Going Bankrupt in Australia appears to stay hidden in the shadows of both the commercial world and our personal lives. It’s the utmost taboo subject. The problem is perception– because in reality bankruptcy is simply a tool that we can use to protect ourselves, and rich people know this. Rich people have figured out that insolvency is a vital part of staying in business, occasionally 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 operating a small business in Mackay, then pay attention, because (and not to sound too dramatic) learning more about this may help you to save your business, car, house and family.
With the recent termination and liquidation of Clive Palmer’s nickel mine there has been a community backlash, employees have lost their jobs and an entire community will be impacted by the sudden shut down of the mine. In a similar way we have also seen the fall of the Dick Smith’s chain of customer electrics, as you have probably noticed around Mackay– having said that this has been met with far less outrage in the community.
Regardless, both have closed down and yet both high profile owners are nonetheless rich and worth millions of dollars. So how does that work? How can these individuals have basically had a huge business failure, and yet had this barely affect their personal wealth? It is because they know the nuances of Going Bankrupt.
When it comes to businesses, there is constantly a risk that you may fail, and this is no different when compared to a small business in Mackay than it is to taking a look 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 off your assets and basically place a wall in between a business, and your home and car. Often this has the shape of a legal trust, if you would like to find out more about this then talk to a professional when putting together your Mackay business. However this really should be done well before you start having problems.
The second thing that you ought to learn about Going Bankrupt from this is that often there will be a period of time when you will need to step back from this business that is failing and know when to call an end to it. That is what has happened with Clive Palmer and Dick Smith– both have been managing businesses long enough to know when it is not going to prosper any longer so they pull the plug instead of going down with the ship.
Ultimately, Going Bankrupt is seen as a horribly demanding decision packed with stigma, and we need to remove this, because some of the most successful and wealthy people around the world have declared bankruptcy many times.
One of the biggest issues that lots of people have in Mackay is that business owners are not willing to just stand back from the situation and think critically. Because frequently there is not going to be a moment when you can confidently 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 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 certain cases you can save it, but most of the time you will be engulfed by the flames. But if you are smart you will retreat, let the organization of Bankruptcy help douse the flames and save your house. Similar to 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 would like to learn 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 consult with Bankruptcy Experts Mackay on 1300 795 575, or visit our website: Bankruptcy Experts Mackay