Major Changes To
Licensing Laws Is Blood
Thicker Than Money? Overcoming
Resistance Critical Numbers for Business
Tips for Using
On-line Training www.aussiepaintersnetwork.com.au
From the Editor Hi all, Happy New Year, though we’re releasing January 2015 a little early as we all need a break here at Aussie Painters Network! Hopefully you’re all getting one too. In time for the New Year, we welcome our new Member Services Officer, Justin Barlow, to the team and are very excited about what he will bring to our organisation. Welcome aboard Justin. So happy to have you with us for an exciting 2015! You may hear from Justin soon, so take advantage of his wealth of experience in the industry. Aussie Painters Network and Face to Face Training is going great guns! It is evident that the flexible delivery options incorporating online training for painting apprentices is extremely sought after for both apprentices and employers, simply making life easier for everyone! Multimodal study options are now available across the country via various RTOs; contact us to find out more. Catch up on your so called ‘block’ training, up-skill and RPL anywhere anytime! Leave behind the old model and never again lose valuable members of your team to training during those busy times. We’ve got a run down on the CSQ Excellence Awards inside, which was held on December 5 and was a fantastic evening; Congratulations to all the winners! Our regular contributor Leo Babauta discusses how to overcome resistance when seeking change – perfect to help with those New Year’s resolutions! Anne-Marie lets you in on her top ten travel tips, for those who are lucky enough to get away on a real holiday this season. We also revisit some of our most popular and informative articles from the past few years too, as many of you will not have seen those early editions; Being a boss and a leader, Working out your worth, and making Google ad words work for you. We hope you find something of interest to take away from this month. Here’s cheers to a fantastic 2015 for all in our Industry.
Nigel Gorman
nigel@aussiepaintersnetwork.com.au
07 3555 8010
EDITOR Nigel Gorman EXECUTIVE EDITOR Caroline Miall CONTRIBUTORS • Caroline Miall • Daniel Wurm • Jennie Gorman • Jim Baker • Leo Babauta • Monroe Porter • Nigel Gorman • Robert Bauman • 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
Is Blood Thicker Than Money?
Page 09
Tips for Using On-line Training
Page 10
Being a BOSS and a LEADER
Page 12
When Resistance Smacks You in the Face
Page 17 “Care, Custody and Control” What is it? Page 18 Licensing and contracts affected for Painters, NSW Page 21 Protection Given to Subcontractors for Company Collapses Page 24
My Top 10 Travel Tips
Page 27
CSQ Excellence Awards
Page 29
What’s Your Wealth Plan
Page 32
5 Critical Numbers for Business
Page 35
Google AdWords
Page 38
The Industry Idiots
Page 39
Important Contacts
(Part
1)
Just-In!! It is with pleasure that I introduce myself as the incoming Member Services Officer/Trainer! I would like to thank Aussie Painters Network for giving me an opportunity to join the team to support our Members, and to fulfil the role of the organisation’s first Painting and Decorating Trainer. Like many of you, I’ve watched Aussie Painters Network develop from its humble beginnings to the fabulous industry support and publisher that it is now, and I’m excited about the organisation’s vision and direction, particularly with regard to the training of apprentices. We are, for the first time in our industry, offering a flexible and blended delivery model. We provide access to online learning, training in the workplace and off-site training, to suit individual employer’s business needs and the learning style of the individual. My goal is to provide a high level of customer service and support to all of our apprentices and employers whilst achieving quality training outcomes. I have clocked up over 20 years’ experience in the Painting and Decorating Industry, swinging a brush and training others to do the same. I’m really looking forward to assisting you all with knowledge and expertise and offering a unique learning model. If you have any issues or just want to say hi, please get in touch. I am here to assist you in anyway I can. Cheers
Justin Barlow 07 3555 8010 0433 724 794 justin@aussiepaintersnetwork.com.au
Is Blood
Thicker Than Money? by Monroe Porter
Family issues can always be complicated and not so clear cut. Throw in business issues and you have a real challenge. Many of the contracting businesses in Australia are family businesses. With this comes some realities business owners need to face and deal with. First, if the business fails, everyone loses. Leading with your heart and not the numbers builds an enabling environment. Family members should be hired according to their skills and abilities. Having someone in a position who cannot do the job is unfair to the person and the company. Both business and people change. Such changes can impact overall business operations. For example, a spouse who works in the office while raising the children might work great at 200k in sales but will be a disaster at 800k. An owner who reaches 55 and feels he or she has the right to cut back can also lead to problems. Many mature owners, in theory, want to take more time off and hand the reins off to children but in reality they won’t let go. In other
cases siblings want the title and income but not the responsibility. One way to help manage these types of problems is to implement a companywide planning process that includes goal setting, accountability and clear communication. Working as a team in a family business is even more challenging. Family communication practices and dynamics are a reality. My wife is one of the best office managers I have ever met but I doubt we would work well in the office as a team. Boundaries can be set and communication can be a challenge. Even when there is a situation where one family member is good at one set of skills and another at something totally different, challenges persist. For example, a wife may pay the bills and the husband performs the estimates and project manages the work. At first glance, this seems like a perfect business marriage. Each person is using his or her strengths. The problem is that the husband may make operational decisions which heavily impact the financial health of the company. If he prices work too cheaply or buys equipment
www.proofman.com 6 | Aussie Painters Network
when there is no money to fund the purchase, funds are always short. This can make for a shortage of cash and creates conflict. Since the business is the family source of income, the battle spills over into family life. Such husband and wife teams must act as a CFO and Operations VP and make joint decisions. Passing on the family business can be every parents dream but making that happen may not be in the cards. For smaller businesses that are not financially successful, it may be something as simple as the business will support the founding family but it does not have enough income to support two siblings. I have known situations where parents with a business that did $500,000 in sales left it to 4 siblings and the results were not only financially disastrous but now the kids don’t even speak to each other. In larger businesses it still can be a challenge because some family members are more capable than others. And in some cases the business is left to individuals who do not have a role in the business. Both of these scenarios usually lead to family conflict.
Reinventing family communication patterns can also be difficult especially when it comes to setting boundaries. It is not uncommon for a child who has issues with accountability to also have issues with employment. In others words, it may be unrealistic to expect a child to come to work in the family business and suddenly succeed and all of their bad habits are expected to simply disappear. Worse, the founders of the business who are also parents have already developed a communication pattern that may be difficult to change. In other words, if little Johnny did not pick up his underwear off of his bedroom floor, there is a good chance he will not pick up his tools at work. A possible solution is to have siblings work somewhere else prior to joining the family business. This allows children a chance to fail and make sure they are responsible for their own behavior prior to joining the family business. So what are some of the solutions for running a better family business? Try to keep business conversations at work and family conversations at home. Start a planning process that will force communication and public accountability. Consider hiring a neutral outside consultant to help monitor and manage the situation.
Making a will and completing the legal side of succession is complicated but most founders ultimately do it. However, legalities alone won’t make it happen. Also focus on the management transition of your business. You will find this demanding and time consuming but without it the business may fail. 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.aussiepantersnetwork.com.au 2015 January Issue | 7
8 | Aussie Painters Network
Tips for Using
On-line Training
The e-learning system developed for the painting industry by the National Institute of Painting and Decorating is a revolution in training for the industry. Over 450 painters across Australia have registered or enrolled in one of the on-line courses since March, and dozens of new apprentices will soon commence training in the new year.
How can you get the most out of using the system? Here are some simple tips and suggestions for employers, apprentices and students:
Employers
If you have a project coming up where you need your staff or apprentices need training for a specialist skill, ask your staff to commence the units on that subject. For example, if you have a job coming up where your team needs to do texture coating, ask any inexperienced staff members and apprentices to familiarise themselves with that subject using the on-line system. This will give them the knowledge they need to accomplish the job effectively, and minimise mistakes. You don’t have to wait for a class to give your staff the training they need. Apprentices should be given time to complete the online lessons. Some employers give the apprentice a regular 2 hour time slot every week to work on their apprenticeship. Others prefer to keep their apprentice on the job when it’s busy, and then allow the apprentice a whole day of training when its raining, or when things get quiet. Its up to you, but allowing your apprentice time to work on the on-line lessons minimises the amount of time they need for block training.
Apprentices
Make sure you log-in onto the portal every week using your smart-phone. This process only takes five minutes, and you can log what you did that week, including any new skills, who your supervisor was, and upload any photos as evidence. This helps your assessor keep track of your progress, and gives you a really great portfolio of your work.
Short Courses for Upskilling
Over 15 different short courses are available for painters to update themselves, learn new skills, or get licensed. Why not use the holiday season to learn a new skill to improve your business? On-line courses follow a simple 6-step procedure: • Enrol and pay on-line using credit card, EFT or Paypal • Watch the multi-media video lessons, which are presented by the industry’s leading trainers, using animation and showing you the latest techniques. Answer the questions. • Practice your new skills on your work-site, or attend one of our practical workshops. • Upload photos and videos of yourself performing your new practical skills • Get your skills verified by a supervisor, a colleague, or one of our trainers. Once you complete the course a certificate will be emailed to you to confirm your qualification. If you need help or advice, or just want to talk to a trainer, please call Aussie Painters Network.
www.aussiepaintersnetwork.com.au 2015 January Issue | 9
Being a BOSS and a LEADER If someone were to ask your employees what sort of boss you were, have you ever wondered what the response would be? Ask yourself honestly, Would you want to work for someone like yourself? When considering ways to optimise your business and its practices, don’t neglect to turn the focus on yourself occasionally, and make sure your performance is being evaluated and improved, just as you would your employees. You might be missing out on valuable opportunities to bolster your success, with the important bonus of more contented staff.
If you supervise staff, then you as the employer, owner, foreman; whatever the capacity, should investigate how you’re doing from your staff’s point of view. Your impact on their day to day lives can be fairly profound particularly if it’s a negative one. And if it is a negative impact then your business will probably be suffering as much as your staff are. It makes perfect sense that happy and confident employees are more likely to be productive, take pride in the work and finish a job well. You can’t put a price on a well trained and loyal staff member that wants to stay with their job. Unnecessary staff turnover costs a business of any size an immeasurable amount of money and hours in lost training, knowledge and even client good will.
plan, deconstruct a problem and relate. Also, not unlike getting the best out of your kids, its crucial to give credit, acknowledgement and praise.
So how can you make sure you’re doing the best for your business by the way you manage people? Start by asking them; in an open an honest forum, give them a non threatenening environment to express how they feel about their job, the business and you! Depending on your relationship with staff hopefully this won’t be too harrowing, but if you’re afraid to ask them, you are probably the kind of employer who most needs to!
If you have the means, encourage staff to take on study to upskill – good for you, good for them – if there’s a cost issue, look into the government rebates for training. Perhaps you could allow some short amounts of staff time to contribute to their chosen community project or charity; trade related or not. Generosity that can be a big tick for your company, and provide staff the chance to step out of routine and comfort zones, where personal growth can be greater.
Overseeing a group of staff is surely easier when working as a team, you have each other’s backs, try to problem solve together, and unpack things that go wrong with view to avoiding them again. Maintaining the positive approach sure beats a culture of blame, fear and overwork! By example you are teaching them skills as valuable as the technical ones they require; how to
Steered by a good leader, you can empower your team to excel gaining confidence in themselves and their abilities and they will be invested in the job. “A good boss makes his men realize they have more ability than they think they have so that they consistently do better work than they thought they could.” Quote from - Charles Erwin Wilson
10 | Aussie Painters Network
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
2015 January Issue | 11
When Resistance Smacks You in the Face
As a writer, one of the most frightening sights I face is the blank page. It fills me with doubt, uncertainty, dread, sometimes a bit of panic, and creates an urge to run for any distraction. And I face this terror every day. Whether I’m writing an article or a book chapter, creating something new is not easy. I open up a new document, and instantly want to go answer some emails or clean my kitchen or read that long article on magician Ricky Jay. This is a question we all have to answer for ourselves: When you’re faced with the Resistance, what will keep you from running to distraction? There’s no easy answer. Like many of you, I’ve tried just about everything.
12 | Aussie Painters Network
Nothing works every time, because the best plans crumble when you’re hit in the face by Resistance. I’ll share what helps me. 1. Sit there, and look inside yourself. Just because an urge arises to run doesn’t mean you have to follow it. I will feel the urge, and then sit back, and try not to take any action. I’ll look inside and feel the urge. Then I’ll try to see what I’m afraid of. When I shine a light on it, it’s not so bad. 2. Think about who you’re helping. While Resistance is scary, it’s often not nearly as bad as the pain that someone else is facing. If you’re creating something that will positively affect someone’s life, then that’s more important than the amount of fear you’re facing. So think of that person, and put their pain above yours.
3. Think about the gift of time. Time seems like such an endless commodity, because we never see a gauge that’s showing how much we have left. But it’s like reaching into a huge vat of cookies and pretending it will never run out. One day, you’ll feel around inside that vat and the cookies will be gone. Cookies, in this clumsy metaphor, are days in your life. Once you appreciate the limitedness of these cookies, you realize that you have to savor them, and not waste them. Each one is precious! So make the most of it: do you want to create something new, or spend your remaining time doing email and social media? 4. Just get started. Usually all I need to do is get the ball rolling. I tell myself, “Just write one sentence.” Usually that’s something that’s so easy I can’t say no to it. So I do that, and things often flow a lot easier.
5. Remove options. Cut off escape routes. Where do you like to run to? If it’s email, put up a site blocker so you can’t check email. Disconnect your router. Go somewhere that doesn’t have Internet. Or use a fullscreen distraction-free writing app. Only allow yourself to use one tab in the browser — you can’t open more than one. Have someone monitor you or hold you accountable. Don’t let yourself run. 6. Let yourself run. This is in direct contradiction to the previous tip, but as I said, not everything works all the time. Often I’ll open up a new document to start writing, and then immediately want to go do something else… and I go do it. I’m not perfect. I let myself run to distraction, but I’m conscious of what I’m doing. And I know that I shouldn’t do this for very long, so I only let myself do it for a few minutes. It’s
like giving yourself a bite or two of cake but not letting yourself gorge on the cake. It’s OK to take a bite if you put the fork down right after. Sometimes the fearful mind just needs a bit of a break from the scariness, but don’t let it hide forever. 7. Go for a walk. I will get up, walk around, sometimes even go outside and take a 10-minute walk. This walk is good because it gets me away from distractions and helps me think through what I want to write. Often I’ll come up with some good ideas on the walk and then be excited to get them on paper, and the Resistance will be gone. 8. Talk to someone. If I’m struggling, I’ll find someone to talk to, and explain my problem. Often this act, and the need to clarify it and state it succinctly, helps me clarify it in my head. And sometimes the
answer to whatever problem I’m facing becomes incredibly obvious once I’ve stated the problem out loud. I’ll say it again: no one of these solutions will work all the time. But if we think of the struggle against Resistance as a cage fight, think of these ideas as different modes of attack. When one doesn’t work, switch to a different mode, until one does work. Resistance will always be a tough opponent, but when it smacks you in the face, don’t collapse. You have more in you than that.
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.
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!
www.mytools4business.com/mycostingguide2015 January Issue | 13
14 | Aussie Painters Network
Contact Graco Australia: 03 9468 8500 | 0417 723 360 darren_jones@graco.com
2015 January Issue | 15
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
“Care, Custody and Control”
WHAT IS IT?
Accidents happen to everyone. Whether it is a moment’s distraction or just plain bad luck sooner or later one of the following may happen to you: • • • •
staining carpets; putting a hole through plasterboard; leaving rust rims from a paint tin; or simply spilling paint!
Sometimes, you may be able to clean up the mess without too much expense – but if you’re unlucky, the damage could be costly. Repair bills like these strain both profit margins and your relationship with customers so making sure your insurance protects you in these situations is simply good business sense. The type of cover you need to have is Public Liability insurance – and in particular, make sure it lists “Property
in your Care, Custody or Control” or “CCC”. Your public liability insurance protects you against a range of matters where you may be sued – for both damaging property or accidentally injuring someone. It will generally have a limit such as $5.0, $10.0 or $20.0 Million – but you will often have a “sub-limit” for damaging your customers’ property in the CCC section. This means you’re protected for these events, but only up to the amount it specifies – e.g. $100,000 or $250,000. If you’re working on a particularly large contract, or in a situation where you’re worried you could cause be in for significant repair costs if something goes wrong (such as working on a heritage listed building) – then you should have a look at the fine print and check out what your CCC sub-limit is. If you’re unsure or can’t find any mention of it on your policy, then give your broker a call and ask him to tell you in plain English exactly what your limits are.
2015 January Issue | 17
Major Changes to Home Building Laws
Licensing and contracts affected for Painters, NSW
Significant changes to New South Wales licensing laws have been passed, seemingly with little or no consultation, and are set to be enacted as soon as January 15 2015. From the NSW Fair Trading website; “The threshold for requiring a licence for building and trade work is increasing to over $5,000 (including labour and materials). Additionally a licence is no longer required for internal paintwork and work related to tennis courts, ponds and water features, unless done with other home building work.” The changes come under the Home Building Amendment Act 2014 and Home Building Regulation 2014, which the site suggests were devised with exhaustive consultation with industry, home owners and key stakeholders. After discussions with various NSW painting business owners and industry organisations, it would seem that the changes have been met with a great deal of surprise and consternation, so it’s difficult to tell how extensive the consultation has really been. Ostensibly, the changes are to reduce red tape; “Red tape reduction helps to reduce unnecessary burden on industry so it can devote more energy towards in-
18 | Aussie Painters Network
vestment and job creation. Among these measures are focusing the requirements of the legislation on core building work. Stand-alone contracts for internal paintwork as well as work related to tennis courts, ponds and water features no longer need a licence, unless done as part of other home building work as consumers” Given that a great majority of painting work is internal, and under $5000, this will have a profound impact on the industry in NSW. Apart from the huge potential for shoddy workmanship and job disputes that will inevitably arise from these decisions, it is important to remember that this will see inexperienced workers dealing with asbestos and old lead paint in an unknown number of dwellings. The impact could be fairly dire and far reaching for residents and workers. Aussie Painters Network will be sure to follow the progress of these laws in future editions, so watch this space. For more information, see http://services.enews.fairtrading.nsw.gov.au/online/18251433-293.html Foundations enewsletter - December 2014 services.enews.fairtrading.nsw.gov.au
• • • • • • • for more details, visit our website!
www.paintershrpolicies.com
2015 January Issue | 19
20 | Aussie Painters Network
Protection Given to Subcontractors for Company Collapses
ABIS • New policy for contractors to have trust funds is going into effect. • Monies in trust fund will help protect subcontractors from economy downs and contractors not paying. A brand new trust-fund scheme is being created in order protect subcontractors from large constructions companies that fail and keep the money that is still owed to the subcontractor. This initiative is the result from an inquiry that the state government placed in 2012. Bruce Collins QC is responsible for chairing the inquiry. ABIS was delighted to provide the inquiry with feedback from its survey of subscribers.
contractors to show they are keeping trust accounts as required,” Mr. Mason-Cox said. “This will end the widespread industry practice of using subcontractors’ trust money for the head contractor’s working capital purposes. “At the end of the day, this money belongs to subcontractors and it’s about time it was protected as such.” This new trust fund scheme will only apply to head contracting companies and their subcontractors for construction worth at least $20 million. This requirement could change over time.
Matthew Mason-Cox, the Minister for Fair Trading, announced this new trust fund scheme and this will be the very first of its kind in Australia. It will require large construction companies to place retention money into a trust fund specifically for their subcontractors. Any of the head contractors that do not comply with this new requirement will have to pay fines as high as $22,000.
“While most builders do the right thing and pay their subcontractors on time, we need to protect subcontractors’ retention money if a construction company collapses,” Mr. Mason-Cox said.
As much as 5% of the total cost of a contract is typically retained by the head contractor until the subcontractor finishes all work required and fixes any problems. The trust fund scheme will make sure that large contractors will not be able to use the money for other purposes.
The government is also looking into the possibility of making company directors personally liable.
“Head contractors will be responsible for holding the retention money in their own accounts, and NSW Fair Trading will be checking audit reports that require head
“The changes will also provide greater transparency in relation to payments to subcontractors.”
“These reforms will deliver better outcomes for subcontractors while minimizing red tape for the industry,” Mr. Mason-Cox said.
Phone: 1300 887 959
www.aubis.com.au
2015 January Issue | 21
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
How much does your business need to earn to cover its expenses?
22 | Aussie Painters Network
www.mytools4business.com/myhourlyratecalculator
2015 January Issue | 23
My Top 10
TRAVEL TIPS
Time to pack! I have been adding bits and pieces to the ottoman at the end of my bed, for the past week or so, as I come across things I would like/ need to take with me. Time to sort it all out and cull! It’s no secret that I like to travel as light as I can. I find it so liberating, living with a well-planned travel capsule wardrobe … not too much, not too little. Have you found, when you have gone on holiday before, that you really only wear a third of what you take? The secret is finding that ‘third’ that you would wear and only taking that with you … more room to bring back some goodies from your travels. The secret is mix and match …. (and for the women, accessorising!)
Here are my top 10 tips for travelling light … for ‘liberating travel’! 1. Find out what the weather is going to be like where you are heading. What’s the average temperature at the time of year you are travelling? … and what’s the chance of rain? This will dictate your whole wardrobe and will often be the difference between living out of a carry-on or a larger suitcase. I challenge anyone to live out of a carryon in winter! … with ski gear!
24 | Aussie Painters Network
2. The best plan of attack for travelling light is to plan your outfits. Pack items that are easy to mix and match, that can be worn more than once in more than one outfit, and that can be dressed down for day and dressed up for night time. If you stick to solid basics, in similar colour palettes, you can’t go wrong and you will have lots of wonderful permutations and combinations from which to create your daily outfits, depending on your mood and your whim!
few coloured pieces. They can be dressed up or down with different shoes and accessories … depending on how much walking/or partying is going to be done! Being rather challenged in the height department, and breaking the Susannah and Trinny rule of not wearing 3/4 length pants if you are a shortie, I find wedges compensate by adding some height and they are also super comfy! 4. Don’t pack clothes that you don’t usually wear. You don’t wear them for a reason … uncomfortable? … ill fitting? Pack things from the part of your wardrobe that you wear 80% of the time.
3.Gather your basic foundation items – pants, tops, dresses, jackets – and then look to where you can mix and match and add colour with accessories and jewellery. I started with evening outfits that I could mix and match in black. I am taking a light ruffled chiffon summer coat that I can wear if I need to cover up at night (or during the day) and one pair of black heels that can also be worn with daywear if I’m not walking far! Bold patterns are harder to mix and match but, that said, I am taking a
I always pack a few scarves to pretty things up a bit. They can also be used as a wrap, a blanket on the plane, a cover up for the sun and in mosques … and they are always handy to sit on, if need be!
5. Pack travel size toiletries. If you run out, you can always buy more. Most likely you won’t .. run out. Saves heaps of packing room. I like to use a hanging toiletry thingy as you never know how much bench space is awaiting you at the other end. 6. Bring a travel towel. They don’t take up much room and even if there is the promise of ‘5 star’ at the other end, you never know when you might need it. They are super absorbent and dry fast. I pack mine flat in my computer bag to add that little bit of extra padding when travelling. I have already lost one Mac this year due to bumps and scrapes. Large ones. Sigh. 7. Pack bags with purpose. Can your carry-on be used again? As a day-trip bag perhaps? Is it too big to be multipurpose during your holiday? Your carry-on need not be big. You don’t really need much these days on planes. My carry-on essentials are: my computer, phone and cords, an extra power source, an adaptor – just in case you can charge your devices on the plane – something to read, a notebook and pen – for brainwaves – earphones, earplugs, toothbrush and toothpaste, antibacterial wipes, headache tablets, socks – so you can kick your shoes off and keep your feet warm – moisturiser and lip balm. My passport and credit cards never leave my lucky neck pouch that I have travelled with since I was a young thing, back in the days of no responsibilities! What are you going to cart around during the day, when sightseeing? Think about what you might be doing and what would be comfortable enough to carry around all day. Cross body bags are very comfortable and don’t put your shoulders and back out! I always carry my valuables (passport and credit cards) hidden
on me and my day bag is almost always a diversion/decoy. If it is pinched, whatever I have in it (water bottle, tissues, hand wipes, lip balm, map, scarf) I won’t miss. 8. Photograph your luggage, just in case it gets lost. I have a bright fluoro strap that I wrap around my suitcase so I can see it coming from a mile away. Our entire family’s luggage got sent on a holiday the year before last. Having photos made it so much easier to describe our suitcases to the staff searching for them. 9. Last minute …. take 3 more things out of your suitcase that you think you won’t really need. Every bit of room counts. Have you got all your cords? … phone cords, computer power cords, power adapter, back up power source? Forgetting cords is my specialty! 10. And last but not least, are you insured? Get travel insurance! You should really buy your travel insurance as soon as you book your trip. This helps ensure you are covered if anything happens before your trip that would result in you having to cancel it. Check that your travel insurance policy covers all areas that you are travelling. Different areas may require different types of cover. And make sure that any activities that you are doing are also covered under your policy. Make sure all your travel essentials are covered, including your electronics, your luggage and travel documents if they are lost, damaged or stolen. Ok, I’m done. I’m packed, protected and ready to go. I have butterflies, I’m so excited. And that is always the way I start out on my travel adventures … there should always be butterflies! by : Anne-Maree Russell
www.thehousethata-mbuilt.com 2015 January Issue | 25
26 | Aussie Painters Network
The 2014 Construction Skills Queensland Excellence Awards night was held on Friday 5th December at the Convention Centre. This year the Queensland construction industry night-of-nights marked 20 years of the celebration being held, and continued to meet the high expectations that have become the norm for the event, with major sponsorship from Face to Face Training. Last years’ Winter Wonderland theme, complete with ice skaters and synthetic snow, was topped this year by a visually spectacular ‘Moulin Rouge’ event. Can-can dancers, and masquerade masks set the decadent scene with a very red-lit ball room, making a lot of the photos a bit dodgy, but creating a fantastic atmosphere to bestow the awards to the high calibre, hard working winners.
Award winners were announced in twelve categories across the areas of Excellence in Construction Training in Schools, Excellence in Construction Training by Registered Training Organisations, Employer Commitment to Training Excellence and Outstanding Individual Commitment to Training Excellence and the Judges’ Outstanding Achievement Award, sourced from all shortlisted nominees. Aussie Painters Network wishes to extend their congratulations to all the winners, as well as sponsors and organisers of such a fabulous night.
CSQ Board Chair, Graham Carpenter kicked off the formalities with an official welcome, followed by Brett CEO Schimming announcing the Phil Boron Memorial Award. Mates in Construction, the wonderful National initiative actively helping to reduce suicide in the industry, was given due recognition early in the night with a presentation on the inaugural MIC Kokoda Trek joint venture with CSQ. The thirty participants raised nearly $140,000 with the trek and related events, which means MIC can put on another support officer to continue the good work. It was great to see this recognised and supported on the night.
2015 January Issue | 27
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
28 | Aussie Painters Network
What’s Your
Wealth Plan? It’s 2015 and I bet you made some kind of promise to yourself last year. Something like… I’m going to save more money, or maybe it was — I’m going to stop living pay check to pay check. Whatever it was, this is the year to begin your journey to financial freedom. Life can be hectic when you’re a tradie, especially when you’re not sure when your next job’s coming in. If this is you it’s probably time for a reality check. Have you thought about your future? Let’s be honest, our bodies aren’t cut out for long-term hard labour. It’s time to start thinking NOW.
Meet Joe— he’s a tiler from the Gold Coast We asked Joe and his partner (now wife) Kerry what their wealth plan was when we first met them 12 years ago at one of our educational events. They didn’t have a plan. So we implemented a strategy that enabled them to pay off their mortgage in 10 years, buy 3 more investment properties and now Joe only works 30 hours per week. He plans to be fully retired in 4 years. Guess what? He’ll be 52 years young.
723 millionaires in the last 19 years. These people are everyday Aussies and now they’re millionaires because of smart investing. Joe and Kerry attended our property education event and you can too as Aussie Painters Network has sponsored your tickets! Normally tickets are $1500 but it’s free for you (and your partner/friend). At our next Fast Track to Wealth event, you’ll learn: 1. Accountant approved strategies to pay next-to-zero tax. LEGALLY. 2. Massive asset accumulation strategies — so you can sleep easy at night. 3. How to take advantage of the economic conditions regardless of boom, bubble or GFC. 4. How to build the property portfolio that creates the lifestyle you want with minimal risk. 5. How to buy property on the income you have (no need for a second job).
Not bad, right?
Our next Fast Track to Wealth events are: • March 7 Sydney • March 14 Perth • March 21 Melbourne • March 28 Brisbane
The financial strategy we implemented for Joe and Kerry is the SAME strategy we’ve used to create over
Register right now so you don’t miss out on your spot http://jdlfasttrackseminar.com/apn/
2015 January Issue | 29
from $45.00 30 | Aussie Painters Network
2015 January Issue | 31
5 Critical Numbers for Business – Part 1
Can you imagine what a Tradie would do without a measuring tape? If you are in the building, plumbing or painting industry, having the right measurements is absolutely critical. Without the right measurements, doors and windows wouldn’t close, plumbing fittings would not match, steps would be crooked and dangerous, water wouldn’t flow the right direction in pipes… buildings would fall down. Come to think of it, measurements are critical in every area of life… including business. Most Tradies spend more time out on the job measuring up than measuring how their business is going. Looking at their business numbers is generally not high on their priority list, although I recommend it should be, and not just for Tradies. Keeping track of and improving five critical measurements in your business can actually result in you needing to work less… a lot less… and make a lot more money… what a fantastic way of being rewarded when you’re paying attention to your business numbers! So let me introduce you to the first two of these critical numbers now and I will get to the other three in Part 2 of this article. 1. Gross Profit in $ / Gross Margin % Let’s say we’re talking about a Tradie, and let’s call him Bob… He’s started his business and is running some ads in the local paper. Things seem to be going okay. The inquiries come in. Bob manages to convert some inquiries into sales. And he finishes a few jobs.
32 | Aussie Painters Network
Bob thinks things are going well… until… his wife goes to the bank… and there is NO MONEY. The phone has been ringing. He’s been busy doing jobs – in fact so busy he’s hardly had time for his family (let alone himself). Where has all the money gone? Let’s see if the numbers can tell the story. Has Bob been making enough Gross Profit? Has Bob been monitoring his gross margin? To illustrate this scenario I am using the following example: A Sales ($) 2000 B Cost of Goods / Direct Cost($) 1500 C Gross Profit ($) 500 (A-B) So by deducting the Cost of Goods / Direct Costs ($) from Sales ($), you arrive at the Gross Profit in dollars. Of course Bob will need to invest some of his gross profit into buying further materials to be able to do more jobs to earn more money. He understands that he needs to make enough money to purchase more materials AND feed his family. The trouble is that he’s only looking at gross profit on a job by job basis and since he’s got more than one job going at any one time Bob is bound to lose track of where he really sits on the percentage scale of his Gross Margin.
His Gross Margin (%) in this example is calculated to be 25.00%, ie 100 x (C/A)
Does he now have enough money in the bank for his wife to be able to meet all household expenses? Not quite. That’s where the second critical number comes in.
2. Markup Most people understand that Markup in business is what defines the profit margin further. Markup is calculated by using this formula: (A-B)/B, and in our example it equals 33.33%.
Bob can do one other thing to learn whether he has a profitable business: he can look at benchmarks from other businesses in his industry. However, for that he would also need to know what the real figures in his business are to make a comparison.
So how much Markup can Bob place on his services or materials to increase his bottom line? The answer is partly determined by market conditions but also by the kind of clients Bob is helping with his business.
As you can see, from little things big things grow. When Bob starts documenting his critical business numbers he can then create a budget and cashflow forecast. Armed with this information he can begin to have more certainty regarding his business’ income. Bob’s wife would be pleased immensely and Bob would have peace of mind instead of sleepless nights pondering how he can make the business work better.
Most importantly, however, Bob would want to know his Gross Profit in dollars before making a decision on how much Markup he should apply on his Sales, which could be either labour / service cost or the sale price of materials and other goods he needs to provide services to his customers. In order to know how much gross profit Bob makes overall in a month and then work out what his gross margin percentage is, Bob needs to keep track of his business numbers, what he spends on material costs and what he makes on labour. Whether he does it himself or gets some help from his wife or an external bookkeeper, Bob really needs to document his transactions in a timely way.
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 & Associates www.adhamilton.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
2015 January Issue | 33 www.mytools4business.com/howtobecome
Have an
Appy
New Year!
Aussie App Store allows you to edit and manage an iPhone, iPad and Android app online using our powerful (CMS) content management system. Every app created by Aussie App Store is a native app that appears in the iTunes app store and Google marketplace. Our easy to use content management system allows for beautiful app design, customisation and functionality across a broad range of mobile devices. Update your app’s content or appearance whenever you choose by using our powerful CMS (Content Management System) without having to send your app to Apple and Google for a time wasting update. Aussie App Store creates apps especially for small business. Our charter is to create you a state of the art app tailored specifically to your business’s needs. Aussie App Store offers a no questions asked 30 day unconditional money back guarantee. If for whatever reason you are unsatisfied with your mobile application within the first month of service.
Contact Us Phone: Email:
1300 494 188 info@aussieappstore.com.au
www.aussieappstore.com.au 34 | Aussie Painters Network
Do you have an Adwords account (paid advertising on the RHS of Google)? Are you finding that you’re paying out a lot of money but there is very little, genuine calls for actual quotes? Have you noticed that you are getting an increased amount of canvasing calls? Well, you’re not alone, as many painters I talk to experience the same problem. I have recently returned from an 8 week overseas holiday and hadn’t taken any notice of how my Google advertising was performing until I received my last two accounts. Normally my monthly bill is around $150 but my September account was $270 and my October account $340, so this really concerned me. As I manage my own Google campaigns, I noticed through a search that my adverts were being ‘clicked’ on 2-3 times per day, 7 days per week. (Because I have a daily budget, the ‘clicks’ will not exceed this amount, which is lucky for me as my account would have been much higher). In the time period I was away, my Google advert was clicked on around 100 times but there were only 10 potential clients that actually phoned me. How do I know this? Because every call that is received from a potential client, I ask the question, ‘Where did you find my name? So who were the other 90 people that ‘clicked’ on my advert? Immediately ‘bells’ rang as I thought there could be some illegal activity going on through my Google campaign, so I contacted the technical support line at Google to ask for help in solving the problem. This was a very well-worth 20 min chat as I learnt quite a lot from him. He took me through certain filters to see if there was any unusual activity on my campaign. It eventually led to the ‘hour of day’ my Adword campaign was being ‘clicked’ on, and also the city it was made from. He explained that if there was a ‘cluster’ of calls made, let’s say 10 ‘clicks’ between 10am and 11am on a particular day or they were made from another country, then there would be a concern to look into. If and when this does happen, there are Google filters that recognises
there is unusual activity and stops everything coming in from that IP address. Google will not charge you for any ‘clicks’ deemed to be illegitimate. In my case though, the clicks were spread throughout the day and they were made from Brisbane. So although I had all this extra knowledge of the different filters I could now use, it didn’t solve my immediate problem. So why am I receiving a high ‘click rate’ but little to no calls? It suddenly dawned on me that in the period of being away, I remembered receiving an unusual amount of canvassing calls. (If you are wondering how I know about these calls if I’m away on holiday, I recently had a new digital phone system installed which transfers all voice phone messages to my email account. Technology is brilliant!!). If a canvasser wanted to retrieve your phone number, they would first have to click on your advert to get to your web page. This has just cost you a few dollars (depending on your ‘click rate’ budget) with no potential client outcome. The technician and I talked more to see what could be done and he mentioned I could include a phone number on the immediate campaign advert. This made perfectly good sense to me. The good news is that there is no charge to have this extra line and you can do it yourself or, you can contact Google to do it for you. This will eliminate a person having to ‘click’ on the advert just to find a phone number. Over the past few weeks, I have carefully monitored my Google account and have noticed that my ‘click’ rate has dropped dramatically. As I said, ‘A well worth 20 min chat.’ You can reach Google by calling 1800 287850 Monday to Friday, 9am-6pm Sydney time.You will need to enter your Customer ID to get through to them and you will also need to be signed into your Adwords account during the call. Jim Baker
www.mytools4business.com 2015 January Issue | 35
The Aussie Painters Network App Just search the App Store or Google Play for Aussie Painters Network.
36 | Aussie Painters Network
1800 355 344
4 /1311 Ipswich Rd, Rocklea, Queensland, Australia 4106 1800 355 344 info@aussiepaintersnetwork.com.au
2015 January Issue | 37
The Industry
Idiots
38 | 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 2015 January Issue | 39
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