16 Tips For Investment Failure

As we all know, investment is the foundation for the establishment and development of enterprises.

Under the impact of the tide of commodity economy, many people unprepared to go to sea to "test the water". The result was difficult and even eliminated because of investment mistakes.

Therefore, for small and medium-sized entrepreneurs who start from scratch, how to invest properly and avoid misunderstandings of investment has become the key to success or failure and become a required course for enterprises to succeed.

In view of the investment thinking, methods and technology, this paper gives advice to 35 small and medium-sized venture investors, which are easy to lead the venture investor to go to "Mai Cheng". It points out the root cause of their mistakes and the way out of the dilemma, aiming at passing on investment wisdom with specific cases, so that venture investors can acquire truly guiding knowledge and skills when they are ready to fight.

In recent years, with the improvement of people's living standard, special dishes have become a hot commodity.

An investor sees this scene and resolutely puts aside other investment projects that have been in the process of investigation, concentrating on the characteristic farming.

The investor, who claimed to believe that "risks and opportunities co-exist", put all his money into the special breeding project he chose, and firmly believed that under his painstaking efforts, he would be able to get substantial returns from this project.

But a sudden outbreak of SARS in spring has shattered its dream.

Although a single investment, because of the concentration of resources and capital, often brings good benefits to enterprises in the case of the right choice of projects, but the risk of single investment is obvious. Once the risk of enlargement happens, it may destroy the wealth accumulated by investors for many years.

In fact, the investment is too simple. It's like putting all the eggs in the same basket. Once the basket is overturned, the eggs will all fall apart.

The combined investment of multiple projects can greatly reduce the risk of investment brought by a single investment.

As an inexperienced venture investor, when making investment decisions, we must expand investment ideas as far as possible, cultivate diversified thinking modes of investment, maintain diversified investment projects, and pay attention to achieving a balance between projects and funds.

Wang Ping is confident that he is prepared to invest in the induction cooker project. He believes that this project will bring him a lot of money, and he will be more confident that he can easily get large sums of money from the bank through his relationship.

He looked down upon his colleagues' contempt and act. He thought he could never do anything like them.

This mentality made him forget his ability to resist risks.

He only wanted to expand the scale of investment, and spread the "booth" more and more. He even put forward the slogan "big is good" and even connected two production lines.

Wang Ping has no fear and is not afraid at all.

In his view, when the enterprise is pferred, any debt can be paid off.

But when his business is running, others will earn enough money to start pressing the price down.

Wang Ping's products could not be sold, but they fell into a crisis.

At the very beginning, they liked to spread their stalls very much, almost the similarities of some venture investors. They did not know that all kinds of crises were dormant.

At the same time, when the economy is growing rapidly, people are prone to overconfidence, overestimate the future and despise risks, thus forming an investment bubble. Once the wind is blowing, the bubble will burst instantly, and investors will be in danger and predicament.

Investors should consider the investment orientation of enterprises from the perspective of risk and income balance, choose the right investment projects, and control the scale of investment in a moderate range.

In specific investments, funds should be invested in batches and stages. As far as possible, one-off investment should be avoided. There should be residual strength in case of environmental change and risk. No more money can be invested in the hands, so that all losses will be lost.

The Beijing white collar is unemployed because its foreign-funded enterprises are ready to withdraw from China. They want to find a suitable project and invest in their own boss.

After hearing the news, a friend came running to him to preach the bright future of the project. He said if he believed in himself, "if you invest 200 thousand yuan, everything else will be done by me."

At that time, the two of us are divided into fifty fifty.

This friend has enumerated his own market research data and analyzed the market prospect. The conclusion is: the prospect of XX project is bright.

The white collar was bewitched by his friends. He not only invested 200 thousand yuan in his investment but also did not personally or delegate any investigation into the market prospect of the project and the ability of his friend before giving the money to the friend.

As a result, when his friend got the money, he soon broke down the project, and the 200 thousand yuan investment of the white-collar worker also went on the drain.

Generally speaking, entrepreneurs tend to overly trust others' opinions, especially close friends. They believe that friends' words represent the truth of the market and that they do not need to investigate the market again, resulting in investment failure.

When making investment decisions, do not readily trust anyone's opinions and suggestions, even if this person is a famous expert, your brother, your father and mother.

Chairman Mao said: if you want to know the taste of pears, you must try it yourself.

This is the eternal truth, and investors should bear in mind.

In the rush to gain rewards, Wenzhou's small business owners of private enterprises see that others are getting mad because they are making money for some plastic products. They can not help but rush to raise money and decide to invest in the project as soon as possible.

Just then, a technician of his staff advised him: "boss, if you delay the starting time for 4 months, we can install and debug a state-of-the-art equipment to produce this product, which is much better than the products produced by the existing equipment, and I believe it will also sell much better."

Unexpectedly, the boss was very unhappy and said, "postpone the construction for 4 months?

Do you know what it means to postpone the start of 4 months?

That means we will lose millions of dollars in profits. "

And order to start immediately.

But the technician did not expect the factory to start work for several months, and the product was left unsalable because of its outdated technology and low technology content.

The boss had to reinvest huge sums of money to rebuild the factory that did not start very long.

Entrepreneurs in the initial investment, easy to be driven by immediate interests, and ignore long-term interests, take short-term actions that are quick to get instant benefits. Though this can make enterprises gain profits for a while, they lose their long-term development potential.

Investment is a systematic project. Entrepreneurs should overcome the idea of quick success and instant benefit, and must not kill the goose that lays the golden eggs and dry up the fish.

The company is unwilling to seek investment partners. A well-known domestic manufacturer of disinfectant is facing the contradiction between market demand and insufficient production capacity before going to spring.

Faced with this situation, it was suggested to find "foreign aid" to make up for the shortage of funds and to defuse investment risks in the form of "joint venture".

However, the boss of the enterprise is worried that he can not control his partners. He also believes that those who seek partners and talk about cooperation should develop slowly instead of themselves, thus putting the proposal on the shelf.

The "SARS" epidemic and the rapidly expanding market of disinfectant, which suddenly appeared in spring, finally made the conservative boss suffer, not only did he not earn the money that he should have earned, but also was overtaken by other similar enterprises by "SARS" opportunity, and became a second rate enterprise in the industry.

Investors should not only talk about independence but also cooperation.

Proper cooperation (including joint venture) can make up for the defects of both sides, and enable small and medium-sized enterprises to gain a firm foothold in the market.

If entrepreneurs do not care about the actual situation, they will be able to delay the development of enterprises.

After all, sharing profits is better than no profit.

In the spring and Autumn period, the seven Warring States of the Warring States period still said that they should have a certain mind.

In the past two years, a famous paper mill in North Jiangsu has given up cooperation opportunities with many large enterprises and powerful investment institutions, and decided to cooperate with a small enterprise to jointly invest in a new project.

When the implementation of the cooperation project approached the end, the unexpected accident occurred suddenly. The acceptance of the pollutant discharge project of the project was not qualified, and a fund needed to be rebuilt.

The paper mill has offered partners a share of the renovation fund for the sewage disposal project, but the other side has apologized to them, saying that it is already hard for them to do this project, and that more money is needed.

The paper mill had to turn to the bank for a loan, but the loan was still far from the project.

The paper plant sought other partners to solve the funding problems.

The newly found partner hoped that the original partner of the plant would withdraw from the project, while the latter refused to quit.

The three party was deadlocked. Finally, the paper mill reluctantly gave up the project.

Everyone wants to have the final say, everyone wants to be "master", but the master is not everyone can do it, not everyone can do well. Taking the lead in the family means more pay and greater responsibility.

Entrepreneurs are always seeking the right to speak while seeking partners. But weak partners may not give you timely and powerful help when you need them. Instead, you may make some stronger potential partners stop and abandon you, leaving you no more opportunities.

The electronic instrument factory of a township in Jiangsu is a newly established enterprise. In order to speed up the development of the enterprise, the factory is going to develop a new project of environmental monitoring instrument.

However, because of its lack of strength, it decided to find a partner to develop this project together.

After struggling for a long time, we finally found a company willing to invest 1 million yuan.

The joint-venture electronic instrument factory is eager to get a joint venture, and has only given a superficial understanding of the enterprise, and hastily signed the cooperation contract.

After six months of signing the contract, the electronic instrument factory found partners lack sincerity in the contract.

In order to speed up the development of the project, the factory is always on time, and the 1 million yuan investment promised by partners has been dragging on, which has finally affected the speed of project development and lost the best opportunity to seize the market.

Entrepreneurs who are eager to develop their businesses and neglect their reputation and strength are likely to leave hidden dangers for entrepreneurs.

When it comes to capital investment, we must emphasize the ratio of funds in place and funds in place.

Before starting a joint venture, entrepreneurs must conduct a comprehensive investigation and study of their partners. They should have a detailed understanding of their partners' conduct, business ability and capital strength, so as to reduce investment risks.

In the absence of a consensus with partners, the Technical Developing Company has invented a new product, which is specially designed for the detection of pesticide residues in vegetables and fruits, which is unable to put into production because of its serious lack of development funds.

An investor appreciates their research results and decides to cooperate with them to invest 500 thousand yuan to help their products put into operation.

After the production of new products, the problems arise. Investors have different views on the way the producers run the market.

Investors who regard themselves as "saviours" insist on forcing the other party to make corrections without knowing the market situation. The other party feels that there is nothing wrong with him and insists on refusing to listen.

The tug of war affects the production and market operation of the company, and more importantly, it affects the morale of the company and makes people lose heart.

The company soon fell into the danger of bankruptcy, and the 500 thousand yuan of investors was also destroyed.

As an investor, what we need is patience and carefulness.

He can not regard himself as an investor, so he will use himself as a Savior and a knowledgeable person. This will easily arouse the resentment of the collaborators, intensify conflicts and lead to both sides.

A rational investor should learn to respect the opinions of the partners and make every effort to make up for the deficiencies of the other side in management and market, so as to be moderate and moderate, and fully communicate with each other when problems arise. If necessary, we must seek common ground while reserving differences, and restrain ourselves from others, so as to maximize the interests of both sides.

The choice is far ahead of its investment partner.

They favored a very market investment project, but because they had just graduated and their economic foundation was weak, they had to seek investment partners to share interests and risks.