A case of deep reflection on the failure of entrepreneurship

Before starting their own business, it is best to go to the advanced company to work for several years, personally feel how a business is operating, employees are how dedicated and responsible.

In addition to the dissemination of truth, the most noble behavior of mankind is to admit mistakes openly, to deeply reflect the mistakes, to accept the profound lessons, to let oneself quickly awaken, can also make other people get profound enlightenment, avoid making the same mistakes, save all kinds of resources, and smoothly embark on the healthy development Road.

First, entrepreneurial failure cases

In the late 80, I resigned from the post of university teacher, came to a small joint venture, did not dry for three months, and the general manager of a major dispute, angrily, leaving the company. I was looking for work everywhere, and I was unemployed for three months. My neighbors look at me often at home, will be concerned to ask me: "Money teacher, today still at home preparing lessons, did not go to work?" "I can't answer, I can only shuffle the past." At that time, in my eyes, the days are gloomy, all people look at me with contempt, because I am so incompetent, such a lack of ambition.

One day, my bosom friend said to me: "He has a relative in Changzhou, opened a production of electronic welding Machine Company, products produced, is unable to sell out." The company is very difficult now, can you help him with the sale? ”

I asked, "Is there any salary and marketing expenses?" ”

He replied: "No, sales back, according to sales revenue of 5% Commission." ”

Because I didn't have a job, I gladly agreed. The next day, I rode a broken bike, started door-to-door visit (face Tu face, door by door), traveled the Shanghai dozens of related manufacturers, only one company director is willing to try, if the use of good, on the procurement of several units.

I conveyed this message to the company of Changzhou, and all the staff were jubilant. They all boast that I am a sales expert, in a short period of half a month has such sales results. However, the company's financial account has been stretched, do not have the transport costs, I have in their own money to take out only 500 yuan as transportation, the product shipped to the plant.

To my surprise, the product in the factory trial situation is not ideal, the product of a lot of problems, the most important thing is that the technical indicators of products do not reach their requirements.

After research, the company must invest in the existing product technology upgrades, and to add testing equipment, the factory before the strict testing of products. The boss asked me: "Willing to invest, to become the company's shareholder boss." "I did not do a careful analysis, I rashly decided to invest 20,000 yuan." If she discussed with his wife, she would not agree with my idea, only the Huashan road, to borrow money from friends, the annual interest is 10%.

However, unexpected things happen again, in the critical juncture of product technology upgrade, the company's only one technician must resign to another big enterprise to work. Our testing equipment bought, no technician operation, it equals a heap of scrap metal. We have no money to hire a senior technical staff, the results are conceivable.

The company finally closed down with a total loss of 300,000. My 20,000 yuan investment is also discreetly, I cannot recover a penny. It's a real house drain, and the money borrowed from a friend has expired, and it's time to repay the debt. I have no choice but to give my wife a showdown. Wife with tears in the home more than 10 years of 5,000 yuan savings to my debt, temporarily solved the problem. Since then, our family had a meal, I do not know where the money came from the next meal, live really dark days.

Later, I was fortunate enough to enter the U.S. Johnson Company, the time to tighten, spending more than two years to pay off the debt.

Ii. my Deep reflection

1. Experience how advanced enterprises operate

Before starting their own business, it is best to go to the advanced company to work for several years, personally feel how a business is operating, employees are how dedicated and responsible. An advanced company must have its own unique core values, which is the core management of staff ideas. It is difficult for a person to literally understand the core values of other enterprises without a special talent. I don't know what core values are when I start a business. All staff like disunity, enterprises once encountered some difficulties, we are not common to find ways to overcome difficulties, but blame each other, shirk responsibility, finally easy to break up, enterprises will inevitably collapse.

In the 15 years of management consulting career, the core values have also been studied for 15 years, forming a more complete system, the specific contents are as follows:

Core values are taken from the essence of Chinese traditional culture.

In Chuang Tzu's world, Chuang Tzu said: "Every hand, near will be a letter, far will be loyal to the word." This is the enterprise's good faith view.

In the book of Changes, Yue: "Poor is changed, change is pass, general rules for a long time." "This is the enterprise innovation concept."

In "Yueyanglou Kee", Yan Zhong-yan Yue: "First, enjoy." "This is the enterprise's view of devotion."

In "Han Fei zi", Han Fei zi yue: "The force is not to be defeated by the public, the wisdom is not an object, rather than using one person, better use a country." This is the corporate view of the team.

The simple statement of enterprise core values is: integrity, innovation, dedication, team. This deduces that the customer is the enterprise's first major resource, the employee is the enterprise's second largest resource business philosophy.

I have planned and implemented more than 10 enterprises, to import this system in all directions, none of them have been successful. I also gave lectures or training for hundreds of companies, except Haier, there is no Chinese enterprises have perfect core values, the main reason should be attributed to our entrepreneurs.

Which of the world's leading multinational companies has no core values? Why do they have such a strong vitality in hundred? This is the enterprise's own soul, its own spirit plays a key role.

So, before starting a business, you must ask yourself, do you have the core values of the enterprise?

2. Must have a product that can satisfy the market part demand

First, we need to make a precise statement of the contemporary concept of products. Modern marketing from EMKT.com.cn theory holds that the whole concept of products includes four levels of core products, tangible products, additional products and psychological products.

The core product is also called the real product, refers to the consumer buys a product to pursue the interest, is the customer really wants to buy the thing, therefore in the product whole concept is also the most basic, the most important part. A consumer buys a product not to possess or acquire the product itself, but to obtain the utility or benefit that satisfies a need.

The tangible product is the form that the core product achieves, namely the image of the entity and service provided to the market. If the tangible product is a physical item, it is usually displayed in the market as product quality level, appearance characteristics, style, brand name and packaging. The basic utility of a product must be implemented in some specific form. Marketers should first focus on the interests of customers when they buy products, in order to better meet the needs of customers, from this point of view to seek benefits to achieve the form of product design.

The physical characteristics of the product mainly refers to the quality, style, characteristics, packaging. such as refrigerators, tangible products not only refers to the refrigeration function of refrigerators, but also includes its quality, modelling, color, capacity and so on.

Additional products are all the additional services and benefits that customers receive when they purchase tangible products, including providing information, free delivery, guarantee, installation and after-sale service. The concept of additional products comes from an in-depth understanding of the needs of the market. Because the purpose of the purchaser is to satisfy a certain need, they want to have everything to do with it.

Psychological product refers to the product's brand and image to provide customers with psychological satisfaction. Product consumption is often the combination of physiological consumption and psychological consumption, along with the improvement of people's living standard, people's brand and image of products are more and more heavy, so it is also an important part of the whole concept of products.

Many young people start a business because they have a concept of a product that they think is unique. The contemporary society already is the knowledge economy Society, the unique product concept almost does not exist. How can we think of a unique product concept and turn it into reality when so many smart heads in China are thinking all day?

A road no one is walking, there may be two reasons: ① their own vision is not far-reaching, not thorough enough to see the wandering in front of the figure; ② this road bumpy, difficult to go, the people who walked died. As a young person, you may encourage yourself, others can not get through because they are stupid, and they are very smart, as long as they have a strong determination to go all out to overcome obstacles on the road, we will be able to achieve success. Courage and determination are commendable, but we must not underestimate the entrepreneurs who have sacrificed before, they may be wiser, more talented, more courageous and determined than you. Carefully analyze the reasons for their sacrifice, accept their profound lessons, and find a way out. Where is this road? This road is not a core product, but the other three levels of products, that is, products, additional products and psychological products.

Competition in contemporary society is not about what products companies produce, but what additional benefits they can offer (such as packaging, services, advertising, customer consultation, financing, delivery, warehousing and other forms of value).

3. Ability to finance sufficient funds

Contemporary Chinese society, small and medium-sized enterprises operating efficiency is relatively low, generally not high credit. Due to small and medium-sized business scale, technical level behind, it is difficult to adapt to the constantly updated market demand and increasingly fierce market competition, business risk increases, the original advantages of SMEs have been gradually lost, the loss of enterprises increased. In this case, for the risk investors or banks, their misunderstanding is that the majority of SMEs are not state-owned, more or less small and medium-sized enterprises with a skeptical attitude. For small and medium businesses, this scepticism is more pronounced.

In the process of entrepreneurship, finding enough venture capital is a key step in entrepreneurship. But for the small and medium entrepreneur, the financing difficulty has become the first problem which needs to solve in the pioneering process. According to the results of two surveys conducted by the People's Bank of China in 2007 on the loan support for SMEs by the PBC, although the ratio of financial institutions to SME loans has now reached 50%, the stringent loan conditions remain, It will take time to solve the SME financing problem thoroughly.

In this reality, we should finance the order should be: their own savings, wife's dowry, parents ' hard-earned money, friends and relatives of the funds, and then the venture capital institutions or bank loans. How can you succeed if you don't dare to devote yourself to a project?

Gbagbo have invested in their own entrepreneurial projects, do not calculate how much profit, a few years to recover the investment, but to think that the total loss of investment, we can still survive? That year, I just do not have this idea, the result has three years of darkness of life Ah! Therefore, we must leave the money to live, when the entrepreneurial failure, but also survive, so that we have a chance of a comeback.

4. Ownership of the core technology of the project

Throughout the world's successful enterprises, in the early days of entrepreneurship, entrepreneurs have mastered the core technology of the project. From the perspective of human nature, the initial success of entrepreneurship, relatives and friends will be gathered around you to enjoy the results of the project, once the project encountered difficulties, especially the financial difficulties, in addition to your parents, everyone including your wife will leave you. When you face an empty company, you know that the nature of human nature is already late. In contemporary society, the vast majority of mortal beings can only do with GAN, but can not do altogether bitter.

Recall that year, if I mastered the electronic welding machine core technology, can upgrade the product technology, manufacturing products in line with the manufacturer's requirements, will not be because the technical staff did not get two months of wages resigned, resulting in the tragic consequences of business closures.

5. Ability to organize a core team

The core team is the soul of the initial start-up company. The core team is a community of intimate friends or relatives in the early stages of entrepreneurship that rationally utilizes the knowledge and skills of each member to work together to solve problems and achieve common goals.

The core team has several important elements, summed up as 5 P.

① Target (Purpose). The core team should have an established goal, navigate the team members, know where to go, and there is no value for the team without the goal.

② Man (arranges). People are the core force that makes up the team. 3 (3) or more people can form a core team.

③ team Positioning (place). What is the position of the core team in the enterprise, who chooses and decides the team members, who is ultimately responsible for the team, and how does the team motivate the subordinates?

④ permissions (Power). The power of the leaders in the core team is related to the development stage of the team, in general, the more mature the team, the smaller the rights of the leader, the lower the leadership in the initial stage of team development is relatively concentrated.

⑤ plan. There is a two level of planning: first, the ultimate realization of the goal, the need for a series of specific action plans, can be understood as a goal of the specific work of the program. Second, ahead of schedule to ensure the smooth progress of the team. Only in the planned operation, the team will be closer to the goal, and ultimately achieve the goal.

If you do not have a shared values, the courage to take responsibility, the courage to reflect on the mistakes, in the bumpy road of entrepreneurship, the determination and ability to overcome difficulties, to achieve success in entrepreneurship is impossible. So, before starting a business, you have to think carefully about whether you have a pretty good personality to gather talent, have enough money to pay for their salaries, and have the ability to make them into an efficient, caring core team.

6. Have the ability to knit a good interpersonal network

In contemporary society, 15% of our business depends on our knowledge, and 85% on our relationships.

Product sales problems, the Government's relevant agencies to check the financial accounts, to the bank to obtain loans and so on, all need superb public relations art, the Company no one to finish the task, you have to personally to solve. And these things are related to your ability in this respect.

How to establish good interpersonal relationship with people? Communication is the most important part of interpersonal relationship, it is the process of conveying emotion, attitude, fact, belief and idea between people. Good communication refers to a two-way communication process, you are not a person in the speech, casting pearls, or let each other sing a solo, but attentively to listen to what the other side said? To understand what the other person is thinking? How does the other person feel? and give back their ideas to each other.

The communication process may be caused by the communication of their own characteristics or the manner of communication, resulting in misinterpretation, so the transmitter and receiver must be through constant feedback, to clarify the mutual acceptance and understanding of the consistency. In my 20 years of career, I created five disciplines for interpersonal relationships, as follows:

The first cultivation of interpersonal relationship

For any disagreement or even opposition, we must first affirm the other party's point of view, patiently waiting, looking for opportunities, use cases or data to negate each other's views, so that the other party to accept your views.

The second cultivation of interpersonal relationship

Good at standing on the other side of the point of view, fully understand each other's situation, good understanding, can quickly shorten the psychological distance between the two sides. This is the golden rule of interpersonal relationships-unto, impose.

The third cultivation of interpersonal relationship

Listen patiently to the other person's point of view, constantly subtly ask, explore the other person's true thoughts, look for common ground, and then use his point of view to convince each other.

The fourth cultivation of interpersonal relationship

It is the best and best gift in the world to discover each other's strengths and strengths and to compliment each other with appropriate language.

The fifth cultivation of interpersonal relationship

Earnestly look for each other's preferences, go all out to learn, and then cast, quickly become his bosom friend, we firmly believe that any difficult problems will be solved. This is the platinum rule of interpersonal relationship-the person's bosom friend, expensive in intimate.

Three． Concluding

At present, it is a good time to start a business. The policy relaxes, the public opinion relaxes, the opportunity unprecedented in front to lead the summons, therefore many university students all sharpening, is complacent prepares to start a business, even if the early period because of various reasons encounters setbacks, also unwilling to silence, is brewing the hardships, is revitalized.

Now the media is always doing positive publicity, aimed at encouraging students to start their own businesses, solve our employment problems, improve the Chinese nation's risk awareness and innovative ability, it is very important. For example, in a certain media reported so, many of China's private enterprises, such as Wahaha after Zong, the Feng of youth Treasure, Delixi of the Hu Cunzhong, Chint's Cunhui and so on. They have not read many books before, but each of them can lead their business to the leading position of their industry. They rely on their own courage and boldness, regardless of the gains and losses of personal interests, bite ambition and ultimately achieve the cause, create brilliance.

However, you do not see, more than 95% of the entrepreneurs are doomed to failure, and some even lost their own, the blood and tears of the case rarely reported in the media.

Contemporary society's entrepreneurship is not the same as 20 years ago, the market competition is more brutal, the individual requirements for entrepreneurs are very high. A person to succeed in entrepreneurship, must be from the pros and cons of in-depth thinking, we must use system theory to the entire project in-depth investigation, focusing on the cultivation of eight of emotional quotient, that is, Thanksgiving, self-confidence, curiosity, intention, self-control, interpersonal, communication skills, cooperation, Courage and self-confidence to face the entrepreneurial process setbacks and difficulties, so as to reach the other side of the victory. I wish the college students to practice diligently, to create their own brilliant career, to realize their dreams of life, you have succeeded, the Chinese nation's real rise of the moment is coming.

Source: http://www.sino-manager.com/NewsShow.aspx?PostID=9646&currNewPage=3