Huayu started as a substitute director

Chapter 368 Protagonist’s Consciousness

Loans are also a form of financing!
It is really easy for entrepreneurs with background and help to obtain a lot of funds and resources.

If it weren't for Liu Tianxian, Fang Hong would have started very slowly. Even with the transfusion from the United States, the transfusion capacity would not be enough given the size of Chang'e Technology.

In the evening, Fang Hong, Liu Tianxian and the leadership of Chang'e Technology had dinner with my uncle's bank managers.

Since they gave us so much money, we should at least entertain them and have a meal.

After eating and drinking, my uncle, Liu Tianxian and Fang Hong found a small private room to talk alone, while the bank managers booked a room to stay. The discussion would last for a few days.

What we discussed before was just the general direction. After the details are finalized, we will sign the loan agreement.

The leadership of Chang'e Technology also disbanded.

"Thank you, uncle." Liu Tianxian grabbed her uncle's arm and looked very happy.

This solved a big problem for her and Fang Hong.

"I'm just a middleman. Whether you can achieve something depends on yourselves." Uncle looked at Fang Hong who was sitting opposite him.

This was said to him.

"I won't let you down." Fang Hong promised.

My uncle asked, "Have you figured out how to spend the money?"

"The plan to acquire Shanda Literature remains unchanged. Software development and technology research and development all require high-end talents. I plan to start with talents first." This is what Fang Hong could think of for the time being.

He didn't know how to spend so much money at once, and he planned to use it mostly to build data centers and network infrastructure.

Bilibili and Chang'e Video are all video software, which definitely require investment in technology research and development, recommendation algorithms, video generation, artificial intelligence models, etc.

These are all in preparation for short videos. For example, when shooting a video, if you want a certain effect, you can generate special effects or generate a certain type of video.

In addition, the recommendation algorithm logic and the research and development of artificial intelligence require investment.

ByteDance’s success is not just the success of its recommendation algorithm, but the application of artificial intelligence technology to mobile application scenarios.

I think everyone is familiar with the beauty function, which is part of artificial intelligence.

Therefore, technology is an area that must be continuously invested in.

In fact, developing a software platform is not difficult. What is difficult is the cost of data maintenance, platform operation, big data algorithms, research and development, and marketing.

How to ensure that videos are not stuck, have high definition and are smooth at the same time is a test of basic network infrastructure and technical optimization.

So what he lacks is high-end talents, the kind of technical talents who are highly professional and can stand on their own.

Programmers are everywhere, and as long as you have money you can find people to do the work, but high-end talents are indeed rare.

"Then how are you going to recruit?" my uncle asked again.

"Go to schools and society and recruit people from both sides," Fang Hong said.

"It's good that you have this awareness, but these are not the best talents. Let me tell you, the talents in school are inexperienced after all. If you want experienced people, go to major companies, both abroad and domestically. This is the quickest way." His uncle told him.

He had no choice but to give this person some advice in order to prevent his niece from becoming a debtor in the future.

"We have been trying to do it, but it is difficult. All companies are recruiting such people. If you want them to come to work willingly, you have to be attractive enough. And it is also difficult to retain people. If you poach them, they can also poach you." Fang Hong also understands the psychology of those senior talents.

But how to start and how to create attraction is a difficult problem. The salary level of Chang'e Technology is not higher than those of large companies, and its attractiveness is also limited.

So this is what worries him a lot. Even if you have a forward-looking vision, it will be useless if you don’t have good talents to work for you.

Those programmers cannot play a decisive role.

What really plays a role is the top-level planning, which leads the direction; the middle-level coordination of resources to achieve the goals; and the bottom-level coding.

So even though Chang'e Technology has a large number of people, they are all programmers and there are very few mid-level and senior talents.

"There are several ways. One is the option pool. You can release 100 million options to middle-level managers, technical personnel, and people who have made certain contributions. After the company develops in three to five years, you can buy them back at a certain price, which is equivalent to giving them money."

My uncle continued, "This type of stock option will not have any impact on your decision-making, but it can also give employees a sense of being the owner of the company. This is a way to bind employees with interests, and it is also a kind of attraction."

Fang Hong was stunned. He knew the operation but didn't know the details.

"If you want to go public, these options can be sold as stocks, but they will automatically convert into stocks after a certain number of years. Of course, options are definitely more favorable than stocks. For example, if stocks are 2 yuan, you can sell options to your employees for 1 yuan. When the stock price goes up, your options can also go up with it. This is also a way of financing."

His uncle taught him, "You can also let employees with options sell their options to the company at a certain point in time, or pay a certain amount of money to convert them into the company's stock after it goes public. The price is predetermined. For example, if your stock price is 10 yuan, you can ask them to pay 5 yuan and then sell them on the market. This way they can make money and the company doesn't have to pay out money." In other words, he can set up an option pool of 1 million shares and only designate certain employees to buy them. By selling them to them for 1 yuan, he can raise million yuan.

In the future, when the company makes money or goes public, the option price will also rise accordingly. They can choose to sell it to the company, or they can choose to convert it into shares after paying some money and then cash it out in the market.

If it is finance, Fang Hong can use the option pool to motivate employees and agree to go public in three years. If the issue price is 10 yuan, then only 5 yuan is needed to buy the company's stock.

Then it’s up to them whether to hold on or cash out. It’s equivalent to Fang Hong not only retaining talents but also getting money. He doesn’t have to spend anything but just develop the company.

If he does not go public, the company must definitely take back the option shares to protect the interests of employees.

However, this is also a risk. If your company goes bankrupt or cannot be listed, what will happen to the option stocks held by your employees?
"If I don't go public, will I be able to set the price myself and put as many shares as I want into the option pool?" Fang Hong asked.

"If you don't want to go public, you can do this, but it still depends on the size of your company. You can't have a billion-dollar company and set up a tens-billion-dollar option pool. People won't believe you, so confidence is very important," said my uncle.

This is completely unrealistic and some companies even ask employees to buy the products themselves, but the employees will definitely not buy the products if the company is half dead.

This is equivalent to confidence in a company.

"And you also need to make sure you have enough funds to redeem the shares in the option pool based on your company's revenue. If you really don't know how to do it, you can find a third-party evaluation agency to design an option pool for you."

My uncle said again: "Actually, to put it simply, as long as you can ensure that employees who hold option shares can cash in and make money, then that is the best system design."

Some companies design option stocks that are perfect, but the company's development is not as expected, the revenue is not good, and when the time comes to cash out, there is no money to be made. What's the point?

So as long as it can ensure that employees can cash in and make money after receiving their options, no one cares how you do it.

Fang Hong roughly understood that this method is suitable for start-up companies. It gives employees an incentive and a sense of belonging, a way to retain them, and a way to attract people.

It would have been better if Yutu had been designed this way at the time so that it could benefit more people.

He designed the Yutu profit-sharing model to be complicated. If he put 1 million shares directly into the option pool, anyone who wanted to buy could buy it for 1 dollar.

1 yuan was just a token price and only insiders could buy it. After all, Yutu was already very profitable at that time, and everyone knew that 1 yuan was a sure profit.

After one year, we will give them one share and then take it back when the price rises to 2 yuan. How high it goes depends on how profitable the company is. Each person can only buy a maximum of million shares, so at least people will benefit.

Of course, senior managers cannot buy it, only middle managers or technicians with certain skills.

This design is much better and can allow more people to make money. His design benefits too few people and is not conducive to development needs.

Options are the most advantageous tool to make some people rich together, and of course they also share risks.

Liu Tianxian had been listening quietly. She didn't quite understand these things, but she knew that it would definitely be beneficial to Fang Hong Fazhan.

"The second is the partnership system. You can recruit people who you think will play a decisive role in your future development as partners. Partners need to allocate equity and have the power to make decisions on the company's decisions. Of course, they also have to bear the company's responsibilities. You can consult others in this way."

My uncle said again: "The sooner the equity is distributed, the better. This will allow decision-makers to react immediately and avoid delays. Of course, we also need to identify a core founder, and that's you."

My uncle talked a lot tonight and explained clearly everything he knew about the company's system and development model.

It also pointed out his problem!
This company cannot be run by Fang Hong alone. It’s not because of anything else, but because he lacks ability. Apart from vision, he doesn’t know anything else.

If you don’t understand technology, development models, or the specific operating rules of the industry, you need a team to do anything.

Jack Ma has the Eighteen Arhats, Tony Ma has the Five Tiger Generals, what does Fang Hong have? Just rely on Liu Tianxian?

For example, regarding the financing and loan issue this time, no one from Chang'e Technology came out to help Fang Hong find investors or banks to solve the problem. He was just busy doing everything on his own.

No one could give him any advice, and he was busy all the time without any result. It was Liu Tianxian who helped him solve the problem.

The top management of Chang'e Technology has no enthusiasm at all. They just work step by step. They do whatever your principal says. If they don't do anything, it's not wrong. If they do less, they will make fewer mistakes.

They are paid anyway, so how much the company earns has nothing to do with them? It's just that the salary is higher.

To put it simply, there is no sense of protagonist. There is only one owner, Fang Hong, in this company, and the others are all employees.

This is a continuation of Yutu's previous approach. Yutu was also alone at the beginning, working hard on his own, and there weren't many people to help him.

It was only later that Chen Zhixi obtained the shares and completely supported his film and television career, and only then did he develop a sense of ownership.

Projects like "Beijing Love Story" and "Lost in Thailand" were brought in by her herself, just because Yutu made money, she was the one making money, and she also gained status.

When evaluating the major leaders in the film and television industry, Chen Zhixi is also on the list. With money and status, people are more motivated.

Before, Fang Hong was the only one working hard on making movies.

(End of this chapter)