note: hunting cloud the fast recently in the school open class, Mr. Wang is to face what “pit” talk about the need to avoid in the process of enterprise from creation to grow 5 trap: mode, financing the price is too high, rapid growth, trap trap trap, the whole industry chain and business trap. Of great reference significance to current entrepreneurs.
the following for Mr. Wang speech content:
first, to avoid trap: don’t stuck to their own digging pit inside
entrepreneurs tend to love their career, sometimes will speak their own entrepreneurial process, fantastic long after really think you are doing great, it is particularly easy to make mistakes. Chinese entrepreneurs courageously effusive, tend to see is the ma of success, but didn’t see the fallen so many entrepreneurs.
weibo do before, a Beijing, hangzhou has one. Weibo is very popular at that time, provide a new business model, but after the totals $10 million of international capital are in trouble, because it has a free model of weibo. Such as steamed bread, you are your special delicious steamed bread, but then there was a selling water, give the steamed bread for free to the user’s competitors, so that you charge mode is completely wrong. My original investment qihoo 360, Zhou Hongyi 360 free antivirus software, and other antivirus software quickly. This problem is not necessarily caused by himself, but his underestimation model for the future trend.
there is an entrepreneur, mainly to do community service, he said do you want to be a platform, the community pieces of free time together, the time can be used to revenue, I seriously you take this thing to stop, so far, I can’t see which community owner is not here right now because there is no place for their free time. Do so entirely wishful thinking, it is not the real needs.
we often speak the pain, the pain that point should be everyone is really, in order to solve this problem to a number of ways may not be the solution, even in order to solve this things was forced to make some things, now that’s “pain points”. Error in the model is easy to bring you very big problem, must be careful not to fall to the oneself give oneself to dig the pit inside.
such as O2O again, this is today’s fashion, but do not constitute a special business model, since we have the Internet, from online to offline never stop, if be jingdong, baidu such online in a certain area of special monopoly pattern also line; Offline this piece of traditional not familiar with, can’t and offline very into a system of underground service system, and cannot be built in such a system, so the so-called “O2O”, on both sides of the O all have no, only in the middle of a “2”, I think O2O to become a specific pattern to be especially alert.
model innovation is a very difficult process, someone with the same things to say to want to nail, do a haircut, use the same tools digging potatoes, then go to plane radish, that’s not innovation. Innovation is a real need to break some things, and even destroyed and break the original industry order, if there is no such a state, will think about your model is not suitable for joint investment, if not, is quickly aimed at their various aspects of the overall planning, to match the capital share way, rather than blindly do capital markets. To stop torture yourself: do I really on the right road?
second, financing trap: price too high and capital game agencies to die, you die
enterprise scale slightly, all want to fund themselves, especially Banks, the government financing is bad to get over there. Everyone think now capital market really crazy, venture capital is quite silly, smack of “money people stupid come”.
however, the world’s business no matter how complex it has a basic common sense: buying and selling. Investors in the capital market mix for a long time, can’t be white to start-up financing, entrepreneurs thought he talked a lot of, shrugged his shoulders, said the project has a certain pattern in a foreign country, as a reference, you can evaluate is very high, in fact it is very dangerous. Enterprise value how much money we are in the capital market have a certain concept, when the capital market is a very heated, the price is very high, as the entrepreneurs want to know if there is a bubble, the top is to put yourself in a bubble waiting to fall off, still insist on in his own way. Here are involved in money management, the internal mechanism of people may not know.
risk investment, fund management is most of the professional managers rather than the boss, the professional managers in the process of considering investing most would consider their own career, namely their jobs, and many cadres of state-owned enterprises is the same, you do everything to consider the issues of responsibility, if the enterprise financing in a popular direction, I as a business manager, I met my not into, this to their professional ability is a very disgraceful thing, so fund is very want to go, but, no matter what is professional managers in the entrepreneurs here, go back to the company the meeting all shook his head and said it’s too expensive. But what can we do, don’t lose the opportunity to vote and the price is very high, the bad guys are forced out, what it is: I’ll go first.
not to such a high price, first, a foot inside again, a bit more professional institutions will all bet on agreement signed with you, for this, realize that you are not back your equity hedge. And entrepreneurs feel these agreements such as the future reach again, put the money to blend in. Here involves a very large risk: professional managers into with his partner, said it is a good project, because only in this way can get support, policymakers into now, prices are so high vocational manager pressure is very big, if in the process of enterprise go forward did not achieve the desired state, so try to launch your the project manager will face very big pressure, he will face the partnership people Shared a question: did you not to say that this project is very good? How can not so good?
in this case, as a fund, you want to own the next project by policymakers support is very difficult. This case do? He will come with you, such as hard to find a way to raise prices in the next round of funding to prove that he is right, or through a variety of other ways to pursue interests, in short, to the high price to buy the last through the back door of low loss compensation, reduce their risk, as a result, entrepreneurs will find shareholders appear this kind of power: in wondering how to put the interests of his increasing every day. Conflict, will soon form a team and investors turned into conflict.
if the company’s next round is shrinking financing, investors will not agree, because you shrink round on financing means that he is wrong, at this point, the company wants to increase margin don’t come in, because you are not as expected to so well. In such a case, the company’s financing need to pass the original investors agree that the original investors would rather not agree, for you here, with our word is “stick you as a picture on the wall”, the investment in the fund management will always be acting as an investment the rights and interests of hanging in there, even if finally failed still can extract money what percentage of management fees.
as state-owned enterprises, even the things rot of assets must be belong to me, so I can escape, and finally your entrepreneurial teams can win this round of investment, it is difficult to get the next round, and the price is reach, low price, investors don’t agree. Over a period of time has been a lot of difficulties for the enterprise: the enterprise lack of money, if you said investors give you 3 million, do you want? Don’t, then find another money investors don’t agree with, and how long it will take to investors would say what the price again into shares, transfer shares can use very cheap price, high price to cover the original do. The situation in the investment community, almost a fund at the time of high investment will take more than n countermeasures and methods to cover the original high investment. This is all behind a fund operation habits and ways of thinking, including responsibility, benefit mechanism, entrepreneurial team is don’t know this thing. Do the price high, you bring the risk is very big.
so trade fair, any unfair trading leaves serious future trouble. Entrepreneurs in the stage of financing and capital game, entrepreneurial firms are more likely to death. Because the agency will disperse investment companies to spread their risk, so there is a real game, your death, institutions to death. , for example, there is a Chinese enterprise has to be listed, but listed on the roadshow when investors decide not to, because the price is too high, just at that time, the Internet has fallen sharply if listed, listed is the day that the investors investment error proof, so the enterprise died, it’s called: 8848. The pioneer of China’s earliest e-commerce, and unfortunately, investors make decisions not listed in the end. You will be very strange, why not listed? It is the price of $1 billion, for example, once the listed price is down, even if later, investors will be liable for loss of this project.
third, the rapid growth of trap: enterprise management problem
first, rapid expansion. Personnel for more than 100 people management mode will happen very big change, a good entrepreneur has very good cohesion, with a group of people, but people can be less, the number of hundreds of thousands of times, his appeal will disappear, to be precise to not come over, so will be through the operation of the management system to control the team, at the time of this actually is a very big challenge to the entrepreneurs. I have experience in the past, when I was in wantong do the general manager, but few good special, and I eat dinner together, sing sing, large scale when problems come, not by personal charisma, but through management mechanism, this time bring very serious problem: if an entrepreneur on this issue not excessive training is very not easy.
second, many regions. Cross-regional operation will find key members of the headquarters to expand, as local do strong, how to push through headquarters and local combination, the entrepreneur is a very challenging thing. Companies such as Taiwan, Taiwan should be the most benefit from China’s reform and opening up, because the same consanguinity, and a variety of preferential early, but the impact of Taiwanese enterprises in mainland China is not everyone expected is very strong, is mainly because of the political culture, the island nation mentality problem, cause and mainland cooperation problems of one sort or another. Taiwanese enterprises in mainland China’s overall performance and it is itself a disproportionate.
in the end, the collectivization. Entrepreneurial teams in Beijing, often in the enterprise is small when considering the expansion, other local enterprises development of the country’s mental is not so strong as Beijing, in Beijing’s enterprises from birth to consider expanding across the country, it is the center of Beijing as a capital agglomeration bring atmosphere, it is easy to become collectivization development, obvious characteristic is that the board of directors of the group leader, headquarters across the board to lead the board of directors, the shareholder is involved relationship coordination, operation, involving new work way of thinking, often appear the consequences of, or the place of the board of directors into form, either a group will not appropriate, a company will lead to collectivize effect is inefficient.
4, about the whole industry chain, will cause the resources don’t match
every time meet enterprise must carry on the whole industry chain layout I will especially vigilant. In fact it is not easy to grasp, an enterprise control of the whole industry chain, closed “industrial chain” the idea is very dangerous to the entrepreneurs. This way of thinking seriously affect the enterprise value. To the whole industry chain, the enterprise’s products from the initial to the final work involves a lot of links, there are quite a part of that need to be done through social, enterprise can’t form self-sufficient, there are some link resources supply level is different, some are need to cooperate to market not cause bottleneck link, therefore, a business in the whole industry chain closed sometimes resources don’t match problem. The whole industrial chain with resource bottleneck resources matching problems sometimes, can be serious in the whole industry chain layout after the baggage. If want to undertake the whole industry chain layout, the proposal should be vigilant, might say to the need for industrial chain layout the degree, but it will often make such mistakes.
5, having relationship of trap
as the government strengthen the anti-corruption, left many officials to step down, almost each official to step down, followed a group of enterprises fall behind, because of the market in our country is formed, many aspects of the enterprise are need government support. Indeed in the process of economic development, because of the government into just have today’s economic take-off, but there are positive and negative, sometimes also can bring some problems. Pure risk from business to talk about, to note that when a product or service appears false illusions work will bring great harm, do you think the next government to solve the market problem, but often do not have a high level of the government to promote the market need, if the market special needs an industry, the government doesn’t have to go to, because it will form their own market. Companies eventually will take root in the user need not to need. As long as you provide a service or product is really necessary, will develop very fast, as long as it is detours, by various means changing are not necessarily really need.