Entrepreneurship is a process in which entrepreneurs and business partners work hard to optimize and integrate the resources they own or can own, thus creating greater economic or social value. The following is the role played by the company in starting a business, which I collected. Welcome to share.
I was confused yesterday and thought about what entrepreneurship is. What is the role of the company? Then I thought about it carefully and got it.
Many people clamor for starting a business all day, and there are many explanations on the Internet, but many people who want to start a business can't, because they really don't know how to start a business, and there are many nameless sensory factors: face, fear, feeling high-end and innovation. ...
In reality, some people think that starting a business is doing it yourself, and it is true. Some people think that entrepreneurship must be tall, just feeling.
Aside from the objective and other people's point of view, from my cognitive point of view, in addition to the above, no matter how it is defined, it is inseparable from the following sentence:
1, entrepreneurship is inseparable from "solving users' pain points and meeting users' needs" by selling products, services and advertisements!
2. In addition, there are high-end types: C2C (consumers and consumers), B2C (merchants and consumers) and B2B (merchants and merchants).
3. Further scale is inseparable: simplification of complex things, systematization of simple things, systematization of systems and scale of processes.
In short, set a goal as a dream, and then start living in the present and do it step by step as mentioned above. How capable are you of doing many great things? Why are you so complicated? Is it useful to daydream all day?
Some people say that experience, knowledge, team, money, resources and so on have not accumulated enough! Again, "How capable are you of doing great things?" Everything is ready except the east wind. See how much you can do when the daylily gets cold. Instead of thinking with your little knowledge and then defining the big world without scientific analysis, it is better to integrate your existing resources and do it first.
Isn't life unknown? If you choose to struggle, you must struggle. There can only be one goal. Without active learning, it is possible to discover and accumulate actively. Planning is not far away, not perfect.
At the same time, according to the facts, no one can do everything, and his energy is limited. You should learn to borrow money at any time! No president of a big enterprise is a prophet. When starting a business, you have to try and make mistakes slowly and walk slowly. Let's draw an entrepreneurial cake: we want to sell products to start a business, and we want to build a better enterprise in the future, but there is nothing in team, money and resources. What should we do?
1. If there is no money, we will make money first; Self-study without basic business knowledge; Nobody's looking for someone. There are many people with resources and no ideas, and there are also many people without resources. Discovery is more valuable than thinking. Complete the basic framework!
2. Carry out the pilot operation, then constantly reflect, continue to study professionally, and constantly improve!
3. Re-integrate resources! Start-up system, process, scale and maturity.
Rotate at 4, 2 and 3, and get bigger and bigger.
This is to make it bigger. If it's just to make more money, it's actually three points:
1, learn the skills of making money
2. Integrate the resources around you.
3. Just work hard. If you omit it again, you don't need it at all. As long as you don't care about the face problem, integrate the resources and abilities around you and do it boldly. The more vain you are, the more you will accomplish nothing.
For starting a business, some people attach too much importance to experience, which is illusory. Some experiences are necessary, while others are purely illusory. I give two refutations:
1. You should like the experience. China has a culture of thousands of years. How many years can you live on your own experience? A lot of experience is useless many times.
In addition, I want to talk about my experience. Who can tell me why the decades-long experience of traditional enterprises has been turned over by the Internet?
With the rapid social change, active learning is more practical than passive management. Solving the experience problem is actually very simple:
1, learning, not learning.
2. People who don't go to the meeting. Entrepreneurship has autonomy and there are not so many constraints.
Of course, experience is necessary to find a job, because others want us to provide him with direct value, and it takes more time to train a person!
Speaking of which, it's time to talk about the second topic. In the internet society, as long as people have money, ability and technology, they can develop greatly without many external factors, especially companies.
For professional teams, company representatives are more about trust, which means that enterprises should be useful, especially for future development. But for those who just want to make some money, it is impossible to know, especially those who have no direction. Many people just want to save face, but it has no practical significance. It's too easy to start a company now. Just lie to the older generation of comrades in my hometown. Those who know the market are not serious. Besides, a company without a plan just to save face is likely to lose money. I hope everyone can start a company and cherish it.
Problems easily encountered in equity incentive of startup companies
1. What is the purpose and function of equity incentive?
Equity incentive is a reward to encourage managers and core employees to strive for the same goal. Its purpose is to solve the problem of principal-agent relationship between company shareholders and professional managers, so that professional managers are more concerned about the interests of shareholders and their interests are as consistent as possible. Equity incentive can be roughly divided into three levels: how to attract people, how to retain people, and how to motivate people.
What role can equity incentives play? First of all, shareholders and professional managers have different positions at some time, and equity incentive is an effective way to solve their "game" problem; Secondly, it can leave "imagination space" for professional managers, change the behavior patterns of some professional managers, turn short-term interests into long-term pursuits, and enhance their enthusiasm; Furthermore, it has the function of spiritual encouragement and enhances the sense of belonging and identity of professional managers.
2. What are the risks caused by improper equity incentives?
There are four main risks:
(1) Choose the wrong incentive tool: it is easy to become the "wrong golden handcuffs".
In a startup company, there was an example: an employee thought he had done a good job, but after giving shares, the employee felt that there were too few shares. After calculation, he didn't have as much money as his competitors, so he chose to resign. Therefore, it is best to have imaginative space for equity incentives, and equity incentives without imaginative space will be counterproductive. Sometimes, equity incentives are not in place, which means there is no incentive.
At the same time, it should be noted that all "golden handcuffs" have a time limit, and they will lose their functions after a certain stage, so different incentive schemes should be used at different stages.
(2) Lack of fairness and justice: It is easy to cause new contradictions.
Sometimes, the difference in equity incentives may make some employees question the fairness of the company. Therefore, large-scale equity incentives should adopt a certain confidentiality system.
At the same time, the "ritual sense" of equity incentive is also very important, because it also has a spiritual incentive effect. A star friend of Lenovo Star Class 5, whose company's equity incentive method can be used for entrepreneurs' reference: within the company, similar shareholders' meetings will be held regularly, and the founder and backbone all hold equity, and others have no right to participate. Participants seem to be labeled, which has played a powerful spiritual incentive role. In contrast, some companies are afraid of risks and secretly give equity, which will not play a role in moral encouragement.
(3) There is no restraint mechanism: lazy people are easily born.
Some start-up companies have given employees equity, but they have spawned some lazy people, and there is no corresponding restraint mechanism and regulations. Therefore, we should also be very cautious in selecting people.
In fact, the development of the company needs a group of "anchoring needles" and a certain degree of loyalty. When there are problems in the company's development, "Dinghai Shenzhen" is willing to work together with the company's shareholders to tide over the difficulties; On the contrary, it is useless for some purely opportunistic people to pay too much. After he left, it will bring a series of chain reactions and new troubles, so there is still a corresponding restraint mechanism.
(4) Insufficient incentives: it is easy to catch small fish, but difficult to catch big fish.
There is a simple reason. For employees with poor ability, motivation is an extra surprise; For competent employees, lack of motivation equals no motivation.
3. What are the modes of equity incentive?
Three tools of equity incentive: real equity, virtual equity and option.
Actual equity represents the ownership of the company by the shareholders, including the comprehensive rights of attending the shareholders' meeting, voting, participating in major decisions of the company, collecting dividends or sharing dividends.
Advantages: the strongest sense of belonging, belonging to long-term incentives.
Disadvantages: complicated procedures and poor flexibility.
Virtual equity refers to nominally enjoying shares, but actually having no voting rights and residual distribution rights, only enjoying dividend rights and part of value-added income.
Advantages: This is a flexible way to replace the actual shares. Whether you can enjoy the dividend right and appreciation right of shares at the same time, whether you need to contribute capital, etc. Can be combined to form a variety of solutions. Compared with equity, it is easy to operate and control.
Disadvantages: when the company is small, the sense of motivation and corporate belonging is relatively low.
The stock option company grants the incentive object the right to buy a certain number of circulating shares at a pre-agreed price within a specific period. The incentive object can give up the exercise of rights at the same time. The exercise of stock options is limited by time and quantity, and the incentive object needs to pay the exercise fee by itself.
Advantages: Only the equity appreciation has the exercise value, which can motivate the incentive object to work hard for the company's business development; The arrangement of multiple exercises can restrain the incentive object for a long time.
Disadvantages: business stagnation and decline stage have no incentive at all.
Enterprises use different incentive tools at different stages of development.
As shown in the above figure, in the early stage of starting a business, enterprises often have no profit and cannot pay dividends. At this time, employees pay more attention to long-term benefits, and it is better to use actual equity incentives.
In the growth period of enterprises, we should flexibly choose the above three tools according to the different characteristics of enterprises, such as giving real equity to core executives and considering giving virtual equity and options to middle managers.
The maturity of an enterprise is generally in the listing stage, and the company's recent income is considerable. You can also consider the actual equity incentive.
In the recession after high growth, equity is no longer attractive, and cash incentives should be given priority to.
Non-equity incentives can also achieve good incentive effects, such as the establishment of incentive funds.
Turnover costs should be determined for equity and option holders.
Daily incentives and long-term incentives should be combined. Daily incentives can be obtained every year, and long-term incentives take a long time to get, which is conditional.
General options have similar requirements, such as the number of years, and it is stipulated that you should leave some options after leaving your job, and you can't go to a competitor's company for a while, and you can't do similar things yourself. This also makes employees realize that there is a cost in leaving, and long-term incentives are constrained.
The long-term incentive of actual equity is mainly reflected in equity appreciation, but it is needed when exiting. Within the company, in addition to the articles of association and other provisions, agreements can also be signed. In these agreements, we can list the contents that are not clearly stipulated in the Company Law, such as the price difference when shareholders withdraw their shares, so as to limit the actual equity.
Virtual equity owners, like real equity, should also set turnover costs.
4. What is the effect of implementing option incentive?
Option refers to the option that the company signs a contract with the manager and grants the manager the right to buy a certain number of common shares of the company at the price agreed at the time of signing the contract. In fact, it is the price difference, which is more suitable for companies with high growth, low profit and negative cash flow. At present, Internet companies basically use this incentive mechanism.
Two situations in which the implementation effect of option incentive is not good, which are also problems that many companies that use option incentive will encounter:
Case 1: Company A, an Internet company, gives employees options. Even when the company got the B round of financing, it gave employees options at a cheaper price than the A round of valuation, but the company's turnover rate was still high.
Possible reasons for employee's resignation:
These employees struggled and developed with the company in those years, and they paid a lot. At that time, their wages were lower than others, but they worked much harder than others. At this time, issuing stocks and options is a confirmation of historical contributions rather than an incentive for these employees.
Case 2: After the implementation of option incentive in Company B, the overall effect is very good and the employees are very excited. However, an old employee is not very satisfied with this option incentive method based on contribution rather than service time, and feels aggrieved.
Based on the above two cases, there are three suggestions for the implementation of equity incentive:
① Preliminary talent echelon plan: let employees feel that the company has a talent echelon plan, and there are quantitative standards for new employees at any level and where. Otherwise, there is no way to frame the number of options for old employees and new employees;
(2) Relatively standardized financial system: it is necessary to clearly tell the option shareholders how the financial statements of the company are in recent years;
③ Formation of communication and decision-making mechanism: It is necessary to establish communication and decision-making mechanism between shareholders and non-shareholders. Make shareholders feel different from non-shareholders.
In fact, motivation is a comprehensive work, and it is not enough to have a set of methods or tools. After all, no method is suitable for any company. The reason why excellent enterprises attract employees is the combination of many factors, such as the mission and prospect of enterprises, personal development space, corporate cultural atmosphere and material incentives.
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