pain point 1: budget control is difficult

compared with residential real estate, commercial real estate requires more detailed control, and the accuracy of residential real estate reports is "11,111 yuan", while commercial real estate reports should be as detailed as yuan or even cents, so it is required that the budget control system of commercial real estate can be truly established. The difficulty in budget control is mainly reflected in the following three aspects.

controllable budget target

The preparation of commercial real estate budget target is more complicated, and it is also two lines of revenue and expenditure. The revenue budget target of commercial real estate should be divided into sales revenue and rental revenue; Expenditure budget objectives need to be divided into development costs, operating costs and three major expenses. Among them, the establishment and process control of "rental income budget target" and "operating cost budget target" are particularly important.

The solution of benchmarking enterprise L is the rent budget management and control system based on contract.

first, the idea of budgeting based on contract. The rental budget target of enterprise L is based on each contract of each shop. If there is empty shop, it will be solved by "expected contract".

secondly, the contract is expected to obey the overall rent planning. The rental planning of the "expected contract" corresponding to the empty shop depends on the business planning of the shop. If the shop is planned as a catering business, it is necessary to refer to the rental planning objectives of the catering business to calculate the rental income that the shop must contribute this year, so as to deduce the latest opening time requirement.

Thirdly, four dimensions control the budget target. After the rent budget target corresponding to each store is determined, in the process of signing the contract, based on the four dimensions of budget unit price, guaranteed income, starting contract price and the highest rent level of the same floor and industry, the contract is compared with the contract price to decide whether to approve or not.

finally, the lease policy is monitored in real time. If there is a new lease policy, enterprise L will also compare the implementation of each contract with the lease policy in real time to find out the points that are inconsistent with the lease policy.

the second is the operating cost budget control system.

firstly, the operating costs are divided into three categories based on the project. The establishment of the operating cost budget target of enterprise L is based on a reasonable and standardized operating cost subject tree, and the operating cost is divided into three parts: operational rectification, promotion and investment promotion. After being established according to the project dimension, it is summarized by the commercial management company.

secondly, unify the operating cost subjects to ensure the consistency of the caliber. Enterprise L has specially formulated the operating cost management system of commercial projects, and specified the corresponding relationship between actual business and operating cost subjects in detail to ensure the unity of operating cost classification of different projects.

Thirdly, the two checkpoints ensure that the operating cost budget target is not broken. The first level is to compare the payment application amount with the operating cost budget target and control it not to exceed the target; The second level is the actual payment, and then a comprehensive review. In addition, the quarterly operating cost budget target is allowed to move. In actual business, there may be some unexpected situations that lead to the breakthrough of the operating cost budget target. At this time, enterprise L allows the operating cost budget target to be broken in a single quarter, but it needs to cut the operating cost budget target in the following quarters to ensure that the total budget target is not broken, which fully reflects the policy flexibility.

2. Controllable operational indicators

After making a reasonable budget target, it needs to be subdivided into key KPI indicators that need real-time attention in the process of business management team management, such as return on assets, rent growth rate, EBITDA profit, unit price of building rent, the proportion of rent to turnover, etc., as well as key operational indicators such as passenger flow and turnover. These indicators not only reflect the management ability of the business management team, but also reflect the profitability of different businesses. Specific can be solved according to the following ideas.

first, establish a hierarchical KPI monitoring system. For enterprise L, the KPI index of the whole group is divided into four levels (Figure 1), which is convenient for managers at different levels to focus on. On the basis of this classification, through various types of visual interfaces, KPI indicators are comprehensively monitored to ensure that leaders at all levels of the company are well aware of the overall operating conditions of commercial projects.

Secondly, special management should be carried out for key indicators. For example, the two core indicators of "passenger flow" and "turnover" are monitored in real time, so that we can identify the operating benefits of various shops and optimize the format in a timely manner. These two indicators can be specially supervised and reported, so that we can intuitively understand the impact of promotional activities, weather and holidays on business turnover and passenger flow, and formulate reasonable operational measures accordingly to ensure the sustained and stable operation of commercial projects.

Thirdly, monitor the abnormal indicators in real time. For commercial projects, in addition to real-time attention to normal daily business indicators, there are several very important abnormal indicators that we need to monitor in real time, such as vacancy rate, shop drop rate, rental-sales ratio, etc. If these indicators exceed the company's early warning line, we need to focus on and analyze them and formulate targeted solutions.

3. Controllable cash flow

For commercial projects, the business management team should first ensure the continuous and stable cash flow, and then pay attention to how to reasonably estimate the future rent level through the past rent level to predict the future cash flow, so as to predict the peaks in the cash flow statement, and cut off the peaks and fill the valleys in advance to ensure the safety of cash flow.

first of all, commercial real estate enterprises need to sort out the cash flow balance strategy. We can refer to the following three equations: sales revenue of saleable property = development cost of held property, order fund = development loan reserve, rent+property fee+parking lot income = capitalized interest.

Secondly, the overall cash flow can be completely analyzed through the information platform, and the future cash flow can be reasonably predicted through the understanding of the known cash flow.

pain point 2: investment management is difficult

for developers who have just transformed from residential to commercial real estate, after solving the problems of budget control and funds, the biggest problem they need to face is how to carry out investment management in a normal and orderly manner. These newly transformed developers have a common feature, that is, there is no strong brand resource pool as a strong backing for the development of commercial real estate, which is mainly reflected in three aspects.

Brand resource pool

Many developers of commercial real estate in transition have no choice but to turn to investment agents without sufficient brand resources. However, due to the immaturity of the investment agent industry, some unpredictable risks and problems appear in commercial projects.

In addition, if there is not enough brand resources, the investment negotiation of the project will be passive, and signing a "traitorous treaty of humiliating the country and humiliating the country" with some merchants will also greatly affect the achievement of the investment node.

according to the practice of benchmarking L enterprises, we should first reserve the brand library. The main store needs to reserve according to 1:3, the second main store needs to reserve according to 1:5, and the small store needs to reserve according to 1:11;

secondly, check the adequacy of the brand resource library. With the reserve target, it is necessary to check whether the current brand resource pool is sufficient according to the investment format planning of commercial projects and take countermeasures in advance;

thirdly, the investment promotion work should be carried out in advance. Based on the inspection results, the investment promotion work should be carried out in advance to ensure that the brand resource reserve meets the predetermined requirements, so as to master the initiative of the investment promotion negotiation process.

2. Follow-up and implementation of investment promotion plan

Benchmark enterprise L ensures the real landing of investment promotion plan according to four dimensions.

first, control the investment promotion plan according to the three major nodes: follow up the investment promotion plan according to the three nodes where the investment promotion progress reaches 31%, 81% and 111% respectively;

Second, break down the investment promotion sub-plans according to different formats: for example, break down the investment promotion sub-plans according to different formats such as catering, clothing and entertainment, which reflects the professional requirements of different formats and is conducive to the achievement of investment promotion goals;

the third is to ensure the key investment promotion through the hierarchical authorization of investment promotion: the investment promotion general manager of the main store of L enterprise is personally responsible for the negotiation, while the investment promotion manager is responsible for the investment promotion of the second main store, and the investment promotion of small shops is the responsibility of the general investment promotion supervisor or employee. Through this hierarchical authorization model, the promotion effect of important investment promotion work is ensured;

fourth, real-time early warning of investment promotion progress: enterprise l reminds investment promotion personnel in real time of what businesses need to follow up every week, what nodes to follow up respectively, what work needs to be done in the next node, etc. At the same time, the results of investment negotiation that need to be approved can be pushed to relevant leaders in real time, which is convenient for leaders to pay attention in real time, speed up the efficiency of approval, and then speed up the process of investment negotiation.

3. Refresh the brand library in time

After the investment promotion node has achieved and successfully achieved the opening goal, how to promptly remind the shops that are about to expire in the operation process, so that the investment promotion department can start the pre-existing secondary investment promotion as soon as possible, so as to avoid the vacancy rate from greatly increasing when the shops are empty?

first of all, it reflects the lease status of all shops in real time. For all shops in commercial projects, enterprise L divides their lease status into five categories: normal lease, expiration this year, early warning, active adjustment and empty shop. Especially for early warning (due in three months) and active adjustment items, the system automatically sends early warning information to remind investment promotion personnel to carry out investment promotion as soon as possible;

secondly, prepare the second investment plan. Based on the overall lease status of the store, integrate the information that is about to expire, has expired and has been actively adjusted, output the Second Investment Promotion Adjustment Plan, and carry out pre-investment promotion work based on this plan;

once again, refresh the brand library. Through the investment promotion work, the information of interested brand merchants will be entered into the information system for approval in time, and then the subsequent contract negotiation can be carried out.

pain point 3: format planning is difficult

for many developers who are transforming from residential real estate to commercial real estate, there are two main difficulties in format planning.

first, the target of format planning only pays attention to the brand, but not the revenue. Many developers in transition pay more attention to brand planning and ignore the rent planning behind it. Therefore, it is necessary to correspond the objectives of format planning with those of rent planning, and comprehensively compare the rent level according to the main selection and alternative situation of each store, so as to find the overall rent level corresponding to the highest and lowest rent level of each store, understand the impact of format planning on the overall rent level in real time, and intervene in project operation in time when there is a risk warning.

second, there is no suitable means to effectively monitor the fall of business planning. It is very difficult to monitor the format planning, and it is also very difficult to prepare similar reports or statements in the first line. Therefore, a reasonable information platform is needed to assist in the monitoring: First, the investment promotion period is monitored weekly. There are too many variables in the negotiation during the investment promotion period. Once the negotiation result of a major store changes, it will have a series of influences, so the monitoring frequency during the investment promotion period is secondary, reflecting the investment promotion negotiation process of each merchant in real time and reflecting the corresponding rent level; Second, the operation period is monitored on a monthly basis. Compared with the investment promotion period, the impact of the second investment promotion during the operation period is less, so the monitoring frequency can be carried out on a monthly basis.

pain point 4: difficulty in operation and management

for many commercial real estate developers, the achievement of the opening node does not mean "great success in opening" but "great urgency in opening", because after the opening of the project, it is more difficult to manage, which is mainly reflected in the following three aspects.

first, the format has been continuously adjusted. The continuous adjustment of business format is very important for the sustained and successful operation of a commercial project, but what should be the basis for the continuous adjustment of business format and what are the specific steps? Look at the practice of benchmarking enterprise L enterprise. First of all, the basic principles of format adjustment: L enterprise expressly stipulates that format adjustment must be carried out six months after opening, and it must also be adjusted every quarter, and it is necessary to ensure that the rental income of the overall project increases by 15% every year; Secondly, the focus of adjustment in different stages is different: enterprise L believes that during the whole operation period, the focus of adjustment should be carried out in accordance with the four stages of "passenger flow improvement → turnover improvement → bag carrying rate/customer unit price improvement → rent improvement"; Thirdly, there are two bases for continuous adjustment: enterprise L continuously adjusts its business format based on two data sources, namely, satisfaction data and business analysis data. The former includes consumer satisfaction data (consumption behavior, consumption habits and cognition) and tenant satisfaction data (tenant service demand and promotion business demand), while the latter includes rental-to-sales ratio, sales efficiency, rental efficiency and daily passenger flow, which truly reflects "customer satisfaction → merchant satisfaction → developer satisfaction". Finally, the business analysis data of continuous adjustment: enterprise L finds the merchants that rank lower for several months by comparing the business conditions of the same format horizontally, and actively adjusts them.

second, the lease policy has been implemented. Every commercial company will have its own set of lease policies, including the approval process of different types of contracts, preferential policies for rent-free decoration, preferential policies for rent, and rent reduction and exemption. For the group, how to ensure that the front-line operation norms meet the requirements of the company's leasing policy, avoid too much rent-seeking space, and ensure that the company's income is not eroded?

first, solidify the company's lease policy through business processes. L Enterprise solidifies all business processes of the commercial management company through the information platform, such as the approval of the main store contract, the second main store contract and the plaza lease contract, etc., all of which are solidified according to the company system requirements;

secondly, the key points of corporate control are implanted into the process. Taking contract management as an example, L enterprise is not allowed to make up the contract, take over the shop without paying the deposit, and overlap the lease period, so these are solidified as the approval points of business process to ensure the effective implementation of the company's lease policy;

Thirdly, it is convenient to monitor the risks existing in the operation process by focusing on the businesses that do not conform to the policy through the statements.

third, key business management. In the actual operation process, there will be a series of key businesses, including promotion management and rental fee collection. According to experience, in the first year of a business project, 71 or 81 promotional activities are often held to ensure the popularity and prosperity of the business project. What promotional activities should be held to meet the basic positioning of the business project? Which businesses do promotional activities have a positive effect on their turnover? In addition, can there be a platform to liberate the financial department from the complicated work of printing expense bills, printing rent bills, collecting expenses, collecting rent, managing late payment fees, and managing liquidated damages, so as to really improve the efficiency of the front line?

first, promotion management. Multi-dimensional analysis of promotion effect, guiding the follow-up promotion activities, and analyzing the effect through "ten thousand yuan passenger flow" and "ten thousand yuan turnover";

secondly, lease management. It is necessary to set different rent collection modes according to different formats and different businesses. After setting the basic parameters, the system will automatically generate rent bills and expense bills, and can automatically copy the contract template through the information system to avoid the risk of management and control from the source;

again, special business. For example, changes in accounts receivable, early termination, brand changes, rent changes, etc., need to be monitored in real time;

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