Going Bankrupt in Australia tends to stay hidden in the shadows of both the commercial world and our personal lives. It’s the utmost taboo subject. The issue is perception– because in reality bankruptcy is basically a tool that we can use to protect ourselves, and rich people know this. Rich people have discovered that insolvency is an essential part of being in business, in certain cases things don’t work out like you had intended, that the market has changed and the numbers simply don’t work anymore. If you are running a small business in Perth, then pay attention, because (and not to sound too dramatic) being familiar with this may help you to save your business, car, house and family.
With the recent closure and liquidation of Clive Palmer’s nickel mine there has been a community backfire, workers have lost their jobs and an entire town will be affected by the sudden shut down of the mine. Likewise we have also seen the fall of the Dick Smith’s chain of consumer electrics, as you have possibly noticed around Perth– nevertheless this has been met with far less resentment in the community.
Regardless, both have shut down and yet both high profile owners are nevertheless rich and worth millions of dollars. So how does that work? How can these individuals have essentially had a huge business failure, and yet had this barely affect their personal wealth? It is because they understand the nuances of Going Bankrupt.
When it comes to businesses, there is often a risk that you are going to fail, and this is no different when compared to a small business in Perth than it is to looking at a large corporation– there is always risk, and there is always a way to soften the risk.
First off, there are clear ways to protect assets in your business projects, ways to separate your assets and essentially place a wall in between a business, and your home and car. Often this has the form of a legal trust, if you wish to learn more about this then talk with a professional when creating your Perth business. However this really will need to be done long before you start having issues.
The second thing that you should learn more about Going Bankrupt from this is that often there will be an occasion when you will want to step back from this business that is failing and know when to call an end to it. That is what has occurred with Clive Palmer and Dick Smith– both have been managing businesses long enough to know when it is not going to succeed any longer and so they pull the plug instead of going down with the ship.
Ultimately, Going Bankrupt is viewed as a horribly challenging decision filled with stigma, and we should remove this, because some of the most successful and rich people on the planet have declared bankruptcy several times.
Some of the biggest concerns that many people have in Perth is that business owners are not ready to just stand back from the situation and think critically. Because often there is not going to be a time when you can safely just ‘call it quits’, but you need to realise when fighting on is just going to do more harm than good – because you don’t need to fight to the bitter end.
If you have ever lived in a Bushfire sensitive area you would know that you have 2 options: fight or retreat – and the same can be said of business. If you fight with a struggling business in certain cases you can save it, but usually you will be engulfed by the flames. But if you are smart you will retreat, let the institution of Bankruptcy help douse the flames and save your home. As with any part of life, this is a hard decision, and this is one that you should rarely make without specialist advice, but don’t be afraid to turn to Going Bankrupt when you need to.
If you really want to find out more about some of your options when it comes to Going Bankrupt – such as what to do, where to turn and what questions to ask about Going Bankrupt, then feel free to talk to Bankruptcy Experts Perth on 1300 795 575, or visit our website: Bankruptcy Perth