Going Bankrupt in Australia tends 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 reality bankruptcy is simply a tool that we can use to protect ourselves, and rich people know this. Rich people have worked out that insolvency is a vital part of being in business, sometimes 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 operating a small business in Mildura, 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 district will be affected by the sudden shut down of the mine. Likewise we have also witnessed the loss of the Dick Smith’s chain of consumer electrics, as you have probably noticed around Mildura– nevertheless this has been met with far less resentment in the community.
Regardless, both have closed 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 effectively had a huge business failure, but had this barely affect their personal wealth? It is because they know the nuances of Going Bankrupt.
When it comes to businesses, there is always a risk that you will fail, and this is no different when compared to a small business in Mildura 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.
Firstly, there are certain ways to protect assets in your business enterprises, ways to unlink 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 with a professional when setting up your Mildura business. However this really should be done before you start having concerns.
The next thing that you need to find out about Going Bankrupt from this is that often there will be an occasion when you will have 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 understand when it is not going to prosper any longer so they pull the plug rather than going down with the ship.
Ultimately, Going Bankrupt is viewed as a horribly tough decision full of stigma, and we need to remove this, because some of the most successful and wealthy people in the world have declared bankruptcy many times.
One of the biggest complications that many people have in Mildura is that business owners are not willing to just stand back from the problem and think critically. Because typically there is not going to be a time 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 prone 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 typically 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 expert advice, but don’t fear to turn to Going Bankrupt when you need to.
If you really want 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 get in touch with Bankruptcy Experts Mildura on 1300 795 575, or visit our website: www.bankruptcyexpertsMildura.com.au.