Every successful or failed business is because of many reasons.

When one expand business, expenses DEFINITELY will tag along. A simple analogy of increasing production and employing another staff ...salary have to be paid !

I am not sure how one can expand business without cost / expenses.

This post has been edited by mini orchard: Jan 17 2022, 12:05 PM

Go back to the fundamentals.

Why you are expanding?

If expansion is not followed by increase in profit, you are not really expanding but just adding operations cost.

Let say you employ 10 more employee with salary of RM3k each. You only do this if you can profit more than what you are paying for this team.

Hence by calculation, if you are getting more than what u spend, your business is earning and on the path of successful.

If you employ 10 more people and not gaining any return, then your business model is wrong. Even if you inject a million, nothing good will come out of it.

This here is a good example of why accountants do not make good businessman

Could you elaborate more on your remark sir?

while waiting for his reply,
i think maybe he is refering to
if based on accountant POV,...everything must be justify for its ROI (as mentioned in your earlier post)

if based on business man,....it could be something not foresee able now after investing the sump of money,...
like products promotions, entertainment of clients, marketing analysis & surveys, products research & redevelopment, actions items after the study & research of the SWOT analysis, etc etc....
which may NOT have tangible results or may not even get returns on the sum invested....

Businessman can seldom be accountant and vice versa. Difficult to find a person in between.

One is a risk taker, the other cautious based on theory.

Just to be clear, risk taking do mean you analyze the risk you are taking.

I have gone through the route of borrowing money just to pay for opex. It was not worth the effort.

If you want to borrow money for business, use it for marketing or increasing the productivity. Marketing also need to focus on effective reach, not just general and broad goal.

If you need to burn money, burn money you afford to lose.

some times,...a business have to borrow to expand,....
if after the SWOT analysis,....you had determined that your company "weakness" is not be able to produce fast enough than most competitors.....
do you want to borrow to buy a newer or latest machines so as to beable to produce faster and stay in business?
if you don't,...then there is a very likely hood that your business will become stagnant and your current markets maybe capture or taken over by your competitors....

if you borrow now,....you will not know for sure, if there any new technology or innovation that are coming that would make your newly purchased machinery obsolete....

just like buying a new property,...you will not sure if there is a coming highway just next of it or an approved chicken farm just 1km away or if it will be turned into a foreigners hub 5 yrs later, etc etc.

on this, .....If you need to burn money, burn money you afford to lose.....business is an investment and thus have risks......that is why they go for SDN BHD.....better than sole proprietorship.

This post has been edited by yklooi: Jan 17 2022, 03:21 PM

If the co dont borrower, chances of it going bust is also there.... just like the current covid situation.

I believed no company likes to borrow if given a choice. Why issue new shares if the present shareholders can keep future profits

Anyway, my apology to ts for derailing this topic.

I will rest my comment other than ptptn.

This post has been edited by mini orchard: Jan 17 2022, 03:44 PM

Paying 50% to get 12% worth it?

Hi guys, my ptptn loan debt is RM7k. Usually I pay with direct debit every month. Question: should I pay lump sum with 15% discount, or rather invest the money on ETF (target S&P 500) and continue pay ptptn every month? Thanks in advance

Did anybody received their direct debit transaction for March?

Direct debit discount ends in 30 apr

tq sir for the reminder.

Your not exactly losing 37k. U havent factored in 5.8k u can invest and 6.3k is not the value at a single point of time.

Is paying 50% with 12% discount worth it? That's some extra money I'm having right now, as the investing markets are not looking too good right now

I can only advise this ...

If you are not a savvy investors, is better to enjoy the 12% discount.

with more banks particular PBB removing credit card cash back from reloading e wallet, what will be the next best way to pay PTPTN while earning some points or cash back along the way?

Previously some mention..
Cc to debit card. Get points then debit card to ptptn

do you remember which debit card?