Family Story: Taking unpaid leave and venturing into Zhongguancun

The earliest Zhongguancun entrepreneurs

After leaving the company, Liu’s aim was to trade computers and electronics parts. In 1987, when establishing the Seismic Network of Tangshan, the research office of the Seismic Instrument plant purchased an IBM089 computer. “It was even lower-spec than the 286-type computer and it looked enormous.” Liu and his colleague often went to the research office next door, where they could use the computer to do some office work such as compiling and printing documents. “I never thought that this kind of easy work with the computer would become the ‘backbone’ of the following 20 years of my life in the business arena.”

At first, since Liu didn’t have any capital, he started to work in an electronics company established by his colleague who had also left his original company, but earlier than Liu. They sold the 2401-type printers made by Stone Company in Zhongguancun which wasn’t developed up at that time.

Although the company owned a small shop in Huangzhuang, all the business they got was through introductions by friends and acquaintances. Liu said that the boss, with the help of some close friends, the boss purchased typewriters directly from Stone Company, eight to ten sets at a time. “Then the salespersons would sell the products through the network of classmates and previous colleagues.” Liu was very candid in saying that in the first several years, thanks to the close relationship with the old bosses and leaders forged during his years work in the Youth League branch, he sold quite a few electronic products to his previous workplace.

As one of the entrepreneurs of the first generation in Zhongguancun, Liu’s basic monthly income increased triple. Yet at the same time, the lines between weekdays and weekends and between work and rest became blurred.

Liu said: “If there was business we did our work at hand; otherwise, we tried every means to look for businesses.” It was true that life was exhausting, but as he was becoming better off, his wife would not hesitate to buy clothes worth more than 100 yuan while shopping in the mall and his son had access to imported milk powder. “A sense of achievement swelled in my heart,” said Liu.

Liu earned his first 100,000 yuan after experiencing all kinds of hardships

After a half year of work for others, Liu saved enough money to partner with 3 or 4 friends to run a small company on a contract basis in the Zhongguancun area. The company sold plotting instruments, printers and occasionally PC 286’s, the most advanced PC at the time.

Still relying on personal ties, they purchased goods from Guangzhou and Shenzhen and transported them to Beijing by railway and then sold them to Shandong, Changchun and Dalian by either road or railway.

Another half year later, Liu chose to run a wholly-owned company in 1991. With the funds withdrawn from the previous company and 10,000 yuan of savings, he registered his first information consulting company with an industrial and commercial bureau.

Located at the Mudanyuan Hotel, the company had three departments. One specialized in engineering and construction, and another department, like Liu himself, mainly specialized in the sales of computer accessories and in computer assembling business. Liu recalls that this was the busiest period in his life. In the daytime, he was active in improving personal ties to secure contacts; assembling a computer also took several whole nights. “I did all types of work from assembling to delivering computers and made 2000 to 3000 yuan per month, which was higher than that of senior employees at public institutions,” said Liu.

In 1993, Liu finally had 100,000 yuan of savings. To expand business, he spent 22,000 yuan on a first-generation mobile phone at the time.