2003: Starting with Foreign Trade

Chapter 128 The Road to Industry Is Not Easy

Long business trips are a tough job, especially when you have to drive across major cities.

This was in 2005, not 2023, a time when transportation networks weren't as developed.

Reborn in 2003, Tan Jincheng did consider working in the internet industry. He traveled all over the country for business trips, and occasionally went abroad to discuss high-level topics with multinational corporations. How glamorous he was!

But after observation and research, I found that the internet these days is not something ordinary people can do. It's not that you can fool investors with your ideas and get startup funding, but when the startup results come out, it's not even certain that the company will be yours.

Because you lack the ability to hold on. Even today, Ah Dong, who is still selling CDs and is hailed by the internet as a model of self-made success, has the support of powerful forces behind him after starting his business.

You should know that Chen Dong initially only wanted to open a chain of restaurants, but it was all ruined by his employees who colluded to cheat him out of business.

Besides, even if he managed to swindle a few million in startup capital from investors, given the current internet bandwidth speed, Tan Jincheng's ideas, which are more geared towards the future of more than 10 years, wouldn't last more than a few months. Investors aren't stupid; they're burning money endlessly because they see hope in it.

Even if you know it's a good project in the future, you can't continue to invest money if there's no hope.

In this era, running a business, setting up a factory, and engaging in import and export are the key to success, the most profitable businesses, and the best opportunities for ordinary people to climb the social ladder.

If you invest 10 yuan in the internet industry, you'll most likely lose everything and end up with a mountain of debt. But if you invest 10 yuan in a trading company, at the very least you'll have a few computers left, and you can even make a few thousand yuan by subletting the office.

But running a business also means hard work, and that's exactly what Tan Jincheng is going through right now. He's on a miserable business trip, heading to Suzhou.

After the negotiations with Boneng Power ended, Tan Jincheng and Zhang Xupeng parted ways. Zhang Xupeng, along with two sales representatives supported by Tan Jincheng, headed to Zhilizhen in Wuxin District to investigate the children's clothing business. After the investigation, Zhang Xupeng would return directly to Beicang in Ningbo.

This was Zhang Xupeng's first time traveling alone to develop the market, and to be honest, he was very nervous. This was one of the reasons why Tan Jincheng provided two salesmen to support him.

Another advantage of going to Zhili is that nearly half of the garment factories in Zhili are from Yicheng. If Zhang Xupeng just needs to be a little shameless and recognize some fellow townsmen, it shouldn't be difficult to gather information.

Everyone has to have a first time. If Zhang Xupeng's investigation of the children's clothing market in Zhili Town can open up a new business channel for Jinpeng Trading and maintain it, it will show that Zhang Xupeng is truly capable of standing on his own.

At that time, Tan Jincheng would not mind transferring a large portion or even all of Jinpeng Trading's shares to him, because that was what he deserved.

Ever since that day when Zhang Yunhua learned on the way to visit the workshop of Boneng Power that Tan Jincheng was not even 20 years old, his attitude changed quite a bit. Having actually participated in factory management, Zhang Yunhua knew that it was very difficult to participate in factory management at the age of less than 20, let alone the founder.

As the son of the boss, the second generation of factory owners is undoubtedly legitimate, right? But there are countless examples of them being unable to control their subordinates. Factory management involves many aspects, and apart from some senior management, the employees who can stay rooted in the factory are generally quite simple in their thinking.

There aren't many power struggles or complicated procedures. If I don't like you, I just quit. I don't care who you are.

Therefore, factory management requires strong capabilities. You can fire all those who disagree with you and hire sycophants to manage in your place, but someone still has to do the work, right?

Zhang Yunhua could see the pride in Sun Yuming's eyes when he mentioned the boss's age, as if he were talking about himself. The other employees also shared this sense of pride.

Although the employee introduced earlier, named Zhang Xupeng, made a subtle smirk, Zhang Yunhua could tell from the series of conversations after entering the office that among Tan Jincheng's group, he was the one who trusted Tan Jincheng the most.

A slight pursing of the lips doesn't mean anything; didn't you see that President Tan raised an eyebrow at him earlier? Or perhaps their relationship is special.

After learning Tan Jincheng's real age, Zhang Yunhua not only did not show any disrespect, but instead paid more attention to the rest of the trip and introduced the products with more care. He even considered whether to inform his boss in advance.

"A young man with no experience is unreliable"; but it depends on the situation. A young man who can build a medium-sized factory at the age of less than 20 is certainly not that simple.

Once a factory has entered the supplier selection and procurement stage, it has already ensured that it has the ability to officially start production, which means that all the preliminary preparations have been basically completed.

It's hard to imagine that someone under 20 years old could do this. His ability is undeniable, but what about his background?

During the subsequent tour, Tan Jincheng benefited greatly from Zhang Yunhua's change in attitude and more attentive explanation. It was precisely Zhang Yunhua's dedicated explanation that strengthened Tan Jincheng's determination to launch both the 60V and 48V models.

Subsequent negotiations regarding the procurement went relatively smoothly. Although there were numerous price negotiations along the way, both parties were committed to a win-win cooperation and ultimately finalized the cooperation details.

Shanchi Automotive Industry Co., Ltd. ordered Yazhen brand lead-acid batteries from Boneng Environmental Power Supply Co., Ltd., specifically 60V 20Ah and 48V 12Ah models. The annual purchase quantity for each set is no less than 40000 sets. The purchase price is RMB 500 per set for 60V batteries and RMB 300 per set for 48V batteries. The delivery period begins in July 2005 and lasts for one year. Payment and delivery are on a monthly payment basis, with payment for the previous month's order due within the first five working days of the following month.

This is a large order totaling 3200 million yuan, and Zhang Yunhua is very excited. In other words, starting in August, the company will have an extra 260 million yuan in working capital every month.

The implications of having an extra 260 million yuan in working capital each month for a factory with nearly 400 employees are self-evident.

To some extent, Boneng could even embark on another expansion path because of this funding. When the draft agreement was signed, Zhang Yunhua couldn't suppress the fleeting ambition in his heart!

Zhang Yunhua is a professional manager at Boqi, but also a founder and one of the partners, owning 5% of the company's shares. The owner of Boqi doesn't usually handle the day-to-day operations; he's responsible for some social engagements and providing funding. The entire company's operations are managed by Zhang Yunhua.

"I have to mention it to the boss!" Suppressing his excitement, Zhang Yunhua glanced at Tan Jincheng across from him.

The young man opposite me had a smile on his face, looking completely nonchalant.

"That's impressive. He remained so calm even with orders worth tens of millions," Zhang Yunhua thought to himself, giving a silent composure.

In reality, Tan Jincheng was thinking about how to raise money. He had signed the contract and had enough funds to maintain operations and production next month, but where would the money come from in August?
And this is just the battery order; there are also motors, controllers, frames, boats, plastic parts, and so on. The amount paid to suppliers each month is not a small sum.

However, it's encouraging that the strategic change has reduced the cost of the high-end version of Flash by 100 yuan just for the battery, and the cost of the low-end version has been reduced by at least 200 yuan!
This is a good start. Other core components will also be adjusted according to this strategy, and the total cost can be reduced to below 1000 yuan. The low-end version may even be reduced to below 800 yuan.

This increases profit margins and gives them more leverage in negotiations with retailers.

"Mr. Zhang, it's a pleasure to cooperate with you. Also, may I borrow your company's fax machine? I'll send the agreement back first and have my lawyer review it. Then we can sign the formal contract, how about that?" Tan Jincheng said with a smile, extending his hand.

"Of course, I should inform my boss as well." Zhang Yunhua nodded with a smile.

At the same time, it also gave Tan Jincheng a cautious label. To be honest, entrepreneurs of his generation have a very weak sense of law. Many of them are no different from being legally illiterate, and they have suffered losses in many cases due to contracts.

Only after suffering losses a few times will one realize the importance of certain words in a contract. Tan Jincheng had this awareness at the very beginning of his business, which shows that he is a very cautious person.

In other words, the quality requirements for batteries from Flash Automotive must be in accordance with the contract standards. If there are significant differences in the defect rate or quality inspection, this young man will certainly not mind suing him.

This is something we need to discuss with our subordinates during the production process to prevent them from being careless about quality.

The two parties then discussed some details of the contract. Tan Jincheng also met the actual controller of Boneng Power for the first time, who was the boss mentioned by Zhang Yunhua. This boss's surname was Jin and his given name was Jin Chuanling, a very strange name.

He appeared to be around 40 years old, with an extraordinary air about him. His eyes were bright and piercing, his steps were firm, and he walked with the air of a dragon and a tiger. He smiled before even entering the room, and when he did speak, his voice was loud and clear.

He doesn't seem like a business owner; he looks more like a retired soldier.

"Brother Tan is a promising young man. We should keep in touch more often in the future."

After the contract was officially signed, Jin Chuanling stretched out his large hands and laughed heartily at Tan Jincheng, clearly very satisfied with how smoothly the contract had gone.

Tan Jincheng noticed that the way he was addressed upon entering was always "Brother Tan," unlike Zhang Yunhua who addressed him as "President Tan" or "President Tan." This further confirmed his suspicions.

“Of course, Brother Jin, if you have the chance to go to Beicang, we have plenty of seafood.” Tan Jincheng also extended his hand and replied with a smile.

"No problem, no problem. Ningbo is a great place, and your hometown Yicheng is also a great place with a long history and rich culture."

During the conversation, Tan Jincheng said that he was just a young man from out of town who came to Ningbo to make a living. Whether they believed him or not was up to them, and they could find out by checking.

"Of course. We wouldn't dare to boast about anything else, but when it comes to history, we Yicheng people certainly have a lot to say."

"Haha, who doesn't love their hometown, right?"

(End of this chapter)