Entrepreneurship: How to build your business system?

Is it possible to develop a skill into a successful career that can be seen and touched? Yes. This chapter tells you how to do this:

Enhance your core competencies by constantly repeating

In the first chapter, we discuss the need for continuous repetition. This repeatable business system is centered on your core competencies: That's what you do best, it's the basic recipe for entrepreneurship, and personal influence and ultimate outsourcing allow you to develop your core competencies into a company with unlimited potential. One of the core features of all these startups is that they can find a way to keep almost everything that repeats.

Identify important standards

The most successful companies are repeatable formulas, because there are usually relationships that determine the success of the entire company. Discovering these key points is critical so you can focus and focus on improving them. In a book focused on winning: a strategy for growth in a chaotic era, zook a similar view persuasively. He points out that most companies are unaware of the importance of core functions and are unaware that focusing on those key points (which give the company a 80% return) can lead to greater success.

Health industry http://www.aliyun.com/zixun/aggregation/17478.html "> Venture capitalists Ross Jaffe think entrepreneurs need to understand" corporate physics. : A key force driving sales and profits in a company. He stressed that the most successful entrepreneurs have ideas or techniques, and they know how to reconcile the system and know where to put their time and energy in order to get more in return.

In the book "from Good To Great", Jim Collins a stronger view of the importance of standards, which he calls "the denominator" problem. Collins found that "every company that is good to excellence achieves the concept of a single ' economic Denominator '":

Consider the following question: If you choose a single fixed proportion-the profit (cash flow) per unit x, what variable x will have the biggest and most lasting impact on your economic engine as the system increases over time? This issue can give us a deeper understanding of the workings of an organization's internal economic principles ...

Do you need to set a unique denominator? No, but setting the unique denominator is more profound than relying on the three or four denominator to get out of trouble. The denominator problem as a mechanism allows you to more profoundly identify the key drivers in your economic engine.

When you start a business, you must recognize the core criteria that determine the success or failure of your business. This is important for the following reasons:

If you haven't identified the key points, you're not ready to start a business.

It's important to prioritize your time and energy.

If your standards are not set up properly, you are likely to ruin your future.

Let the time listen to you, not against you

Once we are profitable, we will no longer struggle with time. We turn time into our advantage, and most companies don't fail, but they don't have the time. The past startups and the time race-either to reach a cash-flow balance before the company's capital runs out or make enough progress to persuade more investors to fund the next round of development.

If you can make the company a profit from the start, or you can get a quick profit, you will beat all startups ' enemies-time-and turn them into friends. Once you are self-sufficient, you will of course feel the continued pressure of developing the company. However, you can focus on the opportunity to develop the company, rather than for the company's survival problems big headache.

Limited investment, the ultimate outsourcing, to win customers before quitting the formal work, the three-point formula can help companies generate cash flow as soon as possible, but also the first step to build long-term viability.

Using the scale effect

A key question at the beginning of entrepreneurship is: can companies achieve scale effects? First, scale is a somewhat abused word that differs in meaning in different contexts. The importance of enterprise scalability is discussed in the previous book. Where scale refers to the relatively easy growth of an enterprise, which means that with growth you do not have to hire additional employees to do the work and increase the volume of business with quality assurance, without bringing complexity to the company.

The concept of scale effect is different. First, it refers to the additional value that an enterprise obtains when it reaches a certain size. One of the jobs of successful entrepreneurship is to choose the market segments that can achieve the scale effect. Do you need to be the biggest entrants in order to achieve the scale effect? No. Do you have to rule your niche market? No. All you have to do is have a real impact on other companies in the business chain.

To achieve the 60% effect on the line

Perfection is a great enemy.

-Voltaire

A do-it-yourself entrepreneur must focus on time. The 60% rule is actually a matter of time distribution. In short, the 60% rule is that the best solution is to automate everything except the core business by using inexpensive Plug and play services, even if those services only reach 60% of your intended goal. That is to say, it's better to automate an activity cheaply than you personally do, even if automatic service only achieves 60% of the expected effect. Similarly, this law contains the view described in chapter II, "The Law of Success," which makes it almost meaningless to pay custom client software when it is possible to get cheap suboptimal choices from outside.

This seemingly simple law produces immeasurable power. In fact, for entrepreneurs with limited funds, complying with these rules is vital to the success of their careers. When I started looking for a cheap ASP platform for speed anywhere, there was an idea that I found that each service usually meets 60% of my requirements. And I'm very confident that if I take the time to study the services provided by these ASPs, I can do a lot easier and it will probably meet my 90% demand. But I soon realized that this was exactly the trap I had tried to avoid.

Yes, I can handle the specific operation. And, yes, I can do better than the cheap hosting ASP platform I intend to use. But I also want to connect 10 or more ASPs. If I outsource everything, the result might be the expected effect of just 60% per item. But in that case I can use a very inexpensive automatic operating system. The most important thing is that I can focus my time and energy freely on the target market, which is the foundation of the company's competitiveness. If I focus on setting up the customer base in the target market, I will find a solution to make my career a huge breakthrough--300% even more.

There is a trade-off here: if I carry out these activities myself, I can do it better. But there will be a multiplier effect: Once I take charge of some of these activities, my time will be fully occupied and I will not be able to focus on the activities that have made my career go by leaps and bounds. In each of these areas, I might get automated functional results that are 10% to 20% better than the existing ASP services, and the size of the companies involved has changed little. My conclusion is to abandon these benefits and focus on activities that can bring greater rewards. Again, focusing on high impact points also applies to self-employed entrepreneurs. By determining where to get the most profit and sales, I have a personal influence. These activities are worth devoting time and effort. As long as everything else works, spending time and energy chasing perfection is worth the candle.

Create flexibility

The rapid changes in today's business environment mean that you actually have to learn to make plans in an uncertain environment. This is not a rhetorical act. In fact, it's a better way to plan!

The way to plan for dynamic markets is to create great flexibility in the corporate structure from the outset. This is another reason why an ASP model has become a powerful support structure for entrepreneurs. ASP is usually customized monthly. With the company's development, this gives your company a great deal of flexibility in structural change. If you find that you need an extra support service, you can get it at a very low price right away. Also, if you find that an existing service is not necessary, you will not be bothered by expensive rents or long-term contracts. A plug-and-play business structure is inherently flexible.

Make good luck for yourself

Opportunity favors the prepared mind.

-louis Pasteur

Louis Pasteur says opportunities favor people who are prepared. Indeed, the more we think about it, the more likely we are to be "lucky". If you put the spare tire and the jack in the car, you can change the spare tire in time when the tyre is flat, instead of waiting for several hours on the side of the road for support.

For startups, good preparation plus opportunity, luck comes.

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