In the development of recent years, Huawei Group has emerged strongly in the Chinese market with its excellent mobile phone products and advanced communication technology, becoming a 100-billion-level enterprise. However, you may not know that Huawei Group was in a very difficult situation when it was founded.
At that time, the founder Ren Zhengfei went to the bank for a loan because of lack of funds, but the bank bluntly said that it would not lend. A company that even banks looked down upon could eventually grow to such a point. How did Ren Zhengfei do it?
1. The story of Ren Zhengfei
Like many ordinary people, Ren Zhengfei was not born into a wealthy family. He was born in a poor mountain village in Guizhou Province in 1944. Although his parents were rural teachers, their income was very meager. In such a turbulent era, the living conditions of the family were naturally very poor. In addition, there were many children in the family, and the financial conditions were also very tight.
However, Ren Zhengfei’s parents did not give up on his education. With the affirmation and support of his parents, Ren Zhengfei's academic performance was also very excellent. In 1963, he was admitted to Chongqing Institute of Construction Engineering. During his college career, Ren Zhengfei learned a lot of knowledge and accumulated life experience.
After graduating from college, Ren Zhengfei joined the army and became a construction engineer. Moreover, during his military career, Ren Zhengfei also participated in the project of a French company and learned very advanced technology and experience.
However, Ren Zhengfei's military career did not last long. In 1983, our country reformed the military and abolished the engineer branch of the infrastructure construction service. At this time, Ren Zhengfei also had to demobilize and change jobs. It was at this time that Ren Zhengfei came to Shenzhen, which was under construction.
However, an ordinary job could not satisfy Ren Zhengfei's ambition, so in 1987, Ren Zhengfei resolutely chose to resign and start a business. At that time, Ren Zhengfei was already 43 years old and had accumulated a lot of knowledge and life experience. He thought that starting a business was very simple. But who would have thought that he would soon face the test of starting a business when he just entered the market.
2. Start-up Huawei , loan rejected
In order to realize his entrepreneurial dream, Ren Zhengfei raised 21,000 yuan in funds and finally founded Huawei company . However, Huawei, which had just been founded at that time, did not have any signature business and could only earn revenue by acting as an agent for the Hong Kong company's program-controlled switch .
However, acting as an agent for other companies’ products is not a long-term solution. Only by mastering real technology can the company become bigger and stronger. Therefore, Ren Zhengfei decided to invest all available funds in the research and development of C&C08 digital program-controlled switch .
Although Ren Zhengfei’s idea is very good, the actual conditions are difficult to support it because the company’s available funds are obviously insufficient to support research and development work. So Ren Zhengfei came to the bank to evaluate the loan to solve the immediate crisis.
However, everyone knows that banks have very strict criteria for corporate loans . At that time, Huawei was still a small company, its development strength was not strong, and it did not seem to have any prospects. Therefore, bank employees Ren Zhengfei’s loan request was rejected. The
project lacked research and development funds, and banks did not provide loans. Ren Zhengfei also fell into an extremely difficult situation. However, Ren Zhengfei did not give up. He came up with a way to organize internal employees to attract investment.
In order to encourage employees, he also promised employees to reform the company's employment system and implement the so-called partner money-sharing system, so that all employees can receive shares of the company , so that employees will have the motivation and determination to perform their duties for the company. .
3. Final success
Such management thinking and employment system reform indeed made Ren Zhengfei successful. Huawei Group attracted sponsorship and successfully developed the digital remote CNC machine at that time, earning a large amount of wealth. And in the subsequent development, Huawei Group has also expanded the communications industry overseas, and has won unanimous praise from many overseas companies.
Then the domestic smartphone market began to rise. Huawei Group also developed its own smartphones, and the products were favored by many domestic people. Today, Huawei has become the leading mobile phone manufacturer and communications company in China. Their business has expanded to almost all countries in the world, and their market value has exceeded 100 billion.
Ren Zhengfei’s success is inseparable from his thinking model and unique insights into market changes. If Huawei had continued the traditional employment system at that time, it might not have achieved what it does today. In "The Famous and Silent Ren Zhengfei Biography" written by Lin Chaohua, it is recorded in detail Ren Zhengfei's entrepreneurial experience and insights on life, as well as his unique insights and thinking patterns on managing enterprises.
In his spare time, he can appreciate Ren Zhengfei's success method and apply it to his own work and life to reap his own beauty. Only those who have experienced countless setbacks and still stand up and run forward can be called successful.
