The Complete Business Package V1.0

1 The United States Commissioner of Labor, Carroll D. Wright, who knows all about statistics, puts it that " figures will not lie, but liars will figure." The logic of business requires that capital should be kept as active as its safe and legitimate employment will permit. Except as a safety reserve there should no more be idle dollars than idle clerks. Facilities for obtaining information are abundant, and he who neglects to provide himself with them either takes blind risks, or limits his business and narrows his profits. Men in trade sometimes say, "I don't care about my credit, I buy for cash," forgetting that a great advantage of the capitalist is not altogether his hard cash, but the credit his capital commands, which many times multiplies its producing power. Many a concern has failed because it neglected to establish credit when it was not needed, that it might be available in time of need. Chances are often knowingly taken with old patrons which would not for a moment be considered from new applicants for credit. We are more the creatures of habit than we realize, and the risks we are familiar with are apt to be minimized against our better judgment, by long intercourse and safe dealing. This is natural And kindly, but in business it is weak. The unlucky passengers are those who are on board when the ship goes down. A merchant's ledger is his barometer, so to speak; it often indicates that a storm is gathering. If a customer's account is analyzed and it is found that two years ago he discounted his bills, that last year he grew tardy in his payments, that he pleads for " dating," and is slower still this year, there is some reason for it. Is he doing too much business for his capital? This can be ascertained. Has he lost his money? If not, it is surely not in the right place. In either case it is time for the merchant to take careful bearings and perhaps shorten sail....