Tuba Technologies的創始人Sisi Xu是《福布斯》 30位30位以下中國榜單中最年輕的企業家。TubaTechnologies由三個業務部門組成-電子設備維修，二手電子設備回收和電子設備租賃。 Siyuan成長于中國中部一個中等城市，于2013年前往北京。他在中國人民大學開始本科學習，該大學是中國最著名的大學之一，主修風險管理和精算科學。他的一些近親一直在從事電話銷售和維修工作。思遠在高中時和他的親戚有電話零售經驗。BACKGROUND:
Siyuan Xu, the founder of Tuba Technologies, is the youngest entrepreneur on Forbes 30 under 30 China list 2018. Tuba Technologies consists of three business units – electronic device repairment, second-hand electronic device recycling, and electronic device rental. Grown up in a medium city in middle China, Siyuan went to Beijing in 2013. He started his undergraduate at the Renmin University of China, which is one of the most well-known universities in China, majoring Risk Management and Actuarial Science. A few of his close relatives have been working with phone selling and repairing. Siyuan had phone retailing experience with his relatives in high school.
Siyuan found that cell-phone repairment was a big problem for most students in the university during his undergraduate. There were two main ways for students get phone repairment: the first is through official stores, which is time-consuming and quite expensive for students. And the other is through some individual stores. However, the quality of these individual stores varied a lot.
With the prior experience and resources, Siyuan decided to start his own business about electronic device repairment for university students. Based on students’ user habits, he decided to build an O2O platform based on WeChat - the most popular social media platform in China, which makes it more convenient for students to use. Meanwhile, he could use his current student network to enlarge his customer base. Siyuan has been paying close attention to O2O industry and to find if there are any new developments he could use to develop its business model.
Siyuan和Tuba的最大優勢是對目標客戶的了解。在圖巴工作的大多數人都是學生，這些人符合他們的最終用戶資料。因此，他們可以更深入地了解客戶的需求和行為，這是其成功的關鍵因素。 Siyuan建立的第一個商業模型非常簡單。這是一個O2O平臺，學生可以在此在線訂購電子設備維修。 Tuba的工作人員會在一個小時內來收集設備。同時，Tuba將為客戶提供電話以供臨時使用。這種商業模式的利潤率非常低。由于價格對于學生來說是至關重要的DMU，因此Tuba必須保持有競爭力的價格。同時，聲譽也是必不可少的，這鼓勵學生告訴他們的朋友，從而擴大Tuba的客戶群。
由于市場規模非常有限，因此這種業務模型并不持久。如何使業務長期持久是最大的挑戰。在Tuba的第三年，Siyuan決定擴展他的商業模式。他開始了二手設備回收服務和電子設備租賃服務。 Tuba為擁有備用電子設備的人和想要出租電子設備以供臨時使用的人提供了一個平臺。 Tuba將獲得20％左右的傭金。現在，租金服務已成為Tuba的主要服務。此舉為Tuba提供了更多的市場空間來探索和發展。 2018年，Tuba獲得了天使輪融資，并獲得了1000萬人民幣的戰略投資。ENTREPRENEURIAL PROCESS:
The biggest advantage of Siyuan and Tuba is the knowledge about their target customers. Most people who worked in Tuba were students, who fit their End User Profile. Therefore, they could get a deeper understanding of the customer needs and behavior, which is crucial factor for their success. The first business model Siyuan build is very simple. It is a O2O platform, where students could place order for electronic devices repairment online. And staff at Tuba would come and collect the device in an hour. Meanwhile, Tuba would provide the customer with a phone for temporary use. Such business model has a very low profit margin. As price is a crucial DMU for students, Tuba has to keep competitive pricing. Meanwhile, reputation is also essential, which encourage students to tell their friends and therefore enlarge the customer base of Tuba.
As the market size was quite limited, such a business model was not durable. How to make the business durable in the long-term was the biggest challenge. In the third year of Tuba, Siyuan decided to expand his business model. He started second-hand device recycling service and electronic device rental service. Tuba provides a platform for people who have a spare electronic device to rent and people who want to rent an electronic device for temporary use. Tuba will get around 20% commission fee. Now, rent service has become the leading service of Tuba. The move gives Tuba more market space to explore and develop. In 2018, Tuba got Angel Round and then got 10,000,000 RMB strategic investment.
MANAGING THE BUSINESS:
In the beginning, Siyuan relied heavily on social media to expand his customer base. He used his social network and asked his friend to invite their friends to the platform. Meanwhile, Siyuan got in touch with a few investors through the incubator in the school. He also got in touch with some alumni who worked in Alibaba and Investment companies. He said, “alumni is very important resource. I am so lucky to get a lot of help from them.”
Before Siyuan expanded Tuba business, the monthly cash flow of Tuba was around 400,000 RMB, with 15% increasing rate. The profit margin was quite low in the beginning, and he needed to think of ways to improve profit. And one of the solutions was lowering the quality, which was the easiest and fastest way. However, Siyuan thinks that integrity is the key to a sustainable business. He said, “Reputation is everything to some extent. If you lose it, you lose.” Therefore, he chose to transform and improve his business model to generate more profits in the long term.
“I would not say it is a success. Saying it is a success means it is finished. Tuba is not. Everything is changing so fast. But I think I am on the right track,” said by Siyuan. Moreover, the receiving of the strategic investment of 10,000,000 RMB is a milestone for Siyuan. Currently, a critical criterion for his business is customer base. He does not only focus on university students anymore. After the transformation of his business model, he also targets young people from less developed cities as potential users of his rental service. He also used payment platforms like Alibaba and WeChat to direct users to his own platform. Now, Tuba has monthly revenue of more than 1,000,000 RMB.
As Siyuan started the business before he graduated from university, his business cost him a lot of time, and he did not have much time to study. He had to skip some class. He mentioned, “I do not know if I made the right choice. We all have to make choices in our life. And time management is essential. I have to make use of my limited time.”
I would not work for the company. Currently, Tuba is a very condensed management team, and everyone has a precise role. At the same time, Tuba has a lot of staff to do the basic job, such as repairment or pack electronics. I do not think I fit any position in the company. However, I would join the company by sending my spare electronics to the company and earning money though rental. I think he made the right decision to transform his business for pure repairment to a combination of rental, repairment, and recycle. The latter is more innovation-driven, which could bring more value to his business in the long term.
I think I could be a successful entrepreneur as I share the same spirit if “do it” as Siyuan. As Aulet illustrated, passion is a significant factor for a successful entrepreneur. Siyuan is ambitious. I could feel his passion for Tuba and the industry through his eyes and expressions. “The beginning is always the hardest. I guess sometimes you just have to make the first step,” said by Siyuan. I agree. Passion is a crucial driving factor in the beginning. However, in the later stage, thoughtful planning of the business is a crucial factor for a sustainable business.