Entrepreneurs in society are obviously very profitable, why do they go into debt as soon as they go

Entrepreneurs in society are obviously very profitable, but as soon as they go bankrupt, they are directly in debt, on the one hand, because the money they earn needs to be spent, raw materials need to be spent, hiring people needs to spend money to buy equipment, so on the whole, there is not much left, plus the money for decoration. All this money was paid by the boss in advance, and the money could be returned after surviving this stage, but after the failure of the business, it directly led to his own debt. <>

First, doing business requires investment, and once the investment fails, it means a large amount of debt

The word entrepreneurship sounds very glamorous and successful, but you must know that the risk that entrepreneurship needs to take is relatively large, and entrepreneurship may not be successful, once you fail, you have a lot of debt. It looks particularly profitable, but if you remove the labor cost and remove the cost, it can't make much money, and the customers will not give a lot in the early stage, and the customer needs to accumulate slowly, and you need to innovate so that you can retain the customer. So this also leads to the need to invest a lot of money to try, and it may be fine if it succeeds, but it means that the previous investment is directly lost.

Second, the cost of materials and labor are not small expenses

And you must know that in most companies, he will spend it directly after making money, it has high returns, but it also has high consumption. Whether it is to buy a machine or hire people, including buying materials, it takes a lot of money, before the business is not particularly stable, this fund is actually unstable, and even sometimes it has to be pasted upside down, a manual needs to spend thousands of dollars a month, a few people think about how much can be left in a month. <>

Or that sentence, if you find that your business is not very successful, or it is innovation, or it is a timely stop loss, if you don't stop the loss, the money will only lose more and more, you are an investor, you are still a relatively large ** east, you yourself do not stop this investment in time, then you lose the most money.

Because income does not equal profit. Some companies have relatively high costs, so in comparison, their profits are not particularly large, so they will be in debt.

Because they invested a lot of money when they started their business, even if they made a lot of money, they might not be able to get back the cost, so they went bankrupt and went into debt.

This is because earnings cannot support expenses, and when the company fails, it is easy to become indebted.

Because many people are not suitable for starting a business at all, and at the same time, they are not ready to start a business, so many people will go into debt after starting a business.

When it comes to entrepreneurship, many people think that entrepreneurship is a very powerful thing, and at the same time, they look forward to changing their lives through entrepreneurship. However, in fact:There are very few people who can succeed in starting a business in a short period of time, and many people will take many detours in the process of starting a business, and some people will even go into debt because of this.

Before starting a business, it is advisable for the person to fully evaluate their entrepreneurial ability, and the person needs to be responsible for his own life.

1. Many entrepreneurs are not suitable for entrepreneurship.

This is a very harsh reality, although everyone wants to change their lives through entrepreneurship, but not all people are suitable for entrepreneurship. For more ordinary people, because many people do not have the corresponding work skills and mature minds, many people are not suitable for entrepreneurship at all. Even if this person starts a business repeatedly, the likelihood of this person losing money will only increase.

Second, some people do not manage their funds well.

At the beginning of starting a business, many people tend to pay too much attention to the return on investment brought by entrepreneurship, but do not pay attention to the capital management of entrepreneurship. The process of starting a business itself is a process of constant exploration, which means that we need to take many detours. If a person does not effectively control their own funds, they are likely to be in debt in the middle of the business.

Third, some people do not choose the right project for themselves.

There are a lot of entrepreneurial projects, in a sense, as long as a person can choose the project he is good at, and the person is willing to study patiently, this person will be able to achieve a certain degree of return. However, for more ordinary people, many people simply do not choose a suitable entrepreneurial project for themselves. After some exploration, many people can only choose to stop starting a business halfway, and if the person himself borrows a lot of money, the person will naturally be in debt.

Because many people don't start a business!

Before starting a business, I didn't have the professional knowledge and ability to start a business, so I basically went into debt in the end.

Entrepreneurship is a comprehensive discipline and a science.

Starting a business does not mean that you can succeed if you have funds, recruit a few people, rent an office or store and hire someone to do it.

Many people don't ask themselves if they are suitable for entrepreneurship before starting a business. There is no preliminary assessment of entrepreneurial ability, resources, vision, environment, and risks.

There are several reasons why many people end up in debt when they start a business.

1. Follow the trend mentality.

Many people see that others have started a business and made money, but they don't think about whether they are suitable for themselves, and they hold the mentality that if others can make money, I can make money, and only see the results of others in autumn and do not see the cultivation of others in spring and cultivation in summer.

For the same project, the operator is different, the operation plan and means are different, the operating environment and space are different, and the result will not be the same.

Therefore, for the same project, some people can succeed in starting a business, while others will fail.

2. Gambling mentality.

Entrepreneurship is not bold, it will be successful, but it needs to be bold and careful.

And before starting a business, you should ask yourself if there is a way out? You should also ask yourself whether you can afford a series of bad consequences such as betrayal, collection and bankruptcy after starting a debt.

Many people start their own business with a gambling mindset that they will succeed.

Before starting a business, many people have a gambling mentality in case they can succeed, put all their capital and energy into it, and do not carry out relevant risk plans, and have no response plan for difficulties and external factors.

3. The comprehensive ability of entrepreneurship is insufficient.

Everyone has their own strengths, but many people only see their own strengths and do not see their shortcomings before starting a business.

To succeed in entrepreneurship, there are many details from product to marketing to management, not a single point, and there are many things to understand, so before looking for a partner, they are looking for their own shortcomings.

Entrepreneurial success is like building a car, it needs various components to run in the end, and if there are not enough accessories, the car cannot be built.

4. Get carried away.

Many people are triumphant and forgetful of the success of their business, blindly expanding, blindly borrowing, blindly squandering, and will not step on the brakes as a result of the car overturning.

The current master is the current law, and the current law is the supreme law", and a momentary success is not equal to a lifetime of success. Time has changed, space has changed, entrepreneurship is like crossing a single-plank bridge, as long as you are a little careless, it is easy to fall into the pit.

5. There is no continuous learning.

The rest of the way to start a business did not keep pace with the times, for example, in the era of bringing a batch of goods from the coast to the mainland to make money, but in the Internet era, the information is more transparent, and the commodity project can be known at a check.

And many people are still doing business using the traditional thinking, methods and solutions that used to make money. How can you not fail and not go into debt?

Many people start their own businesses and end up in debt, for many reasons, mainly internal reasons.

In a word: the wrong result is the wrong action, and the wrong action is the wrong thinking.

I hope mine can help you, pay attention to private messages, and everyone communicates with each other.

Not necessarily, the debt may be the type of investment they start a business is relatively large, or it may be that they do not manage and operate and cause losses, and some people get good benefits, not all of them are in debt.

Because starting a business is not a simple matter, it will end up in failure, and only a few people will succeed.

The main reason is that many people have no entrepreneurial experience and lack of ability.

First of all, we should solve the problem of personal livelihood.

If you are already in debt, it is best to work for a period of time first, which can not only adjust yourself, but also solve the problem of personal food and clothing.

Besides, it doesn't matter if you lose your debts temporarily, you just go to work temporarily so that you don't want your family to ask for money, rather than giving up your dream of starting a business.

After all, it is still a long time to simply go to work to pay off debts, if you have a lot of debt. Therefore, in the face of life problems, it is necessary to sum up the experience in the future.

If you have the opportunity, it is better to follow others and learn from others, and do not blindly and impulsively start a business, not only can not change the situation, but may also put yourself in a more terrible desperate situation.

However, it is not advisable to start a business directly after going into debt, and it is best to study according to your own heart and work for a period of time without finding the opportunity to start a business.

It is also necessary to know how to study carefully, to see more about how others are successful, and to see how others make choices on the road to success.

Of course, everyone has their own ideas, and everyone's economic strength is different, so the development after debt is still different from person to person.

As a starting aneury, there is no good path, no accurate goal and direction, which will eventually make the situation worse.

I would choose to start a business because if I have a lot of debt, it will be very difficult to work in the future, so starting a business is the best choice, and if I succeed, I can get ahead.

As a person who has experienced it first, it is not advisable to start a business directly after failing to start a business, and it will form a vicious circle, so it is best to work for a period of time first, solve the problems in life in front of you, calm down and precipitate yourself, summarize the reasons for failure, and learn lessons. In the process of work, carefully learn the advantages of others, see how others are successful, and see how others make choices on the road to success. At the same time, I don't give up my dream of starting a business, because I have too much debt, and although it is more stable to repay the money by part-time work, it will take a long time.

When I am already in debt, I will choose to work to pay off the debt first, find a suitable opportunity and then consider whether to start my own business.

Because the revenue of these startups is nothing more than valuation, and the valuation itself carries a huge bubble.

Whenever we talk about starting a business, many people always talk about the annual market value of millions and tens of millions. However, in fact:Not many startups can last more than three years, and many startups will go into debt after they go bankrupt, and the prosperity brought by startups is just an illusion, and we need to correctly understand the profitability of startups.

1. The annual income of a startup company is just a manifestation of vanity.

The reason why I say this is mainly because many people will have the so-called vanity during the entrepreneurial period, and everyone is generally more concerned about the valuation and future development of the enterprise, so they will use financing to further expand the enterprise. We need to know that not all businesses survive effectively, and those that do not survive will be heavily indebted. <>

Second, the income of a startup is nothing more than the so-called valuation.

Many startups don't make money in the early days, and many of the Internet companies we often mention are still losing money after 10 years of entrepreneurship. The main reason for this is that many investors will raise funds in the form of ABCD rounds, and earn financing returns in this way。Many startups don't focus on the company's business growth and profitability, but instead focus on corporate financing, which is not a good thing in itself.

Third, the debt situation of startups is itself very high.

When the startup is growing normally, we may not see the debt of the startup. However, when the business situation of the startup company is in trouble, the debt situation caused by the rapid development of the startup will be highlighted. It is also for this reason that we not only need to pay attention to the expansion speed of startups, but also need to pay attention to the basic corporate profitability of startups, and we do not need to speculate on startups through the so-called bubble, I think this entrepreneurial method itself is very ungrounded, and there is also a suspicion of capital speculation.

This is because many entrepreneurs in the process of starting a business, do not carry out the average investment distribution of property, will not avoid the investment risk of the enterprise, when the profit is made by one million, after the profit will be lax management, so a bankruptcy will be in debt.

Because there is a lot of investment, there are a lot of profits when there is a profit, and there will be a lot of losses when there is a loss, all of which complement each other, so the bankruptcy is full of debt.

Because there is a lot of operating capital in the enterprise, there will be bankruptcy if you are not careful, and in the case of bankruptcy, many projects need to lose money.

Because most of their funds are pledged to the company, and the company has a problem, they don't have much money themselves.