The essence of business is (1) to make profit, and (2) to
make a lot of profit, and (3) to keep making a lot a lot
and a lot of profit.
How to achieve that?
Here is a formula: Profit equals revenue minus costs.
How to bring up the revenue?
The first is to expand the market, and the second is to
eliminate the competition. Thus it is only natural for
business to promote free market
and it is also natural for business to seek monopoly and
domination of the market which will naturally make the market
not so free for their competitors.
How to bring down the costs?
Well, that comes to the most interesting part of the business
practice. Apart from demanding more from but paying less
to your workers (provided it does not negatively affect their
job performance), and apart from purchasing cheapest raw
materials possible and decreasing the expenses necessary
in producing the products while generating the highest profit
margin permitted by the market situation and the government
regulation, one important, and very, very and very important
aspect is to deal with your customers in a smart way.
You may heard some business people say "the customer
is god" or "the customer is always right".
Don't believe their bullshit. They either don't know what
they are talking about, or they are hypocrites, 'cause if
they put their theory into practice, they'll fail their business
Any business development consultant worth his salt would
advice you not to treat all your customers with equal
curtsey but apply The Pareto Principle, commonly known as
"the 80-20 rule", by dividing your customers into
two categories according to their provability to your business.
In principle, business should seek whatever excuse to
deny service to the 80% less profitable customers in
order to free the resource to better serve the 20% rich fellows
who can bring handsome profits to you.
When business consultants spell out this business success
formula at open seminar or radio program, they are often
questioned by some naive audience: Are people supposedly
born equal thus shall have equal rights?
Then the honest consultants would explain it away patiently:
Yes, people are born equal and have equal rights in our society,
but customers are not equal to your business - some have
a lot of money and will spend a lot on your products while
others have little money but a lot of troubles - therefore
you should not treat them equally, because that's your private
and you have right to decide who you want to do business
By then most audience would have been enlightened and
started to contemplate how to divide people according to
their material worthiness, which often leads to the
next question: Some customers may don't have much money to
spend on your product, but he may have a millionaire friend.
If you deny his service, you may also lose a potentially
very profitable customer.
To which consultants would always reply with ultra confidence:
This won't happen, trust me, 'cause the poors are normally
associated with the poors, which is why they keep being poor,
and the riches usually only befriend with the riches, which
is why they become richer. Listen to me, just send poor customers
packing, unless you want to run charity instead of business.
So we've learned the essence of business, that is
to allocate your resource smartly, which means: (a)
let market and profit decide who should be served and who
must be ignored, i.e. dare to be snobbish; (b) never misidentify
your business as a charity organisation, i.e. do not waste
your resource on those who can not help you make money; and
(c) when you have to pretend to be charitable, always remember
your purpose is to make profit from your charitable activities.
Therefore when former Chinese premier Wen Jiabao urged
Chinese business people to show morality in their blood,
it disclosed that this guy has no idea how to run a successful
business. No wonder under his directive, China's solid economy
has been transformed into a giant bubble. For one thing,
people in his own family exhibit no morality
in their blood, whether it is his wife, his brother,
his son or his daughter.
The New York Time's
reported on Wen Jiabao family's immoral private business
built by stealing public resource:
Wen Jiabao's family
business empire - a syndicate of thieves:
Therefore when current Chinese premier Li Keqiang advocates
to invite private business to do part of government jobs,
it exposed that this guy lacks practical knowledge
on economic management and business operation. No wonder
under his administration, China's economic bubble is about
to burst. For one thing, it speaks volumns as he takes
mentorship from Li
Yining, the old sucker who promoted to further increase
the gap between the rich and the poor and to sacrifice
an entire generation of old workers and peasants
for the great leap forward of private business development
Therefore when current Chinese president Xi Jinping expects
the private business to help improve public service,
it revealed that this guy knows nothing about business and
governance, apart from power plays. No wonder the public
lost confidence in his leadership in less than a year. For
one thing, when the officials in his government paid by the
public to manage the national affairs only care about
their own family interest, on what legal capacity and moral
ground he should request private business
people to put the public interest first?
Do the folks occupying the top positions in the nation have
slightest idea that public office and private business
have very different objectives, regardless of social
system? The former is to manage all public affairs in the
nation and serve all people in the country whether they bring
profit or not, while the latter is solely focused on making
money. That is why government can demand tax from people.
Can any private business collect tax like government does?
Then why should government be given a right
to serve only the most profitable group while private businesses
are urged to look after everyone in the community? And
as the private business would not and need not to treat
all customers as equal for the sake of profit, how can you
expect them to provide the public with the services in a
way the government is obliged to?
For another thing, since
by now Xi Jinping has grabbed all the power in his own hand
- be it politics, military, economy or media - if he
makes no progress in those areas like what were the
cases when he governed Fujian, Zhejiang and Shanghai, and
worse, if any scandalous event or explosive situation should
emerge like what was the case with Lan Xingchang criminal
syndicate when he was in Fujian, Xi Jinping
will have no one else to help him shoulder the blame like
what has been the case so far. He will have to face up to
the consequences himself.
On the other hand, Bo Xilai, the common political
enemy of the three men above, has already demonstrated to
the world through his achievement in Dalian and his
experiment in Chongqing that he is the man capable
of bringing out the best aspects from market force and
private business while keeping them under control in a
socialist system that is designed to benefit everyone,
especially the working people.
He was able to accomplish such tasks because he sincerely
cares about his people, and because he genuinely understands
Chairman Mao's theory and practice on mass democracy in politics,
economics, education and culture, and because he has comprehensively
identified the systimatic problems with capitalism, and
because through his decades of deep thinking and hard working
he has developed a Chongqing Model that is based on China's
cultural tradition, Karl Marx' proposition, Chairman Mao's
Thought, contemporary social-economic conditions in China
and broad political-economic reality in today's world.
Free Market Vs Economic Democracy
China's No.1 political prisoner
Bo Xilai once said: Market force alone cannot help
achieving the goal of common wealth. Europe and America
have been on the market economy for centuries, yet still
haven't been able to resolve the problem of the huge rich-poor
gap derived from the system of free market that has an
innate tendency of concentrating wealth in the hand of
rich few at the expenses of the majority poor.
In Germany, 70% of the population possess mere 9% of total
assets; in Britain, 10% of families hold 44% of private material
goods; in the United States, 20% of people seize 50% of nation's
fortune, with the top rich Americans, that count only for
one in a thousand percent of the US population, control more
than 10% of America's wealth. When you read these figures,
will you still keep a blind faith in market force and its
ability to bring economic democracy to all citizens in the
Chinese weibo user noted: Bo
Xilai's words scare the rich and powerful to death, no
wonder they would do anything to get him behind the bars
Trial of Bo Xilai, the Replay of A Royal Yue Fei
People Need Bo Xilai