Business Times july 2014 by Keith Platt

business networking: Frankston | Mornington Peninsula | Dandenong

July 2014 | $4.95 (GST inc.)

Chairmen of the

Boards Catching surfing’s corporate wave

Plus: online mentors our readers have the chance to win 48 hours of business support

cost of cutting the law of equal suffering might not improve your performance

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 Fantasticrooms, onsite café, facilities including meeting restaurant, serviced Fantastic onsite facilities including meeting rooms, café, restaurant, apartments, laundromat & more serviced meeting rooms, café, restaurant, apartments, laundromat & more serviced apartments, laundromat & more

2599

• • • • •• •• •

who/what/where

Inside

www.businesstimes.net.au

ISSUE 47 / JULY 2014

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

ONLINE MENTOR:

ARE YOU NOTICED?: Getting your message out there may take a lot longer than you think.

Columns

Email: General: inquiries@businesstimes.net.au Editorial: news@businesstimes.net.au Advertising: sales@businesstimes.net.au Artwork: production@businesstimes.net.au

Networking: Ivan Misner 10 Social Media: Jessica Humphreys 16 Excel tips: Neal Blackwood 16 Marketing: Bruce Doyle 16 Markets: Richard Campbell 19 Managing: Hamish Petrie 22

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

July 2014

business

ing: Frankston

network

n Peninsula | Morningto

| $4.95 (GST

COVER: Board members – the faces behind three businesses that emerged from the Mornington Peninsula’s surfing culture: PAGE 12

inc.)

g | Dandenon

f the men o

Boards

Chair

rate wave surfing’s corpo catching

Photos: Keith Platt s mentor onlines have the chance to t our reader of business win 48 hours RENT YOUR

www.facebook.com/BusinessTimesAU

suppor

OFFICE

| Only TODAY

g cuttin ng might costofof equal sufferi mance the law e your perfor not improv

a limited

ofﬁces number of

available

so get in

quick! 2599

Plus:

from 1-15 people Ofﬁces for • Serviced per week week just $105 just $15 per Ofﬁces from including • Virtual serviced onsite facilities • Fantastic café, restaurant, & more meeting rooms, laundromat apartments,

Check updates online at www.businesstimes.net.au

2600

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.

Our readers can win 48 hours of online business training.

Including GST / GOV Rebate Applied

2 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | July 2014

Mercedes-Benz Berwick. Mercedes-Benz Berwick. 2013 Metropolitan Dealer of the Year. 2013 Metropolitan Van Dealer of Year. the Year. Dealer of the 2013 Metropolitan Van Dealer of the Year.

Passenger Vehicles and Vans Passenger Vehicles andandVans • Over 250 New, Demonstrator Approved Pre-Owned Vehicles • • • • • • • •

Over 50 Commercial Vehicles Over 250 New, Demonstrator and Approved Pre-Owned Vehicles Extended Test Drive options Over 50 Commercial Vehicles A “We come to you” Showroom experience at your home or office Extended Test Drive options After Care products for your vehicle A “We come to you” Showroom experience at your home or office

•

After Care products for your vehicle

• • • • • • • •

Pick up and Drop off Service, Loan Vehicles Express Servicing every Saturday 8.30am-12pm Private Transfers to Westfield Gold Class and Boutique Restaurants while you wait Pick up and Drop off Service, Loan Vehicles Luxurious Lounges, WI-FI and Barista made beverages Private Transfers to Westfield Gold Class and Boutique Restaurants while you wait Competitive Pricing on all Servicing intervals Luxurious Lounges, WI-FI and Barista made beverages

•

Competitive Pricing on all Servicing intervals

• • • • • •

Exclusive Agility Programme with Guaranteed Future Value^ 3 Qualified Business Managers on site Mercedes-Benz Service Plans Exclusive Agility Programme with Guaranteed Future Value^ Mercedes-Benz Insurance Mercedes-Benz Service Plans

Mercedes-Benz Servicing and Genuine Parts Mercedes-Benz Servicing and Genuine Parts • Express Servicing every Saturday 8.30am-12pm

Mercedes-Benz Finance Mercedes-Benz • 3 Qualified BusinessFinance Managers on site

GLEN WAVERLEY (12 MINUTES) RN (23 LEY MI TUNGLEN WAVERLEY NU EL MINUTES) TES N(12 BU MO ) RN NA (23 LEY SH MI TUN NU TES NEL )

CBDBU

DANDENONG (15 MINUTES) DANDENONG (15 MINUTES)

Scan QR Code with your smartphone.

EASTLINK EASTLINK

• Mercedes-Benz Insurance Visit Craig Howard and his award winning team today at 518 Princes Hwy Berwick or contact us today on 1300 MBB MBB (1300 622 622) and we will be at your home or office with our offsite Visit Craig Howard andinhis showroom experience noaward time. winning team today at 518 Princes Hwy Berwick or contact us today on 1300 MBB MBB (1300 622 622) and we will be at your home or office with our offsite showroom experience in no time.

CBD

NA S

WY PRINCES HWY PRINCES HWY

BERWICK WA R

RA GU BERWICK L

WA R

RA GU

^Guaranteed Future Value (GFV) is subject to vehicle maintenance in accordance with the manufacturer’s specification, Fair Wear and Tear conditions and Kilometre Restrictions. Agility Finance is restricted to approved customers of Mercedes-Benz Financial Services Pty Ltd ABN 73to074 134 517 (MBFS), Australian creditwith licence and is subject to standard ^Guaranteed FutureAustralia Value (GFV) is subject vehicle maintenance in accordance the 247271 manufacturer’s specification, Fair creditand assessment and lending criteria. Please contactAgility an authorised dealer forcustomers further details and full terms and Wear Tear conditions and Kilometre Restrictions. Finance isMercedes-Benz restricted to approved of Mercedes-Benz conditions (including vehicle eligibility). Retain feature may be subject to standard credit assessment and lending criteria of MBFS Financial Services Australia Pty Ltd ABN 73 074 134 517 (MBFS), Australian credit licence 247271 and is subject to standard if you choose to refinance the GFV at the end of the Agility term. credit assessment and lending criteria. Please contact an authorised Mercedes-Benz dealer for further details and full terms and conditions (including vehicle eligibility). Retain feature may be subject to standard credit assessment and lending criteria of MBFS if you choose to refinance the GFV at the end of the Agility term.

BusinessTimes |3 Mercedes-Benz Berwick 2013 Metropolitan Dealer of the Year, 518 Princes Highway, Berwick, 1300 MBB MBB, www.mbberwick.com.au LMCT 578 Mercedes-Benz Berwick 2013 Metropolitan Dealer of the Year, 518 Princes Highway, Berwick, 1300 MBB MBB, www.mbberwick.com.au LMCT 578

2625

Scan QR Code with your smartphone.

profile

n Bizzquiz:

Stephen Robin Sponsorship and trade manager ASN Events, Balnarring Picture: Tim Bracher

Stephen Robin, a former executive with the Shire of Flinders and then the amalgamated Mornington Peninsula Shire, has been with ASN Events for the past 15. As sponsorship and trade manager he oversees events and believes he is known best on the Mornington Peninsula for his involvement with the International Cool Climate Wine Show. In between leaving local government and joining ASN’s Balnarring office, Robin was manager of corporate affairs at the Department of Conservation Natural Resources and Environment, marketing manager for Peninsula TAFE and a freelance marketing consultant on the peninsula.

In 10 years I will be ... living in Burgundy – maybe. Our business planning entails ... projecting where conferences are heading in terms of access over the internet.   Tip for success ... persistence overcomes resistance. I am inspired by ... the many, many people I have met over the years. Anyone starting a business should ... look for a mentor. I’ll know I’m successful when ... clients thank me for my help. My mother and father always told me ... it’s important to be nice to people.

I dreamed of being ... a diplomat.

I wish I had ... the ability to start up a foundation to provide random acts of kindness.

My first paid job was ... as a Myer Christmas casual.

I wish I had not ... nothing springs to mind – I am happy with what I have seen and done.

2608

We’ve got you covered! Empowering Quali t y Businesses

Call today on 1800 668 225 or visit www.novabookkeeping.com.au

Streeesssed? Nova could be in your corner today. We provide a complete solution to all your traditional bookkeeping needs. Our personal service has made us a firm favourite with many small and medium businesses in Australia. Let Nova take on the hard stuff today.

UNdER&NEw Computer Office Solutions owNERShiP for Small Business Computers Peripherals A better customer experience!

The Hardware new owners bring many years ofSecurity corporate Internet IT Management experience to MITS. Software

Scanners

NewPrinters MITS Remote Monitoring Service Microsoft Certified Technicians NewFax Machines MITS Cloud Backup for critical data & Design Network Setup New MITS Cloud-Based file sharing / collaboration Linux Design, Implementation and Support New Field Service Software Solution Microsoft Server Certified Technicians New CRM: Advisory, Consulting and Hosting services Network and Server: Design, Setup & Support Computer:ITSales, Repairs & Support Melbourne Solutions has been owned and Electronics Laptops, iPads, Phones operated by Repairs: the same person since 1986.+ more! Call now to schedule a free 90min assessment of how your IT solutions meet your current and future business objectives!

Phone: 1300 667 102

1008

Trust

 BAS PREPARATION  PAYROLL  ACCOUNTS PAYABLE & RECEIVABLE  DATA ENTRY  MANUAL CASH BOOKS  DEBT COLLECTION

BusinessTimes Frankston / Mornington Peninsula / Dandenong | July 2014

2601

Over 20 Years Experience I Small Business Specialists I Finance Options Available

26 Silkwood Rise, Carrum Downs 3201 Phone:1300 667 102 I Fax: 03 9773 6987 www.melbourneitsolutions.com.au

business news

IT teams offers help to SMEs A small piece of equipment sitting beside a technician’s desk may be a pointer to at least part the future of Melbourne IT Solutions. Even if it does not become a large part of the Carrum Dowåns-based company’s future, the 3D printer illustrates the attention new owners Mary Ioculano and Jeff Cornock pay to technological change. Both come from similar IT backgrounds in the large corporate sector and are committed to giving SMEs the same advantages available to big business. Cornock has for 35 years been involved in software development and IT management. “I grew up in the industry in the traditional manner,” he says. “We’ve both been IT managers with significant companies.” Since taking over Melbourne IT Solutions in February they have continued and expanded the company’s involvement with consulting with SMEs and constructing and managing systems.

“Because we are pro-active we can configure software so we can monitor their systems off site and let them know of any impending problems,” Ioculano says. If problems are detected they can often be rectified remotely. “This early warning on servers sends us an email or SMS. “A lot of big IT companies do this sort of thing and we do it at a base level, managing systems, making sure security is OK and everything is running as it should.” Cornock says remote monitoring a company’s IT system can give an alert to “online vandalism”, which he says is mainly mischievousness rather than industrial sabotage. “Hacking is a bit like graffiti and people who write viruses. They monster a webpage. “We can find out if a system is not working before someone arrives at work. “We eliminate common problems and if we’ve supplied the system in the first place

it’s easy to replace parts.” Melbourne IT Solutions business also sells, services hardware and repairs electronic equipment (PCs, Macs, car audio equipment, tablets, iPads, GPS units, phones and circuit boards). Cornock says they specialise in providing computer systems for the SOHO (small office home office) sector and build servers to provide access from 20 sites. In the audio-visual sphere, the company is a warranty and service centre for televisions and tablets for brands including Kogan, Dodo, Teco and Hi Sens and electrical goods from Target and Thomson. It also retails and wholesales ex-demonstration and seconds equipment, such as HD TVs, HD set top boxes, soundbars and tablets. Meanwhile, back at the technician’s desk, the 3D printer is being readied to make its debut – a small plastic cube imprinted with the Melbourne IT Solutions logo (a smiley face inside a computer screen). Its next job might be “printing” brackets and other bits and pieces needed to make a larger version of itself.

2602

July 2014 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 5

BUSY BITES

Transport hub a priority Frankston mayor Cr Darrel Taylor has listed improvements to central Frankston’s rail-bus interchange as one of the city’s top five priorities. In his 2013-14 council budget introduction, Cr Taylor said another priority was a regional boating facility as part of Frankston’s improved waterfront. Also on the priority list are: • A new waster transfer centre • A health and human services hub adjacent to the hospital to support residents with mental health problems and drug and alcohol addiction • Improvements to regional basketball and netball facilities and an upgraded Carrum Downs Recreation Reserve. Cr Taylor said new developments underway included Peninsula Aquatic Recreation Centre, a function centre at Frankston Park and a redeveloped yacht club.

Frankston’s budget costs

New minimum wage rates applied from 1 July – and pay guides are listed on the Fair Work Ombudsman website The transition to modern award rates of pay ended on 1 July, making it simpler to access information on wages and conditions. Since 2010, wages in awards have been gradually phasing from multiple state-based rates to one national rate. The Fair Work Ombudsman website was relaunched in June and employers can now check pay guides that apply to their industry and create their own account where they can save information relevant to their workplace. The website also assists users with basic information, such as wages, and provides tools and resources for employers who want to broaden their workplace knowledge, update their skills and discover new and more productive ways of working. The website has an interactive Online Learning Centre, which has already attracted more than 10,000 users, with courses on topics such as ‘Difficult conversations in the workplace’ and ‘Hiring new employees’. The national minimum wage increased to $16.87 an hour on 1 July and applies from the first pay period in the new financial year.

telco complaints up ... and down The Telecommunications Industry Ombudsman (TIO) received 36,256 new complaints in JanuaryMarch 2014. Complaints increased 8.7% on the previous three months, but were 9.4% fewer than at the same time last year. For the third quarter in a row, the TIO has received fewer than 20,000 complaints about mobile services. Complaints about mobile phones have dropped 19.4% when compared to the same quarter last year. “The reduction in mobile phone complaints is

mainly due to fewer complaints about faults, which have almost halved compared to the same time last year,” Ombudsman Simon Cohen said. Most complaints, based on population figures, were made by Victorians.

mental health in the workplace Millions of Australians believe their workplace is not mentally healthy, fuelling high numbers of sick days and revealing that many workers face an unacceptable risk of developing depression and anxiety from job stress. The findings are contained in new research that shows nine out of 10 Australian employees think a mentally healthy workplace is important, but half say that they don’t work in one. These workers are three times more likely to take sick days due to mental health problems compared to other workers. The research has been released as beyondblue and the Mentally Healthy Workplace Alliance unveil an Australian-first interactive guide that allows businesses to create a free, tailor-made mental health plan at www.headsup.org.au The Heads Up campaign, funded by the Australian Government Department of Health, encourages bosses to take action in the workplace on mental health and give it the same priority as physical health and safety.

retailers and social media Aussie tech startup Bigcommerce, a software company that powers online retailers, has teamed up with Twitter to do a study into how online retailers use social media to connect with customers. Some of the findings include: • 60% of online shoppers have purchased from an SME because of Twitter • Three in four shoppers feel better about an SME after following and reading their tweets • 90% of followers who got a reply from an SME

2603

Maintaining and renewing Frankston’s infrastructure like public buildings, parks, footpaths and drains will cost nearly $21.5 million in 2013-14. Almost $29 million will be spent on new capital works ($14.5 million) and capital works to meet compliance and upgrade requirements ($14.29 million). Finalising the swimming pool complex will cost $4.25 million over the next 12 months.

new minimum wage

Fresh Air. Fresh Ideas. reserve a slice of paradise & enjoy stunning views at your organisation’s next

MEETING, CONFERENCE, BUSINESS RETREAT, CORPORATE EVENT or FUNCTION.

features

Service & menus that provide an exceptional experience for your attendees. 150 people capacity | WiFi | Audio/Visual Capabilities | On-site Activities

ENQUIRE TODAY e: lisa@ranelaghcatering.com.au m: 0400 688 916 WWW.RANELAGH.COM.AU

6 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | July 2014

had positive brand sentiment - showing it’s vital for brands to engage their fans on the social network Retailers in sports and rec, jewellery and accessories have a higher than average ROI per follower (21x and 53x) Although a lot of the talk for small businesses heading online seems to be centred on Facebook, more SMEs should be looking at Twitter if they want to grow.

RACV’s 2014 Driving Your Dollars survey found the average cost of owning a car is $212 a week or 73.5 cents a kilometre. As was the case in 2013, the small car class emerged as the most competitive. The leader of the micro car category – that is the cheapest new car to buy, own and operate – is the Suzuki Alto GL, with an estimated on-road price of $14,425 and weekly running costs of $115.58. For the second year in a row the most expensive vehicle to own and operate is the Nissan Patrol ST-L. With a drive-away price of $89,713, it costs $408 a week to keep on the road. The survey examined more than 100 popular vehicles; taking into account all the expenses associated with normal car ownership including purchase price, interest, fuel, new tyres, insurance and depreciation. The survey calculations were based on private ownership of a vehicle over five years and driving 15,000 km a year.

PICKING THE RIGHT PEOPLE NOT TO HIRE Psychology firm SACS Consulting says it has a 45% accuracy rate in predicting which people are likely to do bad things to their colleagues or their organisation before they are hired. Findings of a study of more 1000 professionals in Australian workplaces were correlated with

the HEXACO personality test and the Schwartz Personal Values Questionnaire to determine the relationship between personality traits, personal values and work behaviour. “SACS has incorporated the findings of this research in its psychological assessment tools to give its clients a better method of assessing whether a potential employee will improve or hinder workplace productivity and culture,” says SACS managing director Andrew Marty. The company listed seven “worryingly common” toxic work behaviours: • 87% of employees ignored or snubbed people they did not like at work • 55% of employees had taken the property of organisations they had worked for • 68% of employees ignored safety or occupational health and safety rules at work • 56% of employees left jobs because there were people that they had not got on with • 73% of employees said that at some stage in their career they had taken a sick day when they were not really sick • 67% of employees had been intentionally rude to other people at work • 88% of employees had broken rules at work “Bad behaviour at work is contagious,” Marty says. “When employees begin to do these things they spread throughout a workplace and can become part of the corporate culture. They also tend to stifle out good behaviours among other staff such as helping or advocating on behalf of the organisation.”

Small Business Victoria is back for 2014 with hundreds of workshops and networking events planned throughout August. Small Business Minister Russell Northe said that this year’s festival will include more events outside busniness hours and in Melbourne’s outer suburbs. Events in Frankston, Rosebud, Mornington and Cranbourne will cover topics like business development, online business and marketing, through to employing and managing staff. A higlhlight will be the Creativity for Business Success event series featuring singer-songwriter and successful business operator Claire Bowditch. She will talk about creativity, innovation, problem solving and the benefits of right-brain thinking in everyday business. Bowditch will appear at Cardinia Cultural Centre on Lakeside Blvde, Pakenham, on 13 August. “This year the Casey Cardinia region is hosting a range of programs as part of the festival and its own regionasl business week from 25 to 30 August,” Mr Northe said. The Small Business Bus will be in Rosebud on 25 August, Pakenham on 27 August and Cranbourne 28 August. The Bus offers free mentoring and information on government services.

2604

ALTO IS THE CHEAPEST RIDE

Small business festival

July 2014 | Frankston / Mornington Peninsula / Dandenong | BusinessTimes | 7

NETWORKING gallery

1. Rosebud Country Club hosted a business breakfast on 24 May and more than 100 guests attended to hear Environment Minister Greg Hunt talk about the federal budget and the economy. Pictured are Karen Rumley, of I.D.Yours, Scott Gordon and Karen Stephens, of NAB. 2. Alan Wilson, group executive general manager of Inghams, with business breakfast guest speaker Greg Hunt. 3. Paul McGuinness, of McGuinness and Hoskings, and Prabath Kottegoda, of Quest Frankston on the Bay, at the Rosebud Country Club business breakfast. 4. Dandenong Chamber of Commerce held its May Networking Night, hosted by Pitcher Partners at Arco Restaurant on 27 May. Pictured are Warren Otter, of Otter & Associates, Vicki Macdermid, Partner and Executive Director Pitcher Partners, Hakan Vatandas, of Shisham Products, and Graham Sexton, of Forklift Fundamentals. 5. David Luca, of CUA, David Knowles, Partner and Executive Director of Pitcher Partners, and Mark Lang, of Direct Telcom Solutions. 6. Joe and Charlotte Tabatabai, owners of VAP Employment, at the Dandenong chamber networking night. 7. Dandenong Retail Traders held its May networking night at the new City of Greater Dandenong municipal offices on 4 June. Pictured are Peter Helmore, of LRM and Geoff Fraser, of City of Greater Dandenong. 8. Glenys Cooper, chairperson of Dandenong Retail Traders Association, and Cr John Kelly.

6 5

Eyewear As Individual As You Are Now stocking

BORSALINO

Ph 5975 3235 57 Main Street, Mornington

MainStreet Eyecare 2605

8 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | July 2014

2606

Limited Edition

9. Inga Peulich, MLC for South East Metro Region, and Ashton Ashgkkumar, director of Creston Real Estate. 10. John Bennie, City of Greater Dandenong CEO, and Peter McNabb at the new Dandneong municipal offices. 11. Lonely Planet co-founder Tony Wheeler, OAM, talked about his passion, travel, at the latest Frankston-Mornington Peninsula Business Breakfast at Frankston Arts Centre on 19 June. Pictured with Tony Wheeler are arts centre manager Robin Batt (left) and Nicola MacKinnon, of Black Tie Catering. 12. Tania Treasure (left) of Mornington Peninsula Shireâ&#x20AC;&#x2122;s economic development department, Channel 9 reporter Sebastian Costello, who was the MC, and Michelle Braggins, of eview Real Estate, Frankston. 13. Kelly and Chris Nimos, of Rapid Click. 14. Emma Smith, of Em J Communication, and Jonathan Reichwald, of Frankston City Council. 15. Your Time Matters held a business expo at Woodland s Golf Club, Keysborough, on 3 June. Pictured are Stephen Read, landscape designer, and Andy Fothergill, of Home to Garden Plumbing. 16. Frankston Business Chamber networked at the Manhattan Restaurant, Mornington, on Tuesday, 24 June. Pictured from left are Caitlan Swanton, of Promotional Product Advertising, Carol Campbell, of Nepean Industry Edge Training, and Prue Leggoe, of Dress for Success, Frankston. email marg@businesstimes.net.au if you have something to share.

Latest Networking Galleries

www.businesstimes.net.au

Listen online - rppfm.com.au, via the app or 98.7fm

Ideas

Thought Leadership

2607

Taking Care of BUSINESS Friday 11am to 12 noon 98.7 fm with Jacki Mitchell |

Expert Opinions

Success

Failures

Tips

July 2014 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 9

NETWORKING

The power of strong ties Max Steén, the co-author of this piece, conducted a study as part of his Masters thesis, entitled: The Strength of Strong Ties in Business Networks. Dr lvan Misner*

Networking specialist

coined from his research: “The strength of weak ties.” Since then, many people have focused on simply expanding the number of connections they have and not focusing on the quality of those connections. Based on this new research, however, it is clear that “weak ties” may be relevant to job searches but “strong ties” are critical for the generation of greater quality business referrals. Your strong ties are likely to be people that you discuss topics on a deeper and more focused level. Your strong ties, or connections, are also people with whom you have developed a deeper level of trust. Trust is absolutely key in the generation of business referrals. When it

GET YOUR BUSINESS ONLINE Full Day Workshop - Learn How Create a professional mobile optimised website

LOOKING F?OR G TRAININ ua lif ic at io ns in

og ni se d Q nology N at io na lly R ec • Information Tech es ic rv od Se ho ld lth hi ea C •H • Early e • Business Education & Car e kplace, ar or C w e ed • Ag ffered in th O online • Disability ssment in class, or 9781 3388 • Training & Asse E AC BR l Cal ‘This training is delivered with Victorian and Commonwealth Government Funding.’ ‘People with disabilities are encouraged to apply.’ | TOID: 3621

ONLY $299

LOOKING FOR STAFF? free, flexible & tailored

2623

The results of this study showed that those who focused on strong ties – rather than weak ties – were able to increase the number of referrals from networking by 21% – and with an increased value of those referrals of 63%. Nearly three quarters of the people surveyed did not take this approach. Rather, they focused on their weak ties. Why are so many people focusing on the wrong type of relationships to build their referral base? Here is what we see as the core of the problem: In 1973, influential researcher Mark Granovetter stated that when networking for employment, you should look through your weak ties or connections in order to more efficiently reach your goal. Granovetter argued that through your weak ties, you would find the most new information and new opportunities. Hence the phrase that was

comes to referrals, if you give a referral for business services, you give a little bit of your reputation away. When you give a good referral, it enhances your reputation. When you give a bad referral, it hurts your reputation. People who have strong ties with one another want to make sure that the trust level gets stronger and is not damaged by a bad referral. Conversely, job opportunities found through weak ties are by nature greater in number (you have more weak than strong ties) and these opportunities are most often consisting of new information. Thus, reaching through weak ties enables a greater number of new job opportunities to be found. Mark Granovetter’s major impact on networking research cannot be questioned. However, for decades, Granovetter’s conclusion has been misapplied in areas where it clearly has no bearing, such as business networking to build referrals. That being said, when people are networking for job opportunities, looking through weak ties is a very effective consideration. However, if you are networking for

ovides all sizes. SkillsPlus prse to employers of es ic rv t en 84 0400 recruitm Call SkillsPlus 97 SAVE THOUSANDS

Developers and graphic designers can cost you thousands & charge you every time you want to change something. Learn how easy it is to do it yourself for a fraction of the price.

LEARN STEP BY STEP

In this workshop you will be taken through the process of designing, creating, & launching your website by industry professionals.

RKING PRECIOUS WO DON’T WASTE AN TO FIX D HOURS TRYING SELF... UIPMENT YOUR SUPPORT I.T EQ

FREE I.T SUPPORT

Includes 1 hour of Phone & Remote Support for any computer or network problem for businesses located 80km Melbourne.

WORTH OF VALUE

NO EXPERIENCE NEEDED

Can you search on google? Use word? Then you have all the skills you need to create your own professional mobile optimised website.

SMALL WORKSHOP SIZE

OR FOR MORE INFOMATION VISIT

2617

10 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | July 2014

Does th is scene lo o familiar k ?

for your first FREE no obligation appointment. excelero.com.au john@excelero.com.au

2624

Call 1300 367 470

So we can give you individualised attention, we keep the workshops small. We like to keep a 1 to 5 teacher/student ratio.

referrals, looking through your weak ties to get referrals is a major disadvantage. In fact, applying the strategy of finding opportunities through weak ties is costing you tons of money in lost referrals. And here’s why: credibility substantially improves the quantity and quality of business referrals that are generated. When all the parties in the transaction, know and trust one another – the referral is much more likely to turn into business. For more watch episode #1 of the Global Networking Show www.GlobalNetworkingShow.com, where we debate this issue with other networking experts. *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 Max Steen is a Swedish networking researcher and entrepreneur and BNITimes member. He can be 12853 Business Pakenham 127x185 reached at max@maxadmarketing.com

You can WIN 48 Hours of online Business Mentoring and Training just for being a valued BusinessTimes reader Business owners traditionally suffer one or more of the following frustrations. Actually, some of us suffer all of them. • Working too many hours • Dwindling profits • Can’t recruit, train or retain staff • Stressed and burnt out • Don’t understand marketing • Low or slow growth • No exit strategy or succession plan The globally-awarded team at Whatever it Takes Global has created a world first online program to eliminate all of these frustrations.

Business and lifestyle coach Bruce Doyle, head of the Whatever It Takes Mastermind Program. See his column on Page 17.

Here’s how to win To be in the running simply go to www. whateverittakesglobal.com and click on the BusinessTimes competition to apply. DO IT NOW! YOU’VE NOTHING TO LOSE BUT SOME PROBLEMS ... AND A HEADACHE OR TWO. Good luck. regards, Marg and the team

And given that the team is still in pre-launch it have offered packages as FA.pdf 26/06/14 11:26 AM gifts to1 some BusinessTimes readers.

Creativity for business success with Clare Bowditch Join ARIA award winning songwriter, singer, actor – and successful small business owner – Clare Bowditch as she explains practical ways to bring your ideas to reality and transform the way you do business.

Learn about the benefits of right-brain thinking and how to implement it in your business.

When 13 August, 6pm-9pm Where Cardinia Cultural Centre, Lakeside Boulevard, Pakenham Cost Early Bird $30; Full Price $40 (includes two course dinner) Event ID 12577

PLACES ARE LIMITED, SO BOOK TODAY: VISIT BUSINESS.VIC.GOV.AU/FESTIVAL OR CALL 13 22 15 2626

Small Business Festival Victoria has 340 events across Victoria from 1-31 August 2014. July 2014 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 11

cover story

Ted Bainbridge WE KNOW LIFE’S A BEACH – OR COULD BE – BUT FEW OF US DO MUCH ABOUT IT. AND THEN THERE’S THE MYTH ABOUT LIVING ON THE GOLD COAST, SURFING ALL DAY WITH A FORWARDING ADDRESS FOR THE DOLE CHEQUE.

Paul Trigger

LONGTIME SURFER KEITH PLATT LOOKS AT WHAT IT TAKES TO REALLY LIVE THE DREAM. Perhaps the best examples on the Mornington Peninsula are five men who more than 40 years ago decided to make the surfing dream a reality. There would be no dole; just work that would keep them close to sand and surf. They weren’t the first to surf waves on the peninsula, and they weren’t necessarily the best surfers, but they were certainly surf industry pioneers. Others had tried, but no one before managed to make a living by creating an industry based on what they loved doing – surfing. While most attention focused on Victoria’s main surfing industry base, the west coast, and Torquay in particular, three independent companies began on the peninsula. Torquay had its now-international companies Rip Curl and Quiksilver but, like ripples in a pond, Peninsula Surf Centre, Trigger Bros and Balin have provided the backbone and inspiration for other surf-related industries that today employ hundreds throughout the peninsula: low volume boardmakers, surf schools, accommodation and food suppliers. And of course there is the building industry that provides the housing, and jobs, for the hundreds, if not thousands, of people who live on the peninsula purely because of its surf. It is hard to estimate the surf industry’s annual turnover on the peninsula, but somewhere between $20-$30 million would not be far off the mark. The five men crucial to the success of the three largest surf-based businesses, Ted Bainbridge (Peninsula Surf Centre), Paul and Phil Trigger (Trigger Bros) and Ian Brett and Jon Wilson (Balin), live on the peninsula and still enjoy the lifestyle its beaches and waves first offered. When they started their respective businesses it seemed a simpler world: you make a surfboard and sell it. Or, in the case of the Triggers, swap boards while in the water. Although they didn’t plan it, they have helped the surf industry grow from cottage to corporate. Ted Bainbridge flunked teachers college because he was too busy surfing, but went on to follow industry trends and fashions, peaking with a dozen or so Peninsula Surf Centre outlets. Jon Wilson, of Balin, started making surfboards while studying at university “because I could”. When it came to the crunch, “making surfboards or getting a job using my science degree, it was a no brainer really”. There seemed no other destiny for brothers Paul and Phil Trigger, who now manage a business providing employment for their children and many others. Balin began with three partners, Jon Wilson, Ian Brett and Peter

Peninsula Surf Centre Trigger Bros

Chairme

Catching surfing’s cor Smith. Brett bowed out last year and Wilson is the only one still involved with the company. Smith, who left Balin in 1971, said he would leave it to the others to tell the story. It was not always plain sailing and Brett tells a story of the partners feeling ripped off when other manufacturers pirated their use of a swivel on a leg rope. However, the cost of starting litigation in the United States was more than the price of house in Australia.

Jon Wilson

started making surfboards when I was at university. Not as a commercial thing so much as just having a go because you could. That was where I learned what an invoice was [and] probably should have been doing business studies rather than science. I do remember – and so does my wife – that in the early days we used to write ourselves wages cheques and pin them up on the wall “for later on”.

12 | BusinessTimes | Frankston / Mornington Peninsula / Dandenong | July 2014

Phil Trigger

Trigger Bros

Jon Wilson

Ian Brett

Balin

men of the boards

orporate wave ON THE MORNINGTON PENINSULA empty shop down the coast and would I want to share the rent and make boards for it. I became partners with a couple of uni mates that had started making leg ropes. They thought that because I was making plenty of boards I would have a nest egg to invest. Boards were less than $200 then. Just a cottage industry. I think we each put in $700 to start Flinders Surfing Company, which morphed into Balin a year or two later. Our business is independent of the peninsula, really. We make surfing accessories and sell to retailers around the country. Being a wholesaler we are not directly connected to the people buying our products on the peninsula. My business now is a remnant of what it was in the early part of the decade. At its height we employed 25 to 30 people in manufacturing and distributing surfing accessories and clothing. We were a small player in the industry, but with our own 14 unique and innovative products.

s s

I was never trained in economic speak and “emerging markets” are what today’s generation of marketing students talk about. We were just in the right place at the right time and caught up in a lifestyle where one thing led to another. Other options just didn’t seem too obvious at the time. Get a job using my science degree or keep making surfboards? No brainer really. We were all just experimenting with new board-making techniques, just like they are doing today: new shapes, new materials, new finishes - all just great inspiring fun – and people kept asking for the product and I couldn’t let them down. Making products for surfing means that you are already in a network. You’re already talking to the converted. Of course, nowadays we have to compete to keep our heads above water. Same pie divided up in more and different ways. I didn’t even know I had a business at first. I was just a surfboard maker. Some friends from uni rang one day and said there was an

July 2014 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 13

cover story

Paul Trigger

Phil Trigger

Jon Wilson

Ian Brett

LONGTIME SURFER KEITH PLATT LOOKS AT WHAT IT TAKES TO REALLY LIVE THE DREAM.

Peninsula Surf Centre Trigger Bros

Trigger Bros

Balin

Chairmen of the boards

CatChing surfing’s Corporate wave on the Mornington peninsuLa Smith. Brett bowed out last year and Wilson is the only one still involved with the company. Smith, who left Balin in 1971, said he would leave it to the others to tell the story. It was not always plain sailing and Brett tells the story of the partners feeling ripped off when other manufacturers pirated their use of a swivel on a leg rope. However, the cost of starting litigation in the United States was more than the price of house in Australia.

Jon Wilson

12 | BusinessTimes | Frankston / Mornington Peninsula / Dandenong | July 2014

I was never trained in economic speak and “emerging markets” are what today’s generation of marketing students talk about. We were just in the right place at the right time and caught up in a lifestyle where one thing led to another. Other options just didn’t seem too obvious at the time. Get a job using my science degree or keep making surfboards? No brainer really. We were all just experimenting with new board-making techniques just like they are doing today: new shapes, new materials, new finishes - all just great inspiring fun – and other people kept asking for the product and I couldn’t let them down. Making products for surfing means that you are already in a network. You’re already talking to the converted. Of course, nowadays we have to compete to keep our heads above water. Same pie divided up in (more and) different ways. I was living at home with understanding parents. This was the beginning of life. What does a science student know about finance?

I didn’t even know I had a business at first. I was just a surfboard maker. Some friends from uni rang one day and said there was an empty shop down the coast and would I want to share the rent and make boards for it. I became partners with a couple of uni mates that had started making leg ropes. They thought that because I was making plenty of boards I would have a nest egg to invest. Boards were less than $200 then. Just a cottage industry. I think we all put in $700 each to start Flinders Surfing Company, which morphed into Balin a year or two later. Our business is independent of the peninsula, really. We make surfing accessories and sell to retailers around the country. Being a wholesaler to the industry we are not directly connected to the people consuming our products on the peninsula. My business is a remnant of the business it was in the early part of the decade. At its height we employed 25 to 30 people in manufac14 turing and distributing surfing accessories and clothing.

s s

Perhaps the best examples on the Mornington Peninsula are five men who more than 40 years ago decided to make the dream a reality. There would be no dole; just work that would keep them close to sand and surf. They weren’t the first to surf waves on the peninsula, and they weren’t necessarily the best surfers, but they were certainly surf industry pioneers. Others had tried, but no one before managed to make a living by creating an industry based on what they loved doing – surfing. While most attention focused on Victoria’s main surfing industry base, the west coast, and Torquay in particular, three independent companies began on the peninsula. Torquay had its now-international companies Rip Curl and Quiksilver but, like ripples in a pond, Peninsula Surf Centre, Trigger Bros and Balin have provided the backbone and inspiration for other surf-related industries that today employ hundreds throughout the peninsula: low volume boardmakers, surf schools, accommodation and food suppliers. And of course there is the building industry that provides the housing, and jobs, for the hundreds, if not thousands, of people who live on the peninsula purely because of its surf. It is hard to estimate the surf industry’s annual turnover on the peninsula, but somewhere between $20-$30 million would not be far off the mark. The five men crucial to the success of the three largest surf-based businesses, Ted Bainbridge (Peninsula Surf Centre), Paul and Phil trigger (Trigger Bros) and Ian Brett and Jon Wilson (Balin), live on the peninsula and still enjoy the lifestyle its beaches and waves first offered. When they started their respective businesses it seemed a simpler world: you make a surfboard and sell it. Or, in the case of the Triggers, swap boards while in the water. Although they didn’t plan it, they have helped the surf industry grow from cottage to corporate. Ted Bainbridge flunked teachers college because he was too busy surfing but went on to follow industry trends and fashions, peaking with a dozen or so Peninsula Surf centre outlets. Jon Wilson, of Balin, started making surfboards while studying at university “because I could”. When it came to the crunch, “making surfboards or getting a job using my science degree, it was a no brainer, really”. There seemed no other destiny for brothers Paul and Phil Trigger, who now manage a business providing employment for their children and many others. Balin began with three partners, Jon Wilson, Ian Brett and Peter

July 2014 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 13

s s

By the mid 1980s we had sold the surfboard business [still operating under the Balin brand] and were focused on manufacturing our surfing accessories. Our leg ropes were evolving quickly and our designs were well ahead of any others. So much so that we were able to have a well-known Australian wetsuit company [Rip Curl] distribute them in the United States. Advertising in US media soon brought inquiries from around the world. We had a great product – and still do – and we had control of the manufacturing here in Australia. We were competing with other Australian companies in our own backyard. We even started making t-shirts with Australian cotton using Australian workers. T-shirts were so cheap to buy from America that if the government didn’t have tariffs and quotas on them we would never have started. At some stage back in the 1980s the tariffs came off gradually in the clothing and footwear industries and Australian manufacturing started to crumble. This is the mid-80s I’m talking about. It caught up with our hardware products a couple of decades later. It has taken longer for this to happen with products that have a lower percentage labour input but, inevitably, cheaper labour wins the day. We are now out of the clothing business for other reasons, but we chased sources in China and eventually found suppliers for our hardware in the late 1990s. We were able to transition from being a manufacturer to an importer fairly gradually. Our older staff gradually retired and we replaced their labour with finished product from Asia. The interesting issue here is that when we lost control of the manufacturing not only were jobs lost, but also we found we were no longer competing with Aussie manufacturers. The competition is in Asia between Asian factories that are fighting for our business

Demand for our hardware products is much the same as it was, albeit with more players in the market. Some kids follow the brandsponsored athletes and others just go surfing. (Jon Wilson) and competing among themselves. A factory in Asia does not have to protect its brand assets. Its only asset is cheap labour. Wages are rising [in Asia] and factories are starting to become uncompetitive. The same thing that happened here. Now, it is our brand power and intellectual property that has value. It just does not seem as solid as it used to. Maybe it’s that old symptom of a mature market, which sounds like I’ve done a marketing course. The surfing industry has one or two different faces. Surfing, the water activity, is alive and well. Demand for our hardware products is much the same as it was, albeit with more players in the market. Some kids follow the brand-sponsored athletes and others just go surfing. They still have the same stoke that we had in the early days. In between then and now surfing companies established themselves in mainstream markets and promoted the sport and the athletes to the benefit of all the players in the industry. Surf brands were flavour of the month and they had unique fashion products that the rest of the garment and fashion industry just didn’t understand. This opened the door for specialist surf retailers to grow and expand their retail floor space to cater for the surf boom. In the late 1980s and early 1990s the surf industry just sailed on past the recession because of the strength of demand. However, retail space became harder to find and eventually there was an over supply (of surf goods). The surf companies are now addicted to growth and have even sold themselves to the public who wanted the ride to continue. They have continued the search for growth by taking over those retail spaces and turned them into company-owned stores. When the GFC hit, the demand for surf was in decline and many retailers started to

14 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | July 2014

feel the pinch. It was time for Balin to leave the fashion industry to others and, with the retirement of [director] Ian Brett, it was seen as prudent to focus on our products that are used by people who still want to immerse themselves in the water.

Ian Brett

had no idea what I was going to do when I left school. I remember my dad telling me to keep my options open. I realised there was a living to be made in the surfing industry when Balin was employing a few people and we started paying ourselves a wage. We didn’t enter the surf industry – there was no such thing back then. We were just trying to make enough money so we could go surfing. It was definitely a lifestyle thing revolving around not being tied down by a real job so you didn’t miss the good days. We also wanted to live down the coast and back then there weren’t many other [job] opportunities – in Flinders at least – so we had to make our own. Networks just happen. With me, I was out selling leg ropes to surf shops so you had to go in and meet the owners. We all had common interests – surfing – and were probably in it for the same reasons, so it was easy. In Victoria, surf shop owners had the same ‘get down the coast get out of town’ ideals so we were all on the same wavelength. Sydney and Queensland owners were different, but we all had surfing in common and in many cases there was a crossover to boats and fishing, so that helped. Sales runs went from being a job to just driving around the country visiting and staying with friends. This happened at an international level, too, to a certain extent. Pete Smith and I went to Bali in 1972 or 1973 and I sailed home on a yacht. On the way home I had the idea to make an ankle strap that was quick release. They would be cheap and you could use them with Venetian blind cord. [The name Balin derives from Bali invention.] Leg ropes, or kook cords, had a bit of a bad rap back then and I remember saying to [Mordy Surf Shop owner] Lindsay Mudge “if people are going to use them at least they will be safe”. We called them safety straps, they cost 60 cents to make and we sold them for $1.20 and the shops

sold them for $2.50. Our first production run cost us $60. Pete’s mum sewed them up and his dad made some stands. Ted Bainbridge probably still has one. Pete and I were living in Melbourne and we moved to Shoreham to be near the beach. As we had put so little in we had nothing really to lose, so we just kept pouring profits back in making more and more to meet demand. They were called leg ropes by this time. We had developed a relationship with Jon [Wilson] by now and the three of us had opened a shop in Flinders. Jon made boards; we made leg ropes. We were three-way [partners] in the shop and we shared two jobs on the wharves at Hastings tying up ships. Pete left and for quite a while after that I think our wives basically, supported Jon and me until we made enough to pull a wage. The development of a urethane leg rope was a break and we invented the best way

I think it is bad and will bite us on the bum as a country. Nearly all Jon’s products are made offshore nowadays. I’m not sure what the future holds. I would hope the backyard boardmaker and small board manufacturers will survive. I think surf fashion has become too mainstream and this will affect the viability of surf retailers and that will flow on to the wholesalers. I would expect wholesalers to develop their online presence to maintain sales, making it harder for retailers and I think major wholesalers will continue to move vertically to maintain sales. I question this strategy after the Billabong episode. I think that in the past there was a natural evolution happening with everyone trying to increase sales by expanding their ranges. Retailers were being carried along by the growth of the major suppliers – the big three – and as they were all surfers and mates and making money things

Haircuts and board shapes have changed, but the lure of the surf remains. Harry Hodge, left, and Ted Bainbridge, in 1975 collecting boards in Torquay for sale at Peninsula Surf Centre, Frankston.

were good. Things began to change when retailers who were not surfers saw an opportunity and started opening shops. The retailing stakes suddenly got higher and the game changed. This indirectly affected the industry because then wholesalers started opening their own shops to combat the power of the growing non-surfing retailers. The industry changed for us when the Chinese got their act together. In the past, if you wanted leg ropes you contacted someone like Balin or Ocean & Earth. Their agent competed with our agent both here and overseas. Now, the guy who makes our leg ropes – and probably O&E’s – is in China and will do them for you with your name on it for the same price as us. This has basically stopped guys like us being international suppliers.

Ted Bainbridge

I was only 16 for most of my final school year (HSC) and lacked the maturity to stay focussed. I managed to pass physics and chemistry, which was enough to get me a scholarship into Frankston Teachers College. On $24 a fortnight, I saved enough to buy a used FC Holden by the end of the year. But the freedom to surf with fellow student teacher Paul Trigger and experiencing the 1970 world titles at Bells meant I failed the year. I left college and started a banking career with the Wales. Despite being sent to the Dandenong branch, I stayed focused on my surfing. Going into the surf industry was definitely a lifestyle choice. By 1974 I realised it could provide a living. I had turned 21, had a small income from doing 20 radio 3XY surf reports.

s s

of attaching the swivel and strap, which was a world first. That put us up there with the best on the world surf stage for a long time. The surf industry [on the peninsula] now is not what it was a few years ago. At its peak it was maybe $50million to $60million. That would include Wavelength, which was a big player. We started out selling hardware for surfers – things that attach to a board. Over the years we added clothing, clothing accessories and several retail stores. We have since downsized, closed all the retail stores and I have left the business. Jon again runs a business concentrating on hardware. The transition to getting product made offshore was a gradual change and it sort of crept up on us over a decade. Personally,

Big retailers, both the traditional companies and non-surfing retailers, know this; this is a big change. There has been a bit of opportunistic buying from China by businessmen seeing an opportunity and bringing back a container load of product. Boards are a common example and when they don’t sell they get dumped on the internet. The internet has been another game changer, removing and allowing new players access. It has also diluted the power of the retailers. I remember when a manufacturer made something and sold it to a wholesaler who then sold it to a retailer who sold it to the public. The chain doesn’t work like that any more and players are blurring the lines to survive. I started surfing when I got a car at 18. Surfing back then was a rebellious counter culture thing. To reject the city and move to the coast was pretty cool. I can’t remember how many times I saw [the movie] Morning of the Earth. I can’t say I surf regularly any more, but the love affair with the ocean is still there and I get out on it probably more than most. I don’t go chasing it [the surf] but I can’t drive past it. My favourite spot was always Cyrils [near Flinders]. There are too many memories to nail down, but among them I remember one wave at Jefferies Bay [South Africa], one day at Snatches [near Rye], a wave at Lennox Head and a white pointer at 13th Beach [near Torquay].

July 2014 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 15

HOW TO CREATE AN ENGAGING SOCIAL PRESENCE While most businesses focus on how Jessica Humphreys* many ‘likes’ they receive on social Social media consultant media, the focus should really be on how many people are engaging with you. What is the point of having 1000 likes if you only ever have online contact with 30 of them? Now the tricky part is how can you create an engaging presence? Take a look at these quick tips below: • Provide your followers with something of value. Constantly selling doesn’t build engagement. Write a blog with helpful tips (like this one), or share an article, recommend other products and such things as services of value. • Share a little humour. While you may want to maintain a professional presence most of the time it is okay to get people laughing and smiling every now and again. • Ask questions. It’s so simple. One of my clients recently shared a photo of their home made dinner and simply asked “what’s on your dinner plate?” six people proceeded to comment and share their own photos. It eventually turned into two fellow ‘likers’ sharing recipes. • Have good quality images accompany your posts. Images generally receive a higher engagement. • Humanise your business. Photos and stories about people

nearly always get more engagement, as social is about people. Share ‘behind the scenes’ content and make your community feel as if they are a part of something. For more tips and tricks like this follow us on Facebook: www.facebook.com/socialconceptsconsulting *Jessica Humphreys operates Social Concepts, a social media consulting business. Send questions to Jessica@socialconceptsconsulting.com

power pivot Microsoft sees Excel as its main Neale Blackwood* business intelligence (BI) interface Business software specialist for most users. BI is basically the process of extracting data and combining it to produce useful reports and dashboards. These days BI includes a self-service aspect where the users can extract and work with the data without involving the IT section. As part of the push to improve Excel so it can handle larger data sets, a new feature called PowerPivot was created as a free add-in for Excel 2010. The feature was fully incorporated into Excel 2013. PowerPivot is a pivot table on steroids. A pivot table is an easy and quick way to summarise a large data table with no need for formulas. But pivot tables are limited to only working with one table at a time. PowerPivot allows you bring

Do you own a franchise? Thinking of buying a franchise? We understand you have special business needs BNR Partners are part of the Franchise Accountants Network; a national group dedicated to helping both Franchisors and Franchisees. Talk to us about how we can help you: • Assess a franchise opportunity • Set up your business wisely • Improve your financial position Jason Bertalli, Director of BNR Partners and leads the firms’ Business Service and Franchise divisions. 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.

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.

16 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | July 2014

2609

PHONE (03) 9781 6800 I EMAIL info@bnrpartners.com.au Level 1, 327-333 Police Road, Mulgrave Vic 3170

CONTRIBUTOrs

multiple data tables together and create pivot table reports based on multiple tables. You need to create relationships between the tables to get the most out of combining them. Used in its basic form PowerPivot is reasonably easy to learn providing you have a basic knowledge of data bases. It does have a steep learning curve for its more advanced features. If you are dealing with large volumes of data then learning PowerPivot could be worthwhile.

We’re here ... to help you achieve your business goals.

*Neale Blackwood owns and operates A4 Accounting. He does Excel consulting, webinars, training and coaching. Mobile: 0402 882122

top traiT of a successful marketer is patience My first lesson from global Bruce Doyle* marketing legend Jay Conrad Business mentor/trainer Levinson, grandfather of guerrilla marketing, hit me hard. This mentor to the likes of Bill Gates, Steve Jobs and Michael Dell said to me that successful marketers have patience, unsuccessful marketers expect instant results. Let me introduce you to his rule of nine. Imagine someone being exposed to your marketing message for the first time. Some people expect the prospect to jump up and buy immediately, but here is the reality. For a prospect to move from apathy to ready-to-buy, the message must penetrate nine times. That’s the good news. The bad news is for every three times you put your message out there, they are only paying attention one time. Your prospects are getting more than 3000 messages a day. Put a message out three times, you penetrate once, what happens … nothing. After six times they faintly realise they’ve heard your name. Nine times later they realise they have seen or heard your marketing before and they know unsuccessful companies don’t market. Momentum has started but they are not even close to buying yet. Twelve times … not much. They look for other signs of your existence, perhaps ask a friend. Fifteen times, something wonderful happens they read all your copy. Pay close attention to your commercial or marketing message. If you’ve listed your website, they will click through. They may request a brochure. Now you’re beginning to get frustrated. This is where most businesses bail out. They figure they need a new message, new website. Truth is they are doing everything right. Marketing does some great things but rarely does them in a hurry. Eighteen times they begin to think about when they are going to make a purchase, where they’ll get the money, but they aren’t ready to buy. After 21 times you have penetrated seven times, they are telling others they are planning to buy from you. They may even add it to their diary. 24 times: this is when they check with whomever they normally check with before buying big ticket items. They plan the day and time of the purchase. You still see nothing, though. After 27 times they come in and buy from you They treat you like an old friend but you don’t know them from Adam … or Eve. How did this come about ? You did it with patience. Patience makes it happen. That was my hard lesson from Jay Conrad Levinson.

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

2610

*Bruce Doyle is a globally-awarded business mentor and trainer www.whateverittakesglobal.com

Some of our experts

July 2014 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 17

budget BUSINESS STAYS

IBIS: BUDGET WITHOUT COMPROMISE

In keeping with the theme of this issue, Michael Ellis, our writer on health (and other stuff) has opted out and gone surfing. He promises to return in time for the August issue deadline. In the meantime you can try to catch him on www.mtelizaherbal.com

2611

2627

Ibis budget hotels in Australian and suburban locations suit business and leisure travellers who believe in economy but don’t accept compromise in quality accommodation. Offering essential and pay-per-use services, stylish design and convenience, ibis budget hotels provide essential comfort at the right price. Ibis is a leading brand in the budget segment in Europe with more than 500 hotels worldwide. Twenty hotels in Australia include five close to city airports – ibis budget Sydney Airport, Melbourne Airport, Perth Airport, Brisbane Airport and Windsor (close to Brisbane airport). There is a ‘best price guarantee’ for all ibis budget hotels bookings – if after booking on ibis.com, a lower rate is found for the same hotel on another website, this rate will be honoured in addition to a 10% discount. The ibis hotels feature the new ‘Avanzi’ look by Parisbased designer Philippe Avazielicit. The first to complete this refurbishment and feature this look in Australia is ibis budget Brisbane Airport. This has been followed by ibis budget Melbourne Airport, Dandenong (Victoria) and Windsor (Queensland).

18 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | July 2014

MARKETS

Indefatigable Oil Search The first LNG export shipment from Papua New Guinea went by almost unnoticed in Australia, but it was a big event for Papua New Guinea. Oil Search, its largest taxpayer and most dedicated investor had, with its LNG development partner Exxon, reached another milestone following a remarkable 85 years of oil and gas exploration in the country. This first shipment was on time after a $19 billion construction phase that came in on time and on budget. Australia might be congratulated too as it helped prepare the conditions that allowed Oil Search (OSH) to work relatively smoothly for all those years in the country. There were many trying moments but, with a softly spoken and shrewd approach, OSH mostly avoided serious conflict with villagers and often volatile highland politicians. The oil leaks, strikes and murders of Nigerian oil production stand out in marked contrast. This is all good, but for investors the question is whether this success is already “in the price” at almost $15 billion or whether the market valuation doesn’t include the potential for LNG production to double over the next 5-7 years, as the company speculates. There is also the possibility that OSH’s recent discovery in North West Iraq in the Kurdistan autonomous region will be a major field and add further value in outer years beyond the doubling of earnings per share expected by next year. The answer to the first question depends on whether the LNG price stays at the current Asian price or is depressed by new supply arrangements like Russia’s 70 billion cubic metres contract with China, which is estimated at around $2000 a ton, almost

Richard Campbell* Stock Analyst

50% cheaper than Australian contract prices and about 20% less than the price Japan paid for Papua New Guinea LNG. Then there are US shale gas exports coming to market post 2020 with possibly 80bcm, 8% more than the Russian supply deal while Canada, now exporting less of its gas to the US, is also keen to build LNG plants on its Pacific coast, but without the cost blow-outs of our own WA gas projects. Overriding this is the changing attitudes to emissions. While many are treating gas as cleaner than coal, there is mounting evidence that gas is worse when fugitive emissions are counted. A further layer is the rapid growth of solar and wind which is still insignificant in most countries relative to coal and gas but by the time US and Canadian gas hits the world markets may not be. Solar is growing rapidly in the US now that costs have fallen dramatically while wind power is almost twice as efficient as it was a decade ago. At the same time as renewables grow rapidly, China is rushing to reduce the often pollution that hangs over not only the industrial cities but much of the eastern provinces generally. This may require massive amounts of gas to reduce coal while also lifting wind and renewables and solar in the provinces where the sun can be seen. The second question is even more prob-

lematic. The Taza field is large and the quality high, but at this stage drilling hasn’t confirmed whether it is in several hundred million barrels or closer to a billion, but at the moment its sovereign risk is flashing red as the ISIS faction of Al Qaeda commits atrocities across northern Iraq. Oil Search is in the company of some of the world’s largest oil companies like LNG partner Exxon, but all are at the mercy of the chances of suicide bombers and sectarian revenge. It is also not clear where Kurdistan ends and neighbouring Syria and Iraq begin. The Iraq government still claims Kurdistan oil as its own while ISIS aims to establish a puritanical caliphate in the region. Oil income would consolidate its power. The very fact that Oil Search joined Exxon, Chevron and others in Kurdistan also sends a significant message about the future of oil. While the US has reduced its crude imports to 34%, half the rate of just four years ago, this new source of oil comes from depths of 2-3kms in shale beds about as hard as concrete. This makes it expensive and so helps keep gas prices high. So this is good and bad news for Oil Search. It is about to see profits surge, but these are partly anticipated. Further out there - or perhaps right now - there is the mounting threat of climate change. New York is spending almost $4 billion on sea walls to protect the city from future storms like Sandy. When hurricanes cost $50 billion in losses and come in packages 1000 kilometres across some kind of rethink is necessary.

* Richard Campbell is Executive Director of Peninsula Capital Management, Tel. 9642 0545. rcampbell@peninsulacapitalmanagement.com.au

FREE conversion from MYOB to XERO!* 2612

(Normally valued $1000)

• SMART Business Solutions Accounting and Taxation Advisors is the FIRST Accounting firm in Mornington to achieve Silver Partner status

• Thinking of changing to Xero but want to learn more? Join us for our free information session

• Are you concerned about changing accounting software? Don't worry, SMART Business Solutions provides group training sessions for business owners to ensure you get the most out of your Xero software * Conditions apply, Call Hayden today to book your complimentary 60 minute tax business consultation for all appointments booked before 30th June.

To find out more about our upcoming sessions, please contact Hayden at xero@smartbusinesssolutions.com.au or phone 03 5911 7000

328 Main Street Mornington www.smartbusinesssolutions.com.au

July 2014| Frankston / Mornington Peninsula / Dandenong BusinessTimes | 19

cover story

Paul Trigger

Phil Trigger

Jon Wilson

Ian Brett

LONGTIME SURFER KEITH PLATT LOOKS AT WHAT IT TAKES TO REALLY LIVE THE DREAM.

Peninsula Surf Centre Trigger Bros

Balin

Chairmen of the boards

Jon Wilson

12 | BusinessTimes | Frankston / Mornington Peninsula / Dandenong | July 2014

Trigger Bros

I was never trained in economic speak and “emerging markets” are what today’s generation of marketing students talk about. We were just in the right place at the right time and caught up in a lifestyle where one thing led to another. Other options just didn’t seem too obvious at the time. Get a job using my science degree or keep making surfboards? No brainer really. We were all just experimenting with new board-making techniques just like they are doing today: new shapes, new materials, new finishes - all just great inspiring fun – and other people kept asking for the product and I couldn’t let them down. Making products for surfing means that you are already in a network. You’re already talking to the converted. Of course, nowadays we have to compete to keep our heads above water. Same pie divided up in (more and) different ways. I was living at home with understanding parents. This was the beginning of life. What does a science student know about finance?

s s

July 2014 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 13

s s

I could see the potential for our Breakway surf magazine along with good prospects for a shop in Frankston, the closest major town to the peninsula’s surf spots. I saw the popularity of Rip Curl’s wetsuits, UG manufacturing’s sheepskin products and Quiksilver boardshorts, along with the potential to sell interstate surfboard labels. Networks within the industry originally came from my involvement with the Australian Surfriders Association Victoria – now Surfing Victoria – and meeting interstate surfers like Colin Smith, Terry Fitzgerald, Keith Paull and Paul Nielsen when I was part of the Victorian team and, later, guys like Gordon Merchant and Midget Farrelly during road trips up the coast. Now, after 40 years, the emerging labels tend to find us. Peninsula Surf Centre evolved from a handshake between Harry Hodge, Phil Trigger and myself. We each put in $1500. An early break was finding former Frankston mayor Noel Oates, who was a very fair landlord. I kept doing the 3XY surf report, later the Channel 10 surf report along with being involved in some other entrepreneurial gigs like Breakway, Liquid Gold the movie, Surfworld ‘75 exhibition and later the Sailboard & Surf show. Not all of them provided extra income, though. Cartoonist Paul Harris brushed a mural of his Hot Curl character on the shop window. We painted the outside green, stocked it with surfboards, wax, a few Quiksilver boardies and a dozen Rip Curl wetsuits. Surfboard brands included Farrelly, G&S, Morning Star, Trigger, Hot Roc, Shane, Brothers Neilsen, Cooper, Crozier and Klemm Bell.  We used the backroom to co-ordinate Breakway - Victoria’s first surf magazine with Keith Platt and Tony Murrell. Harry Hodge, who became a Quiksilver

executive, produced the Peninsula Surf Centre film Liquid Gold.  It was not on the radar to open more stores back then, but it’s been incredible to see the growth of the sport and, of course the industry. In those early days Rip Curl made wetsuits, with Quiksilver making Ugg boots in winter and board shorts in summer.  Apart from the resin and fiberglass we sold along with Honey surf wax and the Balin safety strap, that was it for brands and labels. I met [Billabong’s] Gordon and Rena Merchant on a Queensland trip with Mick Pierce and Ian Portingale. They were making clothes under Ken Brown’s place in Burleigh. They came down here selling their shorts in about 1976, and we had to tell them we were covered – we had Quiksilver and didn’t think we needed a second brand. I’m now retired, but remain active in directorial role at Peninsula Surf Centre. We had a small quantity of clothing made in China in the early 2000s but rely on products from our major suppliers. Oversupply has been one of the most significant issues facing retailing in the surf industry. I started surfing 50 years ago after seeing the fun and excitement being had by surfers on early TV. My favourite spot is Bells, but I don’t get out there often now. The worst experience I had was at Spooks [near Portsea] in 2002 and I was pushing through a double overhead lefthander and went over the falls backwards, put my knee through my board and was eventually washed over the reef hanging onto the back half of my board. The most memorable experience was catching a solid overhead wave at Centreside during Easter Bells in the late 1970s. It tapered through to Rincon and I went full speed to the sand at the bottom of the stairs. Rabbit Bartholomew complimented me on the ride.

Paul Trigger

n 1968 Phil and I kicked off a hobby of making surfboards to avoid being left behind the pack as radical changes in length and design saw the sport rocketing towards the 1970s. Our first boards were primitive, but by 1971 Phil had the confidence to leave his job at Telecom and go full time. I joined

20 | BusinessTimes Frankston / Mornington Peninsula / Dandenong |July 2014

him six months later. Such was our love of surfing that we were prepared to risk a solid 9 to 5 job. We had set up a regular customer base by 1972 with our first shop in Nepean Highway, Chelsea. There was never any master plan, just a day-to-day love of making the boards, constantly experimenting with shapes designs and glassing techniques. We expanded the range to include a few t-shirts some wetsuits and our Grip surf wax. As the years slipped by Quiksilver, Rip Curl and Billabong demanded some rack space and so began a business that expanded to five stores. It’s much more difficult in today’s retail world, but we both have the same love of the ocean and we are still very proud to produce a Trigger surfboard that can give so much pleasure. Our parents gave us some financial support and for many years offered to find us other jobs. Mum once asked if we were selling drugs. It seemed questionable to her that we could make a living from manufacturing surfboards. The bros, by the way, never got anywhere near drugs. Any spare time was devoted to surfing and our purist approach was the reason we were able to dominate the Victorian state surf rounds for so long. We were never intimidated or nervous and our go-for-it attitude paid off. Phil’s fifth at the 1974 Easter Bells contest is testimony to where we were at, but the ever-increasing demands of our growing business stifled any further inroads to professional surfing. Single fins, twinnies, tri fins, thrusters, quads, and sailboards with Ted Bainbridge and Arthur Brett, a few kite boards and now stand-up paddle boards. Its been an evolution of surf craft that sees us now having the SUPs made offshore because of the epoxy vacuum bag construction, but hey, Trigger trackies and our surfboards are still made here in good old Australia. Along the journey we have had many champions represent us: Ian Portingale, Ian Cochrane, Phil Coates, Kenny Reimers, Garry Taylor, Simon Forward, Luke Fitcher, Andrew Everest and Mark Harrison. Our present young guns cutting their teeth on the peninsula and overseas. We have been assisted by long time employees in John Jolly, Peter Wilkinson and Alan Francis. We have customers who

ordered a surfboard from us in the late 1960s and also in 2014. Loyalty is very special to Phil and I, now in our 60s. Not wishing to offend others, friends that have been there forever and a day include Skip Easton, Prue Latchford [East Coast Surf School], Melissa Harrison and Phil Newman. In 1997 we launched our website www. triggerbros.com.au, with surf skate and snow news and has 19 live surf cams. Our online store opened in 2007. This is driven by long time employees Stuart Matthews and Matt Trigger. This year we are celebrating 50 years of surfing, from when we were hard nut footballers swept away by a relatively new sport of boardriding. We have both sustained injuries along the journey. Broken ribs and coccyx bones plus lacerations and ligament tears. The worst for me is the terrifying feeling of drowning that I experienced at Gnaraloo Station on Ningaloo reef in Western Australia. Tombstones has earned its name many times over. It can hold you down for what seems like an eternity and when one starts to breath in salt water it is mentally destroying. That was my third wave on my first trip. I had already wiped out on waves one and two. I have returned twice and sampled some of Australia’s very best waves – treating them with respect and buzzing from the fear I experience on those tombstone-like drops. We average four to five surfs a week. The take-offs are a little bit slower – Phil and I have both had right hip replacements – but the passion is still as strong as ever.

Phil Trigger

Within a month just about everybody on the peninsula was using hankies, panty hose and, the deluxe, a dog collar. The next contest was at Bells and when [Rip Curl partner] Doug ‘Claw’ Warbrick saw them he started jumping up and down calling out kooks, kook connectors. Jon joined Ian Brett and Pete Smith in Balin, which must have been one of the first surf hardware companies in Australia. In 1974 Paul and I, Ted Bainbridge and Harry Hodge put up money (we contributed $1500 between us) to start the Peninsula Surf Centre, with Ted as manager and front man. Later that year we started the Peninsula Surfriders Club. The following year Harry came up with the idea of quick movies, so we did Liquid Gold and Band on the Run. We didn’t make any money but surfed a lot. In 1976 Paul had moved to Balnarring and we built the shop and factory next door to the general store. We moved to Point Leo as well, it was sea change 20 years before it became trendy. Jon Jolly was at Leo from the start, three years later Al Francis joined us and both are still there now. In 1989 we took over the Wavelength shop in Sorrento. Pete Wilkinson, who had been at Chelsea for almost 10 years, moved down as manager. Two year later we decided to give Frankston a go, with Arthur Brett as manager. He was the leader of our very successful sailboard team. We had made the first fibreglass sailboard in Victoria for Ted and were making up to eight sailboards a week. Our snowboard team was at its peak, with most of the best snowboarders in Victoria on our team, [Paul’s daughter] Hannah Trigger at 15 was showing a lot of potential [culminating with her competing at the 2014 Sochi Winter Olympics]. Wanting to make our own wetsuits we approached Pete Schuster who had set up the Wavelength factory in Thailand. So, in 1998 we moved into Mornington with Pete, Paul and I – one third each. Pete got into importing wetsuits and clothes. Guy Collins from Beach Crew made our Aussie made trackies, hoods and t-shirts. We did 10,000 trackies on the first run, 20,000 on the second and in 2008, 30,000 when we did the fluoros. We were doing 1000 a week and had to stop taking orders. Every surf shop in Victoria was being asked for them but you could only get them from us. 23

s s

aul and I started getting white water rides in car tyre inner tubes at Queenscliff in the late 1950s. We then progressed to the centre leaves of Queen Anne tables. After a failed move to the Gold Coast in 1962 we settled in Bonbeach. In 1964 Peter, our eldest brother, went into the RAAF where he bought a Young surfboard. Luckily for us he stored it at home, so Paul and I used to take it down to the bay [Port Phillip] every time there was even a ripple, we used to call ourselves the Bonbeach ripple riders. We wore our Chelsea footy jumpers to keep warm. Within a year we both had part time jobs and had our own boards and spring suits.

We relied on rare family trips to Point Leo to ride real waves. A return trip to the Gold Coast enabled Peter and I to buy the latest 9ft Queensland shapes from Graeme Merrin. In 1967 I bought an FJ Holden so Paul could drive us to the surf as soon as he turned 18. Peter Evans, a schoolmate who dabbled a bit in fibreglass, suggested we make our own boards and Marine Fiberglass supplies in the city had blanks and everything, but no advice and no internet. We had no idea and no equipment other than a hand plane, sand paper and paint brush to glass it with. To clean up we used boiling water and mum’s washing powder – no gloves. We had to hand sand the filler coats, a massive task, but somehow we got it finished. The launching took place at the Hump and the difference was amazing, so easy to turn. Paul’s was next, a round tail with a massive V, he wanted a sky blue tint which even today is a difficult request so, using a brush, it turned out with clouds in it – very patchy. I got a traineeship with the PMG and Paul became a trainee teacher, where he teamed up with Ted Bainbridge. They surfed one end of Victoria to the other. After two years in a secure job l was feeling left out so in 1970 took a year off. We just wanted to surf. We were selling boards and O’Neill wetsuits to mates or people we would swap boards with in the water. We moved into the Chelsea shop in October 1972 with boards at $69. Ted and Paul moved into the back rooms. Lorne locals Alan Atkins, Gail Cooper, Greg Brown and Warren Powell joined our local team of hardcore surfers. Peter Daniels arrived from New South Wales, giving us the opportunity to surf with someone who would lift our surfing to new heights. Another one of Paul’s school buddies, Peter Hill, had come home from a trip to New Zealand and told us we should make wetsuits. He had done all the research, but Rip Curl was just starting and we were already selling O’Neill so we said no. The other thing he had seen was surfers attaching their boards to themselves with a piece of cord. We talked about it for a week or two, it seemed very risky, but one day in two-foot Portsea waves we decided to give it a go. Jon Wilson and I got the nylon cords off the roof rack on Paul’s Kombi, poked a hole in the fin with a can opener and just knotted the other end to our ankles.

July 2014 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 21

MANAGING

Cost cutting campaigns It is quite common to read headlines about another company embarking on a campaign to cut costs to achieve some specific target savings. Even countries like Australia, set out to improve their budget position by forcing everyone to share the pain of cost cutting. Leadership teams often choose to cut costs because their balance sheet looks poor and a simple analysis shows that reduction in costs could potentially improve the situation. There are a range of terms commonly used to justify this approach like trimming the fat, downsizing, belt tightening, outsourcing, focusing on core strengths, removing non-core activities, etc. No matter what the label, cost cutting campaigns are always difficult. A basic concept of cost cutting is “the law of equality of suffering”. Leaders who initiate cost cutting usually believe that it will be more acceptable to their people if they can show that everyone suffers to a similar extent. They will usually set a high level saving target and allocate it equally across the entire organisation, irrespective of any other factors. “Every department has to cut costs by 10%” is a common cry from managers and it is probably the very worst method of improving business performance. This approach ignores business strategy, where some activities should be grown, and it discourages department leaders to reduce costs during times of normal business, as it just makes it harder for them during these cost reduction campaigns. Organisations that are in trouble often stay there for some years, and hence, they are subjected to a series of cost cutting campaigns to the extent that the people become de-sensitised to the whole cost management process. This can become embedded to the extent that it trains people to not understand the basics of sound activity and cost management. Irrespective of the size of a business, the need to reduce costs may be brought about by circumstances beyond their control. A big contract may be lost, resources may run out, or competition may become too fierce. Whatever the reason, there are many circumstances where the emergency cutting of costs becomes the only way out. So, cost cutting is usually a sign of failure, even if there are mitigating circumstances. Something or someone blew it! It could be up front in the tendering or marketing stage,

Hamish Petrie*

Business Consultant

where we didn’t see changes or competitors coming. It could be that we got too greedy and killed the market. It could be in the quality or cost of our products. It could just be simply that we let our competitors do a better job of connecting with customers. There are a lot of things that can be said about cost cutting. Cost cutting relies heavily on the positional power of the business leader to force the organisation to stop doing things that have previously been justified. It rarely has a positive impact on the people in the business. If there are any doubts about the power of the leader to drive a cost cutting campaign, then it is doomed to fail. Just watch this space in terms of the current federal government cost cutting budget. It is usually broad in nature and targets everyone equally. Businesses, like people, need both muscle and fat to survive and great care needs to be taken to ensure that cost cutting campaigns don’t cut the muscle and leave the fat. It often focuses on people costs as the main opportunity and hence head count reductions become the main focus. This can really stress the performance management system when supervisors are forced to make decisions on whom to let go, often without any supporting history of performance discussions. It can make a bad manager look like a hero. They then hope to be promoted quickly out of the area before “the chickens come home to roost”. A major consequence of cost cutting is that it leaves the survivor population demoralised and disconnected from the business’s strategy and key success factors. The immediate consequence is that they tend to put in minimum effort with the long-term consequence that the best and most talented people often leave the organisation to pursue better, more positive

22 | BusinessTimes Frankston / Mornington Peninsula / Dandenong | July 2014

opportunities. Despite all of these concerns, there are some clear benefits of cost cutting campaigns. They can be implemented quickly and they can produce quick results. When lack of proactive management has resulted in a dire need to reduce costs, then forcing a cost cutting campaign is one of the only tools available to try to turn around the situation quickly. Having sound data that supports the presence of the dire situation can help with management credibility in forcing this sort of process on the organisation. The most likely time that this will happen is just after a leadership change when the dire situation can be blamed on the prior leader. History shows that this will occur within 3 to 6 months of a leadership change before the new leader has to accept accountability for helping the create the dire situation. New leaders are always motivated to blame their predecessors for all of the negatives that they inherit without recognition of any positives. The key message about cost cutting campaigns is that the best way to avoid them is to embed a cost focus within an efficient organisation that every day uses good risk assessment, focuses on costs of activities, maintains controls and eliminates waste. It isn’t going to prevent every need to episodically focus on costs, as the world can be harsh and create unexpected scenarios, but it will reduce severity and frequency of campaigns. An efficient organisation that is pro-active in cost management will be on top of things early. Action Planning Questions: 1. Do you feel that your costs are too high and are thinking about a cost cutting campaign? 2. Do you have the positional power and organisation to drive a campaign all the way to success? 3. Are you sure that you can clearly differentiate organisation muscle from fat in targeting your cost cutting campaign? 4. Have you considered building a broad cost optimisation capability based on empowering your people to seek out problems that drive costs? *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

cover story

Ted Bainbridge

Paul Trigger

WE KNOW LIFE’S A BEACH – OR COULD BE – BUT FEW OF US DO MUCH ABOUT IT. AND THEN THERE’S THE MYTH ABOUT LIVING ON THE GOLD COAST, SURFING ALL DAY WITH A FORWARDING ADDRESS FOR THE DOLE CHEQUE.

Phil Trigger

Jon Wilson

Ian Brett

LONGTIME SURFER KEITH PLATT LOOKS AT WHAT IT TAKES TO REALLY LIVE THE DREAM.

Peninsula Surf Centre Trigger Bros

Balin

Chairmen of the boards

Jon Wilson

12 | BusinessTimes | Frankston / Mornington Peninsula / Dandenong | July 2014

I was never trained in economic speak and “emerging markets” are what today’s generation of marketing students talk about. We were just in the right place at the right time and caught up in a lifestyle where one thing led to another. Other options just didn’t seem too obvious at the time. Get a job using my science degree or keep making surfboards? No brainer really. We were all just experimenting with new board-making techniques just like they are doing today: new shapes, new materials, new finishes - all just great inspiring fun – and other people kept asking for the product and I couldn’t let them down. Making products for surfing means that you are already in a network. You’re already talking to the converted. Of course, nowadays we have to compete to keep our heads above water. Same pie divided up in (more and) different ways. I was living at home with understanding parents. This was the beginning of life. What does a science student know about finance?

July 2014 | Frankston / Mornington Peninsula / Dandenong BusinessTimes | 13

s s

The major surf companies copied our fluoro colours and cheap counterfeit copies were being sold in markets across Victoria and South Australia. We took over the milk bar in the main street of Sorrento in 1999, and for the first year or so we ran it half surf and half milk bar. In 2001 we opened St Kilda and stayed until 2013 when we moved to Chapel St, Prahran. We have been importing surfboards, long boards and stand-up paddleboards since 2006. Since 1968 we have made 30,000 surfboards, mostly at the Point Leo factory, where we are still making up to 400 boards a year.

businesstimes

Ian Cochrane, centre, with Paul and Phil Trigger at the brothers’ first shop at Chelsea.

directory BOOKKEEPING

ACCOUNTING

Services include:

Livingstone, Beckett & Associates Pty Ltd Certified Practising Accountants ABN 61 089 712 416 www.livingstonebeckett.com Shop 3/4 Eramosa Rd, Somerville, 3912

2619

SECURITY|

2620

Phone Luke Wade 03 5977 6210

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 2618 W: www.radbookkeeping.com.au Myob Training

Rad Bookkeeping

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.

2622

Trigger Bros

s s

My worst surf experience was in the 1976 Victorian titles. Twelve minutes into the 20-minute semis I got carried away with my ability and tried to land a re-entry on the sand. I got 12 stitches above my eye. Pat Morgan, 35 years later, told me that he helped me up the beach that day and was nearly sick when he saw how bad it was. I won the semi but, unable to surf, came sixth in the final. My two most memorable surfing experiences were placing fifth in the 1974 Easter Bells. The second was 39 years later in the 2013 national SUP titles on the Gold Coast. I was competing in the over-40s in shoulder high surf when I was able to pull off one of my lip-launches. Nobody had ever seen anyone else even try anything like it. At the end of the comp I was given the best manoeuvre for the contest. I finished seventh, not a bad result for a 62-year-old My favourite surf breaks are the Gold Coast’s Superbank – I have had 6ft waves from Snapper Rocks to the Kirra groin, which is 1.2kilometres – Bells and the beach breaks between Gunnamatta and Portsea.

Get a free Quote Call 1300 66 11 99 www.eclipsesecurity.com.au

July 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

2613

To the Business Owner

+ + +

POSTAGE

PAID

14/05/14 2:57 PM

TLS-BL006_TBC Q4 GWP Campign_A5.indd 2

14/05/14 2:57 PM

TLS-BL006_TBC Q4 GWP Campign_A5.indd 2

14/05/14 2:57 PM

AUSTRALIA

TLS-BL006_TBC Q4 GWP Campign_A5.indd 2