Enterprise life cycle: new company's first two years

xiaoxiao2021-03-06  39

Morgan Witzel has started from a certain place, even with the largest company, often with slightly cold. Many companies are from a person or a few people sitting next to a kitchen table. Bill Hewlett and David Packard have set up their company in a garage of a rental house in California. Sony (SONY) original office location is a rental room in a department store in Tokyo, and it is a ruin around the shopping mall. We only remember the story of success, but forgot the back of every success, there are many failures. Every year, there are thousands of small businesses in the UK, and small companies established around the world are more than hundreds of thousands. But most of them have failed. Studies have shown that most entrepreneurial companies have been closed within two years after its establishment; recently, a research estimate of the United States is estimated that this period is as high as 70%. The failure process is often painful for the parties. There are many research tries to figure out which factors have led to the difference in success or failure. The main reason for most small companies is not to apply, but this has taken another problem, that is, how is these companies can't pay a statement? Over the years, people have always believed that the key to success is to have a Vision. If an entrepreneur has a clear goal in his heart, and if you are unswervingly move along these goals, it is possible to concentrate, solve the problem. However, not all newly established companies have vision planning, nor all the enterprises that set up vision plan can survive. As Jim Collins and Jerry Porras mentioned in the book of BUILT to Last, large companies like Hewlett Packard are entrepreneurial. At the beginning, there was no clear vision target at all, and they spent a lot of time before they developed the first successful product. Regardless of the initial vision of entrepreneurs, it is necessary to have two years of decision success or failure, depending on the following factors: the hard work of entrepreneurs and their employees, all kinds of institutions (such as government and bank) support, and luck. Most startups can live a honeymoon period. At that time, relatives and friends supported, the government provided funding to newly established companies, and banks gave interest-free loans, and customers were also looking forward to some new things. But after about 18 months, honeymoon is ended. The innovation is gone, the government's funding is light, and the bank has also begun to pay interest in normal loan interest rates. The market declines, the cost is rising, and a new company is dragging the new enterprise into the world, but the entrepreneur and its employees have been tired. Solve these issues require careful planning and management. To avoid over-relying on a small part of the customer; general principle, income from any customer should not exceed 30% of total revenue to avoid huge impacts that the customer suddenly stops buying to cash flow. Financial management needs to take care of longer-term goals, to ensure that there is enough resources, which can guarantee corporate development while dealing with downturn. Managers and employees should have a healthy body, thus power and confidence to meet new challenges. The lack of funding sources is the largest "murderer" that killed many small businesses, but the body and mind brought by a company is also caused by many companies' death. It is very difficult to focus on solving the urgent point of the newly established initial days. Maybe it is very difficult. But this is a thing that must be done. You can't let go of your future, but you must have a plan. Although there is a planning and persevere, it is not possible to ensure the survival of the company, but it will definitely improve the chance of survival.

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