Let’s Talk Business
Let’s Talk Business Back To Basics Business Solutions - Support for Small Business
Volume 2 Issue 23 - October 2014
Definition of an Australian Small Business (There are about 20 different definitions - depending on who is doing the defining)
Inside this issue
Cover Story - Definition of a Small Business ...... ...….2
The Continually Improving Business Dr Tim Baker …..….............3
Biz Snippets …………….......4
Are You a Creative Leader or a Manager ? Dennis Chiron………...........5
Squeeze Out Your Balance Sheet to Improve Cash Flow Geoff Butler ………………..6
7 Reasons Why NOT to have a Business Coach or Mentor Dan Buzer ……..…………...7
6 More Things That Google Looks For in a Website Karen Ahl ……..………..….8
Your WH&S Obligations Keeping Records Tony Osmani …..…….…....9
Stay Alert for Scams Jo-Anne Chaplin………….10
General Financial Tips for Small Business Christopher Mobbs…….. .11
Is This Divine Intervention? Peter Nicol ………………..12
Editor’s BizTips ……….….13
LTB Objectives …..........…14
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Let’s Talk Business
Exactly What Is The Definition of Small Business In Australia?
There are probably over 20 different definitions of small business.
volume averaged over a three-year Australia (COSBOA) and the Tax Institute recently held a round table on period. “Can We Better Define Small So, why do we need a better definition Business”. This was attended by senior executives from Treasury, the in Australia? Department of Prime Minister and Firstly we need a definition that picks up Cabinet, The Australian Taxation Office and the Department of Innovation. on the fact that we are people.
For example, the Australian Securities and Investment Commission (ASIC) regulates many businesses that are 'small proprietary companies', which means a company with two out of these three characteristics:
That will help regulators and policy designers do a better job. We must remember that when it comes to small business the Process must not defeat the Purpose of the Policy - otherwise the aim of the policy will fail.
The round table also included representatives from Cabinet Ministers’ offices including the Treasurer and Assistant Treasurer and the Minister for Small Business.
We know that governments want to give small business people a break and therefore we also need to get a better definition in place, particularly for taxation purposes.
But in between time we definitely need a better definition for the purposes of giving small business people a tax break. COSBOA, and others, are on the job to achieve that as soon as possible.
Just what is a small business? We currently have a range of definitions by a range of government agencies and banks.
an annual revenue of less than $25 million fewer than 50 employees at the end of the financial year, and consolidated gross assets of less than $12.5 million at the end of the financial year.
The Australian Taxation Office defines a small business as one that has annual revenue turnover (excluding GST) of less than $2 million. Fair Work Australia defines a small business as one that has less than 15 employees. Despite these differences, many regulators have informally adopted the definition of ‘small business’ used by the Australian Bureau of Statistics (ABS), which is a business that employs fewer than 20 people. Conversely, on the other side of the world, the United States Small Business Administration (SBA) defines a small business concern as one that is independently owned and operated, is organized for profit, and is not dominant in its field. Depending on the industry, size standard eligibility is based on the average number of employees for the preceding twelve months or on sales
The Small Business Commissioner from Currently all political parties and indeed NSW attended, Sensis was there as were much of the bureaucracy are focused on the banks and the Institute of Public small business like never before. Accountants among others. The economics adviser to The Greens also But whenever some new support or a attended. new process is developed we find that due to the definition of small business The meeting was addressed by the that most of the target group is often Assistant Treasurer, David Bradbury, the shadow Minister for Small Business missed. Bruce Billson and the Independent Rob For example the recently announced, Oakeshott. and then unannounced, tax cuts for businesses only applied to incorporated This is an impressive list and shows that this issue is not an ideological issue that businesses. divides parties and politics. It is something that we all want resolved. There are some 2.5 million small businesses in Australia and only around 700,000 are incorporated, so most miss The discussion centred around why we need a better definition and whether it is out. possible to have one definition for all Also of the 700,000 that are purposes. incorporated most do not use the company structure for taxation purposes; The development of one definition they use it more for protection or for maybe possible but would prove very difficult. It is certainly something that family ownership purposes. Geoff Fader, a Director and ex Only about 300,000 small businesses Chairman of COSBOA and Chairman actually used the company structure for of the Tasmanian Small Business Council sees as a worthy target. taxation purposes.
The Council of Small Business of 2
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Dr Tim Baker Managing Director WINNERS AT WORK Pty Ltd
www.winnersatwork.com.au www.about.me/tim.baker
The Continuously Improving Business
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.
letter. The rationalisation for these systems is that they are the best way to accomplish work-related tasks. People are then rewarded for following standard practice and often criticised or even punished for not doing so.
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.
Under these constrains it is very hard to promote a frame-of-mind which is based on innovation and continuous improvement.
“"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" .
Another reason for this vacuum in ideas is that we are still largely operating on the old 'them and us' employment relationship. Managers do the thinking and workers do the work. Under this psychological contract, employees believe that their manager is paid to think.
Stephen Hartley, Australia’s leading expert on project management and author of "Project Management: Principles, Processes and Practices. How do you get people to bring their brains to work and not leave them in a paper back at the door? There has been lots written about the subject and business owners and managers are still frustrated by employee who don't display initiative at work. Most businesses are locked into a 20th century mindset based upon stability and predictability. And this kind of thinking inhibits innovation and continuous improvement. Business owners and managers put in place set processes and procedures and expect employees to follow these to the
And traditional managers may also believe this too and therefore show little interest in their employee's ideas. At any rate, the best way to break this cycle is for business owners and managers to ask employees direct questions around innovation and continuous improvement. Asking a general question such as: "Have you got any suggestions for how we can improve?" is unlikely to elicit anything profound. The key is to ask specific questions in a timely manner about a specific task at work. And it helps to do this one-on-one. For example, a better question may be: "How would you go about improving the poor communication between our team and administration; I am interested in your ideas?" Here are some areas that may assist in focusing the innovation and continuous improvement conversation:
Improving quality Reducing time
Reducing costs Increasing output Increasing safety Meeting deadlines Enhancing interpersonal cooperation Streamlining systems & processes
The other advice I would offer is this: Don't do this once or twice. Do this all the time. In fact if every manager and supervisor ought to have a five to 10 minute conversation twice a year with their direct reports, I have no doubt that people would start coming up with suggestions on a range of matters. Some of them will undoubtedly be too costly or impractical. But some would also be worth considering. Start with the routine tasks and processes. After all, the regular activities are likely to consume the most time. Improvements in these areas will consequently reap the greatest benefit. This is the approach I am advocating in my book: The End of the Performance Review: A New Approach to Managing Employee Performance. www.winnersatwork.com.au 3
Let’s Talk Business
HUMOUROUS BUSINESS CARDS
HEY!!!
YOU SUCK AT PARKING I MEAN REALLY?
LEARN HOW TO PARK IDIOT ….. (I could do with 100 of these - daily)
This card certifies that you had an encounter with me and found me funny, polite, warm, friendly and intelligent. (Your Name Goes Here)
THANK YOU! FOR PROVIDING SUCH TERRIBLE SERVICE HERE’S A TIP FOR YOU
FIND A DIFFERENT JOB WHERE PEOPLE DON’T DEPEND ON YOU
LIKE POLITICS
(Your Name Goes Here)
HUMOUROUS SIGNS
The Bankrupt Three businessmen were having dinner at a club. When it came time to pay the check, each grabbed for it. "It's a business expense," said one. "I'll pay," said the second. "I'm on cost plus." "Let me have it, "argued the third. "I'm filing for bankruptcy next week The Tax Office A businessman, on his deathbed, called his friend and said, "Bill, I want you to promise me that when I die, you will have my remains cremated." "And what," his friend asked, "do you want me to do with your ashes?" The businessman said, "Just put them in an envelope and mail them to the Tax Office. Write on the envelope, 'Now, you have everything.'"
Smart Woman Two women were comparing notes on the difficulties of running a small business. "I started a new practice last year," the first one said. "I insist that each of my employees take at least a week off every three months." "Why in the world would you do that?" the other asked. She responded, "It's the best way I can learn which ones I can do without." 4
Let’s Talk Business Dennis Chiron Marketing Means Business 0451 184 599 www.marketingmeansbusiness.com
dennis@marketingmeansbusiness.net.au Skype: dennis.chiron2
Are You a Creative Leader or a Manager? One of the essential ingredients of high performing individuals, teams and organisations is creativity (Basadur,2004).
Creative leaders are not just born that way, and they just don’t have very strong personalities if they are to lead successful organizations.
But before we discuss why creative leadership is so crucial in today’s society, we need to understand the difference between two closely related things: Creativity and Innovation.
They must profoundly understand and know human behaviour, and, most importantly, understand who they are and what motivates them to success and what can cause their failures.
Mark Batey, Manchester Business School says: “Creativity is the capacity to come up with ideas for solving problems and exploiting opportunities. Innovation is the ability to turn those creative ideas into new products and services. To put it another way: creativity is inspiration; innovation is perspiration.” In that case, a creative leader is someone within an organisation who is capable of producing the conditions that enable those in their team to generate creative ideas. These ideas will help organisation to move forward.
the
Creative people push the boundaries; they seek new ways of seeing, interpreting, understanding and questioning. They can accept the ambiguity of contradiction and uncertainty. They can tolerate disorder and unpredictability. In fact, they thrive in circumstances which others might see as chaotic and disorderly (Montuori & Purser, 1999). Creativity and Creative Leadership is probably one of the most important (but sadly lacking) leadership qualities needed in this decade, if not this century.
Creative leadership is built on the idea that everyone at every level in the organization is a leader; that leaders must know themselves, alert to their failings and graces, to better serve the organization; and that only by mastering complexity – both human and organizational – will leaders be able to achieve alignment. (Doug Guthrie, 2012) Whether you are the CEO of a large organisation; the leader of a team or division within such an organisation; or the founder of a small company, creative leadership is critical to your innovation success. Innovation is the result of successfully implementing creative ideas. Moreover, the process from idea to implementation, of a breakthrough innovation, requires a great deal of creativity. And to achieve this, you need creative leadership. Jeffrey Paul Baumgartner believes: “It is not about your creativity. It is about your team’s creativity”
one person, no matter how creative you are, and ignoring everyone else. What Makes a Creative Leader? Creative leaders love challenges that test their limits. They also do not fear the fact that they don’t know something, and they see setbacks as just that - opportunities for personal growth. Creative leadership today, is a priority in these increasingly complex and unpredictable times.
To be a leader today you require a totally different attitude and mentality and different mind-set. But, unfortunately, our education system has not taught us how to think “outside the box”. Drawing from his experience, Dr Kalam articulated eight key tenets of creative leadership that are critical for driving innovation and growth in the emerging global knowledge economy: 1. The leader must have a vision for the organization 2. The leader must have the passion to transform that vision into action 3. The leader must be able to travel into an unexplored path 4. The leader must know how to manage both success and failure
Creative leadership has very little to do with your creativity and everything to do with your team’s creativity. If it was only about your creativity, you wouldn’t need a team would you?
5. The leader must have the courage to make decisions
You are only one person. Your team (which might be your entire company) is many people. Tapping into the cumulative creativity of 10 or 100 or 1000 people will clearly result in better results than tapping into the creativity of
7. Every action of the leader should be transparent
6. The leader should have nobility in management
8. The leader must work with integrity and succeed with integrity 5
Let’s Talk Business
Geoff Butler FAIM AP, MAITD MACE Principal/Business Improvement & Implementation Specialist Business Optimizers
Squeeze Out Your Balance Sheet to Improve Cash Flow
Mobile: 0414 943072 Fax: 3036 6131 Email: geoff@businessoptimizers.com.au Skype: business.optimizers1
A couple of major complaints I regularly hear from business owners are that although sales are going up they aren’t making any more money, or that their accountant tells them they’ve made a profit but they can’t find it. Let’s see if I can help explain it: Everyone knows the value of a sponge: it absorbs water. This can be useful in all sorts of contexts. Well, your company’s balance sheet is also like a sponge – except that it soaks up cash, rather than water. This can be far less useful and not necessarily a good financial deal. As the sponge nears its capacity to absorb additional water, it becomes far less efficient. The same thing happens with your balance sheet and the phenomenon has two basic causes. Increasing sales – or growth – creates a need for additional money to finance an additional level of assets including inventory or in service businesses, work-inprogress (WIP) etc. For most businesses the main source of this additional finance is from creditors – in other words, debt. Risk (in the form of increased debt) increases accordingly, and increasing interest expenses may even put downward pressure on profits. Furthermore, growth in sales is often accompanied by a decrease in the efficiency of the operation. This inefficiency really surfaces in the balance sheet as proportionally more assets are required to support new sales levels. In other words, the rate of asset growth increases faster than sales; you make the
same percent of profit – but you make it less efficiently. So, what do you do? The clear message is quite straight forward: Manage better. A few ways this can be done are listed below: Manage current assets (Inventory,
Debtors) more efficiently. Unless you’re in the finance industry, don’t let your customers use you as a bank. You’re much cheaper than theirs as you probably don’t charge fees and interest. Restructure debt (long-term, not
short-term). The Golden Rule of borrowing is to match the term of the loan to the life of the asset. Make more profit Sell existing unproductive assets.
Whenever you buy something, chances are you should be selling something. Curtail expansion and manage
growth Lease fixed assets rather than
buying Implement
sale-leaseback existing fixed assets
of
Don’t grow (use pricing, etc. to
limit growth) Get a new equity source – a
passive investor or active partner This checklist represents the action steps necessary to manage growth effectively; you need to arrive at the particular combination of components that will work for you (remember; when it comes to the balance sheet, doing ‘nothing’ is
usually the worst possible decision). By earning the same level of profits more efficiently, sufficient cash is ‘squeezed out’ of the balance sheet to significantly reduce borrowing requirements. Keep in mind that there are three fundamental parameters in evaluating the growth capabilities of expanding companies: 1. How efficient is the company now? 2. The financial requirements of the company; that is, what new assets will be needed? And 3. The owner’s abilities as an asset manager – strong or weak? Growth is reflected on the profit and loss statement as increases in sales and (hopefully) profits. The ‘cost of growth’ is generally reflected on the balance sheet in the form of increased debt to offset decreased inefficiency. These are controllable issues. The sponge analogy? Well, efficiency translates to squeezing your balance sheet to free up the funds you need to grow; otherwise, you’ll find it squeezing you. 6
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Dan Buzer Profit Mechanics 0414 567 188 www.profitmechanics.net/ dan@profitmechanics.net
Editor’s Note: 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. Has acquired businesses for free that were listed on the market ranging between$200,000 and $800,000. This includes a majority share-holding in a national pet food distributorship with 17 licensed distributors operating for over 25 years. This is a tongue-in cheek-rant. It’s been written with people in business in mind, however it could apply to many areas in life, such as sports, personal development and more. I hope you enjoy it and would appreciate any feedback or comments
“7 Reasons Why NOT to Have a Business Partner, Coach or Mentor” If you have had the pain of having a Business Partner, Coach or Mentor involved in your business affairs, I’m sure you will relate to this rant! 1. You’re constantly wondering about things like “Is my activity being productive” or “What actual results am I aiming to get, currently getting and did I finish up with?” It can be really annoying to be constantly thinking about whether or not you're wasting time! 2. They’re always, constantly, neverendingly asking for a score of some sort! Like a Profit & Loss, or a Cash -flow Forecast, or the number of inquiries that converted into sales. JEESH! Although these things don’t take long to tally up (once they’re set-up), it still forces you to look at “The BIG Picture” (in whiny groaning voice). 3. It makes it really hard to distract these people with personal emotional stuff. It was much easier to divert attention from the real issue (especially my spouse) when I could use emotional excuses like “I know I should have, but Johnny was on school holidays”. It’s annoying not being able to cloud the real issue with personal life stuff! 4. Then there’s the cost! If you don’t do what you said you’ll do, you still have to pay for their time! It makes much more sense to just not have that accountability at all and the added bonus is there’s one less bill to pay. It’s pretty simple really. Just
work more hours IN the business to reduce the wages bill. Duh! 5. They never seem to let the small stuff go! Like insurance, intellectual property protection, putting money aside to pay an upcoming tax bill, etc, etc, etc. It’s like they have this list that they never forget and keep bringing your attention to until you do it! Seriously, it can bug the heck out of you! 6. When you have a bad day, the WORST of the bunch seem to have this 'Jedi Mind Trick'. They just let you get it all out and then when you're finished they ask for a positive way to solve the problem! Now, that might seem to make sense, BUT the problems give you something to stress about and this in turn makes you feel like you’re doing something. So it may seem like they’re being helpful but it makes it really, really hard to have a pity-party! 7. They can give you different options and ideas from their way of life, personal experiences and network of connections. This makes you think outside your box which sucks because it feels so good to be the smartest person in your business. Do you seriously have to ‘open your mind’ (in over-exaggerated whiny voice). Rant over. 7
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
6 more things that Google looks for in a website Here is the final instalment of “6 things that Google looks for in a website”. 7. Regular Updates Gone are the days of just building a website and leaving it. Google is smart enough to compare the recentness of information and consider the best for ranking. Google calls this the “Freshness Factor.” The more often you update your website = Google will revisit your website more often. Then you don’t have to wait as long for subsequent updates to be considered.
8. Links FROM your site Links between the pages within your website are important. For example, a website menu. This is why onepage-websites are not as popular – they have no other pages to link to. To further increase the number, and power of links within your website, add links throughout your wording E.g. link the works, “click here for more information about mechanical repairs” to another page on your website about Mechanical Repairs. Google will assume that this linkedto page is about Mechanical Repairs. Now, if your wording on this linkedto page matches this assumption, it can prove a very powerful link.
Now “links from your site”, also includes links to external websites. “By definition of internet ‘interconnected network of networked computers’… thus without external links, you basically are telling Google that "the link to follow stops with your website."
Source: http://www.rankya.com/seo/doexternal-links-affect-seo.html By linking to other websites (obviously avoid linking to your competition & only link to sites related to search phrases you want to rank better for), you are helping Google with giving them more websites to visit. This is how Google is so efficient at reviewing so many websites. It basically jumps from site to site as a result of interlinked websites. Give Google great quality links to jump off to! 9. Sitemap This is a list of the pages within your website. It, again, makes life easier for the search engines to determine how many pages exist within your website. Your sitemap link does not need to appear on your website. It can just sit in the background. Once set-up, submit this to Google to speed up the ranking process. 10. Google Map Listing It is FREE, you need a physical location and you will receive a text/phone call/ postcard with a PIN to verify this listing/
account. Only create one Google account! Google preferences their map listings in most search results. They usually sit at the top, just under the coloured paid ads. 11. Links from Social Media There is no real evidence that Google does or doesn’t count links from social media. Google claims that they don’t at this time, however…Google does consider the amount of traffic it generates to your website. Linking from your Facebook, Twitter, LinkedIn and other social media via posts etc. is a great way of encouraging traffic to your site. If Google identifies lots of traffic, it will assume that your website must be popular and important. And it is Google’s job and soul purpose in life to only rank popular and important websites. 12. Links from other websites Increasing the number of quality links to a website can further convince Google that your site is popular and important. Commonly called “Link Building,” many Search Engine Optimisers focus on creating quality links on online business directories, other websites, forums and blogs with the soul aim of increasing your websites “Link popularity”. You can do this yourself and for free. Just find great quality directories as a start. For further information, please feel free to email Karen ~ The Webgirl.
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Tony Osmani C.E.O. Tell : 1300 421 914, Mob: 0411 09 5539
Your WHS Obligations Keeping Records
In every workplace you are required to identify and keep records. The records that you are required to keep will be determined by your job tasks. Company policy would have commonly used records such as physical records, preparing and personal, WHS and basic financial transactions, In businesses, in the rural and regional sectors of Australia, the industry sectors can be quite varied. However the record keeping and administration requirements have many common factors related to the:
types of records
legislative requirements
ethical standards
technology and equipment used
Both the physical and financial records of the business are vital for planning purposes, meeting legislative requirements and the efficient operation of the business on a daily basis. The following table is a guide for the common factors across these industries.
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Let’s Talk Business Jo-Anne Chaplin Tax & Superannuation Professionals Pty Ltd PH 07 3410 8116 / Mobile 0457 960 566 Email : taxandsuperprofessionals@gmail.com Web: www.taxandsuperprofessionals.com.au
I am a qualified Accountant and will celebrate my 20 th anniversary as a Registered Tax Agent this year. During my time in Public Practice I have assisted clients to achieve business growth and prosperity. My earlier career included positions in banking, manufacturing, construction and retail. My particular interest is in promoting a culture of using local industries and business in order to build a strong community.
STAY ALERT TO SCAMS!
Some interesting data crossed my desk last week. During an update from the ACCC, they advised that there were 91,927 scams reported to them in 2013, a figure that was up 10% on the previous year. Of these, a reported amount of $89+ million dollars was lost to scammers. Broken down into ranges 33% lost between $100 - $499, 10% lost $10,000+ and there were 2 reports of losses over $1million. The majority of monies lost were by scams relating to online shopping, fake lotteries, false billing and phishing & identity theft. Further information from the Australian Federal Police advises that one of the latest targets are self funded Retirees looking for investments for their Self Managed Superannuation Funds. The pool of money held in Australian SMSF’s is now so substantial it has attracted organised crime who are using sophisticated techniques to trap Trustees into bogus investments. These include elaborate websites, and detailed information about the investments being offered. Are you a target? It is imperative that you have procedures in place to protect you and your business from these types of fraudulent activity.
A simple procedure for business owners to follow, and to teach all accounts staff to follow is: Before paying an account:
If you didn’t order the product/ service, find out who in your business did; If you can’t work out who placed the order, ask the creditor for a copy of the order. If they don’t send it, don’t pay the invoice; If you did place the order, check that you’ve received the product/service, and that you’re being charged the right amount.
Online safety is also an issue, so to safeguard your online presence, and your data:
Always make sure that you virus scanning programmes and firewalls are up to date Do not share passwords, or record them. Change them often, and do not save them to your computer Always “logout” of secure websites and close your browser when you
have finished using them Control/ limit who has access to your online data, company and personal passwords Dispose of your records by shredding, burning or using a quality assured records destruction company. Do not respond to emails or telephone calls requesting your banking details or passwords Do not respond to unsolicited phone calls from people purporting to be from Microsoft, or Apple and requesting access to your computer.
When choosing investments always make sure that the investment provider holds an Australian Financial Services Licence. The Licence details can be checked on the Australian Security and Investments Commission website www.asic.gov.au. The most secure option when investing or setting up your business procedures and protocols is to use a local service provider. Someone whom you can sit in front of and discuss at length your position, ideas, and goals. For more information on current scams, you can sign up for alerts at www.SCAMwatch.gov.au. 10
Let’s Talk Business
Christopher Mobbs Managing Director and Senior Financial Planner Comprehensive Financial Solutions 1300 733 237 www.comprehensivefinancial.com.au solutions@comprehensivefinancial.com.au
Some General Financial Tips for Small Business Owners Should I Consider Refinancing? Some people will refinance a loan for a many reasons. Obviously, to access a cheaper interest rate. With all the competition in the market at the moment it really does pay to shop around. I suggest doing a check over your loan every once or two years, at least every five, just to make sure that it does remain suitable for you and your changing circumstances. That's something we can help you with. We offer a complimentary review of your loan and we work with you to make sure that it is suitable and compare others in the market to see if there is a better deal for you. Other reasons people refinance are debt consolidation. You might like to consolidate all of your loans into one at a lower interest rate so you only have to worry about one repayment each month. Renovations. These days a lot of people are choosing to modify their existing home or business rather than selling and buying a new one. By releasing some of the equity that builds up over the years, they can quickly and easily access the money they need to complete their renovations. One of the other most common reasons people refinance is for investment. This might be to unlock the equity in your property for the purpose of buying shares, manage funds or even another property. There are so many different scenarios that I get asked about. We will work with you to find the best lending solution for your needs. The
benefits of refinance can be huge. You can save thousands just by accessing a cheaper interest rate. Lenders can be a bit cheeky, too. They pass on the cheaper insurance rates to their new customers, but they don't always pass it on to their existing customers. It really does pay to review your loan and take advantage of the competition in the market. It's so easy to switch between lenders these days. If you're not satisfied for whatever reason, don't be afraid to ask us for help. When Do You Want To Retire? As a result of recent proposals in the Australian Federal Budget, many Australians will not be able to receive the age pension until age 70! So it's important that we start to plan ahead, and we have to act now so we can decide when we want to retire and not when the government wants us to retire. The scary thing is that this is not the first time that the age pension has been raised. During the recent Labour-run years the age pension was changed from 65 to 67. Now, the age pension has risen again from 67 to 70. Who knows what the next changes will be or what the Government will do. It is clear that the Government is telling us that the age pension is not set in stone, and therefore they may increase the age again or even decrease the amount that is received from the pension by changing the rules of the asset and income test (which they have already started to amend). So the choice is yours; you can either have the freedom to retire or the Government can have control over it.
How do you become self-funded and how much do you need to save? The best way to avoid the age pension changes is to start to save now for retirement. We all know that we eventually have to start putting extra money into our superannuation, but most of us don’t know how or how much. Let’s take the example of a 45 year old man on an average wage of $75,000 a year. If he retires at 70, he will need $357,000 in super for a comfortable retirement income2. But if he retires seven years earlier at 63, he'll need $482,000 in super $125,000 more. The good news is that it could be easier than you think to close the gap. Assuming the same 45 year old currently has $100,000 in super, he could reach his target of retiring comfortably at 63 by salary sacrificing just $65 a week into super . We need to view each situation differently and that is why advice around retirement is so important. You can choose to take the slow and steady route to retirement by planning well before you have chosen your retirement date, or you just might not have enough money to retire with and will be forced to work till 70. The choice is yours. Get in touch with us so we can help you plan for a better tomorrow for you and your family. For confidential advice contact us or call us on 1300 733 237.
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Let’s Talk Business
Peter Nicol Wisdom Marketing & Management Services 0417627097 www.wisdommarketing.com.au manager@wisdommarketing.com.au
Is This Divine Intervention? Australia has stories like these a million times over with our migrant population seeing opportunity everywhere. Sometimes circumstances make us think hard as to how make ends meet.
This is a " “oncer” as they say. It just happened only a few weeks ago and to tell the story I have to set the scene. I was in Florence on week three of a six week holiday in Italy. It had been a tiring day and my partner and I decided to get a coffee at McDonalds. They serve reasonably priced good food and after 3 weeks on the road a few chips and a Big Mac held a lot of appeal.
that is taking place right now.” “Wow” I said “all that way you must be pretty good at it to get customers so far from home (Rome)”. “I have been doing it for about 4 years now and the business has simply grown and grown since I started. My husband is Italian and when I came here I could not speak a word of Italian. I was a qualified hairdresser and had skills with makeup.”
The place was packed! A young woman in her thirties struggled into the seats beside us. She was loaded up with bags and I helped her get settled. People with bags are commonplace on journeys like ours. We started to chat and I asked where she hailed from. It was Ireland. She said she was in Florence for the day working and was grabbing a quick snack before heading back to Rome where she lived with her husband. I asked what she did for a living. I was a little taken aback with the answer. “I was here to do the makeup for the bride and bridesmaids for a wedding
“So how did you kick it off I asked?” This is the purpose of the story. She said that she knew there were a lot of Irish priests in Rome. So she went and visited them all and told them she would appreciate it they could help. She told them she could do wedding makeup and if any brides came their way she would be grateful for any referrals. From there her business has grown and grown. What a great story. New country, no idea of the language, and she sets up a new business.
No, we did not share emails or phone numbers. I thanked her for sharing her wonderful story with us. I told her I was a small business specialist and to her credit she said can you give me any tips? My answer was simple “you are right on the money.” Just a passing moment in life and I learned a lot from this delightful and clever person. Just ask yourself are you doing all you can to market and grow your enterprise? Sure it is hard work but the coming times will be tough on business so it is time to get “down and dirty” and start working the territory and getting real sales plans in place. Not sure if your local parish priest can help but hey who knows? The trip to Italy is now over and I am back at the office knowing that if I am to go away again I have to keep working my market. Cheers Peter
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Let’s Talk Business Dennis Chiron Marketing Means Business 0451 184 599 www.marketingmeansbusiness.com
dennis@marketingmeansbusiness.net.au Skype: dennis.chiron2
What Makes You Different? Why should customers buy from you and not from someone else? What does your attitude and actions say to your customers? Do you make your customers feel welcome and wanted? What lasting impressions will your customers have from purchasing your products or using your services? Make the experience for your customer a memorable one and let them remember your for your superior customer service. Quality Customer Service Every day each of us receives or provides customer service and everyone has a story about a favourite retail shop, restaurant, dry cleaner, hotel, etc. Why do certain businesses earn your longterm support and word-of-mouth recommendations? Because they exceed your expectations. They treat you with respect and make you feel as though you are an important part of their business. As a business operator, your focus must always be the customer. You exist to provide service and satisfaction and meet the needs of your customers. Stay Flexible You must be flexible when it comes to your customers and clients. This means doing a project for a client in a pinch, having an early morning meeting even if you like to sleep in, and meeting on Saturday even if you usually reserve your weekends for yourself.
Flexibility can also mean getting information for your client, even though it may not be in your area of expertise. Say, for example, you're catering a wedding and your client needs information on Irish wedding customs. It's just as easy to make a call to your local library and fax the information to your client as it is to say "I don't know anything about that." And making that extra effort will ultimately pay off with a very satisfied customer. Don’t Compete On Price Perhaps the biggest mistake small merchants make when faced with competition from national discounters is to slash prices to attract customers. A more sound approach is to look for ways to differentiate your prices based on added features, warranties, service, or other value packages. For example, a local appliance dealer whose price on dishwashers is higher than the price at a national chain may justify the difference as a “value package”. The small dealer may include special services such as free delivery, discounted installation, a supply of detergent, or a book on cleaning tips. Keep price sensitive items in line. While you generally cannot compete solely on price, there may be occasions when you will want your prices to be in line with the going rate at the large retailers, particularly around price-sensitive items heavily advertised by the large companies. Consider keeping your prices on these goods close to those of the larger competitors so as not to alienate knowledgeable customers.
Make up for that pricing by increasing your margins on nonprice sensitive items. For example, a small bookstore can offer best sellers at a discount similar to the large chains, but may be able to charge list price back catalog books and premium prices for book-oriented gift packages.
Customer Loyalty is the Foundation for Success What is Customer Loyalty? There are many schools of thought on exactly what this means. However, the most simplistic and accurate interpretation I think is: Customer Loyalty is giving people a reason to not only shop at your place of business, but also wanting to come back. They would prefer to come back to you rather than going to your competition or going online and spending their money at some company that offers cheap, ‘crazy’ deals. Customer Loyalty is when people go out of their way to patronize small companies because they know and like the people there and enjoy the service they receive and the overall shopping experience. Of course, you also have to offer good, quality products and great service at reasonable prices, but what you are able to achieve is “Relationships” with your customers and a solid reputation and credibility in your community.
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Let’s Talk Business
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