Have you noticed?

Many entrepreneurs after the failure of the business, are not lost a little money, but lost nothing, or else in debt!

Why is this?

Because everyone is doing one less thing before starting a business!

With that preparation, no one can lose that much money!

I'll start with a story about my own business.

In 2006, I had a whim to make a discount offer site.

It's a website that puts all the discounts from all the stores and businesses together, similar to what we have now.

I gave the site a name: discount on the discount.

I also registered a trademark and designed a logo, which is a green caterpillar, because the body of the caterpillar is folded like this.

I was making some money from cell phones, so I didn't think much of it because I had money in my hand.

Beginning to rent a server to build a website, start to form a team to do offline promotion.

The cost of the company was very high at that time, a month of 100,000 to 200,000, I did not care too much about the cost at the beginning.

After about half a year, I burned in a million or so, and the company has not been able to earn any income, so I suddenly felt that this is not possible.

Then I started to think of ways to make a profit, I sold membership cards, I did folding DM magazine, anyway, I can think of ways to think of, but still lost money.

Then I lost all the money in my hand, I couldn't pay the rent for my office, and I couldn't pay my employees' salaries!

I gritted my teeth and sold the house I had just bought in Guangzhou's Haizhu District, the Mori Park, not long ago!

When the house was bought 100 square feet, 4980 a flat to buy, I just checked on the Internet, now the price is a flat 36000!

The house was sold not two months, the company has no money.

At the end of the month to pay rent, I really can not get money.

The landlord sent a few of his men over to lock the door on the company, and they came with a few large electric batons.

I reckon they may have had previous encounters with collections and locking doors and clashes with tenants.

The whole company started to panic when the office doors were locked and the employees couldn't get to work!

Then I called around and borrowed money, tens of thousands of dollars for this one and hundreds of thousands of dollars for that one, to keep the company running.

Finally, one day, one of my men said to me: "Mr. Jin, the company is hopeless, let's not do it.

I woke up.

I took stock of my assets, finished paying my employees, and sold off the company's items.

I had a cash loss of more than 2 million, more than 1 million in debt, and I lost more than 3 million in this venture a ****.

2007 ah, more than 3 million ah, then you can buy 6, 7 suites in Guangzhou full payment.

I experienced a life of entrepreneurship, the first huge failure, heavy losses!

After the failure, I have been reviewing, reviewing, I have been thinking why, why?

Why did I persist for so long in this venture, which was not profitable and lost money at the beginning?

Why did I sell my house and keep going when I had already lost so much money in the beginning of this venture, which had already shown that the project was not feasible?

Why, after selling the house and losing all the money, did I still want to borrow money to continue?

Later I realized that people - all have an Achilles heel!

Lost 2.7million a year!

After I shut down the company in late 2007, I didn't go back home.

What's the point of going back home? I don't have the money to go back or the face to go back.

I stayed in Guangzhou to look for a job, and I found a telemarketing job in a securities consulting firm.

The company provides consulting services for stockholders.

I remember there was a stock in the A-share market at that time, 600150 China Shipbuilding.

I remember very clearly that the highest price of this stock in 2007 was 300 yuan a share, and I had a client who just happened to buy in around 300.

Heavy position, bought 10,000 shares, an investment of 3 million.

Then the A-share from October 2007 after the 6124 high, all the way down, the market is very bad, has entered the bear market.

I called this customer and said, "Brother, sell it.

The price of the stock at that time was 250.

He said, "No, I've lost half a million dollars.

Not two months later, the stock fell to 200, I called him again.

I said: brother, now down to 200, sell it.

He said: No! 250 I did not sell, 200 I sold me is not sick?

After another two months, China Shipping fell to 100 dollars per share, this customer 3 million to buy the stock is now worth only 1 million.

I called and said: brother, now there is no sign of improvement in the market, you better sell it.

He said: brother ah, I have lost so much, it is more unlikely to sell.

Finally, this customer cut his meat in the price of about 30 bucks and left the market, losing 2.7 million in less than a year!

Human weakness!

After these two things, I realized that people - all have a weakness!

That is, for things that have been invested time, money, energy, knowing that the future development will not be too good, that also do not die!

Entrepreneurship is like this, investment is like this, feelings are also like this!

People always fantasize that things might get better someday, and although this possibility is slim to none, people still hold out a ray of hope.

It turns out that what doesn't work in the beginning usually only gets worse later!

Later, I learned a concept at my investment advisor firm:

Stop Loss!

Stop loss, also known as "cut", is a term used in the securities industry.

It is when an investment loss reaches a predetermined amount, timely cut out to avoid the formation of a larger loss.

The purpose of this is to limit losses to a lesser extent when an investment fails.

Later I realized that the word stop-loss is applicable in all kinds of scenarios in life, and it will reduce a lot of misfortunes in our life.

For example, when you start a business, you set yourself a time and amount of money, and when you reach that line, you give up decisively and stop loss in time!

This will avoid, once we fail, we have nothing or debt!

Investment, you set yourself an amount and percentage, loss to that position on the decisive out, stop loss in time!

This will prevent us from experiencing huge losses.

Anything, as long as you do stop loss preparation, you will not lose too much!

The risk of going it alone is just too great!

So I hope that the idea of stop-loss, which I've shared today, reaches into the heart of every entrepreneur.

Entrepreneurship, if the project does not work, you should stop loss in time!

As long as we don't lose everything or go into debt, as long as we still have some capital in our hands, we have a chance to turn around.

Without capital, it is too difficult to turn around!

As the saying goes: stay in the mountains, not afraid of no firewood!