What you need to know about the
Queensland Building Plan Whether you’re in Qld or not!
Australian Building and Construction Commission Update 2017 Colour Trends How to protect yourself from
Cyber Attack
Consumerism vs Conscience www.aussiepaintersnetwork.com.au
EDITOR Nigel Gorman EXECUTIVE EDITOR Caroline Miall CONTRIBUTORS • Caroline Miall • Christine Delongte • Jim Baker • Leo Babauta
From the Editor Hi Everyone, What a massive start for the year. Most painters we are talking to have all got work on the books with some busy well into March. From all reports there is a lack of good tradesman around as well. If you are needing staff, consider putting on an apprentice so you can train them in your systems and how you want things done. In the next couple of days, the Queensland Government start their consultation process into the QBCC reforms. There are some really great ideas and initiatives being proposed, as well as some major changes that will turn the painting industry upside down. We are dedicated to getting the best possible outcomes for our industry. Over the next couple of months, we will continue to ask for feedback and consult with industry stakeholders. We hope all relevant parties get involved and take up the challenges ahead to protect professional painters. We have uncovered some interesting information in our investigations; some of which you will read about in this edition. We will continue to share as we find more.
• Robert Bauman
Exciting news with the Painters Training Wheels; we now have three new Sponsors helping us to provide better, more thorough and more convenient training to both local and regional apprentices. Dulux, Rokset and Graco. It’s great to be working with three high profile companies that are dedicated to the training of the future leaders of our industry. We will be training apprentices throughout Queensland and Northern New South Wales on a weekly basis, giving them access to the latest products, knowledge and equipment. We will also be doing product demonstrations in the Painters Training Wheels at different locations during the year. We will keep you across where and when, as we confirm dates. If you find yourself in the vicinity of any of these, come down and see us; we’d love to catch up.
GRAPHIC DESIGNER
Until next month, Happy Painting!!
• Monroe Porter • Nigel Gorman • Patrick Hill
J. Anne Delgado Nigel Gorman
nigel@aussiepaintersnetwork.com.au
07 3555 8010
Contents The Queensland Building Plan HOW TO CULTIVATE A Year of Mindfulness
2017
The start of another year
Mistakes Contractors Make with Accountants Latest Home Colour Trends of 2017
8 10
24 Which Way Is Your Business GOING IN 2017? Preventing Skin Cancer for Tradies
14
Cyber Attack
18
Consumerism, Clutter and Conscience in the Modern age
28 31 34
Registered Orgs Act, ABCC Legislation and Building Code 2016
36
What does public liability cover?
41
Industry Idiots
44
Important Contacts
45
22
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.
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1800 355 344 07 3555 8010 info@aussiepaintersnetwork.com.au www.aussiepaintingcontractor.com
6 | Aussie Painters Network
2017 February Issue | 7
Aussie Painters Network’s take on the
Queensland Building Plan The Queensland Building and Construction Commission (QBCC) are calling for all industry stake holders to get involved in the statewide consultation sessions starting this week. http://queenslandbuildingplan.engagementhq.com/statewide-consultation-sessions Aussie Painters Network will have representatives as many of the sessions as we can, and want to hear your thoughts on what the government is looking at adopting and the changes proposed to current legislation. There are a great many issues not yet being raised in relation to the changes being put forward. We will be raising these with all levels of government when we have the opportunity to voice our concerns. But we need your help. The major issues concerning the Painting Industry are; • Security of payment • Queensland home warranty scheme • Building Certification • Non-conforming building products • Licensing reforms We believe the review should take into account multiple approaches to fully assess the pros and cons. New Construction – Full build Renovation – Demolition and rebuild or addition to existing Maintenance on existing buildings – Replacing damaged/worn areas. Eg. Repainting, reroofing, re-guttering, general maintenance.
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Without a full review of the impact on all areas, changes will disadvantage some trades more than others. A high percentage of trades’ people, licensed or not, work in the maintenance area dealing direct with the property owners and not builders or construction industry license holders. All parties need to be protected in these reforms and there should be appropriate communication of any changes with the businesses and the public, with advertising campaigns during consultation, and after any reforms are adopted. Documents obtained via the Freedom of Information Act confirm in August 2014 Steve Griffin, former Commissioner of the QBCC, provided a submission to NSW Fair Trading, supporting their proposed plans for construction industry reforms (below). Now, NSW’s adoption of the reforms is the major notion of support for Queensland following suit, despite concerns and issues created there.
• Changes to licence category scopes • Definitions of defect & major defect • lnsurance exemption for built-in furniture and cabinetry work • Clarify definitions for high rise building insurance exemptions • lnsurance claims limited to works that are required to be insured • lnsurance covers only lawful deposits if no work has commenced • Exemptions from insurance for Government funded works • Deregulation of Cleaning Work, Disappearance of contractor, • Either party to bring insurance into existence, • Work covered by another insurance policy, • Licensee date of birth on register, • Regulation of excavation work Following on from the former Commissioners recommendations a lot of legislative changes were made to concur with his suggestions.
Here’s a brief summary of our impressions of the proposed actions up for consultation: Security of Payment:The Government Proposal
http://queenslandbuildingplan.engagementhq.com/security-of-payment
From recent discussions with painters, we are of the mind that Project bank accounts (PBAs) would be a great way forward, with some minor amendments. It should be not for specific projects, but should be based on builders turn over. Some building companies working in the domestic market are turning over billions of dollars each year, yet would very rarely do a project over one million dollars. Some of these companies hire thousands of sub-contractors and would be excluded from PBA’s. Queensland Home Warranty Scheme:The Government Proposal
http://queenslandbuildingplan.engagementhq.com/queensland-home-warranty-scheme
This is not relevant for the painting industry for non-structural Home Warranty Insurance. When it was instigated, it actually watered down the existing consumer protection from 12 months cover, to 6 months cover! Almost any painting works will last 6 months. For most finishing trades the defects won’t show for at least 12-18 months if works are
not completed correctly. We would recommend either removing painting completely from the scheme or reinstating the 12 months cover as a minimum. We would even recommend raising it to 2 years. Building Certification: The Government Proposal
http://queenslandbuildingplan.engagementhq.com/building-certification
Any enquiry into certification in the industry is encouraged. Aussie Painters Network is of the strong belief that a very high majority of both domestic and residential buildings constructed do not meet Australian Standards due purely to paint specifications commonly supplied by the builder. Some building companies are supplying twocoat systems that are in breach of the Australian Standard AS/NZS 2311:2009 Guide to the painting of buildings. Non-conforming Building Products: The Government Proposal
http://queenslandbuildingplan.engagementhq.com/non-conforming-buildingproducts
This should not only be applicable to new products. A lot of renovation work takes place with removal of old structure which contain lead paint (timber doors, windows and boards) which are then resized and cut to suit, leaving a contaminated site for the property owners. This not only is a concern for the owners but all trades people working on the site.
In the repaint market both asbestos and lead paint are common place and need to be addressed. Licensing Reforms: The Government Proposal
http://queenslandbuildingplan.engagementhq.com/licensing-reforms
We strongly object to the raising of the monetary threshold for all the construction industry. If anything, the threshold should be lowered back to the $1100 that it used to be. This is still above the thresholds of Western Australia and South Australia. In WA the threshold for any licensed work is $1000. In South Australia the threshold is $0, you must have a license to carry out any construction work. Raising the threshold will only create larger problems for consumers and professionals in the long run. The QBCC should be protecting those that are doing the right thing, paying fees and warranting their work. The un-licensed contractors should be the ones that things are made harder for so they become licensed contractors. It would be nice if it was fair for all contractors to be playing on a level playing field. If anyone has any further input into the direction Aussie Painters Network is heading with its proposal please contact us. We would like to have your assistance in the industries direction.
2017 February Issue | 9
HOW TO CULTIVATE A
Year of Mindfulness In 2016, I practiced mindfulness more than I ever have before, after 10 years of sporadic practice. I meditated regularly, practiced with a local Zen group, did a great one-day sitting, went on a retreat, took courses, read books, practiced mindful eating and exercise, learned some great new practices, and taught several mindfulness courses. I learned a lot about how to cultivate a more mindful life, and I’d like to encourage you to try it this year. Why? A few good reasons: • You learn to be awake to the present moment more, and lost in the daydream of your thoughts less. • You begin to see your mental patterns that affect everything you do, and thus begin to free yourself of those patterns. • You learn to be frustrated less, and let go more. And smile more. • You learn to be better at compassion, equanimity, love, contentment. • You learn to be better at not procrastinating, and better at building better habits. I could go on about better mental and physical health, better relationships, less fear … but the reasons I’ve given are strong enough. It’s important stuff.
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So how do we cultivate a year of mindfulness? I’m glad you asked.
Tips for Cultivating Mindfulness I’m just going to dive in and share my favorite tips for creating a year of mindfulness: 1. Commit to sitting daily for a month. It would be great to commit to a year of sitting meditation practice, but I think that’s too long for the brain to commit to. So I recommend trying to sit everyday for a month. Tell people about it, set reminders on your phone and calendar, put a note somewhere you won’t miss it, and keep the meditation short — just 2-5 minutes to start with, until you become more regular. This is the foundational practice for being more mindful, so make a big commitment to sitting. 2. Find a group. If you can find a meditation group in your area to sit with once a week, that’s ideal.
It doesn’t matter much what kind of group it is (Zen, Tibetan, Vipassana, etc.), just meet with them and meditate however you like when you’re on the cushion. If you can’t find a group in your area, find a group that meets online (San Francisco Zen Center has an online practice group, for example). This commitment to a group deepens the practice. 3. Practice mindful eating. I’m gonna be honest here, I don’t practice this as much as I should. But it’s a good example of how you can take something you already do every day, and use it as a meditation. Simply commit to doing nothing but eating — single-task instead of multitasking. As you eat each bite, pay attention to the food, the textures and flavors and colors. Notice when your mind wanders. Savor the food. Showering, brushing your teeth, washing your dishes, walking and sweeping are other good activities to use as meditation.
2017 February Issue | 11
Do you have an
APPRENTICE?
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4. Take a course. This is a bit selfpromotional, but I’m offering mindfulness courses in my Sea Change Program. However, you can take any online or in-person course, free or paid — I find that they force you to practice and reflect on your practice, so that your learning deepens even further. 5. Find a teacher or partner. I am lucky to have a teacher who I meet with every couple months … I find that just knowing that I’m going to be talking to her means that I’ll try harder to learn, remind myself a bit more, reflect on my learning more so that I have something to talk to her about. If you can’t find a teacher, a learning partner can function the same way. 6. Watch your frustration. When you get irritated, frustrated or angry … let it be a mindfulness bell! It is a great opportunity to drop out of your story, and notice how your body is feeling. What got you hooked? What story are you telling yourself? What is your mental pattern when you get hooked? What is the physical feeling in your body at this moment? Practice as much as you can!
7. Read a good mindfulness book. You learn mindfulness by practicing, but a good book can guide your practice. I recommend checking out my recently published Zen Habits Beginner’s Guide to Mindfulness, and I also like Mindfulness in Plain English. 8. Practice yoga or mindful movement. Yoga is moving meditation, and I highly recommend it. If you aren’t drawn to yoga, try walking or running or doing other exercise while trying to pay mindful attention to your body and breath. Either way, see it as an opportunity to meditate as you move. 9. Sit with procrastination & fear. Whenever you start to procrastinate or run to distraction, there is fear at the root of your urge. Instead of running, sit with it. Notice the fear or resistance. Stay with this feeling, become intimate with it, be friendly towards it, smile at it. Stay, stay, until it dissolves. 10. Journal & review regularly. The best learning is deepened by reflecting what you’ve been learning about, reflecting on your obstacles and challenges, reflecting on what
works and what doesn’t. You evolve your learning through reflecting. Journaling is a great tool for that — it helps you reflect in a mindful way. Journal daily, weekly, or monthly, reviewing what you did the previous day (or week or month) and what you learned from it, and what your intentions are in the coming day, week or month. That might seem like a lot of things to do, but you don’t have to do them all at once! Nor do you have to be “perfect” at this (perfection doesn’t exist). Just try one or two things, try another couple things later, and explore with no real destination or outcome in mind. Play with these practices and tools. See what happens.
----------------------------------------------
Leo Babauta, a successful
‘simplicity’ blogger and author from California, the creator of top 25 Blog, Zen Habits
www.zenhabits.net
2017 February Issue | 13
2017
The start of another year Hopefully you have enjoyed reading my articles over the past few years and benefitted from the business advice given. My aim is to only write what I believe in and what I know works in business. If you just take in one bit of information you can use in your business or that the stories have been of interest to you, then I can feel satisfied that my time is not wasted. As 2017 will see me reach the age of 63 in April (that used to sound very old to me back in my 20’s) my main objective for the year will to slowly ‘wean’ myself into retirement. My business will still operate though, but the actual part of going to the job sites will decrease dramatically. I have very reliable people that can do the physical, hands-on-tools side of it but the quoting and bookwork will still be in my hands. This will give me more time to concentrate on ‘MyTools4Business’ and increase my love of ‘Business Coaching’. Recently my services were required by a Brisbane business as the owner was wanting advice on how to improve their quote success rate and also how they could generate more job leads. So for my first article of the year, I would like to share a few of those ideas and hope they will be of use to you also.
14 | Aussie Painters Network
Extra ‘insurance’ to safe-guard yourself 1. We all know the problems faced with painting existing ceilings and that they have a tendency to peel either straight away or a year or two down the track. If I have a suspicion that this could happen to a job I’m quoting, I will inform the client and include a warning at the bottom of the quote. This way they cannot come back at me saying it is my fault. NB: Due to the unknown adhesion of the paint coating to the ceilings, I can’t guarantee that peeling may occur in the future. This stems back from the original painting of the surface where a wallboard sealer may not have been applied. Any subsequent product adds weight to the substrate and lifts off the un-sound coating. Unfortunately there is no sealer on the market that will prevent this from happening. If peeling occurs in the painting process an extra cost could incur if there is a major problem. 2. Next is the problem of the yellowing effect of oil-base gloss enamels on interior woodwork. If the client has an existing pale
colour on the doors, I will give them proof by going to a cupboard and showing them the discolouration of the inside of the door. This is where I can ‘upsell’ my services and explain the importance of using acrylic gloss for the topcoat as it does not yellow with age. This process requires an undercoat for adhesion purposes and then two coats of Dulux Aquanamel (or whatever you prefer, but be careful because there are products that although acrylic, still yellows after time). This adds quite a few hundred dollars to the quote because of the extra coat of paint but the client appreciates the advice and very often accepts the increase. You can still give them the choice of oil-base enamel but at least you have fore-warned them. Below is what I include at the end of the quote. NOTE: The Australian Paint Manufacturers’ Federation has issued the following general warnings to assist specifiers and end users to the key characteristics of oil based paint and the possibility of yellowing. Also refer Australian Standards 2311 sections 6.6 and 7.6(H) for explanation and recommended processes.
All white and pale coloured enamels will yellow with age in areas of low natural light when applied in poorly ventilated conditions in the presence of ammonia – common in water based paints and some household chemicals Oil based enamels dry and harden with time by a process of oxidation. This reaction of oil with oxygen, catalysed by metal driers, produces chromophores which are bleached by sunlight in exterior applications. When enamels are used on interior surfaces, particularly in poorly lit areas such as cavity doors, inside cupboards or behind furniture, these chromophores result in a yellow discolouration. The quote If you do-not write your quotes on site, then I suggest to leave a ‘Quote Folder’ with the client. It should contain your Commitment Page, Business Card, Brochures on the products you are going to use and even Colour Charts. Let them know when they receive your quote, either by email or post, to place it in the folder you supplied. It just makes that nice touch and looks more professional. Also include the note below as a covering letter. Thank you for the opportunity to view your property and provide you with a quote and how (your business name) can meet your needs and add value to your property for years to come. Please feel free to call me if there are any outstanding issues that you don’t understand in your quote or if there are any requirements that may have been overlooked. Kind regards
Free lead generating When you are on a job site, it may just be yourself or you may have multiple workers with you. In either case, it is a nice gesture to include the following note in the houses directly beside where you are working and the three houses opposite. Hi My name is ________ and I am a professional painter. You may have noticed that my staff and I are currently painting the house at number ____. Please let me apologise for any inconvenience that we may cause by working near your property but we guarantee to keep noise or disruption down to a minimum. If there is a problem, or if you would like a quote yourself for painting, please feel free to let us know. Thank you (Name and website) You can then send another letter to the houses up and down the street. Hi My name is _______ and I am a professional painter and I have been in the industry for ____ years. My work is guaranteed for 5 years and I only use my own staff, there are no sub-contractors involved. I stand by the fact that, ‘The job is only finished when the customer is satisfied’. For the next few weeks, my staff and I will be painting the house at number (street number). If you would like a quote yourself for painting,
please feel free to let us know while we are in your area and I will be more than happy to come around. Please check out my web site to view testimonials, photos and our commitment. Thank you (Name and website) These are just a few ideas that may help in your business but there is plenty more advice in my book, ‘How To Become A Really Successful Painter’ if you are interested.
Jim Baker www.mytools4business.com info@mytools4business.com 2017 February Issue | 17
MISTAKES CONTRACTORS MAKE
WITH ACCOUNTANTS Many contractors don’t like bookkeeping and accounting. Smaller contractors are notorious for not properly processing withholding taxes, worker’s compensation, unemployment and other financial requirements, so it makes sense many of them would look to their accountants to take care of this. While this may work for basic taxes, this type of system probably won’t work as a contractor’s business grows. It is not uncommon for us to work with contractors who have their accountants do all their record keeping offsite. The contractor’s internal records tend to be a mess and it is almost impossible to tell where they are financially.
Sales Direct Costs Field labor and related payroll costs Material Subcontractors Special job cost (any one time job expense) Gross Profit Variable Overhead (gas, small tools, equipment repairs, etc.) Gross Profit after Variable Overhead Fixed Overhead-rent, non-field salaries, depreciation, etc.) Net Profit
Here are some do’s and don’ts you might find useful.
Some don’ts: • Don’t allow all of your financial records to be kept off site at the accountants or on his or her laptop. You must have access to those records and use them to monitor your finances and where the business stands. With the current on line capability of accounting software, the accountant should be able to access accounting remotely. • Don’t let your accountant use the same statement format for you as he or she uses with all other clients.
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A chart of accounts used for a retail store is totally different than what a contractor should use. While this format will work for taxes, it will not provide you with the strategic information you need. A contractor’s statement should follow guidelines similar to the following simple breakdown. Of course, you can and should have multiple categories under each broad cost category. The idea is to tabulate costs in a format that matches how you think when you bid jobs. This allows you to compare estimating logic with actual costs.
• Many contractors use a cash statement for taxes but such a statement can be of little value for business analysis. A cash statement only shows cash in and cash out; it does not include accounts receivable (what people owe you) and accounts payable (what you owe others). Failure to include accounts receivable sales and unpaid expenses leaves a distorted financial picture. • If your accountant is closing your payroll, make sure you know what that is costing you. Most accountants have secondary employees providing these services, not the accountant. Payroll is an automated process and much of it is done by software. If your accountant bills at $150 to $200 an hour; you want to pay for his or her advice, not for day to day bookkeeping and data entry.
Some do’s: • Ask your accountant questions. He or she probably uses terms you are not familiar with just like there are many terms in your trade the accountant may not be familiar with. Accounting is not rocket science. There is no multiplication or division, it is all basic adding and subtracting. However, failing to follow a contractor template as laid out in this article creates a confusing format. We frequently have contractors send us complicated poorly set up statements with comments that they do not understand them. I always have the same reply, I don’t understand them either. • Use your accountant for tax planning. Several months before year end meet with your accountant and tax plan for the year. You can probably project close to how the year is going to come out. This is particularly important if you are having a year with higher profits, as you are probably paying tax estimates based on the previous year.
• Have your accountant, a Quickbooks Pro similar or other professional help set up your in-house chart of accounts. While software programs can be easy to use and may look like an electronic check register, they are not electronic check registers. It is accounting and you need to know bookkeeping basics to make sure items are being recorded properly. • If you have an office person who is not than familiar with bookkeeping, use your accountant to help train that person. Have someone come in monthly and help until the office person has learned the day to day. • As a theft and accuracy measure, a good rule of thumb is that you want two people involved with your accounting. Generally, you don’t want the person who does the day to day to balance the checkbook. It is ok to have you accountant balance your monthly statement and/ or do a quarterly review.
• In the accountant’s defense, most contractors do not make good customers as they keep poor records, take little interest in the process and are not a big revenue source. Your accountant has to make money also. Appreciate what they do but focus on the advice and have the day to day down in house. In closing, you should surround yourself with professional advisors but you must understand the accountant is merely a scorekeeper. They do not price, bid or buy anything. You are the coach of your business and you make the decisions that drive profit and loss.
Monroe Porter
is president of PROOF Management a firm that teaches seminars and runs networking groups for painting contractors. Several Aussie painting contractors travel to the US each year to participate in his programs.
www.proofman.com
2017 February Issue | 19
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My Hourly Rate Calculator
www.mytools4business.com
2017 February Issue | 21
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WELCOME THE NEW YEAR WITH THE
Latest Home Colour Trends of 2017 Everyone wants to welcome the New Year with a new look. Whether it is your own makeover or a facelift of your home, keeping up with the latest trend is the key. When it comes to a home renovation project, you do not want to choose a wrong colour combination. Anything can be an inspiration for choosing the right colour for your walls. It can include hints from home décor magazines and lifestyle blogs. Also, you can make a choice in the following ways: • Choose a colour that goes well with your furniture and appliances, • Pick a shade of your current favorite colour, • Select a shade lighter or darker than the current colour of the walls. Because of a large number of options available in the market, choosing the right colour for the walls of your home is a time-consuming job. To make things easy, here are a few colour trends which will rule the market in 2017.
1. The Neutrals
Like the last few years, neutrals will continue to be the hot choice for a majority of homeowners in the next
year. The colour dark brown is an all-time favourite of homeowners. In 2017, you will find the colour in shades of cinnamon and mocha. For all gray-lovers, the shift will be from soft gray to charcoal gray in matte finish. Shades of green such as teal will also hit a new high. It will show up in home accessories as well.
4. The Earthy Tones
2. Colour Combinations
Home colour trends vary from person to person. But once you decide upon a colour, you should be sure about it. Do not let others influence you. Instead, opt for something that will make you happy and welcome the New Year with the latest colour trend.
Just like the use of a single colour is a popular option for homeowners, a two-colour theme will also be a prevalent choice for many. Black and white is an evergreen combination. However, brown and blue will be trending this year. For a touch of colour, you can also choose soft lavender. It can be accompanied by an all-white interior to give a classy look to your home.
3. The Bold and the Beautiful
Are you thinking of a complete makeover? You can opt for bright colours. If you want to feel happy by looking at the walls of your home, you can think about a lemon-yellow colour on one wall accompanied by a pale green colour on the rest of the walls. Floral theme reigned in 2016. It will continue to do so with the addition of colours such as coral and romantic pink.
You can play safe with earthy tones because they never go wrong. They create a calming effect on the mind. Taupe and earthy green will be the top-notch shades in the category of earthy colours. They will be a go-to option for homeowners who want a contemporary yet earthy look for their home.
Deciding a colour for your walls requires keen interest, immense patience and clear vision. Due to a wide variety of colour options, you can get confused and end up choosing the wrong colour. So, make sure that you know what you want and how you want. It will make the walls of your home beautiful.
Christine Delongte
Article Source: http://EzineArticles.com/ expert/Christine_Delongte/2157989
2017 February Issue | 23
Which Way Is Your Business
GOING IN 2017?
When you go somewhere you haven’t been before you need a map to find your way. Having a Business Plan is similar to a road map and something every business owner needs to have, if they want their business to succeed in the future. There is a lot of information out there on how to create a business plan, and in my experience most business owners become overwhelmed by it. That’s why I wanted to help you work out an easier approach to business planning in this article. In the December 2016 edition we’ve covered the essentials of how to conduct a SWOT analysis. This exercise actually feeds right into the business planning process. However, there are a few other steps you’ll need to take to develop a business plan that can help you stay on track for the year. So let’s look at what these steps are to give you a business planning road map. Step 1 – Describe Your Business and Market Start with your business profile and document what business you’re in, the business structure, your mission statement, your products or services, describe the market, the industry, the economic climate and anything else relevant.
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Step 2 – Analyse the Information Now that you’ve got a lot of information to work with, you’ll need to analyse what it means for your business moving forward. For example, look at your product(s) or service(s) and determine what its current position in the market is. Describe any major trends affecting the industry in the past and future and identify your target market(s) and expected growth rates over the next 2-3 years.
Create a customer profile and also look at your competition profile. Do you share the same customer base? What is their product mix and where do they have a competitive advantage over your business and why? At this point you can also use the SWOT analysis to become clearer about where your business’ strengths, weaknesses, opportunities and strengths lie.
Aussie App Store will develop a state of the art mobile app/website to grow your business using our integrated social networking applications.
2017 February Issue | 25
Insurance for
PAINTERS Are you covered?
Do you want to deal with an insurance company that has the best available, cost-effective insurance for tradies? Aussie Painters Network has negotiated the best possible cover for your business. Contact us directly for more information and to get your cover today!
The security for this product is placed via Lloyds of London as well as other Australian authorised insurers. 26 | Aussie Painters Network
Step 3 – Create a Strategy This is where you determine how you’re going to run the business and should include items like management structure, financial administration, product marketing, supply sources, required equipment etc. This step is useful for both start-up and existing businesses alike. As the market place changes over time, so should your business. Only regular reviews of your business plan and operations can give you the ‘helicopter view’ that you need to get clear about the direction for your business. Step 4 – Write up your Plan Put all the information together into one consolidated business plan. The best business plan is the one that you’ll look at every day, not the one that sits on the shelf or in the bottom drawer. Use a simple template and don’t over-complicate things.
Remember to: • Make it clear and write it in plain English. You can add diagrams or charts for illustration, and try and avoid using too many adjectives • Be brief and only include relevant information. Business plans can be used for different purposes, like your own planning or for seeking finance. Each purpose will require a different emphasis and level of detail, so be clear about that upfront. • Be real about how and what you present in your business plan. Wishful thinking will not do the trick here, you have to be honest and present a realistic idea of the state of your business
• Use a logical approach to structure your business plan, as it will reflect on how people perceive how you run your business. The more structured and easy to read your plan is, the better you can convey to your staff and outsiders what you are planning to achieve in your business. If you have any questions on effective ways to create a plan for your business or are looking for a simple business plan template, feel free to arrange a FREE No-Obligation Meeting with me. Just visit our new website at www.straighttalkat.com. au and complete your details on our Home page to request an appointment.
Call Us: (07) 3399 8844 2017 February Issue | 27
Preventing Skin Cancer for Tradies Australia has the highest rates of skin cancer in the world. At least two in every three Australians will be diagnosed with skin cancer before they reach the age of 70. Even during winter and on cloudy days UV radiation can be strong enough to damage unprotected skin and eyes. Working outdoors for most or part of the day can put you at greater risk of skin cancer, including melanoma.
Cancer Council Queensland recommends the following tips to reduce your risk of skin cancer:
Sun related injuries are quite common amongst outdoor tradies who sustain a higher risk of developing skin cancer. Outdoor workers are at an above average risk of skin cancer due to high levels of direct sunlight exposure over long periods of time and they generally receive 5 to 10 times more UVR exposure per year than indoor workers (Safe Work Australia, 2010). During 2000-2009, 1360 workers’ compensation claims and $38.4 Million in payouts were made to sun related injuries at work (Cancer Council Australia, 2011). http://www.spotscreen.net.au/
Slop – Slop on SPF 30+ sunscreen 20 minutes before starting work and reapply every two hours. Protect your lips with SPF 30+ lip balm. Never rely on sunscreen alone as your only protection from the sun.
All skin types can be damaged by UV radiation. Damage is permanent and irreversible and increases with each exposure. Therefore, the more sun exposure you receive over the course of time, the greater your risk of developing skin cancer. Whenever you are working outdoors it is important to protect your skin and eyes.
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Slip – Slip on sun protective clothing that covers as much skin as possible. Choose work shirts with collars and longer sleeves. Clothing that is lightweight, loose fitting and has an ultraviolet protection factor (UPF) of 50+ is best.
Slap – slap on a broad-brimmed hat that covers the face, neck and ears. Caps offer limited protection and are not a good choice. Seek – seek shade where possible. If you can, work under a portable shade structure and take your breaks in the shade. Try to work outdoors before 10am and after 3pm and indoors during the middle of the day when UV radiation is at its strongest. Slide – Slide on sunglasses to protect your eyes. Close fitting wraparound styles are best. Choose sunglasses that have an eye protection
factor (EPF) of 10 and state on the tag: AS/NZS 1067:2003 to ensure that they conform to the Australian Standards. Skin cancer can be successfully treated if found early, however it can be fatal if left untreated. Keep an eye on your skin and be aware of what is normal for you. Every three months, check your skin from head to toe. Use a mirror or ask a family member to help you check hard to see places such as the back or scalp. If you have any concerns about skin cancer or there are any changes to your skin, talk to your doctor especially if you notice the following: • A new spot, or a spot that is different from the ones around it. • A spot that itches or bleeds, like a sore that doesn’t heal. • A spot or mole that changes in size shape or colour. ---------------------------------------------Caroline Miall
caroline@aussiepaintersnetwork.com.au
2017 February Issue | 29
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CYBER ATTACK It was only last week when my wife turned on the computer and within 5 minutes, the screen went blank and shut down completely. Have you ever experienced that before? Panic stations! If you are sensible and have an external ‘back-up’ or you work on a ‘Cloud-Based’ system, the worry soon diminishes and the panic recedes because you know your files are safe. It just turns out to be an inconvenience as you must wait until it’s repaired and re-loaded. This led me to think of all the emails I receive containing ‘attachments’ from people and companies I do not know, or do know, but seem very suspicious. It sends off alarm bells in my head. Now I know it’s very tempting to open the file as it acts like an addictive drug (not from personal experience but just from what I’ve heard). It draws you in like a magnet. You feel compelled to open it up because you’re curious to what the file may contain. It may be important! It may be legitimate! It’s so hard to ignore and stop yourself, don’t you agree? The first thing I do with suspicious emails in my inbox is to look at the
address bar. You may find that most look quite legitimate, but only a small change in the sender’s address could lead to a potential cyber-attack if opened. Just an extra ‘dot’ or ‘word’ could lead to something fatal and very costly for you. Cyber-attacks can come from the people that just get the pleasure from making your computer inaccessible. It’s a ‘high’ for them, like a drug. But there is also ‘Ransomware’ where computer hackers (terrorists) trick you into downloading a link containing a virus and then demanding payment for the release of your effective files.
Below is part of an article I read recently in the ‘MyBusiness Magazine’ and have permission to share. ‘Unfortunately, too often businesses don’t have the right protections in place and thus cough up the ransom. In recent months, ransomware has affected everyone from Australia Post and AGL customers, to Pokémon Go players and the Australian Federal Police. But while organisations of all types and sizes have been impacted, SMEs are particularly vulnerable.
According to survey findings, businesses in the region are paying an average ransom of $11,781 to unlock files that are held ransom. The statistics are clear. For SMEs it’s no longer a question of ‘if’ but ‘when’ ransomware will strike. Fortunately, there are measures you can take to protect your business against ransomware attacks.
Education
For one property management firm, it all started with a suspicious email. The email was so well-crafted, it bypassed the firm’s email security, DNS blocking service and anti-virus software. The user that received the email downloaded the attached zip file and the virus started encrypting files on the local and shared resources. The damage was done. It is critical that your staff understand what ransomware is and the threats that it poses. Provide your team with specific examples of suspicious emails with clear instructions on what to do if they encounter a potential ransomware lure: don’t open attachments and if you see something, say something.
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Layer cyber security solutions A good place to start is with antivirus software, which is designed to detect, block and remove viruses and malware. It’s then a matter of layering additional solutions on top. A network firewall that monitors incoming and outgoing network traffic is essential. Cyber criminals design their attacks around vulnerabilities in popular software products, which makes patch management an important consideration for your business’ cyber security strategy, too. Recent studies have shown that weak passwords are at the heart of the rise in cyber theft. To mitigate this risk, consider adopting a password management solution for all employees. Encrypting hard drives
is also an important consideration and will ensure all data will be completely inaccessible, for example, if a laptop is stolen.
So if you are unsure with any emails you receive, either delete it immediately or contact the person directly to make sure that it is legitimate.
Invest in a backup solution Most backup products are designed to make incremental backups of your data throughout the day to minimise data loss if something did happen. Having a backup solution in place means that if your business is breached, systems can be rolled back to a point in time before the breach occurred – saving your business critical data and, not to mention, a hard day’s work!
By the way! It cost me $45 to find out there was nothing wrong with my computer. Apparently I had one too many leads plugged into the power board which reduced the current going to the computer therefore shutting it down. All I had to do was plug it into a separate socket.
Written by James Bergl, regional director, Australia and New Zealand, at Datto.’ To read the full story follow this link. CLICK HERE
The portable, inexpensive method to prevent paint waste-water polluting the environment.
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Jim Baker www.mytools4business.com
2017 February Issue | 33
Consumerism, Clutter and Conscience in the Modern age In our modern, affluent setting, many of us are caught in a vicious cycle where we’re constantly evaluating what ‘things’ we need in our lives, whilst constantly being encouraged to get more and more. Our lifestyles and the marketing that permeates them has many of us frequently upgrading, constantly buying bigger, better and more expensive ‘stuff’ to keep us satisfied. We neatly compact everything we discard into landfill and continue to make everything out of plastic, while sea life die from swallowing it. Any human being with knowledge and a conscience should struggle with where they put the by-products of their existence. And surely businesses should be responsible for the waste they wrap their latest product in, just as Painters are obligated to dispose of their waste paint properly. With Christmas in our recent wake, the issue is never more stark to me. I love watching the kids rip into their presents as much as anyone… but does there really have to be that much shiny rubbish to go with it all? More often than not, there’s more packaging than gift. For anyone who really does care and think about the impact they have on the planet, all the knowledge of the
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problem can make it very difficult for some people to let go of stuff when it’s necessary, too; One of the reasons I’m sure why the incidence of problem hoarders has become endemic lately, spawning a raft of reality TV shows featuring the spectacle.
Life at Home in the 21st Century was a study published a few years ago, wherein thirty-two Los Angeles families opened their doors to researchers from the Center on the Everyday Lives of Families (CELF). What they found was a confounding number of possessions and an array of spaces and furnishings that create stage for modern family activities, often ill utilised. They uncovered habits and behaviours that tell us a lot about who we are as a society and the stuff we own. This book takes an ethnoarchaeological approach to a look inside modern western living, never
really before put in the focus in such an intimate way. The study revealed a lot about modern family life, including that most people were hopeless at relinquishing old possessions before they purchased new ones. Most people stored everything but their car in the garage… usually because it was filled with up to 600 storage boxes of lesser or never used “stuff”. The publication found that the ‘overwhelm’ people experienced in their relationship to things really affected their quality of life, creating stress and anxiety for many. This paints a picture that is all too familiar to most families. Sadly, its rare we have things repaired as it costs less to replace, and we collect many items based on an impulsive need to satisfy an itch for something. Our insatiable desire for more, crossed with retail regret often leaves us with a pile of things that we never really needed, but don’t have the time to return, resell or pass on to someone who might use it. Don’t get me wrong, I have no magic bullet or fantastical organisation ability to solve this ongoing issue. It’s something I have struggled with constantly, especially since having children… and mine don’t let me throw anything out and will often retrieve items from the trash!
The good news is that there is some good news!! If we want to take a global perspective, then we can take some comfort in knowing that things are happening for the better… for example, The Ocean Cleanup: “Five trillion pieces of plastic are in the ocean right now, gravitating toward one of five major garbage patches. The Ocean Cleanup Project hopes to remove 40% of that plastic over ten years by emulating a coastline. It has operated autonomously since launching, and runs on power generated from ocean currents. Thirty years from now, ocean plastics may become a footnote in history.” Source: The Ocean Cleanup https://www.theoceancleanup.com
…and wouldn’t that be amazing! Greater levels of awareness and conscience are leading to wonderful movements around the world too. Buy Nothing Day has been around since 1992 when started by Canadian artist, Ted Dave. Championed then
by Adbusters.org, it has become an international day of protest against overconsumption. This year it falls on November 25. Get on it! Similarly, the mountains of waste created by ‘Fast Fashion’ has become a global environmental crisis in itself. It has prompted many to stop buying new clothes for a year and to really consider what is in their wardrobe and where their clothes came from.
Mahatma Gandhi once said very quotably - “Live simply so that others may simply live.” The sentiment has never been more relevant than it is now, when we put it in the context of ‘the other 98 percent’. Its time for the individual to make a stance so that the 98 percent can actually make the difference that the power of a majority should. So, next time you buy something; whether it be a plastic bottle filled with overpriced water, a gift for your child, or a new car. What decisions can you make that might help lessen the negative impact on your world? If you don’t act, then who will?
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Registered Orgs Act, ABCC Legislation and Building Code 2016 The month of November has seen some major changes in the world of IR. The Registered Organisations Bill was passed, the ABCC was reintroduced and on 2 December the Minister for Employment, Michaelia Cash introduced the Code for the Tendering and Performance of Building Work 2016, the Building Code 2016. The Registered Organisations Bill along with the ABCC Bill was the trigger for the double dissolution in July.
The Government’s commitment entails six parts and will support a parliamentary inquiry into whistleblower laws to ensure that the protections of the ROC Bill will extend across the government and corporate sectors. This legislation is to be introduced into parliament by December next year and, at a minimum, has to support the standards set out in the Bill. A parliamentary vote on the legislation should follow no later than 30 June 2018. Following section 329AB of the Fair Work (Registered Organisations) Amendment Act 2016 the Registered Organisations Commissioner will;
Registered Orgs Act On 22 November, the Senate passed the Registered Organisations Bill to establish a dedicated Registered Organisations Commission to regulate unions and employer organisations. The ROC Bill received support from Victorian independent Derryn Hinch and all three members of the Nick Xenophon team. The changes increase protection for whistleblowers, impose higher standards of regulation on union officials and extend investigatory obligations and accountability of auditors.
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• Promote efficient management of organisations and high standards of accountability of organisations and their office holders, to their members; • Promote compliance with financial reporting and accountability requirements with the Act; • Monitor acts and practices to ensure they comply with the provisions of this Act providing for the democratic functioning and control of organisations; • Perform any other functions as are conferred on the Commissioner by the act; and, • Do anything incidental to or conducive to the performance of any of the above functions. The significant changes provided by the Registered Organisations Bill
will repeal sections 337C Victimisation prohibited and 337D Right to Compensation and replace these sections with comprehensive protections and remedies for a person who makes a disclosure. This will include: • An extensive definition of where a person takes a reprisal against another person for making a disclosure. A person who causes any detriment to another because they believe or suspect that the other person may have, proposes to or could make a disclosure that qualified for protection. • A person will be able to recover civil remedies where the Federal Court or Federal Circuit Court is satisfied that a person has taken or threatened to take a reprisal against a person. • A person will be ordered to pay costs where they vexatiously bring an application • A civil penalty of 100 units will apply where a person who takes a reprisal against another person due to their belief or suspicion that a person made, may have made, proposed to make or could make a disclosure that qualifies for protection. • It will also be a criminal offence if a person takes a reprisal against another person due to their belief or suspicion that a person made, may have made, proposed to make or could make a disclosure that qualifies for protection. This carries a penalty of 2 years’ imprisonment, 120 penalty units, or both.
The ROC Bill also introduces new legislation regarding the investigation of disclosures: • Where a disclosure is made that qualifies for protection, the person whom the disclosure is made must allocate the disclosure to one or more qualified officials within 14 days.Theauthorised official is then required to investigate the disclosure within 90 days of the allocation; and • A person will not be subject to any criminal or civil liability where they give information, produce documents or answer a question if they have been requested to do so and it is relevant to the investigation. This is a substantial and significant change after years of dispute over the protection of sources who blow the whistle on wrongdoing.
ABCC Legislation Following the passing the ROC Bill, the ABCC Bill was thenpassed in the Senate on 30 November, with 36 votes to 33. This legislation reestablishes the Australian Building and Construction Commission to the building industry. However, Malcolm Turnbull has had to make a number of concessions to restore the ABCC. The major concession made is that the Building Code 2016 will not be applied retrospectively or even from the date that the Bill was passed for existing enterprise agreements. The Senate passed an amendment that will see a two-year transition period to allow construction companies to update their enterprise agreements and strike out noncompliant clauses while still tendering for government work.
The Code prevents the employers agreeing to union claims such as casual, apprentice and labour hire clauses if they want to tender for Commonwealth work and is more restrictive than the existing 2013 Code. As a result of employer’s inability to persuade the CFMEU to exclude non-code compliant clauses that may never come into effect, the CFMEU has signed up more than 1 500 companies to four year agreements that are now in breach of the Code and must be re-negotiated by November 2018. Dave Noonan, the general division National Secretary of the CFMEU has claimed that, “the rights of a million construction workers have been sold down the river by crossbench senators to horse-trade with the Coalition on other issues.” The CFMEU has also made clear that they will be seeking extra pay for workers in exchange for agreeing to remove non-Code compliant clauses. Further amendments to the ABCC legislation passed by the Senate : • Builders tendering for government work must provide information on local content and compliance with Australian Standards; • The establishment of a security of payment working group; and • The requirement for the ABCC to act in a “reasonable and proportionate manner to each of the categories of building industry participants.” This also requires the ABCC to do additional reporting and uphold the APS values set out in section 10 of the Public Service Act 1999.
working with Senator Nick Xenophon’s NXT team. Senator Xenophon has explained that these changes maintain the requirement for a presidential member of the AAT to approve the exercise of the ABCC’s coercive powers and notify the Commonwealth Ombudsman of all examinations. Senator Hinch said the changes would make the Commissioner more accountable and unable to “cherry pick in future.” The Commissioner will also be required to enforce the Fair Work Act’s requirements on; wages and entitlements, general protections, discrimination, sham arrangements, industrial action, strike pay and right of entry. This will ensure that the ABCC is obliged to prevent underpayments and dodgy employers and will take the Commission’s focus and resources away from unions.
Building Code 2016 The ABCC commenced on 2 December 2016 and Employment Minister, Michaelia Cash subsequently issued a new building code. The Code for the Tendering and Performance of Building Work 2016 (Building Code 2016) which applies to companies who submit an expression of interest or tender for Commonwealth-funded building work from 2 December. As a result, any enterprise agreements made from 2 December 2016 must comply with the Building Code 2016 in order to be eligible and awarded Commonwealth-funded work.
These amendments to the Bill were put forward by Senator Hinch,
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www.lead.org.au
The Building Code 2016 sets out the Commonwealth Government’s standards of conduct for all building industry participants that seek to be, or are, involved in Commonwealth funded building work. The purpose of the Code is set out in Section 5 and is to; • Promote an improved workplace relations framework for building work and promote compliance with the code of practice, theAct and designated building laws and encourage the development of safe, healthy, fair, lawful and productive building sites for the benefit of all building industry participants; • Assist industry stakeholders to understand the Commonwealth’s expectations of, requirements for, entities that choose to tender for Commonwealth funded building work;
• Increase efficiency and cost savings in the work performed by code covered entities; • Increase the likelihood of timely, predictable, and cost-efficient delivery of Commonwealth funded building work through the use of building contractors and building industry participants that consistently adhere to the code of practice; • Help funding entities to identify and work with building contractors and building industry participants with track records of compliance with the code of practice; and • Reduce execution delays and costs in relation to Commonwealth funded building work by not engaging building contractors and building industry participants with track records of non-compliance. This code will apply to building contractors, building industry partici-
pants and particular building work in a similar way to previous Australian Government Implementation Guidelines for the National Code of Practice for the Construction Industry. As a result, entities that choose not to become code compliant will be excluded from being awarded Commonwealth funded building work if they do not comply with, or meet the standards required by the code of practice.
Patrick Hill is an industrial relations
consultant at IRIQ Pty Ltd. To see the services IRIQ can provide visit our website.
www.iriq.com.au
2017 February Issue | 39
Public liability insurance for painters, from just $407 - Includes cover for spraying - Unrestricted heights option* - Cover from $5m to $20m - Monthly payment options - Easy online application
Premium of $407 is based on $5,000,000 public liability insurance policy paid annually for a painting business in QLD with one manual worker. * A 15m height limit applies, but can be removed for an additional premium. Insurance Services Pty Ltd t/as Trade Risk (CAR 422847) is a Corporate Authorised Representative of 40Westcourt | Tradesman Aussie General PaintersInsurance NetworkBrokers Pty Ltd, Australian Financial Services Licence No 238447. ABN 81 009 401 772.
What does public liability cover? Most painters know they should have public liability insurance, but do you know what it actually covers? Essentially it covers you if you stuff up and someone else suffers a loss as a result. Speaking more formally, the policy will respond in the event that a third party suffers property damage or personal injury as a result of your negligence. The easiest way to understand how public liability insurance can help protect you as a painter is to look at some claim examples.
Property Damage
The most common public liability claims are for property damage. If you spill a tin of paint onto carpet or similar, and the carpet needs to be replaced, the policy can cover the costs of the cleanup and replacement. If you break a window or scratch a car whilst carrying your ladders, again your policy can cover the costs involved in repairing the damage.
Personal Injury
Claims for personal injury are less common, but they can be far more severe. Say you’ve spilt paint on a tiled floor, left to find something to clean it up with, and in the meantime the homeowner walks past and slips on the paint. If they suffer injuries, you may be found responsible for any medical costs and financial loss they suffer. Such claims can run into the hundreds of thousands, but this is the type of situation that your public liability policy can respond to.
Third Parties
It’s important to remember that public liability insurance is all about losses suffered by third parties. It does not cover damage to your own property, or injuries suffered by you or your staff. There are other forms of insurance to cover these risks, and your insurance broker can advise you on which policies are right for you.
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Trace My Business Keep a record of ALL your clients • • • •
•
Where the referral came from
The quote success and failure rates
•
Suburb comparisons
The different advertising campaigns
•
(what (wh works and what doesn’t) First projects vs repeat business
New vs existing revenue and projects
•
Yearly and overall client revenue
•
Growth analysis
Projects, who referred them, and the referrals they subsequently provided
Written and Developed by Jim Baker
We are Painters working with Painters to improve the industry. You receive information designed to assist in advancing your business practices and maintaining a high degree of professionalism. We keep painting businesses up to date on the latest government legislative changes whilst assisting you in running your business with tips and tricks to
SAVE YOU MONEY!
The Industry
Idiots
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Important Contacts Aussie Painters Network www.aussiepaintersnetwork.com.au
Ph. 0430 399 800
National Institute for Painting and Decorating www.painters.edu.au
Ph. 1300 319 790
Australian Tax Office www.ato.gov.au
Ph. 13 72 26 / Ph. 13 28 65
Award Rates www.fairwork.gov.au
Ph. 13 13 94
Fair Work Building & Construction www.fwbc.gov.au
Ph. 1800 003 338
Mates In Construction www.matesinconstruction.com.au
Ph. 1300 642 111
Workplace Health and Safety Contacts Comcare WorkSafe ACT Workplace Health and Safety QLD Victorian WorkCover Authority WorkCover NSW SafeWork SA WorkSafe WA NT WorkSafe WorkSafe Tasmania
www.comcare.gov.au www.worksafe.act.gov.au www.worksafe.qld.gov.au www.vwa.vic.gov.au www.workcover.nsw.gov.au www.safework.sa.gov.au www.commerce.wa.gov.au/WorkSafe/ www.worksafe.nt.gov.au www.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
www.actcancer.org www.cancercouncil.com.au www.cancercouncilnt.com.au www.cancerqld.org.au www.cancersa.org.au www.cancervic.org.au www.cancerwa.asn.au
(02) 6257 9999 (02) 9334 1900 (08) 8927 4888 (07) 3634 5100 (08) 8291 4111 (03) 9635 5000 (08) 9212 4333
Cancer Council Australia ACT NSW NT QLD SA VIC WA
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