The Art of Teasing - Chapter 9
Chapter 9
Wen Zhengyu thought to herself, If I couldn't even earn back the rent, the old man wouldn't have let me open a studio here in the first place. Though she lacked confidence in herself, she had absolute faith in her grandfather. Still, she could tell that Old Master Wen genuinely harbored such worries. Even someone with no business acumen whatsoever knew that in this world, no venture came with a guarantee of profit without risk — and the most fatal detail was that she understood absolutely nothing about running a business.
But what she didn't know, she could learn. She hadn't been born knowing how to paint either.
Wen Zhengyu examined the three-story building meticulously, committing its layout, arrangement, and estimated dimensions firmly to the mind's eye. She had also formed a rough direction for the renovation.
Wen Li had said she would come over tomorrow morning, so Wen Zhengyu worked through the night, sketching out a preliminary renovation draft.
It could only be a rough sketch. If she were to produce a detailed plan to meticulous brushwork standards, it would take at least a month.
Wen Li arrived shortly after breakfast.
Wen Zhengyu invited Wen Li to her room and presented the renovation draft she had drawn overnight for Wen Li's review.
Wen Li paused, startled, and asked, "This is..."
"The renovation draft for the studio. Time was limited, so it's not very detailed," Wen Zhengyu said, spreading out the drawing and pointing at the sketch as she began explaining. "My idea is for the studio's interior design to follow a traditional Chinese aesthetic. After all, my paintings are based on ancient myths and legends, blended with mythological elements. For example, in front of the main entrance — there's enough open space to construct an archway with the signboard mounted on it. It would certainly be eye-catching. The archway would feature openwork carvings, predominantly auspicious clouds and auspicious beasts. We could hire Master Gu, the one who handled the renovations for our Old Family Mansion. His family's ancestral craftsmanship is excellent; even my grandfather speaks highly of it."
Wen Li arched an eyebrow faintly and asked, "For the base of the archway — marble or white marble?"
Wen Zhengyu detected a subtle edge in Wen Li's tone. She raised her head to look at Wen Li and asked, "Is something wrong?"
Wen Li carefully reviewed Wen Zhengyu's renovation plan once more and said, "May I ask you two questions first?"
Wen Zhengyu nodded. "Of course."
Wen Li asked, "What is your renovation budget? And what is the total investment capital?"
Wen Zhengyu's lips parted slightly, but she couldn't produce an answer for a long moment.
Wen Li pressed further. "How much?"
Wen Zhengyu shook her head. "Elder Mu's side... hasn't said yet..."
Wen Li nodded, looking at her paternal cousin with a mixture of exasperation and admiration. With deep sincerity, she said, "In other words, without even knowing the other party's investment amount or the budget you can allocate for renovation, you... want to proceed with this — this plan of yours. Based on this renovation proposal and the caliber of craftsmen you're aiming to hire, I've made a rough estimate: it absolutely won't come in under two million." She made a 'five' gesture with her fingers and said, "The carving work for the archway, staircase, and main doors — don't even think about it coming in under five hundred thousand." She glanced at Wen Zhengyu, pulled out a tissue, and handed it to her. "Here, wipe your sweat. Is that cold sweat breaking out?"
Wen Zhengyu took the tissue, wiped her forehead, and turned the air conditioning a touch cooler.
Wen Li said, "For renovations, there are renovation companies. You provide the renovation budget and style requirements, and their designers will produce renderings based on those specifications. Materials, quantities, labor — everything is considered according to budget and desired effect." She propped her chin on her hand, studying Wen Zhengyu. "It's just an office space, not your own home. Why decorate it so extravagantly?"
Wen Zhengyu bit her lip in embarrassment and silently began gathering up her renovation sketch.
Wen Li asked her, "Where's your business plan?"
Wen Zhengyu let out an "uh" and said, "Haven't... had time to prepare it yet."
Wen Li looked at Wen Zhengyu with an expression that clearly said 'you must be joking' and remarked, "The business plan isn't done, and you rushed to do the renovation design first?" Her tone shifted as she continued, "Fine then. First, tell me: how do you plan to run this art studio?"
Wen Zhengyu pondered carefully as she spoke. "My thinking is to use the first floor as an exhibition hall and sales area, and the second and third floors as a reception area and painting workspace. For selling paintings, we'd promote and sell through multiple channels — participating in art exhibitions and such is essential. Online promotion, media coverage, including some auctions, charity sales, all of that is possible. Additionally, regarding painters and artists, we'd primarily recruit young painters and illustrators. They paint, and the studio handles promotion and marketing for them. We'd invite senior masters to come give guidance periodically or on an ad hoc basis. I think for young painters... it should help them improve and develop... as one of the ways to attract and retain talent, I suppose. That's all I've thought of for now. As for the rest, it still needs more detailed consideration."
Wen Li gave a noncommittal "mm" and pressed, "And what else?"
Wen Zhengyu said, "You know I've never done business before. You could say I'm completely ignorant when it comes to commerce. I no longer have the capital to learn through losses, but given the current situation, opening an art studio is... probably the best path forward."
Wen Li nodded, signaling Wen Zhengyu to continue.
Wen Zhengyu went on. "My thinking is that, for me right now, as long as I don't lose capital, as long as I don't lose money, that's already a gain. But how to avoid losses, how to avoid going into the red — that's impossible for me to manage on my own."
Wen Li asked, "So have you thought of any solutions?"
Wen Zhengyu said, "Regarding the studio itself, I hold a forty percent stake, and the remaining sixty percent is allocated as equity shares for investors contributing capital. I want to offer twenty percent of my own shares to ask for your help in keeping things on track."
Wen Li looked at Wen Zhengyu with surprise, momentarily taken aback. She thought for a moment and asked, "Do you mean: give me twenty percent equity to be a consultant, or to bring me in to manage and run the studio?"
Wen Zhengyu said, "With your net worth, twenty percent equity wouldn't be enough to persuade you. With twenty percent equity, you would have the right to inquire into affairs. On the operational side, I need your help and guidance."
Wen Li looked at Wen Zhengyu, feeling a pang of distress. No one in the family had ever imagined that Wen Zhengyu would one day walk the path of business. Her temperament, her interests, the environment she'd grown up in — she was destined for the path of an artist. Wen Zhengyu's appearance and bearing were exceptionally outstanding. With Third Uncle's affairs having brought the family low, who knew how many people were scheming to take advantage of her? With this soft, gentle, and somewhat naive and straightforward personality, if she stepped into the business world, who knew how much suffering she'd endure. Yet, as Wen Zhengyu had said, the family had fallen, and running an art studio was, for her, probably the best way forward under the circumstances. With herself present, she could at least protect Wen Zhengyu a little. Wen Zhengyu offering twenty percent equity to ask for her help — that showed considerable sincerity.
Wen Li deliberated for a moment, and an idea formed in her mind. She gently uttered two words: "Fifty percent." Her tone was soft but exceptionally firm.
Wen Zhengyu looked a little confused. "What do you mean?"
Wen Li said, "If you don't want the studio we painstakingly build up to become someone else's, if you don't want to lose your voice in decision-making, we need to hold at least fifty percent of the shares between us. Holding more than fifty percent grants veto power."
Wen Zhengyu hesitated. "Will the other party agree?"
Wen Li shrugged nonchalantly. "If they don't agree, switch to someone who will. You have a project, growth potential, visible profits — attracting investment isn't difficult."
Wen Zhengyu thought it over. "So we need to make them see the potential for profit first, and then we can negotiate the fifty percent?"
Wen Li's lips curved into a smile, carrying a hint of playfulness. "Exactly." Then she got down to serious business. "If they want to invest, for fifty percent equity, anything less than ten million, tell them to turn around and go back where they came from."
Wen Zhengyu's mouth fell open in shock as she stared at Wen Li. Her studio — which currently consisted of nothing more than a rented little building — was now worth... twenty million? She formed a "two" with her fingers, silently questioning Wen Li.
Wen Li swept a glance over the dumbstruck Wen Zhengyu, genuinely worried that if Wen Zhengyu tried to go into business, she'd end up bankrupting herself. She said, "If one investor isn't enough, find several. More investors means you can dilute the shares each one holds. One major shareholder holding fifty percent versus several shareholders each averaging less than twenty percent — in the vast majority of cases, the dynamics of power are completely different."
Wen Zhengyu blinked, thinking to herself: Aren't shareholders supposed to be partners? But then she reconsidered — even partners could end up in power struggles within a company, and when disagreements arose over business decisions, it usually came down to who held more shares.
Wen Li paused briefly and added, "Of course, if you go out to attract investment in your current state — knowing absolutely nothing — even two million would be a stretch."
Wen Zhengyu humbly sought advice. "How does Sister Lili think I can attract twenty million in investment?"
Wen Li said, "Before you go seeking investment, first have your grandfather, your master, and those senior masters who are close to Grandfather and your master paint a few pieces for you — pieces that will be the treasures anchoring your establishment. With their paintings, your shop — your studio's — prestige level immediately rises. And of course, take a few photos with them and place them somewhere in the shop not too conspicuous, yet somewhere anyone with working eyes would see upon entering — that's the icing on the cake. When you hold the opening, do your utmost to invite them to attend."
Wen Zhengyu flushed slightly with embarrassment. "I don't have the money right now to buy paintings..."
Wen Li pressed a hand to her forehead and let out a long sigh before continuing, "No money is fine. Just trade on your face and reputation."
Wen Zhengyu: "..."
Wen Li said, "Over all these years, Grandfather's reputation has been exceptionally solid. You two, grandfather and granddaughter, sold off everything you had to repay Third Uncle's debts. Although there's no money left, the credit rating has shot right back up by a large margin. Besides, when Grandfather goes out now, he still maintains his presence — luxury car, bodyguards in tow, living in a house that's not shabby at all. If you don't tell anyone, who would know you have no money? From what outsiders can observe of your family's current situation, there's no big money left, but a small eight figures should still be manageable."
Wen Zhengyu: "..." She thought: If we had money, wouldn't the point be to actually pay them? But she understood that there was sound reasoning behind Wen Li's words.
Observing that Wen Zhengyu still seemed to not quite grasp it, Wen Li elaborated, "You two, grandfather and granddaughter, have excellent credibility. Your family still has some assets remaining — no one fears you can't afford the paintings and will stiff them on payment. So, when you go to acquire the paintings, be honest and straightforward — say you're opening an art studio and want to request paintings. The ownership of the paintings will belong to the studio, and since the studio hasn't been registered yet, payment will come a little later. In short, come up with the reasons yourself. Anyway, you've still got a personal net worth in the low eight figures, and you're going to be opening a major studio and walking the path of an entrepreneur — what's there to fear about delaying payment for a few paintings by a few days?"
Wen Zhengyu: "..." All she had left in her pocket right now was the pocket money her grandfather had just given her a few days ago. The down payment Ye Ling had paid her for Phoenix Battles the Heavens — she had already given it to Sun Yuan for household expenses.
Wen Li said, "Once you've secured agreements for the paintings, you can take those agreements and go find investors. Once the investment is secured, when it's time to collect the paintings, you pay for them then. It's a simple transaction — you hand over the money, they hand over the painting. If you don't pay, they don't give you the painting. Perfectly fine."
Wen Zhengyu had no rebuttal. She nodded emphatically.
Wen Li chattered on tirelessly with Wen Zhengyu until midday. She had lunch at Wen Zhengyu's home before finally taking her leave. Just before stepping out the door, she turned back to Wen Zhengyu once more and said, "Alright, start arranging things step by step. First, get the anchoring treasures organized — that's the priority. As for the renovation, the renovation company under my name will handle it for you. I'll take this renovation sketch for now. Send me the renovation budget later, and I'll have my best designer produce the drawings for you. As for that old man Mu — if he doesn't come looking for you, don't you go looking for him. Keep your posture high; that's the only way the equity split can keep tilting in your favor. Remember, fifty percent is the bottom line. If you can negotiate it to sixty-forty or even seventy-thirty, even better. Think about it — you still have to give me twenty percent. Figure out what's left for yourself." Having said her piece, she waved at Wen Zhengyu and headed out. At the gate, she stepped back again to add one more reminder: "When it comes time to sign the studio equity contract, you absolutely must call me or Grandfather. Do not, under any circumstances, forget this — got it?" Only after receiving Wen Zhengyu's promise did she somewhat relax and leave.
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