Recycling Revolution How to Save Tax All Year Round
WAGES
the hidden costs
Toxic Substances In the Workplace reveals focus on Lead
www.aussiepaintersnetwork.com.au
From the Editor Hi all,
EDITOR Nigel Gorman EXECUTIVE EDITOR Caroline Miall
Well, I don’t know about you, but I cannot explain where the last roughly 330 days have gone... just, whoosh... and there goes 2014! Or perhaps it’s simply that getting older means that each year is a slightly less significant amount of time in ratio to the whole of your life. Whatever the forces be that seemingly play with time, it just reminds us to make the most of it as it really does go too quickly. And this is the month to do just that and make each moment count, as we gather with our families and friends.
CONTRIBUTORS
Leading up to Christmas is often the busiest time for painters, as many homeowners prepare their dwellings for guests and parties. Hopefully you’ve all been getting plenty of work so you can soon relax and enjoy a well earned break with a bit of cash to do what you want. After all, we’re all working to live, and not the other way around.
• Monroe Porter
2014 has been a year of many firsts for us, as we began several projects which we are eager to get back to in the New Year. Our short business courses/seminars received a lot of interest and will hopefully go National, we began our Mentorship program for new painters, and now the future of our Industry, our Apprentices, are starting to enjoy new freedoms and flexibility with our multimodal training. We are excited for what is to come in 2015. We are ready! Aussie Painters Network sincerely hopes that something we did this year, an article, or point of view, or a phone call answered, has helped you out. If just one thing you’ve read in the eMag or come across on our site has assisted you and perhaps inspired you to join, then we have done an OK job. As the years seem to go faster, so too do the stressors in our lives seem to become greater with each year; so it may just be that we really need the annual festive cheer to help revive us, and give us the lift we need to move on and make the very best of the year lying in wait.
A most Happy and Joyous holiday to you all.
Nigel Gorman
nigel@aussiepaintersnetwork.com.au
07 3555 8010
• Caroline Miall • Jennie Gorman • Jim Baker • Leo Babauta • Nigel Gorman • Robert Bauman • Sandra Price • Scott Robertson
GRAPHIC DESIGNER J. Anne Delgado
Opinions and viewpoints expressed in the Aussie Painting Contractor Magazine do not necessarily represent those of the editor, staff or publisher or any Aussie Painters Network’s staff or related parties. The publisher, Aussie Painters Network and Aussie Painting Contractor Magazine personnel are not liable for any mistake, misprint or omission. Information contained in the Aussie Painting Contractor Magazine is intended to inform and illustrate and should not be taken as financial, legal or accounting advice. You should seek professional advice before making business related decisions. We are not liable for any losses you may incur directly or indirectly as a result of reading Aussie Painting Contractor Magazine. Reproduction of any material or contents of the magazine without written permission from the publisher is strictly prohibited.
Contents Page 06
Recycling Revolution
Page 09
TOP TIPS for Great Invoicing
Page 10
The Smart Habit System
Page 13
Gary Kerslake
Page 14
How to Save Tax All Year Round
Page 17
Win More Quotes At the Price You Want
Page 21 Understanding the Value of Good Administrators Page 24
Is passive income important to you?
Page 27
Have you ever wondered why you are Networking?
Page 28 WHY UP-SKILL? Increase your job leads, SECURE YOUR BUSINESS and protect your future! Page 31
What is an Insurance Excess?
Page 32 Tragedy building on NSW construction sites Page 35
WAGES - The Hidden Costs
Page 36
SAFETY Data Sheets
Page 39
Study into 38 toxic substances in the workplace reveals focus on Lead
Page 42
The Industry Idiots
Page 43
Important Contacts
PROTECTION AGAINST PEELING, FLAKING AND BLISTERING
Haymes Solashield is available in Matt, Low Sheen, Satin & Gloss To find your nearest Haymes Trade Centre visit haymespaint.com.au or call our Customer Service team on 1800 033 431
RECYCLING
Revolution ....and avoiding the wreckage of Christmas
It’s reassuring that the recycling movement has really successfully begun to integrate into our cultures, evolving from the Reduce Reuse Recycle message. Sometimes I’m sceptical about the rate at which its happening, and the actual impact it’s enacting are dubious but at least something is happening to our collective consciousness so that most of us are doing things differently. The internet and social media can be credited with tying a lot of it together and mobilising the masses and the vocal, in the form of communities and shared forums. The great part about that is that people are using their voices, sharing ideas and making a difference. The negative may be perhaps that these sites/communities, are preaching mostly to the converted and sometimes to a lot of self satisfied back-slappers. All the same, people are giving it more consideration that they need to reduce the resources they waste and look for every opportunity to reuse and recycle.
6 | Aussie Painters Network
The recycling habit is something that has always been integral to my life and quite dear to my heart really, since my Grandma ran a church store in WA. Not to mention, being raised by the late-to-post-war Depression Generation who were, understandably, conserving of everything. I remember the trips to the tip where amongst piles of junk, there’d be a shiny coveted thing... a kayak, a chest, an old guitar. Many people have lamented to me for the old days when the tip wasn’t a massive concrete chasm. Nowadays, I can occasionally be seen surreptitiously filling the ute with curiosities of bygone eras from the council kerbside collections. Nobody has the time to deal with (restore, sell, giveaway even) these forgotten treasures. I can’t bear to see beautiful vintage pieces be compacted in an almighty truck! When things were not cheap, mass produced, readily available and easily broken, most people would seek
to purchase second hand goods far more often. In any case, I always loved the life and soul in old things, and the way they were made to last and often with craft and distinction. Now, though, the overwhelming issue of waste and environmental devastation is one that really ought to have each of us reconsidering how often we need a new...whatever! Especially when everything is plastic and built cheaply to become readily obsolete, so we all need to go and buy another one! (Oh, and did you ever think about the number of toothpaste tubes that are littering the ground of our poor old Mother Earth? I may be getting off track here... but have you??) It’s fascinating to see the organisations forming online in response to much needed action, like The Story of Stuff Project, which I’ve been following for a while:
Wrapping Paper
Paper wrapping can be recycled in your kerbside bin, or used for arts and crafts. While that foily plastic isn’t the easiest to recycle, it can usually be reused fairly easily, so stash it away for wrapping your own gifts next year. The same can be said of those pretty Christmas bags and fabric wrap.
Christmas Cards We have a problem with Stuff.
We use too much, too much of it is toxic and we don’t share it very well. But that’s not the way things have to be. Together, we can build a society based on better, not more, sharing, not selfishness, community, not division. The Story of Stuff Project’s journey began with a 20-minute online movie about the way we make, use and throw away all the Stuff in our lives. Five years and 40 million views later, we’re a Community of 750,000 change-makers worldwide, working to build a more healthy and just planet. We invite you to watch and share our movies, participate in our study programs and join our campaigns. Come on, let’s go! http://storyofstuff.org/
And there you have it... a poignant little animated movie online begets a whole movement of a holistic nature, addressing the problem, why we have it, and how we might fix it
in the context of healthier lives and planet. Yay for Social Media and motivated people. Go check it out, it’s amazing, albeit American, but its following the USA’s blind consumer culture that got us into this mess in the first place, so perhaps we can follow them out. Why have we chosen Faster, Cheaper, Newer over Safer, Healthier and Fairer? More over better? Sometimes I find it really hard to reconcile with the notions that accompany Christmas, like the ubiquitous mountains of wrapping, plastic toys, wasted food and all the rubbish it creates... and we’re all guilty of doing it. It’s good then to see things like the Shop Small Movement this Christmas, which has in fact a large corporation behind it (American Express). Try to keep it local this holiday season, give hand-made, spend time not money, and reduce the piles of stuff as much as you can. Don’t use disposable plates, get the kids to make the cards and wrapping, go for sustainable, quality practical gifts. There are so many little things that can be done slightly differently this year – start new traditions around the ethos.
These can be easily recycled in your kerbside recycling, but if you think it’s a shame to throw them all out, you can re-use them for decorating next year!
Living Trees
Your tree could do a valuable service for the soil. Find out if your local council will mulch your trees.
Yummy Leftovers
Have even more leftovers than you thought you would? Put a shout out to friends and family and see if anyone would like to avoid cooking the next few days. YourFork.com and LeftoverSwap.com may also be able to help you out. If anything is developing green fuzz though, pop it in the compost.
Packaging
Unsure if that mountain of plastic wrap is recyclable (it probably is!)? Find out by searching RecyclingNearYou. See also Bloggers Doing Christmas with more joy and less waste http://12dos.planetark.org/news/ display/682
2014 December Issue | 7
rough Aussie Painters Network, consumers can now...
Request-a-Quote
www.aussiepaintersnetwork.com.au 1800 355 344 or 07 3555 8010 info@aussiepaintersnetwork.com.au
Looking for improvements in your business? “How To Become AReally Successful Painter” can really help you.
A copy of my book is available online jimbaker@notjustapainter.com.au
Watch Business Management for Painters http://www.youtube.com/watch?v=OczJfZH8M4I
8 | Aussie Painterswww.mytools4business.com/howtobecome Network
TOP TIPS
for Great Invoicing Getting paid and having steady cash flow is the backbone of every small business. So it’s important to acknowledge that achieving this is not always as simple as monthly invoicing. Avoid the pitfalls of the most important part of business (i.e. getting paid) and ensure you can watch the bank balance rise, by observing a few key points 1. Discuss and agree upon the
payment terms before you get started. This sets the clients expectations and removes confusion before you start the work, reducing problems arising from poor communication.
2. Record details of the jobs
inventory and time
When it comes to raising invoice this helps to ensure you don’t miss anything. You will be able to recall better the nuances of the work done and materials required, and assist in easily justifying your price. 3. Make the invoice simple
and easy to follow, relevant to quotation and discussions
Format the invoice in a way that is easy to read and follow. Have everything clearly marked out and don’t forget to add your logo, address and bank details.
Set appropriate/agreed payment terms and make allowances for late payers 4.
Creators of the popular accounting package ‘Xero’ suggest that if you
want to receive your payment within 30 days, your terms need to be 13 days or less. Most debtors pay on average 2-3 weeks late, so you may as well consider planning for it. 5. Issue your invoice to the
person responsible for paying
Find out who is in charge of paying the bills and address the invoice directly to that individual. Administrative “error” staff going on holidays, passing of the buck, can really undermine your cash flow and it can seem like no one has the authority to pay you! 6. Send your invoice as soon
as work is completed
Send your invoice as soon as possible. Don’t leave it for days or weeks. The quicker you invoice, the quicker you can get paid. If
there are issues to be resolved, these too can be addressed sooner rather than later. 7. Keep on top of monies
owing. Once an invoice is issued, have a firm procedure for pursuing it.
Send out reminders and statements and follow them up with a phone call. Most of the time, your customer has simply forgotten or just needs a nudge. During times of financial crisis, you might find everyone needs a push. If there are no issues with the amount, then you will need to be the veritable dog with a bone so your customer knows you are seriously pursuing the monies owed. Hopefully you can avoid having to take it further.
www.pricebookkeepingsolutions.com.au 2014 December Issue | 9
The Smart Habit System In last months article The smart way to stick to habits, Leo Babauta identified the obstacles we often encounter to seeing things through. These provided the basis of this system for success in gaining the good habits...
If we have a system that overcomes all these obstacles, we’ll be more likely to stick with a new habit. So let’s put our best practices together: 1. Start small. Keep the habit very small. As small as possible, until it becomes your new “normal”. Just floss one tooth. Just run for a few minutes, or get your shoes on and get out the door. Just meditate for 2 minutes. 2. Commit big. Tell as many people as possible about your new habit, and commit to them big time. Set up an embarrassing consequence for failing (missing 2 days in a row, except for an emergency). 3. Have a trigger. Something you already do daily — wake up, go to bed, take a shower, brush your teeth, eat breakfast, open your computer, eat lunch, eat dinner, arrive at work, drop the kids to school, etc. Commit to doing your habit as soon as the trigger happens — if you eat breakfast, then you will run. No questions about it.
an internet blocker to go off during your writing time. Or if it’s time to exercise, give your laptop and phone to your partner and tell them not to give it back. Or your router or cable device. Remove tempting food from the house if that’s distracting you. Or commit to meeting someone at the park or gym to workout or run, so you won’t be tempted to skip the workout. 7. Get back on track. Ask your accountability friends to make sure you get back on track if you miss a day. If you do miss a day, let them know and ask for help making sure you don’t miss two days. 8. Watch your negative thoughts. Practice noticing when you’re making excuses or telling yourself you can’t do this. And see that they’re wrong. Add a “But” to the sentence: “I’m tired, BUT I’ll feel better if I do this” or “I deserve a break, BUT I also deserve to take care of my body with this exercise”. And so on. If you set up this smart system, and do one habit at a time, really putting your focus and energy into this habit change, you’ll be much more likely to stick to it.
4. Lots of reminders. Have physical and digital reminders around your trigger — near the shower, on top of your laptop or car keys, etc., so you don’t forget in the first week or two. 5. Set up accountability. When you commit, ask a friend or group of people to check in on you regularly, to make sure you don’t slip up. Tell them your commitment (from No. 2 above) and ask for their help keeping you accountable. More than one person is usually best, unless you know for sure that this one person won’t forget or let you off the hook. 6. Remove choices. If there are distractions or temptations you usually go for instead of this habit, remove them from the picture so that your main choice is to do the habit. For example, if it’s time to write, set up
10 | Aussie Painters Network
by Leo Babauta, a successful ‘simplicity’
blogger & author from California, is the creator of top 25 Blog, Zen Habits, chronicling his insights from acting significant changes in his personal and working life.
2014 December Issue | 11
The portable, inexpensive method to prevent paint waste-water polluting the environment.
The Mobile PaintWash can also be used for storage when empty, and has no moving parts or expensive filters. It's ideal for the professional painter who cares about the environment and the health of our planet.
Protect your client's garden, and the environment by using the Mobile PaintWash! Contact GreenPainters for more information: Ph: 1300 319 790
12 | Aussie Painters Network
Rokset Industries CEO,
Gary Kerslake,
retired this year after 54 years in the paint industry. We thought we’d take this opportunity to reflect on the productive career of a man dedicated to our industry. Gary Kerslake was born in Mount Gambier, South Australia. He finished school as Dux of the school and took up a job as an accounts clerk at the local timber mill. The following year he started work in the paint industry and never looked back. Gary began as a sales cadet at Thompson & Harvey, General Paint and Hardware. In the early days he worked as a sales assistant, storeman, driver, retail manager and warehouse supervisor but quickly moved up the ranks. From store manager to sales manager, marketing manager to CEO, Gary progressed through his career. In five States, over four plus decades, he built a solid reputation for hard work and dependability. Much of Gary’s career was spent working at Dulux. He worked all over the country in middle management then rose to State Manager of South Australia and Queensland. This was a period of strong manufacturing
when staff and litres were abundant. Gary was responsible for the difficult task of restructuring Port Adelaide in South Australia. His high standards, morality and ethics came to the fore at this time to achieve a fair and equitable result. These values were the benchmark Gary set for himself and the industry. In 1990, Gary and his family moved back to Adelaide where Gary started work at Rokset, a proudly South Australian owned and operated paint accessories supplier that has been operating for 91 years. It was a perfect match. As Marketing Manager and later CEO, Gary and Rokset achieved many milestones. At Rokset Gary was absolutely committed to his customers and excellent customer service. Both Gary and Rokset were frequently voted the supplier that is the most pleasure to deal with. Gary believed in mutually profitable business and, as
a result, built strong and long-lasting relationships in the industry. Gary is widely respected in the paint industry for his honesty and integrity, not to mention his vast knowledge on a range of subjects. It’s sad to see such a notable figure leave our industry but we’re happy to have had the opportunity to work with him and learn from him. Today, Gary has been succeeded by a strong team at Rokset Industries led by Sandy Daw, CEO, and Mark Newman, General Manager Sales and Marketing. They are committed to maintaining his legacy and taking Rokset into the next 90 years. Since retiring, Gary enjoys spending time with his grand-daughter, working on his son’s farm in the Adelaide hills and the occasional glass of red wine.
2014 December Issue | 13
How to Save Tax All Year Round
The old adage “You don’t know what you don’t know” applies to many areas of life, including what you can claim on tax. Small business owners are generally well clued up as to what they can claim as a tax deductable expense, but they may not know about all legal ways to minimise their tax obligations.
Here are just three little known ways how you can reduce your tax bill. It only requires a little forethought and putting a system in place to make sure that all relevant receipts and expense documentation are being collected throughout the year. You’ll be surprised how much tax you can save this way and the results will be worth it!
1. Writing Off Your Child’s Education Expenses
Getting your kids through school, college and maybe even university can be a drain on the hip pocket. But there’s a silver lining, and it is good for business and reduces your tax bill. Put your child on the payroll! Yes, I am serious. This is such a great way to help your child learn how to handle and appreciate money, when they work for what they earn. And on top of that, you are reducing your taxable income for yourself and your business. You’ll be amazed how quickly this adds up, for both of you. Think about the possibilities you have in your business, you could organise for your child to come in 4 hours or more per week to perform office chores, or other business related tasks like cleaning services, or routine copying, filing and typing, the list goes on and only changes by the nature of your business. In 2013, a child can earn up to $18,000 and pay no income taxes on the earnings. Your business can deduct wages paid to your child provided the amount is reasonable and for bona fide work. And if you are a sole proprietorship, you will eliminate self-employment tax on the income as well.
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2. Deducting Vacation Travel Expenses
Try to combine business (a meeting with a client or possible client, checking out some material or resources for your business, etc.) with your vacation travel. As long as your trip is documented in advance, showing an intent to build your business in some way, your travel expenses become business expense deductions. Meals, hotel rooms, plane tickets, car rentals, and even certain expenses for entertainment are deductible as business expenses with proper documentation.
3. Deducting Phone, Internet Service and Utility Bills If phone calls, Internet service, or utilities are used for legitimate business purposes, then, with proper documentation, they become tax deductible business expenses. If you have a credit or debit card solely for your business, and you probably should, the annual fees and interest payments are also tax-deductible business expenses.
Please Note: Many of the comments in this article are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Copyright © 2014 Robert Bauman
A D Hamilton and Associates www.adhamilton.com.au
Reflects up to 90% of UV Rays and 80% of Solar Rays
2014 December Issue | 15
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Five Golden Tips that Show You How to
Win More Quotes At the Price You Want
By far, the fastest way to grow your business, grow your sales and take the stress off yourself as the business owner is to learn how to successfully win more quotes with your profit nicely locked in. The greatest challenge for all of us is that none of us are taught the skill, the sequence and the art of selling to a client. And here’s the thing, you don’t need to be a “salesy” kind of guy. Some of the best sales people I know were quite shy and humble people, they just had a fantastic process they followed over and over again that got them a predictable result. So first things first. If you put 100 people in a room who want painting done and think they were all prospective clients here is the reality: • 20% aren’t interested in buying and will never buy. • 30% are tyre kickers, they will waste your time and time is money. • 30% are potential clients, want to buy but need persuading. • 20% are hot to go right now. So let me ask you a question. Where would you start, where would you put most of your effort? The 20% that are hot to go, right? Well actually no, that’s where everyone else is. Every one of your competitors who know nothing about building rapport, retaining clients or getting referrals is running around right now chasing those “hot to go” customers every day. So there’s limited work, massive competition and painters that are so poor at talking to customers the only way they can sell is by undercutting you. Sound familiar? If you’re locked in that game right now and want to get out of it, this will help. Here are five golden tips to get more of that top 20% (with less effort) and a good slice
of the 30% of potential clients where more of your effort should be focused (there’s less competition). These tips are just a small part of a system I have developed to win more work, more often. If you don’t have a system, then now is the time to build one.
Golden Tip 1: Have standard questions close by when you or one of your staff answer the phone to customers. These questions need to weed out the tyre kickers, the potential clients and the hot to go clients. Just this one tip could save you hours of running after false leads. It’s better you quote 20 good; high potential jobs a week, rather than 50 unlikely jobs. Golden tip 2: No matter what the client says about it being okay if you’ve just come from a job covered in paint, never turn up unless you’ve got a clean polo shirt and trousers on. First impressions are everything and it doesn’t take much effort to ensure you have a spare clean polo shirt and trousers in your van to quickly change in to before entering their premises.
Continue on Page 18... 2014 December Issue | 17
Five Golden Tips that Show You How to
Win More Quotes At the Price You Want Golden tip 3: Let me ask you this…. Is technology an Extension of yourself? From my experience it sure is. Use technology if you can. The biggest positive impact I’ve had meeting clients came when I began using my “tablet” (think I-Pad), to put together the quote as I was talking to the client going through their property. It has been an invaluable tool to show them full colour photos of previous work, examples of finishes, or even to build the quote then and there for them to receive. If you’re still using pen and paper it is time to move on. People want to see a professional painter; the technology allows you to give that powerful impression. Golden tip 4: Ask questions and educate. The number one mistake all of us make as painters, is to focus on painting when we’re in a client’s home. What I have learned is that when I instead focused on what my client wanted it sounded more like this: 1. I want a re-paint because we are desperate to sell the house and we think it’ll increase the value.
18 | Aussie Painters Network
2. I’m embarrassed by the state of the place, particularly when friends bring the kids round for play dates. 3. My husband has asked me to get these quotes but I don’t really know what I am doing. 4. This was my parents’ house but my Mom died recently and Dad died last year, so we really want to brighten the place up before I sell it. You’ve heard responses like this and a million more on top of that. This is your opportunity to become the trusted advisor, not the quote giver. Listen, ask more questions, give great information and give advice, even show them how you could save them time, money or heartache by choosing you. What I’ve learned is being a good listener has won me most of my work. Golden Tip 5: Deal with the “undercutting price issue” there and then. No matter how good you are, I guarantee someone will come along to that same client and their opening remark will be “tell me what your cheapest
quote will be and I’ll beat it by 10%”. Here’s how you deal with that: Firstly, explain to the client that there are guys out there who can only win work by undercutting and they should be wary of that approach because undercutting means they’ll be cutting corners somewhere. Secondly, explain your credentials, explain that they always get best price in the quote and explain the value they receive. Thirdly, be honest. Explain that if they get a cheaper job done now, yes they may save a thousand dollars but it is likely they’ll need another painter again in 2 to 3 years, rather than getting a quality job done with you that will last them 7 to 10 years. So saving a thousand now may cost them an additional $15,000 in three year’s time.
By Tas Moulis, Q-Paint, Brisbane and Alan Furlong at PaintBox System
2014 December Issue | 19
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Understanding the Value of
Good Administrators Contractors are notorious for being disorganised. Many a contractor’s truck dashboard looks like a bomb went off in the front seat. Younger contractors tend to use smart phones and tablets but many still suffer; just because you are strong electronically does not mean you have good administrative practices in your business.
If you are a disorganised person start by accepting your fate. It is part of your personality and you will live with it your entire life. Disorganised folks buy diaries they never use and put reminders on their phones that just get ignored. If you are disorganised the best way to organise yourself is to hire someone to do it. Organisation starts with a strong admin person who can help organise you. ADD is said to be a genetic trait. America was founded by folks who were a little ADD. When settling Jamestown, 144 people boarded 3 ships for 4 months that were little more than overgrown cabin cruisers. You had to be a little compulsive, disorganised and wacky to take that risk. Accept your restlessness and disorganisation and embrace it. Hire someone to help you with it. Discipline and organisation are your friends. As business grows and owners have more than they can do, many will hire another salesperson or production manager to help them. The problem is if you had a poor or no admin, adding another body is just going to make the situation worse.
As you are building your business, the first and most critical step in the process is to hire a strong administrative person. Many contractors wonder, well, what will this person do? A smart and strong person will find things to do. If you have to tell your admin what to do, you probably have the wrong person. A good administrative person will take duties away from you, help you get organised and keep things on track. They can: • Answer the phone but more importantly set your sales appointments. • Do all bookkeeping and payroll. • Help order material. • Call customers regarding the schedule. • Schedule repair or warranty calls and manage the process. • Help organise job colors and other customer information needs. • Phone crews to ensure they have all the material that is needed. • Organise insurance, employee records, and other non-daily admin duties. The list goes on and on. Should this person be a family member? Probably not. Many contractors choose a family member and in some cases it works out ok but there are many disadvantages, especially with a spouse. First, how well does it work when you tell each other what to do? Secondly, if you and your spouse want to go on vacation, who runs things and sets appointments while you are gone? If you do hire a family member, they
need to have bookkeeping and office experience that qualifies them for the job. Worried about embezzlement? Buy insurance or have the person bonded. You can also have your family member or someone else balance the checkbook. So what kind of traits should a good office admin person have? A good office admin is intelligent, computer savvy and willing to learn new technology; cooperative, loyal and a natural problem solver. Good admin people are efficient and it bothers them when things don’t get done. They are organised and their desk is usually neat and systematised. Their office is a little like Mum’s kitchen at Thanksgiving. She is the cook and is in control. You can help but on her terms. Again, a good office manager will take control and tell you what to do.
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Understanding the Value of Good Administrators A good small business admin must be able to deal with the chaos and multi-function aspect of the job. Frequently, people who came from big companies do not work out because of the hectic pace and diversity. You also need a person who enjoys a small office and is happy working alone much of the day. So what do you pay this person? Good administrators are hard to find. A good guideline on their pay is that they are going to be paid what a top craftsperson or a junior foreman would receive. If you hire someone part time, make sure you offer a high enough hourly rate to make it worthwhile for them to work 4 or 5 hours a day. Sometimes you can find an executive secretary mum type who wants to work part time. Ironically, the pay does not matter if you have a really good person, as that
22 | Aussie Painters Network
person will do what two other people might do. The trick is to find the right person and pay whatever it takes. One of the hardest lessons to learn is that you cannot do everything yourself. It is impossible. You may be 100% at task, but 100% of your own effort is all you can get done and you can only do so much. Even if someone else is only at 80%, together you are 180%. If you want to make $100,000 a year, that equates to $50 an hour. Doing tasks that you are not good at and don’t like to do does not make sense when it costs half as much to have someone else do them for you. Focus on selling work and managing production, not clerical tasks. Selling and producing one more job a week probably pays for a better admin. Monroe Porter is president of PROOF Management a firm that teaches seminars and runs networking groups for painting contractors. Several Aussie painting contractors travel to the US each year to participate in his programs.
www.proofman.com
2014 December Issue | 23
What’s your wealth plan?
Is passive income important to you?
No matter what someone is famous for — everyone who is truly rich, has real estate as a core wealth strategy. So behind every successful, thriving business; and behind every (truly) wealthy person… is a property portfolio. How will you make enough passive income so you can stop working? Is THAT important to you? And how much money do you need? Is creating a legacy for your children important to you? The financial strategy we implemented for Joe and Kerry is the SAME strategy we used to create over 723 millionaires in the last 19 years. These people are ordinary, everyday Aussies. Millionaires — all done through property. Joe and Kerry attended our property education event. Aussie Painters Network has sponsored your tickets! At the Massive Gains Property seminar, you’ll learn: 1. Accountant approved — pay next-to-zero tax. LEGALLY. 2. Massive asset accumulation strategies — so you can sleep easy at night.
3. AND — learn how to take advantage of the economic conditions regardless of boom, bubble or GFC. 4. Build the property portfolio that creates the lifestyle you want with minimal risk. 5. Buy property on the income you have (no need for a 2nd job). We’ve set thousands and thousands of normal, everyday Aussies on the path of financial freedom. AND — over 723 have become millionaires as a direct result of implementing our strategies. Does this result sound like something that you want in your life? Of course it is.
Join us NOW at the next Massive Gains Property event. 6:30pm-9:00pm.
Book here
www.jdlpropertyevent.com/apn/ (limited number per city).
My Costing Guide ‘My Costing Guide’ is a fully automated program where all you have to do is add or change the variables and the total price will appear in an instant. It is simple to use and can be personalised to your own business. Personalise your own rates instead of using a recommended rate!
24 | Aussie Painters Network
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2014 December Issue | 25
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www.aussieappstore.com.au
Have you ever wondered
why you are Networking? This is a question I ask people quite often. I believe, if you are not aware of why you network, your outcome will not be what you are hoping and wishing to achieve. Is your reason to become a better networker for career building, developing a higher profile, earning more money/financial gain or to gain influence in your community, job or business network? This is an important question. If you understand why you are networking, you will find that you will have a clearer vision of what you want. By not understanding this and what you expect to gain, you will not move forward. Word-of-mouth marketing has been around forever and is a powerful way to build your business. I believe, done correctly, it is the best way to build the relationships and business you want for the future. If for you, networking becomes a natural way of life, it becomes the most successful way to do business. It is necessary for you to learn the basics if you wish to be successful though. It is all about relationship building. You will find that after a while you don’t even think about what you are doing. Networking should always be a win-win for all parties, so always repay appropriately favours extended to you.
Remember, when you give a referral, notify the receiver and the person who is being referred so they are both on the same page. I find email the easiest and quickest way to do this. It is important to give information as to why you are referring the person so that both are aware of what has been passed on. This helps both sides to have more of an idea of the relationship with the referrer. Always make it clear what your relationship is with the person you are referring, for example, they are a client, a personal friend, someone I feel that you will have a synergy with, you have or haven’t done business with them etc. One of the most important things to remember is that you need to be seen, become known and move into the marketplace that is appropriate to you, at your own pace, always keeping in mind why you are doing it. Attend one or two specific networking groups and become known as a ‘regular’. People then perceive you as stable, reliable and trustworthy will then do business with you. It is important you find your niche market, so the types of events you attend must be appropriate for your needs.
Remember, that the people you are looking to do business with are looking for you too! Jennie Gorman
www.connexionsunlimited.com.au 2014 December Issue | 27
WHY UP-SKILL?
Increase your job leads,
SECURE YOUR BUSINESS
and protect your future! Without even realising it our brain acquires new information every day. It’s been happening since the day we were born and will continue until we pass away; it’s automatic and a part of life. Unfortunately though (especially for those who have been in business for a number of years) taking the step to voluntarily ‘up-skill’ our information takes a back seat. We get comfortable in our day-to-day routine and how the business operates, so we are content to just plod along. Like the old saying goes, ‘If it ain’t broke, don’t fix it!’ This type of thinking may work for a while but there is a huge possibility you will miss out on numerous calls in the future because you are not concerned about tomorrow.
For example, the job leads you could be missing out on could arise from; • Not being qualified to do the particular project (eg, wallpapering, lead removal, etc); • Not having the appropriate work policies in place; • Not knowing how to work off plans; • Not having the appropriate scaffolding experience. Wouldn’t you like to have the advantage over your competitors to combat this situation? If you choose to just plod along you will find other businesses will pass you by and win those jobs because they do have the required skills. By taking some courses appropriate for your business, you can stay ahead of the rest and bid for those projects you weren’t qualified to do so before.
28 | Aussie Painters Network
There are numerous courses that are available and most of them are online so you can complete the questions at home and at your own leisure. Check out the National Painting and Decorating Institute at www.painters.edu.au/Training-Courses/ to access them. There is also a possibility that a particular course is subsidised which makes for a nice little bonus. You can enquire with your paint supplier if there are any courses available on applying their specialty products. This can then lead to the company recommending you as a preferred applicator. Up-skilling and diversifying your professional abilities can help to protect your future too. What plans have you in place if you have an accident? An insurance policy is OK, but it won’t supplement the full income you currently earn. Don’t think that it couldn’t happen to you! Aussie Painters Network colleague, Nigel, is proof of this. He cannot physically work as a painter because of a work place accident. This is when he decided to start the Aussie Painters Network. It is now the industry body for painters seeking support and information.
Another inevitability, which no one can control, is that we’re all growing older. ‘What has this got to do with up-skilling?’ Well, let’s say you are 55 years of age and have just lost your job. The retirement age for you is 65. Will you still be able to physically work for another
business. If that happened, I would definitely have to find work until I could apply for the pension. Could I still climb ladders for another 5 years? My mind says I could but in reality, who knows?
10 years climbing up and down ladders? For the people that were born after 1959, the age pension comes in at 70! How much success do you think you will have competing against a much younger person for a painting position? This is another reason for you to up-skill your knowledge. Don’t say you are too old to learn. I had my 60th birthday this year and recently completed my TAE Certificate IV Teaching course.
Why you may ask? It is my back-up plan. Fortunately though, my wife and I have invested our savings wisely and will be able to live comfortably on our superannuation without the need for the pension. But! What happens if there is another Global Financial Crisis in the next 5 years? Like so many others in the last crisis, we could lose tens of thousands of dollars and in turn lose my
This is why you should look at the future and consider what your back-up plan could be; just in case the unexpected happens. And it so often does. by : Jim Baker
www.mytools4business.com
2014 December Issue | 29
www.consolidatedi .com.au Phone: +61 7 3292 1100 | Fax: +61 7 3292 1110 Email: contactus@consolidatedi.com.au I just wanted to say a BIG THANK YOU for referring me to Consolidated Insurance Pty Ltd. I spoke to Scott about our Business Insurance and with little time, Scott emailed me back a comprehensive package for our Business and we saved over $1,000.00. Thanks again Aussie Painters Network for the great referral and all your ongoing help. Sonya Baker www.bakerbrosmasterpainters.com.au
30 | Aussie Painters Network
What is an
Insurance Excess? The idea behind insurance is fairly simple; it’s a transfer of risk. Put in another way, it allows you to pay someone else to take the chance that if something particular happens, they will pay to have the damage fixed. Over time insurance contracts have become more complex with more options and choices – the most common of which is referred to as the “excess” or “deductible.” The excess is the amount that you are expected to contribute towards an insurance claim. In a simple situation you might have to pay $500 of a $10,000 bill to repair a wall you ran into. How this is processed will depend on the Insurer - some will demand you pay them the excess (and they pay the invoice in full) while other insurers will pay for most of the invoice, and you pay the remaining excess amount yourself. Processing claims is expensive for insurance companies. A $500 claim may cost the insurance company $1,500 or three times the claim amount after paying staff time, loss adjusters and repair reports. To help keep premiums affordable, insurance companies impose an excess to deter small claims and remove these processing costs. Keeping in mind the idea of insurance is to transfer risk, what this means is that you are effectively choosing how much risk you are willing to keep yourself, and how much you are transferring to the insurer.
The basic excess is almost always listed on your insurance schedule, with some less common excesses for particular circumstances listed in the Product Disclosure Statement (“PDS”). Insurers may offer “flexible excesses” – an excess that can be increased or decreased depending on how much you are willing to pay. The larger an excess, the larger a discount the insurer will apply as the less claims they will theoretically need to process. Increasing your excess can prove to be an effective way to help lower that upfront insurance premium. The most important thing to keep in mind though, is that an excess must be an affordable figure for you to pay if something does go wrong. Sometimes it is in your interest to have a higher annual premium for a lower excess as it lessens the risk to your business or personal budget and allows you to plan in advance and organize your cash flow rather than having a large unexpected bill at claims time. To see what you can do with your excess and how it might change your premium, call your broker to discuss your policy.
www.consolidatedi.com.au 2014 December Issue | 31
Tragedy building on
NSW construction sites 24 November 2014 Father witnesses own son’s death at a demolition site that both were working on Crane driver dies after falling 10 metres at a site in North Sydney At an inner Sydney demolition site, a father saw his own son die after being struck in the head by a falling pipe. The man was in his 30s and had been working on removing a thick steel pipe in Redfern on Friday morning. Paramedics arrived and tried multiple times to revive the man, but he was pronounced dead on site. CFMEU NSW’s secretary, Brian Parker stated that the man who died was working on the site with his father and brother at the time of his death. “His father witnessed his own son being killed,” Mr Parker told AAP. Unfortunately, the pipe was not supported very well, and it swung down while he was cutting it down, and struck him in the head. The man was working for his father and his demolition business. Mr. Parker has added that demolition work is one of the most dangerous industries to work in, and there are many fatalities. Not too long after this incident, a crane driver, Martin Hall, who was 66 years old, died at the Leighton’s site
32 | Aussie Painters Network
located on the Pacific Highway. “We’re not sure if he fell or had a heart attack,” “He was on the tower that leads up to the crane and could have fallen 10 to 15 metres,” CFMEU NSW Brian Parker reported to AAP. Coincidentally, Mr. Hall was in place of a colleague who was currently at the funeral of a man who perished when his truck came into contact with power lines. This death follow that of the man who died after being struck in the head with the large steel pipe, mentioned earlier. It just goes to show just how bad it is,” Mr Parker said. “I’ve said and will continue to say, you will see more deaths and serious injuries in the workplace if the industry continues to move towards self-regulation and people take shortcuts.” Courtesy of Australian Business Information Service http://aubis.com.au/
Contact Graco Australia: 03 9468 8500 | 0417 723 360 darren_jones@graco.com
2014 December Issue | 33
The Aussie Painters Network App Just search the App Store or Google Play for Aussie Painters Network.
34 | Aussie Painters Network
1800 355 344
WAGES
The Hidden Costs Many employers are oblivious of how much the total cost of employing a tradesperson truly amounts to. You must take in consideration the extra costs on top of what you actually give them each week.
Depending on the state you reside in, the award wage for a painter and decorator is around $20.75 per hour. If you break down all the extras that go with this amount over a twelve month period, it will calculate to this; Gross Wage (which includes) 20 days Annual Leave 10 days Sick Leave 10 days Public Holidays $43,160.00
$17.43 Travelling per day $ 3,590.58 9.5% Superannuation $ 4,496.50 17.5% Holiday Leave Loading $ 581.00 3.3% Workers Compensation $ 1,424.28 Total Employee Expense $53,252.36 The total cost now to you is $25.60 per hour for a full time employee over a twelve month period. The actual cost to you based on the tradespersons’ productive days (206 days if all allocated days are taken) is $32.31 per hour. This is the break even amount that an employee costs you and should be taken into consideration with your charge out rate. If you are employing a person on an hourly rate, you should be allowing an extra $4 per hour to cover the expenses (Superannuation and Workers Compensation). To find out more on how much it costs to operate your business, go to; www.mytools4business.com by : Jim Baker
www.mytools4business.com
How much does your business need to earn to cover its expenses?
www.mytools4business.com/myhourlyratecalculator
2014 December Issue | 35
SAFETY
Data Sheets Do you always have your Safety Data Sheets up to date and ready when you start a job? You might not be aware that It’s part of your obligations as a painter to have an SDS (formerly Material Safety Data Sheet MSDS) available for all of the products you utilise on a job; paints, putties fillers etc. It is important to have the relevant information for all the paints, coatings and other chemical products or substances being worked with. An SDS is a freely available document that should be secured by employers from their suppliers upon purchase of materials. If a supplier cannot provide an up to date copy, then find one that can! Although at a stretch, many SDS’s will be readily available on the manufacturer’s website. The documents should be clear, easy to understand, without jargon or unrecognisable abbreviations, and relate to Australian regulations and standards. They should also be less than five years old, or you will need to request an updated one to keep available while the product is in use. A Safety Data Sheet provides information on the properties of potentially hazardous chemicals including paints and paint products and how they affect health and safety in the workplace. They will also advise on how to use the products safely. You should find details about the product with regard to; • • • • •
the identity of the chemical, health and physicochemical hazards, safe handling and storage procedures, emergency procedures, and disposal considerations.
36 | Aussie Painters Network
To conform to regulation, the SDS should cover the following information if relevant: Section 1 - Identification: Product identifier and chemical identity Section 2 - Hazard(s) identification Section 3 - Composition and information on ingredients Section 4 - First-aid measures Section 5 - Fire-fighting measures Section 6 - Accidental release measures Section 7 - Handling and storage, including how the chemical may be safely used Section 8 - Exposure controls and personal protection Section 9 - Physical and chemical properties Section 10 - Stability and reactivity Section 11 - Toxicological information Section 12 - Ecological information Section 13 - Disposal considerations Section 14 - Transport information Section 15 - Regulatory information Section 16 - Any other relevant information Both your employees and your clients are entitled to know what chemicals they are coming into contact with as a result of the job you do. The details provided in the Safety Data Sheets will assist in determining if product might exacerbate health problems such as asthma; trigger allergies; or whether an ingredient is a known or suspected carcinogen to be handled carefully or avoided altogether. This way all involved can determine the best choice of product to use for specific circumstances and can give you an opportunity to provide specialised professional services to each customer. For further info, see Safe Work Australia’s site at: http://www.safeworkaustralia.gov.au/sites/swa/ whsinformation/hazardous-chemicals/sds/pages/sds
• • • • • • • for more details, visit our website!
www.paintershrpolicies.com
2014 December Issue | 37
Lead group kits.
How do they benefit me? To find out, Take the quiz! Are you... Re-painting pre-1992 or pre-2010 structure? Living in a pre-1992 house with young children? Pregnant in a pre-1992 home? In Installing or drinkng from a rain water tank? Concerned about your pet's chewing/soil intake? Demolishig a ceiling or wall or building a roon in the attic? Growing herbs or vegetables or eating your own eggs or poultry meat? Wondering how you can achieve a safe blood lead level prior to conception, or bring down your blood pressure/improve your memory and brain function etc?
If you answered 'Yes' to any of these questions, then you can use a Lead group ki to find out how much lead is in the soil, dust, water, paint, etc AND - the kit price includes advise on what to do about the results! Call : 02 9716 0014 www.lead.org.au
38 | Aussie Painters Network
www.leadsafeworld.com www.volcanoartprize.com
Study into
38 toxic
substances in the workplace reveals focus on Lead Last month a report was released by Safe Work Australia from The Australian Work Exposures Study (AWES): LEAD AND LEAD COMPOUNDS. The national study was based on a survey to investigate work related exposure to 38 different agents classified as known or suspected carcinogens by the International Agency for Research on Cancer (IARC). The AWES data provides an opportunity to understand the extent and circumstance of exposure of the Australian work force to lead.
One respondent used red-lead paint. The main activities likely to result in exposures when painting are preparing and sanding away old paint before painting over it or removing paint from old structures. The main industry of employment of the exposed respondents was Construction (71%) and Agriculture, forestry and fishing (19%). The main occupation of the exposed respondents was painter (48%), farmer (14%), plumber (9%) and handyperson (9%).
As we now know, Painting industry is one of the most profoundly affected by the use of lead paint in the past, and the issue lurks in the surface of older buildings everywhere. The only workplace activity more affected (outside of traditional high risk lead industries, such as smelting and refining, lead battery manufacture etc), according to the survey, was soldering as the use of respiratory protection in this instance was rare (perhaps more likely to wear only goggles/helmet).
Respondents were assessed as having had high or low exposure, depending on whether they had utilised no protective equipment (high), or having used respiratory equipment alone (low). Some forms of lead are considered likely to be carcinogenic, and while most of the workers surveyed won’t develop cancer as a result of these work related exposures, it does increase their risk. Lead has been implicated as being a risk factor for lung, stomach, kidney and brain cancer in exposed workers.
Lead was added to paint to speed up drying, increase durability, maintain a fresh appearance, and resist moisture that causes corrosion. As a result the impact of lead paint is going to be felt for many more years to come, for painters and the public, despite the fact it was phased out in the manufacture of paint from the 1970’s (although it is still used in some countries). We look at the report which has been designed to thoroughly assess the problem with a view to preventing exposure and handling it better in future years. There were 47 respondents who were exposed to lead through painting old houses, ships or bridges.
The study has indicated that the risk of cancer for the exposed individuals is somewhat increased as a result of exposure, but reinforced the impact of the main non-carcinogenic health effects of lead as well documented and as much of a reason for extreme caution when working with lead. These include a range of profound effects on the foetus; cognitive dysfunction, with children particularly vulnerable; renal failure; hypertension; and a range of haematological effects, particularly anaemia.
Continue to page 40... 2014 December Issue | 39
Study into 38 toxic substances in the workplace reveals focus on Lead
reproductive age. (The Institute recommended lowering the exposure standard from 0.15 mg/m3 to 0.10 mg/m3 (TWA) (Australian Institute of Occupational Hygienists 2009). This recommendation was designed to curb both the risks of potential cancers as a result of lead exposure, as well as diminish the incidence of the gamut of other issues created by the toxin. Focussing on lead contamination in the work place, Awareness and preventative measures are crucial the study didn’t delve into the fact that, in addition like ensuring that power sanders are fitted with dust to protecting themselves in common workplace tasks, collectors and that workers wear appropriate respiratory Painters have the weighty responsibility of protecting protective equipment when sanding older structures anyone in the vicinity of the work being carried out. The fine particles sanded off old buildings must be prior to painting or reparations. thoroughly contained to prevent the contamination of Monitoring of the levels of lead in the blood in high risk neighbouring residents and their properties. occupations was also emphasised; In 2009 the Australian Institute of Occupational Hygienists recommended that For the full report see: the national standard for acceptable lead in blood be http://www.safeworkaustralia.gov.au/sites/SWA/ lowered, stating the current standards did not provide about/Publications/Documents/888/ResearchReportenough protection for workers, particularly to women of AWES-Lead.pdf
40 | Aussie Painters Network
4 /1311 Ipswich Rd, Rocklea, Queensland, Australia 4106 1800 355 344 info@aussiepaintersnetwork.com.au
2014 December Issue | 41
The Industry
Idiots
42 | Aussie Painters Network
Important Contacts Aussie Painters Network www.aussiepaintersnetwork.com.au
Ph. 0430 399 800
National Institute for Painting and Decorating www.painters.edu.au Ph. 1300 319 790 Australian Tax Office www.ato.gov.au
Award Rates www.fairwork.gov.au
Ph. 13 72 26 / Ph. 13 28 65 Ph. 13 13 94
Fair Work Building & Construction www.fwbc.gov.au Ph. 1800 003 338 Mates In Construction www.matesinconstruction.com.au
Ph. 1300 642 111
Workplace Health and Safety Contacts STATE ACT NSW NT QLD SA VIC WA
Website www.worksafe.act.gov.au www.workcover.nsw.gov.au www.worksafe.nt.gov.au www.deir.qld.gov.au www.safework.sa.gov.au www.worksafe.vic.gov.au www.safetyline.wa.gov.au
Phone (02)62073000 13 10 50 1800 019 115 1300 369 915 1300 365 255 1800 136 089 1300 307 877
Cancer Council Australia ACT NSW NT QLD SA VIC WA
www.actcancer.org www.cancercouncil.com.au www.cancercouncilnt.com.au www.cancerqld.org.au www.cancersa.org.au www.cancervic.org.au www.cancerwa.asn.au
(02) 6257 9999 (02) 9334 1900 (08) 8927 4888 (07) 3634 5100 (08) 8291 4111 (03) 9635 5000 (08) 9212 4333 2014 December Issue | 43
OUR MEMBERSHIP Standard Membership • Five postcode listings in our online directory • Work, Health and Safety Plan • Risk Assessment and Safe Work Method Statements • Incident Investigation Forms and Incident Investigation Form Register • Instant access to our pricing and estimating guides • Quotation guide to assist you when quoting • Personal service and phone advice • Web Listing for prospective customers to find you easily • Free targeted online marketing & advertising • Back-links to assist you in SEO rankings • Assistance with Debt Collection and Discounted Terms of Trade • Discounts on Courses • Painter Help section if you are looking for work or looking for painters to help