Chapter 2 - Liu Bei's 20 years of entrepreneurship saw repeated failures but he kept fighting: Why did he turn his life around only when he met Zhuge Liang?

# Towards the End of the Eastern Han Dynasty At the end of the Eastern Han Dynasty, the realm descended into chaos. The Yellow Turban Rebellion shattered the four-hundred-year rule of the Han imperial house; Dong Zhuo's usurpation destroyed the last dignity of the bureaucratic system. Warlords rose side by side, and the great era of contending for supremacy in the Central Plains officially began. Amid this mighty wave of "entrepreneurship" stood prominent figures: Yuan Shao and Yuan Shu, brothers from illustrious backgrounds, who commanded widespread support thanks to their family's legacy of "four generations holding the highest offices"; Cao Cao, a man of great talent and bold vision, who rose rapidly with the political foresight of "holding the emperor to command the nobles"; and Sun Quan, who inherited his father and brother's legacy and steadily built power in the wealthy six commanderies of Jiangdong. Among these warlords, Liu Bei's entrepreneurial journey was exceptionally arduous. From the age of 28, when he joined the campaign against the Yellow Turbans, to 47, when he visited Zhuge Liang thrice at his thatched cottage, he spent twenty long years trapped in a cycle: attaching himself to others, rising briefly, suffering defeat, and fleeing for his life. Despite possessing top-tier warriors like Guan Yu and Zhang Fei, he failed to establish a single stable base, becoming a "homeless dog" in the troubled times. Yet when the 47-year-old "veteran entrepreneur" Liu Bei met the 27-year-old "strategic newcomer" Zhuge Liang, a historic strategic restructuring unfolded. The *Longzhong Plan*, just a few hundred words long, not only mapped out a clear blueprint for Liu Bei but also transformed his long-drifting "roving bandit-style team" into a goal-oriented group. From then on, Liu Bei's forces sailed like a ship fitted with a compass: they marched west to seize Jing and Yi provinces, confronted Cao Cao to the north, and eventually founded the Shu-Han regime, completing a reversal of fortune from "a nobody rising against all odds" to "one of three powers dividing the realm." Liu Bei's story has long transcended history to become a classic case for later entrepreneurs studying strategic thinking. Why did Liu Bei, with fierce generals, public goodwill, and noble aspirations, stagnate for twenty years without a foothold? Why did Zhuge Liang's arrival completely turn the tide? Beneath it lies the fundamental logic: **direction matters more than effort**. Without strategic support, even the strongest execution amounts to aimless toil; a clear strategic positioning aligns limited resources into a cohesive force, enabling a breakthrough. --- ## Liu Bei's Predicament: Twenty Years of Struggle with Fierce Generals but No Strategy In AD 207, as Liu Bei stood before the thatched cottage in Longzhong, his heart was filled with confusion and anxiety. At 47, he was approaching the age of "knowing heaven's will," yet his career remained one of "living under another's roof." His twenty-year journey was bitter and helpless: starting by suppressing the Yellow Turbans and attaching himself to Gongsun Zan; seizing Xu Province only to be betrayed by Lü Bu; submitting to Cao Cao, earning recognition in the "Discussion of Heroes Over Wine," yet fleeing after the Imperial Edict Incident; seeking refuge with Yuan Shao, only to witness his catastrophic defeat at Guandu; and finally taking shelter under Liu Biao in the small city of Xinye, even viewed with suspicion by Liu Qi, leaving him barely safe. From a modern entrepreneurial perspective, Liu Bei's early team was a "three-nothing operation": no clear positioning, no core business, no stable cash flow (base area). He acted like an opportunistic entrepreneur, chasing every trend and attaching to whoever offered more "funding" — busy in appearance, but ultimately working for others. ### 1. Starting Point: Ambition and Team, But No Core Direction Liu Bei's beginnings were not poor. Though born humble, selling mats and straw sandals, he claimed descent from Prince Jing of Zhongshan — a royal identity that carried an aura of legitimacy amid the pro-Liu, anti-Cao sentiment of the late Han, making it a valuable brand IP. More importantly, he early on gained two top co-founders: Guan Yu, a fearsome warrior capable of slaying enemy commanders amid thousands of troops, a top technical backbone; and Zhang Fei, bold and wealthy, who provided initial capital and followers, a resourceful partner. In AD 184, the Yellow Turban Rebellion erupted. The court called on local elites to form militias — Liu Bei's first entrepreneurial opportunity. He allied with Guan Yu and Zhang Fei, recruited volunteers, and earned the post of Commandant of Anxi County, his first official position, like obtaining a startup license. Yet he lacked any strategic plan; his only goal was to gain an official post and rise from commoner to bureaucrat. He had no idea what to do next. This lack of direction quickly backfired. When the court dismissed officials promoted for military merit, Liu Bei, angered by an inspector's arrogance, flogged him and abandoned his post. His fledgling venture collapsed. He wandered with Guan Yu and Zhang Fei, serving under Gongsun Zan, Tian Kai, and others, losing control of his own cause. ### 2. Core Flaw: Scattered Resources, Haphazard Action Liu Bei's biggest problem in twenty years was not a lack of talent or resources, but not knowing where to deploy them. He tried everything but mastered nothing; chased every opportunity but seized none. The most telling example was his repeated loss of Xu Province. In AD 194, Tao Qian, dying and admiring Liu Bei's benevolence, ceded governorship of Xu Province to him — Liu Bei's first stable base, like a startup securing a core market. Strategically located, populous, and resource-rich, Xu Province was pivotal. Instead of consolidating it, Liu Bei made fatal strategic mistakes: sheltering the treacherous Lü Bu to counter Cao Cao, and diverting troops to attack Yuan Shu, leaving Xu Province undefended. Lü Bu seized Xiapi, capturing Liu Bei's family, reducing him to a fugitive. Though he briefly reclaimed Xu Province, Cao Cao's army crushed him, costing him the hard-won base. This exposed his lack of strategy: he failed to prioritize defending his core territory, scattering forces and losing everything. He repeated such errors: accepting Cao Cao's title while plotting against him; using Yuan Shao's troops while secretly contacting Liu Biao. This double-dealing prevented full trust from allies and focused no resources. Like many startups that dabble in e-commerce, livestreaming, and communities all at once, he achieved nothing profound. ### 3. Comparison with Contemporaries: Without Strategy, Effort Fails to Break Through Cao Cao and Sun Quan, by contrast, had clear strategies and rose swiftly. Cao Cao's core strategy: **hold the emperor to command the nobles**. In AD 196, he moved Emperor Xian to Xuchang, gaining political legitimacy. Warlords either submitted or were labeled rebels. His every move aimed to unify the north: defeating Yuan Shao at Guandu, pacifying Ji and Qing provinces, campaigning against the Wuhuan, and conquering Guanzhong — all steps toward unification. Sun Quan's core strategy: **root in Jiangdong, advance steadily**. He focused on consolidating his base, appointing capable ministers, developing production, and allying with Liu Biao to avoid two-front war. Facing Cao Cao's massive invasion, he firmly allied with Liu Bei, winning the Battle of Red Cliffs and securing Jiangdong. His "conservative" strategy made him one of three ruling powers. Liu Bei had neither political legitimacy nor a fixed base. He drifted like a ship without a compass. As modern management puts it: strategy is choice — choosing what to do, and more importantly, what not to do. Liu Bei tried everything, diluting his energy and resources, achieving nothing in two decades. In AD 201, Liu Bei settled in Xinye under Liu Biao for six depressing years. Once, rising from a banquet to relieve himself, he saw fat accumulating on his thighs and wept. When Liu Biao asked why, he lamented: > "I once rode constantly, so no flesh grew on my thighs. Now I no longer ride, and fat has returned. Days rush by, old age approaches, yet I have accomplished nothing — that is why I grieve." These words summed up his twenty years of frustration: great ambition, but no strategy, watching time slip away. --- ## The Longzhong Plan: A Comeback Blueprint by the 27-Year-Old Strategist In despair, a pivotal figure changed Liu Bei's fate: Zhuge Liang, a hermit in Longzhong. In AD 207, recommended by Xu Shu, 47-year-old Liu Bei visited him three times with Guan Yu and Zhang Fei, finally meeting the 27-year-old strategist. Their quiet conversation gave birth to China's most famous strategic blueprint: the *Longzhong Plan*. In hundreds of words, Zhuge Liang outlined a vision of three kingdoms, analyzed the balance of power, identified strengths and weaknesses of Cao Cao and Sun Quan, and clarified what Liu Bei should and should not do — finally giving direction to the lost leader. In modern business terms, it was a complete strategy: market positioning + differentiated competition + long-term development. ### 1. Analysis of the Realm: Accurate Market Judgment Zhuge Liang began by mapping the "market structure": > "Since Dong Zhuo, heroes have risen, controlling provinces and regions. Cao Cao, weaker than Yuan Shao, defeated him through strategy, not just fate. Now he commands a million host and holds the emperor — we cannot rival him. Sun Quan rules Jiangdong for three generations, with natural defenses and popular support; he can be an ally, not a target." This meant recognizing two giants: Cao Cao, a monopoly with overwhelming power; Sun Quan, a regional leader too strong to conquer. Direct confrontation was suicide. Only a "blue ocean" untapped by giants offered survival. This is the mark of a top strategist: many startups fail by ignoring market reality and challenging giants blindly. Zhuge Liang drew clear red lines for Liu Bei. ### 2. Core Strategy: Seize Jing and Yi, Differentiated Competition in the Southwest Zhuge Liang pointed to the blue ocean: > "Jing Province controls the Han and Mian Rivers, reaches the southern seas, links Wu and connects to Shu — a strategic land its ruler cannot defend. Yi Province is rugged, fertile, a heavenly granary; Gaozu founded an empire here. Liu Zhang is weak, Zhang Lu to the north; the people are wealthy but uncared for, and talents long for a wise lord." He urged Liu Bei to take Jing and Yi as his base, for three reasons: - **Superior geography**: Jing was a transport hub; Yi was easily defensible and resource-rich. - **Weak rivals**: Liu Biao and Liu Zhang were incompetent, with internal unrest. - **Brand fit**: Liu Bei's reputation for benevolence contrasted with their cruelty or weakness, winning popular support. This solved Liu Bei's twenty-year lack of a base, transforming him from a dependent follower to an independent power. ### 3. Long-Term Vision: Ally with Wu Against Cao, March North Zhuge Liang also laid out long-term expansion: > "As a descendant of the imperial clan, renowned for virtue, if you hold Jing and Yi, guard their passes, befriend the Rong in the west, pacify the Yue in the south, ally with Sun Quan, and govern well; when the realm changes, send a general from Jing to Wan and Luo, while you lead troops from Yi to Qinchuan. The people will surely welcome you with food and drink. Then hegemony is achieved, and the Han house revived." The plan had three steps: 1. **Consolidate the base**: govern internally, secure borders, ally with Sun Quan. 2. **Wait for opportunity**: bide time until Cao Cao's regime weakened. 3. **Two-pronged attack**: strike the Central Plains and Guanzhong simultaneously, leveraging popular support for the Han. The *Longzhong Plan* enlightened Liu Bei. He finally understood his failure stemmed from poor strategy, not ability or luck. He told Guan Yu and Zhang Fei: > "Having Kong Ming is like a fish having water." This was not just praise for Zhuge Liang, but recognition of strategy's importance. The plan was grounded in reality, feasible short-term, visionary long-term, and remains a model business plan today. --- ## Team Transformation: Power Tensions Between Veterans and Outsider Zhuge Liang brought direction but also conflict: veteran founders Guan Yu and Zhang Fei resented the young outsider who gained power without battlefield deeds. This mirrors modern startups struggling with senior pushback against external executives. Liu Bei resolved tensions through clear authority, trust, and role definition. ### 1. Veterans' Grievance: Meritorious but Unconvinced Guan Yu and Zhang Fei had loyally followed Liu Bei for twenty years, fighting countless battles, enduring exile, and risking their lives. Zhuge Liang, a civilian with no record, was suddenly elevated to decision-maker. They felt their contributions were dismissed. Records show Liu Bei grew extremely close to Zhuge Liang, sparking open complaints from the two warriors. ### 2. Liu Bei's Leadership: Clarify Roles, Establish Authority Liu Bei firmly stated: > "Having Kong Ming is like a fish having water. I ask you to speak no more of this." This meant: - Zhuge Liang's strategic value was irreplaceable. - Veterans' contributions were still valued. - Clear division: Zhuge Liang planned strategy; Guan and Zhang executed militarily. Liu Bei backed this with action: giving Zhuge Liang full command at the Battle of Bowang Slope. Zhuge Liang's fire tactics defeated Xiahou Dun, proving his ability and winning the veterans' respect. ### 3. Team Evolution: From Heroism to Strategic Unity Zhuge Liang transformed the team from individual heroism to coordinated strategy. The Battle of Red Cliffs exemplified this: alliance diplomacy, weather prediction, fire tactics, and joint operations secured victory through teamwork, not individual bravery. He also built a talent system, recruiting Pang Tong, Jiang Wan, Fei Yi, and others, ensuring long-term strength. The shift from personal rule to institutional governance laid Shu-Han's foundation. --- ## Modern Lessons from Strategic Thinking: Enterprises and Lives Need Their Own Longzhong Plan Liu Bei's story remains relevant: strategy determines success in entrepreneurship and life. The *Longzhong Plan* is a compass for anyone. Strategy is not about what to do, but what **not** to do — focus resources on core goals. ### 1. For Enterprises: Small Companies Win with Strategy, Large Ones with Systems Startups, with limited resources, fail without clear strategy, as Liu Bei's first twenty years show. How to create a modern *Longzhong Plan*: - **Avoid giants**: compete in vertical niches, not monopolized markets. - **Secure your Jing & Yi**: claim a blue-ocean segment, build a loyal user base. - **Plan long-term**: wait for market windows, avoid reckless expansion. Large firms also need strategy: Nokia and Kodak collapsed by clinging to outdated models. Even with strength, stagnation leads to disruption. ### 2. For Individuals: Life Needs Clear Strategic Positioning Many people toil aimlessly due to lack of life strategy, like Liu Bei before Zhuge Liang. A personal *Longzhong Plan* needs three parts: - **Ultimate goal**: a long-term purpose to guide choices. - **Clear path**: break goals into short, medium, and long-term steps. - **Learn to abandon**: reject distractions, focus on strengths. Adapt to trends: adjust paths as times change, just as Liu Bei shifted from dependence to independence. --- ## Historical Details: Overlooked Truths of Entrepreneurship Hidden details reveal deeper lessons about entrepreneurship and life. ### 1. Zhuge Liang's Workplace Wisdom: Resource Integration Zhuge Liang was not only a strategist but a master integrator: uniting Liu Bei's brand, Guan-Zhang's fighting power, Sun Quan's alliance, and popular support in Jing and Yi. His "ally with Wu against Cao" required diplomacy and coalition-building — empty without execution. Modern professionals need integration skills: leveraging superiors, colleagues, clients, and even competitors to achieve goals. ### 2. Pang Tong's Brand Comeback: Even Fine Wine Hides in Deep Alleys Pang Tong, "Young Phoenix," was initially ignored for his appearance. Rejected by Sun Quan, he was given a minor post by Liu Bei. He proved himself by resolving months of cases in one day. With recommendations from Zhuge Liang and Lu Su, Liu Bei promoted him to Military Advisor. This teaches: - Strength is foundational. - Self-promotion is essential — ability alone is invisible in a competitive world. ### 3. Tao Kan's Brick-Moving Philosophy: Pattern Determines Destiny Tao Kan, an Eastern Jin general, moved bricks daily to maintain resolve during exile: > "I aim to recover the Central Plains; overindulgence would weaken me." His discipline reflected great pattern: retaining ambition amid hardship, building strength for opportunity. He later became a key statesman. Like Liu Bei's perseverance, pattern defines potential. Giving up to hardship limits growth; persistence and self-cultivation create opportunities. --- ## Soul Question: Who Is Your Zhuge Liang? Liu Bei's rise depended on Zhuge Liang, but more on his own sincerity, trust, and resolve. Many seek their own strategist, yet the real Zhuge Liang is **yourself**. Even the best strategy fails without commitment. In life and work, advice matters, but decisions and execution are yours. True strategy comes from your own judgment and effort. Liu Bei's lesson: without strategy, effort is wasted; with strategy and resolve, breakthroughs follow. Have you found your *Longzhong Plan*? Do you know your goals, your path, and what to abandon? Like Liu Bei seeking Zhuge Liang, we must reflect deeply. With clear direction, every step counts. Success is not luck — it is strategic clarity and unwavering execution.