The day's project discussion session ended quickly.

Gu Biao's design requirements for a new generation of home cassette game consoles, there is nothing to repeat here, and it is also water to say more.

IN A WORD, AFTER THE PROJECT DEMONSTRATION MEETING, GU BIAO FINALLY CONFIRMED THAT WHAT HE WANTED WAS A HOME COMPUTER WITH A SIMPLIFIED VERSION OF THE CPU USING THE MOTOROLA 68000 SERIES, AND NAMED IT PLAY-COMPUTER. It is definitely a little more powerful than the FC that Nintendo used to MOS6502 in history, and the graphics and sound effects in the future are also a little stronger.

The price is that the price may be more expensive than Nintendo's - another time and space, Nintendo's Yamauchi Pu has squeezed the potential of the two major R&D cadres of Yokoi Junhei and Masaichi Uemura, soft and hard, with cheapness as the core competitiveness, and the initial shipment price of FC in the US market has been pushed to $100.

In contrast, Gu used a simplified version of Motorola's 68000, and also strengthened the memory and independent audio chip, so even if the machine itself is not profitable, the minimum distribution price of the shipment in the US market is more than $130.

However, Gu Biao still feels that he is competitive - because if history has not changed, after Nintendo's FC red and white machine was made in 83, it did not enter the US market quickly in the first year, but now it is necessary to verify the domestic expansion to ensure that the market stress test is okay, adjust and optimize a "foreign trade version", and then sell it to "American Dad".

Don't be surprised: I was in the 80s, like the Chinese in the 21st century, and the quality of the foreign trade version of the goods would be particularly better. The American version is more solid and smooth than the early Japanese version, which is equivalent to being a wave of guinea pigs with domestic brainless fans.

As a result, it has been 84 years since FC entered the U.S. market, and then slowly waited for the market confidence to gradually recover after the collapse of Atari, and Nintendo officially began to occupy the market on a large scale, and has caught up with the appreciation of the yen after the "Plaza Accord".

The yen doubled against the dollar in three or four years, rising by 30 percent in the first year — the equivalent of Nintendo's $100 console when it was first designed to sell for $120 in the U.S. '85. (Because Nintendo is produced in Japan, most of the cost is denominated in yen, and after the Plaza Accord, the yen exchange rate rose, except for the cost of CPUs imported from the United States, which remained unchanged, and other costs increased by 30%, and the export competitiveness of Japanese goods suddenly decreased.) ）

Therefore, Gu Biao knows that these prices are generally acceptable to American consumers.

Even if Nintendo still follows the trend this time, Gu Biao does not disdain to fight a price war with the other party, but expects to use a machine with a solid cost of $130 to significantly surpass FC in terms of performance. (The retail price of the dealer may reach $150, and the last 20 yuan is the profit of the dealer and the store.) The consumer electronics industry generally retains such a small profit. ）

His production is in leaner and low-cost China, where more money can be saved for material costs.

Technical indicators and technical routes, even if so confirmed.

The final part of the project meeting, which attracted everyone's attention and boosted people's hearts, was the equity incentive plan.

In order to persuade everyone to "give up the money that is easy to make in front of you and the benefits that are easy to get", and change it to the company's long-term consideration, Gu Biao has allocated 5% of the technology shares and 3% of the marketing shares, and allowed the main contributors to subscribe according to the proportion.

The equity price is very low, basically the internal original shares of the conscience price, as long as everyone is willing to hand over the project bonus received before, they can subscribe for the full share allowed to be subscribed. Of course, there are also a few people who are reluctant to let go with cash and choose not to subscribe in full - these people will definitely regret it in the future.

Of course, the shares given by Gu Biao are all subscriptions in the form of options, and they cannot be withdrawn and cashed out casually before listing. If you want to realize it, you can only add some dividends to the original purchase price and repurchase it by other existing shareholders, and cannot sell it to outsiders.

In other words, after these stocks are bought, they are used for dividends and dividends, not for you to sell them for cash after the stock price rises.

Gu Biao also has no plans to go public.

……

The afternoon meeting was long and dragged on into the evening.

After everyone ate a boxed lunch or sandwich in the conference room, they fought until 8 o'clock before it was completely opened.

As a cooperative friend and upstream supply chain, Han Ting also participated in the meeting and gained a lot, and discovered the wonderful difference between equity incentive and bonus incentive system.

After returning to the suite of the hotel and taking a shower, Han Ting opened a bottle of red wine, poured two glasses, and placed it on the low table next to the recliner on the glass balcony, talking to Gu Biao all night and talking about her gains.

"In the past few years, I have read a lot of foreigners' management books, and sometimes I blindly envy their 'equity incentives', as if they share a little profit, don't want the boss to eat alone, employees and executives will be with you, and work together to give full play to the potential of the company.

After reading your operation today, I realized that I was shallow on paper. The incentives that can be done by relying on equity dividends, you can do the same with bonuses, or even better. Equity is divided only when it is forced to do so. ”

Gu Biao also picked up the wine glass playfully, stood in front of the window and looked at the night scene:

"Don't be deceived by those stall management studies, equity incentives are actually an incentive method with relatively unclear responsibilities and vague KPIs. After you give a person equity, even if his performance is not good, he is lying on the credit book, as long as the rest of the company is running well and the company as a whole is profitable, he can still share the money - therefore, and performance awards and project awards are the precise scalpel. ”

In the future, those laymen who have never done fart business in the literary circle of a certain national network want to write two business war uniforms, and almost eleven out of ten will mention equity incentives.

But in fact, these people have not even seen how the company is registered or cancelled. (Although I am not proficient, at least I have done it, and I have personally helped people draft a resolution for the dissolution of shareholders, and contacted the newspaper to publish a statement "Please declare the creditor's rights within the time limit for the creditors who intend to cancel the company")

But if you really think about it, as Gu Biao said just now, equity still has the nature of "big pot rice", if you have shares, if you don't work, the company will be good, and you will still have money.

If you do a good job, the company may be a little better, but the extra money you make is not taken by you alone, but by all those who have equity in proportion to it - this root of working more in the commune and causing the commune's work to be more valuable, there is no difference in essence, it is only a difference in degree.

In contrast, "the more you sell, the more you will get the commission, and the more you will win the project award if the market performance of your R&D product project is good", this is much more precise than the equity incentive, and there is no attribute of a big pot of rice.

Because of this type of incentive, the overall quality of the company has nothing to do with the money you take. Only the project you are responsible for and the customer you do are 100% directly related to you, and the pig teammates you need to worry about will be limited to a minimum.

So, why did the Chinese see in the literature of the stalls, and the famous Chinese-funded large companies in later generations, when they started, they had to rely on equity incentives to win people's hearts?

For example, the "Eighteen Arhat Plan" of Ma Feng Ahri Baba in later generations, and Cai Chongxin, who is responsible for the equity design structure, were not touted as having the same status in the rivers and lakes for a while?

It's actually very simple: because when Ahri Baba was founded, it was not profitable.

A company that is still losing money to make money, circle the market, and pull users, you have no red to share. A business that is not profitable cannot be accurately assessed with performance bonuses and ensure that there are no loopholes for people to exploit.

If you have to use the KPI of "how much bonus you can get by pulling a few users" to evaluate the startup marketing team that loses money, then your "zombie whitewashing/brushing" will be rampant - because you don't make money in the first place, and these users don't spend money, isn't it simple to fake a "non-user who doesn't spend money" to a "user who doesn't spend money"?

So, Ahri Tengxun was right to do this at the time. But it's silly and cute to hold the cash cow, but to think that he is Ahri Tengxun and blindly imitate it.

In the later generations, Gu Biao can be regarded as an old man who has been crawling for many years, although he is not a management member within the Ahri department, but he can be regarded as seeing through the rules.

So, there is his golden and jade words to enlighten Han Ting at this moment:

"Therefore, equity incentives are designed for those businesses and practitioners who are not profitable for the time being, and they are thinking about the long-term interests of the company. Or, for the company's executives, those responsible for the company's long-term value.

For businesses that can make money and cash cows, the efficiency of exploitation and incentives are much more precise in terms of commissions and project awards, and the blow to those who abuse money is much more severe.

Any business of the company cannot avoid an S-shaped growth curve, from the initial investment in resource development, research and development, to the subsequent inertia to make money, and finally to decline.

If a company can only find one growth curve, then when this curve declines, it is when the company ends. And what do good companies, century-old stores, do they do? First of all, either the industry in which it is located changes very slowly, so a curve is very long.

Either the company's decision-makers are good at discovering new trends, new market pain points and new growth points. Then, when the first growth curve is still in the bonus period, the second track can be opened immediately, and the profit of the first business can be used to support the investment period of the second business. After the second business also enters the bonus period, the company's life will be extended for one more cycle, and it will become bigger and bigger.

Therefore, in theory, the most perfect way to play is to directly pay bonuses to practitioners who have matured the bonus period. For those who are still losing money in the development stage, they should set up a project subsidiary independently, and give them a part of the equity of the project company to subscribe at a low price. In the future, the project will survive from the stage of not making money to the stage of making money, which is the time when they will make a lot of money and get returns. ”

Bonuses are given to those who are already making money.

Equity is for people who are still losing money now and have the opportunity to make money in the future.