Category: Blog

3 Ways To Save Your Business From Going Bankrupt

Businesses don’t always see light at the end of the tunnel. There can be downfalls. This can be due to poor management, incompetent workers, bad decisions, and other factors. When you find out that your company might go bankrupt, you should take certain steps to save it from sinking.

  1. Find out how much money you must pay to the creditors if you want to stop your company from going bankrupt. Then calculate how much you need monthly to survive. Try to think of ways to pay the creditors and run your family. It can be by selling your fixed asset like holiday home or through some passive income.
  2. Try to reduce the cost of business. You should consider the cost of labor, income tax, office rent, utilities, interest expense, etc. If necessary, you can layoff a number of employees who are taking high salaries, provided that they are not vital to your company. You can shift to a smaller office and reduce office hours to save utility bills, as long as it doesn’t affect the operation of the business too much.
  3. Re-negotiate contracts with people involved in the business like your suppliers, banks, and other parties. For example, you can request your bank to lower the interest rate for your credit or you can ask the leasing company to extend your leasing period.

You have to go through a very hard time to pull your company from this dreadful situation. But you should stay calm and do what is necessary to save your company from going bankrupt.…

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4 Things You Should Know As A First-time Stock Investor

Investing in stocks is a good idea if you want to grow your funds steadily. But it is very important that you learn about the market well and not rely entirely on someone else’s decision on whether to buy or sell a stock. As a first-time stock investor, here are some of the things you should know.

Number of stocks to buy

It is better to buy about 15 stocks across various industries to diversify your portfolio. An alternative can be to invest a large amount of money in index funds. You should try to eliminate guesswork as much as possible when you are investing in stocks.

Decision about dividends

Some stocks provide dividends to the shareholders, while others use it for reinvestment towards the growth of the company. Dividend stocks are safe. But reinvestment can get you more money in the long run.

Know the business

It is important to know the business in which you are investing. You shouldn’t invest in something you don’t understand. For example, if you have a background in finance then you are very less likely to understand how a biotech company works.

Know the red flags

You should always be alert to companies that don’t earn a profit or whose share prices decrease all the time. If a company is under lots of debt then also you should avoid investing in that company.

You should always look at the historical pattern of the companies you are thinking of investing in. The history can repeat, so there are lots of things to learn from it. You must remember that learning should be a major part of your journey with the stock market. The more you learn about the market, the better will be your investments. You must invest carefully so that you can be a gainer in the long run.

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