The Value of Getting Sick The Origins of the PAINT ROLLER
How and when the ‘roller’ came to be.
Bookkeeping Basics
for Small Business Owners
Expanding Our Capacity to Be With Chaos We all have a limited capacity to be with chaos
www.aussiepaintersnetwork.com.au
From the
Editor
Hey Everyone, Welcome to the 108th Edition of the Aussie Painting Contractor Magazine. Firstly, I would like to congratulate Jim Baker on his 100th article in our Magazine. It is a mammoth effort by him, and it just shows how passionate about the painting industry he is. It was great to meet Scott from Paramount Painting when I dropped of his new QT290 Spray Gun. I look forward to hearing how it goes. APN have been awarded a Construction Skills Queensland CSQ contract for the next 12 months for our Trade Ready Program. It’s a five-week program to get unemployed people into the workforce as apprentices. If you are after more information about the program, go to www.paintingapprenticeships.com.au There seems to be a total shortage of painters around the country, we would suggest you consider getting an apprentice. With the school year about to end, now is the time to put out the feelers for someone to join your team. This gives you the opportunity to pass on your skills and knowledge to your next tradie and possibly your next supervisor.
Till the next issue, Happy Painting!! Nigel Gorman
nigel@aussiepaintersnetwork.com.au
07 3555 8010
CONTRIBUTORS
• Andy Smith • Anthony Igra •
jeffpainterguy
• Jim Baker • Leo Babauta • Monroe Porter • Peter Martin • Robert Bauman • Sandra Price • Vanessa Petch EDITOR Nigel Gorman GRAPHIC DESIGNER J. Anne Delgado
Advertise with us... 1800 355 344 07 3555 8010 info@aussiepaintersnetwork.com.au www.aussiepaintingcontractor.com
Contents 06 09
The Value of Getting Sick
Spreading yourself thin...
Building approvals are down, but still strong
24 28
12
The Origin of the Paint Roller
30
What is a High Performing WORKPLACE?
14
Bookkeeping Basics for Small Business Owners
18
CQT290 WINNER SPIEL
34
HOW TO SET UP Business Performance Monitoring Systems
44
The Warning Signs of NON PAYMENT
43
Delta is tempting us to trade lives for freedoms —
21
Do you send your customers Thank you notes? No, why not?
48 49
Expanding Our Capacity to Be With Chaos
a choice it had looked like we wouldn’t have to make
Industry Idiots Important Contacts
Opinions and viewpoints expressed in the Aussie Painting Contractor Magazine do not necessarily represent those of the editor, staff or publisher or any Aussie Painters Network’s staff or related parties. The publisher, Aussie Painters Network and Aussie Painting Contractor Magazine personnel are not liable for any mistake, misprint or omission. Information contained in the Aussie Painting Contractor Magazine is intended to inform and illustrate and should not be taken as financial, legal or accounting advice. You should seek professional advice before making business related decisions. We are not liable for any losses you may incur directly or indirectly as a result of reading Aussie Painting Contractor Magazine. Reproduction of any material or contents of the magazine without written permission from the publisher is strictly prohibited.
The Value of Getting Sick I know this seems like an odd statement but sometimes for an owner of a business, getting sick can be a positive thing. A forced owner absence can be good for a business. Owners work day and night to build their business and control details. As a business matures such control may not be as necessary as you might think. Jack Smith was a typical small business owner. He worked 6 to 6; coming home exhausted. Even though the business had become more successful, his work habits really didn’t change, they were just more spread out. He kept his fingers in many of the business’s details. He enjoyed working and it was a lot of his identify. Jack had a serious car accident. He spent two weeks in the hospital and two weeks flat of his back at home. He was too sick to go to work but finally was able to return part time. In the beginning there were lots of hugs and back slaps. As time passed, he reflected on the impact of his absence. Here are some things he discovered. Everything went pretty well without him. In fact, many of the segments of the business where he had always kept his finger in the pie, ran very well without him. For day-to-day tasks, long term employees knew how to do their job. He also discovered that
6 | Aussie Painting Contractor
much of his worry and involvement was habitual. He had always done it that way, so he just kept on doing it. While it felt odd not to be as active in these daily mundane responsibilities, he discovered his effort was not producing a return on his time. He also discovered that life is short, and he needed to find outside interest. Nothing like facing your mortality, to help you revise priorities. Working all the time with few non-work-related activities was not as satisfying as it once was. His business had dominated his life and now he had worked himself out of a job. He also determined that he needed new purpose in and outside of his business. Business activities require a goal, strategy, thinking and purpose. Long term, he believed he would not be happy just playing golf or fishing. In fact, he now found mundane work-related activities boring. It was the problem solving and strategic side of the business he truly enjoyed. He also unexpectedly discovered that he missed was work socialization. He enjoyed working with his managers and employees. It was good to be back at work because he had gotten lonely. Owning a business can feel lonely but total health related isolation can create an entirely different sense of loneliness. People need interaction to survive.
While the business ran day-to-day, it struggled strategically. Several income possibilities were missed, a good customer left, etc.; all of which he could have creatively solved. Management was not the issue; it was leadership and direction that was missing. Employees were slow on the uptake when opportunities presented themselves.
My family beagle was injured while chasing the garbage truck. As I took him to the vet, I looked down and wondered what he was going to do when he caught the garbage truck? Your role as leader of your organization is to ensure that mid-level managers and other employees are not chasing the garbage truck.
So, what is your role as business owner? To lead the business, and not worry about ordering toilet paper for the restroom. Strategy is about establishing and designing a plan to reach the objectives of the business.
Refocusing his sense of purpose created immense satisfaction. He redefined his role as chief strategist and let the others focus on the daily activities. His near demise forced him to look at work differently. Do not confuse the urgent with the important. Successful people get done what is important. This sounds easier than it is, as you must evaluate what is important and avoid distraction.
Management without leadership is like aligning the deck chairs on the Titanic. While it might seem important at the time, in the big picture it really did not matter. We can employe people who align the deck chairs but someone needs to ensure we don’t hit the iceberg. Leadership is influencing others around you to accomplish organizational goals. Helen Keller once said, “The only things worse than being blind is having sight but no vision.” Effective leadership focuses on changing and reaching long term outcomes not daily tasks.
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Monroe Porter
is president of PROOF Management a firm that teaches seminars and runs networking groups for painting contractors.
www.proofman.com
2021 October Issue | 7
Building approvals are down, but still strong Figures released today show that building approvals declined in July, but are still well above pre-COVID levels.
“So far, from the price side, the housing market has been very resilient in the face of the pandemic, and we expect that to remain the case.”
That’s probably no great surprise given the impact of the HomeBuilder grant over the last year or so.
Queensland continues to be one of the most attractive markets in Australia, and actually saw an increase in building approvals whilst the other states saw declines.
The Australian Bureau of Statistics numbers revealed that building approvals dropped 8.6% in July, which is the fourth straight month of declines since the HomeBuilder scheme ended in March. Apartments fared the worst, dropping 12.3%, whist new houses dropped at a more modest 5.8%.
Housing approvals in Queensland were up 8.3%, whilst South Australia suffered the biggest drop with a 24% reduction. NSW was down 4.2%, Victoria down 7.3% and Western Australia down 6.9%. How have you been going out there?
Whilst news of another month of declining numbers sounds scary, it’s actually still pretty good when you look back a little further.
In terms of new builds, do you feel that there is more work around, or less? And how are you feeling about the near future?
The numbers for July 2021 are still 28% higher than July 2020, and 36% more than 2019.
CLICK HERE TO VOTE
The increase from 2020 is no great surprise given the pandemic, but to be so far above 2019 is very positive. Senior economist at the CBA, Kristina Clifton, said there was “likely to be a further unwinding in approvals for detached housing to more ‘normal’ levels”.
2021 October Issue | 9
Thank you
Jim Baker This month, our longest contributing member of the Aussie Painting Contractor’s writing team, has reached the auspicious milestone of publishing their 100th article to the magazine. I would like to acknowledge and congratulate Jim Baker for this amazing effort in supporting Aussie Painters Network and the painting and decorating industry as a whole, in sharing his unrivalled wealth and depth of knowledge and expertise from so many years of dedicated hard work and professionalism. I remember when I first met Jim back in 2004 while I was President of the Master Painters Association Qld. He struck me as a quiet, measured gentleman who, like myself, genuinely wanted to make a positive change in our industry. He had published an excellent book called “How to Become a Really Successful Painter” to share his personal success with everyone. The book is still as relevant today as it was then to any sized business striving to get back to intelligent, simple, professional and profitable ways of running a painting business. I highly recommend it to you all. Jim became a mentor to me, a confidant, an advisor, and most of all a great mate. He has always been generous with his time to bounce off ideas and give an opinion on the pros and cons from his experienced perspective. Through his guidance and support, Jim has has been instrumental in helping progress APN to where we are today and he has had helped countless painters build their businesses to be ethical, productive and profitable.
Please join us all at Aussie Painters Network in congratulating Jim for this significant milestone and his incredible contribution to the industry.
10 | Aussie Painting Contractor
50 YEARS A HOUSE PAINTER This book contains 36 topics of industry related knowledge and information which will help you in the way you operate your business.Topics under headings of; Business Checklist, Staff, Marketing and Sourcing Customers, Professional Behavior, Successful Operation and Looking Ahead.Highly recommended by Jason Osborn, Dulux Business Development Executive as; ‘A very easy interesting read, that combines industry facts and great topics.’
www.mytools4business.com
The origins of th It was May 2013 when Nigel included my ‘first ever’ article into his APN magazine. The title of it was called, ‘Free Advertising That Works’. Since this publication I have had to think up of 98 other stories that would be of interest for you to read. At times I struggled as in what to write, but going by the feedback I have had, it seems you have really enjoyed them. 60% of my articles are directly related to running a successful painting business. The other 40% are about the painting trade in some way or other. So, for my 100th article, I wanted to write something of significance that has happened in my 52-year career of being in the industry. It is about an innovation. An item that painters cannot do without which wasn’t around in 1969. The humble ‘paint roller’. When I began my trade with my father, we painted the ceilings and walls with six-inch brushes (called Blockbusters). They were also an inch thick, so when loaded up with paint, it made them quite heavy, especially when you were painting above your head. So, when the ‘paint roller’ came onto the market, it was like ‘sliced bread’. It was fantastic. You can imagine the time saved in painting this way than doing it by brush. Funny enough though (at the time), no one thought of having a pole attachment to it; that came a few months later. I thought that this simple piece of equipment deserved expanding on, so I want to tell you how and when the ‘roller’ came to be. Prior to the invention of the paint roller, house painting was a chore best left to professionals who had the time and dexterity to create a smooth finish with their brushes. Early do-it-your-selfers may have enjoyed a painting experience like the one outlined in the ‘Canadian Inventions Book’. ‘Take a paint brush in your right hand, or your left hand if you are left-handed (or both hands if it is a big brush). Dip the brush into a can of paint and raise
12 | Aussie Painting Contractor
it above your head, being careful not to let the paint roll down your arm. Dab it on the ceiling, repeat the process hundreds of times. Then—take a bath.’ As I was searching the internet to find who invented the roller, two articles showed different inventors. One was David Welt, son of Morris Welt who was a painting contractor in New York City. In 1938, David went to a print shop to have some business cards made so he could promote his father’s work. David saw the printer rolling ink on to metal type. This gave him the idea that paint could be rolled. In the basement of their apartment, David Welt created the first paint roller using bent steel for the frame and carpet glued on to a wooden dowel to make the roller cover. The initial handmade rollers were not very good at applying paint but did a great job of ‘stippling’ (covering brush strokes and surface imperfections). Morris and David named their company ‘ARSCO’ which stood for ‘American Roller Stippler Company’. As they found better fabrics for the roller cores, the business grew and they began supplying to ‘Sherwin-Williams’, ‘Glidden Paints’ and many others around the world. In 1956 the small ARSCO Paint Roller factory moved from a small New York warehouse to a block long factory in Florida. Then in 1974, David Welt’s son Glen, joined Arsco and later purchased the paint roller business from his father. He renamed the company to ‘Arsco International’ and continued manufacturing paint rollers and accessories until 2017. Around 1940, a Torontonian named Norman Breakey devised a time saving painting tool that allowed anyone to produce a smooth finish. Breakey devised a cylinder covered in fabric that picked up more paint than a brush. He approached ‘A.B. Caya Fabrics’ executive, Tom Hamilton for advice on what type of fabric to use, an encounter Hamilton recalled for the Globe and Mail in 1984:
e paint roller ‘He was a white-haired gent who was full of purpose. He wanted my opinion on the best kind of fabric that offered a stiff bristly nap. I asked for what purpose, and he said, “For rolling paint.” I scratched my head at that, but he resolutely went on and described to me something with a handle shaped like a ‘7’ that would hold a cardboard, fabric-covered cylinder. “If my theory is right this thing will revolutionize painting in Canada,” he said. Well, the best thing I could think of was that bristly green mohair velour that was used to cover railway touring coaches in those days. So I sold him a bolt of that, told him how to cut it on the bias, suggested some glues and away he went, beaming out the door. Later he came by and thanked me for my advice. He gave me one of his original rollers and a tray that had been hammered out by a local tinsmith. Neither of us knew then how big his invention would get to be’. Breakey peddled his invention to local hardware stores and painters but neglected to patent it. The result: plenty of imitations, patents that benefitted others, and the disappearance of Mr. Breakey into the mists of time.
persuade investors to back him failed. Meanwhile, other manufacturers seized on the idea and produced their own versions of the product. Other inventors who tinkered with Breakey’s design secured patents. At least one account claims Breakey, a Manitoba native who moved to Toronto as a child, died poor and unsung. No histories of the paint roller list the date of his death. He went without public recognition until 1967, when he was listed in both the inventors volume of McClelland & Stewart’s ‘Canadian Centennial Library’ and a Maclean’s feature called “Who’s Who of Canadian What’s His Names.” There have been many innovations related to the paint industry that I have personally been witness to. The major ones have been, ‘No-More-Gaps’, Nylon Bristles, Spray-guns, Aluminium Trestles and Planks and Gloss Acrylic, but to me, I think the Roller has been the biggest advancement in my lifetime as a painter. Thank you to everyone that has supported me in reading my articles, (lol) and also for sending me feedback and Facebook posts saying that it has helped in their business. So as this is a special occasion for me (having now written 100 articles) I would like to offer you a chance to win my new Excel ‘Estimating Guide’ (regular retail at $420). I am receiving excellent reviews on this program and have not had one person that is un-happy with it. If you would like to go into the draw, email me at jimbaker@notjustapainter.com.au Entries will close 22nd October, 2021. --------------------------------------------------------------------
Left: advertisement, the Toronto Star, April 27, 1945. Right: part of an advertisement for Aikenhead’s Hardware, the Toronto Star, May 30, 1946.
Jim Baker www.mytools4business.com
Unfortunately, Breakey lacked the money to produce a significant supply of rollers on his own. Attempts to
2021 October Issue | 13
Bookkeeping Basics for Small Business Owners On average, small business owners spend 10 hours each week recording, organizing, and processing financial transactions – everything from accounts receivable and payable, to employee payments, expense receipts and supplier invoices.
Small business owners should consider using a mobile app for simple, consistent expense tracking. Options like Expensify and Receipt Bank help do away with manual data entry with automated functions, including:
While the process may be time-consuming (and tedious!), effective bookkeeping is the foundation of sound financial management – which in turn, is the lifeblood of your business.
• Receipt data capture via your smartphone’s camera (no need to hold onto paper receipts, which can get lost or misfiled); • Synchronization with your phone’s GPS to track mileage of business travel; and • Importing bank and credit card data, plus integration with accounting software.
Feeling overwhelmed by mountains of paperwork and complex calculations? Here are three bookkeeping basics to help ensure a healthy financial future for your small business.
Faithfully track expenses Accurate and consistent expense tracking is crucial for claiming tax deductions and lowering your overall tax bill. Plus, analyzing expenses can offer crucial insights into spending patterns and the overall profitability of your small business.
14 | Aussie Painting Contractor
Systematic invoicing and filing Efficient invoicing is about more than ensuring you get paid in a timely fashion. An invoice is an official record of the terms of each transaction and must be completed accurately to avoid errors in your bookkeeping process.
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Could you be better off with BUSSQ? Find out more and join online at bussq.com.au or call 1800 692 877. * Return since inception is after fees and applicable taxes and based on the performance of the Balanced Growth fund from 1985 calculated at 30-6-21. BUSSQ’s Balanced Growth returns at 30-6-21 were 17.28% for 1 year, 8.48% for 7 years and 8.86% for 10 years. Past performance is no guarantee of future performance. Performance is only one thing to consider when choosing a super fund. The information supplied in this advertisement is general advice only and does not take into account or consider your personal objectives, financial situation or needs. Before acting, you should review the relevant Product Disclosure Statement to ensure you have all the information about the relevant BUSSQ product and how it works and consider the appropriateness of the information to your needs or seek independent advice from a properly qualified professional. Prepared by BUSS(Queensland) Pty Ltd (ABN 15 065 081 281, AFSL 237860) as Trustee for BUSSQ (BUSSQ Fund, ABN 85 571 332 201).
Here are a few tips for professional invoicing: • Ensure each invoice includes all the important details: contact information, a tracking number, a detailed list of products or services rendered, and a breakdown of the total amount due; • Provide an electronic receipt to reduce waste and create a “paper trail” if there’s ever a dispute; and • Maintain an invoice-filing system that records when you sent the invoice, to whom, when payment was made, and any reminders sent out. An online invoicing tool can streamline this aspect of your bookkeeping process and provide an efficient backup filing system.
Save time with accounting software By law, every business is required to keep organized and timely financial records. However, manually posting income and expenses to ledgers and journals is time consuming – not to mention stressful for the math-averse. Shave some time (and stress) off your weekly bookkeeping with an all-in-one accounting software solution like Xero, QuickBooks, ClearBooks or KashFlow.
Online bookkeeping offers numerous advantages, such as: • Instant reports and real time insights on profits and loss, customer accounts, payroll – and your overall financial “big picture”; • Simplified data entry so you can collate and print invoices, purchase orders, and payroll much faster than with manual methods; and • Improved accuracy through automation (once data is entered, the software handles all subsequent calculations and processes – including invoicing). When it comes to accounting, vigilance is the key to mitigating risk and ensuring the long term profitability of your small business. Be sure to set aside time each day, week, and month to update and review your books to catch any red flags and ensure your finances are on track.
Sandra Price
www.tradiebookkeepingsolutions.com.au Facebook : Tradie Bookkeeping Solutions
2021 October Issue | 17
QT290 WINNER SPIEL Scott
from Paramount Painting 18 | Aussie Painting Contractor
It was great to meet Scott from Paramount Painting when I dropped of his new QT290 Spray Gun. When we did the draw live on Facebook, he didn’t realise it was on and said he wished he had of seen it. We called him and he asked if we could call back as he was busy rolling out a ceiling. At that point we said, “You might want to listen for a minute” at that point we told him he had won the QT290 spray gun. Scott stated, ‘I have never won anything before, let alone something this big’. Enjoy the QT290 and we look forward to hearing how it goes in the coming months.
APN Painting Business Software EEective Painting Business Solution
Get your admin into tip top shape. Newspapers are great when doing a painting gig, but leave the paperwork to us. ea to use software is your all in one solution to Our easy help run your business more effectively – fast quoting, easy scheduling and simple job management, makes for less paperwork and faster cashflow.a
Aussie Painters Network Members can get started FREE as well as 50% off your first month + free onboarding, free support and free training FOREVER Easy job scheduling software Job creation, team management and tracking Track all time and materials Clear and open communication Invoicing software for accurate billing & payments
geoworkforcesolutions.com/geo/apn/ 2021 October Issue | 19
PA I N T I N G Crafted with quality materials for flexibility and durability brush haus brushes are suitable to use with oil and acrylic paint.
We work with some of the best painters in the industry with the object of creating an aaordable, high quality and usable brush for Australian conditions.
SUPPLIES
Do you send your customers
Thank you notes? No, why not? The topical tradesperson does the job and sends the invoice. That’s it. The last time a customer hears from them is by getting the invoice.
It has been 12 weeks since we painted your beautiful home, and I just want to make sure you are still delighted with the work we did for you.
I deal with many customers every week, so I pick about 4 or 5 customers randomly and send them Thank you cards. Printed on the front and on the back I write a handwritten thank you note.
If there is something you are concerned about, please call me so I can arrange a time to come around and rectify the issue.”
Did you know if you did this, I could help you get paid quicker? Yep, it can. Get some Thank you cards printed up, maybe with a photo on the front, of you and your team in front of your company vehicle, leave the back blank so you can write something like this. “Hi Mr and Mrs Customer My team and I at ABC Painting just want to thank you so much for your confidence in selecting us to look after your beautiful home. If you now attach this Thank you card to the invoice when you send it, shows the customer you care about them and not just the money. Also, mark in your calendar for 12 weeks to send another card; this time, write something like this.
Again, thank you for your confidence in ABC Painting. How many Tradies do you think send their customers thank you cards? And how many Tradies do you think care enough about their customers to follow up 12 weeks after doing the job to make the customer is still happy? Not many, This will set you far above the rest and your customer will want to recommend you to everyone that will listen. --------------------------------------------------------------------
jeffpaintuy
Experienced Territory Manager with a demonstrated history of working in the Paint industry. Skilled in Negotiation, Sales, Customer Relationship Management (CRM), Team Building, and Construction.
www.jeffthepaintguy.info
“Hi Mr and Mrs Customer
2021 October Issue | 21
Interested in becoming a painter & decorator?
Are you looking for a Painting Apprenticeship? Find out how to get an Apprentice
Are you running a Painting Business? We can assist you in growing your business with apprentices! paintingapprenticeships.com.au Painting Apprenticeships brings Apprentices together with Painting Business Owners.
Spreading yourself thin... As tradies, we all know the key to delivering great work for our clients is; preparation, great technique and time management. So why as business owners, do we do ourselves the disservice of spreading ourselves so thin? We try to take on everything ourselves, after all, it’s OUR business so we are responsible for its success. The end result is that we’re constantly in a rush, behind on our forever growing ‘to-do’ list. It doesn’t matter if you’re a painter, plumber like me, or an electrician we ALL say the same thing “there’s never enough ruddy time in a day” to get it all done. Get your time back! So, what if I said to you right now, that you could get 4-6 hours back in your week just by making a few small changes in your painting business day-to-day operations. There’s no way right? Scan the QR code below to download our Lifestyle Tradie ‘Maximise Your Time Guide’.
24 | Aussie Painting Contractor
2.9 Litres/min Flow Rate .027" Max Tip size Powerful slow stroke pump 15m Spray Hose Spray Gun 2021 October Issue | 25
26 | Aussie Painting Contractor
The best word you’ll ever learn as a business owner is: Delegate.
doing the important things like client management or growing your business.
The truth is, you can’t do everything and if you continue to try to take on every task yourself, in the end, your business will suffer for it. The ONLY way you’ll ever get your time back is if you learn to trust that other people can take on the responsibility, so that you share the workload as a team!
I’ll be the first to put my hand up to say, I used to HATE the idea of delegating. “If you want something done right, do it yourself” well I’ll tell you something…. I almost lost my business and my marriage because I tried to “do it all myself” and failed big time.
Review the journal in the Maximise Your Time Guide above, and start working on your Stop. Keep. Start. model. Thoughtfully plan out WHO you are going to delegate these tasks to, why they’re the right person for the task and how you can set them up for success by training them on the way you want it to be done. Once you’ve removed these time-consuming tasks, you’ll be amazed at how much time you’ve recovered. The reality is, you’re overworked and struggling to get everything done on time, and feeling overwhelmed. Now, with ongoing planning and time management, you can be more time efficient and feel empowered to trust others with jobs so that you can get back to
Luckily, by adopting systems and processes like this delegation model, I reclaimed my time and was able to turn things around. Don’t let the same thing happen to you! Get a handle on your time management and share the burden, this is how you’ll build an amazing painting business that’s sustainable long term. If you’d like some help getting your time back let’s set up a strategy session between you and me today. Book at https://www.lifestyletradie.com.au/ strategy-session/ ….It’s completely free! --------------------------------------------------------------------
Andy Smith
Andy Smith is a fellow trade business owner of Dr.DRiP Plumbing and co-founder of Lifestyle Tradie, a membership and community for tradies in business.
2021 October Issue | 27
Expanding Our Capacity
to Be With Chaos We don’t like chaos. It is uncertainty, overwhelm, a feeling of groundlessness, being unmoored, out to sea without a compass. And it usually triggers a shut-down response in us: hide, avoid, procrastinate, try to get control, anxiety, or wanting to give up. Or not wanting to even start in the first place, if we know there will be chaos. I’m here to advocate for the beauty of chaos! It is the fabric of life, and we can never escape it. What we can do instead is slow down, get quiet, and open to the beauty of chaos. This takes tremendous practice. Let’s talk about it.
Chaos Can Be Overwhelming
We like order, and when things are messy or chaotic, it can feel scary or overwhelming.
28 | Aussie Painting Contractor
A few examples: • I’m going off to college and am feeling overwhelmed by the idea of a roommate and there being so many people around. It feels like I won’t have my own space. • I worry about getting into a relationship when I’m just learning to take care of myself, and enjoying having alone time. I don’t want to get too entangled and hurt the other person by breaking it off later. • My spouse is unpredictable with their emotions, and I never know when they’re going to get frustrated or shut down. • My life is overly full right now, I feel scattered and all over the place and I can’t focus on anything! • I’m at an event with so many people, I am not used to people being around, how can I handle the overwhelm? • My health has taken a bad turn, and I feel helpless and lost. • These are just a few ways that chaos shows up for us. In fact, it’s always present, in small and big ways. The world is unpredictable, dynamic, swirling. And we often don’t want to be with all of that.
Practicing Being with Chaos
We can learn to be present with chaos in a relaxed way.
That said, we can expand that capacity, through training.
It starts with recognizing when we’re feeling it.
The training goes something like this:
Then we can decide whether we want to practice with it. Do we have the capacity to train ourselves in chaos right now? No judgment if we don’t — it’s a recognition of whether we have anything in our emotional and mental battery, and absolutely a wonderful thing to do for ourselves to opt out when we’re not up for it.
• Intentionally create a practice to train with chaos daily. It could be at the same time of day, or just have a note somewhere that will remind you to practice. That reminder will get less effective over time, so change it up weekly. • When it’s time to practice, notice the chaos you’re feeling. Or recall a time earlier in the day when you were feeling it. • Practice turning towards the feeling of chaos in your body, as mentioned in the section above. • Practice keeping your attention here, keeping your heart open, as long as you feel able to do so. • Close the session with some gratitude for yourself for practicing. • If you do this on a daily basis, your capacity will expand over time. You’ll be able to spontaneously practice when chaos arises in the moment. .
Then we can practice grounding ourselves. Start with a little stability before going into chaos. Next … we can turn towards the chaos. This is like turning towards the storm: bring attention to the sensation of chaos in our bodies (internal) and the presentation of chaos all around us (external). It’s watching the wind blow the grass in unpredictable ways. Watching the ocean swirl. Watching people flowing past a window.
Other times, you just won’t have it. That’s OK. We’re human.
The Beauty of Chaos
What we begin to open to, as we sit in a quiet moment with this practie, is the swirling beauty of chaos. We automatically turn away from it as if it’s an unwanted burden, but chaos is the fabric of life. It is the ocean splashing against the rocks, the light filtering through dust motes in the still air, the clouds of a storm. It’s the joyous play of a child, the trees swaying in the wind with leaves tremulously shaking.
Opening our eyes to the beauty of the moment. And learning to relax in the middle of the swirl.
Chaos is a loved one interrupting us when we’re trying to focus, asking for the gift of our attention. It’s a day full of activity and abundance. It’s a life never short of surprises. It’s loss and death and heartbreak and intimacy. It’s my wish that the world opens to this chaotic beauty.
Expanding Our Capacity
We all have a limited capacity to be with chaos, fear, uncertainty, groundlessness. When we hit that limit, we shut down. We go to our comforts or defenses. And that’s of course completely OK! We don’t need to force ourselves to stay open to chaos when we’re not in a place to do that.
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Leo Babauta ZEN HABITS 2021 October Issue | 29
What is a High Performing
WORKPLACE? A high performing workplace is at its very crux a workplace that is achieving superior business results. Which sounds great because who doesn’t want their business to be achieving more? But is it just for big business and can my SME really become a high performing workplace? Of course, it can! In fact, being a high performing workplace should be of paramount importance to small and medium business owners as it means that you’re maximising your (limited) resources. HR Coach Australasia (HRC) conducted a business assessment of 700 small to medium Australian businesses to find out the difference between high and low performing Australian businesses. They found that there are 5 key areas that separate high and low performing businesses.
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Management Team
High performing businesses have an effective and efficient management team. In a high performing team, a manager’s role is essentially to keep the team’s focus on achieving the business’s strategy, maximise their team’s performance and minimize costs and waste. Sports teams provide an excellent example of how when the management and leadership (coaching) team aren’t right the team of otherwise great players suffers.
Culture
High performing businesses have an aligned and adaptive culture. What does this mean exactly? It means that everyone from the business owner to the newest recruit knows, understands and is focused on the strategy (goals) of the business. And because they all on the same page, they can also adapt quickly when things change.
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2021 October Issue | 31
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Effective Employee Feedback
Feedback needs to be a two-way street. In low performing organisations, employee feedback tends to be only one way – from employer to employee. But there is no-one who knows your business quite like your employees. By seeking and listening to your employee’s feedback, you will always have your finger on the pulse. Employees who don’t feel like they’re being listened to also cease to contribute, developing a “Why bother” attitude. This attitude will quickly impact on the culture and performance of your business.
Managing Employee Expectations of their Role
High performing businesses understand that their teams are the ‘people engine’ of their businesses and make sure that each employee will have their own set of satisfiers and dissatisfiers. High performing businesses know that understanding and addressing those factors increases employee engagement and reduces employee turnover.
needs to be achieved (they don’t need to be told), they self-manage their tasks / actions and take responsibility of the outcomes. They’re motivated to achieve because they are invested in the results. Low performing businesses tend to a have more authoritative relationship with their employees where the manager directs the actions and information is on a ‘need to know’ basis. Sounds great, but is this really achievable? The simple answer is yes but in order to achieve this you need to be honest about where you are right now. Contact us to take our free Business Health Check to find out where the gaps in your business are. ----------------------------------------------------------------------
Vanessa Petch
If you would like assistance, please reach out to Vanessa from HR Maximised on 0418 190 106 or vanessa@hrmaximised.com.au
Individual accountability
In high performing organisations, employees work with, not for, the business owner / manager. They know what
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2021 October Issue | 33
HOW TO SET UP
Business Performance Monitoring Systems A couple of months ago I’ve published my article How to Keep Your Business Open by Closing Your Books in this very online mag. The article discussed the real benefits of systemizing your end-of-month processes, including: 1. Closing your books – and what it means 2. Create simple review processes 3. Review your Marketing ROI I truly hope that you are taking steps to put good systems in place because without them, it’s nigh impossible to get a handle on your business performance. Having good data to work with is the key to setting up effective monitoring systems. With your systems in place and data at your fingertips you can use those numbers and knowledge to take control of your business. So let’s talk about how you can monitor your business performance. Business Performance Monitoring 101 Setting up Your Key Performance Indicators (KPIs) The best way to monitor your business performance is to set up KPIs for your various business areas. For
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example, to measure your sales performance you need to set out: • how many quotes per month you’ve delivered • what the individual and combined value of the quotes were • how many quotes per month you’ve won • what the individual and combined value of the number of quotes you’ve won were • what the value of the completed job vs the quote was You definitely need to set up a budget where part of these sales KPI figures feed into. There are great accounting systems and apps that can help you with this, but you can also get started with a simple spreadsheet. Monitoring your business performance also ties in neatly with your Profit and Loss statements. Anyone who needs to regularly report their financial situation to the QBCC to satisfy their license requirements knows how critical the P&L is. Using the Quick Ratio Method This method is commonly used to measure a company’s short-term liquidity. Imagine all your business debts would become due at once, that’s when you need to know how you can meet those debts in the short term.
The quick ratio method generally includes only assets that can be converted to cash within 90 days or less. Current assets used in the quick ratio include: • Cash and cash equivalents • Marketable securities • Accounts receivable Current liabilities used in the quick ratio are: • Short-term debt • Accounts payable • Accrued liabilities and other debts Checking your Budget vs Actual Figures The ultimate monitoring tool is of course your Budget vs Actual figures. Like with many other aspects of your bookkeeping, this is one metric you don’t want to miss. Checking in on your Budget vs Actual performance can immediately tell you if your Gross Profit is what you’ve expected. And if it isn’t, this data will help you analyse why.
The main objective of monitoring your business performance is to know whether you’re going forwards or backwards. Moreover, if you have a business plan that sets out a growth trajectory, you really want to know how you are tracking. Well set up monitoring systems are key to that, but only if you use and utilise them regularly. In conclusion, good systems enable effective monitoring of how your business is going. If you have got some systems in place already, and have been working with them for a few years it would be prudent to undertake a review and see if there is new technology out there to make things easier for you. If you need any support with reviewing your business systems and monitoring tools, call my office on 3399 8844 and we will give you a FREE Business Systems Health Check. You can also visit our website at www.straighttalkat.com.au and complete your details on our website to request a free appointment.
2021 October Issue | 35
The Warning Signs of
NON PAYMENT When I sit in front of my clients and ask them to tell me the story of their payment issue I often hear warning sign after warning sign that my client did not pick up on. They tell me about what the builder or project manager said or did which were clear signals that payment was going to be an issue. Yet they kept working, oblivious to the dispute that lay ahead. If you can spot these signs early you can address non payment early. It is better to argue about $20 000 than $150 000. I will outline the most common below.
Informalising the relationship You and your client are not mates, friends, or relatives. You are in a business relationship. That means that your relationship is governed by the contract. Keep it that way. A key cause of disputes is where each party agrees to deviate from the contract in a series of informal works or undertakings. Then the client refuses to pay for those works, and then retreats back to the contract, and denies any additional agreements.
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You all know what I am talking about. You are entering into these informal agreements because you want to be a ‘good bloke’. Forget it. The contract is the agreement. Any changes need to be run under that agreement. You have a business relationship. It is ‘fee for service’. Don’t lose sight of that.
Dumping the paperwork Often a contract will require certain notices and documents to be completed, sent, signed off etc at certain points. For example you may send your client an Extension of Time [EOT] request. Or you may quote a variation and submit it for sign off. Now your client does not sign it or respond as the contract requires. Let’ say you get a verbal approval, or your client refuses to sign or makes an excuse. Then you accept this and go ahead.
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2021 October Issue | 37
You have just left yourself wide open. Your client will deny approval for any of it. I often see contractors who follow the process as described in the contract, but their client doesn’t. For example an EOT Notice may require a response in writing, but the client does not respond at all. (Clearly to avoid approving any EOT.] Keep to the process. If the contract describes a process for each side to follow then hold your client to that process. Don’t do anything unless your client does their part too. If a variation has to be signed off by the client then don’t start it until it is signed off. If an EOT Notice goes unresponded to, then insist that it is, and send written correspondence noting that your client has not responded.
haven’t gotten a response from your client then you can claim you have no direction either way and simply not do the work. This will almost always drag your client out of the shadows. Above all you should be aware that the difficulty in contacting your client has nothing to do with all the ‘meetings’ he is in. It’s is likely to be connected to avoiding payment.
These are all examples where your client does not want to create written evidence of their agreement to anything that might cost them money. Don’t let that happen.
Meetings meetings meetings Whenever you are being called in to meetings to ‘sort out’ things that are already clearly set out in the contract it’s time to be worried. For example the contract might state that you are to be paid 30 days EOM. That date comes and goes without payment. You call your client to ask why you haven’t been paid and they call you in to a meeting to ‘sort it out’.
Gone bush Suddenly you can’t get your client on the phone. You know what I’m talking about. Messages unreturned. Faxes unanswered. They always appear to be in meetings. This is a strong sign of a payment problem. This usually happens in conjunction with other issues. For example you might be calling to follow up on your EOT notice or your variation quote, or when your promised payment will come in. Don’t accept this and keep working. A good strategy is to first send written notices to your client noting the number of calls and messages you have left and that they have not answered. Then, depending on what your contract says, you can simply not carry out the work in question. If you
Sort out what? The contract states when claims are to be in, the contract states when they are to be paid. Simple. Yet you are being called into meetings to negotiate various terms and arrangements that are already agreed in the contract. I had a client that spent months in these ridiculous meetings where all sorts of alternative payment arrangements were put to him. In short his client wanted to vary his contractual obligations relating to payment, while my client was expected to stick to the contract. In the end my client kept working and his client went into administration owing him $70 000.00. If you must attend these meetings make detailed notes and send your clients Minutes of that meeting. Also I would almost never agree to vary what was agreed in the contract. It’s the thin edge of the wedge.
2021 October Issue | 39
Ridiculous Payment Schedules This is so common. You submit a claim for $120 000.00 and you get a Schedule for $42 000.00. Too many contractors accept this and continue working. After 4 months you have done $500 000.00 and been paid $135 000.00. This is crazy. I have looked at these Schedules and they are miles away from justifying such large shortfalls. Most of the time the client will not argue with the work done but will create a whole series of set-offs claiming defective and incomplete work and damages. You need to hit these hard straight away. Too many contractors try to ‘have meetings’ (see above) to reason with the client and get more money. Forget it. Your client has to justify every cent that they take off your table. If they can’t, then take the matter to adjudication immediately. This problem never improves next month. It only gets worse. When you client sees you are willing to
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work regardless of the low scheduled amounts, they will do it again next time (why wouldn’t they?) Hit this one hard straight away. These five warning signs happen in combination or on their own. You need to see them for what they are: signs that you will not be paid. The key is to act quickly and address them head on. If the relationship breaks down then so be it. You need to protect your cashflow first. It is better to be in dispute over less money, than over 8 months worth of work. By then you will have no leverage in any dispute and will take anything to get out. Don’t let that happen. --------------------------------------------------------------------
Anthony Igra
1300 669 075 www.contractorsdebtrecovery.com.au
2021 October Issue | 41
www.oldfields.com.au
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Delta is tempting us to trade lives for freedoms —
a choice it had looked like we wouldn’t have to make Last year COVID-19 seemed simple. It was horrific, but the arguments about what to do were fairly straightforward.
ers to keep on staff (through JobKeeper) we ensured the lockdowns would be short-lived, with light at the end of the tunnel.
On one side were people rightly horrified by its rapid spread who wanted us to stay at home and stay away from school and work and socialising in order to save lives.
In none of the states for which there is data was there an increase in suicides.
On the other side were people concerned about the costs of those measures — to jobs, to education, to freedom, to mental health, and to other lives (because if we used too much of our health system fighting COVID-19, other lives might fall through the cracks). And through it all came a kind of consensus. The concern about non-COVID deaths turned out to be overblown. Last year Australia recorded fewer than normal doctor-certified deaths, in part because the COVID restrictions stopped deaths from influenza, and in part because they snuffed out COVID-19 early, ensuring hospitals weren’t overwhelmed. Last year, we didn’t have to choose
The insurance company ClearView told a parliamentary committee this June its research found things were better than expected in part because of the universal nature of the pandemic. Everyone knew “everyone was in this together”. Another reason was telehealth. It was easier to get help than before. And students returned to school sooner than they would have had the lockdowns had been weaker or started later, leaving much of their education intact. The consensus was that by locking down hard and early we got the best of both worlds — near-elimination of COVID-19 and a quick return to normal life. Anyone who remembers Christmas last year remembers how normal it felt.
Concern about jobs also turned out to be overblown. By locking down hard and early, and paying employ-
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Economics is called the dismal science in part because it is about hard choices — situations where we can’t have our cake and eat it too. Last year it seemed as if COVID wasn’t one of them. Starving the virus early gave us both one of the world’s lowest death tolls and one of its shortest recessions. Hard choices are back in sight And then came Delta. Far more contagious than the original, and with fewer immediate symptoms (making it harder to trace) the Delta variant became almost impossible to get on top of in the two big states where it took hold.
There’s only so long businesses can hang on without pulling the pin. We are getting closer to having to trade off lives against freedoms; getting closer to having to decide how many COVID deaths and how much COVID illness we are prepared to live with in order to return to something more like normal living. Last week’s NSW “roadmap to freedom” implicitly made those tradeoffs. Calculations prepared by the Treasury and the Grattan Institute make them more explicit.
And without very high vaccination rates — in the view of the Grattan Institute significantly higher than either the NSW, Victorian or Commonwealth governments are targeting — it became all but impossible to reopen without condemning Australians to COVID deaths.
There are few important things to note. One is that we might yet be able to get the best of both worlds.
The new reality is plunging us back toward the territory economists call their own — the world of hard choices.
It won’t happen if we ease restrictions before transmission has stopped, as some states are planning to.
If the lockdowns don’t end (and there is no sign they can end any time soon without costing lives) education and mental health and jobs will indeed suffer.
We might yet be able to effectively eliminate the delta strand, restoring both health and freedoms (as we did with the earlier strand).
Lockdowns without end are unsustainable Another is that unending lockdowns are untenable. While last year’s lockdowns didn’t do the psychological and health and educational damage that was feared, lockdowns without end would. One type of damage clearly evident in the comprehensive report on last year’s lockdowns from the Australian Institute of Health and Welfare is family and domestic violence. The longer lockdowns continue, the longer elevated violence is likely to continue. And another thing to note is that in a world where we have to make tradeoffs there are no particularly good options. Allowing the disease to spread in order to restore freedom of movement would itself curtail freedom of movement. Read more: Economists back social distancing 34-9 in new poll
Businesses can’t hang on indefinitely. JakeOwenPowell/Shutterstock
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An analysis across US states suggests 90% of last year’s collapse in face-to-face shopping was due to fear of COVID rather than formal COVID restrictions. That fear will grow if we lift restrictions and COVID spreads.
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2021 October Issue | 45
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The Grattan Institute would lift lockdowns only when 80% of the entire population has been double vaccinated (not 70-80% of people aged 16+ as the NSW and national plans envisage, which amounts to 5664% of the population). Grattan believes its plan would cost 2,000-3,000 lives per year; a cost it believes the public would accept because it is similar to the normal toll from flu. The NSW and national plans (Victoria’s isn’t spelled out) would cost much more. No option is particularly good The Commonwealth Treasury finds, perhaps counter-intuitively, that an aggressive lockdown strategy that saved more lives would impose lower economic costs (about A$1 billion per week lower) in part because it would end up producing fewer lockdowns.
They are the sort of calculations we hoped never to have to make. There’s still a chance we might not. With a Herculean effort NSW and Victoria could yet join Taiwan, New Zealand and every other Australian state in being effectively COVID-free. But they are running out of time. Read more: NSW risks a second larger COVID peak by Christmas if it eases restrictions too quickly --------------------------------------------------------------------
Peter Martin
Visiting Fellow, Crawford School of Public Policy, Australian National University
2021 October Issue | 47
The Industry Idiots
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IMPORTANT
Contacts
Aussie Painters Network aussiepaintersnetwork.com.au
Ph. 0430 399 800
National Institute for Painting and Decorating painters.edu.au
Ph. 1300 319 790
Australian Tax Office ato.gov.au
Ph. 13 72 26 / Ph. 13 28 65
Award Rates fairwork.gov.au
Ph. 13 13 94
Fair Work Building & Construction fwbc.gov.au
Ph. 1800 003 338
Mates In Construction matesinconstruction.com.au
Ph. 1300 642 111
Workplace Health and Safety Contacts Comcare WorkSafe ACT Workplace Health and Safety QLD Victorian WorkCover Authority WorkCover NSW SafeWork SA WorkSafe WA NT WorkSafe WorkSafe Tasmania
comcare.gov.au worksafe.act.gov.au worksafe.qld.gov.au vwa.vic.gov.au workcover.nsw.gov.au safework.sa.gov.au commerce.wa.gov.au/WorkSafe/ worksafe.nt.gov.au worksafe.tas.gov.au
1300 366 979 02 6207 3000 1300 362 128 1800 136 089 13 10 50 1300 365 255 1300 307 877 1800 019 115 1300 366 322
actcancer.org cancercouncil.com.au cancercouncilnt.com.au cancerqld.org.au cancersa.org.au cancervic.org.au cancerwa.asn.au
(02) 6257 9999 (02) 9334 1900 (08) 8927 4888 (07) 3634 5100 (08) 8291 4111 (03) 9635 5000 (08) 9212 4333
Cancer Council Australia ACT NSW NT QLD SA VIC WA
2021 October Issue | 49
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