6 tips for new entrepreneurs to help you save 1 million

The main content of this article is to write six advantages for novice entrepreneurs: don't buy new equipment, don't rent a site blindly, don't recruit employees blindly, don't innovate blindly, don't stock up blindly, don't engage in price wars blindly. This article is suitable for people who want to start a business. First, understand what not to do when starting a business.

More than 90% of novices’ first business venture ends in failure. They aim to get rich but end up in debt.

Since the village chief entered the workplace, he has had several experiences of starting a business in partnership, and has also seen many of his friends fail in their business ventures.

So here, I would like to share with you some of my suggestions for novice entrepreneurs.

1. Don’t buy new equipment

Whether it is running self-media, running a restaurant, opening a clothing store, etc., many people are always thinking about buying new equipment.

In fact, it’s not about how easy the new equipment is to use, but a matter of face.

I feel that I have started a business and have money, and I want a good omen, so how can I use second-hand goods? It's so embarrassing.

In the end, we bought a lot of new equipment, but there was no increase in performance, a lot of extra costs were incurred, and when it came time to dispose of them, they were still worthless.

For example, computers, office desks and chairs, etc., cost three to five thousand when bought and three to five hundred when sold.

2. Don’t rent a venue blindly

My advice is that if the office space is not necessary at the beginning, you should never rent one.

Even if you have to be shameless to rub it, you have to rub it off.

Especially when the team has only three or five people, they will borrow when they can, use when they can, and make things as simple as possible.

I used to rent venues of 300 to 500 square meters, but now the maximum is 70 to 80 square meters.

For some other businesses, it is recommended to start with setting up a stall first. If it is successful, then consider other things.

Many people cannot recruit talent because they don’t have a venue. In the current environment, as long as you are not a top-level project, you can recruit talent even if you have an ordinary project in the suburbs.

Take myself as an example. Our house rent was about 3.8 per square meter before. Now we move to a place where it is 1.5 per square meter. There is a subway downstairs and a shopping mall within 100.

So even if you want to rent, there are cheaper ways.

3. Don’t recruit employees blindly

If you are not even clear about what your business is and whether it is feasible, just give yourself a break first!

Don't rush to recruit employees. Even the cheapest employees will cost you 50,000 or 60,000 yuan a year.

It's enough for me to lie down and live comfortably for a year with 50,000 or 60,000 yuan.

Especially for technical staff, one employee can earn more than 100,000 yuan a year, so you must be cautious when recruiting.

If you can handle it alone, you must not hire another employee.

And my personal advice is that for novice entrepreneurs, it is best to run the business on their own. The purpose of hiring employees is to expand the business.

Unless you have already received an angel round of three to five million, even if you have this money, you still need to be frugal.

4. Don’t innovate blindly

I always feel that others are not good at this or that, and I always have a dream of changing the world.

But I must advise you here that innovation comes at a huge cost.

Don’t be proud of being innovative. Most ordinary people’s innovations are just for their own pleasure and have no practical value.

The more you innovate, the more users resist.

The higher the cost of your own promotion, the longer it takes to recoup your investment.

5. Don’t stock up blindly

If you are starting a business selling physical products, whether you are opening an online store or an offline store, or doing wholesale.

In short, don’t stock up blindly. Stockpiling is a very dangerous thing as the market conditions change rapidly.

Newbies in e-commerce should start with drop shipping, while those running offline stores should take more small items. Don’t be misled by others.

It may seem like the price discount is low, but in fact the risk of other people's stockpiling is transferred to you.

Especially when it comes to stockpiling in the field of fresh fruits and vegetables, if novices are not careful, the loss will account for half of the goods, and you will lose a lot of money.

6. Don’t blindly engage in price wars

The first move many people make when doing business is to hold promotions. After all, the prices on so many platforms are too low, so users won’t come to buy.

However, blindly engaging in price wars and blindly lowering prices will only make your business more and more difficult.

First, in the user's perception, you are only worth this money.

Secondly, it will be difficult for you to raise prices in the future because there will always be others offering lower prices than you.

When we make products, we must always focus on quality and create a reasonable profit margin, otherwise you will be making things difficult for others by engaging in price wars.

The above six points are some suggestions I would like to give to all novice entrepreneurs.

Starting a business is not such an exciting and beautiful thing. It is full of unknowns and is constantly full of twists and turns.

So I hope everyone can be cautious when starting a business, especially at this moment.

Author: Shili Village, WeChat public account: Shili Village