Chapter 111 Where can you find this kind of business?

America later had a Secretary of State named Pompeo, who initially worked at Koch Industries.

He was later scouted by Charles Koch and entered the American government, rising step by step to the high position of Director of the CIA, and was later appointed Secretary of State by the highly unreliable president.

Pompeo's rise was largely the result of the Koch Brothers pouring money and personnel into supporting him.

Charles Koch's saying, 'Connections need to be accumulated over the long term; every time you use them, it's a consumption, and we cannot do a losing business,' can be called a moment of clarity in the world.

Charles Koch's ability to develop the family business so well and possess such a vast political network was truly not down to luck; it was clearly the result of meticulous planning.

Since Koch Industries is not publicly listed, the outside world has no idea exactly how much money the Koch Brothers have.

However, in 2005, Koch Industries acquired Georgia-Pacific for the astronomical price of twenty-one billion dollars, setting a record for the largest acquisition of a public company by a private enterprise.

The key point was that this twenty-one billion dollars was cash from their bank accounts, without seeking any bank loans~

And members of the Koch Family hold eighty-four percent of the shares in Koch Industries.

Although Charles Koch publicly questioning Wang Xiuyuan was a bit disrespectful, what could Wang Xiuyuan say!

How should one choose when the situation is unfavorable?

One should back down when it's time to back down; those who go head-to-head all the way are idiots. Such fools are all dead; they die as soon as they appear.

What does a tiny bit of questioning matter? How much is a weakling's face worth in front of someone stronger?

“Mr. Charles, I very much agree with your perspective.

There are plenty of people who will do business that risks their heads, but everyone will avoid a business destined to lose money.

The reason we invited you seniors to this meeting today is, in fact, a process for us juniors to convince you all.

The young people sitting next to you are all part of a community of shared interests, and their success will also feed back into and strengthen the families standing behind them.

We will show the results to you.”

Then Wang Xiuyuan looked at Renoson: “Renoson, why don't you start first.”

Reynoldson Rockefeller did not refuse and took out a thick stack of materials to distribute to everyone in the meeting.

“Thank you, elders, for coming to this meeting. In fact, we young people were also hesitating at first about whether to trouble you all.

Because some of us were worried that we wouldn't have the right to speak during the meeting, and some even worried they would have to stand and listen.

But the result now is better than we imagined; at least we young people can sit down for the meeting. I believe there will definitely be a successful outcome today.”

Reynoldson Rockefeller didn't start the report directly but made a small joke instead.

It served to lighten the atmosphere while also being a response to Charles Koch's questioning.

“Our Corrections Corporation of America...”

Reynoldson Rockefeller gave a very detailed account: the number of prisons managed, the number of prisoners, the reforms implemented, the early problems that were rectified, how much capital could be saved after rectification, how many more prisons were in negotiations, and when they were expected to be taken over—everything was explained clearly.

The excellent operational status and outstanding profitability made these old men a bit restless.

After Reynoldson Rockefeller finished his report, just as these old men were preparing to ask questions, Wang Xiuyuan quickly stepped in to interrupt them.

“Devik, it's your turn now.

I know you seniors have many questions right now, but please restrain yourselves for a moment and wait until Devik and Locke have finished speaking.

The three companies are in the same business, and all the issues are the same.

If you seniors have any questions, you can note them down first and we'll answer them collectively after they have all finished.”

Wang Xiuyuan's approach was very clever; he could naturally see that these old men were a bit agitated, but he simply wouldn't let them vent that agitation.

Some emotions need to be allowed to brew further so that when they finally explode, they are even more vigorous.

Furthermore, doing this had another benefit: it prevented endless interruptions from affecting the rhythm of Devik and Locke's reports.

For the same report given by the same person, the effect and completeness of a seamless delivery versus a fragmented one are worlds apart, so Wang Xiuyuan would certainly not let that happen.

He needed a perfect report and a perfect presentation process.

As a 'real estate dog' who had presented countless PPTs, Wang Xiuyuan was very experienced in this regard.

Many questions actually have answers within the report; it's just that some leaders ask too early, purely wasting time there.

Some questions aren't actually important; you can have them ask collectively later. By the time the Q&A session arrives, they might have forgotten the question themselves, or even forgotten the harsh words they had planned to use to make things difficult for you.

If they keep remembering the question and the rhetoric for finding fault, then they most likely won't be able to listen seriously to the rest of the report. This is all experience!

After Devik and Locke had finished their reports one after another, someone immediately asked a question.

“Renoson, are you saying your company has already started turning a profit with only four prisons currently in operation?”

“Yes, that's correct,” Renoson said with full confidence. “In fact, these four prisons started profiting from the second month.

We didn't have much experience in the beginning, so we took some detours. Now, when taking over new prisons, we are confident we can profit in the very month we take over.”

One couldn't blame these old men for being too excited; the data they presented was simply too magnificent.

For such a large business to start profiting in the second month, with a huge amount of cash still sitting in the bank accounts—it would be strange if they weren't excited.

Currently, the prison factories haven't even started production. Once they do, it will be another massive point of profit growth, and they'll only make more money then.

If it were just one prison profiting in the second month, it would be one thing, but the problem was that all eleven prisons were like this. This fully demonstrated that this business was a guaranteed win with no chance of loss.

There are only so many prisons in America; even if they did nothing else, they could just infinitely replicate this model.

How does one define whether a company or a business model is good or bad?

The simplest and most direct way is whether the company can make money, whether the profit points are stable, and whether the business model is replicable.

The private prison business perfectly met these conditions, every single one of them.

And the most important point, which all the old men keenly perceived, was that there are only two thousand four hundred and thirty-three prisons in total in America. Even if there were new additions later, the number would be extremely limited.

They could easily achieve an industry monopoly.

The number of prisons is fixed, and the number of prisoners is fixed. The prisoners who enter the prisons are like meat on their chopping block; how to squeeze profit from these prisoners would be entirely up to them.

Therefore, the profitability of this business was also extremely stable.

Where else could you find such a good business?

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