The third of the Ten Commandments: ignoring cost budgeting

Entrepreneurship at the time of graduation

Graduated from the famous University of Wei bin on the university campus has tried to do agent, from the simplest phone card, to the agency credit card bid, almost on the campus of the business he has tried. When he graduated in 2007, Wei bin thought "it's time to get in touch with real business." In July, he and his high school students in agricultural colleges and universities together, in Nanjing to run a Biotechnology Co., Ltd., the goal is to do water cultivation. "Water cultivation technology content is relatively high, we in the market after the investigation found that at that time in Nanjing do this very few enterprises, most of the southern supply, we think that the cost of local production must be better than the market competitors, so the department of the set of the wood." So, Wei bin took out the university during the accumulation of a little money, but also to the family to apply for part of the "sponsorship", a total investment of 120,000 yuan, by the students out of the technology, 2 people team began to test water.

Cost unexpected

What makes Wei bin difficult to accept is that the actual cost of running is much more than planned. The company rented 5 greenhouses, rent in advance to do the budget, is still in the plan. But the company really began to run when it was late October, two people suddenly found that to ensure the smooth growth of aquatic plants, must be rented to provide a greenhouse temperature control equipment, in addition to the cost of equipment, only a fee, a large shed in a monthly electricity bill will be more than 1000 yuan. In this way, the cost is much higher than the market. They also tried to use coal to control the temperature, and bought hundreds of heavy coal stove, but spent money and paid the manpower but did not solve the problem.

The transformation of helpless

In the last resort, Wei bin decided to change the soil cultivated flower leasing. "At first, I think the flower leasing should be profitable, a potted flower can receive more than 100 yuan a year, the cost as long as more than 20 yuan." "But the fact is not smooth, early 2008, the Southern heavy snow, the venue of the lack of maintenance, and so on after the year back to the company, Wei bin found that the flowers in the shed has been frozen to more than half. Just graduated from the lack of social experience Wei bin did not see clearly the details of the contract, all the losses ultimately by his own responsibility. The original good idea eventually only turned into helpless, last May, Wei bin finally decided to temporarily stop the entrepreneurial attempt. Now he works for a trading company, but he doesn't give up the idea of starting a business. "If there is a chance, we will try again, at least we will consider the cost more fully." "he said.

Comments

The animals on the prairie have their own laws of survival. Lions can only run faster to get food, and antelope can only run fast enough to avoid being the bad luck of food. The same goes for entrepreneurs, who are not competitors, but their bills. Let the income run over the cost, and you win.

The prescription learns to settle the accounts beforehand. In financial accounting, many entrepreneurs are accustomed to after-the-fact or side-dry calculation, lack of prior financial budget, the financial control of the matter. So many things are too late to find out when the financial crisis occurs. Second, do not be too simplistic when accounting for costs. Some entrepreneurs may even be as simple as profit by subtracting the price of a purchase by a few basic visible costs (rent, taxes, etc.). And their own time and energy are not counted money, and did not realize that some of the larger equipment and equipment for the monthly cost-sharing, over time, into the business seems to grow, profit has never occurred.