Chapter 9 Expansion
Post-80s businessman idol Gul. Bachos once said: Every entrepreneur should have a shirt with a knife painted on the back.
In contrast, I am an idiot in love, but I am still relatively rational in business.
Because I'm a businessman.
In 2012, I already had a basic understanding of the city of Guangzhou, and I also got involved in the business merchants that I liked. Overall, I have gained a lot in the two years since I came to Guangzhou.
And after a period of development, my business with Lao Ma is no longer limited to my own university. At present, we have developed three colleges and universities in the vicinity, but unfortunately, we only have a small store in our own school, and it is very remote.
Although the old horse is clamoring every day to diverge to operate, open more three, five, or seven stores. But I still insisted, "We are starting a business for the first time, and there are many places where we don't know when we will need to use money, so it's better to save some money." ”
……
But when our turnover reached 100,000, Lao Ma couldn't hold back any longer, in his words: he was about to explode in silence.
"One hundred thousand! In half a year, our turnover has reached 100,000 yuan, and we can now rent 100 stores in units of 1,000 yuan a month, I just ask for five more stores, you are still afraid of it, huddle in this small place, I really can't bear it! "Old Horse Road.
Me: "......"
I have no choice but to tell a story at this time.
"Eh, do you know why so many rich people from the nineties to the early twenty-first century went bankrupt?"
"Huh? What's wrong with us? I don't know. ”
"Before the last century, to the beginning of the 21st century, it is an important period of China's economic development, an era of basic profit from any business, from street stalls to snacks, to the current snack chain business, there are many people in the ......"
Since the 80s of the last century, people will make money as foremen, people can make money as workers, and people will make money when they become businessmen, which is the best period for the people to make money.
Why are so many bosses from that period missing?
The first reason: I don't know how to manage my money, and I spend my money on enjoying life instead of consolidating my business; This bankruptcy cannot be evaluated.
The second reason: self-confidence is inflated, thinking that my factory is clear and can earn 100,000 yuan a month, then I will spend 100,000 yuan a month, and spend 200,000 yuan anyway, sooner or later, the money will come back; This kind of self-righteous death is very classic, because no business in the world is always profitable, and it can be seen from the vegetable market that cabbage sells for 6 yuan a pound today, and it may sell for 6 cents a pound tomorrow. The same is true for a factory, once someone competes, it can earn 100,000 yuan a month, but once there is competition, often, it has to lose 100,000 yuan a month.
In this kind of period, if you have enough savings, you can often turn defeat into victory; If you have no liquidity because of your profligacy, you will immediately fall to the ground and die.
"When someone competes, if others want you to lose, will others not lose?"
"It's also a loss."
"There are people there who do business, and they want to force others to death if they make a clear loss, do they have a grudge?"
"No, it's easy for others to force you to death, and after you are forced to die, you can dominate the cake, in the long run, this is a strategy." I explained.
Here's another story:
The story takes place in Wenzhou: In the 80s, Boss Lin was the Wenzhou boss who started by making shoe samples. In the 80s, the national commercial information was not circulated, or the circulation speed was very slow, and often new shoe styles from abroad were shipped to Shanghai for business, and it took several years to become popular in Wenzhou.
Boss Lin took a fancy to this business opportunity and shipped some new shoe samples from Shanghai, an international metropolis, back to his factory for manufacturing. To put it nicely, it's called imitation, and if it's bad, it's called piracy. However, because the things are new enough, Boss Lin made a lot of money during this period. His own shoe factory once opened to nearly 100 workers, with a monthly income of more than 100,000 yuan.
Boss Lin also changed from poor middle-aged to 100,000 yuan and 1 million yuan. As we all know, the nouveau riche likes to squander the most and is most afraid that others will look down on him. Therefore, his house should be the largest and tallest in the county; The car is more senior than the county magistrate;
The first year of development. Boss Lin spent nearly one million on his house, car, pretending to be a title, and entertaining guests, and his personal expenses have been infinitely close to the total income of his shoe factory.
But Boss Lin took an abacus, and the profit of the shoe factory reached about 100,000 yuan a month. Over the past year, the working capital of the shoe factory is still about 100,000 yuan, which is very reassuring. So he continued to spend days drinking, drunk, and dreaming of death.
And I also planned it, and the expansion in the second year went straight to the neighboring county, and I said that I wanted to be the boss of the city in the shoe industry.
There is a colleague in the neighboring county who is well versed in the shoe industry. was oppressed by the former, resisted the family's house, took out money from the bank, and turned his factory into a shoe factory exactly like Boss Lin, and the price was cheaper than the former.
In the first month, Boss Lin's business was put down, causing him not only to not make money, but also to lose a lot of labor costs.
At this time, the two shoemakers knew a fact: whoever lasts for a long time is the boss of the industry, and the consequences of breaking the belly are very strict, and there is only one way to go out of business.
The two factories that are competing in full swing are both burning money. At this time, Boss Lin came to his senses, his money was almost used, and now he has to look around for money. Who knows that everyone in the world believes in it: 'The hustle and bustle of the world is for profit, and the hustle and bustle of the world is for profit.' Boss Lin is already a profitless person, and when his friends saw that he had lost power, they all scattered in a hurry. In desperation, there is only the pressure on the house, and the car continues to save money.
Boss Lin is obviously wealthy, and this time, he is about to compare the other party.
The boss of the neighboring county does know the opponent very deeply, and the strength is not weak, fight the foundation, if Boss Lin does not spend the company's working capital, he is not enough to fight, but the opponent is a person who spent millions and then compared with the money is obviously not enough, this boss finally won in the protracted war.
Boss Lin has been defeated again and again, not only losing in expansion competition; Colleagues in neighboring counties also gave him a fatal blow when his funds were cut off, and opened a shoe factory on his territory, and Boss Lin, who was unable to compete, had only the way to disarm and surrender. The factory has shrunk again and again, and has become a small workshop.
The shoes of both are not their own, and both are at risk once they are accused.
But the wealthy party can still spend money and continue to develop their own new shoe patterns. And Boss Lin, who has been exhausted, has no capital to support the development of new shoe samples, so he can only file for bankruptcy and have nothing.
This story shows that you still have your money, and when the crisis breaks out, you use it to fill the ravine, and even later realize profits, you are still the boss;
But if your money has been spent when you have it, by the time your business crisis erupts, then you can only go from being a boss to an ordinary person.
……
"Without our own business core, it is very risky to blindly expand." "Our current sales channels are very problematic, once our second-hand machinery has a problem, we will not have enough manpower to repair, maintenance, do after-sales work, and we don't know, there are other places to use money."
"So what? Won't you expand forever? ”
"No, expansion is imperative; We need to accumulate experience, capital, and contacts now, just to deal with future expansion problems, and success is always reserved for those who are prepared. ”
"Makes sense." The old horse nodded, and I breathed a sigh of relief, and finally persuaded the unruly old horse.
"Alright, now let's talk about my thoughts." I said.
"What, what else do you think?"
"We're starting to expand in e-commerce right now!"
Lao Ma: "......" You said that you should not expand for a long time, and in the end you still played crazy?
"Hey, what kind of eyes are you, my plan is a zero-cost expansion, and I have thought of a name, just 'There is a second-hand laptop store'."
Ma Guoliang: "......" bullshit.
……
(To be continued...... )