The first men to function in the creation of new industries are
those who are already well grounded by long experience in some
special form of industry. The new organizations must have men well
qualified to direct each of its branches.
In general it may be stated that a new organization must start
with a superior article to manufacture and the elements of a
superior organization. Sometimes it is possible by invention alone
to win without the aid of the modern plan of specialized
organization. On the other hand, the success may be attained by
superior organization without a superior article to manufacture,
but in general it is better to combine all of the possible
beneficial factors in a new organization.
Organizers should know the market possibilities. If possible, the
product should be sold directly to the user. The contact with the
ultimate user is of supreme importance in the development of the
invention and the organization. In dealing through a selling
agency the manufacturer is not in control of the whole business.
The selling agent dictates the policy of the whole business. He
dictates the policy of the manufacturing plant from the selling
agent's needs and that seldom fits the manufacturing conditions.
The selling department generally demands many changes in product
and wide range of articles of manufacture, while the manufacturing
conditions require that special skill and ability that can only be
developed by continuity of action of a given kind, and this
restricts the range of produce.
If the head or one of the heads of a proposed organization knows
the market condition and knows what can be done in the sale of a
new article, then the question of invention and manufacture can be
safely left to those who have been well grounded in such
principles. That leaves only the question of the financial
arrangements.
The method of forming a stock company under the laws of Vermont is
very simple and people are generally well disposed to invest in
the stock of the new company providing the men at the head are
known to be competent--the inventor as an inventor, the business
man as a business man and so on all the way through. The standards
of measure of each one of the men and the standards of measure of
conducting the business are set forth in other chapters. At this
time it is sufficient to say that getting the capital is the
easiest part of the job. The real work is the preliminary work of
acquiring experience and devising plans.
A plan to create a new industry does not call for disloyalty to
the employer, for as a rule it is very foolish to attempt to
compete with an established organization excepting on some
business that gives the new organization an advantage by one or
more of the following points: invention, simpler product, simpler
methods, a higher degree of specialization, a more effective and
direct scheme of sales or a better spirit of personnel.
One of the essential things for the business man--if the business
man is not the inventor--is to grasp the fact that his success is
tied up to the inventor. The inventor is needed in the development
all the way through, not only in guiding the form of the
manufactured article, but in a large degree by dictating the
process by which the article is to be manufactured. The inventor
usually needs curbing to keep him from disturbing his own market
by the creation of newer forms, but these matters are treated
under the chapter of invention.
The principle element to set forth now is that it is a waste of
time and money for a few business men to buy a patent or an
invention and then dispense with the service of the inventor. They
are merely going to sea without a navigator. On the other hand it
is equally true that the inventor must consider the business side
of the problem and do all in his power to devise effective means
to facilitate the process of manufacturing.
The point to be made here is that there is no chance to win in
this game by sharp practice. It is only through work and the
combined work and energy of all the men in the organization that
anyone can win.