Let’s Talk Business
Let’s Talk Business Back To Basics Business Solutions - Support for Small Business
Volume 3 Issue 28 - March 2015
Women Lead The Way In Australian Small Business Growth Inside this issue
Women Lead the Way in Australian Small Business Growth ……….......................2
The Five Conversations Framework in a Nutshell Dr Tim Baker …..….............3
Biz Snippets …………….......4
Niche Markets - Are You In? Dennis Chiron………...........5
If You’re a Procrastinator; Read This Later Angie “Speedy” Spiterie ….6
How Balanced is Your Business? Geoff Butler ………………..7
Seven things I’ve learned About Business And Life While Sitting In Hospital In the last 90 Days While My Dad Has Lung Cancer Surgery & My Mum Had Brain Cancer Surgery Dan Buzer ……..…………..8
All Roads Lead to ROME Karen Ahl ……..…………..9
Benchmarking and the ATO Jo-Anne Chaplin …………10
Interest Rates, the $A, Debt and Real Estate Booms Paul Gillmore……..............11
Not Following Up Peter Nicol ………………..12
HR & WHS Compliance Denis Keating …………… 13
Editor’s BizTips ……….….14
LTB Objectives …..........…..15
Federal Small Business Minister Bruce Bilson, says that 'Mumpreneurs' are helping drive small business growth in Australia
Volume 3 Issue 28 - March 2015
Page 1
Let’s Talk Business
Women Lead The Way In Australian Small Business Growth schemes to create entrepreneurship incentives.
**James
Massola … Political correspondent, Sydney Morning Herald
The number of women running businesses in Australia is growing, with "mumpreneurs" harnessing new technologies and social media to launch products and services, Small Business Minister Bruce Billson says. And Mr Billson says small business can expect three things - a tax cut of at least 1.5 per cent, greater support for entrepreneurs and more cuts to red tape and regulation - as part of a small business and jobs package that will be released in the lead-up to the May budget. He told Fairfax Media the government was working on a pre-budget time frame for the release of the small business and jobs package, which would be of direct benefit to the 97 per cent of businesses in Australia that were small business. "Mumpreneurs are able to make use of the disruptive technology to build businesses and livelihoods for themselves and others - often combining new technology, social media skills, new products and services too," he said. "They are leading the way in navigating new technology, new business opportunities, and the perennial challenge of balancing economic and family goals." He cited a Bank West business trends report that showed the number of women running a business had grown 4.8 per cent in the last decade, while the number of men had fallen 8.7 per cent in the same time. On the small business package, Mr Billson said the government's Volume 3 Issue 28 - March 2015
Small Business Women "thinking at the moment is three broad themes. Incentives and reward for enterprise including the small business tax commitment, support for entrepreneurship that's consistent with work on employee share schemes …and it's also about continuing to remove obstacles and red tape barriers when they impede small business and enterprise." He also urged small businesses concerned about the impact of penalty rates on their operating costs to make a submission to the Productivity Commission's review of the Fair Work laws. The long-promised small business tax is due to come in July 1 this year which, when linked to the paid parental leave scheme, had an estimated cost of about $5 billion over four years. It helps form the centre piece of Prime Minister Tony Abbott's push to reconnect with and win over both the Liberal support base and voters more broadly. A families package also promised by Mr Abbott will be designed to put "more money in parents' pockets".
Grants
for
The Australian Government has created a wide variety of assistance programs that have been specifically created for those who are looking to start a new business. These programs allow the Government to give support to those who need various forms of assistance when starting up their new business, with some of the programs being very specific to who is able to receive said support Given that many women are now looking into how they can start up their very own business, the Government has created a number of incentives that were exclusively made to assist women in their new business venture. The Government has made available a variety of business incentives in order to give women the support they may need when starting a business. These incentives are offered through state, federal, and territory governments, and include a Women in Business mentoring program, low-interest business loans, and business grants.
Mr Billson said the package was "crucial to energise enterprise in the Australian economy, which is critical to job creation, economic competitiveness and quality of life into the future".
Whether you need advice or money, if you are a woman who is thinking about starting up your very own business, now is the time to research your options when it comes to receiving Government support.
He also said the government would look to advance changes to employee share
Page 2
Let’s Talk Business
Dr Tim Baker Managing Director WINNERS AT WORK Pty Ltd
The Five Conversations
www.winnersatwork.com.au www.about.me/tim.baker
Framework in a Nutshell
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" . Testimonial from Stephen Hartley, Australia’s leading expert on project management and author of "Project Management: Principles, Processes and Practices. Dr Tim Baker is an international consultant and author of four books. (http://www.winersatwork.com.au) He was voted one of the 50 Most Talented Global Training & Development Leaders by the World HRD Congress.
The problem with the traditional approach The traditional performance appraisal is often a waste of time and can cause more harm than good. Don’t get me wrong; I am not against performance feedback. In fact I believe it is one of the most important things a managers can do in his or her leadership role. I just don’t think the way it is done is working particularly well. The traditional performance appraisal is based on the military model; that is, the boss gives the subordinate a oneway monologue on what they are doing wrong and occasionally what the subordinate is doing right. The recipient is usually a passive and unenthusiastic receiver. It is a pointless and mostly painful exercise in its current form. There are several things wrong with this militaristic approach:
“It is time to change our approach and throw out the old performance appraisal”, says Dr Tim Baker
When I mention the term ‘performance appraisal’ what thoughts come to mind? I’m not sure exactly what you thought, but I am pretty sure that the thoughts you had were not necessarily positive.
Whether you are a manager or employee, most people dread the thought of formally appraising or being appraised on their performance.
Volume 3 Issue 28 - March 2015
It is usually one way It is based on the power relationship between manager and employee It is done once or twice a year It is a formal process that stifles discussion It is rarely – if ever – followed up The focus of the ‘discussion’ is rarely about what constructive ways an employee’s strengths can be utilised and weaknesses overcome It takes time and is therefore an
enormously costly exercise Nobody really enjoys the process
So how can it be done better and lead to genuine and sustainable performance improvements? In essence, the purpose of the Five Conversations Framework is to offer HR professionals and organizational leaders a simple and proven replacement for an artefact of the 20thcentury workplace: the performance appraisal. Apart from being a more efficient and effective way to manage performance, this new approach is a valuable process for changing the psychological contract between managers and workers to better reflect the changing needs of both entities in the employment relationship. Each conversation lasts for approximately 10 minutes and happens once a month for five months. The conversations in summary are:
Climate review conversation Strengths and talents conversation Opportunities for growth conversation Learning and development conversation Innovation and continuous improvement conversation
By following the Five Conversations Framework, we are shifting from performance appraisals to performance conversations. Page 3
Let’s Talk Business
HUMOUROUS BUSINESS CARDS & SIGNS
Family Buy Out A very successful businessman had a meeting with his new son-in-law. “I love my daughter, and now I welcome you into the family,” said the man, “and to show you how much we care for you, I’m making you a 50 -50 partner in my business. All you have to do is go to the factory every day and learn the operations.” The son-in-law interrupted, “I hate factories. I can’t stand the noise”. “I see,” replied the father-in-law. “Well, then you’ll work in the office and take charge of some of the operations”.
“Go away!” said the old lady. “I haven’t got any money!” As she closed the door, the young man quickly wedged his foot in the door and pushed it open. “Don’t be too hasty!” he said. “Not until you have at least seen my demonstration.” And with that, he emptied a bucket of horse manure onto her hallway carpet. “If this vacuum cleaner does not remove all traces of this horse manure from your carpet, ma’am, I will personally eat the remainder.” The old lady stepped back and said, “Well I hope you’ve got a damned good appetite, because they cut off my electricity this morning.”
“I hate office work,” said the son-onlaw. “I can’t stand being stuck behind a desk all day”. “Wait a minute,” said the father-inlaw. “I just made you half-owner of a moneymaking organization, but you don’t like factories and won’t work in a office. What am I going to do with you?” “Easy,” said the young man. “Buy me out” The Salesman A little old lady answered her doorbell and saw a well-dressed young man carrying a vacuum cleaner. “Good morning,” said the young man. “If I could take a couple of minutes of your time, I would like to demonstrate the very latest in highpowered vacuum cleaners.” Volume 3 Issue 28 - March 2015
Reverse Psychology A grocer put up a sign that read “Eggplants, 25¢ each — three for a dollar.” All day long, customers came in exclaiming: “Don’t be ridiculous! I should get four for a dollar!” Meekly the grocer capitulated and packaged four eggplants. The tailor next door had been watching these antics and finally asked the grocer, “Aren’t you going to fix the mistake on your sign?” “What mistake?” the grocer asked. “Before I put up that sign no one ever bought more than one eggplant.” Page 4
Let’s Talk Business Dennis Chiron Marketing Means Business 0451 184 599 www.marketingmeansbusiness.com
dennis@marketingmeansbusiness.net.au Skype: dennis.chiron2
Niche Markets - Are You In? You end up having a leg up on the competition because items in a niche market are difficult to find in general products.
One of the biggest mistakes business owners make is trying to market their product or service to a large general market instead of focusing on a small niche market.
American novelist, Max Ehrmann once said: “You can't be all things to all people”. Whilst this rule applies as much to life generally, it also applies, very much, to your business life, and especially to your sales and marketing efforts. Often, finding a niche market is far better than trying to market to the masses, especially if you've got a product that speaks specifically to one market, for example; water skiers; dog owners; lawn bowlers, etc. Many successful businesses, both big and small, direct their marketing to select niche target markets. Even some of the country's largest manufacturers target carefully pinpointed market segments to maximize the effectiveness of their programs and often tackle different niches for each product group. Niche marketing can be extremely cost-effective and worthwhile. Take, for example, a product or service that's just right for a select demographic in your area, such as lawn bowlers on Bribie Island, Queensland. You already know that 63% of the Bribie Island population are either retired or semi-retired, and at least 30% of these older people bowl – either competitively or socially. Volume 3 Issue 28 - March 2015
You are considering opening a retail outlet that specialises in all things for Lawn Bowlers. You could advertise on the local community radio station 101.5FM, which have considerably lower rates than stations that program for broader audiences; and you also can advertise in the some of the local newspapers which generally have cheaper rates.
So your marketing budget would go a lot further, allowing you to advertise with greater frequency or to use a more comprehensive media mix. Some obvious advantages of Niche Marketing are:
Less Competition Unlike general marketing where market rivalry is highly competitive, niche marketing has a lot less competition for the viable customers purchasing the products.
Brand loyalty Niche marketing makes it possible for businesses to build their brand loyalty. This marketing approach lets you provide customers with products and services they need and desire.
Best for giving marketing insight Niche marketing is all about selling to a segmented market. It is about taking your products to people who have an interest in receiving them. This can help you redefine your business, leading it in a new product directions and services. You will end up creating new opportunities for your business by selling similar or support products. Once you begin to concentrate fully on niche marketing, you will learn about new products, innovations and ideas about the market.
Saving on your marketing dollars This is a type of marketing where you will never throw away money hoping for returns. Niche marketing makes it easy for you to save on your marketing dollars. Generally, you do not have to send over ten thousand flyers to one or several neighborhood. Instead, send less than a thousand flyers to a target audience that meets the requirements for your niche. With this approach, you will be able to reach a larger percentage of people who are more likely to use your services or purchase your products. Page 5
Let’s Talk Business
TimeEqualsMoney Angie 'Speedy' Spiteri
Business Efficiency Specialist www.timeequalsmoney.net.au Ph: 0403 970 732 http://www.facebook.com/time.equals.money
If You’re A Procrastinator - Read This Later If you tend to put things off, you are definitely not alone. Getting over procrastination is not easy. The key to ending procrastination isn’t to “just do it”. Will power will only get you so far IF you don't understand how to use it gain maximum results and productivity. Firstly, unfortunately, there is no cure to procrastination. Procrastination is a deliberate part of our make-up… it’s instinctual. It’s a deliberate function of the brain that keeps you safe, helps you avoid anything that could hurt you real or imagined AND it makes sure our outside world matches our internal map of reality. You are never going to be rid of it and you don't want to be. Procrastination, is good... However, it can be bad when you procrastinate: 1. on everything regardless of whether it's dangerous to your life/livelihood or not 2. and when you don't continue or start taking actions that will benefit you. So what's the trick to beating procrastination, when you shouldn't be procrastinating? The trick is to create a habit of taking action… so you procrastinate less and you take the actions that support your dreams and goals automatically AND if you couple this with an understanding of the "creating new habits" cycle… you Volume 3 Issue 28 - March 2015
will be able to ride out the uneasiness very challenging because it’s easy to and resistance UNTIL you the new habit give up. … Here are 3 tips to help you turn key actions you want to take is on automatic pilot. into habits and beat procrastination…. New Habit Creation Cycle Let me take this step by step and explain what the "New habit Creation" cycle is. 1. Whatever the new habit you want When you first want to create a new to install is… do it as early in the day habit, you are excited, motivated, and as you can. This is when we are at keen to start… and for the first couple of our best. You still have your full days you stick to doing what you need quota of will power so you have to do to achieve your new goals. You more energy to fight your natural are powered by your vision of what's tendencies. possible and how much better life is 2. Set yourself up so you take this going to be… this lasts between 1 to 4 action first… what do you need to have set up to be able to take this days. action. Eg do you need to get to bed For the next 10 days, it starts to become earlier… much more challenging… You start to 3. Start now . Don’t deviate. Break become resistant. Frustrated. Defiant! the habit into something small you Everything in you wants to go back to can do every day (30 minutes or less) the way you were before… This is your and take action consistently. old habits trying to pull you back to the In my opinion the best method is to way you were. To your comfort zone. get a buddy. I've been walking 21 If you stick with it here, the next phase, years with a friend of mine. If she the next 10 days or so, is where you start doesn't show… I don't go either. to feel less resistance… the resistance is Having a buddy, someone to keep me still there but it's not as strong as it was accountability well for me. earlier. Work out what works for you, and Then, finally, if you stick with your Start now, don't deviate. habits for the next 10 days again, you’ll have been doing the habit for long **Angie Spiteri is a highly sought enough that it starts to become easier to after speaker, author and consultant stick with it and it becomes a lot easier that specialises in Productivity and from there. It starts to be a new habit Results. that's installed and done automatically! To connect with Angie visit or So unless you’re mentally prepared for www.timeequalsmoney.net.au the "new habit creation cycle" when email her directly at you’re creating a new habit, it’s can be angie@timeequalsmoney.net.au
Page 6
Let’s Talk 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
How Balanced is Your Business? When it comes to business, it’s all about balance. There’s no point in having a business where one part is a world beater and another is third world. It’s my philosophy that every business has the same components and it doesn’t matter if you’re the pie cart down the corner or BHP, the principles are the same. You see all businesses consist of the same functions, and when it comes down to it, it’s how well they work individually and together that will determine your business success and satisfaction. Firstly, there is Marketing: This is anything you do in your business to elicit an enquiry. No matter how sophisticated or technical we get, at some point a potential customer needs to approach your business and ask you to tell them more about your product or service. The art of enticing a prospective client to do this is detailed and evolving, but the principle remains the same. Second is Sales: This is the process within your business to convert that enquiry into an order or a job. This will be different for each business but in the end there needs to be a structured process to maximise the chance of turning that enquiry into a sale. Next is Production or Operations: I know it sounds blunt but the ultimate purpose of production is to create
financial inflows and outflows (Hopefully the inflows will greatly exceed the outflows). We may love what we do and have a genuine wish to provide the best for our clients, but if we don’t provide both profit and cash flow, we won’t be in business for long. Then there is Financial Control: This is all about managing the money and producing profitable cash flows that will not only provide a living but also fund growth. Statistics show that nearly 90% of business failure results from faulty management, and more particularly poor financial management.
well. Yet we don’t always do so. We get that shiny new piece of equipment or car and we treat it like a baby. We service it faithfully and polish it until it gleams, but no matter what we do it still depreciates in value. Then we get that new, enthusiastic member of staff and chances are we’ve managed to kick the enthusiasm out of the within the first six months. It really just doesn’t make sense!! So what now? Firstly, it’s important to make sure that each of these functional areas of your business are working well. Then it’s important to see how well they are working together.
Central to all these processes is Administration: This is often the most overlooked part of the business as it’s not seen as that important and is just perceived as a cost. In truth administration, which includes Information Technology (ICT) is the communication conduit that allows each of the other parts of the business to talk to each other.
You see your business will only work as well as the worst performing area. You may have a new Ferrari capable of going 300Kph, but if the tyres aren’t up to the job you won’t be able to take advantage of that capability. Similarly if your Ferrari only has a Micra engine, it’s not likely to perform as well either.
Underpinning each of these areas is Human Resources or People: If you take the people out of your business chances are all you will have left is a pile of depreciating assets. You and your team are one of the very few assets in your business that has the ability to appreciate if you treat them
It’s my experience in working with businesses that they nearly all do one thing really well, but they never reach their potential until they get some balance in these areas. Look for balance. I guarantee it will improve your outcomes!
Volume 3 Issue 28 - March 2015
Page 7
Let’s Talk Business
Dan Buzer Profit Mechanics 0414 567 188 www.profitmechanics.net/ dan@profitmechanics.net
True Story: Seven things I’ve learned About Business And Life While Sitting In Hospital In the last 90 Days While My Dad Has Lung Cancer Surgery & My Mum Had Brain Cancer Surgery 1. It doesn’t matter how ‘fit’ you are My Mother has never smoked in her life and my Father smoked 2 packs a day for 40 years. In the same 3 month period both got diagnosed with cancer. This shows that no matter how fit and healthy you think you are, you are still at risk! 2. Your personal finances is a business Often when a business goes broke, the possibility of the event is prepared for; some money is put aside, a job is likely to be available or some other fall back plan. For many mature people though, the only income is from government pension, measly superannuation payments or worse … home equity! You should have a personal SWOT. 3. Don’t rely on others … not even family Mum & Dad know a lot of people. But, it wasn’t until help was asked for they realised, like most people these days, they’re BUSY people. They have partners, children and jobs. They were both lucky that their Son (Me) had the resources of time, money and family support to help them out during this time. 4. It’s not cheap The costs soon add up! Travel, Volume 3 Issue 28 - March 2015
accommodation, medicines, non-slip bath mats, railings, shower alterations, house alterations, etc. All these expenses add up so quickly it can be frightening!
paperwork to be signed off on BEFORE the event. Your family will thank you for doing this if things do go wrong. Summary
5. The true business test can be the difference Many people fool themselves calling their income stream that is a result of their labour, a business. The difference is often not realised until the person who does the labour is not able to do the work. Does your business work whether you are there, or not? 6. Cash Flow management In this day and age it’s easy to learn and implement the basic technology that can take care of bills and income disbursement. Automated pre-set payment systems and money transfer processes are easy to put and keep in place. Consider putting the small amount of effort into setting these up and enjoy the freedom of everything working autonomously. 7. Legals and insurances Many people don’t understand the consequences to themselves and their family for not having their legal situation and insurances in place. The sad part is, the investment of time and cost is amazingly small. Arrange for your Power of Attorney and other
This was a life changing experience. The other amazing lesson is just how many people are struck down by and affected by these events. The family I stayed with had lost family to cancer. The dozens of people in the ward having major surgery. The taxi driver that drove us from the hospital to the airport. The ambulance officer that was travelling on the flight had a brother who had just been diagnosed with cancer. It’s everywhere! Ultimately … be prepared! Get help. Don’t waste time. Do it now. So why not get it done today? Go to www.profitmechanics.com.au or call Dan Buzer 0n 0414 567 188 for your complimentary Profit Mechanics Cashflow Forecast template and instructions. Plus, if you mention this article you can have a complimentary 1 hour session with a Profit Mechanics Business Development Manager (BDM). Remember … Business is More Fun, When There’s Profit! Page 8
Let’s Talk Business Karen Ahl Bac. Bus (Mark, Man), TAE40110, Cert IV IT Caboolture, Queensland Ph 0415 142 178
www.web-sta.com.au
All Roads Lead to ROME Website & Social Media Strategy for SMEs
Your social media accounts & directory listings are effectively being leased or rented. You don’t own Facebook, Twitter, LinkedIn, Pinterest, Instagram or any other social media accounts. You also don’t own Truelocal, Yellowpages, Hotfrog or any of the directories you’re on either. What happens if you were to lose your Likers/followers? How do you continue to market to them if something happens to that social media account?
to give you their contact details. Encourage your Twitter Followers, Facebook Likers, Facebook Friends, LinkedIn Connections, Youtube Fans and all other social media audiences to visit your website and leave behind their name, phone and email address at a minimum. Encourage visitors to your directory listings to go to your website where you can capture their details. Create a call to action! This is your Carrot!
All Roads Lead to ROME
You own your website
It is legally yours
You have control over it
It features your branding
You can add features as your business grows
It only advertises your business – No Competitors.
Your No.1 objective is to retain communication with your audience.
Here are some promotions, pitches and offers that can tempt your audience to come visit your website, THEN leave their contact details. Competition – (visit website to enter), Free download (ebook/ report), Online retail (Free postage, discount), Share blog your article links, Free sign up (newsletters), Free registration (events) and more. Once you get them to your site, you can:
You are only renting To do this, you need to eventually lead them to ROME
Analyse and track where website visits came from
Keep record – of what “Carrots” did & didn’t work for different audiences.
Your website IS ROME After you have built a relationship with them on social media… offer a carrot to make them want to visit your web site then encourage them Volume 3 Issue 28 - March 2015
For further information, please feel free to email Karen ~ The Webgirl. Page 9
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 I have celebrated 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.
One of the methods used by the ATO to identify weaknesses in the tax system is the use of benchmarking. This is a series of economic indicators for several industries which include measurements for cost of good s sold, total expenses as a percentage of total sales and total labour costs as a percentage of sales. The benchmarks are grouped into three turnover categories per industry. This gives a fairer picture of the expected trading activity relative to the size of the business. Benchmarking has been used by larger businesses for many years using reports generated by management consulting firms. The data being based on financial data which has been prepared under mandatory accounting standards. This ensured the integrity of the comparative data. The ATO, however, have gleaned their benchmarks from its own data in tax returns. So, their use as a management tool is questionable. Whilst many of my colleagues agree that the ATO's version of the benchmarks are a little fictional, they are being applied by the ATO in their audit activity. Reports from industry sources say that many businesses are failing the Volume 3 Issue 28 - March 2015
Benchmarking and the ATO system they would prefer you use. The benefit of this is your advisor will be able to give you a more proactive service if they have input into your recordkeeping systems.
ATO’s benchmarking and are having their taxable income adjusted as a result of audit activity. The main driver of this is not so much that the business is doing the wrong thing, but that the businesses concerned are not keeping enough records to be able to successfully dispute the tax office stance. The ATO is prone to forgetting that the smaller businesses will always have to discount their products and services due to fierce competition. As well, they do not have the purchasing power of large businesses, and usually pay more for their inputs and labour. This immediately puts their business trading margins outside the ATO benchmarks. The major defence against an ATO audit of this type is to have a clear and efficient recordkeeping system. From the source documents used for customers, through to supplier’s invoices, payroll records and reconciled cashbooks. Showing the tax office that you have controlled business recordkeeping in place will go a long way to proving your case. How do you implement this system? It always a good idea to consult your accountant first to see if there is a particular software, or administration
You need to have a system that works for you, is easy to maintain, and doesn’t take you away from what you do to earn your living. Using the new breeds of accounting software – particularly cloud software that allows upload of source documents is a good start. Prepare a flow diagram to show how the paper trail flows through your business. Establish a place for each type of document or file. Establish procedures for filing and make time to keep your cashbooks up to date. If lack of time or lack of skills is an issue, think about outsourcing particular jobs. If looked at from a dollar value, you will see that this can be an effective means of keeping control, but also allowing you to get on with generating business. In all honesty, you can probably earn many times the hourly rate you would pay an administration assistant. If you would like more information on ATO benchmarking, or any other taxation related matter, then please contact us. Page 10
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
Interest Rates, the $A, Debt and Real Estate Booms As at the beginning of March 2015 Australia’s Official Cash Rate was 2.25%, inflation was 1.7%, economic growth was 2.7%, the A$ was US$0.77, Unemployment was 6.1%, the average weekly wage was $1,123 and we are saving 9.3% of our wages. It’s easy to see that interest rates are
High interest rates are desirable for international investors so they invest in interest rate securities here. This increased demand inflates the value of the A$ causing our exports to be expensive (i.e. harder to sell overseas); and imports cheaper (placing pressure on Australian jobs, many of which have already been lost – particularly manufacturing jobs). Further, whilst interest rates are low by our standards, they are high by world standards. There is a causal link between interest rates and the A$ value. We can make our exports cheaper and imports are expensive (which stimulates the Australian economy) by lowering interest rates.
lower than in decades and sustained as well. If inflation is 1.7% and the Reserve Bank’s charter is to keep inflation between 2 and 3% then we could expect further cuts in interest rates.
The A$ An interesting fact is that whilst our interest rates are sustained at record lows, they are still considerably higher than USA, Europe and Japan. Volume 3 Issue 28 - March 2015
This is another reason why we can expect further cuts in interest rates. My personal view is RB Governor Glen Stevens has been behind the trend since 2008 and remains so. If Mr Stevens was ahead of the game, we could get our economy moving more effectively. Debt The Australian budget still spends more than it earns. Any family budgeter will tell you that to continue in this way is to languish deeper into the sink hole of debt of which every cent must be repaid
with interest. Therefore we, as a nation, need to create surplus funds to reverse this dangerous trend and to reduce debt – the repayments of debt prevent us from investing wisely into infrastructure and future development (which build our wealth and capacity; by contrast debt ‘hogties’ our future wealth and capacity). Real Estate Booms Our conundrum is that as we reduce interest rates, we fuel real estate speculation. The problem is that speculation does not add to our national productivity. Hundreds of millions of dollars is effectively ‘parked’ in investments that do not produce any wealth for the country as a whole. Warning: make NO MISTAKE, property values can fall unlike the statements of some property spruikers – don’t ever believe that property values cannot or will never fall. My view is that governments should discourage real estate speculation (not real estate investment) whilst encouraging business and productivity investment. The result will be wise investments which create the ‘multiplier of wealth’ effect for the nation. So, my fellow business people, May I respectfully suggest that you: reduce debt; judiciously invest in your business and become very very good at selling your product/service because the economic cycle will inevitably turn and you will reap the benefits of your good management. Contact me for more information on how to improve you lending facilities and sales results Page 11
Let’s Talk Business
Peter Nicol Wisdom Marketing & Management Services 0417627097 www.wisdommarketing.com.au manager@wisdommarketing.com.au
Not Following Up It is amazing just how many times we hear about people not being happy about the service they have received from business houses who claim to be good at service.
Not only had sales increased, brought about by conversions to sale but, also going back in time and looking at long overdue follow -ups (some as long ago as a year).
This article is in the context of nonretail businesses where the transactions are, by – and - large not finalised at the point of sale.
We supported this effort with some merchandise (pens and drink bottles) and sent these off to numerous prospects and other clients who had not been serviced for some time.
These businesses have to give a quote or let the prospect ponder their decision based on any number of criteria. The presentation is done and, the prospect leaves the premises only to find that they are distracted by other matters and, over time their desire to own the product or service is diluted. Here are lost opportunities that day in and day out many business houses fail to follow up on.
of professionalism are heightened. I have recently had some wonderful news about a client who took some of this advice back in December of 2014. We met and discussed ways and means of how we might get the sales trending upward. At that time my client was new to the role and he had been grappling with a number of other matters before he called me.
I have never been able to work out whether it is just bad management or they do not care. The last 10 years or so have seen plenty of money around.
It did not take us long to work out how we might make more sales. We found that the sales people had been generating quotes and in the main n not following up. I will not go into the “whys”.
Of recent months the gloom and doom we hear about the economy shows that businesses in Queensland are doing it tough.
We decided that we would have an internal sales and customer follow-up person involved in following up quotes and doing quotes.
The mining boom has long gone and now we have many once booming centres in Queensland struggling.
It sounds easy but the culture of the business needed to be changed and what sounds so simple was a tough few weeks of getting approval.
So each customer/prospect has to be handled very carefully if you are to get their business. Apart from having to be more diligent it is vital that standards
Volume 3 Issue 28 - March 2015
The client and I met a few days ago and, I was delighted to see that the program was working a treat.
Again the results very positive. The internal sales person is now doing a lot of quoting on a daily basis. The follow up is done at an appropriate time and conversions are significant. In these difficult times it is vital that all leads and prospects are handled with uppermost standards of professionalism. You might care to look at your own systems of follow-up. There are dollars out there if you do.
Page 12
Let’s Talk Business
Denis Keating Everest Resources Brisbane, QLD HR and WHS Protection for Your Business Mobile: 0419 029 606 Fax: 07 3112 4072 Email: denis@everestresources.com.au Web: www.everestresources.com.au Skype: denis.keating1
This month we continue the series based on the National Standard HRF 101:2010 Human Resources Framework, looking at the third component – Governance and Compliance. We have previously discussed the need
HR and WHS Compliance
running around trying to problems and “put out fires”.
avoid
Health and Safety in the Workplace Business operators must take all reasonably practical steps to ensure the health and safety of workers and other people (e.g. clients, visitors) impacted by the business or undertaking; and they must be able to prove that they have done so. This means that you must:
for assessing current performance with respect to human resources requirements (measurement) and developing an annual HR Plan. And we looked at putting in place the necessary systems and documentation to manage the HR processes in your business. Being responsive and proactive to compliance, rather than being reactive, demonstrates to your employees that you are on top of your game and willing to do the right thing for them. This helps to create a healthy and progressive workplace. High performing organisations do a complete job in this area of business activity, while low performers do not get things finished and are always Volume 3 Issue 28 - March 2015
Know about relevant laws and what you need to do to comply with them Understand the nature of your operations and the associated hazards and risks Control these hazards and risks Provide appropriate resources for working safely Review incidents, hazards and risks Have an audit process for health and safety How do you do this? By having appropriate documentation and record-keeping processes in place including:
Policies, safe work procedures Training and induction Incident and hazard management Emergency planning Safety manuals can be hard or soft copies, or you can use online systems. Relevant information needs to be available to employees and they need
to know where to find it. HR / IR Compliance This covers including:
a
range
of
issues
Various acts have different interpretations as to whether workers are employees or contractors: The Fair Work Acts covers employment terms and conditions; the Workers Compensation and Rehabilitation Act deals with WorkCover requirements; and the Superannuation Guarantee Act governs the superannuation rules. An individual worker can be treated as a contractor with respect to the Fair Work Act, but could be viewed as an employee with respect to WorkCover and superannuation. Take care and obtain advice when necessary! Employment documentation, agreements, contracts, awards – getting everything correct at the start of an employment relationship requires careful planning and execution. Fair and unfair dismissal can be confusing for employers and again requires advice and care. Special provisions apply to SME employers Important Tips:
Get advice Keep it simple Tailor for your business Implement well to create a high level of trust with your staff
Page 13
Let’s Talk Business Dennis Chiron Marketing Means Business 0451 184 599 www.marketingmeansbusiness.com
dennis@marketingmeansbusiness.net.au Skype: dennis.chiron2
Offer Incentives for Customer Referrals If there's one thing that always generates more customers, it’s receiving referrals --and everyone loves to be recognized for giving referrals. Receiving a referral from a customer is just about the greatest compliment a business can receive. Referral customers are much easier to close, they have fewer complaints, generally they develop into more loyal customers, and overall they are more trusting. In a recent national survey nearly a quarter of all the respondents considered incentives an effective generator of referrals. Incentives can range from simple recognition, such as a thank-you card, to monetary rewards based on business generated. It goes without saying, then, that building an incentive program is important in any successful business. Golden Rules of Customer Service Getting your name in front of your customers can sometimes be an art form in itself. Trying to find the right promotional vehicles or items which customers will not forget about five minutes after they have left your store is always difficult. However, sometimes what may seem like an overwhelming challenge, can also be relatively simple if you remember some of the golden rules of customer contact:Provide great customer service Volume 3 Issue 28 - March 2015
Today’s customers are looking for guarantees, quality, recognition and exceptional service after the sale. This is particularly relevant when making an Internet purchase, customer service can often become a major factor in the final buying decision. Always endeavour to provide good value, and always do your absolute best to exceed your customers’ expectations. Sales Vs Marketing Many people are often confused between what is marketing and what is sales. This is fairly easy to do, because both are closely interlinked and are both aimed at increasing revenue for the business. However, whilst sales and marketing can be seen to be related, and usually “work” together, they are two very different things. Marketing is about identifying the target market, and clearly identifying who they are, where they are, and what they can spend. It is also about the company and the product: expertise, quality, service, pricing. Then, sales staff can then follow up— knowing that there’s a better likelihood of success (that is, completing a sale). Sales then closes the loop with marketing—giving them feedback about how well prospects are prepared to buy and if there is more information they should have before being asked to make a purchasing decision. Three Ways To Cope With Adversity Being able to stay
resilient in the face of adversity is an important skill for business owners to have, but in a period of challenge and change, it is particularly crucial. Here are three rules you could follow to remain resilient in the face of adversity: 1. Explain yourself. Dealing effectively with a problem or setback starts with how you explain it …. to yourself and those around you. 2. Don't overreact. In most adverse situations, people tend to overreact. Learn how to remain calm and counter those standard reactions with a more accurate evaluation of the situation. 3. Keep it in perspective. Ask yourself, "What's the worst thing that can happen?" "What's the best outcome that we can hope for?" Then, start working towards the more positive aspects of any given situation. Monitor Your Benchmarks In A Slow Economy Do you know how to navigate your business through rough financial water? First and foremost, you need to establish realistic goals and monitor them religiously. Industry experts suggest working on zero-based - not zero-growth - budgeting. Start from scratch every year, and don't assume you're going to spend the same amount you did the year before. In a slow-growth period, it's particularly important to get financial statements from the previous month so you can revise your budget every week if you need to. Page 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.
PUBLISHER:
Marketing Means Business “Let’s Talk Business” is distributed to 3,341 business email addresses within Australia and Internationally. We welcome contributions, suggestions for articles and letters to the Editor from our readers. Please address correspondence to: The Editor, LTB PO Box 569
We believe that by offering this free service, we are achieving our goal, and this is evidenced not only by our constantly growing database of businesses receiving the publication, but also by the quality of the authors who unselfishly contribute regular articles to LTB.
Bribie Island, Qld 4507 Phone: 0451 184 599 dennis@marketingmeansbusiness.net.au
Web:
www.marketingmeansbusiness.com
We pride ourselves on the fact that we have a range of authors who are recognised experts in their industry, and these experts give freely of their knowledge and their time to assist us to offer you quality, practical, professional advice and information.
You are welcome to re-produce any
of these articles. However,
please quote the source as “Let’s Talk Business”. While every effort has been made to ensure that all information contained herein is accurate, no responsibility will be accepted by the publisher.
Letters to the Editor are most welcome
Likewise, the publisher accepts no
Please send your letters to
organisations or individuals and/or
dennis@marketingmeansbusiness.net.au
responsibility for illustrations or photographs
supplied
by
typographical errors. Views expressed in contributed articles are not necessarily those of the publisher.
“Let’s Talk Business” Small Business Publication
You are also encouraged to
PO Box 569 Bribie Island QLD 4507 P| 0451 184 599
direct, if you are seeking specific
contact the individual authors advice.
dennis@marketingmeansbusiness.net.au www.marketingmeansbusiness.com
Volume 3 Issue 28 - March 2015
Page 15