What Is Behavioral Corporate Finance?

Corporate financing refers to the movement of financing by taking enterprises as the mainstay, so that the supply and demand of funds between the enterprise and its internal links will move from unbalanced to balanced. When the funds are in short supply, the funds will be raised to the appropriate time limit and the appropriate amount of funds at the minimum cost. When the funds are surplus, the funds will be invested with the lowest risk and the appropriate time limit to obtain the maximum return, thereby achieving a balance between supply and demand of funds.

Corporate financing

Corporate financing refers to enterprises as the main body

Corporate finance

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Corporate financing

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Immediately after a scientific investment decision is made, investment projects immediately generate financing needs. Financing is a key link in the development process of enterprises. Many private enterprises consider financing as a short-term behavior in the development process, hoping to get bank loans or equity financing in a rush, but in fact there are very few opportunities for success. If private enterprises want to change the difficult situation of financing, they need to get out of the following misunderstandings:

1. Over-packed or un-packed

Some companies try to raise money at all costs

Must know 13 military regulations

Enterprise positioning

Enterprise positioning reflects the business strategy of the enterprise. In the industrial value system, you must clearly define your role with your own products and services. We say that Rolex sells the identity and reputation attached to the product, and Coca-Cola sells the brand and formula. Investors are always trying to get your business positioning from your business plan, and furthermore, you have to have a unique positioning.

2. Executive summary

This is the only opportunity to attract investors willing to learn about your plan. In Silicon Valley, the standard business plan is no more than 20 pages, the executive summary is no more than 300 words, and no more than 10 powerpoints are required for presentations. A logically clear structure can be completed in a few words. The main point of the executive summary is that you have to explain the following aspects in order: marketing team, finance, technology.

3. Legitimacy

Why do you do it? Why do you do it today? Why do you do it? Legitimacy is not legitimacy, but correctness. Knowledge and technology entrepreneurship is usually about finding problems and then solving them without a good diagnosis. It didn't clearly report to investors why they should use some method to solve the problem, and whether there are other methods to solve the problem. This is just a simple step from WHY to the solution, without answering the above three WHY.

4. What risks do you take?

Do not prepare a lifeboat for yourself. When you go to start a business today, the investor depends on what your risk is. The investor thinks more about how much time, resources, and money you invest in it, and even if you are willing to give up your already stable job And income. Investors are not willing to take more risks than you.

5. Description of enterprise vision and business model

Pack your good ideas. You should mark your business with a very clear vision, what kind of structure your business will become in the next few years, so that investors can have a look forward to.

6. Basic introduction of products and services

It can both illustrate creativity and protect your intellectual property. The entrepreneur does not need to fully disclose the core technical issues in the entrepreneurial plan, you can make him feel interesting.

7. What problem do you want to solve most?

Solve problems, not create problems. Because investors may be unfamiliar with your field, investors may find that the same effect can be achieved without the cost of yours. You need to clearly define what kind of problem you are going to solve without over-engineering.

8. Is the team complete? What talents are missing?

Know your deficiencies, face it honestly and ask for help. Entrepreneurs' teams usually have a characteristic called smelt likeness and similarity. Can you say that when you face competition from other excellent combinations in the market, can they win the battle through them? The team should attract outstanding people from all sides to join. If your team is brave enough to admit your weaknesses, you may get the help of investors, and you will get the sincerity of investors. The relationship between the board of directors and the entrepreneurial team should be the relationship of friends.

9. Where are the customers and how to keep them?

If you are a customer, how would you choose? You should explain this to investors, but don't make nonsense. Some people say that the way I keep customers is to give him discount coupons. In fact, this is not a strategy to retain customers at all, because as long as others give discount coupons with greater discounts, customers leave immediately. Customers should be developed with good products and services. You want your customers to experience irreplaceable value beyond the price.

10.Where are investors' competitors? What are their core competitiveness?

In the new economic era, competitors are everywhere. Tell your investor where the competitors are, that is, let the investor know what the potential risks of his investment are? What is the so-called core competitiveness? It is to develop your core members and use your core technology to achieve your core goals.

11. How much is market share?

Aggressive or wishful thinking, in fact, there is only a thin line. If you don't advance, you should have a fast-growing plan. You should tell investors how ambitious you are and how much market share you will get in a short period of time. Investment talents have a chance to get a return on their investment. You have to prove the credibility of your reasoning.

12. When is the breakeven? How can it be inferred?

Inference must be supported by data, not imagination.

13. Introduce professional vocabulary

Showing expression and communication skills is an important characteristic of business leaders. Communication and dissemination is not only a matter of eloquence. In the face of investors, shareholders, and non-professionals, you should have the ability to tell your majors that they understand and that they like them.

The vast majority of the newly-employed people are employed in SMEs. Jiangsu, Zhejiang, Guangdong and other small and medium-sized enterprises have a good development trend and become the most active areas in China's economy. However, in stark contrast to this, as a whole, small and medium-sized enterprises have always been in an extremely distressed state in terms of financing, that is, The vast majority of funds for corporate development come from within. Small and medium-sized enterprises, which account for more than 99% of the total number of enterprises in the country, have less than 20% of the loan resources, and other financing methods have almost missed them. Difficult financing is becoming a bottleneck restricting the development of SMEs.

How to help companies solve the difficult problem of financing? In response to market changes and customer characteristics, we actively innovated financing solutions for small and micro enterprises. CreditEase took the lead in launching an innovative business, IKEA Loan, across the country, effectively expanding financing channels for small and micro enterprises, and helping enterprises solve financing difficulties. And other issues. Domestically, banks generally do not provide auto mortgage loan services. Such services generally require the application of private professional credit institutions. "Yiche loan" car mortgage loan service is a short-term micro-credit service specifically for small businesses, individual businesses, and entrepreneurs. Creditworthy loan service launched by CreditEase Company has high approval amount, flexible loan period, simple and fast procedures, no pre-loan fees, and considerate quality service.

State Council Premier Li Keqiang hosted an executive meeting of the State Council on July 23, 2014, deploying multiple measures to alleviate the high financing costs of enterprises

The meeting determined that, first, we must continue to adhere to a prudent monetary policy, maintain a reasonable increase in total credit, focus on adjusting the structure, and optimize credit investment. We will increase our efforts to support agriculture, support small and small loans, and rediscount, and improve our ability to provide financial services to small and micro enterprises, three rural and support services, energy conservation and environmental protection in key areas and major livelihood projects. Second, we must curb the unreasonable rise in financing costs of financial institutions, curb disguised high interest rates, and maintain a sound financial market order. Third, we must shorten the financing chain of enterprises, clear up unnecessary links, and rectify price increases at various levels. In principle, the use of wealth management product funds should directly interface with the real economy. Fourth, unreasonable charges should be cleared up and rectified, and all charges that are directly linked to loans and have no substantial service content will be cancelled. Standardize fees for guarantees, evaluations, and registrations. It is strictly forbidden to use "loan to deposit" and "deposit-lending linkage" and other acts. Fifth, we must optimize the loan management of small and micro enterprises in commercial banks, adopt advance approval of renewal loans, and establish revolving loans to improve the efficiency of loan approval. Differentiated regulatory requirements for loans to small and micro enterprises. Sixth, we must actively and steadily develop special small and medium-sized financial institutions that are oriented towards small and micro enterprises and agriculture, rural areas, and farmers, and accelerate the promotion of qualified private capital to initiate the establishment of small and medium-sized banks and other financial institutions in accordance with the law to promote market competition and increase financial supply. Seventh, we must vigorously develop direct financing, develop multi-level capital markets, support small and medium-sized enterprises to conduct financing by relying on the SME stock transfer system, and expand the debt financing tools and scale of SMEs. Eighth, we need to improve the evaluation and evaluation index system for commercial banks, and guide commercial banks to correct behaviors of simply chasing profits and expanding assets. Ninth, we must vigorously develop insurance products that support credit services such as small and micro enterprises, and carry out "insurance + credit" cooperation. Actively develop government-backed guarantee institutions and expand the scale of small and micro enterprises' guarantee business. Tenth, we must advance the market-oriented reform of interest rates in an orderly manner, give full play to the role of the self-regulatory mechanism of interest rate pricing by financial institutions, strengthen financial constraints, and improve independent pricing capabilities. Comprehensively consider the macro-micro economic and financial situation in China, and improve the market interest rate formation and transmission mechanism. The meeting requested that all relevant departments should promptly formulate supporting measures for implementation, regularly supervise inspections, and introduce third-party assessments to ensure that policies are implemented as soon as possible and see results. ^[3]