Hu Xueyan's Business Philosophy - How a Young Apprentice Became a Wealthy Merchant

Author: Xu Pinghua / Country: Mainland China
Publisher:
Publish Date: 2006-08-01
Features: Bold Decisions: Betting When Knowing It's Unwise In business activities, caution and stability are essential. When facing a major decision, one must not only be cautious and stable but also possess the spirit of "courage." Hu Xueyan possessed a kind of courage that ordinary merchants did not. This courage was neither the desperate last-ditch effort of a gambler blinded by loss nor the reckless, friend-protecting impulsiveness of someone who would stab others in the back for a friend. Instead, it was the result of in-depth understanding, meticulous analysis, and a grasp of the bigger picture, leading to decisive judgment. Therefore, Hu Xueyan's courage was a "wise" courage.
After the opening of Fuke Money Exchange, which Hu Xueyan established, business flourished quickly due to his expertise, having grown up around money chests, and the capable assistance of his staff. The reputation of the exchange grew ever louder. Seeing that things were well underway, Hu Xueyan planned to travel to Shanghai to learn about the silk industry and expand his business operations. Just as he was about to set off, Zhejiang Provincial Commissioner Lin Gui sent a message, requesting a temporary loan of 50,000 taels of silver from Fuke Money Exchange.
Fifty thousand taels was no small amount for a newly opened exchange like Fuke. Hu Xueyan had only heard of Lin Gui and had no prior dealings with him. Moreover, he heard from officials that Lin Gui was about to be transferred out of Zhejiang. This loan request was likely to cover the financial gap left by his departure. Hu Xueyan was in a dilemma. If he lent the money, and Lin Gui left, wouldn’t it be like throwing money into the water, unheard of and wasted? Even if Lin Gui didn’t default, someone like Hu Xueyan would not go to his official residence every day to collect debts. Fifty thousand taels was also a significant loss for Fuke. But if he helped Lin Gui out of a tight spot, Lin Gui would surely remember him. According to insiders, Lin Gui was not the type to default on debts or be stubborn. Now that he was transferring, he didn’t want to leave a financial "gap" that could hinder his career prospects. He urgently needed money to resolve the issue.
Hu Xueyan weighed the pros and cons and decided to take a "risk." He instructed his staff to immediately gather 50,000 taels of silver and deliver it to Commissioner Lin. If he was going to take a risk, he might as well do it boldly. Soon after, a messenger returned, his steps light and his face beaming with joy, unable to hide his delight.
Hu Xueyan knew something good had happened. He asked the messenger to sit down and tell him more. It turned out that when the silver was delivered to Lin Gui, Lin Gui was surprised at how quickly Hu Xueyan had acted. Despite never having met him before, Hu Xueyan had lent him money so readily, earning Lin Gui’s admiration for his decisiveness. In return, Lin Gui offered "a gift of plum." He immediately told the exchange’s messenger that he was transferring to Jiangsu to oversee the collection of military rations for the Jiangnan and Jiangbei camps. Fuke should open a branch in Shanghai, and all future provincial rations would be exchanged through Fuke Money Exchange in Jiangsu. This was a substantial business opportunity and would also expand Fuke’s influence to Shanghai—exactly what Hu Xueyan had been hoping for. From then on, doing business in Shanghai would no longer be a worry about lack of capital.
Hu Xueyan exclaimed in delight at having accomplished another great success. P11-12