A friend who started a business has been in the dilemma of "finding money to pay off debts" in the past two years.
A few years ago, he was optimistic about the development prospects of the industry and believed that his company was "value", and then he tried hard to find money everywhere. I borrowed more than 100 million yuan from banks, and raised tens of millions from investors, shareholders, private loans, etc.
After raising funds, he changed to a large office space and recruited many new employees, including industry elites, and of course the salary was also high. The research and development and marketing of multiple product lines are launched simultaneously, and TO G, TO B, TO C are moving forward together.
Good times didn't last long, and each product line was still in the loss or in the initial stage, and the epidemic is coming. There are too few business, too many expenditures, and new financing and loans cannot be obtained. Even the originally most promising local government's policy of attracting investment has failed.
In the past two years, he has been looking for money everywhere, borrowing new debts to pay off old debts, and demolishing the east and west walls to repair the west walls. As a result, the holes are getting bigger and bigger, and the principal and interest are owed more and more.
What is particularly terrifying is:
1. Until now, he is still reluctant to cut off a new business line that has long-term losses and has no hope. He also fantasized that as long as one of the business lines is completed, it can support the company to move forward. He continued to retain every new business line, and the backbone tried his best to keep it, although he had delayed or even owed wages.
2. The product research and development progress of each of its product lines remains in the 1.0 version era, that is, the era of the first generation of products. No product line has updated and complete second-generation or third-generation products. He is constantly drawing pie for others, but his action and product updates are very backward.
3. He did not focus on his main business, nor did he focus on the focus on a certain product line. Now it is still a development of "letting go with the flow" of various product lines.
4. Every time the company has some sales repayment, or borrows from outside, they will directly repay bank debts, or borrow from investors and shareholders. Anyway, the money raised is not used for product research and development and production, nor for market and business.
5. Every time, he still makes a statement: the bank is so forced to force debts! Interest must be returned | Shareholder loans and private loans must be returned; others have sued us and must pay them off, otherwise the company's account will be frozen...
Things like this have happened too many times. Now, employees of friends' companies have chosen to lie flat, and they have been constantly leaving from grassroots employees to core executives.
My friend was still very aggrieved: he was already looking for money very hard. Why don’t everyone understand him?
In fact, my friend made a big taboo in entrepreneurship:
From the beginning, short-term difficulties (repaying bank debts and other loans) have turned short-term difficulties into a long-term difficulties, and it is always around "finding money to repay debts, borrowing new debts to repay old debts, and rolling more and more, endlessly."
He forgot the most important point:
Startups are always the most important position in products and businesses. Doing products and doing business well is the long-term "job job".
Friends should cut the mess quickly from the beginning, negotiate with banks and creditors, and repay principal and interest in installments. Then, focus on resources and the main business, cut off the product lines that are diversified, unprofitable, and long-term losses, do a good job in the products and businesses of the main business, and gradually return to normal.
Many entrepreneurs make the same mistake. I always like to imagine short-term difficulties as long-term difficulties, and for this reason, I "trouble myself" and trouble myself, and I am troubled by mediocre people.
For example:
An old employee who has worked for five or six years has left the job, and entrepreneurs will doubt themselves. Is there any problem with their own management? Have you done something wrong?
The management has resigned. On the one hand, entrepreneurs will think that the company's reward and punishment assessment needs to be strict, and on the other hand, they will also think that the company lacks corporate culture? Should we strengthen our daily training and meeting brainwashing for employees?
The company received a letter from the font company that the company's official account and official website had their paid fonts. If there was any infringement, it would either negotiate compensation (the right to purchase the copyright of fonts at a high price) or threaten to sue. When entrepreneurs encounter this situation, they wonder if they want to find a full-time or part-time lawyer? Even a legal department? The question is, is your company that big? Can you support a team of lawyers? Moreover, if you involve suing a lawsuit or receiving a lawyer's letter, many times, if you don't argue or delay or perfunctory, it will pass. Because many font companies' lawyer letters are outsourced to third parties, "If you can catch one, you will be one." If anyone is willing to pay, the other party may be arrogant and the price will be higher; if you ignore the other party, the other party may be in vain.
…
The process of entrepreneurship has never been smooth sailing, and all kinds of difficulties and setbacks will occur.
Entrepreneurs must be firm in their minds.
Entrepreneurs, when encountering difficulties, face them, solve problems, do not be afraid, and do not artificially imagine short-term difficulties into long-term difficulties, and turn urgent matters into long-term important things.
Entrepreneurs always firmly do products and focus on their business. If they have money, they have strength and voice, and can deal with various difficulties more calmly.
Xiongxiao Entrepreneurship Consulting: Focus on first-time entrepreneurial consultation and novice entrepreneurial consultation. More than 20 years of practical entrepreneurial efforts, serial entrepreneurs.
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