Talking about entrusted investment: the cooperation model of paying by project is gone

Of all the myths about business cooperation, the most widely influential is probably the phrase "pay for results."

Of course, advertising businesses on social platforms can pay for results. Because everything happens on its own platform, the process is highly controllable, the effect is natural and immediate; and the total cost is relatively fixed, as long as the advertising volume is large enough, the unit cost can be reduced indefinitely.

Entrusted investment services are different. The government must understand that the investment promotion work not only requires a lot of continuous investment in funds and manpower, but also has a long period of effectiveness. As a merchant service agency, although the channel resources are relatively rich, the professionalism and concentration are stronger, but without the support of the upfront cost, it is still difficult to carry out the work smoothly.

At present, more and more governments and parks have begun to accept the cooperation model of "upfront payment + intermediary incentives". They don't dwell too much on the "small bill", but see the true value of professional services through the appearance of price.

01

A detailed number of 3 models of investment cooperation

Generally speaking, there are three cooperation models between the government and investment promotion agencies: per-project payment, fixed service fee, upfront payment + intermediary incentive.

Consider the pros and cons of these three models of cooperation.

The first (pay-per-project) is the most popular cooperation model for Party A in various industries. The introduction of the project only gives money, no introduction and no loss, it seems to be a steady profit.

If it was a few years ago, paying by project was still relatively common, but now it is difficult to attract high-quality investment agencies.

Those who can accept pay-per-project in the market are either newly established small investment service companies or institutions that regard investment promotion as a side business.

Small investment agencies that have just been established may accept a per-project payment model for market expansion and gold plating considerations. However, if there is no achievement in a year, the government will save money on the books, but the development opportunities and wasted time will bring more losses.

This is also the case for institutions that regard investment promotion as a side business, signing a strategic cooperation agreement, posing for a few photos, and sending a report. It looks lively and lively, and the actual effect is a matter of opinion.

The second (fixed service fee) model is often involved in the overall entrusted operation of the park.

The government packages the investment, operation and enterprise services of the park as a whole to the investment promotion agencies, and finally pays the agreed proportion of the fee according to the assessment results. Not only does it save the cost of forming and cultivating a team, but it also frees up energy to focus on top-level design and corporate services.

But this model is not yet common. The operation and management of the park is still difficult to fully realize the market-oriented operation, and the operating cost is quite high, and many local governments do not have this budget.

The third (upfront payment + intermediary reward) has become the mainstream cooperation model. Tanigawa United Bank adopts this model.

The government determines the investment promotion task and pays a preliminary fee in advance. Investment promotion agencies carry out investment promotion activities according to the needs of the government, communicate with the intended enterprises, organize the intended enterprises to visit the park, and after the enterprises determine to settle in, the government will pay the intermediary reward according to the agreement.

Behind the successful landing of high-quality projects, a series of investment promotion actions are needed to provide support, including preliminary regional research, industrial research, publicity and promotion; medium-term system construction, project mining, screening and evaluation; and later docking, meeting and promotion.

The upfront cost ensures that the work of the investment promotion agency can be carried out smoothly, and the intermediary incentive provides the government with follow-up acceptance criteria, which takes into account the actual needs of both the investment agency and the government.

02

According to the investment target

Choose the right investment agency

The investment agencies on the market are uneven, although they are all under the banner of investment promotion, but the business focus is different. Finding a suitable investment agency is the key to achieving the investment target by entrusting investment promotion.

At present, local governments are exposed to institutions with investment promotion services, mainly as follows:

1. Investment service agencies. Investment promotion services are the main business, and the degree of specialization is very high. However, it is necessary to focus on the corresponding consideration of its successful settlement cases, one is to see whether it has real investment strength, and the other is to see whether it can be adapted to local conditions.

2. Local industry associations and chambers of commerce. The advantage is that it can directly contact the management of member companies, but it is easy to be geographically limited, and it can only be contacted to member companies, and the amount of projects is difficult to guarantee.

3. Five major banks and other professional intermediaries. It has accurate investment information and high customer trust, but it is difficult for economically underdeveloped regions to achieve effective cooperation.

4. Individuals with rich investment resources. The enthusiasm and professionalism are second only to the professional investment service agencies, but because it is a single-handed, the network is relatively limited, and the project volume is relatively limited.

5. Industry Research Consulting Organization. Good at industrial research and strategic analysis, but the actual investment strength is not strong, the report is very professional, but can not bring real project landing.

According to the above comparison of advantages and disadvantages, combined with the actual investment targets, the government and the park can select the general direction:

If you want to get as much corporate information as possible, these institutions can cooperate, and multiple channels are multiple sources of information.

However, if you want to really bring project settlement, or pay attention to the scale of project investment, it is best to choose to cooperate with professional investment service agencies such as Tanigawa United Bank, because only they really have the courage to write the project volume and actual investment into the contract.

03

Count less "small bills" and play more "big abacus"

Since "upfront payment + intermediary rewards" has become the mainstream, you may wish to try to see the huge value behind the price through the appearance.

After the project is completed and put into operation, it will not only continue to bring taxes and jobs, but also attract upstream and downstream enterprises to settle in and promote the construction of the industrial chain. Compared with the "big abacus" of economic development, as long as the "small bills" paid in the early stage are spent on the blade, there is no need to be overly entangled.

In the past 13 years, Tanigawa United Bank has successfully landed more than 5,800 projects, accumulatively attracting more than 100 billion yuan of investment, forming a unique investment promotion work system. As long as cooperation is reached, the task of attracting investment will be completed, and the industrial positioning will be the foundation to truly promote the landing of the project.

For example, in November 2021, Tanigawa United Bank helped Great Wall Motor's vehicle and parts production base project to settle in Linyi Economic Development Zone, Shandong Province, with an estimated annual output value of 20 billion yuan, and will also drive more than ten automobile industry supporting enterprises to settle in, which is of great significance to Linyi to accelerate the expansion of the automobile industry cluster and promote high-quality development.

Some people will say: The example of Great Wall Motors is too special, such projects are not often available, and not everyone has the ability to carry them.

Let's look at another example.

In December 2021, Tanigawa United Bank successfully promoted a smart furniture production base project with an investment of 500 million yuan to settle in Zhaohua District, Guangyuan City. The GDP of Guangyuan, a small city in northern Sichuan, has just exceeded 100 billion yuan, while Zhaohua District accounts for less than 10%. Promoting the settlement of such high-quality projects will be of great help to local economic and social development.

In the same year, Tanigawa United Bank and Bazhong Economic Development Zone reached a commissioned investment cooperation, less than 3 months to promote the landing of new electronic materials project. The high efficiency of investment promotion has amazed the cooperative units.

Dare to make a commitment to the results of investment promotion, but also did make achievements, which is inseparable from the tacit cooperation of multiple teams of Tanigawa United Bank.

Cooperative units generally only deal with our investment team, they may not imagine, behind the promotion of accurate docking between government and enterprises, there is Tanigawa Industry Research Institute to provide industrial consulting support; there are network operation teams and customer service teams continue to obtain corporate investment intentions; there are Tanigawa big data team to continuously iterate and optimize the digital platform for investment promotion, driving the improvement of investment efficiency...

At the beginning of 2020, the Ministry of Commerce of the People's Republic of China officially issued a notice to support all localities to actively carry out entrusted investment promotion and organize a variety of investment promotion activities.

As a trusted regional economic development operation service provider of the government, we sincerely hope that all localities can get rid of the entanglement of the payment model, pay more attention to the great value of entrusted investment promotion services, and integrate the investment promotion work into the big chess game of the party and the country.

As for which type of investment agency cooperation to choose in the end, it can only be said that the benevolent see the benevolent and the wise see the wise. However, if you really want to promote the settlement of the project through entrusting investment promotion, you must pay attention to:

Gone are the paid-for-project partnerships.