Wang Wei: The common point of private enterprises with annual sales of less than 3 billion

Wang Wei: The common point of private enterprises with annual sales of less than 3 billion

Doing investment banking, do not look at other businesses from day to night. If you look at more companies, you will naturally find some rules. ... In the past few months, my colleagues and I have been in contact with a large number of private excellent consumer goods and consumer service companies.

They are mostly the best in their own market segments, with annual sales ranging from $300 million to $3 billion. In the process of contact, I found that they have some common features.

1. The entrepreneur's heart is higher than the sky. Frankly speaking, this is an advantage and we want to see it. Even the soldiers don't want to be marshals, not the good soldiers, let alone the generals. Most of these entrepreneurs are less than 50 years old, their careers have begun to take shape, their status has been initially established, and they have gained a reputation in the industry and the media. Together with the double-digit growth of China’s GDP and the rapid rise of the local market, it is precisely When the fish gets water, "How big is the stage?" Therefore, everyone has a ambition, and everyone feels that they will be able to become a world-class company in the near future. Some are really possible.
2. Start thinking about strategic issues. I used to be an opportunity-driven one. Now I think about some strategic issues like "what kind of company do I want to be?" and "what is my core competitiveness?" Although it will not be possible to completely turn into a strategic drive for a while, but those savvy entrepreneurs will at least make the strategic big picture moderately balance their short-term interests when some unreasonable “opportunities” arrive. pursue.
3. Start learning to fool the capital market. The development of enterprises to this scale is bound to start attracting investors' attention. First, the investors took the initiative to come to the door, but the entrepreneurs were more intelligent. As a result, the entrepreneurs who were stunned by them had listened to them and learned to flicker and flicker, even more than ever. Therefore, the company has fully entered the era of docking with the capital market in the flicker and anti-flicker.
4, companies are often at the eye of the knot. These companies are either on the “turning point” from the growth curve to the growth curve, or in the transition from this business model to that business model, or from this development strategy to that development strategy, and some even have to Turn around while turning.
5, the book loss or meager profit, often in fact very profitable. For comprehensible reasons, many of these companies are losing money or meager profits. This can't blame them all.
6, but "very profitable" is still not as profitable as entrepreneurs think. Due to financial irregularities, many of the fees paid are not paid, so the profitability of the company that really can withstand auditing is often unclear to the entrepreneurs themselves. A more reliable estimate is that the true level of profitability of a company is mostly between the figures seen by the tax bureau and the figures in the minds of entrepreneurs.
7. There is generally no financial forecasting ability. Companies at this stage usually don't have to learn budget management. Don't say that they will stand next year and look at this year. The accuracy of financial forecasting is not the ability of the company's financial forecasting, but the ability to refine its management.
8. Entrepreneurs tend to be public and private. The reason why they can live in a house and drive a famous car but hold a salary of one or two thousand dollars or even thousands of dollars in the district is because they are used to confusing the company's pot with their own bowl. In this state of the enterprise, there are many out-of-state transactions and related transactions, which is something that can be guessed with the toes.
9, the boss is extremely dedicated. The bosses of these companies have their own hard work but they are very hard. They often do nothing, and they have no days and nights. When I look at the state of their work, I feel that they have no unsuccessful reason. But think again, and feel that if they want to have more success, they really need to change this state.
10. There is no real equity incentive. You ask these companies whether there are employee incentive programs, they usually say yes. But when you really ask to see the relevant legal files, you will find that these plans are only in the minds of entrepreneurs. If you love someone, you just say that you don’t have to do it for a long time, and you don’t have to do it, let alone let people make a fortune with you.
11, are shouting "the most missing is the talent." These companies often say that they are the most talented people in the 21st century. The question is, is it still a problem for all companies around the world?