Business Strategy Simulator

Explore the physical limits of your business. Adjust parameters below to instantly see how time delays, interest rates, and cost structures impact your required capital, risk exposure, and pricing strategy.

by Kardi Teknomo

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1. Your Operations (The Inputs)

Core Economics
Mandatory monthly overhead (Rent, Salaries, Insurance).
Direct cost to produce one single unit.
How many units you plan to sell per month.
The price you currently charge per unit.
Market Friction (Time & Debt)
Months you must wait until the client actually pays you.
Cost of capital as a percentage (e.g., 2%).
Total cash currently available in the bank to fund operations.
The net profit you want to achieve after all costs.
Market Uncertainty

2. Strategy Dashboard (The Outcomes)

Risk Exposure Index

\(\gamma = \frac{F}{T}\)
0.00
Business Translation: Loading...

Degree of Operating Leverage

\(\Lambda = \frac{\rho}{P}\)
0.00
Business Translation: Loading...

Required Survival Capital

\(C_{req} = \frac{t(F + v \cdot n)}{1 - i \cdot t}\)
$0.00
Business Translation: Loading...

Required Minimum Price

\(p_{req} = v + \frac{(P + F + C \cdot i) v t}{C(1 - i t) - F t}\)
$0.00
Business Translation: Loading...

Baseline Probability of Loss

\(P(n < n^*)\)
0.00%
Business Translation: Before any client delays payment, there is a X% chance that normal market fluctuations will push your volume below the Break-Even Point.