Reborn Technology Upstart

"Mr. Ye, this is inappropriate. It is no problem for us to transform our domestic business into a non-profit business, but if our foreign business is also like this, it is a bit unreasonable." Yu Minhong said.

At present, the business that makes money for New Oriental Education Group is the international business. The domestic business is actually not profitable, and there is a high probability that it will not make a lot of money in the future, because the tone is set like this.

Facing Yu Minhong's statement, although the other people in the room didn't care about it, they still nodded in agreement. It is right to support education, but there must be a limit.

Even if it is to donate the money earned from profitable business to non-profit business, at least you can still have the initiative, and your reputation will be much better.

If all of them are included, the society will not appreciate Ye Zishu's contribution, and will take it for granted. Even seeing that New Oriental Education Group earns so much money every year, they will think that it is exploited from them.

Seeing that everyone agreed with Yu Minhong's statement, Ye Zishu thought carefully for a moment and said, "Then separate the smart education platform and set up a separate digital education subsidiary.

For the rest of the offline business, an education subsidiary will be established, and the company will be managed as a non-profit, with independent financial accounting and relatively independent management. "

He thought about it carefully, and this is indeed the reason. Even if their non-profit business suffers losses, it is much better to allocate funds from the profitable business than to go non-profit together now.

Don’t think that non-profit organizations don’t need to pay taxes. They also need to pay taxes. It won’t save much tax and fees because of this. It’s better to separate them.

Hearing Ye Zishu's arrangement, Yu Minhong secretly breathed a sigh of relief. He did not object to the boss's support for education. In fact, he himself hoped so, but it's better to distinguish things clearly, especially things involving interests.

The reason why Leaf Book wants to transform it into a non-profit organization is to bring these seemingly private basic education schools into the national unified financial support system.

This is also the trend of the future, if you don't do it now, you will do it in the future, after all, this is what happened in the previous life, it's better to do it earlier, not to mention that you can't make much money here, and he doesn't bother to make this money.

"Actually, I think that the business of offline vocational education can also be extracted, not to say how much money we want to make from it, but whether it is a non-profit organization or not, it doesn't make much difference.

At present, the state may subsidize non-profit basic education institutions, but it will definitely not subsidize non-profit vocational education institutions in the short term.

Fees have to be paid mainly by students and businesses,

In this case, I don't think it is necessary to put a cover on yourself to restrain yourself.

And now our vocational education schools are very large and involve many regions. If we apply for a non-profit organization as a whole, the local finance will definitely not pay us any fees. Everyone understands the reason.

If each vocational school applies to a non-profit organization as a separate individual, although some schools may receive financial support from the local government, more schools may not be able to complete self-hematopoiesis.

At present, the operation of most schools requires money from our headquarters to support the operation. It is difficult to make a big change in the short term. If they are independent of each other, there will be certain obstacles to financial flow. " Yu Minhong continued.

Ye Zishu didn't expect that there would be so many problems. It seemed that his decision just now was a bit hasty, so he could only follow the good advice and said, "Then do as you said."

After saying this, Ye Zishu suddenly thought of those capitals who are desperately involved in the domestic education field to make money. If there are domestic people as the leading party, international capital will rush in frantically.

As an enterprise that really wants to do practical things, New Oriental Education Group may be at a disadvantage in the face of fierce market price competition in the future if it has no capital reserves.

Although at that time he had money in his hand, he would not be desperate for help, but he still hoped that New Oriental Education Group could face this situation alone.

So he said, "I don't take a penny from your for-profit or non-profit business, and there are two main uses for this money.

The first part is used to continue to support domestic education, but in terms of education fees, you should not deliberately lower the price, just follow the market as you go.

If the burden of family education is too heavy due to capital reasons, you can properly maintain the normal order of the market and bring down unreasonable prices.

The second part is used for reserves and value-added. Don’t think that the existence of banks is a waste. In fact, the competition you will face in the future is not small.

With the development of the national economy, people who have money in their hands are more willing to invest in the education of future generations. At that time, both domestic capital and international capital will pour into the education field to seek gold.

The way capital works is to use low-price strategies to compete in the early stage with deep pockets, and at the same time use high prices to obtain high-quality teachers, and directly beat competitors to the ground.

When the competitors are eliminated and there are high-quality teachers in hand, the price can be raised justifiably. However, due to the lack of high-quality teachers in the market, there are no other strong competitors, so parents can only obediently pay.

If you don’t have enough cash reserves, no matter how big your business is, no matter how many students you have, you will still be defeated in the face of crazy capital, greed for cheap and profit-seeking human nature.

I think you need to reserve corresponding funds according to your own business scale. Once there is a change in the market, you can directly start a war with capital, but you can beat the other party to the ground and make them lose everything.

Even if you will face huge losses, at least you can keep the existing achievements. The lost funds should be taken advantage of by the common people. Anyway, the money will always be spent, but you don’t dare to spend it randomly. It’s a one-off in times of crisis. It's just spent. "

Yu Minhong really didn't think about this. He was a teacher in school before, and although he came out to train teachers later, he had no close contact with capital, and he knew little about capital's greed and methods.

Now that the boss said so, he kept this matter in his heart, but he didn't know how much money to reserve, so he asked, "How much money is appropriate to reserve?"

"This can't be measured. It stands to reason that the more the better, but too much is definitely not a good thing, so I will set a standard for the time being.

Just reserve funds for each student according to the per capita annual disposable income. For example, if the per capita disposable income is 2,000 yuan and the number of students under your banner is 10 million, then at least 20 billion yuan should be reserved. "Leaf Book said.

He believes that such a method of calculating reserves is more reasonable. After all, capital investment needs to be harvested for the future, and harvesting is not mindless harvesting.

It is necessary to calculate the income level of residents and the number of students. Otherwise, they will not be able to complete the harvest if the price is too high. If the initial cost is huge, and the later period cannot make money, and the loss continues, bankruptcy and exit are inevitable.

It's just that Yu Minhong was taken aback. It seems that there is no need to reserve much money now, but after the people's income is raised in the future, the scale of the reserved funds will be very large.

He has some understanding of the current economic situation. According to the current development speed, the per capita annual disposable income may reach more than 30,000 yuan in less than 10 years.

If New Oriental Education Group is really successful, it is not impossible to absorb 20 to 30 million students, then the scale of funds that need to be reserved will be as high as trillions of yuan.

Do you need to reserve so much money? Yu Minhong was a little skeptical about this, if it was placed in a bank, it would definitely not be a good investment method.

"Is it necessary to reserve so much?" Yu Minhong asked.

"I think it is necessary. If you feel that the value of such a large reserve of funds will depreciate, then you can use it to buy stable investments such as national bonds and local bonds, and do not invest in other financial markets that you are not familiar with.

In fact, I have just established a tidal investment company under my banner. If you want to have higher returns, you can take some of the money to invest.

Although this investment company was opened by me and the income is very good, I hope you don't trust it completely. Any investment will have certain risks. The proportion of funds invested in high-risk areas should not exceed 20%.

It is inevitable to lose some money in investment. After all, there has never been a business that can make a profit without losing money, but we must ensure that even if all the money is lost, it will not affect the normal operation of the main business.

Because this is not only a matter of the company itself, but it will also cause social turmoil, especially for a very large company like yours, and the turmoil caused is even more unbearable.

That's why I don't use the funds of your companies for investment. I would rather put them in the bank to earn interest. It's not that I don't understand financial investment.

Rather, I understand exactly what we are going to do. The fundamental purpose of our establishment of such a huge industry is not to make money. Making money is just a means.

Your other companies should also pay attention to the problem of corporate capital reserves, and reserve funds according to the worst situation. Once the international market undergoes drastic changes, you can also calmly deal with it.

However, the reserve funds can be allocated according to the timetable, and certainly cannot be fully reserved all at once, but I think you should prepare the reserve funds in place within 3 years. "Leaf Book said.

Ye Zishu didn't say what standard to reserve, but the algorithm he gave New Oriental Education Group earlier should be able to give some inspiration to these companies.

Now that we are talking about reserves, these companies will also have a lot of reserve funds to invest in the future. If the amount is too large, most of them may still be used to buy government bonds.

However, a small number of them will still buy financial products with higher returns. They may not trust the products of other financial institutions, but they are very interested in the boss's investment company.