These are nine pieces of advice in the form of email. It tells young entrepreneurs, "If you want to start a business, you must overcome these nine pitfalls."
No.1 Do you really want to start a business?
An information technology graduate named Francisco wrote an email to his mentor:
"I really want to start a business, but I can't bear to work in the bank. There are great risks in starting a business, and I'm afraid that I will end up like other entrepreneurs. What should I do, professor?"
So he received the following response,
"I think your work in the bank is very cutting-edge. You have not only learned something and applied advanced technology, but also created value. Your work can enable you to develop entrepreneurial skills. At the same time, you have no entrepreneurial idea that can not only meet certain needs in the market, but also does not conflict with the current work. My suggestion is that you continue to pay attention to the market and slowly look for entrepreneurial opportunities."
No. 2 Are you sure you can see the future?
A designer named Ralph wrote this letter to his father:
"Since I graduated from the master's degree, my two years of working in this design company have been very successful, but since I came out to work alone, I have not even attracted a client. I firmly believe that my design will benefit some people, but I have been rejected, and now I have not received any money. I know that you have been supporting me all the time, and thank you very much for sending me 6000 dollars. I need this money very much, and I want to stick to it for a few months, if not yet I will look for a job or go home. "
No. 3 Where does the start-up capital come from?
Business plan is the most formal model in the field of entrepreneurship (yes, there is also entrepreneurship course). Through the business model, potential investors can know how their capital will be used or how to make money.
Generally speaking, the start-up capital of 400000 euros is enough to set up a company. The idea of starting a business sometimes looks good, but such as the hockey stick phenomenon (in a certain fixed cycle, the early sales volume is very low, and the later sales volume will increase suddenly) will also induce entrepreneurs to make business plans and put them into practice.
Sometimes, investors will invest in batches. If a business costs 90000 euros in the first year, it is not necessary to use all 400000 euros when the company starts. The thing investors hate most is watching their money burn. Therefore, the risk of investing in batches is that if the situation in the first year is not ideal (for example, 120000 euros has been used up instead of the expected 90000 euros), investors may panic and regard this part of the capital as a loss, thus refusing to continue to invest.
For entrepreneurs, they must try to get the maximum investment from investors when the project is launched.
No.4 Did you choose the right entrepreneurial partner?
Choosing to start a business with others is nothing new. McDonald's was founded by two brothers, Morris and Richard, in 1948; In 1849, Dr. John and Henry Lun established a company specializing in eye health products, Boshilun (cold).
Mario, Alfred and Felix founded a company specializing in making water sports shoes. Alfred wrote to his partner Felix in this way:
"Except for Mario, our partner, we are all working hard, and he always uses various reasons to shirk his work. I think we can no longer ignore this problem. We no longer need Mario. In addition to letting Mario go, I think we should also consider allocating some shares to other excellent and progressive employees."
In the end, Alfred persuaded Felix to share his cards with investors and negotiate with Mario. However, the negotiation process was very difficult, because Mario not only did not admit his mistakes, but also asked too much for the shares.
No. 5 How to select angel investors?
Angel investors refer to individuals or groups specialized in investing in new companies. Under the stimulation of various organizations and institutions, angel investors are increasing. Angel investors generally sell their own companies, or have retired, have spare money to invest, and have time to learn, monitor, and even affect the development of the companies they invest in.
An interesting phenomenon is that as life expectancy is increasing in most areas, retirement age has not increased simultaneously. In some companies, employees in management positions are willing to retire early, which also promotes the development of angel investors.
In addition to angel investors, entrepreneurship also started to make some opportunistic politicians concerned about startups. Many governments have special funds and budget subsidies for start-ups. In fact, this approach is risky: entrepreneurship can bring employment opportunities and tax revenue to the society. The government should consider giving some tax incentives, rather than financial subsidies, at the initial stage of the development of entrepreneurial enterprises, so as to avoid giving taxpayers' money to people who are not suitable for entrepreneurship, thus causing waste. At present, the United States government has begun to do so.
No.6 Learn to let go rationally
Marcello and Vinay set up a company in Miami to sell food and household products online. They want to develop in the United States now and expand to Mexico and Brazil. They drafted a very convincing business plan, attracted the attention of a venture capital company, and obtained some investment. With the development of the project, this venture capital wrote a letter to them:
"I have some doubts about whether your model conforms to the current changing market, but you seem to think that this is not a problem. You are only interested in websites and logistics. You have been telling me that you want me to invest another 1 million yuan, but I think the project has not improved, nor has it turned into a profit within three years. This problem seems to be irreparable. I am now with a heavy heart, and I hope to withdraw the investment. I hope you can Ask around to see if anyone is willing to invest in the company. I don't think you can find anyone. "
Eventually, Marcello and Vinay closed the company. They think that five years of entrepreneurial experience is a valuable asset, but they still find a job, and then consider the business.
No. 7 Keep the original intention or stop when things are good?
There are many ways to exit a business, one of which is to sell the company. However, selling a business requires the ability to maintain its continuity, retain key employees, and integrate the business with the existing business of the new company within a certain period of time.
Integrating two companies is a complex task. Research has proved that two-thirds of mergers and acquisitions are unsuccessful, and the expected synergies in business integration have not appeared in many cases.
Another way is to sell the company to private equity firms. These companies specialize in acquiring companies with growth potential, then managing them, and finally integrating with other companies with complementary advantages.
Many entrepreneurs are reluctant to sell their companies, although their intuition tells them that they should. In fact, companies with growth potential are more valuable than those that have reached the peak.
No. 8 Can you see emerging markets?
The world economy is changing constantly, and the integration of new regions is stimulating the growth of international trade and investment. In these emerging markets (China and Africa), many things are handled in a completely different way from those in mature markets.
For example, many Chinese companies regard Africa as their first choice for going abroad.
No. 9 Don't take the red line. Honesty is really important
It is common for many well-known entrepreneurs to invest in tax havens or "donate" illegal funds to political parties or politicians. They always try to avoid taxes outside the scope allowed by law.
Entrepreneurship is not just about finding an opportunity and turning it into reality. In addition, entrepreneurship also needs to consider: if the business is successful, it will bring rich profits, then people who earn more should also bear the corresponding tax.
Most entrepreneurs who violate laws related to tax, regulation and security affairs are not aware of their own mistakes, or the mistakes made by others in their own name.