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Business factor and business model -- Tao Yishan

2011-09-20 12:00

During the China International Fair in Changsha, I met several Wenzhou bosses who had successfully set up businesses in Hunan Province. I was curious and asked, "from south to north, from east to West China; from Paris, France to Cape Town, South Africa; from San Francisco to St. Petersburg, Russia, you Wenzhou people are engaged in business. Surprisingly, as long as there are business opportunities, you will not speak a foreign language, and you will go abroad. What are the business factors of Wenzhou businessmen? "
Some bosses said that the geographical conditions of relying on mountains and facing the sea, with more people and less land, created Wenzhou businessmen. The key to success of Wenzhou businessmen lies in their pioneering spirit. There is a saying that is basically agreed by all Wenzhou bosses, that is: most Wenzhou businessmen start from scratch because they have no commercial capital. The original input-output principle of "one point in, two out", "two points for investment and four points for profit" is Wenzhou People's "business gene".

1、 "Grafting" business factor
Business factor is a keen sense of business opportunities (smell of money) and persistent pursuit of profits (pursuit of wealth). This sense of smell is an intuitive judgment of input and output, and is born with the ability to calculate accounts and make money. Under the influence of various external factors, this persistent pursuit of wealth has created the characters of hardship, diligence, courage and courage.
Some people have low educational background and even have no formal education, but they have natural business cells and inherent business factors. They can rely on very little capital, even from scratch, they can always seize the fleeting opportunity to make money, and gradually accumulate to success. Li Ka Shing, the richest man in China, is an outstanding representative. At the beginning of his career in plastic flowers, Li Jiacheng first bought plastic flowers from Paris, France, and sold them in Hong Kong. Then, he borrowed money to build a factory to produce plastic flowers. Every time, he won more and more money in his business activities. Once he got the chance to see the goods, Li Jiacheng designed and produced 7 kinds of samples overnight, which made the buyer's purchasing representatives happy and gave a thumbs up for a long time. Li Jiacheng often mentioned that in business, wealth means input and output. Sometimes, the investment is a few pieces of silver, but received is a pile of white silver.
Most of our professional managers don't choose to start from scratch, and we don't have the "business factor" that Wenzhou people are full of. But we can "graft" the business factor into our brain: that is, we can cultivate business wisdom through the acquired business vocational education or MBA education. In the article why giraffes laugh at us, I once said that compared with some self-made bosses, some of our managers lack the inherent cost awareness and input-output sensitivity, that is, lack of business factors. However, after the training of professional managers, they can understand the law of input and output, and understand the scientific process and management. They can also master the principles and skills of "one point in, two out" and "invest two points and earn four points" to control the enterprise. Of course, "grafting" has the risk of "exclusion". It's like blood transfusion. Commercial factors do not require blood group matching, but psychological and spiritual adjustment is necessary. The key is whether "we can take every cent of the investment as a mortgage loan from my own house, and have a strong original impulse to increase the input-output value. If the investment fails, we can only sleep on the street." If you can have this mentality, "grafting" will be a success. If you always keep a detached and detached attitude, and always put yourself in the perspective of "migrant workers", thinking that it is shareholders' investment in any case, without transposition thinking, business factors will always be "exclusive" with you. Because of this, "how to create value for shareholders" has become the Bible of MBA education in the West.

2、 Building a business model
Some bosses are rich in business factors, but they are also at a loss when facing the complicated input-output analysis and the systematic management situation. Because it is not enough to control a larger enterprise only by having innate market sensitivity and sense of smell. A Wenzhou boss said that they can be smart and capable small business owners. They know their own business like the palm of their hands. They have a good idea of their daily income, cost, income and accounts, but they are not competent when they are big. Therefore, there are also many Zhejiang merchants do not choose to do large-scale. Generally speaking, it is different to calculate a small account (to operate a business of general scale) and a big account (to master the input and output of a large enterprise). The difference between calculating the immediate account (the income and expenditure of the day) and the long-term account (the input period of a month, a quarter, a year, or even several years) is even more different. At this time, it is necessary to establish a systematic business model, a business profit model that matches the enterprise's own resources and customer needs.
Some managers always think that the scale is not enough, so they are not profitable, so they try their best to reach the scale. In fact, when the scientific business model is not established, no matter how large the scale is, it is also a high-rise building built on the beach. In a short time, "brilliant" is difficult to last. Once upon a time, how many products or enterprises that became famous overnight by advertising and quickly increased in quantity disappeared within 5 years and 10 years. The sea king cow colostrum turns into water, the rising sun in Hebei Province becomes the setting sun, the love becomes the hate much, the spring meets the cold winter, the Qinchi Lake dries up, the giant falls, three plants are killed. Among these failed cases, one thing in common is that there is no suitable business profit model. In other words, the so-called successful business model in the past can not adapt to today's increasingly fierce market competition environment.
Similarly, even a successful large-scale modern enterprise, if it does not adjust and correct its business profit model in time, the crisis will break out at any time.
Sony (Sony), the electronic giant in the analog era, is now in a dilemma of unsatisfactory financial situation. In the fiscal year ended March 31, 2006, Sony's turnover reached $63.8 billion. Its core business unit, electronic products division, accounted for 64% of the total turnover. However, in this sector, it lost $264 million. In fact, the sector has been at a loss for nearly three years. As we all know, Sony's innovation in the field of technology is at the forefront, but as a commercial enterprise, when innovation is not customer-oriented, does not pay attention to cost and value, when the complex business is not subject to the integration of its own business profit model, the prospect is naturally in danger. Now an Englishman, Sir Howard Stringer, is leading the way. The key is to find the problem. Where is the problem? "My family has 35 Sony products and I have 35 chargers, so you see the problem," said Rob Wiesenthal, sir stringer's chief deputy in charge of strategy and M & A Sir Skinner needs to solve the following problems: poor communication between departments, lack of teamwork, innovation input regardless of cost, and new product development not focusing on customers.
While Sony is gradually in trouble, Toyota Motor Co., Ltd. in Japan can adjust in time and find its own business profit model. Toyota has hundreds of models, now there are five door handles, and before the integration of parts, there are 35 handles. Therefore, it is not difficult to understand why Toyota's business model (lean production) can generate annual profits of $12.1 billion, which is the sum of the profits of the other three major automobile companies in the world.
It can be seen that we should not only graft business factors, but also create business models, which must be adjusted in time with the change of market competition environment.

3、 Innovative business model
Twenty years ago, at that time, the market was still dominated by mixed fodder packed in sacks. We came out with the "Camel" brand. At that time, with the characteristics of team operation, daring to fight and win, and being able to speak and speak, we were bound to do what we said, what we did, and what we did. A strong sense of enterprise gave birth to our business factors, and from then on, it was destined that we should not only own business factors, but also establish business models. Therefore, we explored and innovated a set of commercial profit model suitable for the market demand and self-development from the national leasing factory cultivation market to the site selection and enclosure.
When one by one 180000 tons of new factories have been built up in the north and south of the river, the successful business model of leasing small factories can no longer meet the needs of new competition. The establishment of a new business model is imminent. It needs not only one year's input and output, but also one-year, three-year and even long-term business output. Only when the business profit model is right can we have a foundation and motivation for scale. A set of business model suitable for customers' needs and their own resources is not a person's behavior. It defines the business behavior of a group of people and a team: in the competitive strategy of "high talent, low cost and large scale", whether we are operating in accordance with the norms of six financial lifelines and whether we follow the basic law of input and output. Standardized management and efficient process are the foundation of successful business model. How to integrate procurement, R & D, production, quality control, marketing, finance, human resources, corporate culture and other factors in this model in a harmonious way to form combat effectiveness. It is the connotation of establishing three major competitive strategies and creating three business characteristics including "personnel characteristics, product characteristics and marketing characteristics of" cluster development and rolling ". It is also the core framework of establishing new business profit model.
Our general manager "grafts" the business factors, and our team establishes a new business model suitable for the needs of customers and competition, so our goal of becoming a world-class large and strong agricultural and animal husbandry processing enterprise will be clearer.

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