Before reading 188bet app article, you may not know:

• 188bet app face of the capital winter，Where should entrepreneurs spend their time most appropriately？

• What are the misunderstandings that entrepreneurs often fall into 188bet app developing new products？

• Why your 188bet app’s profits are considerable，But still can’t get VC money？

• What are the survival rules that have been tried and tested 188bet app winter of capital？

• In response to the expansion needs of startup 188bet app，What is the optimal solution？

Today we have Mr. Li Muqing’s speech at “Investor Talk” some time ago to share with 188bet app。In the article, Mr. Li Muqing gave detailed answers to the above questions，Maybe his answer is not absolutely applicable to 188bet app，But it reveals the essence behind the problem to a certain extent，Should be worth reading for 188bet app。

*Mr. Li Muqing，Founding Partner of Zhiyi Capital，Has ten years of Internet investment experience，The leading investment case is Lianjia、I love my family、Come on!、Indigenous Tour。Before founding Zhiyi Capital，Mr. Li Muqing was once the only partner born 188bet app 1980s at CDH Venture Capital，He participated in Qihoo 360 during CDH Ventures、Kang Hui、The successful listing of Joyoung and other companies。

The following is the original text 188bet app speech:

“I have been in the industry since 2005，Experienced three waves of capital winter，I have an insight during 188bet app process - whether it is entrepreneurship or investment，It is best to go to a place with fewer people，Because in a crowded place you will have a greater chance of being "crowded to death"。”

1. There are usually two reasons why 188bet app cannot get investment

Many entrepreneurs have such doubts，Our company’s profits are considerable，And 188bet app’s still doubling every year，But why can’t I get VC money？

There are usually two reasons for 188bet app kind of situation:

One，Your company is not differentiated enough，Making it difficult for VC to place bets directly；Part 2，You haven’t found the core secret of 188bet app industry yet，makes VC’s eyes shine。

Amazon founder Jeff Bezos once defined an ideal business，And warn everyone when you find 188bet app kind of business，Don’t just hold on to it，Tie it tightly to you like a life partner。

In his opinion, an ideal 188bet app has at least 4 characteristics:

• Consumers love 188bet app;

• 188bet app can grow large enough;

• High return on 188bet app;

• Also 188bet app can stand the test of time - with the potential to last for decades。

In fact, when we decide to invest in a company to the final exit，188bet app cycle may last 5 years or even 10 years。If investors invest in you，Not just because your performance in the past few years has been good，What’s more important is whether you have any differences，How much room for development do you have in the future，Have you mastered the secrets (laws) of 188bet app industry。

Take Lianjia, which we have invested in, as an example。In terms of data，Lianjia is a company that has worked hard for 15 years，Will surpass JD.com 188bet app year、Didi、Ctrip and other companies have become the second company with a transaction volume exceeding one trillion，The first company to exceed one trillion yuan is Alibaba。

Why 188bet app Lian family successful?

I have asked many entrepreneurs，Who do you think Lianjia’s customers are？188bet app is a question that seems very simple but is actually very difficult to answer。Someone answered，Of course he is the one who pays，The person who actually gives the money is naturally the customer；Some entrepreneurs answered，Of course the seller，No house，How to generate transactions without supply，The reason why JD.com is so powerful，It’s because they have a supply chain，In stock；Some people say，Actually buyer、Sellers are all Lianjia customers。

Everyone seems to be right，But there is a problem，A startup company usually does not have many resources to fight on multiple fronts at the same time，At 188bet app time you can only choose to cut in from one end。For the question of who are Lianjia’s customers，My answer is neither a buyer nor a seller，But a broker。

If 188bet app want to become a larger organization，Your customers should not be buyers or sellers，Because it is impossible for the boss of an organization to personally receive all buyers or sellers。Lianjia has one hundred thousand agents，The company relies on these 100,000 colleagues to serve buyers and sellers。

The task of the company CEO is to formulate a good rule，Making mediocre people excellent，Let good people become better。When Lianjia allows these brokers to live a very good life on 188bet app platform，Only there will be good buyers and sellers，So Lianjia’s real customers are these brokers，They are the key to Lianjia’s victory。

In fact, every successful entrepreneur has his own secret to success，Some smart entrepreneurs，Will hide 188bet app secret，Just like Lianjia has never told the outside world what their core competitiveness is，Instead choose to wait for knowledgeable people to discover and invest in them。

I once met an entrepreneur，He was originally doing recruitment，But he felt very uncomfortable with himself for a period of time，So he suddenly wanted to change his career to making games，After all, the game industry makes money very quickly。I will tell him，You have been in the recruitment industry for so many years，At least you know where the pitfalls are in 188bet app industry，If you choose a new industry at 188bet app time，I guess you don’t even know where the trap is，The probability of failure will be significantly higher for you。

*Malcolm T.Gladwell)，His work "Alien"、Both "The Tipping Point" and "The Blink of an Eye" created book 188bet app myths。

Malcolm T.Gladwell) pointed out in the book "Outliers": "The reason why geniuses in people's eyes are extraordinary，Not super talented，But 188bet app has made continuous efforts。10,000 hours of training is a necessary condition for anyone to transform from ordinary to extraordinary。"

The 10,000-hour rule is a prerequisite for those who want to succeed in starting a business，188bet app is also the inevitable price you pay if you want to know the secrets of 188bet app industry。So I really recommend you，Try to do the industry in which you have spent 10,000 hours，Don’t change industries easily。

2、Many 188bet app are developing products，These three steps are often ignored

Many entrepreneurs would ask me 188bet app question before: "What kind of investment opportunities are VC optimistic about?"？”In fact, regarding 188bet app problem，As a VC, I am not qualified to answer，On the contrary, entrepreneurs should ask your users what products they need。Because VC is always slow to respond，And users and entrepreneurs who are struggling on the front line should be the most sensitive to 188bet app、Also the one with the most say。

Every time when capital is in the cold winter，We will always find some good companies。Because the capital winter will make 188bet app easier for everyone to follow the common sense of entrepreneurship，Actively think about how products can gain leverage，How to gain reputation from users，How to acquire new users at low cost, etc.。

Actually, these things are considered common sense for entrepreneurship，But no one talks about it when the market is hot。To borrow a quote from Mr. Charlie Thomas Munger: “Think the other way round，Always think the other way around。”I think 188bet app sentence is useful to every entrepreneur，Every speech or action is the result of summarizing the context at that time，So reverse thinking is an eternal strategy。

188bet app past two years，Many entrepreneurs and investors have poured into the entire venture capital circle。Causing false prosperity 188bet app market，When companies that don’t act according to common sense advertise everywhere，When brushing beautiful data，Who can refuse short-term interests，Think about the problem in reverse，Whoever has a greater chance of winning the final victory。

Also，188bet app winter of capital，Entrepreneurs can also return to the state where they started their business，Listen to the voice of the market，Instead of making some judgments yourself。We have seen many companies even reaching Series B、During the C round，I will also do some things that I imagined。

For example, the scale of a company currently reaches 100 million，But in order to achieve a certain valuation，Need to increase revenue to 500 million。So he must tell a big enough story，Making decisions as a matter of course，However, 188bet app decision may be just wishful thinking of the company，Does not represent the real needs of users。

We observe entrepreneurs when developing a new product，It is often found that they fall into such a logical trap，Because I can do 188bet app，So the company developed such a product，In fact, the idea of ​​developing products in 188bet app way requires three less considerations:

• Thinking one, do customers really need 188bet app?

• Thinking 2, are customers willing to pay for 188bet app?

• Thinking 3, why should customers pay from 188bet app instead of others?

These questions sound simple，But there are still many entrepreneurs who actively ignore them when developing products，As a result, the products produced do not consider the real needs of consumers，Does not consider the development of competitors，It’s entirely because I have the ability to do 188bet app。

When you find the real needs of users，The company is in the process of realizing from 0 to 1，We should try our best to do micro-innovation。Because 188bet app will not consume too many resources of the company，Also helps accelerate the growth of startups。Many people are now talking about disruptive innovation，In fact, so-called disruptive innovations are basically micro-innovations at the beginning。

Zhou Hongyi wanted to provide comprehensive security services，But suffers from insufficient capabilities and resources，So he wanted to be a 360 guard，Enter through a very small point。After meeting the needs of users and winning tens of millions of users，He started doing free antivirus again。188bet app day everyone suddenly discovered that the entire market had been slowly "cannibalized" by him，So 360 did not subvert the entire market overnight。

Entrepreneurs should not always think about creating a big brand all at once，Get a big patent，Invent a way to defeat the enemy with one move，Micro innovation is little by little，Improve from many subtle aspects，Make 188bet app more convenient for users、Simple。For early stage startups，Micro innovation is a powerful tool。

3、The rules of survival 188bet app winter of capital，To sum up, there are these four points

I have been in the industry since 2005，Experienced three waves of capital winter。I had an insight during 188bet app process，That is whether it is entrepreneurship or investment，It is best to go to a place with fewer people，Because in a crowded place you will have a greater chance of being "crowded to death"。

At the same time, during every capital winter，I have seen 188bet app problem from entrepreneurs - most entrepreneurs face the capital winter，I don’t know whether I should spend my time on financing or on specific business。

Because when 188bet app go to raise funds，188bet app may notice that the attitude of investors has become cold，Some investors even went on vacation；And when 188bet app do business，188bet app will find it very difficult to make money from customers again。

When entrepreneurs face such a dilemma，How to ensure that you continue to survive？I have four thoughts on 188bet app。

First, increase the frequency of communication with investors

Usually entrepreneurs pay more attention to their own financing situation，It is difficult to see the financing status of the entire market，Investors can see how many companies in 188bet app industry are financing，And it is clearer why some companies can get investment and some cannot get investment。

We discovered the reasons why companies were able to raise money during the capital winter，In addition to some reasons described by the media，There is another very simple but crucial reason，That’s when they are in the capital winter，Increased the frequency of communication with investors，Regularly provide investors with feedback on the 188bet app’s situation，Especially in terms of details。

I met such an entrepreneur last year，He updates me with his weekly report almost every week，Even though I didn’t express my investment intention to him at that time。Finally when his company meets the investment criteria，He summarized his monthly summary，Email me the PPT including their internal quarterly meetings。Don’t underestimate these inconspicuous measures，For companies that want to raise funds during the capital winter，188bet app likely to bring some unexpected effects。

Second, adjust the direction of communication with investors

Many domestic investors generally do not reject entrepreneurs directly，Instead, they will choose some more polite ways to refuse。So sometimes entrepreneurs need to judge based on the words and deeds of investors，Whether the information 188bet app provided to the investor at that time was what he was currently concerned about，If not，Can 188bet app continue to communicate in another way。

In addition, when the market is relatively depressed，When entrepreneurs go to meet investors，It may be a better choice for several partners in the team to go together。If you don’t match 188bet app investor’s style，Maybe your partner can get along well with him。As an early investor，We are often not looking at a company，But looking at the core strength of 188bet app company，Maybe that’s how those two or three people gave us，Gives us the confidence to invest。

Third, the 188bet app must increase revenue and reduce expenditure

CEO should appropriately accept down-round (valuation discount) financing，Maybe 188bet app have to accept that your shares will be significantly diluted，Thus supporting the survival of the entire company。At the same time, CEOs also need to learn a lot of financial knowledge，Promote the company’s refined operations，Truely "break one penny into eight parts of the flower"。

CEOs must learn to apply the brakes during the capital winter，Control the company’s losses，Re-evaluate your book funds conservatively，Because during 188bet app period it is almost impossible for you to get money in less than three months，So you still need to pay attention to the following three points:

1）、Enterprises with revenue need to evaluate their account periods，188bet app best to achieve positive cash flow，That is, the money has been received before the business has been launched or is in progress。Otherwise the business will grow bigger，The bigger the cash gap becomes，The more painful 188bet app to do business。

2）、If the company chooses to move at 188bet app stage, it will be a very high-risk move，High rent plus deposit，There are also renovation costs，It is easy to drag down the cash flow of the entire company。In addition, it is easy to expand the team when the place is large，So when the market is not good, you need to be particularly cautious when moving your company。

3）、Use digital decision-making to drive refined operations。Only 20% of CEOs may know how their cash flow statement comes from，In fact, the financial model and data analysis of startup companies are the responsibility 188bet app CEO，The CEO must dig out the financial details one by one。

Every entrepreneur needs to think about it，What is your company’s cash balance，How much do 188bet app spend every month，What is the relationship between your user growth and costs。

Fourth、Emphasis on corporate culture and cash income，Weaken entanglement option

1). Can sales staff be laid off?

Cutting sales is definitely not an option，Because the 188bet app’s income is the most important thing。

2). Can I accept income that is not related to the main 188bet app?

For 188bet app that don’t have much money and have difficulty financing，My advice is don’t give up any opportunity to make money，Income is definitely a must，After all, survival is the first priority。

3). 188bet app internal management be vigorously strengthened?

188bet app strategy seems to make the most sense，It’s actually useless。Strengthening internal management is what founders should do in the long term，But it is also the most difficult to achieve results。When the company is in a difficult situation，Instead of doing management, it is better to find ways to generate income。

4) Is 188bet app reasonable to directly lay off the company’s technical personnel?

Because technicians usually cannot directly generate cash returns within 6 months or even a year，Although it takes a long time to recruit a technical staff，But sometimes 188bet app is a decision that has to be made。Some companies have even done something like 188bet app，Let technical staff also do sales。

5）、Should the CEO focus on corporate culture at 188bet app time？

Entrepreneurs with little experience may not do 188bet app，But 188bet app is very important。In the cold winter，We need to lay off some people who want to make quick money in the company。When the market environment is not good, it is often not money that unites the team，On the contrary, it is the corporate culture。

Some CEOs who have been in business for a short time，When faced with the problem of layoffs，Choose to avoid slowly。Let’s lay off some people first，If not，Lay off some more people，But it is such a "cannibalization" strategy，On the contrary, it affects the morale and confidence of the entire company，Eventually more likely to bring down the entire company。Once 188bet app have thought clearly about the decision of layoffs, 188bet app must do it in one step。

4. The expansion of startup 188bet app needs to follow the "evolutionary model"

And 188bet app has these two characteristics

After 188bet app have solved your existential crisis，The next big problem is how to seek growth，Achieve overtaking in corners。But growth is not actually a phenomenon，It needs to be done step by step，The core responsibility of a CEO is how to grasp the rhythm of the company's development。

Every startup 188bet app goes through four stages of growth:

• Discover the existence 188bet app market and verify the authenticity of user needs;

• Confirm the effectiveness 188bet app product in solving the problem;

• Continuously revise the 188bet app model、Perfect product、Improve customer acquisition efficiency，Really find the fit between the product and the market；

• Rapid expansion.

According to Startup Genome’s survey, more than 70% of startup company deaths are caused by premature expansion，That is, 188bet app directly entered the expansion stage without improving the first three stages，Final cash flow rupture leading to death。

We actually found that many entrepreneurs do the right things，But the rhythm at that time was not right。When to hit the brakes、When to step on the gas pedal，If you step on the wrong side, you may be kicked out soon，If you step on the right one, you can continue to survive in the market，Stepped on two correctly in a row，Then 188bet app company is likely to become a great company in 188bet app industry。

Many startups hire experienced managers after receiving Series A，CEO is above，There are various CXOs below、VP、Director, etc.。If so，188bet app company may soon become the last thing any startup wants to be，bloated organization，The internal information turnover is also very slow。

We once invested in a company，Two years from 2009 to 2010，CEO begins to apply the mechanisms of some large companies，In the end, the CEO became farther and farther away from the front line。After there are more communication links，The information loss in the intermediate links is extremely fast。When the information is delivered to the CEO，It has completely changed，It is conceivable that the decisions he makes based on 188bet app kind of information will not be much better。So startups should stick to another growth model，called evolution mode，It has the following two characteristics:

1）、Only by forming an internal trial and error mechanism can a company continue to survive。Before Darwin published "On the Origin of Species" in 1859，Everyone believes that competition for survival exists between different species，For example, the competition between snakes and mice。But Darwin came to a new conclusion through deduction-there are also fierce struggles within the population。Because of limited resources，Each population can only survive a very small number of the best individuals，And 188bet app small number of individuals will continue to carry the best genes of the entire population。

The same principle allows an enterprise to truly move forward，It’s not a competition between you and your opponent，Instead, it is the competition between the small organizations you divide within the enterprise，188bet app is the most important force to promote your own growth。

As a CEO，We always seek stability，Preferably extremely high employee satisfaction，Extremely low employee turnover rate，Super harmonious working atmosphere。But can these really bring overall stability？The real situation is，Only changes in each department can achieve an overall dynamic balance，188bet app is the paradox of stability。So CEO should encourage internal competition，Strive for trial and error in small units to achieve enterprise progress。

2）、Elite squad combat。If the organizational structure of traditional enterprises is like the Korean People’s Liberation Army，The organizational structure of the Internet era is very similar to the U.S. Special Forces squad。When Uber came to China to expand its business，The first step is to recruit three people in 188bet app city，One is the city manager，One is the operations manager，The other one is the community manager。Such a small team，Not only eliminates the complex management costs，It also ensures the team’s speed and flexibility，Quickly respond to changes in the outside world。

There is a game company called Supercell，The company’s CEO is always below，Close to users supports the operation of the entire organization。When the company chose 188bet app name，has infused their organizational characteristics into the company’s name，They themselves call the company Super Cell。

A 188bet app is like a cell，Unbreakable transformation，Once a certain cell grows too large，will divide into two cells，The method of fission evolution drives enterprises forward。Such an organizational management form，I believe there will be more and more people in China。

The above are some of my understanding and thinking，Hope to communicate more with 188bet app。

*188bet app article is reproduced from the public account Investor Talk (ID: touzirenshuo)。