Simulate your business
About this good practice
ALMI is as Business development organization who provides support to firms with up to SMEs from all sectors. Almi is owned by the Swedish state and is the parent company of a group consisting of 16 regional subsidiaries. The regional subsidiaries provide loans and business development support. During the pandemic ALMI redeployed a non-financial business model simulation support. In this support, the firm together with business coaches makes changes to components of the business model to see how the firm will survive in different scenarios of pandemic influence if their financial situation changes. The firms then receive an action plan. By doing such business model simulation and scenario exercises, firms could rethink, make changes, and launch new and adjusted business models (e.g., changes from global suppliers to more local and sustainable suppliers) which were more resilient in uncertain times. As part of this process, ALMI also lifted good examples of firms making changes to their business models during the pandemic and success stories as inspiration. After this business model simulations, companies which were deemed financially viable but have been negatively affected by the pandemic were offered a bridging loan to sustain their liquidity. This support is still available for firms.
This support is a part of Busniess development focus. The income in Business development amounted to 125 million kronor and consisted mainly of project grants (2021). This support requires little resources i.e., 1-3 hour meeting between a business coach and business owner(s).
Evidence of success
This practice is considered a good practise because:
It focuses on the business model which is at the heart of value creation, delivery and capture.
ALMI provides an additional financial support in terms of loans to companies deemed financially viable but negatively affected by an ongoing crises.
The firm gets an understanding of how the cash flow, profit and balance sheet are connected to the business model.
120 companies have participated in the simulations in Östergötland.
Potential for learning or transfer
This support requires little resources i.e., 1-3 hour meeting between a business coach and business owner(s). Thus, it can be adapted in regions even with limited resources.
The simulation questions and visualization tools can be translated into different languages and used after initial training for coaches.