Whether to borrow money or not is not necessarily related to the success rate of entrepreneurship. After all, it is a favor to borrow money privately, and it is another matter to seek bank loans. After all, borrowing money must be paid back, but the partnership does not need to pay back. The two people are responsible for their own profits and losses. If they are very confident in their own projects, they can choose the former, which is nothing more than a little interest, but if they want to make long-term business development, It's better to find a partner.
Borrowing money to start a business is less likely to succeed than raising money to start a business because of the interference of the uncontrollable factor of borrowing. However, this does not mean that this approach will not work. Entrepreneurship itself is a near death. Low probability is also a probability, and there are always successful people.
In addition to one's own luck, the resources in hand are the decisive factors for success in entrepreneurship. Borrowed money is a double-edged sword. When it is useful, it can help your career expand rapidly; When the reaction occurs, you will fall into the abyss in an instant and be doomed.
Therefore, how to use the loan correctly is related to the success of entrepreneurship. First, the loan period should be long. Borrowing less than one year to start a business has a high probability of failure. Secondly, borrowings should not be used to purchase fixed assets, but should be placed in current assets to supplement liquidity. This can deal with the repayment requirements that may occur at any time. Finally, the borrowing rate must not be higher than the average profit rate of the industry. Too high interest rate will devour profits and cash flow, making you work for lenders. A little carelessness will lead to excessive interest and bankruptcy.
In short, it is not impossible to start a business by borrowing money, but you need to be more prudent in business operation.
Loan business is nominally feasible, but it depends on whether you are confident that you can do a good job. As an entrepreneur, it is not enough to have money. You should consider many aspects, such as whether your project is good or not, and whether it is suitable for the local area.
The entrepreneurial process depends on entrepreneurial opportunities. The matching and balance of entrepreneurial resources and entrepreneurial teams determine the development direction of entrepreneurial process.
1. The starting point of entrepreneurial process is business opportunities. The form, size and depth of business opportunities determine the form, size and depth required by resources and teams.
2. The role of founders and entrepreneurial teams is to use their creativity to find business opportunities in a vague and uncertain environment, and use external theoretical resources such as capital markets to organize resources to lead enterprises to realize the value of business opportunities. In this process, resources and business opportunities are dynamic processes of "adapting to a gap and adapting again and again".
Entrepreneurship methods
1. Clear objectives
Have a clear entrepreneurial goal, work hard, strive to achieve their ideals, live up to their youth, and make contributions to society and people.
2. Create value
The employees employed by a start-up company should not only meet the ability requirements of the job, but also be able to create added value for the company. In the most critical initial stage of entrepreneurship, capable entrepreneurs and their entrepreneurial partners will not always consider saving in employment.
3. Life planning
Entrepreneurs and their entrepreneurial partners should divide personal finance and corporate finance for management. Before starting a business, make sure that your personal life will not have problems, otherwise you will be difficult to succeed. Entrepreneurs and their entrepreneurial partners can meet the needs of the company's working capital through loans.
4. Advance and retreat
Finally, the entrepreneur and his entrepreneurial partner should set a good exit strategy, and they can choose to transfer, sell the company or operate independently. The entrepreneur and his entrepreneurial partner must also know when to advance and when to retreat.
The basic stage of entrepreneurship
Phase I
In the initial stage, we will occupy the market with products and technologies.
Phase II
At the stage of corporatization, standardized management is required to increase enterprise efficiency, which requires entrepreneurs to upgrade their thinking from thinking to thinking. The original relationship building is transformed into the construction of channels. The company's sales are completed by channels, and the entrepreneurial partner team has also initially formed.
Phase III
Group stage. At this time, we rely on hard power (the core competitiveness of industrialization). The whole group and subsidiaries have formed a system platform. We rely on teams to complete management through the system platform (rule by people becomes corporate governance). Sales has become marketing, regional channels have become regional networks, and sales teams have been established, with certain sales team management capabilities. Thinking from plane to three-dimensional. At this time, you can retire. Entrepreneurs and their entrepreneurial partners have a cash flow system (money making machine), which works for enterprises 24 hours a day. This is the ideal state that many entrepreneurs and their entrepreneurial partners dream of achieving.
Phase IV
This is the highest level of entrepreneurship. At the group headquarters stage, it is a kind of borderless operation, which is commonly known as multinational companies. The system platform of the group headquarters and the operation system of each sub group form a system. The group headquarters relies on a borderless core competitiveness (soft power) that can cross industry boundaries. The sub group forms the industry core competitiveness (hard power). This will enable the group's various industries to achieve the level and speed of performance that they cannot achieve under the condition of single combat. Thinking has changed from three-dimensional to multi-dimensional, which is the highest level that an enterprise can pursue and achieve in its development.
