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Chapter 106, Equity Allocation and Exchange Concept

"The equity changes are as follows."

At sunset, Sophie held the printed documents in her hand and handed them over to the Posacks and his wife, saying, "On the basis of the original 50%, Alice invested another $5 million in Cisco Systems to include it as paid-in capital in the rights of all people, and thus increased her shares to 70%, reducing the share ratio of your two to 15% each."

While the couple opened the document with an ugly look on their faces, Sophie continued: "In addition, integrating Cisco Systems' current fixed assets, intangible assets, accounts receivable, bank deposits and cash inventories, etc., the paid-in capital secondary account for owners' rights and interests is 8 million US dollars, and the capital reserve is 270,000 US dollars. The above are the company's current total assets."

"So, Alice currently holds a total value of US$5.6 million, and the shares of you and your couple are each worth US$1.2 million. The above is the property distribution of Cisco Systems' current shareholders. The specific situation is detailed in the document."

As a lawyer, Sophie is also a senior American certified public accountant and a chartered British certified public accountant. In fact, she was working at one of the four largest international accounting firms, PwC, while working as a Harvard law graduate student and a doctorate.

Moreover, Sophie still did everything from work, school and life to get into a doctorate. At the same time, she became a senior manager in the firm. It can be said that if she hadn't happened to be pregnant with Alice at that time and had to last another one or two years, she might have become a partner of PwC, with an annual salary of one million dollars only a short distance away.

It can be said that if she was assigned a small team, even if she was doing an audit report for the headquarters of a Fortune 100 companies in the world, it would be just a simple physical work. As for now, it was just a financial statement for a "little guy" with a total assets of only tens of millions. It was really no difficulty.

Strictly speaking, the work was over in just two hours.

"Oh... I'm so ashamed."

Looking through the documents, Posack shook his head and sighed: "Although we know that the company's prospects will definitely be very good, but who knows that it has developed so quickly. It took only one year to go back and forth. We were so tired that we could barely finish our work. If we continue like this, I'm afraid I will grow old prematurely."

Alice looked at Posack pitifully. She was only a man in her early thirties, but after a few weeks, his dark circles were obviously aggravated a lot. Including Sandy, her hairstyle should not be messy, but her skin obviously had not been taken care of for a long time, and the signs of not sleeping after staying alone were very obvious.

"After all, there are only two people in the company at present. After two days, you will naturally feel relaxed."

As she said that, she really glanced around suspiciously: "By the way, although our company's starting point is low, we have made a lot of money at least, right? Although I was no longer in the United States at the end of last year, you won't have any employees, right? I've also occupied such a full office."

Sandy glanced at Sophie with guilt. Seeing that she was working on the company documents, she laughed dryly at Alice, and then exchanged glances with her husband in a hidden way.

Sandy really doesn't want to delegate power.

When Sandy first started the company, she wanted to be the "boss". After all, Alice was just a little girl, and her family was not a computer professional at all. Although she had the technology to invest, how could she treat it equally? As a partner, Alice did hand over the management rights to them, so Sandy was still quite satisfied and even thought that this girl was quite sensible.

As for recruiting employees? Although Alice did bring the first batch of huge orders to the company some time ago, and as the reputation of those customers spread, the business gradually improved and there was no shortage of funds. But when she thought that as the boss, she still had to pay someone a salary, Sandy was disgusted.

After all, programmers’ salary is really not low. The monthly salary of any person must reach the level of the total of the two when they are a teacher. It’s not that they can’t do it anymore. Why do they have to spend so much money to hire employees and save that money to buy luxury cars?

But now, Sandy sometimes looks back and thinks, Alice, the girl, probably foresaw this day long ago?

Ideals are good, that is, to get rid of the debt-ridden poverty life. But in the first three months of the entire company's operation, Sandy quickly realized that starting a business is really too hard, and she has no end to work day and night, and she doesn't have much time to enjoy the life after she's rich. Even though the company's profits have increased a lot recently, she can buy a large luxury house in Beverly or Long Island after saving, but she doesn't even have the chance to exchange herself for the latest Lamborghini.

So to this day, when Sandy saw Alice as she agreed to become the company's super major shareholder in one fell swoop, she was so strange that she didn't know what to say.

With a 70% equity ratio, even if she is not the company's management, or even if she is the board of directors, even if she is not the on-the-job chairman, she will decide everything.

"In terms of financing, you can continue to look for it. It's nothing more than looking for it when you are short of money. When you are not short of money, you can't let it go if you are short of money. However, you can't let it go under any circumstances."

When everything was settled, the night was still deep, but everyone had no plans to eat. Sitting in the largest room of the office equivalent to the "living room", guarding the surrounding pile of file cabinets and computers, Alice and Sandy had a meeting.

"The five million dollars I just injected, I took out one million as the cost of recruiting employees and expanding the office space. In terms of specific recruitment, we should give priority to recruiting about ten marketing specialists. Ahem, that is, salesmen, after all, the market determines everything. Then, the customer staff recruited three two people, and the remaining funds were used to recruit engineers except for the expansion of the office space."

Posack said: "I have been thinking about a question recently. Currently, Cisco's products are only this router. Is our product chain too single? Even the standard oil of that year, at least it has to be sold in gasoline, diesel, and kerosene, right?"

Alice's mouth twitched.

Why do these guys like those Italian chocolate dealers like Rockefeller as an example?

Just like people from later generations who open their mouths and shut up Bill Gates?

It seems to make some sense.

Without blinking, Alice said without thinking: "Then adjust the power. Sandy, what is the specific performance of our current router?"

Sandy was asked by this sudden question: "Performance...of course, it is easy to connect multiple computers to achieve..."

"The computer is directly connected to five entrances, which means it can connect to five computers at the same time. This is enough for companies with less than 50 people, or even one hundred people. Just buy a few more units. But if it is a company with more people, too many routers will cause management chaos, and at least the Internet speed will be affected... What I mean?"

Sandy suddenly realized: "Are you trying to increase the number of interfaces on the LAN?"

"Yes, as computers continue to become popular, more and more companies will continue to increase the number of computers purchased, which has new requirements for the construction of the company's local area network. If you only connect a few computers directly with a router and use the characteristics of their shared lines, it will definitely cause a series of problems such as a decrease in network speed."

"So, it is necessary to study a new type of machine. If the router is to achieve connection between computers within a small range, then this new machine must provide exclusive electrical signal paths in any two network nodes within a large range...what came to mind?"

Sophie just listened silently as the recorder and witness of the company meeting. After Alice raised another question, the Posacks and his wife were very uncomfortable with her fast speech speed, so before they could come up with anything, Alice spoke directly.

She shrugged, "It's like...a phone switch thing~?"

In this way, Posack said silly: "You mean, inventing a network switch using the mode of telephone switch?"

Sandy frowned: "This idea...what principle are you based on?"

It’s no wonder that these two professors didn’t keep up with the pace. After all, Alice’s speaking speed was too fast, and she was still a prophet after all. When a normal person proposes creativity, no one starts directly from the creativity itself. For example, Jobs’s famous willful sentence is: “I don’t want my Apple Lisa to have a fan. Just this result, you can do it yourself!”

Not to mention the specific measures to prevent the computer from without a fan, Alice's approach is to throw out the measures or the name of the product, completely skipping the process of telling creativity. In this way, no matter how professional the audience is, how can it be reflected in just three or two seconds?

"That's right, to put it bluntly, a router is like a street in a residential community, which can accommodate several modes of transportation: walking, scooters, bicycles, cars, school buses. The characteristics of the router are equipped with multiple network protocols. That's it. It's of course easier than building a road for each method."

"But the most obvious disadvantage of living in the streets...of course, it is the problem of traffic flow. As soon as the scale increases, it will be chaotic. Switches are like highways. Everyone is running on their own roads with no interference with each other at a fast speed. The network switch I am thinking of now is such a device."

Looking at the Posacks and his wife's contemplative gaze, Alice bared her big white teeth and showed a bright and smug smile at her mother.
Chapter completed!
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