Use Case

Bid Smart. Grow Confidently.

Know your real costs before you commit. Win profitable work, plan realistic expansions, and get loans approved with data-backed projections.

The Small Business Reality

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Bid Too Low

Win the job, lose money. Costs always seem to run higher than your estimate.

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Bid Too High

Lose to competitors. Padding estimates with gut-feel percentages prices you out.

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Expansion Gambles

New equipment, new location, new hires - will it actually pay off?

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Loan Guesswork

How much to request? Banks ask about contingency. You're guessing.

Know Your Numbers

1

Enter Your Estimates

For each cost item, provide three numbers: best case, typical case, worst case. You already think about this - now capture it.

2

See the Real Range

Monte Carlo runs 5,000 scenarios combining all your uncertainties. Get your P50 (likely), P80 (safe), and P90 (very safe) totals.

3

Decide with Confidence

Set bids, plan budgets, and request loans based on real data - not gut feel.

Three Ways to Use It

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Bidding on Work

Know your floor. Set your margin. Win profitable jobs.

The Scenario

You're a contractor bidding on a kitchen renovation. You've estimated costs at $42,000. Your usual approach: add 15% margin and bid $48,300. But is that enough? Too much?

Your Line-Item Estimate

Labor: $18,000
Materials: $15,500
Fixtures & Appliances: $6,200
Permits & Other: $2,300
Estimated Cost: $42,000
+ 15% Margin: $6,300
Your Bid: $48,300

Risk-Adjusted Reality

P50 Cost (Likely): $44,800
P80 Cost (Safe): $49,200
P90 Cost (Very Safe): $52,600
Break-even Bid (P80): $49,200
+ 15% Profit Margin: $7,400
Recommended Bid: $56,600
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The Insight

Your $48,300 bid has only a 50% chance of making your target margin. At P80 costs ($49,200), you'd actually lose $900. For 80% confidence of hitting 15% profit, bid $56,600. If competition is fierce, you now know your floor: anything below $49,200 is a likely loss.

Your Bidding Range

Loss Risk <$49K
Tight Margin $49-54K
Target Profit $54K+
🚀

Planning an Expansion

New equipment, new location, new service line - will it pay off?

The Scenario

You run a landscaping company and want to add hardscaping services. Equipment, training, and initial marketing will cost "around $35,000" and should bring in "about $60,000" in new revenue the first year. Good investment?

Your Back-of-Napkin

Equipment: $22,000
Training: $5,000
Marketing: $4,000
Other Startup: $4,000
Total Investment: $35,000
Expected Revenue: $60,000
Projected Profit: $25,000

Risk-Adjusted Analysis

P50 Investment: $38,500
P80 Investment: $44,200
P50 Year 1 Revenue: $52,000
P20 Year 1 Revenue: $41,000
P50 Year 1 Profit: $13,500
Worst Case (P80/P20): -$3,200
Probability of Profit: 72%
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The Insight

Your "sure thing" $25K profit is actually a 72% chance of some profit. Realistic expectation is $13,500 year one, not $25,000. And there's a 28% chance you lose money the first year. Still worth doing? Probably - but budget $45K, not $35K, and don't count on that revenue until you see it.

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Loan Application

Request the right amount. Justify it with data.

The Scenario

You need financing for a new delivery truck and route expansion. You've budgeted $65,000. Do you request exactly that? Add a buffer? The bank will ask questions.

Your Budget

Truck Purchase: $48,000
Upfitting/Wrap: $6,500
Insurance (First Year): $4,200
Route Startup Costs: $6,300
Total Budget: $65,000
Loan Request: $65,000 ?

Risk-Adjusted Request

P50 Total Cost: $68,400
P80 Total Cost: $74,800
P90 Total Cost: $79,500
Contingency Needed (P80): +$9,800 (15%)
Recommended Request: $75,000
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What to Tell the Bank

"We're requesting $75,000 based on Monte Carlo analysis of our cost estimates." Base budget is $65K, but analysis of 5,000 scenarios shows 80% confidence requires $74,800. We're requesting $75,000 to ensure adequate working capital without over-borrowing. Here's the report.

📋 What Banks Like to See

  • Itemized costs with ranges, not single numbers
  • Quantified contingency with rationale
  • Confidence levels (P50, P80, P90)
  • Professional report they can file

Which Tool to Use

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Schedule Risk

Timeline questions

  • How long will this job take?
  • When will we finish?
  • Schedule buffer needed
Use Tool
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Cost Risk

Budget questions

  • What should I bid?
  • How much will this cost?
  • Contingency needed
Use Tool

It's Simpler Than You Think

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You Already Estimate

You think "labor will be $15-20K, probably around $17K." That's your three numbers right there.

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Excel Template

Fill in a simple spreadsheet. Optimistic, Most Likely, Pessimistic. Upload it.

30 Seconds

Get your P50, P80, P90 totals. Know your floor. Set your price.

$49/month. One Better Bid Pays for a Year.

Or $300/year - less than a coffee a day.