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ISSUE 9 JANUARY 2012
FOUNDED IN PARRAMATTA
From humble beginnings… Bill Moss’s path from western Sydney boy to international Macquarie bank executive. By Mike Walls NTIL his retirement as an executive with Macquaire Bank, Bill Moss was one of Australia’s highest paid executives. Over almost three decades he rose through the ranks of the notoriously difficult banking profession and helped establish Macquarie Bank as an international brand with businesses across five continents. Amid the publicity around The Millionaire Factory; as Macquarie Bank became known, two things remain largely unknown about Moss. Firstly, Bill Moss a western suburbs boy. He
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INSIDE • Legal position on business relationships • New push for Granville commuter car park • Planning your IT investments • Impact of the shifting dollar
was raised at Guildford West and to this day credits his western Sydney upcoming as crucial to shaping his success in later years as an international property and banking executive. Secondly, throughout much of his career – the highs and lows - Bill struggled with a rare form of muscular dystrophy called FSHD. But in true Moss style, he turned what was at times a debilitating condition, into an asset. In an exclusive interview with Western Sydney Business Access, Bill Moss tells of his struggle against the odds; gives his vision for western Sydney and shares his keys for business success in today’s global economy. FULL STORY: PAGE 11.
Retired executive, Bill Moss.
E-tivity to launch in United States PARRAMATTA based workforce management solutions firm, E-tivity Corporation has opened its first office in the United States. ur research into the U.S. market shows there is a definite opportunity for our solutions,” said Michael Volk, E-tivity Corporation’s CEO. “Put simply, the struggling American economy translates into an extraordinary chance for Etivity Corporation to help American businesses rejuvenate their bottom lines by improving efficiencies and controlling labour-related costs with Australian software solutions.” E-tivity Corporation has a strong presence in the WFM market in Australia. The company has clients in various industries, but primarily focuses on the retail, hospitality and events sectors. Customers include Michael Hill, Starwood Hotels, Travelex and other notable global brands. E-tivity Corporation has invested A$30 mil-
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lion in research and development over the past decade in Australia equipping the company with a suite of WFM software that is now highly competitive on a global level. “We wanted access to a new market hungry for our workforce management solutions and also big enough to monetise that R&D commitment,” said E-tivity Corporation’s chairman and executive director, Phil Jones. “The US market, which is roughly 15 times the size of the Australian market, has that appetite. “Equally important, success in the US will translate into benefits for our Australian customer base in the shape of enhanced software solutions.” E-tivity Corporation’s WFM solutions include capabilities such as scheduling, time and
attendance, and work rule interpretation. These workforce management solutions, Jones said, have been improving labour efficiency and reducing costs in Australia for decades and are ready to be implemented in American businesses. “E-tivity Corporation’s US expansion is in line with HemiPhon’s strategy to occupy the cutting edge of workforce management solutions by combining the best IP with robust customer growth to hasten the development of next-generation solutions,” Jones said. The E-tivity WFM software is based on a concept developed by Jones. “I originally designed the software more than three decades ago as a direct result of my frustrations with scheduling staff at the McDonald’s franchises which I owned at the time,” said Jones. “We then developed the software into a commercial product that has been successfully implemented in 15,000 sites worldwide.”
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Cosmetic Dental Care Dr Omid Allan and Associates Artist’s impression of the Link over Rouse Hill Town Centre, Rouse Hill.
Govt courts industry with link expansion THE NSW Government will seek approval to expand the North West Rail Link (NWRL) to include eight railway stations and 4,000 commuter car parking spaces. By Mike Walls s a result of community feedback the project has been expanded and, subject to planning approval, the NWRL will now include: • An extra two stations at Bella Vista and Cudgegong Road, taking the total number of new stations to eight; and • Up to an extra 1,000 commuter car parking spaces to a total of 4,000. The eight proposed stations are located at: Cudgegong Road, Rouse Hill, Kellyville, Bella Vista, Norwest, Hills Centre, Castle Hill and Cherrybrook. Transport Minister, Gladys Berejiklian, recently held an industry briefing for 300 representatives of national and international firms at the Crowne Plaza in Norwest Business Park. The briefing was held in the spirit of fostering a close relationship between the State Govern-
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ment and industry to deliver the project. “This high level of interest from across Australia and around the world is another sign of the support for this project,” Minister Berejiklian said. “My message is clear – we want to work closely with industry to deliver this world class project.” “The NSW government is looking forward to the private sector’s ideas to provide the very best outcome for the north-west community and the state.” Major tunneling construction is expected to start in 2014. The NWRL will be the biggest transport infrastructure project in Sydney since work started on the Sydney Harbour Bridge 90 years ago. The 23 km link will cater for the future growth of the region. An extra 200,000 people are expected to move into the North West Growth Centre over the next 40 years, taking the region’s population above 600,000.
City site caters to visitors VISITORS to Parramatta can visit a new website for a guide to all the bars, nightclubs, restaurants and late night venues in the city. he website, www.parramattanights.com. au is a new addition to Discover Parramatta (www.discoverparra.com.au), and is central to the recently launched Parramatta Nights campaign, an initiative of the Parramatta Precinct Liquor Accord. “Parramatta is a vibrant city with a growing night time economy,” said Parramatta Lord Mayor, Cr Lorraine Wearne. “The Parramatta Nights website encourages people of all ages to get into the bustling nightlife along Eat Street and CBD areas. “We want to encourage people to visit our
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city, socialise and enjoy a fantastic night out, and that includes getting home safely.” The Parramatta Nights website allows visitors to plan their trip to and from Parramatta, with a comprehensive list of transport options, and maps that guide visitors from Parramatta, right to their doorstep. The website has mobile functionality, making it easy for people to plan their outing and journey home, in real-time, from their smart phones and there are plans to introduce a social networking component, allowing visitors to post their photos from their night out in Parramatta.
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Parra Firehouse at Parramatta Leagues Club and Western Sydney Business Access have teamed up to offer 4 lucky readers a $100 dining voucher. There are four $100 vouchers to be won. For a chance to win simply be among the first four people to email with the correct answer to this question. What is the missing word in this business name? _______ Firehouse. Email answers to wallburg@bigpond.net.au and include your name, address and daytime phone number. Terms and conditions: WSBA will notify winners within 24 hours of receiving the winning emails. The judge’s decision is final. Bookings are subject to availability. Rydges weekend: The winner of the Rydges weekend was Mr Craig Lawler at Harrington Park.
Cover story ..................10 Opinion ........................12 Workplace conflict .......20 Insurance .....................22 Office romance ............23 Legal ............................24
WSBA team Publisher and Editor Sales manager
Technology ..................25 Education .....................26 Improvement................27 Sales excellence ..........28 Social...........................30
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Michael Walls M: 0407 783 413 E: wallburg@bigpond.net.au Felicity Goscombe M: 0419 990 099 E: felicity.g@bigpond.com Red Dwyer Access Creative Don Everett
News Editor Design Illustrator Contributors Steve Brown – Etienne Lawyers. Dexter Duncan – Empower IT. Kate Hill – Deloitte Private. Tony Issa OAM – MP for Granville. Dr Geoff Lee- MP for Parramatta. Christina Mathews – Taggart Group. George Mavros – Leaf of Faith Training. Lindy McNocher – Gallop Solutions. Michael Mekhitarian – ATB Partners. Amanda Rose – My Business Help. James Solomons – Elite Financial Solutions. Narelle Stoker – Cumberland Business Chamber. Dr Jim Taggart – Taggart Group. Councillor Lorraine Wearne – Parramatta Lord Mayor. Jill Woods – Penrith Valley Chamber of Commerce National distribution Wrapaway Western Sydney Business Access ABN 38 102 914 027 Web www.wsba.com.au Mail PO Box 186 Kurrajong NSW 2758 Phone Sales and editorial 02 4572 2336 Administration/Accounts 02 4572 2336 Fax 02 4572 2340 Email: wallburg@bigpond.net.au
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WESTERN SYDNEY BUSINESS ACCESS JANUARY 2012
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NEWS
Century 21 integrates Wentworth property assets CENTURY 21 Australia which has six offices in western Sydney has purchased the underlying assets of Wentworth Holdings, one of Australia’s largest property management groups. By Mike Walls he purchase integrates the assets of Wentworth Holdings with Century 21 Australia, making it one of Australia’s dynamic property groups. Century 21 Australia’s property management arm offers property management and management services to property owners across Australia. “The purchase, and further integration of this property management business and Century 21 Australia, delivers a number of efficiencies and value-additions to both businesses,” said Charles Tarbey, Century 21 Australia owner and chairman. “Landlords from Wentworth will especially benefit, as the new business will have access to Century 21’s vast tenant database and property developments as they come through the network. “Through this acquisition, I expect to further make Century 21 a property investor’s paradise by helping this group keep their vacancy levels low while providing a comprehensive offering which delivers ultimate convenience to investors.” Charles Tarbey has been an executive director of Wentworth Holdings since 2008 and has built an understanding of Wentworth Holdings’ assets and growth potential. Wentworth Holdings Ltd started life in Perth, Western Australia and has been listed on the Australian Stock Exchange since 2003. The company employs more than 400 staff. Mr Tarbey said further growth is achievable from the purchase through new strategies and a closer partnership with Century 21. “Century 21 has built a global reputation and culture for out-
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Charles Tarbey
standing property and tenant care and I expect these factors to resonate well with property investors across Australia,” Mr Tarbey said.
Investors unaware of risks WESTERN Sydney investors should investigate the risks of setting up a self-managed super fund. nvestors setting up Self Managed Super Funds (SMSF) for the first time are exposing themselves to a myriad of risks, with many trustees unaware of the complexities of running their own fund. Research by specialist insurance provider, Self Super Insurance (SSI) has found almost 30% of SMSFs have limited awareness of their obligations, and more than half were only moderately aware. This means many are at risk of breaching their obligations, says SSI managing director, John Kelly. Research suggests the longer someone runs a fund the more they become aware of the risks. SSI provides insurance to SMSFs, covering situations such as ATO audits, prosecutions, penalties, excess contributions and trustee disputes. According to ATO data, the most common contraventions include: • Loans not being done on an arms’ length basis or not documented properly. • Administrative contraventions. • Contravening the ‘in-house asset’ rule by exceeding the 5% cap. • Misunderstanding the exemptions to in-house assets. Mr Kelly said the recently released ATO compliance program for 2011/12 stated a clear focus for the year ahead on newly registered funds and funds lodging their first annual return. A recent ATO report showed self-managed superannuation sector assets grew by double those of total superannuation industry assets over the past five years (122% compared to 60%) to June 2010. The report confirmed SMSF members tend to be older (over age 45) and have higher average balances and higher average taxable incomes than non-SMSF members.
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Accountancy, taxation and business advice
NEWS - PENRITH
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that’s sound, forward thinking & effective. Suite 4, Lvl 3, 20 Charles St, Parramatta T: 02 9687 1042 www.atb.net.au
Communication is the key How well do you share? The way we communicate in business has changed dramatically. While we live in an increasingly fast world sometimes the capacity to be faster comes at the expense of good communication.
ith the all powerful internet there is an abundance of information available. The application of this information can be characterised as knowledge. It often seems that there is little time to share knowledge among like minded individuals. I am a strong believer in the benefits of knowledge sharing. Knowledge sharing is a form of education that you simply cannot match for it’s authenticity and value. Learning from both the successes AND mistakes of your peers is a sure way to broaden your knowledge of business and assist you in applying a different set of values to your own situation. This is especially relevant in today’s business world. There are now more specialisations than ever in the professions and just about every type of business environment has had to adapt to new competitive pressures brought about by specialisation. As technology and media has opened the world, the power of niche has come into it’s own. Of course the more players there are in a given sec-
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tor, the more options there are for clients or customers. More specialisations means more opportunities for knowledge sharing because the more specialised a business becomes the more isolated it can find itself. In order to facilitate greater knowledge sharing, ATB Partners has been running a series of sessions we call ‘Boardroom Briefing’s for some time now. Our Boardroom Briefings are held over a two-hour lunch with reserved seating for 12 people to join us. Attendance is by invitation. We invite a guest speaker who speaks on business or a specific topic from their perspective or specialisation and the 12 guests are encouraged to interact and ask questions: the big picture purpose to provide a forum to help and educate each other by sharing knowledge. I would strongly recommend to business owners they initiate some form of event or meeting that fosters knowledge sharing and learning. Your staff, customers and clients will benefit in the long term.
Disclaimer The information is general in nature and is not indented to be advice. No person should act on any of the matters commented on without seeking professional advice in regards to your particular circumstances. Michael Mekhitarian has over 20 years experience as an accountant. His firm ATB Partners has had offices in Parramatta for over 15 years. For further information Mike can be contacted at mike@atb.net.au or 9687 1042.
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Penrith Mayor, Greg Davies and a representative from the Kunshan Number One People’s Hospital in China.
Knowledge sharing a focus A FRIENDSHIP agreement has been struck between the Nepean Hospital and Kunshan Number One People’s Hospital in China, allowing student and doctor exchanges, knowledge sharing in the area of science and technology and collaborative medical research. enrith City’s strong relationship with Kunshan has been growing since an official Friendship Agreement was signed between the two cities in 2003. Health, education and economic development has been the key focus of previous delegations. The hospital agreement can be attributed to a successful trip taken by Penrith Council and business delegates to Kunshan last October. Penrith City Mayor, Greg Davies said this latest visit marks another important step in the
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friendship between the cities. “The relationship between Penrith City and Kunshan has already brought many benefits to both cities. This new agreement brings with it a promise that our friendship will continue to grow and we can look forward to more shared advantages in the future.” Local students will also benefit with two exchange initiatives being developed, one with Kingswood High School and one with the University of Western Sydney’s College of Health & Science.
City car parks patrolled PENRITH City Council has responded to requests by local shopping centres to help monitor high-use car parks, ensuring that shoppers get parking priority. here’s nothing worse than circling around a shopping centre car park searching for a spot when you just need to duck in to pick up a few items,” said Penrith Mayor, Greg Davies said. “Our local shopping centres have requested Council to assist in increasing parking turnover to reduce shoppers’ parking hassles. Enabling more people to use the centre is also a plus for the local economy. “Our rangers will be checking that people abide by the allocated parking times. This is important to give shoppers priority over people
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misusing the centre’s facilities by using the space for all day parking. “Since October our rangers have been on the lookout to prevent cars misusing accessible parking spaces and overstaying the indicated times, so it’s best to check how long you can park before you shop. “The initiative is part of Council’s wider goal to ease congestion and free up parking in our city centres. The shopping centre car park patrols are in addition to our ongoing patrols of Council car parks in the City Centres and other locations, including the Nepean Hospital precinct,” Cr Davies said.
City lauded for recycling PENRITH city has won its fifth award for the innovative domestic organic recycling and composting service. enrith City Council and the community were recognised in the Waste Avoidance category at the Local Government and Shires Associations of NSW (LGSA) Local Government Excellence in the Environment Awards. The Council also won the Sustainable Procurement Category for its Sustainable Procurement Policy, which has supported various initiatives including: • Use of the Sustainability Revolving Fund to finance projects ranging from an Energy Performance Contract to lighting upgrades and solar panel installation.
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• Incorporation of sustainability criteria into relevant contracts and tenders. • Training and resources for staff making purchasing decisions. Penrith City Mayor Greg Davies said the awards were a welcome recognition of the efforts and commitment of the community and Council working together to build a more sustainable City. The annual Environment Awards recognise NSW councils for accomplishments in managing and protecting the environment. The awards were presented by Environment Minister, Robyn Parker MP at the Museum of Contemporary Art.
WESTERN SYDNEY BUSINESS ACCESS JANUARY 2012
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NEWS
Hop helps Harris Park business
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Indian food is a major attraction at Harris Park.
Penrith controls destiny BUSINESS and property owners in Penrith and St Marys will have a say in their own destiny with the completion of Centres Management Review by Penrith City Council. The Review aims to create new entities for St Marys and Penrith City centres. Penrith mayor, Greg Davies said the council undertook the independent review to assess the performance of the centres in comparison with best practice both nationally and internationally.
CONTINUATION of the Harris Park Hop will benefit businesses in the precinct. arramatta’s free shuttle service, Harris Park Hop will continue to support businesses of the area with the service being extended until March 2012. The Hop takes lunchtime crowds from the Parramatta CBD into Harris Park. The many restaurants, experience cultural venues and historical sites in the area will experience increased visitation from the move, says Parramatta Lord Mayor, Cr Lorraine Wearne, Parramatta City Council started the free bus service in August 2011 as a trial but recently resolved to extend the service until the end of March 2012. Cr Lorraine Wearne, said the service is about giving back to the
BRIEFS
Water plant opened
Elizabeth Farm attracts visitors all year round.
local Harris Park community, boosting visitation into the area and helping local businesses succeed. “One of the main objectives of the Harris Park Hop bus service is to improve accessibility into Harris Park and provide a hassle-free mode of transportation and offer Parramatta CBD workers a great multicultural dining destination during busy lunch time periods,” Cr Wearne said. “Harris Park is New South Wales’ largest Indian precinct and offers a fantastic retail and dining experience with a distinctive character,” Cr Wearne said. “The area also has a rich cultural heritage, home to one of the oldest buildings in Australia including Hambledon Cottage and Elizabeth Farm. “Visitors will simply love the diversity of what’s on offer from the multicultural flair with authentic cuisine from all over the world, including Italian, Lebanese, Indian and Greek to intriguing historical attractions. The service will run from the Parramatta CBD to Harris Park during weekday lunch hours from 11.30am to 3pm, and will do 14 trips every 15 minutes. For more information visit www.parracity.nsw.gov.au/harrisparkhop
SYDNEY Water has opened the Rosehill Recycled Water Scheme and the Fairfield Recycled Water Plant. Finance Minister Greg Pearce said: “This is a win for Western Sydney as the NSW Government gets on with the job of supplying quality recycled water, enabling a sustainable water supply for the future.” Initially the scheme will supply over three billion litres a year of high quality recycled water to five major industrial customers in the Rosehill and Smithfield areas.
Savings on power BLACKTOWN City Council has launched a free Home Power Savings Program that could save residents around $265 a year. The program offers eligible households power saving devices such as a standby saver power board, shower timer, water efficient shower head, tap aerator and draught stoppers that come fully installed at no cost. For information call 1300 662 416 or visit savepower.nsw.gov.au.
Financial health in 2012 REASEARCH from the University of Sydney, shows 50% of Australians make New Year’s resolutions and the third most common resolution is a commitment to financial health –whether it is getting out of debt, or saving more money, or making more money. But nine out of 10 people give up on their resolution after the first 30 days.
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NEWS
Single female executives face finance challenges SUDDENLY single western Sydney female executives need a wake-up call says, ďŹ nance advisor Susannah Kulincevic. hen several successful single women came to financial adviser, Susannah Kulincevic seeking financial advice she embarked on a research project into the financial circumstances of single female executives.
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Finance advisor, Susannah Kulincevic.
The women were aged in their 3050s who were all successful in their chosen careers -executives, CEOs, and business owners, and, whether by choice or by circumstance were managing their own finances for the first time in their life.
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These women had to overcome a number of unexpected obstacles in their career path, including outdated beliefs and prejudices in the workplace, inaccessibility of professional advisers, and the sheer difficulty of having to deal with most of these issues on their own. In a former life of many of these women, managing the finances was traditionally the husband’s role; now they were sorting out their own finances, learning as they went, and finding that not all help is reliable. Together these obstacles made creating financial independence particularly difficult. Susannah’s research found that the ‘life path’ to becoming a successful, single career woman was particularly difficult. While these women might have always been conscious of the eventual need for financial independence, it generally wasn’t the focus in their lives. Raising a family was especially important to them as well. However, most didn’t expect to be raising kids and building a career on their own. Even though most women who find themselves single again are able to get a job, pay the rent and feed their
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• Suddenly single female executives may face financial challenges.
kids, they often find that they now have less than half a working life to accumulate a lifetime’s assets. Susannah’s research developed the following 10 tips for the suddenly single female executive: • Those who quickly got back to a stable financial position made an early decision about whether they wanted to manage their own finances or whether they wanted to delegate it to an adviser. • They were prepared. Whether you’re managing your own finances or you’re interviewing potential financial
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advisors, it helps to organise your financial documents ahead of time. • They were open and honest about their current situation. Don’t be afraid to let your emotions out. • They had clear goals. Evaluate your personal goals on a financial level. What is important about money to you? • They put a lot of effort into building a strong team of financial support and advice around them. Ask your friends for recommenda-
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tions if you’re searching for an advisor. They built up their financial knowledge and took an active part in managing their finances. Knowledge is power and there are now many avenues and support available to women who want to improve their financial literacy. Your financial team should be made up of people who make you feel good about yourself and motivated to achieve your goals. The most successful women Susannah spoke to were the ones who didn’t accept the first thing they were told and insisted on options. A good financial advisor will be able to offer you options based on your financial needs. Have a clear understanding of your risk profile. Make it clear to your potential advisor how you’d like to be involved. You are not alone. Join the Financially Fit in Forty Days Challenge on Facebook. This community provides you with the opportunity to meet other single career women who are taking back control of their finances.
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1HZWRQ 5RDG :HWKHULOO 3DUN 7HO RU )D[ (PDLO SDXO#ZHVWHUQFKDLUV FRP DX ZZZ ZHVWHUQFKDLUV FRP DX WESTERN SYDNEY BUSINESS ACCESS JANUARY 2012
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NEWS - FEATURE
Make cash flow forecasting your New Year’s resolution Subtotal
SUCCESS in business sometimes requires you to push aside your passion for your business and spend time sorting out your finances.
Monthly total Running total
want the report to show monthly amounts covering the next one or two years. Head up the first column ‘Cash Movement’ and across the top of the table enter the months of the year as the next column headings, like this: Cash movement
By James Solomons CA id you realise that a major part of managing your finances can be taken care of using one very simple tool – a cashflow forecast. This report can be done annually and will help you see whether your anticipated income will be able to cover your projected expenses. It will also help you: • Realise and understand when cash is available. • Plan and prepare for expansion, stock control and taxes. • Analyse and anticipate key expenses. Software packages can be purchased to help you generate a report. Or, you could tailor make your own. Here’s a simple method to do it yourself. Step 1 – Create a cashflow forecast Using a spreadsheet, create a table with appropriate headings. Choose the length of time over which you want to run your report and the periods within that time. For instance, you may
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January
February
March
In the first column, insert a heading entitled ‘Income’ and beneath that heading detail each source of income. Add a row at the bottom for the subtotal. Then insert a heading ‘Expenses’ and itemise each expense under that heading. Set up a subtotal at the bottom of this group. Next enter a row which shows the total of the income rows minus the total of the expenses rows for the month. Finally, insert a row for your running total. In this row, add your profit or loss for the period to the previous running total and this will show your financial position at the end of the period. Your table should start to look like this: Cash movement
January
February
March
Step 2 – Input the data Using your accounting records, enter your actual income and expenses in the applicable columns. Also, estimate and include any projected expenses in the coming months. Be realistic – don’t overestimate income or underestimate expenses. You can do a forecast either with figures including GST or excluding GST. However if you record figures that include GST make sure you create an ‘expense’ item to record GST payments due ! When all your information has been entered, it should be easy to see where your money is coming in and where it’s going out: Cash movement
January
February
March
11,000
9,000
10,000
Sales of B
9,000
10,000
8,000
Subtotal
20,000
19,000
18,000
2,000
2,000
2,000
Income Sales of A
Expenses Rent
Income
Telephone
350
300
260
Sales of A
Stationery
125
90
200
Sales of B
Advertising
Subtotal
Subtotal
2,475
2,390
3,260
Expenses
Monthly total
17,525
16,610
14,740
Rent
Running total
17,525
34,135
48,875
Telephone Stationery
800
Cashflow forecasting can also be used as a budget planner. For example, you may know
your rent will be increased at the end of the year, or that you’ll have numerous bills to pay next month. So you can make sure you keep enough funds in your bank account to cover these expenses. Your report will also indicate if you can afford to make an investment in your business; whether that means buying some new equipment, paying for staff training or an advertising campaign. Step 3 – Update regularly Once you have completed your cashflow forecast, it’s important to keep it up to date. That means revisiting it regularly, say once a month, so that you’re always aware of how cash is flowing through your business. Ideally, you want to be in the position where you can control your finances, and step in and take action if necessary, so that you have enough cash to take care of all your expenses. The benefits An annual cashflow forecast will give you all the information you need to keep on top of your business financially. You’ll have a clear vision of where and when you may need to cut back on spending. At the same time, it will highlight some potential areas where you can invest that little bit extra. Not only that, once your cashflow is on track, you won’t need to lose sleep worrying about meeting your expenses and the everyday running of your business. You’ll have more time to do what you do best and enjoy your business! James Solomons is a Chartered Accountant and a Partner at Elite Financial Solutions based in Epping. Contact him on 02 9868 3900 or at james@elitefinance.com.au
I'm Geoff Lee, your local MP. As a former Parramatta small business owner, I understand the needs of local business. If you would like me to visit your business or to help you deal with state government departments and agencies, please contact me.
Geoff Lee Member for Parramatta
My contact details: 90 George St Parramatta PO Box 1126, Parramatta NSW 2124 Ph: 9891 4722 F: 9891 5618 parramatta@parliament.nsw.gov.au
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COVER STORY
The banker from Struggle Street AS one of Australia’s highest paid executives with Macquarie Bank, Bill Moss AM enjoyed a life of privilege and success. ince retiring from Macquarie Bank, Moss now 57, has dedicated his life to philanthropy and he is just as passionate about the global challenges for disabled people as he was creating businesses. The title of his recently released book called Still Walking, is a reference to the degenerative muscular dystrophy condition called FSHD which has affected him his entire life. His memoirs are moving, inspirational and at times funny. They are an account of how a western suburbs boy rose to the heights of professional success, all the while concealing the grim secret of his disability from his colleagues, friends and most of all from himself. Bill Moss agreed to this exclusive interview with Western Sydney Business Access editor, Mike Walls. For information about how to buy copies of Still Walking go to www.wsba.com.au
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Bill, thank you for talking with us and congratulations on an inspirational book: one immediate impression that struck me is that growing up at Guildford, you didn’t seem to sense that one day you’d be as successful as you became. Is that correct? No, not at all, I was the classic, you know, 1960s family. We lived at Guildford West in basically half a house, half a fibro house in fact, as you did in those days because you couldn’t afford the whole house. The toilet was down the backyard and the bathroom was down the backyard and you built the rest when you could afford it. What was your motivation for writing the book? I decided because I had a disability and I’m pretty privileged because I did manage to rise through the business ranks and become one of the highest paid executives in corporate history that I had a story to tell. I’m not embarrassed about that, I’m proud of that. But doing that with a disability and coming from my background where I didn’t go to Harvard or have a privileged upbringing makes it interesting, I hope. It (the book) means many things to many people. How is your physical condition at present? I am 57 and about six years ago I got told I had the muscles of a 90-year-old. At 60 I reckon I’ll be about 120. The brain, in fact gets smarter. It’s almost inversely related, your brain gets a bit more active. FSHD is a disease; they call it the slow death because it’s the slow breakdown of your muscles in your body. There’s usually one thing you can’t do today that you could do yesterday, like pick this spoon up but tomorrow I won’t be able to do it. Where do you think western Sydney is heading in terms of its potential? Well to me Western Sydney is like a great untapped, oasis. If you could find data that was clearly articulated on GDP, productivity and workforce skills I think Western Sydney could stand alone as a city. It would be outstanding. To a large extent I think it’s pulled down by the fact that it’s attached to the rest of Sydney. It’s like a weight around its neck because you get brain drain, you get a flow of capital. People who are successful in Western Sydney tend to go out of the area. The money that’s earned in the area generally goes outside the area for investment. OK, so what do you do to retain the region’s resources? Well, I think it’s got to have its own identity. People like Bob Carr were speaking about it 10 years ago. Western Sydney should have its own brand. But first it’s got to get its act together and
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it doesn’t even do that because you’ve got competing councils and a range of competing agendas. Are you saying the region lacks leadership? There’s strength in unity and there’s no leadership, right. To me I’d like to see it re-branded, you know, I don’t look at it as Western Sydney anyhow. Rebranding a region is not a simple task is it? Well, it’s been done before in Sydney. When I grew up what was Brookvale? It was an industrial area and it has since been re-branded …… that whole northern area was re-branded to God’s country and now they’ve got the beach district. The southern shire’s been rebranded. I think you can re-brand it. I think you just need a consensus on what you’re going to re-brand to. Should regional leadership come from Government? No, it will never come from the gov-ernment. It will nev-ver come from government agencies, it m will never come from me that, it’s got to come he from leaders and the leaders have got to be ally critical and actually out feel passionate about the area. There should be discussion about how we change the image, how do we change the culture, what are the main themes we want to see in Western Sydney. Is it education, is it arts, is it music, is it football …… what do we want to see? There’s space for all of them, right, but what do we want to see, what do we want to be ... a theme? The classic is if we had our own licence plate holder on a car, you know, what would it say? Who would fund all this? Well, I think the money comes, right. If you can bring greater economic activity back to Western Sydney then everyone wins. Events, cultural events, food festivals, art festivals - there are so many events that are held around the CBD in Sydney where people make money, where 70% of the people who attend are coming from Western Sydney. Why aren’t these events in Western Sydney? You know what? No one’s thought about it. There is also the challenge of changing mindsets. It that possible? Well, I think if you want to change the world you can change it. It starts with education or research and once you’ve got education and research you can work out what you want and then the solution comes. Where we all get it wrong is we all try and come up with quick solutions without actually doing the research and the educating. And to me there are a lot of things that can work in Western Sydney very, very well, like how easy would it be to establish parts of Western Sydney as a food centre where people actually come for certain times to explore different foods. You’ve got some of the greatest cuisines you’ll find anywhere in Australia. It would be very simple to pick different destinations in
Bill Moss overlooking the Sydney Opera House and inset, the cover of his book.
Western Sydney over a five week period or something and have a food festival and you travel from one suburb to another suburb and experience the delights of the world, right. What does it need? All it needs is someone to actually put the idea together because people make the food, the restaurants are there, then you’ve got to publicise it, promote it, you know what….the people will come and they’ll come from Western Sydney to start with. You’re very passionate about this area . . . . I’m always passionate about it because I grew up here. I’m a Parramatta fan, always have been, you know, what’s that saying ….. you can’t take boy out of the west but not west out of the boy. My mother still lives in Guildford West. I don’t go there as often as I would like to, to be honest, but it’s always a part of your life. I’ve got no desire to go and be a storm trooper in the Eastern Suburbs. To what extent do you think your upbringing shape your business acumen? Very much so - I think success is linked to many, many things. Definitely you’ve got to be able to work harder; you’ve got to be able to work smarter, that’s the first thing. The thing is you’ve got to have something to work for. If you’re handed something on a plate you’re never going to achieve. You’ve got to do the hard yards in life. From the age of 15 I used to work every spare minute, either with my father or directly to earn money. I can’t tell you what an influence that had on my life. Can business skills be taught or are they innate? No, I think you’re taught. I don’t think it’s in your genes, put it that way, I don’t think it’s your genes; you’re a product of your environment. But
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To a large extent Western Sydney is pulled down by the fact that it’s attached to the rest of Sydney. It’s like a weight around its neck because you get brain drain, you get a flow of capital.” I think a lot of the caution comes from just being street smart. Now, where do you get to be street smart? Well, you’ve got to be in the front line. You’ve got to actually be working in the street to get street smart, not only your street. You learn a lot by just growing up and having to work things out for yourself rather than if someone just gives it to you. That’s why I’ve always been a great advocate for work experience for kids. Does failure in business or life mean the end? It doesn’t, you’re reborn, right. There’s reincarnation in the business world. It’s like a bankruptcy. I tell a few stories in the book about how 90% of the property developers I’ve ever met have gone bankrupt and yet 90% of the projects are successful. Arrogance among property develContinued on page 11
WESTERN SYDNEY BUSINESS ACCESS JANUARY 2012
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COVER STORY Continued from page 10
opers used to be 90% of the market. Today it’s about five per cent. Five years ago it was 40%. There is a new era of more professional players coming but the problem was we went through 30 years, in the 70s where we had inflation and it really went up every year. We’re probably now into a decade into a period of another 30 years where everything goes downwards or sideways. Now, most people still don’t realise that and they’re waiting for it to go up again tomorrow. So the inflation is great if it’s running in your favour and you’ve got a lot of debt and that’s good but if your asset value stopped going up, yeah, you’ve got a real huge problem. So what we’re seeing globally over the last decade is a long period where business’s margins all around the world have to adapt; governments are trying to adapt to how will they enter an environment where inflation just doesn’t drive up asset values and taxes every year and to me that’s one of the long-term things here ….. how’s the world going to adjust to that, trying to understand that. I haven’t done any property development in NSW since 2004 and 2004 was too risky. Now, I’ve been watching for three years while everyone says “there’s a shortage of stock, there’s a shortage of stock, market’s got to go up” and I’ve been saying “no, it won’t.” It won’t go up, it’s not the shortage of stock, it’s the fact that the economy’s not good. This is a different world we’re in. This is a different environment we’re moving into and it’s an exciting environment, it’s an exciting environment for business for those who can get it right, it really is, and I think in this market those people that can survive the next few years in this business cycle will do very well. Across all sectors? I think all sectors. This is the recession we’ve never had. Despite the statistics showing we’ve never been in recession it is tough, very tough.
And that’s forcing people to rethink about how much debt they’ve got, how they use their capital, how they use the Internet, which is a whole new dimension to business. What are your views on today’s business environment? With the more medium-sized businesses I look at now I find the thing that’s risky with the growth is the client base that they want to access. There’s a shortage of new clients that they can put into their business to grow and when I look at three or four different clients in different industries I look at their different client base and I think “this is really interesting, if you four guys got together around a table you could all benefit dramatically here.” And, yes, there are privacy issues and yes, yes, yes, you can get around all that but, you know, quite frankly, that leads me to the point where I think there’s a lot of value in business associations. You mean people banding together to solve a problem? Yeah, yeah, I really do. It’s probably been and gone several times in the history of business but right now, I think a group of businessmen coming together once a month to talk about new trends in business or ways they can cross-sell their products to different clients like I’ll give your clients a 20% discount if you give my clients a 20% discount and realising that your client can be your client not only because he likes your product but because you can introduce bargains to him or other services to him. There’s a gap here in western Sydney for a more of a senior level and active network where people are actually doing deals with each other rather than connecting in a situation where you go and see a speaker in a nice place and you get a newsletter. One of the great things about business generally around the world, particularly Australia, you don’t get many people who can actually stand up and say “come on, come this way because this is what’s going to
WESTERN SYDNEY BUSINESS ACCESS JANUARY 2012
Bill in the front garden of the family home at Guildford West, NSW in 1961.
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People are looking for leadership all the time, that’s why they read the papers and they watch television.” happen.” People are looking for leadership all the time, that’s why they read the papers and they watch television. Warren Buffett is a classic, you know, veryone says “What does Warren think?” Right. Well, actually if you look at his financials he hasn’t done too well the last few years.
What are the common mistakes businesses make? I think there’s lots of them but I would definitely say trust, too much trust in people around you. A lot of people in business, believe it or not, will never ever look at their own financials, they’ll trust. I’m talking small businesses here. They just leave it to their accountant and this can lead to fraud. The reality is fraud’s rampant, it is rampant and a lot of people that are victims are small business people. Lack of creativity is another major problem. Creativity needs to be balanced but I don’t think a lot of businesses have got enough creative people in them. And I think you see it on boards. Look at your boards; who’s on the boards, generally accountants and lawyers. The stronger the skill base the more powerful you are as an organisation. But when you go down into your sales teams and your strategists you’ve got to have creative people, you’ve got to have people that can tell you that whatever you’re doing is being done better in another part of the world. The capacity to see the future and consider what the environment will be like five, 10 years down the track is very important. What does power mean to you? That’s a really good question. It can be about influence but I think you’ve got to control it. I think it’s like everything, if it goes to your head it’s dangerous but I think power can give you the confidence to do things that you normally wouldn’t do. So if you’re successful in your own right and you’ve achieved a lot and you’ve got some constructive good ideas on what you want to do you’re more likely to pick up the phone and talk to the Premier or something. Is power attractive? Well, it is to politicians isn’t it? If you said what drives me I’d say it’s not power, it’s success and wanting to make a change. And there are no shortcuts to success? There’s no shortcuts, right.
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OPINION
Population growth creates need for jobs I hope everyone had an enjoyable break and made the most of their time with friends and family over the festive season.
By Councillor Lorraine Wearne Parramatta Lord Mayor
ith the new year now underway, I’m looking forward to building on the work that has gone into making our region one of the most significant in the country. Of the seven million people predicted to be living in Sydney in 2050, four million are forecast
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to be in Western Sydney. As many of you would know, with more people, comes the need for more jobs. In the Parramatta CBD alone, we’re faced with the challenge of generating a further 27,000 jobs by 2036. To help fuel more commercial development, Parramatta has proposed some significant changes to its city centre planning controls. They provide incentives for the development of design-forward, energy efficient buildings; ensure the preservation and integration of heritage buildings; and the creation of visually interesting and ‘active’ streets. We’ve already seen some signs that Parramatta’s commercial and residential landscape is beginning to change and over the next 12 months I expect to see an even bigger shift. Scheduled to begin construction in early 2012 is the Crown development site at 45 Mac-
quarie Street; an excellent example of mixed use design that will invigorate the CBD. This development sees 370 apartments, 3,000 sqm of commercial floor space and 1,500 sqm of ground floor retail space within a 25-storey building. The end value of the project is $300 million. Late last year Council called for expressions of interest for its Lennox Bridge Car Park site, which upon completion will offer a mix of residential and civic space that will assist with Council’s aim of rejuvenating areas along its river foreshore. Work is also currently taking place on the Eclipse Tower - an iconic and uniquely designed landmark building located next to the Rail and Bus Interchange. Arranged over 19 levels with 25,660m2 of Net Lettable Area (NLA), Eclipse Tower is targeting a 5 Star Green Star Office Design v2 Rating by the Green Building Council and a 5 Star NABERS Energy rating. New developments need to be supported by transport infrastructure to connect our rapidly
expanding Western Sydney population to new employment and training opportunities closer to homes. The Western Sydney Light Rail/Metro Network proposal, recently adopted by Council and tabled to Infrastructure NSW, calls for the introduction of a light rail system to support the growth of Western Sydney and the emergence of knowledge-based employment precincts in Parramatta. Light rail offers a quick-to-build solution for Western Sydney in between bus and heavy rail options and will facilitate fast and frequent rail services. These significant developments and proposals are signs that Parramatta is a competitive retail and commercial marketplace prepared for the challenge of leading Western Sydney into the future. I am excited about the progress we have already made and look forward to watching new developments in Parramatta begin throughout 2012.
Common-sense changes to cut red tape NEW work health and safety laws replaced the occupational health and safety (OHS) laws in NSW on January 1, 2012.
By Dr Geoff Lee State Member for Parramatta
eedless bureaucracy and red tape is the bane of business in western Sydney and across NSW – at best it’s a timeconsuming nuisance, at worst it can be a barrier to new investment and growth. And with global financial uncertainty and weak domestic consumer spending undermining profitability at present, business in NSW needs a regulatory framework that doesn’t unduly interfere with productivity and employment. Workplace health and safety laws were at the top of the NSW Government’s red-tape hit list when elected last year. The laws as they stood were a piecemeal, convoluted mess that inflated compliance costs and created uncertainty for business. Thankfully, 2012 has brought some relief for western Sydney businesses suffocating under the burden of red tape with the introduction of the new Work Health and Safety (WHS) scheme on 1 January. The new scheme, as announced by NSW Minister for Finance and Services Greg Pearce, will simplify the laws in a common-sense way that reduces red tape and compliance costs without affecting the integrity of the overall workplace health and safety framework or compromising business accountability.
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The NSW Liberal/National Government is one of the first governments in Australia to introduce this new scheme, and it represents an historic overhaul of workplace health and safety laws. By harmonising workplace health and safety laws across jurisdictions, compliance will be made easier and more cost-effective for businesses operating across multiple states. This is a continuation of the NSW Government’s commitment to making it easier to do business in this state, following on from changes to the law last June that removed various unfair procedural requirements such as the reverse onus of proof on workplace health and safety prosecutions. The NSW Government has for some months been working with businesses, employer groups and workers to create awareness of the new scheme and what it means for them. A big part of this has been the provision of $5.4 million in grants to 42 organisations across the state, and the scheduling of 28 training sessions to be coordinated by WorkCover. More information on the changes to be introduced can be found on the WorkCover website at www.workcover.nsw.gov.au. The website is a handy tool for small and medium-sized businesses who want to know how the new scheme will affect them. More detail is available on changes specific to certain business types and lines of business, as well as on transitional arrangements that apply to some of the changes introduced. Businesses can also register on the WorkCover website for ‘webinars’ that will explain key areas of the new WHS Act and Regulation, what the changes mean for their business and workers, and how best to prepare for the introduction of the new laws. The NSW Government will continue to
work with industry in 2012 to ensure that the new requirements are understood and implemented. I encourage everyone who is involved in
small and medium-sized enterprises in western Sydney to consult the website for information on changes that may affect themselves and their business.
WESTERN SYDNEY BUSINESS ACCESS JANUARY 2012
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OPINION
Importance of a one cent movement WESTERN Sydney businesses must better understand any movement in the Australian dollar and plan accordingly.
By Kate Hill recent survey reported 41% of CEOs of small to medium sized businesses claimed they weren’t affected by the Australian dollar. According to the survey of 300 SME chiefs by The Executive Connection, only 21% said their business has been adversely affected while 36% thought their business has been affected positively. I would be surprised if 41% of business weren’t affected in some way - that’s a large number of organisations that assume it has no impact on them. The first message is to understand how it is having an impact. We know the dollar is going to have a knock-on impact in terms of inter-
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est rates; affecting the price of commodities; or staff ’s disposable income being affected so they could be asking for more wages. Even if it doesn’t have a direct, immediate effect, it’s important to understand in the next few months what the dollar can have an impact on and then understand what that financial impact can be and make sure that you have planned accordingly. A good starting point for better understanding is to ascertain whether the organisation has a good appreciation and strategy for what a one cent movement against the US dollar means, what impact that movement has on their business. It’s not just in the direct business. It’s also in the market they’re dealing with; so those involved with chasing the source of the dollar need to understand how it’s affecting the market they are actually selling into. For direct business it’s ensuring they understand what impact it has on their overheads, their revenues; so if the dollar goes up or down by a cent do they know what impact it is having on their profit and loss and balance sheet? For some businesses advantaged by a high dollar there are some timely opportunities. It increases their buying power, so there-
fore if you are looking at importing technology, if you are looking at importing know-how, if there is some expertise overseas you want to bring on-shore then it is probably a good time to do a deal in terms of bringing that expertise on shore, because if you are paying in US dollars it’s costing you less money. It may even be worthwhile prepaying for longer term contracts while the Australian dollar is relatively strong. Allowing for consideration of the tax consequences, using your current strength to pursue longer-term strategies could well be a good
move. So where next for the Australian dollar and small to medium sized businesses? There’s a lot of talk about where the US economy is going to go with these recent job numbers and what the expectations are for the US dollar. Businesses must better understand such impact because when the dollar starts moving it can really affect strategies significantly. Kate Hill is a partner at Deloitte Private based at the company’s western Sydney office in Parramatta. Contact her on 02 9840 7021.
Fresh look at Granville car parking A LARGE commuter car park at Granville is long overdue. of commuters in the electorate and I recently facilitated a meeting with the Department of Transport, the Lord Mayor of Parramatta, Clr Lorraine Wearne and the general manager of Parramatta City Council, Dr Robert Lang to look at possible solutions to this problem. It was clear from our meeting that The Minister for Transport, Gladys Berejiklian, has an open mind to the electorate’s parking needs. The department is currently conducting a
review of the electorate and will be identifying suitable sites to address the parking shortfall. A costing analysis and funding availability will also be factored into the equation. Establishing a large commuter parking facility in Granville brings more than the obvious benefits. The flow on to small businesses in the area would be excellent. Tripling the number of travellers that come to park and ride on the trains or buses in Granville will create a demand for services and products for businesses that need an added
boost to their bottom line. Businesses such as dry cleaners, hair salons, convenience stores, car maintenance, child care and many more would get an injection of demand whilst delivering convenience and certainty to travellers. I will continue the conversation with the Department of Transport and I look forward to updating you on this important project in the Granville electorate. Your comments are welcome on P: 02 9637 1656 or E: granville@ parliament.nsw.gov.au
By Tony Issa OAM State Member for Granville
Granville railway station.
s a long-time resident of the Granville Electorate I have watched the area grow. Families and businesses have moved into the area establishing themselves in a locality that is within close proximity to Parramatta CBD, Sydney, Liverpool and Blacktown. With petrol prices making car travel unreasonable on a daily basis, commuters choose to travel by train or bus and this choice that brings many travellers into Granville. The Granville railway station is a destination of choice. People drive to Granville as a station of preference because the train connections to key inner City and Western suburbs radiate from Granville. Getting on the train at Granville often means quicker travel time in comparison to catching the train from other stations. That choice then delivers more time at home with the people who mean most to us. Establishing a large commuter car park in Granville is long overdue and was promised by Labor at the last State election, without any funding being set aside for this project. This is an issue that eats at the very heart
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OPINION
Networking: Just keep it simple sweetheart Why do I think networking is an empty word? Because networking is not connecting.
By Amanda Rose VERYONE is a networker these days. For some, the ability to have conversations with other human beings and collect lots of business cards suddenly makes them a “professional networker” Unfortunately a majority of these hopeful networkers seem to forget one important thing. Networking is not connecting. When walking past little pockets of people at business functions, I would often hear people promoting themselves. Having information forced upon us is not a pleasant experience, so why do it to others? People generally love to talk about themselves and sometimes just asking the right questions can promote a lively exchange of interests and ventures.
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hand out all of theirs, they haven’t networked successfully. So, if you feel you’d like to make the transition from a networker to a connector, here are a few pointers to get you started: Choose the right event for your business. Don’t go just because you know the people or it sounds fun. Research those who are attending, get to know them so you arrive ‘warm’ to the audience. Speak to a few people – show your genuine interest in their business. Look for opportunities within the conversation on how your knowledge and expertise can help that person now and in the future, with valuable information/tips. Securing a firm connection. If your number one target it not as responsive as you hoped - as a backup always have one or two others on your list to connect with that would also be beneficial to your business. Review your calendar for 2012 and hand pick the right event to attend. Resist the temptation to go just because you think you should or because it sounds fun. Be strategic.
Anyone can talk to another person and exchange cards. However, it takes a special kind of person to be strategic enough to connect to the right person at the right event. Sticking to the K.I.S.S principal (Keeping It Simple Sweetheart), we are better off choosing one event that attracts our target audience. Strategically selecting one or two people whom we believe we could add value to, or whom we wish to connect with and focus on building that connection. It is better to leave a function with one positive connection than to have networked with a 100 people and leave exhausted and empty handed. The business world doesn’t help much either. Many business functions are now called “networking opportunities” in order to attract more people. These events tend to spread the net too wide, reducing the opportunity to focus on a ‘target’ group. It’s my observation, at business functions, people often fall into two categories. The old school type, who generally attend to socialise and catch up with friends. And the ‘networkers’ who with a sense of ‘panic’ feel if they don’t leave with a handful of business cards or
Amanda Rose is a connection specialist who runs My Business Help Radio Program on Alive 90.5FM, Wednesdays 4-5pm. Contact her at Amanda@amandarose.com.au
Another important milestone looms THIS year marks another important milestone for the Cumberland Business Chamber.
By Narelle Stoker here aren’t many Chambers which can say they are 25 years old and they are continuing to grow. Our Silver Anniversary year has only just started but already we’re busy doing what we do best: helping businesses to flourish. We have been instrumental in bringing together stakeholders from local and state governments and industry associations to discuss the possible ramifications of a major arterial link road into the Wetherill Park-Smithfield region. The road has the potential to bring local infrastructure to a standstill. I have been campaigning politicians and councillors and as a result a set of traffic lights is to be installed to manage traffic flow. Another aspect of this project has been the need to raise awareness with local businesses many had no idea their access road was about to become a “mini highway”. This is just one of the many matters we han-
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dle each year. It can be anything from car parking to vermin infestation to rubbish removal to resurfacing of roads to a new fire station (another CBC “victory”). Businesses know that having a respected organisation “go in to bat for you” is worth the membership fee many times over. The Chamber is apolitical and it works with both sides of government at all levels. This neutrality helps us to broker negotiations and develop alliances when other groups are unable to. We are a not-for-profit incorporated association. We do not receive any government funding and we are wholly membership owned. Our calendar is already filling up and we are planning on more than doubling our activities in 2012. Every month After5 functions provide an informal, relaxed environment for members to make new contacts and learn about the synergies between their operations. Building businesses is all about relationships. We prefer to do business with someone we can trust. You need to take the time to get to know them. In that place of trust and respect members are more likely to work with you or refer you on to someone else. If there are 60 or 70 people in the room there are potential links to 600 or 700 more people out there in the business world. Our B3 Business Building Breakfasts at the Chifley Eastern Creek Hotel provide members with invaluable information about practical as-
pects of running their business. Have Your Say is an opportunity to put forward issues or suggestions which are then escalated to the relevant stakeholders. Coffee Club allows people to ask me questions about the Chamber before joining. The 2012 calendar commences with an After5 on Monday, February 6 at the Chifley Eastern Creek Hotel. Starting at 5.30PM the catered networking function will put the spotlight on Corrective Services Industries. Through CSI we help inmates prepare for their future work life by using their graphic de-
sign skills to produce our marketing materials. I think it is fitting that in its Silver Anniversary year the Chamber includes two foundation members who are also past presidents: Robert Saville (Hydrocare Pool Services) and Renzo Valleri (Buildit Mitre 10). Narelle Stoker is general manager of the Cumberland Business Chamber that represents businesses in the Fairfield- Holroyd-Blacktown local government areas. Contact her at 02 9757 4794 and 0418 257 394 or email: manager@cumberlandbusinesschamber.com. au
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PARRAMATTA CITY COUNCIL NEWS
City Centre development kick start Parramatta is strengthening its role as a competitive office and retail market through recent proposed changes to city centre planning controls. he proposed changes to the city centre planning controls aim to facilitate development while maintaining high quality design for the sixth biggest CBD in the country. Lord Mayor of Parramatta, Cr Lorraine Wearne said that the proposed changes to the city centre planning controls are designed to encourage commercial development in the Parramatta CBD. “The Parramatta CBD is forecast to house a further 27,000 jobs by 2036. We need to increase our commercial development and availability of A-grade office space to accommodate future workers,” Cr Wearne said. “I am keen to see Council continue to work closely with our State leaders to ensure Parramatta reaches the level of commercial development envisaged under the NSW State Government’s Metropolitan Plan. This will ensure Parramatta is well-positioned to support NSW’s ‘engine room’– Western Sydney,” she said. Commonly encountered constraints within Parramatta’s CBD were taken into consideration when developing the proposed changes, including lot configuration and size, heritage items and high strata ownership. Among the changes is a re-think of floorspace to height ratio, overcoming the problem of the maximum floor space ratio allowances
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being used up before the maximum height of a building has been reached. Greater incentives are proposed for the development of buildings that are energy efficient and exhibit design excellence. The preservation and integration of heritage buildings and the creation of visually interesting and ‘active’ streets are also the focus of the proposed changes. “The proposed planning controls will maintain a level of certainty yet provide enough flexibility to respond to site conditions which will help deliver the identified vision for Parramatta as a place to live, work and play. This has been the foundation of the recommended principles for amending the city centre planning controls.” Cr Wearne said. A further detailed report will be presented to Council within the first half of 2012 following initial public consultation with industry groups and landowners. After this, the formal process of amending the Local Environmental Plan will commence involving further community consultation and the Department of Planning and Infrastructure to finalise the amendments. For details on the proposed city centre development changes see < http://businesspapers.parracity.nsw.gov.au/parracity/ Open/2011/OC_28112011_AGN_WEB.
A breath of fresh air: smoking ban in outdoor areas Parramatta City Council has banned smoking in all alfresco dining areas it controls or owns, starting from 1 May 2012. he ban was initiated after extensive community consultation indicated residents and diners were in favour of a smoke free dining environment.
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Over the past twelve months businesses, residents and diners were surveyed to gain an understanding of their concerns and the impacts of the proposed ban. More than 900
participants took part in the survey, which found that 68% of residents and 60% of diners supported the smoking ban. Lord Mayor of Parramatta, Cr Lorraine Wearne said that it was important to engage with all stakeholders on this issue to ensure Council made an informed decision.
“The impacts of second-hand smoking have been well-documented and this new measure will be welcomed by many restaurant-goers. With our high concentration of restaurants and cafes, we’re quite different to many other metropolitan areas that have already implemented a similar ban,” Cr Wearne said. Council’s survey found that although the outdoor smoking ban received widespread community support, many restaurant owners were concerned how the new policy would affect their business. “While many businesses surveyed did not support the ban, Council is committed to working with our local establishments to minimise any impacts,” Cr Wearne said. “Council will be actively supporting businesses and the community to adjust to and implement the ban in a variety of ways, the most significant of these being potential financial assistance.” Financial assistance comes in the form of a six month lease holiday for those establishments that successfully implement the ban prior to or by 1 May 2012. In addition to financial assistance, Council will introduce an awareness and education campaign
to run throughout the transition period, drawing more clientele to establishments by highlighting the improved amenity of Parramatta. The new policy will also see smoking prohibited in bus and taxi stands. Council already has smoking bans for areas within 10m of children’s playgrounds, sporting fields and sports facilities. Council will also write to the NSW Government seeking uniform outdoor smoking legislation across the state. “There is a need for uniform outdoor smoking legislation to ensure greater consistency across Sydney and to eliminate confusion,” Cr Wearne said. “The State Government needs to come on board and make it clear what is permitted and in what areas, instead of leaving it to Councils to implement their own smoke-free policies,” she added. “State Government legislation will provide commercial certainty for all businesses in New South Wales. This approach has been successful in Queensland since 2006 and will stop embarrassing situations, like those in King Street, Newtown where two different sets of Council smoking policies are in play.”
WESTERN SYDNEY BUSINESS ACCESS JANUARY 2012
PARRAMATTA CITY COUNCIL NEWS
Council on the right track with light rail solution Parramatta City Council has come up with a transport solution it hopes will reduce travel time, traffic congestion and improve access to Sydney’s major employment areas. he Light Rail/Metro Network report, recently adopted by Council and tabled to Infrastructure NSW, calls for the introduction of a light rail system to support the growth of West Central Sydney and the emergence of knowledge-based employment precincts in Parramatta. Light rail offers a viable, quickto-build solution for the middle distance suburbs around Parramatta, in between bus and heavy rail options. The proposed model preserves strategic transport corridors and facilitates fast and frequent rail services along a dedicated track. The light rail system is planned is to be highly segregated, especially from road traffic to allow it to operate with quick travel times and high reliability. The proposed light rail system is not a tram system like Melbourne’s which shares the road with traffic but more like Sydney’s light rail which is highly segregated. Lord Mayor of Parramatta, Cr Lorraine Wearne said a light rail/ metro network was a cheaper alternative to heavy rail and would improve access to key employment areas in Sydney’s west. “Within the next 20 years the majority of Sydney’s population will be in the west. We need options that recognise the growth of labour markets outside of the Sydney CBD,” Cr Wearne said. “An efficient public transport system such as the proposed light rail network will connect the rapidly expanding Western Sydney population to employment and training opportunities in Parramatta, Castle Hill, Liverpool, Bankstown, Blacktown, Westmead, Norwest, Bankstown Airport-Milperra, Olympic Park, Wetherill Park, Macquarie Park and Rouse Hill. Jobs closer to home means less travel time and less congestion overall” she said. The predicted stage one of the network will see light rail lines estab-
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lished between Carlingford–Westmead, Castle Hill–Parramatta and a connection to Macquarie Park via the Northern Line at Eastwood. These new light rail links will provide the impetus for urban renewal at Rydalmere for the proposed technology park, housing at Telopea
and the Cumberland Hospital/Parramatta Gaol, as well as significant jobs growth at Westmead and student growth at University of Western Sydney. The initial cost estimate of stage one of the light rail network is $3b for 44km of track. Council also stressed the importance of improving traffic flow around Parramatta, via a complementary Regional Ring Road. This project involves a series of
intersection upgrades along the M4, James Ruse Drive and Cumberland Highway, creating a free flowing arterial road that would allow traffic to circumnavigate Parramatta and Westmead more efficiently. The Regional Ring Road will significantly ease congestion and travel times in the Western Sydney area, establishing a better functioning road system which will benefit both Parramatta and the surrounding areas. Stage one
of the ring road is initial estimate to cost $66m. Cr Wearne said the proposals were part of a series of recent discussions with the Infrastructure NSW and a good sign for Western Sydney. “I’m keen to see Council continue to work closely with our State and Federal leaders to ensure Parramatta is well-positioned to support NSW’s ‘engine room’ – Western Sydney,” Cr Wearne said.
ROUSE HILL
to Richmond KELLYVILLE
PARKLEA
to Hornsby
CASTLE HILL NORWEST
BAULKHAM HILLS
to Penrith
EPPING
BLACKTOWN
MACQUARIE PARK
WINSTON HILLS
CARLINGFORD
to North Sydney EASTWOOD
NORTHMEAD PARRAMATTA NORTH WESTMEAD GREYSTANES EMPLOYMENT LANDS
PARRAMATTA SOUTH WENTWORTHVILLE
WETHERILL PARK
Proposed Western Sydney Light Rail/Metro Network Light rail/metro offers a viable, quickto-build solution for Western Sydney in between bus and heavy rail options. It preserves strategic transport corridors and facilitates the emergence of regional centres that can supply growing populations with localised employment and pressure relief for Sydney CBD.
UWS/RYDALMERE CAMELLIA GRANVILLE
RHODES NEWINGTON
CONCORD HOSPITAL
OLYMPIC PARK
FAIRFIELD BONNYRIGG
CHESTER HILL
to Sydney
CABRAMATTA
BANKSTOWN AIRPORT
BANKSTOWN LIVERPOOL
to Campbelltown
Legend Existing CityRail network
to Sydney
Cost Breakdown* (includes track, stations, light rail vehicles, depot, land acquisitions)
Planned North West Rail Link
Stage 1
Proposed Western Sydney Light Rail/Metro network
1a West Central Line (Castle Hill – Bankstown) 25km
Stage 1a – West Central Line Stage 1b – Carlingford Line Stage 1c – Macquarie Line
$1.83b
1b Carlingford Line (Carlingford – Westmead)
10km $500m
1c Macquarie Line (Dundas – Macquarie Park)
9km $740m
Stage 1 Total
44km
$3b
* Based on Gold Coast Light Rail 13km $950m for new line inc depot and Lilyfield–Dulwich Hill Light Rail extension 5.6km $176m for rail line conversion. Content on these 2 pages is sponsored by Parramatta City Council in the interests of informing residents and businesses of Council initiatives and events. Any views expressed in these pages are not necessarily those of the editors of Western Sydney Business Access (WSBA) nor does WSBA accept any responsibility for claims made in these pages.
WESTERN SYDNEY BUSINESS ACCESS JANUARY 2012
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An unmatched theatrical experience… “A mesmerizing performance...” — Donna Karan, Creator of DKNY
REVIVING 5,000 YEARS OF CIVILIZATION.
The Five Millennia Begin, 2009.
masterful moving exquisite WORLD’S TOP CLASSICAL CHINESE DANCERS LARGE-SCALE ORCHESTRA STUNNING ANIMATED BACKDROPS EXQUISITE COSTUMES AN ALL-ORIGINAL PRODUCTION
HEN YUN. For Chinese, the words evoke a sense of wonder, magic, and the divine. To audiences who have seen it, they recall the experience of a lifetime— a moment so powerfully beautiful it touches the soul.
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Discover the grandeur of a fantastically rich culture, that of classical China, brought to life through brilliantly choreographed dance and mesmerizing, all-original orchestral compositions. Magnificently costumed dancers—the world’s elite—move in poetic arrangements that evoke pastoral beauty, imperial drama, and the glory of an ancient civilization.
— San Francisco Chronicle
“The ancient Chinese wisdom it conveyed will not only benefit the Chinese people, but also the whole world.” — Ted Kavanau, founding Senior Producer of CNN Headline News
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CHINESE IS AN IMMENSELY rich language. Many characters contain deep inner meanings and nuances that are difficult to translate into English, such as those in our very name: Shen Yun.
This season, discover what art was meant to be. Discover Shen Yun.
“A visually dazzling tour of 5,000 years of Chinese history and culture.”
ShenYun2012.com
What Does “Shen Yun” Mean?
“Brilliant choreography… extravagantly beautiful.” – Broadway World
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The character Shen (Ṙ) is a general term for “divine” or “divine being.” Chinese cosmology, in fact, is replete with hundreds of deities, Buddhas, and Taoist immortals who play different roles and color the canon of Chinese history with thousands of rich stories. This feeling of the divine plays into the second character of our name: Yun (ㅥ). Its meaning is far greater than what literal translation can capture. “Yun” refers to the overall manner of a dancer, a dancer’s style, and the meaning behind his or her movements. So, when we put “Shen” and “Yun” together: it’s about the grace, compassion, and sublime beauty of heavenly realms that are shown through the subtlest expressions and gestures of our dancers. That is the essence of the name “Shen Yun.”
Presented by Falun Dafa Association of NSW Inc.
WESTERN SYDNEY BUSINESS ACCESS JANUARY 2012
“I probably have reviewed over 3,000 to 4,000 shows since 1942, ... That’s the top! The best word to use was ‘mind blowing’!” — Richard Connema Critic for Talkin’ Broadway
“So inspiring... I may have found some ideas for the next Avatar movie.” — Robert Stromberg Academy Award-winning production designer for Avatar
“The best! The best, the best!” - Charles Wadsworth Founding artistic director of the Chamber Music Society of Lincoln Center
REVIVING 5,000 YEARS OF CIVILIZATION.
“A marvelous evening… I am completely enchanted.” — Her Royal Highness Princess Michael of Kent
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27 APRIL - 6 MAY SYDNEY - CAPITOL THEATRE Ticketmaster.com.au 1300 723 038 Shen Yun Ticketing Office: 02-9146 4929 WebTicketCenter.com/sydney Presented by Falun Dafa Association of NSW Inc.
10 -15 APRIL
MELBOURNE - THE REGENT THEATRE
ALL-NEW 2012 SHOW WITH LIVE ORCHESTRA
ShenYun2012.com WESTERN SYDNEY BUSINESS ACCESS JANUARY 2012
Ticketmaster.com.au | Tel: 1300 111 011
17 -18 APRIL
CANBERRA - CANBERRA THEATRE CanberraTheatreCentre.com.au | 02-6275 2700 *All individuals’ quotes originally published by The Epoch Times and New Tang Dynasty Television.
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FEATURE
Workplace in conflict When the boss is not to blame REALITY is not as simple as TV shows suggest when Donald Trump bawls out a contestant in The Apprentice or cantankerous chef Gordon Ramsay yells at a young wannabe on his team, according to new research. on’t blame the victim is the usual mantra when it comes to workplace bullying. Yet controversial new research is looking at whether workers who suffer abusive supervision contribute to their plight. Employees can bring on conflict when they consciously or unconsciously provoke bosses, particularly when one or both sides are stressed. Recent research has focused on what causes friction in the relationship between a supervisor and their staff. It can be the organisational culture or climate, the individuals’ personalities or an interaction between the two that sparks strife, according to Alannah Rafferty, a professor in Organisation and Management at the Australian School of Business. When combined with some psychological factors, a trivial incident can quickly escalate to fracture a working relationship.
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Typically, problems start when a supervisor thinks workers are letting the team down by not pulling their weight. Psychologists suggest some workers with low self-esteem even “ask for trouble”, as if to confirm their worst opinion of themselves. And much depends on supervisors’ ability to handle the negative behaviours to prevent them from devolving into all-round lose-lose situations. Work presents both a financial and a “psychological contract”, and aggression emerges when the organisation is seen as breaking its side of the bargain. Staff may feel an organisation treats them unjustly, that they are overloaded with work, or suffer ambiguous roles and confusing responsibilities, notes Rafferty. To date, only a few studies have investigated the characteristics of the target of workplace ag-
gression – for example, “how intelligent, neurotic or anxious they are”. But now research has started to consider the role of the target in contributing to his or her own victimisation. “Abusive supervision is not typically viewed as a conflict between two parties. Rather, it is seen as a negative act perpetrated by supervisors towards subordinates, with little consideration of the nature of the ongoing perpetrator-target relationship,” says Rafferty. “One reason for not considering the target’s role in abusive supervision is fear of blaming the victim, that such an investigation would implicitly suggest that targets are partially to blame for their own abuse – a message that both condones abusive behaviour and further victimises the target of mistreatment.” The responsibility for abusive supervision lies with both perpetrators and targets, according to new research by Rafferty and Sandy Hershcovis, an expert on workplace aggression from the University of Manitoba in Canada. Generally workplace aggression ranges from incivility (rudeness and discourtesy), to bullying (persistently criticising employees’ work, yelling, spreading gossip or lies, ignoring or excluding workers, and insulting employees’ habits, attitudes or private lives). Among different sources of workplace mistreatment, emanating from supervisors, coworkers and the public, Hershcovis says abusive supervision has the strongest negative effects. Rafferty and Hershcovis’s research, in a soon-to-be-published book chapter, The antecedents of abusive supervision, helps to answer the question: why do supervisors pick on specific staff members and treat them unjustly? Poor performance is an obvious cause, but bullying behaviour can also be a response to a target employee’s personality, attitudes, or other behaviour. “Certain targets – those who are anxious and tense – seem to be at higher risk of abusive supervision,” says Hershcovis. This happens particularly when there is deep-level dissimilarity between a leader and subordinate, and conflict between them. It can also be a reaction to organisational stressors.
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Celebrity chef, Gordon Ramsey.
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It is not only individuals with low self-esteem, but also employees who may be unaware they possess characteristics that aggravate or irritate a supervisor.
Acts of provocation? The authors say victims can precipitate their own mistreatment by behaving in a provocative manner that elicits a negative reaction from the boss. Abusive supervision lowers job satisfaction and organisational commitment, and can cause “resistance behaviour”, such as refusing to follow supervisor requests, problem drinking, deviant actions and a general failure to engage in positive workplace behaviours. In turn, supervisors may become frustrated with – and ultimately abusive towards – employees who hold negative work attitudes and are poor performers. “Employees who are either too passive or overly conciliatory, or too dominating – forceful with their opinions or controlling – are more likely to be victimised at work. Targets who are disagreeable and neurotic are more likely to be treated with incivility,” says Rafferty. “Supervisors expect employees to exhibit traits that foster a positive and productive work environment.” When leaders perceive their subordinates as disloyal, unlikeable, or incompetent, they may be more likely to engage in abusive supervision – such individuals have been dubbed “provocative victims” because they are difficult to work with and can bring out the worst in bosses. A case in point is “Kevin”, a serial victim with a history of falling out with employers, being dismissed and being involved in official complaints. He is an educator and former union representative who is vocal on workers’ rights. “Abusive supervision is not, in my experience, related to personality types per se,” he says. “The inevitable conflict that arises between manager and worker is, more likely, determined by differences in ideology as well as situational factors … where the manager views the staff member as a threat and possible detractor. “I have experienced managerial abuse on two occasions in two different settings. In the first instance, some managers abused their powers, and fabricated documents to justify termination of employment. “In the second instance, managers abused their powers to fabricate a case that justified abuse by a psychopathic boss, who enjoyed the process of manipulating others as much as he enjoyed the impact on the victim.” Rafferty says it is not surprising that Kevin’s comments are focused on the role of the situation. “It is pretty unlikely for most people to identify their own personality or performance issues as major factors contributing to abuse. Rather, we look for issues in others or in our environment to explain why events happen to us,” he says. While Rafferty is not denying that situation is important, she says: “We also have to look at Continued on page 21
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FEATURE
TV reality: Dr Phil with Donald Trump. Continued from page 20
the role of employees as potentially unwitting instigators of their own mistreatment.” The dynamics of abusive supervision – as with incivility at work – may involve a thoughtless act escalating into aggression. Simple acts such as walking by a colleague without saying hello, forgetting to say “please” or “thank you” can lead to a retaliatory response. The target of the thoughtless act may respond by saying something narky about the instigator to a colleague. This might get back to the instigator, who, unaware of the original transgression, may escalate it by confronting the rumour-monger – thus the original “victim” is seen as an overt perpetrator. “This simple example of an incivility spiral demonstrates how easily a target can be the initial cause of his or her own mistreatment,” says Rafferty.
perpetuating negative treatment. “These aggravating behaviours may lead supervisors to respond in an aggressive manner in an effort to correct the employee’s negative behaviour. However, the supervisor’s abusive actions actually serve to verify this behaviour, leading to a vicious cycle.” It is not only individuals with low self-esteem, but also employees who may be unaware they possess characteristics that aggravate or irritate a supervisor, Rafferty says. “People who are characteristically anxious and worried can contribute to a more negative work environment because these personality traits are all related to a tendency to react negatively to a variety of situations.” Targets of abusive supervision may engage in various active or passive but provocative be-
sense of autonomy and control and to rebalance the social exchange relationship by withholding voluntary citizenship behaviours,” says Rafferty. “For instance, subordinates reduce the extent to which they contribute work-related ideas, information, or opinions to benefit the organisation.” Sometimes employees withdraw into “hidden” behaviours, such as silence, when treated poorly to avoid additional negative behaviours from their supervisors. “It is important to note that targets are not, by themselves, the cause of their own abuse,” says Rafferty. “The supervisor should refrain from reacting to a target’s instigating characteristics or behaviours with aggressive responses. Supervisors should instead deal with the target’s mis-
» Targets of abusive supervision may engage in active or
passive provocative behaviours that draw negative attention.
Me, myself and my view Psychology also throws light on the interactions between workers and bosses. Individuals aim to verify self-views, regardless of whether they are positive or negative, and work to create environments that support that self-view. Employees with high self-esteem exhibit higher organisational commitment when treated fairly. “Those with negative self-views, such as those with low self-esteem, may actively seek out abusive supervision,” notes Rafferty. “Further, low self-esteem employees are less likely to quit the organisation, and are more likely to antagonise an abusive supervisor by engaging in deviant behaviours towards them, thus
haviours that draw negative attention, Rafferty says. For example, supervisors may perceive employees who do not put forward their best work effort, or who complain frequently about work tasks, to be lazy. These negative behaviours can harm organisational performance, and in turn the reputation of the supervisor. Therefore, employees who engage in workplace deviance are likely to meet with supervisor disapproval creating an ongoing spiral of aggression, insist the authors. “When employees are treated poorly by their direct supervisor, they seek to restore a
WESTERN SYDNEY BUSINESS ACCESS JANUARY 2012
behaviour, not by yelling or talking about them negatively, but by role-modelling appropriate behaviours, identifying positive alternative behaviours or sending an employee to training, for example,” she suggests.
Developing understanding Understanding the mechanisms behind abuse can help design measures to prevent bullying at work. “In the same way that research in abusive supervision recommends appropriate training for supervisors, it will be important for employees to recognise that their own interaction styles
and behaviours may trigger abusive responses,” says Rafferty. “Though such research in no way absolves supervisors for their own abusive acts, understanding one’s potential role through preventative training can help increase employee awareness about the kinds of behaviours that may put them at higher risk, which may help prevent some acts of abusive supervision.” Most organisations provide supervisory training programs, which include such topics as interpersonal skills and communicating effectively with subordinates. The authors suggest organisations could also educate new supervisors about the key factors that may cause them to become frustrated and potentially abusive at work. With this knowledge, a greater emphasis can be placed on developing supervisors to deal effectively with poor performing subordinates. There is limited research about how to deal with abusive supervision once it occurs. Hershcovis has found that organisational investigations into abusive supervision and other forms of aggression tend to focus on getting to the bottom of the matter and rectifying the supervisor’s behaviour. The research suggests the need for a broader look at both sides of the relationship to identify contributing factors. “We recognise this seems dangerously close to a ‘blame the victim’ argument,” say the authors. “However, if we accept that abusive supervision is part of an ongoing exchange, then as with any other type of conflict resolution, both parties need to consider their role and work to repair the relationship.” ARTICLE COURTESY OF KNOWLEDGE @
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ACCESS
Protecting your business expenses IN this article, we will talk about business expenses cover (also known as business overheads), and how this cover can help protect your business. Dr Jim Taggart OAM and Christina Matthews usiness expenses cover is specifically designed for self-employed people, or members of small businesses, who need to cover their fixed business expenses if they cannot work due to injury or sickness. This type of cover ensures that the insured person does not erode their personal income protection benefit by the ongoing requirement to also meet fixed business expenses. To be eligible for this type of cover, the insured needs to demonstrate that they
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What are business overheads? The following table provides the generally eligible and excluded business expenses or overheads. This list is not exhaustive and provides most of the main items only:
Business expenses generally covered
Business expenses generally excluded
These items are the normal operating expenses of a business. They may include:
Business expenses that may not be covered under a policy include:
• Accounting and auditing fees • Regular advertising costs, postage, printing and stationary • Electricity, gas, heating, water, telephone and cleaning costs • Security costs • Rent, property rates and taxes • Membership fees, publications and subscriptions to professional bodies • Leasing costs of plant and equipment • Bank charges, interest on business loans • Business related insurance premiums but generally excludes the premium for business expenses cover being taken out • Salaries and other related costs (such as payroll tax, superannuation contributions, FBT) for non-income generating employees of the business • Net costs associated with employing a locum • Contracted repairs and maintenance • Computer servicing expenses • Business vehicle registration and insurance
• Salaries and other related costs for the insured person and income generating employees of the business other than a locum • Salaries and other related costs for any of the insured persons’ relatives or the policy owner • Commissions or bonuses payable to the insured person • Repayments of principal of any loan of other finance agreement (some companies may offer this as an insured benefit so check with the insurer) • Any costs of a capital nature including the cost of any books, equipment, fittings, fixtures, furniture goods, implements, merchandise or stock • Depreciation on real estate • Losses on investments • Taxes, other than in respect to related costs for non income generating employees
Who should own a business expenses policy? The ownership of the business expenses policy would generally depend on the structure of the business. The following table may be used as a simple guide for policy ownership:
Life insured
Suggested policy owner
Sole trader
Self
Principle of one man company
Self or company
How much cover is required? Three main things should be considered when you are considering the amount of insurance required for business expenses cover. These are:
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have fixed overheads in the running of their business. Business expenses may not be available for all occupations; some heavy manual occupations may not be eligible for business expenses cover so you if you are considering business expenses cover you should check with the insurer regarding your particular occupation rating.
1.
How many business owners or partners are there in the business? 2. How much revenue does each business owner or partner generate for the business? 3. Does the business have any income producing employees? Business insurance cover is an indemnity policy and there has to be a genuine fall in income, due to the insured person’s illness or injury, before being eligible for a claim under a business expenses policy. Generally the benefit period for a business expenses policy is 12 months (1 year). This differs to income protection cover where you have elect to have longer benefit periods such as 5 years, age 65 etc. The waiting period for business expenses cover is usually only 14 or 30 days, but check with the insurer to see what they offer for a waiting period. What are the tax implications of busi-
ness expenses? As with any business protection cover, the tax implications to the business or business owner are an important issue to consider. Generally for business expenses, the tax implications for premium payments and benefit payments would be:
Premium payments
Benefit payments
• Deductible to the business
• Assessable as income • Not subject to CGT
the insurer when you make a claim. The same evidence would be required for an income protection claim, so if you are insured for both income protection and business expenses you would usually only have to provide the information once to the insurer if you were going to make a claim against both policy types.
Conclusion
You should always refer to your accountant or tax adviser for advice on the best structure for your particular circumstances. As the proceeds of a business expenses claim are used for revenue purposes, the premiums will generally be tax deductible and the proceeds assessable as income, but not assessable as a capital gain.
What options are available under a business expenses policy? All companies are different in respect to the options they provide, some may only provide a basic policy covering the standard items noted above, and some companies may offer an accident option, waiver of premium, and benefit indexation. These options work in a similar way to the options provided under an income protection policy, and will generally attract an extra premium.
How would you qualify for a claim? Generally, to be eligible to make a claim for business expenses, the main areas looked at would be: • Loss of income, or • Performance of duties, or • Number of hours worked • Or possibly a combination of the above The loss would be based on the assessment of medical practitioners, specialists and accountants information provided to
Business expenses cover is an ideal partner for income protection insurance. Income protection provides a personal income replacement benefit to the insured person for up to 75% of their taxable income. But income protection doesn’t cover the fixed expenses of a business, and if these are not covered, then realistically you will only be receiving half the protection that you may need. Of course this type of cover is not required by everyone, but if you think that you should look at business expenses cover as a self employed person, or a small business owner, then you should seek professional advice from someone qualified to give risk insurance advice. Making sure that you have risk management in place for your business is just as important as having risk management in place for yourself. Dr Jim Taggart OAM and Mrs Christina Matthews are Representatives of Taggart Nominees Pty Ltd. Taggart Nominees Pty Ltd holds AFSL No: 234973, and is a Life Insurance Broker. The information is this article is general in nature and does not constitute financial advice. References: AIA Priority Protection Product Disclosure Statement, Version 10, Issued 3 December 2011. ‘Your business expenses don’t stop just because you do’ client information brochure, Zurich Australia Limited, 2011. CommInsure Business Overheads Cover strategy paper dated 28 October 2011.
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MAGAZINE - OFFICE ROMANCE
Dangerous office liaisons STUDIES have shown that between 33% and 40% of romantic relationships these days begin in the office. t a 2002 Christmas party for Australian Embassy staff in Moscow, Natalia Komarova, the embassy’s Russian-born public diplomacy officer and Bruce Jones, a recently arrived political officer, met and immediately struck up a friendship. Several months later, when friendship blossomed into romance, the pair reported their relationship immediately to the Department of Foreign Affairs and Trade (DFAT), as required by the code of conduct outlined in their employment contracts. The Australian Security Intelligence Organisation (ASIO) was called to look into Komarova’s background. “They had to make sure I was not a Russian spy,” says Komarova, who is now public relations manager at the Australian Defence Force Academy in Canberra. Office romances are not usually so dramatic in terms of policy requirements, not least because few organisations have guidelines to address the many potential issues that can emerge. A survey conducted by psychologist Geoff Carter at Queensland’s Griffith University, shows eight out of 10 employees between the ages of 18 and 40 have been involved in some sort of sexual encounter with a work colleague, and it’s hardly surprising. Increasing time demands being placed on staff – particularly since the global financial crisis – may have inadvertently
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turned the workplace into a social hub. A time-use study by the Australian Bureau of Statistics reveals that in 1992, people socialised outside of work for 77 minutes every day, but by 2008, that socialising time was down to just 10 minutes.
Not everyone’s in love Whether participants are famous or not, office liaisons generate controversy. “There can be perceptions of favouritism by other people in the office when a romance begins,” says Dallas Burgess, an organisational psychologist from Sydneybased consultancy PeopleAdvantage. A paper published in the Journal of Business Ethics, titled The Debate Over the Prohibition of Romance in the Workplace by Colin Boyd, a professor at Edwards Business School at the University of Saskatchewan, says organisations perceive two major threats from office romances. “First, there is the possibility that if this workplace romance breaks down, then one partner’s attempts at reconciliation may come to be perceived by the other former partner as harassment,” Boyd says. “The employer may be held responsible for not protecting that employee from such harassment. Second, if the relationship is between a superior and a subordinate, there is the possibility that one of the subordinate’s co-workers might sue because of real or perceived favouritism
arising from the relationship.” Such fears have led some organisations to issue consensual dating agreements when a romance surfaces. Known as “love contracts” or “dating waivers” these agreements seek to confirm that the relationship is consensual, will not result in favouritism and that neither partner will take action against the organisation should the relationship break down. Guiding principles around workplace romance: • Whether you’re a boss, a staff member or one of the people in the relationship, don’t be worried if a romance happens because it is going to happen an awful lot: a recent US survey showed about 40% of long-term relationships begin at work. • Those involved should opt for early disclosure rather than to try to keep it covert. The rumour mill is powerful and people read into body language and other signals. Anyone who thinks they can keep it covert is unlikely to be successful. • There’s a problem when the relationship occurs between a boss and a subordinate – then it’s necessary for one of the two parties to consider moving. Otherwise, third parties may believe or suspect that their rights or treatment may be affected negatively. ARTICLE COURTESY OF KNOWLEWDGE @
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MAGAZINE - LEGAL
Partnering and the art of agreement PEOPLE enter into business agreements every minute of every day; they are ubiquitous and unremarkable. By Steven Brown lmost all the time, these agreements go off without a hitch. People become suppliers, sell to wholesalers and retailers, buy and sell businesses, enter into partnerships, form joint ventures, promote and incorporate companies, merge their businesses, list on securities exchanges, become distributors, agree to transport goods and have goods transport. Each involves an arrangement whereby two persons make a commitment to do something together that is usually to the mutual benefit of each. When problems arise, people tend to resolve them by some form of negotiation, reverting to court action, or to use a technical term “simply lumping it”. This article over two editions looks at ways that business people that form relationships do not have to simply lump it if the relationship falls apart. What is partnering? A term that is used to describe the manner in which people enter into business agreements is that of “partnering”. Partnering is not referring to the legal relationship of two or more people entering into a legal partnership for the joint purpose of deriving a profit. Although deriving a profit is usually the reason for people entering into a partnering arrangement, partnering is the term given to people working together in a collaborative fashion. Many lawyers prefer the term “collaborative working” instead of partnering because of the term being widely misused and confused with the legal form of business called a partnership. Whatever term is used, partnering or collaborative working, the concept goes far beyond mere teamwork to critical success factors such as early involvement of suppliers in design, selection of all parties by value, performance measurement, continuous improvement, common team processes, supporting commercial arrangements that align risk and return, and most importantly, how to terminate the relationship should the parties fall out with one another. It is important to recognise that the
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principles of partnering apply irrespective of the size of the business venture. It is just the complexity and size of the number of people to be involved that differs from business venture to business venture.
Structuring the business arrangement The key to successful partnering is achieving a cultural shift from the parties in a business relationship working in an adversarial manner to working in a truly collaborative manner. The shift is one of a change in mind-set. It is a change from not looking at what you will get out of the business relationship at the expense of the other party (an adversarial approach); to considering how each party can by working in a genuinely committed way can achieve the aims of: Achieving specific business objectives. Maximizing the effectiveness of each person’s resources. Achieving mutual objectives or common goals; and Securing continuous improvements. (See Procurement and Competitions Issues, Partnering and Collaborative Working, General Editors Jones, D, Savage, D, & Westgate, R, Informa (UK) Ltd, London, 2003, Chp 6, p 100), (the collaborative working approach). Achieving such a change in mind-set is not easy. People engaging in entering a business relationship, do so to earn what they expect will be a return on their efforts, or the investment of their money. What all commercial activities have in common is that none are without risk. The very act of engaging in such activities is risky. As there is risk in all commercial activities from which people expect to earn a return, it is inevitable that the inherent risks of these activities will be borne by one or other of the transacting parties (see: Boyce, T, Commercial R isk Management , Thorogood Ltd, 1995, p 6). As well as clearly identified risks in business ventures there are unseen risks. For an example of unseen risks, look at the implied contract terms cases, such as, Codelfa Constructions Pty Ltd v State Rail Authority of New South Wales (1982) 149 CLR 337. Codlefa had to bear the risk that it could
not amend the contract when injuncted from being able to perform the works in the manner expressly agreed upon and stated between the parties. This case illustrates that where the parties to a business venture do not clearly determine who is to bear certain risks, or how the risks are to be shared, each may end up bearing or sharing risks they never contemplated. As a consequence of a court after the event determining who has to bear the risk by implying a term into the contract. What is a contract? – a quick review of the nature of a contract It is the role of the law to decide which agreements it is prepared to treat as giving rise to legal relations and what remedies might be available to an aggrieved party. Like a good guest, the law steps in only when invited to do so; there is no general monitoring role whereby the legal process approves or supervises all business relationships. But when and where the law is called into action, its principles and standards evaluate the agreements; their performance; and in particular, the consequences of any breach of their express or implied terms and conditions. As a general rule, the law will not have regard to agreements that it does not consider to be in the form of a contract. All business ventures whether entered into under the principles of partnering or not are contained in a contract. A contract is seen by different people in different ways. Contracts can be analysed in two ways: a legal analysis; and a practical analysis.
Legal analysis Contracts, are a sub set of the class of all agreements. Contracts are: A promise, or set of promises to do or not do things. For the breach of which the law gives a remedy; or The performance of which the law in some way recognizes as a duty. Contract law regulates three aspects of such legally enforceable promises: Formation; Performance; and Enforcement. Under the legal analysis, what distinguishes a contract from other forms of agreements is that that are constituted by an offer, acceptance, consideration, an intention to
be legally bound by parties that have legal capacity to enter into legal transactions.
Practical analysis Contracts are the infrastructure of all business relationships. For business people, besides the contract fulfilling the legal criteria to make an agreement valid and binding, the practical answer to the question: What is a contract? is that contracts are (or at least we should seek to make them) checklists, or rulebooks, which being management tools minimize the risk of a party not performing their obligations. As a checklist, or rulebook, a contract sets out: • Who does what? (That is, what has to be performed by each party). • How does it have to be done? (Details the standards of quality and or professionalism to be expected in the manner in which the contract is performed.) • When does it have to be done? • And the consequences of a party failing to adhere to their promises to perform. By viewing a contract as a checklist the parties to it, are forced to focus on what each wants from the other party. Each party must plan what they require, and what they have to do for the other party. The contract then becomes a checklist to check off if what was promised is being performed thereby producing a genuine satisfactory result for each party. By focusing on ensuring that the desired outcomes are achieved, the contract becomes a risk minimisation tool. People contemplating entering into any form of contract have to determine how much risk they expose themselves to by entering into the particular business venture. By viewing contracts as checklists and or rulebooks, partnering principles are easily employed. Performance is a quintessential element of both the legal and practical answer to the question what is a contract. NEXT edition of WSBA: We look at two extreme examples - a contract to buy\ sell an apple and a contract between shareholders in a new business venture. Steven Brown B.Ec, LL.B, (Sydney), M. App. Fin (Macquarie), FAICD is an accredited Business Law Specialist, AIMM, FPIAA and Chairman of Etienne Lawyers.
WESTERN SYDNEY BUSINESS ACCESS JANUARY 2012
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MAGAZINE - IT
Guide to planning your IT investment THIS article explores some of the broad trends so you can plan your IT investment over the next few years.
“cloud computing” is grouping them into a competitive shopping list due to lower cost in delivering computer resources over the internet. You can thank large organisations for the proliferation of new commodity services. The aim is to use the savings in the commodity area to invest and develop new premium service areas like mobility.
By Dexter Duncan he NBN will accelerate the adoption of some key technologies which will reduce costs and increase efficiency for those that plan for it. Whether you outsource or keep elements of an IT department in-house, the role of IT services is changing. The speed of these changes is likely to increase over the next three years with the roll-out of higher broadband connections like Australia’s NBN.
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Quote from Michael Harte, CIO of CBA: “Storage, for example, should be cheap, whereas the management of critical applications should be expensive. You pay a premium for stuff that adds value close to the customer.” The above quote from a global leader in using technology to grow revenue and profits outlines a crude division of two types of IT services that has emerged: 1. Commodity services. 2. Value or “premium” services.
Commodity services Over the next three years you’ll find it more cost effective to outsource many ar-
Value (premium) services
eas since outside vendors will do a better job than you. Some of the services (like managed services) are already widely available at a fraction of the cost of delivering the service internally. Many of the commodity services are available “on-demand” where payment is arranged based on usage and Service Level Agreements (SLA’s). Examples on-demand specialty services are: • Servers (CPU power and RAM) as a service. • Data storage as a service. • E-mail as a service. • Testing as a service. • Software as a service (hosted “pay as you go” services like CRM). • IT support as a service (managed services). Although the above have been available in one form or another, the new era of
Adding value to customers or automating some of your routine processes are competitive advantages instrumental in delivering business strategy. Sample premium services to invest in: Human-to-human tasks are automated into “work-flows”. The most common human-to-human task is sales and the things to track and automate are documents, e-mails, meetings and conversations. Customer Relationship Management (CRM) tools such as one from SalesForce or Microsoft Dynamics CRM are example productivity tools that are customized around your business. Cross functional tasks are automated involving more complex business processes. In addition to above, these include machine to human and machine to machine automation. Examples are contract management, asset management, risk management and others that touch HR, finance, sales and operations with common delivery using a combination of CRM back-end with a Microsoft SharePoint front-end.
Mobility – smart phones and touch screen “pads” like iPad. These tools change the relationships with employees, clients and vendors. On-site services are becoming more prevalent with transactions and reports being done on spot. Big Data – cheap storage, legislation, marketing/sales pressure is driving us to store more data on our customers, vendors, partners and staff. We need to be able to quickly find “needles in haystacks” every day. Examples of services in this area include document management using Microsoft SharePoint, but also mining and transforming your data to become “business intelligence”. IT compresses the value chain resulting in the elimination of waste and freeing up cash and people. This starts with replacing human to human tasks, but increasingly means the automation of end-to-end processes across multiple business functions. Wringing savings out of the commodity services and investing in strategic or premium services is your next plan. See our website for more: www.EmpowerIT.com.au or www.EmpowerCS.com.au Dexter Duncan is a division manager at Empower IT Solutions. Contact Dexter at dd@EmpowerIT.com.au References “CBA banks on savings in the cloud”, 08 Nov 2011, Australian Financial Review. Want to know more information on NBN roll-out?: www.nbnco.gov.au
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Networking used to be about who you know, now it’s about who knows you. Dr Jim Taggart presents insights into how to network for maximum business value. You will learn rarely revealed networking strategies; dos and don’ts; how to measure your networking effectiveness in the modern context and much more. Sales is about creating relationships and developing trust. George Mavros’ explores the techniques and skills that create and close deals and add authentic value to your business relationships. You will learn techniques for sourcing prospects; modern sales success strategies and mistakes and much more. Date: Venue: Cost:
Wednesday, February 22, 2011. Ridges Parramatta. 116 James Ruse Drive Rosehill NSW 2142. $99 per person including GST includes lunch and morning tea. Tables of eight for $693 including GST. Time: 7.30am registration, 8am start to 11.30am. Lunch: Buffet style lunch and networking in a casual setting from 12 noon follows presentation (lunch is optional but is included in registration fee). Bookings: Online at www.wsba.com.au or email wallburg@bigpond.net.au The ACCESS HOW-TO Business Education Series is proudly sponsored by
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MAGAZINE - PRO DEVELOPMENT
Talking about your (workplace) generation ALONG with the GFC and the looming skills shortage, the workplace generation gap is an issue that compels the attention of Australian workforce managers. By Mike Walls here are now four generations of workers represented in many companies, each bringing their own world view, expectations and communication val-
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ues. According to corporate trainer, Scott Alford from national training firm PD Training, the ability to manage expectations and outcomes around change, productivity and relationships in a multi-generational workplace rates alongside technical skills. “We are looking at a situation where we have four generations of workers functioning in many Australian work environments – Gen-Y, Gen-X, Gen-z and Baby Boomers,” said Scott. “The extent to which generational workforce behaviours and expectations may differ represents a potential minefield of organisational issues if not handled correctly. The downside is a reduced bottom line and reputation. The upside is a creative and progressive workforce,” said Scott. Exactly how to leverage the generation gap is an issue raised regularly by Australian companies in corporate training rooms across the country, says Scott.
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“Each generation forces colleagues to look at life with a different focus resulting in changes in workplace policies and procedures. It’s no wonder that managers we teach rate generational change and workplace communication so highly. “The baby-boomer approach is more along the lines of ‘do your time, pay your dues’, yet respect is not a necessary tool in today’s workplace. Younger people tend to respect celebrity, not authority, because they grew up in an Internet and social media society.” Scott says managers should assist younger workers to understand the implications of consequences, but not impose their view of history on the next generation of leaders. In many cases the generation of leaders “who did their time” are now responsible for bringing through the next generations of leaders who place no value in “doing their time.” In his training course called Leveraging the Generation Gap, Scott uses advanced training methods with real time activities. These provide participants with tangible examples for them to work through and form effective strategies and solutions that are then taken back to the workplace and
implemented. As a result of training, many organisations are now forming work groups of various generations collaborating together and then empowering the groups to achieve the outcome (not telling them how or what process to follow).
Tips for managing workplace diversity • Engage in conversations that foster mutual understanding of issues and priorities. • Focus on similarities, not differences. • Recognise that change is inevitable: adapt.
• Consider forming work groups of various generations that collaborate. • Be very clear about the expected outcome and consequences. • Do not force your values onto a colleague, who may be uncomfortable with them. • Remember, if you want respect then past actions count for nothing; roll up your sleeves and walk the walk. • Demonstrate proficiency and success in your approach and you may just win them over, (that’s not to say they will do it the same way as you though).
WESTERN SYDNEY BUSINESS ACCESS JANUARY 2012
MAGAZINE - BUSINESS IMPROVEMENT
â&#x20AC;&#x153;Steer your business in the right direction â&#x20AC;?
Fast track to success in business and life IF your business is not running in the fast lane now it the time to ask why.
By Lindy McNocher T is the beginning of a new year and it is the time to review, take a step back and assess where you are going and why. Business owners especially â&#x20AC;&#x201C; this is the time to take a break and look at your business. You may be wishing for your business to be something better, calmer, safer? Of course it may be making you money, but is it bringing you happiness? I will describe to you how the ideal world should be if you are running your business with the correct tools in place. Your business should be running fast and furious. It should be calm and organised. It should be exciting and challenging, but your dreams should be able to be accomplished. Your senior executive team should be loyal, competent and getting things done. You should be well informed and know all the important information in your organisation on a daily basis, without having to be drowned in information. You should know exactly what your executive team is going to do this week, this month and this quarter. You should be able to lead your organisation with ease and
I
good control. This is the ideal world that a business owner should be experiencing. This is the normal ideal world. Of course, there are the ups and down of business when a market crashes or a hurdle occurs that was not expected, but that is the job of the business owner. The job of the business owner is to look at the market, to plan the future, to steer the ship around the rocks and lead it instead to the beautiful waters that are dreamed about. If the above is not occurring in your organisation or you think this is an unrealistic joke, then take a moment to review this world you are now living in. The above ideal world is possible. You donâ&#x20AC;&#x2122;t need to be special. You just need to know how to do it. It simply takes knowing the correct tools to build your organisation so it operates in the above way. It is not manâ&#x20AC;&#x2122;s dreams that fail him. It is knowledge of how to accomplish these dreams and create a well organised team that can carry out the dreams that you have. This is the only hurdle. If you can get educated and practised in the knowledge to make your dreams come true it will all fall into place and you can have a competent and calm business and a family too! So remember, that all you need to do is learn how to organise your business so it can run like a top performance engine. It takes careful looking, learning and practice but you can do this. Lindy McNocher is founder, Gallop Solutions, Management Systems that Work. Visit www.gallopsolutions.com
WESTERN SYDNEY BUSINESS ACCESS JANUARY 2012
Business Boot Camp
´,¡YH DUULYHG KRPH IURP ERRW FDPS DQG IHHO WRWDOO\ HPSRZHUHG , IHHO VR YHU\ IRUWXQDWH WR KDYH PHW VXFK VSHFLDO SHRSOH :KDW \RX GR DQG WHDFK LV YHU\ VSHFLDO 1RW RQO\ KDYH \RX FKDQJHG DQG KDG VXFK D SURIRXQG HIIHFW RQ P\ EXVLQHVV OLIH EXW DOVR P\ SHUVRQDO OLIH 7KDQN \RX VR PXFK 6WLOO EX]]LQJ VR KDUG FDQ¡W ILQG WKH ULJKW ZRUGV , QHHG WR H[SUHVV P\VHOI Âľ )UDQN 9D[ 6DP¡V $XWRPRWLYH )LYH 'RFN 16: 2YHU WZR GD\V *DOORS 6ROXWLRQV¡ %XVLQHVV %RRW &DPS ZLOO HPSRZHU \RX ZLWK EXVLQHVV WRROV \RX FDQ WDNH DZD\ DQG XVH WR VWHHU WKURXJK WKH EXVLQHVV LVVXHV \RX DUH FXUUHQWO\ IDFLQJ R How to organize your company Dates: 21st & 22nd January so you deliver the best possible OR 25 th & 26th February product or service - walk away Place: Gallop Solutions with a clear company structure Norton Business Centre, R How to set up your basic Leichhardt company dashboard and start â&#x20AC;&#x153;drivingâ&#x20AC;? Time: 2 days, 8am â&#x20AC;&#x201C; 6pm R How to use your company structure and dashboard to get If you would like to find out more, your key executives to be email ddavis@gallopsolutions.com accountable and get things or register your interest at: done, so you donâ&#x20AC;&#x2122;t have to do everything yourself www.gallopsolutions.com R How to have a happier team that works seamlessly together R How to attract qualified and competent staff, and keep them R How to have existing clients coming back for more, and keep new business flowing in R How to manage change smoothly as the company grows R How to have a happier family and work life balance <RX &$1 VROYH WKH GDLO\ SUREOHPV RI \RXU EXVLQHVV <RX &$1 JHW RXW RI WKH GD\ WR GD\ JULQG RI WKH RIILFH %XW WKHUH¡V RQH SRLQW you have to JHW LQWR WKH GULYHU¡V VHDW so you
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MAGAZINE – SALES
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Check out our new website www.wsba.com.au
How to qualify prospects IN an earlier article I said that my definition of a professional sales person is: “The professional salesperson understands and accepts that they have the responsibility and the privilege, of leading their client to the right decision for the client – even if that is not to buy the salesperson’s product.”
By George Mavros o how can that be? How can you be a successful professional if you are telling people not to buy your product or service? It’s not as hard as it may seem. All you have to do is work out the sorts of people who should not buy your service or product then look for the people who should. Don’t waste time for both you and the client by trying to sell the right product to the wrong person. Use that time to sell the right product to the right person. This may all seem like I am having a lend of you and stating the obvious. The biggest mistakes I see competent professional sales people make, who are not achieving their true potential, is that they fail miserably at qualifying their client properly. What do I mean by qualifying? Exactly that; establishing if you and the client and your product or service are a match. It is all about getting the right product or service for the client – don’t worry about the dollars and the sales. If you get the qualifying right the rest will follow. I use my name as an acronym to help my clients remember the important parts of qualifying: M = what product or service do they have at the moment? A = what is it about their current situation that annoys them? V = what do that value about their existing product or service? R = rate what are the biggest annoyances and the most important aspects? O = are their other considerations
S
that will effect the sale going through? S = Strategy or solution or sale So how does it all work? By finding out what your client has at the moment or what brought them to this point in time will give you a starting point. Once you establish what they have you then find out why they want to change it. People want to change the things that annoy. We are always reluctant to give up those things that we value. However, if we are asked the question about anything, “What do you like most about it?” or “what do you find the most annoying about it?”, our mind will go through the list of good and bad and then rate things for us from most appealing to least appealing or most annoying to least annoying. Once we have dealt with the matters relating specifically to the current product or service and the client’s needs now, related to the product or service they are considering, we then need to think about other considerations that may impact on the decision. These are things like budget, finance requirements deliveries etc. Then when you have all that information and have given it careful consideration from your client’s perspective, you can provide them with a strategy. The sooner you qualify the sooner you know if you should or should not be preparing to sell to your client. If in all good conscience you decide you shouldn’t then you as a professional are duty bound to advise them of better options for them in this instance. If you do this correctly you will present your product and put more of your selling time into those people that should really buy your offering. The ones that you don’t try to sell to, but recommend another option, will recommend you as a trustworthy, honest, professional salesperson. Therefore instead of potential clients being scared of you they will want to deal with you because they know you will always put their needs ahead of your sale. George Marvos is a business educator and sales professional. Visit www.leapoffaithtraining.com.au
WESTERN SYDNEY BUSINESS ACCESS JANUARY 2012
There are two things a business cannot do without, sales and marketing! Not all successful marketing requires a multi-million dollar advertising budget or expensive publicity campaigns But what it does require is a new way of looking at business world, this is a mindset that views every situation as an opportunity to promote your business. With so many different avenues of promotion it become a minefield to know where to market, and there’s no guarantee of new business. If it’s guaranteed new business you are after, if new sales are what you want, if you have excess inventory, if you have downtime in your business
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Check out our new website www.wsba.com.au
MAGAZINE - SOCIAL
In the Penrith party mood PENRITH Valley Chamber members and guests enjoyed the final networking function of the year at Penrith RSL in December. It was well attended and everyone was into the party mood to celebrate a very successful Chamber year. Great food, fine wine and the wonderful ambience of friends and colleagues ensured the ongoing enthusiasm to be involved in the Chamber activities on offer for 2012.
Donna Ramm and Melinda Oates with Greg Delahunt.
Member for Penrith Stuart Ayres MP and Robert Glascott.
Clare Davis and John Drury.
Merv Smart and Pauline Worthington.
Tony and Samantha Howard.
Joe Grassi and Supt Ben Feszczek APM, Penrith Local Area Command.
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