The indirect reason is that Li Ming didn't make a correct budget for the amount of start-up funds before opening the business, and at the same time lacked a shrewd decision on how to use the funds, and didn't understand that every yuan of loans must be used to maximize profits. Talk about ostentation and extravagance, pursue output value, and do not understand the basic knowledge of financial management). Such a promising and profitable enterprise will be ruined. The enlightenment we can get from this is that even the best business will go bad in the hands of bosses who don't understand management.
Second, what should Li Ming do?
Seeing that it is profitable for others to raise chickens, Li Ming certainly wants to engage in this business. But it should:
1. Go to work first. When you work, you can do research, watch and study, or participate in entrepreneurship training. (
2. Carefully estimate the start-up capital demand for business opening, budget the use of funds, and never spend money or borrow more money.
3. Make a business plan (business plan).
4. Start small and accumulate experience.
Original title:
Li Ming has always wanted to run an enterprise to do wholesale chicken business because there are many farmers around his town. He lives with his mother, who is very supportive of his business. She asked Li Ming to apply for a loan from the bank with the house at home as a guarantee.
As soon as Li Ming got the money, he began to make preparations. He bought equipment and raw materials for the enterprise, rented a henhouse near the town, bought a computer, modern refrigeration equipment, a brand-new van, and drew a sign of a chicken farm on the door of the van. Li Ming told his mother that sophisticated equipment can help enterprises establish a good image and help more customers. Li Ming immediately threw himself into his busy work.
Li Ming has always wanted to run an enterprise to do wholesale chicken business because there are many farmers around his town. He lives with his mother, who is very supportive of his business. She asked Li Ming to apply for a loan from the bank with the house at home as a guarantee.
As soon as Li Ming got the money, he began to make preparations. He bought equipment and raw materials for the enterprise, rented a henhouse near the town, bought a computer, modern refrigeration equipment, a brand-new van, and drew a sign of a chicken farm on the door of the van. Li Ming told his mother that sophisticated equipment can help enterprises establish a good image and help more customers.
Chicken is in great demand. He works day and night, and customers recommend him to their friends. Unfortunately, the cash paid by Li Ming is very tight. By the end of the year, he was seriously short of cash and could not repay his bank debts.
Therefore, the bank stopped paying and demanded to repay all debts. Li Ming has to announce the production of chickens. The bank began to auction Li Ming's assets to pay off his debts. The first assets to be auctioned are cars and computers, but there are still a lot of debts that cannot be repaid. It seems that Li Ming's mother may lose her property.