We've been closer to failure: The N traps of grassroots entrepreneurship

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"Research findings"

1. Grassroots entrepreneurs have a high probability of failure, one of the key is too much emphasis on the lofty dream, and ignore the importance of quick money;

2. Technical entrepreneurs often tend to overlook the value of the market. In fact, the great products, but also need to have users and the market to pay;

3. Blind superstitious experts and superstitious collective decisions are less reliable. Entrepreneurs should have their own judgment and the courage to make decisions;

4. Don't be a fussy eater. Mature markets have been entered, as long as the differentiation of competition to find a breakthrough point, even the Red Sea, may not have no opportunity.

Preface entrepreneurship is more than passion

Why start a business?

Many of the different answers are likely to be related to "interest" and "dream". A 2012 survey of motivations for domestic entrepreneurship shows that 72% of people make entrepreneurial decisions because of their hobbies.

In the same report, there is a disturbing set of data: 57% of entrepreneurs say they are "less knowledgeable" about their entrepreneurial field.

To look up to the sky, but also to look down the road. Having a dream is a good thing, but in the pursuit of the dream, we need to pay attention to those who may make the "road of success" halfway to the entrepreneurial trap.

Just talking about dreams and not talking about money

Case：

A domestic college student entrepreneurial team, once dreamed of building a Chinese LinkedIn. Inspired by this "grand Dream", they plan a complex set of product architectures, algorithms, and implementation processes, and in their original proposal, the target user definition for the product is 100 million, and the company's forward value is 10 billion dollars.

But they forget that there are only three people in the team, and they are almost penniless college students. In the end, one person quit halfway, the other two did not adhere to the product molding-the final fetal death of the project.

In the process of entrepreneurship, they met a lot of investors, and it's not good for three young people to make such a big plan. Some investors say they are willing to invest if the team is willing to make something "closer to the money" and to feed and grow.

But three proud young men refused.

Enlightenment：

Another 2013-year domestic venture group visit shows that most grassroots entrepreneurs ' biggest concern is "lack of money". And entrepreneurship is never a "heavyweight" distribution of differentiated fighting ground, if you choose the same field, you have to compete with the high handsome--unless your dream can really impress everyone.

Or start from an early age, looking for "closer to the money" project, gradually accumulate experience and contacts, perhaps a better choice for grassroots entrepreneurship.

Second, as long as the technology does not market

Case：

Several like-minded technical experts resigned from their respective companies and opted for partnership ventures. They sketch a very cow product idea, the technical realization also has the safeguard, therefore thinks the future is bright.

At the beginning of the team's inception, it was suggested to recruit a market-experienced person to join, but eventually rejected by the team after discussion-the reason is, when the product comes out and then find too late. There is even a technical expert said that our products must be the most cattle, customers do not use our who?

So the project that has not taken into account the business model and the market survey has been launched. Several partners put their own savings into the final product, but found that they do not know who to sell.

Under the feeling of being nasty, they interviewed several industry insiders with market experience urgently. The other side of their product is completely not optimistic that the market has not formed a demand.

The project finally died, several people split up, their respective back to the big company to work.

Enlightenment：

Grassroots entrepreneurs (especially technical entrepreneurs) tend to overlook the power of the market. They firmly believe that they can conquer the world through beautiful circuit boards and exquisite code, but forget that users only pay for the products they need or are tempted to buy.

Third, the "expert" opinion is very important

Case：

A foreign enterprise technical expert ability is very strong, because of lack of promotion opportunity, decided to venture out. He had some difficult times during the Spring Festival, so he initially planned to make a browser product that would automatically buy tickets online.

But he felt he lacked clear goals and an understanding of the market as a whole, and kept consulting with industry experts and friends, and the result was negative information-that users would not give up big-brand browsers to choose him for the selling point.

Finally through the expert "training", he chose to do another "more reliable" product, the result failed. A year later, each big grab ticket plug-ins and browser to trigger the popularity of netizens crazy, he regretted.

Enlightenment：

In this world, there are too many people to speak and too few people to act. Your success is destined to be your own business. When you climb Mount Everest, there will be a lot of experts in front of the camera to relish: "I long to see this young man's legs well." ”

The only way to take less detours is to see more and think more and to communicate with people who choke on water. The shore of those who look at the lively refueling, let them go.

Iv. believe in the so-called "collective wisdom"

Case：

A ROM development team, although there is a financing, but the days are still tight. Products on the line, it does have a certain amount of sales, but as the overall profit of smart phones diluted, ROM licensing costs are also plummeting.

Company meeting to discuss whether to transition, many early start to eat a lot of pain, now just see the benefits of the members are not in favor, we feel that the current business to make money is very good.

Finally founder Lipaizhongyi, dictatorship once, decided to fully transform to do app. As a result, the ROM market fell again after half a year, but mobile phone application is ushered in the climax of development.

Enlightenment：

There are a number of similar cases. Start-up companies are usually a few people, a little bit more prosperous, expanding to more than 10 or dozens of people. Critical moments Democratic decision-making is likely to be a poison in startups-everyone's opinions, opinions and starting points are different, and may have their own calculations.

A lot of success stories are the founders in the key transformation of the Lipaizhongyi, rarely vote, can choose a bright future.

V. Find "Blue sea" before launching

Case：

A university graduate decided to start his own business by giving up an offer from several well-known companies. He is nervous about the survival of small and medium-sized companies in the shadow of the Giants, decided to be like the self-made star founder, to find some big companies did not find a blank field.

But the blue ocean is not so easy to find. A large company covers a limited area, but the world's big companies are too many, all superimposed up, really both blank and operable market, he did not find a.

Probably after half a year of wasted, he chose to give up. The road to entrepreneurship has not really begun, it is over.

Enlightenment：

If you really find an area where no big company is involved, it may be that the field is not mature enough to compensate you for it, and one possibility is that big companies are already fully evaluated and tempted.

Do not superstition Blue sea, no one swimming pond, may be a ditch.

Conclusion, success is just a reunion

In fact, every person who fails to start a business can sum up a few lessons that make them sad. If you are determined to embark on the road of grassroots entrepreneurship, you may encounter risks and pitfalls, there must be a lot. The above five articles, but we can find a certain universal case-hope that you can have a dream of you, a greater chance of success.

But entrepreneurship as a whole, is still a failure far more than success in the field. According to foreign statistics, to set up a business entrepreneur calculation, its final failure rate of up to 70%; if we focus on college students grassroots entrepreneurs, the failure rate is as high as 90%.

More and really have actual combat experience of the exchange, bold hypothesis careful proof. If you really do everything you can, but you don't succeed in the end-it's likely that luck or opportunity isn't good.

Success is a reunion. Before you meet, you have to go over obstacles like Super Mary.