Going Bankrupt in Australia tends to lurk in the shadows of both the commercial world and our personal lives. It’s the paramount taboo subject. The trouble is perception– because in reality bankruptcy is just simply a tool that we are able to use to protect ourselves, and rich people know this. Rich people have found out that insolvency is an important part of staying in business, in some cases things don’t work out like you had planned, that the market has changed and the numbers simply don’t work anymore. If you are running a small business in Hobart, 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 closure and liquidation of Clive Palmer’s nickel mine there has been a community backlash, workers have lost their jobs and an entire town will be impacted by the sudden shut down of the mine. In a similar way we have also seen the fall of the Dick Smith’s chain of customer electrics, as you have probably noticed around Hobart– having said that 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 because they understand the nuances of Going Bankrupt.
When it comes to businesses, there is regularly a risk that you will fail, and this is no different when compared to a small business in Hobart than it is to considering a large corporation– there is always risk, and there is always a way to soften the risk.
First off, there are clear ways to protect assets in your business ventures, ways to uncouple your assets and basically 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 talk with a professional when building your Hobart business. However this really needs to be done long before you start having concerns.
The next thing that you ought to learn more about Going Bankrupt from this is that often there will be an instance when you will have 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 operating businesses long enough to understand when it is not going to succeed any longer so they pull the plug rather than going down with the ship.
Ultimately, Going Bankrupt is seen as a horribly daunting decision loaded with stigma, and we need to remove this, because some of the most successful and rich people in the world have declared bankruptcy many times.
Some of the biggest complications that lots of people have in Hobart is that business owners are not willing to just stand back from the situation and think critically. Because frequently there is not going to be a time when you can safely 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 certain 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 snuff the flames and save your house. As with any part of life, this is a hard decision, and this is one that you should rarely make without professional advice, but don’t hesitate to turn to Going Bankrupt when you have to.
If you really want 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 get in touch with Bankruptcy Experts Hobart on 1300 795 575, or visit our website: www.bankruptcyexpertshobart.com.au.