Chain business is to draw 2 frames, cut 4 knives

Viewpoint/ Liu Run Master Pen/ Banapi Responsibility/ Yingying

This is the 1657 original article of Liu Run public account

Chain business is to draw 2 boxes and cut 4 knives.

On a private board, a entrepreneur classmate raised a good question:

How to understand the business of chain joining?

really. Many people are doing such a business, and I often encounter other similar problems:

Why did I make money for the first two stores, but I lost it later?

When expanded, should I choose to directly operate or join?

How should I analyze my chain business to have better benefits?

These issues are important. It can help us do our own stalls better.

Chain business actually has underlying logic.

Today, I share some thinking with you.

Draw 2 boxes, cut 4 knives

Chain business, chain business, you probably know the name, it is a shop and a shop.

However, why do you make money in the previous shop, and you start to lose later?

I often say that if you do business, you need to calculate the account.

When you have only one store, the ownership and management right of this store are yours. Everything is yours, it will be easy to make money, it is my ability and ability.

However, if you take a closer look, it is not necessarily.

What's the meaning?

Chain business is actually drawing 2 frames, cutting 4 knives.

The box below is funding and management.

This is mainly a place for "dividing money".

When you have only one store, the funds may be your own, and management is also managed by yourself. These costs are ignored by you.

But when you start to expand, you may use other people's funds. Please ask more management teams. They have their own reward demands. These are costs. It is necessary to divide money.

The money you make is to get out.

When the money you make is not enough, you lose.

After that after that, where should you make the main money?

In the box, products and brands above.

Relying on products and brands is the last place to "make money".

We will wait one by one.

However, when analyzing my chain business, I recommend you to draw 2 frames first and cut 4 knives.

Divide the money you make into these 4 parts. Cut everything.

How much does the funds occupy? How much is management? How much does the product account for? How much does the brand take?

In your heart, there should be a rough proportion. You can compare whether this ratio is reasonable.

Ok? If you can, let's continue.

Global and management scores,

What should be?

So, how much money should be divided into money and management?

Generally speaking, the return rate of funds is at least 10%.

Why?

Just said, if you want to really do a chain business and start expanding, then you need more funds.

Fund has its own expectations.

Everyone often says, if I invested 1 million in, what is the yield?

Of course, the higher the yield, the better.

But at least at least, the yield cannot be lower than my own financial management income.

Otherwise, why do my money be brought to you?

Generally speaking, wealth management yields are better and can achieve 8%.

The return on funds requires 10%, or even higher, and it is not too much.

Therefore, the funds must be cut first. At least 10%are to be divided.

In addition to funds, there are also management teams.

When you have only one or two stores, you can still do things and do it yourself. Many things do it yourself. But once you expand, you can't be busy. Be sure to ask someone to help.

In the same way, I will help you, because I am here, I earn more than other places. Otherwise, why do I come to work here?

People who have done business in business may know that the money that is divided into is not a small number.

The money to be divided varies from person to person. Look at their respective management efficiency.

Management, cut another knife.

Then, you will find that when many people expand, they will not make money.

Because many people's gross profit may be only 20%. Then, 10%of the funds and 10%of the management team are actually divided. Don't make money.

What should I do?

Improve the efficiency of funds and management.

Direct business, joining, direct management

I have said before that funds and management have three different combinations.

Direct operation, joining, direct management.

The chain business you see is actually one of them.

What is a direct business?

Direct operating is my ownership and management power. I am a boss, and I am also the shopkeeper. I pay for myself, and I also manage it myself.

The advantage of this is that the control is high and the service is generally good, but the expansion speed is too slow to use its own funds.

As a result, some people chose to join.

What is joining?

Joining is your boss, and you are also the shopkeeper. If you pay for yourself, you also manage it yourself.

The advantage of this is that franchisees are inspired, but franchisees are also difficult to control. In order to quickly return to earning money, they may disregard the brand image, and the quality is prone to problems.

As a result, someone chose the intermediate model and straightforward.

What is a direct tube?

The direct management is, you are the boss, I will be the shopkeeper. You pay for yourself, but I will manage it.

Franchisee, responsible for funding. Brand dealer, responsible for management. Brand owners have given "ownership" in exchange for investment, and then they still have "business rights" to serve users.

There are also some successful companies that are familiar with this model, such as famous and excellent products, Hailan House.

Therefore, although funds and management, they must be divided after making money. But we can still choose different models according to our own situation to improve the efficiency of funds and management.

Make money with products with low -edge time costs

After speaking, the following frames, funds and management, you know that after making money, you have to divide it.

The above frames, products and brands should be a place where they really make money.

Let's talk about the product first.

First of all, what is a product?

The product is corresponding to the service. To understand the product, we have to understand the service first.

Service, I often give an example, tailor.

You want to make a piece of clothes and find an old tailor. He is very responsible to help you measure your figure, choose fabrics, and fixed styles. After two weeks, he called you and said it was ready.

When you try it, it's too good. Very satisfied.

This is service. Services are very personal.

However, you also know that there is an obvious disadvantage of such personalized services: the cost of marginal time is too high.

Every time you serve one customer, the old tailor must pay extra time costs.

Even if he works hard, no matter how hard he is, he may only serve 10 people at most a day.

What should I do?

From service, it becomes a product.

For example, this old tailor uses a standardized version and a assembly line to produce clothes with higher efficiency.

In this way, the marginal time cost of the old tailor is greatly reduced.

This is the product.

The core of the product is standardization.

Let me tell you the example of this old tailoring is to explain what service is and what products.

Understanding this is very helpful for us to do a chain business.

Because this provides an idea, one method: we can expand, then provide products to other stores, and make money with low -side time cost products.

What's the meaning?

I have a friend who opened a beauty salon. She explored a method to achieve rapid growth.

She found those who wanted to open a beauty salon, provided technology and experience, and 70%of funds to help others open stores.

However, there is a condition: I must use my product.

Then, if this beauty salon will make money in the future, that person can also repurchase 70%of the original shares at the time, and this store belongs to you completely.

However, this condition is still: I must use my product.

Therefore, my friend has made my model "light". Provide consultation and funding services, and then bundle your own products.

The more stores, the more products she sells, the more money she sells.

Is your brand really valuable?

After talking about the product, let's talk about the brand.

Brands should also help you make money.

I often say that there are three things in this container: understanding, trust, and preference.

These three things can help consumers reduce their choice costs, and can also empower partners and better do business.

When you have a brand, consumers come here, and franchisees follow. You will find that the brand provides a premium that makes money making it easier.

However, there is a premise that cannot be ignored: your brand is valuable.

Many people often ask such a question. I just founded a brand. How can I empower my business?

No way to empower.

Because there may not be a "brand" at the beginning, it can only be called "trademark".

What you can do is empower this brand. You continue to do, continue to invest, continue to do business well, and continue to benefit your partners. After 3-5 years, or even 5-8 years, you find that you really have a valuable and trusted brand. Is your brand really valuable?

Be sure to have an impartial cognition.

Only when your brand is valuable can it better help you make money in the chain business.

Without the brand's appeal, when many people expand, they will use some strange ways, even crooked the evil ways to do business.

Copy single -store model

It just mentioned that if you want to have a valuable brand, it is important to continue to do business well and continue to benefit partners.

In fact, your shop is to make money.

Expansion is actually "replicable to make money."

This is what we often say, from 0 to 1, from 1 to N.

This process is important to find a copy of the single -store model.

I said before that the complete path should be: from 0 → 0.1 → 1 → 10 → 1 → n.

From 0 to 0.1.

You find an unsatisfactory need, a pain point, and want to solve it.

In your heart, I have a strong desire and want to do something. At this time, you take the first step.

From 0.1 to 1.

Idea, not important.

It is important to be able to turn ideas into products. It is important to really open a shop.

When your shop makes money, it is completed from 0 to 1.

From 1 to 10.

This step is to seek replication.

When a single shop is successfully opened, you can try to expand in a small step.

Find a copy of the capacity kernel. What is because of making money? To find.

From 10 to 1.

right. You read it right, not from 10 to N, but to return from 10.

Why?

Refine the kernel.

Try to try and error. Try and error is for iteration. It is to find the real cause of success.

Returned it to go further.

From 1 to N.

At this point, it is really from 1 to N.

Because of making products, successful experiences, trying to find successful kernels, but also trial error and verification on the market, and finally can be copied on a large scale.

With the help of team leverage, capital leverage, product leverage, expansion.

When you really find a copy of the single -store model and can refine your kernel, the possibility of successful chain expansion greatly increases.

And when the profit of your single store is about 30%, it may be a profit that can support your expansion. Otherwise, once you go out, you will lose. This is of course not an absolute value, but you can refer to it.

Last words

So, what exactly is a chain joining business?

The chain joining the business is to draw 2 boxes and cut 4 knives.

The box below is funding and management. When you are bigger, you may need to use the funds of others and a greater management team. These are all "dividing money". It is also often ignored.

The box above is a product and brand. Binding sales products and truly having a brand premium are the money you earn.

Many people do chain to join the business, and they lose money as soon as they expand. Many times, because the fine accounts are not good. The box below is divided into money, and the box on the top cannot make money.

Therefore, carefully cut everything and see if your business can support you bigger.

See how to improve business efficiency, optimize models, and build brands.

Think about it, take a look, draw a picture, and cut everything.

Otherwise, it is a mess.

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