Working Capital Simulation: Managing Growth

Published by Harvard Business Publishing, this simulation focuses on the tricky balance between business expansion and maintaining sufficient cash flow. It teaches participants how to manage accounts receivable, inventory, and limited cash reserves.

As a business expands in the simulation, the costs of inventory and operating expenses quickly consume available cash. Players must make smart financing and operating decisions to avoid bankruptcy while funding their company's rapid growth.

The simulation is distributed by Harvard Business Publishing for use in business schools and corporate training. It offers a hands-on environment for understanding corporate finance and cash flow statements.

Participants must closely monitor working capital metrics, specifically accounts receivable, accounts payable, and inventory levels. Mismanaging these current assets and liabilities will lead to a severe liquidity crisis, regardless of the company's profitability on paper.