? The common cause of entrepreneurial failure is 1, lack of funds.
Entrepreneurs underestimate the financial needs, lack the financial budget, and at the same time can not effectively use funds in business or production, making it difficult to create a surplus.
Many people did not consider the importance of liquidity at the beginning of their business, and rushed to start a business without enough liquidity. As we all know, many people's business is not very smooth after starting a business. When they need to persist for a period of time, they have to close their doors early because they don't have enough liquidity. If the entrepreneur does not have enough liquidity to maintain business for more than half a year, it is best not to start a business easily.
2. Insufficient market information.
Including not really understanding the demand of the potential market, misjudging the market share, and not knowing the sales channels and competitors.
Many entrepreneurs don't understand the operation of competitors, and they don't carefully analyze their own business strategies. They don't know what measures and means competitors will have to deal with themselves next. In particular, if you don't analyze the advantages and disadvantages of both sides and act according to your own feelings, you will often suffer in the end.
3. Too many defective products or high defective rate.
Because there are too many defective products, or the defective product rate is too high, the cost and loss are too great, and the product popularity is not high at the beginning of the business, resulting in unsalable products and a large amount of inventory hoarding.
4. Wrong strategy.
Inappropriate corporate values, ineffective management and sales strategies, incorrect estimation of competitors, etc. , including the mistakes in entrepreneurial ideas and competitive strategies. Because these strategies are related to the life and death of an enterprise, this is also the main reason for failure. Once entrepreneurs make big mistakes or events, they often lack coping experience and solutions. Therefore, for the first time entrepreneurs, a wrong strategy may be fatal.
5. The speed of product elimination is too fast.
If the life cycle of the product is too short, or the product produced is not fashionable, the product will be eliminated soon. This outdated product, which is easy to be eliminated, is likely to fail in a short time after starting a business.
Popular products that are usually aimed at young people generally have a short life. Entrepreneurs must find out this rule. When a popular product is popular, when you want a piece of it when you invest again, it may be when your new product is on the market, that is, when it is no longer popular, you should be especially careful.
6. Improper management.
Entrepreneurs are inexperienced and constantly changing, and often learn from their mistakes, but they consume a lot of resources of the company and cannot establish a reasonable, flexible and efficient system. For example, improper employment causes unnecessary internal friction; For example, there are loopholes in the financial system, giving employees the opportunity to harm the public and enrich themselves; For example, we don't pay attention to safety in production, causing serious casualties.
7. Start a business at an inappropriate time.
For example, opening an air-conditioning shop in winter may lead to setbacks in your entrepreneurial career due to off-season factors. Or starting a business will soon be restricted by the newly promulgated national and local industry management regulations, which cannot be predicted and imagined, resulting in a waste of resources or inability to operate.
8, do not understand the relevant provisions of the state.
The state stipulates that many industries cannot be run by private owners. There are also some industries that were originally allowed to operate, affected by policy changes, and even closed down indefinitely for rectification. All these should be clarified.
Views on entrepreneurial failure 1. Fairness, fairness, fairness: Don't suffer injustice because of widowhood, treat all those who believe in you fairly, whether they are founding partners, partners who joined later or partners who have left, so that they can get their due rewards.
2. Advance and retreat: Let capable people enter at any time, let those who want to retire at any time, let unsuitable people be laid off at any time, and establish an open team. Ask where the canal is so clear, because there is a source of living water;
3. Reflect the value and importance of various elements: not only money, but also time, patented technology and contacts? There are often eighteen kinds of martial arts in the diaosi entrepreneurial team, that is, wood has money. Only by reflecting the value of each factor can we motivate members to bring more resources to the company, and the scarcer and more important resources give him higher weight;
4. Reflect the phased results: after the company reaches a milestone, the venture risk is reduced, the risks borne by partners in the early stage should be reflected, and the equity rewards are in place;
5. There is a repurchase mechanism: it can solve the vacancy of shareholders (people who hold shares but do not participate in the company's management), and investors do not want to see too many shareholders in the company;
6. Strong operability, not too complicated;
7. Contracts and notarization will not cause unnecessary expenses (such as notarization fees and taxes).
The first reason for the failure of starting a business is that people are wrong.
The most likely cause of entrepreneurial failure is people.
The first is the founder. Before deciding to invest, Xu Xiaoping must consider the founders' abilities in three aspects: learning ability, working ability and influence. Especially learning ability, if the founder does not have the ability of continuous learning and continuous improvement, it is hard to imagine that the enterprise he leads can grow rapidly. Didi taxi started from 800,000, and today it is10 billion dollars. Didi investor Wang | just feels that the most fundamental thing is that the founder has strong learning ability and rapid progress. Zhang Lei, the managing partner of Gaochun Capital, once commented on Cheng Wei: "I can see him every quarter, and he has made great progress. What can you do if you say no? You must vote. "
Followed by partners. Xu Xiaoping once concluded that there are many projects invested by real funds. Looking back, most failed enterprises have the characteristics of * * *, or enterprises that have worked very hard have the factors of * * *, that is, there is only one boss, no second child, no third child and no double-digit partner in the founder. This is a very painful lesson. A tree is not a forest. That's true. No matter how hard you try, you can't do it without help.
Again, he is a team member. Many startups have no problems with their founders, partners, markets and business models, but they still fail to develop rapidly, mostly because they hire mediocre people. The quality of your products and services depends on the people you hire? Developers, operators and sales staff, etc. If the company's core team is mediocre, then the products and services are doomed to be mediocre.
Second, the goal is wrong.
One of the most common mistakes made by ambitious entrepreneurs is to set unrealistic goals. One of the reasons for this mistake is not to do what you are good at, but to lock in the one with the greatest opportunity. Entrepreneurs should understand where their resources are distributed, who they need to find after the project starts, and what resources they need to use. Instead of hearsay, blind spots enter a blue ocean or even the red sea.
The second reason is the lack of focus. Smart people always want to try many new ideas, but a startup with limited resources can't try all new ideas. A good way is to locate the needs of consumers, provide a market service, lock in a user group, innovate an eye-catching function and solve a real consumer demand.
Third, the product is wrong.
In the face of fully competitive and extremely complex market and increasingly unpredictable consumer psychology, the products of start-ups will face great challenges as soon as they come out.
If there are too many bad products or the bad rate is too high, it will easily lead to unsalable products and hoarding, which will be unbearable for start-ups; If the life cycle of the product is too short, the product will encounter the risk of being eliminated soon after it comes out. Once an enterprise fails to respond in time or is unable to operate, it will quickly get into trouble; If your product or service can't meet the specific needs of consumers, no matter how amazing your technology or innovation is, it won't win the favor of investors.
Fourth, insufficient funds.
What do entrepreneurs lack most? Quite a few people will give the answer, money.
Indeed, if entrepreneurs underestimate the financial needs, the financial budget is missing, and the funds cannot be effectively used for business or production, it is bound to be difficult to create profits.
It takes money to start, but it takes more money to stay. In Ma Yun's words, the two main reasons for entrepreneurs' failure are that they didn't start and didn't persist. The premise of persistence is that there are enough funds. Many people did not consider the importance of liquidity at the beginning of their business, and rushed to start a business without enough liquidity. As we all know, many people need to persist for a period of time when their business is not very smooth after starting a business, and they have to give up early because they don't have enough liquidity. If the entrepreneur does not have enough liquidity to maintain business for more than half a year, it is best not to start a business easily.
Fifth, the execution is insufficient.
Good ideas are important for start-ups, but good execution is more important. Good ideas are easily copied by others. You can't stop your followers, you can only keep accelerating your own pace. Strong and sustainable execution is an important driving force for enterprises to move forward.
Good execution includes not only putting the established plan into practice, but also responding quickly when the market and consumer demand change. In fact, you don't have to care too much about your original plan. Many successful companies have completely changed their original intention of starting a business halfway and started new business plans. In most cases, the direction of adjustment is determined by the consumers you serve.