Let’s Talk Business
Let’s Talk Business Back To Basics Business Solutions - Support for Small Business
Volume 2 Issue 18 - May2014
How Much Has The Federal Budget Impacted on Small Business?
Inside this issue
Cover Story - The Federal Budget …............…..........2
The Eight Values of an Employer of Choice Dr Tim Baker ……...........…3
Biz Snippets …………….......4
Considering Exporting? Dennis Chiron .......... ...........5
The Importance of Maintaining Composure Geoff Butler ………………..6
Investing in Rental Properties Jo-Anne Chaplin ………......7
“…. The Smartest Person in Your Business ....” Dan Buzer ………………….8
Facebook Strategy Karen Ahl ……..…………...9
Objections are the Lifeblood of Sales Peter Nicol ………………..10
Use of Machinery Ron Court …..…….….…...11
Key Risks You Must Consider Before Moving to the Cloud – Part 1 Karen Davey-Thorpe …....12
EOFY Financial Tips 2013 14 Paul Gillmore ….................13
Creative Leadership ……....14
LTB Objectives …..........…15
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Let’s Talk Business
The Federal Budget and Small Business
What’s in the Budget for small business? It seems that there’s not much at all, And the onus is on business owners to take advantage now of incentives set to disappear at the end of the tax year, or so the Sydney Morning Herald seems to suggest. However, this budget isn't as bad as Labor appears to be claiming and the Liberal heartland will privately think. It's undoubtedly the toughest budget since John Howard's post-election budget in 1996, but it's hardly austerity economics, says Ross Gittens, the Sydney Morning Herald’s Economic Editor. But, this budget is Abbott's admission that his claim to be able to balance the budget without increasing taxes was no more than wishful thinking. The Liberal heartland, however, schooled for years to give its selfishness free rein, is having trouble facing this reality. An unprecedented $80 billion cut to health and education spending over the next decade leads a list of tough savings measures affecting age pensioners, seniors concession card holders, family payments and people on the disability support pension in the Abbott government's first budget…. States Mark Kenny, Chief Political Correspondent with Business Day. Larissa Ham of The Age points out that the Federal Budget has some winners and losers. But a budget deficit of $19.4 billion was always going to mean that there would be
little or no good news for small business owners, despite Treasurer Wayne Swan’s emphasis on job creation. In truth, small business will be left wanting from the lack of any significant measures designed to make doing business easier, reduce costs, improve education, skills and training, or support business and consumer confidence. Almost everything had been regurgitated as part of the government’s plans to “support business to innovate,” as most measures had already been announced, including the $500 million investment in Industry Innovation Precincts and the $1 billion “Plan for Australian Jobs” These measures were put forward as “part of our plan to support and create jobs, building on our loss carry-back and instant asset write-off reforms for 3 million small businesses” not yet legislated from last year’s budget. Peter Strong, executive director of peak body The Council of Small Business Australia says while no one likes to pay more, many of the proposed changes are “not unreasonable” given the austere nature of the budget. “I don’t view it negatively at all. What does annoy me is the negative talk from the government – there’s no need to talk things down,” says Strong. Those in the business of freight (for example) such as transport companies – have already copped a blow with the announcement of a rise in the fuel excise rate, which has been locked at 38.1 cents a litre since 2001.
The Federal government is expected to increase the fuel excise in line with inflation twice a year, which will fund $80 billion of new roads. Treasury Joe Hockey says the massive infrastructure exercise will in turn create tens of thousands of new jobs. But the jump at the petrol pump will also hurt many businesses – either directly or as a flow-on effect to customers, says Pitcher Partners’ partner Theo Sakell. During the election campaign, the Coalition announced that the company tax rate will drop from 30 per cent to 28.5 per cent from July 1 next year. However, a 1.5 per cent levy will be applied to taxable income exceeding $5 million. Sakell says the reduction means small enterprises will have more money to reinvest in their own business growth. Small businesses should also be aware of a number of tax deductions that will disappear or reduce at the end of this financial year. The NAB’s View is: Overall, the Budget is moderately positive for SMEs. The creation of a Single Ombudsman should ensure easier Government access for SMEs, reducing red tape. Further, reductions in the company tax rate should lead to higher profitability for some SMEs, as they will largely be spared from the Paid Parental Leave levy, which will impact larger businesses. 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
The Eight Values of an Employer of Choice
Telephone. +61 7 3899 8881
Every organization these days - big or small - wants to become an employer of choice. Many claim they are and in reality few can be considered as such. In today’s skills' short marketplace, many employers are adopting an employer of choice strategy, offering a variety of employee benefits in an attempt to attract and retain quality staff. A lot of these companies are doing this in a superficial way. It is often more about image than substance. The majority of today’s employees are not influenced by employers’ shallow claims of being an employer of choice. It is not as simple as offering prospective employees trinkets.
My research has defined eight values of this new relationship between management and labour. The table below summarises this relationship: The New employment relationship model
In plain terms, employer of choice means a business that is a great place to work. If companies don’t genuinely act to become an employer of choice then good employees will simply vote with their feet and move to a forward thinking employer who offers them what they want. Being an employer of choice is more than marketing gimmickry. The essence of becoming an employer of choice is the quality of the employment relationship, or psychological contract. The traditional employment relationship which has arguably been hugely successful for over 200 years since the Industrial Revolution is a hindrance in climate of complexity, accelerated change and uncertainty. Employers of choice such as Google and SAS have created a culture that is based on a new employment relationship. It is more collaborative and open than the old 'them and us' relationship we have all witnessed and probably been - or are part of. This new employment relationship is based on the changing needs and interests of employees and organisations.
On the left-hand column are the eight values. The middle column represents the appropriate mindsets for progressive employees and the righthand column represents the mindsets of the business owner who is an employers of choice. The new employment relationship is still based on a psychological contract. But the mindsets are diametrically opposite to the old them and us relationship.
Business owners and managers would do well to embed this new thinking in their companies. Most businesses are in flux between the old and new employment relationship. Dr Tim Baker is the author of a new book - Attracting and Retaining Talent: Becoming and Employer of Choice which will shortly be published through Palgrave Macmillan (www.winnersatwork.com.au).
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Let’s Talk Business
THE NEW FIRM
HUMEROUS SIGNS
Seen at a Car Dealership: The best way to get back on your feet: miss a car payment. On a Fence: Salesmen Welcome! Dog Food Is Expensive! On an Electrician's van: Let Us Remove Your Shorts In a Podiatrist's office: Time Wounds All Heels.
A young businessman had just started his own firm. He rented a beautiful office and had it furnished with antiques. Sitting there, he saw a man come into the outer office. Wishing to appear the hot shot, the businessman picked up the phone and started to pretend he had a big deal working. He threw huge figures around and made giant commitments. Finally he hung up and asked the visitor, “Can I help you?”
The CEO walks up the guy and asks, "And how much money do you make a week?" Undaunted, the young fellow looks at him and replies, "I make $600 a week. Why?" The CEO then hands the guy $600 in cash and screams, "Here's a week's pay, now GET OUT and don't come back!" Feeling pretty good about his first firing, the CEO looks around the room and asks, "Does anyone want to tell me what that slacker did here?" With a sheepish grin, one of the other workers mutters, "He's the pizza delivery guy."
----------------------------------------NOT YET READY FOR BUSINESS AT A NEW STORE Two businessmen were sitting down for a break in their soon-to-be new store. As yet, the store wasn't ready, with no inventoried stock and only a few shelves set up. One said to the other, “I bet any minute now some idiot tourist is going to walk by, put his face to the window, and ask what we’re selling.” No sooner were the words out of his mouth when, sure enough, a curious tourist walked to the window, had a peek, and in a thick accent asked “What you sell?” One of the men replied sarcastically, “We're selling ass-holes.” Without skipping a beat, the tourist said, “You doing very well… only two left!”
The man said, “Yeah, I’ve come to activate your phone lines.” NEW SECRETARY The boss was very exasperated with his new secretary. She ignored the telephone when it rang. "You must answer that telephone," he told her irritably. "Okay," she replied, "but it all seems so silly. Nine times out of ten, it's for you!" THE NEW BOSS A company, feeling it was time for a shake-up, hires a new CEO. This new boss is determined to rid the company of all slackers. On a tour of the facilities, the CEO notices a guy leaning on a wall. The room is full of workers and he thinks this is his chance to show everyone he means business!
QUOTES & QUIPS
Murphy's Law: If something can go wrong, it likely will. O'Toole's Rule: Murphy was an optimist. Advertising is the art of convincing people to spend money they don't have for something they don't need. If advertisers spent the same amount of money on improving their products as they do on advertising then they wouldn't have to advertise them. You've got to go out on a limb sometimes because that's where the fruit is. When a politician is in opposition he is an expert on the means to some end; and when he is in office he is an expert on the obstacles to it. (1918) Will Chesterton 4
Let’s Talk Business Dennis Chiron Marketing Means Business 0451 184 599 www.marketingmeansbusiness.com
Considering Exporting? Pricing Your Product for Export
dennis@marketingmeansbusiness.net.au Skype: dennis.chiron2
general operating costs, are all generally higher than our international competitors. Not to mention the fact that our geographic isolation dictates higher transportation / delivery costs.
PRICING - How do you price your product for export? One way to find more customers is to expand your geographic market you are targeting. Have you considered selling overseas? It can be an excellent way to dramatically increase sales. Firstly, you know how to price your product for the local market. Is it priced to what the market will bear? Is it calculated on a ‘cost plus’ basis? Is it the cheapest, or is it the most expensive? Does it provide good value for money? Whatever your pricing strategy, I’ll bet that price is not your only marketing advantage. Other features of your product rank equally with, or more prominently, than price! Yet, local manufacturers seem to have a real hang-up about price when it comes to export markets. Obviously, price is a significant feature. However, for most manufactured goods, price is not as important as service, market support, customer support, or value for money. Consider your own purchasing decisions. How many purchases do you make on price alone? Would you import a product simply because it is cheap? If you did, would you expect it to be high in quality? Probably not … Yet, time and time again, we think that overseas buyers will only purchase
www.efic.gov.au
our products if we supply them at bargain basement prices. That is a very common yet very serious mistake. I know that the low price mentality permeates many sectors of our business community, and even those branches of government who attempt to assist exporters. It probably stems from the days when bulk commodities were just about he only goods we exported and the sole competitive advantage they could have was price. BUT, in today’s sophisticated market where Aussie manufacturers are trying to sell high quality, world class products, we need to draw the emphasis away from price. We need to promote and focus on other features of our products and the advantages and benefits these will have for our customers. Looking rationally at the overall Australian export scene, it is just about impossible for us to compete on price. Our cost structures are generally higher and sometimes much higher - than many of our international competitors. Wages;
infrastructure;
components;
Additionally, that fact that even our largest factories are small by global standards comparison, means we cannot produce sufficient volumes of products to satisfy demand for cheaper goods. So, why do we keep trying to sell on price? Now, please don’t misunderstand my intended message …. I’m not trying to paint a picture of doom and gloom. Australian products are very competitive on world markets in terms of innovation and quality. Admittedly, we do, sometimes, have a few “glitches” in terms of consistency in quality and reliability of supply, and perhaps these are the real reasons why foreign importers try to squeeze our prices. … and maybe these are the areas on which we need to focus our attention. Let’s face it. In terms of manufacturing goods, Australia is a supplier to niche markets. So, low quantity, high quality and high prices are really ‘the order of the day’. It is possible, and it is - absolutely the most sensible strategy for us to pursue. 5
Let’s Talk Business
Geoff Butler FAIM AP, MAITD MACE Principal/Business Improvement & Implementation Specialist Business Optimizers
The Importance of Maintaining Composure
Mobile: 0414 943072 Fax: 3036 6131 Email: geoff@businessoptimizers.com.au Skype: business.optimizers1
With increased marketplace demands and intensifying competitive factors that surround us, leaders must have greater poise, agility and patience to minimize the impact of uncertainty. How leaders respond to these and other growing pressures is an indicator of their leadership skills. Composure is reflected in their attitude, body language and overall presence. In today’s ever changing business environment, it is clear that leadership is not only about elevating the performance, aptitude and development of people – but more so about the ability to make people feel safe and secure. Move up http://i.forbesimg.com t Move down Many times crisis results when composure is missing. During times of uncertainty and adversity, crisis and change – you must avoid showing any signs of leadership immaturity or lack of preparedness that will make your team feel unsafe and insecure. Here are seven ways to maintain leadership composure during the most pressure-packed moments: 1. Don’t Allow Your Emotions to Get in the Way Don’t wear their emotions on your sleeve. Don’t yell or get overly animated when times get tough. When you allow your emotions to get in the way, employees interpret this as a sign you are not
being objective enough and too passionate about the situation at hand. 2. Don’t Take Things Personally Leaders shouldn’t take things personally when things don’t go their way. Business decisions and circumstances don’t always play out logically. As a leader, remain calm and don’t get defensive or think that you always must justify your thinking and actions. When you begin to take things personally, it’s difficult to maintain your composure and make those around you believe that you have things under control. 3. Keep a Positive Mental Attitude Employees are always watching their leader’s actions, behaviour, relationships and overall demeanour. During the most difficult of times, leaders must maintain a positive mental attitude and manage a narrative that keeps their employees inspired and hopeful. Leaders set the tone for the organization they serve. A positive attitude can neutralize chaos and allow a leader to course correct through any negativity. Keep a positive mental attitude and never stop moving forward. Stay focused on building positive momentum for the betterment of the healthier whole. 4. Remain Fearless When leaders project confidence, they instill it in others. During uncertain times, leaders must remain fearless and project a cool persona
that communicates composure to those they lead. 5. Respond Decisively Leaders who maintain their composure will never show any signs of doubt. They speak with conviction, confidence and authority – whether they know the answer or not! With their delivery alone, they give their employees a sense that everything is under control. 6. Take Accountability Leaders are most composed during times of crisis and change when they are fully committed to resolving the issue at hand. When you are accountable, this means that you have made the decision to assume responsibility and take the required steps to problem solve before the situation gets out of hand. 7. Act Like You Have Been There Before Great leaders know that one of the most effective ways to maintain composure during difficult times is to act like you have been there before. Leaders that act as though they have been through the problem solving process numerous times before are those with strong presence who approach the matter at hand with a sense of elegance and grace. They are patient, they are active listeners, and they will genuinely take a compassionate approach to ease the hardships that anyone else is experiencing. As the saying goes, “Keep Calm and Carry On!
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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.
Owning a house or commercial property which is let to tenants can be a tax effective way of creating wealth. The rental income received by you is assessable income, and the associated deductions of owning and maintaining the property are allowable deductions. However, the prime purpose for acquiring income producing property is not about the tax deductions, but rather about the capital gain that will accrue. When selecting a property you need to thoroughly research the area, the condition of the property, the local occupancy rates and whether the property will be suitable as a rental. If you are looking at purchasing a unit in a resort, then give consideration to on-site management and the outgoings that are associated with this type of property. It also important to be sure that the property will be affordable. How much extra will you be required to contribute to the investment? Usually the net rental income will not be sufficient to meet the loan repayments and the cost of rates, insurance and other fees. You may need to apply for a variation in your tax withheld by your employer. This will provide you with the extra cash flow during the year to meet these expenses. A variation should be carefully calculated, as if the variation is too low, there will be extra tax to pay on lodgement of your income tax return.
Investing in Rental Properties
Your Income Tax Return needs to include the rental income, and set out below are an example of the types of expenses you can and can’t claim. What you can claim a deduction for..
Rates & Water costs, Land Tax, other Council fees relating to the property Repairs to the property, including gardens, garden sheds, pools etc Fees paid to Rental property agents Insurance premiums relating the to the property Travel associated with maintaining or inspecting the property Body corporate fees Advertising for tenants Depreciation on the fixtures in the property eg carpets, blinds, stove, HWS Building allowance write off – IF your property was built after 1985, and you Have a quantity surveyors report giving you the required information The interest on loans used to acquire the property, or maintain or improve it. What you can’t claim a deduction for..
The purchase price of the property including the purchasing costs such as solicitors fees and stamp duties Loan repayments which are a combination of principle and interest. Only the interest component is deductible Loan interest on loans which have not been used in respect of the property. Initial repairs to the property
Travel expenses associated with buying the property
If the rental expenses, including depreciation exceed the income, then the resulting loss can be offset against your other income. This is called negative gearing. Negative gearing is not working particularly well in the current environment of low interest rates as the gross rental return and the interest rates on investment loans are very close. In times of higher interest rates, more loan interest is paid, and therefore a higher loss results. As previously stated, the negative gearing aspect of investing in property should not be taken in isolation. As interest rates are now low, this is the perfect opportunity to pay down debt, and increase the equity in the property. The increase in equity means your wealth has increased, and also means that you have more opportunity to acquire further property or investments using that equity. It is always best to seek advice in relation to the purchase of an investment property. Consideration should be given to what entity the property should be held in, what percentage of investment returns can be expected, cash flow matters and the consequences of periods of vacancy. 7
Let’s Talk Business
Dan Buzer Profit Mechanics 0414 567 188 www.profitmechanics.net/ dan@profitmechanics.net
“ … If You’re the Smartest Person in Your Business, Your Business is in Trouble …” After 8 weeks of running a wellreceived webinar series, we wondered what a great subject to finish on would be. We had already covered cashflow, database, systems, recruitment, management, advertising and much more. So what would be a fitting finale? Participants had been loaded up with templates, instructions and support to implement the ideas, so this was a hard call! Then … like a light at the end of the tunnel … we found it! Building your Master Mind Group We realised, that having all these great resources, learnings and a plan to implement everything was a complete waste of time if the Business Owners didn’t do it! So how were they going to continue the momentum of implementing the strategies after the hand-holding period of the webinar series had finished? The answer was to show the webinar attendees how to identify or build a Master Mind Group. The response has been amazing! We have since found out that this is the final piece of the puzzle for many of the Business Owners for a few reasons. 1. They had to prepare their businesses and gather & compile their data so it was presentable to the professional people they were intending to approach and invite to join the group. This was a time of reflection.
2. Many of the ideas they were implementing were new for the Business Owners, but Master Mind Group members, being experienced people in business, would have their own ideas about many of these strategies. It’s likely they have implemented many of them themselves. 3. It was a way to change-up their game to a new level. They were clear that to get better results, they had to associate with people who were better at business! Then of course, we had to give everyone instructions explain how to build their Master Mind Group. So in the final webinar we put together a stepby-step process that would lead to a private mentoring group of peers that is a secret strategy many successful entrepreneurs implement in different forms. There are 5 sections to the webinar … 1. How to build a Master Mind Group 2. The purpose of building a Master Mind Group 3. Who to get involved and why would they be interested 4. What are the rules and etiquette of such a group 5. How to open doors with your Master Mind Group Since running this webinar several attendees have told me that they know that if they do not implement this final
step, their business growth will more than likely not grow far beyond where it is now. They have ‘copped it on the chin’ that if they truly want to play a bigger game, they will need to associate and play with more successful and experienced people in business. In summary, this final module seemed to fit the bill perfectly. As a reader of this publication, you are probably of a similar mind-set to the attendees of this webinar and so you have an opportunity! This webinar series was NOT FREE! Attendees invested money to be involved and there have been some brilliant advances in several of their businesses. You have a short opportunity to access this webinar. For the month of May, 2014 if you email dan@profitmechanics.net and in the subject line type Master Mind Group Webinar’ I will email you a private YouTube link where you can watch the 40 minute module at your own pace. If you take up this opportunity you may also like to have a chat about other possibilities for you and your business. To this end you’re welcome to experience a complimentary 30 minute review of your business that includes a copy of the well known Profit Mechanics Diagnostic Questionnaire. You will get an easy to understand report that will help you see where profit may be leaking from your business and how to fix it. Business is More Fun When There’s Profit!
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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
Facebook Strategy ! Planning your social media posts, tweets and updates can help you increase your business! Like all marketing, you should not just take a point and shoot approach and pray people are paying attention. Facebook is ALL about establishing relationships. This applies to your personal profile and your business page. Using the two to complement each other can prove quite powerful and provide you with insights to your potential customers. Here are some Facebook tips to help you get more out of your time spent on Facebook: A proven number of Facebook
posts = 2 per day. We just do one per day, but Social Media Experts have proven 2 posts per day to work the best if you have the time to invest. Typically, adding a photo helps
boost attention to your Facebook POST. However, because most businesses are posting a photo, sometimes putting up a post without an image can be surprisingly successful by standing out in someone’s feed. If you are going to do an image…
add text. Facebook places more weight on an image and text combo posts than a photo by itself. i.e. More people should see it. Keep posts short and sweet…if
you have more information; provide a link to a Blog post on
your website. Direct people back to your website
when appropriate…you do not own Facebook, you own your website. If you want to build your mailing list, get them to sign up on your website not just interact on Facebook as they can ‘unlike’ your page at any time then you have no means of contacting them easily.
WHAT to post & WHEN ~ Monday to Sunday Monday - provide an inspirational
note or image ~ If you can keep this industry related, even better. Tuesdays - provide a free tip or
hint ~ You are demonstrating how great you are at what you do and how willing you are to help. Keep it short and sweet & include an image or diagram.
Ensure
that you ‘share’ any Facebook posts you put up on your Business Page via your Personal Profile. This helps a) reach those people who are just your Facebook friends and don’t already like your Business Page + b) increase the overall audience reach of your post.
Wednesday
encourage interaction with your social media ~ ask your followers a question, post a video, ask for feedback, encourage people to ask you a question…trial different strategies until you find one that gets the most amount of interaction.
Use the scheduling tool. It is the
little Clock icon found at the bottom of every post update area on a Business Page. This allows you to pre-plan your posts days, weeks and months in advance. Great for your regular weekly tip post upcoming event reminders. NOTE: Scheduled posts do not usually have the same amount of reach as a post created in “real-time” but they are good to maintaining a presence on Facebook when you are too busy to be on each and every day. Hootsuite is another great third-
party program that allows you to schedule posts as well as twitter tweets, LinkedIn updates & Google+ all at once. You lose the ability to ‘tag’ easily but a great program regardless. You can also leave Hootsuite open to track all of your social media via one dashboard. www.hootsuite.com
Thursday - promote: an event,
your services, sale, new website or competition ~ this can also be events that your business supports. Friday - be funny ~ it’s become a
cliché but Friday is for fun. If you can share an industry related funny image or joke, even better. Remember to keep it clean & avoid anything offensive. And don’t forget the weekend –
Saturday - share relevant event/s you’re attending (or a review) and
Sunday – be more social update ~ examples include “Photo of the Week” or staff selfie.
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Let’s Talk Business
Peter Nicol Wisdom Marketing & Management Services 0417627097 www.wisdommarketing.com.au manager@wisdommarketing.com.au
Objections are the Lifeblood of Sales so you can turn objections into questions, and then answer them fully and completely and with the confidence that comes with practice.
When people object they are really asking a question. There is an old saying that goes “turn every objection into a question – show more value and close again”.
You must inform in order to persuade. Tell people all they want to know and, more they should know. Because you must ensure they get what they want.
Sounds simple and good sales folk find it a snap. Why? Well for a start they do their homework. They work out all the benefits of their products and the potential objections that they might have to encounter in the sales process. All good selling is serving; you are there to help guide the customer to a point where they feel this has answered their needs and wants.
up. The other half were then asked to blow up their balloon and then slowly let the air out of it – then stick a pin it. Not much happened.
Things like it’s too expensive, I live too far away, does it come in other colours, I can get one like it but cheaper, too heavy, too light, too everything. Yes they sound like whingers but they are really only asking a question and thank them for it.
That is what prospects are like they come into your store or get on your phone and start to talk.
I usually say what a great question to every objection. And re-phrase the objection as a question.
Real Estate agents need to know a lot about a property as so many factors can play a role in a purchase.
Yes colour is important “but” – “It is a little more costly than the others but the warranty is where the real value come into play”.
Is it child friendly- this means they might have to find out how many young families there are in the area?
Patience and listening to people in the sales role is the key to success. Some years ago I saw a sales training film where half the class were given a balloon to blow up. They were then asked to stick a pin in their balloon. You guessed it they blew
Let em! I love it as it gives you time to structure your responses and detail what major benefits are going to be there when you get your time to reply.
Schools bus services, hospitals for the elderly. These are just some of the key elements that good sales people get together when they are researching a sale or a product for sale. The skill can come with two names, Pre-call Planning or Product Knowledge. Learn about the attributes
This comes from asking as well as listening. Sometimes clients are hell bent on getting a particular item. It is up to you as a professional and ethical person to listen then provide the product that they want or one that might do a better job and might save them time and money. That makes for repeat business as people come back as they trust you for your professionalism. So next time you see a client, think of the balloon analogy, and let them talk for a while and explain their needs and wants. Some just have an “itch” and are not sure they want something but can be persuaded into making a purchase. They might have seen it on TV and just have come in to touch and feel. These are golden moments for the sales professional. Is that you? 10
Let’s Talk Business
Ron Court, AMC Dip (Funerals) MQJA JP
OH&S Advisor 0419 679 619 roncourt@aapt.net.au
Unguarded machinery is hazardous The number of machines being introduced to workplaces is increasing exponentially. Initially machines were unguarded probably because the hazards* were not fully appreciated and community expectations were not as high as they are today. You will no doubt have seen photographs of factories in the late 1800s and the early 1900s with line shafts running from one end to the other with numerous pulleys and unguarded flat belts driving a variety of different machines.
Use of Machinery
workplaces should treat all of these concerns as genuine and in consultation with exposed workers attempt to find acceptable solutions. However, as a good "rule of thumb" if a machine can't be adequately guarded for the job in hand the machine being used is probably not the right machine.
adequately
In comparison with States like New South Wales and Victoria, Western Australia's manufacturing industry is on a small scale, making it difficult to justify jigging and tooling to automate manufacturing processes with the associated improvement in safety for machine operators . This "economy of scale" problem also results in many old machines remaining in service long after their genuine "use by date" has expired. They are kept for those one or two jobs a year that can then be done in house rather than sent out to a competitor with a more appropriate / modern machine.
In many cases workers remove guards because they perceive some difficulty in performing their job efficiently with the guard in place.
As a result, it is particularly necessary for those who work with and around machines to be aware of the related hazards and the means of controlling them.
The accidents that occurred with such systems led to the realisation that action had to be taken to protect workers. However, despite the fact that guarding has been available for many decades, workers still continue to be injured. Machines guarded
must
be
Sometimes the guard is thought to slow work down, sometimes the guard gets in the way of the work piece or the job just can't be done with the guard in place. Sometimes workers complain that the guard restricts their view or doesn't allow the degree of accuracy required when lining-up the job for say a bending or pressing operation. Employers and persons in charge of
Hierarchy has the safest measures at the top In occupational safety and health there is a hierarchy of controls that should be applied to any hazard. The hierarchy is in a descending order from the control measure which gives the greatest level of safety, but they may be used in combination. Generally the order is:
Elimination Substitution Isolation Engineering Control Administrative Control Personal Protective Equipment
Maintenance considerations should include ready access to areas identified during design as requiring regular maintenance such as for cleaning, lubrication and adjustment. Routine adjustments and lubrication should be designed to be carried out with the machine stopped, but without the need for removal of safeguards or dismantling of machine components. Where frequent access is required, interlocked guards should be used. Self-lubrication or central lubrication of parts should be considered if access is difficult. Positive lock-off devices should be provided to prevent unintentional restarting of machinery, particularly after a machine has shut down unintentionally. 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 Always seek independent legal advice on what is applicable to your situation. 11
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Karen Davey-Thorpe AAIDC CC Smart n Savvy Business Solutions 1800 899 198 clientservices@smartnsavvybusinesssolutions.com.au
Key Risks You Must Consider Before Moving to the Cloud – Part 1 As I mentioned last month, the marketing of cloud has been very effective in promoting the positive aspects of what cloud computing can deliver for business (quicker, cheaper, better), however it’s very rare for the potential risks and business impacts to be discussed in equal measure. The European Network and Information Security Agency (ENISA) has identified eight cloud specific high risk areas. We will begin to look at these in this article. It is important that you consider how these risk apply to your business and what mitigation actions may be required to ensure your transition to cloud is successful. ASSETS AT RISK There are two types of assets that are deployed to the cloud. These are:
Data (e.g. financial information, customer lists, product details, supplier details). Applications/functions/processes (e.g. procure to pay, inventory management, customer relationship management, etc.).
When you consider how important these assets are to your business, and the value they hold, then you begin to appreciate why you really need to plan your move to cloud solutions carefully. KEY RISKS Risk 1: Network Dependency Cloud computing is dependent on the internet. A fundamental drawback of
cloud computing is that you need an internet connection to access the cloud. Your internet connection should also be reliable and fast. This direct dependency on the internet means cloud computing is susceptible to outages and service interruptions at any time. If your online presence is critical for your business to operate smoothly, then you will need to identify an internet service provider that can guarantee service availability commensurable with your needs. Risk 2: Data Sovereignty and Security This is a significant and complex topic. Generally speaking, if your business engages non-Australian service providers, including cloud service providers, then it is your responsibility to take reasonable steps to confirm they comply with Australia’s laws. Your security evaluations of their operations must include who can access the data, where it will be located, (country of jurisdiction for evaluation of legal obligations), technical infrastructure (e.g. physical hardware) and what steps the cloud provider has taken to protect the integrity and security of the data. While some cloud providers in Australia will commit to hosting services within national boundaries to alleviate data sovereignty concerns, you will still need to satisfy yourself that your cloud service provider meets all of your other data security
needs. I encourage you professional and legal better understand how applies specifically business.
to seek advice to this topic to your
Risk 3: Compliance Did you know that the investment you made in achieving certification (e.g. industry standard or regulatory requirements) may be put at risk by migration to the cloud if your cloud service provider cannot provide evidence of their own compliance with relevant requirements? Or if they do not permit audits to be undertaken at your request? If certification is important to your business, please ensure you include a compliance assessment in your evaluation of cloud service providers. As with the implementation of any key business change, it is important to plan properly and consider how all areas of your business that may be affected. The decision to proceed with a cloud computing solution should only be undertaken once a risk assessment has been completed and you are satisfied the risks and mitigation actions are acceptable. We’ll review the remaining key risks in the next issue. If you’d like to learn more about whether cloud should be part of your business, please contact me. 12
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
EOFY Financial Tips 2013-14 As we head towards the EOFY, we can think about how to improve our financial position and prepare for our tax returns.
property, a business or receive an inheritance you can utilise the ‘Bring Forward’ provisions and contribute up to 3 years of contributions or $450000. BUT you cannot contribute more than a $450000 in after tax contributions in the 3 year period.
1. Documentation – we can assist our accountants and save money by preparing documentation. If you have a book keeper, they will do this but it revolves around receipts, bank 5. Capital Gains Tax – you can reduce statements, log books and proof of your CGT liabilities by a) “realising” expenditure i.e. to receive a tax a capital loss to offset against any deduction “generally” you must capital gain; b) Offset capital gains prove that the money was actually against capital losses carried forward spent on a tax deductible item from previous years; c) make pre tax contributions to super to offset a 2. Pre pay interest – if you have an capital gain; d) you can sell your investment loan or business loan, business and roll the proceeds into you can pay some or all of next super providing you with a CGT year’s interest before 30 June this exemption of up to $1.255m for the year. Your accountant can include 2012-13 year. This is a great way of this in this year’s expenditure and getting much or all of the proceeds of can effectively reduce your tax the sale of your business into the tax liability for this year preferred environment of 3. Contribute to your superannuation. It is important to Superannuation – if you are under work with your accountant or 60 you can contribute up to $25,000 financial advisor when seeking to your super and receive a tax offsets. deduction. If you are over 60 you 6. Bring forward or Defer payments – can contribute up to $35000. You just as we can bring forward annual must be CAREFUL NOT to overinterest costs we can bring forward contribute as there are heavy other costs into this financial year. penalties. By doing this you can Additionally we can bring forward or keep most of the money yourself, defer income. We can simply ask our albeit in super AND possibly move debtors to pay this financial year OR to a lower tax bracket ask them to pay next financial year. 4. After tax contributions to your Consider your income, expenses, tax super – you can contribute up to liability and consult your accountant $150,000 to your super this financial before applying this strategy year. If you sell an investment 7. One Month to go – we have about 1
month to get these strategies in place. They must be in place PRIOR to June 30 meaning that monies must have been disbursed or contributed and have been cleared into their destination accounts. If not, they simply do not make it into this financial year. 8. Superannuation Clearing House for Small Business –the ATO has taken over the responsibility of distributing super to all super funds. This saves an enormous amount of work for small businesses by simply remitting super to the tax office with a schedule of contributions rather than completing individual forms, drawing separate cheques and acquiescing to the administrative retentiveness of, particularly, industry super funds – a great benefit to small businesses. 9. New Millennium – super contributions and rollovers have finally made it into the new millennium by being electronic as opposed to a physical cheque with associated postage and manual reconciliation. DISCLAIMER – the information here is general and should not be taken as financial advice. Please refer to your account or financial planner directly for individual personal advice.
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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
Creative Leadership One of the essential ingredients of high performing individuals, teams and organisations is creativity (Basadur,2004). But before we discuss why creative leadership is so crucial in today’s society, we need to understand the difference between two closely related things: Creativity and Innovation. Mark Batey, Manchester Business School says: “Creativity is the capacity to come up with ideas for solving problems and exploiting opportunities. Innovation is the ability to turn those creative ideas into new products and services. To put it another way: creativity is inspiration; innovation is perspiration.” In that case, a creative leader is someone within an organisation who is capable of producing the conditions that enable those in their team to generate creative ideas. These ideas will help the organisation to move forward. Creative people push the boundaries; they seek new ways of seeing, interpreting, understanding and questioning. They can accept the ambiguity of contradiction and uncertainty. They can tolerate disorder and unpredictability. In fact, they thrive in circumstances which others might see as chaotic and disorderly (Montuori & Purser, 1999). Creativity and Creative Leadership is probably one of the most important (but sadly lacking) leadership qualities needed in this
decade, if not this century.
creativity, you wouldn’t need a team would you?
Creative leaders are not just born that way, and they just don’t have very strong personalities if they are to lead successful organizations. They must profoundly understand and know human behaviour, and, most importantly, understand who they are and what motivates them to success and what can cause their failures.
You are only one person. Your team (which might be your entire company) is many people. Tapping into the cumulative creativity of 10 or 100 or 1000 people will clearly result in better results than tapping into the creativity of one person, no matter how creative you are, and ignoring everyone else.
Creative leadership is built on the idea that everyone at every level in the organization is a leader; that leaders must know themselves, alert to their failings and graces, to better serve the organization; and that only by mastering complexity – both human and organizational – will leaders be able to achieve alignment. (Doug Guthrie, 2012) Whether you are the CEO of a large organisation; the leader of a team or division within such an organisation; or the founder of a small company, creative leadership is critical to your innovation success. Innovation is the result of successfully implementing creative ideas. Moreover, the process from idea to implementation, of a breakthrough innovation, requires a great deal of creativity. And to achieve this, you need creative leadership. Jeffrey Paul Baumgartner believes: “It is not about your creativity. It is about your team’s creativity” Creative leadership has very little to do with your creativity and everything to do with your team’s creativity. If it was only about your
What Makes a Creative Leader? Creative leaders love challenges that test their limits. They also do not fear the fact that they don’t know something, and they see setbacks as just that - opportunities for personal growth. Drawing from his experience, Dr Kalam articulated eight key tenets of creative leadership that are critical for driving innovation and growth in the emerging global knowledge economy: 1. The leader must have a vision for the organization 2. The leader must have the passion to transform that vision into action 3. The leader must be able to travel into an unexplored path 4. The leader must know how to manage both success and failure 5. The leader must have the courage to make decisions 6. The leader should have nobility in management 7. Every action of the leader should be transparent 8. The leader must work with integrity and succeed with integrity
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Let’s Talk Business
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