Chapter 93: The Plan

"Schroeder Group is offering 8 million gold shields, right?"

In the general manager's office of Sunrise Company, Kadiren Jebsen, sitting across from Li Mochen, said thoughtfully: "Though it's not enough to cover our previous investment, given our company's current situation, this price is still relatively fair. Better than getting nothing at all."

Li Mei frowned: "But our total investment has already reached 9.4 million gold shields! That's not even counting the value of the land itself. After selling this project, the company won't have enough money left to repay the loan and interest. They're taking advantage of our misfortune!"

She had originally been in favor of the company selling the Archibald Apartments land as soon as possible, but Li Mochen had somehow gotten involved with Pearson-Darby-Specter Law Firm, which raised her expectations.

Li Mochen understood her dissatisfaction. Although Sunrise Company had only taken out an 8.5 million gold shield two-year unsecured loan, the interest rate was as high as eight percent.

That meant, after fourteen months, they would have to repay nearly 10 million gold shields including principal and interest.

Jessica Pearson's client's offer was indeed taking advantage of their misfortune.

"According to the contract, we can repay the loan early, which would avoid next year's interest."

Kadiren Jebsen smiled wryly: "I guess we can negotiate the price a bit; there might be room for about 1.5 million gold shields. This is probably the most sincere buyer we have. We'd better not miss this opportunity."

Li Mei immediately retorted: "But if we develop the property ourselves, even after deducting costs, we could make a profit of over 10 million gold shields."

"You're too naive, Mei!"

Kadiren Jebsen shook his head: "The problem is that our Archibald Apartments have been rezoned as industrial land, so we can't continue, right? Besides, we still have to deal with Antonio of the Blood Hand. In that regard, Pearson Law Firm probably can't help us. The Atlanta Blood Hand is a branch of the Mafia; I know their methods. When Antonio starts to play dirty, everyone in the company, and your families, could be threatened—"

"No need to argue. I've decided to sell the land. But the price absolutely cannot be 8 million. Kadiren, you can negotiate with them first."

Li Mochen interrupted Kadiren: "As for the overseas trade business, we'll continue if we can, but if not, we won't force it. I plan to shift the company's focus to home appliance sales."

"Home appliance sales?"

The two across the desk exchanged glances, looking as if they wanted to speak but hesitated.

Home appliance sales—this was an industry Sunrise Company had never ventured into before.

Li Mochen was not surprised by their expressions: "I understand your concerns. Jumping into an unfamiliar industry might lead to losses, but the business model I envision is innovative and disruptive, with considerable commercial prospects."

Kadiren Jebsen's expression was noncommittal: "Amo, could you explain it roughly? If it's convenient?"

He couldn't help but worry; what young people called innovation and disruption often meant fooling around.

"I call my plan the 'Integrated Store Plan.' Don't you think the current way of selling home appliances is very inconvenient and unreasonable? Salesmen and agents for different brands are scattered all over the city. People often have to walk down a whole street or two to compare prices and performance, and after-sales service is terrible."

Li Mochen explained patiently: "But what if there was a large enough integrated store that brought together several quality appliance brands, offering one-stop service and near-cost prices?"

"Integrated store?"

Li Mei was taken aback: "I think that would cost a lot of money?"

"Setting up such a store in a commercial center and sourcing goods would require several million gold shields at least."

Kadiren Jebsen said thoughtfully: "But this business plan does seem feasible."

"We don't need to start in a commercial center initially. We could consider choosing locations near large, safe middle-class communities."

Li Mochen smiled slightly: "I've thought it through carefully. A store of about 500 square meters would be enough to concentrate several brands of appliances. Including rent, decoration, personnel and security costs, air conditioning, and other expenses, the cost would be between 1.2 million and 2 million gold shields. After selling the Archibald Apartments land, the company's available funds should allow us to open six to seven such stores in the best locations across Atlanta."

This integrated appliance store plan was indeed something he had carefully considered. Compared to deeply rooted traditional industries, the home appliance retail sector, which had only emerged a dozen years ago, was far less powerful. The resistance he would face would be much less than in traditional industries.

"So, we're not going to repay the loan early?"

Li Mei frowned again. As the company's financial director, she couldn't help but worry about Li Mochen's ambitious plan, which would consume huge sums and exhaust all of Sunrise Company's capital reserves.

"Seven stores? Isn't that too many?"

Kadiren also expressed doubt: "I admit Amo's idea is brilliant, but I think it's better to test the waters first at the beginning. That would make it easier for us to gain experience and smooth out relationships."

"That's because we don't have time, you two. You must remember that there are many people in Atlanta with more financial resources than us. While we're gaining experience, others might take over the entire market. And as for the money we owe the bank, if we don't repay early, the interest alone will be several hundred thousand gold shields. Letting it sit in the bank account would be too much of a loss."

Li Mochen patiently persuaded them: "If I were starting from scratch and going it alone, I might choose a more cautious approach. But now, don't I have you? Although it's different from our previous import-export trade, all business activities have some things in common."

—This was precisely the value of Sunrise Company. The company's more than twenty loyal employees with a certain level of execution capability were enough to support his plan.

"As for government relations, there's no need to worry for now. Nathan Sports Group still owes me a promise. They'll handle all the government connections for us and make sure the police pay attention to our stores."

When Kadiren heard this, his eyes lit up, and he fell into thought.

Li Mei hesitated: "But in just 13 and a half months, we'll have to repay nearly 10 million in loans."

"That's a year from now."

Li Mochen smiled slightly: "As long as we can generate enough sales in the coming year, we can use our status as a major channel to gain stronger bargaining power, even charge manufacturers entry fees. So profitability is definitely not a problem. Of course, this is just my speculation. Before we start this plan, we still need to conduct a detailed market survey—"

Before he finished speaking, Kadiren responded decisively: "Let's do it! I think this idea is great. I'll do the market survey in the next few days. Then we'll need to hire some appliance sales and store management talent, and obtain agency or distribution rights for several well-known brands, right?"