, which is jointly organized by entrepreneurs and citic publishing house college to undertake “2015 venture geek, BBS” held in Beijing, is very serious fund founder xiao-ping xu made on BBS titled “investment returns or cast the future” a keynote speech.
xiao-ping xu with three story three business common sense: a, an entrepreneur can only make a product at the beginning, one direction, this is the whole business of a dogma; Second, if go out at the beginning of sovereignty, 60% to go out, again great companies do not go down; Three, as long as I get things done, how much the shares is not important, this is wrong. All not to shares for the purpose of business is to play rascal.
in addition, he also said that entrepreneurship is the basis of the two, one is the team, is a shareholding structure. Want to play the foundation of an enterprise, see “from 0 to 1” or “partner in China”, look at the story of new Oriental, namely entrepreneurial stories of Chinese enterprises. (pinellia)
here are xiao-ping xu lecture transcript:
xiao-ping xu: good afternoon friends, happy New Year Spring Festival. After Chinese New Year, I just back to Beijing the day before yesterday, received notice to do this speech, every time I’m nervous seriously prepared the speech, I immediately feel happy life is broken off, and begin a year of struggle. The Spring Festival I had an unprecedented happy and substantial, every day up on the table with Peter? The teal from 0 to 1, but the phone constantly grab a red envelope in his hand, grabbed a lot of red envelopes, I get the largest red envelopes is 399 yuan, the local tyrants Mr. CAI I ask why so much? Because he is tencent to his special channel, I said you help me to open a, I also want to do a local tyrants, multiple a red envelope, but I don’t have a hair, because I am afraid that one I broke. Receive wang qiang is the smallest envelope to me, he sent me a penny, but also to the sentence, xiaoping is not you want to “from 0 to 1”? From 0 to 1, prosperous New Year. Does the Spring Festival I have been reading Peter? The book of teal, infinite gain. So I tell you something about my feeling to read the book, and this book for Chinese entrepreneurs to mean? What kind of benefit we can get and enlightenment, and how to help us do better business.
my first tell me about your first question, the there are many wonderful views, the first question for me the biggest shock is the foundation of the enterprise. Peter? Teal said a bad foundation of enterprise, it is absolutely hopeless. A bad foundation of the enterprise, people tend to spend the most time to save them, and this kind of enterprise is actually not the most, but the problem is the foundation of an enterprise? That we in the entire investment practice, including my entrepreneurship practice, not very clear, so I want to focus on something about this problem, this is a problem. Where would climb the ladder must begin at the first? This is the foundation of the business, which I think is particularly important. And this kind of problem in the whole of China venture group, including the most intelligent people, resume the flash, or experience the most powerful of these people, there are very funny, sad, stupid mistake, so I am here to share it.
what I want to speak? In ten days ago, was in February 2014, 15, 16 this happened two or three days, we have encountered Chinese entrepreneurs how passionate ran to collapse, full of dreams to find sadness, so a few stories. Thus speak out what is the basis of corporate entrepreneurship? The first story on the 15th, 12 days ago, the 15th at 11 o ‘clock at night, do you think is going to the New Year, I 16 back to my hometown in jiangsu, I accompany me to more than ninety – year – old father. The 11 PM I saw a man, a very famous person, I can’t say who, of course. He got several investors to his signature, and come to me with the team. Then he said I xu teacher I just want you to throw, I was talking with him, was actually a bit guilty, because I want to me how to show my value? Have so many people gave him money, I want to vote for him, and I also want to get a cheap price. So I think I am what does he mean? I listen to him at the start of the idea, I immediately realized that his company must be achieved. Because he want to do a consumer brand, three people team how do two brands at the beginning, do what is the purpose of the two brands? Said that when a brand across the later, I can do the second brand to top up. Then the second brand how to ensure it doesn’t make any mistakes? Not a problem? How do you ensure that the second brand, deputy brands than the main brand is strong? An entrepreneur can only make a product at the beginning, one direction, this is the whole business of a dogma. But such a great team and project, if so not sure. And I said so, I find you, to throw your reasons and get a discount, the abolition of all the other ideas, do you do at present. They are, of course, the whole team is suddenly enlighted, feel the original idea is very stupid, but this may sound is a common sense.
however, in our work happen every day, the second story, the second day morning, February 16 at 7 o ‘clock in the morning, I went to a hotel to see another person, he is also very famous, coming out of the university, he also got several projects, many people gave him money. He told me to $ten million, I said to you how many shares? I was very nervous. He said that up to 60%, after I have listened to think I have the value, I can go to bargain with him again, show me the meaning of the. I wanna thousand dollars 60% right? I’ll give you $one million with your six points, and then the six points to team for you, to rent the office, your products, at least the blueprint to make to show you the appearance of the product, financing, this time I’ll help you with your reputation, with the experience of your team’s strong, this time I said could be $ten million to get 20%, or less. Because you are you in less than $ten million at the beginning, if you let out their sovereignty from the start, 60% to go out, again great companies simply do not bottom go to, this is the second story.
the third story sadder. The one or two weeks, before the Spring Festival, there are five cattle people in particular, is China’s top three elite school. Entrepreneurs in the beginning, there is a product, high-tech, really very good, I have seen a $152 at that time took 12 points, but later found its ownership structure is very complicated, complex in where? Entrepreneurs have a theory, this theory in the social domain, lei feng’s theory is quite good, or the public interest theory is fine, but there is wrong in the field of entrepreneurship, I as long as he mean doing things together, how much the shares is not important, this is wrong. All not to shares for the purpose of business is to play rascal. And we are in the process of the whole investment, tend to be those shares for the bloodiest fighting team, so a kind of ideology, the most shares is not important, I don’t care, I care about doing things together. So later after we found this problem, are ready to adjust, very confused, he is a CEO, only teens, CTO taller than him, there is a part-time consultant also more than him, someone out 350 thousand yuan, also took a lot of points. And then some people thought a little money with him five or six points, the share structure. The company is very good, we really want to invest in, love them very much. In a let many teams tried, but have not been successful precedent, in such a field. Actually I thought this company must have no hope, but also with a glimmer of hope to save them, but to save in the end, the years ago when their team divided, and at this moment.
so this a few stories very dire, are the first-class talented person, are absolute elite, are particularly good model, but if they start mode right at the beginning, or the equity let out, or unreasonable share structure, the company must be done, the so-called as long as I get things done again of this matter, it is violation of human nature, in violation of the basic laws of entrepreneurship. How to do? Of course Peter? The in the book of teal, speak a lot of the basis of a company. Such as the company is best three directors, at most five such details, can not have a part-time job or something. But the whole, I think investors while giving you money, but there is another value? Because they see the company much, so he can help you to solve these could potentially serious problem. So this is the foundation of the company, everyone is the first business, the pioneering people basically all is the first time, you haven’t failed, so give you a chance. But I think this is Peter? Teal meaning of this book, in addition to reading his book, you can also find very serious fund. We chat with entrepreneurs to your question, actually are some common sense, the empirical question, but you don’t forget, a business with entrepreneurship, harvard and the law of these schools have to teach these things, have investor, investment firms have entrepreneurs, all these people from appears to come out. Ma said in a word, many companies can’t afford to hire a CFO at the beginning, can’t afford to hire a man who understand the financial, but the mistake was made out, is irreversible. This is a problem I mentioned, that is, we hope you be careful at startup time.
well, here’s the thing, what is the foundation of the enterprise? Entrepreneurship is the basis of what things? Is two, one team, one is the ownership structure. About the team, in the book there are many wonderful things, including gang culture, religious culture, including the brother of friendship, including each other like, obsessed with the product and so on. I think the first one is a team, the second is the equity structure, this I can’t speak more. But I want to say the things as long as you are right, the basis of basic play, enterprises will appear in its developing process, definitely will appear conflict. Because each decision is all about tomorrow, about later. How can you prove that my decision is always right, what can I do? This time will depend on everybody’s wisdom and understanding, appreciate each other. Then have to go down, have a structure like new Oriental story you know, people who do not know to have a look at the Chinese partners, that there are many things worth remembering, I think if you want to play the foundation of an enterprise, see “from 0 to 1” or “partner in China”, to look at new Oriental story, also is the Chinese enterprise business stories. This is the first problem, my main question, there is no way to give too much.
the second, everyone know who Zhang Mengyu is? Know the person I admire you. Really don’t know right? Know then put up your hands up, thousands of just a few people. Awaken your heart Zhang Mengyu, I speak a case. On January 1, 2014, New Year’s day that night, my dinner is eat with Zhang Mengyu Zhang Mengyu have a pen name ma house. I and Yang Ming, and his angels, and entertainment factory zhang wei to have dinner with him. Then I was voted for the house, when his value is sixty million RMB, xu teacher can give a discount, I gave 300000 yuan, had a point. Why should I vote for him? I didn’t ask you what to sell, and we have had a lot of the funds, totally against I threw every horse, then open our contradiction. But I still stick to vote for him, and why? I told everybody I voted for him, and I am as proud. Others accused of every horse, what do you think you are not, holding the name. I return to come over to ask you, what you have, why don’t you known? Why don’t you know your market. Peter? Teal there is extremely important in the book that is in silicon valley, people will also think sales is a fool. In such an old capitalist countries, the United States for sale, for marketing, for promotion, also have prejudice, after this I saw blood boiling. Because I think this problem is very serious in China. Let the product to talk, or to speak for the product, it is the entrepreneur a very important proposition, you should not only let the product speak, you also need to product.
Bill Gates and Steve jobs have a famous argument, that movie you may know, the movie ends, Bill Gates had words with Mr Jobs, jobs finally said a words, when my product is better than you, Bill Gates, then bold said a words, you don’t understand. 20 years later, of course, is dominated by Microsoft, so I wanted to say here is that the product is better, of course, but must also good sales.
this thing in zhengde fund all investment projects, nearly 99% of the company for marketing, for promotion, marketing, PR is ignored, because it is deep rooted in our blood, our culture and values. So I see the valley has the question, I think we are going to set off a literacy movement. Everybody for promotion to the sales always say a fool, always belittle. In fact you want to do a good product, you have to let people know that if you want to sell faster, faster growth, there must be a powerful marketing ability. So every CEO should be one of the most amazing salesman, should go to the front, always dialogue with your target market and target users.
I just want to clear, I admit that every horse in the past year he didn’t product, but I think there are such sales ability can make a good product, or you can purchase one product to sell. In the beginning of we established in 2012, at that time to a man, you know who is (just) made? Made just is China’s largest, sell horses every products company, selling adult supplies. Here (basic) force (zhang) zhang always thrilled for them. He was looking for us, I didn’t, he left a book. He might have hundreds of millions of sales now, but you don’t know him, if their market better, stronger, they can double sales? Can be more? I think this is a problem, it’s a pity. He do the practical work, of course, he examined the quality of the product is very good. At one point I thought the two of them make up, so that both the content, products, promotion and marketing.
throughout 2012, with a book on my desk to just write “wish”. I estimate that few people know this book. I go to the office every day to see the book will have a boiling passion, thrilled. Because my work is also wants to help entrepreneurs to realize their dreams. Made just also desperately want to publicity, also in the marketing efforts. Singles day I remember in 2013, when he think it is best to do publicity, send a weibo let me turn, how to achieve orgasm. I didn’t turn as a result, he said that let me call, I said I only know how to orgasm in the speech. This sounds like not a truth, but is indeed our entrepreneurs ignore things in business. Think about new Oriental, new Oriental is doing the best marketing company in China, but no one think we are in the marketing, because of our promotion value. Zhengde funds without office, in the absence of any investment, in 2011 by the end of the first thing we do? nullnullnullnullnullnullnullnullnull