First of all, it is necessary that sufficient capital should be raised or authorized; yet, on the other hand, it is desirable, if the period of construction and development is to be lengthy, that the sale of securities should be postponed until • the corporation is actually on its feet. There may seem to be at first glance no possibility of reconciling these two conflicting requirements. The solution to this problem is to be found in making such connections with banking houses that they will be willing to carry through the preliminary financing and underwrite the sale of the securities of the completed proposition. This is one of the devices universally used in large enterprises, but seldom in small ones. There is no reason, however, why it should not be almost equally well adapted to the small concern which through the local bankers may secure accommodation on the strength of its own securities as collateral and may later sell those securities and repay the bank loan.

A second point to notice is that the promoter should protect his own interests, for he may be sure that no one else will do this for him. The proper method of taking care of himself is to raise all the capital that is needed, on as good terms as possible, by the sale of bonds, preferred shares, and common shares, retaining for himself the remaining equity in the business. This is the place where many business executives, as promoters, fail to realize the full returns to which they are entitled. They are likely to put in their own money under precisely the same conditions as the money of other people, without reserving for themselves the equitable interest which belongs to the promoter of the enterprise and which any other promoter would easily obtain.