Little lose: Will be easy to fail to reflect on the size of the growth trap

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Source: I black Horse

Interviews/And Emboss/Wang Genwang

"Guide" when a start-up company gets financing, whether it's an angel or other rounds, it means it has a "running" capital. At this point, most founders will be ecstatic, think of the growth of the company's opportunity to grow, so, open a new branch, add people to the scale of performance, even at the loss of a 35, the results found, it is only the illusion of scale growth, the pattern of growth is not established, the capital chain of rupture is a fatal blow.

The protagonist of this article Dai is a large-scale growth of the illusion of deception, he steered the meeting Yijia 2012 suffered a capital chain crisis, once issued no wages, the number of employees from more than 60 people cut to 12 people. "Just before and after my baby was born, my company was in turmoil, you would be unstable, and there would be a lot of bizhai and debt collectors coming to you, and the pain of your family," he said. "Dai said.

will be easy founder Dai

Will Yijia is a conference company. Conference Company's revenue is a project revenue by overlapping, a meeting is a project. This mode of competition is the customer expansion ability and cost control ability. Dai wanted to scale it, he chose the path to open branch offices in various places, and then constantly training out of "ability is quite" a group of sales to expand customers, but he patronized forward, but no one to help him to actuarial cost of a project, in the end, the scale seems to rush very big (nearly 18 million yuan), but then how? The loss of human performance is totally unsustainable.

"You are not casually recruit a person to come in, copy three months, can become a Dai Kun, some duplicated three years can not become me." So, this is faced with the people who come in can not be as you expected to achieve business doubled. And if people are not, your non-standard business will not be, this is the 2B business. ”

"The company's account has been very tense, at that time may be because of young, just think of good, did not think of bad, think of rushing up on the line, and then desperately cheering, business volume is not enough to add people." Dai this to I dark Horse explained his original aggressive, the tone of the sigh and remorse.

"Fortunately now these have passed", just from the small defeat in the liberation of the Dai and to the entrepreneurial "sword" line. As angel investor Lei says, only the company that has died three times is truly successful, and the bird that Burns is not Dead is Phoenix. The following is the Dai founder of the I-Black horse's dictation.

I was a 2003 university graduate, after working a year to start a business, open a small restaurant. After the failure of 2005 I came to Guangzhou, and in 2007 it was easy to set up, now almost six years.

Our business is mainly under the line booking, in fact, is the intermediary industry, such as Ctrip, it is ordered the room, I ordered the venue, are to make the difference. Only Ctrip more standardized some, we are more dependent on people, and uncontrollable factors quite a lot.

After 2007 years and 2008 of development, (i) in the business of this industry also has a certain basis. 2008, we received a sum of hundreds of thousands of yuan investment, 2010 we took more than 2 million Yuan Angel investment. I just want to make the scale bigger and flush the volume up. The reason we want to rush up is because our company's model is, one is a hotel, one is the enterprise customers. This pattern does not require a long period of time, and its frequency is more dense.

And the company's account has been very nervous, at that time may be because of young, just think of good, did not think of bad, think of rushing up on the line, and then desperately cheering, business volume is not enough to add people.

By the end of 2011, the company's bubble had reached its maximum, with a staff count of over 60, and plans to set up offices in Beijing and Shanghai. Why is it a bubble? The company looks a lot of people, scene big, turnover one year also can do more than 18 million, gross profit is about 15% to 20%, but ultimately is not making money, has been in the loss.

In early 2011, I wanted to run a so-called economic chain, and then rented a 1100-square-metre office space, which was the beginning of my failure.

The most bitter time of August 2012, because before the development of too fast, many suppliers can not pay the payment, staff wages are not issued, and then a series of problems came out. I was like a dive into the water, after a stick hit, no longer come out, and then only a thorough transformation.

At that time, I face all the pressure on the money every day, maybe this month's account of the money is less, and pay not to go out, or is the supplier chasing run every day. Sometimes the employee's bonus should not be issued, the company is facing a very awkward state. So, not making money is the biggest disgrace to an entrepreneur. Make money first, live well, talk about development, this is the most important.

At that time also through the students to find some channels to finance, but I finally realized that the icing on the cake is a lot of people, basically not. The company every month is to cash turnover, once you meet the "fund" Duandun, pay not, will face various crises.

In the August 2012, the company was completely turned off. The original company has some business, with the company's development prospects become worse, the people have changed, the team also dispersed, the entire company faced with a crash. Because walk one, will take away some customers, people flustered panic, everyone is thinking, the company will be closed tomorrow. If people do not go, our business can still be normal turnover, and it is possible to survive that difficult period, not as now compressed so large scale.

From August 2012 onwards, the company decided to completely transition, the vast majority of employees were dissolved, only the software development and the big Customer department two departments, leaving less than 12 people.

The first step in the transformation is to consider making the bigger direction stronger, we have been doing business in the 2B field, (now) dozens of of people's small meeting will not expand, there are we do, there is no demand, mainly to maintain the original old customers, focus on more than 100 people meeting. Big customers come, there is cash flow and profit, become a profitable company, one months net profit of about tens of thousands of yuan, basically can guarantee the normal operation of the company. Now we are also doing 2C transformation, the new product will come out at about the end of May.

Reflections On Failure:

2B (note: To business business) is not bad, but the way you do it, I may be in the wrong way. I've been trying to standardize the company's products, but it's impossible to find out. Especially in the service industry, from booking to communication and communication with customers, to talking list, to the final deal and maintenance of customer relations, the whole process depends on social and personal ability of the boss. The whole process of dealing with clients, including negotiation, venue selection and final transaction, is also highly personalized.

Customers do not deal because of your product, but because of your personal bargaining power and professionalism. For example, I have run a 80% hotel in Guangzhou, another person to do, this can not be replicated. For example, I give a phone call to the hotel, the other side may give me a very low price, this is the first to rely on the brand, the second is based on your personal reputation and understanding of the industry. It's hard to copy.

Our business begins with a normal expansion and then slowly expands and trains people. But you are not casually recruit a person come in, copy three months, can become a Dai Kun, some duplicated three years can not become me. So, this is faced with the people who come in can not be as you expected to achieve business doubled. And if people are not, your non-standard business will not be, this is the 2B business.

And once someone succeeds, why is he following you? So far, the founders of four or five and Yijia similar companies in Guangzhou have come out from me.

I initially went to Beijing and Shanghai to open a branch office in order to cultivate them, so I let them go to grow up. Their departure is also very easy to understand, in other words, the company collapsed, certainly everyone has their own calculations, "the couple is the same as Lin Bird, the disaster of their respective flying", not to mention employees.

These six years are a painful phase, and the pain I'm talking about is the trajectory or the life that always makes you feel a sense of urgency, and you're under a lot of pressure. Just before the birth of my child, the company faced with unrest, there will be a large number of bizhai and collectors to find you, life is not stable, but also to bring the pain of the family.

Now looking back, in fact, it is my own problem, not doing a good job of cost control is the biggest lesson I get. At the peak of the time, the company's office space in Guangzhou only forty thousand or fifty thousand per month, the staff wages up to one months 350,000, the most direct result is a monthly cash flow tight. So the collapse of the company is actually my own reason, did not grasp the pace of development, I dug myself a very large "pit."

Mirror and sharpening stones

Everyone has what kind of status is not important, it is important that you imagine which state, for example, everyone wants to become Ma Yun, Shi Yuzhu and Liu's kind of giants, hoping to create a sky. This is our generation's dream, hope to create a career, and gamble all their youth and all the energy. And this process can also inspire your hormones, to that state, I guess everyone is desperate, but a little uncomfortable, you think that Jack Ma is very cool, not at all.

I find that entrepreneurship is a success, it is really a luck, two rely on experience, and luck for the majority, do not think Ma Yun success, how he is, or how many others, including our daily saw a little bit of achievement, to tell the truth, is not his own ability to how strong. The most important thing is luck, the second is experience, entrepreneurship has n many links, each link can kill you.

I once said a word, suffering is a grindstone, but also mirror, Grindstone is to grind their own, mirror is according to others. When you are in trouble, all the people around you will lie to you. When you encounter difficulties, you will find out who is the real friend, who is the real partner, who is only "drinks meet" people. This is a process, a kind of experience and growth, and after a difficult period, you will find that the most determined in your side is always your parents and family.

So you will have another feeling for life, is to do a little business, make a little money, in fact, also very good. If you can do this, let it be, if you want to, sometimes it will go wrong. Haste!