It has been a long time since I wrote this series for myself. I lost a piece of hair at the back of my left head, commonly known as “ghost shave head”, which was caused by pressure. I think stress is a normal part of our life and we should get used to it.

There are a lot of good points and a few bad points in my recent thoughts on entrepreneurship. The bottom line is that as you learn more and more about the market, you will find that many things are right and wrong after you try them, and you will probably never try to eat shit again. And that’s why successful serial entrepreneurs tend to build companies faster and faster. Such as Li Bin’s NIo car, such as Yang Haoyong’s Guazi used car, such as… .

In your first or previous venture, you’ve had to make countless decisions about what’s worth it, what’s important, and what’s worth dying for. Then, you understand, accumulated experience, suffered losses, zhang insight, accounted for the ash, the last remaining is that experience wind and rain after a face calm.

I’m sure many of you know two buzzwords:

  1. Lean startup
  2. A single point of breakthrough

A lot of smart people get it right when they hear these two words, because focus, focus, and iteration quickly, that’s what it’s all about. But it doesn’t seem to say anything. Which is the point? How to focus? How to iterate quickly? These concrete decisions depend on the entrepreneur’s own wisdom and bold choices. As a result, books are popular, and there will never be many successful entrepreneurs.

A wrench

I remember writing a long time ago that there are different levels of entrepreneurship, for fun, for demand, for business… And I also say that a qualified entrepreneur should at least start with the business. In plain English, it means knowing why the things you do every day translate into business value.

If the money must do water, everyone’s business is big and small, some people want to be in a pot of flowers, some people want to plant a tree, some people want to have an orchard, some people want to pregnant the whole forest. Planting flowers naturally takes less work than planting trees, but if you really want to grow a forest, it’s important to start with a hoe in the ground.

So one of the most important questions you’ll be asking yourself over and over again is:

How to commercialize it sustainably?

And then you write down the clearest and most convincing business model you can think of, and that’s where you see the end, and where you start is the opportunity that you see through your intellect. The process of entrepreneurship is to connect the opportunity step by step to the realization of commercialization, in addition to all the work for a young start-up are futile and waste. I am convinced of this.

Q: What do I mean by a wrench here? A: That is, the fundamental condition on which all intermediate conditions depend in your chosen path of commercialization. In other words, the only right thing to do to move everything.

Here I would like to take a simple UGC community commercial advertising model as an example to analyze:

  • Total community users:n
  • Percentage of active users:x
  • The average user produces content:0.05
  • The average amount of traffic per content is:10
  • The average click-through rate per click on an AD is:0.1
  • The average AD click price is:P
Total revenue = traffic * click rate of advertisement * average price of click = (active traffic + content drainage) * Click rate of advertisement * average price of click = (N * x + N * 0.05 * 10) * 0.1 * P = N * (x + 0.5) * 0.1 * PCopy the code

Of course, this is not to say that the percentage of user-generated content, the percentage of content traffic brought in, and the unit price of AD clicks cannot be increased, but these numbers are not the early aspirations of a community that need to be optimized. And the more important thing is that for the average have “barriers” of products, the growth of the overall users should be able to stimulate the growth of the proportion of active, and active ratio should also stimulate the growth of the growth of the overall users, and can stimulate a surge of total active active flow (this is the basis of a good product can be exponentially!) .

Take social networks for example. The network effect enables the growth of total users to rapidly increase the proportion of active users, which in turn attracts more users to sign up. The logic behind content data recommendation products is that the growing number of total users gives enough historical data on content consumption to make recommendations more accurate and therefore a higher percentage of active users. Active users find products they want to share more through more accurate recommendations, and tell them to more people so as to increase the total number of users.

That is to say that n and x of a good product are pushing each other, and you can imagine that x is equal to f of n, where f of n is a function of monotonically going up. So n times x is O(n^2), so the total revenue is also O(n^2).

When you think about it this way, you begin to focus on a single spanner that, once turned, makes your whole business logic work. And this wrench, is often in A => B and B => A to choose one end of the technology, operations, products, services… To achieve.

For example, our product is to optimize A => B, and the initial accumulation of A we need to buy or find A way to deal with, and then B comes, B is big enough, it will stimulate A in turn, and then we do not need to continue to buy A. Of course, good opportunities and times are that we find that we don’t need to buy A, because A is what everyone needs at the right time and place at that time.

  • Good search results lead to more traffic, and traffic leads to better search results
    • A: Search traffic
    • A => B: How can traffic lead to better search results?Search engine algorithm
    • B: Good search results
  • Brands bring sales, and sales shape brands
    • ASales:
    • A => B: How to let sales lead to brand?Brand Building Strategy
    • BBrand:
  • Good friends bring communication, and communication brings friends
    • AFriends:
    • A => B: How to make friends communicate better?Instant messaging on mobile networks
    • BCommunication:
  • People around bring more opportunities for making friends, and greater opportunities for making friends bring people around
    • A: People around you
    • A => B: How to make people around you have more opportunities to make friends?Mobile PHONE GPS
    • B: Opportunity to make friends
  • Good content distribution leads to more content consumption, and more content consumption leads to better content distribution
    • A: Content consumption
    • A => B: How can more content consumption lead to better content distribution?Content recommendation algorithm
    • B: Accuracy of distribution

Often, one of these ends is an opportunity, and if both ends are opportunities, that’s a really big idea! Then it occurred to me: “Yi has Tai Chi, which is the birth of two instruments, two instruments of four images, four images of eight diagrams.” , is called the avenue.

Tai chi