The stock, or securities, as it is called, of a company can be sold in a number of ways but the usual method is to sell it (a) by personal solicitation, (b) through stock-salesmen, (c) have a broker take the whole stock issue, and (d) by advertising. If your invention is what it seems to be, your patent as good as the average patent, your company capitalized for a moderate amount and the product looks good for making quick sales and large profits you won’t find any trouble in placing the stock with the moneyed people of your community.
Besides receiving 55 per cent. of the stock for your invention and patent you should as the inventor and practical man be voted a salary of $25, $50 or $100 per week to superintend the manufacturing end of the business. Have a salary contract drawn up with the company in which the amount you are to receive weekly and the length of time you are to receive it is stated, and have it signed by the president and secretary for the company.
About Retaining a Lawyer.—In all of your business dealings with other people from the very beginning the safest way is to have the advice and help of a corporation lawyer and while he is keeping you safe, whole and harmless from all damage be sure he doesn’t mulct you while he is doing it.
A good way is to pay him a flat-rate for whatever advice he gives you and the contracts he draws up for you. But if you can’t do this then give him a 1 per cent interest in the net amount which you may receive from your invention.
When you and your associates have decided on organizing a company the usual and proper way is to retain a lawyer and have him take care of the incorporation certificate, conduct the first meeting and open the books, to the end that it may all be done right and in good legal form.
CHAPTER VIII
SOME HINTS ON MANUFACTURING
After you have formed a partnership or a company and have the coveted capital to go ahead with the business, you and your associates must consider two problems and the way you work them out will decide whether your venture will lose money or declare dividends.
The Problem of Manufacture.—These two problems are the manufacturing and the marketing of your product and in this chapter we will talk about manufacturing it first and then take up the marketing end of it in the next chapter, for while they are closely allied in a common cause they have to be treated as entirely separate things.