Rebirth of Fishing Village: Starting from Hua Axiang in Jiehu Village

Chapter 1499 The Role of Cash Flow!

The sun was blazing.

Ding Xiaoxiang and Yang Qin drove the speedboat to the Shiqiao Village dock, tied the cable, and went directly to the shops next to the dock.

"dad!"

"Yang Qin and I went to see Zhao Dahai and Liu Lei to discuss the things we had agreed upon."

Ding Xiaoxiang sat down and immediately began to tell Ding Chongshan about the things she had discussed with Zhao Dahai and Liu Lei.

“Zhao Dahai said that this business should be handled by our family. You and your two older brothers will do this kind of thing. Zhao Dahai and I will just provide the money, and Liu Lei and the others will also just provide the money.”

Ding Xiaoxiang emphasized this matter.

"Oh?"

"Aren't you and Zhao Dahai going to do something like this?"

Ding Chongshan was stunned. He really hadn't expected things to turn out this way. It wasn't that he didn't want it to be this way; on the contrary, he really wanted it to be this way. But he originally thought that Zhao Dahai and Ding Xiaoxiang were going to do this, and he was just participating in it.

However, what Ding Xiaoxiang is implying is that neither she nor Zhao Dahai are making decisions or doing such things; they are simply making investments.

"Correct!"

"Zhao Dahai made this matter clear."

"Zhao Dahai said that the main thing we do is fishing and selling fish. Buying fish, shrimp and crabs is not unprofitable, but it is not the main thing we do."

"On the contrary, the business of buying and selling fish, shrimp and crabs is what our family is doing right now."

“I think Zhao Dahai is right, he makes a lot of sense. Let’s leave the purchase of fish, shrimp and crabs to our eldest and second eldest brothers. Liu Lei and I will just contribute our money and wait for the profits to be distributed after the business is done.”

Ding Xiaoxiang knew that Ding Chongshan must find this matter extremely unbelievable and absolutely unthinkable, but Zhao Dahai had explained it very clearly.

"Row!"

"That's settled then."

Ding Chongshan smiled and nodded, not bothering to make a fuss about it.

Zhao Dahai did this on purpose.

If it weren't for Ding Xiaoxiang's connection, such a good thing would never have happened.

Buying fish, shrimp, and crabs is actually very profitable. Zhao Dahai is not very familiar with this business, but the problem is that Ding Xiaoxiang is very familiar with it. If she really wants to do it, Ding Xiaoxiang can do it well.

There's absolutely no chance it will be my turn.

The other one is Ding Xiaoxiang. Her words made it very clear that she was asking for financial support, otherwise she really wouldn't have been able to get enough capital to solve the problem and grab market share from others.

"dad!"

"Zhao Dahai's meaning was very simple: we don't need to be too polite in this kind of business. We have enough cash flow on hand, and we can cripple the other party and gain their market share just by using this method."

"When doing things like this, there's no need to be overly cautious. We'll use whatever method can resolve the issue with the opponent as quickly as possible and seize their market share."

"Cash flow is actually the simplest, most direct and most effective way. If that's really the case, then let's use that method."

Ding Xiaoxiang was very clear that there were many ways to do business, but the simplest and most direct way was to use cash flow to drag down the competitors. In this regard, this was the best and most advantageous condition and the best weapon for her and Zhao Dahai. She and Zhao Dahai were a little worried that Ding Chongshan had deliberately reduced cash flow expenditure in order to save money. If that was the case, things would drag on for a very long time and all sorts of unexpected events could easily occur.

"Uncle Ding!"

"Zhao Dahai's meaning is actually very simple: we should put up as much money as possible to resolve this matter as soon as possible, instead of dragging it out for three or five years. That would not be a good thing for us. You know, there are a lot of fish, shrimp and crabs at Shijiao Village Wharf. The sooner we collect these fish, shrimp and crabs, the sooner we can make money. Even if we have to invest a lot of money upfront, it will still be very worthwhile in the end. On the contrary, if we drag it out for three or five years to resolve this matter, we will lose a lot of money."

Yang Qin knew that this matter had to be handled as Zhao Dahai suggested: use cash flow, and a huge amount of cash flow, to drag the other party down. This method was very simple, direct, and effective. The downside was that a large amount of cash had to be invested at once. However, this was not easy for others, but for Zhao Dahai and Ding Xiaoxiang, it was really no problem at all.

Does Zhao Dahai have a lot of cash? And can he take it out anytime?

Ding Chongshan was stunned for a moment.

It wasn't that she didn't know Zhao Dahai had caught a lot of fish, earned a lot of money, and had a lot of cash on hand, but she really didn't know how Zhao Dahai would handle that money, and she certainly wouldn't ask him about it.

Ding Xiaoxiang's words at this moment have a very simple meaning: she needs to invest a large amount of cash in this matter, with the goal of seizing the market share of her competitors in the shortest possible time.

Is this approach useful? Or is it effective?

This goes without saying! This approach is very simple, very practical, and very effective, but the problem is that not everyone can do it; you must have enough cash on hand.

Having assets, or having a certain amount of capital, and having a certain amount of cash on hand are two different things.

Many business people actually have a lot of money, but most of this money is in fixed assets and fixed investments, and a lot of cash needs to be kept in order to maintain the business.

This cash is for daily business operations. If competition arises, it's not that there's no cash on hand, but generally there won't be much cash, or even enough cash.

Business people are not unaware of the significant risks involved, but they cannot afford to keep too much cash on hand. They must expand production and so on. Keeping too much cash on hand is no different from not making money or even incurring losses.

I consider myself a wealthy person, at least by the standards of the village, but the problem is that I don't keep much cash on hand.

This time, they are preparing to swallow up the market share of their competitors, Ma Ping and Sun Tie.

To be fair, Ma Ping and Sun Tie had more money than me, and their businesses were much larger.

Even so, neither of them would keep a lot of cash on hand.

I didn't think about this aspect when I was planning to compete with the other party. It's not that I didn't know this method was simple, effective, and worth trying. I don't have much cash on hand.

"Is there any need to say more? Zhao Dahai catches so many fish every day, and he settles all his sales in cash, so he definitely has plenty of cash on hand. It's just a matter of how Zhao Dahai and Ding Xiaoxiang use the money."

"Hey!"

"Who pays cash every time they buy fish, shrimp, or crab?"

Yang Qin glared at Ding Xiaoxiang.

When Hongyun Restaurant, or rather Liu Gang and Liu Lei, bought fish from Zhao Dahai and Ding Xiaoxiang, they always paid in cash and never left it overnight. When Hongyun Restaurant bought fish, shrimp, and crabs from other people, they sometimes paid in cash, but for large sums, they would definitely settle accounts every ten days, fifteen days, or even a month.

Don't underestimate the difference between paying the bill a little earlier or later; for a large sum of money, the difference can be enormous.

“What’s the point of telling me this? This is something that Zhao Dahai agreed upon with Liu Gang and Liu Lei from the very beginning.”

"Whether it's selling to Wu Weimin or someone else, it's all done in the same way, all in cash."

"It's not like only your Hongyun Restaurant is like this."

"Besides, your Hongyun Restaurant basically accepts cash payments. Does that mean that other diners who come here don't pay in cash and only pay once a month?"

"There are people like that, but there are definitely not many. Otherwise, your Hongyun Restaurant would have gone bankrupt long ago. How could your business have grown so big?"

"Or perhaps you feel that paying in cash isn't quite right?"

"If you really think it's not going to work, then why don't you just stop buying fish from Zhao Dahai at your Hongyun Restaurant?"

Ding Xiaoxiang didn't hold back and retorted with one sentence after another.

Zhao Dahai paid cash for all the fish he sold to Hongyun Restaurant, including the fish he sold to Wu Weimin, and even all the fish he sold to others. There were no exceptions.

Yang Qin was right. Other people would never pay in cash like Zhao Dahai, especially not every time.

The problem is that Zhao Dahai only accepts cash payments.

If you're not willing to pay in cash, then don't even think about buying the fish that Zhao Dahai caught.

Why is Zhao Dahai so confident? It's actually very simple: Zhao Dahai can catch a lot of valuable fish, something that other people who go out to sea to fish can't do.

Liu Lei and Liu Gang were unwilling to pay in cash?

There are plenty of people willing to do this kind of thing; countless people have come to Zhao Dahai wanting to buy those large groupers from him.

"Yo!"

"Ding Xiaoxiang".

"I see you're really not giving me any face at all!"

Yang Qin was helpless. In this matter, whether it was herself, Liu Gang, Liu Lei, or anyone else, when they wanted to deal with Ding Xiaoxiang, they all had to follow the rules set by Ding Xiaoxiang and Zhao Dahai.

It has to be cash; there's no other possibility.

Yang Qin was very clear about this, and there was really nothing she could do about it.

I was just saying this casually, offhand.

"dad!"

"I think we should do as Zhao Dahai suggested."

"Solve the problem directly with cash, and avoid getting entangled with the other party too much. This is the best way to resolve the issue in the shortest amount of time."

"The sooner we take over the market share from Sun Tie and Ma Ping, and take away those fish, shrimp, and crabs, the sooner we can make money, and the money we make will be substantial."

Ding Xiaoxiang knew that this would require a large investment of cash, but she felt it was very worthwhile and there was really no need to get entangled with Sun Tiema Ping.

“When we don’t have enough cash, we can only compete with the other party in terms of time, which may take three or even five years to complete. But now that we have enough cash, there is no need to spend so much time.”

"Zhao Dahai said that if the family is short of money, they can borrow any amount they want."

Ding Xiaoxiang knew that her family wasn't short of money, but the money had specific uses, and even if they had cash on hand, it wouldn't be much.

If you want to resolve the conflict between Ma Ping and Sun Tie in this way, you definitely don't have enough cash.

Zhao Dahai made it very clear that if the family needed money, they could borrow as much as they wanted.

"I need to do a good job of calculating this and see how much cash I need."

"We have a broad range of figures now, let's see how much money we need to borrow."

Ding Chongshan nodded without hesitation.

Brothers settle accounts clearly.

Zhao Dahai and Ding Xiaoxiang got married, so they had their own family. The money was earned by Zhao Dahai through hard work, not by himself. If he wanted to use the money, he would definitely have to borrow it, and he would have to pay interest according to market rules.

Business people are not afraid of borrowing money, but of not being able to borrow money.

Doing business is very risky. If it weren't for Ding Xiaoxiang's connection, I wouldn't have been able to borrow any money from Zhao Dahai, especially not a lot of money.

Zhao Dahai's offer meant there would be absolutely no problem with cash; all he needed to do was calculate the amount needed.

With Zhao Dahai's offer, he was already in an invincible position. He didn't need to worry about losing the competition at all. In other words, even if he borrowed money, paid interest, and took certain risks, it was still very worthwhile.

"Row!"

"We need to do a good job of calculating this to find out how much it will cost."

"correct."

"Grandpa Shi said that he would invest 500,000 yuan in this matter."

"A fixed amount. Once this matter is completed, we'll see how much of his 500,000 is involved, and the dividends will be distributed accordingly."

Ding Xiaoxiang told Ding Chongshan the amount Shi Guangming planned to invest.

Ding Chongshan nodded and agreed. This matter certainly couldn't involve only himself, Zhao Dahai, and Ding Xiaoxiang's families; there must also be people like Shi Guangming involved.

(End of this chapter)