Hitting a trap is a problem that every boss will encounter. If a factory wants to transform into e-commerce, the general idea is to find a very awesome person to be the person in charge of e-commerce. This situation cannot be said to have no results in all, but there will basically be no good results. This pit is a must-step by most e-commerce people.
The second one is the agency operation company. When we look for an agency operation company, no one is reliable, and no one can cooperate for a long time. Nowadays, e-commerce is the era of high-quality e-commerce. Product ports, market ports, supply chain ports, etc. must be deeply cultivated, constantly polished, constantly product iteration, self-iteration of the team itself, and bosses’ foresight and grasp of the industry.
If you can’t do these things well, such as products, markets, supply chains, teams, and bosses, it is almost impossible to do e-commerce well.
When doing e-commerce, you must first solve the product problem. If this is not done well, everything will be useless later. For all businesses, products are the most important thing. You can spend money on channels (traffic) but the conversion rate cannot be solved. The conversion rate depends on the product, so products are the most important core point for the future survival of the enterprise.
Nowadays, most e-commerce companies are operating ports, focusing on how to drive the express train, etc. If you ignore the product port and make more efforts later, it is equivalent to stepping on the brakes and stepping on the accelerator, and you will definitely lose money in the end!
After choosing the track, the thinking logic of each stage is completely different. First, you must think clearly about what you want to do so that you can go up to what you do. No matter what you do, the boss must be very clear about what you want!
When the team was young, the method of leading troops was different. More than 20 people could use a paternalistic way of thinking. I am the boss, and I will take everyone to make money together. With the development of the company, the boss’s thinking must be greatly improved. You are running an organization, how to operate this organization, not how to operate this category and industry.
30 million is a big threshold, with more than 30 million. The boss cannot continue to cultivate teams, incubate and cultural construction without thinking about teams, and this is also the reason why we want to make a breakthrough.
Each boss has different demands and the company's strategic layout is different. For example, some bosses make money, while some bosses want to go further. I just want to help others do something, and don’t worry about what the result is. Our attitude towards setting goals is to accept it.
定目标之前，我们会想好两点，第一结果不好，能不能接受，第二结果不好，能不能承受。承受就是保证自己不倒闭，一定要把你承受的底线设置好，对结果不执著，然后全力以赴往前冲。如果今年没有达到目标不要紧，复盘一下，明年继续，但千万要守住你的基本盘。
After achieving 30 million, I think stability is more important than anything else. Just as Sun Tzu's Art of War says, winning first and then fighting. When the basic market is guaranteed to not lose, you have an unlimited chance of winning. If the basic market is broken, there will be no chance. These are two basic points we stick to.
Another point is that the team cannot seek comfort. If you feel that it is OK at this stage, you don’t want to move forward much. Once the boss has this idea, it may be 2-3 years to give you time . Why do you say so? The first team looks at you, and if you don’t leave again, the team will leave you one by one. Another market does not allow you to stay and eat bonuses unless you have something core.
I think e-commerce companies in the future must first build their organizational structure, and secondly, branding, which is also the core point. We will choose many projects to make money, but we must take out 1-2 projects to make brands. Brands will be the direction of long-term development of e-commerce companies in the future.
Our goal this year is very clear, and we need to increase sales by at least 50%. What actions should we do? The most basic thing is to increase team personnel, increase categories, increase according to the market and our supply chain capabilities, and how much to invest. We are very clear about these goals.
In order to exceed 80 million in performance, we conducted an inventory of personnel last year, sorted out the supply chain, and analyzed the data for a whole year. What should we do this year? We completed this work during the period before the Spring Festival. Our company's annual report starts from April every year and ends at the end of March the next year because our products have stronger holiday attributes.
Every manufacturing enterprise is similar. It’s two or three years better, and it’s a little worse. It’s been like this. It’s never been better or comfortable anyway. The epidemic has no impact on us, especially in the year of the epidemic, we gained a lot and made a lot of money. When the epidemic first started, it happened to be around the Spring Festival. All the cities were closed during the Spring Festival holiday, and they were all confused. All plans were disrupted. We started looking for exits and found the packaging box for masks.
At that time, our employees directly made the details page at home and posted it online. It exploded as soon as it was sent. At that time, the factory asked the production to be stopped, but because of the epidemic prevention products we produced, production could be started. In the past six months of the epidemic, we made an extra 3 million. If we didn’t make mask packaging boxes, we would have lost money.
After everything was normal, we returned to the original business structure. In the past two years, the online business has been smooth and has maintained sufficient profit margins. The cost of investing in marketing advertising every year is five or six million, less than 10% of the total volume. I am both an e-commerce seller and a producer of my own supply chain.
In the future, e-commerce companies have their own production ports, and there will be great opportunities. It is difficult for dealers and other people to get goods because the profit margin is either taken away by channels or taken away by factories. Those who transform from factories to e-commerce are the future trends, but factory-type bosses are not familiar with e-commerce and have not yet understood the underlying logic. Once they understand it, it will be easy to do e-commerce.
First of all, the product port is the product port. It is necessary to ensure that there is a 3-fold difference between the price of the product from the factory and the terminal, and at least 1-fold difference. Factory-based e-commerce companies can do it. In fact, the overall logic of doing e-commerce is the same. In the end, it is the conversion rate issue. All the actions taken are working hard around conversion rate.
One problem with e-commerce bosses is that they copy and see that a product is well made, so they can make the same picture and product, and they will kill each other. Don’t expect to be able to do it. It’s impossible. Bosses with this kind of thinking must not do this. This is our experience.
There are great opportunities in the Red Ocean market because there are market sizes, but the products must be differentiated. After the product is launched, it is a problem of click-through rate. You can spend money to buy the click-through rate, and then it is a question of whether you can convert, and ultimately it is product strength.
Every red ocean market must have market loopholes. How to find this market loophole? It depends on how much thought the boss has put into his industry, how much things he pays attention to, learning ability, cognitive ability, etc., and he must exercise his ability to capture the market. Some methods may be right next to you, such as a way to make cosmetics is very suitable.
The summary is the boss’s deep understanding of the industry, his in-depth understanding of the industry needs, and his deep understanding of his own products. Take us as an example. We have been on the road to developing products. After developing a product, we will make it in the form of a matrix. After measuring a good product, we will concentrate our forces to focus on making money.
But we must grasp one thing: the first 50% gross profit is to ensure the gross profit while also making the product texture, which tests product research and development. With too many product development, the cost is very large. Because we are a factory, we have achieved production and sales at the same time. For a plate of 30 million, our working capital is only 2 million.
We will never stock up on a large scale, and all the products in the early stage are produced in small batches. For example, the gift box products for the Mid-Autumn Festival in 2022 are now being designed. The proofing fee will only be invested in the early stage, which is about hundreds of thousands. After proofing, it will be placed in the market and let the market choose. After the data is measured, it will select several OK models and then send them to the supply chain for production.
When you finally start shipping, you will produce and sell at the same time. As long as you don’t stock up, e-commerce will not lose, it’s just a matter of how much you can win . The biggest risk problem with Double 11 is stocking up. If you don’t stock up, you can’t catch it. If you stock up, you can’t sell it. I don’t think it’s too important to pay attention to sales. How much you sell doesn’t matter, how much you earn is important. Whether to make this product depends on profit. Everything serves profit. I don’t think anything else is important except profit.
I opened my cognition and communicated with my peers through learning and contacting different people. Before I came out, I only focused on details in the company and became narrower and narrower. Now I have built a team and cultivated people from various positions. These people are willing to follow them, solve this problem first, and then free themselves.
In the past two years, my adjustments have been to let others do what they do, and I will never do it myself. After liberating yourself, expand more and more dimensions, join the circle to learn, understand your connections, improve your thinking and cognition, so that the company will become clearer and clearer.
After the cognition is opened, there is a chain effect. If I fall into a small circle of the factory every day, I feel that there are more and more things, and it is difficult to cross the threshold for jumping out because it will be painful and insecurity, but once it jumps out, it will be completely different.
I just force myself to accept this sense of insecurity. Sometimes I know that if I do this, I will definitely do it well, but I have to restrain myself. This will cost you. Just this, I calculated that I lost at least hundreds of thousands of dollars last year. Although it would be better to go on it yourself, to make the team grow, you have to try and make mistakes.
A boss's growth is also through trial and error. You can forgive your own failure. If the person in charge of the team fails, you will not be able to grow if you do not forgive the other party. This is very important. You must do this psychological construction for yourself. First of all, you are not sure that he can go on with you. Secondly, he is willing to go on with you. He can live a good and bad life.
Another thing is that the boss’s intention is very important. You can receive it out of training and driving him. It is not that he can say good and beautiful words. He can feel it by drawing a big pie. He can feel what your attitude towards him is. This is very important.
Employees follow you, whether it is income, growth, or sense of security, it is a sense of trust. Why do you believe in you? First, take them to win battles, so pay attention to the team and make them have confidence in you.
When I transferred from the factory to the e-commerce industry, it was also the same process, which was very painful. We once couldn't pay the salary for 5 months, but at least the core people didn't leave. When we moved our factory, we were seriously injured due to our mistakes. Because we had no idea about the transformer, we moved to a new factory and found that the transformer was not enough when we started construction. We wanted to use a 250-kilowatt transformer, but the transformer in the park was only 80-kilowatt.
This incident took half a year tossed, and the losses were heavy, and it was neither to stay nor to stay. The expenditure that could not be produced in half a year and had to be continuously invested is extremely dangerous. This tests your integrity and dishonestness. When you are not good, there are many doubts.
Living was what I told the team at that time. If we choose to live, we have a little less reputation. What should I do? Living is more important than anything else . Later, I gradually got better and started to switch to e-commerce. The people who switched to e-commerce team didn’t understand, and the situation was very stiff. I invested a lot of money in those one or two years, and failed again and again, and even millions of dollars were spent. I couldn’t pay my salary. I still had to continue investing like this, but there was no way out.
When we started e-commerce, we spent nearly 500,000 yuan on tuition fees for training institutions. From the time I started my business to now, I have never thought of giving up, because giving up also requires a cost, and even the cost of giving up is even greater . So we don’t think about the things we give up, never think about how to give up, how to close the door, just think about how to do it, how to move forward.
When I was doing e-commerce and now I was doing e-commerce, my method was matrix. After two years of verification, it was ok and effective. It was difficult for us to achieve TOP in the entire festival and packaging industry. I observed that those TOP companies started in at least ten years, and 70% of them were in about ten years.
When running a company, you will definitely encounter someone resigning from the team and the people you trained have "betrayed" them. In the past, you thought it was someone else's problem, but now when you reflect on yourself, you are actually not good for yourself. Most of the employees' demands cannot be met. Apart from the deviation of values, we have not fired people in normal circumstances.
Finally, from your own perspective, if your team is good enough and the platform is good enough, employees will not be willing to leave. For team employees, I have always instilled a way of thinking in them that you can be brave enough to do it. If you say you do it wrong, I will pay the bill.
I can accept the losses caused by your mistake, but I can't accept that you don't do it. If you have eight hours of gangster life every day, I can't accept this, but I can accept that I lost 100,000 and 200,000 yuan when I bought a product, provided that your intention is right. After the summary in the future, we will continue to do it. This is acceptable.
The most important quality of an entrepreneur is that the entrepreneur’s aspiration is very important. What is your mentality about the team? Do you want to lead them forward, or just treat him as a job? The higher a company moves, the more win-win thinking, the more altruistic thinking a team can get it.
The second is the ability to learn continuously, and the third is to find a point and iterate continuously. The company must have the ability to think quality and long-term quality. Only by constantly iterating from the three dimensions of points, lines and surfaces of products, markets, and supply chains, can enterprises go further. Entrepreneurs grasp these three points well, and nothing can be done well.
When people encounter problems, they will have two directions: one is to look outward and the other is to look inward. When people look inward, they will grow. I have also told my employees that if you don’t know how to look at yourself, you can’t grow. You will always find some excuses to look at others. You can only grow if you look at yourself and understand yourself.
We ourselves are the root of everything. For example, if you are kind to me, it is the signal I give you. If you hate me, it is also the cause of what I give you. You have to look at your own reasons. You must learn to find the reasons from yourself first. If you want to move forward, whether it is a business boss or an individual, this thinking is very important.
From looking at others to looking at yourself, this is a very critical point. You can mature, develop forward, and continue to move forward. In fact, running a business and operating an organization are both dealing with people, and people are the core. When you look at yourself, you will find that all relationships become different . The culture of a small business is the boss’s own thoughts. You must be honest with your employees and be altruistic. If you grasp these two basic points, you will not be bad.
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