Going Bankrupt in Australia tends to stay hidden in the shadows of both the corporate world and our personal lives. It’s the utmost taboo subject. The concern is perception– because in reality bankruptcy is just simply a tool that we can use to protect ourselves, and rich people know this. Rich people have found out that insolvency is a vital part of being 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 running a small business in Perth, then focus, because (and not to sound too dramatic) getting to know 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 reaction, workers have lost their jobs and an entire community will be affected by the sudden shut down of the mine. Similarly we have also witnessed the fall of the Dick Smith’s chain of customer electrics, as you have possibly noticed around Perth– however this has been met with far less outrage in the community.
Regardless, both have closed and yet both high profile owners are nevertheless rich and worth millions of dollars. So how does that work? How can these people have virtually had a huge business failure, but had this barely affect their personal wealth? It is due to the fact that they understand the nuances of Going Bankrupt.
When it concerns businesses, there is constantly a risk that you may 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 mitigate the risk.
First of all, there are certain ways to protect assets in your business enterprises, ways to unlink your assets and effectively place a wall between a business, and your home and car. Often this takes the form of a legal trust, if you would like to learn more about this then speak with a professional when setting up your Perth business. However this really has to be done long before you start having concerns.
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 have to step back from this business that is falling short and know when to call an end to it. This 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 instead of going down with the ship.
Ultimately, Going Bankrupt is viewed as a horribly demanding decision loaded with stigma, and we need to remove this, because some of the most successful and rich people on the planet have declared bankruptcy numerous times.
One of the biggest concerns that lots of 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 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 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 declining business sometimes 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 establishment of Bankruptcy help snuff 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 expert advice, but don’t dread to turn to Going Bankrupt when you have to.
If you really want to learn 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 get in touch with Bankruptcy Advice Perth on 1300 879 867, or visit our website: www.bankruptcy-advice.com.au/Perth.