BUSINESS & NETWORKING: Frankston | Mornington Peninsula | Dandenong
june 2015 | free
come fly with me for tony kirkhope, when it comes down to business He’s always up in the air
port doubt
leasing the port of melbourne casts doubt on CONTAINING plans for hastings
podcasting
2905
data speeds and new technology give podcasters a new lease of life
who/what/where
www.businesstimes.net.au
ISSUE 57 / JUNE 2015
FRANKSTON / MORNINGTON PENINSULA / DANDENONG
TONY MURRELL KEITH PLATT MARG HARRISON DAVID HILET MELANIE LARKE SIMON BROWN Design MARLON PLATT Finance ANITA HILET
Publisher / Director Editorial Director Sales Director Managing Director Material production / Prepress
Email: General: inquiries@businesstimes.net.au Editorial: news@businesstimes.net.au Advertising: sales@businesstimes.net.au Artwork: production@businesstimes.net.au
features
Columns
10
regional boost: Moves afoot for a committee to give Frankston region an economic boost
14
SETBACK FOR HASTINGS’ PORT:
Social Media: Jessica Humphreys Law: Jacqueline Conquest Health: Mike Ellis Markets: Richard Campbell Networking: Ivan Misner Managing: Hamish Petrie
16 17 18 19 20 22
The state government decision to lease out the Port of Melbourne casts doubt over any plans to develop the Port of Hastings.
BusinessTimes is published 11 times a year by BusinessTimes Pty Ltd and printed by Galaxy Print & Design, 76 Reid Parade, Hastings, Victoria 3915. Postal: PO Box 428, Hastings, Victoria 3915 Tel. 03 5979 3927 Fax. 03 5979 7944
DISCLAIMER: Information in BusinessTimes contains general advice only. No article or column has been prepared taking into account any individual reader’s financial situation, investment objectives or particular needs. Readers should personally consult professionals for advice on any matter, including investment, health and the law. While all care is taken, BusinessTimes accepts no responsibility for errors or omissions in the published material. Views expressed are not necessarily those of BusinessTimes Pty Ltd. All content is copyright.
business
SA CO
& network
ing: Frankston
COVER: Tony Kirkhope has turned his passion for flying and aircraft into a business. P.12 Cover photo: Keith Platt
| Morningto n Peninsula
| Dandeno ng
com fly e with m e
june 2015 |
$4.95 (GST
inc.)
•
for tony kirkhope, comes down when to busine it always up ss he’s in the air
port do
ubt
leasing the doubt on port of melbou rne casts port plans for hastin gs
podcast
ing
data speeds give podca and new techno logy sters a new lease of life
www.facebook.com/BusinessTimesAU
2905
Make sure every business knows your business. For advertising, contact Marg Harrison on 0414 773 153 or marg@businesstimes.net.au
Check updates online at www.businesstimes.net.au
C
S
2929
1 2 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | June 2015
On on out and rad
RAINER FELDGEN
SMALL BUSINESS
TAX BREAK DEALS 50'' LE D
LC D
127cm
FU LL H D
If you have a small business you may be able to tax deduct your purchase if it’s under $20,000. See your accountant for more information on eligibility.
897
IVERY* INCLUDES DELSE TUP P TO & TABLE
$ SATELLITE S50T 15.6" CORE I7 1TB NOTEBOOK
TAX BREAK DEALS
• 5th Gen Intel Core i7 processor • 8GB RAM PSPQGA-001001
999
$ 50"(127CM) FHD LED LCD 100HZ 3D SMART TV
TAX BREAK DEALS
• Android Smart platform • Air Mouse remote included 50K390PAD
198
$ 40L 1100W WHITE MICROWAVE
TAX BREAK DEALS
• 360mm Turntable Diameter • Auto Sensor Cook MS4042GRS
CREATE YOUR OWN SMALL BUSINESS BUNDLE
ERY INCLUDES DELIV N† IO & INSTALLAT
5 CALL 8796 04U6OTE FOR A TRADE Q
999
$
TAX BREAK DEALS
420L TOP MOUNT REFRIGERATOR
• 315L Fridge, 103L Freezer Capacity • Adjustable Spill Safe Glass Shelves WTM4200WB-R
POWER CENTRE 111 CRANBOURNE ROAD Ph: 8796 0400
When you spend over $500 TRADING HOURS MON - WED : 9am - 6pm THU - FRI : 9am - 9pm SATURDAY : 9am - 5.30pm SUNDAY : 10am - 5.30pm
TGG044168
RAINER FELDGEN FRANKSTON
# Monthly payments required.
2922
12 months
interest free
thegoodguys.com.au
On sale 03/06/15 to 30/06/15. Personal purchases only and not available in conjunction with any other offer. Our 30 day price guarantee applies on all newly boxed, currently available stock of the identical model, advertised by a local competitor.#Conditions of 12 Months Interest Free: Approved Customers Only. Available on advertised or ticketed price, from The Good Guys excluding AEG, ASKO, Miele, Neff, Bertazzoni, La Germania, and Falcon products. Monthly payments must be made during the interest free period. Interest and payments are payable after the interest free period expires. Paying only the minimum monthly payment will not pay out the purchase before the end of the interest free period. A $99 annual fee for Gem Visa applies. At the end of the plan, interest will be charged at 22.99%. This notice is given under the Gem Visa Conditions of Use (as applicable), which specify all other conditions for this offer. Also available to GE Credit Line, GO MasterCard and Buyer’s Edge customers. Other conditions, fees and charges payable, see relevant product websites for details. Credit is provided by GE Capital Finance Australia (ABN 42 008 583 588), Australian Credit Licence number 392145, trading as GE Money. *Includes local delivery and table top set up: Delivery within 20km radius, unpack and safely place TV on existing table top or flat surface, connect existing or new components to customer supplied cables, basic programming of factory supplied remote, neatly arrange cables and remove packaging. †Includes local delivery and installation: Delivery and installation within 20km radius, unpack and remove packaging, connect to existing power point. See in-store for full terms and conditions.
PROFILE
n Bizzquiz
KATHRYN EBBOTT Director, Melbourne Office Solutions, Seaford.
Kathryn Ebbott and her husband Garry have owned and operated Melbourne Office Solutions, based in Seaford, since 2000. “We help companies create better workplaces by supplying furniture that complements their style of work and fits their budget,” she says. “We strive to make it easy for our customers because we want them to love their workspace.” The Ebbotts have more than 30 years experience in the office furniture industry, helping clients select furniture and directing a delivery team that assembles the items in the workplace and takes away the packaging.
online business so we can supply office furniture all over Australia.
I dreamed of being ... one of the first women in space. Ha ha.
My mother and father always told me ... Treat people the way you wish to be treated.
My first paid job was ... working at the zoo in the fun fair weekends and holidays and in my first full time job I worked as a stenographer at St Paul’s Cathedral.
I wish I had ... more lovely clients to work with, creating their new happy working environment.
In 10 years I will be ... nearly retired, maybe, and happy with the grandchildren which I don’t have as yet.
Tip for success ... Love what you do and it will become easier. Love each day you go to work. I am inspired by ... the many hard working, decent people that I meet that are having a go. Anyone starting a business should ... get professional advice before they start and set up their business structure. Branding will give their business a professional look. Get a good office furniture (LOL). I’ll know I’m successful when ... I can have a holiday and someone else is doing the work (LOL, again).
I wish I had not … what’s the point ... I have no regrets.
Our business planning entails ... setting up more
Your tax solutions specialist We love helping individuals and business owners with taxation and compliance obligations. Extended tax time trading hours for your convenience. BOOk NOW. Wednesday: 9am–7:30pm Thursdays: 9am–7:30pm Saturdays: by appointment from 11 July. Take advantage of our email options for clients unable to get to our office. We’ll prepare your return and contact you with any queries, and then send you the completed tax return.
• ACCOUNTING • CONVEYANCING 4 | BusinessTimes
MIRANDA ACCOUNTING SERVICES
Frankston / Mornington Peninsula / Dandenong | June 2015
TEL 03 9773 3647 PO Box 476 Patterson Lakes Vic 3197 reception@mirandas.com.au www.mirandas.com.au
2923
We aim to be a proactive and innovative accounting and advisory firm delivering personal, timely and quality advice together with cost effective strategies and solutions.
2015 budget
Firing up the economy: Billson Frankston-based Small Business Minister Bruce Billson summed up the May Federal Budget: “We want to fire up the economy with more small businesses thriving, purchasing and employing.” The Dunkley MHR said key measures in the $5.5 billion small business package include: • A tax cut (a 1.5% discount for small business companies, and 5% discount for unincorporated businesses). • From now until 30 June, 2017, the chance to fully and immediately claim on tax every business item up to $20,000 as a tax deduction – for example furniture, computers, a coffee machine. • The ability to immediately claim on tax the professional costs of starting a business, rather than having to do it over five years. Examples include legal and accounting fees. • Ensuring that a Capital Gains Tax liability is not triggered when simply
restructuring a business to set it up for the future. Farmers: In addition to the small business package, the federal government will provide $70 million so primary producers will also be able to claim water facilities, fodder storage and fencing as an immediate tax deduction from 1 July, 2016. Infrastructure: Frankston and the Mornington Peninsula have received more than $3.3 million to improve and maintain roads. Frankston Foreshore Precinct receives $937,500 for work in addition to the car park, sea wall installation, foundations and civil works. Jobs: The Mornington Peninsula had been selected to take part in a pilot program to give employers incentive to hire unemployed youth. As part of the Budget, new measures will focus on making job seekers more employable, reducing the costs of taking on
ENERGY FOR BUSINESS. It’s all we do. And that’s good for you.
new staff, and bringing job seekers and job providers together. This includes a $331 million Youth Employment Strategy and an $18 million National Work Experience program. Part of the Youth Employment Strategy will be a Transition to Work program to help disengaged young people, aged 15 to 21 years, become job-ready. Participants will be provided with intensive support from community-based organisations. Childcare: Families using childcare in 2017 on family incomes of between $65,000 and $170,000 will be around $30 a week better off. Those on higher incomes will, on average, continue to receive the same level of support. Pensions: More than 170,000 pensioners with modest assets will have their pensions increased by an average of $30 per fortnight. There will be no change or higher pensions for 90 per cent of pensioners. Last year’s Budget measure to link pension increases to the Consumer Price Index (CPI) has been scrapped.
We’re Australia’s fourth largest electricity retailer^ and we got there by focussing on what businesses need. Not the millions of households in Australia. Just businesses. Our pricing is simple and competitive. No gimmicks.
^ Based on volume of electricity sold to customers. ERM Power Retail Pty Ltd ACN 126 175 460.
Switch to ERM Business Energy ermquote.com.au 134 376 2919
June 2015 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 5 ERM16573_Advert_127d x 185w.indd 1
20/05/2015 8:48 am
BUSY BITES
Planning for growth
SASI MOVES TO TOWN
Victorian Planning Minister Richard Wynne will address a lunch on 18 June, outlining the strategic direction of the state’s planning policy and its approach to rapid growth and urbanisation.
Statewide Autistic Services Inc (SASI) has moved its head office to central Frankston. The former office in Seaford will provide additional space for the day services. Head office staff in the new location at 54-58 Wells St will work to raise the service’s profile and grow the business. Beachlynn Day Services will remain in Sir Laurence Drive, Seaford. Day services in Croydon and Gippsland remain unchanged. Some of Beachlynn’s clients will undertake new activities using extra space available in central Frankston. They will have the chance to develop skills associated with interacting with shoppers and retailers, breaking down their own, and the community’s, perceived views of people with disabilities. SASI said it looks forward to playing a greater part in the business life of Frankston and offering a unique and diverse perspective of life for people with autism and other complex disabilities. Find out more about SASI and their services at www.sasi.org.au
The public lunch at Melbourne’s Park Hyatt, Parliament Square, is being arranged by the Committee for Economic Development Australia (ceda) Also on the podium will be Dr Marcus Spiller, principal, SGS Economics & Planning, and Adjunct Professor, School of Global, Urban and Social Studies, RMIT University. The minister will discuss: • Development opportunities • Urban renewal and major projects • A renewed Plan Melbourne: where to from here? • Planning controls and regulations; and • Sustainable development and liveability Wynne was a Melbourne City councillor for six years, serving one year as Lord Mayor in 1991. He has policy experience in the development and delivery of local government, housing and urban renewal reforms.
By Beau Rixon, Podmania director.
RawVoice, which tracks more than 20,000 podcast shows, has said that monthly unique podcast listeners in the U.S. have tripled from 25 million to 75 million over the past five years. In addition, Apple recently announced that it has hit a billion podcast subscribers in iTunes alone. So why after more than a decade are podcasts having a comeback? Put simply, it’s the rise of smartphones, wireless streaming, and Bluetooth/internet-enabled cars.
2914
See ceda.com.au for cost and bookings.
cutting through with podcasts
When podcasts emerged just over 10 years ago, they were awkward to download, the topics too obscure and they weren’t profitable. Nowadays, listeners can grab shows straight from the internet or stream through apps on to their smartphones or car stereo. The technology and data speeds have finally enabled podcasters to flourish. Merge this with consumer thirst for information and you have the perfect time to start a podcast. Here are just three reasons to podcast 1. Greater cut through In a world swamped in information, it becomes harder to get noticed. Consider blogging: Tumblr, the popular microblogging platform, has more than101.7 million blogs with 44.6 billion blog posts and WordPress. com, the blogging and content management system, has more than 63 million blogs. There are now over 450 million “active” English speaking blogs in the world. Video content is building, too. In 2014 YouTube published that it receives 300 hours of fresh video content uploaded every minute; that’s 200,000 hours of new video content every single month. Against a mountain of information and so many competitors scrambling for the same slice of the action, it’s becoming more difficult to get read. On the other hand, it is estimated that there are only 100,000 to 200,000 podcasts available to stream or download right now. While this may seem like a daunting number, consider this? Many podcasting experts estimate that nine out of 10 podcasts are poorly produced or have been abandoned due to lack of interest. So, in truth, with the right help you have a massive opportunity to get noticed. 2. Great Content Next to the video, podcasts are the second
6 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | June 2015 PM_BusinessTimes_QPH_Ad2.indd 1
1/06/2015 3:50 pm
For years, audio content has been the dominated by radio. It has been the kingpin of audio media and has withstood any disruption brought about by the Internet. But like the fate of the music, movies and the TV industry, radio may not have the upper hand for much longer. With the success of excellent podcasts like Serial and Radiolab, more and more people are becoming aware of podcasting. Over time, the rise of smartphones, wireless internet, and consumption habits will inevitably lead to more exposure and success for podcasters. • For the complete article 7 Reasons to Podcast, visit http://podmania.com.au/7 reasons to podcast Podmania and BusinessTimes will launch the new Business Times Podcast in July. To find out more about creating even better connections with your customers, contact marg@businesstimes.net.au.
convert invoices to cash ... fast The manufacturer of food storage bags needed funds to meet the growing demand from a major customer, a leading national logistics company. With traditional forms of finance such as overdrafts exhausted and an urgent order pending, the manufacturer needed funds quickly to buy materials (cash on delivery). Initially, they needed $35,000 to see them through this new order. Fifo Capital was able to free up the $35,000 from the company’s sales invoices, allowing it to buy the materials to meet the order. The entire process took under 48 hours, from the initial inquiry to the funds landing in the manufacturer’s bank account. The company continues to grow at a faster pace than it had ever envisaged, said Fifo Capital’s Sav Neri.
Yoghurt to whisky Whisky may be the new yoghurt for David Prior. The man who started the five:am yoghurt brand and sold it within five years for more than $80 million has a new venture, heading up the Pure Scot whisky company. After selling five:am – which produced yoghurt at his family owned Carrum Downs factory – to British based P Z Cussons last year, Prior told BusinessTimes in October 2014 that he was on the lookout for another project. “I’m not really a buy-abusiness guy or a passive investor,” said Prior, who was on the cover of the January 2012 BusinessTImes. The early morning meditator and yoga enthusiast who surfs whenever he gets a chance, planned a trip to ride waves in Brazil before launching a new business. Once the sale of five:am was out, Prior had many approaches to join other businesses but said he was “not really inclined to be on a board or an investor. I can’t really add value. “It’s best for me to back myself and not get distracted. I’d really like to start a new business.” That new business is Pure Scot wines/spirits. Prior’s LinkedIn page says he was “inspired to create a Scotch whisky that is contemporary and fresh and a brand to match”.
We are an ageing society and an increasing number of us will be faced with transitioning a family member into aged care. It is a complex and difficult journey. At Ninox Advisory, we help navigate a range of issues from finding the most suitable accommodation available to ensuring estate planning issues are considered. How can you best minimise aged care fees and charges and maximise pension entitlements?
Call our team to help you find out. e: information@nixonadvisory.com.au
Ground Floor, 737 Bourke St
t: 13000 NINOX (1300 064 669)
Docklands VIC 3008
www.ninoxadvisory.com.au
2921
most prolific form of content. The initial audio content produced through a podcast has the potential to be transformed into a blog post, social posts, pull-out quotes, tweets or even an ebook. And all the while it can be distributed across a variety of platforms, benefiting your overall Search Engine Optimisation strategy. However, unlike producing video, a podcast does not require the same amount of effort. There is no need for lighting rigs, tripods, multiple cameras, and a dedicated team of operators, editors or makeup artists to produce the quality required. All you need for a podcast is a high-quality mic, professional recording software and support with editing and distribution, and you are good to go. Also, if your show has guests, the geographic logistics is not a problem. For podcasts, participants can be anywhere in the world and connect through Skype, Viber or any other free calling service. No need for travel, hosting, and makeup – dramatically cutting production time and costs. 3. Audience reach There are an estimated one billion smartphone users and every one of those phones you can subscribe to, stream and play audio podcasts instantly, for free. The ability to reach potential customers and have them take your message with them in their pocket wherever they go is a strong incentive to start podcasting. As people’s entertainment and information habits are changing, your customers are moving toward wanting content on their terms. They want to choose ‘what to watch, when they want to watch it’. This is evident from the trend in binge-watching complete series such as ‘Game of Thrones’ in a single weekend.
June 2015 | Frankston / Mornington Peninsula / Dandenong | BusinessTimes | 7
NETWORKING gallery
1. Ninox Advisory hosted a breakfast at The Rocks, Mornington, on 1 May to explain the financial implications of transitioning a family member into aged care. Ninox’s Sally Head (centre) is pictured with Trish Hill, of Life Solutions, and Chris Hill, of Hill Legal. 2. Trevor Kitchen. Of Opteon, with Jeff Butler, of Aged Care Services at the Ninox Advisory breakfast. 3. Birgit Rampal, clinical care coordinator, and Robyn Rhodes, facility manager, both of Chronos Care Ranelagh Gardens, with Dean Kitchen, general manager of Ninox Advisory. 4. Proudly Frankston hosted a breakfast at The International on 6 May to hear about the proposal for a Committee for Frankston to promote sustainable economic development and job opportunities. From left are Proudly Frankston members Alan Daniels, Rob Thurley, Ken Rowe, Max Butler, and Mark Engwerda. 5. Proudly Frankston supporter Ken Jungwirth (left) with Wes Bourke, of Optus Business Centre, Carrum Downs. 6. Frankston Food and Wine Society had its May lunch at Terre Restaurant, Dromana Estate, on 6 May. Peter Knuppel and Phil Jones, of Frankston International Motel. 7. Facebook joined with Federal Small Minister Bruce Billson to host a breakfast at Frankston Arts Centre. Mr Billson is pictured with Facebook’s director of policy Mia Garlick. 8. BusinessTimes sales director Marg Harrison with Shane Boyle, of Social Playground.
1
2
3
4
5
6
7
8 8
Eyewear As Individual As You Are Now stocking
BORSALINO
Ph 5975 3235 57 Main Street, Mornington
MainStreet Eyecare
2910
8 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | June 2015
2913
Limited Edition
9. At the Facebook breakfast: Mia Maze and David Reynolds, of Raw Travel, with Linda Crittenden, of Lakeside Villas.
9
10
10. Pitcher Partners sponsored a Budget breakfast at Punt Hill Apartments on Friday on15 May. From left are David Knowles, senior partner for Pitcher Partners, Sue McMillan and Steve Booth of the Department of Economic Development, Jobs, Transport and Resources. 11. Partner at Pitcher Partners Michael Langhammer with senior advisor Simon Briggs with Cain Murphy, of Bauer Media.
11
13
15
12
14
16
12. Peninsula Business Network met at Mornington Golf Club on 19 May for breakfast. Pictured are Sab Bontorno and John Robinson, of S and M Bontorno Transport. 13. Western Port Chamber of Commerce hosted a Google Partners presentation. Pictured are Western Port harbour master Shane Vedamuttu with Google presenter Lara Mattatia. 14. Roger Henley, of Bespoke Eyewear, was at Main Street Eyewear Mornington, to advise on custom made frames. He is pictured with Main Street Eyewear owner Kay Tyrie. 15. Peninsula Business Networking hosted a workshop Ditch the Pitch with Danielle Story at Mornington Golf Club on 27 May. She is pictured (right) with Elizabeth Well, president of PBN. Photo by Biz Photography. 16. Soar Collective held its after dark meeting on 21 May with Luz Restrepo of Sisterworks inc. as guest speaker. Pictured are Kelly Ross and Jessica Humphreys, of Social Concepts.
Tax Planning and Advice Self Managed Superannuation Funds Individual and Business Tax Returns
14
www.carrbarnett.com.au
Level 2/454 Nepean Highway, Frankston VIC 3199
2930
Call us today on 9783 6666
June 2015 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 9
proudly frankston
Regional push for economic improvement Proudly Frankston Campaign has sown the seeds for a regional committee to work on improved economic, social, cultural and environmental outcomes. The business-funded Committee for Frankston would function like established advocacy groups throughout Australia, including Victorian regional committees at Geelong and Ballarat. In early July, members of a Frankston steering committee will travel to Geelong and Ballarat to meet key figures in the establishment of committees for both regional centres. Former mayor Christine Richards, who heads the steering committee, said the group would be in a position to “map out a strategy” after talking to people who helped launch committees in the two cities. The role of the Frankston committee is seen as thought leadership, advocacy, intervention and influencing outcomes that deliver increased economic activity and
employment opportunities in the region. Proudly Frankston president Alan Wickes said a steering committee now had the task of taking to the community a clear message about how a Committee for Frankston’s would operate. The steering committee comprises Frankston City CEO Dennis Hovenden, former mayor Christine Richards, Frankston Rotary president-elect Grahame Gordon, Flinders Partners Group partner Tim Percival, chartered accountant Robert Thurley, and former Frankston High School principal Ken Rowe. “It needs a regional focus and we must get a commitment of funding from the business community at the outset,” Wickes said. Proudly Frankston hosted a breakfast at
Frankston International on 5 May so that 50 people representing local government, business and education could hear Committee for Ballarat CEO John Kilgour explain his group’s activities. Kilgour said his advice to a new Committee of Frankston would be to get together with all interest groups in the region, share expertise and collaborate on economic and social growth projects. He said committees like Geelong and Ballarat were increasingly recognised as efficient and effective advocates of infrastructure, planning, employment and leadership projects. Such committees collaborate with government, private enterprise, health and education services to help plan and prepare staged development projects that deliver benefits across the region. “Governments tend to like it when you approach them collectively with well
MBA Business Solutions are dynamic accountants that provide extraordinary service and complete solutions for our clients. Individual & Business Tax Returns Property Investment Specialist Business Structuring & Asset Protection Business Advice & Planning Financial Planning Self-Managed Super & SMSF Loans Succession Planning Estate Planning
10 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | June 2015
Ph. 5970 8100 342 Main Street, Mornington team@mbabus.com.au www.mbabusinesssolutions.com.au A Paris Group Firm
2906
› › › › › › › ›
Committee for Ballarat CEO John Kilgour (centre) with Frankston City CEO Dennis Hovenden (left) and Proudly Frankston’s Kevin Johnston, after Mr Kilgour’s talk at Frankston International about establishing a regional committee to promote sustainable development.
thought out projects that can be carried out over time and financed in smaller, bite-size pieces.” Kilgour said Frankston should already be planning for a population doubling to 250,000 to 300,000 by 2050, “looking a long way past the four-year cycles of governments”. He said Frankston should be developing its own brand as a regional hub that already boasted capital city services like universities and hospitals. Proudly Frankston president Alan Wickes opened with: “Today our challenge is to make a good city even better.” “We are throwing down the gauntlet to anyone in the Frankston region passionate about thought leadership,
advocacy, and influencing. We will not depend on government at any level, but the community.” Wickes said he felt “extremely positive” about a Committee for Frankston getting off the ground. “We had an audience today representative of the community and it was telling that no-one left before the scheduled end. John Kilgour’s message was terrific, but we must remember that it was a message 10 years in the making.” Wickes said a Committee for Frankston could emulate Ballarat, which chose a leadership program as a foundation project. Ten years on the experiential program has 240 graduates, the next cadre of community leaders.
Ballarat’s committee also run a Young Adult Employment program and contributes to plans for major projects, including the Ballarat West Growth Zone and redevelopment plans for the old civic centre and Ballarat railway station. Wickes said an existing Committee for Frankston was invited to the breakfast, but appeared to be no longer active. “However, we stand ready to work with all Frankston and peninsula-focused organisations,” he said. While pressing for a representative committee targeting regional prosperity, Proudly Frankston has been establishing credentials as “a passionate supporter of our city”, said Wickes. In two years the Proudly Frankston Campaign has launched a fully-subscribed Frankston Wine and Food Society and the annual Long Lazy Lunch that last November attracted more than 500 people to hear jazz great James Morrison. This year Morrison will extend his Frankston stay to take music master classes at Frankston High School for regional secondary students. As well as financing the master classes, Proudly Frankston has donated the money raised to local charities. Also, it has supported the proposed Frankston Park community entertainment centre.
committees for cities and regions: what, how and who? The Committees for Cities and Regions is a network of independent, like-minded organisations in Australia and New Zealand working to enhance economic, social, cultural and environmental outcomes. The committees, financially underpinned by business, bring together leaders from business/industry and community/ government organisations to identify and analyse regional issues and work to promote their development. By adopting a strategic long-term focus, the committees can remain non-partisan. Transcending short-term political cycles allows them to think and act as advocates for the sustainable development of complex
infrastructure projects that can improve the region’s economy. These citizen networks (albeit funded by business) offer ongoing leadership and bipartisan political support for those projects that may take the lifetime of several governments to complete. Partners (committees) agree to guiding principles set by the network, including: - Operating in a collegiate and cooperative manner - Seeking to be part of the solution, not part of the problem - Being politically astute, but steadfastly non-partisan - A unifying voice, not advancing the selfinterest of any individual organisation
- Welcoming new members prepared to abide by the guiding principles. A paper published by the network in 2013 titled “A Growing Movement” points to its potential to inform and influence national outcomes. It said that Committees for Cities and Regions had the capacity to broaden its scope to issues affecting the nation, as well as identifying challenges and opportunities in individual communities. “By enabling member cities to share best practice, it also plays a crucial role in strengthening institutions as well as exploring critical cross border concerns and issues,” the paper said.
June 2015 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 11
cover story: TONY KIRKHOPE
COM
Gr i
T
Always ready for take-off ... Tony Kirkhope in the cockpit of one of his four aircraft .
12 | BusinessTimes| Frankston / Mornington Peninsula / Dandenong | June 2015
he logistics of chartering private planes for holidays or business appear to make sense. There’s no car parking problems, no waiting in line at busy airports, no seat allocations and smaller landing strips are often closer to the destination. And of course there’s the luxury of the seats, fewer passengers and the feeling of having a pilot at your service. Tony Kirkhope knows only too well the lure and joys of flying in a smaller aircraft. In fact, he loved it so much that he’s built a business providing just such an exclusive service. A metallurgical engineer, Kirkhope’s first job was at a copper smelter in Wollongong. It was the late 1970s and he spent much of his down time waterskiing. (Kirkhope was president of Melbourne University’s waterski club in the late 1960s and went on to represent Victoria in national tricks, slalom and jumps events.) But it was his drives around the district that often took him past an airport. Invited in, Kirkhope decided to spend his time between shifts learning to fly. Back in those days his time aloft was spent on joy flights. Later he graduated to taking friends on holidays (as well as providing company, it was cheaper to have others contributing to the plane hire charges). His next major move was back to Melbourne, where John Lysaght was setting up a hot strip mill at Hastings. Conveniently, Tyabb airport was nearby, so there was no let up in his airtime. The steel industry “started to slow down” so Kirkhope, his brother John, and the members of the Goodman family in 1979 established the Diana Ferrari Shoe Company.
By ab pa th K th G
ha re bu (C W
K ga w bu ca
“g st sp
19 Pu ta
it C ha
ki th
pr Em w la
ME, FLY WITH ME Grabbing a plane and going bush in style: it’s living the dream for businessman, aviator and musician Tony Kirkhope WORDS AND PICTURES: KEITH PLATT
no ng
By the mid-1980s the company employed about 400 people and was producing 4000 pairs of shoes a day. Before the decade ended the families divided the company, with the Kirkhopes owning the women’s side of things, the Diana Ferrari brand, and the Goodmans keeping the Rivers brand. In 2000 Diana Ferrari branched out into handbags and accessories, opening its first retail store in 2001. One year later the business was sold to Fusion Retail Brands (Colorado, Palmer Corporation, Mathers, Williams). The sale of Diana Ferrari allowed Kirkhope – who had already gone on to gain his commercial pilot’s licence and was working part time flying outback tours – to buy Pungalina, a 500,000 acre “rundown cattle station” on the Gulf of Carpentaria. He turned the property into an upmarket “glamping” accommodation resort. Guests stayed in tents and could use the thermal springs. Kirkhope Aviation, which began in the 1980s, used to provide seven-day trips to Pungalina, with about one and a half days taken up in travelling. “We also built a big homestead and sold it six years later to the Australian Wildlife Conservancy and, unfortunately, we don’t have any access any more,” Kirkhope says. The nearest road was reached along a 65 kilometre long driveway, “but I only got to that road once in six years”. Under the AWC’s management the property is now part of Pungalina-Seven Emu, which encompasses 750,000 acres with the addition of Aboriginal pastoral land leased from Frank Shadforth. The AWC
t
t . f
ski
m
s
ent
g
n”
ny.
No ‘cattle class’ squeeze here ... the passenger cabin and instrument panel in Moorabbinbased Kirkhope Aviation aircraft.
says it is “a refuge for many species that are in sharp decline elsewhere in northern Australia”. The lure of the outback remained strong for Kirkhope and he based his business on providing a scenic and fast way of getting there. Serendipitously Lake Eyre flooded soon after the sale of Pungalina, and Kirkhope Aviation ran 140 tours in the following four years to the relatively rare phenomenon. “I replaced Pungalina with flying those tours,” Kirkhope says, adding that he prefers seeing Lake Eyre without water. His bought his first plane, a single-engine Cherokee 6, in the late 1970s while still working in Wollongong. A Chieftan Piper twin followed in the mid-1980s, followed by a Navajo in the late 1980s (a second Navajo was bought
in the mid-1990s). The purchase of a King Air in the Unites States in 2011 seemed a ready-made adventure. But Kirkhope came down with the flu before leaving the US and the eight-day trip home through Greenland, Iceland, Europe and India with a ferry pilot turned into a bit of a nightmare with Kirkhope having to seek medical attention in Oman and flying most of the time in darkness, “The days were short because we flew against the clock”. These days Kirkhope Aviation’s three planes pretty much fill Hanger 7 at Moorabbin airport. The red and white liveried aircraft (a Super King Air, two Piper Chieftans and a Piper Navajo)) are kept spotless, ready to fly. While tour bookings come in at a steady pace and businesses – particularly multi-store ones such as Bunnings visiting up to five a day in rural New South Wales – are finding it cost effective to take a charter instead of an airline. However, competition for Kirkhope’s holiday tours is very much at ground level. Sea level actually. Cruise ships are also aiming their marketing at the same demographic: the 50-80 year olds with money, often retirees. The day after BusinessTimes visits, one of Kirkhope’s planes will be carrying someone to a funeral at Broken Hill. Kirkhope says no other charter company at Moorabbin can offer his range of aircraft. “We are probably the main corporate charter available and that’s why we focus our marketing on the south-eastern suburbs. “We may not necessarily be cheaper than the commercial airlines, but coming to Moorabbin saves time in traffic and air 14 terminals. There are no problems
s s
e
June 2015 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 13
cover story: TONY KIRKHOPE
s s
13 parking or with bookings. We can fly to Devonport within an hour.” The latest scheduled “benchmark and glamping/luxury lodge tour” covers much of outback and coastal Australia, from Tasmania to Cape York and across to the Kimberley Ranges as well as King, Flinders, Kangaroo and Lord Howe islands. Prices vary greatly, from $694 for an air show at Temora, New South Wales, to the $14,555, 13-day Kimberley and Top End tour. Tours can also be tailored to suit and Kirkhope offers a day’s golfing with a crayfish lunch at King Island for around $700 a head. The “big tours” are roughly $1000 a person a day, including travel, accommodation and meals. “People can design their own tours,” Kirkhope says. “One group of eight booked a bigger plane for 17 days. It was similar to our Kimberley tour but changed to add extra days, including going to Darwin.” One recent booking came from an
being in the area at that time and scaring off the sharks. Other groups have been flown to outback stations, using them as a base for hiking. Canoeists were flown to Flinders Island with collapsible canoes so they could then paddle to Tasmania. Tour operators take over once the plane delivers customers to the various stops, although Kirkhope’s pilots also play a role in the daily activities, rather than just waiting around to do the flying. “The tours are our bread and butter and we get a real enjoyment from the outback tours,” Kirkhope says. Kirkhope and his wife Sandy live on a 140-acre “hobby farm” at Gembrook. They graze cattle and share a love of dogs, the current object of their affection being Cooper (Creek), a great dane/boxer cross. Also in keeping with his love of the bush, Kirkhope spent 15 years with the bush band, The Shedlevellers, and still entertains those around him by playing the guitar, mandolin, fiddle, and squeeze box.
We’re ready to go, says Tony Kirkhope on the steps of one of his company’s aircraft.
2911
American tourist who chartered a plane to Port Lincoln for a shark cage dive. “It was very expensive and he didn’t see a shark,” Kirkhope says, adding that he’d since read about a pod of killer whales
th eal H ss ine ancial s u B in al F ued at n o r val ers a .au 5o For ck or P eview 1 315 rs.com 8 R e Che ning all 97 spartn c n r Pla $500 flinde r ove il info@ ema
E
FRE
PrOfEssIOnal
PrOaCTIvE
COMMITTED
Taxation Consulting
Budgeting & Cashflow
Super & Pension Strategies
Business Advice & Coaching
Bookkeeping & Payroll
Self Managed Superannuation
Superannuation Including Self Management
Strategic Wealth Management
Personal Risk Insurances
Auditing & Corporate Governance
Investment Consulting
Estate Planning & Business Succession
Level 1, 405 Nepean Highway, Frankston PO Box 430 Frankston, Victoria 3199 Tel: (03) 9781 3155 Fax: (03) 9781 4859 Email: info@flinderspartners.com.au Web: flinderspartners.com.au 14 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | June 2015
port planning’s 50-year setback WHY BUY ELECTRIC HEIGHT ADJUSTABLE DESK? Simple - we are not made to sit. According to numerous research studies, you can shorten your life by up to 30% if you are constantly sitting at work.
The Benefits of Adjustable Standing Desks • Feel more energetic and active throughout your workday. • A height adjustable standing desk is the choice of smart businesses. • Burn more calories and reduce fatigue at work, as well as poor blood flow, obesity and more. • Improve office mood, collaboration, creativity, and more importantly productivity. • Reduce your workcover risk. • It’s an investment not an expense.
you is.... Our Offer to 800 Top ith a 1800 x w sk e D d n a St Electric Sit hite) o& (Beech or W lbourne Metr embly to Me ss a & ry e ’s liv a Free de Peninsula Are Mornington
$950
/6/15
Offer end 30
We have a full range of office furniture solutions for your office - please view www.melbourneofficesolutions.com.au for more information OR call our sales team. ****OUR PRODUCTS ARE FULLY TAX DEDUCTABLE ** ** Melbourne Office Solutions ABN 70 338 551 692
20 Peninsula Boulevard Seaford Tel. 1300 732 418 | Email. info@melbos.com.au
2915 2915
s s
Hopes are foundering for a booming economy in the southeastern suburbs that would result from an international container terminal being built at Hastings. The state government, intent on raising money (to fix railway level crossings) from leasing the Port of Melbourne, has virtually turned its back on any development in Western Port. Dozens of staff have been laid of from the Port of Hastings Development Authority, which has spent an estimated $30 million of $110 million promised by the former Liberal/National coalition that lost office last November. Now down to 14 staff, Ports Minister Luke Donnellan says the PoHDA is looking for “investment opportunities” to develop Hastings as a “bulk port”. While falling short of formally abandoning Hastings, the government’s move is likely to leave a significant vacuum in forward planning policies. A report commissioned in 2014 by Mornington Peninsula, Frankston, Kingston, Casey, Greater Dandenong, Cardinia and Bass Coast councils saw the port as a bonanza for jobs and manufacturing. The report says the port would have a beneficial economic impact of an average of $60 million a year in gross regional product over 30 years, providing an average 400 jobs a year over that same time frame. It says the expanded port would lead to an extra 5700 jobs by the mid-2030s and 15,200 jobs by the early 2050s. However, Victoria University researchers last February issued a warning that Western Port may not be the best option for a new container port. The Build it – but will they come? report cast doubts on the need for a port to accommodate the world’s largest ships. Revenue for the PoHDA from Patricks Stevedores has been in steady decline, with annual ship visits dropping from a peak of 600 20 years ago to less than 50 this year. Petroleum products and LNG (liquefied natural gas) are the only two bulk cargoes now coming and going from the port and environmentalists have already signaled their opposition to coal being considered an “opportunity”. In the lead up to its election last year, Labor was backing an area north of Geelong for the state’s next container port. After being elected the government announced that Infrastructure Victoria would assess the merits of developing either Bay West or Hastings. Under the terms of the proposed Port of Melbourne lease the government will be liable for compensation if any new port is developed to compete with Melbourne. If the government does not want to pay compensation, no container port will be built at Hastings or Bay West for the next half century. The Opposition is accusing the state government of lying over its claim to be searching for the best site for Victoria’s second container port. “Labor lied to both the Western Port and Geelong communities prior to last year’s state election when it assured them both it would take genuine expert advice [from Infrastructure Victoria] on where Victoria’s next port and the thousands and thousands of jobs that would be created with it, should be located,” Hastings Liberal MP Neale Burgess told the Western Port News. 23
June 2015 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 15
contributions
TOURS OFFER A ‘PLUNGE’ INTO THE PENINSULA
online networking can work in many ways We are in a digital age: gone are Jessica Humphreys* the days when we only had the Social media consultant opportunity to network with likeminded professionals at monthly business events. Social media sites like LinkedIn, Twitter and even Facebook provide limitless opportunities for business owners to connect with one another at any time, in real time. While it doesn’t replace face-to-face networking it can certainly act as a complement. Online networking can work in many ways. You can follow up with people you met at an event, or you can actually ‘meet’ likeminded professionals online who have the potential to turn into real life connections. I will share a little experience of my own. Two years ago now
2917
After 15 years marketing some of the Mornington Peninsula’s iconic brands, freelance consultant Arthur O’Bryan has established a regional touring company. O’Bryan’s new venture Plunge offers personalised tours for visitors wanting to discover key attractions with a particular slant on wine history, produce and fine dining. “With the Mornington Peninsula recognised internationArthur O’Bryan’s tour business, Plunge, gives visitors ally by National Geographic as a taste of the peninsula’s wine a top tourism destination, the history , produce and market has well and truly opened fine dining. up for Plunge Tours, offering more tailored gourmet experiences,” O’Bryan said. “These are tours that delve deeper.” His signature ‘Grand Cru Vineyards Tour’ offers close and personal interaction with the pioneers of modern Mornington Peninsula winemaking. The journey begins tasting the wines of Elgee Park Vineyard,
which was established in 1972 and continues with visits to the established domains of the region; Stonier (established 1978) Paringa Estate and Main Ridge Estate. The final call is at Moorooduc Estate where a tasting with Rick McIntyre reveals some of the peninsula’s most idiosyncratic wines made with wild yeast ferment, a process Moorooduc pioneered in Australia. The tours would suit small groups of corporate clients. See www.mpplunge.com.au for details.
Finances stretched to the limit?
Southern Partners 1140 Nepean Highway, Mornington Ph 0437 695 491 / 59 77 0680 jconquest@wallsbridges.com.au www.wallsbridges.com.au
Turn your invoices into instant working capital today.
At Fifo Capital, there’s no need to wait for invoices to be paid. Simply turn your unpaid invoices into instant funds.
Our difference > > >
24 hour approval No real estate security No locked in contracts
> > >
Advances from $5,000 No set-up or exit fees No fuss
We’re fast flexible and committed to helping your business succeed. Contact Sav Neri today on 1300 852 556 or 0435 373 033 and he’ll show you how to get your business growing again
w fifocapital.com.au e sav.neri@fifocapital.com
Jacqueline Conquest (Principal) LLB, BSc, Accredited Family Law Specialist, Collaborative lawyer
As an experienced family lawyer I can not stress enough the importance of having the right advice early, not only about the law, but about options available to resolve family law issues. • Accredited fAmily lAw speciAlist: We are trained in mediation and collaborative practice which means we can offer you better options to resolve your family law matter out of Court. • All aspects of estate law: We can help you put in place proper legal measures to best protect and provide for your loved ones and family in the event that something happens to you.
16 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | June 2015
2918
If you’re offering credit terms to your customers, waiting 30, 60 or even 90 days to be paid can really stretch your finances.
*Jessica Humphreys operates Social Concepts, a social media consulting business. Send questions to Jessica@socialconceptsconsulting.com
OPTIONS IN SETTLING LAW ISSUES I’ll see you in court…! What options are there to settle family law issues? Family separation is an emotional and difficult time. Often clients tell me that they felt reluctant to speak to a lawyer in the early stages of their separation as they did not want to inflame emotions. However, from my experience, getting legal advice in the early stages of separation is beneficial because it equips you with information about where the law stands, what options are available to resolve matters, and where your matter is headed. Depending on the situation, engaging with the court process is sometimes a necessary step. If a court application is brought, it needs to be done properly and the right evidence and arguments put before the judge. However the court does not hand out justice like Judge Judy. The court needs to consider all relevant evidence put before it by both sides together with expert reports. It is generally a lengthy, costly and time consuming procedure. There are many other options to resolve family law issues which include:1. With the benefit of legal advice, talking directly with each other to come to an agreement; 2. Attending mediation with an experienced family law mediator; 3. Engaging in a collaborative law process which means hiring lawyers specifically to help you work together (or collaboratively) to reach agreement; 4. Utilising lawyers to exchange information between you and reach agreement. A good family lawyer can inform and guide you through all the options available to you and help you best work towards resolving your situation. * Jacqueline Conquest is a lawyer, accredited family law specialist, and collaborative lawyer. She is founding principal of the firm Walls Bridges Lawyers, 1140 Nepean Highway, Mornington. Phone 03 59 770 680.
C h a rt e
rs &
tours
Why
spend and hour or more in the Car to get to those other airports?
KirKhope aviation
is right on your doorstep and With a seleCtion of immaCulately maintained airCraft We Can fly you quiCKly and safely to Where ever you need.....
a short breaK aWay from it all, an interstate site visit or even a longer bespoKe journey – We Can do it all. our luxuriously appointed airCraft alloW you to sit baCK and soaK up the journey or even maKe those last minute preparations for your site meeting – all Whilst being safely transported to your destination With out the added pressures of driving, parKing or ConneCting serviCes. Call us noW to disCuss your requirements and let us Customise your trip just for you! Be
in the
draw to win a scenic flight with champers
&
chocolate!!
Tel 1300 20 61 30 Fax +61 (3) 9580-4838
Simply
receive our monthly e-newS quote:
Bt615
Hangar 7, Second Street, Moorabbin Airport, 3194 2920
I ‘met’ Nicole Matejic – social media extraordinaire on Twitter. Since then we have connected in real life or ‘IRL’ as we call it online, a number of times. This online networking experience has proved fortunate for us both. Nicole was a guest lecturer for my Monash University class last year and she recently interviewed me for her new podcast ‘The Social Media Rules of Engagement.’ More and more businesses are also jumping on board with the ‘groups’ function or mentality many social media sites including Facebook and LinkedIn have to offer. Local women’s networking group Soar Collective keep their members engaged through a member’s only Facebook page, where members can collectively share their thoughts, events, services with other group members. A number of professional and personal relationships have been facilitated through this particular online networking set up. Remember, it’s not all about LinkedIn. Various social media sites provide you – as a business owner – with the opportunity to connect, follow and build a relationship with other individuals in business.
June 2015 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 17
health
Momentum gets impetus My first proper job wasn’t in health; it was in newspapers, as a sports reporter. This was in the early 1980s, way back in a pre-internet world that now seems so callow, unsophisticated and long ago. Although I eventually departed the media in preference for a field for which I had a greater passion and in which I spend most of my time, I retained a peripheral involvement in the AFL writing for and editing the magazine Inside Football (yes, it is still going after 45 years, which is no mean feat for a weekly publication in a saturated market). I mention this only to establish some credentials for the claim I’m about to make, one that in my earlier life would be heresy. I think that an entire industry of football players, coaches, former players, former coaches, professional advisers, observers and commentators, and the legion of AFL fans, do not understand the game. Yes they all know the rules, the scoring objective, that stuff—of course they do— but people are missing a fundamentally important thing about it. And in their misreading of the game, they make many false declarations and arrive at misguided opinions, they treat players and coaches unfairly, and fill media platforms with a lot of unsubstantiated rubbish. A lot of what you read and hear is plain wrong. Because this is a health column, I will add at this point that if you follow football, and like most people find it equal parts enjoyable and exasperating, then this insight could even transform your own mental health (add smiley face here). For starters you won’t have to cop another minute of footy panel shows offering expert “insight”. Sometimes I switch on the telly to watch those shows and roar with disbelief. Entertaining, yes. Accurate? Hardly. In my view, no-one can satisfactorily explain this sport, or any other, by making random observations drawn by sifting through statistics—counting tackles, or clearances, or inside-50s—or by comparing game plans, or citing six-day breaks between fixtures, or any other intangibles like the relative fitness levels of teams. Many try valiantly, and are well paid for doing so, but they leave us none the wiser.
Michael Ellis*
Chinese Herbalist
A lot of what you read and hear is just plain wrong What factor seems to explain one game fails on the next one. As a result, the level of understanding out there among general fans is non-existent. People just have no idea why teams win and lose. Fox Footy’s analyst David King has a deep understanding of the mechanics of the game, and a fine ability to convey it, but even he misses this trick. Analysing football results using the stats sheet, as he does, is like seeking spiritual enlightenment by studying the stories in religious books. If you take them too literally you miss the big picture. So what’s this big secret that nobody gets? It’s this: football is not just a ball game. It is a momentum sport.
18 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | June 2015
Winning or losing at this level of sport (any level, actually) depends on your team’s ability to generate and maintain what psychologists call positive momentum, and to avoid the opposite state, known as negative momentum. Research demonstrates that when players experience the two momentum states — ositive and negative — there is a direct, real measurable effect on their confidence levels (or “belief”) and also on their physical output. In any competitive event, what’s happening in the mind directly plays out in the bodies of every athlete involved. The main thing no-one grasped for years is the profound effect that negative momentum has on undermining energy, skills and teamwork. Often enough coaches allude ruefully to the notion that the game is played “90 per cent above the shoulders” without understanding why or how. If I were an AFL coach, I would declare my No.1 objective was to create positive momentum because, once you do so, everything else takes care of itself. There is far more to say about momentum and its positive and negative effects than is available in this space. All I can do is invite you to Google the research. And to say that in the past five years as I viewed football as fundamentally a game of momentum, I came to realise that this insight explains just about everything that happens in and around it. It explains why results go they way they do; why upsets occur. Why team A can beat team B, which beats team C, which then beats A. It explains how players in defeated teams appear to be bereft of energy and effort, and lacking motivation, or short on fitness, when none of those things is actually the case. And how we draw all sorts of false conclusions about players and coaches, especially their effort and attitude, as a result of our misreading of the play. You may have noticed that in the past year coaches and commentators have started talking more about momentum. It’s a real, tangible force in sport. You could say that finally our understanding is gathering a certain impetus. *Michael Ellis is a registered Chinese herbalist in Mt Eliza. Visit www.mtelizaherbal.com
MARKETS
The big box theory BHP-Billiton and Woolworths are very different businesses, but they have one thing in common: neither appears to me to do particularly good market research. Richard Campbell* Stock Analyst
words supply is more than the market needs. BHP is doing much the same. It and the other Pilbara iron ore exporters are producing more than China needs. They believe China’s steel needs will rise by another 20% to one billion tons by 2030 (They said 2020 two years ago). As a theory this disregards facts like China’s great housing excess, its pervasive industrial over-capacity, its massive bad debt and also futuristic technologies now arriving like carbon nanotubes which make cement 40 to 50% stronger and more moisture resistant. A second blow will be the new aluminiumscandium alloys that make aluminium as strong as steel, but much lighter and far less corrosive. This is not to say that the BHP executives are dopey, but simply that there is always a risk that a strong theory can override obstinate fact. BHP and Rio compounded their conviction that China’s steel market would revive by believing that their own ore would replace most of China’s, much like Woolworths believed Masters would bury the remaining chains. This idea has come unstuck now that China is lending Brazil’s state company Vale $4 billion to increase its iron ore supply by 36%. To make matters worse, Vale’s ore grades are higher and, worse still, Chinese
* Richard Campbell is Executive Director of Peninsula Capital Management, Tel. 9642 0545. rcampbell@peninsulacapital.com.au
2912
In 2011 Woolworths launched Masters, a big box hardware chain designed to outdo Bunning’s, the highly successful chain owned by Coles-owning Wesfarmers. Following ideas developed by US retailer Lowes, itself a rival of Home Depot (the model for Bunning’s), the new chain had a game plan. It was to knock out Mitre 10 and Home Timber as they and Bunnings had knocked out the smaller family stores a few decades before. This required a range, layout and a less blokey look that would appeal more to the other half of the market – women. Enough time has passed for a verdict. Masters has turned out to be a spectacular flop. Losses are running at a rate of $220-240 million a year and rising, which suggests Woolworth’s big box theory is wrong. For shareholders of this venerable and once reliable company, this raises questions. Is this just a stumble or something deeper and even delusional? Has the executive team foisted something on the public it doesn’t need? There are multiple reasons why Masters is failing – all visible. Of course one is that Bunnings continues to plant stores around the country, but at another level there has been deep-seated social and economic change. The generation that once would have renovated can’t afford housing and rents instead. Household incomes are static and, further, in this less buoyant setting, the remaining chains are hanging on. In other
companies may even invest in Fortescue to doubly ensure that Pilbara iron ore output keeps on rising so that the ore price keeps on falling. The lesson is that no company or economy can afford to behave like those basking sharks, which simply open their mouth wide enough to devour all the krill in their path. Economists call this “rent seeking”. This is a sneer which ignores how much investors seek stability and continuity, but it makes the point that simply capturing market share has its own risks especially when the rent payer in this analogy (China) turns out not to be a passive payer, but to have counter tactics of its own. Woolworths is now engaged in a sharp cost cutting program to rescue the situation which will put further pressure on the company while BHP directors, secure beliefs about China, press on with over-supply regardless of the reality. The alternative is a fact-finding mission. This could be by way of Beijing, the city whose mayor now says has air quality so toxic it is “unliveable” and then visiting the steel cities of Hebei and Liaoyang, which produce most of this pollution. The missionaries would learn that blast furnaces are being dismantled, that 10-year-olds are developing lung cancer, and they would note the continuing losses of China’s steel companies, even as the price of iron ore falls. They might also hear China’s leaders say China’s era of high growth is over and that China’s economic model is “unsustainable”. In short, they could do better market research.
June 2015| Frankston / Mornington Peninsula / Dandenong BusinessTimes | 19
networking
Sorting the frogs from princes In generating referrals for your business you are going to want to spend less time with frogs and more time with princes and princesses − and at the same time, make sure that you aren’t a “networking frog,” either. How do you become networking royalty and find other like-minded referral partners, avoiding the amphibians out there? Here are some tell-tale signs that you might be “kissing” a networking frog: • This person is always asking you for referrals, introductions, and favours but rarely reciprocates. • This person doesn’t seem to have the time to sit down and really learn about your business, goals, and ideal customers. • When you schedule face-to-face meetings, this person often reschedules the night before or the day of your appointment. • This person takes forever to return your phone calls and emails, if at all. • This person rarely goes out of his way to help you, and seems inconvenienced when complying with your request for assistance in making a connection. • This person often makes you feel like you’re just okay to be around, and may not be quite “big enough” for strong collaboration. • This person talks excessively about himself or herself and his or her business. Rarely does such a person ask you questions and rarely will that person listen to your answers. • When you do get around to sharing something about your business, the person quickly turns your comment into a chance to move the spotlight back on himself or herself.
Dr lvan Misner*
Networking specialist
In networking, you are simply going to have to kiss some frogs to find your true princes and princesses. • At networking events, this person is hunting for new prospects, shaking hands, and passing out as many business cards as humanly possible, moving quickly from person to person. • When you exchange business cards, this person, doesn’t even glance at your card, never makes a written note on the back, and quickly tucks it away in a pocket. • While you are with this person, he or she is always looking around to identify the next “target”, rather than focusing her attention on you with continued eye contact. You always feel a little slimy after an encounter with a networking frog. How can you be sure that you are a networking prince or princess and not a frog? The simple answer is to do the opposite of what the networking frog does. A great example of networking royalty is my friend, Jerry. He is always giving referrals and making introductions for his referral partners, many times before they even ask. Jerry is constantly going out of his
way to help people with their businesses, because he has invested the time and energy to learn what his referral partners are looking for in a potential client. When you talk to Jerry, you really feel listened to – he maintains eye contact and focuses on you. In fact, you almost have to force him to share about his business and how you can help him. You can count on Jerry to follow up on referrals you send him in a timely manner, and he returns your calls and emails within a day or two. If you run into Jerry at a networking event, he’s greeting new people with a smile, introducing them to others, and just being generally helpful. After an encounter with Jerry, you feel like royalty. That’s how to become quickly known for being a Networking Prince or Princess. Unfortunately, you may not be able to tell if you’re dealing with a frog in your first meeting with someone. It may take a little time to discover a person’s true networking nature, so keep your eyes peeled for the signs I have mentioned. Sometimes frogs are on their best behaviour at networking events. Their scales and warts reveal themselves later in follow-up interactions. In networking, you are simply going to have to kiss some frogs to find your true princes and princesses. Pattern your networking skills after my friend Jerry, and you will become known far and wide throughout the land as networking royalty. *Dr Ivan Misner is a New York Times bestselling author. He is founder and chairman of Business Networking International (BNI), the world’s largest networking organisation. Dr Misner is also senior partner for the Referral Institute, an international referral training company. Email: misner@BNI.com
BUSINESSES TWICE AS LIKELY TO GROW IF THEY’RE ONLINE, BUT HALF OF US AREN’T As if everybody didn’t know already, smart phones and the Internet combined with social media can make it easier to run a business and reach more potential customers. Federal Small Business minister Bruce Billson was on home turf pre-budget week in May talking up technology to about 130 business representatives at a Facebook-sponsored morning at Frankston Arts Centre. Billson said Deloitte Access Economics research showed that four out of five people checked online before making a purchase.
“Businesses that have an online presence are twice as likely to be growing and four times more likely to be hiring staff. “Despite this, less than half of our small businesses are online. These statistics are too important to ignore,” Billson said. In Frankston, 98 per cent of enterprises are small businesses. “The number of potential new customers these businesses could attract by taking their offerings online is extraordinary.” It was the third seminar hosted by the minister and all have aimed at helping small businesses harness technology to succeed.
20 | BusinessTimes Frankston / Mornington Peninsula / Dandenong |June 2015
The first two covered Google and EBay/ Paypal. Owners of three Victorian businesses talked about their success through Facebook and answered questions from the audience. Facebook’s own figures indicate that 10 million people use Facebook daily in Australia and 1.44 billion use it monthly around the world. More than 40 million small businesses globally have active Facebook pages, which represents a 10 million increase in just over 10 months.
Mercedes-Benz Vans. Ready for Business at Mercedes-Benz Mornington.
Mercedes-Benz Mornington
29 – 31 Mornington-Tyabb Road, Mornington (03) 5973/ Mornington 9688 www.mbmornington.com.au LMCT443 | 21 June 2015 | Frankston Peninsula / Dandenong BusinessTimes
2907
Mercedes-Benz Vans are proud to partner with Mercedes-Benz in Mornington. As the recent winner of the Mercedes-Benz Vans Rural Dealer of the Year, Mercedes-Benz Mornington is your local dealership for all your Mercedes-Benz Van requirements. With all models available to test drive visit Chris Thoday and the award winning team for a demonstration today, at 29-31 Mornington-Tyabb Road, Mornington.
MANAGEMENT
Articulating diversity The business case for diversity has been clearly stated and contemporary leaders generally acknowledge its value. However, when it comes to their daily behaviour, many leaders still fail the diversity test. So, what sort of behaviour is required to create and sustain a culture where diversity clearly adds to the business’s bottom lines? Firstly, leaders must clearly articulate their high level strategies and goals, not just for the overall business, but also for diversity. Without visible and frequent reinforcement of diversity strategies and goals, people in the business will just focus on the issues that the leader is communicating today. A personal commitment by the leader is critical to keep diversity as part of the daily dialogue with their people. You may recall an article last year, which argued that it is the intellectual diversity that is most important to create and protect within an organisation. Sure, intellectual diversity starts with an individual’s physical and personality differences, but it is the intellectual difference that enhances the quality of discussion and debate and improves business decisions. An individual’s feeling of being different is easy to supress below their feeling of wanting to be accepted by your peers, so great care is needed to ensure that individuals who are different are protected and encouraged to speak out when discussing business decisions. There is no doubt that this is difficult particularly for the leader who wants to minimise debate and make quick decisions. Unfortunately, these sorts of leaders quickly fail the diversity test when they cut off debate or put down individuals who may disagree with them. When someone is brave enough to express a view different to his or her leader’s view, they are giving a great gift that should be cherished. This willingness to speak out with a different viewpoint should be treated as a learning opportunity, where everyone in the debate can learn something that might help them to make a better collective decision. Most business strategies are the result of careful thinking that results in clear goals and processes. Unfortunately, diversity is different in that it requires not just the
Hamish Petrie*
Business consultant
Some leaders fail the diversity test by creating a culture of very similar people. head but also the heart to commit to it. Many leaders like to use their intellectual powers to prove their merit, but leadership of diversity requires the heart to contribute, too. People who are physically different feel their differences all of the time and they need to feel safe in their work environment before they will contribute fully. The leader who can use both their head and their heart to create a safe work environment will gain widespread support as a genuine leader who can be trusted. It is this trust that is needed to build the confidence of people to contribute fully. However, remember, that trust is a very easy thing to break and once broken, takes a long time to rebuild. Leaders need to be constantly aware of the impact that their behaviour and decisions are having on all of their people and to understand how this is affecting trust levels. Some leaders fail the diversity test by creating a culture of very similar people. These monocultures can be very strong and, classically, can be single gender people who all like each other and get along well. The downside is that these sorts of cultures often make huge mistakes because they all think alike and miss critical aspects of business decisions. Unfortunately, when someone who is diverse is introduced into this sort of culture, they tend to have to follow its cultural norms and behave just like everyone else. For example, when a woman is introduced into this sort of male monoculture, they often dress like the men, talk like the men and generally behave like the men so that they will be accepted. This sort of culture can only be broken by
22 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | June 2015
a brave leader who is willing to commit publically to changing it. Most leaders will try to increase their diversity when they are hiring new people, but the real challenge comes when business problems force downsizing. Businesses often try to build a pool of diverse potential future leaders but, when downsizing is needed, they are often the first to be threatened because of their shorter service. Protecting your diverse people should be a high priority so that the survivor population is more inclusive and filled with people who can strengthen the business’s ability to resist future problems. Recently I had a conversation with a HR professional who was struggling with his leader’s choices of which people to make redundant during a business consolidation. His leader had chosen to make redundant high potential diverse people who had recently joined the team and people who he did not like because they challenged him too much. Sorry, but his leader failed the diversity test, and will probably go on to fail the overall leadership test. If you want to lead a diverse team that will meet all of your business challenges, then you need to let your heart guide your head and behave in a way that protects the outliers and the people with differences by building an inclusive organisation that embraces everyone with a difference. Action Planning Guide: 1. Do you consistently communicate your overall diversity strategy and goals? 2. Do you routinely encourage and protect people who express a different viewpoint to yours? 3. Is your organisation a monoculture where everyone walks, talks and behaves similarly? 4. Have you identified the outliers in your organisation that should be encouraged and supported because of their differences? 5. Do you give diversity a high priority during significant changes in your business’s population, i.e. during hiring and downsizing? *Hamish Petrie had a 37-year corporate career including 25 with Alcoa Inc. His latest position was VP People and Communications for the Global Alcoa Corporation based in New York. He can be contacted at hamish@nitroworld.net or on 0404345103. © Hamish Petrie 2014
HASTINGS PORT SETBACK s s
14 “In a complete contradiction of everything it has had to say over the last decade about our state’s desperate need for a second container port, Labor did what it always does when private enterprise turns up with a bag of money – it got giddy and fell over. Instead of the thousands of jobs that would be created and tens of thousands of Victorian jobs that would be protected through maintaining our state’s logistics’ industry national leadership, Labor wants to trade our state’s future away for a short term financial fix.” Mornington MP David Morris said that dredging Port Phillip for large ships
“in 20, 30 or 40 years” would make the 2008 channel deepening project “look very small scale”. He said the previous Labor government had wasted so much time that Hastings could not be developed to meet the demands of international shipping and “the only action left … was to deepen the Port Phillip Heads”. “There can only be two outcomes from this policy decision: either Melbourne will surrender its role in trade to the rest of Australia or Port Phillip Heads will be deepened again and again. Any way you look at it, it is a bad decision.” Frankston City mayor Cr Sandra Mayer sees the decision as a further economic blow to the region.
“After six months under Labor the south-east Melbourne region is going backwards, with major road, rail and now freight projects being scrapped, and the peninsula environment and tourism industry again under threat from dredging,” Cr Mayer is calling on the government to make “a serious injection of funds from the Jobs and Investment Fund and the Regional Jobs Fund into the south-east Melbourne region, or else our residents will have every right to feel forgotten about after helping deliver Labor into power”. The Liberal National Coalition supports leasing of the Port of Melbourne in conjunction with the development of a second container port for Victoria.
businesstimes directory BOOKKEEPING
SECURITY
Services include: Accounts Payable/Receivable Bank Reconciliations Payroll Tax Planning Strategies BAS Preparation & S E C R E TA R I A L S E R V I C E S Financial Reporting Year End Processing P: 03 5976 8768 GST Registrations M: 0427 756 304 2925 W: www.radbookkeeping.com.au Myob Training
Rad Bookkeeping
DESIGN
2928
Get a free Quote Call 1300 66 11 99 www.eclipsesecurity.com.au SOCIAL MEDIA
Building Design Drafting Services
Building Permits
2916
P: 03 5977 1201
HAIRDRESSER
jessica@socialconceptsconsulting.com www.facebook.com/socialconceptsconsulting www.instagram.com/socialconcepts
2926
Jessica Humphreys 0407 082 493
Town Planning
PHOTOGRAPHY
hair on barkly
2924
we use and recommend KEUNE products
2927
Ph 5975 2397 Shop 3/74 Barkly St, Mornington Victoria 3931
W: www.haironbarkly.com.au E: info@haironbarkly.com.au June 2015 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 23
A Voice For Business
76 Reid Parade (PO Box 428) Hastings VIC 3915 P 03 5979 7744 F 03 5979 7944 e info@businesstimes.net.au
DO YOUR THING WITHOUT DO YOUR THING DO YOUR THING CHASING WITHOUT WITHOUT SIGNATURES CHASING CHASING
SIGNATURES SIGNATURES
To the Business Owner
DocuSign is just one of the time-saving business apps available at Telstra Business Centre Mornington Sign, send and save documents on the go with DocuSign. It’s just one of several hand-picked mobile apps available through Telstra, designed to save you time and improve productivity. So you can get on with doing your thing.
DocuSign is just one of the time-saving
Try DocuSignapps free foravailable 30one days of (data charges may apply) DocuSign is just the business attime-saving Telstra at Telstra.com/businessapps
business available at Telstra Business apps Centre Mornington Business Centre Mornington Telstra Business Centre Mornington
Sign, send and save documents on the go with DocuSign.
7/1 Mornington - Tyabbhand-picked Road, Mornington It’s just oneand of several mobile apps available Sign, send save documents on the go with DocuSign. 1300 692 874 designed to save you time and improve through Telstra,
It’s just one of several hand-picked mobile apps available productivity. So you can get with doing through Telstra, designed toon save you timeyour andthing. improve productivity. So you can get on with doing your thing. Try DocuSign free for 30 days (data charges may apply)
THINGS YOU NEED TO KNOW: Most kinds of documents can be signed with DocuSign but there are a few exceptions so please check that it’s for your situation before using. ™ and ® are trade marks and registered trade marks of Telstra Corporation Limited ABN atright Telstra.com/businessapps free for 30 days (data charges may apply) 33 051Try 775DocuSign 556.
at Telstra.com/businessapps
Telstra Business Centre Mornington Telstra Business Centre Mornington 7/1 Mornington - Tyabb Road, Mornington POSTAGE
PAID
2908
THINGS YOU NEED TO KNOW: Most kinds of documents can be signed with DocuSign but there are a few exceptions so please check that it’s right for your situation before using. ™ and ® are trade marks and registered trade marks of Telstra Corporation Limited ABN THINGS YOU NEED TO KNOW: Most kinds of documents can be signed with DocuSign but there are a few exceptions so please check 33 051 775 556. that it’s right for your situation before using. ™ and ® are trade marks and registered trade marks of Telstra Corporation Limited ABN 33 051 775 556.
AUSTRALIA
692 874 - Tyabb Road, Mornington 1300 7/1 Mornington 1300 692 874