Enterprise technical service (to say in plain English, is “outsourcing”) to the third year, do some experience summary, talk about small and micro enterprises type of outsourcing customers.

Why talk about failure experience summary?

It’s bad luck, it can’t spread positive energy, why write it? It is true that our culture has not been very tolerant of losers. Winning and losing is part of our East Asian culture. Is the traditional, but not always correct, I always feel that help “failure” to find his mother is the key, only meaningful, and this li make-up test effective summary of the replay.

Conclusion first, almost no small or micro businesses due to product or technical problems caused by bankruptcy. Due to the high cost of trial and error for small and micro enterprises in China, many new enterprises will fail to survive and face bankruptcy before they can effectively straighten out the sequence of corporate development and online product iteration.

Data have been reported as follows:

It is reported that China has an average of 2 enterprises fail every minute, about 1 million enterprises fail every year! There are more than 80 million small and medium-sized enterprises in China, and the average life cycle of private enterprises is only 2.9 years. Less than 7% of them survive for more than 5 years, and less than 2% of them survive for more than 10 years!

In other words, more than 98% of China’s smes die within ten years of their establishment. Most of the reasons for the failure of these enterprises are the high tax cost compared with other countries. Financing cost, labor cost, land rent cost and logistics cost are rarely caused by business, product or technology factors.

In 2016, it reminds me of the time, as a clean patriotic entrepreneurs in the business of glass cao has the great king, the king chose to build factories in the United States, was once sparked heated debate, and he break fingers with domestic journalists calculate, said that the United States in addition to artificial more expensive than domestic, land, tax, electricity, everything is much cheaper than domestic, The macro tax burden on manufacturing in China is 35% higher than in the US, which is far too high. His exact words: “It’s not me complaining, it’s not me running. I just want to remind the government, but also to remind entrepreneurs, to remind everyone of the sense of crisis, to tell everyone to be careful.”

In the “difficult” market game mode, the surviving enterprises, to a certain extent, must have a strong survival ability, as well as a high efficiency of trial and error, one wrong step, instant disintegration. This requires small and micro enterprises, in the initial stage to clearly plan their own strategic direction, clear tactics to win. The strategy may be manageable, but it is actually difficult to come up with a “one-trick win”, because any organization or individual needs to explore into the “no man’s land”, which depends on luck as well as strength, not all of them can be quickly harvested. At this point, it’s all about the luck, ability and execution of the founders themselves. As one of the small businesses to provide technical services to the market, we also give them advice, often in good technical services at the same time, also hope to be able to help for their business strategy, try to help the customer straightens the business development needs with the company’s strategic choice, staging iterations, but limited to budgetary constraints, such as customer couldn’t afford the extra planning consulting fees.

There is a truth that many partners have yet to understand. When they come to us for product customization services, it’s not about customizing a part, it’s about customizing a system, a system that their whole company has to match up to work. If the internal cognition of the enterprise can not synchronize the evolution and update, it will often take the customized software as parts, and finally find that the customized parts look very suitable, but ultimately can not effectively match their company’s system operation, just like taking the win10 software installed in winXP above, incompatible is a large probability.

There is another kind of customers, the company faces the market environment is the product for the market environment (the vast majority of the initial enterprise), because there is no right balance cost budget and subsequent optimization of rhythm, and the speed with which the company organization to adapt to the environment and custom software project iterative speed once don’t match, the project is like chicken ribs.

In addition to the above type of environmental impact, another type of failure is the refusal to spend a large amount of money to ensure that the service is available. An ATM that doesn’t pay money is an iron box that makes no sense, just like countless apps that do a beautiful job, but do users really need a beautiful interface? Don’t need. However, due to the limitation of cost and the underestimation of the complexity of the main core service function, such failure resulted. This part of customers enjoy our service, just like looking for a construction master for the first time to decorate a house. They often spend too much time worrying about scraps and ignore the need to concentrate all resources to ensure the main service of the finished product APP. Another point is that common knowledge may not be the same, and consensus may not be problematic. All because we know the tacit knowledge may be customers do not know, customers know the tacit knowledge we do not know, put it bluntly is “such as mountains”, and this requires a certain run-in, in this case, to quickly omit communication costs, compression project period will lead to big problems. Although sometimes we can also understand, this kind of problem, a lot of time also is forced by the situation, the customer through the comparison, wasted a lot of time to consider the price problem, and ignoring the engineering implementation of hidden problems, but from the results, the final project completion in haste, project implementation results do not agree with vision, not the satisfaction of both parties.

In view of the above problems, I would like to talk about my views.

1. The wisdom of balancing

Small and micro enterprises looking for software outsourcing or design outsourcing, whether you do APP, small programs, UI design and so on, you must be treated as a basic project, the project is like decorating a house, choice is the key, the cost is the key.

Drawings and specific finished products are different, to perfect will work hard, to fast is impossible to have high precision.

Like business growth, a project has trade-offs. Anticipation makes progress, unpredictability makes waste.

2. Systematic ability

Given earth, water and nutrients, can we make an apple?

Making apples out of soil, water and nutrients is the systematic ability of apple trees. We often suggest that when customers customize a product, their enterprises or organizations also need to build supporting system capacity, just like you want to have a good figure must have control diet, maintain exercise and long-term self-discipline system capacity. Cooperation with customers is like helping them to plant an apple tree garden. “Good apple tree planting” is also our own system capability. But at the same time, the client needs to adapt and adjust the team, just like adapting different soil and water for different apple trees, and this requires patience.

3. Think iteratively, core functions are most important

Regardless of the development project, our own life is also the product of iteration, starting with a kernel and continuing to iterate and make small choices to achieve our own life.

There is no need for the product to hold back big ideas, there is no need to do all the functions well and then release them. The core function points of the product are more important than anything else. Other function points added based on the core function are not so important, and can be done step by step.

Goals can be ambitious, and versioning is critical.

4. The market is never short of opportunities, just good products

Cowards never leave, the weak die on the road, and we are left to move on

“– Phil Knight, Nike founder

Nike’s founder, Phil Knight, says in “The Shoe Dog” that he started his business in 1962 and never really changed for 13 years until Nike’s debt crisis erupted in 1975. Every day is full of a variety of depressed, helpless, and even nervous, embarrassed. These are not what ordinary people are willing to endure. But his products, we still wear on our feet today, together.

If the founders of small and micro businesses want to make a good product, they must have real love and persistence to barely complete a basic project.

We are willing to work with you.

Andy

Founder and CEO of Reed Technology

Reed Technology – Guangzhou professional software outsourcing service company

We provide professional services such as wechat mini program, APP application research and development, UI design, etc. We focus on Internet product consulting, brand design, technology research and development and other fields

To learn more, visit www.talkmoney.cn

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