It follows that a bond has a first call upon the property rights of the corporation; that it represents something tangible; that it pays a definite amount of interest, and that it may be reduced at its full value at a certain time."
It is important to consider, though, that happiness in one's work means far more than the accumulation of a fortune in discomfort, and one way to assure your happiness is to ensure your business remains in good standing; having made your credit and business reputable and firm, you must keep them such by an adherence to the same means which brought you there.
If you can avoid it, do not loan your name to every needy friend that comes along. Your neighbors will question your good judgment every time you have to meet a note which you were coaxed into endorsing, and you would have saved yourself a great deal of trouble by loaning the money to them outright.
In addition, you should not deceive yourself into believing that you are making money when, as a matter of fact, you may be losing it instead. For example, if you buy an article for two dollars and sell it for two and a half, you may say to yourself, "I've made fifty cents, so I'm earning a profit. However, before crediting your business with that fifty cents, you should have considered these points: 1) The loss of interest you would have made on that two dollars if you had not bought the article in the first place; 2) your own time or other time paid for; 3) the capital you invested in items not sold; 4) the rent; and 5) additional overhead, such as transportation, insurance, heat, light, bad accounts, unsalable goods, taxes, public donations, and the purchase of additional items necessary to the proper functioning of your business.
Some additional points to consider are that you should make an inventory of your stock at least
once a year. Then, having done this, you should give your stock a fresh appearance, whether new goods be added or not, to indicate the quality of your items to the discerning consumer. Get rid of all the dingy, dirty, disreputable stuff that you either could not sell or give away, and which has clearly not enticed your customers.
Quite as important as keeping the stock in order is keeping the books in good shape, and you should make sure to keep an accurate account of your business. Weed out, at least once a year and preferably sooner, any outstanding items you are carrying; after all, why should carry as collectable those accounts which you have been assured, for years, would be paid and have not? The best thing to do is, if truly uncollectible, to wipe them out and charge them to profit and loss. It is only by annual house and account clearings that you can tell about how you stand.
