note: cloud hunting for the hot wave of O2O vc, many potential projects relying on the high frequency use and access to capital, but some of the low frequency project is being snubbed, O2O project Onlylover wedding photography is one of them, after contact with seven or eight home investment institutions hit a wall, founder Wu En wrote the following article, hope that investors can real direction, from the chain of products, the project value and to really understand the industry, understand the project. The following for the full article:
as an Internet startup veteran, I’ve always thought, find a valuable innovation domain, and then with the team on the track and ran to the first, you can wait for investors to married. First leg down, ran to the first, we also saw seven or eight investment organizations, but in the end I found that read low-frequency O2O project, no matter for entrepreneurs, and investors, is a big test. (note: hunting cloud in September last year it was reported that Onlylover finish from the $1 million of capital A clean angel rounds of financing, then began A round of funding)
Onlylover wedding photography is a typical low frequency slow decision-making O2O project. The low-frequency O2O project is cold start, unlike some pure online users of products or high frequency O2O project, after the user to speed significantly. Is, therefore, for low frequency O2O project, investors some concerns when making decisions, if can’t see clearly.
to stand in the Angle of the entrepreneur, I really want to give investors some Suggestions, namely how to judge a low-frequency O2O project. At the same time, I have A feeling that for low frequency O2O A round of the project, the investor takes effort, time, and such as smell sensitivity requirements may be higher.
in general, the business model for basic authentication, entrepreneurs tend to launch A round of funding, but for the low frequency weight decision-making O2O project, at this time the business data does not necessarily have impact on the investors. So, investors should be how to judge whether the company is worth for?
first is on the direction of the judgment, that is, whether the direction is really can be the Internet. for data growth change large projects, investors make decisions is very simple, because the data already tell, he doesn’t need to consider a lot of problems. The cold start of low-frequency O2O project decides the law of the development of it is not possible explosive data. I think, investors need to sink into this kind of company, and the business model in each link of the person to chat and listen to the customer experience, look at the user evaluation, understand the practitioners recognition, think of yourself as the customer to feel the whole experience. In other words, investors should from many aspects to judge the upgrade the value of the mode for the user experience.
when depth perception products, investors need to have the ability of product manager. have investors say with me, and see your website and competing goods not much difference. In fact, the key question is, he doesn’t demand into a real user state of mind. Like this website, we provide the wedding photography O2O service, this is a product based on perceptual and rational decisions. After visiting a large number of users, we know that a user to complete the wedding photography shop online, platform need to help him solve the 14 decision factors, the competing goods website completely not meet this condition. If investors when doing the whole experience test did not let himself into a real user point of view, it is impossible to tell that the essential difference between these sites.
in addition, I believe that investors see project, 99% of the project will be the price competition as an important point. But in the field of wedding photography, the price is not the most concern of the user, the merchants of big price war to attract users actually is not high. Accordingly, the the industry profit ability is very strong. Is also because of this feature, the relevant project in play, in the competition mode with high frequency O2O project is different .
investors need not only from the perspective of the user to perceive website value, but also understand the characteristics of the industry. in wedding photography, for example, formal operation, the second month we harvest during the month the order more than 100. There may be some investors are feeling, but if have more in-depth knowledge of the industry, they will know that this order is equivalent to a Beijing studio via an ability. That is to say, thousands of home studio, studio in Beijing, we use two months time, has been rushed to the top 30. In Beijing, if a month to reach thousands of single, we can go beyond the traditional studio boss, if we cover multiple, do it on a single city, the profit for the year can reach a few million. Therefore, investors in judging a low-frequency O2O project, if the characteristics of an industry understand enough deep, sensitive to some data may be not enough.
doing O2O project will involve some offline link, and what is good for you to do multiple line, investors need to have in-depth research project, and should not be simple to judge the door O2O good or store O2O have experience. from the user’s point of view, an Internet innovation project, depending on whether it can bring more convenient for the user experience, higher cost performance, more innovation value, can provide users with a complete quality closed-loop services. Whether you need so, O2O project experience shop, should be based on user demand at present. Some products or services, the future is possible because of the circle of friends spread endorsement, many users do not need to purchase at the store experience can complete the payment. Of course, from the point of business model for the comprehensive value, if the existence of the experience shop brought points for the user, it is necessary to exist.
the nature of the Internet or to achieve commercial value, Yao Jinbo said a word, come out to mix is to sell every morning and evening. O2O closer to money, that what is a good O2O project? First of all, there is no high frequency or low frequency good, the key to judge or see whether business model has continued high profitability.
, I think that investors should focus on the following aspects: 1, the market is big enough, the expansion to whether there is enough; 2, innovation mode to the user’s attractive value high enough; 3, profit model is strong enough, that is, every single income and a cost difference is big enough, 4, can establish an effective barriers.
in conclusion, for O2O projects, investors not to be affected by high frequency good or low frequency, and should focus on the business model of the value of itself.