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My Life and Work

Chapter 2 WHAT I LEARNED ABOUT BUSINESS

Word Count: 4833    |    Released on: 06/12/2017

ses. Also it blocked traffic. For if I stopped my machine anywhere in town a crowd was around it before I could start up again. If I left it alone even for a minute some inq

being the only licensed chauffeur in America. I ran that machine about one thousand miles through 1895 and 1896 and then sold it to Charles Ainsley of Detroit for two hundred dollars. That was my

t excepting in hot weather. That is why I later adopted gears. I learned a great deal from that car. Others in this country and abroad were building cars by that time, and in 1895 I heard that a Benz car from Germany was on exhibition in Macy's store in New York. I traveled down to look at it but it had no features that seemed worth while. It also had the belt drive

month. But my gas-engine experiments were no more popular with the president of the company than my first mechanical leanings were with my father. It was not th

ave any indication that it can do. I did not see the use of experimenting with electricity for my purposes. A road car could not run on a trolley even if trolley wires had been less expensive; no storage battery was in sight of a weight that was practical. An electrical car had of necessity to be limited in radius and to

been sold by the electric company, had it revamped a little, and for several years it gave excellent service in the Canadian plant. When we had to build a new pow

omething really useful. I had to choose between my job and my automobile. I chose the automobile, or rather I gave up the job-there was really nothing i

n a toy. No man of money even thought of it as a commercial possibility. I cannot imagine why each new means of transportation meets with such opposition. There are even those to-day who shake their heads and talk about the luxury of the automobile and only grudgingly admit that perhaps the motor truck is of some use. But in the beginning there was hardly any one who sensed that the automobile could be a large factor in industry. The most optimistic hoped only for a development akin to that of the bicycle. When it was fo

could get no support at all toward making better cars to be sold to the public at large. The whole thought was to make to order and to get the largest price possible for each car. The main idea seemed to be to get the money. And being without authority other than my engineering position gave me, I found that the new

eriments and to find out what business really was. I thought that it must

y I built in all about twenty-five cars, of which nineteen or twenty were built with the Detroit Automobile Company. The automobile had passed from the initial stage where the fact that it could run at all was enough, to the stage where it had to show speed. Alexander Winton of Cleveland, the founder of the Winton car, was then the track champion of the country and willing to meet all comers. I designed a two-cylinder enclosed engine of a more compact type than I

ce to how greatly it could serve the public but with reference solely to how much money could be had for it-and that without any particular care whether the customer was satisfied. To sell him was enough. A dissatisfied customer was regarded not as a man whose trust had been violated, but either as a nuisance or as a possible source of more money in fixing up the work which ought to have been done correctly in the first place. For instance, in automobiles there was not m

art small and build itself up and out of its earnings. If there are no earnings then that is a signal to the owner that he is wasting his time and does not belong in that business. I have never found it necessary to change those ideas, but I discovered that this simple formula of doing good work and getting paid for it was supposed to be slow for modern business. The plan at that time most in favor was to start off with the largest possible capitalization and then sell all the stock and all the bonds that could be sold. Whatever money happened to be left over after all the stock a

rtain securities, he could have a certain fixed return. Therefore they say that a proper charge against the operating expenses of a business is the interest on this money. This idea is at the root of many business failures and most service failures. Money is not worth a particular amount. As money it is not worth anything, for it will do nothing of itself. The only use of money is to buy tools to work with or the product of tools. Therefore money is worth what it will help you to produce or buy and no more. I

from bad management, and the effect of refinancing is simply to pay the poor managers to keep up their bad management a little longer. It is merely a postponement of the day of judgment. This makeshift of refinancing is a device of speculative financiers. Their money is no good to them u

naged in the interest of the public, then I simply would not get started at all. For my own short experience, together with what I saw going on around me, was quite enough proof that business as a mere money-making game was not worth giving much

more commission is to be made. And it is right on this point that we later made the largest selling argument for the Ford. The price and the quality of the car would undoubtedly have made a market, and a large market. We went beyond that. A man who bought one of our cars was in my opinion entitled to continuous use of that car, and therefore if he had a breakdown of any kind it was our duty to see that his machine was put into shape again at the earliest possible moment. In the success of the Ford car the early provision of service was an outstanding element. Most of the expensive cars of that period were ill provided with service stations. If your car broke down you had to depend on the local repair man-when you were entitled to depend upon the manufacturer. If the local repair man were a forehanded so

If the first consideration is to earn a certain amount of money, then, unless by some stroke of luck matters are going especially well and th

ting settled." If to petrify is success all one has to do is to humour the lazy side of the mind but if to grow is success, then one must wake up anew every morning and keep awake all day. I saw great businesses become but the ghost of a name because someone thought they could be managed just as they were always managed, and though the management may have been most excellent in its day,

that the workmen might be taught to produce with less useless motion and fatigue, it was most opposed by the workmen themselves. Though they suspected that it was simply a game to get more out of them, what most irked them was that it interfered with the well-worn grooves in which they had become accustomed to move. Business men go down with their businesses because they like the old way so well they cannot bring themselves to change. One sees them all about-men who do not

ority of men need the restraint of public opinion. Public opinion may keep a man better than he would otherwise be-if not better morally, at least better as far as his social desirability is concerned. But it is not a

given to the work it cannot be well directed. Most men want to be free to work; under the system in use they could not be free to work. During my first experience I was not free-I could not give full play to my ideas. Everything had to be planned to make money; the last consideration was the work. And the most curious part of it all was the i

omobile manufacturers entered into an association under the Selden Patent just so that it might be legally possible to control the price and the output of automobiles. They had the same idea that so many trades unions have-the ridiculous notion that more profit can be had doing less work than more. The plan, I believe, is a very antiquated one. I could not s

fice hours, to take up the work in the morning, to drop it in the evening-and not have a care until the next morning. It is perfectly possible to do that if one is so constituted as to be willing through all of his life to accept direction, to be an employee, possibly a responsible employee, but not a director or manager of anything. A manual lab

han the man who keeps office hours, both for his brain and his hands. It is not necessary for any one to decide the question. A ten-horsepower engine will not pull as much as a twenty. The man who keeps brain office hours limits his horsepower. If he is satisfied to pull only the load that he has

year-and I have been learning more each year without fin

f work and therefore tends to kill the wo

this fear blocks every avenue of business-it makes a man afraid of competition,

e who thinks first of service-of doi

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