Young business, heated economy

The wave of startups surged, many young businesses quickly asserted their position in the market with great strides. However, Mai Linh, Thai Hoa, TNG or HQC all have to admit that these businesses have had to “bite off more than one can chew”, use short-term debt for long-term investment and sink deeply into the current state of liquidity crisis after hot growth.

If we look back at GDP growth figures over the past 10 years, we will see one fact: Growth in the next quarter is higher than the previous quarter, but the total next year is lower than the previous year. GDP also goes up and down year by year like a sinusoidal graph.

Economist Tran Dinh Thien (Former Director of the Vietnam Institute of Economics) once commented that this reflects an unusual state of development dynamics: always trying their best to achieve short-term growth, while long-term growth have problem.

Therefore, this is the achievement disease of the whole economy when policies to support young businesses do not create sustainable development. It’s just like the “shocking” push of the business every beat, every beat. Where is the internal development force of the business that people do not pay enough attention or dare not look directly at the truth?

Therefore, consumers may have a situation where businesses are “very hot” at some point, but before and after they find them submerged in the market.

The problem with businesses is affirming their core values. I think so.

Must hit at least 3 rock bottoms

There is a law called the “ten thousand hour rule”. Scientists have proved that under normal conditions, an ordinary person who persists in doing some kind of work, after at most ten thousand hours he will reach the level of proficiency as an expert in the field.

It is not difficult to understand because “Practice makes perfect” and time plus experience will create maturity for a job. More broadly, it also seems to be true of an enterprise, as reflected in its field capacity.

Field capacity is the ability of enterprises to put their product and service research into testing and practice in order to evaluate the suitability, optimization and perfection of the product until it reaches the best quality before it becomes available offer to customers.

The more thoroughly the research – test – feedback – improvement – test cycle is carried out, the higher the field capacity of the enterprise, the stronger the ability to overcome the “3 times of death” and continue to develop strongly.

Field capacity will determine the level of  “sustainability” of the business

But in order to become a unicorn, to become a phenomenon, more or less businesses will have to “hit 3 rock bottoms”.

Going back just over 100 years ago, people never thought about the scene of the aviation industry developing as brilliantly as it is today. The first “rock bottom” is probably the boy who jumped from the window with the desire to “take off like birds” but failed. The Wright brothers pioneered the next two “rock bottom” with their first two flights, with only 12 seconds and 59 seconds, respectively.

The Wright brothers’ first flight received much ridicule by people who don’t think it’s a great idea

Even the Disney “empire” almost “starved to death” several times to achieve today’s success. Then J. K. Rowling “muck” in 18 times sending the Harry Potter manuscript around to be published.

Saying that to see when a business “starts up” will be true with the saying that all beginnings are difficult. But in danger, the bigger the challenge, the higher the opportunity. If it goes through “3 times of death” as soon as possible, I believe that the business will soon complete “ten thousand hours” to achieve success.

The original idea may be silly, vague, or even crazy, but don’t today’s greatest achievements come from that silly crazy stuff. Sherlock Holmes is also just a temporary story for the purpose of making a living of Arthur Conan Doyle while trying to write scholarly works.

Or online shopping (online shopping) in 1994 was a crazy idea, it has also brought sales increased 2300%/year for Jeffrey Preston Bezos – founder, CEO and president of the public company. Amazon multinational technology.

The proof of the pudding is in the eating

A sprout, no matter how well cared for, takes time to grow. Too much care and investment cannot make a seed become a great tree overnight.

The same is true for businesses.

Perhaps it is not natural for the ancients to say “Seventy-year-old person learn from seventy-one”, time always brings its own experiences and lessons that even if it’s short, skipping steps, it is difficult to overcome.

A business cycle usually lasts for 5 – 7 years, in each of these cycles there are internal factors (corporate culture, human resources, financial resources, machinery and equipment, etc.) and external factors (politics, policies, competitors, etc.) are relatively stable for enterprises to develop appropriate development strategies.

However, after a business cycle, many internal and external factors have changed, requiring businesses to restructure and boldly break down the old thinking system that is no longer relevant. Especially in the current information technology era, the time of a cycle will tend to decrease to about 3 – 4 years.

The growth life cycle that any business needs to go through

That means, surviving each business cycle is a challenge for every business. Similar to the level-up exam, a business can achieve high results at the beginning of the cycle or the first cycles but can still “fail” in the next stages and cycles.

Therefore, “the proof of the pudding is in the eating”, a long-standing business not only shows a sustainable business reputation, but also a potential for stable development in the future. Young businesses keep going, with sustainable core values, with clear planning and constant efforts to improve and adapt to the market.

“The wealth in this world is immeasurable. Those who are wise can enjoy it.” Who is wise, who is good, just go and then know!