Do business to have ideals, but not idealized to explore business models

As long as you are in Beijing's largest "village", you always know in time what is the most in the IT circle in the entrepreneurial fashion? To Xizhimen "Move Batch" Taobao girl, like the monthly take the new goods are different. For example, a few years ago, everyone was talking about Groupon (a US group buying site). Since my friend Wang first made the Chinese version of the United States network, and out of the Rice Group F group Cool Tuan Bao and so on forty or fifty group buy station. For now, imitating Foursquare, a location-based social-networking site, has become the latest fad.

In fact, this shrewd pragmatism has been popular in Zhongguancun for many years. The difference is that in the past, Liu and other generations imitate only the products such as PCs, and a new generation of Shanzhai is the whole operation of the method of making money, to change a more persuasive word-this is called "business model."

For them, an ideal business model should be this: first, it has the authentic Silicon Valley pedigree, a look is intelligent design, enough exquisite, can play, the best news effect;

Second, its technical threshold is not too high, do not need to occupy too many entrepreneurs resources, if able to rapidly expand their own replication better;

Third, whether it can make money quickly or not, at least foreign originals have already made the wind pay, in other words, it is possible to coax them to pay again.

The chain of reasoning is also clear: a popular model in the United States X 300 million of Chinese netizens need x Investor's Silver XNB's executive team = success.

Although I don't doubt the power of business models, there are some guys in the world who make a lot more money than others by doing something different. But I always wonder if there are so many good things in the world? Let you just follow the suit of the winner, you can make a full pot in another environment.

It is clear that real business is never so simple.

Mr Buffett's partner, Mr. Charlimange, has been advising us to use reverse thinking in everything. This means having to muster up the courage to try something that they love and seem logical. So, when we see the magic of the business model, can we look at its absurdity? Think about what the business model is not going to do for us? And how far is it from business model to business success? may be very necessary.

One

Who's the business model, MOM?

Mother's Day, who the hell is the model?

I think it should be a product (service). The so-called business model, according to popular academic theory, is a stakeholder based trading structure. Then, the product or service provided by the Enterprise is the basis of all transactions.

People who have truly experienced the whole process of entrepreneurship must know that the first three steps are the most painful: that is, how to brainstorm a creative inspiration, and then constantly in the practice of falsification, and finally found a only your opportunity, and turn it into a product or service, after that is repeatedly polished your products or services, to do everything possible to sell, Until someone's willing to pay for it.

And those who are ready to replicate, I think they've omitted the two key aspects of early entrepreneurship. Neither from the idea to the product, not from the product to the model.

Obviously, this is an opportunistic process. If you choose to copy the business model, you will naturally accept the whole definition of the product. What's more, you don't really understand where this definition comes from and where it goes. It's like 10 years ago when we talked about it, everyone thought it was selling books online, just because Amazon did it. Nowadays, everyone knows how to sell anything online. What about group buying? What is the domestic consumer interested in group buying? Where's The merchant?

Simply copying someone else's model does not guarantee that you can make a product that is as good as others, or even as good. Because, demand is the mother of the product. A good product or service must be from the solution of real problems and break the bottleneck of demand. But the demand is not necessarily my problem. Rich Americans have the habit of selling second-hand goods at flea markets, and many Chinese want to open up a small shop that can evade tax to improve their lives. So ebay is ebay, Taobao is Taobao. Ebay no matter how much you learn like you can not play Taobao.

Today everyone said that the QQ business model is very NB, it built a huge platform, attracted hundreds of millions of of users, so that what new things seem to be at your fingertips. But back in the early days of entrepreneurship, MA was very tangled. No one thinks QQ such a chat tool can create any commercial value, he tried to sell the company several times attempted. In fact, ICQ, the originator of instant messaging, has never had a decent commercial success, and it is just a tool software for AOL. Later, with the continuous improvement of QQ, snowball-like to grow, the continuous grafting of the SP wireless value-added, Japanese and Korean virtual goods and online games, only become unique. Today, MA is Tencent's number one "Product Manager".

So, sink down to first make a really good product (service) to impress your customers, regardless of your current business model is enough OK, real it will hatch out sooner or later, and most likely when you inadvertently inserted willow.

Two

The early bird may not be eaten by worms

Because the worm has not yet had a hole.

One of the necessary conditions for an entrepreneur to succeed is to have a keen sense of smell and a strong position. The best strikers on the football field are always able to get ahead of their opponents, anticipate the direction of the ball ahead of time, and ambush in the right spot ahead of time. And the difference between first-class and second-rate is the degree of certainty, just the right sprint, may be the goal hero. Reckless misconduct in advance, will only become offside of the unlucky eggs. I think there must be a natural ingredient in this, but it's still related to the day after tomorrow's training.

Today, the big industry trend is easy to judge. Just check which industries can grow faster than GDP growth for years. Anyway, I wouldn't advise you to go to a mining or a clothing factory. But the key is whether you can accurately grasp the "Qiantang River Tides" hit the time, and the location of the stay. This determines whether you are a seaman or a victim in the end.

Those returnees who have good English and close contact with the forefront of the international industry often have the advantage of first-hair. The United States, after all, represents the most advanced productivity. But they often grasp the "time lag" and "environmental difference", misunderstanding the potential demand of China and the current demand in the United States. As a result, a very advanced model is paired with a product that no one wants to use.

Not long ago, I attended a seminar on the growth enterprise model of Zhongguancun. There are enterprises to do SaaS software services, imitation of the model is the United States Salesforce, a very successful online management software service provider. Salesforce1999 was founded, is a company with a market value of tens of billions of dollars. But the Chinese company has been developing for 6 years and is still quite distant from success. In fact, the reason is very simple, the information level of Chinese enterprises with the United States at least 20 years, ERP is still at a dubious stage, you talk to the boss of the most advanced SaaS, how many people understand ah! How difficult it is to change the customer's consumption behavior.

In the DVD, Shanzhai, digital TV chips and other areas of the continuous success of the Taiwan MediaTek, its founder Mr Tsai in the entrepreneurial process, always obsessed with a word: outside-in. The word can be translated into positioning, but it is intended to "look inward from the outside".

Looking out from the inside, you see only the direction. Look from the outside, you can see the position. That is, you can judge yourself only if you have a good understanding of competitors and market information. The trade-off is "to Do,not", what you can do, what can not do, must be done in the heart of the count, after the choice is fit. A fit is when a decision is made to enter a field, and what mode is used to configure the resource.

In this way, you will not think of a long run as a sprint, and you'll first multiply the time you expect to succeed, and then divide the promised funds by one times.

Three

There is no perfect business model, only the most suitable model of the environment

In my opinion, the competition of business model is essentially a process of natural selection.

Who is more adapted to the changes in the environment, who can survive. Dinosaurs were more powerful than turtles, but dinosaurs were extinct, and turtles were breeding.

Peter Drucker, the journalist's late management guru, said that management is essentially a practice, not an exact science. Because science means avoiding variables that are uncertain as much as possible. And the greatest pleasure of management (especially innovation) is the challenge of dealing with these uncertainties. The most enthusiastic thing about business schools today is to study success stories and summarize business models. But it is likely that the business model that has been summed up for business schools is a "dead pattern".

Why do you say that? Because the success story is based on the past experience and lessons of backtracking, based on historical records of human interpretation. But no one dares to guarantee how business will change in the future. Just like now, all the people who shout the climate warming suddenly experienced one of the longest winter.

Fortunately, we have a myriad of commercial species, and businesses are doing Brownian motion in all directions. There will always be a handful of lucky winners who have successfully gambled on the environment and from which losers have grabbed the market. Why small businesses don't have to be afraid of change because they are more flexible and have no burden of baggage.

Six or seven years ago, the direct sales model of Dell computers was seen as the perfect model for the PC industry. Other PC companies are either forced to emulate it or opt out. And the starting point of this model, is a university dropout in the dormitory for others to save computers developed. But today, the new darling of business school professors has become Apple, and Dell is already out. Even Lenovo, a four-year-old, opened the CEO who had been dug up from Dell, claiming that Apple was the only competitor.

In fact, Dell's supply chain management is still efficient, its direct marketing model has expanded to more areas, but the power of the model is no longer the past. Because the customer's value orientation has changed, the industrial environment has also changed. Changes in the environment are driving the change rolling in. This change, it is likely to be a small number of small little people started, but directly hurt those Chang. Honghei Fuskand But BYD's embarrassing situation is the same reason.

There is no standard answer in the business world, other people's model, that is only the answers to other people's questions, not our answers, we have our own problems, we must rely on their own to find the answer.

Four

When you are in the army, just think about the company commander, don't think about the teachers.

All patterns must be designed around the resources you currently have and the resources that you may have to gain. Apple and Google's model is good, entrepreneurial you do not have the ability to learn.

This is a good reason to play a game upgrade. Guo Jing students have to learn the south of the seven strange, can learn Quanjin seven son, then is the Dragon 18 Palm, and then nine Yin Canon, this has the opportunity to become a real master. He knows his aptitude is stupid, the honest step by step, the result always meets the dog excrement luck. and competition with the Ouyang, Yang Kang and other students, always feel that their birth noble, gifted and intelligent, want to take a shortcut, anxious to become a top master. Who wins in the end?

The most successful internet company in 5 years may be Facebook. Founder Mark Zuckerberg's mission has been adjusted over time. When he dropped out of Harvard University in 2004, he created Facebook in the dorm, which he used to use as a tool for League at Ivy League colleges. In addition to being able to contact others in a way that makes friends, users can also send text and pictures to each other. Before Facebook opened to other schools, it first got 3,000 users of Harvard Square. 3,000 users are a trivial number for most websites, but for Harvard's 5,000-undergraduate school, it's a firm grip on the Harvard market.

After a market dominance, Facebook opened up to universities around Boston and slowly expanded to other Ivy League universities. Only later did he cautiously join the high school, then the company, until very later, to allow all the users to register. Mark is well aware of the principle of concentration, rather than being second in every market. And he was far beyond his peers ' patience and was constantly being brought up by people around him.

In fact, Facebook was not the first Web2.0 company to have Friendster, Hi5, Linkedin, Myspace, SecondLife, YouTube, etc., which were once considered star seeds. But it is clear that Facebook has done more than its rivals. Now, it has become the winner of natural selection and can challenge Google and Apple.

A soldier who does not want to be a marshal is not a good soldier, but if he worries about the marshal every day, he must not be a good soldier. When you even a small product is not ready, don't worry about the weeks xx will come in, Tencent will not come in.

Five

The business model is for investors, don't get yourself fooled.

In many entrepreneurial friends, the best thing is to spend the money of investors, do their own dreams.

VC is not a fool, just tell them a bright future is not enough to impress him. They also have to know how you can make money, how much you need to spend, and whether you have the skills and resources to make that money. The whole thing seems to be inconsistent with logic, the character does not meet his capital cost and risk considerations. What could be the worst?

So, no matter how your inner surging waves surf the shore, VC must be extremely sober and highly rational. VC needs business model more than you do. Because you only care about your own business, and he has to manage other people's money. Hundreds of enterprises, more likely to a family all in-depth understanding, VC needs a precise generalization.

When you are writing a business plan, you are actually putting your understanding of reality and the imagination of the future in a fully commercialized thinking tool. This is a test in itself. The business model, then, is the hard core of the whole story. In this perspective, an imported, proven business model is more real than your fantasy.

Once the contract is signed, the nature is changed. VC only care about what you do in return promises can not be cashed. After all, he is just a financial investor asking for short-term benefits (5 years-8 years). And entrepreneurs you need to consider the long-term competitiveness of enterprises.

Is the model envisioned in the business plan necessarily your future business model? It doesn't matter. Whether White cat or black cat, catching mice is a good cat. The real test of the entrepreneur is not your ability to write a business plan, but the ability to constantly transform, upgrade, or even overthrow the business model, depending on the environment.

PayPal is based on the development of encryption software and the use of PDA to transfer services to impress investors, and finally rely on web-based payment services have been successful. Zhou xx two times when the venture is to rely on Qihoo community search to get the investment, the result is a mess, but inadvertently inserted Liu's  security guards, the achievement of the second largest client in the country today after QQ.

conclusion, pockets of money in mind not panic, how to adjust your business model is in time, investors afraid you a way to the black, money finished, shrugged off the run, just like ppg.

Six

Business model is not your "moat".

The model will be your accelerator, but it can't be the "moat" that Buffett calls it.

From the accounting point of view, if the company as a negotiable assets, then your brand, products (services), patented technology, channels, market size, etc. can be discounted to sell, but only business model, no one will pay a dime for it.

Why? Because model innovation is just a idea, no matter how good ideas are said to be worthless, you even apply for a patent is useless. And it must be attached to a corresponding technology, product or service.

Coca-Cola's "original Slurry + bottling plant" model is so simple. Its success depends entirely on the continued high investment in brands and channels. Google is the first to master the world's most advanced search technology, and then learn from the overture Pay-per-click Mode, thereby leading to success. Technology + Mode has made an explosive effect. The fate of the overture, which owns the model patent, was bought by Yahoo at a very low price.

My observation, pattern innovation often occurs in what seems to be the mountain heavy water, internal contradictions have been very prominent industry. The patterns of long chains, long processes, and complex relationships are replaced by simpler, clearer and more powerful patterns. But this innovation is not in the model itself, but in a business organization to the business rules and the business environment of their own imagination, deconstruction and subversion.

At this moment, fate will suddenly favor some bold gamblers, will create the myth of individual overnight fame. But good luck won't last long with a man. Because, model innovation is easy to copy, but not sustainable.

Once you prove that the model is workable, there will be numerous copycat imitators on the market. This is precisely the problem of Changjiang Delta Spring and Koo. The competition in the industry is so fragmented that it means that it's not easy to make money. To do industry integration, leading the market, if you do not have the time to change space, which can only use money to space. Thus, "burning money" has become a natural extension of mode innovation. In order to maximize the economies of scale, a large amount of capital expenditure is unavoidable.

However, one side to expand the layout of happy enclosure, while to improve the product to improve the user experience, this is a painful dilemma (dilemma). How can a few companies do both at the same time? Can your team and management skills support this rapid integration?

Seven

Business is far more complex than business models

This is actually a common sense. But there are still a lot of entrepreneurs who like to advance on happiness.

In fact, all the ideas about the business model are sand-table drills, no matter how many times you deduce them on the sandbox, you will eventually have to face reality. Especially in businesses that need to deal with living people.

If the United States is the new king, then China is the remnant of the king. The American Business Culture Advocates fair competition, and tells the rules of the game. Because the environment has been very mature, not innovation there is no way out. China is a country of shanzhai and a controlling country, and business in China is a primitive jungle business. Everywhere is the gray area, everyone is imitating each other, the rest is faster than who, more than who endure can endure, than who more rogue.

Why the Twitter model has become a "scarf" in China. Why Sina can do it and the entrepreneur dies. Why the SP is stopped and alongside the mobile survival of the Shenzhou Thai Yue but earn pots full of pot. Why some companies clearly make money but deceive themselves, and other companies to open their eyes to the loss of the existence of a righteous ...

The so-called real business, not in the "win in China" stage, not in the CCAV of the positive publicity, not the entrepreneur "legend of the richest man" in the book, not the PE securities dealers jointly concocted prospectus ... Where is it?

It is outside the government's regulatory policy, in the black and white red and other multi-channel covert blending, in the Business School Club Circle, in the media coverage of the harmony is blocked in the Court association Exchange Shadow relationship ...

Some things don't do you never know, do you never want to say.

Chinese entrepreneurs need mentors, not teaching them business models and life insights, but how to see the Thin red line and the "landmines" that the red Line pulls.

In a way, I think Chinese entrepreneurs deserve more respect. Because in China to start a business, the recessive cost is bigger, the competition elimination rate is higher, the endurance is stronger. Chinese entrepreneurs, especially returnee entrepreneurs, are a group of idealistic people.

But Liu said a classic: do business should have ideals, but not idealized. This sentence is very Chinese.