Let’s Talk Business
Let’s Talk Business Back To Basics Business Solutions - Support for Small Business
Volume 3 Issue 27 - February 2015
Biggest Issues Facing Australia Today Inside this issue
Biggest Issues Facing Australia Today
Biggest Issues Facing Australia Today ……….......2
Do You Like to Push or Pull? Dr Tim Baker …..….............3
Biz Snippets …………….......4
How To Achieve Direct Mail Success Dennis Chiron………...........5
Does Facebook Increase Productivity? Angie “Speedy” Spiterie ….6
Why Do Businesses Fail? Geoff Butler ………………..7
If You’re Serious About Getting Rich, You’re Going To Have To Learn To Be Lazy Dan Buzer ……..…………..8
Falling In Love With Your Brand Karen Ahl ……..…………..9
Financial System Enquiry What’s important in a nutshell Paul Gillmore……..............10
Being Nimble is a Key Element of Successful Marketing Peter Nicol ………………..11
P
HR Systems and Processes Denis Keating …………… 12
P
Groove … Or Grave? Brett Chamberlain ………13
G
Do You Have “Trust” In Your Business? Editor ……………………..14
Editor’s BizTips ……….….15
LTB Objectives …..........…..16
(percentage of all responses)
C Cost of Living A Access to Healthcare
E
Employment/Jobs
E
Economy Terrorism/Security Housing Affordability
T H A
Ageing Population
E
Environment/ Climate Change
L
Law & Order
A
Asylum Seekers
E
Education
I
Income/Poverty Regulation / Taxation Population /Immigration Govt Red Tape
n Infrastructure/Transport O Other
I
Indigenous Issues
0
10
20
Volume 3 Issue 27 February 2015
30
40
50
60
Page 1
Let’s Talk Business
Biggest Issues Facing Australia Today A survey of what matters to Australians
NAB has released its first annual pulse survey on the biggest issues facing Australians today. The survey was undertaken during mid to late-November 2014. The cost of living is clearly the biggest issue by a BIG margin. Other important concerns include: access to healthcare; employment and jobs; the economy; and terrorism and security. Conversely, concerns over indigenous issues, infrastructure and transport, and taxation are the lowest.
The economy and terrorism are more important concerns for men.
Many Australians aged between 30 -49 view employment/ jobs and housing affordability as bigger issues, but more young people identified with education and income inequality.
Other key findings are:
Cost of living is the biggest issue across all demographics, except for Australians over 50, where access to healthcare is the biggest issue. However, there were notable differences across demographics in terms of the relative importance of each issue.
Cost of living is a much bigger issue for Tasmanians.
Access to healthcare is also a bigger issue in Tasmania as well as SA/NT.
Employment and jobs are more important in Tasmania, Victoria & SA/NT where unemployment has also been higher.
West Australians are most concerned about terrorism/ security, while Victorians see law and order as a much bigger issue than in the other states.
Women rate cost of living, access to healthcare and an ageing population as a much bigger issues than do men.
Access to healthcare was a relatively bigger issue for those earning less than $35,000 and for the unemployed.
Top 4 issues Australian facing small business: Realcommercial.com.au spoke to Nick Behrens, General Manager of Advocacy, CCI Queensland, and Steven Wojtkiw, Chief Economist, Victorian CCI, regarding the main issues impacting on Australian Small Business today. 1. Patchy consumer sentiment: First and foremost are concerns over weak consumer sentiment, with Wojtkiw saying: “Concerns about employment prospects are influencing consumers to keep their spending to a minimum.” Behrens agreed: “There is a real disconnect between business and consumer sentiment, driven in part by concerns over debts and deficits and the measures in the federal budget to limit welfare and transfer payments.” 2. The cost of employment: Both took aim at inflexibility in workplace arrangements and national wage case
Volume 3 Issue 27 February 2015
decisions by Commission.
the
Fair
Work
Wojtkiw summed it up best saying: “Many employers don’t have the capacity to absorb increases in labour costs when there are no matching increases in productivity. Many employers don’t have the capacity to absorb increases in labour costs. 3. Canberra: The theatrics in Canberra are viewed as a major drag on business sentiment. Wojtkiw sees it as an ongoing problem, and there is still a sense of shifting goalposts.” Behrens agrees. “The federal government’s inability to pursue its mandate through the Senate is certainly affecting business sentiment,” he says. 4. Rising input costs: Apart from the cost of employment, rising input costs are also landing blows on small business sentiment. In Queensland, it is the cost of insurance front of mind, with business premiums rising a whopping 58.2% according to Behrens, leading many owners to under insure assets or discontinue policies. Both men also mentioned rising energy costs as a significant challenge for small business owners.
Page 2
Let’s Talk Business
Dr Tim Baker Managing Director WINNERS AT WORK Pty Ltd
www.winnersatwork.com.au www.about.me/tim.baker tim@winnersatwork.com.au
Do You Like To Push or Pull?
Telephone. +61 7 3899 8881
Editor’s Note: Dr. Tim Baker is an international consultant, successful author, keynote speaker, master trainer, executive coach, university lecturer and skilful facilitator. In a nutshell, he has conducted over 2,430 seminars, workshops and keynote addresses to over 45,000 people in 11 countries across 21 industry groups.
attempting to take others on a path he or she has specifically and clearly laid out. Enabling is more about the influencer facilitating a process so that others are persuaded to find their own path to a broad destination.
Getting the person to come to the idea When a leader decides to sell an idea to their team, this is a more direct style of influence characteristic of taking the idea to the person.
Testimonial from Stephen Hartley, Australia’s leading expert on project management and author of "Project Management: Principles, Processes and Practices.
Proposing - Testing understanding Proposing entail the influencer offering suggestions based on their own experience or vision. Testing understanding on the other hand is evaluating an incident and facilitating course corrections in a collaborative fashion.
Conversely, when the leader encourages the team to talk through an approach and get agreement on a way forward, they are adopting a pull style of influence characteristic of getting the person to come to the idea.
Push and Pull are the two styles of influence. Which of the two styles do you use most of the time when trying to persuade someone else about something? One is not necessarily better than the other; they are both effective in the right place, at the right time, with the right circumstances, and the right person.
Giving information - Seeking information Giving information is informing an inspiring a group so they may be better equipped to undertake a task. Seeking information is testing the group's understanding of a task and adjusting an approach based on teamwork.
Following is a table that illustrates the two styles side-by-side. You will notice that the two styles are polar opposites.
Blocking/shutting out - Building/ opening up Blocking and shutting out is based on asserting a position on an issue in a compelling way that effectively eliminates other possibilities. Building and opening up is the reverse approach: it is about exploring a range of possibilities and then reaching agreement.
"Dr Baker leads the world in offering an “ innovative new approach to appraising employee performance. His research and energy in the specialised field of performance management is evidenced by his international profile as a renowned speaker, management consultant and facilitator" .
I'll run through the differences in the table briefly. As I am doing this, think about which characteristics you tend to favour most of the time when working with other people. Driving - Enabling Driving means the influencer is
Taking the idea to the person -
Volume 3 Issue 27 February 2015
Which style do I use, push or pull? The rationale for using the push style is that people are influenced by compelling proposals, well supported by factual argument or a clear and motivating vision of the future. This implies a more direct and systematic manner of influencing. While the rationale for using the pull style is that people are more influenced readily when their needs, motives, aspirations and concerns are uncovered and catered for. The key variables that determine best style are your preference, preference of the person(s) you attempting to persuade, and circumstances you are in.
the the are the
Bottom line: Use them both at the right time, in the right place, with the right people, and in the right circumstances.
Page 3
Let’s Talk Business
HUMOUROUS BUSINESS CARDS
An Australian lawyer and an Irishman are sitting next to each other on a long flight. The lawyer is thinking that Irishmen are so dumb that he could put something over on them easily...So the lawyer asks if the Irishman would like to play a fun game. The Irishman is tired and just wants to take a nap, so he politely declines and tries to catch a few winks. The Aussie lawyer persists, and says that the game is a lot of fun. I ask you a question, and if you don't know the answer, you pay me only $5; you ask me one, and if I don't know the answer, I will pay you $500, he says. This catches the Irishman's attention and to keep the lawyer quiet, he agrees to play the game. The lawyer asks the first question. 'What's the distance from The Earth to the Moon?' The Irishman doesn't say a word, reaches in his pocket pulls out a five-dollar bill, and hands it to the lawyer. Now, it's the Irishman's turn. He asks the Aussie lawyer, 'What goes up a hill with three legs, and comes down with four?' The lawyer uses his laptop and searches all references he could find on the Net. He sends e-mails to all the smart friends he knows, all to no avail. After one hour of searching he finally gives up. He wakes up the Irishman and hands him $500. The Irishman pockets the $500 and goes right back to sleep. The Aussie is going nuts not knowing the answer. He wakes the Irishman up and asks, 'Well, so what goes up a hill with three legs and comes down with four?' The Irishman reaches in his pocket, hands the lawyer $5 and goes back to sleep.
Volume 3 Issue 27 February 2015
You Know You're Having A Bad Day When...
Your horn sticks on the freeway behind 10 Hell's Angels motorcyclists
Everyone avoids you the morning after the company office party
You call the suicide prevention hotline and they put you on hold
You invite the peeping Tom in...and he says “No!”
The Gypsy fortune teller offers to refund your money when she sees your future
When the doctor tells you are in fine health for someone twice your age
You call your spouse and tell them that you'd like to eat out tonight and when you get home, your find a sandwich on the front porch
An elderly gentleman.... Had serious hearing problems for a number of years. He went to the doctor and the doctor was able to have him fitted for a set of hearing aids that allowed the gentleman to hear 100% The elderly gentleman went back in a month to the doctor and the doctor said, 'Your hearing is perfect.. Your family must be really pleased that you can hear again.' The gentleman replied, 'Oh, I haven't told my family yet. I just sit around and listen to the conversations. I've changed my will three times!' Page 4
Let’s Talk Business Dennis Chiron Marketing Means Business 0451 184 599 www.marketingmeansbusiness.com
dennis@marketingmeansbusiness.net.au Skype: dennis.chiron2
How To Achieve Direct Mail Success It has often been said that the success of a direct mail campaign can be broken down into three primary components: 1. The mailing list or target audience 2. The offer or incentive for the customer to buy the product 3. The creative package or communication message conveyed in the overall package Experts in the field of direct mail have gone further to say that 40% of a campaign's effectiveness is driven by the mailing list, 40% by the offer, and 20% from the creative package. In the direct mail field, there are many key components to a successful campaign. Direct mail campaigns can easily flop, so learning proven techniques for ensuring success is crucial for marketing departments developing plans for future direct mailers. The first step towards victory is reviewing the misguided traditions of failed direct mail campaigns Many successful businesses use direct mail to get new customers, thank existing customers, and bring old customers back into the fold. You can be part of this success too. But what you can't do is send out a sloppy letter; flyer; postcard; or catalogue. Sending out a shoddy direct mail piece is like taking postage stamps and pushing them down the drain. Or, even worse, it's like giving the postage to your competitors.
Try following these solid successful Direct Mail:
Not an appealing scenario. But, lucky for you, you can avoid the trauma of a misguided mailing. Not only that, but you have the opportunity to make significantly more money than you spent on the mailing -- which is almost always your goal. How? Volume 3 Issue 27 February 2015
tips
for
Before you write, do a couple hours of research. Ask a handful of your current customers to tell you in their own words what they like most about doing business with you. Ask them in exactly that way. What they will tell you will be the most important benefits they perceive. Use those benefits to start your letter. Come up with a really dynamite reason for someone to respond to the letter. Make an extraordinary offer. Find a new and appealing way to bundle together a number of your product or services. Or offer special payment terms. Or an unusual guarantee. When you start writing, use short words and short sentences. People can't, won't, and don't read long, complicated stuff. Not if they don't have to. It's bad enough that their Aunt Peg uses complicated words. They won't read your letter unless it's easy to read. Life is hard enough, without your direct mail letter contributing to the complexity. Count the number of you's and your's in the letter. Your letter should have at least twice as many you's and your's as I's, me's, our's and your company's name. A ratio of four to one is even better. When they read your letter, your customers like it when you talk about their dreams, their problems, solutions you can
provide to their problems, and the benefits they will receive. And they will show their appreciation -- with sales. Whatever you do, Don't mail it out the minute after you write it. No matter how good a writer you are, let it sit a day or two. Then, rewrite your letter to make it simpler, clearer and more compelling. After that, read it out loud. Then, show your letter to some customers. If their reaction is "interesting" or "well written" you may have a loser. A sales letter isn't an essay. It's a sales piece, first and foremost. So, after reading, if your customers say, how can I get one of those? -they want to buy what you're offering -- you've got yourself a successful letter. Check to see if it's clear what you're offering and how a reader can take you up on the offer. One great way to find out is to have a child read your letter. Children often see the obvious that adults -- caught up in the more abstract problems and distractions of life -- miss. Do a test mailing and measure the results. Don't send out all your letters at once. Just send out a few dozen. Or a few hundred. When the results come in -- when your mail is good, they'll come in fast -- then do the maths. Did you make money?
Did the letter get you more profits than you would have earned if you had put the time to other use? If the answers are yes, then roll it out. And let the profits roll in.
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Let’s Talk Business
TimeEqualsMoney Angie 'Speedy' Spiteri
Business Efficiency Specialist www.timeequalsmoney.net.au Ph: 0403 970 732 http://www.facebook.com/time.equals.money
Does Facebook Increase Productivity? Ever wondered why it's difficult at times to stick to what you are trying to get done? Why we allow constant interruptions and distractions, like text messages and social media to steal our attention?? I was recently listening to a webinar from Mark Waldman on "The Science of Motivation". Mark is one of the world’s leading experts on communication, spirituality, and the brain. Mark was talking about how our brains are inherently lazy and how we hate to work and hate things that take a long time to do. We are motivated by pleasure and want it instantly! When we see something we really want, that is going to take some time to achieve, we have an interesting problem on our hands... You see our brain just wants to go out and get it... it doesn't want to wait BUT because we know we are going to have to wait, and we are going to have to work to get it - we have a dilemma... what do we do? Take the action that will be of benefit to us in the future, and keep taking action until we achieve our goal (delay gratification) Or not (instant pleasure eg sleep, watch TV, eat whatever you want, drink....)??? In the late 60s Walter Mischel, then a professor at Stanford university lead a study called "The Stanford marshmallow experiment".
a choice, they could eat a marshmallow now or if they waited approximately 10 - 15 minutes they would get two marshmallows. The kids are hilarious as they struggle inside between immediate gratification or the reward of 2 marshmallows. Have a look at them here. www.youtube.com/watch? v=QX_oy9614HQ
https://
Fifteen years later they followed up with these children and they found that 90% of the children who were able to resist and wait longer were more successful and had better life outcomes. So how do you keep going until you achieve what you want? How do you keep focusing until you finish what you need to do? How to you keep doing activities that make you money, when you really don't want to?? Well Mark suggests you give yourself a regular pleasure breaks! Five to ten second breaks, three times every hour. Or a minute break at the end of the hour. Our motivation to keep going is driven by pleasure. The best type of activities to during the break...
In these studies, a child was offered Volume 3 Issue 27 February 2015
Self-massage like a head or neck massage. Yawning. Stretching. Doing an exercise activity you enjoy doing eg a quick jog on the
spot or a samba move. Be playful... (ever wondered why cat videos are so popular?) Look at pictures of smiling faces (now you know why you can't get enough of face book!!)
These activities are the best because they stimulate the brain, increase confidence, relax and reinvigorate us so we are able to be more productive. Mark stresses we must have constant rewards to keep us going and have an accountability partner (your boss? a coach?) and support group to cheer us on so keep us going when we feel like giving up. Fascinating! Of course there were a lots of other information he went through about how to motivate yourself and break procrastination... if you can't wait for my next article where I talk about this and you want to find out more about Mastering your mind, click this link here for a free ticket the a Brain a thon! If you can wait, 'see' you then!
**Angie Spiteri is a highly sought after speaker, author and consultant that specialises in Productivity and Results. To connect with Angie visit www.timeequalsmoney.net.au or email her directly at angie@timeequalsmoney.net.au Page 6
Let’s Talk Business
Geoff Butler FAIM AP, MAITD MACE Principal/Business Improvement & Implementation Specialist Business Optimizers
Why Do Businesses Fail?
Mobile: 0414 943072 Fax: 3036 6131 Email: geoff@businessoptimizers.com.au Skype: business.optimizers1
There have been many attempts to define what makes businesses successful, and unfortunately no one has found the secret formula to guarantee success. Luckily there has also been a lot of research done on why businesses fail, and here there does seem to be a more quantifiable theme. Worldwide research indicates that approximately 60% of all new businesses will disappear within their first three years, and 90% in the first ten. This doesn’t mean that they all went broke, as many business owners simply give up because it’s all too hard and gone back to working for someone else. Others will have been taken over by their competitors or moved into other markets, but the cold, hard statistics are still very sobering for anyone considering venturing into the world of business ownership. This same research has found that 90% of business failure can be attributed to faulty management – more particularly, poor financial management. However if we can avoid these seven deadly sins, we may not entirely avoid the risk of failure, but at least we can maximize our chances of success: 1. Failure to plan properly before start up. Otherwise known as errors of omission; it involves getting your structure right, having access to adequate capital, knowing your market, and determining your human and physical resource requirements. All of the things
that a good Business Plan should tell you. The good thing about not planning however, is that failure comes as a complete surprise, and isn’t preceded by a period of worry and depression. 2. Failure to monitor financial position. Developing a profit plan and cash flow budget, and then monitoring performance to determine variance. Looking at ratios and benchmarking to determine stability and efficiency, against industry benchmarks and your own targets. Remember if you’re not doing so well and the rest of your industry is, chances are it’s your fault. 3. Failure to understand the relationship between price, volume and costs. Understanding how each of your expense categories vary with sales so you can accurately determine your contribution margin and breakeven sales. 4. Failure to manage cash flow. There is an old accounting saying that profit is a matter of opinion, but cash is reality. If you can’t manage your cash flow to maintain your liquidity, it doesn’t matter how profitable you are, your creditors will simply shut you down. 5. Failure to manage growth. Growth is good but it can also bring you down if it isn’t controlled. It never ceases to amaze some people that the majority of businesses that go broke each year are actually highly profitable. They simply
Volume 3 Issue 27 February 2015
grow too fast and therefore run out of the ability to fund the uncontrolled expansion. 6. Failure to borrow properly. The golden rule of borrowing is to match the term of the loan with the life of the asset. Even bankers will agree that the worst product they sell is an overdraft, and yet many business owners put their cash reserves at risk by using this facility to make major capital purchases. Dealing effectively with banks and other finance institutions is critical to success. 7. Failure to plan for transition. In the end for most owners there are only three ways to get out of their businesses. Sell it, shut it down or give it away (usually to your kids). With the emerging demographic bubble as the baby-boomer generation approaches retirement, and the majority of owners seeing their business as a major component of their retirement income, planning your exit strategy early will become crucial. Potential investors will target well managed, systemized businesses that do not rely on the current owner for their continued success. As I said before, there is no magic formula for success and avoiding the above will not necessarily guarantee you achieve it, but it at least gives you the best chance of realising your personal and business goals in the ever -changing world of business. Page 7
Let’s Talk Business
Dan Buzer Profit Mechanics 0414 567 188 www.profitmechanics.net/ dan@profitmechanics.net
“… Dan, if you’re serious about getting rich, you’re going to have to learn to be lazy …” Advice I was given from Mr Cyril Maloney, a self-made BRW Rich List member worth $350 Million Dollars. I didn’t know Mr Maloney was worth that amount. I knew he owned the Bondi Beach Hotel, but not the other vast portfolio of Real Estate he controlled. Mr Maloney personally met with me every few weeks to review the performance of an area of his business I was managing and gently gave me advice. I was 19 years old and had nothing but enthusiasm and a vague idea in my head to become an employer someday, instead of an employee. Mr Maloney taught me three lessons … Lesson 1: If you’re serious about getting rich, you’re going to have to learn to be lazy. Mr Maloney did not work hard. He had lots of people working hard for him. He had managers, accountants and employees that did the work. Joe Polish, Branson’s biggest charity fundraiser, asked Richard ‘How do you manage over 300 companies, when most people struggle to manage one?”. Richard’s answer … “The secret is I have to make sure I do nothing”. This is the biggest mistake many business owners make. They’re not comfortable to not be seen as the hardest worker, biggest contributor or
smartest person in their business. This is what keeps them small. Lesson 2: Business is about ‘who’ you know. I found a better butcher to supply meat. I took the initiative and sought out better quality for a better price. After interviewing several suppliers I chose one and started ordering from him. I gave the previous butcher a chance to match the quality and price and he didn’t, so I went with the new supplier. A few weeks later the old butcher turned up with the order of meat. I was surprised by 2 things. First, the quality was much better and second, the price was reasonable. The 60 year old local butcher said that Mr Maloney was going to ‘have a chat’ with me. Mr Maloney said I had done the right thing for the bistro, but he had other businesses dealings that involved a few key people. Many of these key people were involved with this butcher. The lesson was to look beyond the first connection and learn to be aware of and manage the next levels of connection. Lesson 3: Make a little bit of money every day and put it away. This is probably, the simplest, most commonly known and yet the most challenging lesson for most people. Small steps done regularly compound into bigger things. The actor Will Smith was taught by his father at a young age to “focus on laying each brick perfectly, rather than the big
Volume 3 Issue 27 February 2015
wall you’re aiming to build”. Mr Maloney was always experimenting, tweaking and changing things in his businesses, but he always remembered the important thing was to consistently put a little bit of money away every day. At the time I didn’t understand how lucky I was (and how rare the opportunity) to be mentored by someone like Mr Maloney. He was wealthy, happy and a true Gentleman. He calmly managed and built a very successful chain of businesses. Since this time I have read many books, attended many seminars and owned a few companies of my own. Only after I have had more experience in the world have I come to realise that these lessons are the most important and helped guide me in my journey of becoming a successful business person. I hope these lessons resonate with you as well. Mention this article and you can also have a copy of the Profit Mechanics Sales & Marketing Diagnostic Questionnaire along with a 30 minute phone chat to help guide you through the tool and apply your business objectives to it.
Remember … Business is More Fun, When There’s Profit! Page 8
Let’s Talk Business
Karen Ahl Bac. Bus (Mark, Man), TAE40110, Cert IV IT Caboolture, Queensland Ph 0415 142 178
www.web-sta.com.au info@web-sta.com.au
Falling in love with your brand It is more than just a pretty logo. We have to work hard to get potential customers to fall in-love with us (our brand), then to ensure the passion remains. As business owners, what do we do? How do we get potential customers to even like us let-alone get them to love us. Be Seen, Be Seen and Be Seen again Marketing 101. By being seen often, potential customers (quite often subconsciously) feel more comfortable dealing with you. It is a matter of repetitively popping up where your ideal customers hang out. Whether this be on Facebook, at a physical networking event, on billboard advertising, via email newsletters, in print media (newspaper/magazines), TV advertising, radio...even on local shop pin-boards.. This is why so many "once-off" advertisements and promotions rarely work. Have you ever placed just one ad into the local newspaper and wondered why you go very few or even NO calls? There is no follow through, no repeated 'popping-up' in-front of those ideal customers and no reminding them of who you are. Advertising in a magazine for one issue, doing one round of letterbox drops or posting once a month on Facebook is a sure way of NOT being remembered.
be seen again and again and again, but each time you are seen, your potential customers have a hard time realising they have indeed already 'seen' you. You are effectively watering-down the strength of your brand. It is more then about having a logo or colours that are easily identifiable... it is also about people easily identifying what you do or offer as well. If you are a plumber, a business coach a yoga instructor or a retailer of ladies fashion...make sure that this message is also consistent throughout your advertising and marketing. Subliminal messages usually only work when you have a massive marketing budget ~ be obvious, be clear and be identifiable! It starts with 'LIKE' A potential customer is more likely to deal with you if they simply LIKE you. It involves everything from how they interpret the wording on your website to how they feel when dealing with you on phone/email. You could have the most amazing advertising in the world, but if a potential customer calls you/your staff and they don't like they way they are dealt with...you have lost them. If you issue a quote and it is messy and unprofessional you are less likely to earn their affection. YOU, your staff and the way you communicate (written, verbal and even body language) makes up part of your brand.
Consistency = identifiable
"I love you Brand"
Getting your branding right is really important and quite simple to do. The way your logo appears on cards, letterheads, invoicing, signage, flyers, advertisements and uniforms needs to be considered. Do they match? Is your colour scheme consistent throughout all of your advertising and marketing (including on your website)? Imagine investing time and money in advertising, so that you can
This is where customer loyalty comes in. Once a customer has dealt with you at least once, you have an opportunity to maintain the relationship so that the like turns to LOVE. When they LOVE your brand, they will refer you to others. When they love your brand, they will provide you with great feedback (you may need to ask). When they LOVE your brand, and stay in love with your brand,
Volume 3 Issue 27 February 2015
you are a lot more likely to keep them as a customer.. You can do this by calling them to see how they are, provide regular email updates, consistent branding on invoices and communications, personally thank them for referrals...even something as simple as sending out Christmas Cards is a nice touch. Don't be afraid to test and measure too. Test different advertisement layouts and colours, ask your existing clients for feedback and work out what does and doesn't work. Give your staff better training on how to deal with new inquiries, test out different email communication. Test what Facebook posts and on what days get more attention, ask potential customers where they heard about you. Research! And the biggest hurdle - GET CLEAR Get clear with any suppliers that have anything to do with your brand. Sometimes it is fun to see what else a new provider can 'come-up-with'. Ensure they all working to match in with your consistent look and that each of them isn't trying to reinvent the wheel (the BIGGEST reason why so many businesses have such messy branding). Create a folder on your computer of your official logo, colour samples, wording, previous advertisement layouts that have worked, slogan/s, service/product list and images so that each of your service providers are creating websites, business cards, car signage, advertisements, banners, flyers and letterhead that are all consistent. Take responsibility and control of your brand! For further information, please feel free to email Karen ~ The Webgirl. ďƒž Page 9
Let’s Talk Business
Paul GILLMORE DFS Founder and Director Southern Cross Financial Services 07 5429 5561 0402 685 032 paul@sc-fs.com.au
Financial System Inquiry –What’s important in a nutshell The Financial Services Inquiry headed by David Murray (ex CBA CEO) delivered its final report to the federal government in November 2014. Amongst the recommendations were: Make Financial Product Providers more accountable -for their products – such as managed funds. The report discusses design and distribution and recommends that the institutions be more accountable. Institutions such as large fund managers and big banks seemed to get off ‘scott free’ after the GFC and not held responsible for the failure or poor performance of their products, investments or managed funds allowing advisors to be blamed for something over which advisors had no control. MySuper -has been legislated to be the default option for superannuation. It appears to be a blunt and a ‘one size fits all’ approach. Murray prefers an option where each super fund would have to compete for the business of new workforce entrants. This would save awards having to specify a default super option better outcomes would be expected to flow to clients
ownership of the financial advice firm. This is significant because 80% of advisors are employees of a big bank or institution. He questions that true independent advice is as freely available as consumers would prefer. Currently, disclosures can be in Financial Services Guides (FSG) or Consumer Credit Guide (for loans) but Murray believes that all documents should be branded with the name of the owner for transparency purposes. Independent Trustees Superannuation Funds.
for
all
Murray believes that Australia is out of step with the rest of the world by not requiring independent directors and board member into Australian Superannuation Funds. He says “it’s international best practise to do so” and believes that greater competition, transparency and more representative of the broader membership. Longevity Pooling - is the concept of creating specific products to better tailor to the fact that we are all living longer and therefore need our retirement savings to last longer.
Murray questions the “General Advice” terminology
The requirements are income, risk management and flexibility which must be managed over the long term (i.e. the several decades we will spend in retirement).
-which essentially generic product info. He believes the term can mislead clients into believing that they are receiving personal advice. Specifically Murray focusses on the
Murray recommends the removal of impediments to Comprehensive Income Products. These could be a combination of Life insurance, account based pensions and income
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products like annuities. CGT relief for switching out of outdated investment products. Murray suggests that up to 25% of all investment products are out of date with legislative changes, market changes government policy changes. Commonly called ‘Legacy Products’, Murray recommends that a system of rationalising old products to newer, more efficient products be adopted. Currently, people are loathe to switch out of legacy products because of CGT. Simpler, more Bond Market.
understandable
Australia trails the world in simplicity of issuance of bonds which results in in unnecessary complication and expense of these basic investment products. He believes that standard terms and conditions to make bonds simpler and reduce costs. There were 44 recommendations by David Murray in the Financial System Inquiry. However the issue of ‘independent advice’ remains topical. Large institutions make money from products that their advisors (who are mostly employees) are required to recommend. Called ‘Vertical Integration’, this business model seems inherently focused on profits for large banks and institutions rather than on building wealth and security for clients. Southern Cross Financial Services is a fully independent practise with no allegiance nor ownership by any large corporation.
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Let’s Talk Business
Peter Nicol Wisdom Marketing & Management Services 0417627097 www.wisdommarketing.com.au manager@wisdommarketing.com.au
Jack be nimble – Jack be quick Being nimble is a key element of successful marketing. Much is said about Marketing Plans and, done properly they can and will serve you well. However every plan must have contingencies. Why? Because good and bad things can happen in the marketplace. It is your job to monitor markets if you are to keep a steady course.
Your job is to see the endless opportunities or threats that spring up on a daily basis that can have a positive or negative effect on your business. I always feel sorry for retailers who have road works done outside their premises for weeks on end.
Market threats and opportunities abound for every business. Some are complex, others, present the potential to make a lot of money. For example over recent months the price of fuel has dropped significantly. This means that there is a fair bit of surplus cash floating around in “Joe Public’s” pockets.
People are steered away from the store and sales drop. Could it be possible that to avoid interruption to trade that a group of disaffected shop owners could plead their case to Council or Main Roads. No point in complaining once the work has been done.
Now most people will see this as a windfall and save the money but, there are those who will want to use those funds for a purchase. Is it going to be with you? You have to plant the seed of an idea in the market that they “might” now have the funds to buy. When you first started the marketing plan you could be forgiven for not factoring in the significant drop in fuel prices. Nor could many of us factor the horrible events of the GFC. It is not about blame it is about being flexible and nimble to take advantage of these unexpected market conditions. Interest rate drops also put more money into the market. Are you ready to capitalise on that? Sitting down and navigating your way through today’s complex world of politics, terrorism, market contractions
and falling commodity prices makes life pretty complex. Yet, charting your way through the big and indeed small issues is just so important. There can be a surge in crime in your area. This is a perfect opportunity to have cameras installed (provided you sell them!), perhaps more night watch men/women are needed. Sudden bush fire danger could present as a market for guttering’s to be covered or small firefighting appliances. Look for the opportunities that can be found in many a negative situation. When the GFC hit we were all given $900 to spend. Most of us will remember that. Good or bad is not the issue. There was a heap of money in the market and many of us went on holidays or purchased high end electronic equipment for our homes. It was unexpected and was a windfall for those who got off on the front foot and started to promote their wares.
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Markets change, policy settings of Government get delayed or put on hold. Markets contract for no apparent reasons. The money just gets turned off and it is the job of the driver of the business to set in play nimble tactics that take the maximum advantage of the situation or mitigates the negative effects on the business until circumstances change. Yes, have your Marketing Plans in place and maybe the sometimes surprise market conditions will never present. But it is key to your success that you maintain vigilance to move nimbly to maximise the advantage or mitigate the harm.
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Let’s Talk Business
Denis Keating Everest Resources Brisbane, QLD HR and WHS Protection for Your Business Mobile: 0419 029 606 Fax: 07 3112 4072 Email: denis@everestresources.com.au Web: www.everestresources.com.au Skype: denis.keating1
HR Systems and Processes
Last month we reflected on the quote from Jim Collins’ book “Good to Great” wherein he states that the greatest barrier to individual business growth is “….the ability to get and keep enough of the right people”. We looked at the diagrammatic representation of the National Standard HRF 101:2010 Human Resources Framework:
And we reflected on Section 1 from the HR cycle above: organisational measurement and planning. This is about the need to analyse where you are at and develop a plan for HR for the year ahead, broken down into achievable activities on a month by month basis. This month we look at the next step in the HR cycle: Systems and Processes – what are they and how do we use them to attract and retain the right
employees, now is a good time to tidy up your process and implement the correct paperwork.
people? We are talking here about the necessary HR documents and how they are used in an organisation. The problem for micro and small businesses is knowing where to start and what you need to do. If you have employees, even only one, you need documentation in place to help set the structure and guidelines, to maintain records and thus to protect you and your business from potential difficulties as far as possible. Think about what is required, how it will be communicated and how you will involve your employees. Keep your system simple and purpose-built for your business, and include an annual review process. Start with a well-constructed employment agreement or contract for each employee, and have a position description for each different role in the business. For new employees these should be agreed and signed by both parties before commencement. Where these are not in place for existing
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Every business should have a code of conduct, which is simply a set of guidelines and expectations for staff and management – “How we do things around here”. Then consider what other specific needs your business has. These days for example, most organisations should have policies that cover computer, email and internet use, and social media. The risks in these areas and the opportunities for misuse and damage to your business are significant. Once you have drafted a suite of policies and procedures and related forms where necessary, it is important to induct your workers into them – this is part of good process and correctly done can have a positive impact. Involve your staff in the drafting and implementation, and you will generate buy-in. Important Tips: Get advice Keep it simple Tailor for your business Implement well to create a high level of trust with your staff
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Let’s Talk Business
Level 23, 127 Creek Street GPO Box 1092 Brisbane Qld 4001 Telephone: 07 3218 2172
Groove … Or Grave?
Email: brett@corpdev.com.au
CorpDev
Avoid the trap of letting your grooves become graves by doing a periodic check on what you’re spending your time on. List everything you do in a typical day … and ask whether you’re really the best person for the job. (This includes asking whether it’s something you really enjoy doing.
Editor’s Note: Brett Chamberlain is an International Speaker; Author; Advisor and Consultant, and is one of Australia’s leading business improvement consultants and management advisors. During a 20 year consulting career he has been responsible for dramatically improving the profitability of literally hundreds of businesses around Australia and overseas, including many major corporations and hundreds of smaller businesses, by showing how to master fundamentals that deliver profitable growth.
This is what some people have to say:
Frank Green … Business Improvement Specialist at Business Fundamentals. I first met Brett in 1994 when I was working as a Small Business Advisor with the Queensland Small Business Corporation. He...View
Rod Webster … Founder and CEO at Webster Business Coaching I initially met Brett when I engaged him to help me to work on my business over ten years ago. Brett’s ideas and his ability...View You’ve probably heard the term ‘in the groove’. Sports stars use it to describe the feeling of effortless, perfect performance which they sometimes
attain after countless hours of training. Chances are you’ve experienced it yourself at different times. After doing something many times you occasionally have that marvellous inthe-groove feeling of being “on top and in control”. Everything goes smoothly and it doesn’t even seem like you’re really trying. There’s just one problem …Too often, I’ve seen business people who’ve mastered various functions, processes and parts of their lives. They’ve done these things the same way on countless occasions and have reached the stage where they can consistently achieve the same result without any real thought or effort. As a result of their many repetitions, they’ve created their own ‘groove’, which they slip into the moment they hit the buzzer on the alarm clock each morning. Without even thinking about it, they get up, get dressed, eat breakfast, go to work, complete their assigned tasks, get home, have dinner, watch TV and go to bed. Next morning, they repeat the process. Problem is, the ‘groove’ can easily become a ‘rut’.
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If you’re good at something but don’t like doing it, you are NOT the best person for the job.) Once you’ve identified those things you’re well suited to, go back through the list and check to see which functions generate revenue or other rewards. Hopefully you’ll find there are some functions which you’re good at AND which generate rewards. Guess where you should be focussing your efforts and time. Clearly, it’s counterproductive to be working on things which don’t produce worthwhile outcomes. And it’s particularly counterproductive to be doing those non-productive things when you’re not the best person for those jobs. So stop doing them, as soon as you possibly can. Farm them out. Delegate them. Outsource them. Find another way of getting those things done … but don’t do it yourself for a moment longer than you need to – or you’ll run the real risk of building a groove that becomes a grave. Contact Brett via brett@corpdev.com.au for a free, no obligation chat if you’d like advice on how to build your business
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Let’s Talk Business Dennis Chiron Marketing Means Business 0451 184 599 www.marketingmeansbusiness.com
dennis@marketingmeansbusiness.net.au Skype: dennis.chiron2
Marco Carbajo writes that he believes that the most valuable business commodity is trust.
It is the barometer by which your customers, lenders, potential business partners and employees evaluate you and your business. Trust in a business speaks volumes on how a company services and communicates with its customers. A trustworthy business can be defined many different ways depending upon the person, business, or organization reviewing it. Marco Carbajo suggests that there are five ways you can build trust in your business: 1. Deliver on your promises – Doing what you say you are going to do when you say you’re going to do it is crucial to building trust. Famous entrepreneur and motivational speaker Jim Rohn said, “One customer well taken care of could be more valuable than $10,000 worth of advertising.”
Do You Have “Trust” In Your Business?
information about you and your business online. According to a survey conducted by Dimensional Research, 90 percent of respondents who recalled reading online reviews claimed that positive online reviews influenced buying decisions, while 86 percent said buying decisions were influenced by negative online reviews.
Richard Branson, author and founder of Virgin Group says, “Building trust in your brand isn't easy to achieve and it may take time, but it doesn't have to come at a high cost. With honesty, ambition, hard work and attention to detail you can instill a level of trust that will enable you to move forward.” The fact is that integrity impacts all aspects of business and is among, if not the most important character trait for a company to have.
Small Business Marketing
It’s crucial to manage your online reputation and establish an active social media presence, website and blog. 3. Communicate effectively – Effective communication is the cornerstone of any successful company. In today’s fast paced business world, having a range of communication channels available such as phone, e-mail, instant messaging, fax, etc. is key to maximizing your ability to communicate effectively with customers. 4. Stay in compliance - Staying up to date and compliant with all federal state, and local rules required to keep your business in good standing where it conducts business is essential. Failure to meet the necessary requirements can cost you loss of good standing, not to mention fines, penalties, reinstatement costs and even business closure. 5. Creditworthiness Lenders, potential business partners and investors will check your company’s credit reports.
2. Have a solid reputation – Potential customers and business partners will search for Volume 3 Issue 27 February 2015
With positive business credit reports and ratings (link is external) with a credit agency such as Dun and Bradstreet, a creditor can assess how your company
handles its financial obligations. “All of this can be done by taking the initiative. Increased credit affords businesses better relationships with partners, vendors, trade sources and the community at large” says Jeff Stibel, CEO of Dun & Bradstreet Credibility Corp. People often define integrity as doing the right thing even when no one else is around. It is the ability to act with honesty and be consistent in whatever it is you are doing based on the particular moral, value or belief compass you have. Beliefs, values and morals all relate to the culture in which you operate, so culture plays a significant role in determining exactly what integrity involves. Trust and integrity are inextricably connected and many business relationships halt or proceed based on this basic determination whether there is trust in the relationship. Let this be a guide for you in building and maintaining trust in your business. Integrity and credibility are invaluable business commodities. Take the time to study the habits and behaviors of those businesses who have gained trust in the business world. Adopt or adapt those that you can authentically incorporate into your own behavior. With time and consistency, you can build up trust and credibility for your business in the marketplace. Page 14
Let’s Talk Business Dennis Chiron Marketing Means Business 0451 184 599 www.marketingmeansbusiness.com
dennis@marketingmeansbusiness.net.au Skype: dennis.chiron2
Lack of Training Can Mean Poor Business Performance Surveys in Canada and the USA have revealed that companies who do not invest in training have stagnant or failing results. Nabisco Biscuits (USA) reported a $20 increase per $1 invested in training as part of an integrated ‘Planning & Selling’ program. In two years the dedicated training and response program lifted Nabisco from third in market share (31%) to leader (48%). The Nabisco President said that the increase in sales flowed from two major factors - first, the total management team supported the investment, and the training was reviewed regularly to ensure strong rapport between the company and the training provider. Flexible Working Means Looking Beyond Terms & Conditions The workplace is experiencing a multiplicity of changes, including a new industrial relations regime, retructuring and increased competition. So vast and diverse are these changes that business owners are experiencing increased pressure to deliver more productive, less stressful working environments that require reduced hours of work and reduced workloads. There is a misconception that long working hours are a sign of a productive employee. In fact this belief causes men and more often women, to work longer hours in an
attempt to maintain their roles under current socio-economic conditions. The focus on personnel should be on their effectiveness, the quality of their output and the achievement of objectives, rather than on physical presence in the workplace. The need to satisfy customers, meet organisational objectives and have fulfilled employees is of far greater importance and of much higher value to the organisation. Developing and Controlling Your Advertising Budget Many people wrongly think that marketing is only about promotion. This could be like saying that manufacturing is only about production. Advertising poses a dilemma for many small business owners because it is simultaneoulsy a cost, and also a potential builder of revenue through increased sales. A carefully prepared advertis-ing budget will balance these two aspects so that the maximum amount of benefit is obtained from funds spent on advertising. A budget is a blue-print of the planned activities of the business in a given area. The advertising budget, there-fore, will set out what amounts are to be allocated to which media, and when these amounts will be spent. Pricing: Ignore the “Big Fellas” If you’re a small retail business, you simply can’t compete with the pricing of the big fellas. They buy
Volume 3 Issue 27 February 2015
from product brokers who carry them for 90 days, then give a discount for paying “early”. They are subsidised by producers who pay for premium supermarket spots and contribute to brand advertising. And their turnover is huge, so they don’t suffer the costs of keeping goods on shelves. If you’re a provider of professional services, the reverse is probably true. The big fellas are ‘chocked up’ with huge overheads and are usually totally uncompetitive on price. Your problem is more likely to be the little fella who undercuts the “market”. A Satisfied Customer Usually Means Repeat Business.
In most cases, the information that you can obtain through a customer’s complaint is impossible to get through any other means. You are being presented with a real opportunity to prove your commitment to your customer by addressing these concerns, even when the complaint may seem minor or trivial. Complaints that customers bring directly to you are the most efficient and least costly way of obtaining information and under-standing customer expectations. So, appreciate the fact that your customer bothered to tell you first, and take full advantage of the situation. Page 15
Let’s Talk Business
Objectives of “Let’s Talk Business” Small Business Publication One of the primary objectives of “Let’s Talk Business” (LTB) is to provide a regular, monthly information service to support the Small Business Community. Our goal is to provide a publication offering a wide and diverse range of topics and information which may assist business owners and their teams to gain more insight, knowledge and skills in the overall running of their business, thereby assisting them to build a strong, viable and sustainable business.
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Volume 3 Issue 27 February 2015
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