A company I am overseeing is extremely successful.our market share, and all that we do is in self
They have about 150k in net profit in only year 14,defense.
an absurdly early time to be getting that level of aThere you have it, pay your debts down, and don't
net profit. They are part of the top 25 for the week.be overaggressive in expanding. If you expand too
They are extraordinarily wealthy and hold greatmuch, and the industry falls through in a recession,
influence over the industry.and you have all the debt built up from wild spending
The company has 100k in cash, this now sets theduring the good days. You have created yourself a
tone for one of the happiest questions a companysituation to lose if anyone smart takes advantage of
needs to ask itself. What do we spend our money?it.
A company that is absurdly rich can expand theirUltimately it is safer to not be overzealous in running
factories, be overaggressive, begin wielding it'sbusiness, don't spend frivolously, bank away cash and
absolute power to bankrupting other companies. Ibe conservative making smart expansion decisions
have done this in the past, but are the long termthat are in relation with the industry. That's true
effects of being overaggressive good? No one hasbusiness strategy.
started a war against us yet, why rock the boat?