How To Avoid Venture Risk

In order to avoid venture risk, we must first know where the risk comes from.

Entrepreneurial risk comes from three contradictions. One is the contradiction between exercise and actual combat; the two is the contradiction between ability and practice; the three is the contradiction between functional creation and functional decision.

In order to avoid venture risk, we must first know where the risks come from.

The risk comes from three contradictions, one is the contradiction between exercise and actual combat.

What is done in the early stage of an undertaking has the nature of exploration. This creates a contradiction: originally the object of exploration is regarded as a definite object, originally belonging to the content of the experiment, but regarded as the real content.

Two is the contradiction between ability and practice.

The only way to acquire entrepreneurial capability is practice, and investors usually practice without practical experience, which creates the contradiction between the ability of venture capital investment and practice.

The three is the contradiction between functional creation and functional decision.

Entrepreneurs are the creators of functions, and the validity of functions depends on the monetary votes of functional users.

The contradiction arises, and the maker of the function is not the decision maker of the function. This contradiction is the manifestation of the unknown market.

Three steps to resolve contradictions: how to deal with these three contradictions to resolve risks?

The way is to simulate a simulation program at the start of business.

The procedure consists of three parts.

First, anatomy.

Once the project is confirmed, it is dangerous to proceed immediately.

Because the inspection of the project is not enough.

The possession of information can not be equal to the understanding of information.

Anatomy is the way to understand the elements of a project.

The key to anatomy is to peel the skin and catch the key.

What is leather?

Take an example: one of my classmates talked to me about a "electric wrench" project for the car to change the tire. Its advanced nature lies in saving time and effort.

He introduced how the company owns the project, how many titles it has, how many titles the inventor has, and how to produce a stack of documents, such as patent certificates, technical appraisement, etc., as well as the analysis of the cost and sales price and the broad market prospect.

I believe that these are true, but what does this pile of "true" mean?

The key is what drivers should use to change the tire and save 10 minutes. Does the driver care?

Is the driver willing to use electricity in the car battery?

The driver is willing to spend 200 yuan more than the foot spanner.

This is the key to the project.

What titles, certificates and profits are all "skins".

Two, verify.

The items after anatomic examination are tested one by one to prove whether they are feasible or not.

If we can complete the examination of the main contents before the scale investment, it will directly affect the success or failure of investment.

For manufacturing products, there are two important points: one is technology, the other is the market, the two.

The objects of technology are: advanced level, core, related technology, related technology, equipment, special tools, environmental protection requirements, specific standards, packaging and storage, and technology import.

The point is that once technology is involved, we must make sure that we are able to understand it.

The market must go ahead of the test, and even the test of the market should precede technology.

The purpose of market testing is very simple, that is, you can't get through this thing. Of course, you should also test the market target, market access, price positioning, market capacity, sales way, sales management, etc.

In these two questions, if any one can not be thoroughly understood and grasped in the stage of decomposition and verification, any investment is a dead end.

Three, comprehensive.

The premise is to understand and grasp the project.

To what extent?

How to grasp the project unit?

The standard is "feasible", and each verified object can be integrated only after it has been put into practice.

What is feasible?

The best way to get a product is to get the product that fits the target; to get the economy to work, it is to push the price from the market to the comprehensive cost to see if there is any room for profit growth; the standard is up to the top, and it must be determined by the acceptance of the end user.