Good business, with sound business models, strong cash flows, and solid commercial ethics.

CategoryReading Notes

As early as the 1990s, BBK wanted to purchase the "Small Genius" trademark. The initial offer was 3 million, but the trademark owner refused to sell, so Duan Yongping and Jin Zhijiang (head of BBK Educational Electronics) had to drop the matter. When the 2008 financial crisis erupted, Jin Zhijiang noticed that the "Small Genius" trademark owner had sold a wine brand. Being detail-oriented, Jin speculates the owner was likely in financial distress. He immediately saw an opportunity and began searching, eventually locating the trademark owner abroad half a year later. To ensure everything went smoothly, Jin specially hired a third-party agency to handle negotiations this time, and the owner quoted just 300,000. During the signing, the trademark owner remarked, "You don't know, ten years ago someone from BBK offered me 3 million, and I still didn't sell." Because the contract was signed by the third party with the trademark owner, the actual transfer to Jin Zhijiang took another year. Upon seeing the transaction price, Jin was shocked and felt something was wrong. He quickly sent someone to contact the owner, telling them, "We are BBK from back then. We believe your brand was worth 3 million then and is still worth 3 million today. We're having you sign today to make up the remaining 2.7 million."

If a business lacks a sound business model, it will have poor cash flow and struggle to survive. The boss will gradually cross moral boundaries, eventually resorting to deception and fraud.

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