business & Leisure: Frankston | Mornington Peninsula | Dandenong
partners with the smarts making clients’ tasks as simple as possible
March 2014 | $4.95 (GST inc.)
strategy planning today for long term success
golden touch
2491
why everything panned out for northern star Resources RENT YOUR OFFICE TODAY | Only a limited number of offices available so get in quick! RENT YOUR OFFICE TODAY | Only a limited number of offices available so get in quick! RENT YOUR OFFICE TODAY | Only a limited number of offices available so get in quick! • • • • •• •• •
Serviced Offices for 1-15 people from Serviced for 1-15 people from just $105 Offices per week Serviced Offices for 1-15 people from just $105 per week Virtual Offices from just $15 per week just $105 per week Virtual Offices from just $15 per week Fantastic onsite facilities including Virtual Offices from just $15 per week Fantastic onsite facilities including meeting rooms, restaurant, serviced Fantastic onsite café, facilities including meeting rooms, café, restaurant, apartments, laundromat & more serviced meeting rooms, café, restaurant, apartments, laundromat & more serviced apartments, laundromat & more
who/what/where
www.businesstimes.net.au
TONY MURRELL KEITH PLATT MARG HARRISON DAVID HILET MELANIE LARKE SIMON BROWN Design MARLON PLATT
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
Inside
Departments
5
News Busy Bites Networking gallery Business Directory
15
POKIE POLICY: Dandenong to update policy on gambling.
FRAUD WARNING: New payment methods may open door to cheats.
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
Make sure every business knows your business. For advertising, contact Marg Harrison on 0414 773 153 or marg@businesstimes.net.au
We might live on the same planet, but animals have a very different take on the world. PAGE18
Networking: Ivan Misner Social Media: Jessica Humphreys Excel: Neal Blackwood Health: Mike Ellis Markets: Richard Campbell Managing: Hamish Petrie March 2014
business
& leisure:
Frankston
n Peninsula | Morningto
rs partne the with ts smar tasks clients’ le Making as possib as siMple
| $4.95 (GST
inc.)
g | Dandenon
gy ate str for g today s plannin long terM
succes
uch n to out ing panned ces golde why everyth star resour for northe
a limited
rn
10 16 16 18 19 22
COVER: Chartered accountants Nadia Hughes and Shannon Smit say they’re bringing big city experience to Mornington. PAGE 12
in quick! so get quick! so get in offices available available so get in quick! number of of offices available from
number of offices 1-15 from | Only number • Serviced Offices for TODAY | Only aa limited from for 1-15 people people week Offices OFFICE TODAY Only limited per week for 1-15$15 per • Serviced just $105 Offices OFFICE TODAY | RENT YOUR per week from just $15 per week • Serviced Offices OFFICE just $105 including per week RENT YOUR from just per week • Virtual just $105 Offices serviced just $15 including onsite facilities RENT YOUR • Virtual facilities restaurant, Fantastic Offices from
www.facebook.com/BusinessTimesAU
people
•• Virtual onsite café, serviced including facilities restaurant, & more serviced • Fantastic onsite café, meeting rooms, rooms, laundromat • Fantastic & more café, restaurant, meeting rooms, apartments, laundromat & more meeting apartments, laundromat apartments,
Check updates online at www.businesstimes.net.au
2498
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.
4, 5 6, 7 8 23
Columns
2491
ISSUE 43 / MARCH 2014
FRANKSTON / MORNINGTON PENINSULA / DANDENONG
2 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | March 2014
It’s a pleasure doing business See your cashflow in real-time with online accounting software that’s simple, beautiful & smart. With Xero, your financial data is displayed visually on the dashboard so you get a clear picture of your finances – anytime, anywhere, on any device. For your free trial or to find out more, visit www.xero.com.
2499
February 2013 | Frankston / Mornington Peninsula / Dandenong | BusinessTimes | 3
COUNCIL BUSINESS SUPPORT
FIVE GET CITY GRANTS Frankston City Council’s unique Small Business Grants program will help five local enterprises over the next 12 months. During the six-week application period the Small Business Grants page on council’s website had more than 1700 unique visits, more than 100 phone inquiries were fielded and representatives of 50 businesses attended information sessions. “Aside from the impact the successful applicants have once they are up and running, just the fact we have a range of incentives for small businesses is drawing widespread attention to what Frankston has to offer,” mayor Cr Darrel Taylor said. “The five successful applicants are expected to create 25-30 new jobs in their first year, but with over 100 businesses taking a fresh look at Frankston through this process who knows what other opportunities will be created?” Included in the grants is an Australian first Green Business Grant, a
unique category that supports businesses producing goods or services that directly lower carbon emissions or reduce negative environmental impacts. Businesses selected by the independent assessment panel include: • Spicy Web Design (Home-Based Graduation Grant): develop high quality websites and provide online marketing, maintenance and security services to clients.
Our range of incentives for small businesses is drawing widespread attention to what Frankston has to offer – FRANKSTON MAYOR DARREL TAYLOR Located in the Business Growth Facility in the redeveloped Peninsula by the Bay tower. • Better Separations (Relocation Grant): relocating to the Frankston city centre from Hawthorn, Better Separations assists clients to stay out of court by offering meaningful mediation, counselling and dispute resolution services. • Humdinger (Relocation Grant): have
spent hundreds of thousands of dollars refurbishing the old Shakespeare’s Tavern into an intimate restaurant and bar providing a summertime retro atmosphere on Young St next to Frankston Arts Centre. • Marketing4Restaurants (Emerging Exporter Grant): provides restaurants, cafes and takeaways with digital marketing solutions, helping them find new customers and increase repeat business. Specialising in online bookings, websites and social media integration, and will be taking this product to the US market. • Hodei (Green Business Grant): is a design and supply company providing medical consumables to Australian hospitals and the biotech sector. They will launch two new products in 2014 – emesis bags and surgical hollowware, such as instrument trays, using a biopolymer alternative to fossil fuel-based products. For information about how Frankston City Council can help new or existing businesses, go to www. frankston.vic.gov.au/business.
Buying or Selling a Business? Then your business is OUR business.
When you want your business SOLD, we give you the best chance for the best price. Personal Service Professional Results Small to Large Businesses
ABEL
www.abelrealrealestate.com.au 4
|
BusinessTimes Frankston / Mornington Peninsula / Dandenong | March 2014
2495
Abel Real Estate was established in 1965 We are committed to your satisfaction as our customer. We specialise in business sales on the beautiful Mornington Peninsula, South Eastern Suburbs & Westernport regions.
Call or email us today:ABEL REAL ESTATE 9770 1033 Rob Serroni 0404 890 012 commercial@abelrealestate.com.au
local government
Dande to update pokie policy Poker machine losses topped $109 million last financial year in the City of Greater Dandenong, equivalent to $996 for every adult in the municipality. This is the highest rate of losses in Victoria, nearly twice the metropolitan level of $568 and seven times higher than losses in Boroondara, one of the most affluent localities in Victoria. Since the introduction of pokies to Victoria in 1992, more than $2.4 billion has been lost within Greater Dandenong (based on the dollar’s value in 2013). It is the second highest rate of cumulative pokie losses in Victoria, outside Melbourne City Council area. Pokie gambling losses for 2012-2013, sourced from the publicly accessible Victorian Commission for Gambling and Liquor Regulation (VCGLR) website, vary widely in Dandenong – from $2.4 million at the Albion Hotel to more than $17 million at Keysborough Hotel.
The figures may give pause to councillors considering a revised gambling policy, due in October. There are 933 poker machines operating in 15 hotels and clubs within Greater Dandenong, though 967 are licensed to these gambling venues. The state government has set a limit or ‘cap’ of 989 machines in the city. Frankston City’s cap is 954 pokies while the Shire of Mornington Peninsula is allowed 1127. Greater Dandenong has received several applications for increases in pokies in the past couple of years, the total of which fall under the state-imposed cap of 989 machines. In most cases a planning permit already exists so the forum for any opposition to an increase is a hearing before the Victorian Commission for Gambling and Liquor Regulation (VCGLR). The council says it recognises gambling
has “significant implications for the local community in its contribution to financial stress, family tension and ill health and seeks to alleviate these consequences through the application of a revised and strengthened gambling policy”. Following the introduction of EGMs in Victoria in 1992, the number of gambling machines across the State has risen to 27,000, with annual losses exceeding $2.5 billion. Under the Gambling Regulation Act 2003 hotels and RSLs and sporting clubs must contribute 8.3 per cent of gambling revenue for activities and programs that benefit the community, including problem gambling programs. The two benefits combined have the effect of returning five cents for every dollar lost to the wider community. In Dandenong that represents $5.2 million of the $109 million gambling revenue las financial year. Greater Dandenong introduced its gambling policy in 2002 and reviewed it in 2005 and 2009.
The automatic choice. The all new Sprinter.
Delivering a load of firsts, the new Sprinter is setting the benchmark for the large van segment with a range of innovative technologies. And now with Safeguard, a service programme designed to protect your Sprinter from unexpected operating costs, the new Sprinter is the automatic choice for your business.
5 years Best Basic Cover
$16.18
^
Per week Based on 5 years / 150,000km
• Scheduled servicing • Operational reliability • Nationwide service • 24-Hour Emergency Contact
Mercedes-Benz Mornington
29-31 Mornington-Tyabb Road, Mornington (03) 5973 9688 www.mbmornington.com.au
2494
LMCT443
^Safeguard offer to approved business customers with the purchase of a new Sprinter between 1/11/14 - 31/3/14 on a 60 month Safeguard Best Basic Contract with monthly payments of $70.12 and total payable of $4,207.06. Not available with other offers. Full terms, conditions and exclusions of Safeguard maintenance and repair cover available at your nearest authorised Mercedes-Benz dealer. Safeguard is provided by Mercedes-Benz Australia/Pacific Pty Ltd ACN 004 411 410.
March 2014 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 5
BUSY BITES
Card carriers It might be the digital age, but it seems there nothing as reassuring as a business card to introduce yourself or provide contact details. A survey of more than 1000 businesses by Sydneybased DesignCrowd revealed that 88 per cent handed out business cards at networking events, meetings and conferences. It seems business cards are deeply embedded in business culture and send out reassurances that “we’re serious about wanting to talk further and … the company is well established”. The January survey included small businesses in Australia, UK, and the US.
Award for CEO Greater Dandenong Council CEO John Bennie was awarded the Public Service Medal in the 2014 Australia Day Honours. The medal recognises outstanding service of government employees. Mayor Cr Jim Memeti said Mr Bennie had advocated to advance regional initiatives like the Port of Hastings, upgrades to the Dandenong rail line “and a wide range of projects that contribute to Victoria’s growth and Sustainability”. Mr Bennie chairs the Southern Melbourne Regional Development Australia Committee and a member of the Ministerial Advisory Committee for Public Libraries.
SWEET TREATS BEAT EXTREME HEAT Dealing with your IT company should be cool and sweet. At least that’s what Seaford-based Extreme Networks thinks. Extreme ran an appreciation day and hired a Mr Whippy van to visit their customers, handing out free ice creams for staff and other customers. Extreme Networks’ general manager Tina Eling said: “One of our key values is fun, and we thought this would be a fun way to talk to some of our customers and even find some new customers along the way.” This time the Extreme Networks’ ice cream van only visited customers in Seaford and Carrum Downs. But keep an eye out because they may be spreading their cool treats further afield.
BUYING POWER DOWN AS COSTS RISE Australians are spending more on mortgages, bank fees and car expenses like petrol, but less on travel, home furnishing and kids’ entertainment compared to a year ago, Pocketbook’s February Consumer Spending Series report reveals. Pocketbook, a free online service used by more than 50,000 Australians to manage their spending, aggregates users’ bank accounts, credit cards and loans to provide a single view of their spending. An analysis of the aggregate data of ‘Australians spend on Pocketbook users average 90 cents a day for January, 2014, on bank fees’ compared to January, Pocketbook February Consumer 2013, revealing the Spending Series Report. following trends: • In January, 31per cent of users spent more on discretionary expenses than they earned in income, compared to 60 per cent in December. • Australians spend on average 90 cents a day on bank fees. • Online purchases averaged $123, compared to
The Mr Whippy van hired by Extreme Networks to treat their customers and neighbours.
$79 for offline purchases. • Mortgage or rent payments made up 25 per cent of Australians’ total spending in January (up from 23 per cent a year earlier); petrol and car costs increased to 10 per cent of total spending (up from six per cent last year). • Spending on kids’ entertainment dropped from three per cent of total spending to less than one per cent while travel-related spending declined from 10 per cent to six per cent and home furnishings dropped from seven per cent to four per cent. • Australians are paying more off their credit cards after the Christmas binge, ending January having made on average $75 more in repayments than they racked up in debt. • Online and offline spending is down almost 40 per cent compared to the Christmas period. • Top five online retailers: Apple, Amazon, eBay, Appliances Online, ASOS. Top five offline retailers: Bunnings, Myer, Big W, Kmart, IKEA. Woolworths is the dominant supermarket (46 per cent share of wallet; $51.93 average shop), ahead of Coles (43 per cent; $44.68) and IGA (nine per cent, $34.50).
ss regularly share busine e W . ok bo ce Fa on esAU Follow us ok.com/BusinessTim bo ce fa w. w w s: tip d stories, events an are you would like us to sh If you have something times.net.au act us marg@business nt co se ea pl ok bo ce on Fa g). ; 0414 773 153 (Mar Call us on 5979 7744
6 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | March 2014
While mobile phone technology makes it easier for retailers to receive payments, it is also wide open to fraud. Shrinkage - loss of stock due to shoplifting, employee theft, fraud and paperwork errors – costs the Australian retail industry over $2 billion a year, and the latest research coming out of the Australian National University warns thieves will be at the forefront of using, and abusing, the new payment methods. A research paper, Staying Ahead of The Game, by Dr Emmeline Taylor, senior lecturer in criminology with the ANU’s arts and social sciences college, focuses on shrinkage while assessing the benefits and risks of new mobile technology in retail. “The introduction of any new technology, service or process will ‘Emerging technologies generate a range of risks, vulnerabilities, in retail is set to security issues and dramatically change training needs,” Dr the way we shop’ Taylor said. “We saw this with Dr Emmeline Taylor Criminologist, lecturer ANU the introduction of self-checkout in Australian retail, which redefined the retailer customer dynamic, but also increased the number of ways retailers suffer losses. “We can expect similar hiccups with the introduction of new mobile scanning and mobile payment systems, as they create a new set of shrinkage problems.” Dr Taylor predicts fraudsters will use mobile phone technology “because the security protocols are not as mature as e-commerce or in-store payment systems”. “Retailers will need to ensure that any potential security risks are anticipated and safety measures are put in place. “The traditional staffed checkout isn’t going to disappear, but there are a range of other point of sale
methods that are becoming increasingly popular. The use of emerging technologies in retail is set to dramatically change the way we shop.” Mobile technology that may soon appear in a store near you includes: • Customers using an app to convert their smartphone into a scanner. The list of scanned items is downloaded at a pay station, and customers then pay by cash, card, or by using their smartphone as a “mobile wallet”. • Customers using in-store devices such as a tablet to browse and select items before paying. • Customers using store-owned hardware such as a handheld scanner, or a touchscreen tablet fixed to a shopping trolley. After scanning items customers take the scanner and items to a kiosk or checkout station, where the purchase information is downloaded and payment is made. The report, Staying Ahead of the Game, is available at www.ecraustralia.org.au/publications
child carer menzies changes role Menzies this year will hand over its a residential care operation and become a grant-making organisation in Frankston and on the Mornington Peninsula. The Frankston-based operation has been supporting children from its early beginnings in Melbourne in the 1860s and on the peninsula since 1901. President Georgia Symmons said the Department of Human Services would assume responsibility for children in Menzies homes and appoint a new provider. Menzies is expecting a hand over to the successful tenderer in the middle of the year. “This new way of operating will mean more money invested directly into a range of programs and projects that directly support the young people’s needs in Frankston and on the Mornington Peninsula,” Ms Symmons said. She said support requirements for young people in care were increasing in complexity and smaller organisations like Menzies were limited in the range of support that could be provided.
We custom design and build our websites, and provide complete online strategies to ensure the success of your business.
Vehicle recognition Women prefer small hatchbacks and SUVs while men prefer utility and off-road vehicles. Analysis of 6000 new car sales by the online car buying company Autogenie found that popular models such as the Mazda3 had broad appeal, but certain cars were more popular with female drivers than male. Women were more likely to buy a Holden Barina, Toyota Kluger or Mazda6, while the Ford Mondeo, Ford Ranger and Toyota Hilux were clearly more attractive to men. Toyota and Mazda were the favourite car brands of men and women respectively, with their combined sales accounting for nearly one quarter (23%) of the total sales in 2013. General manager Shiju Thomas said the survey showed men were more varied in their choices “which could indicate that women consulted family and friends about purchases and stick to brands that they know and trust, while men are possibly a little more adventurous and more likely to choose a car that will help them stand out from the crowd”.
Dande building permits The total value of building permits issued by the City of Greater Dandenong between October and December, 2013, was $200,174,309.
2489
fraudsters adapt to TECHNOLOGY
WEB DESIGN | WEBSITE MAINTENANCE | ONLINE MARKETING
spicywebdesign.com.au phone
1300 734 802
info @ spicywebdesign.com.au
March 2014 | Frankston / Mornington Peninsula / Dandenong | BusinessTimes | 7
NETWORKING gallery
1
2
3
4
5
6
7
Eyewear As Individual As You Are Now stocking
BORSALINO
Limited Edition
Ph 5975 3235 57 Main Street, Mornington
MainStreet Eyecare 2490
8
This is Your Opportunity
After 28 years internationally and 15 years in Australia BNI is the world’s most successful Referral Organisation. Members in this region reported over $9 Million in generated business from BNI last year. We build referral networks around your business and you benefit with long term referral partners that lead to business and profit growth. Why not attend a meeting your local area where you can meet and connect with other local business and see what opportunities await you and your business. For your nearest group see our website or call 9782 0555
8 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | March 2014
2506
Peninsula Business Network members gathered for a regular breakfast meeting at Barmah Park, Moorooduc, on Tuesday 11 February. Guest speakers were from the business units of Frankston City and Mornington Peninsula Shire councils. Pictures by Daryl Gordon, of The Biz Photography. 1. Susan Voss, Craig Robinson (Robinson Voss Partners Accounting), with Aled Roberts (Almahurst Business Solutions) 2. Scott Teppen (Teppas Tinting), and Paul Simpson (First Choice accounting). 3. Peter Horan (Citracom Pty Ltd), David Extance (Signorama Frankston) and Wolfgang Bottcher (The Grout Doctor). 4. Peter Glanz ( First Class Accounts) Carol Campbell (Nepean Industry Training), Wade Farnsworth (Nepean Industry Training). 5. Janet Guillot (Pier to Pier Heating and Cooling), Adrian Hart (Endota Spa, Red Hill), and Rod Fay, a chartered accountant. 6. Ron Chowanetz (Vehicle & Equipment Finance Specialist),Gary Ebbolt(Melbourne Office Solutions),Sue Pilkington(So Much Potential). 7. Dandenong retailers’ Association had its first meeting for the year at the Ramada Encore Hotel. At the Tuesday 4 February meeting are, from left,Margaret Weightman, Richard Shurman (Star News Group) and Cr Angela Long. 8. Also at the retailers’ meeting are Tapha Faye (Tapha Eelectronics), Greater Dandenong Council CEO John Bennie and Aaron Mashano (Leaders of Tomorrow).
9
10
11
12
13
14
9. At the Ranelagh Club, Mt Eliza, networking breakfast on Friday 31 January, are Tanja Rodingen (Movement Meditation) and Niki Seagren (Inspire Tribe). 10. Sam Riley (Intermo Consultant) and Robert Lindsay (Southern Cross Cultural Exchange). 11. Mt Eliza Business Network Wednesday 5 February meeting at Grazen Cafe, Mornington, Caroline Buffinton (Aurora Creative) and Sandra Watt (Bay Fish ‘n’ Trips). 12. Also at the Mt Eliza meeting are Richard Carroll (Carroll, Goldsmith Lawyers) and Tony Papadopoulos (Tony Papadopoulos Graphic Design). 13. BusinessTimes in conjunction with Extreme Networks held a Facebook seminar on Wednesday 12 February for more than 80 business people at Narre Warren. James Eling (Extreme Networks) spoke at the seminar. 14. Cricketer Dean Jones was guest speaker at a lunch held by Optus Business Solutions, Carrum Downs, on Friday 21 February. With Jones at Long Island Country Club, Frankston, are Jennifer Hughes, Stephanie Lidemann, Emma Papas and Ashlee Boaler (Optus staff ). 15. Sachin Nischal is congratulated by Jones on winning the door prize - a signed cricket bat. 16. Also at the lunch are Sam Hogan (Truphone) and David Robertson (Ultimate Tiles).
email marg@businesstimes.net.au if you have something to share.
16
15
its t me
Latest Networking Galleries www.businesstimes.net.au
Working with you to produce high quality promotional products and help your business stand out from the crowd.
14 www.galaxyprint.com.au
76 Reid Parade, Hastings Vic 3915
2507
to ConneCt with your Customers
Call 1300 13 75 73
artroom@galaxyprint.com.au
March 2014 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 9
NETWORKING
Office health makeover
a focus at BNI, but after my diagnosis, it was even more important. Mental attitude has such a profound impact on health that we started a “daymaker initiative” based on David Wagner’s book, Life As a Daymaker. The focus on making someone else’s day better really captured the interest of the BNI staff. The number of compliments flying around the office, little niceties and random acts of kindness soared after I provided Wagner’s book to everyone and held a staff meeting to introduce the initiative. Simply creating a positive environment can make your office a healthier place to be. What will tell you your office is in need of a health makeover? The signs include negativity in the workplace. People who do not feel well overall tend to have a more negative outlook on life . . . both personally and professionally. Also, If one person gets a cold or flu, many others get it. However, when everyone’s immune system is strong, colds and flus do not get passed around quite so easily. At BNI we focus on building health with strategies to build up the staff’s own immune systems to prevent the spread of colds and flus. I found that the key to moving my staff into a healthy paradigm at work is to make incremental changes, rather than coming in all at once and making sweeping changes.
When the founder and chairman of an international company is diagnosed with cancer at the age of 56, it is not usually expected that an announcement would be immediately made to all the clients and field operations around the world. But that’s just what I did. I began blogging, discussing my health, the physical and emotional struggles I faced, as well as the challenges of being the owner of a multi-million dollar business all while working to heal from prostate cancer. I decided to not only transform my own health habits, but my office’s as well. After implementing a few healthy tweaks around the workplace, I discovered that my staff became more energetic, more productive, positive and creative. Now in remission, I’m on a mission to help other workplaces become healthier and more successful. The key is to get your employees on board and ease them into these positive workplace changes. Most they’ll love right from the start, but a few of them might take a little getting used to. By making these small changes, many of which don’t cost much, you can cut down on sick days, midday doctor’s visits, and those infamous afternoon energy slumps. Install a water filtration system with hot and cold water. Having access to pure water, not plastic water bottles or tap water, will encourage staff to hydrate well. Hydrated brains are productive brains. Drinking soda, coffee and black teas dehydrate our bodies. Engage the entire office in a doctorapproved, body detox program. One of the very first things I did after receiving his cancer diagnosis was to complete
Dr lvan Misner*
Networking specialist
the 8-Day Detox developed by Dr. Bill Kellas at the US Center for Advanced Medicine. Doing a body detox helps the body eliminate toxins that can contribute to weakened immune systems, frequent colds and flus, which account for a lot of absenteeism. The BNI staff was invited to do this 8-Day Detox together. Nine of my staff members participated. Provide healthy alternatives at staff lunch and celebrations. If your lunches are centered on burgers, fries and shakes, consider adding some healthy alternatives – turkey burgers, whole wheat rolls, fresh juices and salads. Not everyone will eat the healthy food, but most appreciate having a choice. At birthday celebrations, include a fruit platter with the cake and ice cream. Start a walking club at work. You’d be surprised at how many employees would come early to the office to walk together. Walking in the early morning can be invigorating and give everyone a jump start on the day. At BNI a free weekly qi gong/tai chi class is held in a spare office over the lunch hour. I’ve found this gives my staff a chance to relax, refocus and refresh in the middle of the day. Keep morale high in the workplace. Having a strong morale has always been
*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.
business
ONLINE...UP TO THE MINUTE Connect with decision-makers who are sourcing their goods and services online. •Attractive rates. •High traffic positions.
& leisur
e: Franks ton | Mo rningto n Penins ula | Da ndenon g March
• Business news. • Business Directory • Fully searchable. • Back issues.
par n ers witt h th smar ts e
ACT NOW FOR PRIME SPOTS!
Makin g as siM clients’ task ple as possib s le
strat
egy
2491
gold CALL MARG HARRISON, 0414 773 153
www.businesstimes.net.au
10 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | March 2014
plannin g toda long terM su y for ccess
en to
why ev erythin fo
uch
r nort RENT YOUR hern st g panned ou RENT OFFIC YOUR RENT t ar reso E TODA OFFIC YOUR urces E TODA Y | On OFFIC ly lim E TO Y | On DAY ited ly aa lim | Only ited numbe
a limited numbe r of offi numbe r of offi ces ava r of offi ces ava ilable so ces ava ilable so get in ilable so get in quick! • Serv quick! get in qu • Serv iced Offices just $10 iced Offi • Serv ick! 5 per ces for 1-15 iced Offi weefor 1-15 people just $10 • Virtu k 5 per ces al Offi just $10 people from for ceswee Virtu •• Fan k 1-15 people from 5 per from al Offi Virtutast ceswee ic ons •• Fan k just $15 per from al Offi from meetast cesite facijust week • Fan tingicroom lities$15 from ons ite inclper meetast facijust udinwee s, café apa tingicroom onsite litie g k rtme s$15 , rest mee inclper facilitie wee udin s, café ting nts, aura apa g k s incl roomlaun nt, serv rtme , rest drom nts, udin s, café apartme at &aura laun g iced , rest mornt, drom nts, laun e serviced at &aura mornt, serviced dromat & moree
2014 | $4.95 (GS T
inc.)
STAYING IN TOUCH
Smile, you’re on camera internet to connect face-to-face while sharing content with staff, customers and suppliers, regardless of their size or location. As a web-based solution that works with most video systems and devices, Blue Jeans claims to make it easier and more cost-effective for businesses to adopt video conferencing, or make better use of video equipment. Telstra Business group managing director Will Irving acknowledges the pain of not being able to do business “with who you want, when you want”. “We understand that doing business across this massive continent is often hampered by the long distances you need to travel for face-to-face meetings. “In fact, 55 per cent of communication is visual – your body language and eye contact – and 38 per cent is vocal – your pitch, speed, volume and tone of voice. Using video can help build deeper levels of trust in shorter amounts of time, which
2486
Video conferencing has moved from a rare and expensive experience to a mainstream necessity for some Australian businesses. Changing times have made it mandatory to “be there”, on camera if not in person, when addressing such key business challenges as reaching customers and suppliers, enabling flexible working for skilled employees, competing in a global marketplace and or staff training. Research by Ovum (Video Collaboration Service Requirements: Australian SMBs, January 2014), a third of businesses surveyed use professional, business-grade video conferencing services, with another 34 per cent expecting to use it in the next 12 months. The research ties in with Telstra’s announcement of a cloud-based video conferencing and collaboration service through the Blue Jeans network. The service lets businesses use the
means you’re able to reach decisions more quickly. For example, one quick five minute video conversation could eliminate 15 back and forth emails. It is also a far more engaging medium for sales, purchasing or HR and training activities. “The flexible workplaces of today are more successful when employees working from home can see their colleagues and customers, and for local businesses to thrive in an increasingly global market, tools like professional video conferencing are an absolute must. With this new solution employees at work, at home, or on the road can connect face-to-face with their colleagues, partners, and customers whether they are in a boardroom, an office, a living room, or a coffee shop.” “As the service is hosted in the cloud, there’s no software or hardware to install or manage. You can connect up to 25 people in the same meeting, whether it’s from a conference room, or from their desktop or laptop computer, tablet or smartphone,” Blue Jeans chief commercial officer Stu Aaron said.
March 2014 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 11
COVER STORY: smart business solutions
In some ways, Shannon Smit is back where she was 21 years ago – working in an accountancy office in Main St, Mornington. But the similarity ends there. This time around Smit is in charge of the company housed in a building she built and owns in partnership with her parents. BY KEITH PLATT
The intervening years saw her specialise in tax advice on the world stage for one of the biggest professional services organisations, Ernst & Young (known as EY). “Tax problems are the same for big companies as they are for SMEs [small to medium enterprises]. We want to let people know that same level of advice is available here on the Mornington Peninsula – there’s no need to go to Melbourne.” The “we” used by Smit includes herself and Nadia Hughes, who on 1 January joined her as a business partner in Smart Business Solutions. The two had known each other professionally for a year before sealing the partnership. “It was really just a long interview,” Hughes says. The backgrounds of the two partners could hardly be more different. Smit grew up on a rural property in Red Hill, riding horses for recreation and attending the local primary school (Red Hill Consolidated) before moving on to Woodleigh at Baxter. Hughes is a former journalist from the Russian city of Omsk, in southwestern Siberia, “a city of big industry, a secret industrial city”. Smit’s family was involved in the local community, much as she is now at Mt Eliza, taking on fund raising roles for schools and sporting teams. Her time with EY began after “doing the usual thing, backpacking around Europe for six months”. Six months working in Prague was followed by two years in Amsterdam – where she met Dutch-born husband Marc, also an EY employee – and five years in New York. “I was working for some of the world’s leading companies and flying in and out of Europe every second week.” While studying accountancy at university
A par
Shannon Smit and Nadia Hughes, business partners in Smart Business Solutions, Mornington.
more than two decades ago, Smit worked in Main St, Mornington, for Bedford Davis and Stevens. After graduating she worked for EY in Melbourne until qualifying as a chartered accountant and heading off on her backpacking holiday. The subsequent overseas work experience last year contributed to Smit winning a transfer pricing solutions award, one of the Thomson Reuters inaugural Tax and Accounting Excellence Awards. Smit says that transfer pricing, or internal tax, is “the hottest international tax topic out there”.
12 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | March 2014
smart
n i p i h s r e n t r a
14
s s
rt business
“It’s basically an economic analysis of how profit is applied.” Before entering a partnership with Hughes, Smit was “out on her own” for eight years, building a steady list of international and local clients. “The tax principles are basically the same for SMEs and big companies and we can give local businesses this type of expertise.” Recognition of Smit’s knowledge came when she was one of six accountants invited to “consult” with top executives of the Australian Tax Office “to give our opinions on what needed to be changed … what problems we saw with the tax legislation”. “We spoke about the challenge for clients when applying the [tax] rules and how they don’t work from a practical point of view. The ATO people did say they would look into making changes.” At the same time Smit was starting to build her own practice “from nothing”, a big difference to many accountants who start out by buying into or taking over an existing business. “Basically, I walked away from EY. It was a big risk.” About two years ago she decided it was time to “team up” with someone. She initially thought about husband Marc, head of accounting policy at the National Australia Bank and board member of the Australian Accounting Standards Board, “but we decided to keep our distance – we’ve got a really good marriage”. “I was referred by a long term colleague to Nadia and we got to know each other over about 12 months,” Smit says, sitting alongside her business partner. They had “chatted a lot”, became friends and discovered a major similarity: high energy levels. “We’re the same age and have the same morals and values.” Nadia Hughes came to Australia in 1999 after meeting husband Steven while he was in Omsk teaching English as a part time “travelling” job. She opted to study accountancy believing that not having English as a first language would be detrimental to a career in journalism. Omsk, a city of two million, has buildings dating back to the 1500s and Hughes sees Australia as “a beautiful young nation, it has an innocence”. “Melbourne is a megapolis of the world with a beautiful climate and a different culture.
March 2014 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 13
cover story
The Smart partners 13 “I am very natural and, deep inside, a child. I felt misplaced in Russia, which can be aggressive. Here I have an overwhelming sense of comfort. “I felt very small in Russia despite having a bright career and many knowing me.” Once settled in Australia Hughes was quick to decide on career in accountancy, gaining a degree and becoming a chartered accountant. “Accountancy gave me a solid base and I know I’ll never be out of a job,” she says. And of her new partnership: “We want to break the perception that this level of expertise is only available in the city.” Back when they first talked about joining forces, Hughes said she made it clear that she would not be bringing any clients from a former employer. I would not steal clients and Shannon knew it wouldn’t work if I did. “We spoke about different projects and
s s
knew we had the same frame of mind. Shannon enjoys everything, she’s very brave and has the ability to sieve through obstacles, nothing stops her.” Hughes believes providing a client with knowledge is “very empowering”. “You give them a strategy and it’s like a big lighthouse. A metaphor would be like a GP identifying and going backwards, looking at the [patient’s] entire lifecycle. We make sure a client is in the best position possible.” And just like a GP, Smit and Hughes refer clients to specialists if needed: “We don’t want to be a Jack of all trades,” Smit adds. “We’re here for the long term and want to have a long term relationship with our clients,” Hughes says. “We make sure they have secure advice to run a successful business. We want to make our clients’ work as easy as possible, so their businesses runs like a Swiss watch.
We’re not novices to running our own businesses.” Smit has experience in property development, the latest being the Smart Business Solutions office in Mornington. “Not every property fits the textbook definition and my experience can help clients.” In partnership with her parents Smit bought the old fire station in Main St, something that was of interest to school friends of her two sons: “No one would believe the kids when they said their mum had bought a fire station.” The project was managed by Smit and her father Greg Taylor, a builder, and designed by J R Design, Somerville. Fireproofing and earthquake rules changed half way through the build, adding six months to the 30-month project. Actual building began in mid-February 2013 and finished in mid-December, with 90 per cent of the old fire station being recycled. “Only asbestos and the old kitchen
For Lease
1-15 Hartnett Drive, Seaford
BIG DEAL
17,674m2* 8,610m2* 9,064m2*
SEAFOR D RD
$35sqm Gross
HA RT NE TT DR IV E
ST YD LRO HO Outline indicative only +
+
+
Opt A: 17,674m * $618,590 p.a Opt B: 8,610m * $301,350 p.a Opt C: 9,064m * $317,240 p.a Outgoings borne by the Lessor 6 roller shutter doors Office accommodation Close to freeway 400 cars on site Fully sprinklered 1200 KVA substation on site * Sizes approximate + Gross 2
26.8o Angle
26.8o Angle
C: 46 M: 0 Y: 100 K: 0
26.8o Angle
26.8o Angle
C: 46 M: 0 Y: 100 K: 0
26.8o Angle
26.8o Angle
C: 46 M: 0 Y: 100 K: 0
26.8o Angle
9775 1535 C: 46 M: 0 Y: 100 K: 0
26.8o Angle
C: 46 M: 0 Y: 100 K: 0
C: 46 M: 0 Y: 100 K: 0
C: 46 M: 0 Y: 100 K: 0
nicholscrowder.com.au
2
C: 46 M: 0 Y: 100 K: 0
26.8o Angle
C: 46 M: 0 Y: 100 K: 0
26.8o Angle
C: 46 M: 0 Y: 100 K: 0
Michael Crowder 0408 358 926 1 Colemans Road Carrum Downs 3201
14 NICH398_1_Harnett_Seaford_BusinessTimesHP_horizontal_V1.indd | BusinessTimes Frankston / Mornington Peninsula / Dandenong | March 2014 1
2492
2
25/02/2014 3:49 pm
went to landfill,” Smit says, attributing her insistence on minimising waste as “the Woodleigh aspect”. This “aspect” has gone into the installation of rainwater tanks under the rear car park, double glazed, high-energy windows that reflect the sun and retain internal heat, installing 16 air conditioners throughout the whole building to control climate in individual rooms. It also went into the interior decorating, using the two Smart Business Solutions corporate colours – blue and maroon – and black and white. The building is fully let, with the Bays Hospital taking up the entire third floor for consulting rooms. Synergies will probably be forged with the anchor tenant, with Smit and Hughes wanting to let “medical professionals know we’ve have a lot of expertise in their area”. Inside their own offices, the six staff members are equipped with powered desks that can be brought up to standing height (adding years to life, according to health studies). One desk is equipped with an exercise bike. While they often work at clients’ premises, a large screen in the meeting room can access computer files for discussion. And of course they have a smart solution to being on the ball even when out of the office: “We can also log in from anywhere, so it doesn’t matter when a client calls if we’re out,” Smit says, brandishing a smart phone full of apps.
Shannom Smit collects the 2013 Transfer Pricing Team of the Year Award.
For Sale
By Tender Closes Thursday 27 March at 5pm 600 Frankston-Dandenong Road, Carrum Downs
FLEXIBLE TERMS
Prime Island Site MA
LIBU
CIR
34,660m
T
A D
2
CUI
O
YAZ A
ST O K
RD
A N
AMS
FR
LATH
N
-
D
A
N
D
EN
O
N
G
R
KI W AY
Outline Indicative only
Land: 34,660m * 3 street frontages Permit to construct 24 showroom/warehouses of 15,528m including 341 car spaces Situated next to Masters, Pet Stock and Frankston Yamaha Large scale development or subdivision STCA *Sizes approx 2
2
Michael Crowder 0408 358 926 Geoffrey Crowder 0418 531 611 2492
Peter Blake 0419 308 080 Andrew Smith 0407 936 969
March 2014 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 15
2485
stop broadcasting and engage with followers
Empowering Quality Businesses We can empower your business with a range of service; • Payables • BAS’s • Tax Returns
• Receivables • Reporting and Advice • Financial Planning and Advice opinion
Mention this ad and receive;
FREE Business Performance Review FREE Business Empowering Kit Plus, First 2 hours bookkeeping absolutely FREE
NOVABK
that’s 1800 www.novabk.com.au
668 225 ???????
Call: 1800
Social media is the perfect tool to Jessica Humphreys* help businesses build meaningful Social media consultant relationships with their customers. It’s important to acknowledge how your business is perceived online and influences buyer behaviour. More often than not, businesses use social media to broadcast and talk at people as opposed to them. These online social interactions need to be a two way conversation. Repeated hardcore selling just doesn’t work. I’m often astounded at just how little businesses engage with their online audience. Here are a few tips to help build and engaged an audience: • Use calls to action – ask questions, for opinions, for followers to share their story or a photo. • Respond to comments even if it’s just to say ‘thank you’. • Try to continue the dialogue if you can. • Provide unique and meaningful content. Give your followers something of value. • Thank followers for their support. • Have a little fun! Social media isn’t meant to be corporate. Inject a little humour into your posts. As businesses we often want something from our target audience – sales, engagement, information. It’s a good idea to think about what you can give your social media followers as opposed to
Business Services & Deceased Estate Taxation Specialists Accounting & Taxation I Business Advisory & Restructuring Succession Planning I Superannuation I Cash Flow Management Statutory Compliance I Deceased Estate Taxation Services I Financial Planning
Jason Bertalli, Director of BNR Partners and leads the firms’ Business Services division. Having over 15 years experience as Business Advisor, Jason and his experienced team work closely with businesses across Victoria bringing practical solutions and an easily understood approach to enhance the development and growth of his clients’ businesses.
PHONE (03) 9781 6800 I EMAIL info@bnrpartners.com.au Level 1, 327-333 Police Road, Mulgrave Vic 3170 16 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | M arch 2014
2493
Ian Raspin, Director of BNR Partners’ dedicated Estates and Trusts division and brings over 20 years of public practice experience to the firm. Ian’s career began in business advisory services and now focuses on the specialized area of Trusts and Deceased Estates. This division works with both Trustee Companies and Legal Practices across Australia.
contributions
constantly thinking about what they can give you. If you have a great example of engaging content you’d like to share please stop by our Facebook page – www.facebook.com/ socialconceptsconsulting
We’re here ... to help you achieve your business goals.
*Jessica Humphreys operates Social Concepts, a social media consulting business. Send questions to Jessica@socialconceptsconsulting.com
excel and charts: the art of visualisation
*Neale Blackwood owns and operates A4 Accounting. He does Excel consulting, webinars, training and coaching. Mobile: 0402 882122
banks should mediate over mortgages: study Perhaps unsurprisingly, just five per cent of Australians believe a bank should automatically be able to take possession of a home if mortgage repayments fall behind by two or three months. A study by Galaxy Research on behalf of Mortgage Mediators shows 82 percent of Australians feel we should follow the United States where banks are required to mediate with the mortgage holder to arrange a repayment plan or allow the borrower to sell the property. “On average, foreclosures are now running at 50 a week and increasing. That’s pushing up the cost of lenders mortgage insurance, adding to bank costs, and creating more stress – often accompanied by aggression – among those affected,” Mortgage Mediators CEO Terry Hunter said.
Some of our experts Professional solutions for the South East
Pitcher Partners, a leading Melbourne accounting, audit and advisory firm, has been helping businesses like yours for more than 20 years. And now, we have an office in the South East Region to provide practical business advice and professional solutions in a location that’s convenient to you. For more information contact David Knowles or Vicki Macdermid on
(03) 8610 5000
Level 1, 80 Monash Drive, Dandenong South Vic 3175
www.pitcher.com.au/southeast Independent Member of Baker Tilly International
2488
Excel can be used as a data visualisaNeale Blackwood* tion tool. Lots of numbers presented Business software specialist in a report may look impressive, but the reason you create a report is to convey information. That information could include how this year’s results compare to budget, or last year’s results. Tables of numbers are a poor communicator when compared to properly designed charts (in Excel graphs are called charts). We are visual creatures and can absorb a lot of information from a chart. Charts are ideal to identify trends, compare relationships and to spot anomalies. Humans have excellent pattern recognition abilities and data displayed in charts provides the perfect opportunity to use those skills. Dashboards are a recent development, where a page of charts is used to display the key measures of a business’s performance. The idea is that the charts are like the dials and lights on a car dashboard and indicate if the business is running well, or if there are issues that need resolving. More complex dashboards can allow you to drill down into more depth to better identify where issues are. It is important that the dashboard’s measures align with the business’s goals and needs. In many cases the hardest thing in creating a dashboard is to determine what measures are needed, rather than creating the dashboard itself. The measures need to be indicative of the health of the business. Dashboards usually contain non-financial measures. These can include such things as customer satisfaction scores; employee turnover statistics and quality measures. Excel can handle basic dashboard designs and there are other dedicated dashboard creating packages available if your needs are more demanding or complex.
March 2014 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 17
HEALTH
In a world of our own Remember those summer nights of your teenage years when you lay on a warm beach after dark – maybe down at Wilsons Prom under the brilliant night sky – pondering the big questions? Like, for example, whether Agnetha was hotter than Frida (hey, it was the ‘70s), and whose turn was it to knock off the bottle of Spumante from your mum’s tent (don’t ask, kids, just read on). As I recall, those discussions about life, the universe and everything went something like this: “Because our senses (hic) can perceive only a tiny percentage of the spectrum of energies that form the universe – light waves, sounds waves, electromagnetic radiation, infra-whatever – our interpretation of the world is limited by what our brains can perceive. If we could sense a broader spectrum of frequencies, for example being sensitive like birds to the earth’s magnetic field, the world would seem a completely different place.” This led, after another swig, to the inevitable question: “Is this the ‘real’ world or just one of many possibilities, the one we create using our senses?” At Norman Bay after dark, on sand dunes still warm from the baking sun, one could be profoundly moved by such a question. (OK, that could also have been the Spumante.) It crossed my mind again recently while walking my golden retriever Jessie, because one thing dog walkers soon realise is that your experience of “the walk” is quite different to your dog’s. When the two of us set off, usually around dusk, I take in the evening ambience, enjoy the bay glimpses, notice the greenness of the grass on the school oval, brace against the coolness of the
Michael Ellis*
Chinese Herbalist
A tick can have no concept of a world beyond what it can sense. breeze, spin a tennis ball out of my hand Warne-like against the lamp-posts, smile at a possum scrambling up to a safe height, nod a greeting to a neighbor… all these things. How about Jessie though? She trots along with her nose down, ears pricked, stopping at each upright to assess doggie preoccupations like where she should pee. She gives not a jot for the atmosphere, the view, the colour of the grass, my leg-spin prowess (she is contemptuous of balls – some retriever), the temperature, the cuteness of the possum, the presence of people on our route (unless they bear liver treats, in which case she will allow an exception), the music in my headphones, or anything else remotely of interest to me. She is far too absorbed with her own stuff. “Look at the great sunset, Jessie,” I instruct. She lifts her head momentarily in response to her name, sees no incentive for further action, and returns her focus to her nose. At this point I need to mention the work of an early 20th century Estonian scientist with an unpronounceable name but a perceptive idea. Jakob von Uexkül, a biologist, coined
18 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | March 2014
the word “umwelt” to refer to the selfcentered world of every living organism. He pointed out that every species on earth had its own unique perception of the world and its place in it. His famous example was that of a tick, a creature that has no ears or eyes but a sense of smell so acute that it can detect a molecule of butyric acid – a chemical secreted by sweat glands – on the breeze. Upon detecting this, the tick launches itself blindly in the direction of its prey. If it lands on something warm (37 degrees to be precise, the temperature of mammalian blood) it then burrows into the skin to feed. So the tick’s umwelt revolves around its ability to discern butyric acid from the myriad other molecules borne on the winds, and to gauge body temperature (and also to climb grass blades to an advantageous height from which to launch). This is a tick’s lot. Its existence – its experience of the world – is reduced to these sensory parameters. A tick can have no concept of a world beyond what it can sense. Blind and deaf, it cannot conceive of the human umwelt, the one that our brain constructs by interpreting the different array of sensory signals that reach it. So every species has its own unique world. Although Jessie and I enjoy our walk together, we are stuck in our separate worlds. (As is the tick waiting in the long grass trying to intersect with ours as we walk by.) Jessie’s umwelt has sights and sounds but it is dominated by scents – rich signals that construct for her a reality of prey, danger, rivals, territories and hierarchies. So while the dog and I may share a home, a common territory and a hierarchy, Jessie is walking in her umwelt not in mine. Ensconsed in my own, like the tick I am blissfully unaware of what other sensory possibilities I might be missing and how the world would seem if I had them, and therefore I am prone to the mistaken impression that my umwelt is all there is. When we get home the missus stirs from the couch (she’s a morning walker) and asks: “Did you have a nice walk? Solve any big questions?” “Yep,” I reply. “Agnetha was definitely hotter than Frida.” *Michael Ellis is a registered Chinese herbalist in Mt Eliza. Visit www.mtelizaherbal.com
MARKETS
China’s debt stress is Northern Star’s gain It has been very rare in recent years for an Australian gold operation to get three key aspects right: geology, capital cost and operating margins. One miner that seems to have all three is Northern Star Resources (NST). Its start was humble to say the least. A group of mining engineers familiar with every aspect of the metal mining saw potential in the old Melrose project in the far north west of WA which was first developed back in the 1930s. It passed through many hands until a young mining engineer with experience at several outback gold and copper mines could see potential. The then owners of what was now called Paulsen’s had sunk money into improved plant and underground workings, but were hesitant about spending more despite indications that it had depth potential. Bill Beamant and his colleagues must have made an exceptional case to the bank as Northern Star was a one-cent wonder with cash of just $5000. The team held their collective breath when a $40m deal was signed, but they seemed to know exactly what they were doing as success was almost immediate. In seven months the loan was repaid. NST hasn’t looked back. Every fresh round of drilling shows grade increasing with depth. A dividend program was started which may soon double. The latest drilling results show strong grades of 10-20g/t with a significant amount higher at 40g/t. the best intersections come in at over 200, but this is not
Richard Campbell* Stock Analyst
simply the luck of cleaving through a small nugget: several of the rich sections are metres thick. The exciting aspect is that grade is increasing at depth in twin lodes that are also surrounded by a low grade halo that would be worthless by itself, but when included in the feed, adds useful ounces and is lifting production to more than 100,000 oz. Luck sometimes snowballs. Beamant has decided to repeat the trick. When Barrick Gold, the big daddy of global gold mining, announced late last year that with a tough gold price around $1200 it had to quickly sell assets from its global portfolio. Northern Star had not only cash, but strong broker support. Plutonic cost $25m and then three weeks later another deal was signed for the old Kanowna Belle operations and Kundana both near Kalgoorlie for $75m. All were operating, all had solid production and opportunities to extend operating life. Kundana’s recent Pegasus discovery has has the grade and size which should take Kundana out towards 2020. The timing was good. As these deals were being prepared the gold price conveniently kicked. As a buoyant Beamant said,
“We have tripled production for 10 per cent of our capital value.” So far so good, but there is of course a fourth key aspect: the price of gold itself. In this respect there seem to be no greys in opinion. Gold bears believe the subprime crisis is well and truly over and the world economy is moving to sunny upper pastures. Gold bulls see a very different world in which the US Reserve Bank still maintains extreme levels of stimulus with zero interest rate settings until inflation rises and unemployment falls further. It’s all very ambiguous. Figures for manufacturing and housing slump and rise are giving no clear indication of when the Federal Reserve’s heavy dose of pep up pills will end. A group of more grizzly bears focus two further aspects of gold. The first is China’s ambition to make the Renminbi a credible alternative to the US dollar as a world reserve currency and the second is the scale and speed of the rise in China’s corporate and municipal debt. Never before in history has a country added $15-16 trillion in debt in just three years. Even the scale alone would not be a concern given the size of China and the extent of its private savings, but the bears are deeply concerned by the quality of the cash-flows. It is rare to find a heavy industry where the majority of the companies are not suffering debt stress. If debt servicing is 15 per cent of GDP and GDP is growing at seven per cent you have a problem. For the Northern Star team those numbers will make good reading. * Richard Campbell is Executive Director of Peninsula Capital Management, Tel. 9642 0545. rcampbell@peninsulacapitalmanagement.com.au
it’s eAsier thAn you think Ph: 03 5911 7000
328 Main Street Mornington VIC Australia E: admin@smartbusinesssolutions.com.au
Full practice including l internationa tax
2497
A chAnge in the right direction
Free helpful hints available online! www.smartbusinesssolutions.com.au March 2014| Frankston / Mornington Peninsula / Dandenong BusinessTimes | 19
PLANT HIRE CONTRACT
BABY BOOMERS SITTING TIGHT
FEW PREPARE FOR A CRISIS
Metropolitan Plant Hire has won a $2 million contract with Greater Dandenong Council. The four-year contract – with a 12-month extension if required by council – is estimated at $500,000 a year (including $45,455 GST) and covers the supply of supply of earthmoving plant and equipment and qualified operators. At the end of this latest contract, Metropolitan will have completed 12 years in a row with council. Metropolitan was the only one of four companies left standing after council applied its tender evaluation criteria. The others were judged to be non-conforming and not assessed. Metropolitan’s excavators, tandem tippers, graders and traxcavator’s will mainly be used to carry out council’s capital works programs in the city’s parks. Councillors were told that contracting “has historically been and continues to be the most cost effective outcome” and Metropolitan “has an excellent track record”.
Five years of poor returns from shares and bank savings have convinced many self-employed baby boomers that their businesses might be their best post-GFC investment. Chairman of national accounting and advisory firm William Buck Nick Hatzistergos said owners in their 60s were finding more income certainty in their businesses than in any other form of investment. And, according to Hatzistergos, it is leading many business owners to sit tight at a time when conditions are becoming more conducive to selling. “The first of the baby boomers will turn 68 this year and demographers have been predicting for some time that there will be a retirement bubble this year or next,” he said. “On the surface it is an ideal time for small business owners in their 60s to make their business an attractive takeover target. “But we see little evidence among of our self-employed baby boomer clients that there will be a wave of them preparing their businesses for sale in 2014 or 2015.” Hatzistergos said more than 50 per cent of the value of share assets had been wiped off between 2008 and 2009 while commercial and industrial property values dropped 15-50 per cent. Five years ago retiring business owners were looking at interest rates earning them about $80,000 a year on a $1 million super portfolio. This year the same owners will be lucky to get $30,000. “For many, their small business which might be producing a return of 10 to 15 per cent, is still their most familiar, controllable and lucrative investment,” Hatzistergos said. “Baby boomers seem quite committed to leaving an endowment for the next generation, so the only alternative to drawing down on their investment capital to top up their SMSF dividends, is to keep investing in their business and keep working.” Hatzistergos predicted more “hybrid retirement” strategies where business owners would allow themselves short periods out of the business but keep working for longer. A slow down in baby boomer retirement plans would have an impact on succession planning. “Overall, there is a much more conservative, restrained tone and this is likely to characterise business activity in 2014 and 2015,” Hatzistergos said
More than half of Australia’s SMEs have no risk plans or strategies to combat an emergency that may impact their business, the latest Sensis Business Index has found. The index for the 2013 December quarter also shows less than half of SMEs have strategies for staff in the event of a business disruption. One third have contingency plans for customers and a quarter have supplier plans and strategies. Report author Christena Singh said with summer being a peak time for natural disasters in Australia, it was crucial that SMEs plan to keep operating. “As our survey clearly indicates, many SMEs underestimate the risk of not having contingency plans in place in the event of a natural or man-made disaster. This could cost them dearly. “Business continuity plans are as important for small and medium businesses as they are for corporations.” On a scale of one to 10, SMEs rated data attack and theft as the biggest risk to their business, with both of these rated four on average out of a potential 10. Both were more highly rated than natural disasters, such as fires (averaging 3.3) and storm (2.9). Singh said while 95 per cent of SMEs reported that they backed up their business records and files, just half did it at least daily. One in five back up their records using cloud.
GARNER BACK ON THE MAP Garnar Lane is about to be put back on the map of Dandenong. The new lane has been created between Lonsdale and Thomas streets on the southern side of the new municipal building and library in central Dandenong. A former Garner Lane was closed in October 2009 to make way for the redevelopment of central Dandenong. The name continues the historic connection of undertaker James William Garner (1851-1913). His main premises at 10 Walker St was later moved to 44 Walker St and run by his widow Margaret, then eldest son and finally his grandson. The business was sold to LePine in 1950. Garner Lane will have limited vehicular and full pedestrian access. James William Garner, originally a blacksmith, changed career to become an undertaker in the late 1800s. His premises at 10 Walker St had a mortuary backing onto Crump Lane. Garner had seven children and was killed by a bull in 1913. In 1927 eldest son William James and grandson Len, 15, took over the business changing its name from J.W. Garnar to W.J. Garnar & Sons.
20 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | March 2014
PRIZE CATCH Mornington-based Bay Fish N Trips has won 3AW Momentum Small Business Success Awards. Owners Sandra Watt and Stuart Maconachie were presented with their award and prizes on Monday 24 February by Denis Walter of 3AW and Natalie Davies of Momentum. Bay Fish N Trips was selected because of its blend of knowledge and services to expanding tourism in Victoria through its fishing trips in Port Phillip. At the company’s heart is the Plover. Built in 1942 by GM Holden, Plover now houses modern of facilities and its owners and crew provide knowledge of fishing spots, equipment and food. Visit www.bayfishntrips.com.au or call 0418 346 364.
CONTRIBUTIONS
HOUSING CHALLENGE: BROKERS Nearly half the mortgage brokers surveyed late last year believe that financing Australians into affordable housing will be one of the biggest challenges facing the mortgage industry over the next five years. The survey was part of Genworth’s annual study of the Australian mortgage industry. The Home Grown survey of 356 brokers, lenders and industry leaders found that brokers and lenders believe that housing affordability will be a bigger issue in the next five years than in the past five years. Half the brokers and lenders surveyed wrote fewer loans to first homebuyers over the past 12 months compared with the previous 12 months. Lenders expect the market could also be impacted by a weak domestic economy (43 per cent), housing affordability (37 per cent) and regulatory impacts (37 per cent). Lenders and brokers expect an increase
in the volume of mortgages sold online over the next five years, said Bridget Sakr, chief commercial officer of Genworth Australia. However, industry experts interviewed for the study agreed that “the automatic online loan is a long way away” because mortgages are “too complicated for digital channels.”
ON-AIR The trials and tribulations of business are discussed and evaluated each week on radio station RPP FM. Presenter Jacki Mitchell, right, is on-air 11am-midday each Friday with “special guests from the business world talking about their successes, failures, lessons, inspirations and ideas”. Mitchell’s business news, views and
Incorporating Houlgate Saint-Pern
music can be found on radio at 98.7FM, online rppfm.com.au, Facebook.com/tcob. rppfm or twitter @TCOBrppfm.
SECURITY BREACHES Despite being the most technology confident globally, Australian businesses are the slowest to react to cyber security breach – taking an average of 10 hours to identify the source of a breach. More than half of Australian businesses (58 per cent) have experienced a security breach in the past year, while 30 per cent of companies remain unsure of their ability to fight cyber threats Risks were increased by employees accessing company databases through a personal device. “As a result, we believe a new security approach is needed – one that’s embedded in the fabric of software, governing access to every application and protecting every device, both inside and outside a corporate network.” Ian Hodge, general manager of Dell Software Australia, said.
A Paris Group firm
Incorporating Houlgate Saint-Pern
MBA Business SolutionsMBA is a dynamic Businessbusiness Solutionsthat is aprovides dynamic business tha extraordinary service and complete solutions for our clients. extraordinary service and complete solutions for ou Accounting
Ph. 5970 8100 Ph. 597
› Individual & Business Tax› Individual Returns Financial& Business Tax Returns › Property Investment Specialist › Property Investment Specialist Taxation › Trusts & Structuring Advice Call the office today and arrange › Trusts & Structuring Advice Call the office tod › Business Valuations your no obligation appointment. › Business Valuations your no obligatio › Financial Planning › Financial Planning 342 Main Street, Mornington 342 Main Stree › Superannuation & SMSF› Loans Superannuation & SMSF Loans team@mbabus.com.au team@mbab 342 Main Street, Mornington, 3931. › Succession Planning www.mbabusinesssolutions.com.au › Succession Planning www.mbabusiness › Estate Planning Tel 59 70 8100, Email team@mbabusinesssolutions.com.au › Estate Planning A Paris Group Firm A Paris Gro 2496
Your Local Specialists
1209
| Frankston / Mornington Peninsula / Dandenong BusinessTimes | 21 Accounting team members - Jason Beare,March Dereen2014 Wallace, Amy Bignell and Irena Lioudvigova.
MANAGING
So, what is strategy? Most SME owners have a dream of growing their business to the extent that they can monetise its capital value and retire to their dream location. They just have to find someone willing to pay them the value that they believe they have created over a long period of endeavours. While this is great dream, it is best to keep it private in the bottom drawer of your desk, as it is not a strategy that can be used to motivate your people and evaluate your progress. So, what does constitute strategy and how can you develop it? There are many definitions for business strategy, but the common thread is that it is a set of positioning statements that combine to define uniquely what long-term success looks like in the eyes of key stakeholders. While the business owner is an obvious stakeholder, there are other key groups that may need to be consulted, such as customers, creditors, employees and the local community. This means that these key stakeholder groups should be identified and then involved in dialogue to reach agreement on how they would define success for your business over, say, the next three to five years. Now, strategy statements are contextual. In other words, they are set within a future state that sets boundaries around your competitive landscape. There are many tools that have been developed that can assist you in defining your specific future state context. For example, a PEST analysis requires you to analyse and predict how political, economic, social and technological factors will change and influence your business over your selected time frame. In each of these areas, you can identify the major factors that will change how your business performs. For example, if your business is sensitive to the overall economy, then another recession could be a major factor. In these cases, you may need to develop your strategies in the context that there will be another recession within your strategic time frame. This may force you to operate your business as if another economic slow down or recession is just around the corner. Additionally, these analyses can be supplemented by adding macro factors like environmental, legal, ethical, regulatory and demographic changes, if any of these are likely to be
Hamish Petrie*
Business Consultant
significant influencers on your business. Once you have set your future state context, you should consider if there is a single simple statement that can define your ideal outcome. For example, many companies see themselves as being “the best type of business within a specific geographic area”. This can be helpful, but be careful not to end up with a statement that is too generic. These statements have been given various labels over the years including mission statements or visions, but it really doesn’t matter how you label them, it is how you support them and connect them to your selected strategies that really makes the difference. Now comes the fun part. Work through each of your future state statements and identify the main outcomes that you would like to achieve together with the key actions and goals that define how you will achieve them. When you have finished this, it is worth reflecting on your ideas to see if there are any substantial gaps. Usually, there will be strategies that are not driven by the future external state, but driven by new internal initiatives to reposition your business with new products, services or geographies and, clearly, these need to be included as well. When this work is finished, you will probably have many ideas that can drive your business to long-term success. The issue is that there could confusion about what really matters. In my experience, the focus should be on determining the fewest possible strategy components that can be used to create a unique positioning statement. This way, your business will be able to differentiate itself from its competitors in your defined market. Again, I have found that restricting the number of strategy components to just a handful (just five) will make the communication
22 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | March 2014
and deployment of strategy much more effective. This phase therefore requires consolidation, force ranking and redrafting of ideas, and this, in itself, can stimulate valuable debate with your key stakeholders. Structuring ideas into a consolidated, cohesive series of statements will also make the implementation and deployment much easier. Once your strategies have been clarified, effective deployment means that every one of your people must understand your strategies and their specific accountability in helping implement them. This requires the business leader to constantly communicate strategies through actions and words. Every day, there will be opportunities to reinforce strategies and to ask your people how their daily work is contributing to strategic success. Well developed and implemented strategies will align your key stakeholders and greatly increase the focus within your organisation. This will avoid the “book of the month club” where managers jump around from idea to idea based on the latest management book that has just been published. So if you want to live your dream, consider redeveloping your strategies supported by cohesive deployment structures and reinforce the importance of these strategies through your behaviour, every day. Action planning questions Have you defined your key stakeholders and engaged them in a dialogue about your business? Have you identified the major macroeconomic factors that will shape your business performance over the next three years? Do you have a simple mission statement or vision for your business? Have you consolidated your strategies into just five top level ones supported by subsidiary goals and accountabilities? Do you reinforce your strategies every day through your words and actions? *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
m: 0404 135 345
businesstimes
directory e:josh@monstaprint.com.au
ACCOUNTANCY
INSURANCE
Certified Practising Accountants ABN 61 089 712 416 www.livingstonebeckett.com Shop 3/4 Eramosa Rd, Somerville, 3912
, offices, trades and services. Please contact us for a free review of your insurance and an alternative quote. Address - Suite 1, 14 Ranelagh Drive, Mt Eliza Vic 3930 03 9775 2355 mornpen@midlandinsurance.com.au www.midlandinsurance.com.au
SMSF Audits. We can help you finalize your 2013 year. Lodgement of SMSF Audits and Income Tax Returns. 3 SMSF Registered Auditors ready to help. Standard Fees can be arranged.
IS YOUR BUSINESS PREPARED FOR THE
NEW LAWS? NEWBULLYING BULLYING LAWS?
2468
Livingstone, Beckett & Associates Pty Ltd
2501
Luke Wade 03 5977 6210FOR THE IS YOURPhone BUSINESS PREPARED
STATIONERY 2502
RELATIONSHIPS
IS YOUR BUSINESS PREPARED FOR THE
NEW BULLYING LAWS?
your free information session today BookBook your free information session today Contact us on 9510 6874
info@relationshiprocketscience.com.au www.relationshiprocketscience.com.au Suite 514, 566 St Kilda Rd, Melbourne, 3004 www.relationshiprocketscience.com.au Book your free information Suite 514, 566 St Kilda Rd, Melbourne, 3004
2504
Contact us on 9510 6874 info@relationshiprocketscience.com.au
1300 762 995 25 Titan Drive, Carrum Downs Vic 3201
New & Remanufactured Cartridges for Laser, Inkjet Printers & Copiers.
Secure online ordering available at
Call us today to get T$500 Kickwill Start Bonu The first 5 callers receive a $2000 for the first 50 callers! International Travel
session today
Contact us on 9510 6874
info@relationshiprocketscience.com.au www.relationshiprocketscience.com.au Suite 514, 566 St Kilda Rd, Melbourne, 3004
www.cartridgesplus.com.au
Voucher!
2505
Call us today to get Bartercard will: T$500 Kick Start Bonus for the first 50 callers! Bartercard will: • • • •• • •• ••
bring you new customers bring you new customers improve your cash flow help move stockyour or fill seats improve cash flow bartercard.com.au fill downtime help your move stock improve market share or fill seats increase your networks fill downtime
Call us today Bartercard Morni
Shafeek Yoos 0422 313 900
shafeek@barterca
bartercard.com.
• improve your market share • increase your networks
• • • • • •
bring you new customers improve your cash flow help move stock or fill seats fill downtime improve your market share increase your networks
Call us today Bartercard Mornington Peninsula
Shafeek Yoosuf 0422 313 900 or 03 9773 8177 shafeek@bartercardmornington.com.au
bartercard.com.au
2483
Bartercard will:
March 2014 | 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
2484
To the Business Owner
POSTAGE
PAID
AUSTRALIA