Aussie Painting Contractor March 2022

How do I know if my Business Plan Works?

Does work accomplish the outcomes that your business require...

Working with your Inner Resistance Self-Employed

Tradies Checklist

Why do you want to be self-employed?

Customers

The people you can’t do without in business!

www.aussiepaintersnetwork.com.au

From the

Editor

Hey Everyone, Welcome to the latest edition of the Aussie Painting Contractor Magazine.

It’s been a massive start to the year and the workflows seem to be increasing in all areas within the industry.

Please remember to reevaluate your charge out rates whilst you have a good work flow ahead.

At the moment we have a Gold Membership Special.

Join as a Gold Member and you will receive a $100 Bunnings Gift Card.

There have been some unprecedented weather events occurring in the Eastern States and I wish everyone the best and please stay safe.

Remember, if you need any assistance we are here to help.

'Til the next issue...

Happy Painting!!

CONTRIBUTORS • Alexis Vassiley • Helen Key • Jim Baker • Leo Babauta • Monroe Porter • Peter Martin • Robert Bauman • Sandra Price EDITOR Nigel Gorman

Nigel Gorman

nigel@aussiepaintersnetwork.com.au

07 3555 8010

For assistance...

1800 355 344 07 3555 8010 @AussiePaintersNetwork on Facebook

GRAPHIC DESIGNER J. Anne Delgado

Advertise with us...

1800 355 344 07 3555 8010 info@aussiepaintersnetwork.com.au www.aussiepaintingcontractor.com

Contents 06

How do I know if my Business Plan Works?

12

Growing your business WITHOUT BORROWING

14

Australia cut unemployment faster than anyone predicted – why stop now?

18

Working with your Inner Resistance

20

Good Different

22

Self-Employed Tradies Checklist

28

Customers

33

PLAY IT SAFE

38

Why insecure work is finally being recognised as a health hazard for some Australians

44 45

The people you can’t do without in business

Why every business must have WHS Policies in the Workplace...

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.

How do I know if my

Business Plan Works?

6 | Aussie Painting Contractor

We’ve talked about reviewing your business plan for the new year in the last edition. But what happens next?

How do you know if you’re tracking well with your business plan and whether you’re hitting your targets?

This can best be done by developing Key Performance Indicators (KPI) that are suitable for your company and industry. There is no ‘one size fits all, and that’s the good news. So here’s a bit more about KPIs and how to use them.

KPIs are quantifiable outcomes that assist you to recognise how well your company is attaining its service goals. A lot of them compare a company’s progress towards reaching its long-term, calculated objectives or short-term tactical objectives versus a timeline, standard or relative sales as well as performances of other similar businesses in the exact same sector.

Not all KPIs are necessary and even handy for certain businesses. Developing the right KPIs requires matching them to your long-term strategies and short term goals.

Measuring is critical to overall business results Managers often discuss performance. There are targets as well as objectives to achieve - at a specific and also group level- to satisfy your company’s general goals.

However, how do you determine performance? Sure, you understand what your company is striving for, and you likely have data to back it up. But is everyone working on the right tasks? Does their work accomplish the outcomes that your team AND the business require?

KPIs can allow you to address these questions, by quantifying specific as well as company wide objectives, and assessing efficiency of your strategies as necessary. This article describes what KPIs are, what they do, as well as how to utilize them effectively.

What Is a KPI? A KPI is a quantifiable metric that shows exactly how well a business is accomplishing its stated objectives.

As an example, if one of your objectives is to offer exceptional customer service, you can utilize a KPI to target the variety of customer support requests that stay dissatisfied at the end of every week. This will measure your progress towards your objective.

KPIs link to the company vision and right down to individual action. A perfect situation is where KPIs cascade from the top to the bottom tiers in a business organisation. You can visualize this by thinking of your firm as a pyramid.

The pyramid has critical vision at the top, feeding down to specific activities at the bottom. In the middle you’ll locate the KPIs that have been derived from the approach, objectives, and also Critical Success Elements (CSFs) of your company.

CSFs are the areas of tasksin which your business hasto perform well in order to achieve success. KPIs are the methods through which these CSFs can be measured. The actions listed below the KPIs are the tasks and also jobs that you execute in order to achieve the KPIs. Made use of well, KPIs sustain your company’s objectives and approach. They permit you to focus on what issues matter most, and to monitor your development.

Covering all business areas Initially, your business requires to pick KPIs that gauge the suitable activity for each and every area of the business.

As an example, your gross profit margin is a common KPI for a business’s financial efficiency. It’s very easy enough to calculate (overall revenue minus overall expenditures), and also you know that the greater it is, the better the company is doing.

Others might be harder to determine. A customer fulfillment KPI, for example, might need meticulously constructed customer surveys to obtain the right amount of information. After that you’d need to choose what type of customer contentment score stands for the standard you intend to attain.

2021 December Issue | 7

Establishing Clever KPIs Whatever the nature of your KPIs, you require to make certain that they’re wise. This means: • Certain: be clear concerning what each KPI will gauge, and why it is very important.

• Measurable: the KPI should be measurable to a specified criterion.

• Achievable: you must have the ability to deliver on the KPI. • Relevant: your KPI should measure something that matters and also boosts performance. • TimeBound: it’s possible within an agreed period.

When you complete a KPI, it should fulfill all of these SMART requirements. As an example, “Get 5 new customers and increase sales value by 20% by the end of the second quarter of the fiscal year.”

Ask yourself when setting KPIs if they assist you to recognize the broad context as well as being efficient KPIs that are downstream: • What is your company’s vision?

• What’s the strategy for attaining that vision?

• Which metrics will suggest that you are successfully seeking your vision as well as technique? • What amount of metrics should you have?

• What should you make use of as a criteria?

• Just how could the metrics be cheated, and exactly how will you guard against this? Tips on measuring business performance

Likewise, establish how you will aggregate the information, and just how frequently. Sales information can generally be gathered daily, for instance, whereas KPIs that need data to be collected from a variety of sources could be much better measured once a week or monthly.

You’ll also need to validate the data to see that it’s precise, reliable, and covers all the requirements of your KPI. Final Thoughts Communicate KPIs clearly to everybody concerned.

If you are in charge of a team or company’s KPI, ensure that your staff know exactly how each KPI influences their work, and that they understand which activities to concentrate on.

You might have the ability to establish a performance dashboard, or make use of a well balanced scorecard to measure progress effectively.

If you need any support with reviewing your business systems and performance monitoring tools, call my office on 3399 8844 and we will give you a FREE Business Systems Check. You can also visit our website at www.straighttalkat.com.au and complete your details on our Home page to request a free appointment.

When you’re determining which KPIs to set up, plan how you’ll record the information you need. Determining revenue and gross profit needs a different set of data than consumer contentment, for example, and needs access to various systems.

2021 December Issue | 9

10 | Aussie Painting Contractor

2021 December Issue | 11

Growing your business

WITHOUT BORROWING

12 | Aussie Painting Contractor

Taking out a business loan may be your first plan of action for financing business growth. But there are excellent reasons to consider other options for finding capital to expand your business.

For one, it can be very difficult for a small business to secure financing, especially in the early days. You’ll need to prove to a lender that you aren’t a high risk, with financial documentation that shows your company has been profitable for a few years.

When you take out a loan you’ll need to consistently make payments toward the principal, interest, or both, depending on your agreement. If for some reason you can’t make your payments, the problem can snowball from losing the assets you pledged as collateral to more devastating losses, including bankruptcy.

Consider these four ways to finance growth without approaching a lender for money.

Ask for pre-payment This option is as simple as asking your customers to pay you in advance of receiving your products or services. Explain that you are changing your payment policies and your new terms are that you receive payment on the first of the month, at the beginning of a project—whatever works for you. As the owner of your business, you get to decide when and how much you need to be paid in order to deliver your products and services.

On a related note, you might consider using a subscription model for a new income stream. Some possible subscription-based services with a recurring pre-paid fee are: • a password protected website offering valuable info and community for your customers

In addition to providing an inexpensive source of financing, crowdfunding allows entrepreneurs to gain market validation for a new idea before over investing—and provides an opportunity to market to potential new customers. You’ll be able to start selling before your new product or service is ready so you can continue to avoid the small business debt trap.

Form an alliance Partnering with other businesses is mutually beneficial: each company can increase their sales by introducing each other’s products and services to their own customers at no added cost. You can potentially attract brand new customers, too, by increasing your range of offerings by way of your alliance.

Likewise, a marketing alliance is a simple strategy where two companies agree to spread the word about each other’s products and services with their customers. Each partner would earn royalties on sales to the other partner’s customers, bringing in easy growth revenue without any additional marketing or advertising costs.

Final thoughts As you move forward with your next phase of business growth—no matter how you fund it—be sure to touch base with a business advisor. Seeking the guidance of experienced business experts who can help you update your business plans, and choose the best strategies to cut costs, increase profits, and achieve your short and long-term goals, will lead to greater success.

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• a monthly service membership website (i.e. beauty, dry cleaning, home maintenance) • box kits for DIY enthusiasts (i.e. cooking, crafting, and other hobbyists)

Try Crowdfunding Crowdfunding campaigns connect individuals with a community of willing donors via a platform such as Kickstarter, Fundable, or Indiegogo in exchange for some reward.

Sandra Price

www.tradiebookkeepingsolutions.com.au Facebook : Tradie Bookkeeping Solutions

2021 December Issue | 13

Australia cut unemployment faster than anyone predicted – why stop now?

If you told someone a year ago unemployment was about to dive below 5%, to just above 4%, they wouldn’t have believed you.

push up interest rates too late and too hard to crush it, bringing on a recession.

If that person was an expert, and you said it would happen despite a Delta outbreak and lockdowns in our two biggest states, they might have said you had little idea of how the economy worked.

In their sights are the Reserve Bank’s ultra-low cash rate and the government’s A$7 billion per year tax offset, introduced in 2018 to provide tax relief ahead of the more comprehensive tax cuts now in effect, then extended twice to support the economy during COVID.

At the beginning of last year, The Conversation asked 21 of Australia’s leading economists what would happen in 2021 and 2022. At the time, the published unemployment rate was 6.6%.

Removing them – removing the economic support set to push it down to where it hasn’t been in half a century – is said to be essential in order to bring down government debt and avoid disastrous inflation.

None of them thought it would slip below 5% in 2021 or 2022.

Governor relaxed Reserve Bank Governor Philip Lowe dealt quickly with the idea of cutting back government support to reduce government debt on Friday.

Asked when the unemployment rate might eventually even touch 5%, none nominated 2021. Only two nominated 2022. The rest picked dates years into the future. Three picked “not for the foreseeable future”.

Six months later unemployment was 4.9%, six months after that it was 4.157%.

And yet many experts – many of whom use the models that failed to foresee how quickly unemployment would fall – are now using the same models to warn against doing too much to push it down further.

Experts concerned

They are worried about absurdly high inflation along the lines of the 7.5% now being experienced in the United States and the danger that authorities will

14 | Aussie Painting Contractor

Reserve Bank Governor Philip Lowe, giving evidence on Friday. Mick Tsikas/AAP

2021 December Issue | 15

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We will be interviewing and discussing all things you need for running a profitable painting business.

thepainterspodcast.com.au

16 | Aussie Painting Contractor

He told a parliamentary committee that while this was an option “conceptually”, a better idea would be to use government spending to grow national income quickly so the debt-to-income ratio shrank.

That’s the way the debt-to-income ratio has been shrunk in the past – by expanding national income through, among other things, putting more people into jobs.

Dr Lowe also has ideas about tightening settings to stymie inflation, which don’t accord with those of the experts who warn of a US-style takeoff in inflation if we eat further into unemployment.

The case for caution was summed up this way by economist Andrew Charlton on Radio National’s Saturday Extra a few weeks back:

Reserve Bank chief economist Luci Ellis.

Running the economy is a bit like driving a car around a racetrack. You want to go as fast as you can, but you don’t want to go too fast or you will crash.

On Friday, Reserve Bank chief economist Luci Ellis said if there was a floor under unemployment that couldn’t be breached without setting off an inflationary spiral, that floor was not “set in stone”.

Go too fast and you’ll get rising inflation, authorities will be forced to lift interest rates quickly, and you’ll bring on a recession. Ease off on boosting employment – be less ambitious – and you won’t crash.

One of the reasons is that as people previously unemployed become employed, the floor of people employers regard as unemployable sinks.

It’s the way many of those who responded to The Conversation’s survey see it. It’s the way many economists with eyes on the US see it. But it isn’t the way the governor sees it.

The longer the Reserve Bank and the government’s budget keeps supporting the economy, the lower the floor will sink and the fewer Australians will be kept unemployed.

Dr Lowe told parliament last week that Australia was not the United States.

Dr Ellis said while her model was telling her the floor under unemployment was 5%, it was not “the right way to think about it”. The floor might be four-point something, it might be three-point something. Until we get there, we won’t know.

Australia is not the US In the US, utility prices jumped 25% over the past year. In Australia it was 2%. In the US new car prices jumped 12%. In Australia it was 6%. The US price increases are largely one-offs caused by shortages. In Asia, inflation has scarcely moved.

In Australia wage growth is no higher (at 2.2%) than it was before COVID, even though unemployment is dramatically lower. That’s because, unlike the US, Australia kept workers in their jobs through JobKeeper and measures to keep jobs safe. Employers haven’t had to offer more to get workers back.

The Reserve Bank’s model says inflation should be climbing much higher than it is with unemployment as low as it is. That that hasn’t happened suggests the model is wrong.

Given that we are in uncharted territory we owe it to ourselves to chart it. This is the Reserve Bank’s view, and it might well be the government’s view.

We owe it to ourselves to see just how low unemployment can be.

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Peter Martin

Visiting Fellow, Crawford School of Public Policy, Australian National University

2021 December Issue | 17

Working with your

Inner Resistance When we’re feeling some inner resistance to a task, we tend to put it off — check email, social media, our favorite distractions or busywork. We all do it.

We often turn it into something bad: I suck for not being disciplined, I suck for not being able to focus, I’m not strong enough, etc etc. But it’s just a part of being human — we all have fear, uncertainty, doubt, resistance built into our survival instincts.

The trick is not to judge the resistance, but to work with it.

Let’s talk about how to work with resistance. But first, let me make some distinctions clear.

Important Distinctions When Working with Resistance

There are some things we need to make clear before we start: Sometimes we have resistance to things that are harmful to us — being abused, doing something actually dangerous, putting ourselves in harm’s way.

This is resistance to be listened to. If you are going

18 | Aussie Painting Contractor

to be harmed by doing the thing you’re resistant to — listen to the resistance. What we’re talking about here is resistance to things we actually want to do, that would be helpful to us. So ask yourself: would it be helpful or harmful to work with my resistance?

Sometimes it’s helpful to indulge the resistance — to put something off and tackle a bunch of other tasks.

Let the ideas simmer. Go for a walk and let things percolate. Talk with others about it. What we’re talking about here are the times when you’d like to actually take on the resistance. Ask yourself: would it actually be helpful to put this off for a bit?

There is no right or wrong here. You’re not bad or wrong for feeling resistance, nor for putting things off. You’re not “better” for taking on the resistance.

There is no response to the resistance that is right or wrong. It’s all about what you’d like to do. So ask yourself: what do I really want here?

If you asked yourself the questions above, and the answers point to actually wanting to do the task, and working with the resistance to doing the task … then great! Let’s talk about how to do that.

How to Work with Inner Resistance

The framing of this is key: we’re not trying to battle our resistance, conquer it, destroy it, defeat it, vanquish it, or any of these violent terms. We’re working with the resistance — like a teammate. That’s a key distinction because it’s a shift in the way most of us relate to our resistance — we usually think of it as bad and something we need to either avoid or get rid of. What if it could be an ally?

If we can start to take on this mindset, things become a lot more open, instead of tensed and stressful.

With that mindset … here’s how to work with the resistance: Notice: The crucial first step is just to notice that you have the resistance. You might not notice how it feels, but you’ll notice that you’ve been putting off or avoiding something. Can you notice in the moment when you’re actually turning away from it? Can you catch yourself in the act of avoiding or putting it off?

This is where the magic happens, if you can catch the resistance as it’s happening.

Get curious: Once you’re aware of the resistance as it’s happening … pause for a moment, and bring your curiosity. What does the resistance feel like? What sensations are present, and where are they located?

Do the sensations change, are they unbearable or intense or easy to be with? What can you learn about this sensation of resistance?

Allow: Once you’re present to the sensations of resistance, in the moment … see if you can just allow

the resistance to exist in you, without needing it to change or be fixed. Could you just allow it to be? Can you relax with the resistance?

See it as an ally: What if the resistance, instead of being something to avoid, were a friend along for the ride? What if it were a teacher, showing you something about what you resist? What if the resistance were a sign, that you’re doing something meaningful, a sign encouraging you to move towards this task? What if the resistance could help you along the journey?

Move towards the task: Finally … if the resistance is something you can bring awareness to, get curious about, allow to exist, and be an ally on your journey … can you allow it to coexist with you as you actually start doing the task? You don’t have to complete the task, but maybe you could move towards it, do the first step, start to take action even with the resistance still with you. Get curious about what this might be like.

It’s as simple and as challenging as that!

Imagine practicing with this, repeatedly, until you got good at this. Could you become a master of working with resistance?

I encourage you to join my Fearless Living Academy and learn to work with the resistance of your habits and meaningful work, along with many others on a similar journey of training ourselves.

Leo Babauta ZEN HABITS 2021 December Issue | 19

Good Different Are you Different?

Let me ask you this question, Say you are quoting on a job and there are 2 other contractors also quoting on the same job.

All the quotes are almost the same amount. What have you done to make yourself stand out from the others?

What makes you a better choice?

Did you turn up on time? Did you look clean and tidy? Did you supply a small portfolio of your work?

Did you ask the right questions to make sure you understood the customer’s requirements? Did you hand-deliver the customer’s quote?

If you were the customer, would you pick yourself over the others? If not, What do you need to do next time to make you stand out in a good way?

Get out there and sell yourself.

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. Strong sales professional with a cert 4 in Business Management and a Cert 4 in Colour consultancy.

20 | Aussie Painting Contractor

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2021 December Issue | 21

Self-Employed Tradies Checklist Should you start your own business as a self-employed tradie?

It’s a question that thousands of tradies ask themselves every year. Should they keep working for a wage, or take the risk of going out on their own?

The answer will depend on a wide variety of factors.

We’ve put together a list of those factors to assist with your decision making.

You can think of the following headings at a checklist.

Go through each one, have a good think and answer them honestly, then decide whether or not you still feel comfortable about going it alone in your trade.

Note: This checklist is for tradies considering the switch to self-employment. If you’ve already made the choice, you’d be looking for an entirely different checklist that is more practical in nature. We’ll work on that checklist next…

Why do you want to be self-employed?

This is the first question you need to ask yourself.

The are no real right or wrong answers, but it will get you thinking.

Here are a few possible answers: • • • • •

I want to earn more money I want more flexibility I don’t like my boss I think I can do it better It’s just time

22 | Aussie Painting Contractor

There will be plenty more, but these are probably the most common ones.

Let’s take a closer look at each one: I want to earn more money This is a very common reason for a tradie wanting to go out on their own.

You see that your boss is making good money, or has an expensive house, ute, toys etc, and you want some of that for yourself.

Or maybe you see what your employer is charging you out for, and you want more of that money for yourself rather than making more money for the boss.

These are completely valid thoughts, but remember that your employer is doing a lot to earn that extra piece. They are taking on the risk of finding you work, of paying your wages and super, and the overall risk if something goes wrong on the job.

So if you want to earn that extra cash that you think your boss is making out of you, just remember that you need to accept the extra risk that comes with it too.

That’s not a bad thing at all. You might find that you really thrive with the added responsibility and risk.

It’s not easy, but it can be rewarding in more ways than just financially.

I want more flexibility This is another very common reason. Being your own boss means setting your own hours, which can be especially tempting when you have a young family to spend time with.

But if you see your boss enjoying all this flexibility and having time off, just remember that it might have taken many years to build their business up to that level.

If they have plenty of great contacts keeping the work flowing in and an admin staff keeping the paperwork under control, of course they will have a little extra spare time.

If you’re going out on your own and need to constantly chase new work to keep the money coming in, and spend half the night doing paperwork, you might find yourself with less flexibility than you had as an employee.

But that’s life as a newly self-employed tradie right?

You have to start somewhere and do the hard yards to get to the point your boss might be at. Just remember that the flexibility and working hours might actually get worse before they get better.

I don’t like my boss Don’t laugh as this is probably more common than you think!

Maybe you love what you do, but you just don’t like the boss you’re doing it for.

Have a good think first before jumping, because unless you’re cut out for life as a self-employed tradie, you might be better off finding a better boss rather than going out on your own.

I think I can do it better This is another interesting one. As with the reason above, you might love what you do, but you just think you can do it better than your current employer.

You could always tell your boss or employer about your ideas, but maybe you’d prefer to use those ideas for your own benefit rather than your employer?

Have a good think about this one. Just because you can do something better doesn’t mean you’ll be a success running your own trade business.

But, if you genuinely can do it better and you have the skills to run a business, it could be a great opportunity.

It’s just time For many tradies it’s just the natural progression.

You’ve completed your apprenticeship, you’ve done a few years working for the man and now it’s time to be your own boss.

This is another perfectly valid reason, but make sure you’re still ticking all of the boxes that we’ll run through in this article.

Where will you get your business from?

Cash is the lifeblood of any business. If you’re not bringing in cash you’re not going to last as a self employed tradie for long.

An ASIC report from 2012 indicated that 40% of businesses that failed did so due to cashflow issues. That report is a little old now, but cashflow has been the same important issue forever.

So you need to be consistently bringing in work to keep you busy and paid. Sure this seems obvious, but the majority of trade businesses that fail, fail because they couldn’t keep the work coming in.

There are two mains ways that a self-employed tradie will operate. Either you’ll subcontract to a few builders, or you’ll get your own jobs direct from the public.

Subcontracting to builders can be a great way of keeping the work flowing in, but your day-to-day working life mightn’t be much different to being an employee.

The other option is getting work directly from clients.

This is more common for electricians and plumbers who can pick up maintenance work.

As a start-up trade business you’ll probably take work however you can, but the main thing at this point is to have a plan. Don’t think that a Google listing and some stickers on your ute will have the phone ringing.

If you’re unsure how you’ll find enough work to keep busy, have a good hard think about it before you quit your job.

2021 December Issue | 23

Do you have the required business knowledge?

You could be the greatest carpenter in Australia, but if you don’t have some basic business knowledge you won’t be able to build a successful business.

You don’t need to enrol in a Bachelor of Business course, but you need to know some basics around cashflow, budgeting and quoting before you start.

And remember that on top of all these extra responsibilities you’ll still have to work just as hard on the tools.

In fact, during the early years you’ll probably have to work even harder on the tools than you did before.

If you’re someone who enjoys extra responsibility and pressure you might thrive in self-employment.

But if you’re someone who is easily stressed, then it’s probably not a good option…

Who is depending on you?

Of course you can pay professionals to look after all of this for you, but for most start-up trade businesses it simply wouldn’t be feasible.

Given that half of all new one-person businesses fail within the first three years, there is a strong chance that your business won’t go the distance.

As a self-employed tradie you need to be an allrounder who’s just as handy on a spreadsheet as you are with a nailgun.

If you’re in the 50% that don’t make it, who is relying the income you’re supposed to be generating?

If you’re a young single with no dependants and no mortgage, the financial risk of quitting your job, then trying and failing in self-employment, might be low.

Do you like responsibility?

A lot of added responsibility comes as a trade business owner.

As an employee tradie you’ll probably have all your jobs lined up for you, you’ll have materials supplied, most of your paperwork will be looked after and ultimately you’re not legally responsible in the same way that your employer would be if things went pear-shaped.

Switching to being a self-employed tradie means all of those responsibilities now sit squarely on your own shoulders.

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But what if you have a mortgage and a family who rely on your income? Throwing in that steady job to chase the business dream is a pretty big risk.

That extra responsibility might be what pushes you hard enough to make the business a success, or it might just bring added stress and pressure that only makes it harder to make the business work.

The easiest way to mitigate this risk, aside from being very well prepared, is to put aside a big chunk of money to get you through.

2021 December Issue | 25

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You might still fail, but at least you’ve still had money aside to keep the family fed and the mortgage paid.

One thing you should never do is switch to self employment to get out of financial trouble. If you’re already struggling, there is a far greater chance that going out on your own will only make things worse rather than better.

Is the timing right?

Timing is everything right? There are so many factors that can affect the timing for a tradie to start their own business.

Is the economy strong? Is the building industry going well? Is it the right time of year?

All of these factors seem relevant, but in our opinion, your own ability to build your business will trump each of them.

Someone who is weak as a business owner is probably going to fail regardless of how good conditions are, and someone who is strong is probably going to succeed regardless of conditions.

A strong performer might succeed sooner by starting in good times, and a weak performer might last a little longer during good times, but the inevitable will probably still happen at some point during the cycle.

If there was a perfect time to start a business, it’s probably when you have the lowest level of responsibility in your life.

Having no mortgage to worry about and no kids to feed will free you up financially. This could be when you’re young and have no mortgage or kids, or it could be when you’re older and the kids have left home and the mortgage is paid off.

Is it worth the risk?

I’m writing this article as the founder of Trade Risk, so my answer is going to be yes of course!

I took the risk and started a business from scratch when I was 31 years old, and almost a decade later there’s not much I would have changed.

Mine is an insurance brokerage rather than a trade business, but many of the fundamental risks are still the same. It has been incredibly stressful at times, but also very rewarding. You need to persevere through the good times and the bad times if you’re to have any chance at building a successful business in any industry.

You need ask yourself though if it’s worth the risk for you. What’s your risk tolerance like? If a small amount of risk can get you stressed and anxious, then it’s probably not worth it.

Before you start you need to do everything you can to minimise the risk of failure for your trade business. Getting across the following will definitely help: 1. Know that you’re doing it for the right reasons 2. Know where your work is going to come from 3. Know that the work is going to generate sufficient cashflow 4. Know how to manage the business side of your business 5. Know who’s depending on you and how you won’t let them down 6. Know that the time is right for you Of course you can’t really “know” each of those 100% for sure, but at least get to a point where you’re comfortable with each of them.

Doing it when you’re older means you have the added benefit of wisdom and experience, but you’re also closer to the end of your career, which gives you less time to build and enjoy your business.

Doing it when you’re younger means you might not have all the necessary wisdom and experience, but sometimes being a little naïve in business can allow you to take the risk you need to take in order to succeed. It’s a fine line though!

www.traderisk.com.au 2021 December Issue | 27

Customers The people you can’t do without in business I’m going to cheat this month and use an article I came across a few years ago. It is so true and something I had in place in my business and, (in my opinion) was one of the reasons why I became successful.

“If you want to create a real competitive edge in your business, start focusing on your customers. It sounds obviously simple, but the fact is most businesses continue to focus on what value they can get as opposed to what value they can give.

But when you start to focus on your customers and what they want and need, you create better products and services, generate more business opportunities and sales, develop more loyal customers and increase your referrals.

So to ensure you are reaping the benefits and profits of giving value, here are six tips to help you create a more customer-focused business.

28 | Aussie Painting Contractor

1. Stay connected to the needs of your customers Your business success is directly determined by how connected you are with your customer and their needs. As a business owner it can be easy to fall into the trap of offering, stocking or doing what you want instead of considering what your customers want, but it’s one of the fastest ways to limit your growth.

2. Anticipate future needs and trends While meeting your customers’ current needs is important, in order to future proof your business and really establish your point of difference you also need to anticipate their future needs. Ask yourself, what will my customers want from my products or services in three, five or ten years? What new trends or technologies are going to impact on how they use my products or services? What is not yet being offered that would benefit my customers?

3. Write your marketing from your customer’s perspective “You” is one of the most powerful marketing words you can use. Not only does it help your reader connect with you when the read or hear your content, when you continually write from the angle of “you” instead of “we” you stay in the mind of your customer and can more easily identify and anticipate their needs and wants.

4. See your customer as a friend not a sale One of the smartest things you can do in your business is to stop selling and start serving. When you change your approach from “how much can I get out of you” to “how can I help you" your customer’s guard comes down, they relax and start to open up to you.

5. Stay in regular contact To build a relationship with your customers you need to stay in regular contact with them, but not just through newsletters and email marketing, genuine, personal contact. Talk to them to see how they are going. Keep in touch in a way that makes them feel valued.

6. Always add value

It could be as simple as taking the time to answer all of their questions, giving them an added bonus, sending them a book, resource or opportunity that you know they would benefit from, or having their favourite coffee and snack when they come to meet you.

Always be looking at how you could be adding value to each of your customers in order to make their experience with you even more memorable.”

--Source: Amanda Jesnoewski, StartupSmart.com,au

In the 36 years of being self-employed and running a business, I was hardly ever out of work. The reason being was my relationship with my existing customers.

If you neglect them, someone else will be happy to take them off you. Remember: A majority of customers leave due to perceived indifference – they think you don’t care! So instead of focusing all your efforts chasing new clients, look at the ones you already have because it is six times more expensive to find a new customer than it is to keep an existing one.

Jim Baker

www.mytools4business.com

One of your goals in business should be to give your customers what they can’t get anywhere else, or in a way they can’t get anywhere else.

2021 December Issue | 29

Even LOW level of lead is

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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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SAFETY ON SITE

IT'S ALL ABOUT SURVIVAL As processes become faster, deadlines get tighter, and customers demand greater efficiency, the worksite has become a hectic hive of activity.

But these increased expectations can make it all too easy to cut corners, and the safety of Aussie job sites is now more important than ever before.

L-R: SURVIVAL's Director of Marketing & IT, Jordan Green, and CEO Mike Tyrrell

WORKPLACE SAFETY: WHY NOW? Organisations have become more accountable to their customers, shareholders, and employees.

Increased safety improves the bottom line, and the links between a safe working environment and enhanced productivity are proven.

Safer workplaces result in better processes, because it sets the standard for greater efficiency and increased ingenuity all ‘round.

Above all, it saves lives. Workplace safety increases productivity, makes organisations accountable, and protects the entire team.

32 | Aussie Painting Contractor

SafeWork Australia recorded 194 worker fatalities in 2020 alone, with machinery operators and drivers representing the highest number of fatalities, and labourers, managers, and technicians and trades workers close behind.

That’s why SURVIVAL - a 33-year, Aussie family business is dedicated to ensuring every worksite has the right first aid equipment on hand.

“It’s clear that worksites need to ensure they’re never caught short, because when you’re in the trades industry, the chances of accident or injury are very real,” says SURVIVAL’s CEO, Mike Tyrrell.

“And despite the latest advances in technology and an increased awareness of the associated risks, these sobering stats from

SafeWork Australia show us that even more needs to be done.

“We know that providing immediate, effective first aid to people injured on the job can reduce the severity of their injury or illness.

“And even more than that – it can save your life, or that of a mate,” adds Mike.

SURVIVAL’s Director of Marketing & IT, Jordan Green, says the company is constantly looking at ways to make first aid more accessible for people in trades and other 'hands-on' professions.

“In addition to our line of first aid products, we’ve just released the latest update to our free iFirstAid app, which features step-by-step instructions and video resources to guide people, including trade professionals, through common emergencies,” says Jordan.

“Our SURVIVALSWAP audit compliance program also ensures worksites remain stocked and compliant – without the headaches or hassle.”

For the best first aid for your workplace, visit survival.net.au

Exclusive discount just for APN readers: get 13% off all SURVIVAL products sitewide!* Visit survival.net.au and use code 'APN13' at checkout. *Offer ends 31 March 2022. Excludes defibrillators.

PLAY IT SAFE

Why every business must have WHS Policies in the Workplace...

Shockingly, an Australian worker is seriously injured every 2-3 minutes. Workplace Health and Safety (WHS) Policies and Procedures are extremely important to implement in your business and should never be overlooked. As a business owner, you do not want to see any of your workers get hurt, nor do you want to be a man (or woman) down. WHS Policies and Procedures help to minimise risk and will also protect you and your company if a worker was ever seriously injured, or worse.

THE LAW

Furthermore ‘officers’ of a business (business owners or those who make decisions that affect the business) must exercise due diligence and make sure the PCBU complies with its health and safety obligations. So, if you are an officer (Owner/Director) you are ultimately liable, so as far as is reasonably practicable, for managing the health and safety of all your workers.

The WHS Act provides for three categories of offences for breach of health and safety duties and outlines the maximum penalties that apply to the different people involved.

It is in fact a legal requirement that you have such policies in place to minimise the risk of injury in the workplace. WHS Acts have been implemented in most jurisdictions across Australia to create a nationally consistent framework to secure the health and safety of workers and workplaces.

Category 1 – a duty holder engages in conduct that recklessly exposes a person to a risk of death or serious injury or illness. This offence is a crime and will be prosecuted in the District Court.

The primary duty of care falls on businesses when it comes to WHS. This means that if a worker is injured, responsibility falls on the person in control of the business or undertaking (PCBU). i.e. directors and management. A ‘person conducting a business or undertaking’ (PCBU) is a broad term used throughout work health and safety legislation to describe all forms of modern working arrangements, which we commonly refer to as businesses.

Category 3 – a duty holder fails to comply with a health and safety duty. These offences will be taken summarily in the Magistrates Court.

Category 2 – a duty holder fails to comply with a health and safety duty that exposes a person to risk of death or serious injury or illness.

2021 December Issue | 33

INDUSTRIAL MANSLAUGHTER

The Consequences can be Severe

identifying, assessing and dealing with risk. Risk control measures could prevent workplace accidents and injuries to keep you and your workers safe.

If you do not comply with WHS regulations, there are very serious consequences that can affect you personally. Last year (2020) saw Queensland’s first ever industrial manslaughter conviction. A Brisbane worker was killed in a tragic workplace accident at a wrecking yard in Brisbane. Another worker was operating a forklift without the appropriate licence and with no safety barriers in place when he struck and killed his colleague.

Investigations found that: • there were no written safety policies or procedures within the workplace; • no safety systems were in place; • the company directors did not check the workers’ licences to operate machinery and simply relied on their verbal assurance; • there was no sufficient assessment of the workers competency to operate a forklift; • there was no traffic management plan on the worksite; and • there was no real attempt to assess and control the risks.

It is time to make WHS a fundamental part of running your business and make it standard practice for all workers. Luckily, we have you covered! Book in a free call with us to assess your legal risk and discuss our great Fixed Fee packages.

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As a result, the directors of the company were convicted (each received a 10-month jail sentence) and the company was fined a whopping $3 million.

What you need to do ..

Let’s Talk! A free consultation with us can help to tackle your legal issues.

HSE Consequences Protect Your Workers From Injury (And Protect Yourself From Liability)

Typical Legal Disclaimer!…

Unfortunately, there is never a ‘one size fits all’ formula to apply. Every situation is unique and it can be tricky to wrap your head around some areas of the law. To ensure you are setting yourself and your business up for success, it is always best to consult a legal professional with expertise in the field.

If you require any assistance with Licensing your business or any other commercial legal issue, please do not hesitate to contact me.

No matter the size of your business, you must implement OHS policies within the workplace. Due diligence requirements are set out in the WHS laws. For example, the Work Health and Safety Act 2011 (Qld) requires that there are appropriate practices or systems of work in place as well as actively monitoring and evaluating health and safety at the workplace.

This way, workers are aware of the appropriate safety standards and procedures and there is a process for

P: 0402 318 033 | E: helen.kay@riselegal.com.au

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Why insecure work is finally being recognised as a health hazard for some Australians

About 3 million Australian workers lack job security.

An estimated 2.4 million – 20% to 25% of the total workforce – are casual workers, with no paid leave entitlements. A further 500,000 are on fixed-term contracts.

Whether you are labourer engaged by a labour hire company, a checkout operator, a ride-share driver or a university lecturer on a casual contract, job insecurity can harm both your physical and mental health.

In an Australian first, Western Australia has formally recognised this in its new Code of Practice on Psychosocial Hazards in the Workplace, which provides practical guidance on how WA workplaces can comply with their duties under the state’s Occupational Safety and Health Act 1984 A psychosocial hazard refers to any social and organisational factor with the potential to cause psychological or physical harm. In terms of work, it’s anything in the design or management of work that can cause stress.

Better recognition of such hazards was recommended in 2018 by the Boland Review into the “model” laws,

38 | Aussie Painting Contractor

regulations and codes that underpin uniformity between Australia’s state and territory work health and safety regimes.

Australia’s federal, state and territory ministers agreed to this recommendation in May 2021. Since then, most states and territories have updated their regulations or compliance codes.

Western Australia is the only one so far to include insecure work. It’s a step in the right direction. For real progress, though, all states and territories need to follow suit – and then follow up with laws to safeguard more secure work.

What are psychosocial hazards at work?

The World Health Organization lists ten psychosocial hazards at work. These cover issues including high uncertainty in job content, lack of control, lack of support and job uncertainty.

Exposure to such hazards over a prolonged time increases the risk of acute and severe mental or physical injury.

A Y E 0 5 ARS

O H

A P I N E S TER U

To know more about this book, Visit our websit today! www.mytools4business.com

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.’

2021 December Issue | 39

40 | Aussie Painting Contractor

As noted in our centre’s submission to the WA government – in which we recommended including insecure work in the new code – most of the ten hazards listed above go hand in hand with insecure work.

For example, hazard number three – work schedule, including unpredictable hours – applies to the majority of Australia’s casual workers, with 53% having work hours (and thus income) that fluctuate from one pay cycle to the next.

Job insecurity exacerbates the hazards that also affect those in permanent employment, such as work load (hazard 1), lack of control over work (hazard 4) and lack of career opportunities (hazard 10).

Worse health and safety outcomes A growing body of research shows insecure work is a health hazard.

Two of Australia’s leading experts in this field, Michael Quinlan at UNSW Sydney and Elsa Underhill at Deakin University, have told the current Senate in-

quiry into job security there are three major negative outcomes: • higher incidence/frequency of injuries, including fatalities • poorer physical and mental health (such as from bullying) • poorer knowledge of, and access to, employment rights and less willingness to raise concerns.

Fear of losing work is a powerful disincentive against complaining or using rights available to them. For example, a 2021 survey of 1,540 workers by the Australian Council of Trade Unions found: • 40% of all insecure workers said they had worked while unwell because they didn’t have access to paid leave • 67% of those who worked through an ailment, rather than taking time off, said they feared taking leave would affect their job (compared with 55% of permanent workers) • 50% of those who were sexually harassed took no action because they feared negative consequences (compared with 32% of permanent workers)

2021 December Issue | 41

Are codes of practice legally enforceable?

Codes of practice are part of the three-tier framework regulating employers’ obligations to maintain a safe workplace.

At the top is legislation, which broadly defines responsibilities, then regulations, then codes of practice. These codes are practical guides for industries and businesses on how to achieve the standards required under the laws and regulations.

Codes do not have the same legal force as a regulation, but can still be used by courts to assess if an organisation has taken the “reasonable steps” required by law to ensure a safe workplace.

Some codes relate to specific types of work or hazards, such as handling dangerous chemicals. The new WA code on psychosocial hazards applies to all workplaces.

From recognition to change Including insecure work in WA’s code is unlikely to change much in the short term.

In theory it should mean organisations employing casual or contract workers undertake a risk-assessment process, then implement controls to manage those risks.

There is a hierarchy of risk controls in work health and safety protocols.

At the top is eliminating the risk. This would see employers convert as many employees to permanent status.

Lower down the hierarchy is reducing the risk. This could be done by giving casual workers as much notice of shifts as possible, ensuring more predictability with their schedule and more stability with their income, or higher pay rates to partly make up for some of these hazards.

Will these things happen? Probably not. In practice, codes of practice alone don’t bring change. Provisions providing a pathway for casual or fixed-term employees to permanent status, for example, already exist in many enterprise agreements, but employers often find ways to avoid honouring them.

Real change will require legislative reform or an increase in union strength.

Some countries in Europe, for example, now have laws limiting the numbers of temporary agency workers and those on fixed term contracts. Such laws also need to be backed up by enforcement mechanisms – notably vastly increased resources for regulators.

Read more: Uber might not take over the world, but it is still normalising job insecurity The WA government’s new code of practice represents an important first step within Australia’s industrial relations landscape. Formal recognition of insecure work as a health hazard should act as spur to further reform.

Insecure work is widespread. We know what’s wrong with it. It’s time to do more about it.

---------------------------------------------------------------------------------

Alexis Vassiley Hierarchy of hazard controls Wikimedia Commons, CC BY

42 | Aussie Painting Contractor

Research Associate, Centre for Work and Wellbeing, Edith Cowan University

The portable, inexpensive method to prevent paint waste-water polluting the environment.

44 | Aussie Painting Contractor

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 December Issue | 45

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