It is not easy for an entrepreneur to start a business for the first time, because starting a business requires at least three hurdles: the first is the capital hurdle, which requires at least the capital to start the business; the second is the relationship hurdle, which requires the ability to balance various social relationships. ; The third is the psychological barrier, which requires the ability to withstand the difficulties of starting a business. As far as the psychology of entrepreneurs is concerned, it should be said that it is extremely complicated. They may be afraid of losing money, they may want to make money desperately, they may want to become fat in one bite, they may also want to operate the company from a high starting point from the beginning, and they may want to create a good image for the company. Come on... Milu once said, "Attitude determines everything." This sentence seems more appropriate to apply to entrepreneurs. It is the various mentality of first-time business owners that has caused many business owners to fail in the process of running and managing their enterprises. Entering into misunderstandings greatly reduces the success rate of first-time entrepreneurs. According to relevant statistics, the success rate of first-time entrepreneurs in my country is less than 5, which is lower than that of Western developed countries. Of course, some problems may seem simple and rudimentary, but entrepreneurs often "do not know the true face of Mount Lu, just because they are in this mountain." Those involved are confused and cannot make decisive and scientific decisions, which in turn delays the development of the enterprise. Therefore, it is necessary to summarize, analyze and diagnose the misunderstandings that bosses make when starting a business for the first time, so that entrepreneurs can grasp the success factors and embark on the road to wealth as soon as possible.

Myth 1: Overemphasis on procedures and standards

1. Symptoms

There are many departments, too detailed division of labor, and too many people;

Rules and regulations It is too strict and harsh, and even violates laws and regulations; the business procedures are too complex and cumbersome, and there are many unnecessary intermediate business links.

2. Prescription tips

For an enterprise, basic work is essential, including organizational structure, rules and regulations, measurement standards, business processes, etc. If the rules and regulations are well established, they will undoubtedly strengthen corporate management. It needs to be emphasized that companies that are just in the entrepreneurial stage can adhere to the principle of "the best is the best" for basic work. Therefore, the suggestions are as follows: As for the organization, as long as there are no management loopholes such as leaks and leaks, it is okay to have people doing everything, but posts should be set up according to the situation and not according to the person, and attention should be paid to the relevance of the affairs that employees are responsible for; for regulations The system must ensure that it motivates and restrains employees. As for restraining employees, we must resolutely implement relevant laws and regulations and ensure that there are laws to abide by to protect the enthusiasm of employees. At the same time, we must abandon the idea of ??deterring employees with "fines" because corporate cohesion in the early stages of entrepreneurship is crucial, and it can even be said that It is a kind of productivity; business processes should be clear and simplified. Don’t think that too many reports and accounts are beneficial to enterprise management. Otherwise, even if employees are involved in complex procedures, it will easily make it difficult for enterprise leaders to grasp the production and operation situation. even affect decision-making.

Misunderstanding 2: Excessive pursuit of product perfection

1. Symptoms

In order to pursue the best product quality, the grade of raw and auxiliary materials must be improved to make the product The cost increases; the market capacity and potential are not considered, and the product target customers are positioned at the high end, out of touch with the market; low-end products are packaged in high-end products, and the "content" and "form" are not unified.

2. Prescription Tips

Perhaps for most tangible products, material cost is the core part of product cost. Quality also has a cost, and excessive quality costs are likely to have the opposite effect on developing the market. The best way is to set prices from a market perspective, then go back and study the costs, and then select raw materials corresponding to the costs; the product must be connected to the target customer group, and the consumer psychology, consumption ability and consumption of the target customer must be considered. Form, determine the most marketable product; the product and packaging must match, and the core product and additional products (formal products) must be highly unified. It is important to note that you cannot "sell dog meat by pretending to be a sheep's head", which only has a gorgeous appearance but no substantial content. In the end, it is difficult to impress consumers.

Myth 3: Obsessed with the pursuit of high profits

1. Symptoms

Measure the industry based on the profit standards of high-profit industries;

Pricing is out of touch with the market, prices are inflated, there is a price but no market;

It cannot flexibly adjust prices according to market changes and blindly seek huge profits.

2. Prescription Tips

When you have just started a business, it is most important to build confidence in yourself and your employees. Therefore, the first pot of gold is crucial for the boss himself or for the employees. Importantly, a good start is half the battle. It is recommended that bosses should not only look at the immediate profits. Image, brand and market share seem to be more important. Therefore, the suggestions are as follows: When each industry matures, it will have an average profit. Before this, each industry has its own profit point, such as real estate, which can reach 15-40, and retail, which can reach 10-25. Therefore, the profit margins of other industries should not be used as the basis for determining corporate target profit margins; the market will Punish those companies that do not respect the laws of market prices. There are no products that cannot be sold, only prices that cannot be sold. Competition will make the prices of companies tend to be more acceptable to the majority of consumers. Therefore, there is only a dead end if they do not adapt to the market. One piece.

Myth 4: Giving up halfway during the entrepreneurial process

1. Symptoms

In the difficult period of starting a business, the decision is made to dissolve the company;

Giving up on starting a business because other businesses require energy, causing the business to die midway.

2. Prescription Tips

In the process of starting a business, there is inevitably a climbing stage, and mentality, perseverance and perseverance are crucial. Enterprises, like products, have to go through a process of growth, maturity and decline. Therefore, if you persevere in times of difficulty, you may be on the other side of victory. It is recommended that entrepreneurial bosses distinguish their main business and side business, and do not operate multiple businesses at the same time for the first time. project, otherwise it will be difficult to concentrate on fighting the “war of annihilation”. Shi Yuzhu is an excellent planner in this regard, and the success of Melatonin's operation is inseparable from his use of the strategy of "concentrating superior forces".

Ten major misunderstandings for first-time entrepreneurs

Myth 5: Operating projects beyond your capabilities 1. Symptoms include operating a capital-intensive enterprise without a capital foundation; operating a capital-intensive enterprise without core technology Want to follow suit in the market and chase other companies; launch business projects that are restricted or prohibited by government laws and regulations.

2. Prescription Tips

When doing business, you cannot engage in the "Great Leap Forward" or "exaggeration style", let alone learn from Mou. "There is nothing impossible, only unimaginable." "That set. Within the scope of financing capacity, one has the ability to accomplish as many things as possible; it is very dangerous to blindly follow the trend in technology, because competitors may already have patents, trademarks and other intellectual property protections, and counterfeiting and following the trend may lead to lawsuits and even "compensation". "If you lose your wife, you will lose your troops"; starting a business must consider policy risks, and no company has the ability to change relevant national laws and regulations. Therefore, the state has defined the areas in which private enterprises can enter.

Misunderstanding 6: Pinning hopes on professional managers

1. Symptoms

The boss completely delegates power and pays too little attention to his own career; he only focuses on his career Manager qualifications and history, while ignoring the integration of professional managers and enterprises; ignoring the incentive and restriction mechanisms for professional managers, especially business performance assessment.

2. Prescription tips

Advocate the separation of corporate ownership and management rights, but the relationship between owners and operators should be straightened out, that is, a restraint and incentive mechanism should be established. In most cases, entrepreneurs start businesses in industries they are familiar with or business projects that have been standardized (such as franchising), while professional managers may not have enough understanding of the industry or project. The overall quality of professional managers is relatively high. In addition, professional managers may put too much emphasis on formalization, standardization, and institutionalization of the operation of the enterprise, and thus appear eager for success in the process of operating and managing the enterprise. You must know that this may not be suitable for growing companies, and may cause a two-way incompatibility between the company and professional managers. In other words, conflicts may arise in the business management process, which is not conducive to the development of the company. For the above symptoms, the suggestions are as follows: straighten out the relationship of responsibilities, rights and interests between the decision-making and executive levels, each perform their duties and operate scientifically; let professional managers integrate with the enterprise, the culture and the employees. This is cooperation. The premise is that if you use performance to speak, you can look less at the process and more at the results, as long as the operations of professional managers are legal and reasonable.

Myth seven: nepotism and exclusion of "outsiders"

1. Symptoms

Entrepreneurs assign important positions (such as finance) to their relatives; Relatives are given partial trust in their advice; close confidants are used as eyes and ears to supervise the work of other employees; relatives do whatever they want in the company and take advantage of their power; couples sing duets, and the inside and outside should be coordinated, regardless of priority.

2. Prescription tips

Many private companies have a specific stage in the entrepreneurial process, that is, the familyization stage. It should be admitted that in the early stages of establishment of many enterprises, it is difficult to attract some talents to join due to the constraints of the enterprise's economic strength, working environment, etc. Therefore, there are objective factors in the familyization of enterprises. Of course, there are also subjective factors, such as the business owner believing that family members are reliable and trustworthy, etc. You must know that the familyization of a business is a difficult problem for operation and management, especially when the company becomes bigger in the future, which will lead to the problem of placement of the "elders" of the business family. So how to deal with the above symptoms?

Be based on morality, use talents according to their abilities, and give equal competition and job opportunities to family employees and employees outside the family; we must know that "listening to both will make you aware, and believing only will make you secret". "Slander" cannot be used as the basis for evaluating employees. Character and performance are the evaluation indicators; management must be hierarchical, but it does not exclude mutual supervision among employees. However, it is not appropriate to regard relatives as "clairvoyants" and "early ears". Sometimes, Will wrongly blame good people; within a family business, family members cannot "not do good deeds if they are small, and do evil if they are small", otherwise the "rules" established by the company will be broken, and the company will easily fall apart; husband and wife It is normal for entrepreneurs to start a business together, but there must also be a division of responsibilities, otherwise it will be difficult to achieve results when making decisions. Husbands and wives should also let the capable come first and the mediocre come down, and do what they are good at.

Misunderstanding 8: Attacking the market from all sides

1. Symptoms

The company does not have a flagship product, the product line is too broad and too deep, and the products are fully launched; Fully enter the national market, such as by establishing branches or selecting dealers; advertisements are everywhere, and the whole country is playing chess.

2. Prescription tips

Any successful company should have its flagship product (or flagship product), which has good market growth and is the main source of corporate profits. If you compare product types with your competitors, the company will lose its focus and even market share when doing the market; choose key areas for test sales, such as Melatonin and Golden Partner, and then fully promote them after the test sales are successful, which can reduce the difficulty of entering the market. Risks and reduce capital and personnel risks, which also lays the foundation for adjusting later sales strategies; the effective media in various regions across the country are different, and factors such as consumption habits (including consumption psychology and consumption characteristics), purchasing power, and market environment are also different. Therefore, differentiated regional marketing strategies should be adopted instead of playing a game of chess across the country.

Myth 9: Entering an unfamiliar industry field

1. Symptoms

Starting a business is not to follow the market but to follow the lucrative industry; with friends or other Partners jointly develop market areas they are unfamiliar with; blindly launch multiple projects at the same time, including industries they are unfamiliar with.

2. Prescription Tips

If you don’t understand business, don’t do it. This is a rule. Although there are certain differences between industries, each industry has its own depth, and this depth constitutes the (key) threshold for companies to enter this industry. Failure to understand will lead to blindness and impetuosity, making management superficial and generalized. In response to the above symptoms, the following is a reminder: Each industry's huge profits have its stages, because a standardized market environment will break the monopoly and be full of competition, and competition will promote the formation of the final average profits of each industry. Therefore, you should follow the market, not profits, not to mention that entrepreneurs are not familiar with every lucrative industry; even if you cooperate with friends, don’t be blind, because once your own economic interests are involved, interest distribution will occur In this case, "understanding" means "suffering a loss"; concentrating on doing one thing well is the rule of success. Starting from an industry you are familiar with will be more conducive to the primitive accumulation of capital and the development of the enterprise.

Myth 10: Waiting for opportunities instead of creating them

1. Symptoms

Companies take too long to prepare in the early stage, and they always feel that the time is not ripe and they are not ready. Dare to take on business; habitual to wait and see before the market, slow decision-making; lack of initiative in developing the market, often passively adapt to market changes; emphasis on production but not on marketing and product research and development, the focus of corporate management is unbalanced.

2. Prescription Tips

There was a saying in the past: "If there are conditions, we must do it; if there are no conditions, we must create conditions." Entrepreneurs should fully "chew" this sentence . Many companies improve while starting up, and develop while improving, and finally the corporate image and brand effect are formed. In response to the above symptoms, the suggestions are as follows: Opportunities wait for no one, you can explore as you go, don’t be afraid of making mistakes, but be afraid of not moving forward; the market situation is changing rapidly, requiring entrepreneurs to make decisive decisions and respond in a timely manner; the market is being developed, and the market is there. Capacity, but relative capacity. Whichever company takes the initiative will have more opportunities to gain more market share; today's companies should not be "spindle-shaped" (light on R&D and marketing, but heavy on production). Instead, we should be "dumbbell-shaped" (emphasis on R&D and marketing) and seize the market and technological progress. These are the two keys to a company's success.

Entrepreneurship requires passion, but passion does not mean acting on impulse, nor does it mean acting based on feelings, nor does it mean getting lost in overconfidence. We advocate rational entrepreneurship, respecting laws and respecting the market. This is the most fundamental starting point.