Nine out of ten start-ups fail. Why do young entrepreneurs cannot find a way out? Liu Qiangdong hit the mark with one comment

“To hell with starting your own business! Better to go back to an employee.”

As the millennials and gen-z become the backbone of social development, more and more young people have given up comfortable and stable work in the employment world and begin to devote themselves to the wave of entrepreneurship in an extremely competitive business world. With self-operated stores, studios, and the trend of public opinion, entrepreneurship seems to have become a “golden nest” far better than the “iron rice bowl”, at least before the epidemic.

A monthly income of 300,000 is no longer a dream — fierce competition beyond the success stories

Liu Qiangdong

Looking back at the trend led by media in recent years, there are so many “entrepreneurial myths” known to everyone. ” Young guy in Chengdu who sells hot pot skewers earns 300,000 yuan a month with a bottle of beer.” “Starting from scratch, a millennial guy became corporate manager from a ‘scalper'”. Indeed, these inspirational stories have undoubtedly inspired more and more young people to take initiatives and succeed from entrepreneurship, but too many people also fall into the vicious circle of “starting a business for the sake of starting a business”: Starting my business will lead to success. If others can do it, so can I. A monthly income of 300,000 is not a dream.

With this “deformed” blind self-confidence, few young people really think about what it is for when starting a business, where the pros and cons of the project are, and how high the success rate is. Eventually, they end up being strains after strains of “leek”. During the epidemic, the offline business was handicapped, and countless entrepreneurs left the market with regret and grievance due to capital chain rupture and loss of users. Young people engaged in online entrepreneurship were also cheated by the “high returns” of click farm and left with nothing in the end.

Demand is the rule of law. Do not start a business for the sake of starting a business

Regarding entrepreneurship among young people, Liu Qiangdong, JD.com founder, once said, “For start-ups to succeed, the key is: As long as you can solve a problem, your project will be successful.” Looking at it today, success depends on whether your project can respond to the pain points and needs of users. Taking click farm as an example, it appears to solve the traffic problem of the business owners, but it is actually a kind of deception to users and platforms. This kind of gray industry roaming at the edge of the market is destined to be short-lived and unrealistic. Besides, there are many lawbreakers who use “high returns” as a decoy to trick entrepreneurs into it and leave them with nothing in the end.

Looking at those successful entrepreneurs, every one of them manages to hit the market demands. The practice of the “beer guy”, which is offering free beer to go with hot pot skewer, is a classic case of “small profits but quick turnover”. For the late-night snack business, beer and dishes are deeply tied together. Young entrepreneurs are not afraid of breaking the traditional business model to surrender some profits to consumers, which would surely attract more and more customers.

Solving the pain points is the winning formula of JD.com

Back to Liu Qiangdong’s JD.com. JD.com started with digital electronics. At the beginning of its business, it grasped two core pain points:” the authenticity rate of electronic products” and “express delivery efficiency”. For decades, JD.com has been focusing on product service and logistics distribution by building the self-operated business to increase the rate of authenticity and using self-operated logistics to increase delivery efficiency. As a result, the brand of JD.com is firmly planted into customers’ awareness of online shopping. ” To buy authentic products, go to JD.com. “To get delivery on the next day, choose JD.com”. The brand value that is officially engraved in the shopping habit of customers makes JD.com stands out from all the other e-commerce companies and become a “supply chain-based technology and service company”.

Once again, just like what Liu Qiangdong said: ” If you start a business, I hope everyone can ask yourself a very critical question, that is, what problem my project solves.” I hope every entrepreneur can slow down a little and think carefully about where the value of your start-up lies.

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