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 women know exactly “where they are at.”
A detailed statement should be kept of all obligations. The business woman should get along as far as possible without giving notes, and when she does give notes she should see to it that the notes are taken up when due.
The business woman who overstocks shows she is a bad financier. The woman 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.