Eight common mistakes in the early stages of entrepreneurship

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The first misconception is to romanticize entrepreneurship. Now, go to any school and ask the students: “Do you want to start a business?” Over 50% of people would say, Yes! Many people think that starting a company, taking it public, and then traveling around the world on a yacht is really cool. In fact, starting a business is by no means romantic; it is a process full of hardships and setbacks, with traps everywhere, and success is an event with a low probability of occurring. Statistics show that less than 2% of companies manage to operate successfully for more than 10 years; giving up those unrealistic fantasies and focusing on taking things one step at a time will make things much better. Starting a business, in essence, means risking one’s life in the competitive world; the chances of failure are very high. Don’t think it’s a romantic endeavor. The second common mistake is to follow entrepreneurial idols. Many college students, when it comes to entrepreneurship, often talk about how Jack Ma was successful or how Chen Tianqiao was successful... as if by following in their footsteps, they too will be successful in the future. Actually, what I want to tell you is that their stories are the result of careful packaging by the media and PR; the reality is not like that at all. Moreover, the success of these people is impossible to imitate; in fact, no one’s success can be imitated. A phrase I often say is that there are many people as smart and hardworking as Jack Ma and Chen Tianqiao. Yet most of them fail. Success in business is a low-probability event; being smart and hardworking doesn’t guarantee success. Small wealth comes from hard work, while great wealth depends on fate; entrepreneurship cannot be learned. The third misconception is a preference for talking about entrepreneurial ideals. Many entrepreneurs have aspirations; they start businesses precisely because of this. This is a good thing. But sometimes it’s not good to keep talking about ideals; when faced with many setbacks, people tend to shout slogans, tell stories, and put on a motivational facade, as if they are doing something that will impact all of humanity. In fact, at the beginning of starting a business, the goal is to do business and make money – to survive first, and only then pursue one’s dreams and build a successful career. Before you succeed, don’t keep making grand declarations about what you’re going to do; wait until you’ve survived first, and then it’s not too late to talk about your ideals. Starting a business requires perseverance**, not momentary enthusiasm; there’s no need to put on a show everywhere – it’s better to focus on doing solid work. When you achieve success, learn from Jiangnan Spring and write some short poems; talk about your ideals in whatever way you wish. The fourth misconception is the theorization of entrepreneurship. Like management, entrepreneurship is essentially a practical activity; some people who want to start a business like to study various business models in order to find the best way to get started. I did just that; before officially starting my business, I analyzed no less than a dozen different business models, only to find that things were not at all what I had imagined when it came to actually putting them into practice. Your initial ideas will surely change when faced with reality; the key is to take action first and then make adjustments gradually. I often say: shoot first, then make adjustments; talk less about theory and just get it done. You can never be fully prepared for starting a business; it’s something that is learned through experience. So no matter how good your business model may be, start working on it first and then make adjustments gradually. The fifth misconception is seeking venture capital. When it comes to starting a business, many college students’ first thought is to write a business plan, and their second thought is to seek venture capital. In reality, the chances of those newly founded startups receiving venture capital funding are extremely low, especially from foreign venture capitalists. Many venture capitalists receive hundreds of business plans every day; some of them are thrown into the trash without even being read. And it’s not the 1990s anymore; you can’t just get money by relying on a business plan these days – you’d be better off trying your luck with the lottery. Many venture capitalists will say to hold onto your money for a few years first. Expecting him to vote for you from the start? Unless he really doesn’t understand investing, how could he possibly invest in you? The sixth misconception is making assumptions about the market. Many people start a business by first having an idea and then looking for a market. Often, they lack firsthand research on the market and instead hold preconceived notions about it, believing that their idea should be implemented in a certain way. A common way of thinking is that the larger the proportion of people who buy my product, the bigger my market is; in reality, however, the market is not like that at all. Some products that seem good receive a lukewarm response from the market, while some less quality products sell very well. This is something that even market research cannot explain, so it involves a lot of randomness. Usually, a project that seems very attractive on paper receives a very lukewarm response in the market, which is completely different from what was initially envisioned. The seventh misconception is a preference for engaging in resource integration. Many people with some educational background start businesses, and the two phrases they often use are “building platforms” and “integrating resources,” giving the impression of pursuing ambitious goals. They believe they have a good starting point, excellent ideas, and many connections, so pooling resources is a shortcut – even a way to achieve great gains with little effort. But what they don’t realize is that while you want to integrate their resources, they also want to integrate yours. Everyone is playing the game of integration; one misstep and you end up being integrated by others, essentially working for them for free. Resource integration requires strength; it’s not something that ordinary people can handle. If one still wants to engage in this activity, it’s better to adopt a more humble attitude, avoid trying to act as an integrator, and instead take on one of the other roles – this way, one’s own interests can be better protected. The eighth misconception is placing too much importance on so-called business connections. It should be said that having many acquaintances is a good thing; it gives you plenty of opportunities. Some people like to brag by saying, “I know so-and-so!” When I encounter such people, I like to ask back, “Does so-and-so know you?” Even if we know each other, so what? ! You should know that networking is just a stepping stone; it gives you an opportunity, but to establish a real partnership, you need to be able to provide the value he is looking for. In business, relationships are essentially based on the exchange of benefits; if you’re useful to someone, they will quickly become your friend, but if you’re of no use to them, they won’t help you! It’s certainly good to meet more people, but what’s more important is to do one’s own tasks well – that’s the key. Otherwise, one is just a socialite in the business world.