The cost of poor management

Whatever the reports of commercial agencies, it is mismanagement that causes the greatest percentage of deaths of enterprises. Ill-luck - the unexpected crop failure or earthquake - may now and then wipe out a business, but mismanagement steadily and surely adds its quota to the list huge failure.

Poor business management comes from lack of knowledge of "how" of management methods. The man who does not know how to handle his business - or not getting someone who knows how to do it for him - is only baiting failure. Good management comes from a thorough knowledge of a trade, a knowledge of management principles and the ability and willingness to apply these principles.

The management is of two kinds, general and detail. A man can be a good general manager, and do not know the details. Another man might be an excellent manager retail, and still lack all the necessary knowledge to general management. When the knowledge is combined with a general knowledge of special handling, then you see a "captain of industry". These entrepreneurs were by far the greater parts, men who have the broad scope of the great principles, and a thorough understanding of the commercial details of their proposal.

An example of good general management would be to a man who has a wide grip to see if it would be possible to run a railroad from New York City to the Pacific coast. Such a man might not be able to swing a maul points or compress it a draw, but possess a knowledge of general conditions that would allow stations to handle a vast undertaking. The foreman of a gang of construction on the other hand, would be obliged to know in detail all the facts concerning the construction, to be a competent manager should be able to do whatever is required of his subordinates. In these super-rare cases where a manager has knowledge of both general and special, the two round each other, making both better.

The opportunities that exist in the field of management are perhaps only outranked by another. Marketing a product - the ability to sell - the controls, sometimes a higher price in the world of business management skills. But both the control of management or sales skills - the same way yields direct salary or more indirect returns through increased trade and profits - as much money to be in business.

Financing a business proposal

Money is the lifeblood of any business. An undersupply means under-development of the business; diluted below a certain point, it means death. Whatever the business, the first major factor to be reckoned with is funding the proposal, has or can get the money to race?

Most businesses are under-funded - not because they do not pay or because they afford a safe investment - but because the owner does not have the time and sometimes does not have the ability to finance its proposal.

There was never a time when financial support was secured as easily as now. There has never been such a large amount of money available for legitimate financial purposes, as there is at present. The best way to do it? is the question that every man in the business world is wondering.

There are four ways - each with their different advantages - to get money to finance a business. Each will be taken in order.

The Cash Basis Plan. The first method of financing a business proposal is simplicity itself. And 'to fund it on a box with its own funds or funds in your trust permanently. The percentage of business people who can do this is very small, perhaps less than one tenth of one percent. But it is a method that many people have tried at least once in their business dispute. Many men are looking for today, just to adopt other methods later.

When a man starts in business with the intention to fund itself or one of two conditions exists. It has both sufficient funds to cover all risks or did not. This is clear. The businessman with sufficient funds, you are financing has its problems, as well as the man who is "wild-cutting." Admittedly, these problems are not staggering, but they are to be considered....