Entrep special report fan li (cristhel molina pdf)
1. SPECIAL REPORT: FAN LI
a special report on his teachings and enterprise
by: Cristhel Elizabeth Molina
2. Who is Fan Li?
Also known as Tao Zhu Gong
An advisor and prime minister to the state of
Yue during the Spring and Autumn Period
A political and military strategist
An ideologist
A businessman
Considered as the modern day Billionaire of
Ancient China, was coined the “god of wealth”
3. The Story of Fan Li
Fan Li was Emperor Gou Jian’s advisor in the
Chinese State of Yue
During the war between the state of Yue and
Wu, both Emperor Gou Jian and Fan Li were
captured and taken as hostages
It was during this time that Fan Li encouraged
Emperor Gou Jian to live a life of humility and
simplicity as a form of strategy in forging human
relationships and reclaiming the state of Yue
4. The Story of Fan Li
After Emperor Gou Jian won back Yue, Fan Li
helped him reconstruct the state by developing
policies
Fan Li left the emperor to become a businessman
and managed a pharmacy
His pharmacy began to expand and eventually
became very rich
Wrote about the “Art of Trade”, showing different
principles in business
5. Fan Li’s Contribution to Business
1) Used business analyses by using and understanding the different phenomenons of nature,
applying meteorology, season and their effect in agriculture, as well as economic theories
2) Understood the personalities of people and its key role in business
3) Unconventional views on money:
a. A person who understands money is willing to abandon it if it became a
burden
b. Money is a means to an end and should not be taken seriously
c. Money should be handled and acquired according to the principles of the “art of trade”
7. Principles of the Art of Trade
• Following the 12 Golden Rules of Business Success and 12 Golden
Safeguards (Pitfalls)
• Creating win-win outcomes, wherein competition need not result
in a zero sum game
• Creating wealth while improving the quality of life
• Avoiding worst-case scenarios, failures, and business loss
• Minimum input and maximum outcomes
9. 12 Golden Rules of Business Success
Ability to know a person’s character
“The most valuable business commodity is
trust” - David K. Williams, forbes.com
“One’s social character is often judged by
people who may have dealings with you, as
they decide whether you are trustworthy,
reliable, or such” - Ron Kurtus, school-for-
champions.com
10. 12 Golden Rules of Business Success
Ability to handle people
“Managers have to monitor the activities of
their team and the external forces. Without that
monitoring, you won’t know whether your plan is
working or if it needs to be adjusted” - F. John
Reh
“Customer service is important to an
organization because it is often the only contact
a c u s t o m e r h a s w i t h a c o m p a n y ” -
smallbusiness.chron.com
11. 12 Golden Rules of Business Success
Ability to stay focused on business
Everyone has limited time available,
therefore, it is important to do the tasks that
will help accomplish the goal
“Focus is so important because it is the
gateway to all thinking, without good focus,
all aspects of your ability will suffer” - Dr.
Jim Taylor, Huffington Post
12. 12 Golden Rules of Business Success
Ability to be organized
“When you are organized, you don’t need to
worry about things falling through the
cracks” - DBR Chamber of Commerce
Benefits of being organized:
1) Disorganization wastes your creative
energy
2) More work gets done
3) Ease of finding what you need
13. 12 Golden Rules of Business Success
Ability to be adaptable
“Business success requires the ability to
adapt to changing situations. The world of
business is full of surprises and unforeseen
events” - Darrell Zahorsky, 7 Habits of
Business Success
14. 12 Golden Rules of Business Success
Ability to control credit
Credit Management
The process of controlling and collecting
payments from your customers
“Late and non payment of bills can create major
cashflow problems for fast-growing companies”
- Santander Corporate Banking
15. 12 Golden Rules of Business Success
Ability to use and deploy people
Emphasis on recruitment and hiring
“Successful companies put the right people in
the right jobs… It takes a team of with many
different talents to bring great business ideas to
fruition.” - Amy Rees Anderson, forbes.com
The ability to develop passion and motivation
for employees
16. 12 Golden Rules of Business Success
Ability to articulate and market
Business communication and sales
Good communication allows the flow of information in
an effective way
Effectively connects the people running the business
“When communication lines are open between a
business and its customers, it can directly affect the
sales of the business” - smallbusiness.chron.com
17. 12 Golden Rules of Business Success
Ability to excel in purchasing
Purchasing focuses on sourcing, pricing, and
buying the right things at the right price
Being able to manage the company’s resources
and support the needs of operations
“Purchasing is a source of competitive advantage,
they work with suppliers to reduce costs,
innovate, and improve quality or speed up
deliveries” - Group Intellex
18. 12 Golden Rules of Business Success
Ability to analyze market opportunities and threats
Knowing the industry and the market
Assessing the attractiveness of a business
opportunity
Awareness in business opportunities as well as
innovation
Awareness of competition and avoiding
complacency
19. 12 Golden Rules of Business Success
Ability to lead by example
“Leadership acts as a catalyst that makes all
other elements work together; without leadership,
all other business resources lie dormant” - David
Ingram, smallbusiness.chron.com
Setting standards at the workplace and following
them
An attitude and habit that aspires for excellence
20. 12 Golden Rules of Business Success
Ability to have business foresight
Planning and forecasting, looking at the bigger
picture
Looking into the internal and external
environment of an industry and being able to
predict changes and formulate response to
ensure long-term survival and success of a
company
22. 12 Golden Rules of Business Safeguards
Do not be stingy, do not confuse efficiency to inhumanity
“Valuing only work that generates profit is not just wrong,
it is inhuman” - theguardian.com
Profitability should not be the only concern of a business
Social Entrepreneurship
“Social entrepreneurs act as the change agents of
society, seizing opportunities others miss in order to
improve systems, invent and disseminate new approaches
and advance sustainable solutions that create social
value” - pbs.org
23. 12 Golden Rules of Business Safeguards
Do not be wishy-washy, be confident in pursuing opportunities
“The most important trait a leader can have is
decisiveness… Business is a contact sport and you
can’t be afraid to make a mistake.” -
businessinsider.com
Making decisions that are based on facts and analyses
Common Set-backs of decision making:
1) Risk Aversion
2) Analysis Paralysis
24. 12 Golden Rules of Business Safeguards
Do not be ostentatious, do not overspend
Managing the company’s resources
For a business to achieve a high level of
success, a firm must have a grasp of the
amount of money that is going out and
coming in.
25. 12 Golden Rules of Business Safeguards
Do not be dishonest
“Not only can a man be honest and grow rich, but it is
almost impossible for a man to grow rich unless he is
honest” - J.J. Corn
Dishonesty clouds judgement and may lead to bad
decisions
Having an honest reputation also reflects well of the
company
Integrity and Transparency
26. 12 Golden Rules of Business Safeguards
Do not be slow in debt collection
Managing a company’s cash flow, efficiency
in collection of accounts receivables
“It takes money to make money”
Diligence in reviewing aging accounts
receivables and maximizing collect ability
27. 12 Golden Rules of Business Safeguards
Do not slash prices arbitrarily
Avoiding price wars
“Pricing is the reflection of everything you
do as a business, from product
development to delivery of goods and
services” - Patrick Campbell
Engaging in price wars is a loss situation
28. 12 Golden Rules of Business Safeguards
Do not give in to the herd instinct, make sure all opportunities are real
Herd Instinct
A lack of individual decision-making or
thoughtfulness, causing people to think and
act in the same way as the majority of those
around them
29. 12 Golden Rules of Business Safeguards
Do not work against a business cycle
Business cycle is the response to
exogenous changes in the real economic
environment
The challenge is to sustain growth and
development of the company
30. 12 Golden Rules of Business Safeguards
Do not be a stick in the mud, be updated with progress
Being able to adapt to changes and
updates in technology and business
processes
Relates to adaptability, creating more
efficient and effective ways of business
31. 12 Golden Rules of Business Safeguards
Do not overbuy on credit
“Do not buy on money you don’t have”
Managing resources and avoiding
overspending
Inefficient payment of credit purchases
leads to increasing interest
32. 12 Golden Rules of Business Safeguards
Do not under-save
Creating and maintaining reservoir
Making sure that cash flow is managed well
and maintaining assets
Cash reservoir is important especially for
unforeseen factors that may affect the
business
33. 12 Golden Rules of Business Safeguards
Do not blindly endorse a product
Knowing the product you are selling
Sphere of influence between endorser and their
following
Accountability and ownership
Endorses reflect the quality of the product and
represents the company that is being endorsed
