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    How To Prevent The Loss Of Resources During The Start-Up Period

    2011/7/8 17:09:00 47

    Venture Resource Market

    Relevant data show that: 60% of the private enterprises went bankrupt in 5 years, 85% closed in 10 years, and the average life expectancy was only 2.9 years. Although the path of growth of different enterprises can be different, growth is a common goal. Survive and grow. Entrepreneurship The main task of these people. In the fierce market In a competitive environment, failure to achieve growth does not mean stagnation, but may mean extinction.


    In most cases, the growth of entrepreneurial enterprises mainly depends on the savings and development of resources. If these resources are owned by individuals in the enterprise, once these core employees leave, they will surely pose a serious threat to the growth of enterprises. In fact, this is an important reason why many enterprises with rapid growth have not done much.


      Avoid key Resources Personal possession


    For small businesses, growth is often a prerequisite for being strong and long. What we are talking about here is not the size of big enterprises, but the great danger of survival. Bigger means that resources and energy can be saved, and a relatively standardized organization can be formed to implement better growth planning and strategic choice.


    But many companies have just begun to pick up, and the prospect is quite worth expecting. The rapid growth of some enterprises has stimulated the entrepreneurial ambitions of some entrepreneurial team members, and is unwilling to be bound by existing team leaders, or because of friction between team members, which has led them to start a new business, take away key resources and start similar businesses and become the most direct competitors of enterprises.


    Although these phenomena are not all, they do have some universality, especially in technology and market. Technology and market are important resources for entrepreneurial enterprises. Technology means providing corresponding products for entrepreneurial opportunities so that entrepreneurs can really grasp opportunities, and the market means sales revenue, which means value.


    If the market resources of new venture are in the hands of individuals, can this person get the products that meet the needs of the market, will he go out alone and start his own business? This question may not be answered well. But if the enterprise grows rapidly and has a clear development prospect, will this person leave? Obviously, the possibility is much greater.


    In large companies, we can further decompose the work, further subdivide jobs and decentralization of resources. However, this also means that more employees and more standardized management systems are needed to restrain them. But small businesses can't do this because small businesses can't afford to raise so many people, and meticulous division of labor will increase coordination difficulties and management costs. Premature institutional norms also limit the creativity of employees.


    Therefore, in the early stage of the development of new ventures, there will always be more opportunities for enterprises to concentrate resources on the hands of a few people, so that resources that should have been concentrated on the development of enterprises are occupied by individuals. Once the key resources are available, personal possession will easily threaten the growth of enterprises.


      Expand your "trust radius".


    So, is it more reasonable for key resources to be controlled by entrepreneurs? In fact, many entrepreneurs do hope that entrepreneurs will control the relationship resources, and they will not allow employees or even business partners to get involved in government relations and important customers. Although this may avoid the loss of key resources in the short term, the development of enterprises will be limited. Management is done by others, and enterprise growth is even more so. Therefore, from the perspective of development, even if resources are occupied by entrepreneurs, they will also be unfavourable. In terms of resources, entrepreneurs need to balance "income" and "release". More often, learn to "put", fully empower, effectively restrain.


    In view of the phenomenon of personal possession of resources, many people tend to think of trust, morality and even conscience. Francis Forberg, an analyst of Lander Consultant Company in the United States, is a famous scholar who studies the issue of trust. He proposed the concept of "trust radius", that is, the maximum extent that a person is willing to trust people around him.


    Fukuyama's research found that in China and southern Italy, trust is often limited to family members and relatives and friends, so it is difficult for enterprises to grow bigger. The trust radius of Japan, Germany and the United States is relatively large, which contributes to the formation and development of large companies, and these big companies are managed by professional managers rather than family relations.


    Many people know the principle of scientific management published by American engineer Taylor 100 years ago. This book is positioned as a milestone in management. The famous measures in the Taylor management system are standardization and workflow. With standardized and standardized workflow, the workmanship and experience of workers are integrated into the work process, and they are obvious and can be learned and emulated for others.


    In fact, many enterprises take the rationalization proposal activities, but also virtually integrate personal wisdom into their career development. Some management consultants even suggest that the core staff of the enterprise should bring 2~3 apprentices, so that the core employees can become "doctoral tutors", which will generate honor, retain core staff and shift the core employees' unique knowledge and skills.


    On the face of it, this is a small skill. Careful analysis is also the mechanism at work: scientific business management mechanism, encouraging team work mode, and establishing scientific incentive mechanism, such as stock options, profit sharing, etc., to enhance the cohesion and stability of enterprises, and adopt process management and strengthen system construction will play a certain role.


       Transforming personal resources into enterprise resources


    Sometimes, whether resources are occupied by individuals may not be important. The key is whether they can cause fission and pose a threat to growth. For example, even if the enterprise mode is not easy to be copied, there will be no great threat even if the resources are occupied by individuals. Generally speaking, projects with low investment and low technology content are easy to be duplicated. The development of business mainly depends on personal wisdom and experience, and resources are easy to be occupied by individuals.


    There are many examples of business development based on personal wisdom and experience. Consulting companies and Vc firm can be regarded as typical examples. Consultants should rely on competent consultants, and Vc firm rely on venture capitalists' vision and judgement. So why can such enterprises expand?


    Careful observation is easy to find: many consulting firms often encourage consultants to write Advisory reports and even publish books, which will enable resource owners to share with others and transform successful experiences into consulting tools and methods, thus standardizing the consulting process of the company. Gradually, the resources owned by individuals are also successfully transformed into the resources of enterprises.


    Of course, preventing the loss of resources from personal possession is not a worry about the improvement of the ability of the members of the organization, but rather prevents the contribution of resources to the development of enterprises. It is understood that Lenovo investment company has encouraged enterprise analysts to upload analysis reports to the internal network and assess their performance according to the number of times they are read.


    The investment decisions of the committee will be open to the interior, and non members can also sit in and feel the decision-making analysis and process of the Committee. In fact, it is also promoting the sharing and broadcasting of knowledge and experience, and trying to make explicit knowledge explicit. Similarly, McKinsey Co encourages consultants to write, write and share experiences. Many companies regularly publish internal journals, encouraging employees, especially senior managers, to share their experience on the same side.

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