In general it may be stated that a new organization must start with a superior article to manufacture and the elements of a superior organization.  Sometimes it is possible by invention alone to win without the aid of the modern plan of specialized organization.  On the other hand, the success may be attained by superior organization without a superior article to manufacture, but in general it is better to combine all of the possible beneficial factors in a new organization.

Organizers should know the market possibilities.  If possible, the product should be sold directly to the user.  The contact with the ultimate user is of supreme importance in the development of the invention and the organization.  In dealing through a selling agency the manufacturer is not in control of the whole business.  The selling agent dictates the policy of the whole business.  He dictates the policy of the manufacturing plant from the selling agent’s needs and that seldom fits the manufacturing conditions.  The selling department generally demands many changes in product and wide range of articles of manufacture, while the manufacturing conditions require that special skill and ability that can only be developed by continuity of action of a given kind, and this restricts the range of produce.

If the head or one of the heads of a proposed organization knows the market condition and knows what can be done in the sale of a new article, then the question of invention and manufacture can be safely left to those who have been well grounded in such principles.  That leaves only the question of the financial arrangements.

The method of forming a stock company under the laws of Vermont is very simple and people are generally well disposed to invest in the stock of the new company providing the men at the head are known to be competent—­the inventor as an inventor, the business man as a business man and so on all the way through.  The standards of measure of each one of the men and the standards of measure of conducting the business are set forth in other chapters.  At this time it is sufficient to say that getting the capital is the easiest part of the job.  The real work is the preliminary work of acquiring experience and devising plans.

A plan to create a new industry does not call for disloyalty to the employer, for as a rule it is very foolish to attempt to compete with an established organization excepting on some business that gives the new organization an advantage by one or more of the following points:  invention, simpler product, simpler methods, a higher degree of specialization, a more effective and direct scheme of sales or a better spirit of personnel.

One of the essential things for the business man—­if the business man is not the inventor—­is to grasp the fact that his success is tied up to the inventor.  The inventor is needed in the development all the way through, not only in guiding the form of the manufactured article, but in a large degree by dictating the process by which the article is to be manufactured.  The inventor usually needs curbing to keep him from disturbing his own market by the creation of newer forms, but these matters are treated under the chapter of invention.