novelbin Chapter 25 Launching New Business
Chapter 25 Launching New Business
DeepBlue Technology, conference room.
"What? A new business venturing into the environmental protection sector?"
Zhang Wei stared blankly at Lin Chuan, while the company's core members were discussing the development of new business.
Everyone was caught off guard when they heard Lin Chuan say he was going to get into the environmental protection business.
Realizing what was happening, Cheng Siyuan immediately said, "Boss, this has absolutely nothing to do with our main business right now. You didn't just come up with this on a whim, did you?"
Lin Chuan stated confidently, "This is an idea I have carefully considered."
Upon hearing this, Zhang Wei shrugged: "The problem is, who among us knows how to do environmental protection? Nobody does, it's not our expertise."
People are clearly not very supportive, which is actually quite normal. For a company, venturing into an unfamiliar market is a risky move.
Even some well-established large companies wouldn't dare to do this easily, let alone DeepBlue Technology, which hasn't accumulated much experience yet.
Lin Chuan said, "I'll take charge of this. We'll just recruit some more professionals. You guys continue to push forward with the Shadow Project. The new business won't affect the company's existing business."
Lin Chuan's strategy for the new business is to operate it separately from the current "Shadow Project," since it involves a top-secret military project.
The employees required for the planned new "plastic-eating bacteria" project should not have any connection with the old project, nor should they be aware that the company has this military business.
By separating the two, the background check process for hiring can be made less stringent.
Therefore, a new venue needs to be rented, whether for office or research and development, and it needs to be operated separately from the "Shadow Project".
In his long-term vision for the future, Lin Chuan intends to transform DeepBlue Technology into a group.
The company spun off its military business unit into a separate subsidiary called "Deep Blue Defense," which focuses on the military industry.
However, there is no need for that now. For the time being, they will all be under one company, but will be operated separately in practice.
Upon hearing Lin Chuan's words, everyone exchanged glances.
Lin Chuan continued, "The company needs a new business that can generate sufficient cash flow. Although the Shadow project has been a great success and its prospects are extremely bright, it's only a matter of time before the military places an order with us."
At this point, he changed the subject: "But the problem is that military projects take too long to complete."
From the initial project initiation, the process involves several stages, including prototype development, engineering prototype development, acceptance testing, finalization, small-batch production, order placement, and final deployment.
This entire process takes five or six years, which is considered very fast.
In most cases, the time cycle from project initiation to deployment of a new piece of equipment is often at least ten years.
Lin Chuan looked at everyone and said, "Don't forget that DeepBlue Technology currently owes 100 million yuan in debt. The last 100 million yuan was debt financing, not equity financing. The borrowed money still has to be repaid with interest. If we want to be truly independent, we must make the company have a stable self-sustaining ability."
Everyone agreed with what Lin Chuan said; if DeepBlue Technology wants to go further, it really needs to focus on the civilian market.
Most importantly, you need to have your own stable profit points and a self-sustaining revenue cycle.
Cheng Siyuan asked curiously, "Boss, you mentioned getting into the environmental protection business, what specific sub-sectors are you referring to?"
Lin Chuan stated bluntly: "Plastic waste disposal."
As he spoke, he pulled up a set of data and projected it onto the conference room screen.
"The disposal of plastic waste has always been a global problem. The amount of plastic waste generated globally each year has reached 2.88 to 3 million tons and is still increasing."
"The recycling rate is less than 10%, and the recycling and processing costs are high, exceeding $400 to $1000 per ton in Europe and the United States."
"The rest will either be landfilled, incinerated, or dumped directly into the ocean."
"The world is searching for solutions to plastic waste. Which city isn't plagued by garbage? Which country isn't criticized for plastic pollution?"
"On the other hand, the market potential here is huge, it's a multi-billion dollar pie, as long as we can provide a clean and efficient solution."
Upon hearing this, Guo Tao asked suspiciously, "High-efficiency cleaning? How do you do that?"
Lin Chuan replied with a smile, "My initial idea is to take the biodegradation route, cultivate and modify a kind of microorganism that specifically eats plastic, and can completely degrade common plastics such as PE, PET and PS at room temperature and pressure, with the final products being carbon dioxide and water."
Upon hearing this, Huang Chongwei looked up at him and asked, "This...can it really work?"
Lin Chuan said, "How do we know if it will work if we don't try it? Anyway, the initial investment cost is not high. All we need is a P2-level biological laboratory, some basic equipment, some nutrient solution and petri dishes. It won't cost much. The investment will be at most two or three million."
After a pause, Lin Chuan looked at everyone and smiled, "If the results are good, we'll increase the investment; if it's not ideal, we'll cut back. The losses are manageable."
They exchanged glances; the trial-and-error cost of two or three million was indeed not much.
This amount of money won't have a significant impact on the company.
Finally, Zhang Wei said, "Alright then, since you've already decided to do it, nothing we brothers can do to stop you. Go for it!"
The other team members also expressed no objection, as long as it doesn't affect the company's core business.
Lin Chuan immediately made the decision: "Okay, it's settled then. You guys continue to iterate and optimize the 'Shadow Project.' As for the new business, I'll handle it."
At this point, Zhang Wei reminded him, "However, environmental protection clients are mostly government agencies, and the payment cycle is long. When it comes to collecting payments, you have to run around like crazy, and after all that trouble, you might only get a bank acceptance bill. It's not as easy as you think. Don't let your cash flow collapse."
Hearing this, Lin Chuan remained noncommittal, then calmly said, "I know that. If we really come up with such a good solution, our customers won't just be limited to mainland China. Customers all over the world will be rushing to DeepBlue Technology to place orders."
Foreign clients are much easier to deal with, as long as your solution is unique and cannot be provided by others.
The other party will definitely not delay your payment. If they dare to delay your payment, you can just cut off their supply. Plastic waste is generated every day, and they definitely can't afford to delay it.
As for the mainland, if there are concerns about payment collection, then first connect with major first-tier cities for business. Major coastal cities have money and will be more compliant with payment collection.
After some discussion, the decision to launch the new business was made, and Lin Chuan gave some instructions before the meeting adjourned.
Zhang Wei and his group were still skeptical, feeling that the chances of success were slim.
However, they were unaware that Lin Chuan already possessed a complete set of biodegradation technology solutions.
Everything from gene sequences to culture processes is included.
More importantly, the investment cost is not high.
The problem it can solve is white pollution, which has plagued humanity for nearly seventy or eighty years. It is an achievement no less than a Nobel Prize, and it is a sure win in both fame and fortune.
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