At the moment of the epidemic, there are not many good businesses. If you click your back and catch up, you can't be timid.
A larger company and a longer business always have the opportunity to experience some storms, but the difference is that it is a little bigger and smaller.
Jinan's No. 1 dyeing factory Dongyuansheng has experienced a big wave.
1933, Dongyuansheng Dyeing Factory discovered a huge business opportunity for machine dyeing, so it carried out large-scale mechanized expansion. We have successively borrowed more than 300,000 yuan from banks and silver . The dyeing factory is expected to have a profit of at least 100,000 yuan in one or two years, and all loans can be cleared in thirty years. Dong Yuansheng has always had a good reputation, so they think that even if there is a gap in their working capital, they can still obtain short-term loans from the bank at any time.
However, although the dyeing plant was successfully completed and started construction, it caught up with the serious world economic crisis. Under the crisis, the people have a difficult life and demand has severely reduced, so the price of dyed cloth fell sharply, and the prices of many cloths are almost halfway. Sales are poor and corporate profits are declining sharply.
At this time, in order to avoid risks, banks also tightened loans on a large scale. Banks such as Transportation, Mainland and Shanghai proposed loan recycling with dyeing factories.
Dong Yuansheng was tired of dealing with it, and his colleagues came out with rumors again, "Dong Yuansheng is going to be paid!"
The house was raining all night, and was in a flash. In a matter of thousands of things, Dong Yuansheng stood on the top of the waves and was about to ruin it if he was accidentally killed.
What strategies and order should the management team use to deal with it at this time?
Dongyuan Sheng Dye Factory has Zhang Qiheng as the core leadership, carefully analyzed the situation and played three cards.
first photo boosts confidence within the company. The management of the dyeing factory rationally judged the environment in which the company is located, believing that the company itself is fine, and historical decisions are all right, and the current dilemma is mainly caused by the external environment. It is very important to find out where the problem is.
As an enterprise, there is a problem with the efficiency, no one buys the product path if it is wrong, or the sales team cannot sell well. First, check the problem internally to ensure that there are no major mistakes.
Next, we need to sort out external factors. 1933 was the time when the world economic crisis affected China. A large number of agricultural products were dumped abroad, and foreign wheat , foreign rice and foreign cotton flooded the domestic market, resulting in high yields and disasters among farmers, sharp declines in income, and difficulties in life.
In this context, the demand is not strong, and Dongyuansheng's cloth cannot be sold. Not only that, the price of cotton yarn upstream dropped sharply, causing the stock of cotton yarn to depreciate together. The survival pressure of the company can be imagined.
Zhang Qiheng thought that there was no problem with the risk management of the company, which was the confidence of the company to continue. First, the total asset value of the enterprise can repay the loan, and the debt-to-asset ratio is within a controllable range; second, even if there is no loan, if the enterprise is not well controlled during the sharp decline in prices, it will also have the risk of a failure, which is a challenge. Based on this, reaching an agreement within the company and firmly maintaining confidence in overcoming difficulties is the primary task in responding to the crisis.
second photo, big bank partners take a reassurance
For banks with large loans, they need to come up with plans for enterprises to deal with the crisis and give evidence of normalization of enterprises' operations. At the same time, in order to give banks a firm confidence, Zhang Qiheng mortgaged the houses, machines, land and goods to Bank of China , Fushunde Bank and Yuankang Bank.
This way, banks will be relieved and will help companies find ways to get out of the predicament.
Only when you can see the distance can you have the patience to wait together; only when you have the interests tied together can you have the enthusiasm to share the joys and sorrows.
The third photo, small partners give settlement sincerity
Most social rumors arise from small partners, because large partners do not want to collapse, collapse is a major loss. And the young man is more likely to use any means to get his own interests. Rumors are terrifying, so small companies with debts need to pay decisively.
repayment of small debts is conducive to establishing a stable external image of the enterprise.The small account comes to collect debts every day, giving the outside impression that this company will not pay back the debts, can no longer continue to do it, and the serious business is scared away. Rumors that create bankruptcy rumors also spread out in the mouths of these people, and over time, it will easily shake external confidence in the company.
For this reason, enterprises will give priority to cleaning up the surrounding small bank loans and clearing up small amounts of debts. Eliminate the "trust crisis" in the money industry.
The fourth one, comprehensively reduce various expenses and accelerate the circulation of funds
After the external environment is stable, enterprises should vigorously strengthen internal management.
First, you need to increase the inventory turnover rate of , turn inventory in time, and do not overstock, because it will depreciate if it is backlogged, and prices will fall too quickly. If you want to keep some profit, you will race against time.
reduces various expenses, does not purchase unless necessary, and reduces the cost of the enterprise.
After a series of combined punches, by the end of 1935, the company had a profit of more than 10,000 yuan in addition to the interest arrears. In the economic environment at that time, it was a very considerable achievement.
1936, seeing that the company's development trend was improving, the lending banks took the initiative to lend, and the economic environment also improved. The company made a profit of more than 60,000 yuan at the end of the year, and finally settled the bank's arrears the following year.
