My Age of Investment

  Chapter 542 Resources and Empowerment (seeking monthly pass)

  Xia Jingxing glanced at the founder and wife of Little Swan, and said lightly: “Did you guys have any exposure to venture capital before today?”

  He Yonghui smiled slightly, “Mr. Xia, it is true that Mr. Shen Beipeng of Sequoia Capital, Mr. Shen, also talked to us once.”

  Xia Jingxing coughed, he was really not against Sequoia Capital.

  It can only be said that China's venture capital market is too small, and it is also a narrow road.

  He Yonghui smiled and looked at Xia Jingxing, her eyes were like a amiable mother-in-law looking at her son-in-law.

  In fact, her daughter has a boyfriend, and in the future, she will start a business partnership with the milk tea girl to sell "green tea".

  Of course, she is not “looking for the son-in-law”, but is observing Xia Jingxing’s expression, wanting to read out some useful information.

  Starting from a three-table hot pot restaurant, she has become a well-known rich person in the region with a net worth of hundreds of millions. She has very rich business experience.

  Although I don’t know much about the gameplay of venture capital, I also know that it has something in common with doing traditional business. Shopping around is an eternal business basis to prevent assets from being sold at a low price and being taken advantage of by capital.

  You can say that she has too many thoughts and outdated thinking, but this is also her way of survival in the intrigue market.

Xia Jingxing smiled and looked at the shrewd old aunt sitting in the seat next to him. He somewhat guessed the real thoughts of the business woman. He wanted to introduce venture capital and achieve the effect of a surge in value when listed. At the same time, he was very cautious, afraid of being scammed. .

  He feels normal and understands it.

  But the other party still has the courage, because many traditional entrepreneurs are very resistant to venture capital, and even unwilling to connect.

  Especially after some capital expelled the founders, traditional entrepreneurs have turned away from capital.

  Xia Jingxing picked up the tea cup on the table without rushing, took a sip, and said lightly: "Since Sequoia has been in contact with Mr. He, then you should also be aware of some investment rules, right?"

  He Yonghui smiled slightly, "I just talked a few words briefly, which is not particularly clear.

  Our generation is not like you young people. Basically, we don’t have much knowledge and culture, and we don’t understand finance.

   President Xia, can you give me some suggestions? "

  Actually, Shen Beipeng told her about various investment rules, and also came up with an investment draft.

  It’s just that she is more cautious and wants to listen again from Xia Jingxing, and compare the two to see if there is anything tricky in the middle.

  No woman who can make her career bigger is simple.

  Xia Jingxing nodded, "Okay, then I will give a brief introduction."

   "If we invest 50 million yuan in Little Swan at a pre-investment valuation of 100 million yuan, accounting for one-third of the stock.

  Little Swan can take this 50 million yuan to open 10 new branches and increase the revenue of the company.

  With 10 branches, how long will it take to recover the cost of investment and even distribute dividends to shareholders? "

  He Yonghui smiled, "If you want to see profit, it will take at least several years.

  The hot pot industry has low threshold and high competition. Take the Sichuan-Chongqing area as an example. If you take a few steps on the street, you will see a hot pot restaurant, as many as a cow.

  If you want to make money, first you have a good taste so that there are repeat customers. Then the location should not be bad, especially some big stores, which must be opened in places with a lot of people, but the rental costs and labor costs will also increase with it..."

  Xia Jingxing listened to the unpretentious business experience of the old aunt and nodded with a smile, "So, the traditional way of dividends is not our VC game.

  What we really want to play is..."

  Xia Jingxing looked at He Yonghui with a smile, "Expand the game!"

  "For example, I will invest 50 million for you this year, and you will open 10 stores; next year, if I invest 500 million for you, you will open 100 stores; the next year...

  But it’s not just for fun, we need to look at the financial report and some business indicators. "

  He Yonghui frowned, "Mr. Xia, this is too radical to open a store? Isn't it too aggressive to open a new store before the cost has been recovered?

  If there is any problem, the loss will be a terrible number. "

  Xia Jingxing feels that he and He Yonghui are not on the same channel. The other party is a conservative traditional entrepreneur who pays attention to step by step. And their venture capitalists like to watch the "exponential growth" report.

   He sighed slightly, and Xia Jingxing continued to teach the old aunt.

   "It is normal to have losses, and venture capital can accept short-term losses."

  Xia Jingxing smiled and said, "However, a loss must yield efficiency and meaning."

  He Yonghui looked puzzled.

  Her husband Liao Changguang, Yin Mingshan and his sons feel even more like listening to the heavenly book, their eyes become more confused.

   Xia Jingxing explained slowly: "It is understandable now that the scale effect is lost?

  Food material costs, rent bargaining power, supply chain system, etc., can all be improved as the company expands.

  For example, can the unit price be the same for purchasing one ton of beef and one hundred tons of beef each year?

  Suppose I have a thousand stores, which are well-known catering brands in the country, and the commercial complex will reject me as a merchant with its own customers? I ask for a few months' rent reduction, or ask for some rent concessions, isn't it too much?

  When shops are distributed all over the country and a large logistics network is established, the cost of shipping can also be reduced. "

  Now everyone including He Yonghui understood and nodded.

  Xia Jingxing said again: “Investment is not necessarily invested every year. Venture capital depends on the financial report and whether the funds are spent.

  If the loss has been narrowing over time, it means that the harvest season is not far away, and we will continue to raise.

  If the effect is not satisfactory, stop and tighten adjustments until the ideal state is reached, and then resume expansion. "

  He Yonghui asked: "It is equivalent to saying, first spend money to build scale and market, slowly control costs, and then slowly make profits?"

  Xia Jingxing nodded, "It is such a general direction, but the details of the plan need to be continuously optimized."

  He Yonghui was very interested in this set of things Xia Jingxing talked about, and asked: "Then which details should be optimized?"

  Xia Jingxing smiled, “This involves the second benefit that venture capital institutions can bring in addition to money. Our industry is called post-investment management, or empowerment.

  Take Envision Capital as an example, we have cooperated with well-known headhunting companies at home and abroad, and can provide credit endorsements for invested companies and help find the most suitable talents.

  For example, Little Swan makes hot pot. We can recruit the executives of the industry's leading hot pot brand "Little Sheep". It’s okay to dig KFC and McDonald’s executives in China.

  Even in the future, Little Swan wants to expand overseas. In which city we go to, we will recruit catering talents from which city for you. "

  He Yonghui said with a smile, “It’s not an easy task to dig so many people in at once. It’s not easy to integrate into the company and exert combat effectiveness.”

  Xia Jingxing smiled, the other party had the idea, Haidilao established a "corporate university" and cultivated talents internally, which is a good solution.

  Lower-level employees get training and promotion opportunities. They will have a sense of belonging to the company and are familiar with the working environment. There is no difficulty in adapting or integrating.

  Corporate universities are things that will be played by major companies in the future. It is still new and not many companies use it.

  Xia Jingxing didn't want to confess for the time being, after all, he hasn't even said anything about investing in Little Swan, and it's normal to have reservations.

   "Management matters are indeed the top priority, so we will wait until we find the most suitable plan before starting large-scale expansion, otherwise it will be easy to rush and lose the chain in the talent supply chain."

  Speaking of this, Xia Jingxing paused, "In addition, there is still something to declare.

  When venture capital enters, many management matters need to be regulated, such as nepotism, entrepreneurial veterans who have little ability but are in high positions, etc., which must be eliminated and adjusted.

  Of course, I am not saying that Little Swan must have this problem.

  In short, a large sum of money came in, not a mess.

  This is like filling up an airplane with fuel. Before taking off, it is necessary to check whether each component is functioning normally and whether it meets the conditions for safe take-off. "

  He Yonghui is silent. She basically understands that everything is in line with the indicators and the performance and financial reports. There is no so-called human worldliness, and no dragging behavior is allowed.

   But if everything is performance-only, and all are cold figures, will there be no humanistic care and no cohesion within the company?

  Xia Jingxing continued: "Post-investment management, in addition to the ones I just mentioned, there are many more.

  For example, Dianping, we can recommend Little Swan to establish in-depth cooperation with this review website, and through Internet advertising, it will bring a very considerable traffic to Little Swan;

  Tudou.com, Little Swan can also get a good location and cheap advertising space on this video site. Little Swan can shoot a few gourmet advertising videos and put them on to enhance the company’s reputation.

  In short, the resources that Envision Capital holds in its hands are extremely rich.

  In the venture capital industry, I am not boasting, there are very few resources that can be stronger than us. "

  He Yonghui smiled, "President Xia, I understand, I now fully understand the role of venture capital.

  But you do not plan to pay dividends, and even allow companies to make short-term losses. How do you make money? "

  Xia Jingxing smiled "haha", "Helping companies establish the right business model, do large-scale operations, move towards profitability, and then go public. We sell stocks in the secondary market. This is our logic of making money.

  Capital is profit-seeking, and we are not helping the invested companies free of charge. What we want is to make the cake bigger and divide the piece that belongs to us.

  Otherwise, we will invest 50 million, 500 million, and hope that the dividend will be paid back to make money. Then we have to wait until the year of the monkey?

  What we want is fast in and fast out, and time is money for us.

  And the founder will not lose anything, diluting a part of the equity out, but can get a larger scale and better business model listed company. "

  Xia Jingxing looked at the couple solemnly, with a hint of confusion in her voice, "The founder's worth will increase tenfold or a hundredfold!"

  He Yonghui and her husband looked at each other, and they all saw the movement in each other's eyes.

  (End of this chapter)