After yesterday’s 6-hour meeting we finally made a decision: focus on programs that may immediately make money and make sure we survive in the following six month; and cut off more than half of our employees — which makes me think what a pity it is for those being laid off, because it’s mainly the executives’ fault. Or to be specific, it’s the boss’s problem that lead to the current situation.
So what he is doing wrong? Not focusing on the business. Since day zero he is always looking for fundings to support our business, which he fails to define; but he always fails to find enough funding to support the company. Each borrowing was used to pay previous debts, which leads to a situation defined in the book “Scarcity”: the poor gets poorer, the busy gets busier. We are always solving problems that are urgent but not necessarily important — we tunnel and we pay for doing this.
But what’s important anyway, for a startup? Finding out what’s unique about your company and proving that this uniqueness has its value. It sounds easy but think about this: is there a startup that isn’t unique. Every startup claims to be unique; so what’s left is about proving the value of the uniqueness, which is your core business activity and which is what tells you apart from others. If you fails doing so, what you’re doing must be wrong or inappropriate at best. For us, we claim that our business model is superior than those traditional agencies and facilitates young people to travel beyond boards. The results? For one and half years we spent roughly 5 million CNY and attracted around ten customers, which by the way, is less than the number of our employees. So if you keep telling me you’re unique, go and slap yourself until you realize you’re just wasting money.
To prove your value you need the right team. There has to be salesmen that are able to get customers, product developers that make sure the product or service is attractive, and managers to setup goals and coordinate the team members. For us, we are incomplete and incompetent. Basically everyone of us is from an engineering background and knows nothing about marketing and sales; yet this is the most important aspect for our company. When everyone is expecting others to generate revenue, no one will. It also strikes me that, when you feel your efforts will not significantly contribute to your company’s cash flow, you’re in the wrong place. Switch to another position or another company. I don’t think there’re more choices for you.
Make sure you have control over your career path; do not focus too much on pressing tasks; step out of the tunnel and also see the big picture. Keep this in mind.Career Entrepreneurship Startup Yabroad