Going Bankrupt in Australia tends to hide in the shadows of both the professional world and our personal lives. It’s the utmost taboo subject. The trouble is perception– because in reality bankruptcy is just a tool that we are able to use to protect ourselves, and rich people know this. Rich people have figured out that insolvency is a crucial part of staying in business, occasionally 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 running a small business in Darwin, then focus, because (and not to sound too dramatic) getting to know 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 reaction, employees have lost their jobs and an entire community will be impaired by the sudden shut down of the mine. Similarly we have also witnessed the downslide of the Dick Smith’s chain of consumer electrics, as you have probably noticed around Darwin– however this has been met with far less resentment in the community.
Regardless, both have folded and yet both high profile owners are nevertheless rich and worth millions of dollars. So how does that work? How can these individuals have basically 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 comes to businesses, there is regularly a risk that you may fail, and this is no different when compared to a small business in Darwin 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.
To start with, there are clear ways to protect assets in your business projects, ways to split up 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 wish to find out more about this then speak with a professional when putting together your Darwin business. However this really needs to be done long before you start having concerns.
The second thing that you need to learn more about Going Bankrupt from this is that often there will be a time when you will need to step back from the business that is falling short and know when to call an end to it. This is what has occurred with Clive Palmer and Dick Smith– both have been running businesses long enough to understand when it is not going to be successful any longer therefore they pull the plug instead of 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 wealthy people around the world have declared bankruptcy several times.
One of the biggest troubles that many people have in Darwin is that business owners are not ready to just stand back from the scenario and think critically. Because frequently there is not going to be a time when you can safely and securely 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 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 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. Similar to any part of life, this is a hard decision, and this is one that you should rarely make without specialist 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 Fresh Start Solutions Darwin on 1300 818 575, or visit our website: www.freshstartsolutions.com.au/bankruptcy-Darwin.