Radio Broadcast (May 1929-Apr 1930)

a business profit one of the most important things for a beginner in retailing to look out for — and surely the experienced dealer should know all about it. If I could pay myself a salary as manager of a ousiness and make a profit as owner, then my business would be a success and I would only have to hold my extravagant tastes down till the business had grown to such a point that I could afford to gratify some of them. Another thing I should do is to begin to write off the value of all my equipment, store furniture, and fixings — tools and all. If that equipment cost $5000, I should figure on paying myself for it in five or ten years out of profits. So in my surplus I figure myself as setting aside $1000 cash, or less, for this purpose. Suppose I make it $1000. Then in five years I have made my equipment earn the money to pay for itself. I can add to it or junk it for what it will bring and have the cash to buy more up-to-date fittings. To get in the position where you are five years ahead of your business furnishings in money instead of five years behind them is to be on the road to worth-while success. Another thing I'd do with a part of my surplus would be to keep my insurance up to the minute. The Bankers Advice I spoke about using a bank for my own profit and advantage. I'll tell a simple little true story about that. A grocer in Cambridge, Mass., went to his banker to make a loan. He was a bit crowded on some over-due debts to jobbers. The banker was a good friend of his and a customer of his store. The grocer wanted a $5000 loan. It was refused. Jones, the grocer, said, " Do you know that this refusal of yours may wreck me? " The banker replied, " Sure I do, that's why I must refuse you. I can't see where we'd get our money back. However, Jones, let me ask you some questions. How much do you take out of your till for your own personal use?" "Oh I guess about $4000 a year, I don't keep track of it." "Second question, how much do you take home from your grocery stock for your family use?" "Oh, I don't know, not much. I don't keep track of it." "Jones," said the banker, "if you will do what I tell you to, I'll lend you $10,000 instead of $5000. Here's what I mean. I want your solemn promise to give yourself a salary of $4000 a year, not a cent more. You can pay yourself by the week or by the month as you choose, but never a cent over your salary. Second, you must promise to charge against profits every thing you take home, and keep an exact account of it. At the end of the year you can figure out what profits you have left and they will be yours, but even then you should leave a part of them for extra capital." Jones agreed. He had to. At the end of a year he had a profit of a little over $5000. He had taken out his salary of $4000 and nothing else, except his own groceries which he charged to himself. He was surprised to see what his own groceries had amounted to, even at wholesale prices. He found that while spending only $4000, his salary, he had to economize and move carefully to get by, but he did it. Jones admitted to his banker that previously he had probably been spending about three times as much. "There you are," said the banker. "Your business makes a (Continued on page 229) /Cau^deAfr 4°o.o0 500.00 sT) 700 00 (Jdugds ^>ui.<^ 1600-°o W ^TTdDEE /9Z5 /9Z5..._ foo. 1926.... " 50 0. " 50 0. 1926 1927..... 1927... 50 0. 1928 1928... 1929... /929.. > "' Joo .... &z — Mr. Dickinson says, "To get in the position where you are five years ahead of your business furnishings in money instead of five years behind them is to be on the road to worth-while success." • AUGUST 1 929 • • 199