Author:森潘咨询,潘文富 Wenfu Pan

Translator:潘舒然 William

In the conventional investment model of manufacturers, there are certain industry experience requirements for the investment targets (specialty stores or distributors), such as the required years of business history in the industry, corresponding sales networks, operation systems, employee teams, experience, relevant resources, and so on. In a sense, manufacturers are somewhat idealistic in their approach to investment promotion, hoping to directly develop perfect customers that meet their own standards.

As a business, when interacting with upstream manufacturers in the early stages, it is inevitable to also self package and speak very well in all aspects, meeting the many standards of upstream manufacturers for perfect customers to the greatest extent.

When it comes to attracting investment, the high standards listed by upstream manufacturers and the self packaging of merchants are like a perfect match between talent and beauty. So why bother talking so much? Hurry up and sign a contract to start the process. Well, I won't say much about what will happen later.

In fact, as an upstream manufacturer, there is another development strategy to consider when it comes to investment promotion, which is to attract investors from the perspective of investment promotion. Customers are not expected to have much industry experience, and even completely blank paper is acceptable. As long as they have the investment ability, it is enough. In other aspects, the manufacturer can assist in handling.

Specifically, customers only need to possess these three points:

1. Basic business management and general operational management skills;

2. Funds;

3. Local social relations and related social resources.

Of course, running a company alone is not enough, and it also involves:

1. Complete registration of the company;

2. Establishment and management of backend management team and frontend business team;

3. Customer development and management system;

4. External operation system (products, brands, promotions);

5. Internal management system;

6. Financial and warehousing logistics system;

7. The company's development plan.

The establishment of these aspects can be solved through technical output. If the merchant does not have the relevant technical capabilities, upstream manufacturers can assist in solving the problem or directly carry out overall output.

In summary, as a business, the main focus is on providing money and social resources. In terms of how this business operates, upstream manufacturers can provide support on a technical level.

From this perspective, the scope of investment for manufacturers is much broader. After all, there are too many small and medium-sized investors who can currently raise hundreds of thousands or one or two million. They are observing different industries, analyzing development opportunities, and calculating whether it is suitable to enter. However, the biggest obstacle is the lack of relevant operational and management skills. If this problem can be solved, the determination and confidence to invest will need to be greatly improved.

In fact, in some industries, there are more and more investment promotion models targeting investors. Investors do not need to have operational experience in this industry, as long as they pay. The specific approach is: either the manufacturer will come to systematically teach you; Either the manufacturer directly dispatches operators to come over; Either the manufacturer starts operating directly in the early stage and transfers the company to investors after it is basically formed.

As an upstream manufacturer, establishing this investment attraction model for investors inevitably requires forcing oneself to establish a complete operational technology system and corresponding output guidance capabilities. Of course, there are more benefits:

1. Expanding investment targets exponentially, jumping from within the industry to a wider range of outside industries;

2. Exercise the technical research and development and output capabilities of upstream manufacturers, and be able to provide full system output to merchants;

3. For investors to join, they need to rely entirely on upstream manufacturers in terms of technology, and even position the manufacturers as superiors. This way, in the cooperation with manufacturers, the main focus is on their guidance, which naturally reduces a lot of friction and opposition;

4. This merchant was supported by the manufacturer, and even company registration was guided throughout the process. Even if the merchant makes any mistakes in the future and needs to interrupt cooperation, the deterrent effect on upstream manufacturers will be limited. Moreover, manufacturers can quickly develop new investors locally to replace them.