Chapter 1004 – Entrepreneurship Support Program
“You are that Manager Feng, the shareholder of Lenovo, and the founder of Rain and Wind brand?” Wang Zhixi asked respectfully.
“Do you think anyone else can set up such a big investment company?”
“Manager Feng, I think we should have a more detailed discussion.” After knowing Feng Yu’s identity, Wang Zhixi’s attitude changed.
For the rest of the meeting, everything goes according to Feng Yu’s plan. Wang Zhixi accepted Feng Yu’s conditions despite he will become a small shareholder, and Feng Yu has the controlling shares. Feng Yu had promised him that the company would continue to develop according to his plans, and this is better than finding other venture capital!
……
“Old Sun, you will follow up on the companies within China, and I will get someone to acquire that US company.” Feng Yu told Sun Lijie.
“Ok. Boss, I will acquire Ba Da Group’s shares at the best price, and I guaranteed that we would not suffer any losses.”
Feng Yu had given Sun Lijie 1% shares of the company, and it’s worth 100 million USD now. Of course, Sun Lijie can only get dividends now, and the shares will be transferred under his name three years later. But Sun Lijie does not mind. He believes that this company’s value will never drop because this is Feng Yu’s company!
Feng Yu had thought about this. Currently, many of the future Chinese internet entrepreneurs might still not have started their own business because they lack startup funds.
These entrepreneurs might be raising funds themselves to start their businesses now. If they did not approach Tai Hui Consulting for investments, Feng Yu would miss out on these businesses.
Feng Yu does not want foreign funds to invest in these companies. If he let these foreign investors take advantage of these companies again, he would have wasted his second chance in life!
“Old Sun, how can I let those capable people think of asking investments from us when they are going to set up their businesses?” Feng Yu asked.
“Look for us for investments to start their business? Many companies are doing it now.”
“No. I am talking about those who have some money, but not a lot. They might not consider us.”
“Can we approach them proactively?” Sun Lijie asked.
“This is also a solution, but it will not be effective.” If they go to them, they might not agree. The best solution is to let them approach Tai Hua Consulting. Even 1% more shares of the company, is also considered high profits in the future.
“Err… In my hometown, there is a government policy, the Entrepreneurship Support Program. The government will help the entrepreneurs get loans and approvals from the government agencies. Of course, their businesses must be within the local government’s jurisdiction and sign an agreement that they will not move to other areas. We can also provide such programs or loans.”
Feng Yu was interested. “How does this work? Tell me the details.”
Sun Lijie saw Feng Yu is interested in his suggestion, and he continued. “This is only an idea, but I need your inputs to make it work. We can let others know that we will be providing low-interest loans, with lower requirements and checks than the banks. I believe the people on your name list will be interested. But the loan amount they can get from our company will not be high. The amount must be enough for them to start their business, but not enough for them to develop. When they get loans from us, there must be an additional clause in the contract. If the company is unable to repay the loans, the company’s shares will be used to repay the loan. When the company requires more funds from investors, we will be the priority if we will match the conditions of other investors.”
Eh? This is a good idea. At least, Tai Hua Consulting will get some advantage. This is similar to startup funding, and China still does not have such investment plans. But just like what Sun Lijie said, this solution still has some loopholes.
For example, how are they going to gauge the loan amount? If the loan amount is too lower, the other party will not be happy, and Tai Hua Consulting will leave a bad impression with them. If the other party knows Tai Hua Consulting is only after their company’s shares, they might not get loans from them. Also, when the company is raising funds, the other party might get someone to impersonate as an investor to trick them.
Nevertheless, this is a good solution, and Feng Yu will get an opportunity to get in touch with these future successful entrepreneurs earlier. It will be terrific if they are willing to sell their company’s shares to Feng Yu, like Wang Zhixi!
“This idea might work, but we need to think about the details. Discuss this idea with the rest of the people in the company and give me a detailed proposal. We must place restrictions on these companies, but at the same time, they must not feel that we are imposing too many restrictions on them. Also, monitor those foreign investors closely, especially the people on the name list. I don’t care what you do. They must not accept any investments from foreign investors!”
“I will prepare the proposal and show it to you.”
“Old Sun, don’t tire yourself out. I know the company is short-handed now, and everyone is overworked. I don’t mind you all making minor mistakes, but I do not want to see your all making any major mistakes. Also, I do not want others to know about the name list except for those few management staff.”
“Those people were carefully selected based on their characters. When we hire them, we had followed your instructions and checked their character first before their ability.”
Someone capable might bring high profits for the company, but at the same time, this person might bring problems for the company.
Feng Yu felt a person’s character is more important. Everything else can be trained, but a person’s character cannot be changed easily.
Many companies do not like to hire people who job hops often. Such people must have a problem with their character!
Most of these people do not have patient, loves to complain, unable to work in a team, etc. if they hire such people, the whole company will be affected.
Two days later, Sun Lijie returned with a proposal.
This proposal is over ten pages and is very detailed.
Feng Yu could tell Sun Lijie, and his team had put in lots of effect on this proposal. He read it and felt it is very similar to seed funding.
“Old Sun, this is a good proposal, and all the terms are clear and concise. I think this can work.”
Sun Lijie sighed with relief when he heard what Feng Yu said. The past two days, he had been thinking about this proposal even after work hours.
Sun Lijie wants to prove himself in front of Feng Yu!
Of course, Sun Lijie also want to have some achievements, because Feng Yu is very generous when he is satisfied.
“Then, I will issue the memo and notify the advertising department to change our advertisements?”
“Ok. If our advertising budget is not enough, you can increase it. We must not miss out on some good investments because we want to save on advertising.”
Feng Yu’s investments are increasing, and in the future, he will acquire more companies. If he continues to run his companies this way, it will be too troublesome. It’s time for him to set up a holding company!
Translator’s notes:
Seed money
