www.blackbiz.com.au
ISSUE 02 - JANUARY/FEBRUARY 2012
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THE INDIGENOUS STOCK EXCHANGE
Supporting a different kind of dreaming 10 KEY STEPS BizProfile
Business Planning Basics
IN THIS ISSUE
Profiling: TYRE SHIELD速 An interview with Jonathon Slottje
Profiling: CATCH N COOK From little things big things grow
Mobile phone technology driving business success Your Marketing Message Putting Your Strategic Business Planning Into Action ... and much, much more.
Australia’s premier Indigenous business awards & tradeshow Celebrating the entrepreneurship & success of Indigenous business
Conference, Business Opportunity Fair/Tradeshow & Gala Dinner
2nd - 3rd April 2012, Sydney Australia Growing a prosperous & vibrant Indigenous enterprise sector Conference MC: Natalie Ahmat, Gala Dinner - MC: Rhoda Roberts Day one offers a dynamic and interactive conference program. There will be workshop sessions, designed for corporate and government agencies and Indigenous business suppliers along with opportunities to discuss aspects of supplier diversity and developing business relationships. Day two features an exhibition style tradeshow. The fair showcases of a range business products and services from up to 100 Certified Indigenous business suppliers.
The conference will culminate with a gala dinner. This is designed to celebrate the achievements of AIMSC’s partnerships, and to highlight the stories of successful business outcomes between buyers and Certified Indigenous business suppliers. Connect 2012 Awards will showcase those companies and individuals who have contributed significantly and played an active role in the Indigenous business arena.
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EDITORS DESK - Welcome to BlackBiz PUBLISHER DETAILS: Publisher BlackBiz P/L ABN 49 146 020 662 PO BOX 23 Revesby North, NSW 2212 Ph: 1300 739 769 Fax: 02 9475 0921 www.blackbiz.com.au
FROM THE EDITOR’S DESK
Editor Paul Newman editor@blackbiz.com.au
Senior Editor Phil Voysey p.voysey@blackbiz.com.au
Creative & Technical Director Matt Brady admin@blackbiz.com.au
Contributors Tamar Ferhad Ashur Lazar Phil Voysey Paul Newman
Design & Production CrewMark Pty Ltd
Advertising & General Enquiries Email: advertising@blackbiz.com.au Phone:1300 739 769
Disclaimer The authors, editors, publisher and their staff and agents are not responsible for the accuracy or correctness of statements made or information contained in this publication or for the consequences of any use made of the products, services and information referred to in this publication. All liability of whatsoever nature is expressly disclaimed for any consequences arising from any errors or omissions contained in this publication whether caused to a reader of this publication or otherwise. The views expressed in the articles and other material published herein do not necessarily reflect the views of the editor and publisher or their staff or agents. It is impossible for the publisher and editor to ensure that the advertisements and other material herein comply with the Trade Practices Act 1974. Readers should make their own inquiries in making decisions and, where necessary, seek professional advice. Many images used in BlackBiz are supplied by contributing companies and are accepted in the belief that they are the property of these companies and that they have the right to use them. The publisher does not accept responsibility for any image improperly supplied or acknowledged. All rights reserved. Reproduction in whole or part, without written permission, is strictly prohibited.
Dear Reader yable holiday festive business, and I hope you had an enjo Welcome to a new year for doing . 2012 in ess busin into the swing of season and are now ready to get back BlackBiz for 2012 is packed business year, our first edition of To help you get started for the new year ahead, including some ess busin the for again get focused with a variety of articles to help you made. The start of the have ’s business resolution you may tips on taking forward any New Year , and to set in place ance orm perf ess busin s year ction on last new year is a perfect time for refle new. Our articles the for thly get your business running smoo some business action planning to king of starting thin are who s neur epre entr us ing Indigeno will also be very useful for those budd up a business. in action through the is on Indigenous entrepreneurship This edition’s cover feature article emporary Indigenous cont a ing build Stock Exchange) in active work of the ISX (Indigenous tional Indigenous trading draws on principles of age old tradi trading floor, which in many ways ”, sharing the story of how grow gs thin big on “From little things practices. We also feature a story and implementation of re, heavily influences development one Indigenous businessman’s cultu creative programs for his business. award winning Indigenous the business passion and drive of In our Bizprofile story, we showcase Shield product has Tyre ue uniq his how Slottje, and inventor and businessman, Jonathon recognition. achieved world wide acclaim and great business tips and and Marketing Mix articles with some We also have our regular BizTech prosper. To help you and grow lop, deve community enterprise strategies to help your business or ion where your petit kBiz com right, we also have a our first Blac get your business marketing mix shop valued work eting mark kBiz Blac ing to win a one day So get those business can enter to be in the runn d. ahea year business marketing strategy for the at $1,600 to help you develop your entries in now to be in the winning. BlackBiz eMagazine well wishers and supporters of our BlackBiz would like to thank all our successful Indigenous e thos all t abou hear to would like publication, and remember, BlackBiz continue to showcase can we so not-for-profit enterprise stories, corporate and community based ely fostering activ are that , ralia Aust nd and talent arou the rich Indigenous business flair Even if you are a ities. mun s for Indigenous people and com improved socio-economic outcome kBiz can also help Blac e, rpris ente ofit or-pr not-f d munity base in BlackBiz. start-up Indigenous business or com story le profi ure ure with a start-up business vent you launch your new business vent ess story that you would orate or community enterprise busin So if you have an Indigenous corp world, please send an the nd arou ers across Australia, and like to share with our BlackBiz read iz.com.au. email of interest to editor@blackb edition for 2012. Enjoy reading of our first BlackBiz
Paul Newman BlackBiz Editor & Founder January 2012
BlackBiz Indigenous Business Magazine - issue #02 January/February 2012
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BlackBiz Indigenous Business Magazine - issue #02 January/February 2012
CONTENTS - ISSUE#02
COVER FEATURE
page
The ISX is here to help Indigenous Australians to achieve their dreams by any means available - sharing knowledge, raising finance, marketing, or one-on-one support................................................................ 10 - 15
ARTICLES
page
Business Planning Basics - 10 Key Steps - Paul Newman.................................................................. 16 - 19 Putting Your Strategic Business Planning Into Action - Phil Voysey............................................................ 26
REGULARS
page
BIZTECH The rise of m-commerce - Ashur Lazar........................................................................................ 6 MARKETING MIX Your Marketing Message... - Tamar Ferhad............................................................... 8 - 9
BIZPROFILE Tyre Shield® - An interview with inventor and businessman Jonathon Slottje......................................... 20 -23 BIZPROFILE Catch ‘n Cook - From little things big things grow................................................................................. 24 -25
BlackBiz Indigenous Business Magazine - issue #02 January/February 2012
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BIZTECH - Ashur Lazar
The rise of m-commerce: mobile phone technology driving business success “In the 3rd quarter of 2011 alone 115 million
smartphones were sold...” What does this mean for businesses? It’s obvious if you think about it. Most businesses will first be seen by potential customers on some sort of mobile device, most likely a smartphone. That is a fact that most businesses haven’t even thought of yet. Most Australian businesses, including a large percentage of Indigenous owned businesses, don’t have a website that is designed for smartphone usage in mind. Most Australian businesses don’t have a mobile strategy on how to deal with potential mobile customers. Most do not even know how many smartphone users are visiting their websites.
E
ven with the remarkable growth of the internet and personal computer use in the last 20 years it is nothing compared to the tremendous rise of “m-commerce” or mobile phone technology usage, especially smartphones in driving business activity and success. With the launch of the iPhone in 2007 there has been explosive growth in the smartphone category. In the 3rd quarter of 2011 alone 115 million smartphones were sold accounting for 26% of all worldwide mobile devices. In the US it’s even more staggering with some 43% of adults now owning a smartphone by the end of 2011. Think about that for a second, from 0% of the market in 2007 to 43% by the end of 2011 and it’s set to continue in the coming years.
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What this means is that there is a huge potential customer base that is not being served by businesses within Australia, including Indigenous business. So there is huge potential for those Indigenous businesses that act first in becoming leaders within their industries when it comes to mobile users. You could be servicing customers that your competitors cannot because they either don’t have a website that caters for mobile usage, or don’t have strategies in place that could benefit their businesses when it comes to smartphone users. Getting started is easy, firstly either get a web developer to convert your existing website into a mobile website or if you don’t have a website find a developer to create a new one for you. Once you have a presence you’re already better off then 95% of all other businesses within Australia. After that the sky’s the limit.
BlackBiz Indigenous Business Magazine - issue #02 January/February 2012
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What’s Your 2012 New Year Business Resolution?
W
ith last year now behind us, many business owners, small and large, would have taken time out over the festive season to reflect on the business challenges, successes and milestones of the past year. Upon reflection of this, many business owners will often find themselves making a new year business resolution in order to meet the challenges of last year, and to further build upon their successes. Making a new year’s business resolution can an inspiring and healthy thing for businesses to do. The start of the new year presents a great opportunity for businesses of all sizes and types to take time out to make any new year business resolution a reality. This is a great time for businesses, as it allows time for business owners, Boards, management and employees alike, to regroup after the festive season has ended, recharge their batteries and start the year with a clear and fresh mind for doing productive and successful business in the new year.
Or is it to improve your IT capabilities to help improve your day to day business operations? Whatever your new year’s business resolution may be, it’s important to keep it simple and achievable, and have a well thought out plan of action that you and your work team can readily implement to ensure fruitful business success. Here’s wishing you the best of business success in 2012.
So What’s your 2012 new year business resolution? Is it to improve your marketing strategy to make you more visible in market place?. BlackBiz Indigenous Business Magazine - issue #02 January 2012
BizTip
o Be sure t yo ur icate co m mun business s new year to the res t n reso lutio e team t of h as well
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MARKETING MIX - Tamar Ferhad
Your Marketing Message... Can you improve your marketplace and provide a new soul for your business?
I
n the previous edition of BlackBiz, we discussed market research and how it’s crucial to understanding your market. I’ve worked in marketing and sales for over 13 years and I really get a kick when my client says “that’s exactly what I want”, and it all came from just listening to them. So please, listen. Now, once your market research is conducted, you’ve listened to your audience, so what will you do with this information? Look at your data. Is there anything that stands out from what your competitors are doing? Are there any gripes that your market has about your industry? Is there someway you can improve upon the service in your industry? No business is perfect, and if you can find a gap in service or delivery or price, this is where you start. We’re looking for a point of difference to help you stand out, or better still, change your industry and become a leader.
A more recent example is the Smart Phone. In 2003, the BlackBerry as we know it, was released, I remember attending sales pitches and this product was and still is of high quality. I was blown away by this new technology. However, it was only targeted to businesses, so a bit out of the price range as a personal toy. In 2007 iPhone was launched and this product, similar in functionality to the BlackBerry was marketed to consumers. Both are very high quality products, the difference is their target market. So while BlackBerry’s changed how people do business and providing more efficiency, the iPhone revolutionised the humble mobile phone.
Examples – changing the industry or changing the target market “When it absolutely, positively, has to be there, overnight”. This slogan was first introduced by FedEx in 1978, (later borrowed by Australian courier company Comet in 1983), and it changed the courier industry completely by introducing overnight delivery. Not only did they stand out from their competitors by doing something different, but created a new benchmark in the industry. As leaders, the rest of the courier industry had to follow them. 8
BlackBiz Indigenous Business Magazine - issue #02 January 2012
MARKETING MIX - Tamar Ferhad
With those two examples, I would like you to think about your business.
Your message needs to become the soul of your business
If your servicing businesses, how does your product or service improve the profit of your clients? Can you help them cut costs? Can you free up staff from mundane tasks to allow them to be more productive?
Once you have decided on your marketing message, this is going to impact your entire business. Your marketing message needs to be used every opportunity there is contact with your business. Your staff have to know it, you all have to believe in it and you better live up to it.
If you’re in retail, is your product better quality? Are you more exclusive? Are your products Australian made? Does a percentage of your profit go to charity? Are your prices more competitive?
The key to your marketing message – it’s all about them While you’re brainstorming with your colleagues or friends for your marketing message, you need to remember it’s never about what you do. It’s always about what’s in it for them. Why should people select you as their preferred supplier of shoes, or accounting or graphic design services? Once you have this answer, you have the secret weapon for your marketing. Always remember, your marketing message needs to be: 1. Different from competitors, 2. focused on your target market; and 3. ideally, creating a new standard.
ON I T I T E C O M Porkshop to develop your yw WIN a 1 da arketing strategy m
ith a 140 message w g n ti e rk a m tion to gh your ny/organisa a p m o Email throu c r u o fy will win a escription o he best one T character d . u .a m o 1600.00 to @blackbiz.c valued at $ competition , p o h s rk o r T&C) rketing w (Click here fo y. g te a one-day ma tr s g etin p your mark help develo
Always r emember , yo ur mar keting message nee d s to be: 1. Differe nt f ro m co mpetit ors 2. Focuse d on yo u r target m arket an d 3. Ideally , creating a new s tandard . BlackBiz Indigenous Business Magazine - issue #02 January 2012
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The Indigenous Stock Exchange
The Indigenous Stock Exchange (ISX) supports a different kind of dreaming
Why the need? Too many Australian Aboriginal people currently live in poverty and grow up with disadvantages that can then lock them into an ‘underclass’ of unemployed in our economy. Some economists have theorized that an economy like ours always has to have a permanent minimum level of unemployed ‘underclass’ in order to function efficiently. If this is correct then unfortunately the Australian permanent unemployed ‘underclass’ contains a disproportionate number of Aboriginal people. Despite decades of allocating considerable resources (Federally $3.5 billion annually, plus the various state’s individual expenditures) toward providing services and infrastructure the results have been officially reported as “dismally poor”.
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BlackBiz Indigenous Business Magazine - issue #02 January/February 2012
The Indigenous Stock Exchange
One of the reasons for this has been a focus and emphasis on employment organisations seeking jobs as employees for Aboriginal people in remote communities. In many cases such job opportunities either do not exist at all locally, or are too far away for workers to commute. Another reason has been that too much of this money has been spent on projects that are not selfsustaining and fail to provide significant numbers of permanent jobs for Aboriginal people. Current federal government policy and actions to reduce welfare dependence could have the effect of depopulating the smaller regional communities and aggregating their populations into the larger communities that have been selected for support and development. This would be ironic, considering the popular public sentiment has long been for finding ways to reverse the flow of people from regional Australia to the larger towns and cities. This was evidenced by the $7,000 NSW government grant to individuals and family homeowners in cities to move to regional NSW. Aboriginal people in small and remote communities are already there and what is more, much happier if they can stay there on their own lands. A partial answer to some of the problems of small and remote Aboriginal communities particularly, may well be to support local enterprise, and thereby provide chances for people to earn a living in or near their own communities and lands, instead of being forced to move.
What is the role of the ISX? The role of the ISX is to help Indigenous Australians to achieve their dreams by any means available - sharing knowledge, raising finance, marketing, or one-on-one support. One ISX administrator has access to an extensive database that can be used to do scoping exercises for people who may have a business idea, but nil, or very little, information about that particular type of business or industry in which they are interested.
It is particularly useful for small and remote locations. Alternatively it has also been used as a “menu” for would-be entrepreneurs to review a list of ideas for businesses that might be viable in their region. Unfortunately, its use must be restricted to projects that are assessed as warranting the scoping time and effort invested in them, because of the volunteer “man hours” involved in extracting information in such exercises.
What the ISX strives to achieve The ISX generally eschews government support. It tries to find non-bureaucratic ways to support Aboriginal people and communities. The online and community trading floors are free places to market ideas and investment opportunities.
BlackBiz Indigenous Business Magazine - issue #02 January/February 2012
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The Indigenous Stock Exchange
... What is needed right away The ISX goal is to build appropriate, strong and growing investments in Indigenous businesses and social and cultural enterprises. Between 2004 and 2009 over 5,000 Indigenous people, enterprises and communities nationwide used the ISX to post information and to track down investors, supporters and mentors. The ISX website is becoming an established institution and self-managing network. Monthly traffic is very strong with between 200,000 and 300,000 hits on average.
What the ISX would like to see in the medium to long term The ISX long term mission is to create high quality, patient capital investment in Indigenous people and their dreams. Any Indigenous person is free to put forward a business proposal before investors and supporters through the ISX online and community trading floors. Whilst Aboriginal people with business ideas may have other objectives than making profits, it is however essential that the businesses they run must be sustainable, so that these other objectives can then be achieved. Those who are putting up their ideas for the first time, no matter what type, are welcome. The ISX encourage first time business people to work on their ideas over time and to continue to refine them by re-listing and improving their proposals. The ISX strives to assist Indigenous Business Australia wherever needed. The ISX view is that much has been wrong in the past in the way the private and government sectors have supported Indigenous economic development. The last fifty years of Western development projects has a lot to teach about what is wrong with this approach.
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The ISX firmly believe that supporting people’s passions is the best way of supporting successful Indigenous commercial enterprises that can also provide benefits socially and culturally. The ISX encourage investors to think about the human, social, environmental and cultural return on investment that accrue from Indigenous businesses. The ISX does not believe there is one methodology that fits all, but simply encourage investors to think about four dimensions of business: 1) Monetary Profit 2) Environmental Profit 3) Social Profit and 4) Cultural Profit. In the near future even conventional financial markets will use these indices to measure what a good investment is.
What the ISX does with support For many years the ISX has run on “the smell of an oily rag”. All investment flows directly to Aboriginal businesses. In the future the ISX intends to create some funds to provide infrastructure, so that the ISX can continue its work. The national ISX is driven by volunteers.
What the ISX is working on now and why support and participation is really critical In 2008/2009/2010 one of the ISX’s major focuses has been on creating listings for Indigenous businesses in East Arnhem Land. The ISX is actively working on strategies that corporations can follow to maximise their direct contributions to Indigenous businesses and enterprises through the deductible gift recipient process. There have also been major developments in one of the spiritual homes of the ISX - Broome. BAMA, the ISX’s parent company, has created a new company under the auspices of the Yawuru people
BlackBiz Indigenous Business Magazine - issue #02 January/February 2012
The Indigenous Stock Exchange
entitled YSEAISX - Yawuru Social Enterprise Alliance ISX and will be running its own regional trading floors and investment strategy for that region. The ISX is in the process of becoming a national company with regional Indigenous shareholders which will include YSEAISX.
• Create a process where Indigenous business entrepreneurs can move ahead one step at a time. • Create a national network of successful Indigenous community businesses and investors that support each other.
The ISX will work as a national conduit to fast track injections of equity and support into its regional partners and directly into Indigenous businesses that are making a difference in the economic, social and cultural world.
What is an Indigenous Stock Exchange?
Through the national ISX website and online trading floor the ISX works to:
In Indigenous communities there are many things bought and sold in the Western world - that will never be up for sale.
• Encourage Indigenous individuals all over Australia to put forward passionate ideas that they want to pursue. • Link mentors, knowledge, funding and ideas with those who are trying to achieve their passions and ideas. • Link passions and capacity and know-how wherever possible.
An Indigenous Stock Exchange is never going to be like a conventional Western financial market place.
But there are techniques for raising capital and equipment such as offering shares in businesses that are of importance to future Indigenous economic development. There are also conventional ways of building up businesses through family endeavour that are also relevant.
BlackBiz Indigenous Business Magazine - issue #02 January/February 2012
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The Indigenous Stock Exchange
... As the ISX develops it learns more and more about how this knowledge can be transferred to Aboriginal contexts. Through the ISX community and online trading floors the ISX has been very effective in identifying business proposals in communities where none were thought to exist.
Land Aboriginal enterprises. It has been found to be useful to work on regions and language areas as a means of concentrating limited resources and energy. But the idea of the online trading floor is to provide a permanent and ongoing means of communication to investors and supporters.
In this, the trading floors support entrepreneurs that usually fly under the radar screens of governments or even conventional business networks. The ISX always works with the permission and in partnership with the elders of the community, supports and enables existing Indigenous organisations within the community, and communicates through trusted Indigenous community leaders. Much ISX work involves long lead periods of many years, and extensive community consultation starting from the elders and moving to the grass roots of the community.
Origins
Why the ISX does Community Trading Floors and the full scope on how the ISX got into it In the first five trading floors, the ISX identified micro and small business as important priorities for Indigenous communities. The trading floors included Ngunnawal (Canberra), Kuku Yalanji (Mossman, Qld), Yawuru (Broome), Yorta Yorta (Shepparton) and Ngarda (Roebourne) and proved to be an inspiration to the community as emerging business entrepreneurs shared their ideas and gained support from their community while also presenting to investors. The ISX is currently focusing on profiling East Arnhem
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The ISX arose from a recognition that Indigenous positions within the Aboriginal services industry and in the public sector have been growing relatively well, but Aboriginal people are under-represented in the private sector, micro and small business. The ISX also recognise that there is a dual speed economy in Aboriginal Australia. One economy that is located in major cities and regional towns is closer to the norms of European society. The other economy in the regional and remote areas and is stricken by problems of poverty and under development. The ISX strategy was initiated in Canberra on May 21, 2003 on Ngunawal territory. The goal was to support the development of as many Indigenous businesses as possible.
BlackBiz Indigenous Business Magazine - issue #02 January/February 2012
The Indigenous Stock Exchange
The whole ISX effort was framed by the urgent need for jobs for Indigenous young people especially in regional, remote and very remote Australia. The Kuku Yalanji Trading Floor was held in Mossman, North Queensland on August 20, 2003. This trading floor revealed the reality that it was no easy task to get the Australian and world financial community to come to even relatively ‘easy to reach’ regional areas. The budget for the first ISX trading floor was about $A20,000. These were the first of a number of community trading floors. They enabled the ISX to “learn by doing” and to think through the key issues of the ISX and to evolve thinking about how Indigenous social, cultural and commercial enterprises might best be promoted. As the ISX has developed it has taken on a market place and trading atmosphere rather than simply a commercial investment forum. In the short time the ISX has been operating it has been found that the mainstream financial marketplace understands that in order to support Indigenous communities (that often do not have any investment or commercial models) all levels of activity need to be supported and not just those that are most likely to succeed. Those that could succeed should also be nurtured.
directly into developing the community. Currently, the ISX trading floor model involves volunteers raising sponsorship for each trading floor and contributing a substantial part of their labour and expenses as personal donations to the ISX. The strength of this option is that it ensures that the ISX is very lean. All funding, even the sums of money held to run a trading floor, go to existing Indigenous community organisations. The ISX operating principle is that all funds must run through Indigenous organisations. This principle of providing a low cost, direct means of linking capital with Indigenous business with all of the investment going into the businesses not the people behind, or the structure of the support mechanism, is believed to be the best way to help more Indigenous businesses succeed. For more information email info@isx.org.au or visit the website www.isx.org.au
This has become a trademark of the ISX. The ISX doesn’t just want to support the elite investments, the ISX wants to create hope and encouragement at grass roots levels for all Indigenous ideas, enterprise and development. The ISX can connect those entrepreneurs that are not fully business-ready to the proper organisations that will get them ready. This is what initial and future trading floors are all about.
ISX Compared The ISX is unique in its operations. The ISX supports the development of social, cultural, financial, natural and financial capital within Indigenous communities. The ISX also operates at cost and all of proceeds go
BlackBiz Indigenous Business Magazine - issue #02 January/February 2012
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BUSINESS FEATURE - Paul Newman
Business Planning Basics
10 Key Steps In the last edition of BlackBiz we explored the question of What to do if you have a business idea? We highlighted the importance of brainstorming and mapping out the business idea on paper so you have a visual overview of what the business idea is, and potential opportunities and pathways in taking your business idea further into fruition.
This article on Business Planning Basics – 10 Key Steps, provides further details of key areas to consider when taking the next step of putting your original business idea into a formal and structured Business Plan format. At this point many people often ask the question: Why do I need a formal and structured business plan? There are many reasons why you should have a structured and formal business plan, as the old adage goes “people in business don’t plan to fail, they fail to plan”. For many, the formal business planning process can be daunting and challenging at times, and requires patience and attention to detail. To help focus on this task, the following “business planning basics – 10 key steps” provides a good starting point and guide. 16
BlackBiz Indigenous Business Magazine - issue #02 January/February 2012
BUSINESS FEATURE - Paul Newman
STEP 1
STEP 2
Whatever type of business venture you may be considering to start up, it is essential that you choose the right business name for your proposed business venture. Ideally the business name chosen should be a smart and catchy type of name reflecting the nature and type of business and industry you will be operating in. It should also be a business name that you can readily leverage off in your business marketing activities, both print and online, and one that can assist in building a business brand overtime that will be appealing to your customer target markets.
Once you have chosen and registered a suitable business name, it is important to then choose and seek assistance in registering a suitable business URL (Uniform Resource Locator), or website address for your business name. For example if your business name is “Bluegem Pools” your URL or web address may be: www.bluegem.com.au or www. bluegempools.com.au. You will also need to decide on a suitable Web Hosting company to host your registered website address and connect you to the world wide web, which will often incur annual web hosting fees.
Choosing & Registering the Right Business Name
You should also think of choosing a business name that may have potential sales value in the future, if you decide to sell the business. Once you have chosen the right business name for your business venture, it is then important to choose the right type of business registration to suit your business type and proposed business operations. For example if you have a small business, and will only be trading in one State only, then you may choose a relevant State based government business registration. On the other hand, if you intend to have a national and/or global business trading presence, then an Australian company registration may be the right business registration format for you. In choosing the right business registration type, it is always advisable to Don’t rush choosing obtain appropriate a suitable b professional legal usiness and financial name, take your business advice time so you before paying for make an your business informed d ecision name registration.
BizTip
Registering a business URL
In today’s fast moving and competitive business world, it is becoming essential for businesses to have a website presence to more readily do on-line business, including having an associated business name email address such as info@bluegems.com. au. To connect your business email address to the internet, you will also need to choose a suitable Internet Service Provider (ISP), which will generally incur monthly ISP fees for providing this service.
BizTip
to register Before paying money me, do a your new business na eck if web address search to ch dress you the proposed website ad name is want for your business ble, you available. If not availa your may need to reconsider or have an chosen business name, s for your alternative web addres chosen business name.
BlackBiz Indigenous Business Magazine - issue #02 January/February 2012
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BUSINESS FEATURE - Paul Newman
... STEP 3
STEP 4
Deciding on a Business Logo Deciding on a suitable business logo is another significant business planning task, as it links directly to your proposed sales and marketing strategies and the branding of your business name, products and services. When working on concepts for a business logo it is also important to be mindful of who your intended customer target audience is, to ensure your target markets can readily relate to your proposed business name and logo. At this point, it is also important to consider legal aspects of your proposed business logo and associated business name, particularly Intellectual Property (IP) rights for business owners. To help with this consideration, it is wise to ask the question: Do I have a business name and logo that is worth having trademarked? If unsure, it is advisable to consult professional advisors including obtaining formal legal advice, which is well worth the cost you may pay for such advice. You can also find out more information on protecting your IP from Commonwealth government agency IP Australia, and their Dream Shield project. See web site www.ipaustralia.gov.au.
Consideration of Industry Regulations and Licences Whatever business or industry you are planning to operate your business in, it is a good thing to undertake research to gather key data and information on the industry or business sector that your business will be operating in, to identify any specific industry regulations, standards or licences that may be required before you can commence trading. Again, seek further advice and information from relevant government agencies, peak industry bodies and business advisors on this, including details of any associated costs this may incur.
STEP 5
Business Information Technology Tools A key step in the business planning process, is to consider the initial Information Technology (IT) requirements for your proposed business and/ or community enterprise. This should happen at the business start-up stage, and at other crucial times as the business becomes established and grows overtime. This includes consideration of what combination of office based technology, such as computers, printers, and mobile technology such as smartphones would best suit your type of business and operations. With such a broad range of IT resources available for businesses today, you can talk to IT professionals about this.
STEP 6
Finances Required
Ideally, it is useful that consideration of the IP question be undertaken in the preliminary business planning phase before you actually commence trading, and have made your business name and logo public, as you may experience difficulties in protecting your IP rights, whether for Trademarks or Patents after you have commenced trading. 18
A core element of business planning process, is to consider and estimate the finances that will be required in the preliminary business planning and venture feasibility phase to help bring your business idea to fruition, as well as in the initial start-up phase and subsequent monthly operational phases of the business operations over the first year in particular. Consideration also needs to be given to what options you have available to cover the required finances to
BlackBiz Indigenous Business Magazine - issue #02 January/February 2012
BUSINESS FEATURE - Paul Newman
are planning to be involved, the business insurance area can be complex to navigate your way through. Given this complexity, many businesses owners make use of professional business advisors, like registered Insurance Brokers to help guide them through the business insurance area.
STEP 9
Have a Sales and Marketing Plan
run the business, whether it is to be self funded, or if a business start up loan from a bank or other source is required to meet initial business running costs. To help with this, it is advisable to secure the services of an accountant or other business financial advisors to ensure you get the numbers right.
STEP 7
Business Operational Requirements The actual business operational requirements for commencing and running a business, is often an overlooked and neglected area in the business planning process. Many businesses often make the mistake of not giving attention to detail when selecting a suitable trading office and location to conduct business from, and what personnel and other resources will be required, and the associated costs of such resources. Effective consideration of your proposed business operational requirements will not only help your business get started and run smoothly, it will also save you valuable time and money.
STEP 8
Business Insurance A crucial aspect of the business planning phase is consideration of what type of business insurance, like professional indemnity and/or public liability you may need for your business, to give you some level of business protection should something go wrong with your products or services when you are trading. Depending on what type of business venture you
The Sales and Marketing Plan is an essential part of the business planning process. In fact, a well thought out and developed Sales and Marketing Plan can provide a business with a blueprint of projected or planned product sales and income over specific time frames. It also helps businesses to develop a strategic approach to marketing it’s product or services, including understanding what’s known as the 4P’s of Marketing: Product, Price, Place and Promotion.
A well developed and implemented Sales and Marketing Plan will enhance your business success.
STEP 10
Get a Business Mentor To help you get the business planning basics right consider getting yourself a business mentor. This may be someone who you know or trust, and/or someone who has relevant business experience and knowledge, and can be a trusted advisor who you can regularly talk to about aspects of your business model or operations. Now don’t be afraid to ask someone to be a business mentor, as most people will be honoured. In fact, many successful business people have several business mentors who they call upon for advice and guidance from time to time. Further information on setting up a business can be found online... just search on Google “Starting a business in Australia”.
BlackBiz Indigenous Business Magazine - issue #02 January/February 2012
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BIZPROFILE - Tyre Shield
PROFILING: TYRE SHIELD®
An interview with inventor and businessman Jonathon Slottje Jonathon Slottje, an Indigenous businessman and inventor of the world renowned Tyre Shield® product, typifies how having vision, passion and faith in a unique business idea and product, and being dedicated to turning his invention into a business success, can result in a product brand that now has global use and recognition. BlackBiz recently caught up with John and asked him to share with us some of his inspirational business story. John can you tell us a little about your business story, when and how did you get started in business? I was inspired to develop Tyre Shield® from my jackaroo days when I would be riding motor bikes on sheep stations. Having regular flat tyres led me to invent this product. I drew on the knowledge of chemicals and their compounds I gained from marketing products for the petrochemical industry. I developed a formula after appointing ISO endorsed chemists who refined the formula meeting my strict specifications. Safety and environmental considerations have been key to me in developing this product. Eventually I came up with a product which has been tested by the mechanical division of the University of New South Wales. Tyre Shield® has also been test driven in all terrain types throughout western Queensland, Northern Territory, South Australia, Victoria and the high Alps of NSW; from bush tracks, sandy desert roads, hot tropical
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bitumen roads to the Victorian snowy country. More than 100,000 kilometres and many different types of tyres were used. In the 17 years since beginning the business, we have received numerous testimonials about how well Tyre Shield® performs under all kinds of conditions. What have been your inspirations along your business journey pathway? In the early days I attended many field days across Australia. I used this opportunity to talk with customers and directly show the effectiveness of my product, by plunging a screw driver into the demonstration tyre to show how the tyre does not become flat. At the first Gunnedah Ag Quip I attended, I sold all 500 bottles and returned home and decided to set up the business, risking all on making Tyre Shield® a viable enterprise. The inspiration was seeing first hand the response of customers to a product which I had developed and brought into the market place.
BlackBiz Indigenous Business Magazine - issue #02 January/February 2012
BIZPROFILE - Tyre Shield
What are some typical business challenges you have encountered in getting your product into the marketplace, and how did you tackle these challenges? Lack of capital was an initial problem. I had a great product, but without any assets, I found it impossible to finance through the banks. Not to be deterred I began researching alternative financing options and secured a loan through a private organisation, Australian Ethical Investments. They were the only financing group to give us a loan. In fact they finance Indigenous enterprises throughout the world. However, the stringent contractual conditions placed on our business by Australian Ethical Investments meant that they would own 46% of the company. This was something I was not happy about. However, we were able to secure a loan with ATSIC to pay out Australian Ethical Investments and re-secure 100% of the business ownership ourselves. In spite of these first loans, we were never able to borrow sufficient money to fully develop the business. Now Tyre Shield Australia is fully self funded. To promote the product Tyre Shield® in the market place, I drew on my background as an Insurance salesperson. I began the long committed process
of cold calling potential retailers. I built a sales distribution network travelling in an XB Falcon station wagon through Queensland, Northern Territory, South Australia, Victoria and New South Wales, setting up retailers in each of these States. I travelled this round every month for five years, eventually building a base of 400 retailers. Getting Tyre Shield® established was difficult. It took commitment and determination from both myself and my wife Elizabeth. We have certainly encountered a number of challenges along the way. Firstly, I encountered resistance due to my Aboriginality. Some people did not want to know me; others told me ‘he should hide it more.’ There were those who were simply amazed that I was Indigenous. Their stereotyping did not allow for an Indigenous person with such motivation, determination and innovation! When we first started the business, we were living in a caravan park. Not in a caravan, but under a tarpaulin. Our complete faith in the product and the vision of the business we could build, gave us the strength to keep going. Secondly, we needed a better distribution system that would provide regular cash flow. The process of
BlackBiz Indigenous Business Magazine - issue #02 January/February 2012
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BIZPROFILE - Tyre Shield
... finding reliable wholesalers who are passionate about the product has been a lengthy one. Fortunately now, I have a team of wholesalers who pay cash in advance prior to despatch. I no longer have to sell Tyre Shield® from the back of my car. Nor do we have to bottle Tyre Shield® ourselves. We now contract a team of 15 employees at a supported industry workshop who do this with our plant and equipment. This has put the business in a much better position. We now have on going cash flow, as in many small businesses cash flow causes the growth of the business to be constrained. It was hard in the early days because the retailers would want a 30 day account which would turn into a 60 day account. It was hard to generate income to buy more product and expand. I now use freight companies, but I could not in the early days when I would drive to Brisbane from Mudgee in New South Wales just to pick up a cheque. Thirdly, the international market presented unique challenges. While I was keen to export Tyre Shield® I have learnt some valuable lessons when it comes to trading in the global market. In the early days Roxanne Smith, Aboriginal Business Development Manager with the NSW Department of State and Regional Development assisted us in making a presentation to Beijing Television in China. The product was picked up and info commercials were created selling Tyre Shield® to the home viewers for their bicycles. Three shipments of 20,000 units were sold to China at this time. Another incident involved a US based business that tried to dazzle us. The business offered us a million dollars US and a million shares in their company to sign over our world rights. They even flew Elizabeth to Los Angeles where they hired a casino to launch the American version of Tyre Shield®. However I was able to investigate them with the help of AusIndustry, and subsequently learnt that the president of this American company was actually bankrupt. Fortunately Tyre Shield® did not lose any money. Today Tyre Shield® is in over a thousand retail stores across Australia and is also exported to New Zealand, USA, Papua New Guinea and continually expanding its reach. We now do not need to actively canvass sales, as sales are generated from our web page and also word of mouth. 22
Jonathan Slottje and wife Elizabeth with Joseph Assaf at the 2010 EBA Indigenous in Business Awards
What business tips or advice can you give to other budding Indigenous entrepreneurs out there? Developing and maintaining a business is a continual process, it takes effort, resilience and sheer hard work. We worked even harder to prove that Indigenous people can be more successful than non-Indigenous people – proving it takes effort, commitment and ambition. In our experience, there are many professionals who do not provide a competent service. Aboriginal business creates an industry of optimistic professions who only see a bucket of money at the end of the “Aboriginal rainbow,” and do not respect, but rather patronise the enterprise for their own gain. My advice to budding Indigenous entrepreneurs is that they have • Belief and Vision • Excitement and Passion • Appropriate Advice and Assistance • Financial Management Systems • Knowledge about the market My final suggestion, when contemplating a business, do not speak to negative people, avoid them and remain positive. For more information on John’s inspirational business story and journey, visit his business website www.tyreshield.com.au
BlackBiz Indigenous Business Magazine - issue #02 January/February 2012
TYRE SHIELD The world’s most advanced tyre puncture prevention product for: bicycles - cars - motorbikes - trucks - ride on mowers - 4WDs - quad bikes - and more!
Stop flats before they stop you • TYRE SHIELD seals puncture holes • TYRE SHIELD holds tyre pressure • TYRE SHIELD prevents rust • TYRE SHIELD extends tyre life • TYRE SHIELD exports • TYRE SHIELD is Australia owned.
Available at leading and selected retail outlets Phone: 0419 147 672 Visit: www.tyreshield.com.au Proudly supported through the NSW Aboriginal Business Awards
BIZPROFILE - Catch N Cook
From little things big things grow Director of Koori Communications and Training, Peter Cooley, has been fishing for much of the 42 years he’s been around, but it was when he noticed that the Koori kids of today weren’t getting out there fishing as much as he did as a young kid, that he decided to start up a fishing program called ‘Catch N Cook’.
“G
rowing up in La Perouse, us kids were given lots of cultural knowledge and taught important values such as respect through our peers and elders, but over the past thirty years, I have noticed this passing of culture and values is happening less,” Peter said.
My mum would often ask us “Go and get a dozen mussels and some oysters” and me and my brother would go and get them off the rocks. If we brought back more than we needed we’d get into trouble for being greedy. It was wrong to take more than what you needed.
“As a kid and being from a big extended family, we would all go over to the rocks and collect shellfish and go fishing. The mums would cook it up right there on the rocks and we’d walk along with our elders and they would point out what we could and couldn’t eat.
The mum’s would cook it up right there on the rocks...
My people are ‘saltwater people’ so understanding the ocean is an important part of our culture. We need to be able to ‘read’ the sea – to know where and when to fish, to know when it is safe and when it is dangerous, and to know the rips, and how to collect the pippies and shellfish. 24
The sustainability of the environment and the food chain was always drummed into us – so that when we go back there is always plenty of food for everyone.” Today, Peter’s Catch N Cook program teaches many of the same messages and he’s run it for Aboriginal children and their families all over NSW and Queensland. More recently he’s run this program as a
BlackBiz Indigenous Business Magazine - issue #02 January/February 2012
BIZPROFILE - Catch N Cook
camp where children and their families not only learn about fishing and pippying but they also get to participate in cultural dancing and storytelling and learning, “Today I run my own business, Koori Communications and Training, and have developed a number of programs aimed at increasing my mob’s knowledge about their own culture as well as confidence in getting on with the things we need to in life, like work and being a good family person as well as confident about who we are and what we know,” Peter says. ‘I teach the youth to be proud of their culture and but also the need to adapt to things as they are today. For example our people used spears as one method of fishing, but today fishing rods are used. I also teach them the importance of working together and cooperation as an important part of the program.” Peter has recently launched ‘Catch N Cook Cultural tours’ to educate others about the traditions of saltwater people at La Perouse. Peter has been running Koori Communications and Training Pty Ltd for the past 6 years and he has been the recipient of a number of awards for the programs he has developed. You can read more about Catch N Cook and the other programs Peter runs at www.kooricommunications.com
BlackBiz Indigenous Business Magazine - issue #02 January/February 2012
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ARTICLE - Phil Voysey
Putting Your Strategic Business Planning Into Action
I
n the last issue I wrote about the importance of strategic planning. This can be summed up in a simple equation: one hour of strategic planning will save you ten hours of work time. Why? Because a plan helps you to focus your time and energy in the right areas.
example, why spend time on tasks that could be done by someone else for much less.
The trouble with strategic plans and business plans is that they often end up in bottom drawers gathering dust never to be looked at again. The challenge once you’ve done the hard thinking is to put the plan into action. The first step is to develop a 90 day action plan. Decide your four or five priority goals and develop the actions to achieve them. More than five goals is too many. Your plan should be achievable. It should also identify the people or expertise you will need to help you achieve your goals - a website designer, a social media expert for example - and the budget implications. Even once you have a solid achievable plan it is still easy to get distracted doing things that aren’t actually helping to achieve your goals. Michael Gerber, author of the E-myth, talks about prioritising your time and outsourcing the rest. In other words think ‘what is my time worth and how do I best utilise it to achieve my goals’. If you value your time at $150 an hour for
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This might mean hiring a local person. Alternatively, many tasks can be outsourced overseas for a fraction of the cost, whether they be one off specialised tasks such as brochure design or ongoing website support. We are all familiar with companies outsourcing their call centres to India and the Philippines, which can be a cost effective measure for many businesses. Universities, Macquarie University and UTS in Sydney for example, have community engagement strategies and can provide skilled student volunteers to perform specific tasks for small businesses and not-for-profit organisations. Students are particularly skilled in doing research, an area that most small businesses don’t have the time or resources to do. Finally, think about getting a business mentor or coach to help you stay on track. This could be a friend or a paid professional. Most successful businesspeople understand the value of a mentor. They understand that the cost of ignorance is much greater than the cost of education and that it is important to be around the people who have the results that you want.
BlackBiz Indigenous Business Magazine - issue #02 January/February 2012
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