What is the core of capital operation?

Many people equate simple capital operation with financing, which is a very one-sided view. The core of capital operation is actually to look at the problem from the capitalist's point of view and do things with capitalist's thinking and methods.

Capitalists and entrepreneurs have completely different business ideas. Let's talk about the difference between capitalists and entrepreneurs, and you will know the core of capital operation.

The first difference is that capitalists pay attention to centrifugal force and entrepreneurs pay attention to centripetal force.

What is centrifugal force? If a capitalist wants to invest, he will not completely control the company, but only participate in it.

If a company is controlled by capitalists, it will often lose the original founder's entrepreneurial passion and core control, and will often be overwhelmed by professional managers.

But entrepreneurs don't. Entrepreneurs treat enterprises as their own sons, unlike capitalists who treat enterprises as pigs. Pigs are fattened and ready to be slaughtered and sold, and their sons are required to support the family, so entrepreneurs will go all out to take care of them.

This is the first major difference. Capitalists talk about centrifugal force and entrepreneurs talk about centripetal force.

The second difference is that capitalists and entrepreneurs grow up in different ways.

The growth of enterprises often depends on the increase of product production and sales, which is additive growth. However, capital does not do this. The growth of capital is a multiplication growth, often led by mergers and acquisitions, which promotes the growth and development of enterprises.

What is M&A-oriented? For example, how does Alibaba do the film industry?

According to the thinking of an entrepreneur, Alibaba should first set up a film company, then find an excellent director, constantly select scripts, then find good actors, form a good team, find a producer, then invest, start-up, shoot, post-produce, edit and distribute, and finally make money after distribution.

This is done by traditional film companies, but not in Alibaba Pictures.

The practice of Ali Cinema is to directly buy a listed company, such as the shell of Culture China, and then integrate the upstream ticket selling company, the downstream company and the network business. The market value of the whole sector exceeds 10 billion.

It takes many years for entrepreneurs to be listed as a film company, and it has a relative market value, while capitalists may have completed the development of others for more than ten years in half a year.

Capitalists' thoughts are always oriented to mergers and acquisitions, and only entrepreneurs think that everything is done by themselves, which is a major difference.

This is why capitalists must make a lot of money in the world, and it is very, very difficult for entrepreneurs to be capitalists. This is the second difference.

The third difference is that capitalists do things with social resources, while enterprises do things with their own money.

Most entrepreneurs have no capitalist thinking. They always think that if I have a penny, I will do something with a penny, and I will do something with a dollar, and I will do something with 10,000 yuan. Capitalists don't think so.

Capitalists always think about leverage. For example, the target value of his acquisition is 100 billion, but he only has 1 00 billion now, so he will try to raise 9.9 billion at the lowest cost and then acquire the other party.

Capital must be continuously financed, expanded, grown and leveraged. Entrepreneurs don't think so. Entrepreneurs first pursue stability, while capital pursues expansion, which are two major thinking differences.