Venture capital enterprise?

In a narrow sense, how a start-up enterprise raises funds at all stages is the behavior and process of raising funds for an enterprise. Broadly speaking, financing is also called finance, that is, the financing of monetary funds and the behavior of the parties to raise or lend funds in the financial market in various ways. The following are the financing methods I have compiled for start-ups at all stages. Welcome to reading. What is the financing mode of entrepreneurial enterprises at all stages? 1 Entrepreneurial enterprises refer to innovative and entrepreneurial enterprises that are in the stage of entrepreneurship and have high growth and high risks. Entrepreneurial enterprises should pay attention to the combination of rewarding equity and purchasing equity, and establish an incentive system for entrepreneurial entrepreneurs. The main form of realizing the value of entrepreneurial entrepreneurs is the combination of rewarding equity and purchasing equity. According to the actual contributions of entrepreneurial entrepreneurs in the past, part of the net growth value of state-owned or collective assets will be converted into corresponding equity and rewarded to them. The incentive mechanism of core employees in entrepreneurial enterprises includes material incentive, spiritual incentive, policy incentive and work incentive. Start-ups generally have two common characteristics: first, they cannot raise funds in the loan market and the securities open market; Second, there are stages of development. There are obvious differences in enterprise scale, capital demand and investment risk in each stage, and different financing methods are needed. 1. seed financing mode: in the product research and development stage, government special funds, social donations and venture capital produce laboratory results, samples and patents, not products. At this stage, the investment success rate is the lowest (less than 10% on average), but the single capital demand is the least, and the profit is the highest after success. 2. Financing method in the initial stage of venture capital: The venture capital enterprise already has a product, a rough business plan and an incomplete management team in the initial stage. Compared with the seed stage, the technical risk is greatly reduced, but the investment success rate is still low (less than 20% on average). 3. Growth financing mode: the technical risk of venture capital is greatly reduced, the product or service enters the development stage, a limited number of customers try it out, and the cost is increasing, but there is still no sales revenue. At the end of this stage, the enterprise has completed the product finalization and started to implement its market development plan. 4. Financing mode in the expansion period: We have successfully grasped the production, sales and services of venture capital, private equity, preferred stock and other enterprises. Enterprises may want to set up their own sales team, expand the production line, enhance the research and development stamina, further explore the market, or expand the production capacity or service capacity. The success rate is close to 70%. 5. Profit-making financing mode: The sales revenue of listed companies that issue shares is higher than the expenditure, resulting in net income, and venture capitalists begin to consider withdrawing. On the one hand, the funds obtained from successful listing have increased the stamina for the development of enterprises, broadened the scope and scale of business, and on the other hand, created conditions for venture capitalists to quit. What are the financing methods for start-ups at all stages? 2 financing methods, that is, the financing channels of enterprises. It can be divided into two categories: debt financing and equity financing. The former includes bank loans, bond issuance, notes payable and accounts payable, while the latter mainly refers to stock financing. Debt financing constitutes a liability, and the enterprise must repay the agreed principal and interest on time. Creditors generally do not participate in the business decision-making of enterprises and have no decision-making power over the use of funds. Equity financing constitutes the enterprise's own funds, and investors have the right to participate in the business decision-making of the enterprise and receive the dividend of the enterprise, but they have no right to withdraw the funds. The financing methods of the company mainly include the following: (1) bank loans. Banks are the main financing channels for enterprises. According to the nature of funds, it is divided into three categories: working capital loans, fixed assets loans and special loans. Special loans usually have specific purposes, and their loan interest rates are generally favorable. Loans are divided into credit loans, secured loans and discounted bills. (2) Stock financing. The stock is permanent, has no expiration date, does not need to be returned, and has no pressure to repay the principal and interest, so the financing risk is small. The stock market can promote enterprises to change their management mechanism and truly become a legal entity and market competition subject with independent operation, self-financing, self-development and self-restraint. At the same time, the stock market provides a broad stage for asset reorganization, optimizes the organizational structure of enterprises and improves the integration ability of enterprises. (3) Bond financing. Corporate bonds, also known as corporate bonds, are securities issued by enterprises in accordance with legal procedures and agreed to repay the principal and interest within a certain period of time, indicating that there is a creditor-debtor relationship between the issuing enterprises and investors. Bondholders do not participate in the operation and management of the enterprise, but have the right to recover the agreed principal and interest on schedule. When an enterprise goes bankrupt and liquidates, creditors have priority over shareholders in claiming compensation for the remaining property of the enterprise. Corporate bonds, like stocks, are securities and can be freely transferred. (4) financial leasing. Through the combination of financing and finance, financial leasing has the dual functions of finance and trade, and plays a very obvious role in improving the financing efficiency and promoting the technological progress of enterprises. Financial leasing includes direct purchase leasing, after-sale leaseback and leveraged leasing. In addition, there are many forms of leasing, such as the combination of leasing and compensation trade, the combination of leasing and processing and assembly, and the combination of leasing and underwriting. The financial leasing business has opened up a new financing channel for the technological transformation of enterprises, and adopted a new form of combining financing with finance, which has improved the speed of introducing production equipment and technology, saved the use of funds and improved the utilization rate of funds. (5) Overseas financing. The overseas financing methods available to enterprises include loans from international commercial banks, loans from international financial institutions, and bond and stock financing business of enterprises in major overseas capital markets. Expansion: It is everyone's dream to start a business with common sales mistakes in the first year, but no one has ever told you what to do. Although there are many aspects to be managed when running a business, sales are the basis for the development of all these businesses. You know, not every entrepreneur has a sales background. Many times, they learn lessons and gain knowledge through hard exploration, but the lessons learned in this way are often very costly. A newly established company, you are bound to make wrong decisions, but I hope my experience can help you reduce these mistakes. The following summarizes some of the most common mistakes made by start-ups in the first year, some of which are obvious-but you may be surprised how experienced entrepreneurs make so many mistakes. 1. Looking for potential customers and customers As a startup, you should spend most of your time looking for potential customers. I will spend a lot of time looking for potential customers who show interest, which is very important, which is preferable to short selling your products. This is the essence of sales. As a startup, you work around the clock to get customers. When someone shows interest, you can pay attention to these potential customers. I will choose to call, email, or other ways to contact these potential customers and get closer to the goal. This method will soon be boring, so don't be too conspicuous and show too much desire to reach an agreement. You need to know when to leave. Most of the time, customers are choosing you. You should know the difference between what customers are really interested in and just looking at and understanding the quotation. On the other hand, if they approach you, you spend too much time and enthusiasm to please them. I call it the "clingy businesswoman or boyfriend" stage. Everything you do is to make them happy, far beyond what you should do. In this relationship, this kind of clingy is unattractive and will not be effective in business. If customers want extra services, you need to make sure that they sign a contract before continuing to provide services, and don't worry that they will refuse. Spending an hour or two studying the sales cycle and its operation mode will be of great help to your business development. 2. Sell yourself first, then sell the company. We always make this mistake. We usually introduce our company as soon as we meet, how great it is. But for customers, your company is no different from other companies. They will also meet and talk about the same topics as you, such as how good your company is. Unless you have a special product or service, people will buy it because they like it! When I walk into the offices of some companies, I will quickly browse whether there is anything that appeals to me in this company, and then talk to these customers about it. A client I once met put a small sculpture on the printer. So I began to chat with customers naturally and gradually entered a long communication. We seldom talked about my company and finally got the contract. 3. Don't take quality as the selling point (for service companies). If you are a service-oriented startup, you will feel that your service seems to be the best in the world. This may also be true, but customers rarely see it. Because every company is talking about its own service quality and taking it as the first selling point, then you are just one of them. Therefore, only by not spending too much time on the quality of products and services can you distinguish yourself from other companies. In other words, quality has now become a commodity. There must be other selling points! We realized that in this industry, customers like speed, so we began to take speed as the selling point of service. Of course, this does not mean that you can ignore the quality, but when other companies spend two months mailing, we will only spend one month, and the quality is neck and neck with each other. 4. Cost-benefit and profit Of course, it feels really good to bring in customers, especially in the first year of business. When we have customers, we seem to be charged. When we get these customers, it will take us several months to finally sign the contract, and we will realize that our profit is only 3%. Don't sell your products or services cheaply, which will make your efforts and time worthless. As a startup company, entrepreneurs feel that they want to offer a lower price than other companies, which is wrong, because not only will you not make a profit, but you will also make yourself depressed. Set a profit margin for your company. You should be familiar with every contract or order, your operation process, pressure, and other costs that cannot be ignored. According to this figure, set a minimum profit rate acceptable to your company. If it is below this baseline, you should walk away without hesitation. There is a famous saying in the entrepreneurial circle that "it is better to earn a dollar than not to earn it." Yes, but after this dollar, you may pay 20 dollars, which is one of many mistakes that will lead to blood loss in the bank account. Although every industry is different, you should learn how to quote correctly. 5. Customer Banquet For any startup company or any company, customers are of course the most important aspect. However, they chose your company. Unless they are your top three customers, don't spend too much time and money taking them out to eat and drink, even if they have brought profits. Even if you have an expense account, even if you are the CEO, you should understand that the money is indirectly drawn from your pocket and should be controlled. You should spend this time developing new business. This is also one of the sources that can easily lead to errors. I feel that if you take potential customers to eat or drink or spend money elsewhere, they will easily sign the bill. This is not right! Don't think that if you give them a hearty dinner, they will give you a contract for no reason. Because they will consider what is really good for their business, and you need to consider what is best for you. If you take them to spend money, don't be too extravagant unless they are very important executives. 6. Time Planning As a startup, your advantage is that you will always be a group of resourceful employees, and everyone has several jobs. However, while playing these roles, it will also affect sales. Unless you have a sales department to introduce new customers, you need to spend one day a week solving sales problems, such as making phone calls or following up with these potential customers. By dealing with sales problems one day, you need to ensure that you will have a stable source of potential customers to ensure a steady stream of customers. And if your company sells well, you may want to do it for many days. 7. Making a plan can be completed in one day, but what are you going to do on this day? This requires an action plan to ensure that the day's efforts can be maximized. It is more troublesome to follow this plan completely now. Of course, it is understandable to have things to deal with at hand, but staying on this rigid plan will be the hardest thing you will experience. You have to think outside the plan and think about how others do it. Everyone is doing the same thing, sending emails, making phone calls and so on. How do you distinguish your sales call from others? Use creative thinking! We spend an hour writing letters and sending emails. Sometimes it works, sometimes it doesn't, but when I follow up these letters, 80% potential customers say they have read them. Another thing we tried was to mail gifts. I remember a potential client telling me that he was crazy about baseball. I bought two tickets for the baseball game and sent them to him for 30 dollars. He was so surprised that he invited us to meet and finally signed the contract. These skills are not new, you need to think of a better way to develop your business. 8. Don't fall into the trap of "we will solve the problem when it happens", especially in sales. Letting customers choose your company is only an easy part of the sales process, but it is not easy to meet their needs. One mistake I saw in startups was that when customers were ready to sign the bill, they didn't have the corresponding internal business process. This startup I met lost this customer for this reason. After talking to customers, they are tired of thinking about what to do next. Until they got everything ready, the customer had left. Therefore, when the customer is ready to sign the contract, it is necessary to formulate the corresponding process in advance. What should we do next? Who is responsible for what? What if 10 customers sign contracts at the same time? What else will happen during this time? All these should be realized by making corresponding arrangements and plans, and everyone in your team should understand what their role is at this time. You can run a simulation to see if there is something wrong with your operating system, because your team should run like a well-run machine. 9. Business partner, you shouldn't sell directly to your customers every time. Sometimes it will help your enterprise to establish cooperative relations with non-competitive companies in your industry. For example, if you are in the IT industry and focus on software development, then establish a cooperative relationship with local IT hardware manufacturers. Treat them like friends and pay them a certain fee, because they will pass on your information to other customers. Treat business partnerships like marriage, be friendly, gentle, and whisper, and often invite them to dinner. Properly maintain such business cooperation, and they will send customers to you on the basis of reaching an agreement. 10. Matching the personality of customers Most start-ups are passionate about their products, but this passion sometimes becomes an obstacle. When we meet and discuss, my passion will be expressed in a very fast way, and my potential customers will respond to me in a monotonous voice when they hear the fog. I realized the mistake when he asked me to repeat what I said. So you need to consider the customer's "personality". If he or she speaks slowly, then you should keep the same rhythm with him or her. 1 1. Don't "pretend" and don't exaggerate. Everyone has his own understanding of "disguise". Most of us have done this before. I have met some entrepreneurs who need to exaggerate their own strength and the strength of the company. Don't do this! Don't be ashamed that you are still a startup, and don't be ashamed that you are still struggling. If you exaggerate, it will have the opposite effect. Please believe me, they will know your true strength. Be true to yourself, which will attract others to help you. 12. This goal should be within our power. When we thought there was no way out, we originally planned to bid for a large order of several million dollars. Our theory is that our problems will be solved when we get this contract. But as a result, we not only wasted a lot of time and energy on the bid that we finally realized was "hopeless", but it was a disaster when we finally got the contract. We can't deal with this problem, and our customers are very angry. In business, you know, your reputation means everything. You should know how strong you are. If you can't take over the contract, don't be greedy. Yes, it's very good to have such a big contract. At that time, if I exceeded my own strength, I chose to let go. Customers will appreciate your honesty more than you can. 13. There are two ways to continuously improve your literacy: one is to learn the knowledge of your industry. Not only to learn, but also to master. I made this mistake when I was CEO of a technology company. I think I only need to know basic common sense, and my job will run the whole company; I have an IT department composed of all technicians. But I was wrong! You need to know the trend, what is the latest technology, industry trends. As CEO, you are the first salesperson. Sales is an integral part of your job. Unless you know what you are talking about, you can't sell to customers. Second, dabble in some common sense in other fields. This may be a bit difficult, because you can't understand all the fields, but it's important. You will meet different types of people, whether they are potential customers, customers, business partners and so on. Different people have different interests, but if you can find ways to communicate with different people, then this importance will be shown. Once, my client and I talked about the theory of time and space. Actually, I don't know much about it either. But it's enough for in-depth discussion, and I think I must have left a deep impression on the other side. Because a week later, the other party signed a big bill with me. Conclusion Not everyone has a sales background, but if you don't learn to sell, you will never sign the bill. Without sales, your business will certainly not last long. ;