The best era of entrepreneurship will inevitably have bubbles, summed up the success of several key words

The last day of the Spring Festival holiday, and Qingdao, several entrepreneurs and the investment of a senior investor Mr. D to talk about entrepreneurship and investment, chat let the rock heart feeling quite deep. This chat let me hear a lot of the true story of the venture, verified that I have written a number of previous views on Internet entrepreneurship, but also further triggered a deeper thinking.

The best time to start a business is a bubble.

There is no doubt that China has entered the best era of entrepreneurship since 2012, due to several reasons. The popularity of mobile internet, so that the total number of Chinese Internet users in 2 years from more than 300 million to 600 million, which provides a user base for Internet entrepreneurship. Secondly, the combination of the Internet and traditional industries has brought unprecedented opportunities.

At the policy level, the country began to consider the economic restructuring, so it is inevitable to eliminate some high energy consumption, polluting the environment of the manufacturing industry, encourage innovative enterprises and service industries. To this end in the financial policy, entrepreneurship protection policy to introduce a series of preferential policies, for example, to encourage start-up companies in the SME market financing, convenient VC and PE exit, effectively stimulated VC and PE investment enthusiasm.

Even some local governments and VC, PE joint investment in innovative enterprises, to guarantee investment, and even for the loss of business losses. As a result, a huge entrepreneurial tide rolling in, in Qingdao, such as the two-tier cities can often meet young entrepreneurs. And in the café in Beijing, you can see a few young people wearing glasses together to talk about entrepreneurship.

Mr. D told me that the entrepreneurs in Beijing are all over the place. But entrepreneurial atmosphere is very impetuous, this is undoubtedly a huge bubble. He said that there are three of those who came back from abroad, no detailed business plans, products have not developed, but openings will be 10 million, only the investment company accounted for 5%. When he questioned the valuation, these young entrepreneurs said: "You do not understand the Internet, this is very cheap, and so we on a certain platform roadshow, you can not rob!"

Not everyone is fit to start a business

Mr. D says it's a good thing to start a popular business now, but it's not good to encourage college students to start a business too much. Because college students do not have the experience of work, and now entrepreneurship has not been able to start the era of Bill Gates, when the entrepreneurial is entirely technical, and the combination of traditional industries is not close, so you can not have some experience.

Today, there are few entrepreneurs in China who are skilled entrepreneurs, more of the upgrading of traditional industries and services, and this requires experience. College students do not have the outstanding technical strength, cannot obtain the achievement in the core technology pioneering work, but has not worked the experience therefore also very difficult in the traditional industry, the service industry transformation promotion to obtain the success. So Mr. D's investment is most important to see the experience of the entrepreneur.

Indeed, the current entrepreneurial if only to do online app, the site does not have much significance, because the line of business is already in the past, the era of line online under the combination of the Internet is just a culture, a channel, a tool. Therefore, the successful entrepreneurs, should be online under the industry for a period of time, to recognize the line of these industries existing problems, abuses, through the internet thinking, technology to transform these industries.

In the chat scene, there are also two entrepreneurs who have successfully invested. They are a bookstore, the traditional bookstore into an experiential bookstore, gained the investment of Shun; another entrepreneur is an apartment-style hotel continuing entrepreneur, he has a veteran entrepreneurial experience, a deep understanding of the current hotel industry, through the various drawbacks, through a lighter operating costs, more extreme service, more Internet management, More to impress the customer's culture to create a new hotel culture.

So the entrepreneur should be the first practitioner of this industry, he loved the industry, but the current development of the industry expressed disappointment, so he based on previous work experience, with a new way of thinking, Internet technology to change the industry, which greatly increased the probability of his success. So for now, some internet people suddenly jump out to do decoration O2O, domestic o2o, massage O2O, I do not agree, because they are not the practitioner of this industry, also have no hobby premise, no experience basis, this is obviously the foundation is unstable.

Several key words of success in entrepreneurship

In conversation with Mr. D and several entrepreneurs, I felt the importance of the key words for success in entrepreneurship.

The first is to go central. Regarding to the center, I am in "the public café to talk about the Internet open platform" "99% entrepreneurial will fail to center is the medicine?" and other articles are elaborated. To focus on the spirit of cooperation and sharing, not alone, this is the spirit of the Internet.

Through the cooperation can reduce the capital occupation, the rapid consummation industry chain, reduces the risk. For example, the former hotel to rent a building, rents are high, the average entrepreneur can not afford. And now do hotel apartments and developers to help developers to sell the tail, entrepreneurs pay a very low rent can get the house, a simple soft installed can open the door to guests. and the Internet booking platform also eliminates the cost of promotion.

The Internet thinking, technology applied to entrepreneurship, the use of a centralized way to achieve lower costs, higher efficiency, but also to achieve mutual benefit between the partners.

The second is to sell services instead of selling products. In the era of total surplus of products and services, the continued sale of products has not been competitive. When products are no longer scarce, it is not only the supply and demand that affect the user's right to choose, but also the experience, which cannot be measured by data, and is called "Behavioral economics".

Users are no longer using mobile phones just to call, text messaging, Internet, but the pursuit of a fever, quality or artistic feeling; go out to live in the hotel is no longer just to sleep, if you can get a personal nanny, more than expected service that feeling will be better; eating hot pot is not just hot pot tasty, but also want that kind of family-like care ... obviously, in the era of products no longer scarce, the concept of selling products to sell services, the pursuit of the ultimate, to achieve the effect of exceeding expectations, so that the brand word of mouth.

The third is self-organization. The former enterprises rely on the system, assessment mechanism to manage employees, and when people live in the Internet, the way of enterprise management staff should consider "self-organization." Because through the Internet platform, employee and customer direct docking, customers can give staff scoring, this transparent reward mechanism, will motivate employees to work hard.

The popularization of the Internet has brought about the social progress is obvious, because the transparency of information, so that everyone consciously improve their moral culture. In Drucker's "future community", Clay's "cognitive surplus" refers to the concept of self-organization of the future society, which is an advanced management method, it is a pioneering company must learn to use, which will help to improve staff enthusiasm, reduce management difficulties, improve customer satisfaction.

The fourth one is the light company or the heavy company. I think the biggest advantage of entrepreneurs is that assets are light, light means running fast and low risk. Lei said the advantage of millet is that there is no factory, which allows Millet to run fast enough. Of course, after running to a certain stage, want to run steadily, you need to increase the weight, for example, improve technology research and development capabilities, patent accumulation, resource integration and so on.

But in the early days of entrepreneurship, it must be a light company, this can be entered into the attack, retreat can be kept. And the company's "heavy" is to tap the user's pain point, a product, service details of the transformation, the extensive products into the ultimate products, will only meet the basic needs of services into a more than expected service, this is the company's "heavy" where.

The fifth one will burn money is a bear. Many entrepreneurs love to talk about the vision, and in the electric business, taxi software These crazy money industry under the influence of many entrepreneurs think that will burn money is the ability, because the Beijing east has lost a loss of more than 40 billion U.S. dollars, drops and fast burning a few 1 billion have not considered profit.

This is a scary idea, because entrepreneurs who don't think about making money may mean irresponsible businesses. Not everyone is as powerful as Liu, and not everyone is as lucky as dripping, fast, after a round of financing and death of many companies, many have committed a rash of mistakes. Group Purchase network of collective death, all kinds of app's mass death, based on social network application Entrepreneurial flash in the pan, O2O bubble ... all are verifying this simple truth. Entrepreneurship is not prodigal, not gambling, its essence is still operating.

Not to mention the combination of the traditional industry and entrepreneurship, more should pay attention to making money, rather than burning money enclosure. The purpose of Internet is eminence, this is the Internet fictitious product characteristic decides, and the traditional industry certainly cannot eminence, this is also the product decision. The pushy person dies, the cautious person lives, will burn the money the entrepreneur is the bear!

In fact, there are a lot of entrepreneurial keywords, such as connectivity, ecological circle, etc., here is not a discussion. It just feels like the success of successful entrepreneurs is the same, that is, follow the Internet culture and rules, they can see these keywords, and this is what they change the traditional industry and the difference.