The Real Situation in China: A Programmer's Entrepreneurial Journey
This article explores the realities of life and entrepreneurship in China today, focusing on the experiences of a programmer attempting to navigate the business world. It shares the challenges and insights gained through two different startup ventures, offering a perspective distinct from mainstream media.
Part 1: The Harsh Realities of Entrepreneurship for Programmers
Abandoning the Comfort Zone
Entrepreneurship, unlike coding, demands a complete shift in mindset, behavior, and even ethics. A programmer entering the business world must confront a starkly different reality. For instance, the speaker describes how you might have a large inventory of unsold goods, but you need to tell potential customers that stock is low to create a sense of urgency. You need to negotiate and start with a lower commission rate when you want to give higher rates.
A World of Moral Compromises
The speaker emphasizes that the transition is jarring, especially for those accustomed to the relatively sheltered world of software development. The speaker mentions how your initial value system will need to be reconstructed. It's a complete world of moral standard reconstruction. This process can be profoundly painful, forcing a re-evaluation of values, worldviews, and moral standards.
The Importance of Broader Perspective
The speaker stresses the need for programmers to step outside their coding bubble and gain real-world experience. He notes that people you consider right in the business world can be easily bribed. This is to gain insights into the realities of business dealings and the potential for exploitation. Learning to navigate these complexities is crucial for survival. You will know that something you thought was a P2P scam, which makes you put all of your money into it, ends up in nothing because the other party signed an equity transfer agreement which changes you to the shareholder from being the victim.
The Naivete of Programmers
The speaker points out how the education system and Confucian values instilled in many programmers can be a disadvantage in the business world. Qualities like sincerity and kindness, often valued in personal and professional relationships, can be perceived as naivete and vulnerability. The speaker emphasizes that it is not to become a rogue, but to avoid being cheated.
Part 2: Entrepreneurial Experiences and Lessons Learned
First Venture: Blockchain Dreams in Hainan
The speaker's first foray into entrepreneurship began unexpectedly in 2018. After securing a desirable Java developer position, he received a call from a high school classmate in Hainan who was starting a blockchain company.
The Lure of Opportunity
Enticed by the prospect of technical equity and connections to influential investors, including angel investors, key talents of the national "Thousand Talents Program," and executives from major cloud computing companies, he impulsively quit his new job and moved to Hainan.
The Importance of Worldly Experience
The speaker reflects on a critical lesson: lack of experience can lead to poor judgment and vulnerability in the face of unfamiliar situations. Overwhelmed by the "big shots" involved, he felt out of his depth.
Team Building and Resource Acquisition
A team was quickly assembled, but finding a viable project proved challenging. Despite connections to local enterprises and business associations, the team struggled to find a practical application for blockchain technology.
Forced Implementation and Failure
Under pressure from investors, they launched a blockchain-based credit scoring system, using Hyperledger and a simple front-end. They participated in various competitions and forums, even meeting with mine owners, but ultimately failed to gain traction.
The True Value of Networking
The speaker realized that connections are only valuable when one possesses something to offer. Simply knowing influential people is not enough; genuine value exchange is essential.
Returning to Coding and Reflections
After six months, the speaker decided to leave the venture and return to his java development career. Surprisingly, the investors pivoted to launching a cryptocurrency, capitalizing on the tail end of the ICO boom.
The Value of Early Failure
The speaker does not regret the experience. He expresses gratitude for the learning opportunity, particularly because it occurred early in his career. The financial losses were minimal, but the lessons learned were invaluable.
Debunking the Myth of "Idea-First" Entrepreneurship
The speaker challenges the common narrative of entrepreneurship, which emphasizes groundbreaking ideas, venture capital, and rapid growth. He argues that this model is often unrealistic for grassroots entrepreneurs in today's competitive market.
Sales vs. Development
The speaker stresses the critical importance of sales. He uses the example of a sales person vs a programmer and only one position can be held in the company to explain the situation. In most cases, sales is more important. He argues that even with a perfect product, it's useless if it doesn't generate revenue. He claims the programmers are considered as expenditure but sales are considered as profit.
The Priorities of Business
He urges aspiring entrepreneurs to focus on generating revenue and navigating the market, rather than getting caught up in superficial aspects like office location or perfecting a product before seeking customers.
Entrepreneurship as a "Business"
The speaker concludes that true self-made entrepreneurs focus on "doing business" rather than the glamorous image of "entrepreneurship."
Second Venture: Live-streaming E-commerce
In 2023, the speaker joined a friend's successful live-streaming e-commerce business as an opportunity to replicate a proven model.
Advantage of Advantage
There was an MVP that had proven to be correct with ready to go source. What needed to be done was to copy it.
The Challenge of Business Ethics
Despite having established supply chains and a seemingly successful model, the venture ultimately failed. The speaker attributes this to the ethical compromises required in the business world, such as creating artificial scarcity and negotiating aggressively on commissions.
Moral Conflict and Discomfort
The speaker found these practices deeply unsettling, highlighting the moral conflict many programmers face when transitioning to entrepreneurship. The constant need to be cunning and ruthless clashed with his ingrained values.