Startups can not make money but must have cash flow!

Abstract: cash flow is not profitable, but to do good cost control, such as financing 2 million, if the cost of each month is 100 thousand, you can live for a long time; if you want to spend 1 million per month, but next month but also financing 10 million, financing to enough funds to support business exploration can.

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tube good cash flow, do a good job preparing for a long time

startups have two of the most common problems.

first, the control of cash flow. An enterprise does not profit in a certain period of time will not lead to its death, but the enterprise account money will certainly lead to its death.

cash flow is not profitable, but to do good cost control, such as financing 2 million, cost per month is 100 thousand, you can live for a long time, there is enough time to explore if financing; 2 million, to spend 1 million per month, but next month to finance 10 million, with a strong financing capability, financial to get enough money to support the business of exploration can; or is soon to have income, to achieve positive cash flow. These are the cash flow method to ensure that enterprises live.

in my own business and investment in the process, Mr. Sun Taoran founder of Kara group shareholders Beijing North financial help and great influence on me. Sun Taoran said that for start-up companies, must go through this process, is to find someone willing to spend money to buy the product, and find ways to sell the product. This time is very long, at least two or three years, or even four or five years are possible, the completion of this process is that enterprises can have a production value of one hundred million and a profit of ten million.

second, entrepreneurship is a marathon, we must do a good job in the preparation of the long suffering. It is not to burn money, recruit people, stay up late can make things.

Sun Taoran said companies need to go through four stages, at least ten years can achieve great success, even like him for successful entrepreneurs founded in the Kara is again one by one through the process. Wang Gongquan, a famous investor, talked about, even experienced entrepreneurs, it is difficult to shorten the time to start a business, but is to increase the probability of success. Like raising a child, even had two children, third of the time to cry, will make, the experience are not like, just say eating out some experience and mistakes go detours will be less, the probability of their children will be higher.

these two common problems, around these two issues, can be extended to a lot of specific content, such as how to find the direction, looking for a team, etc.. As of CEO 3, the most important is the ability of looking for direction, to find people, the money, the three things of others are difficult to replace CEO to complete.

if the direction is wrong, no effort. "Don’t try to cover up the laziness of the strategy," he said

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