"Not enough money?"

Xiao Shiyu's statement made Yan Xin stunned - it has been less than two months since he went out, why is there not enough money?

More than a month ago, they found a new investor and received an injection of 200 million yuan.

Before that, there were tens of millions on the books.

It's no problem to burn for a year, why is there a problem of insufficient funds now?

During this period of time, he traveled abroad with Feng Xi, and he didn't ask much about the food language company, except that he knew that it had expanded to many places, and he didn't know anything else.

Now Xiao Shiyu suddenly said this, which confused him:

"How much money is left on the books now? How is it not enough? ”

"There are only seventy or eighty million left." Xiao Shi said.

"You mean more than 100 million spent in a little over a month?" Yan Xin asked her.

"Yes, it's too much to spend, but we can't do it," Xiao Shi said, "Now we have a very strong competitor, and they have pushed their business to fifty or sixty cities across the country at the beginning, not to mention the municipalities, all provincial capitals and sub-provincial cities have their business." Most of these cities are not where our business has entered, and if we don't follow up, they will monopolize the market there for a few months, and we won't be able to get in – and even if we can get in, it will cost several times as much money. There is no choice but to follow up. ”

Yan Xin remembered that when he was still in the United States, Xiao Shiyu told him that there were competitors who were grabbing land with them, and asked if he wanted to follow up, and his answer at that time was to follow up.

Follow-up must be followed-up, and if you don't follow up, you will give up the market and the future.

It's just that he didn't expect that people's plates would be spread so big, and at the beginning, they would directly cover dozens of cities.

In her own food language company, Xiao Shiyu was so busy every day that she couldn't take a break, and it took a year to start business in a few super first-tier cities.

It can only be said that people are really wealthy.

Under such competition, it is not surprising that so much money has been burned in just over a month.

"So now our business has covered dozens of cities across the country?" Yan Xin asked.

"Yes," Xiao Shi said, "now we have a larger business coverage than theirs, especially in the Pearl River Delta and the Yangtze River Delta region. ”

They have a first-mover advantage, experience accumulated over a year, a lot of solutions, and a larger pool of talent.

In the two most important regions, the Yangtze River Delta and the Pearl River Delta, they have been operating for a longer time and have accumulated a good reputation.

Elsewhere, however, it is not necessarily the case.

People are richer, more willing to spend money when seizing the market, the discounts given are greater, and the background is stronger.

It's much easier for them to find a partner than it is for Food Talk.

In a new market, if two companies enter at the same time, their competitors obviously have an advantage.

The advantage of Shiyu is that it has accumulated so much experience, has more solutions, and the training of new employees is more standardized, and the service quality will be higher.

It is impossible for the food language company to give such a big discount when it is seizing the market, they simply don't have that much money to burn.

But it is also impossible not to give a discount.

It's a bit of a gap, but the gap can't be particularly big.

Otherwise, no matter how good the quality of service is, people will not choose them.

In addition to the Yangtze River Delta and the Pearl River Delta, the two regions occupy a relatively large advantage, and in other cities, they are all fighting back and forth, and they have won and lost each other.

The Beijing Economic Circle is also a very important market, and Xiao Shiyu here is relatively less, and the current situation is that their market share is not as strong as that of other competitors.

Xiao Shiyu came here, not only to get together with Yan Xin more, but also to win this important market.

There are still tens of millions on the books, and if you don't continue to expand so wildly, you can still use it for a while.

If there is another wave of such crazy expansion, it may not be able to support it for a month.

"What do our partners think?" Yan Xin asked.

"They're very supportive, and they're happy with the market share we've gained so far," Xiao said, "because we only used less than half the money of our competitors to achieve similar results to them." ”

"That's good!" Yan Xin was relieved.

As long as the partner supports this, that's fine.

People have a strong financing ability, which can bring them more funds and let them have money to burn.

If you don't support this, it's really hard to have such a strong competitor in front of you.

- At this stage, he really doesn't have the ability to spend so much money to fight so hard with others.

More than 100 million were burned in more than a month, which is also a little too scary.

Of course, a large part of this money is used for investment such as property leasing in local branches, which does not mean that there will be such a large investment in the future.

It's still scary, though.

If it appears a few years later, then he can slowly lay out, step by step, and even expand slowly in the case of achieving profitability, without spending too much extra money.

Now there is such a strong competitor suddenly, and in order to grab market share, people give great discounts, forcing them to follow up.

The business in the Pearl River Delta region has already broken even, and now there is such a strong competitor, they have to further reduce the cost of food delivery, and now they have to continue to lose money.

This is still the case in the first market, let alone other markets.

I still have to follow.

Fortunately, they hugged the thigh of a consortium, otherwise they really couldn't keep up, and they would probably only be able to do it in the Yangtze River Delta and the Pearl River Delta in the future, losing the opportunity to gain the national market.

Although you can make money in those two areas if you continue to do it, it is very inconsistent with Yan Xin's grand cause.

And only guarding those two markets, it will inevitably be eaten away by others in the future.

If there is any benefit, it is that they are forced to speed up the pace and be able to expand the layout of all large and medium-sized cities in the country faster.

On the third day of arriving in Beijing, Yan Xin and Xiao Shiyu met with representatives of the partners and negotiated the next step of financing.

Neither side had any objections to the need for greater investment in the future, and an agreement was quickly reached.

It's just that there is a bit of controversy about how to increase investment.

Whether to carry out further financing, attract more partners, or choose to find a bank loan.

If they choose to raise further money, they will be able to find a partner very quickly.

That's what they invest in, and they have enough resources for that.

But in this way, the shares held by Yan Xin and Xiao Shiyu have to be diluted, and whether they can have control over this company in the future is a question.

Even if you can gain control of the company through some supplementary agreement, but most of the shares are in someone else's hands, that is not a problem.

Yan Xin does not seek to add more than half of the shares with Xiao Shiyu, the larger the company, the more difficult it is to have so many shares.

But it can't be diluted too much, if the two of them add up and don't even have 20 percent, he won't feel much fun.

Go to the bank for a loan, and now they can get a loan.

Although the company's books are loss-making, the performance is there, the market share is there, there is the endorsement of such a large consortium, and some banks are willing to give them loans.

It's just that if you have too much debt, it's also a big problem.

After thinking about it for a long time, Yan Xin still decided to take out a loan.

The shares will definitely have to be diluted in the future, but not so early.

Otherwise, don't say 20 percent, and even 10 percent may not be able to keep it.

Even if you want to sell these shares at a good price, you have to make the data look better.

The more market share you have, the better the numbers look and the higher your company's valuation.

So, let's go into debt and make the data look better before introducing new investors.

The other party did not object to his decision, and said that they could help with the loan.

The matter was settled.

solved the most headache of the financial problem, and Xiao Shiyu was also relieved.

But to say that it is completely reassuring, it is not possible.

Now the company's debt is so high that she feels scared when she thinks about it.

If you lose this, you really have to lose your whole life, and there is no possibility of turning over.

But if it becomes, it will be a proper billionaire, a very powerful billionaire, tens of billions.

It's like a dream when you think about it.

She felt like she was gambling right now.

Now that you are on the field, there is no other way out than to win.

This time, they borrowed a much larger amount, which was 500 million.

Yan Xin now has billions of wealth on his books, but let him take out 500 million in cash, don't even think about it.

You can't even go to the bank for a loan.

- Because the assets that can be used for mortgage loans have basically been taken out for mortgages.

Without that much loan, the companies he invested in couldn't have grown as fast.

If there is another subprime mortgage crisis, the economy is in a downturn, and assets are shrinking, he, a billionaire, will also face bankruptcy.

However, he knows the future development trend, there will not be such a crisis for a long time in the future, and the investment is also in the market with great growth potential, so he dares to rest assured that such a bet.

Like him, there are many people in the business.

And he is still one of the more conservative ones - at least the loan is still secured by assets.

Some characters with good hands and eyes can get a large amount of loans without asset collateral.

The advantage is that it can develop rapidly and eat the dividends of the times.

The disadvantage is that once the thunder explodes, you will face bankruptcy and even prison.

This time, they were able to get a loan of 500 million yuan, thanks to the fact that they met such a wealthy partner.

With these 500 million, Xiao Shiyu has the confidence to compete with competitors for the market.

They have mature rules, a good reputation accumulated in more than a year, and an excellent team that has been sharpened, and they pay less in terms of competing for the market.

Although the other party is wealthy, it has not grown to the desperate scale of later generations, there is money to burn, but there is no endless money to burn.

Continue to expand the market, and people may not have the financial resources to keep up.

The discount given by the other party is greater, which means that they lose more money per order.

In such a competition, it is difficult to say who will not be able to hold up in the end.

The company obtained this huge loan, Xiao Shiyu is more confident, and the first thing she did was to use the excuse of welcoming the double festival to increase the advantages of the Beijing economic circle, which is greater than the preferential treatment given by competitors here.

There is only one goal, to get back the lost share.

There is a better reputation, a more professional team, and now the strength on the discount is also greater, and it is not difficult to grab back the market share.

At present, this preferential strength is limited to the Beijing Economic Circle, mainly the two municipalities directly under the central government.

Other regions don't make that much of a discount – they don't have that much money to burn.

As long as they regain this market share, they will have an advantage in the three most important economic regions.

If the other party wants to compete with them, they can only continue to increase the intensity of discounts, and at the same time increase the intensity of losing money.

At the same time, Xiao Shiyu is also planning to promote the business to more cities.

It is necessary to seize territory in all large and medium-sized cities in the country and competitors.

The problem of funding was temporarily solved, and the biggest problem faced became the problem of employees.

Scaling too fast and seriously understaffed.

This thing needs to be experienced and novices, but this company has only been established for more than a year, and they simply don't have that many senior employees.

The current situation is that after one or two months in the industry, they have become skilled employees and need to bring new people.

Those who have been in the industry for more than half a year are already senior employees, and many of them have been entrusted with important tasks to recruit and open new markets in new regions.

However, this problem is not unique to them, competitors also have it, and this problem is even more serious than them.

- Their company has been established for more than a year, but the competitor's company has only been established for two or three months, so the problem is even greater.

This is also the reason why the other party spends more money, but the overall market share is smaller than theirs - the team is immature, there are constant problems in service, complaints are often made, and there is no mature solution, which makes the reputation very bad.

But they don't have that much time to train that many employees.

If you really do that, you miss the best time to get in.

Now Xiao Shiyu has received a new injection of funds and launched an offensive for the first time in the capital, and the other party has no strength to fight back.

In just a few days, most of the market share of the Beijing Economic Circle has been taken down by her.

Within a few days, a competitor sent a representative to the door.

Visited her and Yan Xin.

This time it is not a declaration of war, but a search for an end to the war, which means one thing - this market is so big that it can accommodate two companies, and there is no need for everyone to engage in that kind of vicious competition.

If they continue like this, they can't afford to lose.

(End of chapter)