Grassroots Cosmetics entrepreneur Self-reflection: make all the mistakes you can make

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Guide: Yu Tao, he once worth million, most of the time in Hubei small county has dozens of cosmetics store, but after the business error let him suffer a loss of millions of yuan. The afternoon of Beijing Sunshine Soft, but his story has a lot of twists and turns and heavy rain. He said it has been a few years since the failure, but the traditional entrepreneur has made almost all the mistakes he has made, and today it is only to hope that more people can think. The following is Yu Tao Readme:

Getting started: Doing everything to make money

I started my business in 92. Can not call entrepreneurship, can only call a part-time job. At that time because the family poor, rural children, early reading a high school followed a relative out of the station to do cosmetics shop, is counter, almost did a year or two, or not earn too much money, so, I decided to open a cosmetics shop.

At that time, the cost of opening a cosmetic shop requires twenty thousand or thirty thousand, I do not have so much principal, so to find relatives borrowed some money, and then went to find a few counters, and went outside to sell a little goods, my cosmetics shop in Hubei small County opened. I didn't even think about it at that time. Business Model Management Team these, at that time in the township town there is no such cosmetics shop, so I easily accumulated a sum of money, the annual income of 1 million may not reach, but five, 600,000 can be achieved.

I've been doing this for 02 years, at that time when you do make money, you naturally want to make more money, so, I began to 02 years to open three stores, I decided to start expanding the franchise to expand their own size.

My business is starting to break through this time, and it's starting to go in the wrong direction. My mentality was to make a buck. So when my own store's reputation is doing well. I decided to let go to do to join, and did not want to do the direct shop, so I was at that time to do more than 40 franchise stores, the expansion is very fast.

My idea is simple: more open shop can make more money. Then I do the franchise mode is also very clear, all the franchise store with my store signs, and then, all the stores of goods from my supply, I do not want them to join the fee, I mainly rely on their supply and make money, I thought this mode everything seems right.

In the beginning of the first year to join the effect is very good, my year's sales to achieve more than 10 million, this time, I feel that they have done a good job, so I spent more energy to do a lot of other things.

My point of interest can be said to be very extensive, and I continue to run the cosmetics shop in the business, I've opened a broadband company, a computer maintenance company, and I've been working with cosmetic projects, and it's been a huge distraction, and when I look back on my cosmetics business in 07, Suddenly found that his business can not be done.

I went to my franchise to see, I couldn't help but surprised, these so-called my franchise has already no longer sell my products, and to my supply also no longer trust, my franchise is actually dead, but I was not aware, I was a year from then can make money, to the last found, I not only make money, And in the early years, I opened a single store of millions of yuan of cash to pay up, I failed.

Reflection: All the mistakes that can be made

During that time, there was a month or two, I did not leave the house, also did nothing, just stay at home to reflect on their own. I suddenly found that I have a person in the process of entrepreneurship can make mistakes are made, if I do not fail is difficult.

Carefully reflect on their own business from the original very prosperous one year to make more than 1 million, to the end of all the franchise no longer want me to supply, my so-called joined the fake, I have at least made the following several fatal errors:

First: The business model or business direction was wrong at first. My own years of experience in cosmetic business have proved that I can do the cosmetics business, but, in the end I did not make, is because the first should not do the so-called join, because I do not understand to join, simply can not control these so-called playing my brand name of the store, I thought that could be made to earn money, Confiscation of the franchise fee, the result, the so-called joining mode is simply not go through, I now regret should have done straight camp.

Second: underestimate human nature. I was very easy to believe that people, which my big and small dozens of franchise store bosses, I was so easy to trust them that they would betray me and sell their goods secretly, so that my rivals secretly sold them at a lower discount, and soon they betrayed my system.

Third: The pace is too fast, leading to management confusion. At that time we used the speed to join, suddenly opened to 43 stores, but the corresponding matching of these things did not do in place, there is no team management of these concepts, only know to make money forward, ignoring the team management and construction, the next to promote the manager or finance these are from the store below me, But they have not been able to give me advice on business ideas.

4th: My own problem, the interest is too extensive, I can now understand to get a only one thing to do this sentence. When I was doing my cosmetics business, I was doing a lot of other projects, not only taking up my money, but also greatly distracting my efforts to do my cosmetics business.

5th: Do not understand the supply chain and cargo management. At that time below the requirements of the franchisee I understand not clear, do not know how much I need to prepare the goods, resulting in a large number of my inventory, which has become one of the core points of my business failure.

6th: Always working alone, without a good partner. Also with the concept that we do not have the so-called partners at that time, then know that they want to make money, do not know need to do the team, although early in 9几 years I paid to read the MBA.

7th: is also I think the most important point, that time their own business to do things, or by cleverness in doing. Think the user is like a fool. For instance, at that time we took the promotion team to help to promote the following products, we have two choice to recommend to customers, such as an internationally renowned Olay, its profit will be lower, another unknown brand price lower, but the profit will be much higher, We don't want to recommend the good product with the user, so at that time do not want to have a repeat customer experience these, as a result of this, these shops are no repeat customers. There is the integrity of this thing, really did not realize before, that this thing is a big sermon, nothing. Think everyone can understand, but few people can really do this. Another example, such as small profits but quick turnover This example many people understand, but how many can persist.

So much reflection lags behind my deep understanding of the letter of faith is the real business and business.

Question PostScript: I ask Yu Tao, after the defeat will be painful? He calmly said, the traditional industry business is to have the ability to fight, after that failure he tried to do a vertical industry website active network, he said he is not a easy to give up people.