
I work for IC design house for more than 10 years. During the 10 years, I enjoyed the life from a company start up, growth, down, and how to recovery from the worst season. We enjoyed the company at record high sales revenue and upside down during the economic depressing.
There is a interesting path for the company operation. The first stage is growth period. The company came from start up at 1998, there was only few people. Everyone focused on the product developing. There was no any sales revenue for the first year, there was only one NRE fee from a customer ASIC. But, the feeling was very well, since small size company and few people worked together, all of us were such as a family. When the product released, it was hot issue for product testing and smell the right channel, partner and agents for the product sale. The product chip cost was around $0.5, but we sold at more than $10. It was really high profit. The key point was at "right application", "few competitors" and "Niche Market".
The second stage for the company, we considered to develop the more and more product for next generation. And company IPO for the public stock market. We start the plan for more product with more engineers resource. Become a more and more human resource and "project", not a "complete product" during the stage. It took for around 5-6 years operation. It was the peak sales and the peak human resource cost. It became a a risk starting for a company.
The Third stage, the company stat to recur more and more consultant for the operation. The major issue was the company didn't alter the RD engineers management was important. For an IC design house, RD developing capability and product spec is top important. Product release schedule is very important, otherwise, competitors will jump into the market quickly. Therefore, the market will be getting bloody and impact the selling price. Of course, profit would be an issue at that time. How to cover the company expense got into very tough.
The fourth stage, company revenue was going down. We start to cost down, included to frozen the new product developing, and cut down the human resource, and expense... What would be the impact, there was no new product be announced, and no more sales resource. Of course, there won't be no more profit to cover the expense, even we start to layoff people.
The fifth stage, we faced the world wide economic going down from 2008. Every company start to impact if they were not strong enough. We are lucky, though we don't have new product, but we control the cost up to balance. Hopefully, the sales revenue didn't improve much, but profit can cover the cost. The most important is we keep the cash on hand, and didn't much investment others business. We survive and start to recur the new team to change company operation flow again. We hope to have opportunity to going to second growth after the fine tune operation flow.
Up to now, the company had been took more than 10-11 years. I would like to share experience from my Blog and record those stuff what I did. I hope to share personal opinion for my friends or you. It is a long stage for me. During the period, there are many times of opportunity that I missed. It will help me to think about what is the next step to me?