Do not be held down by idealism during entrepreneurship

An idealistic pig and a result-oriented pig started their own real estate companies. The idealistic pig always pursues perfection. He thought that if enterprises become larger, they must first have an advanced enterprise management system. With these advanced management models, as long as they can effectively manage and reasonably evaluate the work of every idealistic pig, in a well-developed management team, all these idealistic pig perform their respective duties, which can promote the enterprise phalanx towards the set goal.

Result-oriented pig has always been practical. He thought that companies must ultimately rely on performance, and good performance must first have good sales. ThereforeHe builds and sells houses by analyzing customer requirements, and analyzes customer demand changes through sales results. He has also set up a good incentive system to win the award for the result-oriented pigs who have made significant contributions to sales in the current month.

A year later, the two sides compared their entrepreneurial results. The idealistic pig is less than half of the result-oriented pig. The idealistic pig is puzzled. How can a management system that has been set up with so much money be useless? "Why is the perfect system inferior to extensive management ?" Perhaps the question in the fable is also confusing many of our CEOs and managers, especially those in the entrepreneurial period.

Making money is the truth.

The fundamental mistake of idealistic pig is to ignore the hard principle of making money in the entrepreneurial stage.The entrepreneurial period is result-oriented rather than process-oriented. It is unrealistic to hope to achieve profitable results through standardized and perfect process design.In the storm of either survival or elimination, it is true that only the market-oriented, customer-oriented, flexible response, and the first barrel of gold that can breathe the breath of entrepreneurs. Others are beautiful lies. The window paper of Utopia cannot be broken. Just like an idealistic pig, it is lost in the trap of winning the so-called system. Q: Can entrepreneurs afford the opportunity cost of sacrifice under complicated systems? Can entrepreneurs afford to overemphasize the communication cost in the process? Can entrepreneurs afford the management cost of maintaining system operation? Practice tells us that the answer is no. Maybe the idealistic pig will not fall down on its arrogant head, but it will always admit that reality is always a reality; it is effective to make money.

Who is the winner of cash flow

The key to the success of a result-oriented pig seems to be sales performance, but in fact it should be the cash flow behind the performance. What entrepreneurship is pursuing is not a scale or profit, but a cash flow. If the scale is large and there is no profit, it is impossible to guarantee the sound development of the operation. If there is profit, we will not consider the accumulation of the original capital for sustainable development. Instead, we will try again with a red eye, once the result suffers setbacks or the funds are slow, it is very likely that all of them will be broken. The cash flow is like a sufficient, unoverdraft body of nutrition. It can supplement the gap and allow start-ups to take the initiative in the market and take the initiative in competition.

The cash flow determines whether entrepreneurs can afford to pay fixed monthly expenses on time, whether they can invest in supporting the normal operation of the company's business, and whether new profits can be used to expand the scale, can we avoid the side effects of debt operations? All these are real problems. Survival means that funds become the God of Wealth, come and go, and come again; survival means loss, profit, profit and loss. Only when profit becomes a stable cash flow and you determine a business model that can truly continue to bring profits to the company will the start of your business be deemed to be over and enter the development stage.

Utilitarian is true

Plato said that there are two horses in the human heart, one is an emotional wild horse and the other is a rational horse.For entrepreneurs, there are two horses in their hearts: utilitarian and ideal horses. The "Basic evergreen" tells us that only the pursuit of high distance can lead to the sustainable development of enterprises, so our hearts are full of the dream of the ideal country, and we hope to create a perfect corporate philosophy through entrepreneurship. But countless facts tell us that utilitarian is true. Extensive management is effective because it captures the themes of making money, cash flow, and survival. Perfect management is aborted because it does not do the right thing at the right time and place.

The stories of idealistic pig and result-oriented pig actually clearly tell us what kind of entrepreneurs can truly succeed, and what kind of entrepreneurs can only be the hero of Don gikode ".