B2B in Canberra August 2011 (issue 63) by B2B magazine

10 STEPS TO TRIPLING YOUR SALES RSM Bird Cameron’s Andrew Sykes explains CANBERRA’S BUSINESS & GOVERNMENT MAGAZINE

b2bincanberra.com.au

THE ACT TELSTRA BUSINESS AWARDS B2B congratulates the winners Read more on page 22

AUGUST 2011

THE PROMENADE AT KINGSTON FORESHORE YOUR CHANCE TO SHAPE CANBERRA

DE FACTO DILEMMAS Consensus Family Lawyers’ Juliette Ford shares her experience

HAS YOUR BUSINESS BECOME STATIC? Tips from Beames & Associates on how to break out of the mould

ACT MORTGAGE BROKER Tiffen & Co a shining success. David Friend explains

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CONTENTS PUBLISHER’S NOTE ARE YOU OVERPOWERED OR INSPIRED? This ‘note’ comes to you via the internet from one of the most fantastic places in the world: Manhattan, New York. Two million people live in an area less than 30 square miles and 50,000,000 people visit this amazing place as tourists each and every year. It has been on my ‘bucket list’ to visit Manhattan since I was a teenager and got hooked on the sound of Miles Davis. Everywhere I look there are people doing amazing things (and they have to be amazing to ‘make it’ in New York). I think you can come away from a place like with one of two extreme points of view: be overpowered by the intense concentration of incredible people doing incredible things —or be inspired by the experience. I think this is also the same experience for many small businesses. You can either look at your competition that are doing much better than you and be ‘overpowered’ or be ‘inspired’ by their success.

18 COVER STORY THE PROMENADE AT KINGSTON FORSHORE Your chance to shape Canberra

TIM BENSON Publisher

UPFRONT 06 Canberra’s Independent Property Group

wins two 2011 Australian Business Awards Cooking up your best image on a tight budget with Snap Printing

07 Canada Day Fun Run keeps on running Viva Italia Ball shines spotlight on autism disorders

OPINION 08 De facto dilemmas Part 2 with Juliette Ford, Consensus Family Lawyers

7:15 am — 8:45 am Wednesday 19 October 2011 Cost: $35 inc GST

What’s next? ey.com

CONTENTS

FEATURES

32 CORPORATE GOVERNANCE

Getting board composition right

10 Westpac Local at work

By Australian Institute of Company Directors

12 Tiffen and Co: a shining success

ESTATE PLANNING

14 10 steps to tripling your sales

A financial agreement for your children

with RSM Bird Cameron

16 Learn how to move your business to the next

level with Beames and Associates

By Certus Law

34 INTELLECTUAL PROPERTY

Trade Mark Options: What are they and why are they used?

20 Restaurant and catering feature Grandma’s Little Bakery

22 B2B congratulates the winners of the 2011 ACT Telstra Business Awards

By ARUNA Trade Mark Attorneys REAL ESTATE

Benefits of a boutique agency By Maria Selleck Properties

COVER STORY 18 The Promenade at Kingston Foreshore:

36 RISK INSURANCE

Your chance to shape Canberra

Your life insurance broker  an expert in your corner By Capital Wealth

27 ADVICE FROM THE EXPERTS 28 ACCOUNTING

WEBSITES

Four pricing mistakes to avoid

$50 Billion online  are you up for it?

By RSM Bird Cameron

By Synapse Worldwide

ACCOUNTING SERVICES

Compensation tax benefits

By Hillross Wealth Management Centre Canberra

29 BUSINESS LAW

A2B: ASSOCIATIONS TO BUSINESS 38 CANBERRA BUSINESS COUNCIL: No substitute for reserve training

Death and directorship

40 ACT EXPORTERS NETWORK: Tips from export leaders

BUSINESS COACHING

42 ACT & REGION CHAMBER OF COMMERCE & INDUSTRY: Collaboration: the answer to skill shortages

By Elringtons Lawyers

The times are changing: the 4 p’s are dead By 10X

30 BUSINESS SERVICES

Collaboration  the future of conflict resolution By Kazar Slaven

BUSINESS NETWORKING 44 B2B @ Melrose Autos Peugeot 508 Launch B2B @ Canada Day Fun Run 46 B2B @ Canberra Business Point

20 PUBLISHER I EDITOR

Tim Benson editorial@b2bincanberra.com.au 02 6161 2751

ADVERTISING ENQUIRIES Tim Benson 0402 900 402 advertising@b2bincanberra.com.au

COMMERCIAL LAW

B2B @ Exporters Network Regatta Point

Failing to plan By Trinity Law

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LEGAL NOTICE Man Bites Dog Public Relations (‘MBD’) owns the copyright in this publication. Except for any fair dealing as permitted by the Copyright Act 1968 (Cwth), no part of this publication may be reproduced without the prior written permission of MBD. MBD has been careful in preparing this publication, however: it is not able to, and does not warrant that the publication is free from errors and omissions; and it is not able to verify, and has not verified the accuracy of the information and opinions contained or expressed in, or which may be conveyed to readers by any advertisement or other publication content. MBD advises that it accepts all contributed material and advertisements contained in this publication in good faith, and relies on various warranties and permissions provided to it by the persons who contribute material and/or place advertisements. Those warranties and permissions include that neither the material and/or advertisements are misleading, deceptive or defamatory, and that their use, adaptation or publication does not infringe the rights of any third party, or any relevant laws. Further, MBD notifies readers that it does not, nor should it be understood to endorse, adopt, approve or otherwise associate MBD with any representations made in contributions and/or advertisements contained in the publication. MBD makes no representation or warranty as to the qualifications of any contributor or advertiser or persons associated with them, and advises readers that they must rely solely on their own enquiries in relation to such qualifications, and be satisfied from those enquiries that persons with whom they deal as a result of reading any material or advertisement have the necessary licences and professional qualifications relating to the goods and services offered. To the maximum extent permitted by law, MBD excludes all liabilities in contract, tort (including negligence) and/or statute for loss, damage, costs and expenses of any kind to any person arising directly or indirectly from any material or advertisement contained in this publication, whether arising from an error, omission, misrepresentation or any other cause.

Stepping up to the Leadership Challenge! Global leadership practices proGram C H I N A - 2 0 11 The Global Leadership Practices Program is a ground breaking development initiative designed for high performing Commonwealth and State/ Territory SES Band 1 and Executive Level 2 Officers. Presented by Yellow Edge and the China Executive Leadership Academy Pudong in Shanghai, the program is supported by the Australian National Universityâ&#x20AC;&#x2122;s China Institute and the China Research Centre at the University of Technology, Sydney.

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UPFRONT

Canberra’s Independent Property Group wins two 2011 Australian Business Awards Independent Property Group has been recognised among Australia’s most progressive organisations, winning the Australian Business Award in both the Recommended Employer & Marketing Excellence categories in the 2011 Awards. The Australian Business Award for Recommended Employer recognises organisations that provide a stimulating and supportive workplace, while the Award for Marketing Excellence recognises those that have achieved outstanding results through innovative marketing strategies and execution. Commenting on the win, Independent’s CEO John Runko, said: “We have a strong family culture here at Independent which inspires outstanding teamwork. Our team takes great pride in continuing to look at ways in which we can evolve and improve, achieving the most successful results for our clients. These awards are testament to our culture, training, service focus and continuing desire to remain at the forefront of our industry.” These results for Independent come

on top of a number of achievements over the past few years, including their induction into the Real Estate Institute of Australia’s Hall of Fame in 2011 for the Large Residential Agency & Communication Awards and their dominance of the Real Estate Institute of the ACT’s Annual Awards, winning the Large Agency of the Year Award 14 times in the awards’ 16 year history. The Australian Business Awards challenges the full spectrum of private, public and non-profit sector organisations in Australia through its comprehensive business and product award categories.Now in its sixth year, the Australian Business Awards program recognises organisations that demonstrate the core values of business excellence, product excellence, corporate responsibility, sustainability and commercial success in their respective industries. Tara Johnston, program director of the Australian Business Awards, said the standard of entries for 2011 was a testament to the strength and resilience of the Australian economy. “Australian businesses continue

to adapt business processes, invest in product development and develop dynamic e-business initiatives that increase productivity and quality standards for all. The Australian Business Awards provide a welcome opportunity for organisations committed to business and product excellence to receive recognition throughout their respective industries for driving positive business outcomes,” said Johnston. “We are proud that the Awards continue to promote the key values in the workplace which foster a vibrant organisational culture and encourage enterprise, product innovation, service excellence, marketing excellence, environmental sustainability and community contribution. We would like to congratulate all the 2011 winners for achieving exceptional results within the respective award categories.

Cooking up your best image on a budget All of us have had the experience of eating out and a great meal that you thought was great value, but also some that would have been over priced at half what they asked. For Ian Barrass, proprietor of Snap Printing Canberra City, it’s about value for money and not just in a restaurant. “Value for money doesn’t mean cheap or cheapest. It is quality that leaves a good taste in your mouth and an image that is remembered. Quality serves up a clear message to your customers about what you stand for and builds value into each of your products. Put simply, quality sells,” he said. Ian adds “It can be easy to cut back on some relatively small things and make an unintended statement about your business. Material printed on an office desktop may indicate admirable frugality, but may also suggest that you are under-resourced, cannot invest in your business and, by implication, will not invest in the inputs to provide a great product for your customers.” For the team at Snap Printing Canberra City, it’s all about 6

portraying an image to your market that will keep existing customers and find new ones. “Some customers will look for the cheapest price, but many will look to quality as the best value for money and to reduce the chance of a poor purchase,” Ian says. Snap Printing Canberra City makes no bones about setting up to produce high quality products that delight their customers and represent value for money. “It surprises me how often we are asked to reprint work done by other printers because it delivers neither the quality nor the image that a business wants to put out to its customers,” Ian said. “Everything from brochures to invoices constitutes marketing and should say something about what your business represents.” Snap Printing Canberra City sees many different approaches to marketing, both in print and other media. We are qualified and experienced in helping businesses make the best of what

A U G U S T 2 0 11 B 2 B I N C A N B E R R A

they are doing now, but also we can add value by suggesting some fine tuning that will assist a business to ‘plate up’ a consistent message of quality,” Ian said. Ian and the team at Snap Canberra City invite you to bring in your current printed material and, without obligation, discuss whether it needs a redesign or whether just using a different paper or process is all it will need to leave a taste that will make your business memorable.

UPFRONT

Canada Day Fun Run keeps on running The annual Canada Day Fun Run was successfully held recently for its 22nd year at Mt Stromlo, thanks to the support from new major sponsors Consensus Family Lawyers. For the past 21 years the Canadian High Commission had organised a Canada Day Fun Run to help raise valuable funds for the ACT Cancer Council. Over these years the fun run raised significant funds which were used to support the families of those affected by cancer. The event was in question for this year after the Canadian High Commission finally decided to stop funding the event. However, Zoe Routh, an ex-pat Canadian who has lived in Canberra for the past 15 years was determined to rescue the fun run to see its legacy continued. “Until this year the run, inspired around the world by Canadian Terry Fox, has been supported by the Canadian High Commission, but as a cancer survivor and an enthusiastic runner, I couldn’t bear to see this important fund raising run fall into oblivion when the Commission decided not

to continue their support,” Zoe said. “I had a certain resonance with the old Terry Fox runs and have run the race here for the last decade. I was very proud of the Canadian High Commission’s support of the Canberra community and I wanted to see that legacy continued,” she adds. Zoe was diagnosed with cervical cancer in 2005 and is very appreciative of the treatment she received in Canberra. “Even when I was undergoing chemotherapy that year, I managed to walk the course. Now that I am well I know how important it is to receive the support given by organisations such as the ACT Cancer Council and so I, with my husband Rob and friends Lisa Moore and Dwayne Currie, are continuing this wonderful Canadian tradition.” Each year there are about 1253 new cases of cancer diagnosed throughout the ACT each year, with around 400 people dying from cancer within the ACT region. The Cancer Councils around Australia rely

Over these years the fun run raised signiﬁcant funds which were used to support the families of those affected by cancer. on public donations, bequests and fundraising activities to maintain their research, education and patient support services. Please donate online at www.cancer.org.au/ Getinvolved/donate.html

Gala dinner shines light on autism spectrum disorders The Canberra business community recently came together at the Viva Italia Gala Dinner held at the Hotel Realm to raise awareness about autism spectrum disorders. Sarah Tout from major sponsors Centric Wealth spoke of the events success, ”The recent Viva Italia Gala Dinner for Autism Asperger ACT (AAACT) was a great success and brought together professionals, supporters and carers from across the ACT to raise money to develop the Autism Asperger centre in Chifley. Centric Wealth were extremely pleased to get so many people to the Gala Dinner and raise awareness among local businesses and in the community for the hard working team at AAACT.” Centric Wealth was involved in supporting the event by running and promoting a Corporate Challenge, inviting businesses to book tables of ten and offering a prize of a degustation dinner at Mezzalira, a ride in a Ferrari, and a framed vintage Ferrari print, to the business arranging the most number of tables.

“We publicised the event to our clients and colleagues and were able to fill over ten tables, boosting the number of guests to over 300 on the night. The eventual winner of the Corporate Challenge was the Fujitsu Group, who were very vocal in their appreciation of the prizes!” says Sarah. The evening’s delicious Italian themed three course meal was interspersed with entertainment from MCs Tim Gavel and Andrea Close; Keren Dalzell, a local and upcoming opera singer who was diagnosed with High Functioning Autism when she was ten; and silent and live auctions. “Later in the evening, a couple of hours dance and swing music from local favourites, Annie and the Armadillos, helped us work off the calories consumed,” Sarah said. While no two people with an Autism spectrum disorder (ASDs) present in exactly the same way, ASDs are generally lifelong, developmental disabilities characterised by significant difficulties in social interactions, communication and behaviour.

The number of children diagnosed has doubled every five years during the last 20 years. Whether this increase is a real one or the result of better awareness and a wider diagnostic criteria continues to cause debate in the autism community. Early intervention and intensive support can make huge strides to advance the development of children with autism. This is the main operating focus of Autism Asperger ACT. To further aid Autism Asperger ACT please donate generously at http://www.autismaspergeract.com.au/donate

B2B IN CANBERR A

A U G U S T 2 0 11

OPINION

De facto dilemmas PART 2 By Juliette Ford, Director, Consensus Family Lawyers

ast month we wrote about de facto relationships and how a couple could know when they had entered into one. We looked at the case of Bill and Laura, a couple who began to live together on a part time basis and combine their finances. Bill and Laura discovered that they were in a de facto relationship as defined by the Family Law Act and if they were to separate they could be vulnerable to a claim in the Family Court. Now that Bill and Laura have realised that they are in a de facto relationship, how can they find a way forward that won’t leave them feeling anxious about any future problems? They both want to keep living together and keep having joint finances but both want to protect assets that they have acquired prior to living together. One possibility is that Bill and Laura could enter into a binding financial agreement, or a pre-nuptial agreement, as it is known colloquially. These agreements allow a couple to make an agreement about what will happen to them financially if their relationship breaks down. Since March 2009 binding financial agreements can apply to de facto relationships. You can enter into a binding financial agreement prior to commencing a relationship, during a relationship or after a relationship has already ended. There are also a number of legal requirements you need to satisfy in order for any agreement to be enforceable. The two most important are: • Any parties to the agreement must disclose all their assets and financial resources prior signing the agreement; and

Binding financial agreements, whilst useful, are not simple documents to create and put into effect. It is very important that you receive advice from an experienced family law practioner in relation to creating and signing one. • The parties must get formal, independent legal advice in relation to the proposed agreement and a solicitor must sign a certificate indicating that they have given the advice. Binding financial agreements, whilst useful, are not simple documents to create and put into effect. It is very important that you receive advice from an experienced family law practioner in relation to creating and signing one. Laura talks to her solicitor and decides that it is in her best interests to sign a binding financial agreement. She now has to talk to Bill about their situation and her desire for clarity in relation to what will happen if they separate. It takes her a few days to build up the courage. She finds it extremely difficult to approach Bill and begin a discussion predicated on the idea of their relationship

A U G U S T 2 0 11 B 2 B I N C A N B E R R A

failing. What if Bill thinks she doesn’t trust him? What if by asking Bill to sign a binding financial agreement she actually causes more problems in their relationship? Laura does eventually raise the subject with Bill. During their conversation, Laura compares a binding financial agreement to an insurance policy. It is something that will hopefully never be used but if circumstances change, it can be retrieved and put to use, thereby saving them from added stress and anxiety during a separation. Much to Laura’s relief, Bill is not upset and he agrees with her idea that they should enter into a binding financial agreement as a kind of insurance policy. They have a frank discussion about their relationship, their finances and what they both want to happen in the future. They find that by talking openly about such sensitive matters they have actually strengthened their relationship, rather than creating additional difficulties. Laura and Bill show why it is so important to consider and openly discuss the legal implications of relationship earlier rather than later. Imagine how much more difficult such a conversation would be for Bill and Laura if it had occurred at a time they were separating. It would significantly increase the stress on both parties at a time when they are already going through an emotionally draining experience. A binding financial agreement can facilitate these discussions and ensure there is clarity for the future. For an Out of Court Solution contact Consensus Family Lawyers, 17-21 University Avenue, Canberra T: 02 6290 9898 or www.cflaw.com.au

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F E AT U R E

WESTPAC LOCAL AT WORK Westpac has been implementing its Local Strategy over the last 18 months. Built around the re-introduction of the Bank Manager role, this has brought the authority and autonomy to make decisions for their customers back into the local bank branch. We make it our priority to understand the nature of the businesses we are working with and make our decisions accordingly. The ACT is a great place to live and do business. The economic situation in our area is somewhat unique and its important that we can make decisions and provide the right advice locally for our clients. Westpac’s Local focus is supported by the findings of a recent survey which showed that 70% of customers are fed up with impersonal service and welcome the return of the Bank Managers. The Westpac Local strategy has directly benefited customers across the ACT and Queanbeyan with 11 Bank Managers now employed across the region, along with Local Business Bankers and Small Business Bankers being appointed across the local branch network. With this greater presence and strong focus on small and medium business specific expertise, Westpac is able to work hand-inhand with its customers to help grow and invest for success and give the kind of support that only a person with local knowledge can provide. Over the past year Westpac branches have also given Local Business owners the opportunity to advertise their business inside the branch, either through displays or by placing their business cards or posters in prominent areas of the branch. This initiative has enhanced the relationship between the local branch and its customers, and customers have benefited from showcasing their business to a whole new range of clients. Some of the customers who have taken advantage of this are Jax Quick Fit Tyres Mitchell owner Matt Sci-Leet (pictured above with the Westpac Dickson Bank Manager Jymm Davis (left) and Local Business Banker Cody Zhang (centre). Mr Sci-Leet said that this was a great point of difference offered by the bank that had really helped him promote his business to the local area. Other businesses that have also had displays in branches in Canberra and Queanbeyan

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include Deans Towing, Couriers Please, MacDonalds Schoolwear, Cold Rock Ice-creamery, Belconnen Art Centre and Kick Arse Kustom graphic designs. As Australia’s First Bank, Westpac has always been committed to providing Australian business owners with the knowledge and guidance to help them achieve financial success. Westpac recently launched Australia’s First School of Money – the Davidson Institute, a complete educational resource designed to help all Australians make more confident financial decisions. This gives small business customers the opportunity to attend seminars that relate directly to their needs, including cash flow, business planning and human resource management, as well as access to online courses allowing them to gain professional accreditations. Westpac also held National Business Month in May, during which 2,500 local business customers were surveyed nationwide, including business from the ACT and Southern NSW regions. The results were collated in the Westpac Local Business Sentiment survey, the first study to detail the attitudes and key factors that are positively and negatively influencing the small and medium business sector at local and regional levels. From this, Westpac was able to get key insights from business owners in the ACT and Southern NSW, allowing them a greater understanding of their needs. For example, local businesses in these regions were quite positive when compared with other businesses across Australia: 69% thought their business performance was good, and 63% are happy business owners, both slightly higher results than the national standard. While consumer confidence is a noted negative for business around Australia, NSW Regional and ACT businesses seem to find it to be a significant pain point with 39% citing it as a negative influence, compared to 23% at a national level. If you would like more information about how a Westpac Business Banker can help you, or to display in a Westpac branch, please contact your Local Bank Manager at any of the Westpac branches across the ACT and Queanbeyan and they will be happy to discuss opportunities with you.

Greg Castle Regional General Manager Westpac Banking Corporation

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F E AT U R E

A shining success

avid Friend and Tiffen & Co are at the top of their game. For the past five years David has been ranked in the MPA (Mortgage Professionals Australia) magazine Top 100 Brokers nationally and in the top 25 Australian mortgage brokers according to Mortgage and Finance Magazine. In July Tiffen & Co was named Australia’s Boutique Brokerage of the Year for 2011 in The Adviser’s Australian Broking Awards (leading publication for the mortgage and finance industry). Some of the stunning Tiffen & Co statistics include: • More than 19,000 mortgage solutions found for Canberrans • An average of $300 million home loans written each year; and • A loan book of almost $1.2 billion at the end of 2010. David is married to Nell and they have a blended family of seven kids: Abbey, Jed, Sarah, Toby, Claire, Grace and Harry and Indi the dog.

“I specialise in working with complex structures and larger clients that may need restructuring,” David explained. “I offer an impartial service at no cost to the client with direct access to more than 20 different lenders.” David was born in Canberra, grew up here and overseas and attended Canberra Grammar School. After a career with wellknown brands such as Kellogg’s and Coke, David joined Tiffen & Co in 2000 as a mortgage broker and has never looked back. He was welcomed as a shareholder and director in 2005. David has built a reputation as a mortgage broker who can work with financial advisers, solicitors and accountants towards a common goal for their clients. His commitment to customer service puts him in front of the competition. During David’s time in the mortgage broking industry and with the knowledge he’s gained David has built up his own property portfolio, which includes properties in the ACT, NSW and QLD. This has given him firsthand experience in the processes and structuring required for anyone doing the same thing.

A U G U S T 2 0 11 B 2 B I N C A N B E R R A

David puts most of his success down to the fact that he puts a lot of emphasis on ensuring that his clients and referrers are kept informed during every step in the process. “We ensure people are well informed and regularly updated on the progress of their applications. We also update referrers on a weekly basis,” David said. Tiffen & Co’s offices in Kingston demonstrate the success and professional standards they hold in the mortgage broking industry. David’s personal assistant Alice Dawson is credited by David for a lot of their success as a team. “Alice has been with me for nine years and looks after my clients from the time I give her the application until settlement. Her work ethic and customer service is fantastic. She gets more praise from clients than I do,” David laughed. “Recently Miranda joined our team as Alice’s assistant and it has given us more capacity to provide an even better service to our clients.” The mortgage industry has undergone massive and welcome change recently with the introduction of National Consumer Credit Protection (NCCP) and Responsible Lending Laws. “These new laws came into effect on July 2010 and provide consumers with protection against unscrupulous brokers or lenders, which was badly needed in the industry,” David said. “When a consumer takes out a home loan they want peace of mind knowing that they are dealing with a mortgage broker or lender who has demonstrated knowledge, experience and integrity,” he said. “While strong consumer protection standards already existed within the mortgage industry, consistency varied from state to state. This is the first time Australia has had one national standard system of regulation,” David said. One of David’s main motivations in business is his desire to help people. “Unlike a bank manager looking for profit and bonuses — I am looking for repeat business,” David said. “This ensures our customer service levels are exceptional.” David says that ‘Canberra’ is home. “Canberra is a great place to live and bring up kids. My network of friends is also here. It will definitely be my home…until the sea change,” David said. 23 Jardine Street, Kingston ACT 2604 P 02 62607880 | www.tiffenandco.com

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F E AT U R E

10 steps to tripling your sales by Andrew Sykes

arketing your business is essential if you want to be profitable and stay ahead of the competition. But marketing is a big budget item and often money that you don’t want to spend. When you do spend it, what do you achieve? In marketing what gives you a real return? The answer to these questions are going to be different for every business. As we are constantly told by the high profile gurus, ‘Stop marketing at your own risk. Just get out there and promote your business and value your customers.’ We have come up with a list of low-cost marketing tips that will deliver real returns.

Ten steps to tripling your sales 1. 2.

5. 6.

Profile your customers. Most businesses can tell you how many products they have sold and what their products do. Very few of them actually know who their customers are. Segment your customers. This is a difficult process in most businesses because the information has not been collected. Consider issues such as customers’ income, location, industry background, and sales volume. Identify your ‘A’ class clients. Rank all your customers. A small percentage of your clients (between 20% and 30%) will be responsible for the majority of your profit. These customers are usually regular purchasers, with a high value per purchase, and you enjoy dealing with them. Identify the situation facing them. In order to understand future market trends, you must understand the changes occurring to the environment of these clients. What is happening for them? Are new competitors, new government legislation, increasing costs, new technology, etc affecting them? Consider a survey of your customers to capture this information. Identify their problems. Talk to your customers and find out about their challenges and problems. Listen to their concerns. Try and get them to be specific about the issues they face. Get them to quantify the implications. Discuss with your customers what would ultimately happen if they do not find a solution to these problems. Would they face financial difficulties, longer working hours, or greater stress? Here you are trying to understand what would motivate them to change to you. Do you forget all these steps and just assume that price is the motivator?

Create the need for your services. Your customers should now be asking for your help. You have the opportunity to offer a solution. They will be more interested in you and your company rather than how much you charge. 8. Outline the costs and benefits of your services. Completing a Cost Benefit Analysis makes it simple for your customers to make a decision. The clearer the benefits, the less the issue about price. 9. Offer a guarantee. Every business informally provides a guarantee, but very few have defined it, and told their customers! The clearer you are about your guarantee, the easier it is for you to limit your exposure. 10. Ask for the sale. This is the step that everyone puts off. Your customer is expecting you to ask for the sale. When you don’t ask for it they think that you cannot successfully meet their need. Practising, testing and scripting is essential. These steps provide you with the content of any future advertising and promotion. Our clients have achieved outstanding results using this 10-step process. Low cost and high impact – exactly the sort of return we want from marketing. Contact us to see how we can assist you through each stage and achieve significant success.

Andrew Sykes is Director, Business Solutions at RSM Bird Cameron

For information on business improvements contact our experienced team, 103–105 Northbourne Ave, Canberra. T: 02 6247 5988, www.rsmi.com.au

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F E AT U R E

ONLY FOOLS AND HORSES TIM BENSON, B2B PUBLISHER, TALKS TO ROSS BEAMES, DIRECTOR AT BEAMES AND ASSOCIATES ACCOUNTING & FINANCIAL SERVICES, ABOUT WHAT IT TAKES TO MOVE YOUR BUSINESS TO THE NEXT LEVEL

ccording to Ross, ‘Only fools and horses’ continue to be in business and do the same thing week in week out and expect a different outcome… and he says ‘maybe that’s a good definition of insanity as well’. So why do so many business owners continue to be in business where the business achieves the same outcomes, with the same inputs, each and every year? Why is it that the quality and quantum of profits earned by businesses within specific industries vary so much? Why has the gap widened between the high performers and the rest of the pack? Well, Ross says that “many of the reasons can be found in the following sample of quotes from business owners that operate ‘static’ businesses”: • • • • • • • • • • • • •

Didn’t we talk about that last time? Things are tough…I just hope it turns around soon I just can’t get good staff No one wants to work in this industry anymore It’s becoming even tougher to make a dollar The Government is making it impossible to attract staff given what they pay That would be a really difficult conversation, and most likely, too difficult The kids of today just don’t want to work We can’t afford to do that Every time we get momentum something happens It would be nice if staff just turned up to work and did what was asked of them The new generation just don’t know what hard work is I thought about that but never followed up.

Have you ever met the perennial victim? The business owner who has an excuse for everything and suffered the worst bad luck of anyone in Canberra? “Many small and medium sized businesses enjoy a period of rapid growth and success during their formative years and eventually out grow their founders. The problem is however, the founders have complete autonomy in key business decisions. The one person you may need to create change and innovation may also be the one person who is resisting change. This is why so many mature small and medium sized businesses have the following growth history outlined in the graph below,” Ross said. rs vato Inno

rs vato Inno

Growth

Time

“As depicted above, many businesses enjoy the first 5-7 years with regular growth due to the advantages of being somewhat “boutique”. However, once the “boutique” novelty runs its course and no longer provides a competitive advantage, many business owners lose their ability to innovate and change. Ultimately the business growth flat lines and the same set of inputs create the same outcomes, adjusted for inflation,” Ross explained.

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F E AT U R E

So what does it take to change the growth curve? “Over the eighteen years that I have been in public practice advising clients, both at the large multi-national publicly listed entity level and the micro level, there have been a number of key attributes that seem to follow successful businesses. These businesses have the ability to drag themselves off the canvas (also known as the flat growth curve) and commence on a path of sustained growth. Through observing and documenting these successful habits over a number of years, they can be narrowed down to the following,” Ross said. • Innovation becomes a core competency • Business owners and their staff are a team–one culture, one message, one set of values • The gap between remuneration levels for star performers and routine performers should be wider than it has ever been. Star performers should be remunerated like “franchise” or “marquee” football players • A “back to the future” plan is developed and communicated to all staff. Staff are fully aware of their personal opportunity within the business over the next 5 years for growth, development and promotion • A strategic business plan is actually developed, communicated and regularly referred to • Regular performance feedback is provided to all staff • The financial budget is communicated to all staff • Heavy Investment in staff training and development • Zero tolerance for process non compliance • Relentless pursuit of excellence • Measure customer satisfaction • Publicly (within the business) report on accountability • Business leaders/owners become high performance trainers of staff • A unique journey and experience is provided to all customers • Business owners set the tone and lead by example.

Identify your mentor(s) Ross says that a testament to the Canberra business community is that some of the highest performing businesses across Australia within particular industries reside right here in Canberra. “This is something I know for a fact and we are continually working with clients on a daily basis to achieve such an outcome. Over the past 12 months, having invested as much time in technical development as what you might refer to as professional personal development, the results for both our business, and in particular our clients, has been outstanding,” Ross said. “The ability to learn from other business people from different backgrounds and industries is a powerful tool to ensure you create a different, and better outcome from the “static” business owners.” Interaction with other business people, through a formal or informal mentorship arrangement, has the ability to provide the

necessary ‘day to day’ reminders to drive excellence and growth in your business. Below Ross has outlined the top 10 specific “day to day” business ideologies adopted by high performing Canberra business people that are proving to be a strong positive influence on the development of their business, their staff and most importantly, themselves: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Do the hardest thing first, each and every day you start work Your net worth is your network If you want a different outcome, change the inputs - innovate Staff leave managers, they don’t leave jobs Don’t let bad customers train you Successful people are those people that can handle critical conversations No one owns the truth Let silence do the heaving lifting Relationships don’t go bad overnight – it starts slowly and ends suddenly A team won’t outperform their leader.

What should you do? “If you are an owner of a mature business and you have continually delivered sustained growth over the past five years then congratulations – now maybe it s time to share your wisdom and mentor other Canberra business owners. If however you are like many owners of “static” businesses, I recommend you do the following,” Ross said. • Write your strategic and business planning ideas on a single sheet of paper • Identify at least 5 new inputs to your business that will create a different outcome • Engage, formally or informally, a business mentor • Hold a strategic planning day with all staff • Double your training and staff development budget • Increase the remuneration of your star performers • Immediately counsel out your non performers and “change resistant” staff. “Because ‘only fools and horses’ would continue with the same business activities and expect a different outcome,” Ross said. Beames & Associates was established in 2001 and now has a team of over 30 staff based in Deakin specialising in wealth creation strategies and performance improvement for small and medium businesses. Beames & Associates has three accounting directors in Peter Beames, Ross Beames and James Watt and one financial planning director in David Rae. If you’re looking for the ‘X’ factor and want to take your business to the next level call any of the directors on 6282 9500.

B2B IN CANBERR A

A U G U S T 2 0 11

COVER STORY

YOUR CHANCE TO SHAPE CANBERRA When Walter Burley Griffin first sketched the lake that would come to bear his name, he imagined its East Basin as a vibrant, active harbour that would thrive with people and life. His vision is now almost complete with the creation of an innovative commercial, recreational and retail hub at Kingston Foreshore.

CULTURE AND DINING

ART, LEISURE, ENTERTAINMENT

he Promenade is one of the most unique development projects in Canberra since the creation of Kingston Foreshore itself, encompassing a diverse mix of residential and commercial developments on the shores of Kingston’s new harbour. It will combine stylish landmark buildings from some of Canberra’s most renowned development firms  The Doma Group and Englobo Group  with extensive public spaces that take full advantage of its stunning location and views of Canberra’s iconic landmarks.

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he Land Development Agency’s Chairman, Ray Young said the Promenade is a crucial part of the overall vision for Kingston Foreshore, because it will become the precinct’s buzzing recreational and commercial heart. “The Promenade is the centrepiece of Kingston Foreshore, and the place where its public, commercial and residential spaces combine to create an environment unlike any other in Canberra. “It will be a place where people from across Canberra meet to shop, eat and socialise, and a major tourism landmark that complements Kingston Foreshore’s cultural facilities to draw visitors from around Australia. “Like Melbourne’s Southbank and Sydney’s Darling Harbour, the Promenade will become the centre of the National Capital’s social and recreational scene in the years to come,” he said.

DESIGN, ARCHITECTURE, AMENITY

COMMERCIAL CREATIVITY

he Kingston Foreshore project is now three quarters of the way through its development timetable, and thousands of Canberrans are already living or working in the precinct. Ultimately, the precinct will accommodate more than 1,700 individual dwellings along with dozens of shops, restaurants, cafes, services and cultural facilities, creating a bustling, vibrant neighbourhood that will attract visitors from across the city and around the country. Because of this, the current crop of mixed-use developments coming to life along the Promenade offers some of the most exciting commercial opportunities Canberra has seen in recent years. Moreover, people taking advantage of these opportunities will be part of a unique moment in Canberra’s history when the city’s new social, recreational and commercial hub comes to life. For more information on the Promenade’s commercial opportunities and the innovative vision for Kingston Foreshore visit www.kingstonforeshore.com.au. Contact details for the various developers are also available on the website.

ronting Lake Burley Griffin and its newly created harbour, the Promenade is one of the final stages in Kingston Foreshore’s urban renewal. Its focus will be a public boardwalk that skirts the harbour featuring landscaping, street furniture and public art installations. The boardwalk will link up with the established lakeside pedestrian and cycle paths, encouraging recreational traffic through Kingston Foreshore to the Parliamentary Triangle and the Jerrabomberra Wetlands. Renowned landscape architecture firm Oxigen is behind the design for the Promenade’s public spaces, and Principal James Hayter said the vision is for flexible, interactive spaces that will naturally draw people together. “The Promenade offers one of Canberra’s most beautiful views across the lake to Mount Ainslie and the Jerrabomberra Wetlands, so we have taken full advantage of that in creating a series of interlinked spaces where people can meet, exercise or just enjoy being outdoors,” Mr Hayter said. “These spaces flow naturally throughout the Promenade’s commercial and retail spaces to encourage pedestrian traffic and create a colourful passing parade for people eating, drinking and socialising there.” The Promenade’s development footprint incorporates three mixed-use blocks that were snapped up by local developers when they were auctioned in 2010. Several innovative developments are already taking shape there and will progressively become available for occupation throughout 2012. The Doma Group is developing the Dockside complex, which will combine residential and commercial facilities with space for cafes and restaurants opening out on to the Promenade’s boardwalk and boutique offices fronting Eastlake Parade, which is expected to appeal to service-based businesses catering for the needs of Kingston Foreshore’s residents. Englobo Group’s Aurora complex will also be at the centre of the precinct’s hustle and bustle, being situated close to the cultural hubs of the Old Bus Depot Markets and the Canberra Glassworks on one side and facing out to the Promenade’s boardwalk on the other. Because the complex is located next door to one of Kingston Foreshore’s most established apartment buildings, Waterfront, demand is expected to be strong for Aurora’s street-level commercial facilities. Englobo Group’s commitment to Kingston Foreshore is further evident through the purchase of ‘Site 20’ on the southern end of the Promenade which will see the delivery of a unique and innovative architecturally formed development. The Promenade is linked to the rest of Kingston Foreshore through other quality developments by firms including Amalgamated Property Group and Milin Builders & Developers, Consolidated Builders Ltd, CIC Australia Limited and Per-se Developments. It is also linked to The Island by a dedicated pedestrian bridge as well as the existing road bridge. Developments on The Island will take full advantage of this link with residential apartment and commercial spaces facing across Lake Burley Griffin and back to Kingston Foreshore.

R E S TA U R A N T A N D C AT E R I N G F E AT U R E

Inspired by Grandmas and Grandpas from all over the world

antalise your taste buds and journey through the Mediterranean without leaving the country. Nestled between Canberra and Goulburn, in the heart of the award-winning Fedra Olive Grove sits Grandma’s Little Bakery, offering a unique blend of traditional flavours and recipes inspired by grandmas and grandpas from all over the world. From the bakery oven to you — the fresh made sweet and savory pastries and delicious pies complemented by barista-brewed coffee is a little slice of Mediterranean perfection. All gathered in the comfort of a country styled restaurant. There’s nothing better than inspired meals made from fresh farm produce. Grandma’s Little Bakery’s menu is a blend of traditional flavours and recipes inspired by Dana Kvatinsky and Avi Cohen’s parents

and grandparents. All foods are comprised of fresh, wholesome ingredients many of which are sourced from the local area, while all pastries and meals are cooked fresh daily. Owners Dana Kvatinsky and Avi Cohen opened Grandma’s Little Bakery in August 2009. It has become a popular destination for travellers to stop by and enjoy some warm hospitality before continuing their journey. “There are lots of regulars not just from the Collector area or Goulburn but also from Canberra and Sydney,” Dana said. “When we chose this place I felt at home and wanted to share this feeling with my customers. What you are going to get here is a down-to-earth, friendly atmosphere.” Their unique olive farm setting and delicious home made catering menu will make your function or event something to remember. “It’s a great place to have a party and we also have a chapel out here that is

suitable for weddings and ceremonies.” A visit to Grandma’s Little Bakery would not be complete without tasting their award winning olives and olive oil. Their farm shop features products which are healthy, fresh and full of regional goodness – olives, olive oil, jams, dips and pastries in take-home or gift packs. With beautiful views across the olive groves, and offering a menu which includes vegetarian and gluten–free options there is something for everyone at Grandma’s Little Bakery. Grandma’s Little Bakery is located at Fedra Olive Grove, 5796 Federal Highway, Collector. Open 7 days, from 9am to 4pm. Phone 4848 0240 or visit www.grandmasbakery.com.au for more information.

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No matter what type of event you are planning, we have venues at Tuggeranong, Yacht Club and Woden (Platinum Member of Canberra Convention Bureau) that can cater to your every need.

Woden 6283 7200 Tuggeranong 6293 7200 Yacht Club & Cruises 6273 1784 Download packages at cscc.com.au

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A C T T E L S T R A B U S I N E S S AWA R D S

ACT TELSTRA BUSINESS AWARD WINNERS FOR 2011

B2B congratulates the ACT Telstra Business Award winners for 2011. The winners were announced at a Gala Dinner at the Hyatt Regency Canberra in July. Luton Properties was named 2011 ACT Business of the year and also won the Panasonic Australia Medium Business Award. Also winning Telstra ACT Business Awards were, industry skills training organisation Learning Options, coaching and business planning advisers Interaction Consulting Group, boutique recruitment company PCA People and media and entertainment company Lucy Media, which operates a website portfolio including whosdatedwho.com. Telstra Business Group Managing Director and Awards Ambassador Deena Shiff said all winners were entrepreneurs and innovators running outstanding businesses, whose success was an inspiration to others in the ACT’s small and medium sector. Ms Shiff said Telstra was proud that the Awards program, now in its 19th year, continued to celebrate risk-takers and achievers who were creating local job opportunities and were the backbone of local communities. The winners of the ACT Business Awards will now be judged against category winners from other states and the NT in the lead up to the national Telstra Business Awards to be announced in Melbourne on 26 August. Winners of the 2011 Awards receive a share of $500,000 in cash and prizes and become part of an exclusive national business alumni.

MYOB SMALL BUSINESS AWARD WINNER

Interaction Consulting Group “We introduced post-course testing that allows the client to see the knowledge gained by the participants and therefore their return on investment.” – Lesley Richards, Managing Director.

Grant Lingwood-Smith, MYOB (L) with Lesley Richards, Interaction Consulting Group (R)

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Interaction Consulting Group is a management consulting firm specialising in training, facilitation and coaching services. Growing from a home office in 1994 to a company with 12 permanent staff, Interaction helps organisations to build the capacity of their people and their business. It offers team building, development programs, individual coaching, business planning and strategic advice to 36 client organisations. Managing Director Lesley Richards said Interaction’s success is due to the tailored approach it offers clients and the significant senior public sector experience and knowledge of its consultants. When a change of government in Canberra affected spending on learning and development activities, Interaction branched out to seek clients in state and local governments. Interaction’s milestone achievements include winning contracts with whole-of-government panels in the Australian Public Service and the ACT, SA and Queensland governments. Interaction is managing its growth incrementally and recruiting more consultants in mid 2011.

A C T T E L S T R A B U S I N E S S AWA R D S

YELLOW PAGES SOCIAL RESPONSIBILITY AWARD WINNER

PCA People Pty Ltd “We have a reputation as a quality provider and an extensive candidate database with more than 30,000 personnel.” – Allison Guy-Ritchie, Director.

Allison Guy-Ritchie, Director, PCA People (L) and Kane Weeks, Yellow Pages (R)

Established in 1983 by Jim Ritchie as a resume writing service, PCA People is now a boutique recruitment company specialising in temporary and permanent recruitment in Canberra and the ACT region. Current owner Allison Guy-Ritchie, who joined the family business in 1999, said it is the longest serving recruitment agency in Canberra. It expanded from accounting into government and private sector recruitment for a diverse range of occupations including financial and project management, IT and legal services. Enjoying preferred supplier status with some ACT and Federal Government agencies, PCA People is in a market with more than 25 competitors. From its origins as Professional Careers Australia, the business now has 16 staff based in Civic. Allison said PCA People invests time and effort in the wellbeing of its staff and this was recognised in 2008 by winning an award from the ACT Government for the best workplace health and wellbeing program.

BUSINESS OWNER MICRO-BUSINESS AWARD WINNER

Learning Options “As a small business we compete against national training organisations and through strong industry networks and partnerships, provide quality outcomes for our students.” – Karen Nicholas, Director.

2010 ACT Business Owner Micro-Business Award winner Darren Stewart, Makin’ Trax (L), Karen Nicholas, Learning Options (C), Andrew Nicholas (R)

With Australia’s emphasis on skills development, Canberra-based Learning Options is a registered training organisation experiencing rapid growth. It offers more than 40 nationally accredited qualifications to local industry, employers and individuals in government, management, business administration, leadership and project management. Established by Karen Nicholas in 2002, Learning Options awards qualifications to up to 200 students a year. Many students have not been in classrooms for years, according to Karen who was honoured in 2010 by receiving an ACT training excellence award. Learning Options’ growth in the past two years has been underpinned by its participation in the joint Commonwealth-ACT Productivity Places Program – it was awarded a 14 per cent share in a recent funding round for the industry skills development program. Starting as a home-based business, Learning Options is now located in Manuka where it has concentrated on embedding online learning technologies into its training strategies. B2B IN CANBERR A

A U G U S T 2 0 11

SEPTEMBER 2011 2011 BUSINESS IN FOCUS MONTH – CREATIVITY AND COMPETITIVE ADVANTAGE The third Business In Focus Month will explore creativity as a key to unlocking the full potential of enterprise. With more than 50 events throughout September 2011, there’s sure to be something for just about every kind of business in Canberra. Creativity in business is about much more than Canberra’s visible face of art and culture. The creative sector represents about 10 per cent of all ACT businesses – or around 2,500 companies. This concentration and expertise spans different mediums, media, technology and applications. Creative based competitive advantage can also be found in many successful ACT businesses. Embedding creativity in business strategy is widely recognised as a pathway to business success. A creative and innovative culture can help business growth, enhance productivity, improve customer service and provide opportunities for staff to connect with their passions. Engaged staff are dedicated staff so it’s easy to see why creativity is such an important part of business success.

Business In Focus Month is an annual event that shines the spotlight on our business community while helping firms see innovative ways to improve their business. Business In Focus Month relies heavily on the contribution of private sector servicing organisations coming on board and conceptualising, implementing and hosting events and activities throughout the month. This contribution is the key to Business In Focus Month - presenting a comprehensive program filled with timely and relevant business topics. This year there are more than 30 organisations involved in delivering more than 50 events planned for September. They range from Registered Training Organisations and expert business consultants to peak industry bodies like the Canberra Business Council and the ACT Chamber of Commerce and Industry. With the theme of creativity, Business In Focus Month 2011 will challenge everyone to think outside the square. It is a great opportunity to look at issues and barriers to success in a new way, and to focus on building better businesses.

Find the latest information about events that will have you thinking outside the square this September by visiting www.business.act.gov.au and follow the Business In Focus Month September 2011 link or call 1800 244 650.

CHECK OUT THESE AND MORE EVENTS DURING THE MONTH: RecruitTECH 2011 8 September 2011

Pathways to Success 20 September 2011

RecruitTECH features Australia’s foremost innovators, thinkers and speakers in the recruitment and HR domain. The event is designed to challenge the way you think about attracting talent to your organisation.

The 3rd ‘Pathways to Success’ seminar will be hosted by Government and non-Government organisations to demonstrate how assessing government support can help local business decision makers on their pathway to success. The seminar will provide an opportunity to share real examples of how government support has helped local business people grow their businesses and gain tips on how best to approach available support.

Time: 9.00am to 5.30pm Cost: $529 standard ticket price, see website for other details Venue: The National Press Club, 16 National Circuit, Barton. Bookings are essential. More information: www.recruittech.com.au

Creative Business Connections 12 September 2011

Time: 5.00pm to 7.30pm Cost: Free Venue: National Portrait Gallery, Barton Bookings are essential More information: www.business.act.gov.au

Find out from Marcus Westbury, founder of Renew Newcastle and Renew Australia, how business and arts partnerships can help to regenerate urban and regional centres. Followed by a panel session and discussion.

For Love and Money – Family Business Australia Conference 30 September 2011

Time: 5.30pm to 7.00pm Cost: Free Venue: ACTEW AGL House, Level 5, 40 Bunda Street, Canberra City

For a family business it’s never a question of love or money, it’s always both as the two themes continuously intertwine throughout the life cycle of the family and the business. This conference has expanded and will appeal to the more mature family business operators looking at advanced structures and the relative new comers in the next generation.

Bookings are essential. More information: www.abaf.org.au

Time: 8.30am to 5.00pm Cost: Free Venue: Brindabella Park Canberra Airport Bookings are essential. More information: www.fambiz.org.au

“Providing corporate fitness packages requires effort and passion. I rely on RSM Bird Cameron’s advice to support and grow my business.” Daniel Ford, Battle Camp Coordinator and Physical Training Instructor

Battle Camp Fitness is serious about bringing health results and renewed vitality to professionals in Canberra. When it comes to their financial wellbeing and business growth, Battle Camp Fitness trusts RSM Bird Cameron’s expertise. RSM Bird Cameron Ph: (02) 6247 5988 103-105 Northbourne Avenue Canberra, ACT

Exceptional service, Exceptional results

www.rsmi.com.au

A D V I C E

F R O M

B U S I N E S S

E X P E R T S

C O N T E N T S

28 ACCOUNTING Four pricing mistakes to avoid By Andrew Sykes, RSM Bird Cameron Chartered Accountants

28 ACCOUNTING SERVICES Compensation tax benefits By Richard Navakas, Hillross Wealth Management Centre Canberra

29 BUSINESS LAW Death and directorship By Monisha Lazarus, Elringtons Lawyers

32 CORPORATE GOVERNANCE Getting board composition right By Phil Butler, Australian Institute of Company Directors

32 ESTATE PLANNING A financial agreement for your children By Stephen Bourke, Certus Law

34 INTELLECTUAL PROPERTY Trade mark oppositions: What are they and why are they used? By Shaun Creighton, ARUNA Trade Mark Attorneys.

29 BUSINESS COACHING The times are changing: the 4 p's are dead By Frans Walschots, 10X

34 REAL ESTATE Benefits of a boutique agency By Maria Selleck, Maria Selleck Properties

30 BUSINESS SERVICES Collaboration  the future of conflict resolution By Tony Lane, Kazar Slaven

30 COMMERCIAL LAW Failing to plan By Maurice Falcetta, Trinity Law

36 RISK INSURANCE Your life insurance broker  an expert in your corner By Jeff Proud, Capital Wealth

36 WEBSITES $50 billion online  are you up for it? By Sam Gupta, Synapse Worldwide

B2B IN CANBERR A

A U G U S T 2 0 11

ADVICE

Four pricing mistakes to avoid by Andrew Sykes

Compensation tax benefits ACCOUNTING

ACCOUNTING SERVICES

In our work we have found that the reviewing of pricing methods and strategies provide the quickest improvement to the profitability of a business. Many businesses are unknowingly giving away profit. Price can be adjusted immediately and the effect flows straight through to your bottom line. For one of our clients a simple pricing change generated an extra $80,000 in profits in just three months and there was no reaction from their customers. Mistake 1: Price Is Too Cost Orientated. This focuses on knowing your costs and then connecting these with your price. It is equally important to understand the value you are offering and the dynamics of your market. Customers will pay for perceived value. There should be strong links between this and your selling price. The stronger the perception of value you create in the minds of your customers the greater the potential to increase your price. What makes your firm a better business to deal with compared to your competitors? Mistake 2: Price Is Not Revised Often Enough To Reflect Market Changes. Changes in availability or price of competitor products, availability of substitutes, sudden changes in demand, are all good reasons to review your price. Many businesses absorbed the GST because they had a bigger problem with their price than their customer. When the price is too low you lose profit. You need to identify the key indicators that have influence on your price and regularly monitor these. Mistake 3: Failing To Take Into Account Other Marketing Mix Elements. There needs to be a relationship between the perceived value of your product or service and the price you charge for it. The product design, packaging and function should all send out a strong signal that matches the price. If your image suggests high quality, customers will pay more than if your image suggests low quality. Perfume is a classic example: the more elaborate the packaging, you can be sure, the higher will be the price. Mistake 4: Charging The Same Price In All Market Segments. This is linked to failing to understand the different market segments you serve. Some segments will place a much higher value on your product or service than others, their perception of value will be determined by their need for convenience, what the product or service actually provides for them, or how important this is. Where the perception of value is high you can charge higher prices. Take the Next Step: Review your pricing strategies. If you feel you are too close to your business then invite a firm such as ours to take an independent review of your pricing system. Our business solutions specialists will help you to examine your pricing, customer relationship management strategies, objectives, and key performance indicators.

When a person is permanently disabled the effects are devastating for the victim and their family. Apart from pain and suffering, the prospect of never being able to earn an income again creates fear and insecurity. There are deep concerns about the cost of care and meeting ongoing living expenses and the process of obtaining compensation is often long and difficult. Finally, when the compensation payment is received, there’s the anxiety of not knowing what to do with such a large lump sum. Investing in super is one of the most effective strategies for compensation money and one that can lead to a tax free income for those with a total and permanent disability. It enables you to enjoy the tax concessions that apply to superannuation investments. And, unlike under normal super legislation, where the funds are preserved until a certain age or stage, special rules for disability payouts allow unrestricted access to the super funds. The major benefits are: 1. Tax concessions that apply to super. 2. Funds fully accessible, regardless of age. 3. No limit to how much can be contributed. Generally, there is a cap on personal non concessional contributions to a super fund (contributions for which no tax deduction has been claimed). However, personal injury payments qualify for an exemption – there is no limit on contributions that relate to this money. It should be noted that the exemption does not apply to compensation received for loss or damage to property, nor to contributions of money other than personal injury compensation payments. To qualify for the exemption, the money must be awarded under: • a structured settlement • an order for a personal injury payment, or • a lump sum workers compensation payment • the contribution must be made within 90 days of receipt or of the settlement or order becoming effective • two medical certificates must be submitted, testifying that the member of the fund is unlikely ever to be gainfully employed in the occupation for which they are qualified • the superannuation provider must be officially notified that an exemption is being claimed. Once these requirements are met the funds can be invested in super and then transferred to a tax free pension where the earnings and capital gains tax are nil. This has the potential to transform a disabled person's life as the taxation benefits are enormous.

Andrew Sykes is a partner at RSM Bird Cameron For more information contact:

Hillross Wealth Management Centre Canberra – providing professional wealth management services to clients of our alliance partners.

RSM Bird Cameron 103-105 Northbourne Ave Canberra T:6247 5988 E:Canberra@rsmi.com.au www.rsmi.com.au

by Richard Navakas

A U G U S T 2 0 11 B 2 B I N C A N B E R R A

Richard Navakas is director and senior adviser of Hillross Wealth Management Centre Canberra. Level 7, AMP Building 1 Hobart Place, Canberra City, T: 02 6263 9200, info.wmcc@ hillross.com.au, www.hillross.com.au

ADVICE

Death and directorship by Monisha Lazarus

The times are changing: the four p’s are dead BUSINESS LAW

If you are a director or a shareholder of a company, you should be aware of what happens to your interests in the company when you pass away. Knowing the processes involved can help you plan what happens to your interests. The following points are some you should consider to ensure that your interests are best looked after according to your wishes. If a director of a company dies, where there is more than one director... If there is more than one director, then the surviving directors will be able to continue to manage the company. If a shareholder dies... Where a shareholder dies, shares held by the deceased will form part of his or her estate and will be dealt with in accordance with the deceased’s Will. This also applies if the shareholder is the sole shareholder. If a sole director/shareholder dies...Section 201F(2) of the Corporations Act 2001 states that if a sole director/shareholder dies, the executor or other person appointed to administer the estate can appoint a new director to replace the deceased director. Once appointed, the new director will be able to assume all powers, rights and duties of the deceased director. If the deceased held shares in the company and the deceased’s Will provided for the shares be transferred to beneficiaries, the beneficiaries may decide to appoint a new director to replace the director appointed by the estate. If you die without leaving a will...A relative of the deceased may administer the estate, however they would need to apply to the Supreme Court for this right. Otherwise, the Public Trustee may administer the estate. The process of administering an intestate estate is often complicated and lengthy. Until an administrator is appointed, there may be no one in place to manage the company or make company decisions that are necessary for the running of the company’s business. The flow on effects from this include potential loss of business, difficulty in dealing with financial institutions in relation to the company financials, and difficulty in winding up the company to name a few. Make sure you have a will! As a director or shareholder of a company it is imperative to have a valid will in place which clearly outlines how you want your interests in the company dealt with. Our Wills and Estates team will be able to assist you with drafting your will and ensuring that your wishes are properly reflected. Any changes to the directorship or shareholding in a company will need to be lodged with the Australian Securities and Investments Commission (ASIC).

Monisha Lazarus is a business services solicitor at Elringtons Contact Elringtons T: (02) 6206 1300, Level 7, 221 London Circuit, Canberra City visit: elringtons.com.au

BUSINESS COACHING

by Frans Walschots

A lot of business owners would know about the 4 P’s – Product, Promotion, Price and Place – but in these challenging economic times say goodbye to the conventional way of doing marketing. The four P’s are DEAD! In an ever so complex marketplace and uncertain economic climate how can this conventional way of pushing customers to the sale be justified? The truth? It CAN’T! So how do you make your product stand out and above the rest? EASY. You customize your product to suit each customer’s needs. How to Change to the New Era of Marketing – The 4 C’s: • Product Co-created solutions and experiences. Work with the customer to captivate and engage them. • Promotion  Communication with communities. Customers want interconnected. interactions with like-minded people not just information. Social communities are the new-age promotion channel. • Price  Customisable personal value. Give each individual customer something that they want and suits them. • Place  Choice and convenience. Make sure your product can reach your customers. Use the internet and be online 24/7. The customer is no longer the object of a sale, selling a service, or the subject of some department loyalty scheme. You as a business owner must capture what is important to the customer and understand the shift from the 4 P’s to the 4 C’s. Here’s a good example... Dell, the computer manufacturer, offers basic to customized computer packages at reasonable prices for personal, home or business use. With no actual Dell store you don’t need to worry about opening or closing hours. They are 24/7 as you can order from their website. Not only do they cater for your basic needs but you can customise your computer by adding more advanced hardware at the click of a mouse. If you want it they will give it to you. As business owners you must act as servers of customers not suppliers of products/services. Create customisable value and keep on giving. 10X tips for how you can incorporate the 4 C’s into your business: • Work with customers to create products that they want. • Go online and create a group on a social network site about your product or business. • Give the customer more choices of your product whether it be colour, shape or size. • Get you business operating 24/7 worldwide – make a website where customers can buy your products. • Build your products so customers can customise it to suit their budget. Frans Walschots is the business coach at 10X Canberra South. For more information, please call 02 6295 9800 visit unit 3/71 Leichhardt Street Kingston or www.10x.com.au/canberrasouth

FREE: take a look at our 10X Results Ezine via: www.10X.com.au/news

B2B IN CANBERR A

A U G U S T 2 0 11

ADVICE

Collaboration – the future of conflict resolution By Tony Lane

BUSINESS SERVICES

As insolvency practitioners, we are regularly exposed to circumstances where money, assets, business control and ownership are in dispute. These circumstances arise from myriad reasons, but most commonly from a disagreement that has resulted in a fundamental breakdown in communication. A lack of communication breeds distrust. From there it’s not far to travel before a seemingly irreconcilable conflict exists. We are often only exposed to the tail end of these matters – left to do the best we can with what is left after most of the value is gone. What if there was an easier and better way to resolve a financial conflict – a way which brokered an enduring solution that the parties devised, not a mediator, arbitrator, presiding officer or a judge? What if that solution had the support of all parties and was based on their interests, not their perceived or legal ‘entitlements’? Collaboration is now being pioneered in the commercial space. The principles are relatively simple. The parties to a disagreement, who may previously have ventilated their issues before a court, tribunal or other forum, now explicitly contract not to go to court and to make a genuine attempt at resolving their issues based on their respective interests in the subject of the dispute. How is this a mind shift? It requires not only the parties to be collaborative in their approach, but also their advisers – this includes lawyers and accountants. How is it different? It enables all issues, not just those that are admissible as evidence, to be heard and discussed in a way that is frank and open. It provides an opportunity to give a voice to issues that may in the past have been ancillary or tangential to the dispute. It enables a true discussion between the parties, not merely a series of interrogatories and arguments underpinned by closely guarded information that results in a set of orders from a judicial officer. Why is it better? The first point to note is that it isn’t always possible to collaborate on every matter. If it is possible, then the result is one that the parties to the matter own. They, with the assistance of their advisers, settle the outcome and are less likely to be discontented with the outcome – especially when it’s not one that someone else has decided for them. Kazar Slaven is proud to be partnering in the pioneering of this approach and welcomes enquiries. For more information, please contact us about attending one of our free seminars.

Tony is a Manager at Kazar Slaven and provides advice to clients in the areas of insolvency, business risk and financial conflict and dispute resolution. For more information, contact Kazar Slaven, Level 3, 11 National Circuit, Barton. T: 6215 8405 F: 6215 8450 E: admin@kazarslaven.com.au W: www.kazarslaven.com.au

A U G U S T 2 0 11 B 2 B I N C A N B E R R A

Failing to plan... By Maurice Falcetta

COMMERCIAL LAW

When starting a new business venture with others, people will often overlook how that venture might come to an end and some of the problems it may encounter along the way. In the excitement and busyness that is typical of this phase of an organisation’s lifecycle, putting time, energy and money into this planning exercise can seem a very low priority. As is often the case however, a ‘stitch in time saves nine’ and obtaining the right accounting and legal guidance when a new venture is being established can provide an invaluable platform for the organisaton and its owners that will enable them to smoothly and cost effectively work through a range of events that will almost certainly impact upon the business at some point. Aside from governance type issues (eg putting some protocols around the decision makers and decision making process) considering and agreeing strategies in advance for what will happen if one owner dies, loses capacity, sustains a disability or trauma, wants to leave the business, becomes bankrupt or is in dispute with the other owner etc is critical. As part of this process, determining how the business should be valued so as not to disadvantage either buyer or seller if any of the possible ‘triggers’ mentioned above occurs and whether insurance should be used to fund the acquisition of another owner’s equity, are fundamental discussions to have with your legal adviser who, in turn, should involve your accountant and insurance broker where required. The result should be a clearly drafted document that sets out the owners’ agreement on how they will each act in the future should the relevant circumstances arise and be legally binding upon them to ensure they do so. Typically, this will take the form of a ‘partnership agreement’, ‘shareholder / equityholder agreement’, or ‘buy/sell agreement’. Each business and group of owners will have slightly different ideas around this range of issues but failing to consider them before they occur can be costly and add considerably to the stress and tension the business and remaining owners will experience when going through the upheaval that the demise or departure of a co-owner brings. Whether you are contemplating starting up a new business or already successfully running an existing business, now is a good time to implement these strategies within your business plan. But a final word of caution – this is an exercise to do properly with the right advice, not one to rush or to look for a ‘one size fits all’ strategy for the sake of it, as this will almost inevitably lead to disaster.

Maurice Falcetta is a partner at Trinity Law. Trinity Law is a boutique firm which is focused on providing business and corporate legal services and is motivated by long term business relationships. 2/214 Northbourne Avenue, Braddon ACT T: 6163 5050 www.trinitylaw.com.au

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ADVICE

Getting board composition right by Phil Butler

CORPORATE GOVERNANCE

Composing an effective and balanced board is something that confronts many boards of different sizes, and across a range of sectors, when appointing a new director. It’s not an easy process but it is crucial to the success of any organisation. The membership of boards and the selection practices they employ is being increasingly scrutinised by the media, shareholders, customers, employees and other stakeholders. As a result, it is crucial that boards get the process right. Board diversity is a competitive advantage, bringing real value to companies by adding to the collective skills and experience of the organisation. Directors should be chosen from a broadly-based candidate pool, possessing appropriate individual skills, varied experience and sound judgement, but also reflecting diversity of gender, age, experience, relationships and background. Boards can follow some standard guidelines when appointing new directors. First, it is important to think about finding the right mix of skills. While the skills of each director may differ, the core business skills that might be represented on boards include strategic, financial, legal, risk management and people management. Relevant industry experience is also important. Consider the strategy of your business and what specific experience potential directors can bring to enhance that strategy. For example, does your organisation require directors with experience in mergers and acquisitions, exporting and importing or the particular market in which you operate? Gender diversity is also a key factor for boards to consider. The proportion of women on Australia’s boards needs to be improved and boards looking for new directors should have regard to the extensive research available (both within Australia and internationally) that highlights the benefits of greater gender diversity. The Australian Institute of Company Directors has published a new book on board composition, which provides practical guidance on the process for selecting the most appropriate directors. The publication puts the spotlight on the benefits of gender diversity, however, many of the suggestions and tools provided for increasing the representation of women on boards and in senior management positions can be easily adapted to assist with improving other forms of diversity. The book also explores the pros and cons of imposing mandatory quotas, which have been discussed in Australia and internationally as a way of securing positions for women directors on boards. Board composition is not just about gender. The key goal in selecting directors is to build a mix of individuals who can work effectively as a collegiate team. Phil Butler is state manager of the Australian Institute of Company Directors’ ACT Division. For more information about AICD ‘s course programs and events, T: 02 6248 5954.

A U G U S T 2 0 11 B 2 B I N C A N B E R R A

A financial agreement for your children by Stephen Bourke

ESTATE PLANNING

Last month we wrote about the benefits of including a Financial Agreement in your estate plan, particularly if you are a blended family. This month we are addressing the option of including a Financial Agreement for your children to protect inherited wealth in case the child’s marriage or relationship fails. Too often we hear young couples say “We don’t have anything so we don’t need an estate plan or need to do a Financial Agreement.” That may be the case but what happens if one of the parties to that relationship just happens to have parents who are moderately wealthy? What would happen if that party were to receive a substantial inheritance during the course of the relationship? What would happen if the relationship was to end after that? Would you want part of your hard earned wealth to go to a former spouse of your child rather than be kept for the benefit of your child and for your grandchildren? Under the Family Law Act 1975 the inheritance received by a party to a relationship can be split by the Family Court. While the inheritance is treated as being contributed by your child, if it was inherited some years before, it is treated as having merged with other property. It is not impossible for a pool of $1 million of which $500,000 is made up of an inheritance to be divided 60/40 in favour of the spouse that did not have the inheritance. How can you protect the inheritance from a future potential family law claim? It all comes down to careful design of the estate plan. When you are doing your estate plan you should talk to your children about it so they are aware of what it contains. You should encourage them to see a lawyer to prepare their own estate plan. While they may be young and healthy now and may not own much, fate does not always pave a straight and even road in front of us. Your children could be inheriting your wealth sooner than you (or they) may have been expecting. If your children are likely to receive a substantial inheritance they should consider entering into a Financial Agreement with their partner so that any inheritance received is quarantined from any future Family Law property settlement. Even if the relationship stands the tests of time it can still be useful as an evidentiary tool to show the intentions of the parties if a future family provisions claim is made. Some people may consider this a negative attitude – that their child’s relationships are doomed however it is better to think of it as a form of insurance. You don’t want your house to burn down but you still insure against it anyway, just in case. And the chances of a relationship failure are higher than the chances of a house fire. Stephen Bourke is a director of the boutique firm, Certus Law, which specialises in superannuation, trusts and estate planning. Visit Certus Law at Level 5, 28 University Avenue, T: 6268 9090, www.certuslaw.com.au

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ADVICE

Trade mark oppositions – what are they and when are they used? by Shaun Creighton

INTELLECTUAL PROPERTY

Did you know that if a trade mark application is accepted by IP Australia, it is advertised in an Official Trade Marks Journal? At any time within three months from the date of the advertisement, a third party can file a notice of opposition to registration with a view to starting opposition proceedings. Unlike legal proceedings for registered trade mark infringement, opposition proceedings are conducted before IP Australia and the parties are alternately allowed to file evidence in up to three ‘rounds’ (evidence by opponent supporting the opposition, an answer from the trade mark applicant, followed by a reply from the opponent). After the evidence phase, a Hearing Officer at IP Australia will make a decision either following a hearing (if requested) or on the materials presented through the evidence phase. Working out the proper ground(s) of opposition which applies can be daunting. Currently, opponents may specify all grounds in the notice of opposition, leaving an applicant potentially ‘in the dark’ until the grounds are narrowed in evidence and/or at hearing. This is why, along with complexities in drafting materials for evidence rounds, it is important to have professional advice in opposition proceedings. The most common opposition grounds under the Trade Marks Act 1995 (Cth) are that: • Section 41 the mark is not capable of distinguishing the applicant’s goods or services • Section 44 (1) and (2) the mark is substantially identical or deceptively similar to a prior trade mark application or registration in respect of similar goods, similar services or closely related goods or services • Section 58 the applicant is not the owner of the mark • Section 59 the applicant is not intending to use the mark • Section 60 another mark had acquired a reputation in Australia such that use of the applicant’s mark would be likely to deceive or cause confusion. • Section 62A the application was made in bad faith Most common examination rejection grounds are also opposition grounds. Given this, trade mark owners still have to watch out for accepted but potentially conflicting marks to oppose as necessary and some choose to use third party ‘watching services’. Failure to oppose an accepted trade mark application during the three month opposition phase will result in an application proceeding to registration (on payment of registration fees). ARUNA Trade Mark Attorneys provide a full suite of trade mark services and are available to assist with any trade mark opposition proceedings (whether for an applicant or opponent). We can also provide ongoing watching services. Shaun Creighton is a director of ARUNA Trade Mark Attorneys. Level 3, 54 Marcus Clarke St, Canberra T: 1800 705 680 or 02 6221 9555 www.aruna.com.au

A U G U S T 2 0 11 B 2 B I N C A N B E R R A

Benefits of a boutique agency by Maria Selleck

REAL ESTATE

Boutique is defined as any small, exclusive business offering customized service. Your home is most likely to be your most valuable asset, which is why when it comes to buying or selling, it is no surprise that most people seek to enlist the help of a professional Real Estate Salesperson. When choosing a Real Estate Agency, it is important to do your homework first so that you choose not only a company but a salesperson that you trust to work hard (and smart) to get you the best result possible. Check their track record and compare, look at their testimonials and sales records and ask around. What do they bring to the sales process? To us at Maria Selleck Properties, each property we market or manage is unique; each has its own challenges and appeal and the particular requirements of every seller are treated with courtesy and discretion. Boutique vs. Mainstream There are arguments both ways for which type of Real Estate Agency is better. Boutique agencies will rightly argue that they are able to be more flexible and therefore can be more accommodating to your needs as a vendor and while boutique does mean small, it also means personalised service, focused, driven and great results. They may argue that a mainstream company is too rigid and inflexible and not able to offer you the same high level of personal service as can a reputable boutique agency. If you talk to a mainstream company they are likely to argue that because of their size it will be more beneficial to you as a vendor. The focus of some large mainstream agencies can be more on volume and turnover than on quality service and top results so, probably just as important as the company is the Salesperson. Finding a salesperson that is the right fit for you and is not constrained by company policies, is the most important factor. Working with a small boutique agency like Maria Selleck Properties has its benefits. We are not a large national real estate chain or franchise and don’t pretend to be one. We pride ourselves on the personal service and pay close attention to details. The Maria Selleck Properties team want our clients to have a positive experience and the assurance that we will be there for you from start to finish. Our multi-award winning Agency is focused on providing a unique and fresh approach to marketing and selling property. As a boutique agency we can ensure that your property doesn’t get lost amongst the crowd and we understand that no two properties are alike and that a “cookie cutter” approach just doesn’t work!

Maria Selleck is the owner/director of Maria Selleck Properties. For more information, contact T: 6162 1234, 30 Bougainville St, Manuka, info@mariaselleck.com.au, www.mariaselleck.com.au

OUR SERVICES INCLUDE BUT ARE NOT LIMITED TO • General Bookkeeping weekly, monthly or quarterly • BAS and GST Services • Payroll and PAYG • MYOB, Xero and Quicken set-up, tailoring and training • Preparation of financial reports and statements • Budgeting and cashflow forecasting • Reliable and on-going support

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companydirectors.com.au/foundationsofdirectorship

Foundations of Directorship

Finance for Directors Creating awareness of directorship

Finance for Directors explains and assesses company financials through the eyes of the director. As a director, senior executive or manager, you will gain the necessary skills required to interpret and assess the three main types of financial statements – Balance Sheet, Income Statement (profit and loss) and Cash Flow Statement – to identify what information is required to assess an organisations financial health.

For more information or to enrol contact Kylie Folkard t: 1300 764 633 or visit companydirectors.com.au/foundationsofdirectorship

01596_11

Course details Date: Thursday 15 September 2011 Time: 8.45am - 4.45pm Venue: Federal Golf Club, Red Hill

ADVICE

Your life insurance broker—an expert in your corner by Jeff Proud

RISK INSURANCE

As we discussed in the past few articles, there are many things to consider when buying life or disability insurance. Many people believe that it’s simply a matter of deciding how much insurance you’d like and then finding the cheapest premium. If you want proper protection and best value, then nothing could be further from the truth. An insurance policy is a contract to pay an agreed amount at some future time should certain events occur. Like any contract the wording is all important. We’ve previously highlighted how a client was paid by one insurer and declined by another for the same condition. The difference was in the policy wording. As experience, qualified life insurance brokers, Capital Wealth is the obvious choice to ensure that you’re getting maximum bang for your insurance buck with policies that we pay you when you need them. Our role is to ensure that all your important questions are answered. Questions like – • How much insurance do you need? • What type of insurance is most appropriate? • Which policy has the best wording and value for your situation? • How should the ownership of your insurance be arranged? • What is the best structure for your insurance? • Is your existing insurance still in keeping with your circumstances We will help you consider what’s important to you and to consider how best to guarantee your desired outcomes in the event that tragedy strikes. Our market research and product knowledge is applied for your benefit to identify the best insurance solution for you, ensuring the most appropriate policy wordings and best value for money. Depending on your circumstances your insurance application may go smoothly or could require further health or financial information. It may even need discussion with an assessor to properly explain your application. Our role is to provide whatever assistance we can during this process to ensure that your insurance is put in place as soon as possible on the best available terms. We are there to work with you and for you and to regularly review your arrangements to make sure that they always properly reflect the changes that will occur during the course of your life. Our advice and service can be invaluable. Yet as brokers, even though we are working for you, we are paid a fee by the insurer when your insurance is accepted. So this means that when you buy your insurance you get everything that we have to offer at no additional cost. You have to wonder why you wouldn’t use a broker! Jeff Proud is a director at Capital Wealth. T: 02 6239 1566, 14 Dundas Court Phillip 2606, www.capwealth.com.au

A U G U S T 2 0 11 B 2 B I N C A N B E R R A

$50 billion online – are you up for it? by Sam Gupta

WEBSITES

There’s a lot of money to be made in the world of e-commerce. But don’t forget that you can also save your business a lot of money by using simple web technologies. Australia traded about $50 billion online in 2010 and is expected to grow to $70 billion by 2015 according to a recent report. Things are moving fast in the online and mobile world. Small businesses need to continuously think of ways to keep ahead of their local and online competitors. If your core business model today doesn’t incorporate web technology, you may have already been left behind. Do you have a sustainable business model? We all get busy with day-to-day tasks and priorities, but every so often, you have to look ahead and understand where your business is heading. Gone are the days when having a website was a part of advertising. If you want to grow in today’s market, having an online strategy must be part of your business strategy. If you haven’t already, take the next step and consider automating aspects of your business. Talk to your IT developers about how to sell online, take payments online, and even manage your quotes online. Have you thought about using IT for staff management or perhaps centralising your customer support centre? As you can see, there are plenty of ways you can make and save money online, reduce overheads, automate invoices and reminders, improve customer engagement and ultimately improve your business. This reminds me of a saying which I like: ‘You don’t have to climb the whole mountain in a day. Start one step at a time’. Remember the 80/20 rule? You’ll be surprised at how small automations on your website can save you so much time and energy. Talk to your web-developers today. Brainstorm ideas with them and work out what can or can’t be done. The bottom-line is don’t do anything for the sake of it or because it sounds fancy. Come up with a focused online strategy and measurable objectives and you’re on your way to delivering improved business success. The online world is growing fast and it’s not just about social media, SEO or mobile devices. If you need any assistance, give me a call on 1300 785 230 or send an email to admin@synapseworldwide.com or take advantage of a free hour-long consultation.

Sam Gupta is the managing director of Synapse Worldwide. Please contact him on 1300 785 230 or admin@synapseworldwide. com to discuss how to take advantage of web technologies

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A S S O C I AT I O N S T O B U S I N E S S

A number of local businesses are finding that employing staff who have worked with the Defence Reserves increases the chances of them being a good attitudinal fit

No substitute for reserve training CHRIS FA U L K S

CHIEF EXECUTIVE OFFICER

AFFILIATED WITH

Upcoming Events

31 August 2011 ACT Chief Ministers Address Topic: Vision for the ACT TIME 12.30pm -2.00pm VENUE Hyatt Hotel COST $85 Members, $105 Non-Members FOR REGISTRATION GO TO: www.canberrabusinesscouncil.com.au

The ACT is lucky enough to have one of Australia’s lowest unemployment rates but the flip side of that good fortune is a significant skills shortage. In 2010, employers in the ACT attracted the smallest average number of suitable applicants per skilled vacancy and filled just 54 per cent of skilled vacancies in four to six weeks compared to the national average of 61 per cent. A survey conducted by Canberra Business Council in early 2011 found around a third of local businesses are either very or extremely affected by the skills shortage in the ACT. Not surprisingly, employers are looking for ways to identify applicants’ potential to perform in a role beyond them simply having the right qualifications or to up-skill their existing workforce. An article in the Weekend Australian on 9 July 2011 said that with the talent squeeze impacting on Australia, employers have to start considering hiring candidates based on their attitude and passion rather than waiting until they find someone who ticks all the expected qualification and experience boxes. It suggested that if a business can find the right person, then their skills can be upgraded on the job. A number of local businesses are finding that employing staff who have worked with the Defence Reserves increases the chances of them being a good attitudinal fit and staff that join the Reserves get valuable training and development. In July, I was fortunate enough to spend some time with the Defence Reserves getting a better understanding of the work they do and how it helps people locally and overseas. What most impressed me was the confidence, enthusiasm and maturity exhibited by each of the Reserves I met. The Defence Reserves pride themselves on the fact that their members develop the skills that are hardest for a business to provide training for – these are in area such as leadership, self-confidence and initiative. Time spent as a Reservist is likely to also improve people’s skills in problem solving, project and time management and communication.

Studies have shown that this training is very valuable to the Reservists’ civilian employer and would cost businesses thousands of dollars a year if they had to provide it themselves. A large number of organisations in Canberra employ Reservists with some, such as ActewAGL and the War Memorial, becoming Supportive Employers of Australia’s Defence Reservists. ActewAGL says the continuous training and development provided to members of the Defence Reserves is a bonus for any employer. Supporting staff in joining groups such as Defence Reserves not only provides businesses with staff development but also gives back to the community. Defence Reservists help maintain the Australian Defence Force’s capability and are currently deployed on operations in Afghanistan, the Solomon Islands and Timor-Leste. Aspen Medical Managing Director, Mr Glenn Keys believes that if individuals are willing to give their time to such an important service, then they should be supported. Aspen Medical has a leave policy that provides staff with an annual leave allowance for Defence activities. The Defence Reserves is part time and members may work as few as 14 days a year. Most people attend one night a week, one weekend a month and a two-week training camp once a year. The Reserves recognise that sometimes the requirements to attend may conflict with people’s need to be at work and provides flexible arrangements that allow members to organise time-off in this situation. There are also payments available for eligible employers to help offset the costs of releasing employees. Companies who have staff interested in joining or who are already in the Reserves can obtain more information about the program and employers rights and responsibilities at www.defence.gov.au/reserves. T 6247 4199 E info@canberrabusinesscouncil.com.au www.canberrabusinesscouncil.com.au

Principal Members ACTEW Corporation, ActewAGL, Bank West, Blue Star Printing Group, Canberra International Airport, Cre8ive, Elite Sound & Lighting, Ernst & Young Services Trust, eWAY, Hindmarsh, HolisTech Pty Ltd, ISIS, KPMG (Canberra), Master Builders Association (ACT), Medibank Health Solutions, National Australia Bank Ltd (Turner), National Museum of Australia, NEC Australia Pty Ltd, Staging Connections (ACT), The Village Building Co, Thyssen Krupp Marine Systems Australia, TransACT Communication

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The Distillery, whose mantra is ‘making our world a safer place’, adopted a two-tier ‘born global’ strategy that incorporated both interstate and international sales.

Tips from export leaders

BRENT J U R AT O W I T C H

PRESIDENT

For more information on the ACT Exporters’ Network visit actexportersnetwork.com, or contact the Network’s manager, Pam Faulks, on 0400 090 452, pam.faulks@ canberrabusinesscouncil.com.au. The ACT Exporters’ Network is proudly sponsored by the ACT Government, Canberra Business Council, the Centre for Customs & Excise Studies and AusIndustry. 40

ither you’ll learn about exporting or you’ll be looking for a new job.” This was what Grahame Hocking, Bega Cheese’s Senior Manager Sales and Marketing, was told when Bega Cheese decided to look for international markets for its products. Clearly Grahame did not look for a new job and now knows a lot about exporting. Bega Cheese, which was the winner of the Regional Exporter Award in the 2008 Australian Export Awards, now exports to over 50 countries, has five manufacturing sites around Australia, had a turnover of $1 billion in 2010/2011 and is about to float on the Australian Stock Exchange. Along the way to this success Bega Cheese has had the advantage of economies of scale and a stable management structure. Bega Cheese also believes if they don’t take up opportunities as they arise, somebody else will. Grahame Hocking shared this story at the 2011 Export Leaders’ Lunch, which was held at Hyatt Hotel Canberra on Friday 8 July as part of the 2011 ACT Chief Minister’s Export Awards Program. Mr Hocking was joined by other export leaders, Phil Hall, Murray Rankin and Bryn Sharp — all who told their stories and shared their tips with ACT exporters and export supporters. Phil Hall, who heads up the Business Development department at Appen Butler Hill, also shared some secrets to export success that helped their company become the inaugural winner of the prestigious Prime Minister’s Exporter of the Year Award in 2008. The key to their story is that Appen was able to take advantage of Australia’s educated and culturally diverse community to become a global leader in the provision of speech and language

A U G U S T 2 0 11 B 2 B I N C A N B E R R A

technology solutions. Appen caters to an unusual niche market, with current projects including speech recognition in cars for General Motors, and working with Microsoft Office to provide spelling and grammar check facilities in a range of languages. Mr Hall’s tips for exporters included maintaining a cando attitude, ensuring profitability and sustainability, and recognising not only the value of personal relations, but that it can be a long journey to develop those relationships. Murray Rankin, will be well known to many Canberra exporters having founded the Canberra based security technology firm The Distillery. The Distillery, whose mantra is ‘making our world a safer place’, adopted a two-tier ‘born global’ strategy that incorporated both interstate and international sales. Building on its successful work with Australian clients, including ASIO, The Distillery’s international strategy focused on Englishspeaking markets with similar government structures and similar security issues as those in Australia. At its peak The Distillery grew to a staff of 120, with offices in New Zealand, Singapore, South Africa and the United States, with Mr Rankin attributing this success to both the two-tier born global strategy and the value of developing and nurturing relationships. Bryn Sharp is Servcorp’s General Manager, Virtual Offices. Servcorp is an international supplier of office and IT solutions in the form of premium serviced and virtual offices and won the Large Services Award in the 2009 Australian Export Awards. Mr Sharp reminded lunch guests that businesses are there to make a profit, and to do that must follow clear strategies. Some of the secrets to Servcorp’s success include following a strict business plan; maintaining good cash flow; and being consistent and persistent. They now have over 140 serviced offices worldwide each located in premium business or CBD location. Each of the four export leaders highlighted the value of programs such as the Export Awards, as they give Award winners credibility, which is particularly valuable when trying to enter new and developing markets. The 2011 ACT Chief Minister’s Export Awards Presentation Lunch will be held on Thursday 29 September 2011, with tickets available at www.canberrabusiness.com.au or by contacting Pam Faulks at pam.faulks@canberrabusinesscouncil.com.au.

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The Chamber is interested in supporting not only organisations that mentor school-aged young people, but also those who provide individual support to apprentices, trainees and recent additions to the workforce.

Collaboration: the answer to skill shortages T R E VA R CHILVER

DIRECTOR OF EMPLOYMENT, EDUCATION AND TRAINING

Corporate Sponsors ACTEWAGL, 104.7 / Mix 106.3, Prime TV, The Canberra Times, The Good Guys Tuggeranong, Duesburys Nexia, Synapse Worldwide, B2B in Canberra. Associates and Affiliates Retail Traders Association, Australian Industry Defence Network Foundation Member Australian Chamber of Commerce & Industry 42

ith skill shortages making life difficult for businesses of all shapes and sizes, it is important that our community collaborates on initiatives to increase our participation rate. Whether it’s ensuring that young people have all the support they need to make successful transitions through education and into the workforce, or helping businesses to retain mature workers, this is something that the Chamber’s Employment, Education and Training team attempts to facilitate with a range of stakeholders on a daily basis. As an example, the Hospitality Roadshow, held at Erindale College in May, brought the hospitality industry to the attention of 800 students and teachers. Exhibitors were able to not only promote the opportunities they offer young people, but demonstrate their expertise and engage with key stakeholders in improving the skills outlook for the hospitality industry. And all this is happening in the crucial lead-up to Canberra’s centenary in 2013. Our Education and Training Adviser, Jo Powell, was able to support the Tourism Industry Council to bring these exhibitors together and the Roadshow will be visiting other schools as the year progresses. Jo’s role allows her to engage with stakeholders and respond creatively to the issues and concerns they see emerging. She can provide businesses with advice on accessing and using the training system, feed information about their concerns back to government, and promote the good work that is happening to enhance businesses’ access to quality, skilled staff. To help reduce the barriers to full participation of young people in education, training or employment, the Chamber’s Ready program, an initiative supported by the Commonwealth Department of Education, Employment and Workplace Relations to improve youth attainment and transitions, has begun working to further develop the capacity of mentoring programs available to young people. Recently, we were able to coalesce interest from these organisations into MentorsACT, a network supported by the Australian Youth Mentoring Network to improve collaboration and collegiality

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between mentoring organisations. One of the main objectives of this network is to increase the number of young people who benefit from having a mentor who can provide holistic, individual support for those life transitions where many of our young people are lost. Our former partnership broker, Bo Percival, was instrumental in bringing these partners together, and since he returned to Canada, his work is being continued by Nola Shoring. She has helped the group establish themselves, and will continue to support them as more and more organisations get involved. We are interested in supporting not only organisations that mentor school-aged young people, but also those who provide individual support to apprentices, trainees and recent additions to the workforce. The Chamber’s Employment, Education and Training team has undergone some staff changes recently, which may make a difference to the way businesses interact with us. Joining the team are Louise deBusch, our new Partnership Broker, and Sarah Kentwell, who has been promoted to the role of Marketing, Events and Communications Officer. Louise comes to us from Mt Isa in north-west Queensland, where she worked for the Chamber of Commerce and Industry, Queensland also as a Partnership Broker. Her experience in bringing communities together to improve participation will be invaluable as we continue to seek creative ways of engaging young people. With such diverse activities, Sarah’s role will be to stay at the centre of everything and keep us both communicating with each other, and with the wider community about what we’re doing. We’re hoping that organisations across Canberra will come forward with great ideas and initiatives that we can provide a helping hand with. For more information on the ACT and Region Chamber of Commerce and Industry Education Training Adviser program and how to be involved in any of these initiatives, please contact Jo Powell, Education and Training Adviser on (02) 6283 5200 or jo.powell@actchamber.com.au.

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