Characters experience of Huang deman

Huang deman was born in a poor mountainous area in Yangjiang, Guangdong. He 1977 was admitted to the university, but because he could not borrow 50 yuan for medical examination, he had no money to study, so he had to go home to farm. 1993, he came to Shenzhen to start a business with 5000 yuan, contracted a small hotel with 3000 yuan, and left 2000 yuan for earthwork. In the following six years, the latter completed the initial capital accumulation of millions of yuan for it.

From 65438 to 0999, earthwork was unsustainable. Seeing the hotel's annual profit of 50%, Huang Deman began to devote all his energy to the hotel industry. Huang deman's first hotel has 229 rooms, and the cost of each room is 40,000 yuan. The initial investment was more than 9 million, but his cash in hand was only 3 to 4 million. But with 30% cash investment, Huang deman completed the layout of more than ten stores bit by bit. Cash is mainly used for property deposits, air-conditioning appliances, and other necessary renovation prepayments. The remaining 70% is used for decoration and furniture. These can rely on the loans of suppliers first, and at the same time rely on the profits created by other stores to pay the arrears of suppliers while decorating. "I have been doing things myself and suppliers are willing to support us." Huang deman said.

Generally, it costs 70,000 yuan to invest in a room with the same specifications. Huang deman does not outsource. He asked the construction team to buy materials by himself, and it could be completed for 40 thousand yuan. On the one hand, it carefully calculated, saved costs, created profits and continued to invest. At the same time, it borrowed money from suppliers, and Vienna completed its initial investment. "If you have to talk about financing, then financing from suppliers." Huang said. At that time, he couldn't get any loans from the bank. "The hotel can't do well. The money invested in decoration is almost equal to waste. Borrowing money from the bank is tantamount to squandering water. "

Compared with the price of budget hotel 100~200 yuan, the price of Vienna is between 200~300 yuan, adding six service categories such as coffee shop, buffet and conference. Although the total cost of each room increased by 15~30 yuan, the unit price increased by 100 yuan, and the overall profit was higher than that of 70 yuan.

Relying on the business philosophy of "five-star decoration and two-star consumption", Vienna has never spent a lot of advertisements, which is basically a word-of-mouth effect. The occupancy rate is as high as 100%, with1300,000 members. "Where we drive, these members will follow." Huang deman said. "Now many people who do marketing and brand planning say that wine is not afraid of the deep alley, which is out of date. I believe in quality, it will never be out of date, and I will always believe in it. "

From 1999 to 2006, Vienna opened 16 chain stores at an average annual rate of two. 1999 turnover100000 yuan, nearly 400 million yuan in 2007, net profit of 5180000 yuan. Vienna's annual growth rate exceeds 100%, even 200%.

Huang believes that after more than ten years of experience accumulation, Vienna has formed a mature management system and talent training system, and now it is time to achieve scale effect. However, it will cost a lot of money to open dozens more stores. If you still snowball according to your own method, it will be slow. In addition, competitors such as Accor, Intercontinental Holiday Hotel and Hanting Business also began to expand, still as slow as before. Huang deman felt that there was no way to win this war.

From June, 5438 to October, 2006 10, the budget hotel Home Inns landed on Nasdaq, and Huang Deman was very excited. When he saw that Rujia was three years behind himself, there was more than 100 when it went public, and he was someone else's 1/4. He began to consider borrowing foreign capital to speed up his pace, just like home.

At first he didn't know how to find institutional investors. In June 2007, a financial consulting company took the initiative to find Huang Deman and introduced him to Softbank Safran Fund. In June, he met with Yan Yan, president of Softbank Safran Group. In September, Safran put1.1.50 billion yuan in Vienna's books, accounting for 23% of the shares. Recently, Vienna intends to introduce a French fund to launch the listing plan.

When introducing institutional investors, Huang Deman, who has never dealt with capital, is most worried about the decision-making obstacles that gambling and institutional investors may bring. Many institutional investors will set up many gambling clauses in order to protect their own interests. "If an entrepreneur falls in, he will do a lot of stupid things, such as getting money and not doing brand promotion, which will turn into gambling profits, leading the company to pay attention to short-term profits and ignore the overall consideration of long-term development, which will bring great disaster to himself." He felt that these problems must not happen to him. "My first consideration is the overall interests of the company. What should be done is done, and what should be sent is sent. I won't be as stupid as other bosses. I won't do such a thing. "

In the cooperation with Safran, Huang Deman asked the other party to promise that no matter how bad his business is, he can't dilute his equity indefinitely, not more than three points, that is, not more than 26% on the basis of 23%. "This is a negotiation. You agree to do it, and I can't help it if you don't. " "I must account for more than 50% of the shares. We are not playing a capital game. We really want to do one thing well. I have experienced many hardships and many twists and turns. I will love my career very much and understand many things. "

After the introduction of investment, there were 0/8 new hotels in Vienna in 2008, and it is planned to open 30~60 new hotels every year, from two to dozens every year. Vienna pole vault will also face many challenges. First of all, the high occupancy rate of 100% is difficult to maintain. After large-scale expansion, its occupancy rate has dropped to 93%. Although Huang Deman believes that quality should be guaranteed first and steady growth should be maintained, Huang Deman is facing a challenge whether Camel Company can speed up its running and complete the last jump before listing.