How can you become a star without money?

Chapter 21 The Young Eagle Project
Objectively speaking, selling celebrity merchandise is indeed not a legitimate business.

But ironically, the more unconventional the business, the more money it makes.

Wang Yao explained the products he makes and his online store plan.

"This looks like a stamp. Are these celebrity fans really that rich?"

When Lao Zheng heard that this industry could achieve monthly sales of 20, he was greatly shocked.

Although he teaches e-commerce and even has a related master's degree, he has never run an online store himself. The theoretical knowledge he imparts is mostly based on foreign textbooks because there are no suitable models or cases in China.

Although e-commerce has been a discipline for nine years since 2001, it has always been considered a mediocre major.

Because of the impact of the 08 financial crisis, the development of China's e-commerce industry was slowed down for a year, and it only reached 3 trillion yuan last year, accounting for about 10% of GDP, and officially began to enter a period of growth.

However, this industry mainly relies on the B2B market. As we all know, in China, B2B is not about technology, but about interpersonal relationships.

In the C2C market, even the leading company, Taobao, only has a market share of 2000 billion yuan for the whole year, which is even less than the sales of some offline chain stores. Given the current state of the market, the working environment must be even worse.

Supply and demand determine the market, the market determines academia, and academia determines the future.

He didn't understand Wang Yao's concept of "fan economy," but he could relate it to the core selling points of the small card product and its target audience.

Furthermore, with sales data to back it up, it can almost be said to be a project that has already taken shape.

In e-commerce slang, it's called "the model is running smoothly".

Old Zheng was very happy. After teaching so many classes of students, he was finally going to have a success story!

What a surprise!
"The product logic is this: a collector's mentality plus celebrity endorsement. But the main reason for our success is that I was probably the first in China to enter this market. I was the first to try it," Wang Yao said with a modest smile.

"It's not surprising to be the first to try something new, but it takes real skill to succeed. I've always thought you're destined for great things. So, tell me, what do you need my help with?" Old Zheng stared at the data, pondering it with a smug look on his face.

If this were made into a new lesson plan, I might even get a promotion next year.

“The model has been successfully implemented; all that’s left is expansion. You’re familiar with Project Eagle, right?” Wang Yao got straight to the point.

The Young Eagle Program is a low-interest support fund program under the renowned Angel Fund of the Shanghai University Students' Science and Technology Entrepreneurship Foundation, targeting current students or soon-to-be graduates in Shanghai who are starting their own businesses.

Loan amounts range from 1 to 50 yuan, with a funding period of three years.

This project represents companies with a future like Ele.me, Aihuishou, and Titan Technology, which are now listed companies.

"You want to take out a loan?" Old Zheng raised an eyebrow, then advised, "Although your online store's data has been good these past few days, it's not stable yet. Blindly expanding can easily lead to problems. Young people shouldn't be so eager for quick success."

"This store is just the size it is. I'm only using it as a cash flow source. I need money to open another category, clothing, and the start-up capital will be around 50 yuan," Wang Yao said with a smile.

"50? I know your online store has indeed achieved good results, but 50 is not a small amount. Money on the internet is very volatile; it comes quickly but goes quickly. I think you should go back and discuss it with your family."

Old Zheng, adhering to the professional ethics of a teacher, offered his advice.

If Wang Yao needs 30,000 to 50,000 yuan, he can find a way to help him.

However, once a loan is taken out, especially such a large amount, it's beyond what a college student can afford. This could potentially affect a family's entire life, and he dares not get involved lightly.

You should know that his monthly salary is only a little over five thousand.

Wang Yao frowned and remained silent.

Seeing this, Old Zheng pondered for a moment and then smiled, "Of course, the teacher isn't questioning your abilities. On the contrary, the teacher highly recognizes your abilities and even wants to invest a little in you, but 50 is too large a scale."
Moreover, getting a loan isn't as easy as you think. Although the Young Eagle Program is called an angel fund, they're not stupid. How your project will be evaluated and what kind of collateral you'll use are all things the bank will consider.
Even if I were willing to help you apply, there's a very high chance you definitely won't get the loan. Last year, a group of students from the business school next door started a business together, and it seems like fifteen of them jointly applied, and they only managed to get a loan of 20 yuan.

Upon hearing this, Wang Yao sighed, "I was too naive."

"Teachers have just had a few decades more experience than you. Everyone has their own strengths. Look at you, you haven't even graduated from university yet, and your online store is already generating 20,000 yuan in sales a day."

Even with a 50% profit margin, it's still more than two months' salary for me. So many people would envy that if I told them," Old Zheng comforted him.

"But teacher, I still want to give it a try. I won't borrow that much, how about 100,000?" Wang Yao pursed his lips.

Seeing that he was both receptive to advice and persistent, Old Zheng softened a little. Then he looked at the online store's sales figures and finally nodded, "Since you insist, I'll take you to consult with the vice principal first."

Even though he knew that Wang Yao's application was unlikely to be approved, he didn't want to discourage the child's enthusiasm.

Wang Yao followed Lao Zheng out of the office and upstairs to the vice principal's office.

"Old Zheng, is there something you need?" The vice principal was a middle-aged woman named Hu Mei.

“Principal Hu, my student started his own business and it’s showing some promise. I’d like to ask you for your guidance.”

Old Zheng chuckled as he handed over the laptop, then gave Hu Mei a brief explanation.

"Young and promising, Wang Yao, right? I remember you. Back in freshman year, a lot of people were talking about you on the school's online community. Everyone said you were the school's heartthrob." Hu Mei, surprised, waved to Wang Yao in a friendly manner.

"You planned and designed this online store yourself? That's impressive. In our school, including the business school next door, there have been almost two graduating classes since the e-commerce major was introduced, and your grades are the best. Tell me, what kind of assistance do you need from the school?"

She could naturally tell that Old Zheng's personal visit with his students was not simply to deliver good news.

“Principal Hu, my model has been successfully implemented, but I have encountered two thorny problems. The first is that I have no management experience, given the current scale of the online store.”

"We need at least two customer service representatives and two packers, but we can't guarantee a stable workforce, so I was thinking that our school might be able to help me with part-time jobs," Wang Yao asked for help.

Job opportunities?

Hu Mei's eyes lit up upon hearing this. Besides tuition fees, the most profitable aspect of adult universities like theirs was providing internships to partner companies. For example, even regular companies hiring interns are required to pay the minimum wage, which is currently 1200 yuan per month in Shanghai. However, if the school partners with companies under the guise of internship placement…
So, if the company gives the school 1000 yuan per month per person, and the school gives each student 500 yuan per month per person, then the company receives 500 yuan as profit.

Moreover, there's no need to sign a labor contract or pay social insurance and housing fund contributions, so there's no need to worry about any employment risks. It's also completely legal and compliant.

With a scale of at least 10,000 interns each year, like the Open University, the revenue is quite considerable.

Some heartless companies don't even pay the minimum wage, only providing a 200 yuan meal card subsidy per month.

This is one of the reasons why some vocational schools are criticized as "sweatshops".

Although Wang Yao's online store can only offer four part-time positions, every little bit helps.

More importantly, it can set a good example and encourage more current students or recent graduates to start their own businesses, which can indirectly create more jobs for internal absorption.

Moreover, judging from the sales figures of Wang Yao's online store, if it can succeed in the future, it would be a good achievement for Hu Mei. In addition, it seems that there is a trend of encouraging college students to start their own businesses this year.

After considering all the factors, Hu Mei smiled and nodded, "I understand. You're worried that hiring people from outside the school won't be able to manage it well, so you hope the school can temporarily recruit some part-time students, right?"

“Yes, and our e-commerce major is also a relevant internship.” Wang Yao nodded.

"Besides teaching, the most important thing about schools is nurturing people. Students are the children of the school. How can parents sit idly by when their children are in trouble?"

Hu Mei smiled and said, "I agree to your request. Normally, when schools send interns, they charge the company a management fee of 500 yuan per person per month."
Since this is an on-campus startup, let's say 300 yuan per person. However, interns' salaries should be uniformly paid at 500 yuan per month, even for part-time positions.

“No problem.” Wang Yao nodded and smiled. “But I might not have time to manage it.”

The reason he recruited from within the university was because it was easier to manage. University students are characterized by being smart, incompetent, obedient, and hardworking. They are naturally gifted and not only have low salaries but also high obedience. As long as they are managed from the university's perspective, there will be virtually no trouble.

Wang Yao can also select suitable employees from among them for permanent positions.

If recruited from the general public, the salary and labor costs would be at least three times higher.

After all, no one understands working people better than Wang Yao.

“Since the management fee has been collected, the school is naturally responsible for management. You mentioned that you need to pack and ship the goods, so don’t you also need a venue?” Hu Mei suddenly remembered something.

“His products don’t require much space. My dormitory is on the first floor, and I don’t use it often, so I’ll use my staff dormitory for now,” Old Zheng interrupted.

Hu Mei glanced at Lao Zheng and nodded, "That works too."

I was originally planning to rent the school's unused warehouse to Wang Yao.

“We definitely need a convenient venue,” Wang Yao said again.

Old Zheng glared at him, but didn't say anything.

"Oh? What do you mean?" Hu Mei pushed up her glasses.

“This relates to my second problem where I need the school’s help,” Wang Yao said seriously. “I’m planning to open another online store, but it will be a clothing store. I’ll probably need a fairly large warehouse and more part-time jobs.”

"Oh? Expanding so soon? Young people really have drive," Hu Mei said approvingly.

"However, we lack start-up capital. While researching, I discovered that there are angel funds in Shanghai that provide low-interest loans specifically for college student entrepreneurs, so I'd like to try and see if I can apply for one," Wang Yao said sincerely.

"Project Eagle?" Hu Mei raised an eyebrow and looked at Lao Zheng.

“Xiao Yao’s new store plan is worth a try, but I heard that the loan application is quite complicated, so I brought him here to ask you about the process,” Old Zheng said.

"The process isn't important; the evaluation is." Hu Mei shook her head. "Xiao Yao, don't be fooled by the name 'angel fund.' No matter the name, it's still a loan at its core, and loans always have requirements."

I recall this fund has been around for four or five years, but the total number of projects launched by all the universities combined probably doesn't even reach ten million. That's an average of only one or two million per year.
There are dozens of universities of all sizes in Shanghai, including top-tier universities like Fudan University, Shanghai Jiao Tong University, and Southeast University. How many students want to start their own businesses every year? But the quotas released are so small. Have you ever wondered why?

Because starting a business is not easy for college students, taking out a loan to start a business is not necessary, and we, as the university, maintain a neutral stance.

However, if you request it, we won't object, but we will only act as a recommender and will not participate in any guarantees or other actions.

After Hu Mei explained the disclaimer, she observed Wang Yao's reaction.

“I’ve already told him all this, so I was wondering if our school could sponsor some,” Old Zheng said.

“Old Zheng, I understand how you feel, but the school isn’t a for-profit organization. If we sponsor you today, will we have to sponsor him tomorrow? Wouldn’t that create chaos?” Hu Mei’s face darkened.

“Principal Hu, I just want to give it a try. If I can get the loan, that would be great. If not, I can wait until my online store is profitable before investing in a new store,” Wang Yao chuckled.

“The fact that you think this way shows you’re a smart kid. Taking out loans to do business is very risky, especially for kids like you. You should only do things within your capabilities.” Hu Mei nodded, then changed the subject.

"But judging from the sales volume of your online store, you'll probably be able to start preparing for new projects soon. Why don't you get the venue ready first?"

She didn't care whether Wang Yao took out a loan or opened a new store; she just wanted to rent out the house first.

"Yes, the clothing category requires a lot of warehouse space and staff, so we need at least 60 square meters of warehouse space, 100 square meters would be even better. We'll need about 10 people initially," Wang Yao muttered.

"Huh? The initial scale is already this large?" Hu Mei was taken aback.

Wang Yao's current online store only needs 4 people to sell 20,000 yuan a day. Wouldn't the new store be able to sell 40,000 to 50,000 yuan a day?

Well, on the other hand, if this kid really can build something this big, he deserves some support.

(End of this chapter)