10 million dollars to buy the electric business Entrepreneurship Lesson

Six months ago, small a excited to tell me, the industry well-known enterprises invested tens of millions of yuan to establish the same city http://www.aliyun.com/zixun/aggregation/27006.html "> Online supermarket, small A is the founder of this project, but also a small number of original stocks , if the project succeeds, small a becomes a boss. Wow, it's a click. I'm so excited, that's a qualitative change.

So the team, find warehouses, build systems, purchase. The preparatory period spent 9 million yuan (of which commodity inventory 5 million, system 1.5 million, team 1.5 million yuan, office administrative warehouse, etc. 1 million yuan), 5 months after the website online. In order to hit, the first phase investment 3 million promotion fund.

Results are far less than expected, even if the 0 profit promotion, sales are still lower than promotional funds, poor performance so that major shareholders lost confidence, had to stop the project, tens of millions of money to naught.

If you come backwards,

When the project was made by small A, the goal was to reach 2000 orders per day, and by that expectation they pushed back the input and cost components:

2000 per day, you need 3000 square meters of warehouse, rigorous mature ERP system, complete departmental structure. A team of nearly hundred people was needed in the beginning, millions of of the inventory.

All this makes small A's companies spend a lot of money.

According to the desired goal planning investment funds, can not say that the business thinking itself what problems. The problem is that a whole new thing, with so much money to start with, does it take into account the consequences of not succeeding?

Why not try another train of thought: first indefinite so big goal, first uses the least funds to try the wrong, analyzes the key data to determine the next move.

Put a small amount of money to try the wrong project, do not need large-scale promotion, promotion costs are less, the expected production of fewer orders.

Fewer orders, no need to build a supply chain, do not need millions of of the inventory, can find a large supermarket to cooperate, the large supermarket stores as a warehouse, doing so although the high price of goods, the lower margin, but because of small orders, less loss, this saves 5 million inventory costs and 500,000 warehouse costs, And no warehouse staff of dozens of people are needed.

The company also does not need to spend 1.5 million to establish ERP system. If the order quantity is small, simple system plus manual processing can solve the problem.

During the trial and error period, the promotion of less, not to build a supply chain, not to build large systems. The corresponding need for fewer people, the corresponding office equipment is also less. It is expected that the trial and error input will not exceed 1 million.

If the operation is smooth, then invest in large funds, if not feasible, change the business model is easier, the loss of funds are small, and there are more space trial and error in various business models, the likelihood of success is greater.

Core elements of the project

For the mature business model, there are enough cases to be positive, without trial and error. The mistake of small A is that it's a whole new business model, and everyone is still groping, but they set an outrageous goal.

How do you know if your goals are reasonable?

Different projects, analysis of key data indicators are different, we all know that "customer contribution net Profit = Customer Patronage * Guest Price * Gross margin-New customer introduction cost-other costs." There are a lot of factors affecting profitability in this company, but for the new Business-to-consumer, there are two key data:

The first is "New customer introduction Cost", which represents whether the promotion budget can attract enough customers.

Second, the "Loyal customer conversion rate" represents the ultimate net profit customer number.

For example: A new website for the Business-to-consumer, the promotion of the budget is 25 million yuan, the target is 5000 single per day. The definition of a loyal customer is the average monthly shopping,

This means that the sales target of 5000 orders per day requires 150,000 loyal customers.

If the new customer introduction cost is 50 yuan, the loyal customer conversion rate is 30%, then must reach 150,000 member, needs 25 million promotion expense.

Therefore, when the new customer introduction cost is more than 50 yuan, the loyal customer conversion rate is below 30%, the project cannot achieve the goal.

If the target and the actual performance data are not very far apart, then control the other costs, you can strive to be flat or profitable; If the data is too large, then the business model is problematic, should be adjusted earlier, and in the new trial and error process to repeat the above data analysis steps.

For example, the current fierce competition of electric dealers has greatly increased the cost of introducing new customers. This is the market, you can not change. You can only try to improve the loyalty of the customer conversion rate, and this depends largely on the customer in your shopping experience.

Small a company provides the shopping experience is: goods complete, free shipping, the next day Tatsu door-to-door, cod.

Is it a cow?

For those who are already accustomed to the internet shopping spree, these are only the most basic services. Small a company only do this, how can we retain the mainstream customers?

Therefore, in the trial and error period, small a company can try a certain range of the city with a 2-hour fast door-to-door, you can try every night 19:00-22:00 fixed time to focus on door-to-door, you can try to establish a cooperative (self) pick-up point, you can try to unit customer purchase services, you can try for the University city Industrial Park, plant special services, can also adjust the structure of goods, services in different regions, different groups of people.

Greater success rate

General projects generally experience the development process of argumentation period, preparation period, business period and development period. The scientific demonstration process can improve the project success rate. But only through the preparation, after the business to really know whether the project is feasible.

After introducing the trial-error analysis method, the project process changes as follows: Argumentation period, trial and error preparation period, trial and error period, business preparation period, business period and development period. If the trial and error period is unsuccessful, it cannot enter the business preparatory period, so that the project feasibility can be known with a smaller cost.

Successful innovation projects are particularly suitable for the introduction of trial and error analysis, business in the original want to do a project, the results found B project opportunities, the final project in the success of the C case. Trial and error analysis can be in the same general direction, try different business models, deepen the understanding of the business nature of this direction, practice a new business model.