When many people are starting a business, they borrow from east to west, and they have a hard time getting together money, so they make the office bigger, the staff is more, the business has not yet started, but the money has spent a lot!
Moreover, the larger the investment at the beginning of the business, the larger the office, the more personnel, the greater the cost!
Many bosses think that when they first start a business, they must find people with rich sales experience in order to get the business up!
As a result, a lot of sales experts were recruited, and as a result, this one cost money, that one cost money, and everything cost money!
However, because the way to make a profit has not yet been found, the money is spent, but the money cannot be recovered! Every day is in a state of loss!
If you lose money every day, people will be anxious!
Moreover, it will bring more things, because it is easy to ask God, but it is difficult to send God!
Recruit a lot of people, because the company's operating costs are large, and then there will be layoffs, many times will bring legal risks.
For example, employees who have been laid off apply for labor arbitration and make claims!
Especially in this stage of the epidemic, the business of many enterprises has been affected, funds cannot be withdrawn, and performance has declined.
And the company's fixed costs still have to be spent, and perhaps the revenue that comes back is not enough to spend!
What does that mean?
In the current business environment, to achieve performance, the difficulty is increasing, and the competition is becoming more and more fierce!
Not only can recruit salespeople to improve performance, nor can it just make the company big enough to improve performance!
This kind of thing is not an isolated case, but a lot of people do it!
What is particularly strange is that many bosses think that they can't find excellent sales masters, so the business is not good, and the revenue is so bad!
Especially the boss who has money in his hand, or the boss who has successfully financed, the more dares to spend money.
I thought that if I built a big office, made a lot of employees, and made a few powerful masters, then the company could do the performance and make the performance soar!
In fact, this is just a matter of course, reality will hit the face!
It's easy to spend money, once you spend it, after spending it, you have to spend more money!
It's not easy to make money, it's too hard to collect money! Entrepreneurs must keep this in mind!
Because there is only one point wrong in starting a business, or if you meet a black swan, it is easy to make the company suffer a disaster!
If the company wants to survive, it must think about every penny spent!
Of course, anyone wants to save money, because you don't have to spend the money, you won't spend it, which is brought about by insufficient business ideas!
So what should I do?
First: strictly control costs and increase revenue
The biggest cost of the enterprise is the labor cost, because the personnel are not well managed, not only to spend money on employees, but also to spend money to solve problems, but also to bring income.
Then it is necessary to calculate the input-output ratio of personnel, and we must kill the loss-making employees!
Moreover, labor costs are not only wages, but companies also have to pay social security, taxes, and fixed costs.
If an employee gets a salary of 10,000 yuan a month, the company may have to spend 15,000 yuan in costs.
These hidden costs, many bosses are not seen, if the employees mess things up, then, will bring more losses!
Therefore, the company must streamline the personnel, rather than indiscriminate, put the unsuitable people, as soon as possible to invite them to leave! to control the company's costs!
Because what is saved is profit! The company has profits to survive!
In terms of increasing revenue, many companies have desperately burned advertisements, and as a result, they have come to a little customer, bought once, and then they will not come.
Therefore, you can't put this advertising cost into the pit, startups can do more self-media, focus on the industry, test and test, small team test.
Find a marketing path that can achieve small input and large output, when this profit point is found, you can enlarge the investment in advertising, at this time, spending money is to make money!
Don't advertise for the sake of advertising, startups don't have that much money to advertise, especially when you're just starting a business, you can't burn money to advertise.
Because advertising only boosts the company's profit point, amplifies the company's profit point, if our profit point is not found, the money will be adrift!
Second: low salary and high commission for sales staff
The basic salary of grass-roots employees is paid according to the local market level, in order to maintain the daily life of employees, and the basic salary is a must.
However, the basic salary must not be paid too high, and the high basic salary will raise lazy people! Especially salespeople, that will lose the motivation to do performance! Companies must be motivated with higher commissions!
Middle and senior managers can use performance appraisal plus option incentives, and the basic salary can be selected.
Of course, the basic salary can be selected, if the base salary is high, then, there is less option incentive, or simply do not want to high the base salary, let everyone rush to the performance and options!
Because the base salary is high, if you can't get back the money in the market, the company can't survive!
Therefore, the startup must compress the company's fixed expenses, especially when it is just starting a business, the company's cash flow and funds are seriously insufficient.
We must use the company's equity and options to motivate everyone, use performance appraisal to motivate everyone, and let everyone collect money in the market!
The money recovered in the market is the positive money!
And the company's equity is the most scarce in a company, as long as the company's performance is good, the company's shares are worth a lot.
This is to use the current short-term loss in exchange for the future excess return, only those who dare to do so, is your partner, is the person who fights together!
Especially in the case of partners, if partners want both high salaries and high shares, then such people are not starting a business, but speculating.
Because he can retreat at any time, this will put the company at serious risk! Because when starting a business, you will definitely encounter countless difficulties, and such speculators will definitely grease the soles of their feet!
Therefore, before we start a business, we must negotiate this rule of penny, let partners, employees, make a two-way choice, meet the regulations to come, do not meet the requirements do not want to be together!
Third: turn fixed costs into variable costs
The most important thing in starting a business is to survive, not to die to face the guilt!
Especially the tall venue, rent storefront These expenses are completely unnecessary, because now is the Internet era, can save the province, when the enterprise up a certain level to talk about!
There are also goods, as little as possible large-scale procurement, prefer to purchase a little more expensive, but also to purchase a little less, so that you can make yourself have more cash in your hands!
In terms of receiving payments, we do not do the advance business, we have to think about how much money we have in our hands, how much money can we afford? In case you can't get it back in time, and you don't even keep the principal, is this called doing business?
Many bosses because they see the high price given by others, and then want to make more money, the result is to throw a lot of money, resulting in money can not be recovered, the company directly into the vegetative state!
Entrepreneurship is to recover money from the company, not just spend money, advance money, if only by spending money, who will not do such a business?
Having money in your hands is king!
Something:
In fact, the reason why these have not been understood is because the business philosophy is not enough, and the business is to have small inputs and large outputs, rather than large inputs and small outputs, or no output!
Everyone starts a business, in fact, it is well thought out, can not spend the money, will not spend, but why spend it? Do you still think you're right? The money that should be collected is not collected, and what should not be done is done?
This is what Yu Dao said, too many people do not understand the concept of business, the risk control in the business, and the profit space is not broad enough!
Therefore, in the limited profit space, no matter how much money you spend, you can't make money!
This article is excerpted from: Yu Dao said that the business public number!