Book excerpt-36 rules for entrepreneurship 5: How to choose the direction of entrepreneurship

This article continues with the content of the previous series. The fifth part of the 36 military rules for entrepreneurship is as follows: how to choose the direction of entrepreneurship

Divided into two parts

I. Make the best market

If possible, start with the best market for entrepreneurship. It is better to take a small share in a large market than to take a large share in a small market. If you choose to start a business with half the effort, do not do anything. You must seize the rigid needs of users to start a business, and find a balance between personal interests, personal expertise, and market needs.

It is necessary to closely grasp the strong needs of users and solve their needs. The strength of the Demand determines the size of the market. The stronger the demand, the larger the market.

Requirement: the user needs to pay the price.

Questions about the product: 1. Who is the user? 2. What problems do they solve with this product? 3. How important is this question for them? 4. Is our method simple enough? 5. Does the price they have to pay match the income?

You cannot serve or satisfy everyone's needs. From an economic perspective, giving up some users is often the most economical choice.

Distinguish between true and false requirements. For example, if you ask users whether they like diamond and need diamond, all users will say yes and then ask if they will spend money to buy diamond, however, when you ask the user to pay for it now, even if you make a discount, many users will not buy it. The reason is very simple. answering the question is two different things than taking out real money. The need and purchase are two different things.

Enterprises should choose the direction like this: 1. The market should be large enough; 2. Things should be meaningful; 3. Things should be innovative.

If an entrepreneur chooses a small market as soon as they come up, it will be useless in any way, because they cannot raise big fish in a small pond. Five years, three years, and a year or two.

Ii. Subtraction

The essence of subtraction is focus and self-recognition accuracy. Success is because we have done the best of one thing, not a lot of things.

Resources are always scarce and there is no free lunch in the world.

The vast majority of successful business models are very simple. 1. The starting point is simple to solve a rigid requirement of users. 2. The solution is simple, the wisdom of entrepreneurs lies in finding a simple and clever way to solve users' problems. 3. Focusing on simple startups rather than seeking for perfection, not seeking for big or normative content, concentrate all resources to maximize the core tasks.

To achieve four minimum values: 1. Identify only the most critical strategies and concentrate on breaking through one point; 2. Set only the minimum indicators, and multiple indicators must be scattered, if other indicators are achieved, the core indicators must be qualified. 3. Only the most out-of-the-box people are used. If they are not competent, they must replace rather than add people. This forces everyone in the organization to survive the fittest; 4. to the minimum extent, give the subordinates room for outflow.