Wang Mi, founder of SynTao Venture Capital Network: Entrepreneurs should no longer just look down at the car and not look up at the road

Wang Min founder of SynTao Venture Capital Network

Small thoughts: I don't know if you have noticed a phenomenon, today's relatively good viability of this group of entrepreneurs, basically from the old owner came out, and then the self-reliant portal according to the cat to open a similar company or engaged in a parent genetic mutant company, no matter how to change still have the old shadow and taste. There is a time when they are still mixed up even if they have nothing to do with each other's academic qualifications and industry grand policies, and I do not accept rebuttal to this paragraph. Believe it or not, everyone looks at their own experiences, the examples of friends around them seem to have the answer, on the contrary, the highest probability of entrepreneurial failure is often a great creative across the industry. I would like to talk to you today about the two keywords of "replication" and "innovation".

The competition between today's enterprises is no longer limited to the competition between products, but rises to the competition of the whole ecological chain. An excellent ecological chain is subject to time precipitation and market considerations, which often requires high costs. However, tailor-made learning from successful operating models is definitely called "smart entrepreneurs". Looking at the field of venture capital, successful entrepreneurs want to make the enterprise bigger and stronger In addition to mergers and acquisitions in the middle and late stages, the most important thing when the project is ready to be established is to apply the excellent operating model to their own projects reasonably, and then combine the advantages of founders, team members, and investor resources to make differentiated competitive barriers, which is the best strategy to reduce the cost of exploration, and blindly follow the trend blindly, doomed to fall to pieces.

1. Why copy?

Not every entrepreneur has a clear goal and strategic layout, and often most of them start a business out of a whim and are not ready. The initial prototype of the enterprise is like a small sapling, which has to go through feng shui and rain to become extra strong. So, how can entrepreneurs make their business strong?

After fully assessing their own strength, the simplest way is to emulate the head enterprises of the same track, also known as benchmarking enterprises. This practice not only allows start-ups to find a way forward, but also timely discovers the gap between them and the benchmark companies, as well as the shortcomings of the company itself, to achieve overtaking in curves, and to come out on top among many companies of the same type. During this period, entrepreneurs can learn the business model of the benchmark enterprise and give full play to the future development of the enterprise.

When choosing a benchmark enterprise, it is best not to touch those isolated cases, and it is recommended to choose a benchmarking enterprise in the same industry. Because the benchmark enterprise is analyzed in detail by professionals as a classic case. Entrepreneurs can easily find their business model to copy, and then follow the path of "setting standards, benchmarking, reaching standards, and creating standards", summarizing mature experience and wisdom into their own springboard.

Second, how to copy?

Under the premise that the project's own products and services are already strong enough, and all parties have performed well after a small sample market test, I would like to focus on the business model, the business model cannot run, then the whole car will be easy to destroy the car and die.

First of all, the business model of the selected benchmark enterprise must be verified and recognized by the market. "Business model" refers to what a business wants to do, how to do it, and how to make a profit. Only a good business model can create a "copy company" that is as competitive as the benchmark company. Not all business models can be copied, and even if unformed business models can be profitable, they are still groping in the short term, and the value of overall learning is not likely to pay attention to segments. Among them, for the synergy industry, the business model will be more easily copied, such as Wal-Mart and Carrefour abroad, domestic Gome and Suning and other companies, they all adopt the "unified purchase and distribution" business model, thereby reducing costs, rapidly increasing market share, and successfully creating a large sales pattern.

The copied business model must be "localized". Whether it is domestic or foreign, excellent business models must "follow the customs of the countryside", otherwise it is easy to "disobey the soil and water", and then "die". Due to The vastness of China's land, the living habits of people everywhere, as well as their consumption cognition and consumption ability, vary greatly, which leads to a change in corporate culture in order to conform to the development trend of the local market. When mergers and acquisitions are involved, it is especially important to make employees everywhere accept the copy mentality. Therefore, the recruitment of localized managers to promote a new model, so that specialization and localization are combined, can accelerate the process of replication. At the end of the transition period, through corporate culture and institutional recognition, I believe that these small problems can be solved.

The management team must be "professional". The process of replicating a business model is not only a standardized promotion process, but also a process of knowledge transfer. Its degree of specialization is very high, it is to turn the original model into knowledge, collect, share, transfer, make it more systematic. In this process, there is a profession that is particularly important, which is "professional manager". The position takes over the transformed business and follows the process. Excellent professional managers not only have rich management experience and are familiar with the replication process of business models, but also accurately find the same core values as the business model and the transformed enterprise.

Why innovate?

Some entrepreneurs have found benchmarks and learned how to replicate business models. However, they still did not succeed, why is this? In order to save time and effort, one-click copy and paste, indeed, can. However, they ignore one of the biggest problems, that is, the attributes of different enterprises are different, and blind replication is likely to cause serious homogenization, vicious competition, and finally face the risk of bankruptcy.

If copying business models is the only way for entrepreneurs, then innovation will make companies invincible in the market competition. Innovation determines the future direction, scale and speed of the enterprise. The 14th Five-Year Plan puts forward new requirements for adhering to innovation-driven development, indicating that innovation occupies a central position in the new journey of comprehensively building a modern socialist country on the mainland. The continuous innovation of enterprises can not only improve their market competitiveness, but also promote the diversification of China's economy.

Fourth, how to innovate?

Above I talked about the importance of the purpose of enterprise innovation for the development of enterprises, and then we talk about the key points that need to be paid attention to in the process of innovation.

First of all, the top level must have a sense of innovation. The founder of a successful company is not a conformist person, he must have a strong ability to innovate. It should be noted that the early stage of innovation requires a lot of investment, but also to be prepared for no return. Correct mentality, tolerate failure, and encourage innovation. Otherwise, it is futile to stick to the rhetorical innovation. At the same time, senior management needs to encourage employees to make rationalization suggestions. Even if the founder and senior management are very wise, but only to achieve full innovation, in order to drive the entire enterprise forward, and there are mountains outside the mountain, there are people outside the people, many masters are around us, especially the successful people of the practical school need to pay attention to, when there is a chance to ask for advice, we must put down the shelf and ask for advice.

It's worth noting that don't over-innovate. The right innovation can make a company do more with less, but once it goes into a wrong area, it will lose everything. I advise entrepreneurs not to be too early, too fast, too innovative. It's like the construction industry, where buildings can easily collapse if the foundations are unstable. Therefore, if we want to rationalize the excellent model, experience and wisdom in the enterprise as much as possible, we must take the first step, and then consider the level of innovation. Too fast innovation will lead to the market can not respond in time, both waste of manpower and material resources, but also consume a lot of social resources. Excessive innovation, the pursuit of novelty, has no meaning, not only will not accelerate the growth of the company, but will drag down the industrial chain layout.

Successful entrepreneurs are not utopian, they are good at tapping their own competitive advantages, combining excellent business models and copying them into the operation of the entire company. Not only that, they also have super innovation ability, the courage to accept the reasonable opinions of employees, innovation in technology, combined with market demand, continuous polishing of products, and finally lead the field with innovation. SynTao Venture Capital Network has been established for 3 years, after a while we will soon launch a character interview brand about the doer, please pay more attention to it, look forward to exchanging experience and lessons with more excellent doers, and we will grow together in the future.