Bai CEO Wang Jianyue: Three essential Heart sutra for entrepreneurs

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Bai CEO Wang Jianyue

After graduating from university, I worked in two places: one is Microsoft, the other is now the people's network. His role has also changed from the original professional manager to the current entrepreneur. There are many opportunities for the Internet, the development is very fast, but the elimination rate is high. The "drama" of its development is beyond the ordinary imagination. For example, in 2005, we first tried to do classified information websites in China. By the second year, there were 3,000 similar sites in the country, but now most of them have disappeared.

What should you do as an entrepreneur in such a complicated situation?

Focus on limited things

A person can do a lot of things, but spend 5 years or even 10 years to do one thing is relatively few. I wrote a blog for 9 years, with the exception of one months of poor health and no writing, insist on writing a blog every day. Because I believe that the strength of perseverance, and implementation in the company management.

Bai since its inception in the 6 years, the company's main business and structure has not changed much. Even in the financing, we will not because of capital injection to change, has been focused on the development of classified information and operations, not to do similar to the popular business type of group purchase, the main business will not have a fundamental change. This is the bottom line for us to work with the management and an important factor in attracting investment from the management.

I give the people the net request is, we just want to do the classification to do well; the suggestion of translating is to make the translation do well; the advice to a friend is to make a good run of the organization; the advice to cool music box is to do a good job of the music box.

Focusing on one thing is the easiest thing to say and the hardest to do. I believe many friends who have been in business for more than three years will smile. People are so strange, unless they have made the same mistake, I really can't remember these reasons.

Simplifying things to do

People have greed, that by expanding the size of the company can be faster to achieve the "big", or "strong" purposes, is not. Adding a person's cost is by no means a person's salary, and even after the benefits and office costs are amortized, is only the real cost of the small head. Because of the communication cost, management cost, and even CEO's time and attention, the cost is enormous. The cost of adding a feature is not the development cost of this feature, but involves the subsequent series of operating costs. For example, a reply function of a post, the engineer can do a day to come out, but after the cost, only to do, will know.

For example, with the message function, it is necessary to have a garbage prevention function; With a message, someone will have to audit, with the auditor, it is necessary to involve all the office, welfare, wages, management issues; With the team, someone needs to set indicators, the report, look at the report, modify the report; As long as there are people, it will involve hiring, opening, Team building and so on.

From the function, you can write a message, you will be asked to delete messages, must have the user concept, has the user, has the password, but also must develop the password, retrieves the password, has recovered the password, involves sends the mail or the text message, has the mail or the short message arrival rate question, has the arrival the timeliness question and so on.

This is just the tip of the iceberg. With the depth of the function, a small message, may be unknowingly in all people to spend the company accumulated several months of development accumulation. When this happens, it is either a pancake, more and more, the more do away from the core function, or do not do well, semi-finished products on line, neglect maintenance, litter.

Even if these costs are small, the bigger cost is opportunity cost. In fact, we're not doing this with the "small" cost of our own, but at the expense of improving another function, and that feature is improved at the same time, and the profits are much greater than the most exaggerated cost of accounting. That's the real cost. This is why people, functionality, and business need to be simplified.

Focus on cost control

China's internet industry after several rounds of ups and downs, so many entrepreneurs understand another very simple truth, that is: "Profit = revenue-cost."

This is another problem that seems so simple, but most easily overlooked. In a good condition, it is easy to forget about the cost of attention, and one-sided pursuit of income, almost do not accounting, to what cost to achieve this income.

At that time, many entrepreneurs or VC will calculate an account, each additional 1 dollars of revenue, may be in the valuation above 20 yuan, in order to this lever to turn up the 20 dollars, not to spend 1.1 yuan of the cost, even if it is the cost of 18 dollars, will be someone to do. So there are so many to spend 18 dollars, to earn a piece of stupid.

If a 20-dollar buyer is gone, it's good for everyone to return to the essence of a business that spends a dollar on a dollar. In short, focus on very limited things, simplifying the things to do, do limited things, while keeping an eye on the cost control, so as to be able to succeed in entrepreneurship, can smile proud of the Internet arena. (The author for the People Network CEO)