Seven Reasons For The Short Life Of Private Enterprises

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First, long term high fever does not retreat -- dehydration

When we moved from a planned economy to a market economy, there was a shortage of commodities in the market, but the increase in demand for purchases made enterprises earn money as long as there was production. The more courage they had, the more money they made, which led to misleading some bosses and making them mistakenly believe that making money was simply so simple.

The logic of "the more we earn, the more we earn" is that some bosses have a wrong understanding of the market, and this kind of knowledge has prompted the boss to blindly increase investment, making use of all kinds of loose environment at that time to make the enterprise bigger and more complete in a short time, and run to diversify, create a dragon, set up a group and so on.

Plus, at this stage, products sell well, and profits are high. Enterprises simply do not care what management benefits are. Some bosses are almost ignoring enterprise management. At that time, many business owners were excited to pull their children in primary school into their enterprises. The reason is "what money is good to earn and what books to read".

In short, the boss thinks that money will always be so good, the market will always be so good, and the enterprise will always be so beautiful.

These enterprises only expand and do not consolidate. In fact, they are always in a state of high fever. There is a great contrast between the appearance of prosperity and internal weakness. At this time, enterprises do not have the ability to resist risks, but the boss feels good about himself.

Once the policy, finance, market and so on, no matter where the wind is blowing, it will cause these enterprises to die suddenly.

Two. Dysfunction of organization -- exhaustion.

A boss was very rational at the beginning of his business. His options were accurate and steady. In a short time, his subordinates owned many organizations.

With the increase of subordinate organizations, the company's daily affairs are also increasing. At that time, the functions of the boss have not been adjusted to control the overall situation and overall control. Instead, they have been trapped in daily affairs. The boss has been solving the obvious little things happening in the enterprise every day, and can not take care of some important matters of the subordinate organizations. After these important things have been pending, they have to be handled by the director of the subordinate organizations. After a while, the boss does not know which profit the affiliates are losing, the company's capital status, capital flow and subordinate organizations are all busy with something and so on.

After a long period of time when the boss lost control of the whole world and his subordinates were in the matrix for a long time, the company was extraordinarily active in management, capital flow, production, supply and marketing, and outreach, but this activity was a severe oscillation after the company's business maladjustment, and it was a chaotic phenomenon that had been unable to maintain relative stability.

At this time, the boss tried to save the decadent situation, and frequently carried out institutional reorganization and split up, project dismount, investment increase or decrease, and capital allocation changes. The decision-making performance was very arbitrary, but in fact, it was difficult to control.

In the end, the big and small events of enterprises are inextricably intertwined. The boundaries between right and wrong have been blurred. Doing a thing that we all approve of will bring huge losses to other areas, and correct a wrong thing. It will also bring great sacrifices to other aspects. Anything in the enterprise is difficult to decide whether to do or not to do.

Such enterprises

Three, management solidification - suffocating death

After a number of enterprises have developed, everything is fixed, fixed organizational structure, fixed management mode, fixed management team, fixed post settings, fixed workflow, fixed rules and regulations and so on.

Fixed is not bad, relatively fixed is a manifestation of enterprise norms, it is worth affirming.

But these enterprises are different from each other. Surface regulation is actually rigid, and the whole company is not a bit alive, not a bit vigorous, and there is no flexibility in management.

Even if they encounter good opportunities, they will just watch their peers develop like snowballs and remain unmoved. Even if they encounter new demands in the market or products should be renewed, they are still unwilling to take risks. Even though the current management of the company has been proved to be wrong by many cases, people will still be wrong.

Nor is it not that everyone in the company will not look at the situation, do not find problems, do not want to change the status quo, but any point of view can not reach a consensus, any plan can not be consistent, no one can change the others, no department can convince other departments to match, we always work in a fixed mold, no one can break this frame.

No one can turn around in this kind of business, so we can only do nothing to change everything. We can only deal with everything with a set of routines. Nothing can activate the new vitality of the company. We all sit down and watch the management solidify into a stagnant water. Enterprises are suffocating like fish in suffocating water.

Four, carp jump Dragon Gate - fall to death

After a few years of hard work by the boss, a company has achieved good results, and has accumulated a lot of money, talent and management experience. Because of the industry's reasons, the company's further development has been limited. At this point, the boss has to prepare for opening up other projects. Through analysis, the conditions are met, so the boss has chosen to invest in a new project.

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It should be said that the boss is right in choosing new projects, planning is far sighted, and the whole process is well-organized and smooth, including the profit and loss plan before and after the enterprises put into operation.

Unfortunately, in the time of new product launch, large-scale promotional activities were carried out in the same industry. This situation has impacted on the expected profits of new projects, and the company's profit plan has been seriously affected, and investment in market development has also increased significantly.

In the face of reality, the boss kept calm for some time. The performance of the boss was an example. He had confidence in the new team and stimulated the entrepreneurial spirit of the team. The work was carried out in an orderly manner according to the expected progress.

But when people burn water to 99 degrees, it is worse than 1 degrees to boil. In the new team's 10000 meter race, it has broken through the limit of physical energy to rush to victory. The boss suddenly made a decision to shrink the market network, reduce the customers' bottom, cancel sales promotion activities, and streamline company personnel.

Because the boss is only a little bit of strength, or just a little bit of willpower, or just a little bit of confidence and can not jump over this ridge, in short, in the first step is the willful moment, he chose to give up, resulting in the early investment into a bubble, the accumulated resources have been wasted, the team's confidence has been greatly hit.

Since then, not only has the new project been completely disrupted, but it has not achieved the expected goal, and the operation of the original company has also been affected.

Five, cocoon and bind oneself

A boss once started an enterprise by virtue of his devotion to a certain industry. After several years of development, he has made great achievements. At this time, the competition in this industry is becoming more and more intense. Many competitors are afraid that all chickens and eggs are in danger in the same basket when they smell the strong gunpowder in the market, and they enter other fields.

And the boss's analysis is different. He thinks that although the competition in other industries is not fierce, but after all, he is strange and uninterested. When competitors are diverting from this industry, they are also a good time to fight for the industry leader, so they continue to invest in this industry.

Unfortunately, it happened again. Not long after, the industry suffered from industrial losses due to its over mature products, fierce competition, serious homogenization of products and overly pparent costs. As the leader of this industry, the industry was hit hard, and the business was depressed.

Six, warlords fighting -- duel to death

After more than 20 years of development, every industry needs leaders at all levels. Of course, some of these enterprises are self styled, some are assessed by a certain institution, and so on, since leaders are naturally unified, they can not avoid starting wars.

Some people have joked that Chinese enterprises are "civil war professionals, and conduct wars and laymen". In fact, they still win the prize. The way of business war of Chinese private enterprises is still very traditional. Most of them fight the war of attrition. They only attack not many defenses. Basically, they are stronger than competitors, who are stronger, who are stronger than perseverance, and who dare to lose.

In short, it is to fight to the last gasp to defeat the opponent, only to mark the noble goal after playing the competition.

But I could not imagine that the old rivals fell down one after another, and the new opponents grew like stubble of spring grass.

In this kind of warrior dueling irrational and vicious business war, the whole industry has been hurt, fair competition rule, market economy and moral order have been destroyed. Except many unfortunate enterprises who have been killed in the field, even if you are bruised with injuries, you can not avoid the ending of Qin Dynasty but the two generation.

Seven, temptation and coercion - framing death

Once an excellent small business, it was eyed by a well-known large enterprise. Large enterprises promised that a portion of their orders would be enough for small businesses to "fill up" and require small businesses to be assured of their matching supply.

This opportunity is of course a good thing for small business owners, and small businesses do soon give up other customers and concentrate on serving big businesses.

But when big enterprises wait for their own decisions, they begin to default on their loans to small businesses with various sweet excuses.

After a period of time, small businesses can not afford to support them.

In such a large scale of cooperation, when the credibility is not enough and the regulations are not sound enough, some small businesses may run into a whale's mouth like a little fish and devour it alive without leaving any trace.

This is just one of the situations, and some small businesses will be miserable or happy to die by uncontrollable internal management, hostile means by competitors, entrapment of external public relations events, heavy loans, and endless concern by certain units or personnel.