Part IV On Entrepreneurship and Management
CHEN Demian


The previous three parts are general principle, generally applicable. They are easy to understand while hard to be mastered. In this part, I will introduce some special principle in our specialty for your reference.


I. On Height
Setting up new ventures and scientific research seem like two irrelevant things. Actually, the same theories can be used in both of the areas. Scientific research is carried out by standing on predecessors’ shoulders. To make your venture successful, the higher you stand, the greater your achievements will be. Height has the following several meanings.
1. Stand on a certain height to see whether you have chosen the right industry, and to examine how the future macro-economy posture, policy trend and market demand will be.
2. Stand on a certain height to watch you competitors. What are you advantages and disadvantages compared with them? How to carry forward your advantages and get over the disadvantages?


II. On Profundity/Deepness and Thickness
Profundity/Deepness can be defined as follows:
1. Have you understood deeply your own business model for the new venture? Is your plan circumspect enough? Have you fully understood the possible difficulties in carrying out your plan? How do you want to get over them?
2. Do you familiar with the industry you are going to get in? What are the resources your already have?


III. On Extent and Broadness
If we regard Monk Sanzang in Tang Dynasty, Monkey King, Zhu Bajie, Monk Sha and the White Horse in “Journey to the West” as a venture team, we can see that even though Monkey King has the great capability, he still could not have defeated all the evil ghosts without the help of the gods in the heaven. To be successful in carving out, you must build a broad and necessary base of social resource.


IV. On Carrying Out the Business Plan
The following should be avoided to have your business plan carried out successfully.
1. Capital chain broken
Many persons set up the business just leaning on enthusiasm, anticipating only the good results. When it comes out that the profit targets cannot be achieved and the capital chain is broken, those who have broad social resources can get financed but most people will fail in there businesses due to not being able to make successful financing.
2. Estrangedness between shareholders
When the business is going well, seldom appear conflicts between shareholders. Once the business falls in hot water, shareholders normally will complain to each other and become estranged. If everybody holds together, the difficulties are still conquerable. If shareholders become estranged, the business will be either broken with the strength separated, or a failure.
3. Making decision at will
Many entrepreneurs of private businesses have a common fault (of course, from a dialectic point of view, it is also a merit) that they make decisions at will. They make important decisions often without careful demonstration, while only based on their judgment. They also have not systematic schemes execute their decision. When China just began the reform and opening to the world, all the goods are demanding and people will make money by doing whatever business. Entrepreneurs who have got the “First Pot of Gold” have their self-confidence expanded in excess. They lost their “First Pot of Gold” soon due to no scientific decision and thoroughly execution.
With the development of the market economy, supply of most of the goods exceeds the demand. Without scientific decision and thoroughly execution, the businesses would definitely fall in hot water.
4. Improper person employment and plan execution
The principle of Mr. ZHU Geliang used General MA Su by mistake and thus lost Jieting also can be applied to operating a business. There are many good plans cannot be carried out or abated because of employees being not competent for their jobs. So when making a plan, you must think over the person who are suitable to make it happen. Generalists are very few. Everybody has his strong points and weakness. It is a key issue to put suitable person on the proper seat. It will be a perfect business, if every position is taken by a suitable person. In fact, such kind of ideal situation does not exist.
To make executable plan, it is the best way to ask your underlings to make by themselves. And then you make modification to make it better. It can not only motivate your underlings and also be benefit for you to examine and train them. If they often work out plans that even they themselves cannot make it happen, it is the best reason to get rid of them. This can also caution and educate other underlings.
5. Without routine meeting
Many private businesses almost never have meetings. The leaders make instructions and listen to reports just at will. Actually, it is necessary for a business to have routine meeting to have work well discussed. It can make work and training a perfect match to have routine meeting.
To discuss the plans made by underlings at the routine meeting can not only improve the plan but also coach the underlings well. Things discussed at routine meetings, can make you know the execution situation of the plan to make necessary adjustment and can also train your underlings.
Besides you and the direct executers of some task may attend the routine meeting, underlings of other positions came also attend, thus collective decisions can be made.
6. Unsuccessful marketing
Sales hold the leading position in a business. Many private entrepreneurs in Zhejiang province began their businesses by selling some products. When got enough accumulation, they make their own investment, R&D and manufacturing. They knew where the market demands are. Once they made successful R&D, there will be no problem in selling the goods. However, many entrepreneurs of hi-tech businesses were originally technicians who had no sales experiences. There failure normally due to having not been salesmen, not knowing the real market demand and coming out with products without market. Even the products meet the market demands, without sales experiences, most of still failed due to not knowing how to open the market.
Commanders need battle experiences coming from real field and when fighting at the front line, he also need go to the real field making investigation and getting known the fresh war situation. As the leader of a business, he should have direct sales experiences, should go to the front line to get known the market situation.
7. Weaknesses of human being
As a human being, we are all born with some weaknesses, such as selfishness, hanker after comfortableness and coziness, eating our head off. You cannot avoid these weaknesses even though you are the boss carving out using your own money. You must notice this problem as an entrepreneur managing you own business.
To get over the weaknesses of human being, you shall have two magic weapons at the same time.
To govern a state, ethics and morality is needed, and also laws and systems. It is the same to govern a business: corporate culture and system are needed.
A business is not a mature one, I think, if it is without its own culture and system. Corporate culture is all the employees keeping in their minds all the necessary behavior guide lines and ideas requested by the business to achieve the goal of the business. System includes incentive system and restrictive system.
8. Lacking of negative feedback system
Even though everybody knows customers are “Gods”, businesses often generate bureaucratism when developed to a certain level. Especially in service industry, the employees at the front service line do not pay much respect to the customers and the boss sits high not knowing the real situation when their business is in prosperity. It might be too late to take actions when sales performance drops dramatically. Of course, the boss will be busier and feel harder to take care of everything with the business growing up. Well, how to get over this?
A business needs a negative feedback system. It means to set up supervise policy and department in a business, which might increase the cost of the business but is absolutely necessary.


V. Epilog
We must be very fated friends, if you have finished reading the columns of “About Us”, “Our Accumulated Resources”, “Personnel Fostering”, “Ideas & Culture”, and “Lectures” in our website carefully. Is there something we can cooperate on? Please read our last column of “Corporation”.