Haitao: 30 Ways to stifle entrepreneurship

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What is a failure to start a business? failure is failing; it is a failure to be a great company but to be mediocre is to fail; the expected goal and the reality are very different and fail; want to be bigger and stronger, but always have a little to do, but also a failure;

These are the generalized failure, do the venture to study failure.

Investment in the initial stage of the project, may be in the second eight, investment into long-term projects, may be five to five, the relatively mature investment in the company before the IPO, may be seven to three. The failure of the entrepreneur is more, the failure rate of the entrepreneur is very high, so the research failure is very important.

Haitao, chairman of Shenzhen Innovation Investment Group, listed 30 lessons from five levels that could lead to entrepreneurial failure.

The spiritual and moral aspects of entrepreneurship

1. Lack of ideals

Every successful entrepreneur, give me the first feeling is to have ideals. On the contrary, we have failed to invest in enterprises, the main reason for failure is the lack of ideals and sentiment, the money to the supremacy of the status.

Therefore, small business diligent enough, do business to spell wisdom, if you want to big business, must rely on virtue, that is to have ideals.

2. Only to adapt to the wind, lack of perseverance and determination

We've invested in a new biological drug. In the past ten years, it has not a penny income. But it persevered. In the United States, the same drug, sold 7.8 billion dollars last year, and we do this medicine, the price can be cheaper than half. This success is a great success, but if there is no unyielding spirit, the company will not be able to go on.

3. Relying too much on past experience, refusing to change

Products to upgrade, the model to innovate, management also to innovate. On any one hand, reliance on past experience can lead to failure.

4. Beats, lack of pragmatism

Some entrepreneurs are not down-to-earth, but opportunistic. For example, by the flicker, by the flicker can become a moment, unable to become a lifetime. I hope that one thing will be successful soon. Pie in the sky maybe once, there won't be a second time. Enterprises lack of pragmatism, today do not fail, tomorrow will also fail.

5. Listing for listing, both harmful and harm to themselves

Enterprise listing, should be the process, not by simple packaging. For the listing of clever cooking, margin or net profit suddenly rise. For the listing to Rob Paul, the demolition can be, but if the environment changes, it may be demolished west wall to repair the east wall is not enough. There are also companies blindly expanding to go public, the results can not adapt to market needs, or no team to operate the expansion of assets after the failure.

Second, the strategic level of enterprise development

6. Unclear long-term strategy

Entrepreneurship can not only know what to do today, do not know what to do tomorrow. Long-term development strategies are in a state of chaos, and you can't give your employees direction.

Enterprises into the Taurus business, the cash flow is very good, we must consider transformation and upgrading. If Taurus does not transform and does not make strategic adjustments, it may someday turn into a lean dog.

7. Strategy only in shallow circles, lack of the courage and ability to explore the deep law

Some enterprises only in the past experience to find a way out, only on the surface resources, the result of the enterprise did not grow up. Be sure to jump out, through innovative ways to enable enterprises to achieve development.

8. Do not dare to expand or disorderly expansion

Expansion is a double-edged sword.

For the entrepreneur, first, can not do feet-not to expand. Second, it cannot piantingpianxin the minds of capital-makers and expand when it should not. To follow their own development rules to do. Expansion is less than worry, but excessive expansion, compared to the worse, just like an idiom "too much."

9. Capital Operations Strategy problems

Many entrepreneurs lack the ability to judge capital operations and Piantingpianxin financial advisers. But if an enterprise has a plan for capital operations, it is not easy for an entrepreneur to understand it first and fully understand it. It is very important to keep accumulating.

After the general understanding, but also to do hear. Just listening to the advice given by a financial advisor may be a violation of corporate interests. Because financial advisers have expertise. For example, my specialty is to do the U.S. listing, if I recommend another place for you, my job is gone.

10. Inadequate strategic financial leverage

You are not a good entrepreneur if you don't use financial leverage and you don't have a reasonable debt. However, if the debt is too high, liquidity risk increased, under normal circumstances, high debt can withstand, a change in the economic environment, especially the financial crisis, will not hold up.

Enterprise mutual security to harm themselves, and lost the conditions of rescue. Mutual security is a way to harm oneself, do not to reduce financial costs and engage in mutual protection.

III. corporate governance structure level

11. The implementation of family-style management, lack of supporting decision-making system supervision

Many entrepreneurial enterprises are family business, many or pop.

My point is that if an enterprise wants to succeed, it must turn off the pop. Family business want to succeed, must moderate decision-making sunshine.

What are the problems with family businesses? The first is the lack of responsibility of employees. The second is that when it comes to difficulties, it is difficult for employees to be in the same boat. The third is the inability to brainstorm.

12. Low shareholding ratio of core entrepreneurs

If the core entrepreneur's shareholding ratio is below 30%, the success rate is low (except for state-owned enterprises, the state-owned enterprises give employees 10% or 15% of the shares is very good, because the basis is different).

Some companies rely on the wind to support the company, the major shareholder is a venture capital institutions, entrepreneurial team holding a small proportion of the success rate is also low. Entrepreneurs have fewer backbone shares, the mentality and methods of doing things are different.

In addition, the boss does not change, the team often become undesirable. In the face of difficulties, should let the team to stock rather than change a team, change a product, this approach success rate is not high.

13. Incentive and constraint mismatch

Incentive is not in place, equals not incentive. The cost of 100 yuan is only 60 yuan, equal to white flowers. I have always advocated that it is not possible to give the team a high salary and good treatment, it should give him shares. Constraints are also very important. What is the purpose of the constraint? is to let a person "have zeixin without accuser". Zeixin, but accuser can be regulated by system.

14. The intelligence structure of the entrepreneurial team is too unitary and the style is too coincident

Entrepreneurial team If the knowledge structure is not complete, are a kind of expertise of people, it is easy to problem. Some people are suitable for technology, some people are good at management, some people are good at doing business, introverts are suitable for scientific research, extroverts are suitable for business management-should make such analysis and judgment, so that people reasonable collocation. Talent structure of a good enterprise, the success rate is very high, the talent structure of enterprises, low success rate, or success is small success.

15. The actual control of human energy is too dispersed

Many entrepreneurs do a lot of things at the same time, so focus on doing one thing. What if, as a boss, you're not concentrating? First, your CEO must have a stake in the company, too little, and secondly, you should have charisma, and your charisma is important in front of your staff. If the personality is not attractive enough, the likelihood of failure is greater.

Iv. Technical aspects of products

16. Inadequate protection of intellectual property rights

The protection of intellectual property has great influence on the profitability of enterprises. China also relies on intellectual property as the main revenue of enterprises, more cases, because the protection of intellectual property is relatively good, enterprises to obtain a better development environment. If there are major flaws in intellectual property, do not do such projects.

17. Technical threshold and low market threshold

The threshold includes two: technical barriers and market thresholds. The threshold level cannot be distinguished by simplicity and complexity. Some businesses do things that look simple, but the barriers are high. Because the market position is also the threshold-Sina, Ctrip is quite simple, but the market position is high, has the scale, such enterprise threshold is very high.

18. Strong alternative

As entrepreneurs, the analysis of alternative trends is very important.

There are three alternatives: the first is revolutionary, such as LCD (liquid crystal) instead of CRT; the second is diverse, such as movies and TV dramas, where movies have won a mess in the past, and then the movie is back, and the third is the difference, like the long-term co-prosperity of the online shopping approach.

19. Ceiling

Some professional software companies, the market occupies almost after the down, and to plan another professional software. Should start planning time, must plan several products, the struggle space cannot be too narrow. If someone thinks you have a ceiling, you won't be interested. You want to private placement is very difficult, or listed stock prices can not go up, this is caused by the ceiling.

20. Single Market

Before Chinese enterprises can export is a good enterprise, now to both export and can be sold to the domestic market is good. Both markets dare to sell, it shows that the domestic and foreign sales have mastered the law. One big question about the single market is that economic cycles and macro-environmental changes can lead to survival difficulties.

21. Greater reliance on resources and the environment

Entrepreneurship or investment, in the direction of reducing consumption, the likelihood of success is even greater. For existing enterprises, there are two countermeasures: first, to gradually reduce the dependence on resources and the environment, and secondly to improve the ability to cope with environmental change. In the financial crisis there is a phenomenon: the demand is reduced, but the limited demand will be particularly concentrated, which will lead to a better individual enterprises.

22. No differentiated competitive advantage

The standard of products and technology is different. The product and Technology Market Foundation should be firm, markets must have an approval degree. So I think, entrepreneurial to strive to do even a small segment of the market's first second, do not do behind.

In addition, the management of products and technology to above. The core is cost control, cost control is good, you may not earn money when others earn money, when others earn a lot of money.

V. Business strategy and business model level

23. Foam Stage Trendy

Entrepreneurship or investment, not in the industry in the late or vertex entry, otherwise the next 3-5 years are difficult survival period. Choose to invest in the industry's ramp up phase.

24. Industry chain is too long

One thing to consider is how long your chain is. We have invested a lot of chip design companies, and later found that the short end of the enterprise has been successful, and to the terminal long enterprise, the situation is not very good, this is called "chain too long easy to break."

25. Too wide a limit

Too many of the same reason, if it is necessary to do a lot of things to cover the "Official seal", it is difficult. Products are the same, if you do the product supporting links too much, it will be very difficult.

26. Timely or icing on the cake

This is a question of demand analysis. Each project, you can consider this: it is timely or icing on the cake? Better than the icing on the cake.

For example, there are two kinds of mobile phone payments: One can integrate a credit card on a SIM card, and payment can be made with a mobile phone. Another model is to move electronic payments through the desktop to the phone. The former pattern is timely, the latter one is icing on the cake. The same two projects, the timely should be a priority option, if it is "icing on the cake" type of project, it must be high hit.

27. One big step ahead equals losing money.

Wait three years to do one small step ahead, not one big step ahead. One big step ahead of the country to do.

28. Ignore the messy beauty of new projects

The accurate judgment of the project highlights is half the success. Entrepreneurship or investment, the project highlights of the judgment is very important.

29. When the grocery store dispensers

Every enterprise should be specialized, if already specialized, must subdivide the domain to do fine. We have also done such a project, the business itself is specialized, but it does not make a specialization of a subdivision of the field to do fine, but every one to do, and finally it failed.

30. Single Reliance

Reliance on single customers and markets is also scary, and sometimes entrepreneurs feel comfortable with a single dependency-reliance on a particular market because the market offers a high profit, a particular market that may be less profitable.

But we should look at this problem from a longer time, because the market environment is constantly changing. In addition, when doing capital operation, if you have multiple markets, the investor's imagination Space is big, the valuation is high. Therefore, no matter from the management point of view, or from the investment point of view, should try to avoid a single dependence.