A Special Report for the Entrepreneurship class of Prof. Jorge Saguinsin

1. FAN LI
Special Report
Rhea G. Jardin
September 10, 2012
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com

2. Who is Fan Li?
- Fan Li, also known as Tao Zhugong (Lord Taozhu), lived during the Spring and Autumn
period from the Chu state
- An official of King Goujian of Yue state; Goujian was defeated by King Fuchai of Wu state
in a battle for imperial dominance and became a slave
- With the help of Fan Li, King Goujian was able to retrieve the Yue state
- He retired as advisor of King Goujian and lived at the eastern shores of Qi where he
changed his name to Chiyi Zipi and went into farming and salt trade; he then became a
rich and famous businessman
- He later settled down to Tao where he called himself Tao Zhugong where he engaged in
trading of food based commodities and his Chinese medicine shop, Kang Bao Medical Hall
- His principles focuses mainly on understanding the properties of nature and personalities
of people and applying that to the changing economic environment
- In a few years, he became a millionaire and was well-known throughout the country. He
was regarded as “God of Wealth”
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3. Concepts on Money
Fan Li’s unusual view about money:
- One who understand money would be
willing to abandon it if it became a burden
- It is only a means to an end and should
not be taken seriously
- It must be handled and acquired
according to principles
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4. 12 Golden Rules for Business Success
Ability to be:
1. a good judge of character
- know who can be trusted and losses are avoided
2. customer-oriented
- customer satisfaction both retains and attracts clients
3. single-minded
- stay focus on your business line and avoid arbitrary switches
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5. Con’t:
12 Golden Rules for Business Success
Ability to be:
4. captivating in your sales promotion
- be organized with your presentation
5. quick to respond
- be adaptable and organized enough to respond quickly
6. vigilant in credit control
- do not allow non-payment
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6. Con’t:
12 Golden Rules for Business Success
Ability to be:
7. selective to recruit only the best
- ability to use and deploy people
8. bold in marketing your product
- ability to articulate and market
9. smart in product acquisition
- use your best judgment in acquiring stocks
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7. Con’t:
12 Golden Rules for Business Success
Ability to be:
10. adept in analyzing marketing opportunities
- know what is selling according to areas and trends
11. a corporate model
- have definite rules and standards
12. farsighted in developing a total business plan
- know market trends and cycles
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8. 12 Golden Safeguards for Business Success
1. Don’t be penny-pinching
- never confuse efficiency with inhumanity
2. Don’t be wishy-washy
- be confident in pursuing opportunities
3. Don’t be ostentatious
- spend wisely, do not overspend to make impressions
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9. Con’t:
12 Golden Safeguards for Business Success
4. Don’t be dishonest
- truth is the only basis for business
5. Don’t be slow in debts collection
- liquidity is affected with poor collection
6. Don’t slash prices arbitrarily
- this will trigger in price war which everyone will lose
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10. Con’t:
12 Golden Safeguards for Business Success
7. Don’t give in to herd instinct
- make sure the opportunities are real
8. Don’t work against the business cycle
- if prices fall, it will surely rise again and vice versa
9. Don’t be a stick-in-the mud
- examine new things effectively
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11. Con’t:
12 Golden Safeguards for Business Success
10. Don’t overbuy on credit
- credit is not license to spend wildly
11. Don’t under save - keep reserve funds strong
- when business is slow, one with money can expand
12. Don’t blindly endorse a product
- know your vendors and make sure they follow standard
operating procedure
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12. Sources
Golden Rule for Business Success,
http://books.google.com.ph/books/about/Golden_Rules_for_Business
_Success.html?id=KDs__FNR99QC&redir_esc=y
http://history.cultural-china.com/en/47History1726.html
http://en.wikipedia.org/wiki/Fan_Li
http://en.wikipedia.org/wiki/Cai_Shen
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13. FAN LI
Special Report
Rhea G. Jardin
September 10, 2012
rheajardin.blogspot.
www.
com