Business Resource & Lifestyle Magazine Issue #60 - November 2013

GWP M a g a z i n e s

S ydn ey

Existing to Survive or Thrive?

Page 24

Reflections of a small business owner

®

B u s i n e ss

SYDNEY - Issue 60 | November 2013

M a g a z i n e

S i n c e

2 0 0 5

Lifelong Learning will Sustain Businesses into the Future Page 28

Page 26

The

Rothschild Empire “things lie deeper than one thinks”

Publisher’s Guest: John Chedid Lord Mayor of Parramatta

T o b e c o m e a c o n t r i b u t i n g w r i t e r i n B u s i n e s s R e s o u r c e & L i f e s t y l e c a ll 1 3 0 0 8 8 9 1 3 2 Business Resource & Lifestyle | Issue 60 | November 2013

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Business Resource & Lifestyle | Issue 60 | November 2013

Business Resource & Lifestyle | Issue 60 | November 2013

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Editor and Publisher: Dmitry Greku Cover Story: Adrian Payne Contributing Writers: Charlie Lynn Angry Anderson Chris Westacott Darryn Fellowes Stephen Frost Stephen Ryan Daniel Moisyeyev Art Director: Svetlana Greku Executive Officer: Daniel Moisyeyev Director of Public Relations: Angry Anderson Cover Design and Cover Story Layout Xabier Goñi, XDesigns Photography: Francesca Surace, Stilz Fotografika Printing: Pegasus Print Group Business Resource & Lifestyle Magazine® is published by GWP Media® and GWP Magazines® ABN: 82 096 352 064 www.gwpmagazine.com.au Office Address: Unit 31, 7 Hoyle Avenue, Castle Hill, NSW 2154 International Standard Serial Number ISSN 1837-199X Advertising Enquiries p | 1300 889 132 e | info@gwpmagazine.com.au To Subscribe w | www.gwpmagazine.com.au

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Business Resource & Lifestyle | Issue 60 | November 2013

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Business Resource & Lifestyle | Issue 60 | November 2013

CONTENTS

CONTENTS 22 16 Cover Story 10 The Rothschild Empire

“things lie deeper than one thinks” Adrian Payne

Publisher’s Guest

16 John Chedid

Lord Mayor of Parramatta

Regulars

28

leadership

Business Advice

18 Envirocrats Hijack Kokoda

26 Reflections of a Small

Charlie Lynn

20

A New Federal

Government, What

does This Mean for Small

Business?

Stephen Frost

Business Owner Chris Westacott

30 Online Business Models:

Myths versus Reality Part I Daniel Moisyeyev

Local Government

Society & Life

22 Sydney Hills Events –

32

The War Within

Angry Anderson

Summer Season The Hills Shire Council

Editor’s Letter

8

Features A High Sense of Responsibility as a Business Survival Tool…

Dmitry Greku

Business Advice

24 Existing to Survive or Thrive?

Darryn Fellowes

28 Lifelong Learning will

Sustain Businesses into the Future Stephen Ryan

Business Resource & Lifestyle | Issue 60 | November 2013

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editor’s letter

A High Sense of Responsibility as a Business Survival Tool…

Dmitry Greku, M. Sc. - Editor and Publisher - GWP Magazines®

A sense of responsibility is arguably one of the major factors for success in business. Everyone wants to be known as a responsible and reliable person, suppler or business associate.

In many examples of ‘gurus’ and self-proclaimed ‘entrepreneurs’, it’s a self-bestowed title. The most difficult bit though, is to be recognised as someone with a sense of responsibility by other people.

I remember several people who joined the business I was with, after their military service.

They were great to work with. Why? I think it’s because they are trained to handle a gun, conduct themselves under orders and stay functional in difficult circumstances. When you’re in charge of a group of people in extreme situations, when the temperature is below 40C or above 40C, people can get tired, hungry and angry. As a leader you still have to accomplish your mission and report a successful result. Unsuccessful outcomes are not acceptable, unless you end up dead, which can’t be a satisfactory option in a military operation anyway.

I’m not trying to make a claim here, it’s just another thought based on my personal experience. So, where does this sense of responsibility come from? You probably ask yourself this question all the time when you come across yet another selfproclaimed guru or entrepreneur.

These situations are very similar to other environments like living on Antarctic stations or on boats conducting Antarctic research. And I’m not talking about an environment meaning climate and sometimes unpleasant weather conditions they exist there almost all the time. I’m talking about a social environment which could be as deadly as a fierce storm in Drake Passage.

If you’re coming to Antarctica from Europe, it takes about a month and a half one way, plus 3-4 months in Antarctica itself. Expedition crews are not picked according to their ability to live and survive together; strictly, their potential to contribute to the success of the expedition is what is taken into account. In certain circumstances one can imagine throwing an irritating character overboard, making the lives of you and your colleagues much more comfortable and relaxed. But there are rules that prevent us throwing people overboard into a freezing ocean, however much we may be tempted. But there are no rules about how to ‘handle’ that irritating character instead.

I remember one of the first things we were told at an early lecture at uni – “Be responsible. This will save your life and lives of many other people.”

This statement was strongly supported by a short story where a group of field researches were echosounding the sea bed in one of the remote straits. The purpose of this exercise was to prepare a navigation chart with a clear indication of depth. After conducting all measurements and calculations the chart was finished. However there was an error. It came to light seventeen years later when a boat hit a reef and sank.

People died. The result – the whole research crew went to jail.

That is probably a harsh example, but it’s true and this was a real life situation. Mismanagement of a business will cost a client their money, livelihood and possibly a family if not a life. Can we live with a risk like that? Or would we rather make sure we do things right in our businesses all the time … with a sense of responsibility?

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Business Resource & Lifestyle | Issue 60 | November 2013

Why am I saying all this and what relevance does it have to my business? It’s all at the root of that sense of responsibility. Simply because it’s all about other peoples’ lives. Not paying at the designated time is theft, not supplying a decent quality product is also theft, and not coming to

work is theft. A lot of people can say that I’m going too far with this, but that’s exactly what it is. People are coming to us with their money.

They trust us with what they earned and some may have put up their house as collateral for a business loan. So, in my opinion it is immoral to present excuses like “I was busy”, “I didn’t have any time to organise a payment to you during the last three weeks (sometimes this could be 2-3 years)”, “My nephew had a car accident, a cousin had a heart attack and the cat ran away, so it was a terrible year and I couldn’t send you your money. Sorry!”

Let’s just stick to what we promised we would deliver in exchange for our clients’ money. And sometimes, just have the guts to say “Sorry, I can’t do this for you. You should find another company for this service.” Or you can help them to find an alternative supplier on that occasion … then they will come back to you in the future.

Let’s be more responsible and stop, making other people think about the best spot to throw us overboard. Whether it’s in Antarctica where the survival time in the water is about four minutes or at the equator where warm waters are the perfect environment for sharks and other hungry creatures. A sense of responsibility might keep our feet safely planted on the deck!

Have a great day. Take care of yourselves and your clients. G

e | editor@gwpmagazine.com.au

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1300 889 132 Business Resource & Lifestyle | Issue 60 | November 2013

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Proudly Presented by

Mayer Amschel Rothschild, founder of the Rothschild banking dynasty

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Business Resource & Lifestyle | Issue 60 | November 2013

World’s Most Influential

Schloss Hinterleiten, one of the many palaces built by the Austrian Rothschild dynasty. Donated to charity by the family in 1905

The

Rothschild Empire “things lie deeper than one thinks”

T

oday, according to the website, “Rothschild’s Global Financial Advisory business is focused on delivering impartial, creative and longterm ideas to clients across the financial advisory spectrum.

Services include mergers and acquisitions and strategic and financing advice”.

by Adrian Payne But behind the dignified facade of today’s legendary business empire there’s a story that began two hundred and seventy years ago with the birth of Mayer Amschel Bauer in Frankfurt, Germany. He was the son of Moses Amschel Bauer, a previously itinerant money lender and goldsmith who settled there in 1743.

In 1750, he opened a shop, known as a ’counting house’, or money lending business, on Judenstrasse.

(Jew Street). He placed a big red shield over the door. He adopted the shield as his ‘logo’ from the

Red Flag which was the emblem of revolutionaryminded Jews in Eastern Europe at the time.

At a very early age Mayer showed an amazing talent for business. His father spent a great deal of his time teaching him everything he could about money lending, although for some reason he didn’t expect Mayer to follow in his own footsteps, instead he hoped to have his son trained as a Rabbi. But Moses Bauer’s unexpected death meant that the synagogue was not to be young Mayer’s destiny after all.

Business Resource & Lifestyle | Issue 60 | November 2013

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Proudly Presented by When he was of age, Mayer Bauer went to work as a clerk in a bank owned by the Oppenheimers in Hannover. His unusual ability was soon recognised and he moved quickly up the ladder in the Oppenheimers’ business, being rewarded with a junior partnership.

Regardless of an assured career in banking offered by the Oppenheimers, he decided to return to Frankurt where he bought back the business his father had established in 1750. The big Red Shield was still above the door. Recognising the true significance of the Red Shield, Mayer Amschel Bauer changed his name to ‘Rothschild’. The name means ‘red shield’ in old German ... so the Dynasty of the House of Rothschild began.

The germ of an idea that eventually lead to the vast accumulation of wealth, came to him during the 1760s when Mayer Rothschild renewed his acquaintance with General von Estorff for whom he used to run errands while working at the Oppenheimer Bank.

The general was then attached to the court of Prince William of Hanau and was interested in rare coins. Mayer saw an opportunity and began buying and offering valuable coins and trinkets at discount prices. He soon had the general’s confidence and word spread to other influential members of the court.

One day he was summoned by Prince William himself. His Highness bought a handful of his rarest medals and coins. This was the first transaction between a Rothschild and a head of state and again the word spread, this time among other kings and princes around Europe, The Rothschild business by this means, became known and respected in the courts of kings.

To further his opportunities, he wrote his Royal clients letters, that played on their princely vanity while asking them for their business. He had begun to ‘advertise’ using ‘direct mail!’ The letters were particularly patronising in their complementary style, but his strategy brought some success. On September 21st, 1769, Mayer Rothschild was able to hang a sign over his door bearing the arms of Hess-Hanau. In gold letters it read: “M.

Lord Ferdinand von Rothschild (1839–1898)

A. Rothschild, by appointment (as a) court factor to his serene highness, Prince William of Hanau.”

Prince William was closely related to other royal families in Europe, he would hire out troops to any nation - a mercenary army in today’s terms.

His best customer was the British government who apparently used mercenaries to keep the American colonists under control. As a result of his patronage by Prince William, Rothschild had become an agent for this mercenary rental scheme.

He must have been a useful trader, because when William was forced to flee to Denmark, he left 600,000 pounds (around three million dollars) with Rothschild for safekeeping.

Lionel de Rothschild, whose colt won the 1879 Epsom Derby

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Business Business Resource Resource && Lifestyle Lifestyle || Issue Issue 60 60 || November November 2013 2013

It seems that Mayer, thinking that since Price William would be unlikely to come and claim his

money, he would instead put it to good use for himself and his family. He established branches of the House of Rothschild in London Berlin, Vienna, Paris and Naples. He appointed one of his sons to be in charge of each branch. Amschel went to Berlin; Salomon to Vienna; Jacob (James) to Paris and Kalmann (Karl) opened up the Rothschild bank in Naples. The headquarters of the House of Rothschild was and is, in London, at first under the founding hand of his third son Nathan to whom Mayer entrusted the funds ‘appropriated’ from Prince William.

The Jewish Encyclopedia for 1905 says that “Nathan invested the amount in gold from the East India company knowing that it would be needed for Wellington’s peninsula campaign.” Using this ‘borrowed’ capital amount, Nathan apparently

World’s Most Influential

A Rothschild house, Waddesdon Manor in Waddesdon, Buckinghamshire, donated to charity by the family in 1957

words ‘Concordia, Integritas, Industria’... Unity, Integrity, Industry. Of these, ‘Unity’ is at the core of the Rothschild business philosophy.

When Mayer died on September 19th, 1812, the founder of the House of Rothschild left a will that had only recently been written... in the previous few days in fact. In it, he laid down the ‘rules’ by which the House that bore his name would operate in the future.

He stipulated that all key positions in the House of Rothschild were to be held by members of the family and not by employees.

Only male members of the family were allowed to participate in the business.

The eldest son of the eldest son was to be the head of the family unless the majority of the rest of the family agreed otherwise. It was for this reason that Nathan, who was particularly brilliant, was appointed head of the House of Rothschild in 1812.

made four profits with four separate investments.

First on the sale of Wellington’s paper which he bought at 50 cents in the dollar and subsequently collected at par. Then on the sale of gold to Wellington. Thirdly on its repurchase, and finally on forwarding it to Portugal.

Members of the family were to intermarry with their own first and second cousins, in this way keeping their vast fortune in the family. This rule was strictly adhered to early on but later, when other wealthy banking houses came to prosper, it was relaxed to allow some of the Rothschilds to marry certain members outside the family.

Mayer’s business model was Dynastic from the start. The money lending business was always played close to the chest so he believed in keeping what he knew about his clients very much to himself, but that couldn’t last forever. When he despatched his sons to the European centres of finance to grow the business, he sent them with a philosophy that sits over the doors of the Rothschild properties to this day. The family crest displays the

Mayer Amschel charged his heirs and executors that under no circumstances whatever, would they have any public inventory made of his estate... He also forbade any legal action and any publication of the value of the inheritance... He went on to add, “anyone who disregards these provisions and takes any kind of action which conflicts with them will immediately be regarded as having disputed the will and shall suffer the consequences of so doing.”

Sybil Cholmondeley, Marchioness of Cholmondeley (1894–1989), painted by John Singer Sargent

The Frankfurt terminus of the Taunus railroad, financed by the Rothschilds. Opened in 1840, it was one of Germany’s first railroads

Business Business Resource Resource && Lifestyle Lifestyle || Issue Issue 60 60 || November November 2013 2013

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Proudly Presented by Also in his set of rules as part of the will, Rothschild ordered Beatrice de Rothschild’s villa on the Côte d’Azur, France a ‘perpetual family partnership’ and stipulated that the female members of the family, their husbands and children should receive an interest in the estate subject to the management of the male members. They were to have no part in the management of the business.

Anyone who disputed this arrangement would lose their interest in the Estate. This last stipulation was apparently designed to discourage anyone who might consider leaving the family fold. Mayer Rothschild The Rothschilds already had a significant fortune probably felt there were things that had been swept before the start of the Napoleonic Wars and the under the carpet that should stay hidden in the dust family had also been successful in the bullion where they lay. trade by this time. We have previously mentioned As the Napoleonic wars raged in Europe in the early 1800’s, Nathan Rothschild was assisting the British government to supply the British armies on the continent. Yet his eye was always on the best chance to acquire another pot of gold.

So he would personally travel across the English Channel to observe for himself the ebb and flow of battle. On the 15th of June 1815 he was on the hill of Hougoumont overlooking the battle-field of Waterloo. Seeing Napoleon’s army in defeat, he also saw an opportunity. He raced to Ostend, and faced with bad weather in the channel hired a brave but skillful fisherman, who on the promise of twenty-five hundred francs, took Nathan Rothschild to Dover, where he hired horses and rode like the wind to London.

Weary from the journey but excited at the prospects, on the morning of the 20th of June, Nathan arrived at the Stock Exchange. The market there was depressed as he expected. He set about giving out news of his latest expedition to the continent, confidentially of course. Gravely, he reported that Marshal Blucher had been defeated by Napoleon at Ligny on the 16th and 17th, and there could be little hope for Wellington with his comparatively small army. Quite deliberately, this story was only half true. The market responded by falling dramatically.

Nathan then purchased through his agents all the bills and notes he could find money for.

Next day on the 21st, official news of Wellington’s victory arrived in London. The mood in the markets was suddenly one of elation. Everything went up faster than it had gone down only twentyfour hours earlier. Nathan sold everything he had bought the day before at a handsome profit.

England was happy to celebrate the greatest victory in her history. Nathan of course was not rejoicing with the nation; his personal celebration was about another six million pounds in gold.

As Europe industrialised, the family banking business was pioneering international highfinance. They were involved with projects such as the building of the Suez canal which was completed in 1869.

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Business Resource & Lifestyle | Issue 60 | November 2013

David de Rothschild

that Nathan Mayer Rothschild was instrumental in assisting Wellington’s British war effort, organising the shipment of gold to Wellington’s armies throughout Europe, as well as arranging the payment of British subsidies to continental allies.

The brothers worked together across Europe and developed a network of agents, shippers, and couriers to transport gold across the war-torn countryside. Time after time the family network would provide Nathan in London with political and financial information ahead of other messenger services, giving them an advantage in the markets and making the house of Rothschild still more indispensable to the British government.

For example, the family network enabled Nathan to hear the news of Wellington’s victory at the Battle of Waterloo a full day ahead of the government’s official messengers. Nathan’s first thought was to the potential advantage this early news could give them on the market. He didn’t immediately let the government have the news, seeking to hold on to his advantage and let the government’s messengers arrive in their own good time!

Nathan Rothschild meantime, realised that the future reduction in government borrowing brought about by the peace would create a bounce in

Lionel Nathan de Rothschild introduced in the House of Commons on 26 July 1858

by Lord John Russell and Mr John Abel Smith by Henry Barraud, 1872

Lionel Walter Rothschild, 2nd Baron Rothschild, was born in 1868 into an international financial dynasty, but was destined to be famed as a zoologist and collector rather than as a banker

World’s Most Influential British government bonds after a year or two of inevitable post-war restructuring of the economy.

Nathan immediately bought up the government bond market, for what at the time seemed rather a high price. However he patiently waited two years before he sold the bonds on a crest in the market for a 40% profit. Given the huge volume of bonds that he had been able to buy, the forty percent return translated into a vast sum of money!

James, the eldest son of Mayer and Gutele had worked hard to build the business branch in Paris. After the Napolionic Wars he had invested well in railways and mining, helping France to industrialise. However, after James’ sons Gustav

When Nathan ran the London business he seemed to turn everything he touched into ‘gold’. We have some extra insight into the personality of Nathan Rothschild. Despite his extensive wealth and success, he was not a happy person. It seems he had few friends and many enemies. As he grew older he lived in constant dread of being assassinated. He was always receiving threatening and demanding letters. As a result he acquired a very nervous disposition.

One morning two strangers called on him with ‘important business’. They were shown into his office. He asked their reason for wishing to see him. They said nothing, but moved toward him,

with letters of introduction, interested in doing legitimate business.

Many films have scratched the surface of the Rothschild family story. The 1934 a film called ‘The House of Rothschild’, with George Arliss and Loretta Young, featured the life of Mayer Amschel Rothschild. Clips from this film were incorporated into the Nazi propaganda film ‘Der ewige Jude’ (The Eternal Jew) without permission! Another Nazi film, ‘Die Rothschilds’ (also called Aktien auf Waterloo), was first screened in 1940. A Broadway musical called simply ‘The Rothschilds, covering the history of the family up to 1818, was nominated for a Tony Award in 1971. The Rothschild name comes up in Aldous Huxley‘s novel ‘Brave New World’ and the name Rothschild is said to have inspired the song “If I were a rich man”.

In the 19th century, the Rothschild family probably owned the largest private fortune in the world.

The family’s wealth is said to have declined substantially, as a result of it being shared among so many descendants. These days the family businesses are much smaller than they were but still include finance, mining, energy, mixed farming, wine and charities, as their main activities.

Guy de Rothschild on the cover of Time Magazine, 1963. and Alphonse had taken over the business, and were doing well, in 1982, the socialist government of Francois Mitterand nationalised their banking business renaming it ‘Compagnie Européenne de Banque’ With typical tenacity, the Rosthschilds decided to stay and rebuild under the name ‘Rothschild & Cie Banqu’, which they did with only a million dollars capital, and just three employees.

To this day, the other branches of the family business continue to prosper in Naples, Frankfurt and of course London.

The Rothschild clan

Nathan Rothschild’s hair-trigger nerves took over as he thought they must be a couple of murderous extortionists!

Johann Wolfgang von Goethe, noted German writer and politician said in 1828 “It all amounts to this: in order to do something, first you must be something. We think Dante great, and he had a civilisation of centuries behind him; the House of Rothschild is rich and it has required much more than one generation to attain such wealth. Such things all lie much deeper than one thinks.”

Goethe’s observation is seemingly wise, but I wonder what it was he saw that “lies so much deeper”, and what is it we could learn from the Rothschilds while building a business in Sydney’s today. Doubtless there’s an important lesson in there somewhere... If only I could put a finger on it! G

From behind his large desk, he grabbed a heavy ledger and hurled it at their heads, yelling “murder ... murder”. Clerks from the outside office came to his aid and roughly restrained the visitors.

They turned out to be wealthy Polish Bankers

David de Rothschild on The Plastiki Business Resource & Lifestyle | Issue 60 | November 2013

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PUBLISHER’S GUEST

Publisher’s Guest

Lord Mayor John Chedid with Dmitry Greku, Publisher/Editor, GWP Magazines

Lord Mayor Cr John Chedid explores plans to activate the Church Street Mall. He is flanked by public activation specialists Ethan Kent and Prof Ed Blakely.

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Business Resource & Lifestyle | Issue 60 | November 2013

PUBLISHER’S GUEST

Lord Mayor of Parramatta, Cr John Chedid has begun his third term as Lord Mayor of one of the fastest growing communities in Australia. He is one very few lord mayors who have been elected to consecutive terms.

Metropolitan Strategy as the premier regional city. And after many years of planning, they’ve identified Parramatta as a key hub. There is only so much growth the Sydney CBD can physically handle. And Parramatta is the geographical centre of Metropolitan Sydney.

It makes sense for corporations to grow roots here, and it makes sense for employees to locate here to access all of the new employment opportunities.

DG: This brings us to the point about our population and our very congested transportation route...

DG: Lord Mayor, what will this extended term mean for you and for the City of Parramatta?

JC: I feel very privileged to have an opportunity to see some of our initiatives mature, helping longer-term projects develop from concept to reality. Fortunately, there are many, many exciting projects in progress at the moment, and they all benefit from consistency in the leadership from council.

JC: I think the Western Sydney Light Rail Network will be another important project in Parramatta’s future crown.

As you know, one of our great City’s challenges is a roads system that struggles to keep pace with the growth and vitality of Parramatta.

We’ve invested a million dollars on a feasibility study into the Western Sydney Light Rail Network.

The results of the study were clear. A Light Rail Network for Parramatta is absolutely feasible!

DG: Which of these projects is the most significant to you?

The study also identified priority routes to connect the CBD and existing rail networks with Castle Hill to the north and Macquarie Park to the northJC: Parramatta needs to take its rightful place as east. Our next step is seeking between ten and a world class city. Bringing us there requires a lot twenty million dollars for the very detailed study of action that collectively will work to make this a into the business and engineering challenges of reality. It’s all important.

Young Citizen Alex Roberts Mayor Michelle Byrnethe project.

DG: I’m assuming the Parramatta Square project is the jewel in the crown for Parramatta?

JC: Certainly one of them. I am so pleased that Parramatta Square has finally become a reality.

Council has worked very hard to bring this project from the drawing board to reality. And it’s happening right now!

Parramatta Square Stage 1 at 169 Macquarie Street has already been approved for construction

by Leighton’s. It’ll be the first step to catering to the 47,000 or so new jobs the CBD will need over the next 25 years to match our population growth.

And like a pulsing beacon for Metropolitan Sydney’s surging business and residential market, the Aspire Tower, slated for 160 Church Street, will stretch 90 stories into the air, the tallest residential tower in the Southern Hemisphere.

From the viewing platform, we will gaze over the Sydney Harbour Bridge to North Sydney. And they all, in turn, will see Parramatta Aspire!

DG: Sounds like the City of Parramatta is coming into its own. What is contributing to the growth and development we are seeing in private sector development?

JC: For the first time last March, the city’s significance in the development of the State and Country was fully recognised in the State’s

Like everything worth doing, the project is a challenge and requires planning and commitment.

And with a price tag of 800 million for the Castle Hill run and 900 million dollars for Macquarie Park, it needs state and federal investment into the region’s infrastructure to meet the needs of the future generation.

DG: How important is this rail link to the future development of the city?

JC: Even these two links will connect the city’s workers in the Hills District to the CBD, to the educational precincts, and to our world class biomedical precinct at Westmead. It’s only through the efficient and convenient movement of our human resources that we can grow and mature as a world class city.

DG: Speaking of “world class,” you’ve used those words to describe the research and medical services at Westmead. What role does this play in your future vision of the City?

JC: In June, six medical and research partners and the city signed a historic agreement to work together as one health precinct to plan and lobby for the investment the area needs, infrastructure like parking and roads and retail and housing. This is a key area – four hospitals, three research institutes.

The precinct already serves about two million people in the Western Sydney area. By 2038, a mere 25 years from now, Westmead will be serving more than half of the greater Sydney population.

DG: Your recent study trip to the US seems to have made quite an impression on you? What was it about the way America approaches cities that you took away as lessons for Parramatta and how have you applied them since returning to Parramatta?

JC: The tour, run by well-known planning expert Professor Ed Blakely, explored some of the best and worst examples of urban activation along the west coast, from California to Oregon, and then to New York City. We discovered that cities came alive when you create the right conditions for social and cultural activities in the public domain – activities that appeal to a wide range of people.

We also learned that there is no reason to wait to do this. So we aren’t!

We came back with the firm commitment and inspiration to energise three key areas: the Church Street Mall, the river foreshore and our new Parramatta Square development. To help guide us in this process, we have actually brought Professor Blakely onto our urban activation committee, along with another American, a “place-making” expert called Ethan Kent.

DG: Sport is a priority for you and your Council colleagues. How important is the sports economy to Parramatta, and where do you see it going in the future?

JC: It’s true, sport is important both to Parramatta’s culture and to our economy. Our fledgling soccer team, the Western Sydney Wanderers attracted 183-thousand people to their 14 home games – pumping 17.3 million dollars of outside money into our economy. That’s a significant injection – not just of dollars, but also of pride and spirit. And the Eels are simply part of the DNA of our City.

Even during a season that wasn’t their best, they still attracted 100,000 fans, who introduced ten million dollars of new money into the economy.

DG: And so, for the year ahead, what can readers expect from the Lord Mayor and Parramatta Council?

JC: The City of Parramatta is on the move, and we’ll be working to keep it on course and develop a prosperous city for the people. Just as each of the stages of Parramatta Square have been subject to design competitions and really good activation of the public spaces, the same standards will apply to other developments in the City. We want to implement policies and processes that meet the world’s best standards.

And we are starting at the point of design excellence, not limitations of height or bulk or other restrictions. This is our city for the future, and we will be proud of it. G

Business Resource & Lifestyle | Issue 60 | November 2013

17

Leadership

Envirocrats Hijack Kokoda The Hon. Charlie Lynn - Member of the Legislative Council

There wouldn’t be a fair-minded Australian who would decry our responsibility to support developing countries in our region. Whilst the Melanesian island chain to our immediate north is gifted with abundant mineral, energy and agricultural resources the social indicators are at the bottom end of international gauges.

They therefore rely on help from the international aid industry to assist in addressing education, chronic health problems and infrastructure development. Unfortunately international aid assistance can be corrupted when donor countries are more motivated by securing votes within the United Nations than with the development of social and economic infrastructure in third world countries.

The obscene waste of taxpayers’ money to fund settlements of illegal immigrants on Manus Island and Nauru are recent examples of Australia’s political will being imposed on neighbouring Melanesian nations for our benefit - not theirs.

Australians have every right to be cynical whenever their hard-earned donor money is misdirected to support hidden political agendas, bleeding heart causes and cronyism within the aid industry.

The hijacking of the Kokoda Trail by Canberra based environmentalists and their cronies is worthy of a case study into the impact of government intervention in a third world freeenterprise system.

Business and politics use numbers to evaluate success. If the ‘bottom line’ was applied to the emerging Kokoda trekking industry they would be placed in receivership.

A threat to establish a gold-mining lease over a large section of the Kokoda Trail in 2006 caused the Australian Government to ‘assist’ Papua New Guinea with the development of a World Heritage Listing for the Owen Stanley Ranges. The task was allocated to the Department of Environment, Water, Heritage and Arts and teams of Canberra

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Business Resource & Lifestyle | Issue 60 | November 2013

based envirocrats were soon dispatched to reconnoitre the area.

Pioneering trek operators were labelled ‘commercial’ and shrewdly isolated. Stakeholder forums, capacity building conferences and awareness patrols led to a ‘Joint Agreement’ to arrest the impact of global warming and carbon offsets in the Owen Stanley Ranges. The military heritage of the Kokoda campaign didn’t rate a mention but the word ‘Kokoda’ was hijacked and used to give relevance to projects that would otherwise be unremarkable.

Staffing numbers in the PNG Kokoda Track Authority increased 10-fold and a budget of more than $20 million was allocated. Australian aid workers with generous tax-free incentives and ‘danger money’ allowances were employed along with a conga-line of consultants providing 10-point plans to problems they didn’t understand. Sympathetic NGOs/charities in search of a cause were invited into the honeypot.

Papua New Guineans refer to it as boomerang aid as most of it ends up back in Australian pockets.

Pet environmental projects were initiated out of Canberra without any consultation with local authorities or communities. ‘Village livelihood projects’ were initiated without any consultation with ‘commercial’ trek operators who actually generate the income for the industry.

The wartime history of the Kokoda campaign was relegated. Australian ‘volunteers’ were enlisted to do ‘track maintenance’ – work the local communities had been doing for generations.

Massage parlours were built in ignorance that such a concept is foreign to local Koiari and Orokaiva culture. Kokoda maps were produced and later trashed because they were inaccurate.

Sacred wartime historical sites were desecrated because some enviro-goon deemed them to be ‘unsafe’.

To avoid accountability the Kokoda Trail was redefined to the ‘Kokoda Corridor’ which doubled the size of the area and included national parks, a major dam, a 90 kilometre stretch of road, the capital of Oro Province and two beachside villages on the North Coast. An envirocrats smorgasbord! Any queries regarding the wartime integrity of the trail would be met by a sermon on the ‘bigger picture’.

After five years it is time to take stock. The terms of the ‘managers’ have expired and most have left with pocketfuls of tax-free booty. Some NGOs remain in search of a cause and a couple of academic freeloaders continue to hang around the office in search of a ‘consultancy’.

Since the Canberra cavalry arrived to ‘save the trail’ in 2008 trekker numbers have crashed from 5621 to 3597 in 2012. That’s bottom line reality!

Glossy ‘codes of conduct’ and ‘trek operator licensing conditions’ have been rendered meaningless by the lack of supporting legislation.

Issues related to ‘management accountability’ for trek operations along the Kokoda Trail have been cleverly avoided. There is no campsite booking system. No management of trek itineraries. No requirement for trek operators to carry public liability insurance. No provision or protection for the welfare on PNG guides and carriers. No coordination of trek operator itineraries. No system of recording who is on the trail at any time – which route they are trekking over and where they might be at any particular time. There is still no plan to protect the wartime integrity of the Kokoda Trail.

In fact, after the expenditure of more than $20 million of Australian taxpayers money there is no evidence of a single management protocol in place for the Kokoda trekking industry. The only memoirs of Australian envirocrat presence are a few glossy reports adorning their walls in Canberra.

Our friends in Papua New Guinea have been left with a meaningless model for the development of a wartime tourism industry.

Hopefully Prime Minister Tony Abbott will require envirocrats to put their hands in their own pockets in any future endeavours to ‘assist’ our Melanesian neighbours. G

For more topics and to contact Charlie Lynn, please visit www.charlielynn.com.au/blog.

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19

Leadership

A New Federal Government, What does This Mean for Small Business?

Stephen Frost, Managing Director – BREED Inc

I do not normally comment publically on politics, but given that I have been involved in the political arena for just on 40 years including a five year stint as Chief of Staff to a Federal Member of Parliament who also held the Office of Parliamentary Chair of ASIO, I have experienced quite a few changes of Government and am privileged to have had enjoyed an “insiders” perspective

We see all sides of the parliament beating their chest saying either “they have wrecked the nation we need to get rid of them” or “if you elect them they will wreck the nation”.

In reality, whilst all new governments tinker with the previous Government’s programs, and change some policies, most times, there is relative little effect to the operation and bottom line of small businesses. An obvious exemption to this was the Tax Reform Package and the introduction of the Goods and Services Tax. Prior to the election we heard doom and gloom about the financial position of the nation but the independent assessment commissioned by the new government has revealed that Australia is in a sound position, a position envied by the rest of the world. Yes there is a large government debt but lower than most other countries and well within the nation’s capacity to pay. Most of the budget deficits from the previous government were spending to prevent the nation from going into recession. A significant proportion of this was investing in capital works in schools that the State Governments had not maintained over the years. This should be seen as an investment in the nation’s future, not dissimilar to previous governments building the Harbour Bridge and the Snowy Mountains Hydroelectric scheme. The building investment in the “Building Education Revolution” by the previous government kept a lot of people (directly and indirectly) in work whilst most countries went into recession with high unemployment.

There is nothing wrong with borrowing money so long as you can afford to service the debt; we all do it to buy houses and cars. It is my view that investment for the future should not be borne by one generation, it should be spread across the

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Business Resource & Lifestyle | Issue 60 | November 2013

generations that will enjoy the benefit of the asset, similar to tolls on major roads for a 20 to 30 year period.

Tony Abbot has said he wants to be remembered as the “Infrastructure Prime Minister”, I sincerely

Stephen Frost is the Managing Director of BREED Inc, with the philosophy that Education + Employment = Economic Development. BREED has been managing a variety of youth, education and business programs for more than 20 years.

In reality, whilst all new governments tinker with the previous Government’s programs, and change some policies, most times, there is relative little effect to the operation and bottom line of small businesses. An obvious exemption to this was the Tax Reform Package and the introduction of the Goods and Services Tax. hope he does invest in the nation’s future, not only to keep people in employment and the economy growing, but making the nation better for us and future generations.

The government has earned the right to remove the tax on carbon but it may have difficulty getting the relevant legislation through the senate. Assuming it can do a deal with the independent senators, this should provide businesses and individuals respite on the additional costs added to electricity and other goods and services by the tax. However, being a sceptic I suspect that few of us will see the promised reduction on our invoices; I hope I am proved wrong!

In the short term it should be business as usual for business. We live in hope that the “Infrastructure Prime Minister’s” plans sees more contracts for small businesses and Australian businesses, not predominately large foreign owned multinational companies, and a reduction in the taxes we pay. G

If you want more information or assistance in developing a partnership with local schools or community groups contact your local Partnership Broker listed below.

Members

Blacktown www.breed.org..au p | 9853 3200

Parramatta www.aussip.com.au p | 9633 7100

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Penrith www.schoolsindustry.com.au p | 4725 0310

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21

LOCAL Government

Sydney Hills Events – Summer Season

Celebrate life in The Sydney Hills with a choice of fantastic events and entertainment this Summer. Why not reward your staff for their hard work all year with tickets to Shakespeare in The Park or high tea at Bella Vista Farm Park?

High Tea at Bella Vista Farm Park Saturday 16 and Sunday 17 November Take a sumptuous ‘High Tea’ with friends at Bella Vista Farm Park. Meet the actors from Sport for Jove ‘in costume’ who will be performing at this year’s Shakespeare in the Park. Receive champagne on arrival and have a photo opportunity to remember this special event by.

Enjoy an exquisite selection of teas and food delights on beautifully set tables in the charming homestead rooms, especially themed for this event. This is a must-do experience that is sure to indulge your senses Tickets: $70 per person www.eventbrite.com.au A Feast of Speakers Tuesday 19 November Enjoy a day of author talks to celebrate writing fantasy, memoirs, picture books and biography at Castle Hill Library. Find out more at www.thehills. nsw.gov.au/library Shakespeare in the Park Performances throughout December Prominent Sydney Shakespeare company Sport For Jove integrates engaging stories with the great outdoors, weaving the magic of Shakespeare

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Business Resource & Lifestyle | Issue 60 | November 2013

through the natural environment of Bella Vista Farm Park and the historic homestead - creating a memorable theatre experience.

This year’s theme is ‘Come to the Party’ and features two finely crafted romantic comedies – presented in a way that is accessible for everyone.

Shakespeare’s Much Ado About Nothing directed by Adam Cook, starring Tim Walter, Matilda Ridgeway and Julian Garner - is a gutsy romantic comedy with a very dark side.

And a new adaptation of the French masterpiece, Edmond Rostand’s Cyrano de Bergerac - written and directed by Damien Ryan and starring Yalin Ozucelik, Scott Sheridan and Lizzie Schebesta tells the tale of the beautiful Roxane and the man who would love her, but for his outrageous nose!

The Sydney Hills Summer Shakespeare Festival will also feature a series of special events including The Second Age Project, a dynamic new initiative featuring young actors performing a new work, devised and directed by George Banders and Francesca Savige, called Exit, Pursued by a Bear.

The show will be a curtain-raiser to the main acts.

Tickets are on sale now at www.sportforjove.com.au Top Australian Art Sale and Show Friday 22 – Sunday 24 November Browse premium art when Kevin Hill’s Top Ten Australian Artists come to the Sydney Hills featuring works by Max Mannix, John Vander, Otto Kuster, John Bradley and Ian Hansen - who was commissioned to paint the tall ships entering the Sydney Harbour for the 2013 fleet review. Meet the artists across the weekend and fall in love with

an outstanding work for your boardroom or living room.

The exhibition will be held at Castle Grand, cnr Castle and Pennant Streets, Castle Hill. More information can be found at www.thehills.nsw.gov. au or www.kevinhillstopten.com.au Australia Day 2014 It’s just not summer without a big Australia Day celebration. Join X-factor sensation Samantha Jade and a host of great entertainment at The Hills Shire Council’s 2014 Australia Day Celebrations.

Held at Balcombe Heights Estate on Seven Hills Road, Baulkham Hills, Australia Day is a fun, family event with rides, shows, food and a fantastic fireworks finale. G Like us on Facebook, follow us on Twitter or visit Council’s website www.thehills.nsw.gov.au for more information about the Sydney Hills Events Summer Season.

The Hills Shire Council p | 02 9762 1108 e | enquiries@sydneyhills.com.au w | www.sydneyhills.com.au

REWARD YOUR TEAM THIS CHRISTMAS Why not replace the traditional Christmas bottle of wine with an experience they’ll never forget? Group discounts apply for 12 or more.

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SHAKESPEARE IN THE PARK ‘Come to the Party’ Outdoor Season Performances throughout December in the beautiful setting of historic Bella Vista Farm Park.

7—30 December 2013

TICKETS ON SALE NOW AT www.sportforjove.com.au “What I love about Sport for Jove is their sense of community. There is no divide between the actors and the audience like you see in some theatre.

The actors are actually glad the audience is there so they can play to them.” —Adam Cook, Director

“Shakespeare in the Park is a fantastic community event that attracts people from all over Sydney to experience first-class theatre. And all set in our community’s beautiful historic Bella Vista Farm Park – what a way to end the year.”

—Mayor of The Hills Shire, Dr Michelle byrne Business Resource & Lifestyle | Issue 60 | November 2013

23

Business Advice

Existing to Survive or Thrive?

Darryn Fellowes, Wealth Adviser - Skeggs Goldstien

Running a successful family business can be very difficult at times and requires skills that sometimes are not present in all of us. In some ways it is no different to being an elite sports person. You need to not only work hard, but also closely with your professional advisers to ensure you and your business remains at the top of its game at all times A new survey researched and prepared by RMIT University titled “MGI Australian Family and Private Business Survey 2013” has confirmed what many small business owners have been experiencing, feeling and thinking over the past couple of years. Business has been tough!

In fact, since 2006, the research shows a large increase in the percentage of business owners who have become concerned about the financial future of their business (up from 31% in 2006 to 58% in 2013) and for the future of the industry they operate within. This is evident in the fact that the majority of respondents had little or no growth in profitability or market share in the last three years.

In addition to the financial performance of their businesses, respondents to the survey indicated the following challenges being of most concern to them: • Letting go of leadership and ownership control • Having adequate capital available for future growth plans • Structuring the ownership of the business for the next generation and • Cash being available for family owners to exit the business But despite these concerns, the research shows that small business owners have not made any attempts to improve their business planning or governance over this time with the vast majority not implementing best practice procedures for their business. Here are some of the statistics: • 62% of businesses do not have a formal Board of Directors • 55% of businesses do not have a strategic plan

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Business Resource & Lifestyle | Issue 60 | November 2013

• 48% of businesses do not have a business plan • Only 30% of businesses has a Successor Program in place With the average age of Small Business owners now 58 years of age (with 37% of all owners being over the age of 60), the need for advice around planning and structuring for the future has never been more important.

For owners who want to have a thriving business rather than a business in survival mode we recommend implementing a process that allows them to work on their business rather than just in it. Below are the steps we believe will give the best results: 1. Identify your most Trusted Advisors Partner with a professional who has business expertise and the ability to understand all aspects of your personal and business life. This trusted advisor will provide advice, guidance and accountability on helping you achieve business and personal success.

2. Understand the Key Value Drivers of your Business Understanding the key value drivers of your business will assist you in achieving best practice and ensuring your business is ready for sale at any time. Below are 7 business value drivers below you can use to compare with best practice in your industry: • How efficient are your systems?

• What is the degree of principal owner reliance?

• Do you benchmark performance against competitors?

• Are your products innovative and different to competitors?

• Do you have motivated staff?

• Do you have a documented succession plan?

3. Development of a Business Life Plan Developing what we call a “Business Life Plan” is a comprehensive process that takes into account all available growth and succession options for a business to enable them to make informed decisions about their future no matter what stage of life the business is at. Areas discussed and evaluated should include: 1. Financial Performance and metrics 2. Owners plans, ambitions and expectations

3. A SWOT analysis 4. Current Business Valuation 5. Potential growth areas 6. Strengths of the management team 7. Succession plans and options 8. Comprehensive action plan 4. Development of a Succession Plan Succession planning tends not to become a priority until it is too late. If your business is your major source of income and wealth, you must do all that you can to protect its current and future value. Situations like ill health, a partnership dispute or a relationship breakdown can cause a once successful business to fail.

5. Understanding and engaging with your staff A good business is generally a reflection of the people working in it. Without good staff you will have difficulty growing your business and as a result the business will remain owner reliant.

This can have an adverse effect on the value of your business and any future succession plans. Therefore it is important to introduce a Program into your business that will help attract, retain, engage and motivate your staff so your succession plan is successful.

6. Implementation – who is going to keep you accountable?

Business success all comes down to the success of your implementation. The establishment of an Advisory Board can provide accountability and ensure the business plan is being implemented through continual monitoring and updating. G Skeggs Goldstien is fully equipped to provide business owners with all the necessary tools and accountability to drive a business forward to ensure you achieve success. Please call us to arrange an initial consultation on how we can help your business thrive.

Skeggs Goldstien Associates p | 1300 753 447 e | admin@sgapl.com.au w | www.sgapl.com.au

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Business Resource & Lifestyle | Issue 60 | November 2013

25

Business Advice

Reflections of a Small Business Owner Chris Westacott, Managing Director – The HR Department

In 2001, when I commenced my business I really did not know where my business journey would take me.

As an HR specialist with many years of experience, I always knew and understood the importance of having a good team for organisational success.

Twelve years on having now employed another person to increase our team to 10 I thought I would share my learnings with you on the journey so far.

• As the leader you need to set the vision for the organisation. Our company provides professional services to other organisations that come to us because they are in trouble; our job is to help find the best solution for their business. We need to be responsive to their issues and practical in our solutions (there is no point giving them a Rolls Royce solution when they only need a Holden!). This means our vision must be focused on customer service - providing real solutions to solve our clients’ real problems.

• Over my many years working in HR and with HR people, I always believed that the people I knew would be the best people to work with in my business. Ironically, if I was asked this question by a client I would have told them that they needed to separate their personal relationships.

The focus should be on getting people to join their business if they have the right fit culturally and the drive for the organisation’s future. After a number of failed attempts (hiring friends) our company now is very diligent in the way we employ people to join the team. We ensure our ‘people’ have the aptitude and most importantly the right attitude to ensure they fit into the team. We employ 10 staff, the procedure used when bringing a new staff member on board is a team process. The current team interview and sign off before I even meet with the prospective employee. This process has created a team of professionals, focused on working as a team and delivering solutions as a partnership to each individual client. This has translated for me into a successful business.

• Our team must be motivated. This motivation must extend beyond turning up to get paid. Small businesses do not have the resources to pay staff

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Business Resource & Lifestyle | Issue 60 | November 2013

what they can often get with bigger companies.

However, from experience, no matter how much people get paid if the culture does not work, then people will never be satisfied with the amount of money that hits their bank account each fortnight.

In small business, owners are able to be more focused on the individuals that work for them.

to ensure the success of our business.

Establishing this business was one of the best things I have ever achieved. I have surrounded myself with people who have complementary skills, who are dedicated to providing real solutions to solve our clients’ real problems and I

Establishing this business was one of the best things I have ever achieved. I have surrounded myself with people who have complementary skills, who are dedicated to providing real solutions to solve our clients’ real problems and I have ensured they have the necessary resources to deliver in their individual roles.

They can and should create an environment where staff are engaged in the business. Our team knows what is happening in the business at all times. They are encouraged to contribute their ideas and know that everyone (including me as the business owner) will consider their input. Every decision made is based on how it impacts upon our vision; to ensure our clients get the solutions they need for their businesses to succeed. In our team, each member knows that they are valued as a crucial piece of the puzzle, none more important than the other. They know that being part of the team is an integral component of ensuring the business’ success; if one team member operates individually the “team” relationship falls apart.

• When I first started my business I worked out of the study in my home. Now, the HR Department has professional offices at Norwest. This includes a training facility, meeting rooms and all of the services expected of a professional firm. The decision to invest in infrastructure that supports the operations of the HR Department was not without its risks however, it provided the team with a place they can call “home” and the tools necessary so that the lack of infrastructure and systems did not impact upon either their performance or the performance of the business as a whole. This proved to be the right investment

have ensured they have the necessary resources to deliver in their individual roles. This journey has been frustrating, difficult, enlightening and satisfying. On the way both myself and the team have grown professionally and personally.

Together we have created something of value to our clients, our team and also to me as the business owner. G If you’d like to hear more about how my journey can save you from perhaps making mistakes in your business call and we can have coffee and a chat.

The HR Department p | 02 8850 6124 e | elly@thehrdepartment.com.au w | www.theHRdepartment.com.au

You can focus on your core business HR SUPPORT AND ADVICE WHEN YOU NEED IT MOST

· HR Framework · HR Helpline · HR Consultants · HR Education

BENEFITS: access to skills and expertise when you need it

cost effective

The HR Department was born out of the realisation that there are thousands of small to medium business without dedicated human resources professionals to help. Statements kept arising which made it clear businesses needed help.

“I spend so much time on staff problems I don’t seem to have any time for my own work” “I go home every day feeling like I’ll never catch up” “I need to reduce my costs but I can’t see how” “ I want to go back to my core business”

The answer was not to put on a permanent staff member for many reasons · fear of increasing risks in employing permanent staff · not getting the broad experience needed in the budget you can afford to employ a permanent employee

OUTSOURCING IS A PROVEN STRATEGY TO MAXIMISE BUSINESS EFFECTIVENESS

It helps: save money improve process limit exposure to risk access high level expertise ensure compliance with employment legislation

P: 02 8850 7124 The HR Department | Suite 515 | 2-8 Brookhollow Ave | Baulkham Hills | NSW 2153 www.realiseperformance.com.au Business Resource & Lifestyle | Issue 60 | November 2013

27

Feature

Lifelong Learning will Sustain Businesses into the Future Stephen Ryan - Contestable Funding Manager, TAFE NSW – Western Sydney Institute

There was a time not so long ago when people left school and attended university, commenced an apprenticeship or enrolled in a TAFE course. This was in the main the extent of their post school education.

For several years now it has been widely recognised that one’s learning can stretch out over their lifetime. Educators and employers alike chant the mantra ‘knowledge is power’ and more practically speaking, knowledge is now considered a marketable commodity in the business environment (Field, 20061) and education is considered a social elevator.

For me, lifelong learning was something I had embarked on unknowingly. My own story, along with the stories of many of my TAFE colleagues, is an interesting one and may benefit those yet to discover the attributes of lifelong learning.

TAFE Teachers must hold qualifications not only in their chosen field of expertise but also they must hold teaching qualifications. So by becoming a TAFE teacher, a person has embarked on lifelong learning and changed careers. For those of us who then move into management or administration roles within the Vocational Education and Training (VET) sector, we then retrain and acquire further skills and qualifications in the management arena.

With so many of its staff experiencing learning at different stages of their lives, TAFE is in a strong position to advocate lifelong learning and facilitate its benefits to industry. These benefits include increased staff morale and self-efficacy along with increases in productivity. At TAFE WSI we see this as a win-win situation for both our students and industry partners and employers.

For me the opportunity to change careers and experience a dynamic and interesting work life has been made possible by education and the embracing of lifelong learning. At all points of study and career change the main driver for my continued education was the growth and realigning of the businesses I was working in.

Business partners of WSI are also recognising and embracing the benefits of lifelong learning.

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Business Resource & Lifestyle | Issue 60 | November 2013

Penrith City Council’s General Manager Alan Stoneham with Penrith City Council trainees

Ada Cheng, Chief Executive Officer of Australian Nursing Home Foundation (ANHF) believes lifelong learning is important to ensuring good workplace practice. ANHF sponsored training is considered a reward by the staff as current skills are recognised and new skills are gained.

Ms Cheng says that trained and motivated staff who are willing to continue to learn enable the organisation to stay relevant into the future.

Another of WSI’s partners, Penrith Council, has for many years recognised the importance of lifelong learning and the contribution it makes to business outcomes. General Manager Alan Stoneham says Council has recognised the need to forge strong partnerships with regional education institutions such as TAFE WSI. “We encourage all staff to study or expand their qualifications as part of our commitment to lifelong learning as well as our efforts to ensure Council attracts and retains the best people,” Mr Stoneham said.

“Council’s involvement with TAFE NSW - Western Sydney Institute has included the delivery of innovative training programs. Since 2000 we’ve employed almost 500 trainees who have spent a year with us, learning about Local Government and gaining formal, recognised qualifications related to their work that has helped kick-start their careers.

“Council has also partnered with TAFE to up skill staff, primarily in our Children’s Services sector, to ensure we continue to meet the highest standards,” Mr Stoneham said.

My current role of Contestable Funding Manager for WSI sees me working and collaborating daily with small and large business and government agencies as we facilitate apprenticeships and traineeships across Greater Western Sydney and beyond.

We are currently seeing an increase in the age of apprentices with some now starting apprenticeships in their late twenties with their apprenticeship being a second and sometimes third career change. State Training Services (STS) reports that the average age of apprentices in NSW over the last five years has increased to between 25 – 45 years. STS figures also show an increase in the over 60 year old apprentice market, with enrolments growing from 15.2% of the apprentice market in 2011 to 19.5% in 2012.

So it certainly appears that lifelong learning is here to stay and sustain us all into the future. G 1. Field, J. 2006. Lifelong learning and the new Educational Order.

Trentham Books: Staffordshire, UK

TAFE NSW - Western Sydney Institute (WSI) p | 02 9208 9991 e | Stephen.B.Ryan@tafensw.edu.au w | wsi.tafensw.edu.au

You don’t need to be a

superhero t o change

the world

“Education is the most powerful weapon which you can use to change the world.”

Nelson Mandela

G e t k n ow l e d g e Get skills Get equipped mywsi.com.au 131 870 Business Resource & Lifestyle | Issue 60 | November 2013

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Business Advice

Online Business Models: Myths Vs Reality - Part I Daniel Moisyeyev, B. IT – GWP Media

What is it about doing having an online business that became so attractive in recent years? The recent perception of success and popularity of social media platforms, some (!) online retail projects and the growth of the mobile app industry has fuelled a massive wave of aspiring digital entrepreneurs with “internet billionaire” dreams. I have personally met a lot of them – as I have been a professional web and software developer for quite some time. I have also had the chance to bring their ideas to life and watched some fail and some succeed. In this article I hope to outline some of the realities behind online business models.

Online Business Models Websites do not produce passive income on their own with the exception to a technique called “website monetisation” (more on this later). Earning money through an online enterprise requires a valid business model – just like any offline business.

You will need to develop a way to sell a legit product or service to your end users. This may be some sort of a subscription service that customers will pay to use (see “Free Culture” below) or you may be selling tangible goods. In the latter case, this type of business is called Online Retail.

Online Retail business model involves running an online store, selling products and delivering them to clients. This is the most straightforward and legitimate way to make money as an online enterprise. Your competitive advantage would have to be a wide choice of products, goods delivery and customer service. And don’t forget the main benefit you will have to offer – a lower product price than offline stores (easy), as well as other online vendors (very difficult).

Online ventures besides retailing become very tricky to execute and turn into real profit-making businesses.

Free Culture The Internet bred a very interesting phenomenon that I refer to as the “Free Culture”. The overall intangible, digital and easily accessible nature of software applications, websites and online services has led to expectations that everything available via the World Wide Web should in fact be free.

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This culture is now so heavily engraned into the mentality of the general public of all generations, that there is simply no turning back at this point.

Take a moment to look through the amount of high quality Open Source software packages available at no charge, think about the shameless trade of MP3 and Video files and consider that major news corporations still can’t figure out how to establish successful online portals where customers are happy to pay to read news just like the old times (search the subject of paywalls). If you are planning an online enterprise where people are expected to pay for a subscription service of some kind and receive no products they can feel or touch, get ready for the fight of your life to earn even a dollar.

Everything online is free and this culture is now set in stone.

Website Monetisation Website monetisation is an old, tried and tested technique for producing income from a website. It involves converting the visitors to your website into real cash money by using digital advertisements – these are the banner ads you see on some of the larger websites. This technique was used since the days when the World Wide Web was still a baby and nobody was taking it seriously.

These banner ads are managed and served by dedicated vendors. Google provides a service called AdSense that offers this capability. You may have heard of Google AdWords over a million times by now, but very few know about Google AdSense and how it functions. Advertisements are paid for by advertisers that specify such that their ads appear on websites with a certain topic (e.g. real estate) and the vendor handles the behind-thescenes technicalities.

If one of your visitors clicks an advertisement on your website, you will get paid a certain amount.

For example, you may get paid 20 cents per click.

Let’s do some simple arithmetic. Assume the 20 cent per click rate is consistent and real, and on average 1% of your visitors will click a banner advertisement. If your website has 10,000 legitimate visitors per month, that is 100 clicks. You have just earned a whole $20 in a month – enough for to buy a sandwich and a drink for lunch twice!

I have even better news for you. A website with 10,000 legitimate visitors per month is out of this world. A typical small business website experiences less than 10 visitors per day. Once you remove yourself and various automated spiders

and processes from your visitor statistics, there isn’t much real traffic there. And don’t try clicking your own ads – vendors of these systems have genius software developers and you will simply get your account banned as a result.

“Freemium” Business Model The “Freemium” model came about as a way of taking advantage of the “Free Culture” that I described before. It involves offering a basic subscription free of charge, and offering users a chance to upgrade to a premium service if they would like. Alternatively, additional features may be offered at a price.

This business model relies on a certain critical mass of visitors, where there is enough traffic to start collecting income from the few percent that are happy to pay.

This is a smarter system of offering subscription based services online; however it comes with a hefty price tag. You still need to cover your running costs, including your hosting and bandwidth bills and customer support – but, you are not earning any income at all. And if your website somehow does manage to attract a huge user base, be prepared for astronomical expenses to keep the wheels turning. G Stay put for Part II – I expand on topics such as “Speculation, Venture Capital and Dud Investment into Online Businesses”, “Hidden Costs: Development and Running Expenses”, “The Business Model behind Social Media Projects” and “Group Buying”.

Are you an ideas man with the next great business plan on how to make money online? Contact GWP Media to discuss – we offer both front end web design and back end web development. Please note that we don’t offer 50:50 partnership options for great ideas – but we do offer quality web development services.

GWP Media p | 1300 889 132 e | daniel@gwpmagazine.com.au w | www.gwpmedia.com.au

Business Resource & Lifestyle | Issue 60 | November 2013

31

Society & Life

The War Within Angry Anderson

The War Within. With a title like that you’d be forgiven for thinking, if you’ve ever read any of my past ravings, here we go again. ‘He’s off on yet another of his philosophical observations on life and all that it entails!’

Well yesterday you would have been spot on. I was pondering on ‘the war within’ that takes place in our lives daily. The wars we have have to take on and the battles we must engage in to ‘win’ for ourselves, some form of order, some form of right and wrong and a sense that to make any sense at all of life, we must fight the good fight and that the price to pay is really worth it.

Life, as I have said many times before, has an incredible way of guiding us to where it wants us to be or more importantly where we should be at any given moment in our lives. Yesterday as I read the daily rag, moments before sitting down to write my column, I was drawn to an article by Tim Priest*, a former Detective of NSW Police.

The article was about the looming war between us, the general population and those that we have elected to govern us and outlaw motorcycle gangs. He also spelt out the other component of that war which is the war that already exists between us and sections of our Middle Eastern population. Those who have no eyes to see would have us believe that no such war exists.

The loony Left would have us believe that the problem with Middle Eastern crime gangs is a storm in teacup, blown out of all proportion by right wing racists and those who would discriminate against a poor defenceless minority struggling to defend themselves against redneck bigots.

This loony Left view is totally understandable as it is these very same people that still defend the tragically flawed social experiment, political correctness and it is these very same people who will steadfastly refuse to accept any responsibility for their government who have historically been responsible for some of the worst immigration decisions ever made. These decisions have directly or indirectly led to our current drug and violence problems.

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Geoffrey Blayney was the first author I read who talked about Australia’s flawed immigration policy. He said that there was a direct relationship between an ill thought out policy and the increase in drug distribution and the violence that naturally follows when warring gangs fight to establish, control and then defend their territory. The ‘Asian’ connection, that he so rightly referred to, at least had the good sense to become almost invisible as the years went by; such is the Asian way of doing business, but the problem didn’t go away.

Just ask any off duty member of our police. They have to be ‘off duty’ because they are not allowed to tell the truth about these politically sensitive matters while they are on duty - my personal observation entirely.

I need to express my view at this time about our flawed immigration department and their policies, particularly under Labor. My personal observations over past years have been that we do indeed have a racially discriminative Department of Immigration. They actively and arrogantly discriminate against We – the Australian people.

The Department of Immigration are like so many other government departments. Take for instance, ‘Our ABC’. This ABC that our tax dollars fund is a prime example of how biased an institution can become under a Labor government. You can start to see how our Immigration Department can mismanage such a vitally important function.

The responsible balancing of our population is due in no small part to who we allow to enter our country via immigration of all kinds.

We have the right to question the so called wisdom of our Department of Immigration without the Loony Left branding us as racists.

We, the people, have every right to voice our opinions about whom we want in our society because when they get it wrong we all suffer and they get it wrong too often and always with tragic consequences.

Time to Speak Up People…

I hope that the government has the ticker and the balls to take on the war that is already upon us.

I joined the conservative side of politics because the team I followed as a youth turned their back on me and all that I held and still believe is Australian. They not only turned their back on me,

they betrayed me... I will never forgive.

Tim Priest makes his points without any political correctness that is to say without any bullshit!

He articulates the connection between some members of our Middle Eastern Islamic community and organised crime because as a former policeman he knows stuff.

Outlaw motorcycle gangs have been a part of the Aussie way for decades. I, like many others have good friends within outlaw motorcycle gangs and like many others I have watched as sadly some of our bigger patch clubs have been taken over by members of Middle Eastern crime gangs.

To be fair, some members of the Middle Eastern persuasion joined the clubs through the love of motorcycles and the brotherly lifestyle. Sadly just as it is true of the greater community from which they come, many of them are there to further their brutally criminal activities.

The other point that Tim Priest makes is that the hundreds of young Muslim men who have left Australia to fight for the rebels in Syria will eventually return. My solution would be simply to not let them return. They will come back to Australia with their hands permanently stained with blood of Christian and moderate Muslims alike. Most will have been involved in committing atrocities of the most horrible kind. I have seen filmed evidence of their crimes against humanity.

Yes, they film their own atrocities; the rape and murder of young women and children, the cutting off of heads, hands and feet of old and young.

Many of them will be recruited or rejoin outlaw motorcycle clubs.

They will bring these new found skills back here, onto our streets, into our homes, to our Australia. You and I and our Police Force will struggle to cope with it. We can only hope that our government has what it takes to defend us.

Past governments haven’t and we have been abandoned and left to pay the price.

Find your God and be at peace, your friend, Angry. G *Tim Priest’s article; Daily Telegraph, Oct, 9th, Page 13.

To view all Angry’s articles go to “My Blog/ Articles” at angryanderson.com

Business Resource & Lifestyle | Issue 60 | November 2013

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