How to start a successful companyFor new readers and those who request to be “好友 good friends” please read my 公告栏 firstMy good friend and Fraternity brother锛 S.K. Ho (no relation) started a successful company BISCOM years ago after being an engineer at WANG LABs for many years. I asked him the other day about writing up his experience of starting a company. Below is his unedited contribution in four sections: Motivation锛 Product锛 Raising Capital锛 and Conclusion. All ambitious young entrepreneur needs to know!PS. You may also wish to read http://blog.sciencenet.cn/home.php?mod=space&uid=1565&do=blog&quickforward=1&id=909246 why I am not successfulPPS. Because the content of this article is timeless and the 48 hour limit on comments and questions by ScienceNet锛 may I suggest that for late comments/questions锛 readers send it via me by e-mail at ho@seas.harvard.edu . I’ll transmit them to the author who may choose to reply. If there are enough such comments锛 perhaps I can publish them in a separate article for the benefit of all to see. Below text by S.K.Ho Motivation:My career at Wang Laboratories spanned 19 years.When I joined the company in 1968锛 Wang’s revenue was less than $20 million. When I left锛 revenue was over $3 Billion! And that was over 39 years ago. The number of employee rose from 200 to 30锛000. Wang was a prestigious company锛 a leader in technology and innovation. Hower as the company grew锛 innovation stagnated and was replaced by red tape. Getting new ideas to the surface became harder. Meanwhile锛 overconfidence about its future and belief that growth would continue forever锛 colored management’s objectivity and decision making. Management was always looking at the winning (revenue) side for Wang. For example锛 the company built huge buildings in anticipation of future growth锛 instead of putting some cash in the bank in case of more difficult times.I left Wang in 1979 and joined Qume in California (a Company known for manufacturing Daisy wheel printers). Because Qume had been acquired by Xerox锛 many employees made a lot of money and complacency had set in. There were more fancy cars in the parking lot than new ideas.When my daughter sent me a post card (people wrote letters and cards back then)锛 saying she missed me锛 I decided to return to Boston. I got an offer from Digital Equipment Corporation (DEC) and when Dr. Wang found out锛 he called me one night at 11:00 and asked me to go back.After some careful thought锛 I decided to rejoin Wang. At the time锛 Wang’s stock was trading at an all-time high and the company atmosphere had totally changed.People spent more time in meetings rather than doing actual work. I largely avoided the bureaucracy锛 and soon after returning锛 showed Dr. Wang a new product.I called it the PIC (Professional Image Computer).I wrote the outlines during the time I came back from California锛 the specifications of which were notarized on every page by a notary public.I showed the design to Dr. Wang and he liked it. I formed a new group锛 hiring three engineers and some support staff.In fact锛 there was a rumor that AT&T liked the product so much they thought about acquiring Wang.At the same time as we were developing the PIC锛 personal computers started to permeate industry applications. My group also developed the Wang PC锛 similar to IBM.However锛 for some reason锛 the PC project was taken away from me and assigned to a different group.That move was irritating.Meanwhile锛 Wang’s business started to show some cracks. One indication was the company started to promote early retirement for employees over 55 years old.When I found out about the terms锛 I called my wife and told her I wanted to “retire.” I told her she would have to support the family锛 and luckily锛 she immediately agreed.The good thing about my wife (she was a nurse anesthetist) is that she never fully understood what I was doing. In August 1986锛 I started my own company锛 BISCOM. Two engineers initially joined me and we later added more staff and started operations.On August 18锛 1992锛 Wang ran out of money and declared Chapter 11 bankruptcy. That day my phone rang off the hook.Product:Alexander Bain invented the fax machine in 1843. The idea was to send an image from one place to another remote location.Since then锛 many improvements had been made锛 but the real application was still painfully slow. However锛 in the 1980s锛 compression algorithms improved and greatly increased transmission speed. The fax’s popularity took off.Fax machines were in every business office. However锛 in business锛 most documents were stored in a computer system锛 and unfortunately锛 fax machines did not talk to computer systems.This opened the opportunity to develop a fax server that connected to a PSTN (phone) line锛 and a computer system锛 which would send and receive image files via phone line. An interface-software command language also connected files to different computer systems. In our Fax server锛 there are three major parts锛 (1) a fax board that simulated a fax machine锛 plugged into the motherboard of a PC锛 (2) a phone interface software that connected T.30 Protocol to send and receive fax; and (3) a file conversion software to convert all files into an image file called tiff. We also created a command langrage to interface with various computer systems锛 which also had other features to manage fax traffic锛 log files to monitor system activity锛 accommodate customer special requirements for cover pages锛 and could remotely monitor and administer tech support to customers. Once the idea firmed锛 we named the server FAXCOM锛 and the command language to computer system FCL (FAXCOM COMMAND LANGUAGE).We found an office锛 got a lawyer to register Biscom as a Massachusetts corporation锛 and started building the Server.Of the two engineers who joined me锛 one designed a fax board锛 which acted as the equivalent of a fax machine锛 while the other wrote the file conversion software (to convert a file to an image file called TIFF).The server system was built on a PC platform锛 without a keyboard or monitor. It tested and ran well. My daughter (then a high school senior) wrote a news release for EMMS magazine announcing the product.It attracted the attention of many large companies and system integrators. Because the FCL of FAXCOM could talk to any computer including IBM锛 HP etc.锛 one of our first customers was MCI锛 who used multiple computer systems.They ordered 256 FAXCOM servers to their data center. They loved it; there was no key board锛 no display锛 only three LED lights锛 red锛 green and yellow. In addition锛 it looked different from a PC. Even today锛 many large corporations are still using FAXCOM. Some send over a million pages a day. Since the first fax server锛 we have developed more products in the secure file transfer area. About 10 years ago锛 I started a cloud fax system锛 a subscription model to send and receive faxes without the Fax Server hardware and software. Users can just send and receive faxes from their computer system. All fax traffic goes through one of our Data Centers (VZ锛 ATT锛 Level 3)锛 yet the user can still monitor the fax traffic. The newer subscription model gives the company stable revenue income锛 a big success for the company.We originally selected the UNIX OS for our Fax server software because of its reliability; however锛 UNIX was not user friendly锛 so we later switched to Windows OS锛 which was more popular with customers. Unfortunately锛 we made the switch a couple years too late锛 and as a result锛 lost some market share.Now Cloud computing and Mobile communications have become the new standard and primary means of data communication. Our R&D functions have switched their focus to digital faxing and secure file transfer. In digital fax we just received two patents and more are on the way. Digital faxes not only provide high resolution and color锛 but also higher speeds that lowers cost by eliminating phone lines. Raising CapitalTo raise money锛 first you need a business plan and a working model锛 to show investors who can truly appreciate the product. Our attorney introduced me to Chris锛 a graduate from MIT and Harvard Business School锛 and together we created the plan while the engineers finished a working prototype. We had some VC interest and follow-up meetings锛 but in hindsight锛 I am not sure they fully understood the market potential for FAXCOM.Meanwhile锛 a company in Taiwan liked the product idea but did not have the capability to design a fax server锛 so they invested $1 million in Biscom.Oftentimes锛 having strong personal relationships who can serve as references matter. Two of my friends锛 one who was Wang’s Taiwan general manager锛 and the other a college classmate锛 knew both the owner of the Taiwan Company and me well. The deal was done within a day. Also an interesting story锛 before I went to Taiwan to close the deal锛 I met a wealthy investor from Perth锛 Australia. He had come to Boston to visit Arthur D Little锛 and had heard about Biscom. He invited me to a party锛 showed me his business interests锛 including a winery锛 bank锛 gold mine and real estate锛 all of which were heavy users of fax applications. He ask me how much I needed to get Biscom off the ground锛 so I presented him a spreadsheet I prepared myself showing $700锛000. He looked at me and said “no problem锛” but wanted a 50% economic interest and a swing vote. Because of the swing vote锛 which would ultimately give him control锛 that deal did not go through. Later锛 I sent a fax to his gold mine from my home basement锛 and the quality of the fax was so clear锛 he was impressed. The reason the fax was so clear because the file does not go through a scanner and I designed the character font specifically for fax transmission. Conclusion After four years in operation锛 Biscom generated positive cash flow. We participated in many shows and everyone had a good time. We travelled everywhere锛 from Las Vegas through Europe. Many dealers wanted to sell our fax product锛 but one of the problems I experienced was that when certain resellers took our product锛 made sales锛 and collected revenue锛 I had difficult getting money from them!Over time锛 many copycats used our registered FCL command language for their systems锛 and we had to spend a lot of money in lawyer fees to go after them. In one of our lawsuits锛 the agent from our competitor realized we had a patent called Efax锛 a machine that could send an email or fax based upon the input address锛 which could be quite useful. The agent ultimately sold the patent for us for $10 million锛 but after tax and his fee锛 not much was left.So锛 33 years after Biscom introduced the fax server锛 we’re still in business and continuing to evolve. 10 years ago I built a Cloud fax system锛 so users do not need a physical fax sever anymore; it is a subscription model and customers only pay when they send/receive faxes. The system is now the major revenue generator for us锛 even though we have a number of other products.The last thing I would say is to start a business is actually not that difficult. With perseverance锛 hard work锛 and diligence锛 not only can you achieve your product goal锛 but financial rewards can come too. Moreover锛 it can happen regardless of age锛 old or young. A good idea and some experience is all that is necessary.应南方科技大学地球与空间科学系高科老师的邀请，我们一行两人在12月2日乘机抵达深圳进行学术交流。刚下飞机，感觉进入了夏天，感叹深圳很热情，貌似欢迎我们的到来，呵呵。晚上我们和在深圳工作的某位大学同学及其家人，共进晚餐。餐间气氛热烈，相谈甚欢，

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回忆起了难忘的大学岁月。由于我酒风正来者不拒，再加之心情好，一不留神又喝高了。3日吃过早餐后，高老师陪同我们在校园内观光，

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边走边介绍。校园很美，有山有水的静谧环境适合搞科研和教学。在闲聊时，我们了解到地球与空间科学系近几年新进的老师以年轻人居多，大都是在国外拿到了学位、发表了高大上文章回国的。他也感叹到：在国内人头不熟，拿项目不易，由于几年后面临着“非升即走”的考核，鸭梨山大哦。记得前几天我和某同事聊天时，同事也说到“在国内，

中国背后支持缅甸政变?中方:谣言

不管是年轻人还是中老年人，

中国背后支持缅甸政变?中方:谣言

诸多搞科研的压力都很大，这都是科研评价体系不合理惹的祸。”是啊，要让科研人员做出高创新性成果，得有一个让大部分人“坐得住冷板凳”的科研环境。如果其为了生存到处奔波，

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不可能有神马重要突破。3日下午4时，开始正式的学术交流。我做了《孕震断层多锁固段脆性破裂理论》的学术报告，围绕着锁固段脆性破裂理论、标志性地震预测方法、标志性预震预测方法、可预测地震事件类型、地震产生机制、地震危险性评估新方法、剖析地震“疑难杂症”，大概讲了1个小时，讨论了约半小时。在开场白时我说道：“感谢大家的光临和高老师的邀请。你们是‘正规军’，我们是‘游击队’，我们是抱着学习交流的目的来的。我实话实说，

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来的研究生长期受TA们的影响，其对新观点的接受能力强。在讨论环节，没人质疑我们理论和原理的可靠性，

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主要聚焦于方法方面，如数据处理、主震识别等，我一一做了解释。他们几乎一致认为：我们的工作为解决地震预测科学难题提供了新的途径，具有良好的前景。通过这次学术交流，增强了“正规军”和“游击队”的了解，互通了对地震产生机理的认识，为以后可能的合作奠定了良好的基础。适当的学术交流对科研人员促进思考、激发灵感、开阔视野、掌握新知、避免闭门造车，是必要和有益的，

中国背后支持缅甸政变?中方:谣言

即所谓“你有一个思想、我有一个思想，交流后我们就有了两个思想”。思想多了，其中某个思想或碰撞产生的新思想，有可能成为打开某难题瓶颈的“金钥匙”，进而一通百通。以下为学术海报：，