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民营企业六忌(Six private enterprises)
民营企业六忌(Six private enterprises)
One bogey: fall into the trap of diversification.
First, diversification will make the production and operation of private enterprises meet the difficulties of people, money and goods at any time. When enterprises diversify and make excessive investment and cause insufficient funds or even a serious shortage, it will naturally cause enterprises to get into trouble. Whenever this happens, the only way to save the enterprise is to borrow. The debt is quite difficult for private enterprises, this is not only because of the difficulty of private credit degree is not high, and there is no enough property guarantee, which often make it in have no means to borrow money. At the same time, if the enterprise because of borrowing too much, too heavy or other reasons, unable to repay the debt on time, will inevitably make the enterprise worse. It is more important even in normal circumstances, the interest is to enter the final product cost, higher cost, lower profits, reduce the accumulation of income, atrophy, lack of stamina, lack of competitive power, if unchecked, may also lead to the decline of business or even bankruptcy and close down.
Second, diversification will make the private enterprises not specialized, it is difficult to concentrate on creating a competitive, excellent brand products. Many instances at home and abroad remind us of all the private entrepreneurs: what is your companys position at home and abroad? If its not a name brand, you cant be a first-class or second rate product, then youre ready to fail, ready to step down, ready to eat the bitter pill.
Third, diversification has been unable to adapt to the industrial economy era of average corporate profits, diminishing returns and profit requirements.
When we take a careful look at the development of private enterprises in China, it is not difficult to find that most of them are produced and developed at the beginning of reform and opening up. It is that time, gradually in
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