Success Business Magazine - Issue 1 | Winter 2011 by Success North Queensland

ISSUE 1 | WINTER 2011

YOURS FREE

our

humble hero

JOHN BEARNE CEMENTS NORTH QUEENSLAND’S FUTURE

australia’s best THE POWER OF DREAMING BIG

profits & cash flow FUNDAMENTALS FOR GOOD BUSINESS MANAGEMENT

Special OUR

LAUNCH EDITION

bits & gadgets BUSINESS TOOLS OF TODAY

Imagination meets engineering. The dynamic new Audi A7 Sportback. When imagination meets engineering, thereâ&#x20AC;&#x2122;s no limit to where it can take you. With the dynamics you want, the versatility you need and the progressiveness you expect, the new Audi A7 Sportback is Vorsprung durch Technik on a grand scale. Experience award winning performance visit Audi Centre Townsville, awarded Audi Dealer of the Year for 2 consecutive years - 2009 and 2010

Audi Centre Townsville | 15-17 Bowen Road, Townsville Tel. 07 4729 5295 | www.audicentretownsville.com.au

Overseas model shown. ATO8017

Mark of Excellence Award Dealer of the Year 2010

inside

WHAT’S INSIDE

the regulars 06 07 12 22 26 31 36 38

News Desk Regional Update Just for Fun On the Rise Franchise Focus Bits & Gadgets Product Review Cheers & Beers

cover feature JOHN BEARNE SHARES HIS STORY

the contributors 13 Self Managed Super Funds

HELPING SMSF HOLDERS AVOID A LIQUIDITY TRAP

14 Escalate Your Investment RECEIVE TAX FREE DOLLARS FOR TEN YEARS

19 People, Performance & Profits HOW TO GET THE MOST FROM YOUR TEAM

24 Adding Value

feature BACKING A WINNER AT THE TOWNSVILLE TURF CLUB

CORPORATE HOSPITALITY IS NOT A DIRTY WORD

25 Your Feet At Work HOW THE CORRECT FOOTWEAR KEEPS YOU MOVING

feature

28 Addressing Impending Skills Shortages WHY APPRENTICES & TRAINEES ARE THE ANSWER

29 Are You Connected? SOCIAL MEDIA MARKETING IS HERE TO STAY

33 Profits & Cash Flow FUNDAMENTALS FOR GOOD BUSINESS MANAGEMENT

34 Cost Saving, At What Cost? MAKE YOUR ADVERTISING DOLLAR GO FURTHER

CELEBRATE WITH A SPLASH AT THE BURDEKIN WATER FESTIVAL

CHOICE TRAINING AD

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NOTES

publisher’s panel EDITOR Marissa Candy editor@successbusinessmag.com.au SALES & MARKETING Rebecca Hutton rebecca@successbusinessmag.com.au JOURNALISTS Rachel Licciardello Kylie Davis DESIGN & PHOTOGRAPHY Skye Millard Luke Taylor Success Business Magazine Pty Ltd PO Box 5660 Townsville QLD 4810 22 Walker Street, Townsville QLD 4810 ph. 0412 685 669 fx. 07 4721 1974 www.successbusinessmag.com.au Find us on facebook Follow us on Twitter

from the editor. All for the love of media... It all started in 1999, when working for a large national brand that my love for the media commenced. I was introduced to ATB’s (Authority To Broadcast) and from that point forward, I wanted to know more, more about TARPS (Total Audience Rating Points), more about R&Fs (Reach and Frequency) and any other acronym that the industry used. Now as a business owner, nothing inspires me more than reading about people who share a passion for their business and their journey like I do. There are so many people I look up to in business and I’m proud to say that a lot of these have been North Queensland locals. Success Business Magazine has been created to promote North Queensland business on a national level. Our focus is to highlight the business environment of North Queensland, showcase

the many talented people that make up our solid economy, and celebrate the many industries that are represented within it. Whether you are a newsagency owner in Charters Towers, or the CEO of a property listed trust on the ASX, we hope Success Business Magazine empowers change within your business and becomes a useful tool for you. Great things can only be created by great people – and you will hear me constantly mention and thank the fantastic group of people I’m proud to share my “business time” with. The team and I have met many new friends on our journey so far, and look forward to meeting many more, as we spread the good word of “success” further. Thank you for welcoming the launch of North Queensland’s newest communication platform - we look forward to sharing our stories with you – enjoy. •

- Marissa Candy.

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NEWS

news

desk. YOUR LOCAL NEWS FEED

SIGNS OF GROWTH

BCK LAWYERS HELP OUT

Paradise Outdoor Advertising would like to welcome Jason Trim to the team to head up Business Development for the Townsville, Burdekin, Charters Towers and Mount Isa regions. Many would know Jason from his previous roles in the professional sports sector with the Townsville Crocodiles and more recently within the tourism sector with Sunferries.

BCK Lawyers has joined hands with our local Young Carers Program here in Townsville, by donating a laptop to one of their carers. The Young Carers program supports people under the age of 26 who provide care in a family affected by illness, disability, mental health, drug or alcohol issues. To understand more about this program visit www.youngcarers.net.au

CATHOLIC EDUCATION TO EXPAND

WHK ASSISTS SMALL BUSINESS

AQUARIUS TEAMS UP WITH STRAND FITNESS

Catholic Education is set to expand in the Whitsundays, with a second campus to be constructed this year for St Catherine’s School. Students in Years 5-7 will move to the new campus in 2012 and it is anticipated that Year 8 will be offered in 2013, with subsequent secondary grade levels offered each year.

The WHK Tax Specialist Team has just completed over 1,000 trust deed reviews for clients as a result of recent ATO developments. The outcome of these reviews is that local small business clients will be better placed to move forward with effective tax arrangements in place for their groups.

All guests can now build up a sweat when staying at Aquarius on the Beach, just show your room key for complimentary entry to Strand Fitness. So if you have colleagues coming to Townsville this is a great opportunity for them to stay at Townsville’s premier beachfront property and stay fit. •

Submit your business news, achievements, staff movements in 75 words or fewer to info@successbusinessmag.com.au

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UPDATE

regional update

JOHN CAREY

TREVOR GOLDSTONE

PRESIDENT TOWNSVILLE CHAMBER OF COMMERCE

CHIEF EXECUTIVE OFFICER TOWNSVILLE ENTERPRISE

They say that challenges are opportunities in the making. If this is true, North Queenslanders have a plethora of opportunities before them right now. Townsville offers what few other cities have: a diversified and growing economy coupled with family-friendly living in a rich natural environment. More and more people look to the North for the perfect work-life balance. Professionals are in demand as Townsville develops into Queensland’s second capital, as is the need for trade and service related employment in the construction, transport and retail industries. Although the region has many opportunities for job seekers, the area continues to grapple with the local impact of Cyclone Yasi and more broadly, that of the GFC. The strength of certain segments of our local economy, namely mining and the public sector, highlights the predicament of small to medium businesses that rely on discretionary expenses. There is no doubt we continue to approach the future with caution with most Australians preferring to hold on to their hard earned cash rather than spend it. It is in times like these that organisations such as the Townsville Chamber of Commerce come to the fore. The Chamber presents quality networking and educational opportunities to members including some for young professionals new to the area. As the voice of the business community, the Chamber advocates on issues such as economic development, transport, telecommunication, and balanced growth. We regularly conduct development missions overseas and in rural Queensland. The Chamber offers its 570 members opportunities to be part of one of the largest business networks in North Queensland, to promote their business, access local knowledge and help shape the future of Townsville’s business community.

Those of us who reside and do business in North Queensland are looking forward to obtaining some clarity around the Queensland Government’s priority projects for Townsville and North Queensland. It’s been nearly 12 months since the Premier Anna Bligh addressed the Queensland Growth Management Summit in Brisbane (which I attended) and declared Townsville as being the logical second capital of Queensland. The Townsville Futures Taskforce was borne out of that presentation to a who’s-who of industry, government and community groups. There is still much anticipation about the exact contents of the Townsville Futures Plan developed by that Taskforce because of what it represents in terms of building business confidence in Townsville and North Queensland. We have some idea of what to expect when the Premier signs off on the Townsville Futures Plan, primarily because the Townsville Enterprise Board contributed four members to the Taskforce including our Chairman John Bearne. There will be some projects which will no doubt align with the strategic goals of Townsville Enterprise as North Queensland’s voice of industry, business and tourism. I’m sure there will also be projects and priorities included in the plan which complement the work being done by our organisation. Premier Bligh described the need for several key projects to turbo-charge the north’s economy to ensure the region is well placed to attract investment, a skilled workforce to support industry and the necessary amenities for our community as the population continues to grow. Research recently undertaken by Townsville Enterprise has identified almost $29 billion worth of development projects either approved or underway or earmarked for the future. That is certainly the start of a solid argument for any investor asking whether Townsville represents an opportunity for their business or venture. Many of the projects identified in this report are led by Townsville Enterprise members and we, as an organisation, will continue to support them in helping our region to prosper. •

We congratulate Success Business Magazine on its inaugural edition. • successbusinessmag.com.au

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HUMBLE HER O By RACHEL LICCIARDELLO

After steering his own business to success, John Bearne has spent the past three years sitting in a new chair. And it fits just right. 08

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COVER FEATURE

verything about Townsville Enterprise chairman John Bearne seems refined; from his English manners and London accent to his neatly groomed appearance. However, the 63-year-old businessman admits there is another side to his polished persona. “I don’t think you can be a successful businessperson without having that little bit of mongrel in you,” laughs John. After 24 years running his own construction company, TCS Pty Ltd (previously Total Construction Services Pty Ltd), John seems to be on the money. TCS is now a major player in specialised construction of bridges and complex structures, with operations in Townsville, Cairns, Darwin and PNG. “When TCS competes for jobs now, it goes up against the nationals, like Leightons and the Abi Group – the big guns,” explains John. For a business borne out of circumstance, this has been quite a feat. After shifting from Central London to suburban Kent, then escaping to sunny Australia, and living on their boat in PNG for 18 months, John and his then-wife Annette settled in Townsville to start their family. “My first job here was project managing construction works, and I ended up working at sites at Bedarra Island, Lizard Island, Dunk Island and Cooktown,” explains John. “We had returned to Australia so we could settle and set up home, but I was never home!” The changing tide came one night when John was twilight sailing with friends. “It’s funny the things you remember vividly; it was a Wednesday night, the stars were out, the moon was shining, the seas were calm and a friend asked ‘why would you ever want to leave this?’ I looked around and realised I had no answer.” The next day, after discovering Annette shared his hesitation to leave, John resigned his job, and the family stayed in Townsville. “At that point I was 40, had a wife and two children [Emma and Paul], and no job. So I decided to start my own business,” recalls John. “I had no business plan, no support from the bank, just a situation where I needed to make this business work.” TCS actually started out as CCA, (Construction Contracts Administration), but as the business struggled through its first six months, John realised he had to follow the market. “The work I was doing was mostly construction so I re-focused the business.” In just a short time, John managed to fill a niche, creating a reputation for TCS as a specialised bridge and rail construction company. His skills as an engineer and experience in construction gave him the confidence to say ‘Yes’ to jobs his competitors would say ‘No way, too hard’ to. “I didn’t set out to build bridges,” laughs John, “ but taking on work other companies thought was too complicated gave us the competitive edge.” Over the years the company has also diversified which means during downturns TCS has been able to shuffle its focus between its three arms – construction, project management and precast concrete products – and stay busy. “During every downturn the market has endured over the 24 years, TCS hasn’t just ‘survived’ but it has performed very well.”

With over $50 million in future works and a resume that lists four of the five bridges that cross Ross River and Ross Creek, buildings like the Grand Mercure and Hotel Ibis, an $8 million major upgrade to the iconic Dairy Farmers Stadium, and production and supply of the 1,340 pre-cast track barriers for the Townsville V8 Supercar racing precinct, TCS maintains its solid market positioning. Three years ago John, as Managing Director implemented his succession plan at TCS. He appointed two long serving employees as directors, Richard Semler and Christine Polkinghorne, to help him run the business and a CEO Dawson Wilkie. “I hired a different CEO so the business could benefit from someone with a bigger, broader company experience,” explains John, who acknowledges that part of good management is knowing your own limitations. “I have business experience but it’s largely limited to TCS. I wanted a CEO who has different experience, who’ll make different decisions.” John’s step back from the business has not only been to help the business step forward, “to become a different animal,” but has also allowed him more time to give back to the community he believes has supported him through his own ups and downs. “This is the city where we raised our children, where I founded my business, where I’ve spent most of my life. If I can use my skills, experience and connections to help our city prosper, then brilliant,” explains John, before adding, “Being on boards of notfor-profit organisations like Townsville Enterprise is the only way to make significant change – without going into politics.” John’s first involvement on a community board was in 1983 when he experienced what he describes as a “baptism of fire” and chaired the Rowes Bay Pre-school and Kindergarten Association. “In my first year as chair of the board we were faced with potential closure, and had to upgrade the kindy, with minimal funds, so I went to the council and asked for an interestfree loan,” recalls John, who got the loan and helped the kindy stay open. Perhaps it was this initial success, the satisfaction of making things happen for his community that has kept John actively involved in community boards for almost three decades. He was President of the Townsville Chamber of Commerce from 2003 to 2005, during which time he was also a director on the board of Townsville Enterprise, he was the inaugural chair of the Australian Technical College North Queensland from 2005 to 2007, and remains the inaugural Chair of the Jezzine Community Trust since 2008, as well as a member on the Townsville Futures Taskforce Committee, and Chairman of the Economic Recovery Taskforce. At the time of this interview John was preparing for his second appearance as the only North Queensland representative judge for the prestigious Queensland Greats Awards.

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COVER PAGE NAME FEATURE It is his ability to “get things done” that John believes was the reason for Townsville Enterprise inviting him to take the top spot as Chair in 2008. And with his refined business acumen, undeniable ambition and obvious clout, John Bearne has taken to his role with the same ease Goldilocks took to the smallest bear’s chair. “Townsville Enterprise always has a lot going on, but sometimes it’s difficult to show people results when we’re working on Townsville’s big picture future – 30—40 years from now,” explains John. “Right now, my main focuses for the very near future are the CopperString line project that will potentially make North Queensland the only green energy region in Australia, and the Cromarty Wetlands development that will be massive for eco-tourism and research.” When asked what his biggest accomplishment for Townsville has been, John hesitates. “I live life in the moment in the sense that whatever I’m working on is what’s most important. Was the technical college any more important than Jezzine is? Is Jezzine any more important than Cromarty Wetlands is? No, they’re just different. The important point is that these projects are helping Townsville grow.” •

MAKING THINGS HAPPEN Just a few of the projects John is helping make happen right now…

COMMUNITY: Jezzine Community Precinct As chair of the Jezzine Community Trust, John and the committee have already secured $40 million in funding from the community and all three levels of government. Now, the trust is working on design plans for the cultural precinct before handing the project over to council. The Jezzine Community Trust’s efforts in public consultation and working with the Traditional Land Owners and military group stakeholders won the trust a 2009 Public Relations Institute of Australia Golden Targets award for community relations.

ENVIRONMENT: Cromarty Wetlands Located just south of Townsville, near AIMS, the 1600-hectare Cromarty Wetlands is extremely diverse, fertile wetlands that John says, “blows any other wetlands you’ve seen off the map; in just one day there 12,000 brolgas were photographed”. After raising $2.5 million to purchase the land, Townsville Enterprise is now working with The Wetlands and Grasslands Foundation to develop the area into a destination for eco-tourism, education and research.

ENERGY: CopperString Project CopperString is a prospective 720km transmission line that would stretch from Woodstock to Mt Isa and improve the reliability of power supply in the north, increase supply capacity and provide the opportunity to exploit renewable energy sources like wind, solar geothermal and biomass via the surrounding mines. If CopperString progresses, it will be the single largest transmission project in the country, create a competitively priced energy market for north Queensland, develop a clean energy corridor and encourage economic growth in our region. “CopperString is big project stuff,” tells John. “With big infrastructure comes follow-on business, economic growth, population growth… the opportunities are limitless.”

[At the time of print, Xstrata was days off making a decision on the mining company’s involvement in CopperString, which is integral to the project.]

TRANSPORT: Port of Townsville precinct

Townsville Enterprise is just steps away from securing more land for the port, which John says will allow for a business hub right at the port’s doorstep. “Businesses that use the port could have small transfer stations, cattle holding pens, or whatever they need to make using the port more efficient.” successbusinessmag.com.au

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FUN

word play SEE IF YOU CAN FIND THE CORRECT MEANING FOR EACH OF OUR UNIQUE WORDS AND CHALLENGE YOURSELF TO USE THEM IN YOUR NEXT BUSINESS MEETING.

just for fun 12

1. ASPERSION

3. FLAIL

a. A chemical reaction that occurs when zinc touches water

a. To show flamboyance

b. A derogatory criticism

b. The common medical term for incurable hiccups

c. When an established group separates

c. To strike out wildly at

d. A cleaning process applied to leather

d. To console

2. PUGNACIOUS

4. HULLABALOO

a. Fond of fighting

a. A music festival held in Texas annually

b. Arrogant

b. A noise or disturbance

c. Adventurous

c. Type of aquatic bird found in cold regions

d. Witty and humorous

d. A word to describe a big deal

brand match

CAN YOU MATCH THE CELEBRITY PICTURED WITH THE COMPANY THEY ENDORSE?

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Please turn to page 38 for answers.

MAGNITUDE FINANCIAL PLANNING

helping SMSF holders avoid a liquidity trap By DENNIS DI BARTOLO / DIRECTOR / MAGNITUDE FINANCIAL PLANNING One of the advantages of having your own Self-Managed Superannuation Fund (SMSF) is the variety of investments that you can hold. The most popular areas to invest in are direct shares, rental properties, business premises and sometimes even simple term deposits. Ideally, many of these investments will be held for the long term to help grow your wealth and eventually support you throughout your retirement.

and lifestyle adjustments can be enough of a challenge, but you also need to consider how your SMSF would be affected. Would the property have to be sold? Do you want to ensure the property is retained in the fund?

But one day you may need to offload some of your most significant investments to meet the obligations of your SMSF. Large assets such as property can be difficult to sell in an emergency.

Another popular strategy for SMSFs is taking out a loan to buy more investments than it could otherwise achieve. If this is your situation, it makes sense that your SMSF’s main focus over the coming years will be reducing the debt, perhaps by using rental income and/or superannuation contributions to do so. It’s likely the bank has relied on those contributions continuing as well. What if they don’t? What if one of the contributing members is no longer around or is no longer working? Who will meet the repayments?

As a SMSF trustee, you are required by law to have an investment strategy. Among other things, the strategy needs to consider any potential liquidity issues for the fund. You need to ensure that your fund is prepared.

This information is current as at April 2011. Magnitude Financial Planners are authorised representatives of Magnitude. This information was prepared by Magnitude Group Pty Ltd ABN 54 086 266 202 AFSL 221557. This information does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness having regard to these factors before acting on it.

DOES YOUR FUND LOOK LIKE THIS? Many small business owners in Australia use SMSFs to hold their business premises. It can be an effective strategy available for tax and estate planning, but liquidity problems can arise in certain situations. One example is the unexpected death or permanent disablement of one of the SMSF’s members. Dealing with the emotional

HAVE YOU UNDERTAKEN A SUPER BORROWING STRATEGY?

NOW THERE’S A BETTER WAY A well-structured funding plan for the SMSF can help deal with scenarios like these. It would be recommended to seek financial advice from a SMSF qualified financial planner to ensure these risks are mitigated before it’s too late. •

Put your superannuation in the safest hands you know. Your own. To find out whether setting up your own Self Managed Superannuation Fund is right for you, arrange a meeting with us to discuss: • The benefits of a Self Managed Superannuation Fund and how they work • Your obligations and responsibilities as a trustee in running your own fund • Investment strategies and regulations within a SMSF, such as tax planning, income streams and risk management • The importance of professional financial planning and advice for SMSFs. To find out more, call us to arrange an appointment to discuss your needs and circumstances. Magnitude Financial Planning 263 Charters Towers Road, Hermit Park QLD Phone Email Web

07 4753 5777 ddibartolo@magnitudefp.com.au smorris@magnitudefp.com.au www.altitude.magnitudefp.com.au

Dennis Di Bartolo MFinPlan, DipFP, MAICD

Sonia Morris DFS (FP)

Dennis Di Bartolo and Sonia Morris are authorised representatives of Magnitude Group ABN 54 086 266 202 AFSL 221557 trading as Magnitude Financial Planning. This information does not take into account your personal objectives, financial situation or needs. It’s important for you to consider these matters before making any financial decision and we recommend you seek help from a financial adviser. M12341-0411sd

12341-0411sd Magnitude Hermit Park Press Ad.indd 1

14/04/11 9:58 AM

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INTEGRA INVESTMENT PROPERTY

escalate your investment potential

he National Rental Affordability Scheme or NRAS was launched for the purpose of providing assistance and funding to increase the supply of affordable rental dwellings, reduce rental costs for low to mid income earners and to encourage investment on a large scale to provide more affordable housing.

salary figure for NRAS entry is $42,386 and the maximum level is $100,768. The approved applicants receive a 25% rental deduction off the market rent, enjoy living in a brand new home, and while there is a 10 year head lease over the property from the NRAS consortium the tenant has the option of a one, three or five year lease.

If the investor reduces the rent by 20% of the market rent, the government will provide an incentive of $9,140 per annum ($6,855 from federal and $2,285 from the state governments). This payment increases in line with CPI, as of now it is $9,140.

The property can be sold at any time through the 10 year head lease, without penalty, the incentive for that year will be paid on the amount of months you held the property for in that year. For example: If you sold after six months you would only receive $4,570 tax free. The investor has a guaranteed 15 weeks rent paid through AON Insurance if the tenants abscond or damage the property.

The NRAS scheme is not social housing, it is for key workers such as teachers, nurses, police, fireman, and all other support staff. The minimum

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By BILL MAHER

While house prices have fallen globally over the past two years, the Australian housing sector has shown resilience, due to strong fundamentals â&#x20AC;&#x201C; low vacancy rates, high population growth, insufficient housing stock, high employment and prudent lending practices. The investor housing market remains strong in Townsville due to the diversity of our economy the additional deployment of the 3RAR from Sydney into our city, our natural population increase, the low vacancy of rental properties and the large data base of NRAS approved tenants waiting for new homes to be rented. â&#x20AC;˘

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FEATURE

golden returns in charters towers. By KYLIE DAVIS

hile most of us are snuggled in bed sound asleep, Lance Birkett is up, shaved, showered and meeting his newspaper distributors at a brisk 1.30am. By 4.45am the doors of The Queenton Paper Shop are thrown open and another business day has dawned. Back in 2000, when Lance and his wife of 25 years Danielle were considering buying the newsagency, it was certainly darkest before the dawn. “Deregulation had just come in. Everyone thought that’s the end of it. Even our bank manager said not to touch a newsagency with a barge pole,” recalls Lance. “Before deregulation, if you wanted a newspaper or a magazine you had to go to a newsagency. Since deregulation, they sell newspapers and magazines basically wherever they want - corner stores, supermarkets, service stations, online… “Charters Towers has really come ahead in the past 10 years but when I drove down the main street a decade ago I’ll admit I was a bit worried,” Lance says. “The stretch started with a burnt-out hotel and, where there’s a Woolworths Petrol Plus now, was an old fibro service station that wasn’t trading. In fact, nothing was open. It was like a ghost town.” Still, being a country boy from Bundaberg, Lance was keen for his kids to know the outback lifestyle. And there was the fact his best mate

Michael also owned the Charters Towers supermarket. “Another thing that attracted to me to Charters Towers is it has four major cogs that turn industry. One is mining (gold and copper), the second is beef, the third is education (with all the boarding schools, School of the Air and quite a few state schools here) and the fourth is tourism. So if you’ve got a drought happening and beef cattle prices are low there’s always the other cogs still turning.” And so the Birketts signed on the dotted line and moved to Charters Towers in 2000. Life as newsagents suited them, with Lance in charge of distribution side and accounts and Dani doing the office work and purchasing. They both also share counter work but try to keep that to a minimum. “We think the most successful way to run a business is working 30 per cent in your business and 70 per cent on your business,” Lance says. “When we bought Queenton in 2000 it had an annual turnover of $1.2 million. Today, it’s more than $5 million. We’ve bought another shop in the meantime, the Town Plaza newsagency in 2005, but it was only a tiny acquisition.” So what’s the secret of their success? Keeping the staff levels up is key say the Birketts, who have 16 staff on their books. “Trying to do it all yourself only leads to a wooden box early,” half-jokes Lance. “We’re also big on customer service and did

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major shop fit-outs in 2007.” The Birketts credit having 14 subagents as a major part of their success too. “We get half the commission on what they sell. Getting half is better than getting nothing but a lot of the old-school newsagents couldn’t see that. They starved their subagents… and lost them. “But we embraced our subagents. Some of our subagents are 24-hour service stations so they’re selling our products while we’re home in bed asleep.” Home for the Birketts is a one-acre property less than a kilometre from their businesses. “We’ve turned it into a real resort,” beams Lance. “We’ve got a big back yard with a pool and gazebos and we’ve just done a massive renovation. That took us a while because the house is Heritage listed. It used to be a midwifery at the turn of the century. Then, when the war came, the Americans took it over as a communications headquarters.” Now it’s the Birketts’ headquarters and a place to escape the demands of being busy newsagents. However, they do take a little work home with them… “I’m a bit of a trader so I like reading The Courier Mail. And I read the local paper, the Northern Miner, and fishing magazines. The wife is into the detective/mysteries and Mills and Boons!” •

PARRY NISSAN

FEATURE

the

festival of water Fabulous food, eye-catching art, celebrity guests and a buoyant community atmosphere that’s contagious. The SunWater Burdekin Water Festival offers all of this, and a great deal more...

By KYLIE DAVIS

he Burdekin Water Festival started out as the Ayr Water Festival in 1958. After visiting the Toowoomba Festival of Flowers, Burdekin resident William Saxby Snr approached local council to hold a festival to celebrate the area’s abundant underground water supply. The festival was embraced by locals and has been held every year since. It now has major sponsorship with SunWater taking on naming rights for the past three years. The SunWater Burdekin Water Festival is unique in that it runs from mid-June to early September and encompasses many events. Signature events include the Ambassador Program for juniors and seniors, the Tastes of the Burdekin food and cultural fair, the Grand Street Parade and Mardi Gras. All events are free to attend and family friendly. “Tastes of the Burdekin is held in the main street and is great for foodies, with heaps of sweet and savoury cuisine on offer,” says festival president Allana Barbagallo. “Everything from Greek honey puffs to barra burgers are on offer and crowds are entertained by a celebrity chef who does cooking demonstrations and judges the local celebrity cook-off.”

This year marks Allana’s third year as president of the festival. She said a wonderful committee of dedicated and hard-working volunteers, who are constantly looking for ways to improve and expand the festival, makes her job a pleasure. The Burdekin Water Festival is seen as an integral part of life in the Burdekin. Residents eagerly await the yearly celebration and some spend many months preparing for various events within the festival. Gardeners preen their flowers and lawns for the prestigious title of Grand Champion Garden, artists work year long on entries for the Palette to Palette exhibition and Ambassador entrants spend many months working on their creative float for Mardi Gras. The Burdekin District is made up of several small towns - Giru, Brandon, Ayr, Home Hill, Gumlu and Guthalungra. Sugar cane is its biggest industry with four mills in the district. Small crop farmers also produce capsicum, cucumbers, tomatoes, corn and melons for the southern markets. And, of course, the Burdekin has some of the best barra fishing, mud crabs and reef fishing as well as a prawn farm. “We have cultural diversity with a large Italian population as well as Greek, Islander, Aboriginal, Spanish and German residents,” says Allana.

“Our Grand Street Parade is one of the largest in Queensland and always has many colourful and creative floats,” says Allana.

“The festival provides an opportunity for all cultures and age groups to join together in celebrating our wonderful lifestyle.”

“More than 40 local schools, clubs and social groups enjoy being part of this great event.”

Being a small community, it is essential the Burdekin uses the festival as a tool to promote itself to tourists and investors.

After the parade, the street is transformed into a bustling hive of activity with food and market stalls, a sideshow alley, live bands and great free entertainment.

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“By showcasing our great fresh produce and excellent seafood products we can increase sales prospects for many local businesses,” says Allana.

“Local shop owners benefit from the increased tourist trade the festival brings and we work hard to encourage visitors to stay and explore all areas within the district.” Local schools, sporting clubs and service groups also use the festival as a means of holding events to raise much-needed funds to provide better services and equipment to the community. “Business involvement with local festivals is extremely important as a confidence builder amongst the community,” tells Allana. “What our committee aims for is a mutually beneficial outcome for both the festival and the business sector. Business support through sponsorship enables the festival committee to provide a wide range of exposure for that business and we in turn can provide new and exciting events for the community. “Most small rural communities are not in the enviable position of their city cousins, who have access to large corporate sponsorship. While applying for government grants funding is an option, success is not guaranteed. Most small businesses are swamped with requests for sponsorship from not-for-profit groups, and there is only so much money to go around. “Our committee is dedicated to ensuring that all sponsors of festival events gain maximum exposure and positive returns for their dollar. Creating increased cash flow to businesses through stakeholder participation and tourism is a huge economic boost for the district.” •

ADVANCE EMPLOYMENT

people, performance & profits By CATHY O’TOOLE / CEO / ADVANCE EMPLOYMENT In business we are constantly juggling each element of management. From human resources to margins, and production to client satisfaction, most will agree that while focusing on one area it can be easy to let another slip. A significant effect on all aspects of our business is the wellbeing of our staff. So how do we find the balance between people, performance and profits? According to Medibank Private (The Cost of Workplace Stress in Australia, August 2008), workplace stress is costing the Australian economy $14.81 billion each year and stress related presenteeism and absenteeism are directly costing Australian employers $10.11 billion a year. The figures are real and significant. Research shows workplace stress is a significant risk factor for developing depression. (Workplace Stress in Victoria: Developing a Systems Approach, VicHealth, 2006).

By adopting Glasser’s management principles, we can take the topic of mental health and use it to be a driving force in creating a workplace that positively affects people, performance and profits. Some of Glasser’s leadership principles include; actively encouraging open and honest discussion of both the quality and cost of the work, continually seeking suggestions for improvement, modelling the job/s so the workers can see exactly what is expected while also increasing the workers’ control over their jobs, encouraging workers to inspect their work with the understanding that they know best what high quality work is and how to produce it at the lowest possible cost and using every chance to teach workers that the essence of quality is continual improvement.

The question is no longer whether stress, depression and workplace mental health are affecting your business, rather what action are you taking to manage it and achieve balance?

By using these fundamental and powerful leadership techniques, you will be on your way to creating a workplace culture where positive habits such as listening, supporting, encouraging, negotiating, respecting, accepting and trusting are used every day.

Dr William Glasser, a psychiatrist and authority in mental health believes we are a product of our own behaviour. As a leader in the workplace, we can control what actions we take to influence positive workplace mental health.

By striving to balance people, performance and profits, we can directly impact the lives of our staff and therefore our community, economy and our own happiness. How fundamental and profound! •

Offering practical advice and guidance to address work life balance for you and your employees.

Telephone 07 4725 1155 Office Corner Hugh & Horwood St, Currajong www.advemp.org.au

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australia’s best

rising sun honda. For over one decade, Rising Sun Honda has held the title of Australia’s biggest new motorcycle dealership by selling more new Honda’s than any other dealership in the nation. By RACHEL LICCIARDELLO

FROM THE BEGINNING It was 35 years ago when local bloke Bernie Koppe opened his Rising Sun Honda dealership here in Townsville. Today this family-run business maintains the business foundations it was first built on – offering a quality product, good ongoing service, high staff retention and long-lasting client relationships. While the foundations remain the same, some things have changed. Bernie’s son, 31-year-old Trent, is now the General Manager, working his way through the business from apprentice mechanic in 1999 to salesman, then Sales Manager and now GM.

#1 AND STILL GROWING As well as claiming the title of Honda’s biggest new motorcycle dealership in Australia for the past 12 years, RSH has also been Honda’s most active dealership for power equipment two years running. (Power equipment includes lawn mowers and generators and the like.) “Our sales slowed during the GFC (global financial crisis), as most retail businesses did,” says Trent, “but we know how important staff retention is to our business so we shuffled our focus to power equipment and servicing, and

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shifted our attention to internet marketing rather than costly advertising. From this, we were able to keep the business growing and keep all staff on the payroll.”

HITTING THE ROAD “We don’t sit around and wait for sales”, says Trent. “We get out and find where the bikes are needed. We have a truckload of bikes heading out to Mt Isa every two or three weeks, dropping bikes at stops along the way. It’s a lot of hard work and a massive effort on our team’s part”.

POSITION, POSITION, POSITION “Our geographical location means we have a broad customer base that fits all categories – road, dirt, scooters and all-terrain. We have farmers, soldiers, miners, students, all types of customers. This obviously helps increase our market share,” explains Trent.

A BIG PIECE OF THE PIE Last year, Rising Sun Honda sold 40% of all new bikes that were sold in the catchment stretching from Ayr to Ingham. Meanwhile, Honda accounted for 23% of all new motorcycles sold nationally for the same period. “We’ll aim for 50% this year,” smiles Trent.

THERE’S NO ‘I’ IN TEAM “We really do have a good staff retention”, shares Trent. “The collective knowledge in this shop is invaluable; you just can’t buy it”. In fact, Trent lists five key staff across different departments who have worked in the business for over 20 years.

THANK YOU, COME AGAIN “Our repeat business is massive. In the bike industry, we have repeat customers every two to three years”, reveals Trent. “Motorcycles are a hobby for many people”. The business also sells genuine accessories and offers after-market servicing. “The attraction of back-up servicing is very appealing for many buyers”.

WOULD YOU LIKE SUGAR WITH THAT? In 2007, the business added an onsite café to offer customers a little extra, attract new customers, and give the business’s 55 staff somewhere convenient to lunch. “The café has increased our staff productivity incredibly, as our team no longer have to leave the premises to purchase food”, reveals Trent. •

Q&A

on the rise CONAN REID / CONNOLLY SUTHERS LAWYERS

What is your current position and workplace? I am a Senior Associate at Connolly Suthers Lawyers. I practice primarily in personal injuries law.

When did you begin this position and what was your prior work experience? I started at Connolly Suthers in 2004. Prior to that I was stacking shelves at Coles while attending university.

What aspects of your chosen profession/industry do you love? Helping my clients get the results they deserve, and the challenges the law sometimes throws at you requires creative thinking.

What kinds of things can you offer the businesses and people of North Queensland? As a local firm, Connolly Suthers relies on client satisfaction and provides a more personalised approach to all areas of law.

What’s next for you? Hopefully an overseas holiday.

What business-related values do you operate by? I always put my clients’ interests first and strive to achieve their desired results.

Describe a typical day for you. A lot of reading problems, typing solutions and reporting results.

What is the number one question customers/clients ask you? Help me - and I love it when I can! Most clients want me to explain the solution to their legal problem in easy to understand terms.

Did you always think you would be involved in this line of work? No, initially I wanted to be a journalist which involves keeping people informed. Being a lawyer involves keeping people informed about matters both personal and important to them, and fighting for them.

Do you think our economy will look different in coming years with the rise in generation Y’s becoming business owners/operators? The economy works in cycles and after some difficult times business will experience an increase in prosperity and the creativity that generation Y can offer will be a part of that.

What are the: a) advantages and b) challenges, in being a young person in the business world? Getting established in your chosen career can be a challenge. An advantage is that being a young person you may be more open to new ideas and processes.

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AIM

ultimate recognition nominate an outstanding manager now for the Management Excellence Awards 2011

he 2011 Management Excellence Awards recognises Queensland’s best managers in business, government and the not-forprofit sector.

The annual awards program from the Australian Institute of Management has been run throughout Queensland and the Northern Territory for almost 20 years and acknowledges managers who have achieved personal and professional excellence. Last year, Townsville produced outstanding regional finalists and winners including Owner of NQ BodyFix, Sally Vujica, Works Manager of RoadTek’s Townsville Work Centre, Mark Wasley, and Owner of Wellspring Chiropractic, Suzanne Jarschke. Chair of the Management Excellence Awards Julie Boyd said the awards are distinguished and provide “ultimate recognition” to deserving managers. “The Management Excellence Awards throws a spotlight on exceptional men and women. They are Australia’s most prestigious awards for the individual manager and celebrate the individual

contributions and achievements of outstanding managers, rather than the business and organisations they work for or run,” explains Julie. “The awards enable managers to be appreciated for endless hours of commitment to their craft, and skill in shaping performance, people and productivity. Quite simply, better managers make for better workplaces and that is important at an individual, organisational, sectorial and national level.” The awards are powered by nominations from within business communities. A nomination can result from a ‘tap on the shoulder’ from a co-worker, friend or peer for a manager who’s made an impression on them. Managers can also self-nominate to set themselves on the awards journey. Award categories include Professional Manager of the Year, Owner Manager of the Year, Young Manager of the Year, Rural/Remote Manager of the Year and Not-for-Profit Manager of the Year a new category for 2011. “In 2011, a Not-for-Profit Manager of the Year

category will run throughout Queensland for the first time,” tells Julie. “Not-for-Profit managers work with complex inputs and must achieve multifaceted outcomes. They deserve stand-alone recognition in the awards. This new category is an exciting development that shows our commitment to recognising and celebrating management in all forms.” The Management Excellence Awards are designed to acknowledge some of the best managers and leaders across a range of industries. The program receives hundreds of nominations in each category annually. It also provides a unique platform for self-reflection, benchmarking and networking for nominees. Many past participants say the awards have changed their lives and opened doors to new professional opportunities. Nominations for the 2011 Management Excellence Awards can be lodged online at www.managementawards.com.au and close Friday 10 June 2011. Nominating is free and only takes a few minutes. For more information, call 1300 882 895.

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LION NATHAN

corporate hospitality By MARTY CALVERT / REGIONAL SALES MANAGER / LION NATHAN

As Regional Sales Manager of Lion Nathan North Queensland, Marty is responsible for their brand portfolio including Heineken, XXXX, Tooheys, Hahn, James Squire, Becks, James Boag’s among others.

n today’s competitive marketplace it is agreed in most circles that the cost of acquiring a new client far out ways the cost of retaining a current client. The challenge for any business lies in how to develop that relationship to drive loyalty and ongoing repeat business. Aside from the product you supply and service you offer, how can your business add value to your customers’ experience? The answer... corporate hospitality. Corporate hospitality is not a dirty word, the days of endless expense accounts and Friday long lunches are gone, what remains is a calculated approach to customer engagement. Done well hospitality can build relationships and add value to the customers’ experience. As with any strategic dimension, a solid plan followed up with diligent execution can map the pathway to success and corporate hospitality is no different. Most business people come to a meeting prepared for each scenario. What are my objectives? What questions do I want answered? What is my walk away point? Traditionally this approach has worked well when products were mass produced and a one size fits all mentality was bought and sold like so many widgets. A new era has developed and the customer now wants a more tailored approach to their needs. How can you possibly provide that without an intimate

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knowledge of who they are and what they want? Corporate hospitality can provide the vehicle for your business to reach out to your customers on a more personal level, find out what truly makes them tick, and build a combination of products and services that match with their business needs and personal values. This personalised approach drives engagement among your customer base. Can you think of the last time an attendant used your name when you weren’t expecting it? How did that make you feel? By carefully choosing the right type of hospitality, you can get to know your client in a far more authentic manner than across a desk. You can find out what drives them, what their future plans are, what their background has been. Not only can you use this information to build rapport and genuinely engage with your client, but you can ensure your future services are tailored to best meet their changing needs. As with any relationship, it’s not just about getting to know your client, it’s about them getting to know you. After all, your customer is the one spending the money, they want to feel important and valued as a member of your organisation. In this changing consumer climate, the values of an organisation and the way it does business are just as important as the products and services it

supplies. Customers want to feel like they connect with your business on a more intimate level. With social media proving to be amazingly popular, your customers are wearing your brand as a badge of honour, are they prepared to provide the ultimate endorsement by adding your business to their profile? This is loyalty in 2011. Can you provide a reason for them to stay loyal to your brand? Each brand we choose makes a statement about the people we are. I dine at a particular restaurant because I love the food and the service, but also because I like what it says about me. I drive a particular car because it gets me from A to B, but it also says something about me. In business, we have the opportunity to embrace this and align ourselves and our business with brands that say something about us. This brand equity is derived by adding value on top of the features and benefits of the product or service you offer. The equation is simple; the higher the brand equity, the higher the loyalty. The higher the loyalty, the more repeat business. Corporate hospitality provides that opportunity to add value and increase brand equity at a truly personal level. It is a great tool for building stronger business relationships and fostering long term loyalty from your customer base. •

TOWNSVILLE PODIATRY CENTRE

your feet at work O

ur feet bear the entire weight of our body with every stride we take, and several times that amount of force during sporting activity. With the average person walking the equivalent of twice around the earth in their lifetime, it’s essential we look after our feet in order to maintain mobility and remain pain free into old age. Poor footwear choices may leave a lasting legacy. Poor footwear at work increases your risk of acute and chronic foot and ankle injuries. Research indicates that foot and ankle injuries in the workplace account for almost 10% of all workplace injuries. Those most affected are males aged between 25 and 30, workers in the technical, sales and retail, and administrative support positions. There are dozens of injuries that can result in foot and ankle pain. The most common forms of injury in the workplace are ankle sprains (42%), contusions/bruises (9%) and lacerations (8%). Choosing an appropriate shoe that has the necessary features is important to minimise your risk of foot and ankle injury. Also consider the life of your shoe, the design features that provide support and stability fatigue over time, so replacing your shoes is important. If your job requires a lot of standing and walking, your feet will require more support. Choose comfortable shoes with adequate cushioning and fastening devices (laces are best) rather than high heels.

By DARREN BARCLAY

While we are on heels ladies, consider the height of the heel and how much walking and standing you will be doing. In heels, your weight is thrown forward onto the small bones in your feet leading to increased pressure in the forefoot – a fairly delicate area. A 2.5cm heel results in a 25% increase in pressure, while a 7.5cm heel results in a staggering 300% in pressure! Wearing heels for prolonged standing and walking can also cause nerve pinching, hammer toes, bunions, knee, hip and back pain. If you love your heels, try wearing them for shorter periods at a time, that is evenings, and be good during the working day. Feet swell during the day, so always go shoe shopping in the afternoon and try to be flexible about the brands you want. The shape of a shoe will also vary between manufacturers so the brand you want may not always be the most appropriate. Many people have one foot larger than the other; a good shoe fitter will always fit to your larger foot. If you are active in your job, wear socks that are made from natural fibres to help your feet breathe and prevent fungal outbreaks. If you need to ‘wear your shoes in’, they don’t fit you properly. If you are developing corns, your shoes are too narrow or have inappropriate fastenings. If your slip-on-shoes were the right size you wouldn’t need to lever them on with a shoe horn. Podiatrists are always happy to offer activity and individual specific footwear advice. •

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Q&A

TERRY DWYER / FRANCHISEE What attracted you to become a franchisee in this particular franchise? I was looking into buying a business after 30 years in the mining industry and at the time I was interested in pool building and servicing, as it was a big part of the North Queensland lifestyle that I had grown to love. I identified that there was huge potential for growth owning a business in the pool industry here in Townsville.

What would you say the advantages are of joining a franchise as opposed to starting a business outright? First and foremost the brand was well established across the nation, which I knew would initially help with the marketing and advertising in the local area. Also franchising would assist in the initial setup of the business with their company procedures and guidelines in place which would see support in budgeting, reporting and general day-to-day trading.

What are some achievements/accolades you have attained? We have won 10 awards over the past five years including Brand Excellence, Sales, Incentive Awards and the coveted Franchisee of the Year.

franchise focus 26

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What would you say to a person considering purchasing into a franchise? Research and be prepared for the years ahead. The opportunity this has provided myself, my wife and my family has been well worth the hard work.

Do you regularly meet with other franchisees or head office for discussions on the brand going forward? Yes, on a regular basis by phone and email. One of the great things about being part of a franchise is the opportunity to discuss better ways to improve your own business through the open forum provided by the fellow franchisees.

What is something interesting about the brand that not many people would know? Poolwerx is Australiaâ&#x20AC;&#x2122;s largest network of mobile pool and retail stores, winning the Best Franchise System in Australia in 2004 & 2005. PoolWerx was Business Review Weekâ&#x20AC;&#x2122;s (BRW) fastest growing franchise in Australia 2004-2011.

What is the most challenging thing about being a part of a franchise and how do you overcome this? Most business owners, franchise or not, would tend to agree that it is hard to work a 9-5 Monday to Friday week. Therefore it can be a challenge at times to get that balance between a healthy life and work routine.

What are your business plans for the next five years? Our plan is to be in a position to have our business managed and operated on a day to day basis without myself or my wife working in the business. We hope to shift our focus to working on the business for long term success.

FEATURE

backing a winner. After a rough run recently, the Townsville Turf Club is hoping a shift in focus will help keep locals interested in our horse racing industry. By RACHEL LICCIARDELLO

fter a major row earlier this year with Queensland Racing, the Townsville Turf Club has made peace with its governing body and Townsville Turf Club CEO Michael Charge, who has held the reigns at the club for the past five years, says he is now, more than ever, focused on “ramping up local racing” and raising the dollars to upgrade facilities at Cluden Racecourse. According to the Australian Bureau of Statistics’ 2009-2010 research, horse racing is the second highest attended sport in the country, with 1.9 million spectators. This places it behind AFL and ahead of NRL. With 41 race days each year, an average of 120 horses in work locally, and an annual combined prize pool of over $3 million (an average of $80,000 per race), Townsville Turf Club is really helping horse racing remain an active local industry. Last year the Jupiter’s Townsville Cup day attracted almost 12,000 people through the gates; a good result when compared to other major race days like Gold Coast’s Magic Millions Carnival, which recorded attendance of less than 14,000 people earlier this year. “Cup day does tend to hover around that 12,000 figure for us, and when you look at the attendance at the Magic Millions, which has the entire south-east population to feed into it, we’re doing pretty well. We can always do

better though,” reveals Michael, who estimates Jupiter’s Townsville Cup day attendees are 70 per cent local, 15 per cent regional and 15 per cent metro or interstate.

this year. “The 100 Club is really a different way to socialise and network,” explains Michael. “There’s a race, then 30 minutes to network, then another race. It breaks it up a bit.”

The success of that single day is integral to the club’s future, and local horse racing too. Beyond the glitz and the glamour of “cup day” is the grim reality that an estimated 50-60 per cent of the club’s income comes from just one day. This is like putting all of your money, and your house, on just one horse. “We know that the Jupiter’s Townsville Cup day is traditionally a big day – it’s the biggest race day we have in the region – and that one day really does keep us ticking over. But we’ve recognised for some time a need to diversify our business. If that one Saturday in July is rained out or attendances are down for whatever reason, it really hurts the club.”

Michael has also been educating locals on the possibilities of owning and racing horses themselves. “To own and race a horse isn’t cheap, but there is the option of a syndicate. If you get 10 to 20 people together and all buy in, it’s affordable, and its fun,” tells Michael. “Watching a horse race is exciting, but owning a horse in the race is a whole new thrill.”

Because of this, the turf club has increased its promotion of the venue as a site for functions. “We’ve had a dozen or so weddings booked for this year, and more for 2012, and this year will be the third year in a row the Outdoor and Fishing Expo will be held in May out here,” tells Michael. The club’s low-cost sponsorship option, 100 Club, which offers local businesses from all industries – white and blue collar – the chance to network their business in a different setting will continue

While many of us will never own a horse, we all have the ability to help keep local racing lapping the track. Whether it’s through ownership, sponsorship or just donning an over-feathered hat and attending the major race days each year, we can all do our bit and maybe make a few bucks in the process. Depending on how hot your tip is…

HEAD TRACKSIDE Parry Nissan Race Day

June 4

Ladies Day

July 16

Jupiter’s Townsville Cup

July 23

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TORGAS

addressing impending skills shortages GEORGE PEEVER / CEO / TORGAS

We are hearing a lot about the impending skills shortage that will hit our region later this year and in 2012.

wages are being forecast to rise between 6% and 20% over the next two years.

The fact is that apprenticeship starts in North Queensland are down significantly over the past 18 months. Looking to our neighbours in the Mackay region 1.23% of the population are apprentices, whereas in overall North Queensland this figure is only 0.54%.

Just the cost of these wage increases alone would pay for a first year apprentice.

What is the issue? Business is being done differently these days. People change jobs every five years, and work is being done on a contract by contract basis. Post GFC, business is more conservative, and operates on a tighter budget. Consequently, there is no willingness to employ an ‘unproductive’ first year apprentice, but rather there is a preference to employ someone who already has ‘some’ skills, and will be immediately productive and add to bottom line profit. We cannot blame industry for thinking like this, however maybe industry is shooting itself in its steel-covered foot? A shortage of skills can only mean higher costs for those lucky enough to find and employ someone. Already trade

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Group Training Organisations (GTOs) are perfectly placed through their industry partnerships. One major attraction is that an apprentice can be started just for a particular project. The GTO can then take the apprentice back and relocate him or her with another host employer. GTOs are excellent value, and the services they provide take all the administrative worry away from the host employer. The real answer is to employ our own young people, and not be forced into bringing skilled trades people under 457 visas into Australia. With over 500 pre-screened young and enthusiastic apprentice candidates registered with Townsville’s own GTO, surely the solution is to bite the bullet now and invest in the training of our own youth, who are ready, willing and able. •

THE MARKETING FACTORY

are you connected? By BREE DWYER / BRAND MANAGER / THE MARKETING FACTORY

As Brand Manager for The Marketing Factory, Bree is responsible for developing campaigns for small business to large enterprise including Catholic Education Office, Jewellery By Design and Knight Frank among others.

here is no doubt that the term “social media marketing” is the new catch phrase in business, but what is all the fuss really about? Is it just a fad or is there really a need for your business to engage in these online activities? Social media marketing has been the biggest shift in history on how we communicate to our clients or customers. Like it or not, it’s not a fad, it’s here to stay. So how does this platform of marketing affect the general rules being price, product, place and promotion? And how much money and time do you devote to this new tool and where does it fit in with your current marketing and advertising strategies? When working with any sized marketing budget, it is critical to have the right marketing mix, which is basically a set of variables that a company blends to produce the response it wants from their target market. Without the correct marketing mix, efforts could be wasted or not be effective. Most marketers will tell you that a multi-pronged approach is ideal, with a main marketing message advertised through one medium and have that coupled and/or supported on other mediums. Currently, social media marketing tools that surround us are free, being Twitter, Facebook, Linked In, YouTube and the like, therefore costing the business nothing but time to use this strategy as part of its approach to reach its target market.

So why aren’t more businesses using it? At this stage we can only assume that one hesitation is fear. Fear of the unknown and not knowing exactly what we are getting involved with. Fear of the immediacy social media marketing allows and that once a post is made, it is very hard to reverse. If you are one of those people who fear social media marketing, it may be useful for you to attend a social marketing course at your next opportunity, as this will dispel many if not all of your fears and ignite the excitement and embracement of the future of marketing. In coming years, the use of social media marketing tools will not be optional for businesses, but an essential tool to deliver to your clients and customers. As our baby boomer business owners retire and Generation Y step into more managerial roles, social media marketing will become an integral part of business and your marketing mix. Your opportunity is now. Being one of the first in your industry to successfully use social media marketing as an advertising vehicle shows innovation and understanding of how your clients and customers want to communicate. If you don’t have the time or manpower to delve into the world of social media marketing and ensure your presence in the online world is informative and up-to-date, contact a marketing agency to help lead you into the right direction and open doors you never knew existed.

HERE ARE SOME FACTS YOU MAY FIND INTERESTING… In December 2010 there were 9,361,520 Australia’s actively using Facebook. In December 2010 users by age group were: 35% or roughly 3.2 million 20 to 29-year-old category. 21% or nearly two million users in each of the 30 to 39 and 13 to 19 age bands. More than 1.2 million 40 to 49-year-old’s make up 13% or 732,000 people between the ages of 50 and 59 form 8% of the total. The remaining 210,000 aged 60 and older. Facebook represents almost one in every five pages viewed on the web by Australians during September 2010. The average session time for a user visiting Facebook during September 2010 was 28 minutes and 58 seconds. 77% of online Australians watched video content on their computer at least once in September 2010 and a further 26% watched video on their mobile phone. In September 2010, 36% of Australians accessed the internet via their mobile phone in the past 30 days and 13% accessed the Internet via a handheld media device other than a mobile.

Sources: www.theaustralian.com.au, www.weblogs.hitwise.com www.neilson-online.com, www.aimia.com.au, www.smh.com.au

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FEATURE

all part of the

masterplan. By KYLIE DAVIS Voted North Queensland’s Best Masterplanned Development by the Urban Development Institute of Australia (UDIA), Stockland’s North Shore is much more than just a residential subdivision - it’s a way of life.

full-scale town designed to deliver the perfect balance between live, learn, work, shop and play, North Shore is North Queensland’s biggest masterplanned development. Set over a sprawling 1,000 hectares, it’s located just 12 kilometres north of Townsville’s CBD, and its easy access to the Bruce Highway makes it a gateway to a strong regional growth corridor. Over the next 15 years, North Shore will become home to 15,000 residents but just three years into the project’s lifespan, North Shore is already proving to its residents there is more to life. “The Northern Beaches Leisure Centre was opened before a single resident moved in and now boasts over 1,000 visitors a week,” said North Shore Project Director Ben Simpson. “And North Shore’s first school, St Clare’s Catholic School, opened to students this year.” Over 600 home sites have been sold and over 400 homes have been built, in addition to four neighbourhood parks and Stage 1 of the North Shore Shopping Centre, which includes a Woolworths and 13 speciality stores. A 24-house display village, featuring 17 leading builders, showcases how life could be if you decide to call North Shore home. “Our vision for the Display Centre was to create a hub where potential home buyers can draw inspiration from real and practical examples of ways they can build a home that is not only attractive, but is also designed with our tropical climate in mind,” says Simpson. “We want to encourage people to plan ahead

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when building and think about the simple things they can do to reduce household carbon emissions and, importantly, save on the rising cost of energy. “There are homes in the new village that appeal to all household types and budgets, from first-home buyers to mature families.” This focus on sustainability is among the many factors that caught the eye of the UDIA when judging North Queensland’s Best Masterplanned Development. “It reflects the ethos of the whole North Shore community, which continues to incorporate green initiatives,” said Simpson. “A good example of our commitment to the environment is the delivery of a $20 million state-of-the-art storm water treatment system. Stockland is also involved in the conservation and rehabilitation of over 330 hectares of native bushland at North Shore and contributes $50,000 a year to the Red-throated Finch Foundation. “And we are particularly proud of our efforts with the North Shore Shopping Centre, which has achieved a 4-star Green Star design rating.” The shopping centre is the first step in creating a business and entertainment heart for residents of North Shore. Over the next 12 months the North Shore Town Square will be delivered. This will include a community amphitheatre, a fullsize AFL/cricket field, a medical centre, the first childcare centre and over 300 new homes. “At present we have about 1,000 residents living at North Shore. Over the life of the project (15 years), the resident population will swell to

15,000, growing by approximately 1,000 people a year from now until completion,” Simpson says. Simpson’s role as North Shore Project Director is very diverse. He oversees all operations from marketing, sales, budgets, human resources and project development to working with stakeholders and dealing with planning and environmental issues. He is also responsible for the management of Stockland’s projects in Mackay and Rockhampton. From Simpson’s office within the North Shore Shopping Centre, he has a bird’s-eye view of how the development is progressing. He is there to make sure everything runs according to the masterplan. “Stockland’s vision is to create a complete and vibrant community that is environmentally, economically and socially prosperous,” says Simpson. “All this while setting the highest standard for sustainable mixed-use community development in Australia.” During its development life, North Shore will contribute approximately $1 billion of gross regional value and generate approximately 8,700 full-time jobs. Upon completion, approximately 3,200 full-time jobs and $225 million in gross regional value will be generated annually through ongoing commercial and retail activities. To find out more about North Shore, visit www.stockland.com.au •

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The TomTom Via 180 makes navigation a breeze. Designed for convenience, it also lets you use your voice for many tasks, such as entering addresses and making calls hands-free so you need not take your eyes off the road. It will also predict accurate arrival times so you will never be late for that meeting again.

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PRESENTED BY TROY WILLIAMS - THE GOOD GUYS

DELONGHI PRIMADONNA AVANTE - $2799 This machine is in a class of its own. Easy to use & clean and a perfect cup of coffee each time. You can choose to have a short, medium or long coffee, with a strong or extra mild aroma, enjoying it piping hot or at medium temperature. The machine can be used with either coffee beans or ground coffee. This machine will service your workforce with ease and it will allow you to prepare two cups of coffee with a single brewing.

BROTHER MFC-6490CW - $369 If A4 paper just isn’t big enough, then Brother’s MFC-6490CW might just be your next multifunction printer. It’s wide and deep enough to cope with A3 media, and high enough to fit 400 sheets at a time. With wireless capabilities there is no need for messy cables or a cluttered work space. This printer can sit where ever is convenient for you.

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OnBoard I.T. ph: 1800 889 880 email: info@onboard-it.com web: www.onboard-it.com location: 108 Denham Street Townsville, QLD 4810

Since 1998, OnBoard I.T. has been providing Information and Communications Technology Solutions to innovative businesses throughout Australia. We are a trusted team of professionals, based in Townsville, North Queensland, who pride ourselves on delivering best-practice solutions, based on products from market-leading vendors.

Complete IT and Telecommunications Systems for Small to Medium Enterprises

WHK

managing challenging business times DEREK CAMPBELL / CEO / WHK With challenging trading conditions continuing in the post natural disaster haze and prolonged wet, businesses are struggling with lower sales, profit and consequent cash flow. While it would be great if we could just simply increase our prices in order to improve our financial performance, in reality that is not always possible. To assist businesses in improving profits and cash flow over these trying times, here are a few fundamentals for good business management: Manage your debtors - Get your invoices out as quickly as possible and follow up outstanding invoices promptly. Consider forwarding your monthly debtor statements by the middle of each month as clients are more likely to pay by the end of that same month. Manage your stock levels - Don’t order excess stock only to sit in a warehouse. Make sure you regularly review your stock turnover and discount old and obsolete stock in order to move it and get some cash back into the bank. If you are carrying products or services not working for you, consider dropping them. Change suppliers - If you are able to source your products cheaper elsewhere, do it. That will immediately improve your gross profit margin.

Review your staffing rosters - Wages and salaries are one of the largest expenses in a business. Make sure all of your staff are productive and monitor their performance. Benchmark your business - All businesses need to know how they are performing. Benchmarking is an easy and cost effective way to gauge how your business is performing compared to similar businesses within your industry. You can also benchmark your departments to one another and also benchmark individual staff performance. Lastly, don’t be afraid to seek professional advice and importantly take a step back with a trusted business advisor. Spend some time on the business rather than in it. You might be surprised at how productive this time can be in shaping your business success. In challenging times it’s those who are proactive who have the ability to thrive rather than simply struggling to survive. Currently there are various state and federal government assistance packages available to small business in North Queensland to facilitate post disaster recovery. We strongly recommend any businesses, continuing to struggle post Cyclone Yasi, to contact their business advisor or local QRAA or DEEDI representatives for advice. •

better advice for a better life Leading people in business and financial advice • Accounting • Financial Planning Audit & Assurance • Lending & Finance Business Advisory • Estate & Succession Planning • Risk & General Insurance • Agribusiness Consulting • Superannuation & SMSF • Tax Consulting • through trusted client relationships Townsville

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SOUTHERN CROSS MEDIA

cost saving at what cost?

By CLINT CORBETT / GENERAL MANAGER / SOUTHERN CROSS MEDIA

As General Manager for the Townsville Media Centre, Clint is responsible for the following television and radio stations; 4TOFM, HOTFM, Southern Cross Ten, Eleven and ONEHD.

n trying economic times business owners and managers are more focused on cost control than ever before. Wages, stock levels and all other expenses are under the microscope but how focused on cost saving is too focused? When it comes to advertising, trying to pinch pennies can sometimes be your worst enemy and cost you money rather than save you money. In this day and age it is more important than ever to allocate a sufficient budget to your advertising to ensure that you meet the objectives of your campaign. Just like any other part of your business that requires an investment in energy, money and time, your media campaign deserves to be allocated sufficient budget to ensure it is given a fair chance for success. To be effective, advertising whether it be television, radio, press or a combination, requires exposing your message to potential customers a number of times so that they will remember your message. This repetition is known as frequency of impact. Frequency is extremely important because potential customers being the busy people that we all are today have a tendency to forget. To achieve adequate frequency advertisers must ensure they allocate sufficient budget to enable

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potential customers to see, hear or read the message enough times to generate the desired result of the campaign. Make sure you buy sufficient advertising to reach each potential customer several times. Your advertising Account Manager will help you with this. Any good Advertising Account Manager shares your business’ need for effective advertising campaigns with adequate frequency. Campaigns that do not yield the results that you expect only benefit the Account Manager in the short term. Not too many business owners or managers are going to continue advertising with a medium that does not generate leads. Enter into a partnership with your Advertising Account Manager. Work with them to negotiate a campaign with adequate frequency that will get great results. If you, like many other business owners and managers, are faced with a limited budget and you are concerned that the frequency of your advertising schedule will not be satisfactory, concentrate the campaign over a shorter time span. This will have the significant benefit of impacting your potential customers more often, reinforcing your message and implanting your business name into their mind.

The best way to maximise your advertising budget is to break it down into promotional periods, allocating a suitable investment for each period according to a pre determined sales plan. Recognise that some advertising months will be heavier than others. Also remember that advertising results are cumulative, the longer you have been consistently advertising, the better the results you can expect (provided you have adequate frequency). Advertising is the link between your business and your potential customers. It motivates the customer to come and see what your business has to offer. Once customers have called you, visited your website or come into your store, it is then up to you to convert that interest into sales. Proactive advertising starts with the belief that rather than being an expense, advertising and marketing with adequate frequency is an investment in your business and your future. “Price is what you pay…

Value is what you get.” •

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product review WHATS NEW? • • • • •

• •

The iPad 2 has a dual core cpu which enables faster operation and a smoother experience when using the device. It has up to 9 times faster graphics, enabling better graphics for games and photo editing programs. The iPad 2 is 15% lighter and 33% slimmer, making it more comfortable to hold in one hand. The iPad 2 has built in cameras for Skype and Facetime video calling. Facetime works with iPad 2, iPod Touch 4th gen and iPhone 4, and is free over wireless networks. New accessories are on offer such as the “smartcover”, which automatically turns the device on and off when opened or closed. This can roll up into a typing elevation stand and is available in professional looking leather or bright colours. iPad 2 works with most previous generation accessories such as docks and charging stands. The iPad 2 feels strong and of extremely high quality build.

HOW DOES IT COMPARE TO OTHER TABLETS ON THE MARKET? • • • •

It’s cheaper than Samsung Galaxy tab ($999 32GB 3G) iPad 2 ($949 64GB 3G). The iPad 2 has a lower entry price than many other tablets ($579 16GB WIFI ONLY). Easier to use, more user friendly interface. Much larger catalogue of apps and games than any competition.

WHY WOULD I WANT ONE?

apple

iPad2 In April 2010, Apple released the first iPad to the market and sold 3 million in 80 days. Apple sold 14.8 million iPads worldwide throughout 2010, holding 75 percent of tablet PC market share. In March 2011 the Apple iPad2 was launched, and more than 15 million iPads have been sold since then. This represents more sales than all other tablet PCs sales combined.

•

• •

•

• • •

iPad 2 is easy to use – whether you be a novice or IT expert. The interface works and responds naturally, with a very shallow learning curve and intuitive navigation with your hand. If you love to read books or watch movies in bed, it is an ideal platform. You can email, or surf the web, all from a compact tablet device. The screen is bright and vivid and the colour is rich and vibrant. Showcasing crisp sharp text makes reading a breeze. The strong “oleophobic” screen is difficult to damage and highly resistant to scratches. Fingerprints wipe away easily with a soft cloth. If you are on the move, 3G enabled iPads can use mobile telephone networks for data where wireless networks simply are not available. You can download emails and stay in touch anywhere there is mobile phone coverage with your chosen provider. Prepaid options are also available with no long term contracts. The iPad 2 is much easier to pick up and take with you rather than a full size laptop. The 10 hour battery power surpasses most laptops, especially of similar price point. Keep entertained with a vast array of games and apps available featuring something for everyone. Currently 65,000 apps are specially designed for iPad and continue to grow every day. •

...unlock the value in your business Contact Troy Popham, John Zabala or Andrew Morris today:

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