How To Avoid Risks In Entrepreneurship

To avoid venture risk, we must first know where the risk comes from.

Risk comes from three contradictions:

The first 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.

The 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 procedures to resolve contradictions:

How to deal with these three contradictions to resolve risks? The way is to simulate - setting up a simulation program in the start of business.

The procedure consists of three parts.

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? Let me give you an example: one of my classmates talked to me about a project of "electric wrench", which is used to change tyres for cars, and its advancement 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 all true, but what can this massive "real" mean? What is the key driver to use now to change the tire and save 10 minutes? Does the driver care? Is the driver willing to spend more than 200 yuan on the battery in the car battery? Is the driver willing to be willing? 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, we must test the market target, market access, price positioning, market capacity, sales way, sales management and so on.

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. Synthesis.

The premise is to understand and grasp the project.

To what extent is it understood? What is the grasp of the project unit? The standard is "feasible". Every verified object can be consolidated after it is put into practice. What is feasible? The technology is feasible, that is, getting the products that are suitable for the target. The economic operation is to push the price from the market sale to the comprehensive cost, to see if there is room for profit growth; the standard is up to the top; it must be determined by the acceptance of the end users; the pattern is feasible, that is, the routines you create can be interlinked, so as to achieve the harmony between the purpose and the method.

Remind you to start with three big taboos: high starting point, large scale and fast speed.