Why Is It So Hard To Start A Business?

First of all, people often lack experience in the early stage of entrepreneurship.

What is lack of experience?

Its most typical performance is that people choose the wrong industry before they start their business.

For example, if you were a senior engineer in a textile mill, your business went bankrupt, so you had to choose your career again.

In general, people are willing to choose industries that they are familiar with.

You may contract yourself or open another textile mill, are you sure that it is better than the factory that has been operating for decades?

I don't think so.

If you choose a company or industry that is being eliminated by habit, you will not be able to escape the fate of bankruptcy.

Why do we choose the wrong industry?

Because the biggest trap left for people in twentieth Century is to satisfy the status quo.

When you wake up one morning, you suddenly find yourself unemployed, you face a crisis of survival, and you have to think about your own business.

In such a state of panic and hunger, you are forced to choose to be a boss.

But you don't really have the vision, the way of thinking and the positive attitude of your boss. At this point, you will inevitably choose the wrong industry.

Another reason for bankruptcy is the lack of energy for operators.

If we want to do well in a company, we need at least seven links to operate effectively.

We call these seven links seven words: people, wealth, goods, enter, sell, store and produce.

What do these seven words refer to?

People here refer to human resources. In business, you should always handle internal and external interpersonal relationships.

If you deal with the elements of a bad person, everything else will be lost.

The money mentioned here is money.

Your company needs to start working capital funds, and companies that are not good at managing money are doomed to bankruptcy.

The things mentioned here refer to the equipment and facilities as well as the related logistics system.

For example, two hotels have the same decoration, one can be used for seven years, and the other has been worn out for three years.

Here is a matter of material management.

This is what we mean by purchasing. You need to have the ability to buy goods at low prices, and to ensure quality, so that we can reduce costs.

When you say "sell", you need to sell the goods in a profitable way, and the turnover will continue to rise steadily.

This is to say that your stock should be safe and reasonable.

Because the stock is too small, business is not big, inventory is large and the funds are tied up, it will eventually drag you down.

Finally, there is another production word. The product mentioned here refers to the brand of products and production companies: production means products with high technology and marketable products, so as to be competitive.