Fan Li (Chinese: 范蠡; pinyin: Fàn Lǐ) was an important Chinese political and military advisor for the state of Yue during the Spring and Autumn period and a chancellor of Qi. Fan was born in 517 BC. and is also known by the name Tao Zhu Gong which he took after achieving a decisive victory over the state of Wu. He is a prominent member of the Fan family, and is worshipped as a "God of Wealth" by the Chinese. The most beautiful Chinese woman of all time Xi Shi is said to be his lover/wife.
Along with the king of Yue, Fàn Li was once a hostage of the state of Wu. After three years of captivity the two of them returned to Yue, where Fàn Li helped Goujian carry out a host of reforms aimed to streamline the administration of the Yue state. In 493 BCE, Yue was finally able to destroy the state of Wu. After the victory, Fàn resigned and renamed himself Tao Zhu Gong Chinese: 陶朱公; pinyin: Táo Zhū Gōng).
In his later years he became a legend for his success in business, posthumously becoming a Saint of the Chinese money god, or the God of Wealth (Cai Shen), who is worshiped by the Chinese on the Fifth Day of the Chinese New Year. He is considered the most wealthiest Chinese in the five thousand years of the Chinese civilization. He famously became super wealthy three times, and each time gave away everything he had.
After retiring from his ministerial post he lived with Xi Shi, one of the renowned Four Beauties of ancient China on a fishing boat, roaming the misty wilderness of Lake Tai in the style of the Taoist immortals of old.
Fàn Li began his business ventures by establishing a pharmacy store selling traditional Chinese medicine. The pharmacy originally included only two elderly employees, "Questioning Uncle" (何伯, Hé Bó) and "Uncle Propriety" (德叔, Dé Shū). However, the business began to expand substantially after Fàn hired He Bo's youngest son, "Little Writing" (小文, Xiăo Wén).
Fàn Li believed that one who understood money would be willing to abandon it if it became a burden. To him, currency was only a means to an end and should not be taken too seriously. Nonetheless, it must be handled and acquired according to a set of principles which he outlined in his writings on successful business management. Fàn Li urged a somewhat loose execution of these principles, encouraging broad and flexible utilization depending on the nature of the situation.
Fàn Li wrote many classic books on the art of successful business management including The Art of Fish-Breeding (t 養魚經, s 养鱼经, Yǎngyú Jīng), the earliest known work on fish farming, and the Golden Rules of Business Success (t 經商寶典, s 经商宝典, Jīng Shāng Băo Diăn). The latter book remains very popular today and outlines the 12 principles and 12 pitfalls of business management.
Golden Rules of Business Success
The Twelve Golden Rules are as follows:
- Ability to know people's character. You must perceive evidence of characteristics from experience.
- Ability to handle people. Never prejudge a prospect.
- Ability to stay focused on the business. Have a definite focus in life and business and avoid jumping around.
- Ability to be organized. A disorganized presentation is unappealing.
- Ability to be adaptable. Make sure you are organized enough to respond quickly.
- Ability to control credit. Do not allow nonpayment. Make sure you collect what is owed.
- Ability to use and deploy people. Use employees in ways which bring out their potential(s).
- Ability to articulate and market. You must be able to educate customers on the value of goods.
- Ability to excel in purchasing. Use your best judgement in acquiring stock.
- Ability to analyze market opportunities and threats. Know what is selling according to areas and trends.
- Ability to lead by example. Have definite rules and standards. Make sure they are followed to ensure good relations.
- Ability to have business foresight. Know market trends and cycles.
The Twelve Golden Safeguards are as follows:
- Don't be stingy. Never confuse efficiency with inhumanity.
- Don't be wishy-washy. Be confident in pursuing opportunities. Time is of the essence.
- Don't be ostentatious. Do not overspend in order to make an impression.
- Don't be dishonest. Truth is the only basis for business. Without it someone will get hurt.
- Don't be slow in debt collection. Without collections, liquidity is affected.
- Don't slash prices arbitrarily. This will only trigger a price war in which everyone will lose.
- Don't give in to herd instinct. Make sure the opportunities are real and not part of a craze.
- Don't work against the business cycle. When things fall in price, they will then rise and vice versa.
- Don't be a stick-in-the-mud. Keep up with things and make progress. Examine new things objectively.
- Don't overbuy on credit. Credit is not license to spend wildly.
- Don't under-save (keep reserve funds strong). When business is slow, one with money can expand while others close.
- Don't blindly endorse a product. Make sure your vendors are still following standard operating procedure.
Cartoon versions of this book are widely available in China, Hong Kong, Taiwan and Singapore, both in Mandarin Chinese and in English. The Mandarin version includes Hanyu Pinyin and an English translation for each of the original business principles.
- 我的趣味汉字世界1 (in Chinese). 接力出版社. 2014. p. 147. ISBN 9787544835350.
- Wang, Robin R. Yinyang: The Way of Heaven and Earth in Chinese Thought and Culture. Retrieved 12 April 2015.
- Yen, L.D.H.C.H. (2013). Ethnic Chinese Business in Asia: History, Culture and Business Enterprise. World Scientific Publishing Company. p. 262. ISBN 978-981-4578-44-8. Retrieved 2017-06-25.
- "Golden Rules-Tao Zhu Gong's Art of Business". Asiapac Books. Retrieved 12 April 2015.
- Golden Rules, Tao Zhugong's art of business by Xu Hui and Mint Kang, illustrated by Fu Chunjiang, Asiapac Books (December 1998) ISBN 978-981-229-483-8
- The Inspirations Of Tao Zhu Gong: Modern Business Lessons From An Ancient Past by Chow-Hou Wee, Wee Chow-Hou ISBN 9780130605658
- Jīng Shāng Băo Diăn: Táo Zhūgōng Shāngxùn. by Xu Hui, 2nd ed., Singapore, Asiapac Books, August 2002
|Wikimedia Commons has media related to Fan Li.|