guide language: whenever entrepreneurs to meet investors, mind will always be some germination compared to recognize (qi) (pa), really very want to ask what had happened. Many of these entrepreneurs and investors want to know is in the judgment business project investment logic is worth the investment. Most entrepreneurs are embarrassed to say, however, worry too stupid too naive. Today, we bring is its capital share Mr Zhang zhiyong, believe that after reading this article, you’ll be thinking logic of investors with an update.
the author: Mr. Zhang (yue capital founding partner)
often watch project or party in communication, often have friends or entrepreneurs ask me: “how do you determine the project? What is your investment criteria? What kind of program do you like best? …… “I think every investors are in themselves have their own compliance rules and preference, in fact this is a kind of investment logic. Teach fish to swim today to talk about some thinking on investment, hope to have value.
| One. I understand business
entrepreneurship refers to a team comes from your own beliefs, interests, and ideal, find and identify commercially valuable opportunities and needs, integration of existing or through business rules to have resources, innovative solution or a viable business model, persistence and efficient execution of benefits, the realization of value. (the definition of entrepreneurship)
the entrepreneurial process is just like an adventure of Robinson. new companies and new products are often derived from the mysterious dream (ordinary people is not easy to find the target). Entrepreneurs with hot entrepreneurial dream, to prove his goal is not to delusion, entrepreneurs will give up ease and comfortable environment, gathering on thorns, troubled entrepreneurial journey. Entrepreneurship is not just money, more entrepreneurial wit test, endurance and courage. If there is no passion, dreams and interests, entrepreneurship is easy to give up.
| Two at the beginning of the venture entrepreneurs must ask your questions
in my and a large number of entrepreneurs in the process of contact and communication, I often told the entrepreneur and entrepreneurial success of the primary factor is not money, money is necessary but not sufficient and necessary condition of entrepreneurial success), business what is the most important is to clear the direction, do you want? Many people want to entrepreneurship, but only a few people to establish what kind of enterprise has the concept of clear thinking and practical.
founded many entrepreneurs do not care about what kind of companies, they are just a moment of passion and impulse into the business, to start a business, entrepreneurship, more care about is his control of life. In fact, passion for the selection and cultivation of interest will have very good guide, but to choose business direction effect is not so obvious.
so, any entrepreneur in devoted himself to the road of entrepreneurship, all need to torture yourself very practical reason: market have such requirements? Will that be a large market? I really can meet this demand? I want to learn what kind of skills and resources to turn these ideas into reality? Why market lack you described and ready to provide products or services, and why the market need to him? Whether your product or service to win and maintain a considerable share of the market? I have which perform the critical success factors and core competence? If my team can come up to this job?
these problems, as an entrepreneur is not only a shallow thought is, but to serious thinking deep and clear enough.
| Three. The Three core elements of entrepreneurship
in the formula “entrepreneurship” of life, business as a result of the three core elements – “people”, “thing” and “executive force” of the product.
is refers to the team, this is the core elements of the entrepreneurial success , I don’t think that all investors are denied.
the members of a team and experience is what investors particularly valued. Investors when making investment decisions, and the primary focus is the team, team members need to have a very good complementary, to find direction in uncertainty, to have enough flexibility, quick learning ability, dedication, focus, strong competitive, cooperation and sharing, have very good problem solving skills, must have the tireless passion and screwing. They’re not necessarily battle-hardened entrepreneurial experience, but to the division of Labour in their respective areas and locate matching skills, not everyone is good, but can play a strong team working together.
the process of entrepreneurship is a dynamic process, in particular, from that moment on, start-ups in constantly face the product, market, competition, finance and other challenges, team must be able to correct course continuously in the dynamic change of the environment, to find the right direction in uncertainty, reduce the cost of trial and error, improvement strategies, sometimes even need to do big changes. the whole team in the face of uncertainty and change to disagree agreeably. So a good team, especially the pioneering experienced team can be greatly reduced the risk of failure.
another key success factors of entrepreneurial success is “matter”.
the so-called “things” actually means the entrepreneurial choice of industry, market scale, business model and profit model. Industry choice is key factors in the success of the “thing”, lei jun once said “standing on the tuyere, pig can fly”, actually refers to choose the industry and business direction, you are going to a big step closer to success.
second, market size and imagination is very important, business entrepreneurs to choose their own familiar areas, there will be a problem, the but must choose with imaginary space and market potential of fertilizer market , you know, on a piece of barren land, you even hard water and breeding, but can you harvest food was limited.
risk investment for the future and the expected, in a limited market, even if your project is a money-making business, but still it is hard to get favor of investors. Again, the business model and profit model is a startup project must be thinking and gradually clear, is also a good startup project must explore and practice the fundamental path, clear business model and profit model is to support an enterprise to the source of sustainable development, and strengthen the entrepreneurial finance first prime mover is to explore and practice, the best operation mode and profitable way.
the last key factors in the success of the venture is “execution”.
I understand execution is learning ability (analysis, insight, creativity), problem solving ability, cooperation ability, social ability, market power, sales force, financing ability, faith, persistence, a complex of efficiency. kazuo inamori once said “the so-called real skills, there will be screwing, thoughtless attitude, is not only intelligent, but also can see in any case, can with a how seriously to do, and when encounter difficulties can not flash not hide instead of confrontation, sincere, one hundred percent earnestly, to work hard, that’s the way of success.”
use micro letter to see a few words: “do any cause, not the smartest people success, also is not the most stupid people succeeded, but would like to learn people succeeded; Not be the fastest man success, nor did the slowest people succeeded, but most believe that the success of the; Not the strongest success, also not the weakest success, but most want to stick to success; Not grow beautiful success, also not ugly success, but a man who knows cooperation a success.”
a good startup is to let every startup key elements as far as possible, the maximum efficiency, the biggest equation to entrepreneurial success.
| Four. Investors care about?
your looking at a project, follow the logic of thinking is: understanding to judgment, plan.
simple explanation is the first thing to understand about the entrepreneurs to do, to make sure that the correct understanding and no deviation of project; Second, to understand and judge the project can be cast or not, there is a blend of experience, professional knowledge, research and analysis of investors, talented people and independent judgment, not blindly follow, follow, have their own faith; Finally, judging by the way, also look at implementing scheme right, patterns have verified, at the very least entrepreneurs use logic to convince investors your startup project is feasible, and can be implemented.
when their preliminary judgment, a project, the most concerned about is four dimensions: direction, team, business model and profit model, a plan of action.
in the wrong direction, entrepreneurs even achieved 100% didn’t help, if you on the choice of direction into a niche has smallpox market is doomed you could not grow into a plant trees, no imagination it is only a small business to make money.
What kind of team or
like entrepreneurs? The answer to each of the investors are not the same. But there are some common genes are all investors value:
1. Passion, ideal and mission
a little jokes circulating on the social media – horizon decision concept of width, height, thought decided to good future for this trait. Entrepreneurs must have a great ideal, have passion, whether meet what kind of trouble are able to adhere to.
2. The ability to resist frustrations and positive and optimistic attitude
entrepreneurs must have a strong psychological quality, excellent ability of self-regulation, in the face of any challenge has a positive and optimistic attitude, even if can calm in the face of setbacks and actively seek countermeasures.
3. Open mind and team cooperation ability
CEO be humble, sincere, generous and open mind, CEO can’t be perfect, but he must know what kind of person is indispensable to start their own businesses, and know where they are, and have the personality charm to attract them to come in, still can make these brilliant talents together happy cooperation and contribution.
4. Strong learning ability and the ability to solve the problem of
the process of entrepreneurship is the process of continuous learning and problem solving, good learning ability and a strong ability to solve problems is the ability to decompose problem and processes as a whole, is the ability of IQ and eq mode switches at random, is in the process of learning and problem solving constantly accumulated and summarized, to join the experience and the efficient positive cycle.
business model and profit model is a problem that investors are concerned about, but for early project profit model is also the most no answers. In textbooks, the business model have a standard definition of a “business model refers to the business logic, is the enterprise how to operate in the market competition, and create and capture value for shareholders.”
in short, the what kind of business model is that you can provide products or services, for what the user how to create value, in the process of creating customer value, with what kind of method to obtain commercial value. to have the user value to have commercial value, the business value can truly profit model.
the perfect business idea is also to be able to be born to be meaningful, a plan of action is the key to the whole project implementation, the a pragmatic, grounding gas operable action can improve efficiency, reduce the blindness of execution, goal clearer and more quantitative evaluation.
for early startup, the principle of “lean startup” mentioned in the book is beneficial for you develop a plan of action – “first to market a minimalist prototypes, then through continuous experiment and study, with the minimum cost and effective way to verify whether the product in accordance with user requirements, flexible adjustment direction. If the product does not meet the market demand, it is best to “fast, cheap failure”, not “expensive failure”; If the product by the user, should also be constantly learning, mining user requirements, the iterative optimization products “.
| Five. The start-up the four principles of
a start-up companies in the process of development, to succeed, should stick to the following principles for a long time.
1. Long-term cooperation team
business model and product characteristic is easy to change, the most difficult to change is the relationship between partners, long-term cooperation is the foundation of a solid team.
2. The depth of understanding of their clients
entrepreneurs than customers understand themselves, understand customer is better than knowing yourself.
3. Attaches great importance to the operating data and analysis
do quantifiable data operation and analysis, to improve operation ability, there is a lot of help to improve operating performance.
4. Control the Burn rate (Burn rate), focus on cash balances
start-ups is the lifeline of cash flow, pay attention to cash flow, as far as possible to save and improve the service efficiency of funds, control the speed of burning money, to yourself as much as possible and as long as possible for the winter food.