Chapter 680 Continue
The scenery on both sides of the boulevard is picturesque. Amidst the flowers and trees, there are more than a dozen modern buildings under construction, and this will be the US headquarters of Standard Group and other industries in the future.
The tallest building with fifteen-story high-rise building has been completed, and in the office on the top floor, Jing Jian is listening to reports from Kent and several standard management personnel:
"Boss, according to our current burning rate, we can still maintain seven or eight months. Of course, if you add the payment for goods and the money pre-deposited by the customer, you should be sure to make a one-year turnover. Of course, no unexpected situations can happen. The suppliers urge payment for goods and runs from customers, which are the worst situations. It is mainly because the boss you have withdrawn the 300 million US dollars of cash flow, otherwise we will be confident enough to ensure a two-year safety period..."
"For the retail industry, the target customer base should be 100%. The people who open an account only account for about 2% of all target customer bases, and active customers, that is, those who shop more than five times in the past month or have a total amount of more than $300 account for only 0.8%..."
"Although the absolute value of the target customer base is still very low, the sales specialist regional responsibility system implemented at the end of last year is excellent. From the data in those areas, we can see that before the first half of this year has passed, the average growth rate of their new users has exceeded 110%, while the average growth rate of other areas is only 41%...."
"According to our repeated calculations, the profit line should be between 5% and 8%, just like the situation reflected on this chart, every percentage point before will increase operating expenses greatly, that is, the closer we get to the profit line, the more money we burn. From a certain perspective, the efforts of sales specialists have brought us some kind of happy trouble, which has greatly increased our budget this year..."
“…”
Listening to the report, Jing Jian felt quite helpless. He asked: "What suggestions do you have? Should you increase investment and speed up and strive to reach the profit line as soon as possible? Or should you temporarily slow down and ensure financial stability?"
“Suspended.”
“I choose to be steady.”
"If there is a large amount of investment, you can increase the investment. But what is the current situation...?"
"steady."
"I have it, but it's stable."
"Boss, first of all, the company needs to ensure survival, and then it can pursue any dreams."
“…”
Basically, they all demand stability, and Jing Jian is also in a dilemma. Generally speaking, taking advantage of the initial stage to develop well and break through the profit line in one go, this is the right choice.
But now that Standard Group has insufficient funds, it is better to choose to be stable. After all, before the end of the year, Jingjian's funds can be turned over, so you can wait a moment, which generally does not affect anything.
However, note that there are two words "general" here, so it does not include any special circumstances. There are rumors outside that Jing Jian's capital chain will be broken, and such rumors are the most terrifying, because Jing Jian... is indeed conducting micro-control of funds. In other words, his funds are indeed quite tight.
After thinking for a while, Jing Jian made a decision: "According to the original plan, the second batch of sales areas will be prepared for bidding, and will be expanded to 30% of the entire area. The speed of covering the city has slowed down, so the others must not be slowed down anymore, and everyone should be confident."
Among the first batch of sales specialists who obtained regional operating rights, almost everyone's income increased significantly, and the value of operating rights at least doubled, so those sales specialists were quite motivated. Stimulated by success, other salesmen who did not obtain operating rights last time were also looking forward to the holding of the operating rights bidding conference in the first half of the year.
Therefore, there is an embarrassing situation now. Standard Group is constantly losing money, while sales specialists are making more and more profits. Moreover, they are still attracting customers frantically, resulting in the company's operating costs becoming increasingly high.
Originally, the company's management meant to control the crazy momentum of sales professions, and at least not expand the scope of sales and operating rights, right? But Jing Jian instinctively felt that this was not possible. There were already seedlings of a trust crisis. Is it still in panic within the company? After all, some company data cannot be completely confidential. The monthly losses are known by individuals, which is nothing more than trust in Jing Jian's strong strength and future expectations.
Seeing that Jing Jian had made a decision, most of the management shrugged and stopped talking. Anyway, it was the boss's own decision. Kent took the lead and asked: "Sir, if the bidding conference is held, the operating costs will increase rapidly. Can you give the gentlemen here a bottom? Is there really no problem?"
Since Jing Jian’s loan is already an astronomical figure, if the capital chain breaks, there may not be even a chance to save it. Kent has long been tied to Jing Jian, which is a relationship of prosperity and loss, so Kent seems to be more concerned.
Jing Jieke ordered: "If the planned advertising projects continue, all new promotional projects will be cancelled, and all new preferential shopping plans will be cancelled as long as they lose money."
"Ah?" Everyone exclaimed in unison. As pioneers, they need to continue to continue saturated advertising bombing, and even more so, they need to offer discounts and benefits to attract new users to join. If it stops now, isn't all the efforts going to be wasted? Moreover, the huge advertising costs before will be wasted.
Jing Jian smiled and explained: "Don't worry, we need to encourage sales specialists to visit intensively. Since the sales specialist area is expanded, they must also play their own role. The advertising department should pay attention to tracking. How effective is the word-of-mouth advertising? If good results can be achieved, it will become the focus of our company's advertising promotion in the future."
Seeing everyone nodding, Jing Jian continued: "As for those discounts that are losing money, it doesn't make much sense. Our products are priced 5% to 8% lower than the market price. Even if those discounts are cancelled, what should come will come, and what is unwilling will still be unwilling to do so. We don't need beautiful data, because we have no plans to raise funds or go public in the near future."
Everyone nodded and understood what Jing Jian meant. Jing Jian continued to ask: "If you do this, can you maintain the operation for half a year? Here I would like to guarantee that there will be new funds in half a year."
Chapter completed!