Let’s Talk Business
Let’s Talk Business Back To Basics Business Solutions - Support for Small Business
Volume 2 Issue 24 - November 2014
What Is The Value Of Your Small Business (Do You Know?)
Volume 2 Issue 24 November 2014
Inside this issue
Cover Story - What is the Value of Your Small Business? ................. ...….2
16 Powerful Ideas to Reward Your Team Dr Tim Baker …..….............3
Biz Snippets …………….......4
What is Risk Management ? Dennis Chiron………...........5
7 Shortcuts to Mastering Time Instantly Angie “Speedy” Spiterie ….6
The Recession Survival Kit Geoff Butler ………………..7
Business Networking and Fishing Dan Buzer ……..…………...8
The Top 3 Things Your Home Page Needs Karen Ahl ……..………..….9
Small Business WH&S Obligations Tony Osmani …..…….…...10
Self Managed Super Funds (SMSF) Jo-Anne Chaplin………….11
5 Strategies to Catapult Your Success on LinkedIn John Bellamy ……………..12
Direct Debits - Diabolical Paul Gillmore……..............13
Have Meetings - Take Minutes Peter Nicol ………………..14
Editor’s BizTips ……….….15
LTB Objectives …..........…16
Page 1
Let’s Talk Business
he ow T n K ou Of Do Y l Value ess? Rea usin B r You
What is the Value of Your Small Business?
There are a number of key factors that you need to take into consideration when you are valuing your business:
Do you know what your small business is actually worth? It’s a fact that your business is potentially one of your most important assets.
The history and nature of the
business. The economics of the industry.
So why should you value it yet, because at the moment you have no intention of selling your business? It’s also a fact that the majority of Australian small business owners are dependent on the sale of their business to fund their retirement. Besides wanting to know the value of possibly, your most important possession, there are a number of crucial reasons why business owners should know the value of their business., which include:
Overall financial performance
Creating an exit strategy
Establishing your business as a Franchise
Attract shareholders / partners
Business planning and decisionmaking,
determining tax obligations,
for litigation purposes (including divorce)
Death or incapacitation of a partner
Access external sources of funding
Selling the business
Having a realistic understanding of the value of your business or the value of your shares in a business will always be critical to personal decision-making and planning. At the ‘end of the day’ ultimately any business is worth what the market is willing to pay at a particular point in time.
Valu e Cre ation what is make s you busin r ess va luabl e
Book value and financial condition
of the business. Earnings and dividend paying
capacities of the business. No matter how well presented it is; a valuation that is well above the Goodwill and other intangibles. accepted, general market price is not going to encourage experienced buyers Sales of stock and size of block to be valued. (or their accountants) to pay more. Market price of actively traded stocks of public companies engaged Knowing the true value of your business in the same or a similar business. process is a key step in understanding your business’ position, and it will give an accurate and essential starting point SmartCompany states: “Life as an SME for any future negotiations. owner can be really challenging, with An accountant (or a banker) might tell cash flow, marketing, innovation, you that taking your assets and technology, competition and staff to subtracting your liabilities will give you worry about, among the rest. Despite all what you're worth (that is to say, you of the hard work, financial buoyancy take what you own, subtract what you isn’t a given, nor is the attractiveness of owe, and what's left is what you're worth your business if you want to sell.” -- at least on paper). A valuation is critical for all sorts of including succession But is that really what you're worth? In eventualities planning, selling the business, preparing some cases: hopefully; in other cases: to float, partnering up, acquiring other hopefully not. businesses, looking to get investors, or You can’t put a value on the blood, guaranteeing that the business will sweat and tears that you have expended support your retirement. on the business. Nor can you put a value on the sleepless nights, and weekends In fact SmartCompany are offering a free eBook, Know your worth – the spent doing bookwork. benefits of valuing your SME, uncovers Another way to determine worth would why it’s important to understand the be to sell your business. Then you'd value of your small to medium business. know what it was worth -- at least to the buyer. A more radical way to determine You can download your “freebie” by its worth would be to die. Then the ATO clicking here: would come in to help you (or rather http://www.smartcompany.com.au/ your heirs) figure out what it is worth. resources/library/ebooks/44632-whyThe higher the value the more potential valuing-your-sme-is-imperative-foryour-future-a-free-smartcompanytax your estate gets to pay. ebook.html
Volume 2 Issue 24 November 2014
Page 2
Let’s Talk Business
Dr Tim Baker Managing Director WINNERS AT WORK Pty Ltd
16 Powerful Ideas to Reward Your Team
www.winnersatwork.com.au www.about.me/tim.baker tim@winnersatwork.com.au
Telephone. +61 7 3899 8881
event;
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. Here are ten practical and powerful
5. Inviting the team to the business owner's home for a barbecue; 6. Placing a photograph and story about the team in the company newsletter of community newspaper; 7. Encouraging team members to attend and
present
conferences
at by
professional paying
travel
expenses; 8. Asking the GM to attend a team
manager or business owner. A
On the other hand, some people respond
combination is often the most
better to intrinsic rewards. Here are eight
effective form of recognition.
ideas: 10. Asking the team to accept a new challenge to resolve in the business; 11. Giving the team the opportunity to
such as new equipment; to handle problems or new business opportunities; 14. Asking the team to help another team start up or solve a problem; 15. Offering to pitch in and help the team directly; and 16. Empowering
such as a boat trip or to a sporting Volume 2 Issue 24 November 2014
independently.
the
team
The key message here is: If we want good team work then we must be prepared to reward it when it occurs.
meet off-site at a nice venue;
room; 4. Sending the team on an outing,
will
team's name) on it.
showing team photographs and lunch
value
resources at the disposal of the
work at a whole-of-staff meeting;
the
Their
hat, or mug with his or her name (or
2. Inviting the team to present its
in
performance.
team
culture of your business, and the
13. Asking the team's opinion about how
accomplishments
exceptional
9. Giving each team member a T-shirt,
1. Giving verbal praise at a team
3. Prominently displaying a poster
reinforcing
depend on the team's preference, the
12. Giving the team improved resources,
meeting;
are effective in rewarding and
meeting to praise its performance; and
ideas for extrinsically rewarding a high performing team:
Both extrinsic and intrinsic rewards
to
act
This is an extract from Tim Baker's latest book - Attracting and Retaining Talent: Becoming an Employer of Choice. Dr Tim Baker is an international consultant and author of four books. (http:// www.winnersatwork.com.au) He was voted one of the 50 Most Talented Global Training & Development Leaders by the World HRD Congress last year.
Page 3
Let’s Talk Business
HUMOUROUS BUSINESS CARDS
HUMOUROUS SIGNS
Early 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. “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.” “I hate office work,” said the son-inlaw. “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.” -----------------------------------------
Early to bed and early to rise
probably indicates labour. John Ciardi
unskilled
When you’re up to your armpits
in alligators, it’s hard to remember to drain the swamp. Ronald Reagan Nothing is illegal if a hundred
businessmen decide to do it. Andrew Young Volume 2 Issue 24 November 2014
Page 4
Let’s Talk Business Dennis Chiron Marketing Means Business 0451 184 599 www.marketingmeansbusiness.com
dennis@marketingmeansbusiness.net.au Skype: dennis.chiron2
What is Risk Management? All of us come across risks in everything we do - driving to work, taking your family on an outing, dancing in a nightclub or simply going shopping. Whilst many of us are oblivious to many of these potential risks or hazards, most of us try to reduce the likelihood of risk affecting our everyday activities. What is risk? Risk can be defined as the combination of the probability of an event and its consequences1. In simple terms risk can be seen as a combination of the chance that something may happen and the degree of damage or loss that may result if it does occur. A risk is the likelihood or possibility of something happening as a result of a hazard or threat which will impact on your business activity or planned event. Risk arises out of uncertainty. It is measured in terms of the possibility of it happening and the consequences if it does happen. What is risk management?
Risk management is the process which is used to prevent, avoid, reduce or control risks. There should be a reasonable balance between the cost of managing risk and the benefits you expect from taking that risk. When you set out on a picnic, you are subconsciously going through a process to minimise the risks you may encounter. For example, you check your car's fuel level to ensure you avoid the risk of running out of petrol before you reach your destination. You ensure that you have sunscreen, drinks, eating utensils, enough food, towels, blankets, etc., This is risk management.
Risk Management Process The process of managing risks involves a series of steps. At each step, you should consult with others to get their points of view. Every situation is different and requires its own risk management strategy. The risk management process is shown in the diagram below A good understanding of this environment will help you develop the criteria for deciding whether a risk is acceptable or not..
Why do you need to manage risks?
identify;
assess;
The health, safety and well-being of
monitor; and
reduce the impact of risks to your business.
employees, customers, and participants
Risks are events, situations or circumstances which lead to negative consequences for your business.
A systematic approach to managing risk is now regarded as good management practice.
What are some of the common risks? Every business potentially faces challenges, or risks. The types of risk can vary from business to business but there are some risks that many businesses have in common and generally can be split into two factorsinternal and external.
Ignoring the risk that your car may run out of fuel puts your car at risk and may also delay your arrival at your destination. In the same way, ignoring the risks which apply to your business activities or the events you have planned could impact on the following:
Risk management is considered to be a structured approach to managing uncertainty and includes actions taken to:
workplace and the environment.
volunteers
Your
reputation, credibility and image, public and customer confidence in your organisation
Your financial position Plant,
Volume 2 Issue 24 November 2014
equipment,
the
general
If you would like a free copy of my Small Business Risk Management Checklist, simply text me or send me an email.
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
7 Shortcuts To Mastering Time Instantly Imagine for a moment if you had an extra 10 hours a week during business hours?
know how to get a hold of you if there is an emergency. Decide how you work… so you can get some work done!
Would you see a visible difference to your results, to your life?
Tip Number 6:
Many of the people I work with work very hard because they just don’t have a simple way to do all they need to do.
Continually improve and stream line your processes. Think McDonalds… Create templates as you do work. Review projects once completed and update project plans so you do the work easier, faster and better next time.
Here are 7 proven tips that work no matter where you work or who you are… Tip Number 1: Decide on your bulls-eye What are you aiming to do this year, this quarter, this year? And once decided get it up in front of you so you can see it. Assess new (and more) projects and tasks against your goal and only allow in those that are of value to you and your business now and/or in the future. Tip Number 2: Set up for workflow. Flags, printing emails, post it notes… these are a recipe for distraction and distractions steals time and energy. Use a simple workflow system to keep your work to do out of sight but not forgotten. This small action can return you an hour a day. What is your hour worth? Tip Number 3: TRIAGE Cut through the deluge of clutter that comes your way.
Volume 2 Issue 24 November 2014
Your job is to triage. What is going to get through now, what is going to get through later and what is not going to get through. Tip Number 4: Learn how to plan and feed everything you need to do into 1 system… Not everything is going to get done today, not everything needs to get done today AND you know what, some things don’t need to be done at all BUT when we don’t feed everything we need to do into 1 system… this is what you attempt to do – everything! Using 1 system forces you to prioritise. Tip Number 5: Address irritations stealers…
and
time
Email, meetings, interruptions… Batch low priority communications to be done in 1 hit. Let your client
Tip Number 7: Get a mentor specific to the skills you want to learn and short cut your way to success Specialists can give you straight to the point, no fluff, and practical ways of getting to where you want to go. You can take the long way, or you can short cut your way to success. Doing less is truly the key… doing less gives you a chance to do more of what’s truly important? However you might not be able to quickly pinpoint what these are because you are too close to what you do. Download this free tool: Instant Profit Calculator to identify quickly what to focus on, what to delegate and what to delete from your to do list completely.
Page 6
Let’s Talk Business
The Recession Survival Kit
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
Firstly, real success is sustainable and happens in any economic climate, in spite of external influences. Businesses that survive and thrive the tough times are those who adopt an attitude of discovery rather than resistance. More importantly, they focus on their customers With the current climate with a two (or even three) speed economy, the media is predictably focussing on the negative. Negative stories sell newspapers, but they do nothing for people’s confidence. Negativity creates a sense of resistance, and while resistance to unpleasant situations is an expected human response, it also stymies a business owner’s capacity to focus and focus. The reality is that in tough times there are just as many opportunities as there are in good times – maybe even more. A lot of it has to do with mindset and education. You must start with a clearly defined goal in sight and remember the cost of education is always going to be cheaper than the price of ignorance. Here are some suggests to help you focus on what is important in your business in the current climate. Focus on how you attract, retain and develop your relationships with your clients:
Put your efforts into your existing clients – Relationships are everything
It sounds obvious, but losing clients through neglect or sloppiness is especially painful in tough times. The cost and difficulty in replacing
them is greatly increased. Your client list and prospects are your greatest asset. Even more important is your relationship with them and what you’re known for. The truth is that most businesses fail because of an inability to keep customers coming back, rather than an inability to attract customers,
Grab your customer’s attention – Be innovative
Most people in business have unreasonable expectations about the results they will achieve with plain vanilla advertising and marketing. The one thing your clients and prospects won’t put up with is being bored.
Your advertising people’s attention
must
get
If you can’t make a compelling case in your advertising to choose your business over your competitors, you have no business spending a cent on advertising. Does it:
Get attention; Arouse interest and emotion; Tell an interesting story in a believable way; Offer an incentive to take action now; and Ask for action and make it easy to do what it is you want them to do. Make appropriate adjustments to services, payment options and products
All advertising should be news. Find ways to present what you do, the
Volume 2 Issue 24 November 2014
services you provide, or the products you sell expressed as news. Find ways to use what is in the news about the economy to your advantage. This does not necessarily mean slashing prices. It may be message related or it may mean arranging payment options. Better still, focus only on the things you sell that produce the bulk of your turnover, and then do it better.
Only run offer-based advertising – Accept change
There is little point of advertising without an offer to respond to. I suggest the most important thing to create is the offer. The reason the offer is important, is that it breaks down the major barriers to business – lack of trust and scepticism. In tough times you can’t afford to be boring.
Avoid blame – You are the answer
The truth is that money is made mentally long before it is physically collected. The old saying is true: ‘People have more hang-ups about money than they do about sex.’ In my experience, most people prefer to take the easy option and blame circumstances beyond their control, like the economy, their education, their parents, the government of the day or anything other than them. In many cases, the difference is acting on the getting and using of information. Page 7
Let’s Talk Business
Dan Buzer Profit Mechanics 0414 567 188 www.profitmechanics.net/ dan@profitmechanics.net
Business Networking and Fishing … “There’s a Fine Line Between Fishing & Standing On The Shore Looking Like An Idiot”
Editor’s Note:
Here are 7 tips to help you get results …
Dan Buzer is Co-founder of Profit Mechanics Was mentored by BRWRich list regular Mr Cyril Maloney, who has a net worth of over $330 million. One company Dan worked with grew from 6 outlets and $4.2 million dollars turnover to 36 outlets and $25,000,000 turnover in 7 years. Has owned several businesses, including an Australian based franchise operating in 16 countries. Out of 44 stores one of Dan’s was number 1 in the country from its first month! It consistently sold 1,000% more of its lead product than the franchise group average.
1. Select your meetings carefully. Look up members of the group. Talk with them and ask for their opinion and results. How much business do they get? Who are the key people in the group? Do they think there is potential for you to make productive connections?
The title of this article includes a quote from the comedian Steven Wright. After presenting to, being a guest of and even a member of many business networking groups, we have come to realise that at MOST of the events there’s a proverbial ‘Elephant in the Room’. If you too have been to a range of these gatherings, you will know what we’re referring to. Is there any dollar productive ‘business’ being generated for the people attending these events? Our experience has been, usually very little. However, for those few who understand how to get results from the investment of their time and money, these meetings CAN be productive … VERY productive.
2. The meeting is just the show. The real business takes place at the follow-up one to one meetings you arrange after the event. Make sure your diary is organised and handy so you can immediately book in any opportunities that may arise. 3. Arrive early and leave time to stay late. The pre-amble and after close of meeting is usually the time to have good conversations with people. Plan your attendance to leave time at both ends of the meeting. 4. Mingle. The comfortable thing to do, particularly if you’re new to these events, is to find people you know or have similar links to and stick with them for safety. This is NOT what you are here for. To break away from a clicky group, simply excuse yourself and walk up to any other person or group of people and introduce yourself. You will be respected for doing this, not shunned. 5. Groups that measure results get results. Take note of how the leaders of the group manage the performance. Some groups are very casual in their approach, others can
Volume 2 Issue 24 November 2014
be militant! Each have their advantages and disadvantages. It comes down to what works best for you, but everyone being aware that productivity is being measured helps increase results for attendees. 6. The connections you want are outside of the group. Imagine that every person in the group sat down with you and scrolled through all their contacts on their mobile phone and in their email list. If the group has 20 members and each member has 50 contacts (conservatively) that’s 1,000 contacts connected to those 20 in the room with you. 7. Remember what’s in it for them. Focus on identifying solutions to people and their connections. Don’t hunt people – Attract them by being a good listener, problem solver and connector. If you say you will do something, make sure you follow through and do it. This will build your reputation and people will be more open to discuss business opportunities with you. You’re welcome to experience a complimentary 30 minute review of your business that includes a copy of the popular Profit Mechanics Diagnostic Questionnaire. You get an easy to understand report that will help you see where profit may be leaking from your business and how to fix it. Call 0414 567 188 now! 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
The Top 3 things your homepage needs Nothing is more frustrating then to visit a website and not find what you are looking for. I am sure you have experienced this yourself. Consumers are looking for that “quick” piece of information to answer a question or confirm a detail and you cannot find it. Here are my TOP 3 things your homepage NEEDS.
1: A phone number! Having your phone number on your homepage is vital. It not allows for new potential clients to contact you immediately, it also allows existing clients to reach you easily. It is the one immediate method of contact for customers and you want to make it as easy as possible for visitors to your website to find it. Make it Obvious! Have it appear in the top header/banner of your website or somewhere near the top of your page. Make it Clickable! A truly mobile site has it so that, when clicked, your phone number opens up in the mobile users keypad with the number ready to dial. All they need to do is hit “call”. No more trying to remember your number from your website or trying to scribble it down on a scrap piece of paper. Now that is CONVENIENT!
2: Your Address/s! There are a few reasons as to why this is important. What if someone is on their way to your shop or office? You want to make it super easy for them find your address and fast. They might be on their phone in the car trying to find you. A google map somewhere on your site is also a great idea. Link to your google map from your homepage if you don’t want the map being immediately visible. Now, if you are hosting an event, workshop or attending a show that is NOT at your regular place of business...have this on your homepage too. Have an area that clearly states any events you are hosting and where they are being hosted. Chances are you will be too busy setting up to field any calls about “so where do I need to go again?” The only time you wouldn’t provide your FULL address is when you are appointment only or offer a purely internet only service (online shop). If you are home-based even, at the very least, mention the suburb you are located and/or the areas you service. This can also help with Google searches too. It also helps weed not-so-quality leads. E.g. imagine someone from Perth stumbles across your site, but you only service Brisbane...if this is obvious, they are less likely to waste their time and yours.
Make is Easy for them! Volume 2 Issue 24 November 2014
3: List of Services/ Products/Brands! It’s all about making it super easy for your customers to: Contact you, Find you AND Learn about what you do. This could be nothing more than a simple list, dot points even. If someone visits your website expecting you to offer one service, then to find out you offer ten, they may be more inclined to spend more money with you. You suddenly have more to offer them and never assume that they will assume what you do. E.g. Just say you are a pest controller and someone wants to you perform a bond pest control. And just say you also offer bond carpet cleaning too. But, this is not clear on your website (or worse still, not even mentioned on your site), how are they going to know before speaking with you. They may just select a competitor without you even realizing. Also, nothing is more frustrating for a business owner then to find out that one of their existing customers say “I didn’t even know you offered that. I just paid such-n-such down the road do that for me.” ~ Spare yourself ~
Keep it SIMPLE Make is EASY For further information, please feel free to email Karen ~ The Webgirl. Page 9
Let’s Talk Business
Tony Osmani
Small Business Workplace Health & Safety Obligations
C.E.O. Tell : 1300 421 914, Mob: 0411 09 5539
Under occupational health and safety (OH&S) and new work health and safety (WHS) legislation you are obliged to provide:
safe premises safe machinery and materials safe systems of work information, instruction, training and supervision a suitable working environment and facilities.
Complying with these duties can prevent you from being prosecuted and fined, and help you to retain skilled staff. Workplace health and safety authorities in each state and territory and Safe Work Australia have responsibilities for enforcing the OH&S legislation. They provide education, training and advice on health and safety at work. You can get information about your OH&S obligations and other valuable OH&S resources both in hard copy and online from their websites. The Work Health and Safety Act has recently been amended, and some of the Key Changes that are relevant to small business are:
The concept of the employer with responsibility for WHS has been broadened by using the term person conducting a business or undertaking (PCBU) The concept of the worker also has been broadened to someone who carries out work for a PCBU in any capacity Small business owners or
employers will have to consult more directly and widely with both workers and other PCBUs on related work activities Under the WHS Act the prosecution will have to prove the case thus abolishing the current reverse onus of proof situation Officers of a PCBU now have a duty to exercise due diligence to ensure compliance obligations are met What is a PCBU?
A PCBU is a person or duty holder such as a company or partnership that operates the business Examples of PCBUs would be companies, franchisees, self employed, contractors and sub contractors PCBUs are not persons employed solely as workers, or volunteer associations who do not employ anyone
Who are PCBU’s responsible for? PCBUs are responsible for the health and safety of: Workers - but more than just employees. The new Act does not
Volume 2 Issue 24 November 2014
rely on just the employment relationship Workers could be direct employees, labour hire workers, employees of contractors, apprentices or a student on work experience Others who could be affected by the business’s activities such as visitors, customers or members of the public Who owes duties to you?
Workers and Others Must take reasonable care of own health & safety Must take reasonable care that conduct does not adversely affect others Must comply, so far as he/she is reasonably able, with instructions In addition workers must cooperate with reasonable notified policies and procedures Other PCBUs need to ensure their operations do not create a risk for your workplace or workers Please note that legal obligations of employers vary according to circumstances. You may wish to seek independent legal advice on what is applicable to your situation. You should visit Safe Work Australia for more information which is relevant to your State and your industry http:// www.safeworkaustralia.gov.au/ sites/SWA Page 10
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.
SELF MANAGED SUPER FUNDS (SMSF)
There has been a lot of media attention to SMSFs of late, both good and bad. An SMSF Is essentially a self-directed entity which is used to save for your retirement.
the fund are not for the use of the member or their family and associates. Types of investments include cash, shares, managed funds, real property and property trusts, as well as some exotic types of investments that are beyond the scope of this article.
They are subject to the same legislative requirements as retail super funds, with a few exceptions. What’s in it for me? For those investor or business people who like to make their own investment decisions, with selected guidance from advisors, then SMSF is the perfect choice for retirement savings. SMSF’s enjoy significant tax concessions both in accumulation phase, and once the member converts to pension phase. Super Choice legislation introduced some years ago, allow employers to contribute to their employee’s SMSF, provided that the SMSF is registered with the ATO as being a bona fide Superannuation Fund. Families, particularly spouses, can benefit from investing their superannuation entitlements together, in assets that are more suited to their investment risk profile. Recently, the law was changed to allow a form of borrowing by SMSF’s called Limited Recourse Borrowing, which has further
Photo courtesy of www.usatoday.com
widened the scope for investments opportunities. Basically, the Fund is permitted to borrow to purchase assets – either shares or property in order to achieve income and future capital gains. There are many rules surrounding this particular strategy so professional advice is a must. Once the Member reaches retirement age, a pension can be drawn from the members fund balance. Under current tax law, the amount of the drawing is exempt income in the hands of the pensioner if they are aged over 60 years. As well, the earnings of the fund which support the pension are also tax free earnings of the fund. This results in a preservation of your retirement capital. What can an SMSF invest in? Your SMSF must meet the “sole purpose” test. This means that the selection of investments must provide income and capital gains for retirement This means, basically, that the assets of
Volume 2 Issue 24 November 2014
Trustees determine the mix of the investments by having regard to their personal investment risk profile, and the liquidity requirements of the Fund. Trustee responsibilities The Trustees are ultimately responsible for the operation and management of the SMSF. To make this job easier, the Trustees usually engage a professional firm to undertake the administration and assist with the preparation of investment strategies and the like. We can help you decide on whether an SMSF is the right entity for your retirement savings strategy, and also show you that the duties of the Trustee are not as onerous as many of the media advertisements would have you believe. If you have a fund, and would like some advice on strategies available to you, then please contact us for a Fund Health Check Review.
Page 11
Let’s Talk Business John Bellamy Co-Founder Phone: +61 404 473 755 Email: john@heartcentredmoneymakers.com
John Bellamy is recognised as one of the foremost LinkedIn experts in Australia, having spoken to thousands of business owners, helping them to turn their LinkedIn profile into a virtual ATM where they can withdraw cash at will.
5 Strategies To Catapult Your Success On LinkedIn
With the festive season already upon
5. Offer To Help: The greatest
us, now is the time to ensure that you
gift you can have, is the ability
are
most
to help solve other peoples
importantly adding heaps of value to
problems. If you truly believe
your LinkedIn connections and future
that
communicating,
and
connections.
you
can
help
your
connections, then encourage and
The success of your 2015 depends on the actions you are taking right now. So what actions could you be
empower your connections to 2. Get Curious: Now is the perfect
take the next step with you.
time to be speaking with your connections and discovering what
So there you have it. Five really
they are planning to achieve in 2015,
simple action items for you to focus
and
they
on, that will set you up to better
Well there is literally hundreds that I
perceive could possibly present
utilising LinkedIn now and therefore
could rattle off, from posting in
themselves along the way.
having an amazing 2015.
focusing on when it comes to LinkedIn?
the
roadblocks
that
groups, creating updates, sending
3. Value, Value, Value: Find out what
personalised and/or group messages,
your connections want, and give
Let me know how you go
and keeping in-line with my"“Dumb
them
John Bellamy
and Boring" methodology. Here's five
information' (tools, cheat sheets,
actions that come to mind:
resources) as possible, with the
P.S. In line with point #3 "Value,
intention of assisting them achieve
Value, Value" I find that many of
that. This is all about helping your
the hundreds of people I speak with
connections get results in advance.
each month, find it challenging to
Start Connecting: Consider this. LinkedIn is merely an extension of your offline networking initiatives. And just like an in-person networking event, your aim is to meet and connect with new and interesting people.
The same is true when it
comes
to
LinkedIn,
so
start
connecting with your ideal target market.
as
much
'valuable
4. Fill Your Calendar: Time is your
know where to focus their time and
most precious commodity, and if
energy to get the best result from
you're not focused on filling your
LinkedIn. So here's a free gift, It's
calendar with high priority actions -
the exact blueprint I use on LinkedIn
that will propel you forward, then
everyday.
your time will get filled with
Download it here for free: www.Linkthority.com
everybody else's stuff... And I know you don't want that :)
Volume 2 Issue 24 November 2014
Page 12
Let’s Talk Business
Paul GILLMORE DFS Founder and Director Southern Cross Financial Services 07 5429 5561
Direct Debits – Diabolical? . . . All this occurs but your wages or income has not gone up . . . . . you can see that there can easily be a knock on effect that can easily have you in arrears on several bills.
We have been paying bills electronically for quite a long time now and it is true to say that most people are adept. However I want to share my thoughts on different types of payments and some pitfalls versus advantages.
You begin receiving letters and phone calls “informing you of your arrears and asking when you can pay?”
Direct Debits Most financial institutions and creditors will try to make you set up a direct debit to pay them. This is where the creditor will access your bank account and withdraw money to pay themselves. They sell this idea on the basis that is easy for you and you will never miss a payment, and most of the time it works well. The major problems I see are that you give authority for someone else to directly access your bank account. If you want them to stop, the bank will refuse. You must go back to the creditor and ask them – they might not do it this month or they may wish to make other charges that you disagree with against your account. Giving away control is never a good thing. Further, creditors have the power to access your bank account but the RESPONSIBILITY remains with you ! Creditors will tell you that it is up to you to have the funds in your account
Direct Debit for them to debit. However, what if you become unemployed or have some unexpected expenses (such as a child becomes ill)? Bill Shock What if you have an unexpectedly high mobile phone bill because of ‘roaming’ or ‘excess data’? The Direct Debit (DD) simply debits your account. Then you get a higher than expected power bill which is also DD.
My Message is to take control of your own finances. Do not outsource it through direct debits and tell creditors that you do not want DD’s and you don’t want to give them your credit card details either. Companies will tell you that you have to have a DD but stand your ground OR vote with your feet . . . . only this will bring them to heel and my advice to you is MAINTAIN CONTROL OF YOUR OWN FINANCES to maintain control of your own destiny ! For more information call: Paul Gillmore DFS 07 5429 5561 0402 685 032 paul@sc-fs.com.au
Then interest rates on your home loan goes up and your mortgage is DD’d. Then your water rates come in and even though you try to keep your water use down, the bill has gone up. .
Volume 2 Issue 24 November 2014
Page 13
Let’s Talk Business
Peter Nicol Wisdom Marketing & Management Services 0417627097 www.wisdommarketing.com.au manager@wisdommarketing.com.au
Have Meetings - Take MinutesBut don’t waste hours having them that doing the books is really a walk in the park and, undervalues the huge contribution the wife is making.
The emphasis on every businesses should be on selling and indeed good customer care. All of my articles in “Let’s Talk Business” have continually talked about the need for more efforts in enhancing selling methods and closing sales. I have always been a person to “practise what I preach” and I try each week to get to see as many new prospects as I possibly can for my consulting work and, the Gardening Tool - The Prong (an invention of mine now being sold through Home Timber and Hardware.) The product was promoted through their National Catalogue last month and during the week another container was ordered to meet demand. It has been a gratifying few weeks. It validated my belief in the old adage that “the more calls you make the more deals you get”. From my home office I have taken an idea to a National Brand in a little less than 12 months. You have to find the “opening - the opportunity” and once you have a belief that the product matches the prospect then off you go and tell them enthusiastically about your wares. My gardening tool was a finalist in the National Innovation Awards in 2013 (see “Let’s Talk Business” Volume 2 Issue 14 January 2014)
From the moment my entry was announced as a finalist I then had to get out there and bang on doors. It is not easy getting to major chain stores and, yes I got knockbacks from some but, the one that made it over the line was worth all the hard work. I cannot sit on my laurels. Ask yourself are you doing the right thing by your business by having such a culture. The one thing I ask each client is “do you have regular sales meetings?” I do not care if it is a two person operation or huge operation there HAS to be a sales meeting each week. Set an agenda and ask what is happening in the marketplace. Oftentimes your perspective of the market is completely different from those who work for you. In many small business enterprises it is simply the husband and the wife. On many occasions I have asked the owners “how does it work here”. The husband invariably pipes up and says, “I go out and do the work and, she does the books”. I then turn a little “frosty” as it implies
Volume 2 Issue 24 November 2014
“He” often goes off and buys some significant items without consultation and invariably tensions arise. I find that to keep the peace the wife goes along with many things that are really not good for the business as they are unaffordable or just not needed as a resource because the figures show that work is not really available to cost justify the purchase. It is in these environments I make significant inroads into a business as; I demand yes, demand that from that day forward “she” is referred to as the Business Manager”. I also convince them to have a daily 15 minute meeting as to what the day has achieved and the needs that have arisen that need to be addressed. Time and time again I can prove a simple well considered meeting and asking the right questions of each other is the key to many maladies that face any business no matter the size. Keep minutes but do not waste hours. Page 14
Let’s Talk Business Dennis Chiron Marketing Means Business 0451 184 599 www.marketingmeansbusiness.com
dennis@marketingmeansbusiness.net.au Skype: dennis.chiron2
Do You Multitask? Small business have to be resourceful to stay afloat. With smaller budgets, more competition, cheap imports, higher prices, the business owner has to consider everything from consistent industry changes, cash flow, customer needs and the unexpected challenges that they never expected or planned for. Competing on a fraction of the budget to keep up with the larger firms is why small businesses have to always consider a multitasking approach to staying competitive.
Some of the factors to take into account when determining your price are:
the method of establishing the price for a product or service based on the level of demand.
The overall expenses of your business
Your break-even point
The margin you need to be profitable
Demand-based pricing uses consumer demand (and therefore the consumer’s perceived value) to set a price for goods or services.
The effects of competitors on your business
Threat of cheap imports
The bargaining power of buyers
The bargaining power of suppliers
The Price Trap
Pricing Methods
It is not unusual for a business eager to attract clients and customers to undercut their prices. And all too often, these businesses face a similar fate.
There are 3 basic methods that all businesses use to determine the price you choose to sell your products or services.
Firstly, their business starts to grow, more customers start to come in and buy, and these businesses are busier than ever. Everything appears to be a success — except the bottom line. In fact, the more products the business sells, the more money they are losing. ….. Welcome to the ‘Price Trap’
Cost Oriented
Competitor Oriented
Consumer or Demand Oriented
1. Cost oriented method comprises determining all the costs entailed in the running of your business and then deciding on the profit margin that you need to make.
*Under pricing. Pricing your products for too low a cost will have a devastating impact on your bottom line, even though business owners often believe this is what they ought to do in a tight economy. All too often, it turns out that the business is losing money with every sale.
2. Competitor oriented method is basically, the “going rate”. You need to know:
*Over pricing. Overpricing a product can be just as devastating since the buyer is always going to be looking at your competitors’ pricing, as well as service and quality. Pricing beyond the customer's desire to pay can also decrease sales, quickly and dramatically. Factors in Determining Price
What your charging;
How similar are your products to theirs;
Can you value add to justify a higher price than your competitors;
Or what impact would there be on your business if you where to undercut your competitors.
competitors
are
3. Consumer or Demand oriented method virtually means the price that the customer is willing to pay, and is
Volume 2 Issue 24 November 2014
Some methods of demand-based pricing can include price skimming; price discrimination; price points; psychological pricing; bundle pricing and premium pricing. A Few Advertising Tips KISS: Keep it simple stupid! Don't overcomplicate your advert if it looks cluttered, people won't even attempt to understand what it's about, they will simply turn the page. Have a captivating headline Don't just use your business name at the top of your advert. The headline must be compelling enough to instantly grab someone's attention. Try and make your headline fun and play to the readers' interests. Use only one photo image and choose it wisely. A good picture should instantly bring to mind the experience and inspire someone to 'jump at this opportunity’. Have a call to action What do you hope to achieve by the advert? If it is bookings then give a call to action “YOUR ADVENTURE STARTS HERE, CALL …….. Use colour if possible Because, without colour your ad may be less noticeable, and people could perceive it as being bland before even reading it.
Page 15
Let’s Talk Business
Objectives of “Let’s Talk Business” Small Business Publication One of the primary objectives of “Let’s Talk Business” (LTB) is to provide a regular, monthly information service to support the Small Business Community. Our goal is to provide a publication offering a wide and diverse range of topics and information which may assist business owners and their teams to gain more insight, knowledge and skills in the overall running of their business, thereby assisting them to build a strong, viable and sustainable business.
PUBLISHER:
Marketing Means Business “Let’s Talk Business” is distributed to 3,318 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 2 Issue 24 November 2014
Page 16