Since they are reborn, they must be supported by the school beauties.

Chapter 100 He is a ruthless person!

Chen Cheng felt a chill on his back as he listened to Su Jianfeng's high-spirited words.

This old man is the typical king of leverage.

They leveraged their assets as much as they could, used all their money to buy land, and handed over the construction sites to the construction parties who provided the funds. The scale of the industry grew bigger and bigger, and the debt ratio also grew higher and higher.

Moreover, such unremitting efforts in leveraging sound like they leave no room for any backup plan at all, and the main goal is to either get rich or die.

In later generations, so many giant real estate companies collapsed one after another. Wasn’t it because they leveraged too much?
When things are going well, you can make a lot of money, but once there is a problem in one link of the capital chain, it will fall like a domino, knocking down a large area.

At this time, Su Jianfeng looked at Chen Cheng and asked him, "Manager Chen, what do you think about opening a branch?"

Chen Cheng thought for a moment and said, "Uncle Su, our business has only been going up for less than two weeks, and we don't have enough money on the books. I think we should wait a little longer and not rush into leverage."

Su Jianfeng looked at him in surprise and said, "If you understand the term leverage, then you must understand the underlying logic I'm talking about. It doesn't matter if you don't have enough money. Create the conditions first. If you wait until the conditions are in place before you start, you'll miss the opportunity!"

Su Ziqiang didn't quite understand. He asked his grandfather, "Dad, how can we open a second branch without enough money?"

Su Jianfeng explained, "Before Manager Chen took over, you had a surplus of over 200,000, and now you have hundreds of thousands in revenue. With this money in hand, it's enough to get started!"

Su Ziqiang quickly said, "Dad, what can I do with this little money..."

Su Jianfeng knew that he definitely didn't understand, so he looked at Chen Cheng and said, "Manager Chen, since you expect a monthly turnover of 50 to , if the profit margin is %, there will be a surplus of to every month, right?"

"Yes."

Chen Cheng probably knew what he wanted to say, but still nodded slightly.

Su Jianfeng continued, "It takes at least two or three months to open a store and renovate it, right?"

Su Ziqiang said, "Almost."

Su Jianfeng asked again: "How much does the renovation cost?"

Su Ziqiang said, "Two to three million at least."

"it is good."

Su Jianfeng said, "Look, the balance of 200,000 on the books, plus the 400,000 we earned in September, makes a total of 600,000. You can rent the shop first. You can talk to the landlord about the rent and say that the initial renovations are stressful. You can pay a one-month deposit and one-month rent in advance. That way, even if you pay a 100,000 transfer fee, tens of thousands of yuan in rent and a deposit, the venue problem will be solved within 200,000."

"You can use the remaining money as the first payment for the renovation. Pay the renovation team first and let them start work."

"As long as you can keep this store's business stable, you'll have another 400,000 yuan in profit in October, which is just enough to pay the second installment of the renovation."

Su Ziqiang did some calculations and said, "Dad, 400,000 a month is not enough to keep up with the renovation progress."

Su Jianfeng waved his hand: "You have to find a way to delay the payment from the construction company. There is no turning back. If they dare to stop the construction, you can just find someone else to cooperate with. Your first store is doing so well, maybe you will open a third store and a fourth store in the future. They won't dare to offend you easily. If you put some pressure on them, they will honestly start to advance the money."

"As long as you can get the second store open quickly, once it opens, you'll have two stores contributing profits at the same time. By then, you'll be able to pay off their debts in a few months. If you want to open a third store by then, you can continue to let them advance the construction funds. This way, the snowball effect will happen very quickly."

"Also, during this process, although you made hundreds of thousands of yuan in profit every month, you invested all of that profit into your second store. Your accounts were even at a break-even point, or even at a loss, so you didn't even have to pay corporate income tax."

Su Ziqiang's eyes lit up when he heard this, and he murmured, "There's a way to play it... I never thought of it before..."

Su Jianfeng looked at him and said with a half-smile, "This is still a safer way to play. If you are bold, there are many other ways to open branches faster."

Su Ziqiang quickly asked: "Dad, if you have any methods, please teach us as soon as possible!"

Su Jianfeng said calmly, "It's nothing more than trying every possible way to increase your funding sources. You could use this store as collateral for a loan, or you could run some sort of top-up promotion to get free gifts. First, you could get some money from customers. For example, you could announce right now that you'll get 3,000 yuan for every 10,000 yuan you top up, and it's only for today. If 100 people top up, you'll have 1 million yuan in cash, and that'll make opening a new store that much easier."

Chen Cheng was shocked when he heard this and thought to himself, "This old man from the Su family is really a ruthless person. He is trying to bring the real estate industry's gameplay into the nightclub industry."

It has to be said that Su Jianfeng's way of playing is one of the fastest ways of playing in a chain store.

Many brands in later generations expanded in this way. Even many chain brands endorsed by celebrities or with shares in them relied on this strategy to reap the benefits of countless franchisees and make a fortune for themselves.

However, in Chen Cheng's opinion, Su Jianfeng's way of playing almost overdrew all his risk resistance capabilities.

What if a competitor suddenly emerges during the period of crazy expansion and squeezes out Wild’s income?
The source income of the first store will be affected, and all subsequent steps will be affected or even forced to stop.

What’s more, the old man could never have imagined that a black swan event would happen in a few months.

If he continues at this pace, the second Yexing store will be about to open in February or March next year, and the third store will have already started construction by borrowing money. Just when he is counting on the two stores to make money to support the third store, SARS comes again. Who will come to the nightclub to dance when people are in panic?
Even if someone dared to come, the city would definitely ask them to temporarily suspend business.

By then, there will be no harvest for at least two or three months, and several construction sites will be shut down despite paying rent. What should we do?
All the cash has been poured in, and now there's no cash flow. How can we fill the gap for the next three months? Will employees leave? Will suppliers stop supplying? Will partners demand payment?
After SARS is over, I can open my business and make money. But if I don't have a penny in cash in my account and I owe a lot of money for goods and construction, and I want to open my business but have no waiters, no alcohol or raw materials, then I'm doomed, right?
Chen Cheng finally understood why some people who are worth tens or hundreds of billions can go bankrupt at any time.

It is because they are too confident and conceited that they do not leave themselves a way out when doing business. Once the business collapses, all their efforts will be wiped out in an instant.

However, Su Ziqiang could not see this level. After listening to what the old man said, he was already confused.

After coming to his senses, he said happily, "Dad, if we continue to develop at this pace, it will be no problem to open ten stores across the province by the end of next year!"

Su Jianfeng nodded, looking teachable, and said, "One store can make several million a year, and ten stores can make tens of millions. If you can make 20 to 30 million a year from ten stores, your brand will be well-known throughout the province and even in the surrounding provinces. Then you can open it up for franchising, just like a clothing store, and make a lot of money again."

Su Ziqiang quickly looked at Chen Cheng and blurted out, "Manager Chen, how is it? Do you dare to do it?"

Chen Cheng was speechless for a moment.

I definitely wouldn’t dare to do that!
Even if everything goes according to the old man's plan, wouldn't it still be ruined once SARS comes?

If you really want to expand rapidly, you have to stockpile ammunition and keep enough money first. When SARS comes, you can directly buy out those competitors who can't continue to operate at a low price!
But he couldn't say this to his face. After all, Su Jianfeng's strength was there. He started his real estate business with such high leverage. He had no right to question his proven successful path.

So, he complimented him, "Uncle Su's method is indeed enlightening. We can carefully study whether to open a second store. After all, opening a store depends not only on the speed of opening stores, but also on assessing the demand of the Jiangcheng nightclub market. If the market really has this demand, opening a branch is definitely the best solution."

Su Jianfeng didn't hear that Chen Cheng was politely refusing or shirking the responsibility. He just felt that Chen Cheng was rigorous in his work and knew how to plan before taking action.

So, he nodded and said, "Manager Chen is much more meticulous in his considerations than Ziqiang. You should carefully investigate this matter. As you said, see if there is such a great demand from young people in Jiangcheng. If it is already saturated, then of course we can't just open a branch without hesitation."

After saying this, Su Jianfeng pondered for a moment, then said seriously, "However, once you've completed your investigation and believe it's feasible, you must act quickly! It would be best if it opens before the Spring Festival!"

Seeing the old man's high-spirited look, Chen Cheng suddenly thought of something.

Why have I never heard of Jinhan Real Estate after studying in Jiangcheng for four years?
If he was very big and powerful, Jiangcheng would be full of his real estate projects and sales offices, so it would be impossible for me not to have an impression of him.

Therefore, this also proves that the old man never really became big and strong in his previous life!

Maybe his capital chain broke at some point in his previous life and he went bankrupt.

The more Chen Cheng thought about it, the more he felt that this speculation was probably correct, because this old man Su was so courageous.

When your courage reaches a certain level, it becomes a gambling nature. If you lose the bet, you lose everything.

Su Ziqiang was so overwhelmed by his father's promise that he said excitedly, "Don't worry, Dad. We will definitely try to open the second store before the Spring Festival!"

Su Jianfeng nodded with satisfaction and said with a smile: "I'm waiting for you to give me a bigger surprise."

Su Ziqiang assured: "Don't worry, Dad, we will do our best."

"it is good!"

Su Jianfeng stood up and said, "I won't delay your business any longer. I'll go back first."

Su Zisan stepped forward and asked him, "Dad, won't you sit for a while?"

"I won't sit down anymore."

Su Jianfeng said, "Your mother is still waiting for me to go back and watch TV series. You guys go get busy. Ziqiang, if you have nothing to do these two days, come back home more often. Your mother is missing you."

"Row."

Su Ziqiang immediately said: "Then I will go home and live recently."

Su Jianfeng nodded and said to Chen Cheng, "Manager Chen, I'll ask you to take care of my two children."

Chen Cheng quickly said, "I don't deserve it. The three of us are making progress together."

Su Jianfeng nodded and smiled, then waved to Ma Laoer: "Laoer, let's go."

"Okay, Mr. Su."

Ma Laoer responded respectfully and followed him to the door.

The Su brothers and sisters hurriedly followed them out the door. Chen Cheng hesitated for a moment and followed them, but kept a distance of one or two meters.

After sending the two to the door, Su Jianfeng turned around and looked at Chen Cheng with a slight smile, saying, "Manager Chen, you must strive to make it bigger and stronger!"

(End of this chapter)