Common sense wins the world: the common secret of successful people

Chapter 15 Common Sense of Entrepreneurship--Understand it and you will be successful! (3)
Then he learned that what surprised him most was not the slow payback, but the fact that the daily turnover of the video game city was actually quite scarce.After opening, they need to slowly accumulate players, advertise, compete with surrounding opponents, and gain popularity. This process takes at least half a year.During this long period, they won't earn an average of more than $1000 a day.The speed of this capital turnover is too slow, and Sanchez's family financial situation cannot sustain the ravages of time at all.Before he got his money back, he might have starved to death, and he had already been kicked out by his wife.

Sanchez put down the contract and prevaricated: "I will think about it again and reply in a few days."
This was a wise move. He returned to San Francisco, and when he came out of the airport, he called the unreliable cousin and rejected the cooperation intention.Then, he made up his mind to ask a professional entrepreneurial consulting agency to tailor his use of the money for him, thus avoiding a "end-of-life crisis" that fell off the cliff.

1. Entrepreneurs should first pay attention to the speed of capital turnover.

2. The most profitable business is not the one with the highest profit, but the one with the fastest payment.

3. The less the cost, the more important it is to pay attention to the cycle of investment return, that is, the time to pay back.

The purpose of any kind of business we do is to make a profit, and one of the prerequisites for making a profit is that the turnover of funds must be within the range that we can bear.In other words, "The money I sell will be recovered quickly to pay for the next month's costs." In the tens of thousands of entrepreneurial case consultations we have handled, more than 70% of entrepreneurs have experienced funding The pain of slow turnover - they have a good project, but they can't pay wages, can't pay rent, although someday in the future they can turn a profit, but many people can't wait for that day to come, so they can't hold on Closed for business.

So, once you are in a certain industry, your target customer base is fixed.At this time, you only need to consider one core question: how to sell the product faster?How to make the payment cycle shorter?The faster the turnaround, the more money you make; the slower the turnaround, the harder it is for you to operate unless you have deep pockets that can tolerate long cycles.

Regardless of whether your company is planning to operate on a large scale, or adopts a flat model that is short and lean in pursuit of efficiency, capital turnover and cost reduction should be considered.

Customer needs are your value

Why would others want to work with you?Must be based on six values ​​you provide:
1. Practical value

You can bring benefits to the other party, such as good business, golden opportunities, or other practical values.

2. Vision value

The other party can improve their structure, learn things from you, and expand their horizons.

3. Communication value

The other party can have high-quality communication with you, and your suggestion is beneficial to him, because your insights are of great help to him.

4. Appreciate value

You are a person who can fully recognize and appreciate each other, and can meet the spiritual needs of the other party, which is very much needed by people.For example, good psychological counselors are expensive, but there is still an endless stream of people queuing up to make appointments, just because they have this value.

5. Spiritual value

The other party can enjoy the body and mind from you and cultivate their sentiments, because you can bring him a happy mood, help him solve his doubts, and calm his mind.Generally, this is our requirement for good friends, and it is also the standard for evaluating lovers.

6. Network value

You can provide golden contacts to help the other party solve problems; you can become a connection node between important people, like a treasure trove of contacts.

Regarding the common sense of needs, my advice is: you have to think about how to create value for others, don't try to own it by yourself, and don't think about occupying the value in front of you.All successful people make others successful by making big cakes, and finally achieve their own great success.

From the above six values, you can see that the real value of a person is to meet the needs of others, and the needs of customers are exactly where your value lies.You should think and practice how to help them achieve their goals, and then get the other party's approval to achieve your own goal: to make money.

You have to work hard to create value that is used by others

Successful entrepreneurs achieve success because they create opportunities that are exploited by others.Most of the failed entrepreneurs are unwilling to do certain things because they don't want to be used by others, and they don't want to suffer from "dumb losses", so their road gets narrower and narrower, and finally they have nowhere to go.

Fanny is an important member of a company in Manhattan. She was already a senior sales manager when she was less than 30 years old, and she has a good reputation. Even her competitors have a good impression of her.How did Fanny do it?She said: "The secret to my success is simply that I have been meeting other people's needs, clients', colleagues', boss's, helping people achieve their goals and helping clients go home happy."
She had many friends both inside and outside the company, and people always talked about Fanny, saying that she was just as successful starting her own company.Many big customers came to her and suggested her to start her own business and go out alone: ​​"Hey, we support you, and the business is all with you!" Look, if you are like Fanny, why worry about not being able to do business?Fanny is a person with excellent entrepreneurial qualities. If she starts her own company, she will be able to grow rapidly, because she is the best partner that customers all over the world are looking for.

Once, a customer's car suddenly broke down on the road and had to be sent for repairs, but he was in a hurry to pick up a customer.At this time, he was in the wilderness, there were no taxis passing by, and it was hundreds of kilometers away from the airport.what to do?He had to try his luck by calling Fanny.Fanny was a hundred kilometers away on the DC border, on the other side of the city.But she turned around immediately after receiving the call, drove to the customer in the shortest possible time, lent him the car, and asked him to drive herself to the edge of the city on the way, she got off the car, called a taxi and left by herself.

Her actions moved the client very much.Although Fanny didn't ask him for anything, the client knew what he should do—he became Fanny's new client referrer, actively helping her develop her business and spreading her name.

If you have such an opportunity, what would you do?

Some consultants simply said: "No, if I am busy, I am not interested in helping such a favor. Who knows whether he is grateful or dismissive?"
Some people said: "I have enough energy to spare, I'm afraid I won't help, but I will help to contact the taxi company. As for whether I can send a car, let him resign himself to fate!"
This is the view of many people, and it is also the reason why it is difficult for them to achieve the ultimate in work performance.People are afraid of being used, so they are careful everywhere. They seem smart, but they are actually stupid.You can't meet the needs of others, you don't want to do your best, and you don't even have the most basic enthusiasm, so why do others help you?

Behind the demand is the value chain
Demand is the value chain. Any business is connected in series by different needs. In this chain, we occupy different links.Some are in the upstream, some are in the middle, and some are in the downstream. People exchange their needs, establish a fixed relationship, and then form a market.

In fact, this value chain is more important and more stable than the market.Because the market is changeable, sometimes strong, sometimes weak, sometimes even disappear, but the demand value chain you have established will not change.Therefore, entrepreneurs must start to build a solid value chain for themselves, help others more, provide your value, and connect them with you, instead of just staring at the market and seeking profit.

Entrepreneurship must have its own "values"
Customers are also observing your values, because the values ​​you can provide are also part of their needs.This is why it is difficult for a boss to develop high-quality customers in the mall if he has a gangster background.Because large enterprises attach great importance to their own reputation and have strict requirements on the reputation of customers, they will not choose partners rashly just to make money.In addition, American entrepreneurs are keen to devote themselves to charity and shape the positive values ​​of their companies, not entirely to avoid the heavy taxes of the federal government, which is part of American corporate culture.

Just like Ma Yun said: "What our company creates is not technology, but culture. Technology is just a tool, and we pay more attention to value, mission and vision. Because work is to help others rather than make money, in my company , always put customers first, employees second, and shareholders third, this is our belief."
For example, if you earn hundreds of millions, some of the money may not be spent for the rest of your life, and there is not much value in the bank, because you don't care about the interest at all.At this time, money is just a number to you.Now, what do you do with the money?

You have many choices: buy luxury cars and villas; play around and spend money; continue to invest in business and make money; use it for charity and give back to the society... You can decide freely, as long as you don’t violate the law and commit crimes, you can do whatever you want, and no one can interfere .But among these options, different choices represent different values.Although people can't control your decision, what kind of evaluation they give you is also their freedom.

An entrepreneur that I am optimistic about should not be greedy and worship money, nor should he indulge in the enjoyment of money and material desires.If an entrepreneur thinks about how to make a profit, go public or make more money every day, without devoting any energy to the spiritual level, the entrepreneur will not provide any positive values.As his client, I will be very careful about the cooperation between the two parties, and I will definitely not have deep trust in him.Instead, I'd be wary of him.

Successful companies will retain their customers by creating value, and continue to create demand and increase prime customers.This is advanced entrepreneurial common sense, something that requires a high level of intelligence.Generally, companies that can provide positive values ​​are not afraid of crises, because when a crisis comes, its employees will not run away, and its customers will not leave.The cohesion of such companies is very strong, and they are always invincible in the competition.

If a person wants to run a business well, he must first meet people's needs, and then provide value and serve others.Demonstrate a culture of mutual help, be adept at meeting the needs of customers, and be enthusiastic about meeting the needs of society.I think only such a person can be successful and have a chance to be a great entrepreneur, not just a successful businessman.

AutoNavi Survey: 4 Questions Entrepreneurs Need to Know

1. What qualities should an entrepreneur possess?

Honesty: Every venture capitalist and funder expects honesty from entrepreneurs.Although they know that entrepreneurs may deceive users but will not deceive their investors and bring them profits, but please believe that honesty is still the greatest guarantee for entrepreneurial success.

Loyalty: Entrepreneurs should be loyal to their own capital, a person who is not loyal will betray his company sooner or later, and will not achieve much.

Law-abiding: Whether you abide by the law in your business determines whether your business can have a longer life.I know a lot of people whose first pot of money was illegal when they started their businesses, which is why they always fall into the investigation storm set off by the judicial department when they are in the limelight.Non-compliance means that the bigger your business grows, the greater the risk you take.

Credibility and fairness: You must be a trustworthy and reliable person when dealing.You should follow fair trading principles, not bully others, and not change orders overnight.

2. How do you view partners?
Mutual understanding: Knowing the root and the bottom is the first element of a partner.If you don't know a person's past, he is like a blank sheet of paper in front of you, so don't partner with him easily.

Mutual trust: A good partner must have complete trust, especially when the company encounters difficulties, trust is even more precious.The kind of partner who can share wealth but cannot share adversity, no matter how powerful he is, your cooperation will not last long.

Complementary advantages: You and he must have their own strengths, for example, one person has financing ability, and the other has creativity and management ability.This can achieve complementary advantages and achieve the effect of 1+1>2, allowing your business to develop rapidly.

The spirit of the contract: Do not cooperate verbally. Once you decide to partner, you should first clarify your respective rights and obligations, sign relevant agreements, in black and white, and make agreements in the form of contracts in every link to avoid unfounded disputes.

Reciprocity of status: If a partnership is established at the beginning of the company's establishment, it must ensure true reciprocity, cooperate fairly and equitably, and assign rights and obligations.This requirement is for full partners.If it is a partner who joins later, it can be negotiated according to the specific situation.

3. What do you think of the entrepreneurial model?
The model that suits you is the most important, don't blindly learn from successful people.Because a business model that looks good may already be used by tens of thousands of companies. When you follow suit, it may not have good results.

Ability determines success or failure.The success of a business model is determined not by the advantages and disadvantages of the model itself, but by the actual operational capabilities of the enterprise and managers.If your abilities and characteristics don't fit this pattern, you're doomed.

The environment determines the model: In different business environments, the success or failure of the business model is not the same.When entrepreneurs design their own models, it is very important to inspect and analyze the environment. They must have an objective evaluation, and then analyze and judge what they should do instead of following others impulsively.

True success cannot be replicated.For example, if you do another Taobao now, it will definitely fail, because the market has been monopolized by Taobao.Combining the current and future potential markets to make a fuss, you can find a new model that suits you.

4. What is the key to the success of a small company?

Start cautiously: don't make decisions lightly, be sure to think twice before making decisions.Because small companies have weak anti-risk capabilities, once a wrong decision is made, the company may close overnight.

Propaganda is very important: make full use of various channels to publicize the company, expand its popularity, and at the same time control the cost of publicity.

Unique products: Create distinctive products, preferably if you have products that others do not have. This is the greatest guarantee for the survival and development of small companies.As long as the market needs you, you can develop.

Lean team: When building a team, we must carefully select and find excellent and loyal employees to form a small-scale efficient team. This is the greatest wealth of a small company and an important guarantee for its development and growth.

Quick response: the success of small companies depends on seizing opportunities.You have to respond to the market as quickly as possible and seize fleeting opportunities in order to gain a place in the cracks of big companies.

(End of this chapter)