Going Bankrupt in Sydney, the Tricks Rich People Understand about Going Bankrupt
Going Bankrupt in Australia tends to lurk in the shadows of both the corporate world and our personal lives. It’s the ultimate taboo subject. The trouble is perception– because in truth bankruptcy is purely a tool that we are able to use to protect ourselves, and rich people know this. Rich people have discovered that insolvency is a crucial part of being in business, at times things don’t work out like you had intended, that the market has changed and the numbers simply don’t work anymore. If you are operating a small business in Sydney, then listen, 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 backfire, employees have lost their jobs and an entire area will be impaired by the sudden shut down of the mine. Similarly we have also seen the downslide of the Dick Smith’s chain of consumer electrics, as you have possibly noticed around Sydney– nevertheless this has been met with far less shock in the community.
Regardless, both have shut down 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, 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 always a risk that you are going to fail, and this is no different when compared to a small business in Sydney 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.
Firstly, there are clear ways to protect assets in your business projects, ways to separate your assets and effectively 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 Sydney business. However this really needs to be done before you start having concerns.
The second thing that you ought to learn about Going Bankrupt from this is that often there will be a period of 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 happened with Clive Palmer and Dick Smith– both have been controling businesses long enough to understand when it is not going to be successful any longer so they pull the plug instead of 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 around the world have declared bankruptcy several times.
One of the biggest troubles that numerous people have in Sydney 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 failing business sometimes you can save it, but most of the time you will be engulfed by the flames. But if you are smart you will retreat, let the institution of Bankruptcy help snuff the flames and save your house. Just like 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 have to.
If you really would like to learn 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 get in touch with Bankruptcy Experts Sydney on 1300 795 575, or visit our website: www.bankruptcyexpertsSydney.com.au.