Chapter 2112: Only with money can you have a backbone

Zhou Buqi started a discussion.

The normal idea of ​​​​starting a business is to find an industry with market demand, build an excellent team, find some funds, and start working. The probability of failure is high.

There are many reasons for failure. The ability of the entrepreneurial team is often the least important.

Alibaba's Eighteen Arhats were all crooked people who couldn't find jobs elsewhere; when Penguin first started his business, he was also a group of soldiers and generals. The technical director had to hold a database book and write code while learning. .

It doesn't matter if your ability is low, just learn slowly.

I'm afraid I chose the wrong direction.

I'm afraid I won't have the funds.

The reasons why most businesses fail are mainly due to two points: first, the wrong direction is chosen; second, there is not enough money.

As long as you pass these two levels, you will succeed.

Especially money.

In recent years, the decisive role of money has not been taken seriously, and it is still the traditional entrepreneurial philosophy. Domestically, it is "building a team, setting a strategy, and leading a team", while overseas it is "setting a strategy, building a team, and leading a team."

It will be different in a few years.

First of all, there are enough talents in the country, and talents can be selected according to strategic needs, especially for entrepreneurship in the technology industry. The idea of ​​"building a team, setting a strategy, and leading a team" proposed by Mr. Liu for local private enterprises is no longer applicable. It can be updated and moved towards the European and American-style three elements of "setting a strategy, building a team, and leading a team" proposed by Boss Ma. The thinking has changed.

What's more important is money.

Spending money to build the market is more effective than any other strategy.

More money means absolute strength.

The failure of Fancl and LeTV is not so much a strategic failure as it is "a living person holding his urine to death". It was because they failed to survive the cash flow crisis, so they failed.

The fundamental reason is that I have no money, so I can’t play anymore.

If companies like Vancl and LeTV had appeared five or six years later, domestic capital boom had picked up and new entrepreneurial concepts had emerged, maybe these two companies would have succeeded.

The success of a number of new-era IT companies such as Meituan, Didi, Pinduoduo, and Kuaishou is based on the background of a new entrepreneurial theory of "infinite money."

The reason why a number of new car-making forces, including NIO and Ideal, dare to compete with Tesla is based on the country's booming economic situation and the raging wave of capital.

With unlimited money, you can go head-to-head with Tesla.

However, later, due to various reasons, the environment changed and they could no longer raise more money, so they failed and were left far behind.

It’s only 2011, and it’s only been a few years since the relevant domestic departments approved the large-scale operation of private equity, so it’s just started. After a few years of growth, the capital concept of "infinite money" plays an unmistakable role in entrepreneurship.

A few years later, this set of views expressed by Zhou Buqi would already be the consensus of the industry, and there is nothing surprising about it. It has even broken out of the circle and been applied to milk tea chains, coffee chains, and hot pot chains.

However, it’s only 2011, so it’s definitely a very new perspective.

Zhou Buqi said: "JD.com has chosen the direction of e-commerce, which is very correct. The country's signal is very clear. Next, it will vigorously promote the development of the e-commerce market. Next, it is money. The more money, the better. ."

"Um."

Liu Qiangdong seemed to be still hesitating.

Zhou Buqi understood the other party's psychology.

It is nothing more than unwilling to overly dilute its shareholding in JD.com.

It is now the end of the year. In the past year, JD.com’s annual loss was 2 billion. At first glance, it’s shocking, too much. However, JD.com’s annual sales exceed 40 billion.

As long as JD.com can delay the payment of goods for a year and a half, it will have tens of billions of cash flow on its account, and then it will continue to make money and use future income to make up for today's shortfall.

A mere loss of 2 billion is nothing at all.

Unless an uncontrollable accident occurs, JD.com's brand reputation is ruined, all suppliers come to collect debts, and a run occurs.

But this kind of thing is almost impossible to happen.

From this point of view, JD.com is not short of money at all.

Since there is no shortage of money, why do you need to raise funds to dilute your share? Even if financing is needed, wouldn't it be better to wait until JD.com's valuation gets higher and higher after persisting for a few years?

Selfishness is at work. In fact, this is normal. People are not saints and they all have selfish motives.

But Zhou Buqi felt that this issue should be viewed from a larger perspective, "I just said that I made a request to Changyou to grow wildly. This is a major trend in the industry, and JD.com should also seize the opportunity of wild growth. This That's right. But there are many hidden dangers caused by barbaric growth. If there is enough money in the account, it is the ultimate solution to solve all the potential crises caused by barbaric growth. Money is the backbone, even if there is pressure on the shoulders No matter how big it is, it can still stand.”

Liu Qiangdong asked: "How to do Changyou?"

Zhou Buqi said with a smile: "In terms of financing, we have already agreed with SoftBank to issue a private placement of US$500 million. Moreover, Changyou has been listed, so there will be more room for debt financing. Next year, at least 20 bonds will be issued. One hundred million U.S. dollars."

Liu Qiangdong raised his eyebrows, "The current game market is not very good, isn't it?"

"It is precisely because it is not good that we should seize the opportunity to work quickly and hard. While the industry is at a low point now, we must make more money and develop more. When others are worried, Changyou must rush in without hesitation." Zhou Bu The machine was unambiguous and looked up at him, "JD.com should do the same. Think about it carefully. The collapse of the group buying wave has had a very bad impact on the domestic e-commerce environment. This happens to be a trough in the general environment. This is a Chance."

JD.com is a domestic unlisted company, which is a bit embarrassing.

Domestic financial market supervision is very strict, and it is difficult to lend to Internet companies without asset collateral. Banks do not grant loans, and hedge funds with lending models are not allowed to appear in the market.

Because JD.com is not listed and internal materials are not disclosed, it is difficult to gain the trust of foreign capital institutions and obtain loans from abroad.

Then the only way is equity financing.

Otherwise, like Amazon, where equity financing and debt financing go together, JD.com's development will be smoother and easier.

By the end of the year, Amazon's financing had reached US$20 billion, 20 times that of JD.com, and Bezos' shareholding could still exceed 30%.

Because Amazon often uses debt financing, they have enough and wide channels to borrow money.

This is not the case in China. The founders of many Internet companies hold so few shares because such companies cannot obtain loans.

If you can't get a loan, you can only continue to dilute your shares and choose equity financing, giving up all your shares to capital institutions.

Liu Qiangdong nodded, "That's the truth."

Zhou Buqi said with emotion: "I have met with Lao Ma many times in the past few days. The media has reported that he wants to buy back Alibaba's shares from Yahoo and take back control. That was back in 2005. Yahoo got 40% of Alibaba's shares, and Alibaba received US$1 billion in development funds. For this reason, Boss Ma even faced the potential crisis of losing control of the company. However, when Yahoo took this US$1 billion, it was the earliest What I found was Shanda. Shanda’s boss Chen was worried about losing control and didn’t accept it, so he gave Ali a chance.”

Liu Qiangdong said "hmm".

Zhou Buqi continued: "Looking back now, how smart is Boss Ma's decision? Don't worry about whether the shares are diluted or not, get the money first! Money is the biggest guarantee for the development of a company. Boss Ma now has the opportunity to take it back Ali's stock, he can firmly control Ali again. What about Shanda? Shanda has delisted from Nasdaq in despair. There is also Kuliu.com, which I invested in before but later sold to Shanda. Cool. Why was Kuliu surpassed by Tudou, Youku, and even later video websites such as iQiyi, Baofeng, and LeTV? It’s because Shanda ran out of money, couldn’t afford to support Kuliu, and couldn’t launch a rush to buy film and television rights from competitors. War. If Shanda has enough money in its account, Mr. Chen’s idea of ​​creating an entertainment ecological industry might actually come true.”

Liu Qiangdong said with a smile: "Isn't it just to persuade me to start a new round of financing for JD.com? It's just one sentence, and there is no need to make so many sense."

Zhou Buqi said: "It's not about financing or not, this is a very new concept. It may be difficult to accept it in the past few years, but in a few years more and more people will understand it. Capital is the core competitiveness that determines the development of an enterprise. , the same goes for technology companies.”

"Not technology?"

"It's right to talk about technology, but there is a big premise. State-owned enterprises rely on power, and private enterprises rely on capital. This is the core key to their development. We private enterprises must first have large capital, and then talk about technology, Talk about the stars and the sea.”

"Well, you have to be rich." Liu Qiangdong has already decided. "I will hold a board meeting when I get back and start a new round of financing for JD.com. Next year when I come to the United States to study, I have to solve the biggest hidden dangers for my team."

Zhou Buqi smiled and said: "Yes, then we are almost the same. I have been a hands-off shopkeeper in the past few years, and I have learned a secret, which is to solve the money problem. If you want the horse to run, you have to ask the horse to run more Eat grass.”

"Um?"

Liu Qiangdong burst out laughing.

Zhou Buqi was stunned for a moment, "What's so funny about this? Did I say something wrong?"

Liu Qiangdong winked and said jokingly: "Did Alibaba take back its shares from Yahoo?"

"Well, it has been decided internally and has not been made public yet."

"Are you involved?"

"So be it."

Zhou Buqi nodded.

Liu Qiangdong smiled and asked, "Can I make a lot of money?"

Zhou Buqi smiled calmly and said, "Well, I can make a fortune."

Liu Qiangdong said with deep approval: "Then you should have fed the horses a lot, otherwise you would not have been able to take advantage of such a good opportunity to make money at the bottom."

Zhou Buqi also burst out laughing, "Young Master, go bury the dead man!"