The businessmen of Zhejiang Province are famous throughout China for their savvy and success. Recently I found a translation of the Zhejiang businessman’s bible, a rough translation of 22 rules Zhejiang businessmen supposedly live by. They are as good a way as any of understanding how most legitimate Chinese businessmen view themselves and their actions.
- Watch the news daily. If you do not understand China’s political situation you can not comprehend its economy.
- Agreements and contracts are great but first check if their check cleared.
- A businessman’s reputation is the key to his future. Keep your promises and don’t make commitments you can not keep.
- Never put all your eggs in one basket. No matter how confident you are, always plan for the worst and hope for the best
- Don’t play all your cards at once. Save your best cards for the final play.
- Understand opportunity and risk. Pursuing a business opportunity is not the same as pursuing a deal because it has low risk.
- Be very careful about your business partner(s). Never take on a partner you have known and worked with for less than a year. Only take on partners who live by their word, are honest and loyal. Mutual benefit is the key to any successful long term business relationship. If you want good partners you have to be a good partner, in good times and bad.
- Don’t bring family members into a business unless all of the other members understand and agree that it is good for everybody.
- Don’t get personally involved with any woman (person) who could use the relationship against you or your business.
- Don’t talk about detailed business plans to your girlfriend/wife. The less they know, the safer they will be in the future.
- Don’t forget to pay taxes, but take every legal step to reduce your tax burden.
- Even if you are number one in your area of business, be humble and remember that the difference between a fool and a wise man is understanding.
- Don’t get involved in political conflicts, always try to remain neutral. It’s never a wise decision to pin all of your hope on one side.
- Watch the bottom line, but be aware there will be no gain until there is an investment.
- Don’t use money to save your face (other people’s perception of you). Face is important but your personality, abilities and actions are what will make you successful and respected.
- How much capital you have in your company is your business and no one else’s. The only time it matters is when business decisions have to be made. Otherwise it should be like a women’s age, often wondered about but never disclosed.
- Learn from other businessmen and case models in China, foreign ones like Microsoft and IBM are not practical or meaningful to you.
- Don’t use politicians or thugs to solve business conflicts. Obey the rules of the business world and play it as it lies.
- Select and organize others to work for you and you only need to take charge of the core parts.
- Always have an exit strategy.
- Use the media and journalists, but never trust them completely.
- You can use bribes to further your business but you can not rely on them.
Do they sound strikingly familiar? How would you change or add to these rules? Contrast them with the thrifty and diligent ways recommended by Benjamin Franklin in his essay “The Way to Wealth” which included:
- “There are no gains, without pains.”
- "One today is worth two tomorrows."
- "Time is money."
- "A life of leisure and a life of laziness are two things."
- "Get what you can, and what youget hold."
- "Sloth, like rust, consumes faster than labor wears, while the used key is always bright."
- "Have you somewhat to do tomorrow, do it today."
- "The eye of a master will do more work than both his hands."
- "Early to bed, and early to rise, makes a man healthy, wealthy and wise."
Ironically, my hero, Franklin mentioned nothing about honesty and integrity, while the Zhejiang businessman’s bible dealt with it at some length. What does it mean, I leave that to you.
On a separate note the University of Wisconsin Alumni Club of Beijing, which includes the entire UW system, is looking for sponsors to support the first in a series of events which will highlight UW’s expertise in biotech, law, engineering, architecture, medicine, business, environmental studies etc. If you are interested please contact Matt Buyer, club president at beyev.matt@gmail.com. n
