Is There Any Chance Of Success For New Ventures?

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Designing a new computer game software and trying to sell it in retail channels is absolutely a crazy idea that will drain you.

In the same way, competing for Nike's share of the sports shoe market is also the same.

Entrepreneurs must take advantage of others' weaknesses. Only in this way can new ventures take their own advantages, attack them, or even attack them, thus defeating their rivals and achieving success in competition.

Many entrepreneurs fail to understand this lesson. They are obsessed with the novelty of business creation and their vigorous energy. They think that only two are enough to bring success, and the result is that they have wasted countless money and time in the competitive field of large enterprises.

That is why I am so obsessed with the high-end food industry.

In the United States, more than 2000 new high-grade foods will be launched every year, of which 1900 will fail.

The reason is that people who launch these products are obsessed with a product idea rather than the business itself.

Successful entrepreneurs know that having the ability to produce a good product alone does not mean that they should produce the product.

The secret recipe may make delicious potato chips, but that does not necessarily mean that it can become a viable business.

If there is a chance to choose between them, or to spend all of them in a market that is extremely competitive but competitive, or to become rich in a dull niche market, experienced entrepreneurs will always choose the latter.

So, for those businesses that are full of little money and full of dreams, they should stay away from them and find their way.

Of course, entrepreneurs also have many things that big businesses do not have. With these advantages, entrepreneurs can successfully create and develop their own businesses.

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1, the burden of failure.

This is the biggest advantage of entrepreneurs.

Big business has a set of rules.

For example, a large number of employees like to maintain the status quo and avoid possible risks.

For example, no railway company has entered the aviation industry, even though they are fully capable of doing so, and because they stick to traditional fields and have no time to develop new businesses such as aviation.

Market and technology change implies new business opportunities.

The first website on the Internet is not ZiffDavis or Microsoft, but founded by an overnight entrepreneur Yang Zhiyuan.

When I met JimLevy fifteen years ago, he was running one of the fastest growing businesses in history. With the help of one video game after another, Activision quickly expanded to grab a large share of Atari2600.

But only a year later, his company became a bloated, ambitious and bureaucratic company.

As a newly graduated MBA, I think I should give some directional suggestions to JimLevy. So I found an article from Harvard Business Review. Based on this, I suggested that he should make use of the company's lucrative profits to develop a new game software market.

By making software for IBM and apple computer, they can take advantage of market forerunner's position and capital to occupy more markets, but Jim has been dragged down by the burden of success.

His investors and employees were unwilling to invest in the new market, but only to gain more profits in the past, so that they could revisit their old dreams. So the company kept repeating its previous business. After a few years, the company was bought by someone at a fantastic price.

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2, easy to feed

In the sea, the animals that are the first to die are usually big fish, because they need to eat a lot to satisfy them.

Those little ones, such as zooplankton, can eat some bread crumbs.

The same is true of entrepreneurs.

If the box office value of Disney movie is less than forty million dollars, they can't be satisfied. Compared to this, an entrepreneur of Vermont took a children's movie called "front road repair" in 1990. He was very happy when the movie earned one hundred thousand dollars.

Forty million dollars is four hundred times the amount of one hundred thousand dollars. Imagine how much space can be left for small businesses to survive and grow outside the vision of giant companies.

If you want to do it, do niche market rather than everything.

3, experience personally

In many enterprises, the general manager has the ability to prohibit and prohibit.

If Jack Welch of Ge wants the noise of the new refrigerator to be lower, the engineering department will pay attention to it. When he needs to arrange a meeting with his big client in Detroit, people will take the time to meet him. After all, he is the president of the whole company.

But in large companies, the general manager is always out of touch with the workplace.

GE has tens of thousands of employees, and Jack Welch has only one.

When surrounded by people with different interests, it is difficult for him to have access and touch the whole company.

I had an employee Jerry flying to Detroit.

Here is a little bit.

He arrived at the airport for about four hours, and found that a flight was flying back to New York in about 15 minutes. The plane was almost empty.

Jerry then asked if he could take the flight instead of waiting four hours later.

In any case, the aircraft is also flying to the same destination. There are more seats on the plane, and no additional cost will be added to the airline.

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The ticket collector refused to allow Jerry to ride.

If the general manager of the airline sees this scene, do you think he will make the same decision? The general manager of the airline will never refuse passengers when he has the opportunity to take advantage of it. He will never be so foolish as to damage his brand image.

The problem is that a grumbling ticket inspector receives Jerry and the general manager is not there.

On the contrary, entrepreneurs are the general managers of their own companies, so they have the opportunity to have many contacts with their clients, make policies themselves, and avoid losing customers due to inappropriate rules and regulations.

Entrepreneurs can win the fussy customers by using the ability and flexibility of "experience personally".

4, speedy R & D

As the saying goes, "nine women can't give birth to a child in one month".

Because of time, teamwork can not speed up work, but it may reduce efficiency.

Research has repeatedly shown that small and dedicated teams are always more agile than large and bureaucratic teams.

Obviously, picking out four talents to form a team is always more difficult and more risky than selecting 20 or so ordinary people.

This is also one of the reasons why many big companies are not good at launching innovative products.

Large companies tend to set up a set of rules and regulations to reduce R & D risks.

And entrepreneurs do not have to do so, or they can hire one or two people to complete a research and development project.

It is not surprising that new companies are developing faster and more monographs.

5, the power of novice

When Viacom or Microsoft or general motors came to inquire, many small suppliers seemed to smell bloody sharks.

They know that people in big companies are not the owners of the company, so the price they ask for is higher.

No matter how high the price is, big companies can always afford it.

In addition to being able to quote high prices for large enterprises, small companies are also accustomed to dealing with many tedious and demanding demands of large enterprises: orders, bureaucratic documents, lawyers, insurance clauses and so on.

Slightly lower.

Big companies are sometimes aggressive, and people interact with them in the same way.

The entrepreneur runs a small business, so you can get the distribution rights of a video game without prepayment, or persuade Mel Gibson to show up in your documentary, or ask your lawyer to advise you free of charge.

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6, low operating costs

Entrepreneurs can work at home, no division of department and company car, so long as a telephone, a few insurance guarantees and no remuneration employees, the new company can run.

If an entrepreneur can not operate at a much lower cost than a large company, it must have chosen the wrong product type or is running the company with the wrong strategy.

Although large companies are large in scale, they still have to make profits on every single product, otherwise they will pay for it sooner or later.

A loss in every product class and a loss in sales volume will eventually wake up in a nightmare.

Entrepreneurs can surpass their larger competitors through their very low operating costs, especially when products or services are not supported by huge capital.

7, flexible time

Large companies lack the freedom of time in their operations. For example, they need to pay interest on banks every month, to curry favor with the stock market, and to develop their business according to a certain timetable. We all know that doing things according to timetables means reducing flexibility.

Sometimes they must speed up, and sometimes they must delay.

The entrepreneur's action is not hidden in public view.

When necessary, entrepreneurs can make progress ten times faster than big enterprises, and when business needs, entrepreneurs can also slow down their pace and nurture and ferment with patience and time.