bumdel
Moderator
As an individual or businessman, one should always have it at the back of his mind that life is all about flows and ebbs. If a man or business makes money or profit respectively, there is flow but when a man or business loses money or makes loss respectively, there is ebb. These are things to do immediately when there is loss money or profit:
1. Take stock of what you have left
The first thing to do at a period when one suffers a heavy loss of money or investment is to collate the money or assets that he has left and stop thinking about what he has lost. After taking stock of what is left, plan towards multiplying it via investment.
2. Downsize
By downsizing, I mean cutting expenses. In the case of an individual, expenses on non-income yielding assets like family cars, phone recharges and so on must be trimmed down while in the case of an entrepreneur, the number of official cars must be reduced via selling, the number of workforce must be reduced. This is a way of minimizing cost till one gets back on track.
3. Organize a fund raising
In case you are left with nothing, you must not be shy to reveal your financial problems to your friends, family members, church members and other organizations you belong to. You need to present your predicament to them and solicit for their financial assistance. This will go a long way in helping you find your feet financially as an individual or businessman.
4. Incur good debt
When in financial crisis, you need to get good debt. Example of good debt is taking a loan facility to run your failed business and the business brings in more money than what you are paying back as loan. To get a good debt, you need to compare the interest rate among banks and take a loan from the bank that offers the least rate.
5. Declare bankruptcy
If you or your business have a running loan during the time of your financial loss, immediate declaration of bankruptcy is a way to get you out of this mess as it offers a way to wipe out most of your loan outstanding thereby availing you an opportunity of starting again You need to consult an attorney who specializes in bankruptcy declaration to guide you through the process.
6. Seek financial advice
One of the important things to do as soon as one loses money or investment is to consult Financial Advisors for advice. Financial Advisors are financial doctors and financial psychologists that will calm your nerves with good professional advice on how to adjust and start again after you have suffered a heavy financial loss.
Image source: Flicr Images
Last edited by a moderator: