Expert Announcement: One step in Jinjin Road is taken from http://chanye.finance.sina.com.cn/2004-03-03/203432.SHTML failed: the lack of relatively accurate estimation of entrepreneurial risk, sales team The development speed is too fast, the lack of systematic development, and the management also has a big problem.
Lessons:
Perhaps some factors that are very inconspicuous can lead to failure and must control business risks. Small company entrepreneurship, product selection and management are particularly important.
In 1999, 25-year-old Li Jianping was an array of people in Shenzhen, and the company's main product is a satellite receiver. In less than a year, you can create more than 5 million yuan of sales revenue for the company.
Everyone has an impulse, like most young people, the idea of their own business has been haunting in Li Jianping's mind. Li has a good colleague, Liu Jiaming, is more familiar with the communication electronics market in Shenzhen. Another good friend Chen Jinwen has been resigned after two years of technical development work in China.
The existing work experience and individual savings have laid the basic conditions of entrepreneurship, and three people seem to be complementary. They firmly believe that "ten times the effort to change the 10 times fast getting rich". In November 1999, the company of the three parties officially established, registered capital of 500,000 yuan. The company was originally focused on the sales and installation of satellite receivers. The products can be directly from the original company wholesale; soon they have signed a cooperation agreement with a telephone manufacturer in Zhuhai and become the agent of the plant.
Market:
Low profit high technology content
It seems that there seems to be very smooth, and the satellite receiver has been installed more than 10 four months, and the money earned can be able to resist the cost of housing and electricity.
But everyday spending still makes the funds of entrepreneurship in a daily day - that is all former "hard-earned money", this trend is very shocking. In the eyes of three entrepreneurs, the sales and installation of the light satellite receptacle do not make much profit, so they are looking for new and profitable projects every day. In March 2000, IP dial entered their vision.
As early as 1999, the report on IP dialing has already seen the media, but there is no special manufacturer in China, and the market is full of imported products. After a while, they noticed that there were already vendors in Shenzhen and other places to start to put production, so I bought a dialer intended to study carefully. Unpacking, three people familiar with electronic communication products can not help but surprise: The entire machine cost is not 50 yuan, but the market price is more than 1,000 yuan, and the highest is even sold in 1999 to 2,000 yuan. IP dialer technology is simple, basically the phone principle, only more block control chips. Shenzhen, which is unusually developed in the electronic communication market, and the manufacturer of related components is much like a humm, so the supply of basic components is not a problem.
They decided to produce themselves. Taking a public telephone in full street as an example, the cost of the telephone booth before installing the dialer is approximately 0.7-1.1 yuan / minute, and the money of the people who collect the long-distance call is 0.8-1.2 yuan / minute, and the charge after the dialer is installed. It turns out the same, but the cost is only 0.4 yuan / minute. Only this one, the market for the dialer is greatly expected. This makes the three people feel that it is not a dial in front of them but is a gold doll.
Unified thinking, a slap in touch. At the beginning, all the wells were performed. Product design production began to start, bought tens of thousands of production and commissioning equipment, and also recruited a professionally responsible for debugging, Chen Jinwen day and night, programming, Li Jianping and Liu Jiaming negotiate business in Shenzhen, looking for suitable Manufacturer purchases spare parts. Soon after the laboratory product, after a simple application test in Shenzhen, Li Jianping took the product to Fuzhou, Xiamen, Ningbo, Northeast and other places. At that time, this priced product was very tempting for dealers, and the market situation was very good. After returning to Shenzhen, Liu Jiaming and Chen Jinwen have also went to the northwest, southwest, and it is good news. Wealth is hit by tentacles, and the mood is like a spring breeze in March.
Company operation:
Lack of marketing strategies
Since the market feedback is very good, Li Jianping started to shop: he has established a complete national marketing plan to recruit business people, technical staff, full-time accounting and clerk. The product has entered the market effect is very good: although there is little delivery, the profit can basically maintain the company's operation.
Because of this market that is super high in this profit, competitors have followed them. In July 2000, the market price of the dialer dropped to 500 yuan per unit - this is a fascinating decline. However, the market is rapidly expanding, in accordance with the expectations of the three, the price of the price is still very attractive. The company recruits sales team again. The total number of people reached 14 in the highest peak. The monthly costs also climbed to more than 30,000 yuan. This is a small boss like Li Jianping difficult to fall asleep.
Competition has become more intense, most of the competitors are the transformation of the ministry of the telephone manufacturer and the universal division of the big communication company, the branch, similar Li Jianping is very few, from the company's background, strength and industry advantage For the company, Li Jianping has lost a step.
However, this is not the most important thing. After 3 months, the dealers from all over the country have returned the goods, and the technical issues broke out.
The dialer is controlled by an integrated circuit, that is, the IC chip, which is often sensitive to the voltage of the input, slightly deviation. Because the dial-based compatibility of their production is not enough, the product has a large regional limitability. The reseller's return makes the cash sales that have been achieved in the previous month to inventory. Three people emergency negotiate, decided to rewrite programming programs by Chen Jinwen that has been responsible for technology. However, Chen's technical experience is limited, and it is still unable to solve the problem of regional applicability after multiple improvements. Thus, repeatedly, 3 months passed, the problem is like a rocky road. Old customers have lost, redesign the product and accept returns to the company's daily work, and the company did not achieve 1 penny in three months, and the cost of 30,000 yuan per month was unlikely.
Under the pressure, the dream of "ten times fare to get rich" in the beginning of entrepreneurship seems to be far farther.
Management:
Decision power is not uniform
Chen Jinwen and Liu Jiaming were originally a very good friend, but there was no sales operation in 3 months, and the hope of improving, making friendship again. As long as it happens once, you will leave a resentment in your heart; if you resent it, you must have a next evil words. Chen Jinwen is too confident and shirk responsibility, making the contradiction finally open. At the beginning, it is only a contradiction in the company's transaction, and it is gradually converted into individuals. Constantly growing up to each other and even personal attacks, leading to the flexibility and high efficiency of the decision of the partnership.
The situation is getting worse, the only way is to solve technical problems at low cost as soon as possible. However, in a new industry, it has been difficult to have a mature engineer, not to mention even if he is still "flowers in the people".
No one is willing to bunch, everyone is looking for opportunities for the change.
In July 2000, a Taiwanese actively found Li Jianping, talked about the telecom market in Taiwan, also coincided with the change, intentional and Li Jianping, a Taiwan market. Li Jianping is very happy, I think this is an opportunity to start again. He found a engineer who claimed to solve the technical problem, and signed a development agreement with a chip manufacturer. However, the previous time is too long. At this time, Li has plenty of powerful cost expenditure, and the result can only be disappointed. At that time, they also consider looking for producers to do OEMs, but abortion due to uncontrollable quality. In the 2000 National Day, most people's joy, but the suffering of Li Jianping is an abnormal pain. After a huge return from the northwest customers, the partners broke out a conflict, Liu Jiaming and Chen Jinwen have left the company, and Li Jianping became a single-wood support dangerous house.
New Year's Day, the market price of the dialer drops to each more than 100 yuan, and the sporadic market sales and continuous investment costs have caused the company's successful lack of funding. The dawn of the millennium brought the market change, the dial collector finally set in the hands of several large telecom operators, but the cooperation with telecom operators, but it is not the small company that Li Jianping will be like this. of.
In April 2001, the spring was blooming, and Li Jianping, who was struggling, returned, and closed the company.
Comment
Avoid "Butterfly Effect"
Director of the Deputy Dean of Jinan University School of Management, Director of Modern Management Institute
Li Jianping's entrepreneurial should say two major factors, entrepreneurial experience, accumulation and funding preparation. It is mainly due to the choice of product and market development strategy.
Li Jianping and its partners have accumulated considerable work experience, plus certain capital accumulation, has already implemented basic conditions for small companies. However, it should be recognized that its initial success is to borrow the existing competitive advantages of the original company's credit, sales channels, market share. The next key task is to choose the right product or technology to develop the company's development strategy, especially the market development strategy.
Despite the small company's strategy, it is a bit too standardized or rational, but the basic strategic analysis is still necessary. This is beneficial to accurately positioning the company in the industry or region, making it beneficial to develop a development strategy for yourself.
In this case, the product selected is an electronics industry, which is a very comprehensive area of competition. The technical content of the development IP dialer is not very high, and there is a strong competitive advantage for companies associated with telecom business. If there is a profit, the post-follow-up is synthesized, this is a potential joining person, it should be thought of before this primary product. The company itself is weak, the financial strength is thin, lacks core competitiveness. This also affects the relationship with suppliers and vendors.
Because the company is weak, the supplier will not pay, the company has no capacity to pay for the seller, which increases the difficulty of funding. In the electronic product industry, Moore's law has a great impact and role, which is manifested as a high maturity, low maturity and short life cycle of new products. The game phenomenon of "prisoners' dilemma" has been performed in the market competition of electronic products, and the shorteness of electronic products in electronic products has become inevitable.
In addition, the management system and decision-making power of the cooperation team should also be clear, so as to avoid "Butterfly Effect", this is a phenomenon that should be particularly worthy of attention in corporate management.
From this case, it is especially important to choose small companies' entrepreneurship, product or technology. For electronic products that do have future development, it should be considered to introduce venture capital, just like the development of small Songtong's market. For most small companies, you can choose trade-oriented or developing traditional products and personalized products. But all entrepreneurs must carefully determine the market sales strategy. Cultivate and develop loyal customers, and the growth of SMEs is necessary and beneficial.
