This section is from the book "Business Finance", by William Henry Lough. Also available from Amazon: Business Finance, A Practical Study of Financial Management in Private Business Concerns.
The following elementary rules of business finance apply alike to individuals and to the largest enterprises; the remainder of this work consists practically of the application of these general rules to various business problems.
2. Do not be afraid to borrow for legitimate business development when you can earn profits and repay the loan when due.
3. Do not dissipate capital on side lines and outside investments.
4. Systematically accumulate assets, both tangible and intangible.
6. Use income sparingly for living expenses and pleasure, but freely for business maintenance and development.
7. Use foresight - which is the cardinal virtue in all financial operations; make budgets to govern all expenditures.
These are the prudent, indisputable rules for sensible financing. They have been preached and proven over and over again for many centuries past. The wisdom which these homely rules embody applies just as truly to the business of the Standard Oil Company and the United States Steel Corporation as to the affairs of John Smith. A man who can grasp these principles, hold them continually before his eyes, and apply them intelligently, is bound to handle his finances wisely both in his business and in his private life.
However, simple as they are, to apply these fundamental principles to all the complex situations which arise in modern business is no easy task. Sound financing calls for clear thinking and a wide range of knowledge.