The company is headquartered in San Jose, Silicon Valley, and it took Henry about an hour to drive from his home to the company headquarters.
On the day the company was founded, there were only three employees: Henry, Posack, and Lerner. Posack managed the technology, Lerner handled the operations, and Henry simply offered suggestions for improvement. Among other ideas, Henry proposed a concept of "multi-protocol routing," defining a plan to design a new type of networking equipment that could connect various computer LANs globally, forming a unified network.
When Henry presented this innovative idea, Posack and Lerner were taken aback; they had only been contemplating a simple network for Stanford University.
"Mr. Posack, do we have any patents related to routers?" Henry asked, fully aware that while Posack had filed for patents, they belonged to Stanford University.
Henry's question made the Posack couple pause.
The router company lacked its own router patent. Was this a wise course of action? Although Stanford University would authorize them to use Cisco-related patents in the future, Henry felt it was too risky. Historically, Posack hadn't distributed any shares to Stanford University, and Henry wished to avoid any future complications.
"The router patent is likely owned by Stanford University. I'll inform the leaders that we need authorization to use it," Posack suggested after a moment's thought.
"I think it would be better to purchase it directly; it's simply safer and more convenient!" Henry nearly burst into tears at the naivety of relying on a handshake for protection.
"Alright, we'll buy it. It's not worth much anyway," Posack agreed.
Speechless, Henry accompanied the Posacks to Stanford University, first to buy the router patents and second to recruit new employees. The university welcomed them warmly and was pleased to sell the router patent to Cisco, as many had not yet realized its true value.
The company spent only $100,000 to acquire the patent.
When it came time to recruit employees, Stanford boasted some of the top computer talents in the world. Thanks to the reputations of Posack and Lerner, more than two dozen people applied within a day. Ultimately, Posack selected five individuals from the pool.
Compared to the situation before, this new Cisco had a fantastic start: it had "sufficient troops," with at least five more senior computer talents and a million dollars in funding. In 1986, Cisco officially launched its first router. Given the current circumstances, Cisco's development speed was likely to accelerate, potentially leading to router products being developed within six months. Henry was not concerned about technology; with such highly skilled individuals as Posack and Lerner, all challenges could be solved. The company's biggest hurdle remained its sales strategy.
The best products still needed marketing to thrive! Substantial investment was necessary in sales promotion.
...
As the Posacks settled in San Jose, Henry remained without formal education. Therefore, Roger Nicholas planned to enroll him in school. With a recommendation from Posack, Henry started attending the Stanford High School affiliated with Stanford University. As the youngest student ever at Stanford High School, he performed exceptionally well during the entrance examination.
While studying, Henry continued contributing ideas for Cisco's development, appearing to be a very busy student.
Time passed quickly. By March, "Harry Potter and the Philosopher's Stone" had sold 1.7 million copies. After paying taxes, Henry received a royalty of $1.2 million. Aside from returning $1 million to his grandfather, he had $200,000 remaining. During this time, Henry finished writing "Harry Potter and the Chamber of Secrets" and submitted it to the West German Publishing House for printing.
The second Harry Potter book became even more popular than the first!
It had an initial printing of 500,000 copies, which sold out in a flash. Meanwhile, Cisco's development remained on track, progressing smoothly. The only downside was that Roger Nicholas's health was deteriorating.
At over seventy years old, having lost his beloved daughter just half a year earlier, the old man's spirits had plummeted, and his health deteriorated rapidly. As winter approached, various ailments plagued him. Henry devoted his time to caring for his grandfather, keeping him company and sharing stories. He filled Roger's days with tales about school events, exciting developments regarding his new books, and Cisco's progress.
Each time, the old man listened quietly, a gentle smile adorning his face. However, he was growing frailer and more emaciated. Watching Roger's pale complexion in the hospital filled Henry with a profound sense of fear. He dreaded the thought of losing the only family member who cared for him and loved him. He had come to rely on having the old man by his side…
On April 1, 1985, April Fool's Day, Roger Nicholas passed away. Henry wept uncontrollably in the hospital. The Posacks rushed to him, offering comfort and assistance with the funeral arrangements.
On the day of the funeral, many of Roger's old friends attended. Henry met them one by one as they offered their condolences. However, when the coffin was being lowered into the grave, he found that he couldn't cry anymore.
Henry's mental state was fragile, and the Posacks helped him back home afterward.
"Henry, time heals sorrow and change," Posack consoled him.
Lerner went to the kitchen to prepare dinner for Henry. Throughout the day, Henry had scarcely eaten anything. Lerner quickly whipped up some steak, juice, and bread, bringing it to him with a sympathetic hug.
"Henry, let's eat something," she said softly.
That night, the room felt unnecessarily spacious.
As Henry lay in bed, staring at the starry sky, he imagined seeing his grandfather's face among the stars.
Days rolled on and it was early May before Henry finally showed signs of improvement. He had skipped school and spent his days at home, dedicated to finishing "Harry Potter," trying to immerse himself in writing and distract from his grief. Before long, the third installment, "Harry Potter and the Prisoner of Azkaban," was completed.
In the wake of Roger Nicholas's death, however, the bookstore's business went into decline. Several factors contributed to this decline, from competition pressures to unethical practices by some bookstore executives. They capitalized on Henry's youth and lack of management knowledge, wreaking havoc on the business.
Henry became aware of the troubling situation and was furious.
On May 10, Henry convened a board meeting. His grandfather Roger Nicholas had owned 75% of Nicholas Bookstore, which was now entirely inherited by Henry. In the conference room, he took a seat at the head of the table, his expression solemn. Half an hour later, shareholders both large and small arrived, many regarding Henry with cynical expressions.
Hank Woolf, a middle-aged man with curly hair and the second largest shareholder, sprawled casually in his chair beneath Henry's watchful gaze. Unbothered, he leisurely lit a cigarette, clearly dismissing Henry's authority as the newly appointed director. "Kids, we're busy, so let's get on with it!"
Henry scoffed, distributing copied documents before speaking coldly: "Someone in the company has embezzled funds, and I believe you owe me an explanation."
Hank Woolf threw the document across the table, grinning. "What explanation? This is just normal operational capital for the business. You're still young and naive; of course, you wouldn't understand!"
Henry sneered, "I don't understand? Fine, then I'll have a professional accounting firm review the company's finances!"
"You?!" Hank Woolf retorted angrily.
Pounding the table with force, Henry raised his voice: "I don't care how things were before. In short, before tomorrow, if anyone doesn't return the embezzled company property, I will ensure they go to jail!!!"
His declaration sent chills down the spines of the shareholders present.
"In addition, I've decided to sell the bookstore chain. I will compensate all shareholders with a five percent premium on your shares!"
"What? You plan to sell the bookstore?!!!" They were stunned.
"That's correct!" Henry affirmed. "I've hired a professional accountant to assess the company's assets. The market value stands at $24 million. You hold 25% of the shares, worth $6 million. If you're willing to sell, we can finalize a deal right now."
The meeting room erupted into chaos.
Many shareholders berated Henry, condemning him for selling the bookstore that his grandfather had dedicated his life to building. To Henry, this bookstore had essentially fallen apart and become unmanageable. Since his grandfather's illness, significant financial mismanagement and misguided actions from major shareholders had muddied the waters. He realized it would be more prudent to sell rather than try to salvage the mess.
Given the fierce competition facing brick-and-mortar stores, Henry only needed to preserve the name "Nicholas Bookstore," while selling all the physical locations. He was confident he could revitalize his grandfather's legacy and turn it into a global leader!
As the arguments persisted, Henry offered a mere five percent premium, yet they seemed insatiable, demanding even more.
"The bookstore represents our labor of love. A 5% premium just isn't enough for us to let go of our shares!"
"Exactly! We won't sell our shares for such a menial increase!"
"..."
Henry's patience waned. "Then how much do you propose?"
Shareholders exchanged glances before huddling together to whisper. Ultimately, Hank Woolf emerged from the group as their spokesperson, saying: "We're looking for at least a 20% premium!!!"
"Why don't you just rob me?!!!" Henry breathed sharply, barely resisting the urge to storm out.
"It's 20%, or else we'll not consider selling!" Hank Woolf reiterated, appearing overly confident.
Feeling the conversation heading nowhere, Henry snickered, preparing to stand. Before exiting, he turned back to Hank Woolf, warning, "Mr. Woolf, I expect the embezzled one million dollars to be returned by tomorrow. If not, we'll see you in court!!!"
"Hmph!" Hank Woolf smirked dismissively.
"Bang!"
With a thud, the door slammed closed behind Henry.
"Woolf, that little guy seems tough to handle!" observed a minority shareholder.
"Just a ten-year-old kid, and you're scared of him?!" Hank Woolf scoffed.
"But Woolf, if he actually sells the bookstore, wouldn't that render our shares worthless?" another worried minority shareholder exclaimed.
"No!" Woolf thought for a moment. "That little boy loves his grandfather too much; he'd never sell the bookstore his grandpa worked so hard to establish! He's just trying to intimidate us so we'll sell our shares to him!"
"Yes, Woolf is correct! He's just a kid—he'll yield in the end."
"Laughable…"
After stepping outside, Henry wasted no time calling Attorney Will.
"Hello, Attorney Will, this is Henry Williams!"
"Oh, hi! How can I assist you today?"
"Attorney Will, I need your help to contact potential buyers for a bookstore. Yes, I'm planning to sell my grandfather's bookstore!"
"Understood!"
After hanging up the phone, Henry looked back at the "Nicholas Bookstore" sign behind him, determination and confidence radiating from his demeanor.
"Nicholas Bookstore" was destined to become a symbol of an era.