Aussie Painting Contractor September 2018

7

Celebrating our

th

Year

Proposed Removal of Licensing How to win more quotes Follow the exact 5 Steps

The Power of Site Diaries Business Groundhog Days Spend less time on “fire fighting� and more time on growing your business

www.aussiepaintersnetwork.com.au

CONTRIBUTORS • Angela Smith

From the Editor Hey Everyone,

• Anthony Igra • David Peetz • Jim Baker • Julia Verdouw • Leo Babauta • Merlin Thomas • Monroe Porter • Robert Bauman • Sandra Price

EDITOR Nigel Gorman EXECUTIVE EDITOR Caroline Miall GRAPHIC DESIGNER J. Anne Delgado

Spring has started with a bang.

APN have moved offices, worked with industry partners to assist in stopping the removal of licensing in NSW, helped more members get paid for work that they had done.

We have moved our office to The Construction Training Centre, Building 7A, Gate 3 Boundary Rd, Salisbury QLD 4107. If you are trying to find our new offices go to Google and search Aussie Painters Network, if you click on the directions link it will show you where we are and how to get there.

It has been great working in collaboration with the Master Painters Association of NSW and the National Institute of Painting and Decorating in stopping the removal of Painting Licensing in NSW. It looks as though the industry might have had a win, you can read more in this month’s mag.

It’s great to see that the industry organisations can come together for the betterment of all those working in the painting industry.

If you have anything industry related that you are wanting to share, just let us know and we will be happy to let our readers hear about it.

Until next month, Happy Painting!!

Nigel Gorman

nigel@aussiepaintersnetwork.com.au

07 3555 8010

Contents That will never happen to me…

OR COULD IT? A Challenge: Create a DAILY READING HABIT

6

PROPOSED REMOVAL of the Painting and Decorating Licenses

18

How to Win More Quotes By Following the Exact 5 Steps (In Order)

9

pick what books you want to read this month

Finance drives everything — including your insecurity at work

The Trust Escalator

Health Check: why do I get a headache when I haven’t had my coffee?

21

Is Caffeine your favourite drug?

12

16

The Power of SITE DIARIES Do you have “Business Groundhog Days”?

24 26

6 Essential Accounting 29 Terms for Small Businesses The ‘Floating City’ of Italy Combating the World of All Fluff and No Stuff

32 36

Industry Idiots

38

Important Contacts

39

Opinions and viewpoints expressed in the Aussie Painting Contractor Magazine do not necessarily represent those of the editor, staff or publisher or any Aussie Painters Network’s staff or related parties. The publisher, Aussie Painters Network and Aussie Painting Contractor Magazine personnel are not liable for any mistake, misprint or omission.

Information contained in the Aussie Painting Contractor Magazine is intended to inform and illustrate and should not be taken as financial, legal or accounting advice. You should seek professional advice before making business related decisions. We are not liable for any losses you may incur directly or indirectly as a result of reading Aussie Painting Contractor Magazine. Reproduction of any material or contents of the magazine without written permission from the publisher is strictly prohibited.

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

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That will never happen to me…

OR COULD IT?

Many times during my years as a Financial Planner specialising in Risk Insurance, I have heard healthy Tradesmen tell me that they don’t need to have Income Protection Insurance because they are fit and healthy and don’t get sick. They ‘sometimes catch a cold’ but nothing ever happens that would lead to the need to take extended time off work.

It is a common misconception that Income Protection insurance is only for people who regularly succumb to illness or are prone to injury and take a lot of time off work.

Having this insurance in place, can in many instances, mean the difference between a person being able to recover from their illness or injury with the peace of mind in knowing the bills will still be paid from the Income Protection Benefits, or quite literally watching their business go broke due to their inability to generate income and sometimes even to put food on the table – particularly for a self-employed tradesman.

I have recently had experience with 2 such Tradesmen that took out Income Protection insurance solely because it was a requirement for them to work on building sites.

With both gentlemen, they were sole trader/Subcontractor Tradesmen and therefore, were not covered by Workcover or the relevant Workers insurance in their state.

6 | Aussie Painters Network

Both were in very good health and during the process of implementing the policies, made no secret of the fact that if it was up to them, they would not take the policy out as they ‘don’t get sick’.

The first gentleman is a 32 year old carpenter named Scott who recently went from being an employee to a contractor and was therefore required to have Income He told me that he never gets sick so can’t understand what the fuss is all about with Income Protection.

This gentleman’s policy went into force in early June 2018. You can imagine my surprise when he called me rather sheepishly, 3 weeks later to say that he had injured his forearm at work while building a deck. Nothing out of the ordinary for a Carpenter but as simple as putting his 95kg weight on his right arm while balancing on the deck and he tore the tendon. This was very painful and resulted in his inability to hold a hammer – a fairly integral part of being a carpenter.

Scott was very concerned as he was only in the initial stages of being a contractor and had done his financial calculations for his new business, based on continued work and without considering the potential effects of 8 weeks of no work that the Doctors he consulted over the injury, told him he needed to take.

HOUSES Aside from the physical pain of the injury, this caused some distress in the home life because Scott and his wife had plans to buy a home in the short term and were saving money towards a deposit. Scott’s wife was obviously concerned about the injury but was also very concerned because the deposit saving plans seemed destined to be put on the shelf while she had to cover all expenses with her newly self-employed husband having an indefinite hiatus from work (and income) while his arm repaired.

Scott was initially reluctant to make a claim on his Income Protection insurance because it had been going for less than a month and he felt a claim was too soon. I reminded him that this is precisely why people have Income Protection insurance and urged him to proceed with the claim.

Scott agreed and I collected the necessary paperwork and contacted the insurer, MLC, to notify them of an impending claim. Their response and subsequent service both to me as the Adviser and to Scott as the client, was exceptional and demonstrated that they understood the difficult position that this unplanned injury had caused to Scott and his family. To sweeten this deal further; Scott’s policy had only been going for 3 weeks and he had paid the first monthly premium.

Because he went on claim during that month and premiums are not payable while on claim; Scott had the first month’s premium refunded to him as well as the normal benefit amount.

The result? Scott received benefit payments from MLC which kept everything going while he recovered and now he is back at work and his plans, and those of his wife, were not interrupted by an unplanned injury. Oh, and Scott is now a believer in the importance of Income Protection Insurance.

The second example is very similar to the first; A fit and healthy Tradesman who had recently made the move from employee to contractor and couldn’t see the need for Income Protection. David is his name. David reluctantly took out his policy as a requirement to work on a construction site and genuinely believed that he would never have to make a claim.

Two months after implementing the policy, David fell backwards, climbing down from a ladder and landed on his elbow. The resulting jarring to his upper body, broke his collar bone

and again, caused great pain and serious concern as it was immediately obvious to David that he needed significant time away from the tools and he had no leave entitlements.

BUILDING PROJECT David’s injury is more of a longterm problem than the first example and required multiple visits to an orthopedic surgeon and surgery involving plates and screws being inserted and then ongoing time off work to allow recovery.

The insurer was again MLC and the result was the same. Very professional and empathetic treatment by a claims manager at MLC and the financial result is that David is recovering physically with the bills being paid by Income Protection benefits while he does.

Both these gentlemen have thanked me profusely for persevering with them and they now realise that incidents like this DO happen to fit and healthy people. You can’t plan for the injury but you can make arrangements so that an accidental fall won’t have the same effect

on those nearest to you or your financial well-being.

Income Protection insurance is designed to replace the salary/income of a person who is injured or becomes ill and is unable to continue to perform their work duties.

It is designed to replace 75% of income on a short, medium or long term basis for a defined period of up to 2 years, 5 years or up to Age 65 after a certain waiting period; most commonly 30 days.

If you would like to see how Income Protection could work for you, please click on this link and follow the prompts, or you can email me or phone 1800 808 800.

Paul is an Authorised Representative (412306) of Synchron, AFSL 243313.

www.traderisk.com.au 2018 September Issue | 7

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Premium of $407 is based on $5,000,000 public liability insurance policy paid annually for a painting business in QLD with one manual worker. * A 15m height limit applies, but can be removed for an additional premium.

Tradesman Insurance Services Pty Ltd t/as Trade Risk (CAR 422847) is a Corporate Authorised Representative of 8 |Westcourt Aussie Painters General Network Insurance Brokers Pty Ltd, Australian Financial Services Licence No 238447. ABN 81 009 401 772.

A Challenge: Create a

DAILY READING HABIT As I went through last month’s decluttering challenge, I realized I had a bunch of books I want to read, but that I don’t actually set aside time to read them.

shelves. You don’t have to read them all this month, but you do have to set aside time each day, so that eventually all (or most of) your books will get read.

A lot of aspirational clutter is like that: we have outdoor equipment, things for hobbies, clutter from different projects we hope to do, things for gardening and cooking and photography … but we don’t actually create the time to do these aspirations.

The challenge: set aside a certain number of minutes each morning (you choose how many), and actually read a book during that session.

What if we decided to set aside time each day for one of these aspirations?

This month, I challenge you to set aside time to read all the books on your reading list, or on your

FOR EXAMPLE: • I decided to set aside 30 minutes every morning.

• I set a daily reminder to do that.

• When the reminder goes off, I actually clear away distrac-

tions and read for 30 minutes.

(Note: I can still read more at other times during the day.)

• Each week, I report to others whether I did it or not.

If I stick to this challenge, I will have read for 15 hours (at least). That’s probably enough for 4 books, for me. At the end of a year of doing this daily habit, I’ll have read nearly 50 books. I know many people read more than that, but that would completely clear off my reading list. (I also know some books are 2-3x as long as the average book, but I’m happy with getting 30-40 books read in a year.)

2018 September Issue | 9

If you’re not willing to set aside this time, can you let go of all or most of the books on your reading list?

JOIN MY READING CHALLENGE I’d love it if you joined me in this challenge by signing up for my Sea Change Program, where I’ve issued the Daily Reading Challenge.

So are you up for the challenge?

HERE’S HOW YOU DO IT: • Commit to the challenge (#readingeveryday on Twitter, or wherever you’d like to publicly commit).

• Pick a number of minutes you want to read. If you don’t read right now, pick 15-20 minutes.

If you read a lot, pick 45-60 minutes.

read without distractions, without switching to something else, just reading. (It helps to let others nearby to know you’re in “non-interruptable reading time” if you can.)

• Report to someone each week, sharing your successes, obstacles, adjustments for the coming week. You can report on Twitter or Facebook with the #readingeveryday hashtag, or join my Sea Change Program to do the challenge with me.

• Pick a time to do it in the morning (preferably). Set a reminder for that time.

Also pick what books you want to read this month (2-5 books)!

• When the reminder goes off, clear everything away and

What would it change for you if you did this?

10 | Aussie Painters Network

In Sea Change, we will: • Commit to this challenge to each other, and report on it each Monday.

• Have a live video webinar on the Zen of Reading in Solitude (Sat. Aug. 18), where you can ask me questions.

• Give you 3-4 articles (written by me) to support your reading challenge.

• Celebrate our wins together!

Leo Babauta

a successful ‘simplicity’ blogger and author from California, the creator of top 25 Blog,

ZEN HABITS

2018 September Issue | 11

There’s a common link between the many things that have promoted insecurity at work: the growth of franchising; labour hire; contracting out; spin-off firms; outsourcing; global supply chains; the gig economy; and so on. It’s money.

At first, that seems too obvious to say. But I’m talking about the way financial concerns have taken control of seemingly every aspect of organisational decision-making.

And behind that lies the rise and rise of finance capital.

Read more: Who owns the world?

Tracing half the corporate giants’ shares to 30 owners Over the past three decades there has been a shift in resources from the rest of the economy to finance.

Specifically, to finance capital.

12 | Aussie Painters Network

One way to see this is in the chart below. It shows the income shares of labour and capital, and the breakdown for each between the finance and non-finance (“industrial”) sectors, in two four-year periods. They were 1990-91 to 1993-94 (when the ABS started publishing income by industry) and, most recently, 2013-14 to 2016-17. (I use four-year periods to reduce annual fluctuations and show the longerterm trends. Here is more detail and explanation of methods.)

The key thing to notice in the chart is that finance capital’s share of national income doubled (it’s the dark red boxes in the lower righthand side of the chart), while everyone else’s went down.

So, over that quarter-century, the share of labour income (wages, salaries and supplements) in national

income fell. In the early 1990s it totalled 55.02% — that’s what you get when you add labour income in finance, 3.21%, to labour income in “industrial” sectors, 51.81%. In recent years this fell to 53.58%.

There were falls in both finance labour income (from 3.81 to 2.83% of national income) and industrial labour income.

The total share of profits and “mixed income” accordingly rose from 44.99% to 46.42%. The thing is, all of that increase (and a bit more) went to finance capital. Profits in finance went from 3.16% to 6.16% of the economy.

At the same time there has been a large increase in the share of national income going to the very wealthy — the top 0.1% — in Australia and many other countries.

This shift in resources does not reflect more people being needed to do important finance jobs. Nor is it higher rewards for workers in finance. The portion of national income, and for that matter employment, devoted to labour in the financial sector actually fell from 3.21% to 2.83%.

The economy devotes proportionately no more labour time now to financial services than it did a quarter century ago. Yet rewards to finance have increased immensely.

The share of national income going to “industrial” sector profits and “mixed income” has declined.

In short, the widely recognised shift in income from labour to capital is really a net shift in income from labour, and from capital (including unincorporated enterprises) in other industries, to finance capital.

FINANCE MATTERS

hire, contracting out, spin-off firms, outsourcing, global supply chains, and even the emergence of the gig economy — it has been driven by the demands of finance capital.

Casualisation is just one manifestation of this.

Financialisation has led to finance capital taking the lead shareholdings in most large corporations, not just in Australia but in other major countries (to varying degrees) as well.

Short-term logic Now there’s no conspiracy here (or, at least, the system doesn’t rely on one). There is actually a lot of competitive mindset in the financial sector. This is just the logic of how the system increasingly has come to work. Financial returns, particularly over the short term, have become the principal (really, the only) fact driving corporate behaviour.

You may have heard about “financialisation”. It’s not really about more financial activity. It is about the growth of finance capital and its impact on the behaviour of other actors.

This role as main shareholder and, of course, chief lender to industrial capital has driven the corporate restructuring over the past three decades that has led to greater worker insecurity and low wages growth (as I recently discussed here).

When “industrial capital” has been restructured over recent decades — to promote franchising, labour

This has come at the expense of human considerations.

2018 September Issue | 13

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That same logic is behind resistance to action on climate change.

Continuing carbon emissions are the perfect, and deadly, example of short-term profits overriding longer-term interests.

Yet even finance capital is not monolithic. There are parts of finance capital that have a longer-term perspective (“there’s no business on a dead planet�). So they are effectively in battle with those parts of finance capital for which the short term is everything. The former want governments to intervene in, for example, carbon pricing.

Read more: Class and climate: how financial warfare affects the air

Policy questions

All this leaves some big questions for policymakers about how to redress the new imbalance of power.

In part, it requires changing institutional arrangements (including industrial relations laws) that in recent years have made it much harder for workers to obtain a fair share of increases in national income. It requires rethinking of how we regulate work.

But it also requires rethinking of how we regulate product markets and financial markets.

The almost global reduction in regulation of the financial sector over three decades ago has ultimately led to this imbalance. It is time to rethink all of that.

DAVID PEETZ

Professor of Employment Relations, Centre for Work, Organisation and Wellbeing, Griffith University

https://theconversation.com/finance-drives-everything-includingyour-insecurity-at-work-101107

2018 September Issue | 15

PROPOSED REMOVAL of the

Painting and Decorating Licenses On the 28th of August 2018, Master Painters met with The Hon. Matthew Kean, Minister for Innovation and Better Regulation, to discuss the proposed removal of the Painting and Decorating licence.

Master Painters made a submission with regards to the issues raised and presented it to the department on the 27th August 2018.

We are pleased to announce that the Minister has given us an undertaking that he will not remove the licensing for our trade.

We would like to thank everyone who took the time to write a submission and air their concerns.

Discussions The meeting was very open and many of the issues relating to lead and asbestos and work health and safety were discussed. The Minister made it clear that he would not go

16 | Aussie Painters Network

ahead with anything that would reduce safety standards for both workers and consumers. A great outcome for all.

Licence for life We also discussed other ways government could reduce costs for Painters and Decorators. That being a one-off payment for licensing. In other words, a ‘license for life’, unless the licence holder acts in a manner to have their licence revoked.

Red tape reduction – business cost savings

very positive meeting and we will be meeting with the head of Safework NSW in the next few weeks.

Now it’s time to have your say.

We are calling on all those in the Painting and Decorating Industry to provide us with your ideas on how the government could cut costs and red tape for your businesses so you can prosper and grow while upholding your professional standards.

Please click the COMPLETE THE SURVEY button to have your say.

We also discussed with Minister Kean ways in which we could work together in reducing red tape and saving money for Painters and Decorators without compromising standards.

We would like to thank Minister Kean for providing the Master Painters with the opportunity to consult. It was a

www.masterpainters.com.au (02) 9758 8877

COMPLETE THE SURVEY The survey will take about 1 minute. Once we receive your input we will be going back to the Minister to present your ideas.

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2018 September Issue | 17

How to Win More Quotes By Following the Exact 5 Steps (In Order) of

‘The Trust Escalator’…

How many quotes do you provide a day? A week? A month?

How many of them do you win?

And have you ever wondered why the rate wasn’t higher?

Perhaps it’s as simple as having done something wrong during ‘The Trust Escalator’. Let me explain…

Every person follows the same 5 buying decisions when they are looking to make a purchase; the Business, You, Product/Service, Price and Time.

If you and your team understand this and implement systems to help you build trust and credibility with your customer throughout these buying decisions, you could win almost every quote every time… let us take you through the 5 buying decisions of ‘The Trust Escalator’.

Buying Decision 1#: Business

Think about your Avatar and where they search for a painter…

Perhaps they go straight to the internet? If they end up on your website, they WILL make a decision on if they like you within seconds. If your website loads too slow, is hard to read, is not fresh and professional, you’ve lost them. Forever.

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This applies to every medium where your customer may find you… Facebook, vehicle signage, newspaper advertisements and much more. If your business looks professional to the customer, you claim a tick on the first stage of ‘The Trust Escalator’.

Buying Decision 2#: You

A customer will judge you in an instant and make a SNAP decision on whether or not they will use your services based off that judgment.

For many painters, it is at this stage where they lose the customers trust… even standing too close just for a moment could see you taking a dip in ‘The Trust Escalator’ and cost you the quote!

So it is this stage where it is CRITICAL for you, your admin staff, or your tradesman to be aware of how they are presenting themselves…

The person answering the phone NEEDS to be aware of: • Tone • Inclination • Speed of voice • What they’re saying The tradesman completing the quote & job NEEDS to be aware of: • Appearance (full uniform, clean shaven, etc.)

• • • •

Vehicle signage Turning up on time Smiling Making small talk

Buying Decision 3#: Product/ Service The next step in the buying decision has the customer questioning “Are you the right person to complete the work we are discussing?”

Your professional suggestions, knowledge, confidence, the language you use and the visual aids you share will all have an impact on the customer continuing to climb ‘The Trust Escalator’.

Buying Decision 4#: Price

Here we enter the conversation of ‘Price’, where the customer needs to understand value so they don’t try to haggle your price down.

The key point here is to ‘strike when they iron is hot’. Present your quote ONSITE and be confident in your communication, skills, and presentation to the customer.

Every day you leave the quote outstanding increases the likelihood of them NOT saying yes to you …

Interested in learning more about ‘The Trust Escalator?’ Check out Next Level Tradie live event in October where we discuss it in depth and help YOU apply it to your painting business...

CLICK HERE to grab \

Buying Decision 5#: Time

Time is the last of the 5 buying decisions. You are in position to ask the customer ‘is this a sooner or later thing?’.

Making suggestions of time and day at this point will simply secure the job.

This final stage completes the 5 buying decisions and hopefully has simply increased trust and credibility along the journey.

Nailing this, the 5 buying decisions within ‘The Trust Escalator’, will help win more quotes guaranteed simply through building trust and credibility with your customers at every stage.

YOUR FREE

Aussie Painters Network ticket!

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

Angela Smith

Co-founder – Lifestyle Tradie

“Helping Trade Business Owners Fast-Track Financial & Lifestyle Success”

Construction Industry Mentoring Flyer BUSY At Work and Construction Skills Queensland (CSQ) have teamed up to offer a new and exciting mentoring program for apprentices and trainees in the construction industry.

Industry Specialist Mentoring for Australian Apprentices (ISMAA) provides individual support to Australian Apprentices and Trainees in the first two years of their apprenticeship or traineeship.

The program is aimed at industries where automation, robotics and other new technology or influences are changing the future roles of apprentices and trainees, and tradespeople.

BUSY At Work are proud to be delivering the ISMAA program on behalf of the Australian Government.

We will work intensively with apprentices to help them stay engaged, complete their training and achieve great things in their careers and to become the great tradespeople of the future.

Our ISMMA mentors have a wide range of experience and understand the changing nature of your industry.

Our Industry Specialist mentors will engage with the mentee to create a specific and individual mentoring plan to be implemented over a 6 month period.

Visits will focus on workplace and industry changes, future career options and new skills that may be required.

BUSY At Work believes this program will benefit all involved and help improve the retention rate of apprentices and trainees in the construction industry.

Tim Gillespie ISMAA Mentor - BUSY At Work 0438 869 227 Tim.Gillespie@busyatwork.com.au Visit busyatwork.com.au/ismaa

2018 September Issue | 19

Industry Specialist Mentoring for Australian Apprentices (ISMAA) is funded by the Australian Government Department of Education and Training.

20 | Aussie Painters Network

Caffeine is our favourite drug. But if we miss out on our fix, it can be a real headache, in more ways than one.

Caffeine is a stimulant. It quickly enters our brain and blocks the (adenosine) receptors that are responsible for dulling brain activity.

By blocking the dulling of our brain, we feel a sense of invigoration, focus and subtle euphoria. These feelings can also enhance our performance of certain focused tasks, like driving or staying awake through the whole lecture.

This is the upside of caffeine. The downside is how we feel when we are not getting our usual dose.

Because of the anticipated highs of brain activity after our cup, the lows without it seem longer and deeper.

The other problem is that caffeine is addictive. When we aren’t getting what we’re used to, we can feel tired, inattentive, irritable and moody.

This is known as withdrawal. Many people regularly drink caffeinated beverages just to avoid feeling this way.

Read more: Health Check: four reasons to have another cup of coffee

By far the most common symptom of caffeine withdrawal is headaches. These are typically mild and short-lived, usually only lasting for a day or two, although they can sometimes last for up to week. They usually feel a bit like a tense band wrapped across your head and are sometimes called tension-type headaches as a result. However, caffeine withdrawal can also trigger a full-on migraine in some sufferers.

Why we get headaches with withdrawal (as well as many other causes) is mostly because our face and head is the most active as well as the most sensitive part of our body. For our brain to accurately know what’s happening, the signals it receives from the senses have to be spot on.

Any distortion of the signal and the message can become lost in translation, or even result in the wrong message being received. One theory for headaches is our fuzzy brain misinterprets some of the innocuous signals it gets from our head, and calls them a headache.

Some level of caffeine withdrawal would be experienced by maybe half of all regular tea or coffee drinkers, if their regular drug supply

would be completely cut off. The more we drink and the more regularly we drink caffeine, the more likely we’d experience withdrawal symptoms if we were to go without.

However, withdrawal can happen even in people who usually drink just a single cup every day who then forego caffeine. Equally, only three days of continuous coffee drinking is enough to make you feel bad when the coffee runs out.

Caffeine withdrawal only occurs with abstinence. Small amounts of caffeine (just a quarter of a cup) will keep the headaches at bay. Even if the espresso machine is broken and you have to have a (half-less caffeinated) latte, you won’t go into withdrawal.

But if you’re going cold turkey, withdrawal headaches typically peak a day or two after removing all caffeine from the menu. Withdrawal does not happen within a few hours of the last cup, despite the protestation of the habitual coffee drinker.

2018 September Issue | 21

Of course, if withdrawal is really the problem, the remedy is simple.

Any headache caused by lack of caffeine is rapidly and often completely relieved within 30 minutes to an hour of drinking a cup of tea or coffee.

Some of this is the fix and the anticipation of it. In fact, Australian researchers have found giving someone experiencing caffeine withdrawal a de-caf, but telling them it’s caffeinated, is enough to make them feel better. Of course this trick won’t work if you buy the coffee yourself.

Read more: Research Check: will a coffee a day really keep heart attacks at bay?

Surprisingly though, caffeine also has some painkiller properties. Simple pain-killers such as non-steroidal

22 | Aussie Painters Network

anti-inflammatories, aspirin or paracetamol can be more effective when formulated with some caffeine (in each dose about two to three times that in a regular cup of coffee).

For hypnic “alarm clock” headaches that wake sufferers at night, hangover-headaches and some migrainesufferers, a cup of tea or coffee can be an effective pain-killer on its own.

This analgesia is not just because we feel less stressed or less distracted by pain after a cup of tea or coffee.

It turns out the same adenosine receptors blocked by caffeine are

also implicated in the origin of headache as well as other kinds of pain.

More than 90% of all adults drink coffee or tea, rousing us from our slumber and providing the revitalising energy to do the things that need to be done. It’s not hard to imagine the headaches without it.

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

MERLIN THOMAS

Professor of Medicine, Monash University

https://theconversation.com/health-check-why-do-i-get-a-headache-when-ihavent-had-my-coffee-100163

2018 September Issue | 23

The Power of

SITE DIARIES

A well documented religiously kept Site Diary is one of the best things you can do to protect the value of your work in a Payment dispute, yet it is one of the rarest things to find.

And I’m not talking about a normal calendar diary in which you scribble a few notes here and there. I am talking about a diary specifically there to capture the great number of details and key events that happen every day on your site.

In most payment disputes the parties will argue a different (very different) version of events. It is important that you can prove your version. The way to do that is to keep a daily site diary. If you can demonstrate that you record events each day, then this document becomes ‘contemporaneous evidence’ that you can use in adjudication or other proceedings.

So what are some of the things you should record? Here are some that will make all the difference in a payment dispute:

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Contract Work done V Variation Work done The biggest argument for non payment is either ‘the work is part of your scope’ or ‘It was never approved or requested’.

You should detail the contract work done by reference to your scope of works. That way there can no argument that it is contract work. By contract you can then record the variation work done. This work will not be found in the scope of works and so is additional. The final things is to record how the variation was requested; written or oral. Record who requested it, and if written include the details of the written instruction.

Old Drawings V New Drawings Another massive are of argument is revised drawings that require additional work. The debtor will argue that the new drawings should not attract any additional cost. The best thing to do is diarise the date

you were issued new drawings and note the drawings they replaced.

You should also send your client a quote to carry out the additional work in the drawing, and diarise that too. In this way you can follow how the scope required grew, and the dates it grew, and by what value. Many times clients will try to insist that the new drawing is the one issued all along and that there never was an earlier version.

A good diary will sort that one out.

Oral Directions So often a client will give numerous oral directions that add up to a whole range of additional work.

What needs to be detailed here are all those directions that create a variation. That way the client cannot use the usual tactic of simply denying that the work was ever requested. If you can match the date the request was made with other evidence about the work, then one document backs up the other. This makes for great evidence.

Staff Onsite Often there is a dispute about labour hours. The client will usually argue that the job could not have taken that long, or that there was no staff onsite. You need to diarise who was onsite every day. That way you can support the hours claimed.

Delays Most contracts will not allow you to claim for delays. However in many contract the client will attempt to hit you with liquidated damages. A site diary can help you record exactly who delayed work each day, and for how long. Often the delay is caused by another party or by circumstances beyond your control. Sometimes an authority such as local council or WorkCover, or an energy authority will require work to cease for while. All this needs to be diarised so you can prove that you did not hold up the work.

And always check the contract to see if you need to apply for an ex-

tension of time. And if so, do it immediately.

Photos Regular readers of my articles will now that I am a great fan of the photo. It really is first class evidence for anything. If you have completed an item of work, take a picture. If another trade has damaged your work, take a picture. Try to get the date stamp on each photo and each day record the photos you have taken. So often a debtor will argue that the contractor left some work defective or that it was never completed correctly. Or that the contractor damaged some of the works. A good series of photos can crush these allegations pretty quick.

Of course you want the usual stuff too like the day and date and who from your business completed the day entry.

The most important things to bear in mind is that one day of diary entries is not what helps you: It is the ability to show months and years of entries that will give your diary almost unbeatable credibility.

So get those pens at the ready and get it in the diary! It will save you a fortune.

READ THE ARTICLE HERE :

https://www.contractorsdebtrecovery.com. au/2017/08/15/payment-power/

Anthony Igra

For more great articles and video information about dealing with payment problems go to

www.contractorsdebtrecovery.com.au

or call us on 1300 669 075

2018 September Issue | 25

“Business Groundhog Days”?

Do you have You might remember the movie with Bill Murray from the 1990s, when he wakes up every day and is forced to relive the same day over and over until he finally gets it right.

Yes, it was “Groundhog Day”. The phrase has become very popular and is used to describe any repetitive experience, whether it bears any resemblance to the goings-on of the film or not.

So let’s talk about “Business Groundhog Days” for a bit here. You’d probably agree with me in saying that things go wrong in organisations all the time. Whenever you’ve got a team of people working together, you need to make sure that they are all aware of operational issues affecting the business.

It’s not just about making the Team aware of those issues, though, it’s also about documenting what happened and how you’ve dealt with it.

26 | Aussie Painters Network

Otherwise the same mistakes can happen over and over again and make you live through your own “Business Ground Hog Days”more often than you need to.

Most businesses are acutely aware of what is going wrong but fail to document, find causes, allocate responsibility and conduct training to make sure the issues do not recur.

Successful business organisations establish a continual improvement process, and it’s not difficult to do even in small organisations. Eventually you’ll spend less time on “fire fighting” and more time on growing your business.

Step 1 Establish an Operational Issue Log Firstly, let’s have a look at what you might consider to bean operational issue. Essentially, they are problems,

inconsistencies, or conflicts that occur unexpectedly. They can also include problems with the staff or suppliers, technical failures, material shortages, or any other problem that has a negative impact on your business. If the issues remain unresolved, and on top of that the solution undocumented, they are likely to re-occur at a different time and in a similar situation.

The issue log, sometimes also known as an issue register, is a document where all issues that are negatively affecting the business are recorded and tracked. When an issue log is created, it provides a tool for reporting and communicating all that is happening in this client project or in internal processes. It’s a lot like a support ticket that’s created when you call a help desk: the problem is logged and given an identifier, then the issue is tracked—all the way through to resolution.

Step 2 Allocate who is responsible for the issue.

Not every issue can be successfully resolved by any Team member.

That’s why it is important to decide who is the best person to handle the issue and allocate responsibility to them. This staff member, often in consultation with the business owner depending on the sensitivity of the issue, should be taking the steps to manage and resolve the issue.

Starting with documenting it in the issue log, the staff should describe the reasons and circumstances that led to the issue occurring and setout the steps to successfully resolve the issue. If a series of actions are needed to deal with the issue, then you can create an action plan and allocate responsibility too their employees, if required.

Step 3. Set up procedures of training so that the issue does not recur.

This is a really important step but all too often neglected. It is not enough to have a team member maintain the Operational Issue Log. The log needs to be a living document, centrally accessible to everyone so they can look up whether it is a new issue that has occurred or one that has already been logged and a solution found.

The issue log should also name the person responsible for each issue, so that Team members can tap into their deeper knowledge of the matter. You can set up a system to maintain the issue log online or in hard copy. The online solution has the advantage that you won’t

have outdated paper copies flying around in someone’s desk drawer that could mislead your staff.

In addition,standard emails to approve the resolution of an operational issue and a monthly summary email of all operational issues should be set up to ensure that all your staff can stay informed. Ensure project plans are created for any major issues that need resolving and require a more complex response.

Step 4. Ensure that accountability is assigned to people so that performance can be assessed.

Assigning responsibility to handle or resolve operational issues also comes with accountability needs.

As the boss, you want to be sure that things are done to your satisfaction and the best way to achieve this is by integrating the issue log responsibility into your staff member’s performance review.

If you’re looking for help or templates to get an Operational Issue Log or Procedures Manual started, please contact us. If you need more straight performance talk and business advice that works, feel free to arrange a FREE NoObligation Meeting with me. Call me on (07)3399 8844, or just visit our website at www.straighttalkat. com.auand complete your details on our Home page to request an appointment.

Copyright © 2018Robert Bauman.

2018 September Issue | 27

28 | Aussie Painters Network

6 Essential Accounting Terms for Small Businesses Hiring a bookkeeper and accountant is widely considered best practice for small business owners. But delegating financial analysis and reporting doesn’t mean completely checking out of the process each month or quarter. On the contrary, it’s recommended that business owners work closely with their bookkeepers and accountants throughout the year to better understand their financial position and make smart plans for future growth.

Want to increase your accounting knowledge so you can have more informed, insightful discussions with your account this quarter?

Start right now, with this list of 6 essential accounting terms for small business owners.

1. Cash Flow Do you have more cash flowing into your business each month than you

pay out to cover costs and expenses?

If so, your bookkeeper will conclude that you’re “cash flow positive.” If the opposite is true, your cash flow statement will reveal that you’re “cash flow negative.”

2. Profit and Loss Statement The profit and loss statement (also known as t income statement) is one of the most important documents used by bookkeepers to determine the profitability of your business.

Having excess cash on hand means you’re better equipped to keep up with debt, cover unforeseen expenses, and invest in growth opportunities. Your bookkeeper will generate a cash flow statement each quarter to keep tabs on this key performance indicator.

The P&L statement lists revenues and gains as well as expenses and losses over a specific period of time (typically every three months for small businesses). It calculates your all important “bottom line” so you know if you’re operating at a loss or turning a profit.

2018 September Issue | 29

3. Gross vs Net Profit Gross profit is what remains when you subtract the cost of goods sold (COGS) from your total revenue. Net profit, on the other hand, drills deeper. It reveals your exact dollar per profit of sales after subtracting all operating expenses, including COGS, taxes, interest paid on debt, etc.

Gross and net profit are both profitability ratios. They are key for measuring business performance against an industry benchmark and your competitors.

4. Balance Sheet The balance sheet offers a snapshot of your overall financial position at a particular moment in time. It lists the assets (such as cash, inventory, accounts receivable, and equipment); liabilities (like accounts payable, income tax, and employee salaries); and shareholder capital. In a nutshell, the balance sheet shows what you own, as well as what you owe.

5. Accounts Receivable & Accounts Payable Simply put, accounts receivable is money your business is owed by customers for goods or services sold. It is considered an asset on your balance sheet. Conversely, accounts payable is money you owe suppliers and any bills you have yet to pay, so it’s listed as a liability on your balance sheet.

6. Bad Debt Expenses Bad debt happens when you can’t collect payment from your customers. Long term outstanding accounts receivable could be listed on your balance sheet as “bad debts”, and if they’re never collected, may have to be written off as a loss.

And there you have it – six key terms to help you build your accounting vocabulary, join the conversation, and empower smarter decision-making.

Sandra Price Phone: 07 33724554 VISIT US ON FACEBOOK

30 | Aussie Painters Network

䤀渀猀甀爀愀渀挀攀 昀漀爀

倀䄀䤀一吀䔀刀匀 䐀漀 礀漀甀 眀愀渀琀 琀漀 搀攀愀氀 眀椀琀栀 愀渀 椀渀猀甀爀愀渀挀攀 挀漀洀瀀愀渀礀 琀栀愀琀 栀愀猀 琀栀攀 戀攀猀琀 愀瘀愀椀氀愀戀氀攀Ⰰ 挀漀猀琀ⴀ攀û攀挀琀椀瘀攀 椀渀猀甀爀愀渀挀攀 昀漀爀 琀爀愀搀椀攀猀㼀

䄀甀猀猀椀攀 倀愀椀渀琀攀爀猀 一攀琀眀漀爀欀 栀愀猀 渀攀最漀琀椀愀琀攀搀 琀栀攀 戀攀猀琀 瀀漀猀猀椀戀氀攀 挀漀瘀攀爀 昀漀爀 礀漀甀爀 戀甀猀椀渀攀猀猀⸀ 䌀漀渀琀愀挀琀 甀猀 搀椀爀攀挀琀氀礀 昀漀爀 洀漀爀攀 椀渀昀漀爀洀愀琀椀漀渀 愀渀搀 琀漀 最攀琀 礀漀甀爀 挀漀瘀攀爀 琀漀搀愀礀℀

吀栀攀 猀攀挀甀爀椀琀礀 昀漀爀 琀栀椀猀 瀀爀漀搀甀挀琀 椀猀 瀀氀愀挀攀搀 瘀椀愀 䰀氀漀礀搀猀 漀昀 䰀漀渀搀漀渀 愀猀 眀攀氀氀 愀猀 漀琀栀攀爀 䄀甀猀琀爀愀氀椀愀渀 愀甀琀栀漀爀椀猀攀搀 椀渀猀甀爀攀爀猀⸀ ㄀㠀 ㌀㔀㔀 ㌀㐀㐀 椀渀昀漀䀀愀甀猀猀椀攀瀀愀椀渀琀攀爀猀渀攀琀眀漀爀欀⸀挀漀洀⸀愀甀 眀眀眀⸀愀甀猀猀椀攀瀀愀椀渀琀攀爀猀渀攀琀眀漀爀欀⸀挀漀洀⸀愀甀

The ‘Floating City’ of Italy Venice would rank in the best top 10 cities I have been to. My first visit here was in 1975; it is now my forth, and I am still mesmerized by its’ architectural beauty and the history it holds. For a place that is over 1600 years old, there is nothing like it to compare to any other city. Where else can you go where driving to work means hopping into a boat! The place is truly amazing and I never really knew the history of it until a recent Google search.

Venice dates back to 402AD when people sought refuge. They consisted of frightened men coming from the nearby Italian mainland.

32 | Aussie Painters Network

For centuries these people had enjoyed prosperous lives in a chain of splendid cities of the Roman Empire that strung along the northeastern shores of the Adriatic.

But in the early years of the fifth century, with the collapse of the Roman Empire and barbarians sweeping down from northern Europe, their communities were thrown into chaos. The populations of these towns fled before the Goths, seeking a refuge where their enemies could not follow them.

As further waves of invaders swept across the mainland, more and

more people sought sanctuary in the channels and shoals of the (Venice) lagoon. They were faced with the need for more space and a stronger foundation to live on, so they had to find ways to strengthen the islands, drain them, enlarge them and protect the fragile environment. So hundreds of canals were dug out and the banks shored up with wood pilings. They also used similar wood pilings as foundations for their buildings. The settlers pounded thousands of these into the mud, so close together that they were touching.

They were then cut off at the tops where horizontal timbers placed. A stone foundation was then laid on the top to create solid platforms for their homes. Because the wood is submerged underwater and is not exposed to oxygen, it doesn’t rot.

In fact, the wood becomes petrified due to a constant flow of mineral rich water around and through it and as a result, the wood becomes a hardened stone-like structure.

According to tradition, Venice formally became into existence at the stroke of noon on the 25th March, 421 A.D. but, it wasn’t until around 450 A.D. that the large numbers of people decided to settle permanently. Now, the 117 islands that make up Venice, are all linked together by numerous small bridges over the canals (and three much larger bridges over the Grand Canal).

Today, some people say Venice should be called the sinking city rather than the floating city. But, Venice began sinking the moment it was built. From the beginning, the weight of the city pushed down on the dirt and mud that it was built on, squeezing out water and compacting the soil. This phenomenon, together with the natural movement of

high tides (called acqua-alta) cause periodic flooding in the city, creating a sinking sensation. Over the past 100 years, the city has sunk nine inches. Some experts warn that global warming will cause sea levels to rise and eventually cover the Adriatic coastline and the city of Venice by 2100.

2018 September Issue | 33

䴀礀 倀愀椀渀琀

䌀漀猀琀椀渀最 䜀甀椀搀攀

䴀礀 䠀漀甀爀氀礀 刀愀琀攀 䌀愀氀挀甀氀愀琀漀爀

34 | Aussie Painters Network 眀眀眀⸀洀礀琀漀漀氀猀㐀戀甀猀椀渀攀猀猀⸀挀漀洀

Although there’s always thousands of people around in the main shopping areas, you can easily wander down the side streets to get away from the hustle and bustle of the tourists.

There, you can mingle with the locals and eat and drink at the small cafes without breaking your bank account.

In Saint Marks Square for instance, you could pay up to 40 Euro just for the pleasure of sitting down to drink a cup of coffee. My wife and I are certainly going to enjoy our short stay here before setting off to Croatia and Austria for five weeks.

Jim Baker MyTools4Business

2018 September Issue | 35

Combating the World of All Fluff and No Stuff I don’t spend a lot of time on social media but I do use it to communicate with family, friends, and high school buddies etc. Recently, I saw a “who you might know” photo from an old client come up. This guy always struggled to make a living as a contractor and after a few years, he just gave it up. Curious as to how he is doing now, I clicked to see. Well, he is a sales trainer and motivational speaker. I laughed so loud I almost fell out of my chair. Here is a guy who couldn’t keep 3 people employed to make a living but now is an expert.

For years, someone with a pick-up truck, ladder and shovel can be a contractor. Now with an 8 by 10 glossy and some slick verbiage, you are an internet authority. While social media and a web presence is a must, just because someone has an online profile doesn’t mean they are a real contractor.

One of the real difficulties with social media is that it measures customer

36 | Aussie Painters Network

service but it does not do a good job of measuring the quality of long term craftsmanship. A clean cut person can show up at your door, be courteous and prompt but two years later the project fails.

If you go to a restaurant and have a nice meal, you can rate that restaurant on line for instant satisfaction.

That meal does not make you sick two years from now when it fails.

One way to combat the all fluff no stuff contractors is to do a good job of emphasizing past jobs and longevity in the marketplace. Don’t just take a photo of job you recently completed; show a 7 years old job that still looks good. When talking to customers about product, emphasize different parts of your job that ensures it will last a long time. For example, caulking might be a small part of the overall project but you can easily explain to the customer the difference between a caulk that might fail in two years and one that is guaranteed for 25 years.

Don’t just list a few customers with quotes. If you have been in business for 10 years and 50 houses a year, show a small print list of the 500 addresses you have painted. If you work a lot in the same neighbourhoods, shows dots on a map that emphasizes your density. Emphasize trade associations you are members of and any manufacturer certifications you might have.

If you are going to play the social media game, have a process where you encourage your customers to post something about your business. It is all about the law of averages. The more the merrier.

Many contractors are great public citizens but do a poor job of promoting their generosity. The next time you help a charity or do some type of public event, send a press release to the media. You can also take some photos of your effort and post them to your webpage or email past customers.

Too many contractors act as invisible forces within their community. Many go to work before the sun comes up and get home after dark. Except for customers, no one knows who they are. Consider joining Rotary, Lions or other business community groups. Be a real and tangible force in your community.

All fluff and no stuff can also be an issue when hiring employees.

Sometimes the employee who gives the best interview and has the prettiest resume is not the best fit. Be willing to investigate potential hires. If an employee looks too good to be true, they probably are: • During the interview process ask questions that force the person to think in talk. “Tell me about the first job you worked.”“What did you like and dislike about your last job.”“When I call your former employer, what do you think they might say?” I asked an interviewee this once and her reply was “Well, what happened is really not normal. When my husband came to work with a gun, he had not been taking his meds.”

• Check all employee references to make sure they are real. If I was in prison for embezzlement or drugs, I would probably fake my resume.

• Look on line and see what you can find out about the applicant.

I had someone apply to a job but when I looked on line, they were falling down drunk in almost every Facebook post.

• Perform some type of skill testing. For the office, give them an old fashion typing test. For field people, watch them perform some type of skill.

• When hiring immigrant workers, have an application form in their native language and see if they can fill it out in front of you.

Don’t just listen to what the employee has to say or presents, see what they can do. In some cases, consider hiring them for a day or two to see how it goes. Do everything you can to judge that person on facts.

Another amusing exercise is to bring in your largest supplier reps. Tell them you love their company and price. Curiously, ask them how big a typical rep’s territory size is and their average annual sales volume.

Next, say that is what you thought.

Now do some calculations on how much volume your business represents. If the average territory is 5m and you do 500,000, you represent 10% of that reps volume. Are you getting 10% of that rep’s time or value? A reps cost may be 1-4% of the cost of what you buy.

Tell the rep you need more value or you would rather not have a sales rep and would like to become a house account. Ask the rep to come back to you with specific things he or she can do to bring more value. Don’t be surprised if all they can do is give you a couple of percentage point discounts. You see reps do have value. They are an opportunity to gain a lower price.

Fighting all fluff from when buying from vendors can also be worthwhile. Finding good salespeople with something to offer and companies that have a unique buying proposition can be really tough.

There are a couple of strategies that can be very entertaining and financially successful. First, when someone calls on you, be nice and listen. Then tell them to send you an email with specific things they can do for you other than offer a lower price. Let them know that on time delivery and inventory does not count. They are supposed to be on time. They are supposed to have the product they sell you in stock. You want to know specific dollars and cents facts on how they are a better buy.

You can’t negotiate with the internet or with a product on a store shelf.The reality is if that rep can’t deliver value, they are just another added cost of doing business or a way to lower your price. When I was a child, I found Winnie the Pooh was stuffed with fluff but offered much wisdom and stuff. Oh my, where is Winnie when you need him?

Monroe Porter

is president of PROOF Management a firm that teaches seminars and runs networking groups for painting contractors.

www.proofman.com

2018 September Issue | 37

The Industry

Idiots

38 | Aussie Painters Network

Important Contacts Aussie Painters Network www.aussiepaintersnetwork.com.au

Ph. 0430 399 800

National Institute for Painting and Decorating www.painters.edu.au

Ph. 1300 319 790

Australian Tax Office www.ato.gov.au

Ph. 13 72 26 / Ph. 13 28 65

Award Rates www.fairwork.gov.au

Ph. 13 13 94

Fair Work Building & Construction www.fwbc.gov.au

Ph. 1800 003 338

Mates In Construction www.matesinconstruction.com.au

Ph. 1300 642 111

Workplace Health and Safety Contacts Comcare WorkSafe ACT Workplace Health and Safety QLD Victorian WorkCover Authority WorkCover NSW SafeWork SA WorkSafe WA NT WorkSafe WorkSafe Tasmania

www.comcare.gov.au www.worksafe.act.gov.au www.worksafe.qld.gov.au www.vwa.vic.gov.au www.workcover.nsw.gov.au www.safework.sa.gov.au www.commerce.wa.gov.au/WorkSafe/ www.worksafe.nt.gov.au www.worksafe.tas.gov.au

1300 366 979 02 6207 3000 1300 362 128 1800 136 089 13 10 50 1300 365 255 1300 307 877 1800 019 115 1300 366 322

www.actcancer.org www.cancercouncil.com.au www.cancercouncilnt.com.au www.cancerqld.org.au www.cancersa.org.au www.cancervic.org.au www.cancerwa.asn.au

(02) 6257 9999 (02) 9334 1900 (08) 8927 4888 (07) 3634 5100 (08) 8291 4111 (03) 9635 5000 (08) 9212 4333

Cancer Council Australia ACT NSW NT QLD SA VIC WA

2018 September Issue | 39