Learning the ropes of running a business
August 25, 2012, Saturday
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Print Edition
Print Edition
CHEN Dong, a Fujian Province native, learned the hard way that starting up a business is no piece of cake.
Fortunately for him, the Shanghai Zizhu High-Tech Industrial Development Zone in Minhang stepped in to help him when his new company hit low ebb. Now back on his feet, Chen, 29, credits the zone for his success.
In 2007, after graduating from Shanghai Jiao Tong University with majors in control theory and control engineering, Chen founded Shanghai Yuanzhi Automation Co Ltd with several classmates.
"To be honest, the idea of creating my own business actually came to me like a flash out of the blue," said Chen. "I hold a master's degree, and I have some valuable experience in the automation, so I thought I would put my expertise to work."
Like most young entrepreneurs, Chen discovered that dreams and reality are often far between.
In the first year, aided by support from the Shanghai Technique Business Development Foundation for College Students and another foundation under the Zizhu park, Yuanzhi received orders valued at about 1 million yuan (US$157,193).
But then the global recession hit.
"We were not fully prepared for the crisis," said Chen. "We weren't well positioned in the market."
The young company suddenly found itself cash-strapped.
Worse, some of the shareholders quit the company in early 2009 because of disagreements about the company's development strategy and management.
Chen said Yuanzhi's whole focus at that time was on technology and not enough attention was paid to marketing and financial management.
"Yuanzhi looked more like a technology team than a company," Chen admitted.
To rescue the situation, Chen made a hard choice. He relinquished his work on the research and development team to concentrate on marketing.
"The task was very difficult for me because I didn't have experience in that field," said Chen.
Fortunately, the Zizhu zone stepped to help. The Youth Business China Zizhu Office not only provided funding for the company but also arranged for veteran business advisors to give Chen some needed advice.
"The advisors were senior professionals in the automation industry, and they knew very clearly what we needed to do, both from the standpoint of technology development and also company management," said Chen.
The zone also helped the company broaden its financing channels, which eased its capital crunch.
Perseverance and hard work paid off.
"We know that our technology was our strong point, so we used it to do marketing," Chen said. "I always believed that we would survive. We couldn't give up."
In 2011, Yuanzhi's sales rose to more than 6 million yuan, and this year they are expected to reach 10 million yuan. The company now owns six patents and 10 software copyrights.
Its products are sold to industries such as nuclear power, environmental protection, water processing and natural gas transmission.
"The products we have now are very different from what we started with," Chen said. "We have learned as we have grown. Our goal is to become a big industrialist in China."
Yuanzhi recently won an award from the zone as its most successful automation firm. Chen seems well on his way to fulfilling his dream.
Zizhu High-Tech Industrial Development Zone
Founded in 2002, the Zizhu High-Tech Industrial Development Zone encompasses six principal sectors: integrated circuitry and software, new energy, aviation, digital content, advanced industrial materials and life sciences.
Today, 452 companies are located in the zone, including Intel, Microsoft and Coca-Cola. About a quarter of the companies operate with foreign investment.
In 2011, income from companies in the zone was an estimated 30 billion yuan (US$4.7 billion).
The zone has supported nearly 100 young entrepreneurs in start-up businesses.
Address: 3/F, Bldg 1, 555 Dongchuan Rd
Tel: 6121-2288
Fortunately for him, the Shanghai Zizhu High-Tech Industrial Development Zone in Minhang stepped in to help him when his new company hit low ebb. Now back on his feet, Chen, 29, credits the zone for his success.
In 2007, after graduating from Shanghai Jiao Tong University with majors in control theory and control engineering, Chen founded Shanghai Yuanzhi Automation Co Ltd with several classmates.
"To be honest, the idea of creating my own business actually came to me like a flash out of the blue," said Chen. "I hold a master's degree, and I have some valuable experience in the automation, so I thought I would put my expertise to work."
Like most young entrepreneurs, Chen discovered that dreams and reality are often far between.
In the first year, aided by support from the Shanghai Technique Business Development Foundation for College Students and another foundation under the Zizhu park, Yuanzhi received orders valued at about 1 million yuan (US$157,193).
But then the global recession hit.
"We were not fully prepared for the crisis," said Chen. "We weren't well positioned in the market."
The young company suddenly found itself cash-strapped.
Worse, some of the shareholders quit the company in early 2009 because of disagreements about the company's development strategy and management.
Chen said Yuanzhi's whole focus at that time was on technology and not enough attention was paid to marketing and financial management.
"Yuanzhi looked more like a technology team than a company," Chen admitted.
To rescue the situation, Chen made a hard choice. He relinquished his work on the research and development team to concentrate on marketing.
"The task was very difficult for me because I didn't have experience in that field," said Chen.
Fortunately, the Zizhu zone stepped to help. The Youth Business China Zizhu Office not only provided funding for the company but also arranged for veteran business advisors to give Chen some needed advice.
"The advisors were senior professionals in the automation industry, and they knew very clearly what we needed to do, both from the standpoint of technology development and also company management," said Chen.
The zone also helped the company broaden its financing channels, which eased its capital crunch.
Perseverance and hard work paid off.
"We know that our technology was our strong point, so we used it to do marketing," Chen said. "I always believed that we would survive. We couldn't give up."
In 2011, Yuanzhi's sales rose to more than 6 million yuan, and this year they are expected to reach 10 million yuan. The company now owns six patents and 10 software copyrights.
Its products are sold to industries such as nuclear power, environmental protection, water processing and natural gas transmission.
"The products we have now are very different from what we started with," Chen said. "We have learned as we have grown. Our goal is to become a big industrialist in China."
Yuanzhi recently won an award from the zone as its most successful automation firm. Chen seems well on his way to fulfilling his dream.
Zizhu High-Tech Industrial Development Zone
Founded in 2002, the Zizhu High-Tech Industrial Development Zone encompasses six principal sectors: integrated circuitry and software, new energy, aviation, digital content, advanced industrial materials and life sciences.
Today, 452 companies are located in the zone, including Intel, Microsoft and Coca-Cola. About a quarter of the companies operate with foreign investment.
In 2011, income from companies in the zone was an estimated 30 billion yuan (US$4.7 billion).
The zone has supported nearly 100 young entrepreneurs in start-up businesses.
Address: 3/F, Bldg 1, 555 Dongchuan Rd
Tel: 6121-2288
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