Sun Taoran said entrepreneurship: small companies are an important way for start-ups to maintain their vitality

Start of a startup company: the company has the smallest number of personnel, the simplest organization, and the smallest operation.

In modern society, the speed of technological changes is too fast, and the changes in policies and the macro situation are also very fast. Start-up companies will have more opportunities to support them for a year.

How can companies support it for a year or even longer? It is nothing more than increasing income and reducing expenditure. At the stage of no products, there is no way to increase income. There is only one way to reduce expenditure. Using the fewest people and doing the least things is the only way to reduce expenditure. Throttling is not about not doing things, but focusing on doing the most necessary things. For start-up companies that do not have products, the most important thing is to do products.

Sun Taoran said entrepreneurship: small companies are an important way for start-ups to maintain their vitality

01 In what state is the company safe?

Without a penny of income , the funds on the company’s account can still be supported for 18 months, and the company is safe. The so-called C-round death is the company’s financing and expansion. When the expansion plan does not meet expectations, the expenditure plan is generally spent as expected, but the income plan did not receive as expected, resulting in unexpected losses. At this time, if not before the massive expansion of leeway, it is Yung -company funds strand breaks. The correct approach is that no matter how confident the expansion plan is, it will leave oneself with a minimum of 18 months of survival if the expansion fails.

02 The top leader must have the ultimate mind

Entrepreneurship is a marathon. The most important thing for a marathon is to run to the end, so the top leader must always consider the problem according to the end of the run: on the one hand, running a marathon is not at the initial speed of 500 meters or even 5 kilometers , the most important thing is What is to do is to arrange physical strength and supplies reasonably to ensure that you can run to the end, never let yourself be in a state of physical exhaustion or cut off supplies, leave room for everything you do, and ensure that you can run to the end no matter what happens; Slow down and posture a bit ugly, but make sure you can reach the end. On the other hand, you must constantly correct the target while you are on the move, and always look at the end point to see if there is any deviation in the process.

03 All entrepreneurship starts from the “garage”

Many well-known American companies started in the garage of the founder’s home, such as HP , Microsoft , and Apple. The famous domestic Xiaomi company, although the first financing was 5 million US dollars at the beginning of its business, MIUI was developed in Starbucks coffee shop for a long time .

This is a kind of consciousness, a kind of idea. That is, to start a business, you must split a penny into two halves, and save the money. This is what a business should look like, and it is also a concept that a successful business must have.

Prior did not make a marketable product, company personnel minimization, the most simplistic organization, minimize operator, do not come to rent a large office, doing very fine beautiful decoration, as well as various departments to recruit staff, even the front desk, secretary …

04 The best entrepreneurial posture is “Lean Entrepreneurship”

The correct entrepreneurial posture is to start with a small company, and a large company to do a small business, not a small company to make a big business.

When the executives of many large companies start their own businesses, or when successful entrepreneurs start their own businesses again, they are prone to committing the problems of small companies doing big things. From the very beginning, they have a big shelf, and they will start with the organizational structure, department responsibilities, and operating procedures. Wait. These are not only unsuitable for start-up companies, but also increase costs. In fact, many Internet startups nowadays don’t talk about any department, they are just a group. Product, technology, and marketing personnel are all in a group, so the efficiency is the highest and the cost is the lowest.

05 Is there a more scientific way to start a business?

Some people in the United States talk about “Lean Entrepreneurship”, Fan Deng talks about “Low Risk Entrepreneurship” in China, and Kunlun Academy talks about “System Entrepreneurship”. They all lead the same way, namely: use the shortest time and the lowest cost to make a minimum deliverable product (MVP=minimal viable product), and then put it into the market as soon as possible to verify whether the product is accepted by the user.

MVP detailed explanation: MVP is the minimum deliverable product. The product should never be verified after it is perfected. Instead, it should be the lowest cost and fastest time to make a product with core functions available, and then go out for verification immediately. .

Take the APP as an example. There are many versions of the app. Just make a version 1.0 for a just-needed product, a product, and a function to verify, then observe the user’s feedback and modify it repeatedly. Don’t think about saying that one day I will build the product to perfection, and then I will put it on the market, especially now that it is wrong to do so in the era of mobile Internet. Because of the perfect product, if the consumer does not buy it, the time is delayed, and the investment is all delayed, it must be the first time to use the MVP method for product verification.

It is very unwise for many entrepreneurs to mortgage their house and car to start a business before they have found a product direction or made a product that someone is willing to buy. Although I have always advocated that entrepreneurs must do their best, and others will not lend a hand if they do not do their best, but I also strongly do not advocate selling a house and land to start a business, and controlling risks is a must.

Control risks include absolute control risks and relative control risks. From an absolute point of view, entrepreneurship is very risky, because entrepreneurship means investment and opportunity cost. Investing in entrepreneurship means giving up part-time work, which means giving up income. This is an absolute risk; relative risk means starting a business through the system and running through small steps. Ways to reduce the inherent risks of entrepreneurship.

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