Small beginnings

Before starting his own company, Tian worked for the marketing department of the state-owned telecom giant China Mobile, a stable and lucrative job many would covet. However, Tian believed it would be too boring to work for the same company until retirement. He wanted to start his own business, which would give him a greater sense of achievement.

After resigning from China Mobile in 2010, Tian worked at Douban.com, a Chinese social networking website, for two years while preparing to start his own company.

The company of 18 people was founded in March last year. It rented two offices in an old building located deep in one of the hutongs—narrow streets or alleys—near the Lama Temple.

His partners are mostly colleagues or business associates he met while working for the two companies.

"We have both software and hardware engineers who have worked for China Mobile, Douban.com and Apple, which is one of the reasons why we are able to make smart hardware—a combination of hardware and software," said Tian. "Smart hardware makes the fullest use of our technological strength."

Although the company has a strong team, it's not easy for a start-up to survive in a fiercely competitive environment.

The team spent over 30 hours working non-stop to prepare for the product launch in January. The product is priced at 79 yuan each ($13) and sold around 10,000 per month, making enough of a profit to keep the company running.

However, most team members' income is lower than that offered by their previous jobs, as most of the profit has been directed toward research for improving the product.

Tian said his family members' support has been vitally important. Now his income has been significantly reduced, working late into the evenings as well as weekends, leaving little time for his family.

In addition to a strong work ethic, another requirement for business starters is to stick to one product. As a 37-year-old man with extensive experience in the mobile phone and Internet fields, Tian has been able to avoid making many detours such as excessive investment in advertisement in the preliminary stages of business or choosing a poor-quality hardware producer. However, one detour he failed to evade was diverting resources from the smart tracker to making another kind of smart hardware, which he declined to name. Fortunately, he realized his mistake quickly enough and shifted the focus back to the smart tracker.

"The likelihood of success for a start-up is tiny. Only by focusing our attention on one product and constantly making efforts to increase and improve its functions to better satisfy customers' needs will we be successful," said Tian.

NUT TRACKER: Zizai Technology's new line of products aimed at helping users locate lost items

The smart tracker will be installed with the Global Positioning System later this year and an English version will be released in October targeting international customers. As the number of users grows, the product will enable them to help others find lost objects. For example, when a user loses his or her keys, he or she can ask other users to connect with the lost keys with the Nut app—a function that will allow the user to overcome the 50-meter distance limit.

Hi-tech drive

Tian is not alone in entering the smart hardware industry. As smart devices like SmartBand, a smart watch and pedometer developed by Japanese multinational conglomerate Sony, gains popularity in China, more and more hi-tech companies are trying their hands at these products.

"Most domestic companies engaged in producing smart hardware are start-ups; however, it's hard to say which can be successful," said Zhu Xudong, a journalist with Tech.qq.com.

Tian has benefited greatly from the Beijing Government's supportive policies for the development of small and medium-sized enterprises (SMEs), such as tax reductions and discounted interest for loans.

His smart tracker won the silver prize at a gift competition held by the Beijing Municipal Commission of Tourism Development. As a result, the company has earned the opportunity to take part in exhibitions hosted by the local government where it can promote the product for free.

Beijing has attached great importance to the hi-tech industry. "A new orientation for Beijing is to become the country's center for scientific innovation, and it is capable of achieving such a goal with its abundant technological and intellectual resources," said Guo Jinlong, Secretary of the Beijing Municipal Committee of the Communist Party of China, while assessing the city's economic performance in the first half of the year at a meeting in July.

In order to provide better services for SMEs, the Beijing Services Center for SMEs was established in 2000. The center, which now has branches in every district of the city, is responsible for implementing the government's preferential policies for SMEs and providing them with services and guidance.

Tian said that as the SME Services Center of Dongcheng District is located near his company, he is able to find out about the latest policies immediately after they are issued.

"The government is trying to make things easy for start-ups," Tian added.

Tian does not regret his choice of quitting a well-paid job to start his own business.

"It's interesting to run one's own business because one never knows what will happen tomorrow," he said.

(Photos by Wei Yao)

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