Money Making Business Is &Nbsp; Ho Wei Spends 400 Thousand Years Buying Lessons In 2 Years.

The so-called enterprise characteristics are built on the basis of the needs of the industry, divorced from the reality of Romanticism in the business field can not work.

There is no plan to be thorough, not clear where the profit point is, nor doing adequate market analysis, nor building the necessary marketing team. The initial stage is too extravagant, regardless of cost. This is the 24 year old He Wei's experience in two years of entrepreneurship.

After two years of entrepreneurship, He Wei, who is 24 years old, is also leading the company to struggle with adequate food and clothing. He said that although it is too early to talk about development, it has gained a lot.

Incorrect positioning

The first child died.

At the end of last year, he had to give up his two-year break. After burning 400 thousand yuan, he did not earn a cent.

He graduated from the computer department of Huazhong University of Science and Technology in Wuchang. In May 2005, it was the second semester of junior high school. The curriculum was not very tight. He Wei invited two friends to set up the Wuhan extreme Network Technology Co., Ltd. The company has two businesses, one is to build websites for other companies, the other is to create a two-stop network, which provides ideas for young people to eat, drink and play. The company invested about 100000 yuan, "I made thirty thousand or forty thousand, the money was given to the family."

He Wei's idea is very simple. He collaborate with a fashion magazine to create a column in magazines, and jointly launch the advertisement "buy one get one free", that is, buying paper advertisement, sending online advertisement, hoping to make influence quickly. What he did not expect is that the actual operation is very difficult, "our main direction is the characteristic shop, but these shops have neither the demand for advertising nor the ability."

On the last Sunday night of 2007, He Wei pulled out the last power supply of his two-day server. For He Wei, the two-day break net is his first "child", which is invaluable. However, he also knew that if he persisted, he would invest more. "It's better to break his finger than to hurt his ten fingers," he said. He Wei said he was "unfulfilled before he died."

"It seems right now to set up such a website, but there is no plan to be thorough enough to understand where the profit point is, nor to make adequate market analysis, nor to build the necessary marketing team." He Wei said.

Difficulties followed.

Money making business has become "chicken ribs"

The house is leaking for rainy days. All along, despite the fact that there is no advertising revenue in the two-day break, He Wei's other business is to build websites for others, or to maintain company expenses. Today, the main business has slowly become "chicken ribs".

Website construction, He Wei put forward a new concept - network marketing, spend hundreds of dollars to sell products and information to every corner of the world that exists in the Internet. For large websites, if we are good at network marketing, we can spend a very low cost to increase the flow of websites, so as to enhance their ranking in search engines.

With the concept, they are trying to find customers. In early 2007, He Wei's network construction business ushered in a glorious period, and the volume of business began to soar.

However, two years ago, an enterprise website was set up at 4000 yuan, and now the market price is only 500 yuan. When his network construction business exceeded 100, the company's revenue began to decline month by month. He Wei said that for every website to build, an employee would be required to maintain a website. Hundreds of dollars of income could not pay employees' wages. "All manpower, material resources and time are spent on network infrastructure. R & D work has no progress, no core competitiveness, and the company's living space is getting narrower and narrower."

Analysis of failure experience

He Wei is going to fight the battle.

Two years of ups and downs, so that young He Wei learned a lot. "Although I didn't make any money, I gained too much in those two years".

What he refers to mainly refers to the fact that he has already diagnosed the company, especially his own existence.

He recalled that when the rapid growth of network construction customers, the rental server space can no longer meet the needs of the company, its first thought is to buy the server, and buy 3 units at one go. According to his perfect conception, 3 servers perform their duties: one is used for network construction customers, one is used for renting personal space, and one is for sending mail, so it does not affect each other. There is always a gap between ideal and reality. In actual operation, the annual cost of the 3 servers is 30 thousand yuan, which should bear 300 companies' capacity but only 100 customers.

He Wei realized that he was too extravagant and irrelevant in the initial stage of his business. In September last year, the company moved from the 60 square meter commercial and residential building in Zhongnan road to Hankou Hui Ji Road. The office area increased to 130 square meters, the monthly rent rose from 1200 yuan to 2000 yuan, and the number of employees increased from 10 to 22.
He Wei sharply analyzed himself: "the so-called enterprise characteristics are built on the basis of the needs of the industry, divorced from the reality of Romanticism in the business field can not work".

He has started brewing a new project with his friends. The market survey has been done for more than 3 months, and He Wei hopes to fight a battle.