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- June 14, 2016
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Going Bankrupt in Australia appears to hide in the shadows of both the professional world and our personal lives. It’s the paramount taboo subject. The problem is perception– because in reality bankruptcy is merely a tool that we are able to use to protect ourselves, and rich people know this. Rich people have understood that insolvency is an essential part of being in business, in some cases things don’t work out like you had planned, that the market has evolved and the numbers simply don’t work anymore. If you are managing a small business in Gladstone, then focus, because (and not to sound too dramatic) understanding 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, employees have lost their jobs and an entire area will be affected by the sudden shut down of the mine. Similarly we have also witnessed the loss of the Dick Smith’s chain of customer electrics, as you have probably noticed around Gladstone– nonetheless 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 people have effectively 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 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 Gladstone than it is to taking a look at a large corporation– there is always risk, and there is always a way to minimize the risk.
First off, there are certain ways to protect assets in your business enterprises, ways to separate off 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 would like to learn more about this then speak with a professional when establishing your Gladstone business. However this really needs to be done long before you start having concerns.
The second thing that you need to find out about Going Bankrupt from this is that often there will be an instance when you will have to step back from this 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 managing businesses long enough to know when it is not going to prosper any longer and so they pull the plug rather than going down with the ship.
Ultimately, Going Bankrupt is viewed as a horribly demanding decision loaded with stigma, and we have to remove this, because some of the most successful and rich people in the world have declared bankruptcy numerous times.
One of the biggest issues that many people have in Gladstone is that business owners are not willing to just stand back from the scenario and think critically. Because typically there is not going to be a time 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 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 declining business in certain cases you can save it, but typically 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 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 be afraid 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 comes to 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 Gladstone on 1300 795 575, or visit our website: www.bankruptcyexpertsgladstone.com.au.