Going Bankrupt in Australia seems to sneak in the shadows of both the business world and our personal lives. It’s the utmost taboo subject. The problem is perception– because in truth bankruptcy is basically a tool that we can use to protect ourselves, and rich people know this. Rich people have worked out that insolvency is an essential part of staying in business, in certain cases things don’t work out like you had intended, that the market has evolved and the numbers simply don’t work anymore. If you are managing a small business in Maitland, then listen, because (and not to sound too dramatic) understanding 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 reaction, workers have lost their jobs and an entire community will be affected by the sudden shut down of the mine. Likewise we have also witnessed the downslide of the Dick Smith’s chain of consumer electrics, as you have probably noticed around Maitland– however this has been met with far less outrage in the community.
Regardless, both have shut down and yet both high profile owners are still rich and worth millions of dollars. So how does that work? How can these people have effectively had a huge business failure, and yet had this barely affect their personal wealth? It is due to the fact that they know the nuances of Going Bankrupt.
When it comes to businesses, there is constantly a risk that you will fail, and this is no different when compared to a small business in Maitland than it is to considering a large corporation– there is always risk, and there is always a way to minimize the risk.
First of all, there are certain ways to protect assets in your business projects, ways to unlink your assets and virtually place a wall between a business, and your home and car. Often this has the shape of a legal trust, if you wish to find out more about this then talk to a professional when starting your Maitland business. However this really needs to be done before you start having issues.
The next thing that you have to discover Going Bankrupt from this is that often there will be an occasion when you will have to step back from this business that is falling short 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 recognize when it is not going to succeed any longer so they pull the plug rather than going down with the ship.
Ultimately, Going Bankrupt is seen as a horribly tough decision packed with stigma, and we need to remove this, because some of the most successful and rich people around the world have declared bankruptcy several times.
One of the biggest complications that lots of people have in Maitland is that business owners are not ready to just stand back from the situation and think critically. Because frequently there is not going to be a moment when you can carefully 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 have to fight to the bitter end.
If you have ever lived in a Bushfire sensitive area you would recognize that you have 2 options: fight or retreat – and the same can be said of business. If you fight with a failing business in some cases you can save it, but generally you will be swallowed up 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 dread to turn to Going Bankrupt when you need to.
If you really would like to find out more about some of your options when it concerns Going Bankrupt – such as what to do, where to turn and what questions to ask about Going Bankrupt, then feel free to speak with Bankruptcy Experts Maitland on 1300 795 575, or visit our website: www.bankruptcyexpertsMaitland.com.au.