First, let's align the definition of "entrepreneurship". In my personal understanding, entrepreneurship is a group of people working together towards a common goal. Abstractly, there are three elements: a group of people, a common goal, and a task. Let's discuss each of these elements separately.
A Group of People#
The first time I embarked on entrepreneurship, I did everything myself in the WeChat ecosystem - finding users, creating content, community management, and monetization. The reason was that I was young and inexperienced, and I ended up suffering a great loss. The main problems with this approach are:
- No one is omnipotent, and there are always areas where you lack expertise. In a mature economy, there is no room for trial and error.
- Human energy is limited. You don't have superhuman abilities, and everyone has only 24 hours in a day.
Given these circumstances, any minor problem encountered during a project can prematurely end your entrepreneurial journey. Therefore, it is essential to find a group of people to share the various roles, bind together, and collaborate.
So how do you find this group of people?
I have categorized this group into three types of individuals, depending on the specific entrepreneurial path (web2/web3?) and industry (social/gaming/supply chain, etc.). The focus may vary, as follows:
- Business Experts: These individuals have a deep understanding of the entrepreneurial path, covering both business trends and strategies.
- Product/Technology: This pertains to the infrastructure aspect. Regardless of whether you rely on an existing ecosystem or build your own, research and development support is indispensable.
- Marketing Experts: This role is more focused on marketing and plays a crucial role in resource coordination, whether it's collaborating with competitors or relevant parties within the industry.
With these three types of individuals, the framework of the entrepreneurial team is essentially formed, and you can start running.
Common Goal#
These four words may sound abstract, but they play a crucial role in determining whether entrepreneurship will ultimately succeed.
I used to dismiss Alibaba's emphasis on "mission," "vision," and "values." Apart from Alibaba's slogan "making it easy to do business anywhere," most people in the internet industry probably can't remember the slogans of other companies. So what is the significance of these "mission," "vision," and "values"?
As I interacted with more people from Alibaba, I gradually understood that these abstract terms are not used to showcase the company's brand or prestige, but to "bring people together." Through the selection of a common goal, a group of like-minded individuals can be found.
I express the difference between "no common goal" and "having a common goal" using the logic of growth:
- A company with "no common goal" is like an inverted pyramid. Without personnel selection, the company's development is essentially copying and pasting the original model. This is why many small companies struggle to attract and retain outstanding individuals because they do not fit into the existing pyramid framework.
- A company with a "common goal" selects the top core group through goal selection. This group of people continuously attracts similar individuals. The greatest advantage is that this user group can complement and connect with each other.
So what is a common goal?
- Making money together? This is a goal that is straightforward. Making money is not shameful, and there are many people who want to make big money. However, this goal needs to be more specific. What kind of money do you want to make? Short-term or long-term gains? And so on.
- Creating a great product together? This is a grand goal. Young people, especially those born after the 1990s, all have a desire to achieve greatness and leave their mark in history.
- etc.
Having a common and clearly defined goal reduces friction and communication costs throughout the entrepreneurial process. Everyone can focus on leveraging their strengths and work towards the common goal.
A Task#
This involves the specific implementation of the project, which I summarize as "track," "users," and "scenarios."
Track#
This is the most important consideration after deciding to embark on entrepreneurship. What track should we choose?
Entrepreneurship itself is a risky business, and we emphasize "going with the flow" rather than going against the current. Lei Jun's famous theory of "flying pig" is not something I completely agree with, but I do agree with the idea of leveraging trends. When starting a business, we should choose a track that is on an upward trend. There are countless business cases that prove this point:
- Alibaba's overseas cross-border e-commerce has been in development for over a decade, and its most successful period happened to be in 2020-2021 due to the global pandemic. Alibaba seized the opportunity, leveraging low-cost supply chain goods from China to capture the global market.
- Cheetah Mobile's expansion into overseas markets. In an environment where large companies dominate various industries in China, Cheetah Mobile targeted the blue ocean market overseas, leveraging the internet capabilities of Chinese people to dominate various markets abroad.
- etc.
Here, it is crucial to consider the "ceiling" of the track you choose for entrepreneurship. This can be confirmed through various methods (e.g., comparing with similar markets, conversion calculations in the funnel model, research reports combined with industry experience, etc.). With a clear target number, you can determine whether the entrepreneurial battle is worth fighting.
Users#
After selecting the track, the next step is to refine the "users." Which group of users do we want to serve?
The users must be highly specific, not generic. For example, in the electric vehicle industry, the ideal customer for a certain brand may be "families with children." Some new energy brands may target "leaders of luxury cars," assuming that all users who like luxury cars are their customers, but this is not focused enough.
With a clear user group, the positioning of the entire product, user profiles, and marketing strategies/branding will revolve around these users. The more specific the target, the lower the probability of missing the mark.
Similarly, this also requires your product to have a comprehensive "user tagging" system to identify the users you need and conduct precise segmentation. Once this group of users enters your product, you need a complete "operational system" to engage and maximize ROI.
Scenarios#
Here, scenarios refer to the entry point of the product. From which angle should we approach these users?
The entry point should ideally meet two criteria: a small opening (low cost) and a sharp focus (facilitating rapid resource allocation). I believe this is similar to performing surgery. The skill of the surgeon often lies in how to minimize user harm while achieving the goal of complete recovery.
- Small Opening: I once heard about the cold start process of Duozhuayu (a second-hand bookstore). Initially, the product was very simple - they posted an Excel file in their WeChat Moments to see if anyone had a genuine demand for buying and selling second-hand books. If it were a typical internet company, they might have developed an app or even a mini-program to test the market. However, an Excel file is a much lighter approach.
- Sharp Focus: Have you ever wondered why "WeChat Official Accounts" exist as a plugin in the third tab, rather than being integrated into the chat tab on the home screen, where conversations between users take place? This seems to contradict WeChat's minimalist design philosophy. As a former WeChat Official Account content creator, I personally admire this feature. If we think of WeChat Official Account content as a form of conversation, there is not much difference between conversing with others and conversing with content. And because the Official Account content is placed in the chat interface on the home screen, the cold start is instantly achieved.
For a product, even in the same scenario, there can be multiple different solutions. This is the core reason why small startups can defeat large companies.
Conclusion#
Entrepreneurship is a one-way street, and there is a lot to learn. We may not have everything figured out or even have the right ideas, but that's okay. Essentially, we are constantly exploring and iterating as we move forward. It is important to have companions on this journey, as multiple friends mean multiple paths.
Feel free to reach out to me for communication and exchange. TG: Arthurwu24, WeChat: arthurwu2020.