01. Have a full understanding of yourself

The first is your own mentality. People who want to get rich quickly through entrepreneurship are not suitable for entrepreneurship.

Entrepreneurship is a long-term process. People who are eager for success and start a business for the purpose of making money will find it difficult to persevere in the most difficult period of the early stages of entrepreneurship. This has basically become a common law of entrepreneurial failure.

Secondly, evaluate how much risk you can take. Entrepreneurship is always associated with risks, and the success or failure of an enterprise is always influenced by opportunities other than human resources. People who feel that they can only win and cannot lose cannot start a business.

Finally, your strengths and weaknesses. Jack Ma said, if you think you can do anything and know everything, then problems will definitely arise. It’s true that no one person can be the jack of all trades when it comes to starting a company. Jobs also has his technical partners. If you have technology, you need a partner who knows marketing and has resources, and vice versa.

02. Find like-minded people to start a business together

Many small companies often make this mistake and start a business before they have found the right people.

If one person starts a business alone, the failure rate is as high as 99; It's difficult to reconcile, just divide it into two.

Three or more people start a business, but a reasonable equity mechanism must be designed, including an advance and retreat system, a dividend agreement, allowing employees to take shares, attracting customers to take shares, and allowing investors to take shares.

03. Appropriate start-up capital

As for funds, the reason why I say appropriate start-up capital is because it requires entrepreneurs to use funds they can afford and the gold content of their projects. , balanced with the venture capital that can be found.

As a company develops, the amount of venture capital received in the later period is also difficult to estimate.

What pitfalls do you need to avoid?

The road to entrepreneurship is full of thorns. If you are not careful, you may miss the mark and plunge you into an abyss at any time. Several common pitfalls when starting a business include:

Pit 1: Registered capital pit

The new company law in 2014 changed the registered capital paid-up registration system to a subscription registration system, and relaxed the Registered capital registration conditions.

The shareholders of a company can independently agree on the amount of capital subscription, method of capital contribution, period of capital contribution, etc., and these shall be recorded in the company's articles of association.

The subscription registration system does not need to occupy corporate funds, and can effectively improve capital operation efficiency and reduce corporate costs.

At this time, many people may think that the registered capital should be written more. It does not need to be paid anyway. It can easily be 50 million or 100 million. It can also show that the company is strong and has dignity. Please note that subscribing does not mean not paying! The money must be seen when the company is liquidated.

Pit 2: One-person company pit

Common company types mainly include limited liability companies, sole proprietorships, partnerships, and joint stock companies.

Limited liability company is the most common and largest form of enterprise organization in real economic activities, with limited liability limited to the amount of capital subscribed. General partnerships and sole proprietorships have unlimited joint and several liability for company debts.

If a sole proprietorship company wants to become a multi-shareholder company in the future, it will need to be restructured. Reorganization means changing from a sole proprietorship company to a limited liability company, which is equivalent to directly canceling the company, and it also needs to be explained in a newspaper.

Be careful when registering a one-person limited company unless absolutely necessary.

Although it is a limited company, it may be jointly and severally liable for company debts. Even after the company is transferred, if the original shareholders cannot provide evidence to prove that the company's property was independent of their personal property before the transfer, the creditors have the right to The original shareholders are required to bear joint liability for repayment.

Pitfall 3: Trademark pit

Entrepreneurs have worked hard to start a business and made their products and brands famous. Suddenly one day, they received a letter from a lawyer: Your product is suspected of brand infringement. , this must be a nightmare for entrepreneurs.

You must have heard of Soufun.com, which has laid a very solid brand foundation in the past ten years of operation.

The trademark of SouFun was registered by another real estate company. After seven years of SouFun operation, the right to use the trademark was awarded to this real estate company, and SouFun finally changed its name to Fangtianxia. Have you heard of Fang Tianxia?

For self-media people, it must be a nightmare if the name of an official account is registered as a trademark and has to be changed. Forgetting to register a trademark is one of the pitfalls that many entrepreneurs tend to overlook but can have serious consequences.

Pit 4: Equity structure pit

The partners in early projects are basically relatives, classmates, and friends. Generally, they want to start with more or less shares. It doesn’t matter. Let's talk about it in practice, but it can often lead to bitterness but not joy.

There are many cases of family separation due to unreasonable shareholding structures. From the Six Gentlemen of Wantong to the Chinese partners, to the separation of Master Xi, etc., each case tells us what The ownership structure is a pitfall. The pitfalls that are prone to occur in the equity structure are as follows:

1. The founder’s equity structure. The equity structures that are most likely to cause problems are 50-50 and 334. This structure should lead to disagreements. It’s embarrassing when no one can make the decision.

2. The lack of options for the early backbone leads to brain drain. Nowadays, the competition among Internet companies has become a competition for talents, and the company's employee management system has gradually transformed into a partnership system. Without common interests or uneven distribution of common interests, it is easy for key employees to leave.

Every step in starting a company is very important, and every aspect is very cumbersome and involves a lot of content. If there is a lack of effective guidance, managers who start a company in the early stages will feel overwhelmed, leading to many detours and a lot of energy, time and money.