Trillion Market Capitalization is not a Dream

"Trillion market capitalization is not a dream ()"

Bai Qingting asked several core members again, but no one really understood what Feng Shilan, the head of the financial center, said.

Bai Qingting: "Mr. Feng, it turns out that what you call simple financial knowledge is not simple financial knowledge.

If you use that kind of professional explanation, you will basically not understand it.

Can you speak in plain language and let everyone know what you need us to do?

There is no need for a reason or a rationale, you just need to simply know how to do it so that the company can maintain rapid growth and at the same time, the company's capital chain will not be broken and it can operate and develop normally. "

Feng Shilan, the person in charge of the financial center, smiled awkwardly and said, "I'm sorry, Boss Bai.

I originally thought that I had explained the simplest truth.

Unexpectedly, most of the elites in our engineering community are unfamiliar with these simple financial expertise.

Let me try to put it another way.

try again.

In fact, the balance of payments we require financially is just like everyone's management of money.

for example.

Assuming my monthly income is 20,000 yuan, then my monthly expenses must be less than or equal to 20,000 yuan.

If the income in January of this year is 20,000 yuan, the expenditure is exactly 20,000 yuan.

In this case, our income and expenditure are equal, and this month is called a balance of payments.

If the income in February this year remains unchanged at 20,000 yuan, the expenditure is less than 20,000 yuan, for example, 15,000 yuan.

Then there will be a savings of 5,000 yuan in funds in February, and there will be a deposit. This fund can be interpreted as activity funds.

If the income in March this year remains unchanged at 20,000 yuan, the expenditure is greater than 20,000 yuan, for example, 30,000 yuan.

Then my money at this time becomes the monthly income of 20,000 yuan plus the monthly savings of 5,000 yuan, that is, I have 25,000 yuan, but I have spent 30,000 yuan.

In March, the income became less than the expenditure, and it became negative 5,000 yuan.

At this time, it means that I am in debt, which may be a loan for the company.

At this time, it is called a relatively standard imbalance of income and expenditure.

Okay, let’s not get hung up on these professional terms.

Anyway, if I say it, everyone may not remember it.

Let me tell you what kind of life our financial department hopes to live.

The ideal state we hope for is to live in January, but this is indeed difficult to achieve and is not so precise.

Our favorite state is the day in February. This is a month with cash savings and a day when there is no shortage of money to spend.

The state we dislike the most is the day in March. This is the day when we live on credit. We can no longer spend lavishly. Every time we spend a penny, there may be many creditors looking at us and asking, do you have money to spend like this? , why don't you pay us back?

It is quite uncomfortable to live a life with such a shortfall of money.

Regarding these situations of funds, I say this, can everyone understand?

Boss Bai? "

Bai Qingting: "I already understand it, and they should understand it too."

The venue burst into laughter.

Feng Shilan, the person in charge of the financial center: "Our financial department needs the engineering division. We should find Party A early to get back the monthly salary of 20,000 yuan given to our company, and later pay the fees we need to pay the suppliers.

This is called receiving early and disbursing later, so that a large amount of funds can stay in the company's account for as long as possible.

No matter how we operate, we cannot have a situation where the total income is less than the total expenditure, otherwise we will have to borrow money.

At present, our company has not borrowed money from banks. Instead, it has raised several hundred million after listing, and we still have no place to spend it.

Now, my understanding of those hundreds of millions is still a bit skewed, so I don’t dare to use them yet. "

This is the rhythm of having money but no place to spend it.

There were bursts of good-natured laughter in the venue.

Bai Qingting: "Mr. Feng, do you mean that an effective way for our production department to balance the balance of payments is to collect early and pay late?"

Feng Shilan, the person in charge of the financial center, replied: “Chairman, you summed it up so well.

Under the current circumstances, regarding funding issues, what needs the cooperation of the production department is to collect early and pay late. The rest of the matter will be digested and resolved by our financial department. "

Bai Qingting: "Okay, Mr. Feng, please sit down.

Please remember the eight-character mantra taught to us by General Manager Feng Shilan of the Finance Center today:

break even!

Receive early and spend later!

To strengthen the impression, keep it in mind.

Please read it with me three times. "

Bai Qingting: "Break balance!

Receive early and spend later! "

Everyone: “Breaking even!

Receive early and spend later! "

Bai Qingting: "Break balance!

Receive early and spend later! "

Everyone: “Breaking even!

Receive early and spend later! "

Bai Qingting: "Break balance!

Receive early and spend later! "

Everyone: “Breaking even!

Receive early and spend later! "

Bai Qingting: "Okay, today I finally understood the balance of payments, early income and late payment, and took this opportunity to teach it to all the core staff of Western Construction Co., Ltd.

I am very happy. "

As Bai Qingting pressed the laser pointer in her hand.

The two big words "Settlement" appeared on the big screen.

Then click on the next page, and the bar chart clearly displays the settlement data of the three business divisions.

Bai Qingting: "The settlement amount of Tao Wuming of the First Business Department is 0.

The settlement amount of Lei Chun of the second business unit is 50 million.

The settlement amount of Song Zhiyuan of the Fifth Business Department is 80 million. "

Bai Qingting: “It can be said that the output value of our Western Construction Co., Ltd. in 2011 was quite satisfactory.

The collection work will be just about adequate, that is to say, it is passable. Basically, the balance of payments is maintained in theory.

But when it came to the settlement work, it was done quite badly.

Song Zhiyuan of the Fifth Business Department, Mr. Song, could you please introduce the settlement situation of your business department. "

Song Zhiyuan, President of the Fifth Business Unit, stood up and replied: "Boss Bai, our Fifth Business Unit has all new projects in 2011 and no old projects.

Among them, the Xishan project where Peng Siyuan was the project manager was an excellent project that was signed in the same year, completed in the same year, completed and accepted in the same year, and completed settlement review in the same year.

I think the comprehensive management capabilities of Peng Siyuan's team on this project have been fully demonstrated. "

Bai Qingting: "Okay.

Mr. Song, please take a seat.

Everyone gives applause to such an excellent Peng Siyuan team.

I hope everyone can learn more from Peng Siyuan’s team and try to do more efficient projects like the Xishan project for the company. "

The venue burst into warm applause.

Bai Qingting pressed the laser pointer in her hand.

The center of the big screen displays: "Looking to 2012"

Bai Qingting: “Looking back at 2011, I am very excited.

Looking forward to 2012, we are full of hope again.

In 2010, the output value was 500 million, and in 2011, the output value reached 2 billion, which doubled.

I have been hesitating about how many billion our output value target should be set for 2012?

If we double the target achieved in 2011, we will achieve 2 billion times 2 times and then 2 times in 2012, which is 2 billion * 2 * 2 = 8 billion.

Oh My God.

8 billion!

Have you ever thought about it?

Is it necessary to achieve 8 billion in 2012?

Let me think about it. Now we have more than 900 people. If we temporarily calculate it as 1,000 people, the average annual output value of each person is 2 million yuan.

First calculate by simply multiplying the number of people by 4. In 2012, 1000*4=4000 people are needed.

Zhou Nan, the person in charge of human resources, are you here today? "

Zhou Nan, the person in charge of human resources, quickly stood up and replied: "Boss Bai, I am Zhou Nan, the person in charge of human resources."

Bai Qingting: "Hello Zhou Nan.

If I need to expand the current company management team from the current 1,000 people to 4,000 people in 2012, I will need to recruit 3,000 people, of which the majority of us sitting on the core floor of this conference room are now. Accounting for about 20%, that is, 600 core-level personnel and 2,400 ordinary professional employees will be recruited.

Did you hear what I was thinking clearly? "

Zhou Nan, the person in charge of human resources, replied: "Listen clearly, Boss Bai."

Bai Qingting: "Okay, then please tell me, how long will it take you to recruit people normally?"

Zhou Nan, the person in charge of human resources, replied: "Boss Bai, this is too scary.

It turns out that we have never hired such a large number of people. "

Bai Qingting: "It doesn't matter. Based on your current experience, estimate how long it will take you to recruit these 3,000 people to work in Western Construction Co., Ltd. to serve all of us."

Zhou Nan, the person in charge of human resources, replied: "Boss Bai, if you want to recruit these 3,000 people, you must first recruit more human resources people."

There was a roar in the venue and some people couldn't help but laugh.

Zhou Nan, the person in charge of human resources, felt very nervous: "Boss Bai, the manpower is currently about 20 people. If we want to recruit so many people in a short time, I estimate that we will have to expand the manpower to 100 people first. This time is estimated to take a month.

Of course, in the process of expanding our manpower, we have not stopped recruiting other external personnel.

At the same time, it is recommended that we entrust numerous headhunting companies to help us search.

If we were to recruit another 600 core employees, it would definitely cause a shock in the industry.

At the same time, due to the principle of supply and demand, labor costs will definitely increase.

All of this is understood, and if accepted, being able to recruit these 3,000 people within 7 months is considered to be a very fast process, with an average of 14 people having to go through the onboarding procedures every day.

Based on the ratio of successfully recruiting one person for every 10 people interviewed, a total of 30,000 people need to be interviewed.

Based on the ratio of successfully recruiting one person for every five people interviewed, a total of 15,000 people need to be interviewed. Calculated based on a maximum of 120 human resources people, each person has to interview 125 people on average, amortized to 6 months and 180 days, and each person has to interview 0.69 people per day on average. This is just a manpower interview, and it also needs to be combined with a professional interview from the corresponding production team. "

Bai Qingting: "Zhou Nan, what do you think? It takes 7 months for you to recruit someone? Then, when you come in, they only work for 5 months. I will be finished in 2012."

Don't you think it's impossible to do this? "

There was another burst of laughter in the venue, as if to say, how could you possibly let you recruit people and just wait for 7 months?

The person in charge of human resources, Zhou Nan, was sweating on his forehead. While wiping the sweat with his hands, he nervously calculated and replied: "Boss Bai.

Assume that all 120 manpower personnel are in place in 15 days.

On average, each person spends two hours a day completing an interview, including after a successful interview, coordinating the professional knowledge interview with the production team, and completing the entry procedures for successful interviewers.

Then 120 people can interview 120*(82)=480 people every day. Under ideal conditions without rest every day, the interview of 15,000 people will take 31.25 days. If it is the interview of 30,000 people, it will take 62.5 days.

After some people come for interviews, they will have to wait a while before they can actually take up the job, which takes an average of one month.

In this case, to recruit all 3,000 people, the minimum theoretical time is 15 days plus 31 days plus one month of job extension, which takes 76 days.

The maximum theoretical time is 15 days + 62 days + one month of job extension, which takes 107 days.

Boss Bai, these are the most ideal calculations, calculated without any obstacles.

If there is a slight mistake, the time required for recruiting people will be extended. "

Bai Qingting: "What possible mistakes will extend the recruitment time? Why did you choose a bigger job?"

Zhou Nan, the person in charge of human resources, replied: “For example, the manpower of 120 people did not arrive at work within 15 days.

For example, the interview success rate does not reach the level of interviewing 10 people to successfully recruit one person, but it is reduced to interviewing 20 people to successfully recruit one person.

For example, because centralized recruitment has resulted in too much increase in human resource costs, the company needs to internally renegotiate salary standards, which is a waste of time.

For example, because we have concentrated recruitment too much, which has caused resentment in the industry, boycotts will lead to serious delays in the arrival time of new recruits. "

Bai Qingting: "Mr. Zhou Nan, who is good at human resources, please take a seat.

Now let's ask the bosses of our three business divisions to speak about how much the annual output value target of Western Construction Co., Ltd. should be set at in 2012. What are the reasons? Who among you three comes first? "

Tao Wuming, president of the first business unit, raised his hand.

Bai Qingting: "Please ask the venue assistant to hand the microphone to Mr. Tao Wuming, President of the First Business Unit."

Tao Wuming, President of the First Business Unit, reported: "Boss Bai, there is no way to say who will talk about such an important matter first and who will talk last. I thought about it and decided to follow the numerical sequence of this business unit. Well, I’m the first business unit, so I’ll speak first. I’ll throw some light on things in the front, and the two business department bosses will summarize it later.”

Bai Qingting: "Mr. Tao, you don't have to be so modest. You tell me your strength first."

Tao Wuming, President of the First Business Unit, said: "As for the annual output value target of our Western Construction Co., Ltd. in 2012, whether it should be set at 8 billion yuan or a number between 2 billion and 8 billion yuan. Let me express my opinion for your reference.

First of all, let me analyze the recruitment situation from what the person in charge of human resources, Mr. Zhou Nan, said just now. If he recruits 3,000 people, it will take roughly 6 or 7 months, which is relatively ideal. Later, it was readjusted and said that 3,000 people could be recruited in 3 to 4 months. In fact, these were all theoretical calculations.

I don’t know whether you believe he can fulfill the requirements within the time he is recruiting people, but I definitely don’t believe it.

And even if he goes by what he said, it will take at least 3 to 4 months to recruit 3,000 people.

That year's time was also removed by 25% or even more.

In this case, it seems that we are doing 8 billion a year with 4,000 people, but in fact it is not. In fact, it is used by less than 4,000 people. Because we don’t know when all the 3,000 newly recruited people will be recruited, and what we need to do next is more than 10 billion, because it should be 8 billion ÷ 0.75 = 10.7 billion.

We have never done this in the industry on such a large scale.

So I analyze from the aspect of human resources, I think it is unrealistic to complete 8 billion in one year, especially relying on us to recruit 3,000 new people to complete 6 billion.

Secondly, let me analyze from the perspective of capital demand, whether it can complete 8 billion in 2012.

We temporarily understand the start-up capital of each project as 10%. For example, if we have an output value of 2 billion in 2011, we may need 2 billion × 10%, which is about 200 million to start our business in 2011. project. This number is similar to the number we actually use. Mr. Feng from Finance can confirm this. "

Bai Qingting: "Feng Shilan, the person in charge of the financial center, Mr. Feng, please help Mr. Tao Wuming, the president of our first business unit, to confirm whether you have counted the start-up funds for this project in 2011? How many billions were used?"

Feng Shilan, the person in charge of the financial center, stood up, and the venue assistant immediately handed the microphone to Feng Shilan.

Feng Shilan, the head of the financial center, took the microphone and replied: "Boss Bai, I am honored to answer your question. Our financial center has always paid attention to the start-up funds of each project. Well, every dollar used before the payment is received We all list the money as the start-up capital of the project. The start-up capital of some projects is 78%. At this time, he has already paid back, so he will have no project start-up money later. Some projects are You may not get a refund until more than ten percent is used. The situation of each project is different, but our statistics for 2011 show that the start-up capital accounted for approximately 11% of the annual output value. That is to say, in 2011 The project start-up capital of our Western Construction Co., Ltd. was 2 billion times 11% = 220 million, Boss Bai, I have finished my answer."

Bai Qingting: "Okay, thank you to Mr. Feng Shilan, the head of our financial center, for your wonderful answer. Your financial data makes me feel so relieved. I feel that I can call it at any time and it has never been stuck. Thank you, Mr. Feng, please sit down." .”

Bai Qingting: "Mr. Tao Wuming, President of the First Business Unit, after you listen to the answer given to you by Feng Shilan, the head of the financial center, you can continue your analysis."

Tao Wuming, President of the First Business Unit, continued his analysis: "Okay, Boss Bai.

Just now, the head of the Finance Center Feng Shilan and Mr. Feng provided that the start-up capital for the project in 2011 accounted for 11% of the annual output value. For the time being, let’s calculate a little less and calculate it as 10% to make it easier to calculate.

So assuming that the annual output value target is set at 8 billion in 2012, we will need a start-up capital of 8 billion × 10% equal to 800 million.

What does this 800 million start-up capital mean? This means that we need to spend 800 million yuan from the net profit earned by our project for the company. Assuming that the net average net profit of all our projects is 30%, then our annual output value of 2 billion yuan in 2011 can only theoretically generate 600 million yuan.

In other words, the 600 million yuan in net profit we earned from the 2 billion yuan output value in 2011 was not enough to support the 800 million yuan start-up capital we used to support the 8 billion yuan annual output value target in 2012. Theoretically speaking, there is still at least 200 million short of funds.

There is another solution, which is what Mr. Feng, the head of the financial center, said just now. The few hundred million raised from the listing can theoretically be enough to support the start-up capital. "