The business of Li Ka-shing, the richest man in China

Li Ka-shing often said: "You must treat people with sincerity, others will be open and honest, others will report with sincerity." From a poor wage earner to a Chinese super-rich, Li Ka-shing's business myths can explain the early stage of entrepreneurship. Integrity, the establishment of goodwill. In Li Ka-shing’s own words, “The credibility is the first, and the honesty is treated. In addition, there is no other way.”

The first step of Li Ka-shing’s entrepreneurship was to select the plastics industry that he was very familiar with. Plastic is an emerging product after the Second World War. It has the advantages of easy processing, durability and low price, and has great development prospects. In 1950, he took out years of savings, and with the help of his relatives and friends, he made a 50,000 Hong Kong dollars to open the "Changjiang Plastic Factory", mainly producing toys and household items. In the early days of the venture, despite the unusually difficult conditions, Li Ka-shing's factories rarely had employee turnover, and the products were more popular, and they also entered the European and American markets. However, due to lack of experience, the production expansion was too fast, the factory received too many orders, the simple equipment and the shortage of personnel clearly could not keep up with the need, only pay attention to increase the number of products, but the product quality dropped significantly, and finally many defective products appeared. . The warehouse began to be filled with products that were returned due to quality issues and delivery delays. The products can not be sold, the raw material suppliers are on the door, and the customers have come to the door to claim. This made the "Changjiang Plastic Factory" suddenly in trouble and was on the verge of bankruptcy.

Therefore, Li Ka-shing realized that "honesty" is the basis of business reputation. So he called the staff to a meeting, admitted to them the mistakes of their own business, and even tired of the employees, I hope the employees forgive, and said that the employees who have a turnaround, the dismissal can come to work. Then, he visited the bank, the raw materials supplier, and the customer one by one, and apologized to them for their mistakes, guaranteed that they would repay the arrears within the time limit, and asked them for countermeasures to save the crisis. Li Ka-shing's honesty has been understood by most people. They also know that the collapse of the "Changjiang Plastic Factory" is also unfavorable to themselves. With the support of the industry colleagues, Li Ka-shing and his "Changjiang Plastic Factory" have finally passed the crisis.