Give an example!
The failure of Shi Yuzhu, the "brain gold" giant group, was strikingly similar to the failure of Delong Group and Sanjiu Group later: all of them were due to the break of capital chain, which led to the failure of enterprise management. It can be seen that in the operation of enterprises, the failure caused by the break of capital chain accounts for a large proportion.
What is this mysterious capital chain that makes those entrepreneurs get such a result? The so-called capital chain is the cycle of cash-assets-cash (proliferation), which is the process of enterprise management. If an enterprise wants to maintain its operation, it must maintain the benign and continuous operation of this cycle.
As the carrier of economic activities, enterprises aim at maximizing profits, but often when they reach a certain scale, they will fall into a strange circle: that is, the efficiency will decrease and the capital turnover will slow down, which will seriously affect the normal operation of enterprises.
In the early stage of development, every enterprise will have such and such problems in the capital chain, but compared with other problems existing in the enterprise, it has little relationship in the enterprise, and managers have not paid attention to this problem; When the enterprise develops to a certain extent (Jiangsu and Zhejiang regions generally take 300 million output value as the dividing line), the problem will be exposed. On the surface, the break of some capital chains leads to the closure of enterprises, which is a direct reflection of the problem. Its core is the lack of ability to manage financial risks and control cash flow.
For example, in just a few years, the output value of an enterprise has risen from several million to 1 billion, and the profit has developed from very low to nearly 100 million. At this time, the leaders of this enterprise thought of diversification, on the one hand, to share the risk of product line, on the other hand, to promote the development of the enterprise. In terms of projects, one is not enough, but one, four and five projects are added together, so as to reach the top 500 in China. Later, one died (of course, there were many reasons, which could not be said to be the manager's fault), which consumed a lot of working capital of the original project. Fundamentally speaking, the correlation of each project's funds is very low, and the horizontal possession of funds needs a considerable level of management ability to control. Now the output value of this enterprise has reached tens of billions, but the loss has reached several hundred million. Fortunately, listed companies are short of money, so they are profitable when they go public and continue to work hard.
There is another enterprise, whose product output value has reached more than one billion, and its profit has reached several hundred million. It is also diversified. Fortunately, it is rich, leaving several projects that are neither dead nor alive. From the perspective of capital chain, this enterprise is not a problem, because the products owned by the family have high profits and a certain family background, and the loss of several hundred million will not affect the development of this enterprise at present, and the capital chain will not be in trouble. However, in the fierce market competition, there are many dangers and uncertainties, which cannot guarantee to find a balance for a long time to come.
There is also a company that is said to be one of the top 500 companies in the world, which has engaged in many projects, with successes and failures, and some profits on its books; This company is so arrogant that it has set up a manufacturing factory in America. Some people say, "It's strange not to lose money. According to normal theoretical accounting, that enterprise has gone bankrupt n times, and its liabilities are several times more than its capital. " Fortunately, the country is the leader of the enterprise, and extraordinary measures are taken to deal with the problem of capital chain: 1, and all the purchases under the company are merged into one department to save procurement costs (and also generate fictitious profits); 2. unify the sales of all products to the department to reduce the logistics cost (using abnormal time difference to make profits); 3. After realizing the assets in hand and obtaining liquidity through investment, continue to invest in new projects in China and increase the proportion of financial companies. (greatly overestimate the assets of the goodwill part) 4. Find more financing resources through overseas IPOs to supplement the gap in the capital chain. Furthermore, if the above problems are not solved, the government will continue to use loans to solve the capital chain problem.
Capital chain is the blood of enterprises. Almost all enterprises are slightly larger, which will violate the fundamentals of enterprise operation efficiency. Therefore, how to ensure the continuous development of the capital chain can be said to be the foundation of enterprise operation.
First of all, there must be security. In addition to ensuring sufficient capital surplus in the main chain, there must be considerable solvency (including the use of extreme measures such as the government and banks), and there must be value-added after each cycle to achieve the purpose of enterprise management. Secondly, the smooth capital chain is also the key to the enterprise. In China, due to various reasons, the resistance to inventory and accounts receivable is particularly great. On the one hand, it reduces the capital turnover rate of enterprises, on the other hand, there will be a lot of corruption. Finally, due to the development of enterprises, operators are prone to confusion. Seeing that the enterprise is big and successful, the crisis has also increased relatively, especially the harm of the capital chain has become more and more serious.
In addition, it is worth noting that when the core business of the enterprise tends to mature or turns to other fields, the operational risk will decrease, and correspondingly, the financial risk dominated by the capital chain will increase accordingly.