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&Nbsp: The Basic Law Of Entrepreneurship

2010/5/20 11:00:00 18

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Change and seek the way to be strong -- on the basic principles of entrepreneurial management

Entrepreneurship is a very difficult management process. According to statistics, there are 15 new private enterprises in the country every year, but at the same time, there are more than 100 thousand deaths each year. 60% of the private enterprises are bankrupt in 5 years, 85% of them will die in 10 years. Whether they are entrepreneurs or entrepreneurs who start from scratch, they must face the reality of "one side is seawater, the other is a flame".

Entrepreneurship is a very difficult management process. According to statistics, there are 15 new private enterprises in the country every year, but at the same time there are more than 100 thousand deaths each year. 60% of the private enterprises are bankrupt in 5 years, 85% of them will die in 10 years. Whether they are entrepreneurs or entrepreneurs who start from scratch, they must face the reality of "one side is seawater, the other is a flame". Many start-up companies have a passion for entrepreneurship in the actual operation, but can not grasp the essence of entrepreneurship management, so that it is unclear why others can make money, but they can not, why other companies can continue and they can not, why other companies can always break through in the same predicament but they can not. We say that the success of others is not your success; yesterday's success is not equal to today's success. The key to entrepreneurship management lies in whether we should constantly seek to be a strong way to change the contingency of management and grasp the inevitability of management.

The success of flies and the trap of bees

Carle wek, a professor at Michigan University, did a wonderful experiment: put six bees and the same fly into a glass bottle, then put the bottle flat, and let the bottom of the bottle face the window. What would happen? The result is that bees are killed by exhaustion or starving, while flies run through bottlenecks in less than two minutes. The clever bees believe that the exit of the cell must be in the brightest part of the light; they keep repeating this logical action. The stupid flies totally ignored the attraction of the light, flew four times, and escaped the empty bottle.

Vicker concluded: "this shows that experimentation, perseverance, trial and error, adventure, improvisation, the best way, circuitous progress, confusion, stereotyped and random response all contribute to coping with change."

The only way to change business is to change.

The experimental practice of flies and bees shows the different strategic modes of entrepreneurial management, and those environments that dare to break the rigid form and maintain a relaxed, open, active and innovative environment are the essence of all outstanding entrepreneurial management. Most start-up companies are struggling with resources and have been repeatedly attacked in the market. They are confused and disorderly in management. They also face complex internal and external pressures of changing market environment and talent shortage. It is in such an environment that the original business plan, which is thought to be well prepared, can not be smooth sailing, and may even be chaotic. If you do not stick to the old idea, you will most likely not be able to continue. Can we be flexible and flexible in a positive attitude and try to find more opportunities? Success is the key to breakthroughs. The premise of "change" is to define the direction of "change" first, and to get out of the difficulties of the current situation of the enterprise and clarify the future development path of the enterprise. It is forward-looking. It should seek to be a strong way forward and firmly follow it.

Who can change the core competitiveness of entrepreneurship management, who will win the management of entrepreneurship is a systematic combination, not a certain factor can lead to the success of enterprises. The system that determines the success of entrepreneurship must include foresight, adventure spirit and executive ability. Through such a system, we can grasp opportunities, resources and teams.

We can see that the lack of vision will lead to a low sense of entrepreneurial orientation and passive future. Lack of adventure spirit will lead to opportunity loss and passive beating; and foresight and risk spirit, without effective control cost and strong execution method, can only lead to the lack of competitiveness. In the harsh environment where opportunity is lost, resources are scarce and team strength is not strong, if entrepreneurs can not find out a suitable competition plan based on their core competencies and actual conditions, all problems are problems and all problems will drown the enthusiasm of entrepreneurship.

Entrepreneurs should remain sober in their contradictory decisions.

The process of entrepreneurship is the process of constantly resolving contradictions. Is there a strategy first, a culture, or a strategy after culture? Is there business before there is talent, or is there business after having talent first? Is there an order first, then R & D, or is there an order after R & D? Is it first to have a brand after marketing, or to build a brand before marketing? Is it to focus on diversification, diversification or diversification? Is the pursuit of market share as the main profit index, or the profit index as the main market share? Is asset size important or cash flow important? Is it mainly for employees with high loyalty and general ability, or for employees with low loyalty but high ability? Is it low wage, high commission, or high wage and low commission?

And so on, all entrepreneurial management will linger in these contradictions. Leaders with courage and courage can make bold decisions and make sober and wise choices in high strength and high pressure physical and mental exhaustion. But those who can not jump out of practice and only know how to work hard in pursuit of short-term interests may lose opportunities in indecision and hesitation, and grasp the wrong direction and go to collapse.