5 Top BSG Tips: From The Free Business Strategy Game Tips

5 Top BSG Tips
From The Free Business Strategy Game Tips

Guide At WinBSGOnline.com
1.Check for Price Elasticity
Always check for price elasticity. The Business Strategy
Game uses ranges to compute price & demand instead of a
fluid curve.
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Example:
• If you predict the industry average of shoes prices in
North America to be 50 dollars, The Business Strategy
Game might compute that you will sell 3M pairs of shoes
in NA between the price of $49.00 and $51.00 dollars.
So how do I implement this?
• Just set your forecasts and then test slightly higher price
points on the wholesale distribution screen to make sure
your not missing out on additional profit.
A few caveats:
1. The range becomes wider as the SQ & model number
strategies of teams deviate more.
2. This normally happens the most intensely during the
later stages of the game.
2.Buy Back Stock Early
Buying back stock is one of the only “tips” you can do in the
game that will instantly guarantee you a higher score
because it increases almost every metric you’re graded on
1. Increases your EPS dramatically
2. Increases your ROE dramatically
3. You can pay a higher dividend for less cash
4. Your stock price shoots up because of your higher
EPS, ROE & dividends.
Example:
• If your net profit was $25M in Year 10 and you had 10M
shares of stock outstanding, your EPS would be $2.50.
(25M/10M = 2.50)
• If you’ve bought back your 2.5M shares, you would have
7.5M million shares outstanding and your EPS would jump
to $3.33. (25M/7.5M=3.33)
• Roughly a 40% jump in score.
You Want To Do It Early Because
1. The game limits how much stock you can buyback a year.
It takes on average five years to buy it all back
2. If you’re following the right strategies, your stock price is
going to skyrocket it isn’t cost effective to buy stock in the
later years.
3. It gives you the option for a debt-equity swap.
3.Buy Celebrities Early
Buy celebrities with long term contracts in the early stages
of the game
• Celebrity purchase price normally follows either a bell
curve or a logarithmic curve. It starts out relatively low
and then peaks and falls off or peaks and barely increases
during the final years.
• Focus on the celebrities with the longest contracts during
these first few years. I suggest paying between 2M & 5M
dollars. Use your judgment though, celebrity pricing
normally depends on class metagame than an actual
science.
• You want to long-term lock in contracts at lower rates to
be as effective as possible
An Exception
• The one exception to this rule is when nobody bids on
celebrities in the practice rounds and multiple teams do
poorly. Celebrities can sometimes start out highly
competitive in this situation.
4.Predict Material Prices
• Always Predict Materials Prices
• It is largely responsible for the “I just don’t know what
happened, it said we were going to make an EPS of
$3.50, but we ended up with -$1.50” comments
• It is located on the Branded production screen. At the
upper left hand side, you’ll see a small box that looks like
a graph, half filled with green.
The prices of superior and standard materials are based on
supply and demand functions
• If more teams use a high SQ strategy, the more superior
materials will cost because of the increased demand for
superior materials will drive up superior material prices.
• The opposite is also true, the more teams perusing a high
SQ strategy will use less standard materials and thus the
costs will be lower.
How to implement it:
• Look at teams strategies and gestimate whether or not
they will be increasing their SQ ratings. If they are
increasing their SQ ratings higher… assume superior
material costs will rise and vice versa.
5.Re-Finance Loans
• If you’re employing a successful strategy, you will be
carrying debt. It is important to look for opportunities to
refinance your outstanding debt to increase your cash
flow.
• It is simple to do. First, check each decision round if your
interest rate has fallen or risen because of either an
increased credit rating or decreasing interest rates.
5.Re-Finance Loans
• Then, look on your Balance Sheet & Cash Flow report to
see which loans outstanding have the higher interest
rates.
• Finally, take out a loan for the same amount while paying
off the existing one.
• You can group multiple smaller loans together to take
advantage of this as well.
Thank You
• I appreciate all of the support and positive feedback you
guys have given me over the past few years.
• I’ve uploaded the slides to slide share. Feel free to view
them at the link below.
Contact Me
• If you have any questions, comments or want
clarifications, please feel free to comment or press like
below.
• I know the BSG can be hard to understand and that I
sometimes leave out concepts because of my familiarity
with the game.
• I respond to all comments the same day.
For the next five tips:
• For the next five free tips, head on over to my website and
request your free copy. You’ll find all of the information
you need to pick a winning strategy and execute it there.
WinBSGOnline.com

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