Five Foundations For Small Enterprises To Grow Rapidly

In fact, enterprise "Listed" significance It is not "going public" in itself, but it is really big. So, what conditions should a small and medium-sized enterprise that sells its products domestically have in order to become larger? The author believes that it should be a "replicable model", and this model should have the following five elements.

Whether it comes from "channel money circle" or "listing money circle" Temptation Or for other purposes, there are quite a few small and medium-sized enterprise bosses who want to expand their enterprises by joining in the chain mode. In particular, the attention of capital and the lowered threshold for listing have given many enterprises the hope of rapid expansion of the capital market.

In fact, the meaning of "listing" of enterprises does not lie in "listing" itself, but in its real expansion. So, what conditions should a small and medium-sized enterprise that sells its products domestically have in order to become larger? The author believes that it should be a "replicable model", which should have the following five elements:

Project replicability

The birth of any enterprise is always based on one or more products (or services) as a project for operation. Whether an enterprise can expand, the choice of projects is very important. The project's replicability is the premise and foundation for developing franchisees. Therefore, projects used to develop franchise chains must have corresponding conditions. For example, is the technology of a product mature and leading? Does the brand used for marketing have a certain influence? Does the product or service have a relatively large consumer group? Does the capital investment required for joining make many people suffer? Is the profit margin of franchisees higher than that of peers? Is the product supply chain adequately guaranteed? Can the operational risk of franchisees be reduced to lower than that of peers? Is product sales not restricted by regional differences or can the manufacturer solve such differences? Can the manufacturer's funds meet the needs of network expansion without "circling money" from franchisees? If a project meets these nine conditions at the same time, the introduction of the investment promotion policy will be welcomed by the franchisees, so it is a replicable project. In addition, even in some traditional industries, some of its requirements may be lower, but the integration and innovation of industry resources is a problem that cannot be ignored. If it is a traditional industry, it should avoid traditional practices.

Single store replicability

There is a discount clothing chain operation enterprise in Fuzhou, which has not improved for more than two years. The enterprise has set up an image store of nearly 1000 square meters in the busy section of Fuzhou. The store has everything from men's clothing to women's clothing, from children's clothing to elderly clothing, so people dare not doubt the financial strength of the enterprise. However, because this is a single store model that cannot be copied, it is difficult for franchisees to respond. Just imagine how many franchisees can afford to open a clothing store of nearly 1000 square meters? Moreover, even if the headquarters does not require franchisees to open large stores of the same size and reduce the area to 30 square meters or less, how many products can customers of a certain age group choose when all clothes in the store are on sale? In addition, although the enterprise agreed that the franchisee could only sell men's clothing or women's clothing when opening a store, the franchisee could not feel the appearance and operating conditions of the store, and there would be no single store model.

Another small business operating discount clothing in Fuzhou, they only choose to operate clothing for middle-aged women. Their image store ranges from more than 50 square meters to nearly 100 square meters. The image store gives a very professional impression. Middle aged women feel that they can buy a lot of satisfactory clothing in that store, and the business is very hot. At the same time, it is easy for the franchisees to understand the display of the image stores during their early inspection, see the popularity of the image store business, and it is easy to imagine that the store they are going to open is the same as the image store. Therefore, the image store of this enterprise is replicable. Under the guidance of the author, the enterprise has expanded from the original six stores to more than 100 franchise stores in half a year, It has become the leader of Fujian discount clothing industry.

Regional replicability

"Regional replicability" is a problem that is often ignored by enterprises. The so-called "regional replicability" refers to the mature market model created by chain operators, that is, to form a network intensive region, which is enough to make the enterprise brand have a strong influence.

Many small and medium-sized enterprises are eager to expand, releasing massive investment promotion information through various media, sending huge investment promotion teams to travel around, and the franchisees will not refuse to come. Even so, there are still too many bad news returned by the investment promotion personnel, and it is difficult to see the effect after several twists and turns. This phenomenon is very common in chain enterprises.

Many garment enterprises engaged in the domestic market in Fuzhou have recruited franchisees and agents all over the country. These manufacturers, known as the "national chain", have mostly achieved a flat market share, and their sales performance is volatile and inventory pressure is high. The author visited several garment factories and found that the so-called "national chain" only had provincial or municipal agents in several provinces across the country, and the manufacturers gave the agents supply prices according to different levels. The number of franchisees or dealers under the agents had nothing to do with the manufacturers' performance. What's more fatal is that there are few franchisees or dealers under the agents in the provinces where the manufacturer's products are located, and there is no intensive marketing network, so there is no regional market for replication. Such network layout cannot make products have enough penetration in the market, which is undoubtedly a waste of market resources for manufacturers, and it is impossible to take this opportunity to carry out further expansion.

The above mentioned clothing discount enterprise in Fuzhou has developed more than 40 chain stores in the urban area of Fuzhou under the guidance of the author. The network intensive layout has brought about a miracle of development, that is, many franchisees have come to Fuzhou. The author also suggests that they should have a choice. First, select individual regions outside the headquarters, and also densely arrange the channel network, so that each city above the county level can complete the investment business before developing the next region. In this way, the enterprise has created a strong influence in the market, and franchisees from other provinces have also asked to join. Facts have proved that "regional replicability" is a key link in the marketing of chain enterprises, and also an important prerequisite for enterprises to achieve rapid growth.

Replication of sales

"Sales replicability" refers to the replicability of single store sales methods of franchise stores. Many franchisees come from non professionals who have no industry sales experience, or although they are in the industry, they may not have good sales methods, so they need guidance and help from the headquarters. Most chain operators have a set of Sales Manual for franchisees to refer to, as well as lectures and coaching from lecturers and market supervisors. However, in reality, the sales methods of many enterprises are not replicable, which is usually manifested in the fact that except for some market supervisors in the headquarters who can be called "sales experts", the franchisees are difficult to achieve good sales performance, and it is useless for the market supervisors to visit several times.

The root of this problem is that the sales methods of enterprises overemphasize "skills". The Sales Manual of some enterprises does not hesitate to detail the methods to how the clerks talk with customers. The clerks constantly collect new questions from customers and let the market supervisors study how to answer them. This sales method is constantly changing due to the ever-changing questions and queries of customers, It makes the trained shop assistants at a loss, so it is not replicable. The correct sales method should be to train the store staff to understand the brand, enterprise and product in detail, extract the advantages of the brand and product, always play a role in guiding customers to understand the product, effectively stimulate customers' interest in the product, without letting customers influence the store staff's thinking; Train the shop staff to accurately grasp the customer's concerns and pay close attention to the customer's interests, so as to effectively facilitate the customer to make a purchase decision immediately. This sales method has become a replicable sales model by guiding consumers' thinking with ideas and simplifying the skills of shop assistants.

Replicatability of management

The methods of managing one store are different from those of managing multiple stores, and the methods of managing one region and multiple regions are also different. The most common is that small enterprises are not disorderly in the early stage, but disorderly after a little development and expansion. Many chain enterprises rely on people management, and the lack of corresponding systems or systems can not guarantee the interests of franchisees. The management of foreign franchisees by manufacturers seems unreachable, and they can not monopolize, or even sell counterfeit goods, and there are a large number of franchisees who have no scruples to infringe on the interests of manufacturers, The reason is that the regional management of the manufacturer is not replicable.

The franchisees of a clothing enterprise are scattered all over the country, with a number of hundreds. Except for the franchisees in the counties and cities around the headquarters, the purchase volume of the franchisees in other regions is very small, and the information fed back to the manufacturer by the market supervisor is almost "products are difficult to sell". By chance, the boss of the enterprise saw several franchise stores, where most of the products were displayed by others. How could such franchise stores make good sales performance for the headquarters? One of the franchisees told the boss that the reason why they did not or did not buy the goods from the headquarters was that the distance from the headquarters was too far and the cost of door-to-door purchase was too high, while the goods that were purchased and returned through telephone communication were always wrong, and the headquarters' self delivery could not meet the needs of local consumers. The incoming goods were either sold little or could not be sold at all, Franchisees have to find the nearest wholesale market to purchase goods. Can the manufacturer solve the problem when it finds it? The answer is still no. Because the franchisees are scattered all over the country, the management costs of the regional managers dispatched by the manufacturer are obviously too high, the warehouse management personnel know little about the external market, the clothing habits of consumers in different regions are different, and the management around the headquarters is obviously not feasible. To solve the problem fundamentally, the manufacturer's marketing network layout has to be renewed.

From the above five elements, SMEs should choose seemingly small projects if they want to grow rapidly, but it must be easy to copy projects, from single store to a regional market, and then copy the regional market indefinitely. It is not difficult for a small enterprise to rapidly expand its network, but the difficulty is that the network can survive after expansion. Therefore, it is better not to focus on making money from the franchised business circle, but to support the channel to make money.