Creating a Demand (1919)

There are two ways of attacking the business problem. One is to take

advantage of opportunities already brought into existence by the laws of

chance or the work of others. The other is to make advantage by the

creation of opportunities which would otherwise never have existed.

The first can be done by any person of average intelligence. It calls for

no ingenuity. Its only demand is the time and effort necessary to buy

goods on the one hand and sell them on the other. The second calls for a

really high-grade of business ability. The man who can do it well has his

success reasonably assured.

Business is ordinarily assumed to be subject to the law of supply and

demand. It happens to be true, however, that the matter of supply and

demand is more or less subject to conditions which can be either created

or altered by human interference and guidance. The selfish and designing

have long ago discovered means of so manipulating market conditions as to

make supply and demand a negligible factor. Such, of course, is not the

kind of business method which will be allowed to permanently survive.

There is a more worthy way of dealing with the question of supply and

demand to the advantage of business. It often happens that, because of

lack of public education or because of undeveloped or abnormal community

conditions, demand for a given product has not yet been stimulated. The

business specialist who has a really worthy article to market should be

able to diagnose the situation, see what the hindering conditions are, and

take steps toward that adjustment of things which will give rise to a

normal demand. He need not be powerless in the face of the fact that

people do not desire his product. Neither can he blame the public for rot

needing it. He must make the public need it, make it see its need, and

then supply it.

In all the history of American business, probably no better example of

this sort of thing could be found than the action once taken by

James J. Hill at one stage in the development of the Great Northern

railway system through the Pacific Northwest. Mr. Hill, by the way, was

a notable example of real commercial genius. Having a positive mind, he

could plan, adapt, and build. The railway system which he developed stands

as an enduring monument to his wonderful ability.

After the first lines of the Great Northern had been built and had been in

operation for a while, Mr. Hill discovered that they were carrying very

little livestock. There seemed no demand for that particular form of

railway service. Looking into the question, he found a very definite

reason for the fact. The farmers of the Northwest had never taken up

stock-raising.

No one was to blame. The situation simply constituted a condition to be

met. There was no reason why the farmers of the Northwest should not turn

their attention to livestock. The country was good for grazing, and the

range was almost limitless. The only difficulty was the fact that

livestock had never been introduced into that section.

Mr. Hill began applying his remedy by doing the farmers a kindness. He

bought several thousands of blooded cattle and hogs, and gave them to the

farmers owning land along the right of way. There were two results. The

first was that the Northwest rapidly developed into a leading

stock-raising country, enriching the section and indirectly benefiting

the railroad in many ways. The second was that within a few years the

Great Northern was breaking the record among the railroads for the

carrying of livestock. Finding no demand for the services of his road,

Mr. Hill had created one.

This example serves to show up the true business man in his real character

as a commercial engineer. His function is a larger one than the slavish

routine of mere buying and selling. It is rather that of helping to build

that larger and better commercial world in which all business will be at

its best because all people are at their best.

Other engineers plan great mechanical projects. He plans and executes

great commercial projects. The results of his work are no less magic than

the results of theirs. The ability of the civil engineer is tested by his

power to remove the impediments and bridge the chasms that lie in his way.

The ability of the commercial engineer is tested in the same way. He must

penetrate the hills of prejudice and bridge the chasms of unconcern.

There are some enterprises which may at times succeed by force of chance

or circumstance. The only sustained and creditable success, however, must

come from intelligent promotion. One has little ground for satisfaction

over a mere random success. It is real achievement that brings enduring

satisfaction.

It takes somewhat more than merely mental power, however, to plan and

execute great commercial enterprises. The promoter must not only have a

good mind, but it must also be of the affirmative type. Only the

constructive thinker makes the great general, the great leader, or the

great engineer.

There is as much of a place for originality in business as in any other

field one could enter. It is sometimes avoided on the ground that it is

prosaic and humdrum. It is not so for the person who senses its

opportunity and enjoys the process of working out its larger

possibilities. It offers a practically unlimited opportunity for the

building of one’s powers into the fabric of an altogether necessary

social institution.

Considered from this point of view, business is infinitely more than mere

exploitation. Many have conceived the idea that it is nothing more because

a great many selfish and misguided men have never really tried to make

anything more of it. Fundamentally, however, business is a form of

public service.

The market place was one of the earliest developments in our social

scheme. Theoretically it is a means for the exchange of values to the

mutual advantage of the parties to a transaction. The assumption of any

person who enters a legitimate line of trade is that he has an article

needed by the public. It follows that the degree of his public service is

commensurate with the wideness of the sale of his product.

In taking steps, then, to create a legitimate demand for whatever he has

to sell, one does not need to hesitate on the ground that it reduces his

work to the level of mere exploitation. If he is in business as a public

servant, then the larger the service he can render the better it is, both

for him and for his patrons. The service of his patrons and his own

success are commensurate because they are mutually dependent upon one

another. Good business spells more than profit for the business man. It is

also a help to the public, and a means of progress in the world.

There need be no fear, either, that most of the possibilities of business

have been exhausted. The real world of commercial opportunity has hardly

more than been entered. Our own country is still largely undeveloped in

the use of many helpful products. There are backward communities to be

informed and cultivated. Whoever undertakes this process is a positive

factor in the making of civilization, for the need of these communities

is the greater need concerned. It would be a blessing to them to have a

demand for the tools of more efficient life and work created among them.

Then there are all the vast spaces of the world as yet largely untouched

by these more advanced methods of civilization. There are more people

waiting to be taught the use of means to comfort and efficiency than there

are to manufacture and deliver the products to these prospective

purchasers. Business men should support every sort of civilizing influence

as a means of creating a demand in far countries for what they have

to sell.

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