How entrepreneurial businesses are navigating difficult times

Whatever we do, there will be a period of bottleneck, in which we will be stagnant and flustered, so how do we safely get through this period?

1. There will be the following difficulties in financing start-ups:

1) Information asymmetry, which may make external financing costly, or even prevent external financing altogether;

2) The qualifications of the enterprise, the small scale of the start-up enterprise, the unreasonable and standardized business mode, the imperfect governance policy, the weak ability to resist risks, the lack of experience in operation and management of the enterprise leaders, and the lack of transparency in information disclosure;

3) moral hazard, which occurs after the completion of an economic transaction;

4) The market environment, the external market environment determines the difficulty of financing entrepreneurial enterprises. It is very difficult for startups to raise funds from traditional channels.

2. Legal basis: Article 4 of the Commercial Bank Law of the People's Republic of China.

Commercial banks take safety, liquidity, and efficiency as their operating principles, and practice independent operation, bear their own risks, assume their own profits and losses, and exercise self-restraint.

Commercial banks shall conduct business in accordance with the law and shall not be interfered with by any unit or individual.

Commercial banks shall independently bear civil liability with all their corporate assets.

Commercial banks should follow the principles of equality, voluntariness, fairness, and honesty in their business dealings with customers.

Commercial banks shall ensure that the legitimate rights and interests of depositors are not infringed upon by any unit or individual.

In carrying out credit business, commercial banks shall strictly examine the credit standing of borrowers, provide guarantees, and ensure that loans are recovered on time.

Commercial banks shall recover the principal and interest of the loans due from the borrowers in accordance with the law, and shall be protected by law.

2. What is the financing of start-up enterprises?

Financing for start-ups is as follows:

1. Bank loans. Bank loans are known as the "reservoir" of entrepreneurial financing, and they have a "mass base" among entrepreneurs. A line of credit refers to a loan granted by a bank solely on the basis of trust in the borrower's creditworthiness, and the borrower is not required to provide collateral to the bank.

Secured loan refers to a loan issued with the credit of the guarantor as a guarantee;

2. Venture capital. Venture capital is a high-risk, high-return investment in which venture capitalists enter a start-up in the form of equity participation. Venture capital favors high-tech start-ups;

3. Private capital. The investment operation procedures of private capital are relatively simple, the financing speed is fast, and the threshold is low;

4. Financial leasing. Financial leasing is a kind of credit method with financing as the direct purpose, which is a borrowing on the surface, but in essence it is borrowing capital and repaying it in installments in the form of rent.

The growth of an enterprise is like giving birth to a new life, the first three months are the most difficult moments, as long as you get through it, you will basically have nothing to worry about later. Of course, if the enterprise wants to be long, it must survive at least 3 years, and many start-ups can't survive even 1 year, let alone 3 years. How to survive the first 3 years is the most test of the founder's quality.

1. Create a stable team.

In the end, many enterprises cannot do anything, not because the external enemy is too strong, but because the internal inconsistency leads to the discouragement of the army, and finally the gang is dissolved, so that it cannot be sustained. At the beginning of the business, it is necessary to choose a good team member, the concept and direction must be consistent, and the equity and responsibility must be clear. When the initial direction is verified by the market and cannot be carried out, the bow of the ship should be changed, and the order should not be changed easily.

In this way, all members of the team are twisted into a rope and play to their respective strengths to remove obstacles in the way of progress.

2. Focus on products.

A start-up company, if you see which one makes money, you can make which, one will do projects, the other will make products, without a backbone, without a main line, except for barely surviving, it is difficult to have the opportunity to grow. Therefore, a start-up company must set the core products for development at the beginning of the business, and can make unique products based on the existing team and resources, and then let the world know that you are the best in such a segment. Then go to the market, and then make all kinds of efforts and modifications around this main line to make the market accept and recognize.

3. Capital is the blood of the enterprise What is the most expensive in the 21st century is talent, but without capital, it is difficult to recruit talent.

Of course, the prospects of your career may still attract top talents, and it depends on the charisma of the founder. With talents and teams, then grain and grass are indispensable. Entrepreneurship is like fighting a war with the same army, the three armies have not moved, and the grain and grass go first.

In the founding team, there must be a ruined person, who must focus on the financial problem at the beginning: either to bring the product to the market as soon as possible, or to cut into a large product in a cooperative way to share a little profit, or to start financing. Capital is the driving force for enterprises to continue to move forward, just like the blood of the human body.

Many companies can't do it, in the final analysis, they don't have money. There are a considerable number of enterprises whose funds are broken, and the main reason is not that they can't raise money, but because they spend money indiscriminately, and spend the money in some improper places, such as the founder getting the financing money and getting a luxury car for himself. If a company wants to survive the most difficult first 3 years, it can be a lean startup model, make careful calculations, and quickly iterate the product, and quickly and effectively test the market's response.

4. To put it bluntly, it is to quickly test which roads are not going to go and which roads are difficult to go at the current stage, rather than knowing which roads can be taken. There are many paths to success, and the more paths that are eliminated from mistakes, the greater the proportion of remaining paths to success, and the greater the probability of success.