The three Chinese main reason for business failure

 Blind business, the lack of contract spirit, too much reliance on a network of Chinese entrepreneurs are the three main cause of failure.
Of entrepreneurial enterprises, only 100 enterprises from 20 to 30 can survive 1 year, and go through 3 years Among these enterprises accounted for only 30%; The venture is now the popular students, the failure rate is as high as 99%.
a survey of entrepreneurial enterprises, only 100 enterprises from 20 to 30 can get through 1 year, 3 years go through this business which only 30%; The venture is now the popular students, the failure rate is as high as 99%. startups from scratch, the entrepreneur needs to do the allocation of funds and scheduling, Recruitment, marketing strategy formulation, management control, and the face of market changes from the competition and, therefore, a part of any problems in terms of start-ups for the vulnerable are deadly.
40-year-old late start no later ?
young entrepreneurs should not be blind, we must first accumulate some professional experience and business operations experience, with some funds, resources or customers unique business model, and then search for business, so the odds of failure will be greatly reduced.
Chen Bifu early 20s into the Taiwan Ogilvy & Mather, from the investigator to start, step by step to achieve the general manager of Ogilvy & Mather Beijing, during which spanned almost 20 years, accumulated a wealth of marketing experience and customer relationships. Until the age of 40, Chen Bifu feel comfortable when you can own business to Ogilvy & Mather, general manager of Beijing resolutely gave up the post, it created the concept of Tang advertising company, Ogilvy & Mather before many customers have become in Tang advertising customers, the company first year to achieve a turnover of tens of millions.
Chen Bifu the media about their own business was the greatest feeling is: a matter of course. When their experience, financial strength, interpersonal relations, team building has reached a more mature After the level, out of business is a natural thing. Perhaps many young people view, Chen Bifu 40-year-old began to venture, seems too conservative, lost a lot of opportunities, but the probability of success and is greatly improved, 10 years This not the biggest advertising company is still alive and relatively healthy.
business failure often stems from a blind, preparation before the start is very important. entrepreneurs in the business before the need to clearly know their core competencies where the technology, products, services, network resources, or financial strength, government relations, etc., if the resources in the areas where have certain advantages, the early start is easier to survive.
Therefore, business consulting experts generally suggested that young people do not blind the domestic entrepreneurial, but the first professional experience and accumulate some experience in business operations, with some funds, resources or customers unique business model, and then seek venture, so the odds of failure will greatly reduce.
how to avoid enemy type disband?
beginning a business, have established a partnership contract between the best spirit of the anticipated future situation designed, reflected in the articles of association, so that evidence-based changes in the future. Also you can stake out a good performance was to be a partner in the redistribution of a live on reserve, maintain a certain flexibility in the system.
for a famous consulting company recently was disbanded. The consultant management consultant who is the most successful consulting company, the company's four partners in the industry also has some influence. had four partners formed the company in accordance with the time The average per capita allocation of 25% of the shares, each responsible for a business. As the four founding partners in their respective fields and each has a strong operational capacity, the company's smooth sailing in the early days, soon to become the industry leader in the development of management consulting firm.
However, with business development, the company's four business appeared uneven development, which operated two businesses accounted for 80% of the amount. soon 4 occurred between partners contradiction, but had agreed a 25% stake is difficult to change, difficult to reconcile the contradictions in the case, the company unexpectedly dissolved, four partners went their separate ways.
startups often between partners or shareholders is determined in proportion to the amount of investment shares, ignoring the personal ability and intellectual level of intangible assets, especially in technology-oriented or intelligence-oriented industries, enterprises tend to be more follow-up based on the development of expertise and promotion of intellectual capital has become a sub- To factor. the characteristics of entrepreneurial firms is the development of the largest changes very fast, not to easy separation of the consultation.
present, many entrepreneurial companies have taken most of the right to free shares and stock dividends model, each of these two models advantages and disadvantages, but also has a successful and unsuccessful ones, need to explore the characteristics of different enterprises. But beginning a business, have established a partnership contract between the best spirit of the anticipated future situation may be designed, reflecting the In the articles of association, so that evidence-based changes in the future; In addition to the ratio of the amount of investment, a relatively rational distribution of the proportion of shares, and in the enterprise development process of the core members of the team to assess the proportion of shares can be done the timely adjustment, rather than static.
can also start-up, apart from the investors, provided you can show what proportion of the shares outstanding performance to the subsequent redistribution of partners to reserve one to live in system to maintain a certain flexibility.
up once and for all social relations?
in the entrepreneurial process is not over-reliance on personal connections, as a fulcrum start a business right, but the problem is the relationship and can not guarantee once and for all, once lost , the way it is easy to start an abrupt end. After all, a network of business decisions ultimately, the decision is not a network of relationships.
Chen Feng many years engaged in a relatively free career mm personal studio to do something to help small businesses design and printing business. However, an opportunity to change the fate of Chen style. Chen Feng Zhang Yan, an old friend in a foreign company just promoted to Chief Operating Officer, holds the hands of a few million dollars a year printing business. In Zhang Yan's .
in the care of Zhang Yan, Chen wind Henzhi Zu doing this to foreign companies in the printing business. Yet two years after the accident left the foreign Zhang Yan, Zhang Yan, a successor to succeed not hesitate to put this printing business to his own relationship between the families. lost business pillars supporting Chen wind does not go soon, a few months later the company had to shut down.
Chinese people think highly of relations in the entrepreneurial process is also more dependent on personal connections, often as the fulcrum start a business, but the problem is the relationship and can not guarantee once and for all, once the relationship is lost, the way business is easy to stop. After all, the final contacts or business decisions, not the relationship between a network of decision. for example, by improving service, products, develop new customers, but reliant on a single customer to survive.