Xinhuanet Shijiazhuang, May 2 (Reporter Zhang Tao, Zhang Honghe) Boshen Tools Co., Ltd. has grown from a "small workshop" with only a dozen workers and a donation of 300,000 yuan to the company 15 years ago. Multi-person, annual sales income of nearly 400 million yuan, the country's largest diamond tool manufacturing enterprises. Chen Huairong, chairman of the company, said that private enterprises are small, and they must establish the integrity concept of large companies when they start a business, and win the market by continuous technological innovation. Enterprises have strong strength, don't always think about expanding the scale to "bigger", and want to "do long" with high quality.
"Private enterprises are small, and they must first establish a good faith concept when starting a business."
At the end of 1994, the 40-year-old Chen Huairong and four colleagues resigned from the state-owned Shijiazhuang Coal Mine Machinery Factory and founded Boshen Tools Co., Ltd. They took out all the savings and borrowed money from relatives and friends and borrowed from the bank to make up 300,000 yuan of registered capital. At that time, the factory buildings and equipment were rented, with only a dozen workers.
Diamond tools are the only high-quality and efficient tool for cutting and polishing non-metallic hard and brittle materials such as stone, glass and concrete roads. China's diamond tool industry started relatively late. At that time, the domestic market was mainly occupied by Japanese products. Such products have no national standards in China, and there are no special equipment and process recipes. Basically, no mature technical materials can be applied.
Chen Huairong, chairman of Boshen Company, said that after the first batch of products were produced, he personally led the staff to the door-to-door sales promotion. Because they were not recognized, they were often rushed out. By May 1995, the product could not be sold, the money could not be returned, and the company was on the verge of bankruptcy, and he was so anxious that he cried. Is life or death? "Private enterprises are small, and they must first establish a concept of honesty when starting a business. If it is difficult, they can't learn to engage in counterfeiting." Chen Huairong said. "When you see the door, you can go in and go in, until you can put it on the shelves of people's stores or try it out in the factory." They also try to "pay later", gradually gain sales, and actually complete sales of 6 million yuan by the end of the year. amount.
With genuine products, Boshen achieved sales of 12 million yuan in 1996 and a profit of 4 million yuan. Chen Huairong said that at the time, each shareholder had hundreds of thousands of yuan. Some people advocated buying a house and buying a car. However, he still persuaded everyone to decide to expand the production scale in the Shijiazhuang Development Zone. In 1998, Boshen Company had its own production workshop, built a research building, quality inspection room, bought large equipment, and achieved sales of 40 million yuan. They have jointly carried out project research and development with internationally renowned companies, and have more than 90 national patents. More than 20 product projects have been listed as national, provincial and municipal key projects.
"As long as you have core technology, foreign markets are not terrible."
By 1999, Boshen, which had developed into a national industry leader, began to plan to enter foreign markets. Chen Huairong said that in the eyes of some foreign businessmen, Chinese products are regarded as "continental goods", which is synonymous with low-end products.
"Foreign markets are not terrible, as long as they have core technology. We have fully proved that 'Made in China' is not only low-end goods with practical actions." Chen Huairong said that if you want to change people's ideas and let the market accept you, the key lies in their own excellent products. And accurate market positioning.
The development of the enterprise is inseparable from the support of talents. While introducing a large number of advanced equipment, Boshen has recruited and recruited more than 100 university graduates and senior technical talents from all over the country in order to keep pace with the development of the world diamond tool industry. At present, the company has 8 doctoral students, and also hired the chief scientist of the national high-tech new materials field and several experts in the field as the company's perennial technical consultant. Each year, a large number of scientific researchers are selected to conduct training and research abroad, and extensive technical exchanges and cooperation relationships have been established with the world-famous De Beers Company and Germany Feiyu Company. At present, Boshen has established cooperative relationships with merchants from more than 30 countries in Europe, America and Asia.
"Do not ask for 'bigger' but ask for 'long time'"
Chen Huai-rong said that he often thinks about a question: Why are many of the world's top 500 companies prospering for hundreds of years? The key is to have advanced and long-lasting management. He warned himself and his staff: Don't always think about expanding the scale to "bigger", and thinking about "doing a long time" with high quality, he likes "simple and forever".
Chen Huairong said that doing business and making money is totally two concepts. In the past two years, the company has proposed that "the company has money, can invest in real estate, mine, and make more money." He resisted such temptation. In 2004, a 60 million yuan oil machinery subsidiary was also stripped out, in order to concentrate on the production of his diamond tools.
In order to embed the advanced management concept into the enterprise, he persuaded the four elders who had started his business to retreat to the second line, specializing in directors, and hired more than 40 talents with management experience to be senior executives. Most middle and high-level backbones hold shares in the company and their shareholding ratio is relatively uniform. Reasonable equity arrangement not only reduces the cost of agency, but also prevents the disadvantages of family control and monopoly, and more effectively motivates the middle and high-level employees of the company.
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