Source: Changjiang Business School
How difficult is entrepreneurship?
According to the data of the China Banking Regulatory Commission, the average life expectancy of small and medium -sized enterprises in my country is about 3 years. After 3 years, small and micro enterprises have continued to operate normally.Another statistics show that more than 90%of startups will fail.
Entrepreneurship is a tough battle.In the past two years, under the influence of complex and changing international community, the global economy has declined, and many entrepreneurs have encountered bottlenecks.How to cross the "Death Valley" of entrepreneurship has become a few survivors and the test that every entrepreneur must face.
Today’s article will share with you the co -founder of Zhenge Fund, the co -founder of New Oriental, and the DBA alumni Wang Qiang’s important experience and practical cognition of the Changjiang Business School.Entrepreneurship is difficult. Maybe from the experience of coming people, we can find our own airmarks.
Source | Zhenge Fund
Zhenge Fund co -founder
New Oriental Co -founder
Yangtze Business School DBA alumni
Determination of entrepreneurship means that you want to invest in ten or 20 years in your life into a career.For a long time, entrepreneurs must cross all kinds of cycles.Therefore, it is necessary to have extremely keen perception, grasp and action of various cycles.If the challenges of various cycles, all levels, and each dimension cannot make effective responses, then entrepreneurship will encounter many difficult junits.
What is the first and maximum cycle in entrepreneurship?I think it is a country’s policy.This is the longest timeline.
Looking at the future, it is not just to look at the next five to ten years, but ten to twenty years or even longer -what industries the state supports?From the perspective of funds and resources, what is the country’s industrial layout?What is the country’s development vision for various industries?
For specific startups, knowing the highest level of cycle is the key thinking framework for its deployment.Compared with the macro leadership of national policies, I call other cycles as small cycles, such as the economic cycle, financial capital cycle, and the development cycle of your industry, and so on.
Therefore, it is necessary to encourage policies for the development of the country and maintain a high acuity of the regulatory policies of various fields.In this way, the rock under the entrepreneur’s feet is very solid, so that it can stand on it and sprinkle their dreams to the fullest.Hyderabad Stocks
Capital -supported startups will experience investment rounds such as seed wheels, angel wheels, round A, B round, and C round, until the acquisition or IPO is listed, which is essentially different from the company that uses its own funds to explore.
In such a large period of time, capital is rhythmic and window.
At the current time, what kind of startups are the capital tendency to invest?What is the standard given by the market?What valuation does capital tendency give?Grasping the cycle of capital and controlling the financing rhythm of the enterprise are essential for startups.
Some startups that have not persisted, either blamed too much money, or when the cold winter of capital came, there was no keen attack.
Capital is a double -edged sword, which can provide fuel for engines and provide startups with motivation for startups.But at the same time, everyone should remember to control the company’s financing rhythm according to the real motivation of entrepreneurship, the layout of talents, and the actual scale of business development.
The rhythm of financing must be clear and controllable, and we must relatively rationally integrate capital to avoid excessive financing dilution.Because at the start -up stage, the high valuations that are considered at the moment are still at a low level relative to the growth of the company.
At this time, a large amount of capital is integrated, but I do not know how to effectively deploy it, which will cause invalid use of funds, and it is even easy to fall into meaningless competition.
Just like "Competition is for losers" by Peter Thiel.If you do not think about competition clearly, do not have a particularly clear understanding of the essence, direction, dimension, time, and space shaft of the competition. The deployment of capital will be designed to cause the focus.So no matter how much capital, it can’t get real use.
In addition, startups do not have to overdo their valuations.
Valuation is just a psychological feeling, which is subjective.The valuation of entrepreneurship is the value you think after the value of the company’s value and the willingness of the first market payment will, and the perspective of the two is subjective.Therefore, early valuation is not so important.
Because everything is a piece of white paper, the doubling and exertion of assets lies in the company’s future growth stage.
Only when a startup is acquired during the development process, or listed in the secondary market, and receiving real gold and silver can you get a more objective assessment, and the valuation can be solidly settled.At that time, it was the moment when people’s recognition of the value of startups.
Therefore, entrepreneurs should not be too tangled about early valuations, and getting money quickly and safely than how much money gets.Sometimes you reduce your body and quickly raise fuels for enterprise development. When the window is open, it is critical to make funding reserves before the cold winter of various economic, geopolitics, business, and internal management.
At different stages of development, startups will encounter different problems, including talent management, team management, corporate culture, and so on.This is a very natural situation. Whenever the company reaches a specific stage of development, entrepreneurs should clearly understand what kind of talents should be introduced in this node.
Many startups are easy to get the best talents in the first time when the capital is not strong enough and the development path is not clear enough.However, talent is always a two -way choice, and talents need to match the dream and potential of the company.At that time, the founding company had no essential, dramatic, and encouraging development, and truly excellent talents may also lose confidence and eventually leave.
If you did not have the grand dream and execution of the most awesome people in the industry at first, you don’t have to worry about it, you only need to introduce your talents in rational, practical, and solidly in stages.
Sometimes when the company enters the next stage of transformation, the demand for the entire business skills chain may be greatly reduced.Therefore, the correct strategy of talent configuration is a specific node of the company’s development, looking for talents who are the best at this stage and slightly higher than this stage of development needs.
What is entrepreneurial?
In my opinion, entrepreneurship means constantly exploring the possibility of the market, the possibility of technology, and the possibility of the industry, so as to constantly adjust the direction of advance and lead to the final goal.
For entrepreneurs, changing the channel and correction path is the most important.We must not only pay attention to the desires of departure, and ignore the possibility of all market development, capital operation logic, development of user habits, and technical iterative possibilities.
I often say that the original intention actually means arrival.
If when you set off, you are very clear about the terminal you want to arriveNew Delhi Stock Exchange. When you are clear that you can support you to cross all the size cycles, this original intention is the real arrival, and such a original intention will not change in the end.Otherwise, when you don’t think about it, you need to constantly adjust your goals to run to the other side you will eventually arrive.
In the end, when you choose to start a business, you choose to have dreams and dreams. When you are physically and energetic, you choose to influence or even change the reality of the part, and do something to arrange your own destiny.
I wish you all sweating on the road of entrepreneurship, condensing a group of excellent passers -by, and realizing the dream of passion for life.
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