When the boss started his first company, he was in the right place at the right time. Some bosses know technology, others just follow the fashion and enter the industry early. When the people behind come in, the market is saturated and the technical barriers of the industry are there. The boss's enterprise has also become one of the best big companies in the industry.

The boss made money, and when he saw that others were thriving in other industries, he also wanted a piece of the action. After entering an unfamiliar field, just like others struggling in the boss's field, they can't compete with others, just like the white industry, which has not penetrated into the essence of the industry, technological advantages and market advantages. Eat small fish, a big fish, is normal to be swallowed by others or quit at a loss.

After the success of the boss's first enterprise, the boss overestimated his ability. Blind investment, no market research, rushed into unfamiliar areas. Even giants like Tencent and Ali have invested in many unsuccessful enterprises, but they have a large amount of funds and a long life, and their success rate will be much higher than that of ordinary enterprises.

The success of starting a business depends on personal ability, but to be bigger and stronger, the dividends and luck of the times are often more important.

China has a large population, a large market and fierce competition. It is for this reason that the first company succeeded and formed its own advantages, which does not mean that it can succeed if it starts a business again.

Luck is always limited, and the wind will change rapidly. In the field of limited competition, it is relatively easier to succeed. When the blue ocean turns into the red sea, only fierce competition and meager profits remain, and latecomers have to kill their competitors who have cultivated for several years before to make money.

Brand means higher added value, and brand building needs time and huge investment. Nowadays, companies are often eager for quick success and instant benefit, and don't have much patience to build brands. And all kinds of Jerry-building behaviors also make high-quality producers not dominant in cost, which is also an important reason for the collapse of many companies.

As the first company to make money, diversification will often become the cause of bankruptcy. Many people think that diversification can spread risks and increase profit points, but they don't think of many practical factors:

1, diversification means entering unfamiliar and bad fields;

2. To form a new company and team, it is necessary to run in, rebuild products and expand the market;

3. The new company faces more fierce competition, but it does not have obvious advantages;

4. With the increase of business and the expansion of scale, the management difficulty increases sharply and the efficiency decreases;

5. New business needs to be cultivated for a long time, and the investment is large. If it is difficult to make profits in a short period of time, it will easily consume the original profits and fall into the predicament of broken capital chain;

Letv was also very successful at first. In order to become bigger and stronger, we began to diversify and raised tens of billions of dollars. Unfortunately, the new business didn't bring enough profit, only a chicken feather was left.

In that era when it was easy to make money, it was possible to start a company casually. When all walks of life are generally overcapacity, the probability of successful entrepreneurship will become lower and lower, and the difficulty will become greater and greater. When the first company was established, the competition was not so fierce. After making money, the environment has changed, and we can no longer look at it with our original eyes.

The first bucket of gold in life is very important! I remember in 1998, I worked in a high-tech company in Shangdi, Beijing, and went home to take a taxi at night to chat with the driver. The driver said that he was very sad compared with one of his drivers. He went to the countryside with his childhood and then returned to Beijing. He went to a large state-owned enterprise and became a driver. It's great to go back to work in the city and become a driver.