Pure Dry Goods! Business Failure "Memo"

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"Entrepreneurship is not a fun thing, more than 90% of the entrepreneurial will die, can survive the absolute is graves smoke." Angel investor Lei once such feeling. The author of this article @ Xu is one of the 90%, as a repeated failure of the online game entrepreneur, he used nearly 8,000 words to share their financing, team, profit and other issues, particularly detailed, special dry goods, especially recommended!

Go through too many startups, found that entrepreneurship is too difficult, at first I think it is my luck slightly worse, every time the reasons for the failure of entrepreneurship are not the same, so I experienced a variety of entrepreneurial pain, but then look around me with my entrepreneurial brothers, found that entrepreneurial life is so. There is no lack of ridicule to write down the online business failure of the whole introduction to share. You have had the entrepreneurial failure experience of the people may have "heart" feeling; is starting a business but has not experienced the failure of friends, you may also have a similar feeling, you should be careful, I hope you can take a lesson, not yet started but are ready to start a business friends, I hope you have the opportunity to choose carefully! In addition, please keep in mind: The number of successful entrepreneurial cases you see every day is just the drop of countless entrepreneurs, and the countless 99.9% of entrepreneurial failures that have been submerged by the sea have no chance of getting into your sights through various media, If you only see some seemingly simple successes and think that entrepreneurship is so simple, I can responsibly say: you are wrong.

1. Financing issues:

-venture capital only icing on the cake, there is no timely. If you don't have a ready-made product and are already running and making a profit in the market, or if your team is very famous and has created a brilliant success story before, venture capital will not consider investing in you, please don't waste your time. If your team encounters a problem to want to find the VC to ask for money, that also please don't waste time, VC this is not going to help you. The financial crisis occurred you should have seen, a lot of VC is to meet the difficulties of the company forced to shut off, do not forget that most of them are unlimited partnership, the fund lost money, partners to their own pockets!

-for the special situation of the game industry, venture capital usually does not like to invest in pure research and development company, because the development time is long, the risk is big, the profit proportion is far lower than the operator. But the developer transformation becomes the operator the difficulty is very big, needs the capital and the experience far surpasses the pure developer, therefore the operator really obtains the investment the probability is also very low.

-There are many so-called "angel investors" in the market that may be willing to invest in relatively early research and development teams, but they are often not the players in the game industry, the money is not very abundant, or seemingly abundant, but may not be willing to continue to take out the investment game. Because they have little knowledge of the game, they will be cautious about investing in industries they don't know about. So even if there is plenty of money, and will not really be fully invested (certainly on the surface will always appear to be very confident appearance), they give you the first money is absolutely not enough for you to secure the game developed, even if the surface Kung fu is done in place, A big sum of money to the account, but no angel will not strictly control your financial, it is very good to understand: you put the money out of the bank to run it? Of course, no angel will give up their right to withdraw money from the bank, so one encounter difficulties he will immediately retreat, then you are a tiger, no money is dead, Refinancing will greatly dilute the team shares, and the new VC or investors do not want to see a game of angels have a large share, also do not like to meet the difficult team, but also do not like to take money to buy the original shareholders, which is very good understanding, why do I give money to a company can not continue to contribute to the people? Not to mention that he has failed. I would also like to mention that this kind of angel capital, even if you get it in the beginning, often in future cooperation will also produce a lot of contradictions, resulting in a project failure probability of almost 100%. So although I also occasionally do an angel in my spare time, but I still strongly suggest: do not understand this industry angel money don't take, they and the devil only one step away! One more word: the angel investment to the industry to be careful, you can hardly understand how he really understand, if only "slightly understand", You have to be very positive to come and take care of you, then you will probably soon experience the taste of life as death.

2. Investor Issues:

-Managing conflicts

Most of the early angel investors, even in the game industry, are often not professional, they often have little knowledge of the game, but they think they know, they will be too much personally involved in product management and design decisions, or blindly believe that a self-proclaimed expert "cronies", Put him in the team. Responsible for day-to-day management or monitoring, these people often make mistakes:

Put forward ironic so-called game creativity, since think is the so-called game characteristics, in fact, has become the culprit of the project failure.

Too much attention to some meaningless details and ignore the more important general direction, let the team energy distribution imbalance, development cycle long.

The "spies" placed by investors are often glib, the type that the leader likes, or simply is a relative of the investor, the typical situation is one knows all day play the game, actually does not have the sensible child, their real work ability and the management ability is very poor, they blindly cater to the investor's unprofessional idea, Frequent and serious management conflicts with the team, coupled with the fact that each new recruit will have to look at it, often leads to a large team of internal contradictions.

-Investors can not withstand setbacks and retreat

Every talent and team has his growth process, even with the successful experience of the talented team, it is inevitable in the new game design or development errors. The vast majority of investors, including many in the industry, do not have enough patience with the team, when the product development encountered difficulties, or after the product on-line operation found that the situation is not ideal will immediately give up the investment.

In fact, investors usually invest in multiple projects at the same time, when one of the projects in a difficult time to stop immediately, leaving the resources to other projects. This is actually the most common investment strategy, because for investors, this can spread the risk, avoid the unilateral expansion of losses, but for you, you do not have the opportunity to spread the risk, the problem is only the dead.

-Withdrawals due to investors ' own reasons

Investors often have his own main business, that is, the so-called cash cow, without these cash cows, it does not matter those "spare money" to invest. But when their main business is in trouble, they will not hesitate to cut off the investment of the non-public sector, and even in fact, some investors to invest money is he "borrowed" in the financial markets, once the market recession, the insurance is too late, your team again good, no matter how smoothly the development of products, He will take the strategy of losing the car, and reluctantly sell you or shut the door directly. Can sell also don't be happy, willing at this time the new owners to take the opportunity to severely bargain, the future may not be sold you again. One might say, "There's a contract!" Please allow me to say a very sad words: The contract to this time is a piece of waste paper, when you have not even paid the collar, you still have the money to go to court? Even if you can resist, the other people in your team can not resist, already hubbub each to find a job! #p # subtitle #e#

3. The team's own problems:

-Lack of management experience

People who are passionate about entrepreneurship, you know how to play the elite? So most of you have some special skills designed to make games, so you're usually not necessarily a good management person, right? But once you start your own business, your pain comes along and you find yourself 80% a day The above time is not to do the game, but in dealing with the specific game design has nothing to do with it:

-Find investment through a variety of ways, write a large number of everyday to the layman can say useless information, and have to face a variety of false experts and true layman, false friends and real liar, false investment and real intermediary, fake money and really no money investors and so on.

-Looking for people through various means, in order to convince some of you can help your team to a higher level to join and make all the best possible, at work secretly in the company, work late into the night; in fact, the Masters are all bosom, perhaps at the same time prepared several entrepreneurial plan, who got the money to go with WHO, On the surface with you say, you hard for the future Gao, promise the future of high salary, give shares, give options, what good conditions are given to them, they have little left, the result of others give better conditions, people finally decided to go with others.

-Easy to set up a team, a little bit of money first to everyone hair, their own bitter point not to take money or take at least to inspire morale. As a result, your men still play big cards, work well enough to complain too tired to take less, as a result, although nominally you are the general manager, you give him money, in fact, he and your leadership, than the leadership is difficult to wait. I often say that: although you pay him a salary, you are the boss, but you are actually grandson, he is a grandfather, you are not depressed?

-A few key people have been gathered, everyone is cattle, who also look down on who, coupled with planning and program art is inherently the death of the enemy, has not previously cooperated basically will fight up, previously cooperated, more pleasant, probably because the boss of the company before the wages, We do not have so many interests and disputes, and now have a bitter day together, the interests bundled together, a little bit of contradictions will easily translate into a great contradiction between the people.

-Easy to find a point to start the fund, you can set up a company, the headache is still behind it! Rent a house, buy a machine, bargain with all kinds of peddlers in order to chart cheap. Registration procedures for the company, if it is overseas investment, to set up offshore companies, in order to be afraid of being fooled, investors to ask lawyers to do the file to find a legal acquaintance to help the trial, can be all English, hundreds of pages, casually looking for a person can not understand. We're going to have to go to a domestic company. For U.S. dollars, get registered capital, run national tax, local tax, in order to avoid taxes to apply for High-tech enterprises, dual Soft certification ..., you want to run the company you are more trouble, there are ICP, net, virtual currency issue right .... It's all over. Half a year has passed, the whole person off a layer of skin. What, an executive cashier or something, just let them run? Excuse me, which thing is not the need for you old large number of important things? A file is wrong you Gbagbo, just find a monthly salary of more than 1000 people do you feel relieved?

-It's a good way for everyone to make it. Dry for more than six months, found that one of the core members of the level is not enough, or is the ability although good, but is not close, people do not want to give you when Grandpa, alas, all blame did not see, but no way, do not do some time how to find out? Shares have been given, He's got his autograph on a bunch of papers, so would it be easy for him to make the shares come out? Leave a list of the shareholders to the competitor's company. Hurriedly find someone to replace it, his work in front of the basic costs, the new people have to run with the team, which has so much time and money, Can you promise someone in such a hurry? He wants shares too, do you have any? So I have repeatedly suggested that entrepreneurs: do not share the shares in the early days of business, give yourself some leeway to do an option or stock pool, The company system to the core staff of the future dividend rights or shares will be written in his employee contract, the establishment of an objective assessment system, according to his work performance at any time adjust the ratio, the separation of the automatic failure. Don't want to have no trust in you, be careful. Or, in turn, you trust him, but you can't do it. All the shares of the same as waste paper, you also try to both entrepreneurial and grandpa taste bad?

-Lack of technical experience

Because the technology died too many products, 80% of the product just came out have technical problems, even the experienced person, you dare to say that you do the game and he had done the same? Then you are really a cottage, even if the pure cottage, you dare to say that your program in person to do a game of all the necessary technology? Know all the Karez and Ray? How many line programs does the whole game have? The whole program is actually a chain, there is a ring broken, the chain on the other ring is no use, still have to break, you are not familiar with a piece of code wrong can definitely kill you.

You are not a cottage, there is innovation? Well, I'm sorry, that's the risk. Innovative ideas often create new technical challenges, creating technical uncertainties and ultimately insurmountable technical barriers. The most annoying thing is, finally found that many of these ideas have failed before the team has already tried, of course, people are not fools, the industry so make money, the elite are all here, you can think out of the innovative people have already thought of, and your most so-called innovation is also referred to the foreign stand-alone game just, Is it not? They did not do, you do, you still complacent, but actually not because people did not think, is because the test is not successful, technically not go through, the bones are piled into a mountain, you do not know it.

I am often told that in any case, it is still young and the lessons of failure are beneficial. Excuse me, if this is the death method, what valuable experience and lessons have you gained? Can you ensure that future innovations do not encounter new technical risks?

-Lack of planning experience

Not even the cottage will not be planning we do not say, they should not get the investment, right? You are capable, you do innovative, so you can because of the planning of death is lucky, because after all your technology and art came, you have so many innovative ideas people have to you realize, how not easy ah. But does the player really recognize your new design? Is your new design really flawless? Do you know how players play your game before they go online? What happens when a lot of people play together? You think you're smarter than a player, but you can actually find that you're smarter than you are when you run the line. Found wrong, change it, players give you the opportunity to change it? Players in those who are persecuted by you have gone, the remaining vested interest in the change after you have been deprived of the benefits and goodbye, what to do now? Another promotion fee to pull new players? It's going to be more money, because you've got a bad reputation, right? But your investors, your operators have so much patience?

-Not Enough art level

Because the art of death to hear is not much, but also should not be taken lightly. The art in your team is very ideal person, otherwise people will stay in the company to get the salary is not good, why do you want to go out with your business? But the art certainly hopes the visual effect is good-looking, otherwise his value manifests in where? (Incidentally, investors tend to look at pictures because they don't understand code and numerical planning)

In order to do a good job of art, your technology and planning will carry a lot of baggage, client specifications a liter, and finally even the most high-end machine can not run. Your technology will tell you: it does not matter, now is the development phase, to achieve the main function, has not been optimized, and so done together with optimization, optimization finished can be a lot of it; or: These special effects we can put on the switch, on the low-grade machine we turn off, to ensure that running. You'll believe it. But what about the final result? He has not done optimization, where there are so many beautiful optimization space ah? They would say: "There are too many of these models!" How do I think he used so many textures in monsters and scenes?, such as the development finished to do the test, you excitedly find a low machine, the effect switch are closed a look, ah? Your art cry: Is this my game? You also cried: It doesn't seem to run very fast? The original program development time is a good machine, also did not try the same screen a lot of people's situation, now how to do? Art Redo? Procedure Substitution?...

-Difficulties in recruiting staff

There are a few of you have a few core experts to work together is not enough Ah, a network of 3~5 individuals can do? You have to recruit, right? Headhunting is certainly not affordable, recruitment sites are some novice, ah, in the original company to collect. But you went to the old company. And those who have entrepreneurial complex of the cattle have been swept over n times, but also your share? Ordinary employees in order to stabilize the work, or money, you are a new small company, you are not stable, so you want to give a high salary? Left a high salary, another high salary, A few of the risk of a few gold to pay, they are more than you take, you put up with the investors do not worry with you? The work is very ordinary, the work and normal work, the leave and normal leave, want to drive off? Have you seen the new labor law? So many lawsuits, have you ever seen a company win? Several of my friends have said the same thing to me: " After reading the new labor law, I directly shut the company, I work to go! Do not expel, do not good you teach him, but your time spend not to say, he study time and learned to let him redo those work time you still have to pay salary. The whole to go to feel that they do the fastest, good and cheap, but even if you are covered with iron, can twist a few nails?

-Lack of resources leads to excessive compromise

The start-up team often because of money or team size, capacity and other reasons, in the design of products have to do a lot of compromises, the real production of products and your ideal has a big gap, the original has great potential for good ideas and no chance to play. But is an eclectic, almost mediocre game able to stand out in a market so competitive today? Big companies spend hundreds of years of products are not necessarily done, you are such a small company to do so many eclectic design ... Often hard to do 1.5, look back at their original ideas, and then look at their own semi-finished products, has been completely confused about what they are doing, not only you, the other members of your team also discouraged.

4. Operator-related issues:

-Unable to find a suitable agent to cause financial breakdown

After all the painstaking products have been finished (of course, this year is often the most important to the player interaction and pay for the campaign and other functions have not yet done, said done, because there is no money and no morale to do it again, your investors are good, all the difficulties have persisted, did not do so many compromises, the product looks good, That's when you start looking for operators. But today, every operator in the market is developing its own game, taking my word for it, they develop their own products are "pro-son", you want them to represent your products, to be a "son", and their own son to rob Food, not only to have outstanding features, but also with his "son" does not conflict. Even if all aspects of the conditions are met, he will be hard to pressure your son, and sometimes even simply directly to the idea of your son used to learn.

-Poor agency strength

Forget it, some people are willing to operate than sign not to go out good, find a new set up no experience of the operation of the company, or before the failure of the reputation is not good company also make up, after all, they said to be a son as the focus on my products. But often this kind of company is powerless, because of capital strength, poor management skills, limited operational experience and other reasons, there is no ability to do a good job, the failure of the operation or the two of you hug together to die, or he ran early to find someone to give him another son to go, the final failure of the responsibility must be yours, Maybe the contract is not destroyed, the product continues to hold, the server continues to open, how many earn some money will certainly not give you, you want to hand over to the others are no luck-of course, you have to take back to the first copyright money! And make up for his loss! Are you still rich?

-delay or omission of agents to cause operational failure

Finally signed to the big company, also don't be happy too early, perhaps your pain has just begun! Big companies have so many sons, you are only a son, even in the dry son you may not be in line with the number, because they have to speak a foreign language of the son, they are born more expensive than you ( Though you know he is rubbish. People will be on your product left fault fault, you do not say to fully cooperate with the operation? Operators have experience ah, they say to you change you dare not change it? In fact, you know that they sent the product manager is a new debut of the small kid, often said today to change, tomorrow will change the idea that the same son. But you still have to treat him like a grandfather, why? Most of the copyright money to be officially online after the operation to pay, all this time, you also have little money to live, for the money you can not bow?

But just when you are all ready, you and others another son of the online time conflict, no way, others important ah, had you to give way, and so on, not a lot of places to change it? Even some companies are bad, know that your money turnover is not good, deliberately at this time delay, Find all kinds of reasons not to give you the line (don't mention the contract with me, all to the last shiver you go to the court to sue your operators, you still afraid of the death of the night?). What if the funds are out of order? You come to the operator to discuss: or you give us a little investment it? Well, waiting for you, the contract to re-sign, the proportion of the share, the company shares are brought over, at this time you have bargaining chips?

-the failure of their own forced transformation into a carrier

We can not trust them, or we operate it! Your investors have the courage, and then take out 20 million of our transformation, just not those VC like their own products operators? Kill the birds! First of all, do you know how to operate? Looking for the chief of operations? You want to give shares? Investors have to invest in additional shares? How many shares do you have left? How much is left in the company's voice? You also put your life, you worked hard for two years of baby products to a group of strangers? Can they operate the product well? Shi Yuzhu's ground pushes the team to have what great, I can also recruit 3000 people to do to push ... There are several methods of death in operation ... (3,000 words omitted here).

5. The question of the realization of benefits:

Let's say you've come through all the bullets. The product on-line operation is successful, also makes money, this time should be relieved? But let me do the math for you: as an independent development company, the product is often only about 20% of the contract to the operator, as the core of the entrepreneurial team, often in the final listing of products, only in the development of a small share of the company, Most of the shares have already been owned by investors, and they can only be allocated less than 10% per cent of their shares. And investors are capitalists, they often have to do anything to maximize their interests, remember: After all, your wages are his hair, he is strong, you weak, he wants to squeeze you just natural reaction. They often use a variety of means to rob you of the wealth you deserve, so that you finally can not even get the actual benefits, specific means I am not very professional, please forgive me not to enumerate, at least the following means is very common:

-Investors have the right not to pay dividends, not listed also do not sell, but also have the ability to do through a variety of complex accounting methods to transfer profits, the last company in fact no profits, hehe.

-The signing of complex agreements in the process of listing or selling, investors are leaving, but the interests of the entrepreneur is tied to the long-term, resulting in the entrepreneur in fact a long time to get no real benefits. You think, light development is 2-3 years, talk about the agency to the line and 1 years, and other companies listed or sold, at least 2-3 years, but also tied you continue to do 3 years to get the actual benefits, this period does not know how many changes, then you still have the happiness of success? What, you've studied law, finance, Finance, Accounting, tax ...?