Chapter 11 Climbing high and looking far away, the infinite scenery is on the dangerous peak

Investing is like climbing a mountain or rock, the higher the climb, the more dangerous it is.However, high risk means high profit, and we must not give up halfway. "The more you are at the peak of your career, the more you must pay attention to risks." This is the greatest experience Huang Yinrong, the chairman of the Xinjiang Zhejiang Enterprise Federation, has been in business for decades. He is in his 50s this year and has more than 30 years of business experience. He has been involved in steel all his life. , oil, cotton and many other industries, but the one that had the deepest impact on him was a stumble in the steel industry.

In 1990, while visiting a friend, he saw a major business opportunity in the steel industry.At that time, there were many electrical appliances factories in Wenzhou, which needed a lot of steel sheets, and Shanghai Baosteel happened to have a large backlog of scrap steel, which had no market.Huang Yinrong decided to ship the steel to Wenzhou.This opportunity also made him a lot of money, and the number of steel cars gradually developed to dozens.These cars drove to every factory in Wenzhou.Under his leadership, Yueqing spontaneously formed a steel trading market, where billions of steel are traded every year.The high profits made him ignore the potential risks in the market.After several years of crazy skyrocketing, steel began to show signs of decline in 1995, but Huang Yinrong did not pay attention to it. He was still actively buying large quantities of steel at that time. In 1996, the steel market was saturated, and steel prices fell rapidly.Huang Yinrong lost several million yuan all of a sudden, and his vitality was seriously injured.

In 1997, with the help of his friends, he came to Xinjiang again and started steel foreign trade with Kazakhstan.Nearly a decade later, Huang Yinrong has become a major exporter from Xinjiang to Kazakhstan. In 2003, the price of the national steel market went up again, and many steel trading companies seized this opportunity to make a fortune.Huang Yinrong did not easily expand the scale. The experience ten years ago was like a slap in the face, reminding him all the time that he seemed to have sensed potential risks. Instead of increasing his trade volume, he reduced his own trade volume.

Facts have proved that he is correct. In 2005, steel prices experienced an "avalanche", especially an economic crisis in 2008, which made the steel market weak and sluggish all the way.During this period, many steel businessmen lost their money, but his business survived and preserved a certain strength.Huang Yinrong believes that the steel industry will be difficult to recover in the short term, so he turned to the oil industry in 2010. Huang Yinrong's failure was a bit special. When the business was doing well, he suddenly made a 180-degree turn, and the situation changed suddenly, and there was no chance of saving it.This fully illustrates a problem, the more you feel safe, the greater the hidden risks. "Eat a fall, gain a wisdom", in the process of business operation, it is very important to prevent risks.

Doing business is like climbing a mountain. The more you are at the peak of your career development, the more you must pay attention to risks.The more trough you are, the more you must persist in looking for opportunities.It was very simple and easy at the beginning, but as the company climbed higher and higher, that is, when the enterprise became bigger and bigger, the difficulties encountered became more and more serious.And I will feel more and more strenuous, unable to go up to the sky, not to go down to the ground, and unable to turn back.So once a person chooses the stage of doing business, there is actually no possibility of stopping. The only thing to do is to keep climbing and leaping.

Numerous facts have proved that with the development and growth of enterprises, more and more things need to be broken through.In Wenzhou, St. Yalun is known as the "King of Small Appliances".The nail clippers produced by his company have always been popular with consumers, but when his business continued to make great strides forward, he keenly discovered that the sales volume of his products was getting smaller and smaller.Enterprise development encountered a bottleneck.After investigation, it was found that it turned out that its own industrial chain was too long, and its products were specialized but not refined.

Therefore, he decided to change the original production mode, develop the main business in depth, and open up a road of professional development.Under the guidance of this kind of thinking, he actively innovated and made the products smaller and more refined.His idea of ​​"small commodity, big market" is interpreted to the extreme, and finally small things become big things, and he has obtained huge wealth with his small nail clippers. Doing business and running an enterprise is like climbing a mountain. The higher you climb, the greater the risk. The greater the risk, the higher the profit. However, when the enterprise develops to a certain level, it must make corresponding changes and choose carefully.

Wenzhou people have never been afraid of doing business. As long as they are sure about what they are looking for, no matter how difficult they encounter, they will stick to it to the end, never get discouraged, and are good at seizing opportunities. Wenshang attaches great importance to the development of the enterprise, always innovates when encountering difficulties, and takes the lead in achieving success.When an enterprise develops to a certain level, it will more or less encounter development bottlenecks. It used to be more and more difficult to go smoothly.This is because the more the company develops, the more problems are exposed, and the problems that were not discovered at the beginning will gradually appear in the continuous development.It is at this critical moment that many enterprises fail to find the correct solution, leading to business depression or bankruptcy.

◎The better the business, the lower the risk - we often say "be prepared for danger in times of peace", and this is true of everything, the better the performance, the greater the potential crisis. ◎Stronger enterprises are more capable of resisting risks—actually not, it is difficult for cars to turn around, and once problems occur in some large enterprises, it is even more difficult to solve them in a short time.