Issues you should pay attention to regarding entrepreneurial funds

Entrepreneurship is when entrepreneurs and entrepreneurial partners optimize and integrate the resources they have or can possess through efforts, thereby creating better A process of great economic or social value. Entrepreneurship is an act that requires the entrepreneur and his entrepreneurial partners to organize business management, use services, technology, and equipment operations to think, reason, and judge. Below are the issues I bring you should pay attention to when it comes to entrepreneurial capital. I hope it will be helpful to you.

There are entrepreneurial projects that do not require funds or have little demand for funds. However, more financial guarantees will definitely be beneficial and harmless to your business. The more funds you prepare, the more room you have for maneuvering. The bigger it is, the higher the chance of success. Therefore, it is also necessary for entrepreneurs to prepare sufficient start-up capital and use it rationally.

First of all, a start-up capital must be prepared. Without funds, nothing is possible. The source of funds can be planned through various channels, such as own funds, fundraising, loans, and partnerships with others. The more sufficient start-up capital the better. This is because you may encounter difficulties with cash flow after starting your business. Especially when you are just starting to do business, this possibility is greater, and your ability to plan funds while operating is far inferior to that of businessmen who already have a certain foundation. If the preparation funds are not in place, your just-started business may be ruined by a negligible amount of funds. Therefore, it is necessary to fully consider the financing of opening funds, reserve and use them in a timely, appropriate and moderate manner, make overall arrangements for the use of funds, and strive to minimize risks.

Liquidation of your own movable or immovable property is the main and most reliable source of funds. In the past, wealthy people kept their money at home or even hid it in cellars, lest it be exposed. Nowadays, people turn deposits into banks and earn interest. From the perspective of management, the appreciation of money earned from interest alone is too slow. If money needs to be turned into capital, capital can appreciate rapidly. Capital can only increase in value when it is in motion, and funds invested in production and circulation can make a profit. Capital can transform value forms and absorb talents, technology, information, raw materials, and equipment. If you find a suitable project after careful selection and have confidence in the technology, market, etc., then decisively invest the money on hand in the project that you have fully demonstrated and selected. But one thing should remind you to keep some reserve fund in case of unexpected events. As the saying goes: eggs cannot be put in one basket. You can set aside some money to purchase national bonds and savings for emergencies in family life and business, and also to enable you to deal with things calmly.

If you don’t have enough funds, you can raise funds from relatives and friends, or you can mobilize other bosses to invest. But if you want to convince others, you must have a complete set of detailed truth plans and feasibility arguments. Coupled with your personal charm and verbal persuasion, you can convince others to invest. You must promise and realize the risk sharing, share the benefits equally, and use other people's money conscientiously and prudently. You would rather suffer a loss yourself, but you must also ensure that you deliver the investment returns to others as agreed. Only in this way can you have credibility, and others will have a steady stream of money. We will lend you money or continue to invest in you. When you are in trouble, everyone is willing to help you. Remember that "it's easy to borrow and repay, and it's not difficult to borrow again." We must pay attention to the word integrity in life and business.

If conditions permit and funds are insufficient, you can also get a loan from a bank. Usually, loans require three conditions: first, there is real estate as collateral; second, the project must be attractive; and third, a good relationship with the bank must be maintained. If you have real estate such as a house, car, etc. as collateral, it will be much easier to get a loan. However, even if you do not have real estate as collateral, you are not absolutely unable to get a loan. The investment prospects and benefits of the project are the primary factors that affect loan decisions. Banks must conduct technical and economic feasibility studies on loan projects. To this end, you must carefully select projects, collect a large amount of information, consider various possibilities, choose the best or most satisfactory investment plan, and increase your confidence in bank loans. The more you know and are familiar with someone, the higher the trust will be and the easier it will be to persuade. It is crucial for operators to maintain good relationships with people in the banking community. When applying for a bank loan for the first time, the amount should not be too large, otherwise it will be difficult to succeed.

Start with a small loan, repay the loan on time each time it is due, and gradually gain the trust of the bank before you can obtain a larger loan.

Entrepreneurs should note that they must be cautious when dealing with loans. Entrepreneurs must ensure that they can repay principal and interest on time, because this matter is related to the entrepreneur's business credit. If you lose your business credit, your business will be sentenced to death. Therefore, rational use of investment is a required course for entrepreneurs. Entrepreneurs must have a strong awareness of risks. While ensuring project investment, they must retain sufficient working capital to reduce risks as much as possible.

Extended reading

1. Who are you?

Entrepreneurs often don’t know who they are—what do you want to do? What are you suitable for? What resources do you have? Before starting a business, entrepreneurs must be clear about what they have. How far is the gap between what you have and the entrepreneurial goals you pursue? How many more difficulties are there? In the process of providing some entrepreneurial advice to consultants, we met many entrepreneurs, either a web designer, a newly graduated clerk, or an unemployed person whose family has money and wants to do something big. Without understanding their actual situation, they vow to start a business and become XXX (generally super successful entrepreneurs) because of an idea, a little suggestion from a friend, or even a momentary impulse. Therefore, we suggest that friends who are preparing to start a business must first understand who you are.

2. What is entrepreneurship?

When I write about this topic, some people may think that I am being pretentious here: How can entrepreneurs not know what entrepreneurship is? Ha, what I want to say is that many of our entrepreneurial friends started desperately on the road to entrepreneurship based on a momentary impulse, a good idea, or a sum of funds. What is entrepreneurship? It is a systematic project. As a boss, you have to consider a series of things such as people, finance, materials, import, sales, inventory, competition, market segmentation, positioning, management system, financial control, exit mechanism, budget, etc. In the early days of starting a business, maybe even one mistake in your location selection can make you destined to be a failed boss, and you are destined to lose millions. I don’t mean to emphasize the difficulty of starting a business here. I just want to tell my entrepreneurial friends that starting a business is risky, and you need to face it rationally, and you need teamwork to help you.

3. What do you need to prepare?

Friends who want to start a business must have one or more certain material or spiritual wealth in their hands, but this is not enough. You have to think about what you are not familiar with. Yesterday, a friend asked me what preparations I need to make to start a business. I gave a rough summary: Entrepreneurs who want to start a business must first prepare the following points: A. A sufficient and feasible project plan. Your business plan must be comprehensive and feasible, and it is best to have the approval of financial experts and consulting experts.

B. There must be a clear business scope and core competitiveness. This is to say a positioning issue. What does your company do? Compared with similar competitors, what is the core thing about your company that others cannot do? Of course, some entrepreneurs think that I can just learn from other people’s successful businesses. The market is very big, so we don’t have to worry about the lack of market stability. In fact, when there are obvious winners in the market, it means that the market is close to saturation. The later stages of development and maturity are not far from the recession period. Companies that can become successful in this market have their obvious advantages and core competitiveness. As a start-up, you may be lacking in some aspects, such as , you have funds, but no technical strength. With technology, employees may lack experience. With experience, the market may be difficult to enter, or the cost may be too high and there is no need to enter. You must know that many mature markets now have Is it capital intensive or technology intensive? At this time, you must think rationally.

C. The experience of being a boss. When you are at the top of the mountain, you can see all the small mountains. When the boss is on the top of the mountain, it is the mouth of the river. When entrepreneurs come here, their horizons are suddenly broadened. At this time, it is easiest to lose direction.

Therefore, I agree that it is best for entrepreneurs not to jump directly from being an ordinary worker to starting a business (the entrepreneurship I am talking about here refers to setting up a company to operate a business). There must be a process, such as being a manager or vice president for a period of time. , which is more conducive to entrepreneurs' entrepreneurship. Many bosses were originally market talents, and many bosses were originally technical. It doesn't matter. The key is that you must understand that the main job of being a boss is management, rather than asking you to do one thing well, such as placing an order. Writing a program may be what you were most proficient in before, but after starting a business, especially after it reaches a certain scale, management should be what you are most proficient in. You choose to be the boss, and from then on you are insulated from the reputation of an expert. At this time, you must learn to grasp the essence of things and the lifeblood of the enterprise. Maybe many entrepreneurs say that I have read many stories or books about successful people and have "rich" experience, but I tell you, they are wrong, because theory is used to guide practice, and you have not practiced it. Without mastering and applying the process to turn those theoretical things into your own person, it will be useless no matter how much you read. In addition, many successful people have very individual successes! Their success is determined by their specific environment, the entrepreneur's specific personality, and their specific journey. In today's ever-changing market, many successful cases are not imitable, so I suggest that everyone look at success. By reading relevant books and listening to the stories of successful people, you must learn about their psychological will and psychological process of starting a business, rather than their specific process of starting a business, because that cannot be copied directly. Therefore, there is only one way to gain experience, which is practice.

The only meaning of books is to inspire.

4. View entrepreneurship from a dynamic perspective

Philosophy has two pairs of categories: absolute and relative, movement and stillness, which means there is no absolute truth, only relative truth. It can also give us a lot of inspiration when used in entrepreneurship. It tells us to use a dynamic perspective to think about entrepreneurship. For example, when you think about the positioning of your company in advance, you can first base it on your past experience and field. When you get a strategy book that still smells like oil, don’t think that this thing is your company’s unchanged creed for 20 years. Society is developing, information is richer, and the dissemination and collision of information are becoming more and more important. Quick, at this time, we have to learn the competitiveness of small boats - easy to make a U-turn. In a rational state, we have to learn to change, from quantitative changes to qualitative changes in entrepreneurship, so when faced with entrepreneurs looking at the status of the enterprise from a static perspective, I His point of view is "In this world, the only constant is change!". Entrepreneurs must learn to think, summarize and plan diligently. Only in this way can we remain invincible.

5. How much effort are you prepared to use to make decisions?

Decision-making is just making a decision. It’s not a big deal. After you rationally formulate your plan and schedule, please don’t think too much and just make a decision directly. There are many friends who start a business, and I agree with their cautious attitude before making a decision to start a business. Yes, there are many things to consider when starting a business: you can no longer wait for the salary on that day of the month, and you have to rely on your own money to support yourself. And the group of people who follow me, maybe I will be afraid of seeing the monthly bills from now on... But I don’t agree. After rational thinking, I decided that I am a friend suitable for starting a business. At this time, all I need is courage. Now, "the wind is blowing and the water is cold", entrepreneurship is to stimulate one's potential and challenge oneself. A real entrepreneur is afraid that there will be no difficulties. If there are difficulties, he can hone himself and be better able to accomplish great things. Therefore, starting a business is determined Just do it! !

6. Have you left yourself a way out?

Are you afraid? No, I'm not afraid. Entrepreneurs must have a courageous attitude at the beginning of starting a business, but they must also rationally consider fallback options and exit mechanisms. Because any investment is risky, this is a truth. So before starting our own business, we should try to think about the possible bad situations and the bad aspects. After thinking about your exit mechanism, concentrate all your energy on starting your own business.

7. Rely on the strength of everyone

The team has the greatest power, because no one is perfect and everyone has flaws, but through the cooperation of the team and the collective, good complementarity will be achieved The effect is to minimize personal shortcomings and promote the strengths of everyone in the team.

8. The most important thing?

In fact, everything doesn’t matter, what matters is yourself. Because only you can create, change, and overcome difficulties. As an entrepreneur, what is the core state? I think it is subjective initiative, that is, self-awareness, entrepreneurial awareness and firm belief. Your own power is infinite, this is proof, because human beings have transformed the earth from an inconspicuous little animal into what it is today, which illustrates this truth. I believe that as long as an entrepreneur persists and knows how to think and execute, he will eventually succeed. ;