Going Bankrupt in Australia seems to sneak in the shadows of both the corporate world and our personal lives. It’s the paramount taboo subject. The problem is perception– because in reality bankruptcy is just a tool that we can use to protect ourselves, and rich people know this. Rich people have worked out that insolvency is an important 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 Toowoomba, then focus, 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 closure and liquidation of Clive Palmer’s nickel mine there has been a community backfire, workers have lost their jobs and an entire town will be affected by the sudden shut down of the mine. Likewise we have also seen the fall of the Dick Smith’s chain of consumer electrics, as you have possibly noticed around Toowoomba– however this has been met with far less shock 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 individuals have basically 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 comes to businesses, there is usually a risk that you may fail, and this is no different when compared to a small business in Toowoomba than it is to taking a look at a large corporation– there is always risk, and there is always a way to mitigate the risk.
First off, there are clear ways to protect assets in your business enterprises, ways to separate off your assets and ultimately place a wall between a business, and your home and car. Often this has the shape of a legal trust, if you would like to learn more about this then speak with a professional when building your Toowoomba business. However this really should be done before you start having concerns.
The next thing that you should learn more about Going Bankrupt from this is that often there will be a time when you will have to step back from this business that is falling short and know when to call an end to it. That is what has happened with Clive Palmer and Dick Smith– both have been taking care of businesses long enough to know when it is not going to succeed any longer therefore they pull the plug rather than going down with the ship.
Ultimately, Going Bankrupt is considered a horribly demanding decision packed with stigma, and we need to remove this, because some of the most successful and rich people on the planet have declared bankruptcy many times.
One of the biggest concerns that many people have in Toowoomba is that business owners are not willing to just stand back from the situation 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 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 struggling business in certain cases you can save it, but generally you will be swallowed up 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 professional advice, but don’t dread 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 Toowoomba on 1300 795 575, or visit our website: Declaring Bankruptcy Toowoomba