Not long after Li Xuan's family left, Zhang Aixue, Zhang Chong, Li Nan and a large group of early employees of Jiayang Education also came to the home to pay New Year's greetings to Xu Yiyang's family.
Zhang Aixue looked a little more energetic. Xu Yiyang once wondered if he was having a second love affair.
I asked privately that there was no second spring, but we had just talked about a talent to work at New Oriental two years ago, and the other party had already agreed to join Jiayang Education after the year.
When Xu Yiyang heard that it was from New Oriental, he immediately became interested and asked him about the details.
He said that the person he was talking to this time was a middle-level man from New Oriental, 27 years old, from Qingdao.
He was a teacher at New Oriental in the early days. As New Oriental continued to develop, he also became the head of a branch of New Oriental.
Because he was an only child and his parents were not in good health and were urging marriage, he had the idea of staying in Qingdao.
He originally wanted to do English training on his own in Qingdao, but after investigation, he discovered that Qilu already had Jiayang Education, a well-known English education brand in the province.
So I took the initiative to find someone to connect with me and met Zhang Aixue.
Zhang Aixue chatted with him twice, and not only learned some of New Oriental's development from him, but also reached an intention to cooperate with him.
The other party is willing to join Jiayang Education as deputy general manager, responsible for participating in the formulation of strategies, as well as the optimization of management, personnel and models of each branch.
Xu Yiyang is very happy. None of his current team is a regular army in the true sense of the training industry. Almost all of them were recruited by himself.
For such an informal team, I have to explain too much to them, such as the current situation, model, and future development space of the training industry.
However, those who come out of New Oriental are really regular soldiers. Now New Oriental has reached the point of annual income of several hundred million, and its turnover should be about ten times that of Jiayang Education. Therefore, people who come out of New Oriental not only can immediately They can keep up with the progress of Jiayang Education, and even know more about some aspects than the current team.
As Jiayang Education continues to move forward, it can be summed up in two words: expansion.
The province needs to expand, and outside the province also needs to expand. This is when talents are needed.
In addition to landing in Zhonghai, expansion within the province is actually also very important.
Now Jiayang Education has completed the first step of occupying territory in 17 cities across the province. The next step is to fully occupy.
Landing in a new city is actually the hardest thing to do. Not only do you have to be familiar with the environment here, but you also have to form a local team here, gather local promotion resources, and build a reputation in the local area.
But once the initial landing is completed, expanding the territory becomes extremely easy.
Now, all 17 branches in the province are in full operation, which means that it is time to engage in fission.
Xu Yiyang's goal is to directly add two branches to Quancheng, Qingdao, Yancheng, and Linshi, which are larger cities with larger populations and leading economic development, to achieve three Jiayang Education in the city; as for the remaining of prefecture-level cities, one additional store will be opened in each city.
In other words, a total of 21 more stores will be opened in Qilu Province.
Xu Yiyang has calculated the minimum cost of opening a branch in the province. In larger cities, rent, decoration and various hardware facilities are all in place. Five or six hundred thousand is enough. In smaller cities, the main cost is rent, decoration and labor. I can save some money, probably around three to four hundred thousand.
Therefore, opening 21 branches at once does not put much financial pressure.
Anyway, at this stage, the hematopoietic capabilities of the 17 branches of Jiayang Education are already very strong. Xu Yiyang does not need to allocate funds from Jiayang Education for the time being, so he will use all of them to invest in his own development.
Zhang Aixue got some inspiration from the deputy general manager who was about to join.
So he asked Xu Yiyang two questions: first, whether he wanted to raise funds; second, whether he wanted to join.
The biggest advantage of financing is that you can quickly get a large amount of money, and then complete expansion and rapid development in the shortest time.
But the disadvantages are also obvious, namely the loss of equity and the cession of future interests.
The biggest advantage of joining is that it can directly mobilize the power of the whole society to achieve fission.
Not only can it quickly raise huge amounts of funds through franchise fees, but it can also create dozens or hundreds of branches at once, continuously supplying blood to the headquarters. However, its shortcomings are bigger than financing, which is the loss of management rights and most of them. cession of profits.
The first thing Xu Yiyang ruled out was franchising. When educational institutions engage in franchising, it is easy for their brands to be ruined due to the uncontrollability of franchisees.
The next thing to rule out is financing.
Jiayang Education's current revenue capacity is sufficient, and its development speed itself is already guaranteed to a certain extent. Financing is just the icing on the cake.
However, financing also brings a lot of troubles. The biggest problem is that the team is not strong enough.
How much money a team can control is also a major indicator of the team's ability.
Having too much money and not knowing how to spend it will lead to two situations: either spending money indiscriminately or not daring to spend it.
If you spend money indiscriminately, you are very likely to get yourself involved. Countless companies have ventured into development, running faster than the Rockets in the first half, and went bankrupt in the second half. The root cause is mostly due to spending money indiscriminately.
As for those who don’t dare to spend it, if they don’t dare to spend it once they have the money, then what else can they do with financing? Does the investee do financial management
Jiayang Education is currently in peak season for twelve months a year, and three of them are super peak season. In other words, the revenue in a year can easily reach 60 to 70 million.
With an income of 60 to 70 million, the net profit can be almost half, which is more than 30 million a year.
If we follow the basic formula of 10 times PE in the capital circle, which is 10 times annual net profit, then the current valuation is ten times net profit, which is more than 300 million.
However, 10 times PE is the most basic valuation method. Most popular companies, or companies with relatively fast performance growth, will look down on a mere 10 times PE. In order to impress them, capital will give 20 times or even 30 times. times the PE quotation.
Xu Yiyang dare not say that at this stage, Jiayang Education is growing at such a high-quality rate that there are people rushing to invest in companies like Yanjing and Shanghai with a PE of 20 times.
In that case, Jiayang Education's valuation should be around RMB 700 million.
If you sacrifice 10% of your shares, then the capital should invest 70 million in cash for you.
70 million is a huge amount of money. Although Zhang Aixue has built a relatively complete team, in Xu Yiyang's view, the maximum investment scale this team can control is 10 million. If it is more, they will not be able to play at all. change.
Therefore, when it comes to financing, it is better to stabilize it first. If we can develop steadily and quickly without relying on financing and be self-sufficient, that would be great!
…
Shen Lele and the other brothers only stayed home for a week before they all returned to Zhonghai and started busy.
Only Xu Yiyang stayed at home for ten days.
In the past ten days, he received some good news.
The first person to bring him good news was Hu Lao Hu Bingwen.
Mr. Hu said that he had read the textbook manuscript given by Xu Yiyang, and his evaluation was in four words: outstanding.
At the same time, Mr. Hu also helped Xu Yiyang do a little polishing.
Xu Yiyang was very happy to receive Mr. Hu's approval.
He asked Mr. Hu to agree to write a preface to the textbook and add his name to the introduction to the editorial team. He was willing to pay a hard fee for this.
The old man agreed to sign, but declined the hard work fee.
In fact, university professors are normally not allowed to sign their names on extracurricular tutoring materials at will. They must at least obtain the consent of the school first.
But fortunately, the old man has retired, so he is not affected by this.
The next person who brought good news to Xu Yiyang was Mr. Ma from Tengxun.
During the winter vacation, Tengxun has stepped up its promotion efforts, and with the payment of mobile settlement amounts, funds are abundant.
So they took advantage of this wave of holidays to reach nearly 8 million users, which is a gratifying growth rate.
More than a month ago, Tengxun, which was in urgent need of financing because there was no money in its account, has now become a rare high-income enterprise among Chinese Internet companies.
Many Internet companies are envious of Tencent's new profitable business.
In fact, every Internet company hopes to be as big as an operator.
However, mobile Internet access is not yet popular, and it is still difficult for their own products to be integrated with operators at this stage, so they can only watch Tengxun make money through mobile QQ and be jealous.
Tong Fangquan also told Xu Yiyang that as soon as February entered, the renewal rate of Mobile QQ's 560,000 monthly users last month reached 97%. It is currently the highest value-added business retained in the next month in the entire head office, and it is far ahead of the second place. It is simply It is a god-like product;
At the same time, thanks to the strong promotion of Tengxun during the winter vacation, by mid-February, another 260,000 monthly subscription users were added, and now the total monthly subscription users have exceeded 800,000!
This development speed is really amazing, even much faster than Xu Yiyang expected.
Tong Fangquan's wife Chen Xinlin also told Xu Yiyang good news: Han Han's "Three Gates" has been reviewed on an expedited basis and is ready to be sent to the printing factory to start printing.
The first printing of "Three Doors" is 50,000 copies, which is already a relatively bold number in private book companies. After all, everyone prints tens of thousands of copies first to see the market response. If the market sells well, they will continue to add more copies. print.
But this also has a drawback, that is, after the first printing of 8,000 or 10,000 copies is on the market, if it sells well, it will be too late to temporarily print additional copies, and they will soon be sold out.
After the printing factory here completes the printing and then distributes it to bookstores across the country through logistics channels, pirated copies are already flying everywhere.
Therefore, if the first printing of a best-selling book is printed in large quantities, the market can be spread before pirated copies are released.
After all, those who make pirated books need time to respond, and it will take at least a week for typesetting, printing, and distribution.
However, the risk of overprinting is also very high.
The first is royalty. If the royalty is 8%, then for a book priced at 30 yuan, the author will be paid 2.4 yuan. If the machine is printed for 10,000 copies, the author will be paid 24,000 yuan. If the machine is printed for 100,000 copies, the author will be paid. Two hundred and forty thousand.
If too many copies are printed and cannot be sold, the author will not refund the money.
In addition, there are considerable printing costs, which cannot be recovered. In the end, there may be 70,000 to 80,000 copies left in the warehouse, and in the end they can only be sold as waste paper.
Therefore, for publishing companies, they would rather give piracy some opportunities and minimize their own risks, so the number of first printings is generally conservative.
After Xu Yiyang heard about it, he directly told Chen Xinlin: "Aunt Chen, if your company has sufficient funds and you can trust me, then apply quickly and print 300,000 copies for the first printing."
"Three hundred thousand?!" Chen Xinlin was shocked: "Is it that much? I have never heard of any book printing 300,000 copies in its first printing. Isn't this a bit too risky?"
Xu Yiyang said: "There is no risk at all. Han Han now has many student fans across the country. Once his debut novel is published, fans will definitely buy it. 300,000 copies will definitely be sold out."
After finishing speaking, Xu Yiyang added: "But if you print 50,000 copies for the first time, and subsequent books cannot keep up when they are popular, they will probably be pirated and seize the market. In the end, you will only be able to sell a few hundred thousand copies, or even less." , other market shares have been taken away by pirates."
Chen Xinlin believed in Xu Yiyang's vision through her husband's personal experience. After hearing what Xu Yiyang said, she thought about it and immediately decided: "Okay! Then I will change the application and print 300,000 copies for the first time!"
Xu Yiyang smiled and said: "If we print three hundred thousand copies, that guy Han Han can make a lot of money, right?"
Chen Xinlin said: "The price of "Three Doors" is 20 yuan. If it sells 300,000 copies, he can get 480,000 royalties in royalties. We have already paid him royalties on 50,000 copies, a total of 80,000 yuan."
Xu Yiyang said jokingly: "Then you have to tell him that I have helped him a lot to make so much money. When I go back, let him treat me to dinner."
Chen Xinlin said hurriedly: "I told him that you are his boss, and he is very grateful to you. He originally said that he wanted to find a chance to get to know you, but he was afraid that you would not want to talk to him."
Xu Yiyang smiled and said: "Then just tell him directly that you are going to treat me to dinner."
(End of chapter)