Let's talk about loans first. Loans can be divided into long-term loans and short-term loans. Long-term loans can last up to five years, and long-term loans have high interest rates. The advantage of long-term loans is that there are sufficient funds in the early stage, and more production lines can be built in the early stage. For long-term loans, I suggest starting at least six production lines in the first year, with relatively more products. But there are also corresponding problems, because in the first quarter of the following year, when the advertisement was put on.
The local and regional markets have been opened, so the competition is fierce. The products you produce may not be sold, but they need to be returned in the first quarter of the sixth year. If business was not good at that time, it was very likely that you could not repay the loan and went bankrupt. In addition, short-term loans, I basically use short-term loans, low interest rates are certain, and there is no pressure to repay long-term loans in the sixth year.
Using short-term loans means slow but steady gradual expansion. At first, it was suggested that only four production lines should be built, and the products should not be diversified. It is best to make only one product at the beginning, no more than two products at most.
I can do p 1 and p4. Generally p4 needs p 1, or p2 and p5. Similarly, P5 also needs p2.
Summarized as follows:
Extreme operation, once fixed and flexible, can open P4 in the second quarter of the fifth year. Then you just sit and wait for the takeoff. In the next few quarters, you can get the most profit with the least advertising.
This extreme operation is very difficult. At that time, when I led the team in the school competition, I only played in the preliminary round, and then I dared not use it because it was too important for advertising.