Cheng Yongjun actually didn't quite understand why Tan Jincheng needed a loan.
In his opinion, Jinpeng Trade is an asset-light foreign trade company.
The amount of money it holds is not the key; the key is whether it has stable client sources.
As long as there are stable client sources, Jinpeng Trade's cash flow will remain healthy, and there would be no need for a loan at all.
And according to the bank staff he contacted, a large amount of cash flow was lying in Jinpeng Trade's account, and judging by the company's monthly tax payments, its business volume was also very stable, with absolutely no need for a loan.
What kind of clients do banks like? Banks' favorite thing is to lend money to people who don't lack it.
If the loan were applied for under the name of Jinpeng Trade Co., Ltd., the bank would be very welcoming.
It's just that Xiao Tan wants to apply for a loan in his personal name, which would involve some procedural troubles, but the problem isn't big.
However, what does Xiao Tan want to do with the loan?
Open another trade company independently?
But given Xiao Tan's current net worth, even if he were to open another trade company independently, there would be absolutely no need for a loan.
Someone who doesn't lack money borrowing from a bank; it can only mean he has bigger ambitions.
Cheng Yongjun looked thoughtfully at Tan Jincheng, connecting it with the fact that the young man had recently been inquiring about setting up and managing factories.
Could it be that he wants to do this?
If he wants to set up a factory, then a loan would indeed be necessary.
Factories require a lot of money.
A small production enterprise of about a hundred people generally has a four-layer or three-layer management structure: employees-managers-production directors-general managers.
One layer between the manager and the production director can be removed, and the general manager can also be held by the founder themselves, which is how his own factory operates.
But generally speaking, the salary of the upper level is between 1.5, 2, or 3 times that of the lower level.
Calculating with 100 employees, at least one manager and one workshop director are needed.
If the assembly line is divided into five groups, then five team leaders are also required, with 93 remaining frontline employees.
On average, each team leader manages around 20 people.
While ensuring efficiency, there's no need to recruit talent with management experience, making recruitment relatively easy, and internal promotion of employees is also an option.
Cheng Yongjun's factory operates this way, with one team leader supervising a dozen or two dozen subordinates, and the efficiency is quite good.
Employee monthly wages are calculated at 2000 yuan, team leaders at 3000 yuan, workshop directors at 5000 yuan, and managers would be around 7500 to 8000 yuan.
This part alone, the monthly wage expenditure would be 213,500 yuan.
Over a year, if year-end bonuses are included, the expenditure on wages would be around 2.4 million yuan.
This doesn't include finance and cashiers; setting up a factory definitely requires full-time finance and cashiers.
It can't be like Xiao Tan now, just hiring a part-timer to handle things.
In addition, there are factory rent, daily expenses, etc.
For a factory of about a hundred people, the minimum monthly expenditure would have to be at least 300,000 yuan, and that's with careful budgeting.
The items listed above are merely employee wages and the daily expenses to maintain the factory.
They do not include the cash flow needed daily for purchasing equipment, raw materials, etc.
These are also not small figures.
Not everyone has the courage to start a factory.
If Xiao Tan truly wants to take out a loan to open a factory, then Cheng Yongjun would truly admire his courage.
Cheng Yongjun didn't know what a supply chain was, nor did he understand these things, but he knew that although starting a factory carries great risks, the profits are also very substantial.
Integrating production and sales, and capturing the profits that would otherwise go to the OEM factories, is the foundation for growing bigger and stronger.
A shell trade company can be easily controlled by OEM factories of a certain scale.
Tan Jincheng indeed has plans to set up a factory, but not the kind of garment factory Cheng Yongjun was thinking of.
For his second venture, Tan Jincheng wants to do something different, and using a loan in his personal name is also for this reason.
Starting this year, he plans to establish his own factory, to gain profits while also accumulating designs and patents, etc.
Looking at it from a future perspective, almost every company's ultimate dream is to manufacture cars!
This is true for traditional automakers, mobile phone manufacturers, and capital giants alike.
Perhaps, under his own initiative, the birth of a car is a man's ultimate dream, and Tan Jincheng is no exception.
However, the opportunities for traditional cars are almost gone now; Tan Jincheng understood that, entering the market at this time, even with strong capital backing, the probability of success is quite small, almost no different from throwing money away.
In 2005, the most prominent domestic traditional car brand was undoubtedly Qirui.
Its independently produced Qirui QQ in 2003 opened up the domestic microcar market, and this year, its monthly sales are already nearly ten thousand units, enjoying immense popularity.
In addition, there are Panda, Benben, and the upcoming F3, all of which have been sought after by the market.
Competing head-on with these companies, Tan Jincheng has no chance of winning.
The path of traditional cars has already shut Tan Jincheng out, so he can only take the path of new energy electric vehicles.
Starting now to accumulate electric vehicle technology, and waiting for the opportunity to skyrocket, is Tan Jincheng's best option at the moment.
As for how to enter the electric vehicle industry, two-wheeled electric vehicles, commonly known as e-bikes or electric scooters, are the best choice.
The three most critical components of a two-wheeled electric vehicle are: battery, motor, and controller.
At the end of last year and the beginning of this year, Tan Jincheng had seen some electric vehicles in his hometown that were modified bicycles fitted with motors.
The range was generally around ten to twenty kilometers, and the price was around 500 yuan.
Out of curiosity, Tan Jincheng even bought one to disassemble.
Tan Jincheng naturally didn't understand professional knowledge, but men always know a little about mechanical things.
A bicycle, after crude modification, and lacking any aesthetic appeal, could sell for five or six hundred yuan.
And it sold quite well, which fully demonstrates the demand for transportation tools among the grassroots population.
Although there are quite a few legitimate electric vehicle brands currently, none have established market dominance.
It is now 2005, and the price of an electric bicycle is around two to three thousand yuan, which hasn't changed much from the price eighteen years later.
This price is the average person's two months' salary today.
Spending two months' salary to buy an electric bicycle is still relatively luxurious.
It's not an exaggeration to say that the exorbitant profits in the electric bicycle market are just beginning.
Eighteen years later, electric bicycles with better product quality and more appealing designs can sell for 3000 yuan.
Even now, they also cost 3000 yuan, indicating that current profits are quite considerable.
If the cost of an electric bicycle can be controlled within 800 yuan, and set a selling price of 1999 yuan, it shouldn't be difficult to open up the market, right?
Most importantly, producing electric bicycles does not require qualification approval like producing cars.
The entire factory and the entire production line can start operating.
Using the profits from electric bicycles to support the factory, accumulate battery technology, and prepare for future entry into the new energy electric vehicle industry, is Tan Jincheng's best choice right now.
As for electronic product import and export companies, that's just a means of making money.
Just like investing in stocks, one is a long-term investment, and the other is a short-term investment, with different implications.
(End of Chapter)
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