Legal support you need, without worrying about unexpected bills.
Let’s explore this, and see what might be possible.
The type of funding you access depends on your financial situation.
I can’t believe its Easter in a couple of months, where have the first three months gone this year? Well, its been another massive month with training in regional areas and attending three National Association of Women in Construction (NAWIC) events, in Brisbane, Toowoomba and Hervey Bay. These have been really well attended and they have attributed to us finding more apprentices.
Whilst in those areas it was great to spend some time training the local apprentices with me catching up with almost 20 of my regional apprentices over the few days I was in those areas.
If you are in QLD, we are starting to get a list of people looking at getting into the trade, we are also in the process of expanding our Jobs Board on the Painting Apprenticeships site to go National. This will be going lave in the coming month. We will let you know as soon as it’s live.
We are hearing that work is starting to slow in some areas, we believe this has to do with the 10th rate rise and the increase in living costs, I don’t think its time to panic, however, I would suggest you have a look at your budgets and make sure you are ready if your workload slows down.
I hope everyone has a safe and happy Easter.
• Aaron Gilbert
• Ama Samarasinghe
• Ayesha Scott
• Candice Harris
• Jim Baker
• Kylie Shiels
• Leo Babauta
• Mary Cairns
• Robert Bauman
• Sandra Price
EDITOR
Nigel GormanJ. Anne Delgado
Nigel Gorman
nigel@aussiepaintersnetwork.com.au
07 3555 8010
'Til next month, Happy Painting!!
DO
How
Are you the type of boss your team will remember?
The Wisdom of NON-EFFORT
Think of your business plan as a roadmap designed to point the way to your current destination, knowing that where you land may not be your ultimate end point.
After all, things are constantly changing in a healthy, thriving business. Market fluctuations, new competitors, changes in staffing or your sales figures may nudge you in a direction you wouldn’t have previously dreamed of, requiring new goals and strategies to achieve them.
Of course, a change in plans may also require refinancing – another important reason to keep your business plan up to date. These tips will help you revise your plan painlessly, so you’re best positioned to stay on course and impress a potential lender when applying for funding.
Most likely, it took several weeks – possibly even months – to do the initial research, data organization, goal setting and number crunching when you drafted your first business plan. An update will be a lot less time consuming, but you’ll still need to set aside adequate time in your schedule to review your company mission and goals, analyze new data, consult with your accountant and decide on the most profitable strategy moving forward.
It’s recommended that you review and update your business plan at least once a year. While many business owners update their business plans at year end, it may make more sense to time your update with your income tax cycle, to take advantage of the latest financial data available.
Before you sit down to revise your plan, spend a few hours reviewing the latest market research as well as your business metrics. This exercise will help you brainstorm ideas, set goals and make better decisions on how to achieve them.
Want to save time as you update your business plan? Schedule a meeting with your accountant to discuss your company’s current financial health and what you can do to maximize profits going forward. After all, your financial data is only as useful as your ability to analyze it and act appropriately. Accountants are trained to look at the facts and give you a clear-eyed view of actual results – something many business owners aren’t naturally skilled at.
Specifically, look at any untapped opportunities your business can look into as you review:
• Key market trends you can take advantage of with a new product or service;
• Gaps in what your competitors are offering that your company can fill;
• New technologies that can move your business forward by improving efficiency or productivity; and
• Your marketing and sales processes that yield the best results.
As you prepare to update your business plan, take note: the most compelling piece to a lender, investor or any other reader is the Executive Summary. The key is to draft the Executive Summary only after you’ve completed the other sections of your business plan. That way you’ll have all the information you need to succinctly describe your company’s mission, direction and goals for success. For more useful tips on how to write an Executive Summary, take a look at this helpful post from Entrepreneur.com
It sometimes amazes me how we make everything harder for ourselves than it needs to be — myself included.
That’s not a bad thing — it’s simply human. Harder is not worse. We learn from harder. So there’s a beauty and a sense to it.
That said, once we see how much harder we make things, we have an opportunity to … not make it harder. Simplify. Do things with more ease.
Before we get into how to do that, let’s look at how we make things harder.
We add a lot of extra thinking and stress. We add a bunch of extra steps. We put things off for a long time, so that it becomes so much more stressful. We worry about things we can’t control, or can’t know about (like what other people think of us).
These are all protective mechanisms — we’re trying to keep ourselves safe. But in most cases, it’s not needed.
Let’s look at some examples of how we typically make things harder for ourselves:
• There’s an email in my inbox that requires a few steps before I can reply. Instead of doing those steps, I put it off, because of a belief that I have
too much to do. It lingers in my inbox for a week. A bunch of other emails do that too. I’m so overwhelmed by this that I keep putting off all the emails. What could be a simple set of small steps ends up becoming an unconquerable mountain.
• I have some planning to do for a trip — and I worry about all the possible things that could come up, not sure what to expect, not sure what people will think of me. It feels overwhelming so I put it off while worrying about it for weeks. It could be a simple act of booking a flight and a room, and packing, but it becomes a lot of anguish.
• I have a million things to do on my todo list. Instead of simply doing the next thing on the list, I jump around from one thing to the next, panic about not being able to do it all, distract myself for awhile, making myself feel overwhelmed and stressed.
• Planning for a social gathering at my house becomes an exercise in worrying and overpreparing, spending days getting everything ready. Instead, it could be a simple act of getting some food and drinks and tidying up a bit.
• You can see that for each of these examples, I’ve shared a way that it could be simple and easeful. But we layer complexity, worrying, overwhelm, distraction, avoidance, stress, overthinking, overpreparing, anticipating.
What would it be like to just do things as simply as possible?
Some good questions to ask when you’re doing anything are:
1.How am I making this harder?
2.How could I do it as simply and easefully as possible?
3.How would I do this if I trusted myself?
So for example:
• If you are creating something — if you trusted yourself and didn’t have to worry about whether you’d be judged, how would you create and put it out into the world? For me, it’s much more easeful this way, just creating and releasing my creations.
• If you don’t have time to deal with an email or message right now … could you make some time later in the day or in the week to deal with the messages that will take a little more time?
• Instead of worrying about all the things you have to do and getting stuck in overwhelm about all of it … could you just focus on the next task?
• If you’re worrying about what you said in a recent conversation … what if you simply trusted and focused instead on what’s in front of you?
• In preparing for something coming up, what if you could just trust yourself and do it as simply as humanly possible?
• If you’re piling guilt on top of yourself… what if you released that and gave yourself compassion instead?
• If you are piling expectations and stress on yourself … what if you released all of that and just put yourself fully into whatever you do?
• If you’re avoiding and distracting, adding a lot of extra stress on top of things … what if you just did the smallest next step and trusted yourself?
• If you’re overthinking and getting stuck in worry and indecision … what if you simply got lost in the doing?
What if you brought a sense of play, ease, adventure, curiosity, joy, love to everything you did?
This is a lifelong practice, but it’s so beautiful. I wish you simplicity and ease.
Leo Babauta ZEN HABITS
Recently I put out a post on numerous Facebook groups with the above title. It read:
‘Most painters I know are too afraid to put up their prices as they think customers won't accept their quotes. The real reason is they're more concerned about what others are charging and must match it or be lower. Thinking like this is affecting our industry, and it has to stop. All this boils down to the lack of confidence in yourself and your work.
Get out of this mindset.
You are a professional. You produce quality work. You have the experience. Most of as well, you want to do the right thing by the customer. Feel positive in saying that once you have finished the job, you don't expect a call from them (for a repaint) for at least 10 years.’
Overall, more than 100 reviewed and commented on it within a two-week period. Below are three of the responses.
‘Back when I first started in business, I had no idea how to quote. I always did good work but was ‘shit scared’
to charge too much. After listening to a business podcast where it was said, ‘Charge 10% more and see what happens, and then do it again a month later’.
I did that and pretty much continued doing so over the course of a year until I was charging 3 times more than I used to. My close rate is 30%, which funny enough was 30% when I was 3x cheaper. My best close rate of about 60% was when I was over double my original pricing.
The best balance is charging enough that you seem professional, but not too much that you don’t win any work.
Using this I grew from my brother and I to currently 14 and never had more positive view of my business from customers, which we back it up.
So everyone, charge 10% more, if you lose 10% more jobs, you get the same money for 10% less work. Win-Win.’
- James Vanderhaak'A regular client of mine told me they decided to accept a cheaper quote if I couldn’t match it, which was 30% cheaper. It’s been now 6 months and the other painting mob haven’t started the job yet as they’ve been waiting. They told me yesterday they will now accept my quote. I kinda mentioned my quote says 90 days valid’.
- Anthony Sorbello‘From a third-year apprentice that will one day be doing my own jobs, thank you for saying this, it’s just what I needed to hear. As you’re learning you hear a lot of opinions from people of what you should and should not quote and it can become very confusing. Finding the right balance seems difficult but as you said, it all comes down to knowledge and confidence so cheers.’
The jobs you shouldn’t be interested in are the customers more concerned on the cost. Don’t worry if your acceptance rate falls slightly as you will make up for it in the extra cost you charge.
So! Are you lacking confidence and afraid to increase your price? If the answer is ‘Yes’, I guarantee you won’t get far in business.
Do the industry and yourself a favour and be proud of your worth.
(Thankyou James, Anthony and Maggie for allowing me to include your thoughts on the subject. It is much appreciated).
Jim Baker www.mytools4business.com
Everyone has the right to a workplace that is safe and free from sexual harassment and in addition to protections offered under other Australian laws, from 6 March 2023, The Fair Work Act has been amended to ban sexual harassment in connection with work and the workplace. The changes cover employees, contractors, work experience students and volunteers; future workers; and people conducting a business. A person or company can be liable for sexual harassment conducted by an employee or agent in connection with work, and applies unless the person or company can prove that they took all reasonable steps to prevent the sexual harassment.
There are several things as business owners that you can do to prevent sexual harassment. These include:
• Ensuring you have adequate policies and processes in place to educate people in the workplace or to refer to in the event that a complaint is made or issue is raised;
• Taking complaints seriously and addressing them early;
• Building and maintaining safe and secure physical and online working spaces;
• Ensuring training and support is provided to staff about the importance of preventing and reporting sexual harassment in the workplace; and
• Detailing how staff should go about raising concerns or complaints.
Should you require assistance in the area of training or policy development, or if you need to update your existing policies and procedures in relation to sexual harassment, please get in contact.
Mary Cairns HR Maximised
Gender equity continues to be a significant problem in business globally. We all know the story: the gender pay gap is a persistent issue and female-dominated industries tend to be lower paid.
Female representation in senior leadership and board positions remains low in many countries, particularly in Aotearoa New Zealand. Women comprise only 28.5% of director positions across all NZX-listed companies and just 23.7% at companies outside of the NZX’s top 50.
Change is slow despite the well-established evidence showing the merits of improving gender equity for businesses – including better firm performance –and excellent initiatives such as Mind The Gap.
But there is a way to support companies that have made the change towards greater gender equity –and encourage others to do the same: we can invest with a “gender lens”.
The aim of investing with a gender lens is not only to make a financial return but also to improve the lives of women by providing capital to those companies doing well on gender issues.
Gender lens investing goes beyond counting female representation at board level. It encompasses the number of female managers, leaders and employees as well as the existence of policies or products provided by a company to address the gender pay gap
and other inequities faced by their female employees. It also encourages investing in women-owned enterprises.
In essence, investing with a gender lens means identifying and investing in those companies that are empowering their female employees and embracing diversity. This might seem simple. But there are no investment portfolios or funds investing in companies that do right by women.
One explanation for this gap is that identifying gender-friendly companies is not easy. And this is where rating agencies have a role to play.
Over the past three decades there has been a fundamental shift towards investing for not only financial returns but also for social outcomes – so called Responsible Investing (RI).
The growth in RI has spawned an industry dedicated to defining and measuring a company’s non-financial contributions across a range of areas, specifically across the environmental, social and governance (ESG) pillars.
The rating agencies build scores by collecting data on issues within each of the ESG pillars – for instance, the environmental pillar comprises data on carbon emissions, land use and water, among other measures – and then converts this into an overall score.
Fund managers, especially those managing RI funds, use these scores to inform investment decisions. What, then, are the comparable measures for gender lens investing?
While some rating agencies have created measures to identify companies suitable for a gender lens portfolio – for example, Sustainalytics has a gender equality index – others have very little on gender at all. Some rating agencies seem to base gender equity performance on the number of women on a company’s board or its in-house policies on diversity and discrimination.
In short, there is little-to-no substantive information available to allow investing with a gender lens. And why is that?
Well, rating agency MSCI states it collects information on “financially relevant ESG risks and opportunities”. Sustainalytics requires an issue to have a “substantial impact on the economic value of a company”. These agencies require an issue to affect financial performance.
Under its “social” pillar, for example, MSCI considers water usage, arguing companies in high-water-use industries face operation disruptions, higher regulation and higher costs for water, which can reduce returns and increase risk.
The absence of data related to gender implies women-friendly policies are not viewed as affecting the performance or risk of companies.
But with a bit of a push, rating agencies can help make gender equity transparent. They have the research capability and access to company data that everyday investors do not. This can help investors make informed decisions about what to invest in.
Pressure from investors can also force companies to address equity issues. When that happens, the public metrics of company performance on gender issues become a lever around which companies can be encouraged to change.
Investors themselves may also find great personal satisfaction in being able to make gender-aware decisions if they could easily apply a gender lens when deciding where to invest.
It is time for potential investors to start demanding data be collected. Once that happens, rating agencies will send a message to companies that gender equity matters. As long as investors stay silent, progress will remain slow.
Ayesha Scott Senior Lecturer - Finance, Auckland University of Technology
Aaron Gilbert Associate Professor in Finance, Auckland University of Technology
Candice Harris Professor of Management, Auckland University of Technology
If you own a business, you know how important it is to have the right legal representation. However, legal fees can quickly add up, leaving you with an unexpected bill at the end of the month. That’s where more modern thinking, fixed fee commercial law firms come in. Here are some benefits of hiring a fixed fee commercial law firm for your business:
One of the biggest benefits of hiring a fixed fee commercial law firm is that you know exactly how much you will be paying for legal services. You don’t have to worry about hourly rates or unexpected fees – everything is included in the fixed fee.
This allows you to budget more effectively and plan for the future, without having to worry about legal fees eating into your profits.
With a fixed fee commercial law firm, you should have a clear understanding of exactly what services are
included in the fee. This makes it easier to understand the legal services you are receiving and the value they provide to your business.
You don’t have to be scared to contact your lawyer either! You can have more open and transparent communication with your legal team, as you don’t have to worry about additional fees for phone calls or emails.
When you work with a fixed fee commercial law firm, you are more likely to receive more timely and effective communication than you would from a traditional hourly rate law firm. Your legal team will be focused on providing the best possible service for the fixed fee, rather than trying to maximize their billable hours.
This means that you can expect more regular updates, better availability for questions and concerns, and a more proactive approach to legal issues.
Fixed fee commercial law firms are often more efficient in their work, as they are focused on providing high-quality legal services within the fixed fee. This can lead to faster turnaround times, more effective legal solutions, and a smoother overall process.
You can also expect more streamlined billing and invoicing, as everything set out in the scope is included in the fixed fee.
Overall, a fixed fee commercial law firm provides better value for money than a traditional hourly rate law firm. You know exactly how much you will be paying for legal services, and you can trust that your legal team is focused on providing the best possible service within that fee.
This allows you to get the legal support you need, without having to worry about unexpected bills or inflated fees.
In conclusion, hiring a fixed fee commercial law firm can provide a range of benefits for your business. From predictable costs and increased transparency, to better communication and improved efficiency, a fixed fee commercial law firm can help you get the legal support you need, without breaking the bank.
To get started, book in for a free 15-minute consultation with one of our lawyers.
Related article: Why You Need To Hire A Business Lawyer
One of the biggest challenges for trade businesses is accurately quoting jobs. Underquoting can lead to lost revenue and overquoting can deter potential customers. To quote effectively, you need to strike the right balance between pricing your services competitively and ensuring that your quotes accurately reflect the time, materials, and expertise required for the job.
f the biggest challenges for trade esses is accurately quoting jobs.
To start, it's important to have a clear understanding of your costs. This includes the cost of materials, labor, and any other expenses associated with the job. You should also factor in any overheads, such as equipment maintenance or insurance costs.
quoting can lead to lost revenue verquoting can deter potential mers. To quote effectively, you need ke the right balance between pricing ervices competitively and ensuring our quotes accurately reflect the materials, and expertise required for b.
Once you have a clear picture of your costs, it's important to consider the market and your competition. What are other trade businesses charging for similar jobs in your area? By researching your competitors and understanding the market, you can ensure that your prices are competitive and attractive to potential customers.
rt, it's important to have a clear standing of your costs. This includes ost of materials, labor, and any other nses associated with the job. You d also factor in any overheads, such uipment maintenance or insurance
Another important factor to consider when quoting jobs is the level of detail you include. A detailed quote that breaks down the costs and time required for each aspect of the job can help build trust with potential customers and demonstrate your expertise and professionalism.
"RECLAIM YOUR TIME"
You can check out our Website, where you will find a range o f resources to help you quote jobs better and win better qualified leads. We cover topics such as estimating costs, creating detailed quotes, and positioning your business as the best choice for potential customers. Or for even more value jump in our private Facebook Group where we share about all things business for all Tradies.
Imagine this: Your business sales and activities are going gang busters, but at the end of the fortnight there is no money in the bank to pay your staff. If you’ve been there you would know how stressful a situation this can be. You want to do all you can to avoid this happening again. So what’s the magic pill?
The answer is to pay attention to your cashflow needs by establishing systems and regular processes to firstly issue invoices regularly, and secondly to follow up your debtors if they fail to pay on time. You probably think that I am stating the obvious here, yet I find in my practice as an accountant that this is an area that many small business owners are neglecting and as a result their business is at risk of failing. The Australian Securities and Investment Commission have reported that 41% of companies reported business failure due to inadequate cashflow or high cash use.
Since it is a significant factor in making or breaking a business, I want to highlight a few key points about creating positive cashflow for you here.
It is vitally important that you use accounting software to suit your business needs. There are many software packages nowadays that allow you to do things like:
• Online invoicing
• Payroll information
• Notifications for urgent payments (that you owe or that are owed to you)
• Bank account synching for easier payment processes
• BAS and GST management
• Accountant collaboration
• Cash flow setup
Making regular updates of incoming and outgoing payments in your system will allow you to head off any cashflow crisis in advance.
Whether you’re selling goods or services, you’ll need to be clear about your Terms of Trade with your customers. Telling them upfront what they can expect from you helps to eliminate unintended surprises.
Issuing invoices on a regular basis and in line with your Terms of Trade is the most basic requirement to taming the cashflow beast. Your customers need that piece of paper to make their payments. Delays in issuing invoices will put you further behind in meeting your business cashflow needs.
A happy customer is a paying customer! Developing and maintaining good relations with your customers is as important to your business success as giving your customers a variety of payment options, eg cash or cheque, credit card, bank transfer, etc. The more options they have, the more likely it is they’ll pay in time.
If you have customers that have not paid their invoices in time, be sure to send reminders to them about when payments are due. Remind them of how much it’ll be and of any additional costs they could incur if they’re late with their payment. At my company AD Hamilton & Associates we use a series of standard debt collection letters to follow up our outstanding client accounts according to a preset schedule.
When all other efforts have failed to get your customer to pay their outstanding invoice, you can also use professional debt collectors as a last resort.
Debt collectors work on behalf of companies to contact individuals or other businesses that have fallen behind on payments to enquire about why said debts have occurred. Debt collectors will aim to resolve the outstanding debt over-the-phone and will only visit an individual or business at their physical location if they cannot reach them by any other means.
So you see, there is nothing “magic” about this approach to keeping on top of your accounts. It is all about establishing effective financial administration systems to keep the wolf from your business doors.
If you would like a complete system to manage your debtors, please visit our website at www.straighttalkat.com.au, and then go to the Resource Centre, where you can access our FREE eBook “Company Finances and Debt Collection”.
Copyright © 2023 Robert Bauman.
We all remember that one (or if you’re lucky more than one) boss that really made a difference to our working life, sometimes for good reasons and sometimes not so good…but let’s stay focused on the positives!
Bosses can play a huge role in how we feel about or work and workplace. If we feel supported, challenged, engaged and understood we enjoy our work more and are more productive. If on the other hand we don’t have a positive relationship with the person or people we report to, our working life can be less engaging and more challenging.
Let’s not forget though that bosses are people too! They don’t always get it right and they don’t know everything – they can’t be everything to everyone. However, some of the things that great bosses do are:
• Provide growth opportunities
• Challenge and stretch us
• Listen and invite feedback
• Lead by example
• Open up new career pathways
• Let us know we matter
• Acknowledge when they do something wrong
• Recognise and reward us
• Forgive our mistakes
• Hold us to account
As people leaders and managers we need to make sure we are creating safe and positive workspaces for out teams. Strong employee engagement, connectedness and team cohesion leads to increased productivity and improved retention. Don’t forget to take the time to reflect on your time as a boss and some of the great things you’ve done for your team members.
Equally, look ahead to the type of team and business you want in the future and make sure you are doing what you can as a boss to support your people to deliver your vision. Be a memorable boss!
For those of us who find ourselves constantly busy and doing, it’s often hard to imagine a more effortless life.
Life is striving, pushing to make things happen, trying to catch up, overcoming inertia, trying to stay on top of things. An approach called “non-effort” might seem a bit nonsensical.
But if this is you, notice how tense you are most of the day. Your jaw might be sore from clenching, your torso is tight, you are tired from so many activities, everything might seem like a struggle or marathon.
What would it be like if life were more effortless, more relaxed, more trusting, more surrendered?
Let’s explore this, and see what might be possible.
To start with, let me tell you who this article is not for … it’s not meant for people who could use a little extra effort. If you find yourself relaxed and feeling spaciousness in your life but feeling that you can’t be arsed to take on hard things … this isn’t what you need. You could likely use a little more effort into things, which would require a different approach. Finding the approach that’s right for you is about putting in “right effort” — not too much, not too little.
It’s hard to describe what non-effort is, because it’s an absence. That’s like trying to describe emptiness — its definition is about what’s not there.
So let’s take a couple examples of what non-effort might look like …
Meditation: Effortful meditation is putting a lot of energy into keeping your focus on one spot, getting frustrated with yourself when you wander from that, sweating bullets as you try to do it right. Non-effort meditation is sitting in a relaxed way, paying atten-
tion to what’s happening in the moment, noticing when your attention wanders to thoughts, noticing the thoughts for a moment with the curiosity of watching a cloud float by, but then returning easily to the present moment. It’s not zero effort, but it’s much more effortless.
Writing: Non-effort is letting yourself take a walk and notice what comes up for you as something to write about, and trusting that. Then sitting in a quiet space without distractions, and letting your words bubble up on that topic. Sometimes nothing comes, so you sit still for a moment and breath, until something comes. Then you let it flow from your fingertips. It’s not zero effort, but it’s not super tensed with effort.
Projects: You invite others to work on the project, set up the structure, and then show up together. It can be like play. Then you set up something to do between meetings, and another meeting in the near future. Each step along the way, you can bring play and creativity. You make effortless decisions by choosing from the heart and trusting yourself. The project starts to grow like a joyfully tended garden.
These are not how non-effort has to look. They’re examples of how it could look. In truth, it looks however it looks when you practice, even including some effort.
Non-effort isn’t just about making things easier for yourself- though that is a huge benefit. Things become more relaxed, more effortless, less of a struggle. But it’s about more than that.
Something different emerges when you relax into non-effort. Not only a different kind of result, but a different kind of wisdom.
In the meditation example above… in the first, effortful model, you might actually get much better at singlepointed focus, with a lot of effort. But in the second, non-effort model, you gain access to a trustful part of yourself that relates to the world in a different way.
What if we began to cultivate that kind of relationship with life, by relaxing a bit, pushing less, and reclaiming our spot in the flow of life?
If you’re curious about this approach, or see potential for yourself … you might wonder how to practice this. Great! I got you. :)
The first step is to notice when you’re efforting. This isn’t necessarily bad or wrong, but you might just notice how much effort, tenseness, pushing you’re experiencing. What fear is driving this? Could you just be with the experience of the fear?
Next, pause, breathe for a moment, and relax your body. Let yourself open in the moment, to whatever is there: your emotions, your fears that you’re behind, your thoughts, your wanting to get this done and over with, the birds chirping in the distance.
Then see what might emerge from the place of noneffort. When you’re relaxed, breathing deeper, still … trust that something will emerge. An idea, some clarity, a choosing from the heart, something you’re being called towards.
Then trust that. Let it emerge and unfold. You might take action from there, but let it be action from a relaxed but devoted place.
It will take practice. And let that practice be noneffortful — simply relax and let yourself flow into it again, and again.
Most entrepreneurs find a time in their business when they need to access financing. It may be in the early stages of their business, when start-up costs for offices, equipment and employees must be covered. Or it may be later on, when they have to relocate, purchase more inventory or equipment, or market their business more aggressively.
Financing a business can be scary, but there are many options for entrepreneurs to consider. They each have different advantages and disadvantages, but chances are there’s a financing option that will work well.
Here are three options for financing your small business.
Business owners typically think of small business loans that are offered by banks, and financial institutions do offer such loans. Banks may be more conservative
with their small business loan offers, however. It can be difficult to secure a bank loan if you have no credit history or collateral to back the loan.
There are other ways to obtain small business loans. Many governments offer small business financing programs, which can be used for a variety of entrepreneurial expenses. Look into your government’s financing programs to determine if you can obtain money for the expenses you face. Look closely though, not all expenses are necessarily included.
Less traditional small business loan providers can also be found. Thanks to the Internet, there are even ways to obtain small business loans online, through lending companies. It may be easier to obtain a small business loan through such companies, but they may come with an important disadvantage: high interest rates.
Before you agree to any loan, no matter who offers it, make sure you understand all the terms and conditions.
Angel investors are people who invest their own money into start-up businesses with the expectation that they receive a return if the business succeeds. They are often already successful at investing and could inject experience and wisdom into your business. They also won’t require a loan payment, which can affect your cash flow.
They may take part ownership of your company and tend to invest in businesses where they can receive a high return. This means that you should be thinking about your business becoming massive venture in the future, not staying small. You should also be okay with accepting input about your business from someone else.
If you have the money saved or the motivation to work extra hard to make the money you need, and the above options don’t appeal to you, you can always finance your business yourself. The advantage is that you won’t be paying interest rates, you won’t lose ownership of your business and you won’t owe any money. You also won’t feel that you have to give anyone else a say in how you run your company.
The disadvantage is that you may not be able to grow as quickly as you want, you’ll be dipping into your savings, and you may wind up working very long hours to make up the money.
Most small business require an influx of cash in the early stages so the owner can cover the start up costs and pay bills until regular revenue rolls in. The type of funding you access can depend heavily on your financial situation, your business goals, and your willingness to give up a portion of your company’s ownership.
If you are unsure if this is relevant for your situation or would like to have a 15min consultation with Sandra, book HERE.
Sandra Pricewww.tradiebookkeepingsolutions.com.au
Organisations have become more accountable to their customers, shareholders, and employees.
Increased safety improves the bottom line, and the links between a safe working environment and enhanced productivity are proven.
Safer workplaces result in better processes, because it sets the standard for greater efficiency and increased ingenuity all ‘round.
Above all, it saves lives. Workplace safety increases productivity, makes organisations accountable, and protects the entire team.
As processes become faster, deadlines get tighter, and customers demand greater efficiency, the worksite has become a hectic hive of activity.
But these increased expectations can make it all too easy to cut corners, and the safety of Aussie job sites is now more important than ever before.
SafeWork Australia recorded 194 worker fatalities in 2020 alone, with machinery operators and drivers representing the highest number of fatalities, and labourers, managers, and technicians and trades workers close behind.
That’s why SURVIVAL - a 33-year, Aussie family businessis dedicated to ensuring every worksite has the right first aid equipment on hand.
“It’s clear that worksites need to ensure they’re never caught short, because when you’re in the trades industry, the chances of accident or injury are very real,” says SURVIVAL’s CEO, Mike Tyrrell.
“And despite the latest advances in technology and an increased awareness of the associated risks, these sobering stats from
SafeWork Australia show us that even more needs to be done.
“We know that providing immediate, effective first aid to people injured on the job can reduce the severity of their injury or illness.
“And even more than that – it can save your life, or that of a mate,” adds Mike.
SURVIVAL’s Director of Marketing & IT, Jordan Green, says the company is constantly looking at ways to make first aid more accessible for people in trades and other 'hands-on' professions.
“In addition to our line of first aid products, we’ve just released the latest update to our free iFirstAid app, which features step-by-step instructions and video resources to guide people, including trade professionals, through common emergencies,” says Jordan.
“Our SURVIVALSWAP audit compliance program also ensures worksites remain stocked and compliant – without the headaches or hassle.”
For the best first aid for your workplace, visit survival.net.au
Financial decisions can make an enormous difference to the rest of your life.
As an example, the difference between having superannuation in one of the top-performing quarter of funds compared to bottom-performing quarter can mean retiring with about A$1.1 million instead of $610,000, according to calculations by the Productivity Commission.
Getting good advice can pay for itself many times over. But how do you find it?
It isn’t cheap. According to research commissioned by the Financial Planning Association of Australia (which represents financial advisers), the average cost is about $3,300 upfront, then about $4,300 a year if you sign up for ongoing advice.
It used to appear to be free. Financial advisers were paid by commissions sent their way by the makers of the products they steered their clients into and taken from the client’s funds. These commissions were not only upfront but also ongoing each year, meaning they ended up costing clients a lot.
Commissions have been banned since 2013. In 2018, the Hayne royal commission into misconduct in the financial services industry recommended the government go further and ban the payment of commis-
sions to mortgage brokers, a recommendation the government rejected, which is why mortgage brokers still don’t charge upfront.
What matters to you most? Do you care about maximising your returns no matter what, or do you value social and environmental responsibility? Are you interested in keeping risk to the absolute minimum, or are you happy to accept greater risk in pursuit of higher returns?
Your specific needs are also important. Some advisers offer guidance on a broad range of financial matters such as retirement planning, estate planning and the operation of a business. Others are more narrowly focused on managing money.
Another important consideration is the adviser’s approach to working with clients. Some adopt a more hands-on approach, providing regular updates and actively managing clients’ investments. Others may check in periodically.
Work out what you want first. This will help you narrow down options to one.
It is always good to talk to previous clients to get a sense of a adviser’s track record and approach.
The most practical way to do it is to get a referral from a friend or colleague or someone else you trust.
Otherwise, it is possible to search for registered advisers by postcode on the government’s MoneySmart financial advisers register
Only advisers with an Australian financial services (AFS) licence are able to give advice, and they are all listed on the financial advisers register.
Putting the name of the adviser into the search bar will produce a page showing
• whether the licence is current
• any disciplinary actions against the adviser
• the adviser’s employment history
• the adviser’s qualifications and training
• what the adviser is licensed to provide advice about.
Financial advisers are required to provide potential clients with a financial services guide that includes a description of the services they provide, including limits to the services provided, information about fees and charges, details of any conflicts of interest and information about the complaint resolution process.
There should be a copy on the adviser’s website, or you can ask for a copy.
Read more: How FTX Australia was able to claim it was 'ASIC-licenced'
The next step is to ask enough questions over the phone to be sure it’s worth meeting in person. Start with the questions about priorities listed in point one.
If the answers are not satisfactory there’s no point proceeding to a meeting.
If the answers are good, it’s time for an open and honest conversation, probably in person. Don’t be afraid to ask more about their experience, values and approach.
Useful questions include:
• how do you assess my specific financial needs?
• how will you manage my wealth?
• how do you approach financial planning?
Red flags include
• any answer that seems generic, one-size-fits all, not taking into account your specific needs and goals
• any explanation that is vague and unclear
• any hint of pressure to invest in a certain product or service
• any claims or promises that seem too good to be true (such as a very high return without risk).
If your meeting goes well, the adviser will put together a financial plan which will be set out in a Statement of Advice (SOA).
The statement must detail the proposed strategy, any financial products being recommended and how they meet the client’s financial objectives and the risks associated with these products, what their advice covers (and does not cover), and the associated fees.
The statement is designed to help you make an informed decision. It can also serve as a point of reference in the event of misunderstandings.
Coming up with a plan usually isn’t the end. Regular monitoring and review is the best way to achieve the best outcomes.
This is because circumstances, priorities and objectives change, as well as markets.
Generally, your adviser will recommend annual or two-yearly reviews to ensure that the plan remains aligned with changed circumstances.
If you have a more complex situation, more regular check-ins might be needed.
Ama Samarasinghe Lecturer, RMIT University
