Chapter 35 How to stand up from the trough in the third quarter?

Next, I will talk about how to stand up in the trough.Just to combine what I just said.The first one is not to be discouraged. Don’t be discouraged because of the trough. If you are discouraged, you may not have much hope.In fact, if you look at the trough dialectically, you will not be discouraged. It has a negative side, but it has more positive sides.First of all don't be discouraged. The second is to give up decisively, because when you fall into a trough, it is often not just an industry or a product. At this time, I think what should be given up must be given up.Because of the difficulties, many of them are caused by multiple industries, so when it is time to give up, we must give up decisively.

Third, when you start again, you must choose the projects you are most familiar with and can make use of your strengths. Do not choose those projects that you are not familiar with, especially in that industry, where you have not paid tuition fees. Only after you pay the tuition fee can you have a better understanding of this industry, so you must choose the industry you are most familiar with. The fourth is focus.In our own words, it is called focus, focus, and focus. You can only work on one project at this time, and this project, from scientific research and development to sales and production, you can't put your efforts equally in all fields. In this, you have to focus on a certain point, and then use your human, financial resources, Material resources are all focused on the most competitive point.

The last one is to be good at summarizing in a timely manner when you are at a low point, especially formulating a set of rules and regulations, because when you recover, the rules and regulations you formulate are often unreasonable, so formulate rules and regulations at the lowest point system is the most reasonable. The set of management systems used by our Giants and Jiante is actually a set of systems formulated by us in early 1998.It has not changed now, maybe the sentence has changed, it is thicker than before, but the guiding ideology has not changed.So looking back now, we think our current management is quite good.There are a lot of issues, but overall, it's pretty good.

In fact, what work we did, we didn't actually do much work, and our rules and regulations were formulated very quickly.It was formulated in a few days, why was it formulated so quickly, and practice proved to be relatively good? Because of those lessons when you fail, it is unforgettable.When you formulate new rules and regulations, you just need to avoid them. For example, when the giant was at its peak, I just said that there were 300 million bad debts, of which 200 million were bad due to poor management, and 100 million were due to accidents. Then why is it bad? Because we sell goods on credit, so when we are in a downturn, we make a plan. No matter how small I am, all my products are settled in cash. If you don’t do it, you don’t do it.It was very difficult at the beginning, and everyone said it couldn't be done, but we gritted our teeth and made it through, and finally made it, so now all the companies that do business with us are cash settlements.

Of course, we don’t owe other people’s money. We will also pay you in cash for all the suppliers’ payments, and we will also pay you in cash for advertising fees. We will also pay you, but we don’t owe others. Don't owe me either. In fact, once it enters a virtuous circle, everyone knows that this is what your company does, and you want to do business with me.So now Melatonin has accumulated billions in sales, but there is no bad debt.This is an aspect of management. The other is to motivate the enthusiasm of cadres.One is that we directly quantify many things, and the other is about authorization.

When Zhuhai Giant Group was brilliant, our management system seemed to be very scientific and rigorous.At that time, PhDs in management and many MBAs were invited to help formulate it.It is true that there are literally no loopholes, but it is not good to manage and not practical.The set taken from the textbook doesn't work.For example, when we were at the headquarters, we had branch offices all over the country. The branch office said that I want to invite someone to dinner tonight, but if you spend more than 500 yuan, you must first report to the headquarters. After the approval from the headquarters, you can get reimbursed, otherwise After you spend the money, you can’t get it back.It is reasonable to call it a pre-examination, but in the end it is actually impossible.The company is also very inefficient.

So when it was at a low point, I thought that anyway, the sky is high and the emperor is far away, and they are distributed all over the country.Simply delegate all these powers to your branch. Whoever you want to invite to dinner, I will control you in terms of total amount, that is, all your expenses will be directly linked to your performance and linked to your sales.Your winnings are also pegged.And I make it clear that you do have the right to control the expenses incurred. After this release, everyone saved money instead, and he also knew that your headquarters would not take back the money. Anyway, the control is in each branch, so he was more economical than before, and the efficiency was also high, because he was at that time. Can make a decision.

So similar to this, we have actually created a two-page regulations.In the past, it was more than one foot thick. Of course, now we are not just two pages, because there were many principles at the time, and later it was refined, and the refinement will not exceed 10 pages.But it is this thing that is practical, and it is this practicality that was formulated during the trough period. Now the rules and regulations you formulate are not good enough, they are just formalities.That's when it worked.So take advantage of the trough, when you are impressed, and formulate all these things that should be formulated.

I am talking about the second question, which is about how to get out of the predicament.