Recast youth

Chapter 1457 The Importance of Cash Flow

Is cash flow important?

Extremely important!
Generally speaking, there are two very key factors to measure whether a company will go bankrupt. The first is whether the operation is sustainable, and the second is whether the product can be recognized by the market.

The former determines whether an enterprise can sustainably develop, and the latter determines its future development potential.

The decisive factor in whether operations are sustainable is the company's cash flow. Cash flow refers to a company's reserve funds and future planned cash situation.Whether the cash flow can meet the company's operating expenses and how long it can survive the non-profit period.As long as there are no problems with reserve funds and future planned cash, even if there is no profit, the company can still survive through cash flow. Even if the company loses money every year, it has money that does not belong to it to support its development. This is also a way to overdraw the future. .

For example, Gome and Suning at this stage.

These two shopping malls that mainly sell electrical appliances rely on cash flow for capital operations to make money. For example, the two shopping malls in the United States and the Soviet Union make no money at all by selling electrical appliances, or even only make hard-earned money. Why do they open so many stores and sell at low prices? ?
Some reporters will say that the purpose is to expand scale, squeeze out competitors, and gain profits by relying on scale advantages. It doesn't matter if you make less or less money now. If you defeat your opponents, you can make big money in the future.

In fact, these are all nonsense.

The purpose of the United States and the Soviet Union is to obtain cash flow.

For example, if I give you 1 yuan every day and ask you to pay me back 3 yuan in 1 months, your cash flow for a year will be 365 million yuan. Have you made money?No, but one thing to note here is that you always have three months' money on hand, which is 90. Theoretically, this 90 is always in your hands, right?So can you earn interest by depositing money in the bank? If you save 90 yuan for a long time, the annual interest will be tens of thousands, right?So as long as it is run properly, the cash flow itself can generate profits.

As for the scale of the United States and the Soviet Union, the cash flow benefits are even greater. Assuming they have a revenue of 100 billion a year, if they delay repayment for three months, they will have a cash flow of 25 billion. If they delay repayment for six months, they will have 50 billion. .

In 2006, the revenue of the United States and the Soviet Union exceeded 200 billion.

At the same time, the faster the United States and the Soviet Union expand their channels, the stronger their influence and control over suppliers will be, thereby ensuring that the funding strategy of delayed payment can continue.

What will these tens of billions of cash flows be used for?

Even Ye Feng knows that this is the time when real estate is booming, so how could they not know?All are taken to the capital market and real estate market to hoard and sell land.

The money earned is then used to supplement the low profits of Meisu's own retail market to ensure that the low-price strategy of "small profits but quick turnover" can continue, which is the speed of channel expansion.

so repeatedly.

The bargaining power of these two malls, especially Gome, in the industrial chain is getting stronger and stronger, and the scale of channels and funds is getting larger and larger, even to an extremely terrifying level.

Why is Mr. Huang so domineering at this stage?

It is because the huge cash flow gave him strong confidence, and a person's confidence always comes from his own hard power, and he also relied on the cash flow saved by hundreds of Gome stores in the past ten years. , has accumulated an astonishing real estate empire in Beijing, and its land reserve even exceeds that of Country Garden, Evergrande, and other real estate companies that specialize in real estate.

More than [-] million square meters.

A very scary number.

Of course, this also paved the way for Huang Guangyu to go to jail later.

As for now, why is the valuation of Lanshan Company rising so fast, and why is Gao Xuan able to negotiate cooperation with major business websites in a very strong manner?The reason is also very simple.

Same as the USSR.

Lanshan Company also has a very strong cash flow. From the beginning of the company's establishment, it did not need financing. With its own development, the company has billions of accumulated funds.And this number is still rising at an alarming rate.

Nowadays, companies that can make e-commerce websites successful are not stupid. When a large company develops to a certain scale and has a lot of cash flow, what will it do?It will set up a venture capital firm to conduct venture capital investment.

In the eyes of many people, Maple Leaf Financial Services Company is obviously Lanshan Company. It is one of the signals for Ye Maple Leaf to enter the financial and investment fields, so they have to be afraid.

Even if what Gao Xuan said might be false and bluffing them, they could only treat it as true.

This is what Wang Xin likes about Gao Xuan. As an internal and external executor, what is the most important thing?The most important thing is to have clear ideas and be able to grasp the scale between each other, and then hit the target to the core of the other party.

For example, when Gao Xuan faced the head office of Bank of Communications, she knew that Lanshan Company was in a weak position, so she adopted a roundabout strategy and spent her time to save the country through curves and find ways to poach Li Zhedong.

When faced with docking with e-commerce websites, she changed her mind and became aggressive, taking advantage of Lanshan Company's size to let the other party slip.

After two weeks of observation.

Wang Xin safely handed over the company's current plan to Gao Xuan, and she took the legal affairs and auditors to Yanjing. There was no way, who made our Mr. Ye do something wrong again? What about acquiring another company?

About Weibo.

Wang Xin knew early on that Lanshan Company had also registered an official account on Weibo, but what he never expected was that Ye Feng would have the idea of ​​acquiring Weibo this time when he went to Yanjing.

And it acquired 1% of Weibo shares for 40 million.

Very high premium.

However, Wang Xin did not raise any doubts, for three reasons:
First, what are the truly sustainable development projects of Lanshan Company currently?The first one is w5173, the second one is Lanshan Video, and the third one is Maple Leaf Payment.

As for the gaming department.

At present, Lanshan's biggest profit-making department is its games, which are good, but who can guarantee that the games will always be profitable?No matter how fun a game is, it will hit a trough at some point, and no game production company can guarantee that the next game it produces will still be a hit.

Therefore, in Wang Xin's view, games do not have long-term sustainable development, and Lanshan Weibo, as a social website, can just fill the gap where Lanshan Company does not have social tools.

Second point: Lanshan Company spent 1 million to invest 40% of the shares of Weibo. This is okay, because Lanshan Company is now preparing to go public, and this purchase price will also increase to Lanshan Company’s size. This will increase the valuation of Lanshan Company, just as Baidu spent 5000 million plus part of its equity to acquire the hao123 navigation webpage in order to successfully go public.

The third point: Wang Xin believes in Ye Feng.

There is no reason not to believe it.

At the very least, from Ye Feng's start-up to now, every decision he made has never failed. Since the founder of the company has never made a mistake, and adding [-] million will not affect the overall situation, Wang Xin feels that he should support Ye Feng's decision-making.

Noon on September 1th.

Wang Xin landed at the Yanjing airport.

(End of this chapter)