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Business: Undercapitalization and Bankruptcy

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Business: Undercapitalization and Bankruptcy
Robert Solomon
AIU Online
Business: Undercapitalization and Bankruptcy
There exists many ways to succeed and the world of business is certainly one of them but any time one opens oneself up to risk, the possibility of failure rears its ugly head. Genius it is argued though is when preparation meets opportunity. The first thing to do before setting out on the uncharted seas of financial security is to make sure you are aware of the dangers and pitfalls. The road is rough and has laid waist to many who have tried before you so be sure that you have what it takes, financially and intellectually. Fortunately there are solutions to this problem, albeit the people you will need to talk too are few and far between, it is good advice before you start that will give you that edge when the going gets rough and the pizazz to ride the crest of the wave when things go well.

Business: Undercapitalization and Bankruptcy
While there are many reasons to cling to the security of the hourly wage paycheck, the hopes and dreams of personal freedom is something that we, as humans, still crave. In this particular case, that freedom leads to the status of the self-employed businessperson. The problem is that just wanting success is never enough to accomplish it. Although freedom leads to self-sufficiency in an ever-changing, increasingly global market, the mere desire for success is a delusion in terms of real-world achievement. So the real question becomes, how can a small startup business avoid bankruptcy?
The Golden Idle
To begin with, the age-old cliché is true: “It takes money to make money.” This is fully understood by the business gurus of the modern world as under capitalization. It would seem so simple for a person with good intentions and a great product to just go down to their local bank and ask for a business loan.

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