Squandered 100 Million in Two Years? Why did this 30-Year-Old Financially Free Entrepreneur Fail Repeatedly?
A Hundred Million Gone, But Still Couldn’t Stop the Losing Streak
Mr. Zhang, only 30 years old, had already made over 100 million in the finance industry and achieved financial freedom to pursue any endeavor. However, in 2020, he embarked on an ambitious entrepreneurial dream - establishing a “scenario factory” that combined finance and e-commerce business models. Unfortunately, this dream was short-lived, as his 100 million fortune was squandered within just two years!
Ultimately, he had to return to his hometown in Fujian at the end of 2022 with only his remaining assets. Now, more than half a year later, he reflects on this experience with regret, saying, “If I had cut my losses earlier, I wouldn’t be in this situation.”
| Major Losses | Amount Invested |
|---|---|
| Heavy cross-industry investment in celebrity endorsements | Over 300 million |
| Office space, equipment, and other costs | Over 10 million |
| Company personnel and operating expenses | Over 50 million |
| Total | Over 100 million |
Celebrity Endorsements Flopped, and the E-commerce Dream Seemed Absurd
It all started in 2020. Mr. Zhang had already achieved some success in the finance industry but wanted to take it further. He planned to establish a “scenario factory” that combined manufacturing, finance, and e-commerce industries. His concept was:
- Collaborate with factories to produce goods
- Utilize financial companies for capital supply
- Have an e-commerce company handle marketing and sales
Everything seemed perfect, but he overlooked a significant flaw - a lack of understanding of the e-commerce industry and team building. As Mr. Zhang later reflected, “I was too infatuated with the charm of live streamers and movie stars at the time.”
In early 2022, he signed multiple internet celebrities and Hong Kong/Taiwan movie stars at exorbitant prices (up to tens of millions) in an attempt to leverage their popularity for live stream sales. However, the results were disappointing:
“We paid 200,000 for a special live stream by a host with over 1 million followers, and you know how much they sold? Only 1,000!”
Another popular young actor was signed for nearly 3 million and recorded nearly 200 episodes but failed to generate any profit for the company.
This left Mr. Zhang with a massive headache, not only suffering heavy losses but also wasting a significant amount of time and manpower. Even worse, he discovered corruption and embezzlement within the company team, which undoubtedly added insult to injury and accelerated the company’s financial crisis.
Striving for a Better Life
Looking back on this experience, some might say Mr. Zhang was simply crazy. However, if you truly understand his personal circumstances and family background, it’s not hard to see why he went all-in, even at the cost of losing his entire fortune.
From a young age, Mr. Zhang aspired to become an entrepreneur and boss, not just for the money but to gain true freedom in life. As he said, “I want to go anywhere I want and do anything I want. I want to become a true entrepreneur, not just a businessman.”
This ideal can be traced back to when he left his hometown at age 10 to study in Xiamen and had already started his own business by 17. This live stream e-commerce venture, aside from his boldness in innovation and exploration, had another underlying reason:
“I hope that through my efforts, I can provide my family with sufficient material conditions. I don’t want my children to follow in my footsteps; this is a gift for them.”
Indeed, this entrepreneurial failure has had a significant impact on his life. He had to sell his properties and vehicles, while his mother had to take a job to supplement the household income. More heartbreakingly, his son’s name, Zhang Chengzhi (meaning “to become wise”), embodied all his wonderful hopes and dreams for his child.
Entrepreneurial Lessons: Understand the Domain, Control Risks
Mr. Zhang’s experience is undoubtedly a cautionary tale that all entrepreneurs should heed. We can draw the following valuable lessons from it:
Don’t hastily enter unfamiliar domains. Even for successful individuals, venturing into new areas without sufficient understanding and professional talent support can lead to trouble.
Emphasize risk control. Before investing substantial funds, you must establish stop-loss limits and exit mechanisms. Never go all-in and take on unnecessary risks.
Maintain rational clarity. Mr. Zhang’s infatuation with celebrity marketing and desire for success clouded his judgment, leading to irreparable mistakes.
Prioritize internal team building. As a company grows, internal conflicts and management risks will also increase. Robust internal controls and talent selection mechanisms are crucial.
Maintain passion for your business. Despite setbacks, Mr. Zhang did not give up. He rediscovered his initial drive and is seeking new paths for development.
The entrepreneurial journey is always fraught with challenges, but maintaining a clear mind and resilient spirit can turn failures into stepping stones to success. We hope that Mr. Zhang, this “30-year-old financially free entrepreneurial veteran,” can continue pursuing his ideals and dreams, ultimately achieving resounding success in his future endeavors. The path of entrepreneurship may be arduous, but with unwavering perseverance and passion, all obstacles can be overcome, and dreams can be realized.
Overall, while Mr. Zhang’s entrepreneurial failure is regrettable, his valuable lessons and experiences will become a treasure for him and other entrepreneurs. We look forward to the day when this once “30-year-old financially free entrepreneur” can rally, forge ahead, and reach new heights in the business world! We wish him all the best and smooth sailing!
Summary from the following YouTube video: