1 thought market-how is the team?
Nowadays, in addition to fighting for capital, entrepreneurship is also fighting for creativity. A good starting point can often help entrepreneurs get off to a good start. Obviously, everyone knows that creativity and inspiration are very important entrepreneurial resources, but in the system of market allocation of resources, the allocation of mental resources is the most easily overlooked resource allocation. Neuroscience was the first to put forward this research proposition, and it was not until the past few decades that the new institutional economics put forward the concept of "conceptual market".
Everyone knows that "knowledge is power", but the most important thing in practice is the skill of using knowledge. Creativity comes from the human brain, and team is the most critical part.
Only by combining people with different skills into teams can the creativity or inspiration of a genius be transformed into an organized enterprise. Only by seeing the market of ideas and the value of teams from the logic of entrepreneurship can people understand that the core of modern enterprises is management value-"creative team".
△ Team is as important as success.
If the venture fails, only the industries that rely on policies to eat are not because of the team, and most enterprises basically die because of their poor team. Many domestic enterprises often say that "the difficulties of my enterprise are poor market, consumption transformation, etc.", but the core is that the team has not kept up with the needs of all aspects of the enterprise.
Everyone's resources and abilities are limited, and when every company may have development bottlenecks, the importance of the team will become more prominent.
2 Prospect Theory-What is a product
"Prospect Theory" comes from the research paper "Prospect Theory: Decision Analysis under Risk" by Daniel Kahneman (winner of the Nobel Prize in Economics) and amos tversky 1979.
Prospect theory belongs to a behavioral economics theory, which explains people's psychology of making decisions when there are risks and the results are unknown. The core is "loss aversion", that is, people are always more inclined to avoid risks than gain benefits.
For example, entrepreneurs often take it for granted that users will easily change the products they use now because their products are newer, faster and smarter. What this logic fails to take into account is that these prospects are risk-averse.
In fact, the user's default idea is not to change the product, because in the user's view, the "harvest" in your mouth is just a little profit, and you would rather stay in the current state than pay the energy and trouble to get this little profit.
However, if you catch a prospect problem that can't be solved by existing products, or make up for the original loss for users, then users will definitely be more willing to try your products. Users in this case are risk seekers, and they are more willing to try new things.
Therefore, entrepreneurs must ask themselves, "Are my early users the frontier users of the market" or "Are they themselves a" patch "for the diversified needs of the market?
△ Business strategy needs countless denials and choices.
3 scarcity theory-how to sell products
Economics has an important premise that the resources of this society are scarce, and the so-called economic exchange is based on the exchange between the scarce and the scarce, which is the so-called scarcity theory.
For example, it is normal to sell a glass of water for one dollar. If this glass of water costs 100 yuan, you will feel abnormal because water is not scarce. But if you walk in the desert, you will die of thirst. You have 10 thousand yuan on you. Someone told you that my water costs 10 thousand yuan. You'll die of thirst if you don't drink it. You will definitely buy it, because this glass of water is very scarce in the desert environment, but it is worthless in the city.
Now many entrepreneurs don't know how to price their products, thinking that the product pricing of enterprises is calculated from cost and profit. This is completely wrong. In addition to paying attention to the cost of your products, pricing is more important to pay attention to the scarcity of products in the eyes of customers. In other words, if your product is scarce, you can set the upper limit that the customer thinks he can pay; If it is not scarce, then your product can't sell at a good price at all.
△ Comprehensive consideration can find the most suitable way.
You can learn more about the scarcity theory. The task of business owners is to turn your products from scarcity to scarcity. Some through scientific research, some through marketing and packaging, some through industrial design, and some through market operation. No matter what you do, the ultimate goal is to make products that are not scarce scarce scarce and sell reasonable profits.
4 diminishing marginal cost-how to make products
The diminishing marginal cost is almost a universal law of every commodity, that is to say, with the increase of output, the increased cost will be smaller and smaller.
△ marginal cost and output curve
The simplest explanation is software. When you produce the first software prototype, your cost is the biggest, but when you copy it, the cost is very low. The greater the output, the lower the cost. What needs to be clear is that for general commodities, the decline is limited.
For example, Xiaomi's first-generation mobile phone pricing 1999 yuan. At that time, the cost of millet was higher than the selling price. Xiaomi sold to a critical point, the cost was reduced, and the same price earned money.
With the increase of scale, the cost of parts and components in IT industry has dropped very quickly, as has the traditional industry. The cost of the first batch of production will definitely be high, and it will gradually decrease after the production scale is large.
No matter what kind of enterprise wants to break through in the market competition, it will face a "price war", which requires that the enterprise must control the production cost, and to control the cost, it must make the production scale large enough, not only to reduce the production cost internally, but also to gain a certain market share externally.
abstract
The above four knowledge points are all around business model and team. In fact, no matter what the entrepreneurial direction is, we must return to the business model itself. If there is a problem with the business model, it may develop well in the short term, and once the problem is solved, it will be difficult to recover. Internet startups that seriously violate the business model of the most basic economic common sense are everywhere today.
When the company has difficulties, the first thing to reflect on is whether there are problems with the business model and team. When it is determined that there is no problem with the business model and there is no big problem with the team, what remains to be done is to stick to it, stick to it, and then stick to it. If there is something wrong with the business model or team, we must solve these two problems first, otherwise everything will be meaningless.