The boss’s entrepreneurial path

Author: Mahjong Jun

The boss’s entrepreneurial path

Xiangjiang area, Rong family villa.

Rong Renyi was about to recall his own journey to start a shipping business. All the young people in the study were very interested in this.

Who doesn’t like to hear world-class bosses talk about their experiences in person?

Zhao Wenmu poured himself another cup of coffee.

I conveniently added a cup of hot milk to Zhao Jing.

"Long-term shipping charter is a brand new business model. At that time, I was the only one trying it. Although long-term charter has a low profit margin, the income is more stable."

Rong Renyi continued.

Before this, he had worked in the financial system of Xiangjiang and had a strong sense of risk. It was precisely because of this that the Rong family shipping business adopted this safe management method from the beginning.

"The development was very slow in the first few years, because long-term leases meant that the funds were repaid very slowly. It was not until three years later that I had the money to buy a second boat."

"In the 1960s, the global oil industry experienced explosive development, and there was a huge demand for oil tankers. I was very sure that this was a once-in-a-lifetime opportunity. So I started to use leverage to buy large quantities of oil tankers and then lease them to customers on a long-term basis."

Zhao Wenmu nodded, Rong Renyi's shipping business did benefit from oil.

At the same time, it can also be seen that the boss is not only conservative and steady, but also dares to take huge risks when opportunities come.

Risks and opportunities coexist, and nothing is low-risk and high-yield.

Rong Renyi firmly believed in his judgment, and this time he made the right bet.

"Fortunately, I got support from HSBC at the time. HSBC gave me very good terms and allowed me to get an unlimited and unsecured loan."

Unlimited and unsecured loans shocked Zhao Wenmu.

How optimistic is HSBC about Rong Renyi?

In other words, how optimistic was Pittman, the then chief executive of HSBC, about this big boss.

With the support of HSBC, it means there is almost unlimited firepower support!

"It was the best era for the global shipping business, so my shipping business grew by leaps and bounds. By 1970, Global Shipping was established, and by then it was already one of the largest shipping companies in the world."

Rong Renyi's shipping business model is actually easy to understand, because this is actually the case for real estate in later generations.

Regardless of whether it is wrapped in shipping or real estate, it is actually a financial business at its core.

Use a loan to buy a ship, and then rent out the captain to collect rent. The rent is higher than the loan interest, forming a so-called interest spread, which is the profit of the ship owner.

An example of a white wolf with empty gloves.

As long as the boat rental is high enough, you can make a steady profit without losing money.

A certain belt guy who was in debt worth 2 trillion actually played the same trick.

As long as house prices rise and profits are higher than interest, he can keep playing.

What if the profit from renting a boat or a house is very low and is not enough to repay the interest?

It's very simple. If you can't pay back the money, you will go bankrupt.

Today's companies are all limited liability companies. The money the company "earned" in the past has been taken away by the bosses as dividends. Now that they can't pay back the money, the company goes bankrupt and is canceled, and the debt is wiped off.

In the end, the banks that represent the national interests and the people who bought off-plan properties are the ones who suffer.

The capitalists are still singing and dancing, so happy.

The difference between Rong Renyi and these people is that he makes very accurate judgments.

Not only did he accurately predict the boom of the shipping business, he also predicted the depression and shrinkage of the shipping business in advance.

Therefore, he reduced the number of ships and landed.

That is, reducing leverage.

Just like before the real estate industry was in trouble, a certain department shouted the slogan "survive".

But another meaning of survival is to make it difficult for competitors to survive.

And when they can no longer survive, the corpses are collected at low prices.

By continuously increasing leverage, by 1977, just 20 years after Rong Ren entered the industry, he was already the world's largest shipping king.

"Ah Mu, when people live in this world, sometimes they need a noble person to help them. To a certain extent, Pitman is my noble person. Of course, I am also his noble person."

Because of Pittman's firm support, HSBC was able to provide ammunition to the Rong family unconditionally.

The rapid growth of Rong's fleet has brought not only huge profits to HSBC, but also unparalleled voice.

It is precisely because of this that Pittman has been able to sit firmly as chairman of the board of directors of HSBC for more than ten years.

The two of them really go in both directions and achieve each other's success.

"Uncle Rong, you are my noble man."

Zhao Wenmu said seriously.

"Haha, Amu, you are also my noble one."

Contrary to Zhao Wenmu's expectation, Rong Renyi's tone was very serious when he said this, and he was obviously not being polite.

Zhao Wenmu was very happy when he heard this, but he also knew that he could not live up to Rong Renyi's evaluation.

Boss Rong has already achieved success and fame, and he can only give the other party some small help to make things better. He cannot be considered a noble person at all.

In Rong Renyi's heart, Zhao Wenmu could already be regarded as a noble member of their Rong family because he saved Rong Xinyi.

What's more, Zhao Wenmu has always given him a lot of ideas, which are quite refreshing for him. Not to mention, the "Hutchison Whampoa" strategy just now has benefited him a lot.

"Uncle Rong, what was the most difficult moment in your entrepreneurial journey? And how did you overcome it?"

Zhao Jing, who was sitting aside, suddenly asked.

This question must be of most interest to many people.

In this world, no matter how great a person is, there are very few who can have smooth sailing from beginning to end.

In other words, if you don’t go through ups and downs, how can you achieve great success?

It is precisely for this reason that those who are going through troughs, those who cannot see the way forward, those who are ambitious, those who are struggling to make a living in the market, all want to see what these successful people have experienced.

How to solve this kind of suffering.

Maybe what I am experiencing now is exactly what the big guys have experienced before?

Maybe one day I will soar into the sky like these big shots?

When people live, they must always have dreams.

Otherwise, what’s the difference between it and salted fish?

Rong Renyi looked at Zhao Jing lovingly. He liked this kind and tenacious girl very much. In his heart, Zhao Jing was his niece just like Rong Xinyi.

"The most painful and difficult time was naturally when I first arrived in Xiangjiang."

"At that time, your aunt and I had no money and no shelter. During the day, I went to the pier to carry bags, and she washed clothes at the church orphanage. At night, we stayed in the container at the pier."

"Compared to the days when I had no clothes on my body, no food to eat, and always worried about being bullied by the military, police, and gangsters, the difficulties I encountered later were nothing more than minor."

Among the people at the scene, Rong Zhenbang and Rong Zhenyi were not too touched by Rong Renyi's words.

Because they have never experienced such days, they have been superior to others since they were born.

Zhao Wenmu had some experience. When he came out of his home in his previous life, he was as miserable as a bereaved dog, and he was running around for food every day.

The person who was most touched at the scene was Zhao Jing.

In the past few years, she had been worried about her little daughter's present and future day and night. She obviously had a husband, but not only could she not rely on him, he was actually her biggest burden.

Indeed, at that time, her most beautiful dreams were far less sweet and happy than they are now. Compared with the pain of crying alone at that time, any difficulties she encountered now were nothing.

"If we talk about business difficulties, it must be the accident in 1963."

Eiren continued speaking with an expression of admiration as he recalled the past.
Chapter completed!