A financier and a general are much the same thing. The financier makes
the dollars do the work at the best place, and the general does the
same thing with his soldiers. The financier with plenty of money in the
bank and the general with plenty of soldiers at his command are alike.
They give the order and the thing is done, for they have the material
to do the thing with. The difference between the good financier and the
bad financier is like the difference between the good general and the
bad one, the difference being that the good one makes a little go a
long way, and gets the best results from the little under his command.
The cause of many failures is due to bad financing instead of bad
business. The trouble is few business men know exactly "where they are
at."
A detailed statement should be kept of all obligations. The business
man should get along as far as possible without giving notes, and when
he does give notes he should see to it that the notes are taken up when
due.
The business man who overstocks shows he is a bad financier. The man
who buys too much on possibilities makes a mistake.
As you go along this year you should make statistics of the receipts
and expenses by the day, week, month and year. With these figures you
can make up a budget of your receipts and expenses for the coming year
with reasonable correctness.
Keep your resources well in hand. Buy often rather than buy in large
quantities.
If you are owing money to the bank, have your plans arranged so that
you can realize on your assets quickly.
The good general always plans his campaign to be ready for attack that
may come through unexpected sources. The good financier is always ready
for an attack on his finances.
The concerns from whom one buys may be prosperous. The bank with whom
one deals may be flourishing, and yet without warning something happens
and you are suddenly called upon to liquidate your indebtedness. You
should be prepared for this sudden call.
Financing is an art, and you will never be a good financier unless you
have had perplexing problems to solve. In order to solve problems you
must have the pro and con, in other words, the details of your receipts
and expenses. These figures should be put down plainly, with elaborate
detail, if necessary, so you may count on your figures and make your
plans accordingly. Preparing for emergencies is one of the first things
the financier should understand.