Chapter 35 Don't Chase Profit Too Soon, February 17

Take profit seriously, and don't pursue too much. Entrepreneurs are usually prone to make such mistakes. After a company has been in business for a year or two, they often like to use many short-term actions to make the report look good and make profits.However, any entrepreneurship is an investment, an incubation, or a process of deploying new industries and new fields.If entrepreneurs focus on profit prematurely, there may be investment redundancy.In other words, if the market is not cultivated well, if you go to pick the fruit, the market may not be able to do it.In other words, the market has started, but its own competitiveness has disappeared due to lack of some long-term investment.

Li Yanhong suggested that entrepreneurs should start from themselves, control costs and reduce investment, such as recruiting fewer people, such as implementing diversification, but they should not greatly reduce technology investment in order to realize early profits.For innovative enterprises, it is necessary to invest in technology on a large scale in order to make themselves invincible in technology and occupy a leading or even monopoly position.And this is bound to bring great returns to the business in the near future. On the other hand, Robin Li also reminded entrepreneurs that they should not rush in without thinking about profit.The current trend is, regardless of whether it makes money or not, the website should be built first. As long as there are many users, users are willing and like it, how to make money in the future will be planned in the future.But most of these companies end up going bankrupt.If it is not for government support or public welfare undertakings, no business model will absolutely not work.

Three points to pay attention to in the early stage of entrepreneurship—determining the profit model, controlling costs, and emphasizing long-term investment.