You remember to start a business now, don't start a factory.
Recently, have you often heard that factories have closed, large factories have closed down, and losses of one billion or two billion are normal phenomena, and losses of tens of millions are considered small. Why do so many bosses lose so much astronomical money? To be honest, now in this era of entrepreneurship, really I advise everyone not to engage in factories, in recent years, many factories are really better than death, many customers, including myself, have a hard time. I combed through the six pits where the factory was opened today.
The first pit, once you open the factory, you can't stop at all, the factory is like an engine and loses money as soon as it stops. Smaller factories have dozens of hundreds of people, and larger factories have tens of thousands. Think about how much it costs each month? Most of the bosses believe that they are anxious every day, and every day they have to run forward forever like a tiger chasing behind them, and they can't stop and will be eaten by it once they stop. It can be said that anxiety and depression are the norm, which is simply a marathon that runs forever.
The second pit, now the industry's profits are not at all in the factory, now the factory's profits can do three points is very good, many is a point, some are still at a loss, so really play the slogan of profit to management, every day shrunk head is to think about how to improve profits, how to improve efficiency, every place to pick. Therefore, I often hear people say that the boss picks very much, think about where the boss does not pick the profits from, the profits are all cut.
The third pit, orders are unstable. Instability is a dead end, as long as a few months and orders decline, it may take half a year or even a year's profit to fill it. So for large orders is to suffer from gains and losses, do it does not make money, do not do no orders, do lubricants for more than 20 years, every day is not running business, or on the way to run business experience is really never safe, do this month, next month orders where really do not know.
The fourth pit, put into a large amount. Usually to open a factory to continue to invest in large-scale, usually a lucky year to make some money, but to consider next year and the year after, the money earned and invested in the hardware, the maintenance of new equipment last year down, earned a bunch of broken copper, a bunch of inventory.
The fifth pit is like a tube machine, controlling hundreds of people. Once the scale of the factory is a little bigger, the number of people is large, and everything comes. What is trapped by emotions also have to do psychological construction psychological counseling, everything broken, absolutely exhaust you.
The sixth pit is that the larger the factory, the more dependent you have to be on big customers. What your big customer often does is to send huge orders, to take large orders to drive down prices, and to ask for a longer billing period. So the dependence on liquidity is like a shrinking ball. In the face of huge cash flow, this pain may not be so obvious to you.
Therefore, many factory owners can't stop losing money and are trying to bite the bullet and continue to move forward, hoping that next year's business will be better, and as a result, next year's business will often be worse until the cash flow breaks.
In the end, settle the account, lose an astronomical amount, listen to Sister Niu's advice, don't do it in death. So young people, don't drill into this sunset industry, don't let your entrepreneurship become a nightmare, you go to find opportunities that belong to your generation.
