San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-03-10
ROUGH SPOTS IN BUSINESS

GHSOul dSCllSHl 10 lHOSC WHO are dl-
ready established in business on 4 rea-
sonably sound basis, and good advise
to those who are contemplating husi-
ness careers, are offered in a pamphlet
published by the Bradsrect Company,
entitled Failure Statistics-Their Mean
ing and Utility" In fact, record such
as this pamphlet presents and analy2es
should be studied carefully even by the
most successful, as it might help them
to be more successful, and unless those
who have failed learn wherein they
made mistakes, or why they failed, their
re-entrance into the business field is
in itself an indication of their lack of
fitness.
The report covers the three-year post
war period which began on January !,
1920. That date was also the beginning
OF a period marked by two outstanding
business factors-liquidation and repair.
At the close of 1922, 3radstreets says,
indications were that the process of
liquidation was almost complete. Even
more pronounced, this analyst Of bust
ness conditions states, were the signs
OF repair.
This is said" the report goes on,
with full appreciation of the fact that
the business world paid heavy. in fact
record, toll of failures in 1922" and
that liabilities in that year were, next
to those in 1921, the largest ever re-
corded
In less technical terms, the country
in general has adjusted itself to new
conditions strange factors arc no longer
to be contended with; the chances of
failure have almost reached normal
again. Of course the best test in any
business is actual experience. A level
headed merchanS in a given line should
be the best judge Of the conditions with
which he has to cope. But it cannot but
encourage merchants in general for fl
nancial experts to tell them, after max
ing comprehensive survey of. the en-
tire country, that the rough roads arc
back OF them. If merchant knows that
others in his line are prospecting he will
realize, if he is intelligent, that the
chances for his own success in the f,i-
ture are better than they would be ii
the others were not doing so well-pro-
vided, of course, that there is no great
disparity between his native ability and
theirs.
There is one factor that beginners
particularly should study from every
side. THE LIGHT invited attention to il
nearly two years ago, in the early Stages
of the liquidation process, with the OBJ
servation that in the great majority o.
cases the bankrupts had been trying
to operate on insufficient capital. Dur
ing the years of high prices and almos
unlimited demand, many people started
out in business on a "shoe-string" basis
As long as prices and demand held up
the "shoe-stringers" did we'll; DOUBTLESS
some Of them, by reason of having com
paratively small expenses, realized
higher rate of profit than did those witt
heavy overhead"
But when the deflation process set in
and consumers went on "strikc." bust
ness men with small capital were unde
great disadvantage. Just how i'm
portant it is to have sufficient capita
to withstand unfavorable business condi
tons is indicated by a paragraph il
Bradstreet's report which makes com
parative analysis OF failures and. credi
ratings.
''Of the 25,e6a concerns failing in tn
United States and Canada i'll 1922" say