Thursday, August 5, 2010

Unavoidable five "winter" rule



Editor's Note:

This is a rare "winter."

In the past, a long time, innovation and entrepreneurial parties concerned, concerned about going out, concerned that the Everlasting, and think of how to do a hundred years old. Now, how to "winter" to become entrepreneurs gathering had a problem.

Recently, the China Youth Daily reporter interviewed more than 10 entrepreneurs and professional managers, they talk about how their businesses will "winter" and they the "winter" feel.

"The current financial crisis, according to my experience of doing this business, not seen!" November 27, in the "2008 Annual Meeting of Chinese Enterprise Competitiveness", Lenovo Holdings president Liu so assessment of the current financial crisis. In fact, his last on December 8 in a meeting, "In the current situation is still very sensitive", Legend Holdings will invest in companies as soon as possible to sort out again, "the cultivation of cultivation, the exit out" to ensure that the company has enough money to deal with the arrival of "winter."

I recall last year, felt the "winter", Liu felt, felt last year, may be "the winter of Shenzhen", and now the "winter", in the end is a "warm winter in Beijing" or "the Arctic winter", "I can not clear. "

Last year's proposal to "winter", and also Alibaba Group Chairman of the Board Ma.

"Why Alibaba listing? A very important reason, is ready to 'winter'." At that time Ma "winter," saying that many people disagree, the company listed in the show Ma.

And now, "winter" has become the consensus of entrepreneurs.

Rule 1 Cash is king

This year, especially along the southeast coast, the company closed down, the boss, "jumping" of the news from time to time, and mostly because of funding caused by strand breaks.

"This' winter 'than ever before, than we think to be serious, it is not just a financial crisis has seriously affected the real economy. Can be said that the history of the most cold' winter '. Because of this' winter 'is global, "Xinhua CEO Jun Tang said both groups, in this" cold, long winter, "cash is very important," we will' winter 'as an opportunity to see if there is no possibility of mergers and acquisitions . "

On the importance of cash, New Oriental Education & Technology Group chairman Mr Yu also very touching.

"New Oriental from the beginning to do now, I always stick to the principle that the funds kept by enterprises must be able to withstand any time are the most extreme problems. For me, the most extreme hypothetical question is on the same day , we have to refund customers, my stock funds, must meet the customer's money and returned the enterprise is still not in debt, or debt in a certain reasonable limits. "Mr Yu said, is this is the idea to him through the most difficult time.

SARS, many students come to a refund, New Oriental's 150 million yuan accounts and returned the 130 million yuan.

"If then, we have the money to invest or buy shares, there will be a current New Oriental. Many entrepreneurs make the current cash is king, I feel is correct. In fact, since the reform and opening up a lot of business failures Most of all funds strand breaks collapse. "Mr Yu that the integrity and security of capital chain is critical for an enterprise.

Rule 2 practice hard business basics

Alibaba B2B David Wei, CEO briefing, October 21, Alibaba announced the launch unprecedented 30 million U.S. dollars into the global-scale promotion of more than 20 countries in a significant increase in advertising and media exposure, to help SMEs explore overseas markets vigorously. November 3, Alibaba launched a new generation of tailor-made for SMEs exports - "export through." Recently, the company was also in Zhejiang, Guangdong, Sichuan and Tianjin government to start the massive popularity of e-commerce projects to promote local small and medium enterprises entered the e-commerce.

Appears in Wei, Alibaba did so, as Ma in the "winter's mission!" Said the - "If our customers down, and we also see a spring under the sun!"

Wei, the deepest feeling is that in the "winter", the enterprises must practice basic skills, strengthening innovation and professional services, "a company in Guangdong, and now it is hunting for leather products, leather and equipment, gross profit margin of these products high, highly personalized, but the volume is not large. We believe that this personalized, professional economic form in the future success. "

Liu that, in such a Huanjing under, businesses should in operation management, financial management, develop strategies side, "a part of a link could not be more optimized and the best," although not that there is such a good ability of enterprises can live continue, because the environment is unpredictable, but if needed to train their enterprise internal organs, once warmer weather can be up companies.

Rule 3 to seize the opportunity to reshuffle the industry

Strand break down some enterprises in the capital, while some prepared the "winter" Enterprise is looking for opportunities everywhere.

December 2, Shanda Interactive Entertainment Limited Shanda Games Ltd. through its 18 funds, strategic investment Haiwei Lai Information Technology Co., Ltd. and Shanghai guess Fun Network Technology Co., Ltd..

"This collaboration marks the grand opening of the road is constantly a step forward." Chairman Chen Tianqiao in the grand view, this "winter" is a grand expansion of investment in the gaming area of opportunity.

Mr. Chen said that Shanda will not be because of reduction in the so-called winter of strategic investments, with many big hand in hand with industry peers is big responsibility. More at low tide, the more to take advantage of big capital, management, human resources position to promote the development of the industry. Mr. Chen to encourage professionals from various quarters for 18 funds, stressed if they are good projects, good ideas will Yigai give full support.

Turning to the "winter", hollyland chairman Luo do not have a feeling: "The catering industry, the financial crisis on our relatively small."

"So, we want to build more stores, but not difficult to open up shop, are some of the industry downturn, it is a good opportunity for our development." Luo said.

What is more surprising news is that in some companies have layoffs and pay cuts when they are ready to hollyland Luo all store-level employees more than 20% of annual salary increases.

Not only are private enterprises, some large and medium SOEs is hoarding cash at this time to prepare for M & A expansion needs.

According to media reports, COSCO President Wei Jiafu has announced that a critical situation should the global economy, large-scale cancellation of the COSCO Group's companies ship construction orders or plans, the number of ships involved in at least 126. Meanwhile, the hand gripping the COSCO Group is now nearly 80 billion in cash, will wait for the other shipping companies to continue building under construction when the bargain-hunting ship is free of capital acquisitions.

In the November 11 meeting of the central SASAC emergency video conference on the economic analysis of enterprises, the SASAC Director Li Rongrong is stressed that "we are not blindly central enterprises mergers and acquisitions, keep the cash, a good selection of companies worthy of investment, this year there may be many business worth investing in, but next year will be more. "

Rule 4 rely on staff

After all, companies like hollyland as salary or less, to make public such as Mr. Chen "no layoffs, no pay" commitment, it is not easy.

"Even in the face of the global economy downturn, Shanda will never take the initiative to structural redundancy." Mr. Chen said the grand structure of the organization and personnel are now quite reasonable, reasonable structure, the wealth of talent is business. Session in the autumn of this year's recruitment at the grand, Chen personally led a grand selection of high-level personnel to the scene.

December 3, in a theme of "responsibility to lead the future" activity, some entrepreneurs have also said that in the current circumstances, employees are "very important asset."

Amway China Commodity Co., Ltd. China, Vice President Huangsheng Wen stressed: "We deeply believe that business can not develop without the collective wisdom of employees there are joint efforts, that if some day, companies are forced to cut operating costs, I I believe, we will cut labor costs on the final consideration. "

"Now some fluctuations in the market, some difficult economic times, we are more concerned about how to rely on our staff, pool the strength of our team." Baosteel Iron and Steel Group Co., Ltd Development Planning Commission and executive deputy director Li Haiping, said, "We absolutely staff will not do harm the interests of disarray or Banded thing. "

Five conservative rule

In the interview, the majority of entrepreneurs and professional managers believe that this "winter" will be longer.

Wei, that the second half of next year, is the most difficult times. Christmas retail situation in the West this year is expected to very bad, this will seriously undermine the first half of next year, global procurement, and reflected in the delivery of domestic SMEs, is the second half of next year.

Jun Tang to judge, on current trends, I hope this time next year could see "warm winter" to come.

Liu said that "three years to fully restore very bad."

It appears that this "winter" will be longer, then entrepreneurs should also pay attention to it?

"Companies do the same with life, do not be too anxious to give himself room to stay, to leave room for others." Mr Yu said that many business failures because the time in to make money too aggressive, and "not conservative."

Lang appears in the Economist, "the most conservative way of saving money." Recently to thousands of entrepreneurs, managers class, he warned the public entrepreneurs, to reduce debt, increase cash, stop investing.

"Conservative" in people's habit of thinking, and often dull, lazy together. But now it seems "conservative" point for entrepreneurs, businesses may be safe, "winter."







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