Extraordinary Genius - Chapter 174 – Investing in a Design Company
After leaving Li Mingde’s office, Feng Yu brought Liu Michael to his allocated office in the Machinery Company. No matter what, Feng Yu was still a shareholder of the company, and this office made him hated the people at the Machinery Company more. He was representing the Deputy Manager Feng Xingtai and was also the person overlooking the Motorcycle Factory, and his office was smaller than a deputy supervisor!
The reason given to Feng Yu was because he was not always at the company and Feng Xingtai also did not go to the Machinery Company often too. It would be a waste of space. Damn, Feng Yu imagined when he becomes the major shareholder, he would want a big office like those CEO offices in his previous life. It must be more than 200 Square Meters. The first impression of the visitors will be — Rich!
“Manager Feng, is there anything you want me to do?” Liu Michael was more and more respectful of Feng Yu. The things Feng Yu told him had inspired him a lot. If he were to set up his company in China, then he must incorporate the Chinese elements into his designs and not copy those European and Americans style. He seems to discover the direction of his company.
“Other than the 3 designers in your company, how many other staffs do you have?” What’s the total capital?”
Liu Michael hesitated for a while and said: “There is a total of 7 people. We, 3 designers also have to look for clients, and there are a full-time accountant and a part-time accountant who is also helping with the documentation works. There is an admin staff who doubles up as the receptionist. There is also another staff who does almost everything. The setup capital was from the 3 of us. The 2 of them invested 30,000 RMB each and I invested 40,000 RMB. The total capital is 100,000 RMB.”
Feng Yu nodded. 100,000 RMB to set up a design firm was considered a considerable investment. If the 3 designers in the company were as good as Liu Michael, then this company would have a good prospect.
“You know about Wind and Rain Humidifiers?”
“I know, but it is not suitable for Shanghai. I heard that it is manufactured here in Bing City. The design is very nice.”
“That is my company’s product. The humidifier is also designed by me.”
“What? You are the designer?” Liu Michael had an exaggerated shocked expression. Although Feng Yu knew that he was acting, he still felt good.
Damn. Only one sentence? Carry on praising me! Feng Yu stared at Liu Michael. He hated those people who praised him and stopped halfway.
“That’s right. But now, I have an idea. Your company is too small, but I feel that your company have good prospects, or should I say that I think that your industry has a good prospect. Are you interested in letting me invest in your company?”
If what Liu Michael told him was right, his 2 classmates were as good as him, had designing experiences and worked overseas before and were able to sketch a design based on the client’s request on the spot, then this company would have lots of potentials.
What would be popular in future? The others might not know but Feng Yu knew1
But Feng Yu’s designing skills suck. It was fine for the humidifiers and the electric fans. But he felt the refrigerators he designed was too ugly!
Feng Yu was troubled as he could not convert his ideas into drawings. Now he met someone skillful, and he wanted to recruit him.
He does not worry that this designing firm would lose money. He had lots of ideas, and with the 3 skillful designers, he could be sure that this company would rack in big bucks in future.
“What did you say? You want to invest in my company?” Liu Michael was surprised and elated. There’s somebody who thinks that his company has potential and this somebody was a wealthy big boss. This meant that his company would have lots of growth potential!
“Of course. I feel that this industry has great potential and all of you will be successful. How is it? You want to discuss with your partners?” Feng Yu smilingly asked.
This was easier than what Feng Yu expected. This Liu Michael did not reject his intention of investing in the company. Feng Yu does not know that this company was in the red and this Machinery Company’s deal was the first significant deal they got since they set up their company. The amount was only 5,000 RMB.
Feng Yu’s thinking was still in his previous life where a good product design would cost at least a few hundred thousand or even a few million. Some designers even receive a percentage of the profits for every product sold. But now, 5,000 RMB for the design was considered the highest in the industry. If it wasn’t to piss Feng Yu, Li Mingde was only willing to spend 2,000 RMB at most, or he would just ask his engineers to design.
Liu Michael discovered that when he compared to Feng Yu, his designing concepts were too far off. When he was interning in the US, he heard from his seniors that designs must be practical and still be beautiful. A design is considered a failure if these 2 points were not met!
Liu Michael immediately used the phone in Feng Yu’s office to make a long-distance call to his 2 classmates. He told his classmates about Feng Yu’s offer in front of Feng Yu. When his classmates learned that he had met a big boss in Bing City who wanted to invest in their company, they were excited.
Both of them agreed immediately. It’s only an injection of funds, and they would still be holding on to their shares. This was better than they lose all their capital. As long as they have the funds, they could promote their company and get more deals to make more money. With more money, they could grow their company further.
“Manager Feng, they do not object to you investing in the company. But how much do you intend to invest?”
Feng Yu thought for a while and showed 4 fingers: “400,000 RMB!”
“What? 400,000 RMB?” Liu Michael was shocked. He never expected Feng Yu’s investment was such huge amount. He knew that Feng Yu wanted to control his company, but there were only 3 designers in the company. Was it really worth investing so much money? This Feng Yu was not afraid of losing money?
“That’s right. 400,000 RMB. This way, I will have an 80% stake in your company. Am I right? The 3 of you can split the earnings from this deal first, and I will invest after this deal is completed. As for the developmental plan for the future, I will discuss with you some other time.”
It’s only 400,000 RMB. Was it a lot? Feng Yu would let this company do the design for the bladeless fans and the hand dryers soon, and it will increase the market rates for product designs!
There are still advertising designs, and this will be an essential revenue source for the company. The advertisements in China now was too lousy. The following 2 years will be the golden age of advertisements in China. Feng Yu does not believe that his company would not make any profits during this period of time!
The property market boom was coming too. The exterior designs of the buildings and the interior designs, furniture, etc. designing each one of these can make lots of profits.
Furthermore, Feng Yu still have essential products for them to design. For example, Saloon Cars!
A good car does not only look at the specifications. The exterior and interior were also critical. For instance, Audi A8 which was selling well overseas was not doing well in China. It was because it looked like A6 and the exterior look of the car does not highlight the fact that it was a luxury car. This was not in-line with the flamboyance nature of the Chinese!
How many low-key wealthy people were there?
Liu Michael called his classmates again, and they were shocked by Feng Yu’s investment too. They hesitated for a while and agreed. With this additional funds, their company would progress faster, and they could realize their dreams!