How Entrepreneurs Choose Their Business Direction

Entrepreneurship is the process by which entrepreneurs and their partners optimise and integrate the resources they have or can have through their efforts to create greater economic or social value.
The mobile internet is mainly focused on personal life services, while "internet+" is more closely related to the upgrading of personal, small and large B businesses. In addition to the "Internet+", there are also attractive opportunities for the sinking of Internet channels, elderly services, consumer upgrading, black technology and so on.


The first step is to understand the macro trends and the current global industrial structure, and it is not difficult to find traces of future development directions.
As developing countries develop, the share of agriculture and manufacturing will also decline rapidly, and the share of services that support or replace the development of agriculture and manufacturing will increase, and the structure of overall GDP will change as a result. Other service industries will also be upgraded as a result of rising consumption levels, the emergence of new high-tech platforms, and the upgrading of agricultural manufacturing.

Step 2:Upgrading of industries, choice of industries
When the industrial structure is further expanded, it will be found that there are not only Netflix platforms, various e-commerce, VR/AR to change and upgrade a vertical industry with an efficient Internet model will also avoid the opportunity to follow the trend to obtain a large enough imagination space. Summarized the basic framework of industrial upgrading, the content and key points for personal summary, I will also often deny themselves so may not be completely correct, only for entrepreneurs to develop ideas.

To sum up, according to the three categories, the reliable opportunities are mainly:
A: from the open source perspective to assist the development of various types of enterprises
This refers to services for small and large enterprises, all kinds of self-employed business level, cannot really help operators to save money or open source money services market is very difficult to open, then choose to cut costs or open source? Open source is often a higher priority than cutting costs.
B: Internet and services to the county and rural areas down, to the elderly groups to accelerate the spread; help people more money, help people more consumption.
In the past few years, the mobile Internet has immersed itself in every aspect of urban life, and it is difficult to find a big breakthrough again. But as society evolves, the opportunities are still there.
The internet industry is already well established, but there is also a huge market for manufacturing, construction, chemical industry and many other sectors, and there are unmet needs for recruitment, training, employment, entrepreneurship and financing.
If entrepreneurs have basically lost interest in continuing to understand, how can people who do not see the opportunity but see the difficulties in their eyes make a breakthrough and succeed in a capital recession? There is also a class of entrepreneurs also a lot, can see some money 'opportunity, but ignore the market direction, if it is to help a group that should have been eliminated by the times to make money, then it can only be a business, it is difficult to have the value of capital investment, by helping the rise of the group faster to get the market is easier to make money is also easier to get the favor of capital.


Technology: new technology, new platforms
The arrival of new technology and new platforms makes entrepreneurs and capital excited and impulsive, VR, AR, robotics, driverless and other exotic high-tech hotspots do not seem to be affected by the capital winter too much, but look at the opportunities that can be accommodated in the market space of these directions, these areas of entrepreneurial projects are bound to be dead and injured, the probability of entrepreneurs doing the denominator in the overheated direction will not be much smaller than shaking the number. Becoming the numerator also requires a high level of sophistication equal to that of the numerator. Such areas are not something that can be done, but rather to be one in a thousand or even one in ten thousand people.


Step 3: Selection of feasible directions, external analysis
1, Brief analysis of listed companies & benchmarking
When a certain industry is selected, how to find a specific direction? In addition to focusing on the layout of Internet companies, the more important competitors will be listed companies in traditional industries.
2,Analysis of the unlisted competition pattern
In some industries, the market share of the first place company can exceed 50%, while in others, the Top5 companies have the ability to be listed independently, and the same reference to the global market can be quickly derived from the pattern of related fields.

Step four: the direction that suits you, internal analysis
After basically meeting the conditions of the previous direction assessment, the team needs to conduct a self-assessment for this entrepreneurial direction. Too many entrepreneurs are blindly optimistic, even those with a more senior BAT background, and are often prone to rush into the red ocean and choose an overly detailed market segment.


A very crude algorithm is used to represent the average probability of success for startup teams in Internet-related industries.
Startup success probability ≈ investment success probability ≈ (sector size/$100 billion) / number of startup teams in the window.
This can show that both start-ups and investments choose to follow the direction of the easy red sea, too niche areas are not worth investing in.


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