How to break through the five bottlenecks in entrepreneurship

How to break through the five bottlenecks in entrepreneurship

The reason why entrepreneurs decide to start their own business is that they have the advantage of hardware or software, and the hardware is commonly used in equipment and capital, and the software is commonly used in technology and channels. Of course, the entrepreneurs who take into account these two items will still encounter trouble, what are these troubles? In addition to the headache of the capital chain, there are the following factors:

Policy

Some entrepreneurs when entering an industry, nothing more than optimistic about the industry's certain incentives and preferential policies. But the enclosure to build a good plant soon, these policies suddenly adjusted, some of the original preferential conditions no longer exist, the factory's competitiveness or profitability greatly reduced. So how to avoid this situation?

In order to start a business before carefully consulting the local government or investment promotion office, whether the policy is guaranteed, and how to ensure that these favorable conditions can be enjoyed. This can be done by signing a contract with the above mentioned organization to legally protect your legal rights. Of course, this is limited to some of the local government investment conditions, if some of the country's policies have been significantly adjusted what to do? This requires entrepreneurs or investors to enter the relevant policies before there is a certain amount of research and prediction, to avoid false or short-lived good news, do not blindly invest, consult lawyers, authorities and relevant departments is a good way.

Market

A company whose products are mainly exported to Japan may go bankrupt if it encounters, for example, sanctions for suspected dumping for too long. Entrepreneurs should make some predictions before starting a business based on their own industry and main market, how to face the situation when an export enterprise encounters human irresistible situation? Doing domestic trade in the encounter market changes in how to face? These are related to the survival of the enterprise, not to be underestimated.

Entrepreneurs understand the market risk and vigilance directly related to the smooth or not, a good market forecast, there are multiple sales channels, do not rely on the local market, it is undoubtedly more risky than those who are not prepared for the business is much smaller. Entrepreneurs in the grasp of some kind of resources, with the help of resources to develop the scale of the enterprise, but can not rely on resources for a long time, only in the utilization of resources to form a virtuous cycle, entrepreneurship will be successful. "Do not put eggs in a basket" is what every entrepreneur must pay attention to.

Channels

Here mainly refers to changes in supply channels relative to the market, the factory opened with a good order, a lot of advances in place in a timely manner, but the production can not operate normally, why? There is a shortage in the supply of raw materials.

Because of the lack of attention to investment in procurement, large-scale production suffered an embarrassing shortage of raw materials, which requires entrepreneurs to make good supply chain preparations before starting a business. And often, according to the future market performance of the enterprise, to prepare for different levels of suppliers, sporadic procurement and large-scale procurement of suppliers to be differentiated, the supplier's qualifications and security capabilities to have a prior assessment. Only in this way, when receiving a large number of orders entrepreneurs will not sweat in the cold OFFICE.

Personnel

The unpredictability of personnel changes often catches entrepreneurs off guard, and the breakdown of teams that make much of the work impossible or interruptions in execution can be fatal to entrepreneurs on the road, as personnel changes are no longer as simple as jumping ship.

Human resources or collaborators who have access to some of the startup's resources often start a new business and blatantly do things that are detrimental to the startup's interests, which can be circumvented by considering the following aspects of circumspection.

First of all, there should be a cooperation or employment contract in writing to stipulate the responsibilities, rights, and benefits of both parties, which involves jumping ship after the specified number of years may not be engaged in the same industry, or confidentiality obligations on certain secrets, etc., set up liquidated damages provisions. Secondly, do not be too harsh in the management, management system should be sound, but in the country, in many cases, "the water is clear, there is no fish", the harshness of the system is usually the main factor causing conflicts between the two sides of the employment. The system must be humanized and fair.

For important personnel positions, there should be a certain `personnel reserves, this point even in the first human resources recruitment should be completed, when not hired, but also very suitable for the candidate to keep in touch, so that in the shortest possible time in the personnel changes so that the work can be continued.

Funding

Of course, we have to talk about funding. Funding bottlenecks are the most common problem for entrepreneurs, and very few entrepreneurs can say "funding is not a problem," which is why society adores people who start from scratch. Most of the borrowers have good social relations, can be through the private financing and bank loans, wenzhou wang junyao is a typical private financing, with the credibility of wang junyao, carrying a broken sack to find folks paid to borrow millions of dollars. Borrowing no door in the case can be through the transfer of shares to finance, the project can be operated under the circumstances, this is not a good policy. Today's seeking venture capital is actually a practice of ceding equity, which is beginning to be gradually recognized by the community.

Entrepreneurs do not have a good financial plan is also a common cause of capital bottlenecks, liquidity is misappropriated, the factory's reserves and supply resulting from the crisis, these are the shortcomings of the financial plan caused. To solve this situation requires entrepreneurs to pay attention to the control of capital flow, to achieve a reasonable flow of funds, not to produce short-term borrowing behavior and lead to changes in unit costs.

There is also the case that entrepreneurs are not good at using partnerships to solve funding bottlenecks, and long-term contracts with collaborators to maintain a certain period of time can often make the limited funds were many times the turnover, to maximize the productivity of the funds.

The road to entrepreneurship is long. But as long as the formation of entrepreneurial bottlenecks in the constraints of a certain prediction, to be realistic solutions, entrepreneurship will still be successful.