Google Reviews FOR TRADE BUSINESSES THE VOICES OF WOMEN IN CONSTRUCTION Advocate, educate and amplify
Business Awards
The Benefits of Entering
Why you need to measure to get ahead in business Business development is always influenced by your starting point
www.aussiepaintersnetwork.com.au
From the
Editor
Hey Everyone, Welcome to the 106th Edition of the Aussie Painting Contractor Magazine. At the end of this month one of our Members will win a QT290 Airless Spray Gun. So join now to go in the draw!! Having been around for over 10 years now, just working away quietly for the industry, APN are in discussions with multiple organisations to help in increasing the benefits we offer not just for our Members, but, for the industry as a whole. Let us know what you would like us to do for you as a Painting Industry Member. APN are about giving back to the Industry, not taking from it. We have assisted many painters in finding staff, getting money from clients, HR issues, contractual issues, training business owners to better understand their business, assist with 100’s of calls for everything painting from product information to paint faults, an array of business issues that we have assisted with, all this and more without asking for 1 cent from anyone we help. We are not Government funded we just do it for you the industry because we love it!! If you need any assistance with anything contact us. We are here to help.
Till the next issue, Happy Painting!!
CONTRIBUTORS
• Amanda Bulow • Anthony Igra • Jim Baker • John Quiggin • Leo Babauta • Monroe Porter • Riccardo Welters • Richard Holden • Robert Bauman • Ruud Gerards • Sandra Price • Vanessa Petch EDITOR Nigel Gorman GRAPHIC DESIGNER
Nigel Gorman
nigel@aussiepaintersnetwork.com.au
07 3555 8010
J. Anne Delgado
Advertise with us... 1800 355 344 07 3555 8010 info@aussiepaintersnetwork.com.au www.aussiepaintingcontractor.com
Contents 06
The Delightful Overwhelm of a Pile of Undone Tasks
09
Google Reviews FOR TRADE BUSINESSES
10
Thanks for the quote, but can you do it cheaper?
22
27 30 14 16
Advocate, educate and amplify
THE VOICES OF WOMEN IN CONSTRUCTION Culture Matters!
Business Awards The Benefits of Entering
ABC’s of Estimating Boosting the Social Proof of Your Business Online
32
Insulting Payment Offers and Deeds of Release
36
Why you need to measure to get ahead in business
38 42 46 47
Why you need to measure to get ahead in business Smart Things Contractors Do Industry Idiots Important Contacts
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.
The Delightful Overwhelm of a Pile of Undone Tasks
As I came back to work after a month off, I noticed myself feeling overwhelmed by the mountain of work in front of me. I felt a ton of resistance, and stress about how much work had to be done. A perfect practice ground for me! In this article, I’m going to share how I’ve been practicing with the overwhelm with some delight.
There are two practices that have helped me: 1. One breath at a time. 2. Finding delight in the task. Let’s talk about each one.
The way that I practice with this is simple. First, I make a list of things I need to do. Possibly a long list. Making a simple list like this can really help get everything out in plain sight and let you know what you’re up against. This is where people often feel overwhelmed, so if you start to get stuck here, just move to the next part. Second, I make a short list of what I want to focus on for today. I can’t do the whole list today, so I chop it down to what I would love to accomplish for today. I try to keep this list short so I don’t get too overwhelmed and it feels doable. If it doesn’t feel doable, make it shorter!
ONE BREATH AT A TIME
Finally, I pick one task and really just focus on that. One small one, something doable that I can use to get some momentum.
When there’s a pile of undone things, it can feel overwhelming — how in the world can we tackle all of that? It can be stressful and shut us down to actually doing the work.
Then that task become my whole world. It’s the same as meditation — one breath at a time, one task at a time.
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When my mind starts to go to all the other things on the list … I simply return to that one task and give it my full focus. Often you might still feel overwhelmed, because you still have a big pile left. The way I think about it is: I have millions of breaths left to take in my life. I can’t take them all at once, nor would I want to! So I take one at a time. One breath at a time — don’t try to take them all at once. FIND DELIGHT IN THE TASK OK, so we do one at a time … the challenge is that it can still often feel like we’re just trying to get through the list, cranking through tasks, not really loving what we’re doing. What if you could find delight in the tasks? What if it could be an adventure, or a way of expressing your love for others?
As I take each task off the pile and give it my full focus … I try to find a reason why I care about this. A reason to be lit up by it. A reason to love what I’m doing, and put my full self into it. I get fired up about the task — if I’m successful at this, or if I remember (hint: I don’t always!). Then I take it on like a man in love with life. I find the joy, the dance, the music, the adventure in the task. Every task has this possibility in it. We just need to find it. What might light you up about your next task today?
Leo Babauta
a successful ‘simplicity’ blogger and author from California, the creator of top 25 Blog
ZEN HABITS
2021 August Issue | 7
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Google Reviews
FOR TRADE BUSINESSES
Trust and credibility are a form of currency in the business landscape today. With people living in a progressively digital world, the ability to position your business quickly with credibility can be the difference between a potential customer choosing you for a job over another player in your field. Given that over 82% of potential customers will check out your online presence before buying from you, gives you even more reasons why listing the number of testimonials, case studies and online reviews to build your portfolio is a worthwhile project.
Create a system around asking for a review.Suggested script can be the following: “One of the ways that we generate new business is via word of mouth and we trust that you had an experience to your satisfaction today. If you haven’t, we would love you to tell us directly where we were missing and what we could do to fix it however, if you had a great experience, we would love you to share it with the world. Here is a link, that when you get 3 minutes to spare today, we would love if you could share with others how you found your experience with our business.” You can create a simple link that can be emailed or even better create a QR code that your customers can scan with their phones which will direct them straight to the page. Thank your customers for their reviews. Create a game with your team of how many reviews, collectively, you can gain over the next 90 days.
Make it easy for your customers to give you a 5-star review when they experience a great level of service. At PROTRADE United we recommend that you use the following structure to assist you to build the number of reviews that you have. Picture this, in 6 to 12 months’ time when people Google your business name, having over fifty 5-star reviews listed will give instant credibility to your business; and the more you have the better. Keep in mind many business owners hold back from asking for a review because generally they fear the feedback that could arise. Use the following guideline moving forward. Ensure that you have a Google My Business page created. This is a free tool that Google has created that allows you to position and profile your business when your name is searched. You will usually see it show up on the right-hand side of the search engine sometimes.
The above process has helped some of our PROTRADE clients get well over one hundred 5-star reviews which allows them to close more of their inquiries at a higher margin and higher price point because of the trust and credibility that has been created through their past work. If you need any assistance in implementing this process please be in touch. ------------------------------------------------------------------Jon Mailer CEO of PROTRADE United
2021 August Issue | 9
Thanks for the quote, but can you do it cheaper? This is a normal reply to the quote, Here are some ways to handle this. First before you quote, ask the customer how many quotes they are getting, if they say 3 or more you know they are only after the cheapest quote, my advice is walk away. Explain thats not the market you work in and thank them for being honest. If they are not after the cheapest quote and you do the quote, make sure you list everything you are going to do on the job and the products you are going to use. Now hand deliver the quote, not just put it into their letter box but hand deliver it to them in person, now ask the customer if they will walk though the job with you and explain every part of the quote so they can see what they are getting for their money. Now you done that if they still ask for a cheaper price, this is a reply I have used and it works well. Ok I am sorry, its just you have such a nice house and take care of it, I just assumed you wanted the best possible job with premium products, that will look good for a long time and are fully washable.
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The only way I could possibly reduce the price if we cut back on the amount of preparation work we do and use an inferior product, It will not look as good as the premium product and is not washable, I would not want that in my house and I am surprised you would want that type of job done. Most of the time defeats the want for a cheaper quote, If they still are wanting a cheaper price remember if you do a cheap job no one wins the customer ends up with an inferior job and you end up with a bad name. When their friends say your new paint jobs looks like crap, they are NOT going to say yea I just asked for a cheap job. They are going to say yea its crap and this is the guy that did, don’t use him. -------------------------------------------------------------------
jeffpainterguy
Experienced Territory Manager with a demonstrated history of working in the Paint industry. Skilled in Negotiation, Sales, Customer Relationship Management (CRM), Team Building, and Construction.
www.jeffthepaintguy.info
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2021 August Issue | 13
Advocate, educate and amplify
THE VOICES OF WOMEN IN CONSTRUCTION When most people outside the construction industry picture what the typical workplace looks like, they generally think of a group of men in hardhats and hi-vis. The reality, however, can be very different - especially for women. Awesome Women in Construction (AWIC) was founded by Amanda Bulow after she realised many women in the industry felt as she did – professionally isolated doing the work they loved. Amanda decided to see if there was enough interest in connecting with other likeminded women, particularly among women working in the SME sector that delivers the majority of residential housing in Australia. As a result, she founded AWIC in 2017. AWIC Treasurer Kerry Bebendorf, Director, Business Advisory for Moore Australia says there are many women in the construction industry who remain invisible and isolated. She works with many tradie clients who rely on a partner to take care of the administrative side of their business. “These women try to do everything, but they have no emotional or social support,” Kerry says. “Overall, women are more likely to be social creatures and rely on having that support.” AWIC aims to give these unsung ‘sheroes’ of the industry a way to connect with other women who understand the juggling act, day-to-day challenges and the unique realities of construction as an industry. “AWIC is reaching out showing these women they are not alone. Trades need people in the office, I don’t actually know any successful tradie who isn’t backed by a capable woman,” Kerry says.
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Kerry also knows many women who have started their own trade businesses, who often have to make it work without that partner for office backup. In this scenario, new digital systems and processes become an asset, allowing women tradies to take care of invoicing, paperwork and other admin tasks from their mobile phone or tablet. She says women tradies need to also be confident in outsourcing things like book-keeping and other tasks so they can focus on the onsite work and overall building of their business.
building designer through to the opportunity to own and operate a successful trade or supplier business.
Amanda is committed to showing other women what kind of careers await them in one of the nation’s largest and most diverse industries.
“Together we will continue to advocate, educate and amplify the voices of women in construction.”
Support, advocacy and education for women in the construction industry is AWIC’s immediate focus. That includes highlighting the value of trade apprenticeships not only for school-leavers but also for older women looking to make a career shift. Amanda has seen the way a trade can open all manner of doors in the future, from careers as a project manager, estimator or
“I’m proud to see the growth of women within the construction industry, and within AWIC. They have grown in confidence, applying for jobs they may not have applied for before, they are taking a stand for what they believe in and can now hold their own in a board room.
To find out more about AWIC visit
www.awic.org.au
2021 August Issue | 15
Culture Matters! There are many definitions of culture but the one I like best was stated by a 5-year-old on an ABC program my daughter was watching. “Culture is the personality of the place you live”. This sums up culture perfectly for me. So, what’s your workplace’s personality? Is it bright and bubbly? Focused, but with flair? Serious, but still remaining sunny? Or is it a culture that causes employees to feel anxious, unhappy, and non-motivated and where there is frequent interpersonal conflict and an untrusting relationship between managers and employees? The personality and culture of your workplace really counts. It’s what sets the tone of the workplace, how employees conduct their work and their interactions with each other. It also impacts on how your customers see you. Your company’s culture is not just about marketing and your customers. It’s also about your employees. If your employees had to describe your internal workplace culture what would they say? Would it be positive? Are you game to ask? Culture drives performance. A company with a positive and healthy culture will have a workplace where employees are happy, motivated and engaged. There will be open and honest communication between its managers and employees, unproductive conflict would be resolved quickly, and processes and procedures would support and drive productivity.
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So, where do we start in improving our workplace’s culture? We’ve all heard the saying “employees don’t leave companies they leave bad managers” and it’s true. If you want to make significant changes to your workplace culture, then you need to start focusing on your management culture. Research conducted on 200 Australian businesses identified significant gaps between high and low performing businesses on their management culture in the following key areas:
Self-Motivation Being self-motivated is a key culture driver. The balance to get right is for managers to lead by example in self-motivation and getting the work done, whilst also allocating time and effort into creating an environment that motivates other people to do their work.
Good Quality Communicators Managers need to learn how to build a communication style based on openness, commitment and trust. They can do this by improving their questioning, listening, and reflecting and communication skills. If managers can improve their communication outcomes, it will lead to improved decision making and leadership performance.az
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Team Leadership A one size leadership style does not work for all. Managers need to understand their own natural leadership style and then learn to adapt it to suit those in their teams and the environment.
Business Acumen Businesses don’t make decisions; people do. Managers make decisions every day that have a financial impact on a business. Communication is again core. Communicating with the team about the constraints that impact their decision making, will result in their team being better informed and motivated to support their decisions.
Quality of Planning and Being Organised This measure is the one that managers scored the worst on. We are all guilty of being time poor but managers need to recognise the impact their lack of time management and planning as on those in their teams.
the business owner filling this performance gap, then their focus inevitability becomes daily management rather than growing or working on their business. As a starting point, a few questions to pose on the efficiency of your management team might be: 1. Do they work well as a team? 2. Does their team work well together? 3. Are they and their teams aligned to the strategic direction of the company? 4. Does each manager understand their management style? If the answers are no, then it’s time to consider taking a closer look and implementing programs to ensure your managers understand their own strengths and challenges, and that their execution style and alignment is in keeping with the company’s vision. The culture of the business depends on it. Vanessa Petch
If you would like assistance, please reach out to Vanessa from HR Maximised on 0418 190 106 or vanessa@hrmaximised.com.au
Management Effectiveness Matters If the management team doesn’t work effectively then someone must fill the performance gap. If it’s
2021 August Issue | 19
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Business Awards
The Benefits of Entering Many people do not realise the value of submitting an entry in an awards event. All too frequently business owners are so overwhelmed with the day-to-day running of their company, they don’t get a chance to look outside the box. But, from a business point of view, it makes very good sense as it comes with a range of potential advantages. Entering awards gives you a new perspective on your business and can identify your strengths and weaknesses that you would not normally recognise. The process can also show you the areas required for improvement when comparing yourself to the competition. The application process in most cases though can be time consuming and quite challenging. If you find you can’t answer the questions sufficiently or have inadequate support documents, use it as inspiration to do better in your next submission. You will find you’ll be more prepared and entering will be less stressful. The judging process meanwhile, can be thought of as a benchmarking process. Judges will consider your
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application in comparison with other companies and depending on the nature of the awards that you have entered, the companies are likely to be of a similar size and in a similar field. What they look for in a submission is innovation, growth, diversity, strategic thinking and the focus you have on your customers. Winning of course also brings its own advantages, as reputable business awards can generate significant amounts of publicity which can have a direct and dramatic impact on your business. Just as importantly, winning a business award can be a powerful way of differentiating you from your competitors. It can improve your brand awareness, boost employee motivation and provide a real competitive advantage when seeking or retaining customers. You may even find it easier to attract high quality staff as a result of your success. While winning is your main goal, there are still benefits of entering business awards even if your company just makes the finalist round. You should be proud of this achievement and promote it to the fullest.
THE BENEFITS Marketing & PR
Awards celebrate hard work and success and it is a great opportunity to put your business in the spotlight and have your achievements acknowledged. If you include them in your promotional flyers, website and stationary material, customers will be impressed that you have been recognised by an independent panel of respected business leaders. It will give your company an increased creditability when speaking to new customers and provide that competitive advantage over your rivals. For example, if a customer receives three quotes and are all offering the same as yourself, they will inevitably choose you over another company because of the recognition you have been rewarded for. Being associated with a business awards event can provide great PR opportunities during the pre-event promotion and after the event. Make sure you contact your local newspaper about it as they love this type of news item.
Building team morale
Succeeding in business requires a team effort and picking up an award gives recognition to your staffs’ contribution to the businesses success. This is invaluable in terms of boosting morale and making employees feel proud of the company and their contribution. Involving your staff with the submission will create a positive work environment and help them to see ways to improve themselves and feel positive. If you are shortlisted, taking your team to the awards ceremony is also a great way of celebrating your achievements as a team, and will also provide excellent networking opportunities.
Get to meet people that can influence you
You can meet some incredible people at business awards. Government officials, heads of major corporations, celebrities and of course, people like yourself. Functions like these are always in a relaxed atmosphere where you can network and swap ideas.
Take your best clients or supporters of your business (bank manager maybe!)
A chance to reflect on your business
The application process for entering business awards represents a great opportunity to review and take stock of your business. Applying for an award is also a good opportunity to practice your selling skills as you will need to make sure you stand out from the competition in your specific category. As well as reviewing the past and present activities, an application process will also give you the opportunity to think about the future direction of the business and set goals to be achieved. You should also use the entry process as a business health check. By forcing you to compare yourself to your competitors, it will show how your business is going and help you to identify the areas where you need to develop a better way of doing things.
This is where you can invite the people that have helped your business through the previous year (or years). Treating them out to a fancy function with dinner, wine and entertainment, will be highly appreciated and will stay in their minds and talked about long after the event. They will see the effort you have put into your business and will value your success in being a Finalist, or hopefully a Winner and continue to support you in the future.
Write it off as a tax deduction
I’ve been entering different Awards since 2002 with the ‘Awards Presentation Nights’ being held in various cities around Australia, even New Zealand. The best thing is I can claim all the expenses through my business, so my wife and I make sure we stay at nice hotels. It’s also a great excuse to get away for a few days and wind down from the hassle of work (it also gives her an excuse to buy a new outfit).
2021 August Issue | 23
Awards that I have participated in, which may I say looks very impressive on my website and on my LinkedIn profile are: • Dulux Accredited Painter of the Year Finalist 2004 • Dulux Accredited Painter of the Year Winner (Qld) 2006 • Optus MyBusiness Award Finalist 2008 • Telstra Business Award Finalist (Qld) 2011 • Dulux Accredited Business Professional Finalist 2011
Deciding which business award to enter is a matter of weighing up the time an entry will take against the potential gain in terms of how reputable the organisation running the award program is and how much publicity it will generate for your business. Look at the websites for local councils, chambers of commerce, construction and trade awards and the large companies that sponsor these events like Telstra, Optus, Master Painters Association and some of the financial institutes. Entering a small-business award usually involves nominating yourself on the awarding body’s website, so don’t be afraid to do so. Most nominations are usually towards the beginning of the year, so start putting something together about your business in readiness of the submission process. If you need any advice, just drop me a line.
• Construction Apprenticeship Mentoring Scheme - Mentor 2014
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• Construction Skills Queensland Professional of the Year - Finalist 2014
Jim Baker
• Optus MyBusiness Award Finalist 2016
The portable, inexpensive method to prevent paint waste-water polluting the environment.
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50 YEARS A HOUSE PAINTER This book contains 36 topics of industry related knowledge and information which will help you in the way you operate your business.Topics under headings of; Business Checklist, Staff, Marketing and Sourcing Customers, Professional Behavior, Successful Operation and Looking Ahead.Highly recommended by Jason Osborn, Dulux Business Development Executive as; ‘A very easy interesting read, that combines industry facts and great topics.’
www.mytools4business.com2021 August Issue | 25
Come and share your painting ideas! facebook.com/groups/aussiepaintersnetwork/
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ABC’s of Estimating It’s no secret that the residential construction industry has seen a shortage of skillsets with production estimators for many years. Now is the time to reduce the skills gap in your business! The ABC’s of Production Estimating will create foundational skills for your business in less than six weeks.
The 9 key outcomes of this program include: 1. Ability to interpret and complete general material take-off 2. Document analysis - understanding documents and their role 3. Technology platforms - how they complement estimating processes 4. Bills of Quantity - comprehension of itemised costings for project material and labour 5. Understanding industry terminology 6. The Construction Process - what comes first? 7. Introduction to frameworks to improve problem solving skills
8. Improving the ability to ask powerful questions and enhance communication 9. Building a foundation with industry partners, kickstarting industry relationships This program will support, advocate and educate future production estimators and secure the future growth of the construction industry. Amanda Bulow, founder of Amanda Bulow Consulting is a well-connected construction industry professional with over 20 years of experience. Her extensive knowledge in procurement, sales & production estimating has assisted many companies to streamline their business and find efficiencies. For more information on the ABC’s of Production Estimating program which will start on Wednesday 25th August visit www.abulowconsulting.com.au or connect with Amanda via LinkedIn Amanda Bulow | LinkedIn
2021 August Issue | 27
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Are you running a Painting Business? We can assist you in growing your business with apprentices! paintingapprenticeships.com.au Painting Apprenticeships brings Apprentices together with Painting Business Owners.
Boosting the Social Proof of Your Business Online You won’t build a loyal customer base if you can’t earn your visitors’ trust, which is why companies value social proof so highly. But proving your online business’s value takes a unique skill set; one you can start learning by reading the article below.
Befriend Experts Experts love teaching others what they know. While they do make money from their knowledge, they also offer discounts to friends. If an expert loves you enough, you might even convince them to talk with you, free of charge. Experts are people, and make friends like anyone else. Since you are looking to build social proof online, joining an expert’s Internet community is the first step toward meeting them. Just remember that other people are thinking the same thing and experts have busy lives; an entitled attitude will only sabotage potential friendships. Personal relationships work differently online. It is easy to create dozens of friendships when you are talking to people in chat rooms and message boards. Even if an expert only spends a little time sending links and messages, thank them and treasure the wisdom they share.
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Create Helpful Content It is easy to feel overwhelmed when you start learning about social proof. You will find advice from different sources, and sorting through it isn’t always easy. But one fact is still valid: people value great content. Online businesses and personalities focus all their effort on increasing traffic and not building content their visitors will value. While they can boost their traffic and income, their gains won’t last. Instead, learn about your niche and give the people what they want; when you focus on their needs, they will naturally meet yours. An engaged audience will linger longer, click more ads, and buy more products. Get Reviews Reviews are the most obvious form of social proof. Not only do visitors look for them to gauge a product’s value, including websites, but they also value sharing their opinion. For example, an online store that only showcases product descriptions will have weaker social proof than one that lets customers leave reviews, even if no one has yet.
Reviews come in many forms. Lists count, and so do like and dislikes on media websites. While you can ask others for reviews, this will annoy some people; making it easy to find and review your site is usually a better option. Your social proof will grow as your site gets more traffic, and reviews. Consumers know how to spot fake opinions, even if they are only consuming the latest adventure on your travel blog. Nail Your Bio
content and include a link to your bio along with your author credits. If your site is about you, feel free to transform your bio into a landing page. Studying your niche and the popular websites within it will help you decide where your bio fits best. Social proof is a resource, and it is every company’s job to nourish and protect it. How can your online business do it better?
Visitors don’t trust unknown authors. While adding a name to your posts can help, they want to see a face. While a real photo showcasing your facial features works best, drawings also work for some niches. While your bio should promote you and your expertise, too much self-promotion will advertise that you are an amateur. Finding the right balance is challenging, but you will naturally help yourself if you create an honest bio. Just like a hiring manager reading a résumé, your visitors will pick up on your experience. Your bio’s placement also matters. If you are running an informational website, focus on your
Sandra Price
www.tradiebookkeepingsolutions.com.au Facebook : Tradie Bookkeeping Solutions
Insulting Payment Offers and Deeds of Release I wish I had $20 bucks for every client that called me up telling me he had just received a Deed of Release from the builder or developer with a curt request that he sign it and return it. What is a Deed of Release? Basically it is a legal agreement where both parties agree to release themselves from further performance of their contract for an agreed payment. The most typical situation we have seen is a subcontractor who is owed (let’s say) $350 000 by the builder and one day receives a Deed of Release stating that the Builder will pay $50 000 in exchange for the subcontractor ending the contract and making no further claims. Often a conversation follows where the Builder says that the subbie can either take the fifty grand now or spend months fighting and get nothing. Many contractors feel fear and panic. This is a threatening ‘take-it-or-leave-it’ deal with no warning. The purpose of this article is to demystify this pathetic practice and let you in on what is really going on. When you get a Deed of Release from your client that comes without warning and with a ridiculous and threatening offer in it, this tells you three things: a) your client is having financial difficulties, and b) your client has probably waaaaaaaay under-quoted the job and is trying to claw back some profit at your expense, and c) your client is fearful of how you might react. Think about that for a second….. in terms of relative power your client is the weak one, not you. So weak that he has to resort to this kind of pathetic practice in order to make a profit (which means that he’s also incompetent). I have run many claims for my clients where the debtor has threatened to sue for millions, start multiple court
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actions, Tribunal hearings, cross-claims, destruction, chaos, bla, bla, bla. The more of that talk you hear, the weaker your client actually is. So with the above in mind, what do you do when you get a Deed of Release? It’s a two step process: 1) Tell your client what he can do with it, 2) Tell him where he can shove it. Low-ball Deeds are an insult to the value of your work, and your client thinks that he can simply walk away because your invoices don’t suit him anymore. Imagine if the roles were reversed? What if you decided one day that you could not afford to continue on a project…. Could you just send your client a Deed of Release demanding that he agree to pay you 75% of what you are owed so you can just walk away? I don’t think so! The reason I am suggesting you reject these Deeds is that they don’t offer you any benefit except to pay a small part of what you are owed. Think about it. For the benefit of getting just a small amount of cash that will not make much difference to your debtors, you are walking away from your entitlement to the true value of ALL the work you have done. That is a bad deal and if some one wants to try that on you it is better to fight like hell for what is yours. There is no best pathway to dealing with Deeds of Release or low-ball settlement offers. But the best first step is to get some accountability. That is, get your client to explain himself. Not only does it make life uncomfortable for him but it gets you valuable information as to how your client will try to justify the move if it went to court.
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2021 August Issue | 33
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Write back to your client asking some of the following as appropriate to your circumstances: The valuation of my work is (let’s say) $86 000.00. How did you come to your valuation of (for example) $25 000.00? Can you please itemize my work and value each item so that I can see how your settlement figure was arrived at? Have you used any of the contract’s provisions to assist you in valuing our work? If so, which ones? Why was I not consulted regarding this Deed? On what basis did you think I would settle for such a low amount when the value of my work is far higher? At what point in the project did you decide that you did not wish to complete our contract? Clearly you are offering this Deed/Offer because you have been unable to complete this project profitably; is this because you under-quoted or because you did not plan it properly? Your offer is only for the work. What are you offering my company for the loss of profit due to not completing the balance of the work? How many other contractors on the project have you sent a Deed to? Please send me their details. Is your company going into administration? If so, who is the administrator and what are their contact details?
Now use the ones that are relevant to your project. Now you are of course thinking “There’s no way they’ll answer questions like that!” And you’d be right. What we are after is what they do come back to you with. They may answer some of them but may otherwise give away good information will they are busy abusing you for asking. That’s what we want! It will yield invaluable information about your client’s thinking. You can then use this to get your money… which brings me to my final point. Refuse the offer! And take some form of action to get your money: Either by adjudication or statement of claim. These Deeds are attempts to scare you off and if you come out fighting you stand a much better chance of getting what’s owed or else a much higher payout. Finally you must regard the above as a general strategy that we have found works. It may not be appropriate for your situation or the contract you are working under. Get professional advice when dealing with a Deed of Release or a final offer. There may be repercussions that are not immediately obvious. The most important thing is not to just give in because you are desperate for money. Most of the time it is not enough to make a difference to your debtors, and you are throwing away the value of your work. --------------------------------------------------------------------
Anthony Igra
1300 669 075 www.contractorsdebtrecovery.com.au
2021 August Issue | 35
Why you need to measure to get ahead in business To build a house, you need a plan that shows dimensions, layout features and all kind of other information required to construct a strong building. After all, it needs to endure the weather conditions as well as get certified by building inspectors. The same can be said for building a business. Being reactive and just working to meet compliance deadlines rarely increases the bottom line.
Don’t be driven by BAS and Tax Return deadlines “Are you being pro-active in your business management or are you driven by BAS and Tax Return deadlines?” That’s something I constantly discuss with clients when we initially review just how they can best increase their company profits. While you’re preparing your financials for your next BAS or yearly income tax return, you have actually got the ideal possibility to look at the big picture, make some estimates and also a prepare for business development that helps you. The fact is, when you harness compliance deadlines as momentum to shift onward and plan for the following quarter, for the next financial year, established some small as well as big company goals, you can produce an action plan to make it happen, that’s where the actual magic of being pro-active is. This is especially powerful when you do it at the beginning of a financial year, when you can look back on the results from last year to give you a benchmark.
Why a business plan can work wonders When no one is pushing you to deal with the tough tasks of handling your business management, as
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a small business owner you can quickly become complacent. You need to consider your important numbers frequently as well as face up to whatever tale these numbers are telling you about your earnings. Obviously, the course to business development is always influenced by your starting point, and it can be different for each company. As accountants we’re right here not just to help you establish the standards and then recognize where the levers are to make your business much more rewarding. We can likewise help you to develop a strategy to which you can hold yourself responsible. If you want to move your business forward, become a lot more lucrative and also expand your consumer base, you’ll constantly require to be one step ahead, as well as not just preparing your timetable for the week in advance. You require a strategy that describes your goals for the future and exactly how you can get there. A business development strategy can be as comprehensive or simple as you want or need it to be. For example, if you need an business plan to increase finance, you’ll require to have solid Profit & Loss statements and a business plan that meet the requirements of a bank or financial institution. On the other hand, if you intend to develop your business month by month, quarter by quarter, and year by year, it’s a good idea to produce a company plan that establishes goals for these time frames. The most vital point is to print it and put it up somewhere where you can see it every day. The best business plans are brief, to the point and that reveal your goals and the actions you need to take to achieve them.
Having an business development strategy that you breathe every day as well as live is more effective than any type of sophisticated record that you put on a rack and also never ever take a look at. I constantly recommend to try and also condense any kind of plan into portions that you can place on 1 page. You might have a page for your general goals laid out over the year, and afterwards produce an action plan or functional plan that lays out each action you require to take during these time frames to accomplish each goal. Your operational plan needs to cover the tasks required to achieve the objective, including what other or financial sources you’ll need, how you can determine that you get on track, like KPIs and the like, as well as what kind of marketing and advertising you’ll need to embark on to expand your consumer base etc.
Measure , Monitor and Evaluate
Document your crucial numbers every year, every month and every quarter, check that you are achieving your KPI’s as well as correct your course if you have actually lost track. When the numbers you are monitoring are changing in the wrong direction, then you tweak your strategy, too, to suit the altered scenarios. You can do all this, due to the fact that you’ve worked out a strategy that is your roadmap, your business plan. If you really did not have a strategy, you would not know where you’re going, as well as you would not know that you’ve left the path to achieve your objectives. If you need any support with your business planning, call my office on 3399 8844 and we will be happy to help you with a FREE Business Planning Session. You can also visit our website at www.straighttalkat.com. au and complete your details on our Home page to request an appointment.
And here you come full circle once again. Like in the building game, where you need to measure before you make the decision where to cut. To measure that you’re on track with attaining your company goals, you go right back to your company financials and your timely bookkeeping.
2021 August Issue | 37
Why most economists continue
TO BACK LOCKDOWNS With the prospect of a lengthier lockdown looming over Sydney, the idea of “living with the virus” has resurfaced. NSW’s health minister, Brad Hazzard, raised the prospect of abandoning the lockdown and accepting that “the virus has a life which will continue in the community” at a press conference on Wednesday. NSW Premier Gladys Berejiklian and Prime Minister Scott Morrison have rejected that idea, but many voices in the media have been pushing it. As with pandemic policy in general, much of the discussion of the Sydney outbreak has framed the problem as one pitting health against the economy. In this framing, epidemiologists and public health experts are seen as the advocates of saving lives, while economists are seen as the advocates of saving money. Read more: Open letter from 265 Australian economists: don’t sacrifice health for ‘the economy’ In reality, the great majority of Australian economists support policies of aggressive suppression or elimination — that is, keeping case numbers close to zero, and clamping down when an outbreak threatens.
BROAD AGREEMENT
As with epidemiologists, that broad agreement encompasses a range of views about the appropriate response in any particular case.
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Some economists, and some epidemiologists, supported the NSW government’s decision to delay a lockdown, while others wanted earlier action. But only a minority in either group support the idea of ending restrictions and waiting for herd immunity to protect us. Unfortunately, as we have already seen in the case of climate change, many media outlets thrive on conflict. It is more interesting to present a debate between a pro-lockdown public health expert and an anti-lockdown economist than to present a nuanced discussion of the best way to suppress the virus, taking into account insights from a range of disciplines.
UNDERSTANDING EXPONENTIAL GROWTH
Why have economists endorsed the policy of suppression with more enthusiasm than, for example, political and business leaders? First, because economists understand the concept of exponential growth. While economics’ stress on growth is rightly contested, its centrality to economic concepts means related concepts from epidemiology, such as the reproduction number (R), are immediately comprehensible to us.
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Once you understand how rapidly exponential processes can grow, the idea that lockdowns are “disproportionate responses to a handful of cases”, as The Australian has editorialised, loses its superficial attraction. A clear majority of economists surveyed by The Conversation in May 2020 (after the end of the national lockdown) supported strong social distancing measures to keep R below 1. Most of those who disagreed felt alternative measures could hold R below 1 at lower costs. Only a handful supported a “let it rip” strategy.
THE CONVERSATION, CC BY-ND
Read more: Economists back social distancing 34-9 in new Economic Society-Conversation survey Considering counterfactuals Second, economists understand counterfactuals — that is, the need to specify what would have happened under an alternative policy. It is easy to make the point that lockdowns are both economically costly and psychologically traumatic. But the counterfactual is not a situation where the economy is unaffected and everyone is happy. Living in fear of the virus, and watching family and friends suffer and die from it, is psychologically traumatic. As regards the economic costs, the steps people take to reduce their exposure to risk are themselves costly, as is the need to allocate medical resources to treat the sick.
WEIGHING TRADE-OFFS
Third, and most importantly, economists understand about trade-offs. There are always trade-offs within the space of policy choices. Should we lock down at the first sign of an outbreak and risk unnecessary costs, or wait until later and risk a longer and harsher lockdown? Should we incur the costs of purpose-built quarantine facilities, or accept the greater risk of leakage from hotel quarantine? Economists also understand that not all choices involve trade-offs. Sometimes one policy is unequivocally worse than another, on all relevant criteria.
While there are always trade-offs somewhere in policy space, it’s often the case that, of the live options, one dominates the other in all important dimensions. Read more: Vital Signs: the cost of lockdowns is nowhere near as big as we have been told On the central question of suppression versus herd immunity, there was no trade-off, as countries like Sweden found out. The evidence points strongly to one conclusion. Allowing the virus to spread uncontrolled would have done more economic damage than temporary lockdowns, as well as causing thousands of avoidable deaths and tens of thousands to suffer severe, and possibly long-lasting, illness.
RISK AND UNCERTAINTY
Finally, economists understand the complexities of risk and uncertainty. One implication is the benefit of diversification by “backing every horse in the race”, as opposed to “putting all your eggs in one basket”, or even a few. The federal government’s vaccine policy relied heavily on a limited range of options — primarily AstraZeneca, and the University of Queensland’s vaccine venture — both of which ran into problems. If we had followed the logic of diversification, we would be much better placed than we are now. Economics doesn’t have all the answers. No one knows that better than economists. Dealing with the pandemic requires insights from a range of disciplines. But lazy stereotypes, pitting one profession against another, don’t help. -------------------------------------------------------------------John Quiggin Professor, School of Economics, The University of Queensland Richard Holden Professor of Economics, UNSW
2021 August Issue | 41
SMART THINGS
Contractors Do A few weeks ago, I wrote an article about what dumb things contractors do so I find it only fair to write an article about smart things contractors do. Know the minimum age in your area. I am not talking about the federal or some other government wage regulation. I am talking about what is the minimum wage required to hire a worker who will show up every day, has a driver’s license and some work ethic. The current minimum wage is $7.25 an hour but very few if any people will show up for that. For most areas of the country, it tends to take at least double that amount to hire entry level people. So how do you determine pay? Research what fast food, warehouses and other physical labor pays. If you pay below a living wage, employees cannot afford to buy a new tire, pay a ticket and other things required to make it to work. Websites can give you this number for your area. For your local wage survey, simply ask or call. Everyone is hiring. Entry level wages have dramatically increased and advertising below that threshold will yield no applicants. Google your business name on a computer other than one in your office. See how your search comes up. Make sure whatever the name on your truck matches what the search engine finds. Everything is going digital, make sure you are up to date.
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Hire someone to help you as the formats constantly change. Hire a computer geek. No disrespect intended. I’m an old guy who is easily frustrated with technology. There are lots of young people who can help you. Some are students, some are friends’ kids, some have small businesses. Thirty years ago, I had a broken computer in my office. I was going to throw it away, but my secretaries’ 12-year-old son was there, and he wanted to take a shot at fixing it. When I came back from lunch it was in 50 pieces laying on the office floor but two hours later it was fixed. He did my computer work part time for years. Hire someone who can help you. Have pay integrity. This could be explained in a long rambling article but here is the simplest way to evaluate your pay system. List employees in the order of who you would layoff first, second, etc. Next write each person’s pay by his or her name. See if the two lists match. This is a good way to evaluate someone who has learned rapidly and deserves a raise. Do not let the only way your up-and-coming employees can get a raise is to quit. You can also evaluate that list by grading who has the ability to become a foreman or lead person. Study the list as a whole and constantly look to improve it.
Have realistic family employment policies. Hiring too many family members or putting them in jobs where there is a poor fit for their skills is not fair to the family member or company. Family communication styles can carry over into family business communication. Family communication tends to be emotional with some families being hot and heavy communicators and others who simply ignore things. Do your best to manage family members like you manage anyone else. Try to avoid mixing family and business discussions at family gatherings. Do your best to separate family and business. Build around key people. Contractor startups are always challenged with hiring as there is little or no employment reputation. It takes time to develop an organization. Do your best to grow or hire several key people you can build around. If you feel like there is no one in your organization you can build around, think hard about why that is. Are you hiring the wrong people? Do good people leave? You are only as good as the people around you. Know your numbers. Make sure your financials are in a format you understand. Also try to record expenses with the same logic used for estimating. For example, if a superintendent is estimated as part of overhead the cost should be recorded as overhead.
If you add field hours to the estimate to cover superintendent costs, the expense should be recorded as part of field labor. Job cost each and every job. Track closing ratios by sales or estimator, foreman, project manager and type of work. Know where you make and lose money. It’s difficult to argue with math. Using math as a management guideline takes much of the emotion out of management. Business is pretty simple. You have to take in more than you spend, or you will go out of business. Build your brand. Branding is built thru repetition. Use the same-colored trucks, job signs, stationary, company attire, etc. throughout your organization. Remember, you want people to see your name and then search you on the web and call. Few people actually write down a phone number. Residential contractors should be visible in community events. Commercial contractors should participate in target industry functions. I hope these ideas are helpful. Stick to the basics.
Monroe Porter
is president of PROOF Management a firm that teaches seminars and runs networking groups for painting contractors.
www.proofman.com
2021 August Issue | 43
Business Management Courses FOR PAINTERS!
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LEAD KILLS Find out if the things around you are safe for humans and pets. CLICK HERE for videos on How to use the sampling kit For donations, CLICK HERE This Lead Safe World Project of The LEAD Group, aims to achieve a lead safe world by 2041
Buy your DIY- Sampling Lead Test Kit/Lab Analysis Lead Kit Lead Group’s lead Test Kit The only ones available in Australia.
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www.lead.org.au 2021 August Issue | 45
The Industry Idiots
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IMPORTANT
Contacts
Aussie Painters Network aussiepaintersnetwork.com.au
Ph. 0430 399 800
National Institute for Painting and Decorating painters.edu.au
Ph. 1300 319 790
Australian Tax Office ato.gov.au
Ph. 13 72 26 / Ph. 13 28 65
Award Rates fairwork.gov.au
Ph. 13 13 94
Fair Work Building & Construction fwbc.gov.au
Ph. 1800 003 338
Mates In Construction matesinconstruction.com.au
Ph. 1300 642 111
Workplace Health and Safety Contacts Comcare WorkSafe ACT Workplace Health and Safety QLD Victorian WorkCover Authority WorkCover NSW SafeWork SA WorkSafe WA NT WorkSafe WorkSafe Tasmania
comcare.gov.au worksafe.act.gov.au worksafe.qld.gov.au vwa.vic.gov.au workcover.nsw.gov.au safework.sa.gov.au commerce.wa.gov.au/WorkSafe/ worksafe.nt.gov.au worksafe.tas.gov.au
1300 366 979 02 6207 3000 1300 362 128 1800 136 089 13 10 50 1300 365 255 1300 307 877 1800 019 115 1300 366 322
actcancer.org cancercouncil.com.au cancercouncilnt.com.au cancerqld.org.au cancersa.org.au cancervic.org.au cancerwa.asn.au
(02) 6257 9999 (02) 9334 1900 (08) 8927 4888 (07) 3634 5100 (08) 8291 4111 (03) 9635 5000 (08) 9212 4333
Cancer Council Australia ACT NSW NT QLD SA VIC WA
2021 August Issue | 47