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  1. Tips:
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  3. Your projected year performance (the thing at the bottom left) is the most important thing to be tracking every year. Ideally, you want everything on the table on the left to exceed the values from the table on the right. The one exception to this is Credit Rating. As long as your credit rating isn't below a B-, don't worry about it too much.
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  5. Ending Cash: Ideally you don't want this value to ever be above 15,000 or so. The reasoning is that if you have cash remaining at the end of the year, it means that you didn't invest that money into greater R&D, greater advertising or stock buybacks.
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  7. Net Revenues / Net Profit - these don't contribute to your annual points scored, but its obviously better if those numbers are good. You should have a constant uptick in Revenue throughout the course of the game. Profit should start off not changing much because ideally you want to be investing in R&D and Stock Buybacks rather than profitting your investors. There will be plenty of time to generate profit later, for the time being work on company growth.
  8. Revenue : How much money your company earns.
  9. Profit : How much money your company earns, after accounting for costs.
  10. Even if your profits don't increase much, as long as your revenues are increasing 10-30% every year it means that your company is growing in Size. This is a good thing because it increases the likelihood for future profits. For the first 2-3 years dont worry about profit (as long as you're hitting the minimuim Earnings per share targets). Thereafter you can focus on profits so that your score gets higher than everyone else in the class.
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  12. Would you rather own a company that earns $1 million annually and spends $990,000 annually or would you rather own a company that earns $20,000 annually and spends $10,000 annually? On paper, both of their profits are the same and so youd be earning the same amount of money. But its obvious to us that the bigger company has greater possibilities for future revenue. So you'd want to own the company earning $1m.
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  14. How to grow your company:
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  16. Theres 2 strategies you can follow in Glo-Bus.
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  18. Strategy 1: Produce a better product than the competition. Spend a ton of money on research and development every year, and as the years go buy your drones will have longer battery life, more propellors, more futures, etc. Your cameras will have a bigger lens, more accessories, etc. This will result in you being able to price your products higher and creating more revenue every year. When I did glo-bus my drones started off at $250 and by the end I was selling $600 drones compared to my competition who were selling $300-400 drones because mine had more features. This strategy is kind of like Apple's strategy. More Research/Development translates to a better product over time. Then you can charge extra money on that product, as long as you advertise it well.
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  20. Strategy 2: Undercut the competition. Spend a ton of money on making your Facilities really great, then mass produce your product in much greater quantities than everyone else. So for example if everyone else is selling 1000 $400 cameras, you can build better factories that are more efficient, and sell 2000 of the $250 cameras.
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  22. I googled it when I was doing Glo-bus and people seemed to think that Strategy 1 was the safer bet and usually resulted in more revenue, so thats what I went with.
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  24. What I did:
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  26. In the initial years of the glo-bus simulation, I maximized R&D. Usually spent $40k on Action Cam R&D and about $20-25k on UAV Drones. I didn't want my Earnings per Share to drop tooooo low so I didn't spend more but if your numbers work out you can probably spend more.
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  28. This resulted in me being last place in the first 2-3 years because the competition were all spending only $10k or so on Research. Because they spent less on research, their company was more profitable, had greater return on equity and greater earnings per share. **This is normal.**
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  30. By year 8, my companies cameras were better than everyone elses. Most of my competition were producing Cameras that were 4-4.5 Stars, whereas mine were 5-6 stars in terms of P/Q Rating. P/Q rating is a measure of how great your product is. Because my P/Q rating was higher, it means that my cameras and drones sold for more money.
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  32. ***Important***
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  34. Every year for the first 3-4 years, you NEED to maximize your Stock Buyback. Go to the Finance and Cash Flow tab and buy back as many stocks as the game will allow you to buy back. The reason for this is that it'll make your company score better for every year thereafter.
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  36. Why this is the case: Lets say I run a company, called Company A. If this company makes $30,000 in profit and has 20,000 stocks issued, my Earnings Per Share will be 30,000/20,000=$1.50
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  38. Now lets say I buy back 1000 stocks of my company. For every single year thereafter, the denominator will be 19,000 instead. SO for a year where i earn $30,000 my Earnings Per Share would be 30,000/19,000=$1.58
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  40. Buying back stocks is so important that take loans out if you need to, thats what i did in years that I was broke. It goes without saying but never issue new stocks to generate income. If you issue new stocks then your denominator will increase and your earnings per share will decrease.
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