Rich for three generations: Hold on to wealth

Author: Li Zhendong
Publisher:
Publish Date: 2006-12-01
Features: In this era, you need to create wealth, and you need to hold onto it even more, and create even more wealth! This book addresses the common social phenomena of "it's hard to create wealth, and even harder to hold onto it" and the "three-generation rule of wealth," analyzing and providing in-depth insights into the strategies and tactics for building sustainable wealth from various perspectives of entrepreneurship and business management. It draws on the successes and failures of numerous wealthy individuals and businesses both domestically and internationally, sharing the wisdom of survival and growth of individuals and enterprises. Whether you are an entrepreneur or an ordinary reader, you will benefit from this book for a lifetime! As the saying goes, "It's better to be a rooster's head than a phoenix's tail." How many people, full of passion and determination, embark on the arduous journey of entrepreneurship, enduring countless hardships to carve out their own empire. It is well-known that "conquering the world is easy, but ruling it is hard." Few can sustain their glory across generations, some fading away early, or disappearing, letting their efforts go to waste.
Recognizing the difference Between the Rich and the Poor
Often, the poor feel that the rich are favored by wealth, and many wealthy people believe this too. However, when looking at history and across cultures, countless wealthy individuals and their descendants have failed to hold onto the wealth they accumulated, losing their former riches entirely, unable to escape the old saying, "No family can remain wealthy for a thousand years, nor can a flower bloom for a hundred days." It is a cause for lamentation and sorrow. So, why does society repeatedly witness this astonishingly similar scene? The root of the problem lies in the fact that "starting a business is hard, but maintaining one is even harder." From a certain perspective, "maintaining a business" presents greater challenges than "starting one," requiring the ability to handle more complex situations and a longer, more arduous path. Not only does one need to create wealth, but like Grandfather Gao, they must also hold onto it and create even more.
Let's start with generations—the entrepreneurs. In the early stages of entrepreneurship, most entrepreneurs, whether objectively or subjectively, carve out a path based on the current situation and their instincts. The success of many entrepreneurs is largely related to the following factors:
1. They seized a favorable opportunity.
2. They stumbled upon a unique path to wealth.
3. They utilized special resource channels.
4. They found an extraordinary model.
However, when your wealth empire gradually expands, relying on the same instincts and methods from the early stages and boldly shouting, "Go ahead, be bold!" will no longer bring the same luck. You will not only take many detours but also pay a high price. In reality, we often see many people, after achieving success, stubbornly follow the so-called success model of the past. Of course, some may succeed, but more often, they do not achieve the same good results as before, and some even face a. Moreover, when entrepreneurship enters the growth and development stages, the past conditions of small scale, few employees, and single business operations no longer exist. New challenges such as expanded and complex organizational structures, human resources, financial operations, technological innovation, and market expansion demand higher requirements from entrepreneurs. This necessitates addressing sustainable development issues. If the old methods are simply applied again, it simply won't work.
Regarding this, let's listen to the personal insights of Liu Yonghao, who was ranked as the richest person in mainland China in Forbes' 2001 list: "When a business grows, you must change the mindset of doing everything yourself. Professional managers must be hired, and division of labor must be emphasized. I used to manage over a dozen businesses myself, always busy. Later, I realized that the problem was too much centralized power, so I made a firm decision to boldly delegate authority."
What is even more frightening is that many people rely on unchanged experiences and methods, initially not realizing any major problems. But over time, small issues accumulate and