Study experience of "Pawn Shop Management Methods"

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The inspiration of "No error is not necessarily a good thing" - the experience of learning from the management experience of Shanghai Hualian Pawn Shop Co., Ltd.

People in the industry often say that risk prevention and control is the first priority in pawn business. It should be said that after more than 20 years of business practice, modern pawnbrokers have changed from initially believing that pawn shops do not have business risks because they have mortgages and pledges, to that pawn business not only has business risks, but also many legal risks, Policy risks indicate that the pawn industry after recovery is continuing to become more mature and rational in its operations and management. However, as the industry continues to pay more attention to risk issues, there are conflicts between risk control management and mobilizing employees' enthusiasm, the imbalance between the large-amount real estate pawn business and the small items pawn business, and the conflict between investors' expected returns and actual operating results. Keep standing out.

Recently, I once again led a team to Shanghai Hualian Pawn Company to learn from experience. The company’s business philosophy of “no mistakes is not necessarily a good thing” makes the author quite unique among the calls for strict risk control in the industry. feeling.

Shanghai Hualian Pawn Shop Co., Ltd. is affiliated to Bailian Group, China's largest commercial circulation group, with a current registered capital of 100 million yuan. Its predecessor was the Shanghai Pawn Shop and its four branches established in 1992. It was the first pawn chain enterprise after the resumption of pawn business in mainland China. Over the past 17 years, Hualian Pawn Shop Co., Ltd. has aimed at expanding the market, adopted chain integration as its model, and served the society as its purpose. In addition to the headquarters, the company currently has 11 branches. Mainly engaged in the mortgage and pledge business of civilian products, motor vehicles, property rights houses, production materials, property rights, etc., as well as the sales of some absolute commodities. The annual pawn amount has grown from the initial few million yuan to more than one billion yuan. In 2008, the balance of civilian pawns alone reached more than 40 million yuan, making it a veritable leader in the industry.

Hualian people’s understanding of “no errors is not necessarily a good thing” is that the absence of errors means there is no business volume; the lack of business volume means that we dare not do business; from this explanation, we may be able to A glimpse of the success of the United Nations.

First, the management concept of "no mistakes is not necessarily a good thing" properly solves the contradiction between risk control and mobilizing employees' enthusiasm.

Looking at the various risks of pawnbroking, whether they occur or are effectively controlled, in the final analysis, they are closely related to the work attitude of corporate employees. Therefore, enterprise risk management is ultimately about people management. Today, more and more companies are well aware of the importance of employee management and the scientific nature of managing employees through systems. Therefore, there are all kinds of systems such as job specifications, business assessments, salary management, and administrative penalties. However, during implementation, these systems may have become a decoration that the company shows to others, which it only wants to possess without seeking implementation; or it may become a bargaining chip for the company to restrain its employees. Apart from obeying orders, the only option for employees is to wait until they are fully fledged. Then he flew away. These phenomena show that in order to train employees to become the creators of corporate benefits, the key is to help employees continuously establish a sense of identity with the corporate culture and a sense of belonging to the company. The sense of identity and belonging of employees depends on whether the content of the enterprise management system is in line with the business rules and the actual situation of the enterprise, and on the managers' methods and attitudes in executing the system, that is, whether they are people-oriented and highlight human nature.

Pawnbroking is a very practical profession. Because it requires practical operations, mistakes and deviations will occur. Qualified pawn salesmen generally have to go through the training cycle of "entering the industry - practice - growth - maturity". Acknowledging this cycle means acknowledging the value of employees' subjective initiative to the company's operating benefits in pawn operations; recognizing this cycle means admitting that employees are the first barrier for an enterprise to resist risks, and only then can the enterprise's operations truly have the ability to generate benefits. Possibility and ability to withstand various risks.

Judging from Hualian's introduction, in Hualian's entire risk control system, the harmonious relationship between the company and its employees is an important factor in its steady development. Here, in addition to the background of Hualian state-owned enterprises, Hualian people can adapt to the reality of pawn business and adhere to the management concept of "no mistakes are not necessarily a good thing" to reduce the psychological burden caused by mistakes and create a relaxed environment for employees. The role of growth and working environment cannot be underestimated.

In order to cultivate employees' loyalty to the company, Hualian has implemented various management systems while adding more humanistic factors. For example, in terms of the business model, it is determined to be "convenient and beneficial to the people", thereby guiding employees to establish a people-oriented concept of pawn services; in terms of market positioning, it is characterized by "short-term, convenient, small amount", thus guiding employees Employees have a deep understanding of the industry rules of accumulation of demand for pawn operations, and educate employees to understand the principle of "do not neglect a good deed that is too small"; in terms of employee training, the company's requirements for employees and their interests are combined through skill assessments and interest groups. organically combined. Hualian's unity of corporate interests and employee development in employee management embodies the scientific content of its system and the rigor of its implementation. It is this atmosphere that promotes Hualian's risk control, making Hualian's operations develop and make profits year after year in the past 17 years.

Know people well and appoint them with no doubt; allow failure and manage details. This is Hualian's ambition and wisdom, and it should also be the magnanimity that our investors and managers should have. Just imagine, under such a management system, who would not want to be loyal to the company?

Secondly, the management concept of "no error is not necessarily a good thing" properly handles the relationship between the large-amount real estate pawn business and the small-scale civilian property pawn business.

For some time, there has been a trend in the industry to follow the trend and expand the proportion of real estate pawn business and marginalize the civilian property pawn business. Some new investment managers are quite disdainful of the private pawn business, believing that the amount is small, the procedures are complicated, and the results are slow. Some companies even have 100% real estate pawn business in their business structure.

Yes, China’s rapidly developing economy and the government’s strong support for the pawn industry have provided unprecedented development opportunities for pawn investment managers. However, anyone who is familiar with pawn business knows that pawn business is a small industry. A business can be so small that it requires less than ten people to run it in an orderly manner; a business as small as a business may face only a few or even none customers every day. Therefore, within the existing scope of business, investment pawnbrokers need to be prepared for long-term operations, and should also pay attention to the reasonable allocation of business types and strive for comprehensive operations. Because the profit from pawns comes from the interest paid to the pawn company after the borrower borrows the pawn money. This profit model shows that pawn business must have a certain amount of accumulation. The quantity here includes, on the one hand, the service objects of the pawn, which reminds the investors and managers of the pawn to do a good job in customer retention, maximize customers and expand market share; on the other hand, it includes the products of the pawn. ——Pawn turnover speed and loan amount. It requires pawn investors and managers to pay special attention to the management of the liquidity of pawn funds. In view of the characteristics of modern pawns, which are mostly investment pawns, managers should adhere to the principle of minimizing the borrowing pressure on the pawn households and, in accordance with the provisions of the "Pawn Management Measures", generally control the current period within six months to improve liquidity. safety, achieve efficiency, and ensure safety. In this regard, the civilian product pawn business and the real estate pawn business are like twin brothers that meet the requirements of both aspects at the same time.

Summarizing 17 years of business practice, Hualian people believe that the civilian pawn business is the type of business least affected by changes in policies and economic situations. To occupy the market and improve liquidity, we must give full play to the window and basic role of the civilian pawn business. They always treat the civilian pawn business as their own housekeeping product and spare no effort to invest in various aspects and work hard in terms of management system, talent training and other aspects. In line with the management philosophy of "no mistakes are not necessarily a good thing", mistakes are allowed to occur. , Encourage more business, learn from lessons, grow talents from failures, and achieve the impressive achievement of an annual mortgage balance of 40 million yuan. Hualian people believe that the large-amount real estate pawn business is a driving force for corporate development, and that it and the civilian property pawn business complement each other and promote each other. The ratio between the two is basically controlled at the balance point of 30%:30%, thus effectively preventing the risks brought to pawn companies due to changes in real estate prices and improving the operating efficiency of the company.

Currently, this unprecedented financial crisis has injected a dose of tranquility into the mainland pawn industry, which has been booming for more than two decades.

It reminds pawn investors and managers to carefully analyze whether the company's past capital allocation and business structure are reasonable, deeply reflect on whether the company's market positioning and value orientation are correct, and prepare for new developments in the pawn industry.

Thirdly, the management concept of "no error is not necessarily a good thing" provides ideas for investors and managers to resolve the contradiction between expected benefits and actual operating results.

Since its recovery, the mainland pawn industry has been moving along with the country's rapidly rising economic development trajectory. Even the Asian financial crisis in 1997 was not affected more because my country's financial system reform was not comprehensive and profound at that time. impact. Especially after the 2005 "Pawn Management Measures" explicitly allowed pawn companies to carry out real estate pawn business, the mainland pawn industry, which had been extinct for more than 30 years, has flourished and developed, attracting more and more investment attention. However, among the ever-increasing number of new investors, very few understand the history and management of pawns. The simple calculation of the comprehensive interest rate of 3.2% per month multiplied by 12 months per year is the reason why they pursue large amounts of pawn money and current period. The direct cause of long-term development. Because they do not understand the operating rules of pawns and the risks of pawns, there is often a paradox between investors' excessive expected returns and the actual operating results of managers. When the two cannot reach the ultimate goal in terms of business ideas, management models, and marketing methods, When they get to know each other, problems such as intensified disagreements, unhappy separations, and parting ways often occur, putting the entire enterprise in a state of turmoil.

In the increasingly impetuous atmosphere of the pawn industry, Hualian people’s management philosophy of “no mistakes is not necessarily a good thing” cannot be said to be a good medicine. From Hualian people's explanation of this concept, we may understand that no matter in terms of capital scale or business scope; no matter in terms of talent structure or management capabilities, pawnshops cannot compare with mainstream financial institutions. Such institutions have the strength to undertake large-amount loan business. According to Hualian people’s explanation, daring to do business means that pawn investment managers must cultivate the psychological quality to dare to accept challenges and face risks and have the ability to make quick decisions and lend money in a timely manner; doing more business means that pawn investment managers must cultivate Be mentally prepared to be lonely, not afraid of trouble, to be able to run a thousand miles even if nothing happens, and to have the ability to operate and manage pawns; to do a good job in business means that pawn investment managers must establish the awareness of running a century-old store and establish effective Mechanisms to prevent and deal with various business risks. Only when pawn investors and managers achieve this kind of understanding and jointly make such preparations can the pawn business truly operate. Otherwise, any eagerness for quick success and high ambition will lead the pawn business astray, or even lead to disaster.

Twenty years of hard work have made the modern pawn industry in mainland China glorious and promoted society’s new understanding of pawns. This achievement was hard-won after many hardships. Currently, under the impact of this unprecedented financial crisis, we need to make more active efforts and persevere without giving up or giving up. In this kind of hard work and persistence, the author sees Hualian as the demeanor of everyone in the industry, and the calmness and calmness of a mature enterprise.