Going Bankrupt in Australia seems to lurk in the shadows of both the business world and our personal lives. It’s the utmost taboo subject. The trouble is perception– because in reality bankruptcy is only a tool that we are able to use to protect ourselves, and rich people know this. Rich people have worked out that insolvency is an important part of staying in business, at times 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 managing a small business in Lismore, 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 end and liquidation of Clive Palmer’s nickel mine there has been a community reaction, workers have lost their jobs and an entire area will be impaired by the sudden shut down of the mine. Similarly we have also seen the downtrend of the Dick Smith’s chain of customer electrics, as you have possibly noticed around Lismore– however this has been met with far less outrage in the community.
Regardless, both have folded and yet both high profile owners are nonetheless rich and worth millions of dollars. So how does that work? How can these people have essentially 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 concerns businesses, there is regularly a risk that you are going to fail, and this is no different when compared to a small business in Lismore than it is to looking at a large corporation– there is always risk, and there is always a way to soften the risk.
To start with, there are certain ways to protect assets in your business enterprises, ways to unlink your assets and virtually place a wall in between a business, and your home and car. Often this has the form of a legal trust, if you want to find out more about this then talk with a professional when establishing your Lismore business. However this really needs to be done well before you start having issues.
The other thing that you have to discover Going Bankrupt from this is that often there will be an instance when you will need to step back from the business that is failing and know when to call an end to it. This is what has happened with Clive Palmer and Dick Smith– both have been taking care of businesses long enough to figure out when it is not going to be successful any longer and so they pull the plug instead of going down with the ship.
Ultimately, Going Bankrupt is seen 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 several times.
One of the biggest troubles that many people have in Lismore is that business owners are not willing to just stand back from the situation and think critically. Because often 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 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 declining business in some cases you can save it, but more often than not you will be engulfed by the flames. But if you are smart you will retreat, let the establishment of Bankruptcy help douse the flames and save your house. Just like any part of life, this is a hard decision, and this is one that you should rarely make without specialist advice, but don’t hesitate to turn to Going Bankrupt when you have 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 consult with Bankruptcy Experts Lismore on 1300 795 575, or visit our website: www.bankruptcyexpertsLismore.com.au.