Chapter 88: The Core Competitiveness of Tongxin Internet Cafe
As they were chatting, Li Yiwen remembered something and said, "Oh, by the way, in the blink of an eye, the Tongxin Internet Cafe chain has been open for a whole month, and the business of the three Internet cafes is booming. Since you are here, let's take a look at how much money we made this month. Wangzai, stop playing games and come over too."
Li Quanwang beside him said without turning his head: "Wait a minute, I'll finish this game."
After more than ten minutes, Li Quanwang finished playing a game, ran to the bar and asked, "What's the matter?"
Li Yiwen said: "Tongxin Internet Cafe's main store has been open for a month now. We calculated the revenue and distributed the dividends."
Lu Yiming opened the backstage, and everyone's eyes were focused on the screen.
"One store, six hundred thousand!"
"In just one month, the cash flow is 600,000. This is incredible."
Both Li Quanwang and Li Yiwen couldn't help but exclaim in surprise.
Although the two are now multi-millionaires, they are still shocked by this achievement.
"The second store isn't bad either, more than 300,000!"
"It's only been a few days since the three stores opened, and they've already made over 100,000."
"The fourth store has just been renovated and will open next month. In addition, several universities nearby are just starting their term, so business will probably be even better."
"Doesn't that mean that the Internet cafe can continue to earn over a million this month? Is running an Internet cafe so profitable?" Li Quanwang felt that his common sense had been refreshed.
Lu Yiming, who had just fleeced Maozi very hard, was completely exhausted.
"It's only about one million, it's not enough at all."
Li Yiwen didn't know whether to laugh or cry, and said, "Cousin, I think you are too arrogant. A business with a monthly turnover of over one million yuan, do you think it's not good enough? If others hear you say this, you will easily get beaten, do you know that?"
There are many factory owners in China now, especially in the Pearl River Delta region, where factories are everywhere and various types of processing-on-commissioned-materials trade are booming.
Li Yiwen used to work in a trading company. As time went by, he got to know quite a few textile factory owners who specialized in export trade. He occasionally worked part-time helping them with accounting to earn some extra money, so he was quite familiar with the profit situation of these industrial companies.
One of them has been in operation for more than five years and has a good reputation in the industry. Its sales have reached more than 80 million yuan and its gross profit has exceeded 6 million yuan.
Generally speaking, the average profit margin of the textile industry is around 10 percent, but last year, due to the impact of the Asian financial crisis, the other company's gross profit margin fell below 8 percent, which is a rare low.
However, this gross profit of more than 6 million yuan needs to pay for local taxes, sales expenses, logistics expenses, management expenses, bank interest and other cost expenses.
After deducting various expenses and workers' wages, the total profit was only a little over 400,000 yuan.
After paying corporate income tax, the net profit was only more than 300,000!
This kind of income is so sad that it makes people cry when they see it!
The overall economic environment is not good now. Many bosses in the real economy have said that business is difficult. Many people appear to be doing well on the surface, but in fact they are operating entirely on debt. Only Lu Yiming is still complaining about the monthly profit of more than one million.
Nowadays, opening an Internet cafe means basically making money without doing anything, unlike those who make clothes, shoes and hats, where the internal competition is becoming more and more serious.
Not only did they have no pricing power when dealing with foreign companies, they even had to bargain with each other for orders. Li Yiwen was now secretly thanking himself that he had made the right decision by clinging to his cousin. His former colleagues were still bald, but he had basically achieved financial freedom.
However, having said that, even though they are now worth tens of millions, part of the principal is the recharge from previous users, which strictly speaking does not count as the wealth of the three.
Fortunately, Internet cafes are now developing well and achieving gratifying results. Moreover, many users who have recharged before simply cannot resist the temptation of the Internet and rush to Internet cafes to consume, which invisibly saves Tongxin Internet Cafe a lot of redemption costs.
After checking the accounts, Lu Yiming said to Li Yiwen, "School will start tomorrow. Wangzai and I will go to school. I'll leave the Internet cafe business to you."
There were originally three brothers, but now two of them are gone. Li Yiwen couldn't help but complain: "I am really destined to be a hard worker. I am the second largest shareholder , but I am the only one working."
Li Quanwang said: "Then I will come over to help you after school."
Lu Yiming smiled and said, "It's called the capable get more work, and you don't have to follow me everywhere, just focus on the financial part. I'll take some time to improve the Internet cafe's system, and in the future I can use the system backend for remote monitoring, and then I can check the accounts and patrol regularly."
"Isn't this bad? What if the machine breaks down?"
People nowadays don’t completely trust machines, and always feel they can’t be at ease unless they personally watch over them.
In fact, for Lu Yiming, the probability of machine errors is much lower than that of human errors, and it can be continuously improved.
The most important thing is that if large-scale regular work is done without the help of machines and relying on humans, the efficiency is simply unbearable.
Lu Yiming patted Li Yiwen on the shoulder and said with a smile: "Cousin, it's almost the 21st century, you have to believe in technology. Besides, we have only opened three Internet cafes so far, and we will open three more soon. In the future the number of stores will increase. You can't always keep an eye on them, right? Even if you have three heads and six arms, you can't hide it."
Li Yiwen thought about it and nodded: "What you said makes sense."
Lu Yiming continued, "In my opinion, you should formulate a good management system for the company, train new people, and then promote outstanding employees to be store managers. In the future, you only need to appoint store managers. If something goes wrong, you can deal with the store managers directly. It's ridiculous for us shareholders to always do the work ourselves. Being a boss is more tiring than being an employee. Who is working for whom?"
After hearing this, Li Yiwen immediately looked at Lu Yiming with new eyes: "I didn't expect you know so much."
Lu Yiming smiled and said, "Even if you haven't eaten pork, you've seen pigs run."
To put it bluntly, Internet cafes are actually similar to convenience stores. All products belong to the company and the boss, and the employees only provide services. Moreover, compared with convenience stores, Internet cafes are easier to manage. There is no need to frequently calculate the inventory of various products. All you need to do is to train and manage the staff. Everything else can be handed over to the Internet cafe management system.
As an aside, the Internet cafe management system developed by Lu Yiming himself is definitely the core competitiveness of Tongxin Internet Cafe.
With the rise of the Internet in China, there are more and more Internet cafes, but people basically still keep a small notebook to record their expenses. Internet cafe staff have to watch people when they log on and off the computer and urge them to log off. If you are not careful, you may pay for an hour but end up using the computer for three or four hours, or even just run away without paying. It is a common occurrence.
However, the software developed by Lu Yiming can control Internet time and automatically lock the screen at a certain time. For the Internet cafe industry, it is definitely a groundbreaking "high-tech".
