Chapter 481: Preparing for Financing and Development Planning

Xiaogu Company office.

Shen Yan leaned lazily against the sofa, head bowed as he toyed with a black mobile phone; that's right, this was the Xiaogu 1 engineering prototype that the company had just finished developing.

After experiencing it, as for the impression...

The operation was quite smooth, and it had every function one could expect.

In the current mobile phone market, it could be called a high-end device without a doubt.

It was more than enough to serve as a stepping stone to break into the market.

After all, Chen Jun had extremely high requirements for hardware, refusing to use anything but Apple suppliers and Samsung flagship suppliers, which was what created the current Xiaogu 1.

Of course, it was still a distance away from the Apple 4.

Not to mention the vast gap in technology, one was a newcomer just entering the mobile phone industry, while the other had been grinding away in the industry for 4 years; there was a significant disparity in the details as well.

At this moment, besides Shen Yan, Lin Bin and Chen Jun were also in the office.

The three of them sat facing each other on the sofa.

Taking advantage of the time Shen Yan spent toying with the phone, Lin Bin introduced: "Comparing the data from all aspects, the Xiaogu 1 is significantly better than the Samsung Galaxy S currently selling for 4499 on the market. The cost is currently immeasurable, but one thing is certain: Samsung is making huge profits from it.

Once the bug debugging is finished, the Xiaogu 1 can begin mass production.

If we don't consider the innate conditions, we have a high probability of defeating Samsung."

Upon hearing this, the expressions on Chen Jun and Shen Yan's faces remained unruffled, as calm as a lake.

These innate conditions were very particular, including brand awareness, suppliers, foundries, and every aspect from the product launch to reaching the user's hands.

No matter which link had a problem, it would be a severe blow.

However, since things had progressed to this point, there was naturally no reason to turn back. Chen Jun reminded Shen Yan: "There is only a little over 20 million left in the company account. While the phone is still in the debugging stage, it is time to release the news and launch the financing plan."

This was to raise funds for the company to expand its scale, and at the same time, to find others to share the investment risk.

Knowing this full well, Shen Yan naturally had no objections.

"Let's do as Uncle Chen says."

Chen Jun nodded and said again: "At this stage, tell me about the company's future development plan. I haven't had time to think about these things, and I'm feeling a bit uncertain."

This time, Shen Yan didn't hold anything back. He put down the phone and said seriously: "Then let's start with the selling price. Uncle Chen said before that in the internet era, the cheaper something is, the easier it is to open up the situation; our views are consistent.

I suggest selling the phone at cost price, with capturing the market as the primary goal."

Before Shen Yan could finish, Lin Bin, who was middle-aged and steady in temperament, couldn't help but interrupt: "Selling at cost price? Then what is the point of us developing the phone?"

"Don't be impatient, let Shen Yan finish!" Chen Jun raised his hand to signal him to calm down.

Lin Bin also knew he had been too hasty, smiled apologetically, and said no more.

Shen Yan didn't take it to heart at all and continued: "Selling the phone at cost price doesn't mean we can't make money. Think about it, if 100 million out of China's 1.3 billion population use the Xiaogu Mobile, how much profit can be generated from hardware repairs when the phones have issues?"

The two were struck as if by lightning, their brains buzzing as if countless mosquitoes were flapping their wings by their ears.

It could actually be done this way? This was truly an eye-opener!

But the feasibility was very high.

"Continue!" Chen Jun suppressed the excitement in his heart.

Lin Bin even took out a small notebook, his eyes flashing with intense thirst for knowledge.

It was like a little apprentice asking a master for guidance.

"Hardware repair is only one aspect. Let's talk about software. Doesn't the phone have a Xiaogu Application Store? For example, every time a user downloads QQ from the store, doesn't Tencent have to pay a channel fee? The same applies to other apps. As they accumulate, won't the money come pouring in?

There's also advertising revenue, pre-installed apps, Xiaogu Mall...

I won't list them one by one; I believe you already have a clear understanding of the company's profit model."

Shen Yan's explanation was concise and comprehensive. His calm tone contained content that was deafeningly insightful, making Chen Jun and Lin Bin suddenly enlightened, their heads nodding like little ducks.

It was inexplicably cute.

Wasn't this the most common trick of QQ? Using the slogan of being free, while actually building an ecological industrial chain based on users.

It was merely a change in mindset.

Chen Jun slapped his thigh hard and shouted excitedly: "Shen Yan, you really are a genius to be able to find another way and think of this profit model. In this way, we inherently occupy a huge price advantage.

With a little comparison, it's obvious how customers will choose.

By the time others discover our business philosophy, it will already be a long time from now."

Lin Bin also looked at Shen Yan as if he were a god. He had known the other party was an internet genius, but this kind of business thinking... it was no longer appropriate to call him a genius.

He was a freak of nature!

"Haha! I just had a sudden inspiration."

To this, Shen Yan just smiled faintly. He was merely borrowing business thinking from later generations; there was nothing to be proud of.

Chen Jun naturally didn't know what he was thinking, only feeling that this young man was truly a business prodigy whose wild and imaginative ideas were at least an era ahead of the market.

If such a person couldn't succeed, who could?

Under these various advantages, he seemed to have already seen the scene of Xiaogu Mobile sweeping the country.

"Suddenly I don't want to seek financing anymore. I'm not willing to send money to capitalists for nothing," Chen Jun lamented.

But without financing, where would the money come from to mass-produce phones?

Without high sales volume, how could they quickly capture mobile phone market share?

At the same time, he also wanted to use the opportunity of financing to dilute the equity of the core staff, thereby strengthening his control over the company, and additionally, he had to give Shen Yan more shares.

To firmly bind this business prodigy to his own warship.

Hearing Chen Jun's nonsensical words, Shen Yan couldn't help but find it funny, but he didn't take it to heart.

Then Chen Jun asked for advice on whether there were any other ways to compress costs.

There was no way for raw materials for the time being, unless the production scale was expanded later.

"I suggest abolishing the traditional store sales method and changing to e-commerce online sales. Customers place orders online, and the manufacturer ships by courier, saving the middleman from earning the price difference."

This is equivalent to users paying in advance, and Xiaogu Company can use this money to pay the contract manufacturers, significantly alleviating the problem of tight capital.

It kills two birds with one stone!"

The more Chen Jun listened, the more excited he became; Shen Yan really considered every aspect of the problem.

These various insights were of nothing but benefit to Xiaogu Company.

At this moment, Shen Yan gave him another shot of a tranquilizer: "Easy Pay, under our company, can serve as a third-party payment channel for guarantees, so that users will feel more at ease placing orders."

This could also be considered a bit of selfishness on Shen Yan's part, to pull in more users for Easy Pay.