Going Bankrupt in Australia appears to sneak in the shadows of both the professional world and our personal lives. It’s the paramount taboo subject. The trouble is perception– because in truth bankruptcy is just a tool that we are able to use to protect ourselves, and rich people know this. Rich people have identified that insolvency is an essential part of staying in business, sometimes 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 operating a small business in Cairns, 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 termination 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 affected by the sudden shut down of the mine. In a similar way we have also witnessed the fall of the Dick Smith’s chain of consumer electrics, as you have probably noticed around Cairns– having said that 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 basically 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 constantly a risk that you are going to fail, and this is no different when compared to a small business in Cairns than it is to considering a large corporation– there is always risk, and there is always a way to reduce the risk.
To start with, there are certain ways to protect assets in your business projects, ways to unlink your assets and basically place a wall between a business, and your home and car. Often this takes the shape of a legal trust, if you wish to find out more about this then talk with a professional when starting your Cairns business. However this really should be done before you start having concerns.
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 this business that is failing and know when to call an end to it. That is what has happened with Clive Palmer and Dick Smith– both have been managing businesses long enough to understand when it is not going to succeed any longer so they pull the plug instead of going down with the ship.
Ultimately, Going Bankrupt is seen as a horribly challenging decision filled 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.
Amongst the biggest troubles that many people have in Cairns is that business owners are not willing to just stand back from the scenario and think critically. Because often 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 sensitive 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 struggling 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 snuff 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 have to.
If you really want 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 talk to Bankruptcy Experts Cairns on 1300 795 575, or visit our website: Bankruptcy Cairns