As the operators of small and medium-sized enterprises, while enjoying the preferential policies and encouragement policies given by the state, they also need to take effective management countermeasures in light of their own actual conditions. In my opinion, the main characteristics of small and medium-sized enterprises are small scale, weak anti-risk ability and difficult to form core competitiveness. Faced with this actual situation, SME operators need to understand the truth that "less is more" and apply it to their daily operations.
Business category "Less is more"
Usually (we can't generalize), the categories operated by SMEs are not as many as possible, but as few as possible. Without them, it is easier to make fine products, occupy niche markets and expand related fields. Talking about the experience of doing business, Shi Yuzhu also mentioned: "One less product, one less."
In the business category, "less is more", to put it bluntly, is to create your own explosive products. Many marketers propose to create one or two explosive products for drainage, and then launch one or two truly profitable products to create a cash cow. There is certainly some truth in this statement. In my opinion, forming your own explosive products is the first and the key. With the outbreak, there is a foundation, and all dreams are possible.
Here, I will take the tax service agencies that you are likely to encounter when running a business as an example. Generally speaking, tax service agencies can provide consulting or certification services for all tax issues of customers. In other words, tax service agencies do not choose customers or fields. Such tax service agencies abound, and it is difficult to make characteristics and strength. A tax service agency I know has taken a different approach and selected one of the many taxes, that is, land value-added tax. As the main attack, we will build the land value-added tax clearing service that real estate enterprises attach most importance to and need most into a fist product, with key products and customers. After years of deep cultivation, the income of this service product alone has outperformed more than 80% tax service agencies in the market.
Capital investment "less is more"
At first glance, less capital investment is more, how is it possible! In fact, I'm not saying that we can reduce the capital investment unprincipled, thinking that the less the better, but through the scope and standards of actuarial capital investment, enterprises can operate normally as soon as possible at the lowest cost, and form hematopoietic function through operating cash inflows, thus balancing cash inflows and outflows, and then generating cash surplus.
For example, if you buy large-scale fixed assets (whether it is large or not depends on different enterprises' own situation), you can reduce the original capital investment by leasing, and use the operating cash inflow to pay the subsequent expenditure on the use of fixed assets, so as to minimize the capital investment.
Use capable people, less is more.
In terms of employment, key positions and key departments need smart and capable people to be responsible, and the functions of other non-key positions can be completely solved by purchasing services. There are many outsourcing service organizations now, and the procurement cost is much less than that of self-employed employees. Moreover, the legal risk of enterprises in employment is also smaller.
Many technology companies use this aspect more. In many companies, only a few key positions in the technical department recruit employees through independent recruitment, and other non-key developers in the department purchase services provided by others through outsourcing. This not only reduces the costs of wages and social security, but also reduces the pressure and legal risks in company management.
Concentrate on research and development, less is more.
This has two meanings. First, if small and medium-sized enterprises want to obtain core competitiveness and long-term development ability, they need to invest funds and personnel in R&D and concentrate on R&D; Second, don't attack from all sides, don't do more, and put limited resources into projects that are more likely to succeed and are expected to produce more economic benefits. Comparatively, the latter is more important. If an enterprise wants to develop in the long run, it needs to seek truth from facts and not aim too high. There may be some R&D projects with great importance and economic benefits in the future, but the investment is large, the R&D cycle is long, and the probability of success is low (at least for now). Such R&D projects cannot be regarded as current key projects (in time, these projects will become key projects with the development of enterprises).
The essence of "less is more" is to focus on the goal.
All the behaviors and energy of successful entrepreneurs are closely around the established goals of the enterprise, and success lies in focusing on the goals. The essence of "less is more" is to focus on the goal. It means that you can get rid of all (yes, all) things you can do but don't have to do and focus on what you should do.
Focusing on goals is the only way to achieve Excellence. Small and medium-sized enterprise operators will succeed if they can narrow their goals as far as possible, understand the essence of "less is more" and focus on one place.