BUSINESS NETWORKING Frankston | Mornington Peninsula | Dandenong
APRIL 2015 I FREE
ART OF WELL WORN GLASS HOW TIME, SAND AND SALT PREPARE RAW MATERIALS FOR A JEWELLERY VENTURE
EXTREME LEADERSHIP
2856
OUR BUSINESS EXPERT TALKS TO WORLD SAILOR OF THE YEAR JAMES SPITHALL
WHO/WHAT/WHERE
FEATURES
www.businesstimes.net.au
ISSUE 55 / APRIL 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
5 20
COLUMNS
WOMEN FLOCK: A cafe in Mornington is helping young businesswomen to connect and network. EXTREME LEADERSHIP:
Management columnist Hamish Petrie talks to world sailor of the year James Spithill.
Email: General: inquiries@businesstimes.net.au Editorial: news@businesstimes.net.au Advertising: sales@businesstimes.net.au Artwork: production@businesstimes.net.au
COVER: Mt Martha couple Amanda Hilditch and Paul Atkinson scour beaches to find worn glass for their jewellery. PAGE 12 Background picture: Sea glass on the beach. Cover photo: Keith Platt
BUSINES S NETWOR KING Frankston
| Morningto n Peninsula
10 16 17 18 19 20
| Dandenon g
APRIL 2015
I FREE
art OF Well WOrN Gla ss
how time, materials sand and salt prepare for a jewel raw lery Ventur e
extrem leader e shi
p
our busine ss expert sailor of the year talks to world james spitha ll
2856
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
Networking: Ivan Misner Social Media: Jessica Humphreys Law: Jacqueline Conquest Health: Mike Ellis Markets: Richard Campbell Managing: Hamish Petrie
Make sure every business knows your business. For advertising, contact Marg Harrison on 0414 773 153 or marg@businesstimes.net.au 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.
www.facebook.com/BusinessTimesAU
Check updates online at www.businesstimes.net.au
ADVERTISEMENT
Australian Property Finance joins forces with REMAX Real Estate REMAX Real Estate in Dandenong have recently relocated to Langhorne St, Dandenong and joined forces with Australian Property Finance.
The list of services available to new and existing clients of REMAX now includes; • Tax Effective Loan Restructuring
All REMAX clients now have access to inhouse Finance Consultants, inhouse Financial Planning as well as inhouse Conveyancing.
• Wealth Creation
Suzanne Snoeks and Kerrie Watkins have over 20 years of experience in the finance industry, and will now be servicing the Dandenong area.
• GI
• SMSF • Reverse Mortgages • Risk • Tax Depreciation.
To discuss all your financial needs please contact: •
Australian Property Finance Shop 14, 30-32 Langhorne Street Dandenong 3175 2 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | April 2015
Priyank Thakkar 0404 550 989
Australian
Property Finance
2857
Suzanne Snoeks 0488 269 937
Mornington BMW
Sales Finance Service Parts
THE FIRST EVER BMW 2 SERIES CONVERTIBLE IS NOW AT MORNINGTON BMW. 2 BE CONTINUED...
You leave the still-sleeping city behind to greet the sun as it rises on the road ahead. You wind your way along an empty coastal road and reach a hand into the cloudless summer sky that stretches out overhead – this is it, you think, this is what you’ve missed. That familiar feeling in a forgotten country town, a meal overlooking an endless ocean, a spirited dash through a secluded mountain road. Perhaps it’s time to tell your own story – one written by winding roads and bound by endless skies. Arrange a test-drive at Mornington BMW and continue your story. LMCT 7674
BusinessTimes | 3
2858
Mornington BMW 181 Mornington Tyabb Rd, Mornington. Ph (03) 5970 5970. morningtonbmw.com.au
PROFILE
n Bizzquiz After completing his Bachelor’s degree in multimedia studies at Central Queensland University (CQ University), Tony Sambell founded Spicy Web Design in 2009. His passion for the web has driven the company’s success—working with hundreds of clients to build successful web presences. He is a Google certified partner and has extensive experience working with clients to market their business online. Sambell puts the success of Spicy Web down to a commitment to high quality services and “a drive to help other businesses thrive online”. TONY SAMBELL Founder and Director, Spicy Web Design
I dreamed of being ... Growing up on a fish farm in Queensland I always dreamed of being a marine biologist, amazing how things changed.
In 10 years I will be ... running Spicy Web Design but surrounded by even more amazing team members. Our business planning entails ... always being be ahead of the curve in our industry so we offer the best possible service. Tips for success ... There is no substitute for providing excellent service. A happy customer will be your best advertising tool. I am inspired by ... seeing our clients’ businesses grow and knowing I had a part to play in their success. Anyone starting a business should ... be confident in what you do, so don’t judge yourself on the size of your business rather judge yourself on how good your service is. I wish I had ... trusted my gut feelings about certain situations. In business a gut feeling can sometimes help avoid a lot of stress.
2879
My first paid job ... was actually creating websites for local businesses when I was 16. I continued this through university until deciding to start my own business.
Advice for every part of your life We are a dynamic and progressive small firm which prides itself on excellence in client service. With a track record of success, our lawyers take the time needed to fully understand our clients’ legal position and to both provide representation and professional advice for all legal matters.
Hill Legal is a Mornington based law firm practicing in various areas of law. We offer premium legal services at cost-effective rates and deliver them through a team of highly qualified and extensively experienced solicitors.
> Business Services > Business & Personal Litigation > Commercial Agreements > Conveyancing and Land Transfer Services > Adviser Support Services > Estate Planning Tools > Family Law
> Wills, Trusts and Estate Planning > Business Succession Planning > Self Managed Super fund advice > Property Disputes > Business and Personal Debt Recovery
4
|
ABOUT HILL LEGAL
CONTACT US
Hill Legal provides a unique mixture of legal and financial services specifically tailored to provide solutions and advise to clients at all stages of their personal and business lives.
Office: Suite 2, 346 Main Street, Mornington VIC 3931
Phone: (03) 5976 6500 Fax: (03) 5976 4926 Email: reception@hilladvisers.com.au
BusinessTimes Frankston / Mornington Peninsula / Dandenong | April 2015
WORKING DEVELOPMENTS
Women flock to collaborate BY JESSICA HUMPHREYS Flock is a female co-working space that has arrived on the Mornington Peninsula. Co-working spaces are more than an opportunity to rent desks: they are about creating and tapping into a like-minded community and forging connections – the things you often miss out on when you don’t work within a traditional office space. Founders Jess Jones from Soar Collective and 2nd Avenue Events, and Ash Hoult, from Sales Sistas and The Promo Donna, have set out to create an environment for businesswomen to congregate and inspire one another, as well as collaborate. “Like so many small business owners who work from home, I crave human interaction, a different environment and the support and understanding from women who are on the same path,’ Jones said. “Working from home means you miss
that connection.” Flock refers to women ‘travelling together’. Jones and Hoult want to create a sanctuary for working women, particularly those who either don’t have access to a traditional office space or don’t have the opportunity to work alongside others. “Ultimately, we’ve created a hub of activity specifically focused on finding refuge for women entrepreneurs. I believe the growth of this trend is occurring because it’s filling the need of being a collaborative community that helps women to get essential support, resources and ideas,” Hoult said. Flock will run 10am-4pm fortnightly on Thursdays and Fridays at Mornington’s 115 Cafe. Tickets are $30 and include free wifi and a hot beverage. To book a ticket at Flock visit: http:// www.eventbrite.com.au/e/flock-coworking-tickets-15829096253?aff=efbevent
SHINING STAR IN MORNINGTON Chris Thoday (below), general manager of Mercedes-Benz Mornington, is the 2014 Provincial Van Dealer of the Year. The award recognises the outstanding service Thoday and his team have provided in the past 12 months. “We are thrilled to receive this award and we look forward to welcoming new van and passenger vehicle customers to our dealership to share with them our award winning culture,” Thoday said.
We’re Australia’s business energy company and we’re focussed on what’s best for your business. #1 for Customer
“We shopped around and ERM Business Energy were the best by a long shot. Our power bill is always on time and it’s easy to understand.
Satisfaction.*
I’d recommend them to any business looking for great service, simple billing and big savings. We’re 100% satisfied!” Greg O’Donoghue – Business Owner, Green Olive at Red Hill, Mornington Peninsula
Switch to ERM Business Energy. For excellent service, accurate billing and competitive pricing, jump online or give us a call today.
ermquote.com.au 134 376
*Source: Utility Market Intelligence (UMI) survey of large corporate and industrial customers by independent research company NTF Group in 2011, 2012 and 2013.
2859
April 2015 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 5
BUSY BITES
APP for expenses Business management software development company Sage has released a free expense management app with optical character recognition (OCR) technology to extract information on receipts and save it to relevant tax return categories. The Sage Point&Claim is touted as an integrated solution with HandiTax to streamline processing of tax deductible expense claims. Available on iOS and Android devices, the free receipt management app records and processes receipts used in tax returns. Users photograph a receipt and the app extracts all data to categorise and create ATO compliant records. It confirms receipt data, appends warranty details and imports data to HandiTax. A web portal extends Sage Point&Claim functionality to the desktop, where users can view all saved receipts and the data is exported directly to a nominated accountant.
Tyre power
Twenty fifteen is BusinessTimes’ fifth year of publishing a monthly magazines and a website dedicated to business affairs generally and covering south-east Melbourne in particular. Many small businesses have prospered and failed in the intervening years. In fact, demographer Mark McCrindle says most businesses started in Australia don’t last more than three-and-a-half years. In April 2010 four of us sat around a table at Merricks Store drinking some of Kathleen Quealy’s fine wines and shooting the breeze about the need for a regional publication dedicated to people in business and providing them with networking opportunities. After all, businesses are the main reason for the existence of local publications (in fact almost any publication) because their advertising dollars pay the bills. However, few businesses ever have a voice in these publications. The journalists’ argument is that advertising dollars should not buy businesses the rights to the news columns. This ‘cash for comment’ philosophy undermines a publication’s credibility and independence. When a publication’s owners are seen to pander to big advertisers by uncritically accepting their practices and offering puff editorial, readers readily understand that their appetite for an independent view of the world goes begging. As the discussion went on between two journalists (Keith Platt and Tony Murrell), a printer (Dave Hilet) and a sales specialist (Marg Harrison), the idea was forming for a publication unashamedly supporting business and offering a regular voice to business owners and leaders. Looking back, there have been some positives while improvements and opportunities remain to be realised. Most positive is that we’ve attracted enough support from advertisers to keep on publishing, paying our bills as and when they fall due. We have developed a talented team of specialist writers on management, networking, the stockmarket,
health, social media and the law and we’ve published interesting interviews with business owners, leaders and some visionaries. The business community is always positive about BusinessTimes and its direction. While we think too few business people are using our columns as a forum, these owners and leaders are telling us we’re on the right track when we regularly seek their feedback. We see that growing our database to more than 3000 as a significant achievement. This has been done by collecting business cards at functions and appointments and asking whether the individual wants to be on the mailing list for either a hard copy or digital copy of the magazine.
AUSSIE SUPPORT FOR ‘LOCAL’ Almost half (46 per cent) of Australians say that buying local is the best way to strengthen the economy, according to Westpac’s latest Australia Day report. The report also found that fruit and vegetable shops, restaurants, cafes and pharmacies are the most popular shops for buying goods locally. Nine in 10 people surveyed felt loyal to at least one business in their community and spent an average of $237 a month on locally made products. “Strong community relationships are important to Australians and more than two fifths … say they shop at local businesses because they have built up relationships with the owners,” Westpac’s Danny John said. He said 43% of people said they would pay more for local goods and services, while 19% of Gen Ys (20 to 34 years old) promoted local suppliers through social media, such as Twitter, Instagram or Facebook. Mr John said the “builder” demographic (69 plus) regularly went to their local shops with 70% liking the personalised service. “Despite the increased presence of international stores and retail chains in Australia, we are still
2861
Goodyear Tyre & Rubber Company has unveiled a concept tyre that in the future may charge car batteries by transforming the heat generated by the rolling tyre into electrical energy. The company believes the technology could address the key fault of electric vehicles with its self-charging capabilities. The triple tube tyre adjusts to three different positions based on road conditions - the eco/ safety position, the sporty position and the wet traction position.
OUR FIRST FIVE YEARS
6 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | April 2015
KEEPING THE BUDGET ON TRACK Fred Schebesta, a self-styled online business guru, says getting out of debt doesn’t have to be a yearlong exercise, although extreme measures may be needed to get back in the black. The co-founder and director of www.finder.com. au has seen his multi million-dollar business grow from a dream in a dining room. His comparison website has a “crew” of more than 40 and plans to go international. “After being a little too loose with the purse strings over the festive season, getting back in the black is often number one on the list for many people. But paying back debt and saving money can be the hardest resolution to stick to. This year, don’t let that happen,” Mr Schebesta says. His 12 tips to help fine-tune your balance sheet: 1. Scrutinise recurring expenses: Take a look at your recurring expenses and determine what you need and what you can do without (monthly subscriptions, phone usage). Resist a phone upgrade and mobile phone contract and opt for a pre paid bill. 2. Earn another income: Earn more money. Technologies and businesses have evolved to make it easier to do this. Make the most of the share economy by doing odd jobs on Airtasker. Look at jobs on Gumtree, rent your room or house on Airbnb, offer your skills on Expert360. 3. Skinny rocks: Skipping one meal a day can save dollars and help your waistline. Having a bigger portion at brunch (between breakfast and lunch) can fill you up for longer and it means you are having one meal not two. 4. Ditch the big brands: When Apple releases its latest product, resist being the first with the latest technology. Stop thinking about the latest car, gadget,
holiday, watch or clothes. 5. Don’t buy take-away: You will be amazed at how much money can be saved by preparing your lunch (or brunch) each day. Cooking at home is healthier and often tastier. 6. Declutter: Sell anything in that you no longer use or need. Put up ads on Gumtree or have a garage sale. 7. Ditch the coffee: At $3.20 a regular coffee, even if you only have one a day, you can save more than $60 a month by giving up coffee (based on a fiveday working week). 8. Quit the gym: There are so many ways to exercise that a gym membership quickly becomes superfluous. There are plenty of tips and tricks online. 9. Switch off cable: Try living without cable TV and access services online. 10. Save energy: Reducing energy use by turning off lights and open windows instead of using air conditioning. In winter, use blankets and warm clothes before turning on the heater. 11. Sell your car: Save money by substituting public transport for your car – you don’t have to pay registration, insurance, petrol or mechanic fees. 12. Stop smoking: If you smoke, quit. Not only are you saving money, you’re saving your health.
JOBS FOR YOUTH PROGRAM Mornington Peninsula has been chosen as one of 11 regions in Australia to be part of a pilot program aimed at tackling youth unemployment. The Training for Employment Scholarships (TES) is one of two pilot programs the Commonwealth Government has announced under the Industry Skills Fund – Youth Stream. Peninsula businesses with fewer than 200 staff can apply for up to $7500 when they hire an unemployed person aged 18-24 years who requires further training. The young person must be employed for 12 months and the scholarship covers 26 weeks of job specific training.
WE WON 58 AWARDS WITH 1 STRATEGY...
NBN in Mt Eliza About 5400 homes and businesses in Mt Eliza and part of Frankston South are next in the rollout of the National Broadband Network (NBN). Dunkley MP and Small Business Minister Bruce Billson said there were now 17,400 broadband connections under construction in his electorate with 8800 premises in the Karingal area and a small part of Frankston already able to connect.
Business grants Five companies have received grants from Greater Dandenong Council . Grants of up to $8000 and mentoring sessions have been made to timber window manufacturer 363 Enterprises, electronic waste recyclers Quantum Recycling Solutions, fire protection equipment servicer RUSSON Fire Division of Power Industries Aust, Persian flat bread baker Dandy Naan & Kebab and Russina-style dumpling manufacturer, From Granny.
Location, location…? David Bull of Technical Sales at DataCore Australia says that location is important for a business, but not in the traditional sense. “If you’re running a dynamic team, they can be located anywhere, so you want them to use hot-desks and drop-in business centres as opposed to having physical desks where they then become geographically limited,” he said.
2860
seeing consumers acknowledge the importance of local business to our communities and economy, and celebrate and support local outlets however they can,” Mr John said.
A relentless focus on building advantage for every client we proudly serve. We are honoured to be recognised as No.1 in 58 categories at the prestigious 2014 Euromoney awards including Australia’s top advisory firm, top agency/letting firm and top valuation firm.
MKC - 2222 EuroMoney Ad V1.indd 1
April 2015 | Frankston / Mornington Peninsula / Dandenong |29/01/2015 BusinessTimes |7 1:55:00 PM
NETWORKING GALLERY
1. The Frankston Women’s Connect lunch to benefit Dress for Success attracted more than 120 guests at Frankston RSL on 4 March. Dress for Success volunteer Prue Leggo and Jodie Champ, who talked about how the organisation helped her to find employment.. 2. Dress for Success lunch guest speaker Alice Haemmerie (left) with organiser Karin Hann and MC Marrianne Van Dorslar.
1
2
3
4
5
6
7
8
3. Charmaine Haegens, of Outer Box Solutions, and Gaylene Moseley, of Dress for Success. 4. Kellie Knott, of Body Shape Solutions, with Debra Parker, of Nethena, business development and networking. 5. Soar Collective, a women-inbusiness networking group, met at Lilo Cafée, Mornington, on 5 March. Personal stylist April Nicoll, is with guest speaker Victoria Whittaker, a lawyer who is now president of Clothes4U, Rosebud, helping women and girls to dress for confidence and self esteem. 6. Social Concepts’ Jessica Humphreys (left) with Caring for You director Louise Thomson and her daughter Belle.
8. Food and Wine Society lunch guests. From left are Peter and Sandra Darbyshire with Frances and Brian Trenfield.
Eyewear As Individual As You Are Now stocking
BORSALINO
Limited Edition
Ph 5975 3235 57 Main Street, Mornington
MainStreet Eyecare
2863
8 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | April 2015
2864
7. Frankston Wine and Food Society hosted nearly 100 diners at Ranelagh Club, Mt Eliza, on 11 March. Introducing the French wines was Sean Reilly, of Vintage and Vine. Pictured are Evelyn Hackl and Isabelle RobinsonSmith.
9. Enjoying the Food and Wine Society lunch at Ranelagh Club are Jean Hartley (centre), of Mornington, with daughters Debra Marshall (left) and Dianne Thurley. 10. Guest wine presenter Sean Reilly with society committee member Max Butler.
9
10
11. Frankston City and Mornington Peninsula Shire’s latest in the Business Breakfast Series was at Mornington Racecourse on 17 March. Guest speaker was social researcher Mark McCringle, who is pictured with Rick Paynter, senior pastor at Gateway Family Church.. 12. Frankston Arts Centre’s Brian Coghlan, coordinator of operations, and Gillian Thompson, coordinator of business development and marketing.
11
13
12
14
13. Frankston Business Networking held a networking night at City of Frankston Bowls Club on 19 March. From left are Matthew Nelson, of Frankston Council mayor Cr Sandra Mayer, Paul Collier, of Brass Razu, Fiona Verwoerd, of Peninsula Larder and Stuart Bell, of Sports Prize 14. Frankston Business Networking had a busy week with a social get together at Sages Cottage, Baxter, run by Wallara Australia. From left are Karen Scholey, Phil Hayes-Brown, and Rob Armour, of Wallara, and Lisa Bremner, of LBremner Consulting. 15. Also at the Sages Cottage event were Martin Sutherland, of Land Engineering, Sharon O’Hehir, of Headspace Frankston, and Ross McCall, of Land Engineering.
16
Really, really good websites.
2880
15
16. Ricki Nash, general manager, and Clare Collins, of PERCO Cleaning and Restoration were among guests at the Sages Cottage social evening.
We’re nerds. We love working with all things web. But we also understand the reality of doing business, and doing it successfully. We’re here to help you realise your business’ online potential. From FULLY CUSTOM, MOBILE FRIENDLY WEBSITES , to ONLINE MARKETING including SEO and GOOGLE ADWORDS , Spicy Web are here to help with realistic and logical solutions.
spicyweb.com.au 14
L E VEL 10, 435 NEPEAN HIGHWAY, FRANKSTON
April 2015 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 9
NETWORKING
Why do you do what you do? There has probably been someone in your life – a coach, grandparent, teacher, aunt, or spiritual mentor – who’s made a difference for you. It may have been when you were young (it generally is) – it may have been recently. Dr lvan Misner*
Networking specialist
school rolled around, I had no intention of ever again running for student council. The first week of freshman history class, our teacher, Mr Romero asked all the students, “Since we pick the freshman student council representative from this year’s history class, are there any volunteers for the position? Nobody volunteered. Finally one of the prettiest, most popular girls in the class said, “Oh, Mr Romero, you know, I would do it but I’m just so busy. I don’t have the time to do something like that.” Our teacher replied, “That’s okay, you don’t have to 2862
It may have been a positive experience or it may have been negative. Either way, it is your “why” for what you are passionate about. One of those people in my life was my freshman high school teacher, Mr Romero, at Gladstone High School in Southern California. Mr Romero taught history and that class was the one that selected the student council representative for the freshmen. I had run for student council numerous times in junior high school and I was soundly defeated each time. The elections weren’t even remotely close. In fact, I came in last every time. Each election was a humiliating experience that left an indelible impression on me. So, by the time high
do it… But if no one’s interested in volunteering, as the teacher I get to pick. Are you okay with that?” The students came back with cheers, “Yeah, yeah, yeah – you go ahead and pick.” So the teacher looked around the class, he paused at me and looking me straight in the eyes he said, “Ivan, I bet you would love to do this, wouldn’t you?” I replied, “Well, um, well, yeah, I kind of would, Mr Romero.” My momentary elation was immediately squashed when the entire class, almost in unison, moaned, “Oh no, not Ivan!” Even the too-busy popular girl stood up and said, “No, no, Mr Romero, you know what – I’m actually not that busy. If you’re going to pick Ivan, I can do it, after all.” Of course, while she’s saying all this I’m thinking to myself – “hello, you all see me sitting here, right?” But I couldn’t actually open my mouth to speak. I just sat there quiet and embarrassed, holding my breath. Have you ever had a moment like this? Where you felt so small you just wanted to slip underneath the carpet?
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.
10 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | April 2015
2795
If you’re offering credit terms to your customers, waiting 30, 60 or even 90 days to be paid can really stretch your finances.
It’s important to put this experience in context. Today, I’m an author, speaker, and fairly successful businessman with franchises on every populated continent of the world. But remember, this was happening to me as a 13-year-old. I lacked confidence, I felt like I didn’t fit in at all, and I couldn’t get a chance to prove myself at something I really wanted to do. Somehow, Mr Romero understood that and he gave the ever-popular girl a withering look and said, “No, you had your chance to volunteer and you didn’t take it.” Despite the grumbles rolling through the classroom, Mr Romero’s decision was final. I was the student council representative. My teacher believed that I could do a good job. I took a deep breath and knew I would work hard, really hard, to prove him right. When the year-end student council elections came around for the following year, I decided to do something I had vowed to never do again – I ran for student council. That same class who loudly protested my appointment voted
me in for another year, by a landslide. As a matter of fact, I won every election in high school after that – student council, activities director, student body president – every one. It all started with Mr Romero seeing something in me that I had not been able to see in myself. By giving me that chance, he infused confidence in me and that made a big difference in my life. I gained leadership skills and learned responsibility by being involved in those school projects that I had to take from the beginning to the end. Years later, I knew this was an important experience in my life but I never realised how seminal it truly was to the man that I would become. It wasn’t until a few years ago at a Referral Institute seminar where everyone was going through their emotionally charged connection to why they do what they do, that I came to realise that my entire life’s work was in fact a reflection of what Mr Romero did for me as a young man. Every book I’ve written or business I’ve started has been an attempt to give
other people an opportunity to succeed, to excel, to accomplish what they want to accomplish in life. I can’t “make” someone successful. Only they can do that. I can, however, provide the system, the process and the opportunity for them to achieve their dreams. I have been continuously reliving what Mr Romero did for me and I never even knew it – until I looked deeply into my “why.” Your “why” is the most important thing you can figure out right now. It is the reason you do the things that you are passionate about. If you don’t know that, you can never completely fulfill your personal and professional dreams.
*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
if you’re reading this, so are your prospects. • Posted free to businesses registered with australia Post • circulating in frankston, dandenong & mornington Peninsula
Listen online - rppfm.com.au
• emailed monthly to 4000 businesses (av. open rate 38%)
via the app or 98.7fm
Taking Care of BUSINESS Friday 11am to 12 noon 98.7 fm with Jacki Mitchell
• Popular in reception areas and cafes throughout the region
As seen on Sky Business News
2877
call marg 0414 773 153 www.businesstimes.net.au
|
Thought Leadership |
| Expert Opinions | Failures
|
|
Success |
Tips |
2867
| Ideas
made in melbourne for business leaders
April 2015 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 11
COVER STORY: MORNINGTON SEA GLASS
Amanda Hildi keep an eye the
12 | BusinessTimes| Frankston / Mornington Peninsula / Dandenong | April 2015
itch and Paul Atkinson e out for ‘sea glass’ near eir home at Mt Martha.
Seachange for glass jewellery WORDS AND PICTURE: KEITH PLATT
AMANDA HILDITCH AND PAUL ATKINSON SPEND MUCH OF THEIR WORKING LIFE AT THE BEACH. LONG WALKS AND AN EYE OPEN FOR THINGS THAT STAND OUT IN THE SAND YIELD THE RAW MATERIAL NEEDED FOR THEIR BUSINESS, MORNINGTON SEA GLASS.
amount of material available is bring reduced. The introduction of plastic and metal containers has seen a huge decline in glass bottles. Mass production has also led to a sameness of those bottles that are on the market and the success of recycling campaigns and concern for the environment has led to fewer bottles being thrown out. Pieces of brown glass and clear glass are the most common while black, red and blue are becoming more rare. Picking through the assorted bits and pieces of sea glass can yield a glimpse into the past. Hilditch, a former public health researcher, says her academic training “makes me always want to know where the glass came from”. Black glass can be dated back to the late 1800s or early 1900s when it was used to store liquids that could be adversely affected by sunlight or heat on long voyages. Blue (“which everyone wants”) was used for ink bottles and medicines. Cobalt blue bottles contained poisons. Clear glass made with manganese gains a purple hue over time, while glass containing selenium (a trace element) goes yellow. Glass with soft colours – pinks and yellows – was fashionable in the Depression. 14 Oddly, uranium, before it was recognised
s s
The pieces of eroded glass (and sometimes pottery) they collect from the beach provide the inspiration for the shape of the finished piece of jewellery to come. “The glass isn’t cut or re-shaped, we make the silver fit its shape,” Hilditch says. Although his main job is that of a site manager for Glenville Homes, Atkinson clearly relishes his time as a silversmith in the couple’s home studio at Mt Martha. Hilditch sorts the found glass, first into colours and then shapes. They both emphasise that the sea-eroded glass can’t be reproduced mechanically. “It takes 20 to 30 years to get that genuine frosted look with all the sharp edges worn off,” Hilditch says. The salt and sun also take their toll on the glass. Glass worn smooth in rivers or lakes is different again because of the water’s different pH levels. “Genuine sea glass is pitted in the shape of a C, although they [counterfeiters] are getting closer. False glass is made overseas and we get email offers all the time,” Hilditch says. Although time consuming, Hilditch and Atkinson are committed to using the real thing. The popularity of both searching for sea glass and their jewellery is increasing. However, as the number of searchers increases the
April 2015 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 13
COVER STORY
Amanda Hilditch and Paul Atkinson in their home studio.
s s
as being deadly, was put in drinking glasses. Its presence can be detected under UV light. Green glass – sea foam green, to be exact – probably comes from Coke bottles sold in the 1960s. Hilditch and Atkinson say their interest in sea glass jewellery was sparked by daughter Tiana who collected pieces on the beach, thinking it was left behind by mermaids. And there was one piece that she especially wanted to wear. Now 12, Tiana and their son Liam, 10, are an integral part of the family team that roams selected beaches for sea glass. They are also both junior ambassadors for the Hastings-based Dolphin Research Institute. A percentage of the takings from Mornington Sea Glass items sold by Bullfrog’s Bali shop in Mornington goes to the institute, which researches dolphins living in Port Phillip. Through her research, Hilditch has been able to identify beaches where, in a less enlightened age, rubbish dumps were placed near – and even in – the bay. These beaches are now happy hunting grounds for their basic raw materials. The older the site the more likely it will yield coloured glass from an earlier age. “Those old pieces of rubbish are now
13
Some sea glass collectors swear they have success by following cycles of the moon and have rushed out to places because of the stars. valuable,” Atkinson says. “But finding it is really pot luck.” Hilditch believes they are giving “new life” to something once discarded. “It’s also a way of recycling and we can tell people where the glass comes from, it’s part of the piece’s provenance. “Some sea glass collectors swear they have success by following cycles of the moon and have rushed out to places because of the stars. “Really, it’s a whim of nature and there’s no guarantee when you have to rely on nature for your product.” Atkinson, who says he finds it easy to turn his hand to most things, is a self-taught silversmith who works with the tarnish resistant argentium sterling silver, a relatively new alloy that includes germanium with the traditional mix of 92.5% silver as well as copper. “Because the glass determines the shape of the finished jewellery no two pieces are
14 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | April 2015
the same,” Atkinson says, while admitting to being “too fussy, everything’s got to be spot on”. While demand is increasing for Mornington Sea Glass products, Atkinson says, “we are just a drop in a very big ocean” of the interest shown in coloured glass. Mainly through the internet, they have become aware of a network of collectors throughout the world and “mega locations” of sea glass in northeast England and the United States (where one beach has been declared a national park and bans the removal of any glass). “This promotes an interesting argument,” Hilditch says. “Because the glass is essentially rubbish, it’s not natural.” Sea glass at one location in England has layers of colours, the product of glassmakers pouring unused molten glass into the water, day after day, year after year. Eventually it has broken up, revealing layers of colour and waiting for the elements to turn it into “real” sea glass. Meanwhile, on the other side of the world, Atkinson and Hilditch and their children spend quality time at the beach, always keeping an eye out for a worn bit of glass that will determine the shape of the jewellery to come.
A shining star. Mercedes-Benz Mornington
2014 Provincial Vans Dealer of the Year. Mercedes-Benz would like to congratulate Mercedes-Benz Mornington’s General Manager, Chris Thoday and his staff on being awarded 2014 Provincial Vans Dealer of the Year. Over the last twelve months they have consistently demonstrated the dedication and excellence that have been hallmarks of the Mercedes-Benz brand. Find out for yourself by visiting Mercedes-Benz Mornington at 29 Tyabb Road, Mornington. www.mbmornington.com.au
Mercedes-Benz Mornington
29-31 Tyabb Road, Mornington (03) 5973 9688
April 2015 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 15
2886
LMCT443
mb mornington
CONTRIBUTIONS
WEBSITES NEED TO BE MOBILE FRIENDLY By FRED GILLEN* Google has announced that it will increase the weight it applies to mobile-friendly websites within its ranking algorithm, which means that traffic could drop on sites that are not mobile friendly. The announcement stated that “starting April 21, we (Google) will be expanding our use of mobile-friendliness as a ranking signal. This change will affect mobile searches in all languages worldwide and will have a significant impact in our search results.” Google doesn’t typically warn us about algorithm changes or use phrases like ‘significant impact’, and it doesn’t normally provide an exact date for when an algorithm change will occur. So what does it mean? Google is telling us to get our sites mobile ready or else. Google has provided a timeline to encourage those who haven’t already adapted their websites to be mobile-friendly to get it done now. Otherwise your site might experience a ranking decline. Website owners should check how Google sees the site and, based on the outcome, they may need to have a chat with their developer about optimising for mobile devices. Here is the link to Google’s own page that will allow you to test your site by just entering your website address: https://www.google.com/webmasters/tools/mobilefriendly/ If your website is not mobile-friendly, you have two options: create a standalone mobile site or update your current site to a responsive framework. You should discuss the benefits of each with your developer and, based on your particular site, arrange for the changes to occur before April 21. Gillen says he is happy to answer any queries. Email fred@fredgillen.com or mobile 0403 865 677. *Fred Gillen is an online marketing strategist.
WHEN CASH FLOW IS A CHALLENGE
WHAT TO SHARE ON SOCIAL MEDIA Knowing what to share and what not to share on social media can be hard to determine. Creating a steady stream of content is important. You need to consider: - What will people find interesting? - What kinds of content will provide
Jessica Humphreys* Social media consultant
‘It is important that social media is not used purely as a self promotion tool.’
2871
It’s an old story and known to every person in business: some trade debtors are slow payers. It’s not that they won’t pay, but for a whole range of reasons, they take longer to put the “cheque in the post”. Ordinarily that’s not too much of an issue. However, what if your own cashflow is going through one of those “tight” periods?
Or, perhaps a particular job has been larger than usual so the amount outstanding is more significant. Similarly, any business that has experienced growing pains understands cash is king and having cash locked up in invoices can be highly frustrating. Sav Neri, of Fifo Capital, says one of the best kept secrets to improving working capital solutions is through invoice financing. Under the process a business sells one or more of its current invoices to a third party, which then pays the business a large part of the face value of the invoice. In Fifo Capital’s case it’s 80% of the value of the invoice. When your customer (debtor) settles the account, Fifo Capital remits the balance of 20%, less its fee. It differs from factoring in that the credit control remains with the business owner and the business can choose how many invoices it sells. Neri says that while invoice financing has been used by big business for decades it has only recently been available to SMEs thanks to financiers like Fifo Capital. “It’s not uncommon for businesses to express their surprise and relief when hearing about what we do,” says Neri. “We keep on hearing, ‘ if only we knew about Fifo Capital’s funding option six months ago’. “It could be that a business wants to invest in new plant or equipment, or simply needs a quick fix to meet other obligations. “ Rather than having to go to the bank for an additional overdraft, assuming this option actually exists, the business can simply turn an existing asset (the invoice) into instant working capital . In fact many banks will recommend it, because it does not interfere in any way with the business’s existing financing,” Neri said. Fifo Capital says applications generally are processed within 24 hours, and once approved, funding starting from as little as $5000 can take only a few hours.
16 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | April 2015
value to your audience? - How can you demonstrate your point of difference? - What can you share that humanises your business? Once you have considered these questions try to build a collection of content covering the following: Share interesting information: think beyond pushing out self promoting posts and provide your followers with information that they will engage with - articles, industry surveys and reports, images, infographics and human interest stories. Share your own content: while it’s important to not use social media purely as a self-promotion tool, it is important to share and create your own content. Blogs are an essential part of social media. Develop your blog with content that provides your followers with interesting information that they can apply and also demonstrates your skills, abilities and services. Ask thought provoking questions: far too many businesses use social media as a broadcasting tool and neglect the opportunity they have to create two-way communication. Use this space to ask your audience engaging questions that get them thinking. Your objective should be to create ongoing conversations. Share your opinions: don’t be afraid to comment on things that are happening around you and to give an opinion. While you do need to take care if you’re commenting on something that is particularly controversial, if you deliver a well thought out response it can work in your favour. Carefully considering the type of content you want to care and share when developing your social media strategy can enable you to build a successful social media presence that stands out from he rest.
We’re here ... to help you achieve your business goals.
Some of our experts Professional solutions for the South East
*Jessica Humphreys operates Social Concepts, a social media consulting business. Send questions to Jessica@socialconceptsconsulting.com
BENEFITS OF HAVING A FINANCIAL ATTORNEY
* 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.
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
2869
BY JACQUELINE CONQUEST* Ever thought about what may happen to the operation of your business should you have a serious accident? It is not something we like to think about, but it is an important consideration. The appointment of a financial power of attorney means that if something happens to you rendering you incapable of entering into financial transactions, your attorney can carry on those activities on your behalf. This may include accessing funds and operating bank accounts. You may specify conditions or limitations on the exercise of the power given to the attorney. You can also appoint different attorneys (under separate powers) to act in regard to specific assets. For example a trusted sibling may be given power to operate the business and a spouse power to deal with the matrimonial home. Proper planning and thought to these issues can assist enormously in the unfortunate event that something should happen to you.
April 2015 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 17
HEALTH
Burning tomorrow’s fuel
Did you see Ben Cousins on the news, getting arrested for the umpteenth time? The former football champ now an off-the-rails “ice” addict? What a role model, I thought, for everything that’s problematic with modern life. Could there be a more ironically named substance than “ice” (crystal methamphetamine hydrochloride)? To explain why it’s so emblematic of modern society, I need to revisit a previous column. Last month I wrote about how mining the planet for its energy resources – that is, the potential stored deep in the earth in the physical form of coal and oil – and burning them to maintain an economy and a lifestyle is analogous to what is happening in our bodies. Simple physics – observable by everyone from the Chinese philosophers of ancient times to the climate scientists of today – says that if you break down matter to release the energy held within, whether it’s coal out of the ground or substances stored in the human body, one unavoidable outcome is an increase in temperature. And that once that energy is released, the resource is gone, and you are left with only the energetic after-effects: warmth and dryness. And once you start running on this energy, you need more of it. And more. There’s no putting it back in the ground, either. Thinking about our bodies – our own mini universes – we take the energy from food fluids and metabolise them into substances like blood and bodily fluids.
Michael Ellis*
Chinese Herbalist
These substances become deeply held resources that moisten, lubricate and keep us cool. They also have the potential to be broken down again for energy, so they are like the potential energy stored in a battery. When we need extra energy, our bodies have a mechanism to liberate this energy – to burn it. That’s what our metabolism does. A problem happens when we get so over-stimulated that we release too much of this stored energy. When we’re burning the candle at both ends, running on adrenalin, keeping up with our busy-busy lives – then we reach deep into the batteries, release that energy out of storage and bring it into circulation and out to the surface … where it heats us up. Coffee does this for us – as does any stimulant, chemical or sensory. Coffee, just by the way, has pretty much the same energetic effect as “ice”, it’s just a matter of degree. If you use a substance like an amphetamine, the effect of dragging energy out of the battery and out to the surface is so immediate and dramatic that it makes you feel great; it gives you enormous energy
18 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | April 2015
and sense of power … while it lasts. Once it’s expended, however, all you have is the after-effects: heat, dryness and a deep fatigue. Heat in the human system is an interesting phenomenon. I liken it to a taxi engine that runs non-stop for 20 hours and so depletes the oil and water that when turned off the worn-out engine simply stays hot. That’s something like what happens in the body when we start dragging too much out of the long-term batteries – burning oil and water, to continue the analogy. Once you start careering down this track and running down your battery, the only way to continue is to constantly take out more. You can’t slow yourself down to relax or recharge the battery; instead your body continues to run on tomorrow’s energy. Because our system is overheated like this, we feel restless and anxious, unable to relax. Let me just check my Twitter feed. This is the dynamic of addiction. Essentially it’s using tomorrow’s energy today. Play now, pay later. It’s a kind of addictive death spiral, and as a culture we’re on it. So many modern diseases are characterised by too much energy rising like this: from chronic migraines, to asthma, to insomnia, to anxiety. News vision of Cousins in custody showed a wide-eyed addict, bursting aggressively at his constraints, twitching uncontrollably, his mind addled (wasn’t he trying to break into the SAS headquarters or something hilariously improbable?) We’re not all to the point of Cousins, but as a society we’re on the same spectrum. Without putting too fine a point on it, I even see it in the political sphere, in the behaviour of our leading politicians. Even our politics is on steroids. We should hold out little hope of wisdom from that quarter. Behind the “ice” epidemic is the 24/7 “growth” economy, the non-stop stimulation of our communication and entertainment networks; the more-is-better principle – all of this. That’s why I get the feeling that it’s only warming up. *Michael Ellis is a registered Chinese herbalist in Mt Eliza. Visit www.mtelizaherbal.com
MARKETS
The market’s tilt at 6000 Teaching economics must be tough these days. It used to be all about equilibrium; about the way markets flow and adjust – or should adjust – around a variable notional point as supply and demand come into balance. Any constraint on these natural flows and balancing by “combinations” should be resisted as they harm the general good by creating distortions in price, power and privilege. This was always an idealistic version of the reality but it seems to be the case that wherever monopolies of one sort or another are dismantled prosperity spreads. Today Dr Adam Smith’s thoughtful elaboration of what is basically common sense is being challenged. In a deflationary environment of falling demand some sellers are increasing production to monopolise supply at the cost of price. Once they have control of the market, the price, they believe, will jump. Two Pilbara iron ore producers have low costs and a higher quality product than all the others so they are attempting to drive out competition in Australia, Brazil and China. It’s more or less working as volumes are rising even though the price is collapsing. The same, but in reverse, applies to the US shale oil producers except they have a more expensive product. They expected OPEC oil to be stood down as their shale output rose. The price is now falling and may fall much further as OPEC refuses to cut output. The cost will be large insolvencies. US banks this time will have to shoulder the pain, not the public. Even the central banks are extending their monopoly on price. They have the right to adjust short term rates, but now the Bank of Japan and the ECB are intervening in price of market rates and supply of volume. In 2008 the US central bank decided that things were so bad that pushing short term rates to zero was not enough, so it stepped across the line and created its own money to buy securities held by the banks. Now Japan has followed (actually Japan pioneered the idea six years earlier). Europe is creating 1.1 trillion euros to do the same thing. All up central banks have made $A14 trillion of new funds to intervene in this
Richard Campbell* Stock Analyst
way and some argue that this still isn’t enough. These reflections stem from this very strange situation where offshore rates are almost zero and in some European countries are negative. A 10-year German Bond returns .33% a year. In Switzerland, Sweden and Denmark wholesale depositors are charged a fee. The question is whether the .33% is a real reflection of the deflationary trends or whether these wafer thin yields are just a reflection of “monopolistic” intervention. As a result truck loads of money are coming our way to earn anything more than zero. Meanwhile, our asset prices – especially property – keep rising. This is forcing the RBA to choose between cutting to help struggling exporters or to sit pat so that property markets don’t push higher and then crash. So, over simplifying just a little the ore and oil “combinations” are distorting trade flows, while in the case of money bank “combinations” are distorting price. In both instances Adam Smith would say that this is just what he was warning
against. In the France of his day nonmarket power dominated and restricted trade. Colbert, the chief finance minister and minister for almost everything else, directed and intervened at every level. In one sense little has changed. Europeans are under the sway of an overarching bureaucracy and confined by one single currency. Instead of 28 adjustable parts moving according to whether each paid taxes, worked hard and did things efficiently, the total combination is
in a straight jacket with a depression in the south. In fact, it’s not going too far to say our share market wouldn’t be as high if the US, Japan and Europe didn’t have monopolistic central banks and had allowed those who abused free markets to get their just desserts. Seven years later we still live with the echo of this 2008 crash and this is before phase two of the intervention when the $14 trillion is reversed out of the system. This may all go to show that Adam Smith and his followers were extremely naïve, or it may show that our share market is way too high because it is aloft on policy, not fair value. An All Ordinaries at 6000 doesn’t reflect underlying economic reality – only what officials say is the price of money. And one thing we do know is that in the end reality trumps policy. * Richard Campbell is Executive Director of Peninsula Capital Management, Tel. 9642 0545. rcampbell@peninsulacapital.com.au
April 2015| Frankston / Mornington Peninsula / Dandenong BusinessTimes | 19
MANAGEMENT
Extreme leadership Extreme sports today are big business and, increasingly, extreme sportspeople in team sports need to be great business leaders. When James Spithill visited his home club, Royal Prince Alfred Yacht Club on Pittwater just north of Sydney, I was fortunate to be able to explore with him the links between extreme sailing in the America’s Cup and leading a business. Spithill grew up with his sister, Katie, and brother, Tom, on the shores of Pittwater living offshore in Elvina Bay where life revolved around the water. They started racing Manly Juniors together with some success under the watchful eye of their father, Arthur. They joined the RPAYC and prospered in its junior sailing program. Spithill graduated into sailing larger yachts in his teenage years and thrived on the competition of match racing, where two yachts race each other with each winner moving progressively through to a final. Spithill won his first World Youth Match Racing Championship at the age of 20. The following year, he was the youngest ever helmsman in America’s Cup competition when he sailed OneAustralia in the Louis Vuitton Cup in Auckland to select the final AC challenger. He has now sailed in five America’s Cups and won twice for Larry Ellison’s Oracle team. He is best known for leading his crew to a massive come-from-behind win against the Kiwis in the 2013 America’s Cup sailing 72-foot foiling catamarans. These yachts with their amazing technology began a new era in sailing as the spectacle of these incredible machines appealed to a wide range of people who had never considered sailing as a spectator sport. The television coverage was beamed around the world and captured people’s imagination with the speed, technology and bravado of the crews. Spithill’s leadership of the Oracle crew became an immediate urban legend when at 1-8 races down, with their backs to the wall, they progressively won eight straight races to snatch victory from the Kiwis. Few people believed Spithill when at 2-8 races down, he stated that: “We can win seven more races. We are confident in our boat and believe we can do it: we have nothing to lose”.
Hamish Petrie*
Business consultant
Our management columnist and keen yachtsman discusses leadership with James Spithill, ISAF 2014 Rolex World Sailor of the Year. Regular readers will understand the four business fundamentals of strategy, values, customers and people and how implementation binds these together. So, let’s look at the Oracle’s America’s Cup win using these fundamentals of business. Larry Ellison has a personal strategy of “buy the best, without compromise”. His strategy for the pursuit of the America’s Cup started with a derivative of this, which was along the lines of “get the best people, without compromise”. In every facet, he pursued this strategy to assemble the world’s best sailors, best technologists and engineers, best carbon yacht shipwrights, and best overall manager. He stole Russell Coutts, regarded by Spithill as the King of the America’s Cup, from New Zealand. Ellison challenged this group of people to become a team that could experiment, test and learn how to build a sailing machine that had never been seen before: a machine that would not only win the cup, but stimulate widespread excitement in audiences that had never before been interested in sailing. Spithill has strong personal values that he uses to shape his teams. The team is Number 1, always. Personal egos need to left behind on the dock, which can be challenging when virtually every one of the sailors has Olympic medals and world titles hanging around their necks. Any issues need to be sorted out directly with the person involved. It is interesting to note that all of Spithill’s sailing successes have come in crewed yachts rather than individual events so it is obvious that this value works extremely
20 | BusinessTimes Frankston / Mornington Peninsula / Dandenong |April 2015
well. “Talking to the crew person directly to sort things out helps to ensure that crew harmony always comes first”. Customers in this context include not just the spectators along the water’s edge, but the television audiences worldwide. America’s Cup campaigns have cost a lot of money, reportedly between $50 to $100 million so expanding the customer base to increase revenue is clearly a critical strategy. Having spectacular yachts which are similar in speed with strong competition is a great formula and the 2013 cup exceeded these ambitions. Sailing rules and technology are not well understood by American TV audiences so a major strategy element was to explain these details simply. They developed new technologies to be able to superimpose graphics over live sailing images, which won them an Emmy award. Despite all of this, the TV audience results were still below hopes, so this has become a major driver for the next cup in 2017. To increase the ability to reach both European and American audiences, they have chosen to run the event in Bermuda, whose mid Atlantic time zone location optimises access to larger TV audiences globally. They have many other strategies to increase global appeal by learning from other elite sports organisations like Red Bull. Getting more teams from more countries requires lower costs with smaller yachts and smaller support crews. A goal is to try to lower the costs to a similar level with other elite sports, like NASCAR teams, which typically run around $30 million a year. Running lead-up events around the world will also help to increase the customer base. The people component is critical in a sport where neither the machine nor the competition have even been seen before. Learning in every possible way was the mantra for the Oracle team. It developed new ideas into new materials and new techniques every day. During the final series, Oracle’s shore crew modified the yacht every night to make incremental improvements. Every modification had to be approved by scrutineers before it could be used, so it was a particularly complex process. Despite this, the learning process worked so well that Spithill stated that “the commitment of the shore crew inspired the sailors to give their very best every day”. It was during this process that Larry Ellison said that they finally “cracked the code” to be able
James Spithill, Rolex World Sailor of the Year, at his home club Royal Prince Alfred on Pittwater, north of Sydney.
to foil upwind and through tacks and this knowledge was the key to their improved performance in the second part of the Cup. Overall, this reinforces the belief that every business will benefit from focussing its people on learning, particularly when the learning is done under extreme stresses with little time for errors. Implementation is the cement that binds strategy, values, customer and people into real success and it is here that Spithill excels. “I don’t think that I am more talented than other sailors, but I have no problems in outworking them”. Building trust throughout the team is critical and this was done by hour upon hour of hard physical and mental training. One technique was to exercise hard in a gym to get heart rates above 90% of maximum and then stop and solve a new complex task before repeating this again and again. James believes that there are no shortcuts to success, just hard work. It is difficult to imagine the stresses placed on the human body to sail these beasts. The races only last about 25 minutes, but throughout this time, heart rates are above 90% of maximum, apparent wind speeds across the deck are over 100 kilometers an
hour and the G forces during manoeuvres can be huge. Having trust in everyone in the crew is critical to success. Spithill excels in implementation because of his coolness under stress. In the “winner take all” last race, they had a substantial wing sail failure on their way to the start line. While the repair crew was hoisted up the mast to effect repairs, the catamaran limped to the start line. James looked over to tactician Ben Ainslie and they both burst out laughing. More than $100 million spent so far, and it all comes down to this. Spithill believes that you have to enjoy the pressure and responsibility and have fun, and this permeates his crew so, despite the glue used in the repairs not being dry, they went on to start successfully and blitz the last race. It was interesting to me that not only James Spithill, but siblings Tom and Katie, have all excelled in sailing, so I asked father Arthur if there was any particular advice that he had given them that they have carried through their careers. He thoughtfully replied, “Yes, a fast boat is a quiet boat”. This means that there is no shouting or yelling during a race because everyone knows the plan and their job, which is to
*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
2878
2870
rs is th ome ng st di cu a re ’re oo. e m s. u t r u’ e, yo it, the ime o y g ng to sT 3 15 If essa adi ing nes 3 7 m e re talk usi 47 B r 1 a art gh 4 ,0 St rou g ar th M l l Ca
implement the plan. They know their tasks and what to do if something goes wrong. All of these are great concepts that can be applied to business as well. Spithill did have some specific advice for business leaders: “ Create an environment where people can speak out openly, listen to your new people as they are often the source for great new ideas and, overall, support and implement new ideas wherever possible”. Sounds like a learning organisation to me. James Spithill’s story is far from over. He has signed on as skipper for the 2017 America’s Cup defence for Oracle. He is exploring other opportunities in sailing and business. Watch this space. Action planning questions: 1. Have you considered how you can improve your business by learning about parallels between your business and an elite sport? 2. Do you focus on getting the best people, without compromise? 3. Is your business team always Number 1, with personal egos being left behind? 4. Do you provide great leadership under stress, by being able to stay cool and see the fun in work? 5. Is your business quiet, because everyone understands their job to implement your strategy and what to do when things go wrong? 6. Can people throughout your organisation speak out and gain support for new ideas?
April 2015 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 21
CONTRIBUTIONS
ADRIANO’S SUCCESS WITH MUM’S SPANISH RECIPES The Spanish Bar on the banks of Kananook Creek in Seaford has customers raving about the traditional food, and owner Adriano Gonzalez is happy to let them in on a little secret. “They’re my mum’s recipes,” he said. “And when they ask if she is a chef, I say no, she’s Spanish. Adriano was raised in Buenos Aires after his parents emigrated from Spain. His Aussie wife Mary-Joe suggested they try Australia “just for six months”. With work not forthcoming in his area of qualification, the need for finance, and missing his mother’s cooking, Adriano gravitated to hospitality, and soon knew he wanted his own business. “We looked at thousands (of sites) – in Spain, Argentina, Queensland, Byron Bay, Melbourne, Adelaide – everywhere,” he said. But, wherever he looked, the numbers didn’t add up. Discouraged, the new Seaford resident eventually fronted up at Frankston Council asking for help and he found the city’s economic development unit (EDU) ready to assist. The unit went through the demographics and came up with Seaford as having a lot of young couples and a lot of middle class people, “which they thought would be my market,” Adriano said. The 35-year-old was delighted, because he had “hoped it could be in Seaford”, but it turned out the hard work was just beginning. Without a perfect handle on English and little understanding of the multitude of administrative requirements to set up a new business, Adriano admits he nearly gave up. Today he thanks council’s EDU for getting him through it. “They did a lot,” he said. “They researched the market, what people want, talked to me about advertising, health regulations, and they worked with me on how to apply for permits and the liquor licence.” Adriano described council’s EDU team as “the best”, and he doesn’t know how close to the truth he is. The Regional Australia Institute ranks 563 local governments throughout Australia in more than 70 different areas. When it comes to local
economic development support, the RAI listed Frankston fourth best in Australia, with only Sydney, Melbourne and Gold Coast rated as providing a better service. “Our council identified economic development as a significant priority four or five years ago,” the mayor Cr Sandra Mayer said. “We want our residents to be able to work close to home, and that means we need local businesses to generate those jobs. We also want our residents to be able to enjoy quality hospitality and entertainment close to home, and visitors to enjoy their Frankston experience so much they come back and bring friends or clients with them.” To achieve this, council has established: • The small business investment program which supports small business operators in Frankston, whether they are new businesses, expanding businesses or looking to relocate to Frankston. • The Invest Frankston campaign to raise awareness of the benefits of investing in Frankston.
‘We had one lady come from Moorabbin because her friend told her we have great Sangria.’ • Priority planning to reduce planning times for city centre applications. • A structured grants program for small business - the second Council in Victoria to offer the program, with the other being the City of Melbourne. • The Build Your Business development program to help local businesses upskill • The Frankston Mornington Peninsula Business Breakfast Series. • The Splash Card initiative to promote city centre businesses to students. “These initiatives are about attracting new businesses to Frankston, helping successful existing businesses to expand, and helping struggling businesses to improve their operations,” Cr Mayer said. “The level of investment we are experiencing tells us we are being successful, as does the Regional Australia Institute listing our EDU as the fourth best in Australia, only behind three of the biggest cities.” After operating the Spanish Bar for nine
22 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | April 2015
months, Adriano is now employing “12-15 people” and, while ever appreciative of the ongoing assistance council’s team is providing, his biggest concern is doing his mother’s recipes justice. “We try to keep that special touch. We keep it simple, just three or four ingredients but full of flavour,” he said. “If I had to do it all again I would. The ducks were our first customers, but now we get people from Brunswick, St Kilda, Mordialloc, Mt Eliza. We had one lady come from Moorabbin because her friend told her we have great sangria.”
GREEN OLIVE HITS THE SWITCH TO SAVE ON POWER After pursuing a hectic corporate lifestyle for many years, Greg and Sue O’Donoghue decided in 2003 to pack up their kids, Sam and Sophie, and move to the wine-growing region of the Mornington Peninsula. They created Green Olive at Red Hill, a picturesque 27-acre farm where they grow olives, grapes, herbs and veges, raise sheep, chooks and ducks, and turn produce from local farmers into a range of goodies. While the O’Donoghues are dedicated to creating food for the heart and soul, with the aim of being fully sustainable, they still face the same challenges as many businesses when it comes to energy usage, consumption and cost. After a bad experience with their previous energy supplier, including lack of customer service, billing inconsistencies and rising costs, Greg O’Donoghue contacted ERM Business Energy to see how they compared. “We waited nine months for our previous retailer to get back to us with an answer about our power consumption with no response, so we decided to look elsewhere,” O’Donoghue said. “I even contacted the Energy Ombudsman in Victoria about the disappointing lack of service we were receiving.” “We shopped around a few electricity providers, but ERM Business Energy was the best by a long shot. We couldn’t have been happier with their response.” Green Olive at Red Hill, named Winner of the Excellence in Food Tourism category at the 2014 Victorian Tourism Awards, requires a substantial amount of electricity for its business. “We have to power the cool rooms where
the sheep are hung after butchering, run the commercial kitchen including the ovens and kettles to make jam and chutney, and operate the irrigation system for the olive grove and vegetable gardens, so it all adds up,” O’Donoghue said. The prospect of having to switch power companies is often a deterrent for many businesses, but the O’Donoghues found the changeover to ERM Business Energy “quick and easy”. “Our ERM account manager did all the work for us, so switching was easy. Now we know where we stand with our power bill every month. It’s always on time, it’s easy to understand and if I have any questions, I just shoot them an email and
‘We waited nine months for our previous retailer to get back to us with an answer about our power consumption with no response, so we decided to look elsewhere.’ I get a prompt response, usually the same day,” O’Donoghue said. ERM Business Energy encourages
businesses to look at the bottom line, when comparing electricity charges. The company says that many retailers are seen to be offering big discounts, but in reality all that counts is how many cents a kilowatt hour businesses are paying. “When we switched to ERM, we saved between $8000 and $10,000 a year, which made a big difference to our business,” O’Donoghue said. “And with ERM, we’re not locked in. There’s the flexibility to leave whenever we want - although we’re 100% satisfied, so we’re not going anywhere. I’d happily recommend ERM to any business looking for great service, simple billing and big savings.”
BUSINESSTIMES DIRECTORY BOOKKEEPING
HAIRDRESSER
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 2873 W: www.radbookkeeping.com.au Myob Training
hair on barkly Ph 5975 2397
Rad Bookkeeping
we use and recommend KEUNE products
W: www.haironbarkly.com.au E: info@haironbarkly.com.au
2872
CONSULTING
Shop 3/74 Barkly St, Mornington Victoria 3931
SECURITY
Learn how to
BGoEfroSmEbeEingNoneAinSa croAwdNtoEtheXPrecEonRiseTd expert in your field
2874
Get a free Quote Call 1300 66 11 99
2876
www.eclipsesecurity.com.au SOCIAL MEDIA
Promote your business for just $120 a month* Use this space to send a message to business owners of the region. Tell them how your product or service can help them. Call Marg on 0414 773 153. Email marg@businesstimes.net.au
*For six issues paid monthly. Plus GST
Jessica Humphreys 0407 082 493
jessica@socialconceptsconsulting.com www.facebook.com/socialconceptsconsulting www.instagram.com/socialconcepts
2875
April 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
To the Business Owner
AVAILABLE AVAILABLE AT AT TELSTRA TELSTRA BUSINESS BUSINESS CENTRE CENTRE MORNINGTON MORNINGTON DOT (Digital Office Technology) and DOT (Digital Office Technology) and BIZESSENTIALS business bundles BIZESSENTIALS business bundles TM TM
New fixed broadband customers get: New fixed broadband customers get: 3 months free access when you stay 3 months free when you stay connected for access 24 months connected for 24 months That’s a minimum of $240 off That’s minimum ofup $240 off reliability A greatadeal backed by great A great deal backed up by great reliability
Telstra Business Centre Mornington 7/1 Mornington - Tyabb Road, Mornington, Telstra Business Centre Mornington 3931 7/1 Mornington - Tyabb Road, Mornington, PH: 39311300 692 874 PH: 1300 692 874
POSTAGE
PAID
AUSTRALIA
Corporation Limited ABN 33 051 775 556.
2868
THINGS YOU NEED TO KNOW: DOT: Credit equal to 3 months free access charge (excludes hardware). If you cancel early you may have to repay a portion of the credit. Minimum $2160. three free months access charge free for new fixedIfbroadband phone Minimum cost $1739. THINGS YOU NEED TOcost KNOW: DOT:BizEssentials: Credit equal toFirst 3 months access charge (excludes hardware). you cancelor early youcustomers. may have to repay a portion of the DOT and BizEssentials services available in selected locations. Spectrum and TMfixed are trademarks and ® registered trademarks Telstra credit. Minimum cost $2160. BizEssentials: First three monthsThe access chargedevice free for new broadband or phone customers. Minimumof cost $1739. Corporation Limited ABN 33 051 775 556. DOT and BizEssentials services available in selected locations. The Spectrum device and TM are trademarks and ® registered trademarks of Telstra