Return to the small mountain village in 1993

Chapter 117 Franchise Business Model

"Yes, don't you think it's incredible?"

Tian Hao smiled.

He had never founded a company in his previous life, but after decades of living in Shenzhen, he had a very clear understanding of the company's operations. More importantly, he read the autobiographies of rich people every day and learned a lot of pie-building skills.

"Actually, more than 300 million a year is not much! We do only have four cars now, but if we change our business model, we can quickly acquire a large number of cars and accumulate wealth quickly."

Tian Hao said.

"Your family should have adopted a very traditional business model before."

"For example, the car belongs to you, the driver is also recruited by you, and even the routes are worked out by your family bit by bit. Almost all the expenses of the entire company are supported by your family. Therefore, once something happens, your family will immediately help you." It collapsed because it could not afford the huge compensation.”

"I'm sorry. I didn't mean to look down on or ridicule your family. I just made an objective analysis based on the situation."

Long Hua nodded and said, "I understand. This is indeed the biggest drawback of our family, but looking at the entire He County, and even the entire western Hubei region, isn't this the same business model?"

Tian Hao smiled and said: "You are right, this is indeed the model around us, so you will get used to it and think this is the most normal model. In fact, this model is called family-style or family-style business model .”

"This model is very stable and can quickly accumulate a certain amount of wealth."

“However, when scale and wealth reach a certain level, the disadvantages of this model are revealed.”

"For example, there is not enough capital, there is more to favor than the system, there is also the ability to withstand risks... etc. In short, this model is fine if nothing goes wrong, but once something goes wrong, it will collapse immediately."

Longhua felt very strange.

It was the first time he heard such remarks.

He is indeed very talented in business, but that is just his personal experience. He can do it in a small way, but it is a bit difficult to make it big and strong.

He has never made an in-depth analysis of his own affairs. He just thinks, like others, that it was his family that was so unlucky that it encountered such a big landslide, which led to the direct bankruptcy of his company.

I never thought that this might be a problem with the business model of my own transportation company.

At this moment, after listening to Tian Hao's remarks, I suddenly felt enlightened.

At the same time, the way he looked at Tian Hao changed from level to looking up!

"Brother Hao, you know so much! So which model do you think we should adopt now?" Long Hua became very modest, as if asking a senior for advice, keeping his attitude very low.

Tian Hao smiled slightly and said: "We must not adopt a family business model. It has been decided since the few of us formed a partnership, but we cannot just be a partnership. Otherwise, with the financial resources of the four of us, It’s impossible to expand quickly!”

“So, we must adopt a franchise business model!”

"Franchise style?!"

Long Hua was confused.

At this time, there were no flagship stores or franchise stores, so Longhua had never heard of the concept of franchise.

Tian Haodao: "It's actually very simple. We set up the venue, supply sources, routes, rules and regulations, and then invite people with cars to join us!" "There are two ways to join."

"One is that they pay us management fees, and then whatever they earn is their own."

"The other way is that they don't have to pay any fees, but the goods they pull must be designated by us every time, and the route is also designated by us. Then, how much money we give them for a trip is the same as Lin Anguo and the four others. The cars are the same.”

"Both methods have advantages and disadvantages. It depends on which one we adopt, or if we do both, it's just a bit laborious in terms of management."

Long Hua's brows furrowed deeper and deeper. He understood everything, but felt like he didn't understand anything.

"Brother Hao, your model is so new that I can't understand it for a while. Can you write down these models and let me think about it?"

Long Hua said without hesitation that he did not understand and needed time to slowly digest and think about it.

Tian Hao nodded and said to himself: He really did not misjudge the person!
"Okay, not only can I write it down in words, but I can also show it to you in the form of pictures."

Tian Hao then found a wooden board and drew a schematic diagram of the franchise business model for Longhua on the wooden board.

Looking at the schematic diagram, the model that Long Hua originally thought was extremely complicated suddenly became simple.

After thinking for a while, he raised a key question: "What if no driver is willing to join? After all, if you have a car now, as long as you work a little harder, you can still make a lot of money!"

Tian Hao smiled and said: "Long Hua, you must remember that whether it is a project or a model, anything that can attract people must be profitable! In other words, it is profitable!"

"As long as we publicize the profit points of our model, preferably by giving a few specific examples, are you still worried that no one will join?"

Long Hua thought about it and realized that this was the truth.

If it is profitable, people will definitely join!

If it is unprofitable, no matter how fantastic your talk is, no one will join, or if they do, they won’t last long!
The key is to make money!
"Then let Lin Anguo and the others be used as models and publicized?"

Long Hua was quick to tell, and he quickly had a publicity idea in his mind.

Tian Hao smiled and said: "It's up to you. In addition, in addition to the mode, we also need to refine the transportation method. For example, closer to home, we can activate the transportation methods of tractors, three-wheelers, and numb trucks. For farther places, we can use trucks, trucks, and trailers for transportation, and for farther places, we can use trains and airplanes for transportation."

“As long as you dare to think, there is nothing you can’t do!”

"If we want to make money quickly, we must refine the market and customers. Only in this way can we provide more targeted services and attract more customers, thus improving our competitiveness!"

These are all bad marketing concepts of later generations, but in this era of closed information, these concepts are enough to be refreshing and enlightening!

Long Hua's eyes sparkled when he heard this.

He even took out a pen and paper and wrote down what Tian Hao said.

Gradually, he no longer had any doubts about Tian Hao's previous goal of making more than 300 million yuan in profit by the end of the year, but instead became full of confidence!

When the two were talking happily, Lin Anguo's motorcade came back.

(End of this chapter)