Let’s Talk Business
Let’s Talk Business Back To Basics Business Solutions - Support for Small Business
Volume 2 Issue 20 - July 2014
Inside this issue
COSBOA’s Submission To The Productivity Study Into The Costs Of Doing Retail In Australia “It’s all about Red Tape and Wages”
Cover Story - Doing Retail in Australia ......................2
18 Powerful Ideas to Reward Your Team Dr Tim Baker …..….............3
Biz Snippets …………….......4
Employees or Team Members? Dennis Chiron .......... ...........5
Corporate Psychopaths - Do you have one in your Business? Geoff Butler ………………..6
Health Check Your Business Jo-Anne Chaplin ………......7
Every Customer You Want, Is Already Somebody Else’s Dan Buzer ………………...8
More Facebook For Ideas and Tips Karen Ahl ……..………….9
Innovate - Just Do It! Peter Nicol ………………..10
Inspections, Checklists and Procedure Audits Ron Court …..…….….…...11
4 Simple Ways To Be More Productive Karen Davey-Thorpe …....12
The Sins of the BIG Banks Paul Gillmore ….................13
Editor’s BizTips ………….14
LTB Objectives …..........…15
Photograph courtesy of the Sydney Morning Herald 1
Let’s Talk Business
Cost of doing Retail in Australia is All About Red Tape and Wages COSBOA’s Submission to the Productivity Study Initially “sparked” by the Audit’s Commission wage proposal, COCBOA (and other business leaders) came out “firing”. Business and industry leaders have warned against reducing the minimum wage to 44 per cent of average weekly earnings as recommended by the government’s commission of audit. The minimum wage is currently set at $622 a week or 56 per cent of average weekly earnings, with the commission of audit suggesting the reduction be phased in over ten years. Under the proposal, the concept of a nationally consistent minimum wage would be abolished with the states and territories allowed to set their own minimum wages based on the new benchmark. The move would cut $136 dollars per week off the value of the minimum wage in today’s dollars, reducing it to roughly $12 an hour or about $480 per week. COSBOA focuses on the cost of doing business for small business. We focus not just on dollar costs but also on costs in time and stress for the small business person. A small business is after all a person or maybe a couple but it is inherently different from big business where everyone is an employee and everyone gets paid for what they do. There should be no expectation that a small business is just a smaller version of a big business. There should be no expectation that a small business person is just an employee of a landlord at their beck and call.
There should be no expectation that a retailer can compete with large businesses fairly when costs are high and costs for the large businesses are low due to their capacity to use their dominance not their better management skills or their better efficiency. Our response is short but to the point – the biggest cost to small business in retail is to be found in rent, wages, training of employees and time spent doing compliance and paperwork. Rent There is no doubt that rent in Australia is too high and that is due to the domination of retail by a few large landlords combined with a failure to consider urban planning issues when assessing whether competition is fair and reasonable. As a result we have more and more local retail monopolies around Australia where the only viable place to open a business is in the large shopping mall and that provides the landlords with the opportunity to use their position to unfairly and unnecessarily increase rent. The large landlords are mainly Westfields, Stocklands, Federation Centres (ex Centro) and the Queensland Investment Corporation (QIC) among others. They work closely with large developers to influence local councils to change regulations to suit their needs. If the council does not meet the needs and demands of the developers appeals will be made to state appeal tribunals and the large developers normally win. The partnership between the landlords and Coles and Woolworths, who dominate retail, provides a perfect storm for small business who cannot compete giants large retailers when rents are so high. This must change.
Wages The greatest issue to do with wages is the high penalty rates. COSBOA notes that recently the Fair Work Commission decreased penalty rates in the Hospitality Industry and we hope and expect that the same will occur in the retail sector. Currently penalty rates for Sundays are at least double time and penalty rates for public holidays are triple time. This makes opening a shop on those days a loss making event. Many businesses have had to close on those days. This is compounded by the domination f the landlords. These large landlords will force shop keepers to open on those days so that their shopping mall looks like it is busy. The shopkeeper is forced to either work seven days a week with a cost to health and family well being or to employ someone to work the whop which creates a loss to the business and a decrease in their family income. This also must change. There still exists compliance that is unnecessary and detracts from retailers doing good business. Removing retailers from unnecessary compliance will decrease costs. Two initial examples are: 1. Remove employers from superannuation collection 2. Paid Parental Leave demands that are not manageable 2
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Dr Tim Baker Managing Director WINNERS AT WORK Pty Ltd
www.winnersatwork.com.au www.about.me/tim.baker
18 Powerful Ideas to Reward Your Team
tim@winnersatwork.com.au
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. “"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" . Stephen Hartley, Australia’s leading expert on project management and author of " Project Management: Principles, Processes and Practices.
Here are ten practical and powerful ideas for extrinsically rewarding a high performing team:
On the other hand, some people respond to intrinsic rewards. Here are eight ideas:
1. Asking the team to accept a new 2.
3. 4. 5.
Giving verbal praise at a staff
meeting; Inviting the team to present its work at a staff meeting; Prominently displaying a poster showing team photographs and accomplishments; Sending the team on an outing, such as a boat trip or to a sporting event; Inviting the team to the business owner's home for a barbecue; Placing a photograph and story about the team in the company newsletter
of community newspaper; Encouraging team members to attend and present at professional conferences by paying travel expenses; Asking the GM to attend a attend a team meeting to praise its performance; Sending a letter to the GM detailing the team's work; and Giving each team member a T-shirt, hat, or mug with his or her name (or team's name) on it.
6. 7. 8.
challenge; Writing timely, thoughtful comments in the margins on team reports; Giving the team the opportunity to meet off-site; Giving the team improved resources, such as new equipment; Asking the team's opinion about how to handle problems or new business opportunities; Asking the team to help another team start up or solve a problem; offering to pitch in and help the team directly; and empowering the team to act independently.
Both extrinsic and intrinsic rewards are effective in rewarding and reinforcing exceptional team performance. Their value will depend on the team's preference, the culture of your organization, and the resources at the
disposal of the manager. A combination is often the most effective form of recognition. This is an extract from Tim Baker's latest book - Attracting and Retaining Talent: Becoming an Employer of Choice. This book can be purchased from Amazon or directly from the author. Dr Tim Baker is an international consultant and author of four books. (http:// www.winnersatwork.com.au) He was voted one of the 50 Most Talented Global Training & Development Leaders by the World HRD Congress last year. 3
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HUMOUROUS SIGNS
Then he looked around and said, "Make sure the elephants don't see what the rabbits are up to." ==== that was Management Japanese vs. American Management Style Two teams of American and Japanese corporations have a boat race. On the big day the Japanese win by a mile.
Corporate Governance A crow was sitting on a tree, doing nothing all day. A small rabbit saw the crow and asked him: "Can I also sit like you and do nothing all day long?" The crow answered: "Sure, why not." So, the rabbit sat on the ground below the crow, and rested. All of a sudden, a fox appeared, jumped on the rabbit and ate it. Q: What can we learn from this? A: To be sitting and doing nothing, you must be sitting very high up. Leadership vs. Management
====
that
When Noah heard the weather forecast he ordered the building of the ark. was Leadership
The discouraged Americans hire a consulting firm to investigate the problem. The findings are that the Japanese team had eight people rowing and one person steering while the American team had one rower and eight people steering. Based on these results, the American team is completely reorganized to include four steering managers, four steering area managers and a new performance review system for the person rowing the boat to provide work incentive. The following year the Japanese win again, so the Americans lay off the rower for poor performance and give the manager a bonus for discovering the problem. Ten ways to know that you are Dating a Business Consultant 1. Refers to moments" situations"
those "intimate as "Win-Win
2. Valentine`s Day card has bullet points 3. Can`t be trusted with the car (too accustomed to beating up rentals)
4. Celebrates anniversary by conducting a performance review 5. Ends any argument by saying "let`s talk about this offline" 6. Tries to call room service from the bedroom 7. Congratulates your parents for successful value creation 8. Takes a half-day at the office because, "Sunday is YOUR day" 9. Talks to the waiter about process flow when dinner arrives late 10. Referred to the first month of your relationship as a "diagnostic period"
QUOTES & QUIPS
If you see a bandwagon, it’s too
late. James Goldsmith Run your idea up the flagpole
and see if anyone salutes it. Failure
is not an option—it comes bundled with the software.
Eagles might soar, but weasels
don’t get sucked into jet engines. A meeting is an event at which
the minutes are kept and the hours are lost. Nothing is illegal if a hundred
businessmen decide to do it. Andrew Young If it’s stupid but works, it isn’t
stupid. 4
Let’s Talk Business Dennis Chiron Marketing Means Business 0451 184 599 www.marketingmeansbusiness.com
Employees or Team Members?
dennis@marketingmeansbusiness.net.au Skype: dennis.chiron2
As we start to approach football final time it becomes clear that some teams are demonstrably better than others these are the ones that still have the chance to play in and win the Grand Final. What is it that makes the difference? After all, every team has its share of brilliant players. Is it the team with the most brilliant players that wins? The answer is likely to be "No". The winning "team" is most likely to be the one that most understands the meaning of the word itself. Just what does make a good team? Whilst the team is made up of individuals, each one shares the same vision, the same mission and the same goals.- To be the best - To win the Grand Final - To provide the strongest following and keep the club financially viable so it can continue to win. To achieve these, it needs to establish and follow a plan. In business, it is exactly the same. You and your employees are a team. As in sport, your business will only be as strong as your weakest link. With teamwork and planning, even this weakest link can be made much stronger thus providing greater support for your attacking strategies. As the owner of the business or the Manager, you are the coach. You are aware of the Strengths, Weaknesses, Opportunities and Threats of your business (SWOT).
By working on these with your team members, you can prepare strategies.
right. If the customer is also satisfied, then the Grand Final is yours for the taking!
I say "with" your team members, as they must be part of this planning process.
Defining Roles
If your team members do not play a part in the planning and do not know the reasons for your planning decisions, then you cannot expect them to wholeheartedly support you. Gone are the days (thankfully) when blind obedience of fatuous orders led to the sort of fiasco typified by the Charge of the Light Brigade. These days people are far more educated. These days most employees actually WANT to provide input to your decision making. If you are truthful to yourself, you might even come to the conclusion that many of your employees are actually brighter than you are. This is an opportunity, not a threat!
Most problems that develop in a team occur because team roles are not clearly defined. Supervisors and team leaders are not the only ones with special roles and responsibilities. Employees also must know what is expected of them and what they will be accountable for in their new environment. There are two basic types of roles and responsibilities that employees should be expected to assume and to be evaluated on. The first role is that of technical expert. The employee must be able to do the work well. The second type is the social role that involves the management of the processes of the team. Both roles are important to the team's success and performance improvement.
The most important rule for your business must be to get the work in and make the sale. If this is true, then the most important person in your business must be your client.
In his book, Building Productive Teams, Glenn H. Varney explains the importance of clarifying the roles of team members.
This is something that you and your whole team must be aware of. Everything must be focussed on client satisfaction. As a team, every member must be concentrating on producing goods or services that provide customer satisfaction.
He observes, "During any discussion of roles and responsibilities, team members need to clearly know their specific tasks and the areas for which they will be held accountable. Everyone in the team should also know what everyone else is responsible for. This will build strength and mutual support." ďƒž
Remember - the customer is always
5
Let’s Talk Business
Corporate Psychopaths …. Do You Have One In Your Business?
Geoff Butler FAIM AP, MAITD MACE Principal/Business Improvement & Implementation Specialist Business Optimizers Mobile: 0414 943072 Fax: 3036 6131 Email: geoff@businessoptimizers.com.au Skype: business.optimizers1
Most of us at some time or another have worked in an organization with someone who had an innate ability to ‘kiss up and kick down’, seemingly without the boss being aware of their actions. The important thing for us as owners and managers is to be able to recognize these individuals, and take action before they undo all the effort we have put into building our corporate culture. After all, they can appear to us to be highly motivated operators who get things done, and are therefore much more likely to be rewarded than removed. So what is Psychopath?
a
Corporate
Robert Hare, a University of British Columbia Professor is thought to be the first to use the term when he compared the similarity of some of the personality traits of the heads to some of the world’s largest corporations to those of serial killers and other kinds of violent criminals. It seems that around 1% of the general population isn’t burdened by conscience. Psychopaths have a profound lack of empathy, but possess an astounding ability to fake it. They seduce their victims with charm that masks their true nature as pathological liars, master con artists, and heartless manipulators. They crave constant stimulation, so they seek thrills from real-life ‘games’ they can win – and take pleasure from their power over
WORKS HERE
other people. But wait, you say: Don’t bona fide psychopaths become serial killers or other kinds of violent offenders, rather than the guys in the next cubicle? That was the conventional wisdom. On the broad continuum between the ethical every-day person and the predatory killer, there’s plenty of room for people who are ruthless but not violent. New York psychologist, Paul Babiak says ‘If I wasn’t studying psychopaths in prison; I’d do it at the stock exchange.’
charming and high performing, at least until you become their next target. Indeed, you’ll probably find yourself promoting them ahead of their peers. How can I avoid the fallout? It’s all a question of risk management, and we can’t completely eliminate the possibility of ending up with a corporate psychopath in our team. However, I think there are three major actions we can take to minimize the risk:
‘There are the business high in the than in the
Firstly, use tools such as psychometric testing during recruiting, to minimize the risk of potentially inviting one into the fold, particularly into a position of influence.
Organizational chaos provides both the necessary stimulation for psychopathic thrill seeking and sufficient cover for manipulation and abusive behavior.
Secondly, 360 degree feedback mechanisms may assist to highlight emerging concerns amongst team members and fellow workers; and
Hare continues that certainly more people in world that would score psychopathic dimension general population.’
Corporate psychopaths tend to exhibit the following traits: glibness and superficial charm; a grandiose sense of self-worth, pathological lying; lack of remorse or guilt; coldness covered up by dramatic emotional displays that are actually play-acting; and failure to accept responsibility for their own actions.
Thirdly, corporate psychopaths thrive in organizational chaos, so having in place a strong philosophy of structure, systems and measurement may be your best defence against attracting and retaining them.
Sound like anyone you know?
Remember they crave constant stimulation, so if you demand accountability and performance against key objectives, they may seek out an easier target.
The damage this type of person can do to your organization is enormous, both in terms of staff and clients.
There are plenty of other businesses out there that might not be as organized as yours.
The unfortunate thing is that you will probably find them to be both
6
Let’s Talk Business Jo-Anne Chaplin Tax & Superannuation Professionals Pty Ltd PH 07 3410 8116 / Mobile 0457 960 566 Email : taxandsuperprofessionals@gmail.com Web: www.taxandsuperprofessionals.com.au
I am a qualified Accountant and will celebrate my 20 th anniversary as a Registered Tax Agent this year. During my time in Public Practice I have assisted clients to achieve business growth and prosperity. My earlier career included positions in banking, manufacturing, construction and retail. My particular interest is in promoting a culture of using local industries and business in order to build a strong community.
Health Check Your Business
With the new financial year beginning, it’s the perfect opportunity to:
finalised you will see where the slow months will be, and be able to provide for them early.
1. Review last year’s trading to see where improvements can be made
New ways of doing the same job are always confronting to owners and staff alike. Some of the new technology being offered is not as good as it claims, but there are other ones that will help you save time and money within your business. Put on your creative hat, and think outside the box. What are your competitors doing?
2. Investigate problem areas to identify solutions to avoid the same problems repeating themselves 3. Look at new ways of marketing your business 4. Identify new or more efficient ways of doing the same work 5. Set some targets – sales – financial – KPIs for the coming year 6. Review your plant & equipment – what capital expenditure are you going to have to undertake in the next 12 months A review of your past year’s trading will help you understand if your pricing is right, if your buying price is the best on offer, your inventories are at the right level and if your staffing model is correct. Benchmark your results against those for your industry. Were last year’s profits enough to carry your business into the next year? If there were problems during the past financial year, how were they overcome? Was the action taken successful? What procedures have
been put in place to identify future problem areas before they arise. What would you have done differently (with the benefit of hindsight)? Have you changed your policies and procedures and taken the matter up with your staff? What did you spend on advertising and promotion last year? Was it effective? Is it time to look at new approaches to your marketing? Setting targets is all about staying on track, and managing your business. Small business owners tend to get lost in the day to day working of their business. This is because they ARE the business! To make sure that some attention is placed on where the business is headed, use targets to measure progress, and review them at regular intervals. Financial targets, are a budget to make sure that cashflow will be available for known expenses, and for estimated expenses. Model the new year’s budget on last year’s actual trading, then uplift for the expected increase in turnover. When
Does your industry association have some information that will help? KPIs are Key Performance Indicators. These are only limited by your imagination. The main ones are of course, those which relate to main work procedures. Examples are statutory reporting, HR management, staff training, licensing etc. You could also develop measurements which relate solely to your business – ie a retailer may like to implement a KPI over the sales of widgets per square metres of floor space. My firm offers Chief Financial Officer services to small business, in which we review all the matters raised above, and more. If you would like a business health check, then please contact me. 7
Let’s Talk Business
Dan Buzer Profit Mechanics 0414 567 188 www.profitmechanics.net/ dan@profitmechanics.net
“..Every Customer You Want, is Already Somebody Else’s Customer! ..” Mike is a great car mechanic. One of the best! His business is good at what it does, has been around for many years and has hundreds of long-time repeat customers that trust him with their vehicles. But an important part of Mike’s business is completely broken. Let me explain … Often Mike is asked by his customers, “Hey Mike, who would you recommend for x, y, z”? Mike picks up one of the many business cards on his counter, passes it over without another thought and in that one action commits three of the most common, wasteful and business stagnating sins there are. Let’s break them down … 1. Gave up Control of the Referral: Mike will probably never know if that customer actually used the services of the person he recommended. 2. Missed out on Credit: How will the referred business know that Mike referred them? If they don’t know about the support they’re getting its likely sending people back to Mike is not at the top of their mind. 3. A Bad Referral: Every time we refer another person’s products or services we’re taking a HUGE risk. If his customer doesn’t get what he’s after that could reflect badly on Mike. But the biggest thing Mike is losing out on is something that successful
But Mike could be even savvier than that. He could say “Mrs Jones, you’re in need of an auto-electrician. I’ll email Rob at Rob’s Auto Electrics with your details, your vehicle’s details and the work we have discussed that you need done. That way you don’t have to remember everything yourself. business owners spend their waking hours pondering almost non-stop. “What is a great win-win opportunity for me to help my customers and at the same time get introduced to other prospective ideal customer’s?” What if Mike compiled the business cards of the people he recommends the products and services for into a booklet? It could be called “Mike the Mechanic’s Guide to Local Tried & Tested Vehicle Industry Professionals”. It could have $10,000 of value if all the people in the booklet had a special offer each (40 people with offers valued at $250 each = $10,000). A local map pointing out where everyone was located and more! Now, what if Mike didn’t just stack the booklets up on his counter and let ‘anyone’ grab one? He could bring it out when listening to what the customer wants before the work even starts. Mike explains to his customer that at some stage they might need tires, bull-bars, body work, car detailing, windshields and more. Now Mike has become a ‘portal’, or a central hub of anything to do with the automotive world in his area. A force to be reckoned with!
Would that be helpful for you?” Notice how many boxes this one easy process ticks and everyone wins! Then, at the end of this unique service from Mike the mechanic and Rob the auto-electrician, Mrs Jones gets a ‘Thank You’ letter in the mail personalised by Mike. Within the folds of the letter slips out a free car wash voucher from Mary’s Local Mobile Car Detailing company valued at $60. Now ask yourself … if you were a customer of Mike’s, would you tell your friends about this extraordinary experience? Of course you would! It’s not hard or expensive, but it does take a little bit of guidance and know how. If you would like to experience a complimentary review of your business that takes less than an hour, call Dan at Profit Mechanics on 0414 567 188. An easy to understand business performance questionnaire will be rushed to you so you can see where profit may be leaking from your business and how to fix it. 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
More Facebook for Business Ideas and Tips In a previous issue of Let’s Talk Business, I covered a simple Monday to Sunday Facebook strategy [click here to read it online]. It covered the ‘type’ of posts that suits each day of the week and helps gain the most amount of response from your Facebook efforts. Due to the popularity of this topic, I thought I would go a few steps further. Some ideas to get started Use your own photos If you are at all handy with a camera (and even if you are not)…take your own photos. You can transform these into cool Memes (they are those images with words on them). Your Meme can be funny, meaningful, inspirational or factual...just be interesting. Here is one I created in about 3 minutes for FREE at imgflip.com.
Upload your own image to http:// makeameme.org/ or https:// imgflip.com/memegenerator and make your own Memes – there are heaps of other free programs and Apps for your smart phone...just search. Like other Business pages Once you have your Business Facebook page set-up, YOUR
BUSINESS PAGE can LIKE other Business Pages. Go to the effort of clicking of switching your identity. [Find a Youtube video on how to switch…it is different on smartphone apps vs computers].
associated with or at least supporting, local business and events. Manage via your Smart phone
Using an App like “Page Manager” is highly recommended to, more easily, manage your business page/s vs your Then, while logged in as your business, personal profile. This is a great tool if use the search bar to find other you have more than one page to businesses, famous people, brands and manage. organisations. Find pages that you Scheduling tools would like to follow or align with your business. You can also like pages where your potential customers ‘hang out’… e.g. pages for mums, health nuts or car enthusiasts. Once “your business page” likes them, “your business page” can follow these other pages via your Business Page “home” feed. Share other people’s content Now that you have liked a bunch of other pages, you now have a Feed bursting with updates from them. SHARE their posts where relevant/ appropriate onto your business Facebook page. This is a great way of creating the illusion activity on your business Facebook page without needing to create it each and every time. PLUS, whoever runs the page you just shared something from will get a notification letting them know…it’s a great way to network and subtly get your business name in people’s faces.
See the little clock icon in the bottom left hand corner of this graphic? This little icon allows you to schedule your post to appear on a future date. Going away on holiday? Don’t have time to commit each day? THEN USE THIS TOOL! You can schedule your “Merry Christmas” message RIGHT NOW. It will appear on your business page while you are tucking into your Christmas lunch without you so much as looking at Promote others your Facebook account. This feature By posting, and sharing helpful only works for Business Pages – information about, events, fundraisers, Personal Profiles (or Friends pages) causes and businesses (that are not only allow you to backdate posts. yours) you can improve your business Just send us your Facebook Questions reputation. This can also open some and we might even do an article doors in terms of being invited to answering them all. participate in different events/projects due to your online ‘connections’. It is For further information, please feel free also a great way of being seen to email Karen ~ The Webgirl. 9
Let’s Talk Business
Peter Nicol Wisdom Marketing & Management Services 0417627097 www.wisdommarketing.com.au manager@wisdommarketing.com.au
Innovate …. Just Do It! Some years ago I was struggling with a problem at the newspaper I worked for as the Marketing Manager. It was a complex problem, and one that I needed to resolve. In those times newspapers before the internet, and the digital age were a most unique medium (they still are). They were the retailers medium. However, like any industry enjoying its time in the sun some arrogance had slipped into the style and delivery of advertising by many of the proprietors. Retailers hungry for sales began to use catalogues to convey their message. Consequently, advertising volumes declined. However, the retailers used newspapers to carry them, as the paper was a welcome guest in the home. The longest journey a catalogue had to make was from the post box into the house. Many catalogues ended their journey at the letterbox and into the rubbish. People trusted newspapers and, catalogues inserted into them usually got outstanding results. Nowadays, with circulations dwindling coverage of a market is difficult using paid papers, as they simply do not have the coverage of days gone by. New players came into being who offered to deliver the catalogues and systemised a difficult job and, today catalogue printing and distribution is a booming industry with massive presses around the country producing catalogues by the millions in one print
run. My problem? Well I did for a while prove that my audience of readers was better than a letterbox drop and for a while I won this battle. However innovation on the part of the letterbox delivery people and Australia Post brought in millions of dollars and a new industry was born and, I got the little that was left. In Toowoomba where I live there was a family Company that made cordials and aerated soft drinks. It had done so since about 1913. They were a generational business with father and sons passing the business on. In the late 50’s early 60’s the introduction of better roads and transport; larger aerated soft drink makers from outside the region were able to deliver their goods cost effectively. The Company could see that there was a need to innovate. The family reasoned that if they could supply a cold drink at the point of sale then they would have the “edge”. The family commenced making small refrigerated cabinets that held their drink exclusively. Sales soared. Then their competitors asked if they could make refrigerated cabinets for them. You guessed it, they did, and, the business some 20 years later was the largest supplier of refrigerated display and merchandising cabinets in Australia. Here are two examples of how innovation has changed the way businesses are run. It also shows how
you have to take the long term view of how your thinking must work. Businesses have to make change their mantra. Just like a restaurant changes its menu every so often then, so must all business have a culture of being prepared to change. Innovation can be subtle but nonetheless it must still have a positive long term impact on the business, the customers, and indeed the profitability. Every inventor tries to build a better mouse trap. Do NOT let your business languish for a moment. It is your responsibility to make sure that that you are vigilant and keep your eyes and ears open for that funny little knock or rattle in your economic engine room. See if it is a threat and, make decisions strategically not reactively. Having the enemy at the gate can be a folly so look and assess dangers and scale the responses accordingly. Innovate where needed not just because it feels good. Innovation can be internal change with little impact on the client’s perception. New processes to make things better or faster are the keys to a successful enterprise and profitability. Innovate or perish. 10
Let’s Talk Business
Ron Court, AMC, Dip (Funerals) ,Cert IV OH&S, Cert IV Training & Assessment TAE, MQJA, JP (Qual)
OH&S Advisor 0419 679 619
Inspections, Checklists and Procedure Audits
roncourt@aapt.net.au
Purpose of inspections Inspections are necessary to: identify aspects of the working
environment and work tasks that could contribute to injury/damage and thus allow unacceptable conditions or conduct to be addressed; review workplace standards in accordance with legal and company requirements; and provide a systematic means, for those who are at risk of injury, to help control the working conditions. Inspections are an essential element in hazard reduction because issues must be identified, assessed, fixed or reported. In this way hazards are reduced and thus the workplace is safer. Inspections are only part of the hazard control strategy. They are complemented by:
plant and equipment audits; task analysis and introduction of safety procedures; control and monitoring of materials; employee training; and consultative procedures.
Develop inspection procedure As a minimum, it is recommended that all facilities be inspected at least once a month. Depending on the risks, the dynamics of the work and the results of inspections and other factors, this may need increasing. The inspection should not be by the same person each time but should be done with the worker health and safety representative.
Periodically, say quarterly, the supervisor should conduct a separate assessment of the inspections. The purpose of workplace inspections is to identify those hazards to which employees may be exposed, so that risks can be assessed and controlled where necessary. Persons conducting inspections can develop "tunnel vision" if the person works in the same area he/she is inspecting. This phenomenon occurs due to the familiarisation of hazards in the workplace and results in the failure to clearly identify hazards. The minimum requirement is that a written procedure for inspections is developed which: defines responsibility; stipulates the frequency of inspections (which should be on a regular basis); gives precedence to consultation with worker health and safety representatives; recommends appropriate corrective action within specified timeframes; sets priorities for corrective action; assigns personnel for corrective action; provides feedback to the health and safety committee; provides feedback to work groups; and has a follow-up or review of corrective action. Problems and benefits of checklists The checklist is a widely used instrument and is ideal as a starting point in workplace inspections. There are numerous checklists provided in occupational health and safety literature and predominantly there are two different standard rating systems for
describing hazards: Yes/no or satisfactory/ unsatisfactory; and Scale system Adequate training must be provided to overcome this problem. It may also be good practice for inspecting to be done by someone from outside the work area.. Use specific work area checklists Checklists should be developed for each different type of work area. If an incident (injury, damage or near miss) is reported, a review of the checklist must be undertaken to ensure that all necessary aspects are being checked. Sample Checklist Are aisles clear? Are the aisles clear of electrical leads? Adequate work space? Is the workplace adequately lit? Are electrical leads in good condition? Are electrical leads tagged and maintained? Is the floor surface slip resistant? Are safety signs displayed? Are there emergency procedures to follow in case of an accident or fire? Is there an appropriate first aid kit nearby? Have the extinguishers been recently serviced? Are there adequate directions towards fire exits? You can get information about your OH&S obligations and other valuable OH&S resources both in hard copy and online from their websites. http://www.deir.qld.gov.au
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Karen Davey-Thorpe AAIDC CC Smart n Savvy Business Solutions 1800 899 198 clientservices@smartnsavvybusinesssolutions.com.au
4 Simple Ways To Be More Productive Given some of the creativity displayed in YouTube clips of late, clearly some people have more time on their hands than they know what to do with. This is not the case for business owners. As we all know, no business owner can afford to waste their time on something that produces no benefit for themselves or their clients. These days there are a lot of distractions that keep us from being productive. In fact, there are some major time-vacuums that can take an enormous amount of energy to resist. The incessant ping and buzz of email and text notifications being delivered to your phone, surfing the Internet with a particular aim in mind, then being distracted by the plethora of information at your fingertips… Wasting seconds, minutes and sometimes hours during the day on these can put a serious dent in your productivity. Turning off your phone and the Internet creates a more productive environment and allows you breathing space to think or to get absorbed in the task at hand. Some of the most successful business owners I have spoken with all have the ability to be the master of their time and are unapologetic for the discipline they exercise protecting this precious commodity. So today I’d like to share four easy ways you can create a more productive working environment for yourself - void of time-wasters and distractions - so you can get more done, thereby giving you the freedom
to spend your ‘extra’ time any way you like. 1. Find out what activities you are wasting your time. Before you can solve a problem, you need to understand it. If you’re not sure where you’re losing time, track what you do for a week. There are a myriad of tools you can use to do this. From the good old fashioned pen and notebook, to the planner in your smart phone. You may be surprised just how much time you are spending each day checking social media sites or getting distracted with articles on the web. Just like a diet journal, recording how you spend your time can help you understand what you are spending your time on and what you need to change. 2. Utilise apps to help you block or limit your internet usage. To reduce or prevent you wasting precious time on excessive Internet use, there are a range of software apps you can use to block your online distractions. For example, the app called Freedom bans you from surfing the net for up to eight hours at a time. At the end of your time offline, the app allows you back on the Internet. You simply turn it on, tell it how long you want to focus (which may be anything from 15 minutes to 8 hours). You can even pre-schedule the times you want it to run. Apps to block social media sites
and specific functions on your smart phones are also available for a small monthly fee. 3. Delete software applications that are a distraction. Given there is an app for just about everything, it doesn’t mean you need to have it or use it. Get rid of apps such as games or anything that isn’t providing value to you. Cutting down on these apps will remove the distractions from you. 4. Have a No-phone policy for specific hours within your day. Schedule hours in the day when phones aren’t allowed. This may be a set period of time outside of your primary business hours. Turn your phone off. Place it in another room or leave it in the car. Look for creative ways to completely remove the temptation of making or receiving phone calls. Whether it’s your phone, the Internet or some other distraction, when you eliminate your biggest distractions, you create a more productive environment conducive to getting more done. What tools, techniques or methods have you used that have helped you create a more productive environment? Please email me with your ideas, tips and tricks. I’d love to hear what’s worked for you. 12
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Paul GILLMORE DFS Founder and Director Southern Cross Financial Services 07 5429 5561 0402 685 032 paul@sc-fs.com.au
The Sins of the BIG Banks We have heard much about Commonwealth Bank Financial Planning recently and there has been new legislation (FOFA) that is supposed to protect consumers but it seems that people are still getting a raw deal. Our superannuation is our responsibility but if we can’t trust our big banks what are we meant to do? We have heard about “dodgy financial advice” from CBA Financial Planning (CBA FP) but they are not the only ones. Most large financial institutions have a similar business model based around vertical integration. This is where the product manufacturer creates an investment product such as a managed fund or a superannuation product. They also own the distribution network such as branches and staff to sell their products. This might sound OK at first glance but it raises the questions of conflict of interest and conflicted remuneration. For example a big bank might say to it’s employees (financial planners) that they MUST ONLY sell bank products AND they must sell a minimum in order to keep their jobs ! So what, I hear you say? Well, if your job (your ability to pay your mortgage and feed your family) was on the line, you might “do whatever it takes” to keep your family afloat – again, so what? The Conflict is clear Advisors are supposed to act in the best
interests of their clients but they are required to not only sell the bank’s products alone but to sell a minimum amount. They have a points system and if they meet their target or Key Performance Indicator (KPI) they keep their job. If they exceed, then they are paid a bonus for “selling more”. This “Minimum Sales Target” concept extends all the way down to the teller who smiles and asks, “you have a lot of money in your account, would you like to see our financial planner, would you like to upgrade your home/investment loan or would you like some life or income protection insurance?” Let’s be clear about this – if they don’t funnel a certain number of clients to the mortgage department, financial planner or insurance person, they could lose their job – they are not meeting their KPI’s ! Interestingly, the regulator ASIC, has reviewed banks and large financial institutions such as fund managers (like MLC, Colonial First State, Macquarie, OnePath etc) or any of the Industry Superannuation Funds (such as Sunsuper, Australian Super, Cbus, Host, Plum etc). Their view that selling their own financial products to the exclusion of ALL others is deemed NOT a conflict of interest. My question is ‘How can it NOT be a conflict of interest’ when clients are not made aware of this, their choice is severely limited and employees are
being paid to sell those products to the exclusion of all others? Strategy v Product Flog It raises the serious question of the Corporate Imperative to make more money versus the best interests of the client. If management has decided that they will track and enforce KPI’s then you can hardly blame the financial planners, tellers or under managers for doing what they are told to do at work. It raises the deeply fundamental question of how you achieve your financial goals. Do you work out how someone might achieve by understanding their current financial position, creating a moral, legal and ethical strategy then use the legislation and available products to the clients advantage OR do you just sell them your product because you have to? Corporate v Independent Advice If 80% of financial planners are working for big banks or institutiions then most people are subject to the Corporate Imperative because 80% of planners are employed by them. Alternatively, you could seek an independent advisor who works for YOU and is paid for achieving a good outcome for YOU as opposed to corporate profits – I think the choice is clear. 13
Let’s Talk Business Dennis Chiron Marketing Means Business 0451 184 599 www.marketingmeansbusiness.com
dennis@marketingmeansbusiness.net.au Skype: dennis.chiron2
Are You Thinking Small ? Are you finding yourself in a rut, because you’re stuck thinking small? As the owner of a small business, you wear many hats. And in the day-to-day hustle and bustle of making sure orders get filled, customers get served and bills get paid, it’s all too easy to start thinking small. Most of us never reach the level of accomplishment that we dream of, mainly because of “small” thinking. Thinking big is a habit that we naturally grow and develop over time. It is a habit that allows us to stretch our imaginations and expand our personal potential. However, thinking big will never become a reality for any of us if we continue to indulge in the following limiting habits that ironically force us to think small:
Procrastination holds you back and pulls you away from moving forward in your life. Short-term thinking denies you the ability to see solutions that lie a few steps ahead Solving insignificant problems distracts you from what’s most important and from the BIGGER picture. Over-analyzing things wastes time and energy on small matters that are of little significance.
These habits will constrict your ability to think big, because they force you to think small, to think about insignificant events and circumstances in unproductive ways, thus draining all your creative energies from the inside out. What do you do to keep yourself thinking big?
Word-of-Mouth Marketing One of the satisfactions - and sometimes thrills - of being in business for yourself is unexpectedly meeting or getting a call from someone who wants what you offer. But for this to happen, you need to get the word out that you're in business. While most business owners think the best way to do this is through advertising or using direct mail, experience has shown us that while these avenues may help increase your visibility, they're not the activities that'll produce the quickest or the surest results. So just how can you best let people know you're in business? Here are several methods that have been praised over and over by people we've interviewed about how they got their business rolling: Face-to-Face Time Solicit customers you're familiar with. One of the best ways to generate business is to directly solicit the people or businesses who will be likely buy your services, and you should start with people you already know. If you're in the gift balloon business, for example consider contacting the managers of restaurants where you're been a regular patron. If you're at all nervous about contacting people, you can warm up cold-calls by first sending post cards or e-mail. Network. If you haven't joined any business organizations in your area yet, now's a good time to think about doing so. Then you can begin through these business organizations. Going organization's meetings
networking and trade to these and events
means you connect with people on their schedules. There are also both local and international organizations whose goal is to promote networking. The largest of these is Business Network International. You should also start promoting your business to people you already know and ask them if they know others who might be interested in your products or services. A Simple Strategy Firstly, a marketing strategy that you should take advantage of both offline and online is networking. This is probably the single most important strategy you can look into. As a small business, you will find that one of your first and most important hurdles is simply getting people to know that you exist. If people don’t know about you or your business and that you have amazing widgets or services to sell, they’re not going to ask to buy those widgets or hire you for those services, regardless of how wonderful and amazing they might be. So your first job as a small business entrepreneur will be to get the word out. While not all of these people will turn into customers, getting the word out means at least some of them will share the information with people who might be interested in what you have to offer, and that awareness and publicity can lead to a breakthrough in sales down the road. 14
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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