November 23, 2012

The Origin of "Black Friday"

Kevin Drum, writing for Mother Jones, pens a piece on the origins of the term "black Friday:"

“According to the retail industry, ‘Black Friday’ is the day when retail profits for the year go from red to black. Are you skeptical that this is really the origin of the term? You should be. “

I didn't have reason to question the common explanation until Kelly and I got into a business of our own. Suffice to say that if it took until late November to turn an annual profit, running a business would hardly be worth the struggle.

In fact, most businesses are in the black most quarters. What matters to a business's health is less bottom-line profit, which is fairly easy to attain, and more positive cash flow, which is more difficult after re-stocking, credits and owner's draws are factored in.

Worth a read.

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