Capital is a very strong and mature company When they gamble with South Beauty, they must be very familiar with South Beauty, corporate culture and processes, and they must know that South Beauty has no awareness of risk control. This is the weakness of South Beauty, which is the prey of hunters. What they want to buy is this kind of catering company with fatal weakness, brand recognition and good cash flow!

Capital has a strong legal team, and the weakness of the target will trigger a series of overlord clauses. However, Zhang Lan is too eager to go public and too confident to believe that South Beauty will definitely go public. He never thought about whether his funds could survive all kinds of risks, so he was more likely to take the bait.

Reasons for the failure of South Beauty:

1, first locate the target, the grid is too high to be grounded.

Zhang Lan wants to turn South Beauty into a catering LV. It is good to have a high goal, but tactically it is wrong.

Take the route of high-end catering from the beginning, business banquets, single-store running water is relatively high, but the cost is also high, rent plus high-end decoration plus labor, the investment is high, and the input-output ratio is not so high! When encountering uncontrollable risks, it will lead to insufficient cash reserves. The so-called step is too big and easy to pull.

2. No awareness of risk control:

Every project that every big enterprise does must have an important component, risk control. It is to foresee all kinds of potential unfavorable factors that enterprises will encounter in advance, including policy adjustment, competitor's run, bad reviews being blacked out by public opinion, uncontrollable unknown risk factors and so on. Is to encounter various difficulties, whether there is a plan prepared in advance.