Where is it easier to make money? Feng Lun: Look at these three things
Cover image | "The Richest Man in Xihong City" stills
1
Ask:
Uncle Feng, I did some business with a few friends. I also made some money over the years. Since the local market was saturated, we wanted to go out of town, make some investments, and find new markets. If we go to a new city, how can we judge whether the place can be invested, and whether we can make money after investing?
Uncle Feng:
I am often asked, where should we invest, and how can I determine whether a place can be invested?
I said, we can look at three things.
The first look at the rules, specifically, is the lawyer market.
In cities with developed lawyer markets, the largest law firms can generate billions of dollars in revenue a year. Some barristers earn tens of millions of dollars a year, and if they say an hour, they earn 3,000 to 5,000 yuan. In some inland provinces, the lawyer market in one province is only billions.
Where the lawyer market is not developed, they often rely on food and collusion to do things. Well, outsiders have no advantage.
Where the lawyer market is developed, because the rules are more transparent, outsiders can do things, and they can not only find people and trust relationships. In case of a dispute, everyone can file a lawsuit.
The rules are transparent and it is convenient to come and go. When we do things all over the country, what we value the most is actually looking at this.
If there is no transparency in the rules, lawyers cannot solve problems here, but must trust the relationship to find leaders, and then the leaders of the enterprise will be exhausted.
In the past, our company had business in Hangzhou and Shanghai, and I rarely went there; But in the business of several cities in the Midwest, I am old and on business, and I can't push a single thing without seeing several leaders.
Second, look at the advertising market.
When you go to a city, if you see billboards on both sides of the highway are local propaganda slogans, souvenir ads, or even painter advertisements, then the place is definitely not open enough.
Why do painters advertise? Calligraphy and painting are actually a tool for interpersonal lubrication and a means of bribery. Where there are many advertisements for painters, it actually shows that the local demand is relatively strong.
If a city is full of advertisements from multinational companies and well-known Chinese enterprises, then it is definitely an open area, you know, this place, the business environment is good, products in and out, you just go.
Third, look at whether there are excellent local private enterprises that have existed for more than 20 years.
Yes, we can think that at least the local people's enterprises can do a good job, then we go, at least cooperate with these local excellent enterprises, we can live.
If not, local businesses will not live long, and it may be more difficult for outsiders to develop.
2
Ask:
So, what do you need to pay attention to when investing?
Uncle Feng:
What is going on in our minds when investing?
In a sense, everyone holds funds in their hands, capital or capital, or in layman's terms, this money, to invest, the mind is the same as raising children. There are also three things that I care about:
First, is this kid mine? If the child is mine, I will raise it well; If it is Lao Wang next door, not only can he not raise it well, but he also has to work against Lao Wang. This money is your own, then find a way to increase it and increase the value of the asset.
Second, let your children grow up quickly. Let children go to better schools, receive better education, and expect children to have good employment and good marriages in the future... Similarly, with an eye to growth, people also want to put wealth in a place where there is growth and growth.
Third, there must be good liquidity. For example, if the child works in a certain place, in case there is a local epidemic, or there is a war, make a phone call, ask the child to run quickly, hurry home, and the child will return smoothly, that is called mobility. If there is no airport, no railway, no road, you can't let your children go, because there is no security without mobility.
Therefore, when we take money to a place, we must ponder these three things in our hearts: is the property right certain, will my investment in this place be taken away, is there room for growth in the investment, and is it liquid?
I have seen some reports before, and some people are going to Southeast Asia or some turbulent places in Africa to do business with the intention of wealth and danger. It may indeed make a lot of money in a short period of time, but suddenly encounters a change, the money earned is robbed, and the wealth has nothing to do with him. This is that there is no certainty.
If we invest in one place, the asset can have these three (first, the property rights are clear; Second, continuous appreciation; Third, the transaction is very smooth and liquid), the psychological expectation will be very good, and at the same time, there will be a greater possibility of development.
Editor-in-Chief|Wang Tao Editor|Chen Runjiang Consultant|Wang Shuqi