Fan Li was an official and advisor to King Goujian of Yue state during the Spring and Autumn period in ancient China. With Fan Li's help, King Goujian was able to regain control of Yue state after being defeated in battle. Later in life, Fan Li retired from government service and became a wealthy businessman and trader known as "Lord Taozhu" and the "God of Wealth". He developed principles for understanding people and the economic environment, and outlined both "Golden Rules" and "Safeguards" for business success based on his experiences.

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