Tongji University School of Economics and Management Alumni Association

March 1, 2021

Pan Jun, a 2013 MBA alumnus of Tongji University’s School of Economics and Management, is among the 28th batch of student entrepreneurs supported by the Tongji Branch of the Shanghai University Student Technology Entrepreneurship Foundation. In 2018, he founded Shanghai XiaoPan Data Service Co., Ltd. at Tongji University’s National University Science Park. The company is dedicated to becoming a leading, solution-driven, and “human-centered” provider of digital professional solutions. By leveraging industrial internet technology, it facilitates the upgrading and digital transformation of traditional plastic processing industries. To date, the company has deployed workshop production visualization and traceability systems for over a dozen plastic processing enterprises, with its platform connecting more than 500 sets of plastic processing equipment in real time.

01 Recruiting the Founding Team

Whether it’s the ice-breaking session of the first class, the business simulation sandbox course, or the group assignments during the final defense, all emphasize the importance of building an excellent founding team, especially its core members. A team with clear goals, complementary skills, mutual trust, defined roles, and the ability to continuously learn and evolve significantly increases the likelihood of entrepreneurial success. However, most tech entrepreneurs, including myself, often face obvious shortcomings in team-building during the early stages. Recruitment is typically based on individuals’ willingness to join or prior collaborations and familiarity, rather than aligning with the project or company’s goals and needs. Shortcomings in the core team can impose significant limitations on the business. If founders invest more effort and focus on finding the right people—partners who align with the project and are willing to strive together—it will undoubtedly accelerate progress. For tech entrepreneurs, this is generally a weak area, so addressing this gap is a critical consideration for entrepreneurs at our stage. Startups often face issues such as unclear division of roles, skill deficiencies, and vague goals within the core team. I am still exploring and navigating how to better address people-related challenges and look forward to further discussions and learning with classmates and professors in the future.

02 Setting and Breaking Down Project Goals

Leading a team requires a clear and well-defined goal, which is crucial and must adhere to the SMART principle (Specific, Measurable, Achievable, Relevant, Time-bound). This goal should be recognized by the entire team, with specific responsibilities assigned to individuals, regular assessments, and validation by market clients. Some may argue that entrepreneurship is an unpredictable journey, with constantly changing external conditions, and as long as the general direction is correct, adjustments can be made based on market dynamics without the need for precise goals. However, adapting to external changes and setting clear, phased goals for the team are not mutually exclusive. Lack of unified goals can lead to significant internal friction, even if the team shares a common direction. This is especially critical in the early stages of a small team. Therefore, establishing unified goals that the team acknowledges during year-end or year-start internal meetings is vital. Additionally, clear short-term (within 1 year) and mid-to-long-term (3-5 years) goals should be set to guide daily work and behavioral norms. By setting goals, the team can also establish clear authorization and division of responsibilities.

03 Developing Financial Acumen

Tech entrepreneurs often lack strong financial skills, yet financial management is critical to a company’s operations. This includes areas such as financing, accounts receivable and payable planning, tax strategies, and cash flow management. While some aspects can be delegated to professional financial staff, as a CEO, one must pay sufficient attention to cash flow and corporate financing (capital management). Numerous promising projects have failed or lost market position to competitors due to poor planning in these areas. This was clearly illustrated in our sandbox simulation course and Professor Fu’s course on working capital and cash flow management. Before taking these courses, my understanding of these aspects was shallow, and I devoted insufficient attention to them. This is an area that needs improvement, and I plan to engage more with classmates who have financial backgrounds to learn and exchange ideas.

04 Building a Digital Operations System

Many projects by Tongji entrepreneurs are highly distinctive in specific niche areas but lack integration with mainstream digital technologies, such as digital marketing, customer acquisition, internal management, and delivery. This leads to slower development or even falling behind competitors despite an early start. In today’s era, digital technologies are being applied and evolving across various fields. Founders must stay current and combine the latest digital technologies with their core technologies to create a “core technology * universal digital technology” multiplier effect, accelerating their company’s development and competitiveness. Therefore, startups should begin building their digital application capabilities from the outset. The digital tools compiled during our group defense project are highly practical and cost-effective, significantly improving internal and external efficiency. I’m delighted to see that some fellow entrepreneurs are already experimenting with these tools. I hope we can continue to share experiences and insights on their application to progress together.

People (Team) + Clear Goals (Tasks) + Finance (Money) + Digitalization (Tools) + Core Technology (Moat) = A More Robust Entrepreneurial Journey