Rebirth: Don't miss the good girls, don't waste the bad girls

"It seems that the Hanfu business is just something you casually came up with. You should still focus on the milk tea shop."

"I heard from your father that you want to adopt the dual-core model of direct-operated stores and franchise stores, but Wenjie, whether it is a direct-operated store or a franchise store, there are actually risks."

"Directly-operated stores require high investment and carry high risks. One poorly managed store could cut off your cash flow."

"Although franchise stores are like making money out of nothing, it seems that the franchise fees are easy to earn, but it is easy for the franchisees to backfire."

"If a franchisee joins your milk tea shop but loses money, it's OK if it's just one or two franchisees, you can just refund the money. But if there are many franchisees who lose money and they spread these things, it will cause a huge blow to your brand influence."

"Now is the Internet age, an information society. As the saying goes, good news doesn't travel far, but bad news travels a thousand miles. If your reputation is ruined, then it's all over."

"You have to take these risks into account and be able to think of countermeasures."

Xu Guangyao spoke earnestly.

Nowadays, many brands have chain stores, especially those franchise stores run by celebrities. Basically, they defraud customers of high franchise fees and then withdraw.

There were also some relatively normal franchise stores that had all sorts of problems, and many suffered backlash, completely disappearing within three to five years.

Xu Guangyao was involved in industries such as petrochemicals and machinery manufacturing, and later also in financial securities and angel investment. Although he has always been stuck in the circle he is familiar with, it does not mean that he is not familiar with other emerging industries.

On the contrary, he sees some things more clearly than Chen Wenjie.

"Uncle Xu, I know everything you said. Now we first review the qualifications before opening a store. If the store chosen by the franchisee is not profitable enough, we will refuse them to join."

"And I also know that there are many problems with this franchise model. In fact, I don't earn this franchise fee, and I'm not even interested in the franchise fee."

Chen Wenjie said with a smile.

In later generations, many milk tea shops that chose the franchise route said that they lost money. In fact, this is very normal, because sometimes the meager franchise fee is not enough to maintain the operation of a huge milk tea empire. There are even more problems with directly-operated stores. First of all, it is very problematic to seize the market, and risks and benefits are shared. Without a huge flow of funds, it is impossible to seize the market quickly.

"Oh?"

"You are opening a franchise store, and you are not interested in the franchise fee. Are you waiting for the brand premium to rise and then resell it?"

"This is actually a good idea. Attract investment in the early stage, continuously dilute your shares, and continuously cash out. Finally, you can directly sell your voice and brand and get out. You may be able to achieve financial freedom and become a rich man before the age of 30."

Xu Guangyao spoke with some interest after hearing this.

"no."

“I took a different route.”

Chen Wenjie shook his head, smiled mysteriously, and spoke.

"Oh?"

"Did I guess wrong?"

"So what road are you going to take?"

"I'm quite interested."

Xu Guangyao looked like he was willing to listen attentively.

"Trade secrets."

Chen Wenjie smiled faintly.

"Uh?"

Xu Guangyao was stunned when he heard this.

"Haha."

"Kidding."

Chen Wenjie turned sideways and whispered a few words in Xu Guangyao's ear. Although he didn't get the whole point, Xu Guangyao, who had been in the business world for more than 20 years, naturally understood Chen Wenjie's idea.

“A genius idea.”

"Wenjie, I admit that I underestimated you."

"If someone sees through your strategic vision, then all franchise models in the catering industry will probably learn from you in the future!"

When Xu Guangyao heard Chen Wenjie's idea, he was simply applauded.

At this moment, he was basically certain that Chen Wenjie's milk tea business would be successful because his business model was so advanced.

Chen Wenjie told him the core of the new type of franchising, which is to control both the upstream and downstream and make money through all channels. So the insignificant franchise fee is really nothing!

"When Xiyan Milk Tea Shop becomes the largest brand in the milk tea industry and has beautiful financial statements to show to the public every year, there will naturally be people who want to start their own milk tea brand and lose so much money through traditional franchising that even their mothers won't recognize them. They will dig into the profit model of Xiyan Milk Tea Shop."

"But it was too late by then. The pattern had already been set. It was almost a dream to want to start over again and fight my way out of the siege and stand on the same team with me."

"The competition in the milk tea industry is similar to that of mobile phones and instant messaging. Within three to five years, many brands will be deeply rooted in people's hearts, and it will be difficult for the emerging brands to reach the heights of their predecessors no matter how hard they try."

“Unless they can come up with some new tricks and find another way.”

Chen Wenjie said this very calmly.

"That's right. The catering industry, especially the franchised catering industry, will see the outcome in three to five years of competition. If it succeeds, it will be a success. If it fails, no matter how hard you work, it won't be a success."

"From this moment on, you have actually succeeded."

Xu Guangyao said this with great emotion.

“It’s hardly a success.”

"The four direct-sale stores and six franchise stores in Donghai City have been a great success. Within a year, I can expand my business to the entire Donghai Province. Donghai Province is the headquarters of Xiyan Milk Tea, and I will never allow a fire in my backyard."

"After one year, we will open Xiyan milk tea shops in first-tier and second-tier cities and even third-tier cities, and then spread across the country. Even if someone notices the milk tea market in one year, they will not be able to become a big player."

"Everything I do is planned in the long term and has already been planned. They are just trying to imitate me and cross the river by feeling the stones. Once they have really crossed the river and my army is deployed on the other side, they will have fallen into my trap."

Chen Wenjie said this with great certainty.

"good."

"According to your idea, after you graduate from college, your first major entrepreneurial project will be successfully completed. At that time, you will be in your early twenties. Do you plan to keep this family business or start another entrepreneurial project?"

Xu Guangyao asked.

"I will first recover the funds, and then start a second entrepreneurial project at the university. If everything goes well, the second entrepreneurial project will be more successful than the Xiyan milk tea shop."

"But I only have a vague idea now. How to start specifically will have to wait until I go to college."

"Also, the second project will probably be very expensive. Without sufficient funds, even if I start another business, it will only be small-scale ventures to accumulate start-up capital for future big projects."

Chen Wenjie said truthfully.

He already had a draft in his mind, but obviously he couldn't tell it to Xu Guangyao immediately.

"Good boy, I was right about you."

“Entrepreneurial maniac!”

"It just so happens that I have something to ask you. Do you think there is still potential for the development of Longguo's automobile industry?"

"My company wants to get involved in the automotive industry. What do you think?"

Xu Guangyao asked.

Although he is the chairman and major shareholder of Longyao Group, the company does not belong to him alone. The next development direction of the company is also discussed by everyone together, and it is currently tentatively decided to be the automotive industry.

After all, their company also produced large agricultural machinery before, so switching to automobile production also means they have a certain industrial foundation. However, the company’s current funds are insufficient for them to fully launch automobile production. Once they lose momentum in the future, it may be difficult to recover.