A lot of companies, even successful ones, experience getting bankrupt. In our country, it seemed like a trend especially in the educational plan business that these companies would close and could no longer provide educational assistance to their plan holders. What is the best way to avoid getting bankrupt?

Thats a really hard question to answer. My suggestion would be to do your homework before you start a business. It can be hard to determine if you are going to have a successful business. Look into the trends of other business in your area. If many of them are going bankrupt or shutting down then I would take this into consideration. It also really depends on what type of business you are starting also.

Thank you for that insight. It is really hard to start a new business these days especially if there are a lot of competitions. It takes a lot of time to do research and come up with a good plan.

In the case of those educaitonalor insurance copmanies, the money they got from their customers were not invested wisely. So one lesson probably is bet your money only in a sure thing. Do your research and planning well. Sure, we do need to take risks but they should be calculated.

It seems that this is what happened to a big educational plan company. The company should have allotted their money to a business that would really work well, because the people who would be generally affected would be the plan holders.