Today, the average life expectancy of small and medium enterprises is shortened every year.

Source: Internet
Author: User
Keywords Bottlenecks resulting in little
Tags .mall average life expectancy business business development cost development enterprise enterprise development

Today, the average life expectancy of small and medium-sized enterprises in the world is shortened, and our enterprises are more so, according to statistics, the average life expectancy of SMEs in China is only 2.5 years. The number of enterprises in China, but the enterprise's life cycle is short, repeat Walk "a year of fortune, two years of wealth, three years of bankruptcy" road, can do strong and big enterprises few. Enterprise survival crisis is becoming more and more serious, and the crisis and problems will begin to appear when the enterprise encounters the bottleneck of development.

Large enterprises encounter development bottlenecks or problems often can rely on its rich experience and sufficient resources, calmly face, successfully resolved. and the small and medium enterprises, especially the start-up enterprises are often confused about the problems encountered, do not know where to start.

After observation, the following five major bottlenecks in the development of small and medium-sized enterprises are most common.

Bottleneck one: Focus on immediate interests, no long-term plan

At present, the domestic small and medium-sized enterprises, family business, friends of the majority of partnerships. The business goals of small businesses are determined by the founders themselves. These goals tend to revolve around the interests of recent years, thus leading the founders not to seriously think about the future of the enterprise, but to consider whether it can make money. Such business practices can only be simply called "Business", and can not really be called "Business management."

In addition, many business owners in a few years to make money, began to lose the enthusiasm of the initial entrepreneurial, small fu is Ann. It is very dangerous to begin to ignore the analysis of the market and improve the product itself, expecting to sell the same products to the same customers every year. Rapid changes in the market, inadvertently enterprises will be outdated, and the initial customer will also turn to other enterprises.

Bottleneck two: Business expansion, the original system management is powerless

The newly established enterprise relies on a small number of employees to maintain normal operations. Many business owners only care about how to make more money in the market, ignoring the management of the enterprise itself. Some enterprises do not even have a simple description of the department, the establishment of the position has not been seriously considered, is entirely because of people. But with the business development, the owner needs to be corresponding to the company's various departments to redesign, analysis of the future business development in the production, procurement, sales of talent needs, comb the existing human resources, remove unnecessary jobs, external recruitment of the corresponding talent. In addition, business owners also need to reflect on the existing organizational structure of the enterprise, clear the responsibilities and authority of various departments, so that the various departments of enterprises like gears tightly buckle, services to the expansion of enterprises.

Bottleneck three: ambitious, half-hearted

Many small business owners in the maintenance of their own business, always in the other search for profit points. Small businesses themselves in the industry to win space is not easy, but to stick to this space, not only need to persist, but also need to learn to judge opportunities. The status of the industry has not been stable began to covet some of the high profits of the industry, eager to enlarge the enterprise, and the high cost of experience and the risk of insufficient resources often blind expansion of the enterprise to pay a heavy price. A brand computer generation | Sales of small enterprises, from the computer sales earned a little money, do not continue to expand channels, but began to take money to invest in communications engineering, to do integrated wiring and other business, the result of a mess of losses. Small enterprises have not grown up, stalls have been paved everywhere is, so speculative mentality to do business, it is inevitable to face the bottleneck of enterprise development, there is no long-term strategic planning enterprises will not be bigger and stronger.

Bottleneck four: All things pro-Pro, not authorized

With the growth of enterprises, business is more and more, the owner is not at this time. At this time the business owners should not be buried in the big and small affairs, they need to get out of the enterprise to think about the development prospects and how to better organize resources, not because of a small tree can not see scrubbed forest. However, even if entrepreneurs realize that they should devolve part of their business to their department managers, they still feel uneasy and many things do not give decision-making power. In the end, the department manager reports to the business owner when deciding anything, and the department manager is nominally responsible.

In fact, if the business owners will decentralize to the backbone of the company's employees, each backbone staff to control their own departments, the entire enterprise's resources can be more effectively utilized. Proper decentralization of authority can motivate employees, make employees feel their importance, create value for the enterprise and not just realize value.

Bottleneck five: Pay too much attention to cost and don't share benefits.

Small businesses, due to their small size, generally pay great attention to cost. Although the enterprise must carry on the cost control, the expenditure ability unceasingly creates the benefit. However, if the "cost" consciousness is too strong, even to the point of being preoccupied, it will have an impact on the long-term development of the enterprise. Some enterprises in the employment in order to save costs, the work of different departments to the same person to do, or the same department only employs one or two employees, the staff requirements are very harsh, treatment is not high, resulting in staff negative emotions, enthusiasm also greatly reduced.

Also some business owners blindly pursue profit maximization, want to squeeze suppliers and partners, industry reputation so bad, resulting in the eventual loss of a lot of cooperation opportunities.

It is normal for small enterprises to encounter the above bottlenecks in the development stage. and the success and failure of enterprises is whether we can look at these problems, find ways to avoid and solve. These bottlenecks are often the turning point of enterprise development, break through these bottlenecks, is the enterprise bigger and stronger way.

Wen/Zhou Xiuqi

Related Article

Contact Us

The content source of this page is from Internet, which doesn't represent Alibaba Cloud's opinion; products and services mentioned on that page don't have any relationship with Alibaba Cloud. If the content of the page makes you feel confusing, please write us an email, we will handle the problem within 5 days after receiving your email.

If you find any instances of plagiarism from the community, please send an email to: info-contact@alibabacloud.com and provide relevant evidence. A staff member will contact you within 5 working days.

A Free Trial That Lets You Build Big!

Start building with 50+ products and up to 12 months usage for Elastic Compute Service

  • Sales Support

    1 on 1 presale consultation

  • After-Sales Support

    24/7 Technical Support 6 Free Tickets per Quarter Faster Response

  • Alibaba Cloud offers highly flexible support services tailored to meet your exact needs.