Winning In The Entrepreneurial Game

CONTENTS Introduction The War of Wealth The Power of the 'Little Man' Why are you in the game?

The Virtues of Business The Power of Human Capital Are you selling what your customers want?

Australia's Financial Future and its Global Impact Planning for the Future Marketing your Dream Money Management for Entrepreneurs A Quick Guide to Running a Successful Business Pearls of Wisdom References About the Authors

WINNING IN THE ENTREPRENEURIAL GAME Personal Strategies for Running a Successful Small Business by

St ev e T si m op o ul o s , Y i an n i T si m op o ul o s , Ja me s T sim op o ul o s , V e ss y Tsi m op o ul os

C o- F o und er s o f

Nat i on w i de B u si ne s s S ol ut ion s , Nat i onw id e Finan ce

& Nat i onw ide We alt h Ad vi s er s

All Rights Reserved. No part of this publication may be reproduced in any form or by any means, including scanning, photocopying, or otherwise, without prior written permission of the copyright holder. All photographs courtesy of Dreamstime Stock Photography unless otherwise stated. Copyright Š 2012

DISCLAIMER The material, strategies, comments, concepts, techniques and suggestions within this book are of a general nature only and do not constitute professional or individual advice in any way. Readers should not act on the basis of any matter in this publication without seeking professional advice from a licensed Financial Planner or Accountant, with due regard to their own particular circumstances, goals and risk profile. The authors and publisher expressly disclaim all and any liability to any person, whether a purchaser of this publication or not, in respect of anything and of the consequences of anything done or omitted to be done by any such person in reliance, whether whole or partial, upon the whole or any part of the contents of this publication.

INTRODUCTION The purpose of this book is to make you more than just a player in The Entrepreneurial Game; it's designed to turn you into a WINNER! It might seem strange, but if you don't think of business as a game, you’re liable to go mad trying to merely survive it. What good is a game without Challenges, Opponents, Rules, and Rewards?

We can tell you, it would be very boring! No game, No challenge, No fun!

Having played The Entrepreneurial Game for many years, we've learned one axiom; the Rules are always changing. The fundamentals of business practice are not taught in schools and there's no curriculum for the everyday business owner. Many budding entrepreneurs earn their badges through trial by fire.

That's why we are here to help. Regardless of what you currently earn or your 'position' in society, it is possible for you to benefit from same strategies that the rich have been using for years. We believe that every Australian has the right to learn how the system works and should have access to services and opportunities that will allow them to make use of their newfound knowledge.

Our companies were created to inspire Australians to find their purpose in life and quickly achieve financial freedom. You can achieve your hopes and dreams by arming yourself with the best weapons in life: knowledge and the right attitude.

Life is a game, but if you don't know the rules, you can get seriously hurt.

With that being said, you should never forget to have fun while playing The Entrepreneurial Game.

That may seem strange coming from us, but hey, if we can do it then so can you.

THE WAR OF WEALTH

"Dorothy and Toto weren't just looking for their way home."

The Great Panic Before the Global Financial Crisis in 2008 and the Great Depression in the 1930s, there was the Great Panic of 1893. The Great Panic came off the heels of one of America's greatest economic booms, which was fuelled by the dogged ambition of entrepreneurs like J.D. Rockefeller, Andrew Carnegie, and railroad tycoon, Cornelius Vanderbilt.

Prior to 1893, the US economy was mainly driven by the expansion of the railway network across the largely unexplored country. Numerous settlers sought their fortunes all across the length and breadth of America and the local banks were all too happy to fund the starry-eyed dreams of many on the path to financial freedom. Railroads encouraged Commerce and led to the exploitation of mines at a time when silver was the currency of the day. Soon every budding entrepreneur was trying to get a slice of the money pie and like the Housing and Sub-prime Mortgage markets prior to 2008, an artificial economic bubble was created.

Persons borrowed excessive amounts of money in order to build towns and develop silver mines.

Unfortunately, when the profits dwindled and the mines dried up, many budding entrepreneurs became heavily indebted and as many as 500 banks went bankrupt. In an effort to save themselves, the banks applied pressure to farmers in the American Midwest, who were still suffering from the effects of one of the country's worst droughts.

During this time, the large economies of the world stopped purchasing precious metals and other goods from the US. America's unemployment rate grew to 23% almost overnight, more than double the levels of the global crisis in 2008.

Back then, as it is now, a shrivelled economy is a political nightmare during an election year. The three popular political parties - The Democrats, The Republicans, and The Prohibition Party - all vied for votes by pushing their agendas for fiscal reform and their views about the appropriate lifestyle for the average American citizen. It all sounds familiar, doesn't it?

But while America was stuck in a financial rut, Canada was cashing in on its newly discovered gold reserves. In the resultant Klondike Gold Rush, many Americans headed to the Canadian Northwest, and eventually to California, armed with tools and ready to pick their golden apple.

Although the dreams countless souls were dashed, the demand for goods and resources helped to slowly pull the economy out of the Great Panic.

However, silver was the standard, not gold, and the frenzy triggered a nationwide debate about the pros and cons of making gold the new currency of choice. To add to the chaos, there was also talk of making the American dollar or the Greenback, the new monetary standard for conducting business.

Unfortunately, the initial boost from the gold rush was not enough to pull America out of its economic furrow. Greater internal demand for goods was needed to really drive the country's financial recovery, but America's population simply wasn't large enough to trigger this economic windfall. The country initiated an immigration policy geared towards quickly increasing its size.

Between the1820s and the 1920s, the number of persons living in the US more than doubled. This influx created massive demand for American products, adding fuel to the country's stalled economic engine.

Despite all this, the US still needed to boost foreign demand for its products. China was the place to go, but since most of the trade routes to Asia were under Spanish influence, it was as accessible as a volcano on the Moon.

After 300 years of colonial rule, the people of the Philippines began clamouring for control of their own country. The US, in an effort to establish a presence in the region and gain access to the lucrative Chinese market, threw their support behind the Philippine Revolution against the Spanish. The subsequent Spanish-American War in 1898 helped to drum up external demand for local goods, rocketing America out of its financial funk.

The link with Dorothy In 1900, a novel was written that would become a classic literary piece. In the book, the author (L. Frank Baum) spoke about Hope and its importance in overcoming personal crisis. With the help of an illustrator, he created characters that would represent various players in the saga of the Great Panic of 1893.

A scarecrow made of straw symbolized the fragile and indebted farmers of the American Midwest, while the Wall Street bankers, who artificially drove the price of silver by hoarding it at the beginning of the financial crisis, were depicted as the Tin-man. The politicians at the time were seen as groups of cowardly men who lacked the fortitude needed to implement policies that would've prevented such a financial catastrophe. As a tongue in cheek reference to their cowardice, they were drawn as a cowardly lion.

Despite their best efforts, these three characters still couldn't solve the problems that they were faced with. They needed Hope, which was in the form of the innocent but ever optimistic little girl named Dorothy. It was Hope that overcame the evils of the Great Panic. The book was called The Wonderful Wizard of Oz. How did this beloved children's story become an epic tale of an economic saga? The term 'The Wonderful Wizard of Oz' is a tip of the hat to the fuel of the fiscal fires, the precious metals. Both

gold and silver are measured in ounces, which are usually abbreviated 'oz'. The Yellow Brick Road was paved in gold to represent the event that jump started the American economy, The Klondike Gold Rush, while The Grand Emerald City symbolized the use of the Greenback as the new currency of choice.

What's with Dorothy's ruby red slippers? That was simply a Hollywood addition. Originally, the slippers were silver (to represent the current silver standard), but were changed to ruby red for the movie in order to take advantage of the latest technology, the colour television.

The story highlights the role and responsibilities of an entrepreneur. As a business owner, you always have to take the lead and bring out the best in those around you with the available resources. An entrepreneur embodies Hope, Patience, Resilience, and Optimism in the face of dire economic conditions. In the world of business, you are Dorothy.

THE POWER OF THE 'LITTLE MAN'

"You are the heart, soul, and the engine room of Australia, so don't you ever forget that!"

Rethink the term 'Small Business' Let's talk about 'Small Businesses' and what it takes to be successful. It is a daunting task that isn't for the faint of heart. You have to be tough, resilient, and most importantly, you have to be smart!

Building a successful business from the ground up is by no means impossible. With a little elbow grease, you can live the 'Australian Dream'.

Before taking the first step, you have to first rethink your position in the grand scheme of the financial universe. For starters, let's redefine the concept of a 'Small Business'. We adamantly object to placing the word 'Small' next to the word 'Business', since any entrepreneur can tell you, there's nothing small about running a business.

From balancing the books to ensuring that the office doesn't run out of Moccona Classic Dark Roast Coffee, business owners have a multitude of daily tasks and responsibilities to juggle. This applies to all businesses, whether you're running a small boutique in Queen Victoria Building or a multi-billion dollar corporation in the Heart of Sydney's Central Business District. There is nothing small about what current business owners and budding entrepreneurs do and anyone who dares to call an enterprise 'Small' doesn't understand what it truly takes to run a company.

Instead, 'Small Businesses' should be reclassified into categories, like Category A, Category B, Category C, and Category D, based on their size. In our redefinition, Category A organizations would have 0 - 20 employees, Category B would have 21 - 50 employees, and the series goes on.

According to our rules, 'Small Businesses' should be called Category A Businesses.

Let's get our heads around the facts about the impact of the 'Little Man' on Australia's economic landscape. There are about 2.7 million business owners in Australia; that's 10% of the country's population! These 2.7 million entrepreneurs employ 60% of the country's labour force. Thanks to you, the economy grew for 17 consecutive years before the recent Global Financial Crisis and was among the first to rebound and expand just four short months later.

'Small' businesses are largely responsible for the fall in Australia's unemployment rate in 2011 to 5% and are the reason these levels have been holding steady at 5.4%.1 'Small' businesses are the driving force behind Australia's increase in Productivity since the official end of the Global Financial Crisis1 and for the next 20 years, the Category A, B, C, and D business owners will also be funding the population's retirement scheme. You're doing it out of the revenue and risk that you take every single day of the week and that's a huge deal!

Photo courtesy of www.tradingeconomics.com/Australian Bureau of Statistics

The Gross Domestic Product (GDP), which is basically Consumer Spending, Business and Government Investments combined, has an annual turn-over of about AUD $1.57 trillion. The 1

Australian Bureau of Statistics, www.abs.gov.au, accessed October 31, 2012.

tireless efforts and resilient spirit of entrepreneurs have resulted in a steady increase in the country's GDP, making Australia's economy the 18th best in the world.

Photo courtesy of www.tradingeconomics.com/Australian Bureau of Statistics

Category A to C businesses make the largest contribution to the country's GDP. On average, about AUD $600 billion in Revenue and Production comes directly from businesses that employ less than 20 people. Every year, banks lend AUD $400 billion in assets to enterprising entrepreneurs at an average interest rate of 10%. As such, an additional AUD $40 billion is pumped into Australia's economy by business owners via the country's banking system. In total, the annual contribution of the 'Little Man' is AUD $640 billion.

All this simply means that your success as a business owner lies at the very heart of Australia's financial achievements and economic stability. In other words, the 'Little Man' runs the joint!

WHY ARE YOU IN THE GAME?

"Find out what motivates you."

What drives you?

There's no doubt that you've gone through various reasons for going into business and why you don't currently work for the Government, a bank, an insurance company, a mechanic, or whatever other organization springs to mind. Anyone who is thinking about getting into the game must be fully aware of the risks and pitfalls of unleashing your entrepreneurial spirit. With great financial rewards comes the heavy burden of utter fiscal disaster, so you have to keep your eyes open and senses alert in order to navigate the economic jungle.

Running a successful enterprise is equivalent to playing a good game of high-stakes poker; you have to know when to keep a hand, when to bluff your way through, when to calmly collect your winnings, and when to run for your financial life. With so much at stake, it pays to truly understand what drives you to stay in the game.

Our motivation In the worlds of Accounting, Finance, and Financial Planning, we believe that every Australian deserves good quality wealth management advice, not just the rich, the

educated, or the privileged. This was our main motivation for starting the Nationwide Group of Companies.

The sad reality is that the only people with millions of dollars in investable assets receive the best wealth management services. There's a reason for this; the typical financial planner is in charge of caring for every aspect of his client's finances, from Compliance to Accounting. This would become economically inefficient if he were to look after someone with less than a million dollars of assets. Unfortunately, 92% of the Australian population has less than AUD $1 million in investable assets and many believe that they're not entitled to expert financial advice.

To make up for the discrepancy, many folks seek out information for themselves. They go to seminars, scout around on online financial forums and websites, and try every means necessary to get up to speed with the business world and figure out the trick to financial stability. Sadly, many fall by the way to the misdeeds of con artists and Ponzi schemes.

That's why we’ve built a business that allows access to those curious about their financial future. Everybody deserves financial freedom and the chance to retire comfortably.

Do you have what it takes?

The first question to ask is "What type of personality do I have?" Sure, anyone can own a business, but not everyone has the aptitude, passion, and personality needed to make that company successful. Too often entrepreneurs fail to recognize whether or not they have the traits necessary for the trade and are shocked when the business fails after a few months or years.

Being lucky enough to inherit a successful family business doesn't automatically translate to running a profitable company. To make your mark in the corporate world, you have be a go-getter who isn't content to whimper and wither away in the face of opposition. You

need to be driven to find any means necessary to overcome the hurdles ahead. Are you the type of person who loves the thrill of bringing your ideas to life? For you, the feeling of accomplishment after struggling through a difficult task is as addictive as any hard drug to a junkie.

For others, the lack of control over their financial future is a great motivator for starting on the road to Entrepreneurship. They can't work in hierarchical organizations and simply abhor the concept of the overpowering hand of authority. Some persons don't like to be part of the process for 'process-sake'.

Sometimes, you need all the right questions Things can get overwhelming at times. When this occurs, you may feel that you're in need of the guidance and advice of a mentor. Many persons approach us on a day-to-day basis, seeking our advice for their business.

But one thing we’ve learned from our own experiences in the corporate world is that inspiring and mentoring people isn't about telling them what to do. Our job (and yours eventually) is to create the right environment that'll help them to figure out everything on their own. At the end of the day, the answers in relation to your business problems and issues, all reside in you.

Entrepreneurs don't need someone to tell them the answers; they need someone to ask them the right questions in order to get a clear idea of what direction they need to take their business. "Why are you in business instead of working for someone?"

You are the company's cheerleader Next, you have to think about your purpose within the organization that you are building.

Your purpose isn't to simply be the Man or Woman in charge. As the Head Honcho,

you'll have a convoluted list of responsibilities, but no task will be more important than your role as a cheerleader. Your job is to keep the people in your organization uplifted, full of hope, and feeling that better things are coming around the corner.

So before you start your journey in Business, ask yourself, "What really drives me to do it?"

THE VIRTUES OF BUSINESS

"Having the right attitude makes the difference between owning a business and having a great company."

Positive Thinking For more than several millennia, spiritual gurus and yogis have preached about the power of Positive Thinking. Whether or not you believe in the metaphysical mind is entirely up to you, but one thing is undeniable: being optimistic can significantly improve your surroundings and situation.

Having a positive attitude towards your economic aspirations allows you to effectively use your acquired skills and abilities to carry out your business strategies. You're more likely to approach problems and hurdles with the view that they are surmountable, and as such, half the battle has already been won in your head. The rest is down to applying a little elbow grease and shoulder power.

Once you've made the mental commitment to success, you will seek the training that is bound to create behavioural changes in your life and help you to develop winning habits.

After that, it's simply a matter of practicing these winning habits. It sounds too easy to be true, but after you've conquered the negative mental monsters, the physical problems are much easier to resolve. We were all born to win, but many people have been conditioned to lose.

An extension of Positive Thinking is having the right mental attitude. You can easily change the path of your life by altering your attitude. There are seldom any hopeless situations, only people who lose hope in face of some circumstances. Having the mental fortitude to deal with the challenges of business makes all the difference between a successful project and a disastrous attempt.

The right attitude is as contagious as the flu, so by associating with positive, energetic people and avoiding the naysayers, you are bound to come down with the symptoms.

Breaking a Bad Habit On the road to Entrepreneurship, one of the biggest hurdles to overcome is to break previous bad habits. You have to first decide that you want to change and take control of your life. It is a decision only you can make and a struggle that will take time to be conquered.

Many people quit their bad habits the same way they acquired them, by associating with people who share their goals. This exemplifies one of the best ways to break the bad practice; simply substitute it! Swap out a rotten habit for a healthy one by engaging in activities that promote your newfound inclinations.

Lend a helping hand

While having high expectations is crucial to achieving your goals, it is more important to offer your assistance to those around you. You're likely to find that others are willing to stick their necks out and put their shoulders to the wheel to help your cause when you've done the same for them.

Check all egos at the door Running a business is all about checking your ego and reputation at the door. Simply being the Head Honcho doesn't automatically guarantee you the right to develop a sense of Entitlement. Too often many entrepreneurs feel that once their business has gotten a stable foundation, they deserve to take it easy simply because their enterprise is semisuccessful.

However, this is the time when business owners have to kick it into high gear and strive to grow their organization. If you're not prepared to fight for what you own, then you may as well leave The Entrepreneurial Game. If you want to remain successful, you have to be willing to undertake what you ask your staff to do and go the extra mile.

Love what you do Every business needs to be nurtured like a newborn baby, as such, it can become difficult to maintain personal relationships. We're not being flippant, but the business world is tough on your love life and personal goals. In this case, you have to be prepared to work hard on both your enterprise and your heart.

During these difficult times you have to have drive and passion for what you do. With it, you'll find the energy needed to nurture both your business and your family.

Realize that your customers deserve the best Giving your customers the best products and services should also be your motivation for bringing your wares to the masses; your clients simply deserve the best of your efforts and resources. If, for a nanosecond, they do not feel that you have put your best into satisfying their needs, they will take their business elsewhere.

Believe in your dream It is impossible to overstate how important it is for budding entrepreneurs to believe in what they do. In 1946, Viktor Frankl published the book, Man's Search for Meaning, which chronicles of his experiences as an inmate in a concentration camp and how he survived the ordeal.

It's an emotionally difficult book to read, but it highlights the importance of holding strong to a belief. His book focused not on the belief in a higher power, Frankl held true to the belief that he would make it; despite all the abuse, he believed in his ability to survive.

In essence, he spoke of having a 'Why'. If you have a reason for doing what you do and something that you believe in, then you have your 'Why' and a reason to slug it out each day on the job. When you have a strong 'Why', you'll be motivated to figure out a means of accomplishing your goals and find the 'How'.

Never lose Hope By no means can we put ourselves in Viktor Frankl's shoes, but the lessons he learned during such a difficult time in his life are applicable to the daily struggles of an entrepreneur. Although his situation was desperately dire, he never lost hope that things

would get better. Having Hope pulls you out of those bleak and unavoidable periods in the typical business cycle when sales slump and expenditures are on the rise.

As a business owner, you also have to be a conveyer of Hope during financial furrows.

When those periods pop up, both you and your staff will be awash with anxiety and fear.

The last thing any entrepreneur needs during these short recessions in the business cycle is a panicky staff, as panic feeds the 'Jump Ship' syndrome. This can snowball a brief bad patch into a complete economic disaster.

Are you fearless enough?

Here's a strange question to think about, "Am I paranoid enough?" By no means do we mean paranoid in a clinical sense, but rather, are you mindful of whether or not you're doing all you can to drive your business forward?

When you drive yourself with this level of financial paranoia, you'll spend time to make sure that both you and your staff get every detail perfect. "Have we included everything that the customer wanted? Was the service delivered on time? Did we adequately and appropriately satisfy the customer's queries or complaints?" Unfortunately, it is our nature in Australia to have an 'I'm too cool for school' attitude, which can hamper the progress of many budding enterprises and prove disastrous in the highly competitive global market.

On the flip side of that, you have to be fearless and not get easily spooked by what your neighbours and competitors think about your 'wacky' business plans. Kerry Packer is a great example of how fearless an entrepreneur should be. He was financially intrepid not because he was rich, but rather it was due to the fact that he believed in his dream and what he was doing. He understood his target market. Kerry had a vast wealth of knowledge about business in general and engaged the services of the brightest and most experienced people to help him develop his organization.

When it came to business, no-one was able to spook Kerry; can you say that about yourself? Yes, there are those moments in the wee hours of the morning when you may find yourself worrying over every minor detail. "Did I do this? Did I fix that?" However, genuine financial fearlessness comes from being able to get a grip on the subtle changes in your industry and being bold enough to adapt to these changes before your competitors.

You have to be fearless in the face of competition and convey financial tenacity when leading your staff, despite how you actually feel inside. There is, however, a thin line between Fearlessness and Stupidity. As an entrepreneur, you need to be able to distinguish between the two.

Success doesn't always mean a fancy car Most people think that Success is about Fame and Money, but in reality, this isn't equivalent across the board. One man's idea of a successful business may be another's idea of mediocre enterprise.

Measuring your achievements in relation to someone else is emotionally dangerous and potentially de-motivating, since you may be tempted to think that your efforts aren't good enough. Your success can only be measured by how you are doing now in comparison to what you could've done with the ability and resources that you have.

Becoming successful is much like climbing a ladder in that you use all the available time, energy, effort, dedication, and resources to go one rung higher. However, once you start settling into your new position, you may begin to look around and wonder what to do next. When your mind starts to wonder about the possibilities, then chances are, you'll dedicate more resources and time in order to move up one another rung.

Now if you see your competitor, Paul, half way up the corporate ladder, you may be tempted to think that your business is a failure in comparison to his. But Paul might not

have started at the same point as you; in fact, half way up the ladder may be Paul's starting point. Technically, he hasn't moved at all! So think about it. Who is more successful - the man who has all the resources but hasn't utilized them efficiently or the man who has built something tangible from the little that he has?

Even though you haven't accomplished as much as Paul currently has, you've already shown that you have the drive, the ability, and the potential to turn your newly acquired profits into a massive pay-day. When it comes to measuring your success, it's always best to look at your past and not focus on another person's.

Dealing with the daily grind Ninety percent of Entrepreneurship is about the act of juggling the daily grind, struggles, and conflicts in order to make your business successful. "How do I keep my staff motivated?" "How do I get them to work extra hours to get the revenue into the business?" "How do I deal with knock backs and disappointments when a business deal falls through?" "How do I manage my personal life?"

The best way to focus is to devise a plan of action, prioritize your daily tasks, and manage your time. Some activities require your undivided attention and others are best left to your talented team.

Get up and dust yourself off One of the hardest things to do is to recover after losing a much needed contract or client.

Whenever this happens (and it inevitably will), the little gremlins of Doubt and Fear will find some way to sneak back into the picture, no matter how resilient you may be.

As a business owner, you have to be the first one in your company to snap back from these mini disasters. Failing to do so will result in a panicked staff and we all know what that eventually leads to.

These moments can even force you to make some difficult decisions with regards to the employment status of many on your team. Such decisions are never easy on the owner, the former employees, and those still standing after the axe has fallen. It is at this point that your cheerleading and theatrical skills become crucial.

You have to remember is that although your offer to the client was unsuccessful, you still have the ability and the technology to learn from the experience, pick yourself up, and resume your journey on the road to Entrepreneurship.

THE POWER OF HUMAN CAPITAL

"Your team is your best asset."

People Power Even persons on your payroll who you think are a dead loss, may actually be an asset to your team. All it takes is a bit of nurturing and care on your part to bring out the best in them. Human Capital is about engaging people with grit and toughness and is the most important asset to your organization.

No matter how good your products and services are, if they aren't bolstered by the presence of great employees then there is, in essence, no company. Your team is at the front of your business, interacting with customers and closing vital deals. As such, it pays to ensure that your staff is happy and fulfilled, both emotionally and financially. It may be a tough job market, but it's even costlier not to retain great team members.

How to motivate your team Recognition and Rewards There's an old adage, "Reward Sweetens Labour". The best way to motivate your staff and encourage a culture of production is to offer recognition for a job well done.

Recognition doesn't necessarily translate into financial rewards; a simple heartfelt "Thanks", a round of applause, or even special mention at a large company gathering can make all the difference in the world.

Of course, financial rewards also help to sweeten the deal. A well earned bonus cheque or cash prize, a company event, plaques, trophies, certificates, and other creative means of recognition are all tools that you can use to get your staff going. Simply put, give credit where it's due.

Nip poor performance in the bud Just as it is important to encourage great performance and hard work, it is equally imperative that you ensure that employees do not become complacent with poor quality results. By no means should you become the office ogre, who doles out punishment like a horrible fairytale character, but ignoring poor performance can quickly drag other team members, who are giving their all to the company, into the abyss of negativity and harm the group's overall efforts. To save the good apples, you may have to take away a few bad ones.

Coaching and Training Keeping everyone up-to-date with changes in the industry is a great way to motivate your staff. In a sense, doing so means that you're investing in their future and not just hiring them for what they can bring to the corporate table. One-on-one mentorship of your team members also encourages loyalty and brings out the best in people.

A little healthy competition A little healthy competition in the work place is always good, especially when your employees are encouraged to work as a team to accomplish a difficult task. There's an unbelievable thrill associated with achieving a goal after overcoming obstacles. However, it is important that you keep the team cohesive as the danger of individual competitiveness can easily overpower the group's camaraderie.

Personal Time Off Everyone has numerous personal demands that weigh heavily on their limited time and even though we try to juggle everything, there are times when life becomes overwhelming. As a business owner, you have to learn to be flexible and allow your employees the chance to deal with personal issues. In the end, they'll be better able to focus on their responsibilities at work.

Opportunities for Advancement Feeling stagnant is the fastest way to demotivate staff. Members of your team should see how they fit into the company's future and fully grasp what they need to do in order to climb a few rungs higher on the organization's ladder of success. This means that you have to define clear goals and tasks so that your employees do not feel as though they are caught in an endless hamster wheel chasing an impossible dream.

Get involved Your team's input in crucial matters not only helps you to make a more informed decision when trouble or the opportunity for change arises, but also helps them feel invested in the company's overall future.

As the boss, you may be preoccupied with the beauty of the forest that you fail to see the little woodpeckers and beavers that are gnawing away at the trees. On the other hand, your staff has 'on the ground' knowledge that can be incorporated into the overall picture.

When your employees feel as if they are part of a team, then they're likely to give 110% to the cause. Keep them informed via memos, frequent emails, or any other creative means of getting the word out.

Good Work Environment Although resources are tight, it is important to make sure that your employees have the items necessary for them to complete their job. Without the proper support systems in place, frustration quickly sets in and it's all too easy for a stressed out employee to feel that the job at hand doesn't deserve his optimal performance.

Even the physical environment is crucial to employee happiness. Make sure that you regularly maintain office equipment, repair and replace worn out or damaged fixtures and machinery, and keep the surroundings looking modern and fresh. Customers become easily turned off by shabby looking business establishments and no employee likes to work at such places either.

Not taking the time to properly maintain your company's surroundings sends the message to your staff that they aren't valued by management and is the perfect breeding ground for employee discontent and discord.

Stress Busters Everyone needs little gimmicks and gadgets to help quell those mini-panic attacks that pop up during the course of the work day. Having a stack of reference materials and resources to help your staff to get though these moments is a nice gesture. It also helps to

be as flexible as possible with breaks, allowing your staff a few moments throughout the day when they can refresh their thoughts can improve productivity by as much as 50%.

Even little gimmicks, like a comical squeeze toy, can help ease the tension of the daily grind, so having a few on hand for your staff may seem silly at first but can work to your advantage in the end.

A Round of Drinks Never underestimate the power of a few rounds together after work. Social gatherings are great ways for the group to bond and remind everyone that their colleagues aren't always the anxious, overstressed, bossy busy-bodies that they appear to be at work.

Events as elaborate as a company sports day, sharing a few slices of pizza together during the lunch hour, or as simple as a few group photos, can build camaraderie and mutual respect amongst everyone.

ARE YOU SELLING WHAT YOUR CUSTOMERS WANT?

"You're selling more than just products and services; you're selling solutions to a problem."

Keep your finger on the pulse of the market What are the emotions that drive your customers? What does your client truly want? In our case, we sell Hopes and Dreams. Our customers don't just want financial services and advice on Wealth Management; they want a secure future for themselves and their family.

They want to protect the assets that they have worked tirelessly for and enjoy their golden years without the worry of being financially unstable. We are the means to make their dreams come true. The same is true for your customers. As an entrepreneur, you have to ensure that you provide what your customers want. You are the solution to their problems.

As a business owner, it's also important to realize that you need to be flexible and willing to adapt quickly to the constantly changing needs of your customers. Having all the technology in the world is useless if you don't pay strict attention to what they demand at

any given time. Kodak is a great example of how the inability to adapt to your customers can hurt your business, despite having the most advanced technology in the world.

Kodak was a leader in the development of cutting edge innovations in the world of photography. By the late 1970s, it had at least a 90% market share in the industry.

Although the company was one of the first to hammer out the core technology and principles of Digital Photography, Kodak failed to take note of the oncoming Digital Revolution, relying instead on their strong market presence with the use of traditional photographic film. This allowed many of Kodak's competitors to take the lion's share in the new technology.

By the late 1990s, Kodak was struggling to stay afloat. It has since failed to regain the glory of its former days and as of early 2012, the company announced its plan to sell various aspects of its business in an effort to recover from Chapter 11 bankruptcy.

Gauging customer feedback Whether you are trying to design a product that fits the needs of your clients or evaluating the quality of your service, conducting customer surveys is the best way to capture feedback from existing and potential clients. Without regularly feasting on these valuable morsels of information, your business will be doomed to failure.

There are a number of ways to elicit feedback from the public - from doing an informal phone survey to organizing a well structured focus group. Each method has its own merits.

Informal Phone Surveys Informal phone surveys are great ways to get quick feedback from your clients. Some companies prefer to do what is known as a 'Cold Call'. They obtain customer information

from various sources, including third party online agencies and even the local phone directory, then simply call the individuals and ask a myriad of questions.

In our opinion, this route isn't the most effective way of getting your clients' feedback as it is likely to elicit the same responses as Telemarketing does (which can be rather unpleasant). It can be costly for a Category A business owner to spend time and money on such a method.

It is wiser to conduct a short phone interview after the customer has called your organization, after all, your clients will call your company to sort out general issues relating to their order. This has the advantage of being cheaper and is more targeted.

Have a 'Complaints' box Every business should set up a means by which customers can freely praise or complain about their experiences with the company. This is a good way to truly gauge your performance and figure out if the business is meeting the expectations of its clients. This can be an actual box in your store or a section on your website where clients can rate your company.

Social Media Sites The popularity of social media sites like Facebook, Reddit, and Twitter, makes it easy to get feedback from your clients. Every business owner, whether you are a multi-billion dollar corporation or a kid on the sidewalk selling lemonade, should take full advantage of the Social Media Revolution.

Set up accounts on these sites and advertise your company or elicit customer feedback.

Keep an eye on Twitter rants and Facebook likes; even if the opinion wasn't prompted by your company's survey, these avenues can give you great insight into the expectations and desires of your customers.

Mailing Lists and Online Surveys Creating a list with the contact information of your clients makes it easy to send targeted promotional offers and customer surveys. You can build a mailing list from the information in your files, like receipts, invoices, or via phone calls, as well as via the services of mailing list companies, like The Prospect Shop, Action Mailing Lists, or Mailinglists.com. When customers visit your website (and every business should have a website), you can easily ask them for a few moments of their time to participate in an online survey.

Blogs A good blog is entertaining, informative, and fresh. Blogs are used to not only voice your opinion on a particular subject, but also to drive traffic towards your website, which in turn generates additional sales. They are also great ways to advertise and inform your clients about the company's latest promotional offers.

You can make your company's blog interactive by asking your readers for their views on the topics discussed in various articles. This is another fantastic way to conduct a customer survey without your clients realizing that they're actually participating in one.

In-Store Surveys Although the Digital Age has vastly impacted how business is conducted in the modern world, you should never underestimate the power of face-to-face contact with your clients. It all boils down to how we as humans think, feel, and move. Fifty years of magnificent technological advances can't simply erase millions of years of evolution in one night.

Whenever customers are in your store, get feedback about their experiences and their expectations. Casually chitchatting during check-out or conducting an in-depth survey can gather a wealth of useful information. You can even have a few employees pose as shoppers, that way, they can start up random conversations with your clients and gain honest insights into their shopping habits. If done correctly, the conversation will flow naturally and participants will not feel any added pressure or tension. As far as they're concerned, they're simply having a nice chat with a fellow customer. It's a rather sneaky tactic, but you'll be amazed at the things you can learn.

Focus Groups Conducting a Focus Group is the quintessential method for gathering customer feedback.

In fact, every major company in the world regularly conducts focus groups before introducing new products to the market. Although running these groups can be pricey, the beauty of this type of research is that you'll get direct and honest first impression reactions to your products and services.

Tips for conducting a customer survey Whether you're interested in conducting an informal phone survey or a large-scale focus group, there are a few general tips and guidelines to note.

Do your homework Despite your best intentions, no customer feedback forum is effective unless you figure out beforehand what exactly it is that you're trying to investigate. It's not enough to just say that you want to make a product better; you have to come up with ways to do so and then ask your customers for their thoughts on the changes. Doing your homework helps you to formulate questions that will elicit responses that are most useful to your survey.

Let's say that you are in the pizza business and you've decided to improve the quality of your pizzas. The first thing you need to do is sit and critically analyse your product. Look at what your competitors are doing and ways you can improve the offering itself or the

service. Faster delivery times? No errors during the ordering process? Better ingredients?

More variety?

Next you have to figure out who your customers are and why each is motivated to choose your product. Who is buying your pizza and why? This helps you to narrow down your focus group and figure out who is most likely to give useful information about your wares.

Keep it simple No-one has the time or interest to complete long, convoluted survey questions, so keep your queries as simple as possible. It is better to conduct several short surveys over a period of time than a long one filled with lots of questions. Lengthy questionaries conjure up memories of sitting a 10th grade Math exam and nobody likes to relive those moments.

Ideally, 8 - 10 questions are sufficient for any customer survey. The answers should be multiple choice or based on a Rating System (10 being the best and 0 is the worst or viceversa) that makes analysing and quantifying the results much easier. Our society has become one driven by instant gratification, so you have to be able to gather information as efficiently and effectively as possible before the patience of your customers wear thin.

Just as every article or book that you have ever read has an introduction, a main body, and a conclusion, so to do surveys. Different types of questions must be asked at various times during the customer feedback process.

The first 1 - 2 questions are designed to relax participants and get them prepared to deal with the matter at hand. These Engagement Questions put them in the mood, if you will, and are meant to hold the customer's attention. In our example, a good engagement question would be "What's your favourite pizza?"

The Exploratory Questions get down to the meat of the matter and are meant to suss out relevant clues about the consumption and spending habits of your customers. "Why do you normally order our pizza?" "Would you prefer a pizza with more cheese or less?"

The Exit Questions are the 'Cool Down' questions. They are designed to catch titbits of information that you may have missed during the survey. "Is there anything else that you'd like to see us offering in the future?"

Give an incentive Which would you rather? a) Spending 3 minutes to complete a questionnaire. b) Spending 6 minutes to complete a questionnaire and then receiving a $5 voucher towards your next purchase.

Chances are, you've chosen option b. We do not have a portal into your innermost thoughts, but we do understand one fundamental principle about human nature: We all like to be rewarded for our efforts.

Most persons will spend the extra 3 minutes to answer additional questions simply because there's an incentive at the end. The customer is willing to do this because he feels that he's walking away with the better end of the deal. "What are a few extra minutes if I'm getting something for free in return?"

In a sense, you are hiring your customers for the few minutes it will take to conduct the survey. You would compensate your employees for their time on the job, what makes you think that your customers shouldn't receive an incentive as well?

Choose the right participants

Equally important is to the whole process is the type of persons you choose to ask questions. An 80 year old woman with no young grand-children is less likely to order pizza than a grandma with a few rambunctious 7 year olds running around. You want to choose persons who are likely to utilize your products and services regularly, since they'll have a more accurate view of the effectiveness of your goods than someone who only visits your office once in a blue moon.

This rule is of particular importance when it comes to conducting focus groups. The type of participants can skewer their responses. A person who is a bit overweight is less likely to give honest answers about his pizza consumption habits if the room is filled with extremely slender participants. Likewise, a guy who is trying to impress an attractive young woman may fib when completing the questionnaire. While these incidents are unavoidable, they can be minimized through careful planning.

Don't forget your demographics When conducting a customer survey, it's important to get the relevant information on the participant's demographics, including age, gender, economic level, and work experience.

Without this information, a survey is virtually useless. Customer demographics help you to figure out which group of people are buying your products and how to develop an appropriate marketing strategy to target these persons.

Establish a clear set of rules There must be a clear set of ground rules under which the survey or focus group is conducted. Without them, it's easy for anarchy to take root resulting in unusable information.

Avoid repeating yourself

While customer feedback is important, avoid conducting research that is a rehash of the same issues and minimize contact with the same set of persons. The last thing you want to do is to frustrate and bore your customers with the same questionnaires. This gives the impression that your company is stagnant, which, in a constantly evolving society, can spell disaster.

If conducting surveys and focus groups on your own seem a bit challenging and time consuming, there are countless organizations in Australia that are more than happy to help out for a minimal fee.

AUSTRALIA'S FINANCIAL FUTURE AND ITS GLOBAL IMPACT

"Pay attention to the business forecasts, so that you can better prepare for the financial storms."

Knowing your surroundings Do you know the business environment in which you operate? What's happening locally?

Globally?

Being aware of your economic surroundings is crucial to any entrepreneur. You have to know what your competitors are doing and then beat them at their own game. To do so, you have to put yourself in a position to gather as much information about the other team.

It's a delicate dance that takes a bit of time and practice to master, but once you do, the rewards will be great.

Australia is on the cusp of a bountiful economic future As with all things in life, what goes up must come back down. The financial meltdown of 2008 was one of the worst global recessions since the Great Depression, but an economic

slump always generates a financial boom when a country finally pulls itself out of the fiscal trenches. It is true that recovery from the Global Financial Crisis has been slow, but it has been steadily increasing, especially in countries that have large manufacturing, mining, and production sectors.

The manufacturing and production powerhouses of the world, China and India, have started to take full advantage of the global recovery. These markets are Australia's largest trading partners, thanks in part to our rich mineral deposits and close proximity. The Australian Parliament recently penned a plan to boost trade and improve Trans-Pacific Partnerships with several Asian markets over the next decade.2 Australian exports jumped 20% to $266 billion in 20113 and is expected to steadily grow in the coming years. The country is not only a global leader in the exportation of natural resources, energy, and food, but it also has a large Service Sector that can rival any in the big markets across the world. In April 2012, the International Monetary Fund (IMF) forecasted that for the next two years, Australia's economy will be one of the best performing markets worldwide.4 Who is the engine driving this stellar performance? Business owners like you. With the odds stacked in your favour, it's high time to take full advantage of the opportunities around you.

Gathering information about the forecasted performance of the Australian economy isn't as difficult as you think and it doesn't require a doctorate degree in Finance from The University of Melbourne. You can read any number of online business websites, like The Financial Review, The Australian Herald, The Courier Mail, or even watch the news to get a sense of what's happening in the country and the business world. The Australian Bureau of Statistics and The Australian Bankers Association websites also provide a 2

James Grubel, "Australia aims to lift Asia trade to one third of GDP by 2025", www.reuters.com, October 28, 2012.

3 "Australia Economy 2012", www.theodora.com, accessed November 5, 2012.

4 "Australian economy to outperform the world: IMF", www.sbs.com.au, accessed November 2, 2012.

wealth of financial information that is easy to digest and you can visit our website for advice about the financial climate.

It can get overwhelming to keep track of so many avenues of information, that's why we recommend finding 2 - 3 good sources and sticking to them.

You need to also be able to gauge the macroeconomic environment without always relying on the Government. While the Treasury is bound by law to divulge the truth, it isn't compelled to tell the whole truth. The Treasurer's job is to protect the economy and prevent mass panic in the financial sector, as such, the office will release information that bolsters its efforts. Unfortunately, this information isn't always to the benefit of Category A - D businesses. In essence, you have to take such financial proclamations and announcements from the Treasury Department with a grain of salt and a wealth of background information.

At the end of the day, you need to have a good view of the macroeconomic environment so that you don't run the risk of borrowing money during a time of general economic downturn and jeopardize your life's efforts.

PLANNING FOR THE FUTURE

"To get from point A to point B, every smart entrepreneur needs a business plan."

Starting with a plan Driving to a strange place would be fool hardy without a roadmap, so too is running a business without a plan. A business plan helps you to realistically look at the viability of your idea, highlights any weaknesses in your fiscal strategy, and is a great tool to use when marketing your idea or applying for loans.

Executive Summary – This section of your business plan is usually written last. It's a summary of your financial strategy and is usually about 1 - 2 pages.

Market Analysis - Before stepping into the corporate world, it pays to determine whether or not the market is ready for your business idea. Make a detailed market analysis by interviewing potential customers, doing background research, and examining the other players in the industry. Pay attention to your competitors and build your business by taking advantage of the shortcomings of your rivals.

General Company Description – Identify the objectives of your business, what your group is all about, and how your company is different from all the others in operation.

Products and Services – Here, you'll describe the products and services that you offer and how these can improve the lives of your customers. Identify what distinguishes your offering from any other on the market.

Marketing Plan – Analyse your market to find out what potential customers and competitors are doing. Developing an effective marketing plan is crucial. See Marketing your Dream for details.

Operational Plan – This part outlines the workings of your operation and its production capacity. How do you intend to produce your goods and services? Developing a schematic of the production lab's workflow can help to identify any potential bottlenecks or inefficiencies. How do you plan to deliver the goods to your customers or bring in supplies from your vendors? What are the required licenses and permits?

Management and Organization – Developing a management strategy helps you to identify who will be responsible for specific tasks. Who will control the Finances?

Customer Service? Marketing and Sales? What are the tasks that must be accomplished on a daily, monthly, quarterly, or annual basis? It helps to write out the description of each job title in your company to get a clear view of who does what.

Major Milestones – Look at your personal strengths and weaknesses and examine how you can use them to build your business. This is especially good in an industry that is saturated with players, since your personal experiences can become a great marketing angle.

Sure there may be several pizzerias in town, but if you've spent a few summers in the heart of Italy learning from the pizza masters in the homeland of this wonderful dish, how many of your competitors can boast about having that experience?

Financial Plan – Determine your start-up costs and identify your source of funding. Will you use traditional bank loans, mortgages (that's not the best option), personal savings

(bad option as well), or any other source of funding. The best sources of money are those which have low interest rates, a longer repayment time, and are relatively easy to get.

Unfortunately, investors that fit all these criteria are impossible to find, so many entrepreneurs opt for using a mix of traditional and non-traditional resources.

Not only do you have to account for the costs associated with setting up your company, you also need to make financial projections about how much revenue is expected within a certain timeframe. It's best to be pessimistic with your estimates for the first 2 years. In our experience, this is normal, as the market and your clients need some time to warm up to your company and its offerings.

When you've gathered all the relevant information, you can sit down and write your business plan. If this seems daunting, then a professional can help you to get it done. For help getting started, you can easily contact our office on (08) 8250 9434

Expanding your business The core reason for starting your own business is to become financially stable, but this can only happen if you generate profits. When the company has built a strong reputation and has been running consistently profitable for at least 2 years, it's only natural for business owners to think of expansion. There are several ways to do so, each of which offers a particular set of benefits and pitfalls.

Opening another branch When most entrepreneurs think of expanding, they think of opening another branch. But before jumping to randomly set up shop, you have to think about several key elements.

The first is the type of market that you're planning to enter. Your flagship store might have been a smash hit in one area, but recreating its success in another could end up being a complete bust. The new market that you've chosen simply has no need for your goods. Would you open a surfing goods store in Alice Springs?

Secondly, think about the location of the new branch. The new site should allow for easy contact with your existing store, since chances are, you'll be travelling frequently between the stores. On the other hand, it must not be so close that it cannibalizes customers from your flagship store.

Let's say that you have a profitable business in a small town that caters to the needs of 20,000 customers in any given month. If you want to expand your store, then you should choose a location that is 45 minutes - 1 hour away. This will allow you to easily travel between branches and at the same time, there will not be much overlap in the customer base of both stores. With this strategy, you can offer your services to approximately 40,000 people in a month over 2 stores (assuming conditions remain constant) and increase profits. No logical person will travel 45 minutes or an hour to visit a store that has the same goods as the shop in the heart of town.

However, opening a store at a location in the same town as the original store reduces profits and increases costs. Now, you’re serving 20,000 customers over 2 stores while paying overhead for both locations.

The authors must point out that if the local market is large enough to accommodate 2 store locations in the same geographic area, then opening several branches within close proximity of each other or expanding the infrastructure of the original store is a viable and profitable option as well. It all rests on the size of your customer base.

Teaming up with similar businesses Sometimes the best way to expand is to align with companies that have similar interests.

Let's say that you run a business manufacturing clothing for surfers. A great way to get your products to the masses would be to team up with a surfboard manufacturer to create a mutually beneficial alliance. Not only will you expand your customer base, but you'll

both benefit from combined marketing and promotional campaigns, all without the need for, and costs of, opening an additional store.

Diversify your product line Offering multiple product and service packages is another great way to broaden your customer base. Why stop at manufacturing clothes for surfing? You can offer surf wax, boards, gadgets, and any other surf related product.

Even your original product line can be streamlined to target a new market. Your surf clothing products can be modified, repackaged, and offered to the personal fitness market.

License your product and offer franchise opportunities If your product or service line is relatively strong, then this is a viable option to explore.

Once the relevant paperwork, patents, and licenses are in place, then other budding entrepreneurs can open shop using your products. The beauty of this method is that the costs and risks of starting a new store are absorbed by the business owners who have bought the franchise rights. Your only concern is to ensure that your brand name remains strong and collect royalties.

Corporate merger or take-over You can reduce the competition and expand your business by merging with strong competitors or buying those that are struggling. While there is significant risk involved, you are, in essence, buying a company that already has the relevant infrastructure in place.

Your main focus after the merger or take-over is to win over customers with the strength of your brand name and keep things flowing smoothly with the new staff. Remember, this transition is nerve-racking for them as well.

Go overseas In this global economy, going into overseas areas is another option for expansion. All you need to do is find a distributor in the market of interest and take your business to the next level. Trade shows, import or export companies, and Chamber of Commerce offices are great places to find distributors who can put your wares on foreign markets.

Your Exit Strategy Every successful mogul always has a backup plan and then an exit strategy for that backup plan! It sounds counterintuitive, telling you how to run a successful business and then how to sell it, but sadly it happens to even the most business savvy among us. We’ve sold several of our businesses for a multitude of reasons. In some cases, we had lost the drive to push us through the daily grind and there were other times when a great financial opportunity presented itself.

Most businesses fail within the first 5 years, so when developing your business plan, you have to think about this rather depressing detail. But don't be fooled into thinking that this dark cloud is a bad thing. In reality, it acts as a great motivator, pushing you to get things done. You're not in business just to go to work every single day, you're in business to build something that's valuable to you and your family down the road.

Since this is a big task, it pays to get your support system in place. Business deals can be tricky, so you will need to spend time getting the relevant professionals on your side, including lawyers, accountants, business and investment brokers, and the management team that will take over during and after the sale.

Gather your paperwork You have to get a realistic estimate on the value of your company. Look at your company's strengths, weaknesses, assets, liabilities, products, services, and position in the market. All the paperwork collected over the years has to be intact, so gather and organize all the receipts, invoices, licenses, permits, tax returns, legal documents, contracts, vendor information, leases, and every piece of document ever generated in relation to your company. This massive data collection also helps you to make better plans for the future should you choose not to go through with the sale.

Potential buyers will naturally be curious about the reasons for selling your relatively successful business. They want to make sure that you aren't trying to unload a lemon and escape a sinking ship. As such, you have to be prepared to delve into this rather personal matter.

It's easy to let your business operations slip during a sale, but doing so jeopardizes your chance of getting a good offer from potential buyers. As such, keep things running efficiently and well organized; this not only gives a good impression, but will keep employee morale up during a time of uncertainty.

MARKETING YOUR DREAM

"Having the best product and service is useless if no-one knows about it."

Getting your name out there Companies pay top dollar to make sure that consumers remember their names. When you hear the phrase "chocolate cookie with a cream filling" you think of Oreos. A beer with a deer on the label brings your mind immediately to Tooheys. Brand Recognition is pivotal in becoming a successful company.

Sell Yourself When it comes down to choosing between similar products, many customers will base their decision on unrelated things, like the personality of one business owner compared to the other. Brand Recognition isn't just about the product itself, it's also about the owner.

Customers want to look you up on the internet, research your business, and see that you're visible. In a sense, you are marketing not just a product, you are selling yourself.

Use your own product

As a business owner, you have to stand behind your product. That means using it and showing potential customers not only how to use it, but also that you are consuming your own product. This builds confidence and trust in your brand.

Differentiate your product Consumers love having a unique item, so a marketing strategy that highlights the special properties of your product or service will give your image an air of exclusivity. Look at what your competitors are doing and think critically about how your product is better than theirs. Then send a strong, consistent message that is clearly identified with your brand.

You can even differentiate your wares by tapping into the customer base of a niche market. This works particularly well for businesses with limited resources. Instead of focusing on competing with the big boys, keep your eye on fulfilling the needs of customers who have been neglected by the larger companies.

The Nationwide Group of Companies is set in a market dominated by Australia's largest banks that are focused on offering Wealth Management Services to millionaires. Our strategy of zeroing in on the average man and offering him a chance to grow his financial portfolio, has allowed us to not only create and market a unique product, but also helped us to build customer loyalty.

Be Accessible Despite the increased use of technology in our modern world, we all still crave human contact. Your marketing campaign is vastly improved if it sends a message that your group is easily accessible and always available to help clients with their needs. From follow-up calls on product information to after-sales service, people want to know that you have their backs, no matter what.

Get your message out Having a strong market presence is the best way to build Brand Recognition and Awareness. Customers like to be in the know about the activities, special sales, and promotional events of their favourite brands. Develop an effective campaign message and get it out into the public realm using a variety of media, including: 

Trade shows and industry gatherings

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Charity events and community projects

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Print ads, posters, and billboards

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Multimedia

However, there is the risk of appearing pushy with this marketing strategy. Your publications can be deemed as junk mail if they contain all fluff and no substance. You can avoid this by creating an interesting message that connects with readers and makes them eager to read the next issue.

Take advantage of Social Media Twitter, Facebook, Reddit, and countless other social networks provide the best means of effectively marketing to potential clients. The popularity of these sites makes them a great tool for mass marketing on a low budget. Create buzz and excitement with YouTube videos that have memorable content and get the word out with electronic mailing lists.

Most importantly, your marketing campaign should also include a well designed website.

The website is the face of your company in the digital world, so if you need to hire a professional to ensure that it is well maintained and functioning properly, then do so.

Nothing is a bigger turn-off to potential clients than a wonky URL.

You can drive traffic to your site by incorporating blogs and articles that have great content and are loaded with keywords. Keywords are a specific string of words designed to give websites and articles stronger internet presence. A webpage with a lot of keywords will rank higher in search engine results and is more likely to grab the attention of potential customers.

Sweeten the deal Offer bonuses, coupons, incentives, and prizes to customers when they utilize your products and services. Clients, who feel that their business is greatly appreciated, are more than happy to spread the word about your company. At the end of the day, nothing beats 'Word-of-Mouth' Marketing.

Seize opportunities to market your business As a business owner, you have to be willing to seize marketing opportunities that arise, even if they may not seem lucrative in the beginning. To forget the present struggles, think about the future rewards.

MONEY MANAGEMENT FOR ENTREPENUERS

"Budget: A mathematical confirmation of your suspicions."

- A.A. Latimer

Keeping an eye on your Cash Flow Without accurate Cash Flow projections, it's difficult for an entrepreneur to sense when economic rough waters are fast approaching. While it isn't a magic crystal ball that will allow you to gaze into your financial future, Cash Flow Plans give you a good estimate of the health of your business. If you find yourself constantly struggling to make ends meet, then this is a clue that your business management and marketing strategies need to be adjusted ASAP!

To generate accurate Cash Flow projections, tally up the cash on hand from various sources, including partial collection of bad debts, sales, and interest payments. Take a look at the amount for outstanding debts, when they are due, and gather any detailed information on the debtors. Does the company have an established relationship with this particular customer? Does he normally pay his bills on time? What is his credit score?

This information can be used to help predict the likelihood that the customer will clear up any outstanding amount quickly.

Next, look at expenditures, like cash dividends, taxes, rent, fees, office supplies, or any other expense. If your expenditures consistently outweigh your revenue influx, then you must find a means of improving receivables and/or reducing expenses.

Improving Receivables In a perfect world, you would be paid immediately for services rendered, but in reality, this isn't always the case. From time to time, inventory may not turn over as quickly as expected and customers become lax when it comes to settling their debts. There are a few ways to improve receivables: 

Run credit checks for customers paying via non-cash routes.

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Institute a 'Cash on Delivery' policy to deter delinquency.

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Institute penalties for delinquent customers.

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Offer discounts and special rewards to customers who pay their bills on-time.

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Collect deposits when orders are placed.

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Keep all paperwork, receipts, and invoices up-to-date and constantly monitor them.

Reducing Expenditures Huge sales figures do not automatically translate into a booming business if your company's bottom-line increases exponentially. Carefully examine your costs and find ways the reduce them. 

Pay your debts according to the creditors payment conditions. If payment is due in 30 days, then clear up your bills in 25. This gives you some financial breathing room when things are tight.

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If you're having a difficulty repaying your debt, speak with your suppliers and explain your financial situation. You may be able to get some leniency, especially if you have been a good customer.

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Examine your production schematics and find ways to make the process more efficient. Greater efficiency translates to less wastage and reduced costs.

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Sometimes cheaper isn't always better. Establish a good working relationship with your supplier in order to get access to more perks, like flexible payment options or great discounts.

When the figures don't add up Despite your best efforts, there will be times when the figures simply don't add up.

Sometimes unplanned expenses arise or revenue inflow is merely a light drip. There are a few strategies to employ that can help you to get over these small bumps.

Keep a close eye on your Cash Flow. If the levels start to spiral downwards, then it's time to apply stop-gap measures. Firstly, you should prioritize the bills that must be paid.

Always pay your employees first (staff is important), then critical bills, like rent or important suppliers. Once those are covered, offer partial payments on other debts.

Next, speak with the suppliers with whom you have a good relationship. Sometimes an honest conversation can lead to unexpectedly pleasant results. If this method fails to give you much relief, then you'll have to apply for a line of credit from your financial institution. You can get short-term loans that can temporarily ease your financial burden.

Unfortunately, this stop-gap measure can become a long-term headache because you're now saddled with an additional high interest debt that has to be repaid quickly.

You may also opt to sell or lease assets in order to raise short-term capital. Unfortunately, if you happen to fall behind on the relevant payments, you may end up losing everything.

For this reason, we would advise budding entrepreneurs to only use this option as a last resort.

In addition to the above measures, you should use various incentives and offers to encourage your best customers with a good track record to clear their debts. Even clients who have long overdue debts can be enticed into paying immediately with the offer of deep discounts and cash back incentives.

A QUICK GUIDE TO RUNNING A SUCCESSFUL BUSINESS

"Someone who owns a business only reacts to situations as they arise. A savvy entrepreneur already has an action plan in place long before calamity strikes."

There's no hard and fast rule Running a successful business is about proper planning, hard work, and having a little luck. While no-one can predict exactly how the economic tide will turn and create a 'How-to' rule book for becoming a mega-mogul, there are a few general guidelines that you can follow to get on the path.

Have a Business Plan Before contemplating about selling to your first customer, you have to develop a business plan. No General would go to war without first developing a battle tactic; the same is true for running a business. Spend the time and create a solid roadmap for your new economic quest. Predict what costs and obstacles may arise and develop a plan for tackling and overcoming these speed bumps to Entrepreneurship.

Always plan for the worst Planning for the worst in business isn't about being pessimistic. Note that we're not advocating harbouring negative thoughts about your business, after all, it is positive thinking that will push you over those difficult hurdles. Anticipating the worst case scenario for any given condition helps you to better organize and develop back-up and recovery strategies that'll get you out of the Doldrums faster than your competitors.

Insure your investment Insuring your investment should be an integral part of your recovery plan. Doing so prevents you from starting from square one and gives you a much needed boost should the absolute worst happen.

Hire the right people Having the right staff can make or break your business. Your employees are the first and last contact with your customers, so choose wisely when putting your team together. You have to be willing to make the tough calls, but once you have a great team in place, you should strive to retain them.

Always get it in writing As with every business deal, the devil is in the details. As such, it pays to iron out every aspect of a contract with suppliers, customers, or any other business associate. Get everything in writing, just in case.

Sell what your customers want

Fulfilling the wishes, hopes, and dreams of your customers is the cornerstone of any successful business. No matter how unique you may think your product or service is, if your customers aren't willing to purchase it, then you have to rethink your offering.

Reduce your borrowing When launching your entrepreneurial career, it's important to make sure that your business doesn't get off on the wrong foot by having mountains of debt. Getting outside investments is unavoidable and necessary, but it is important to reduce your borrowing in order to give yourself a fight chance in the corporate world. Any entrepreneur saddled with huge debt becomes easy pickings for the economic predators.

Monitor your Cash Flow A company's Cash Flow is its barometer. A vibrant business always has a healthy and steady influx of revenue. If you often find yourself struggling, this is a sign that your business plans, management and marketing strategies need to be refined.

You should maximize your profits by finding ways to efficiently turn customer leads into sales and goods on credit into cash. On the other hand, having a positive cash flow depends on spending less than you actually earn. Keep expenses low by streamlining production and establishing great relationships with suppliers and creditors in order to cash in on perks and benefits.

Don't pay more taxes than you have to Many budding entrepreneurs fail to pay attention to all the applicable tax laws of the land and take advantage of any tax breaks that exist. In essence, don't pay more of anything than you have to. Spend time browsing the Australian Tax Office's website; you'll be surprised at what you find. If you don't have the time, then hire a professional in the field.

Develop a great marketing campaign Even if you have a product that converts water into gold, if the public is unaware that it exists, then this magic elixir is about as useful as an umbrella with holes in a rain storm.

Spend the time to develop your marketing campaign, differentiate your product, and get your brand's message out into the public realm in order to generate buzz and sales.

It's not always about being the cheapest Your product's perceived value is what motivates customers to purchase it. Being the cheapest on the market doesn't automatically translate into a boost in sales. It's better to add value to your product. The average customer is more than willing to pay for high quality goods and services that fulfill their needs than a cheap knock off.

Get help and guidance Navigating the corporate world is tricky. Every business owner and corporate mogul has, at some point in their career, sought the advice of others. It's impossible for you to know every subtle detail about Entrepreneurship, but it is likely that you'll know other persons who are more experienced at certain aspects of it than you are. Seek their help, whether it's the kind words of a trusted friend or the objective advice of a hired professional.

Every entrepreneur relishes the thought of learning and doing something new.

Be motivated by your passion There's an old adage, "If you do what you love, then you'll never work a day in your life."

Every business owner has to be driven by a love of the corporate game or a passion for, and deep rooted belief in, his product or business idea. Without this motivation, it's difficult to get through those tough days in the corporate world.

Seize the chance to expand Whether through careful planning or sheer luck, opportunities to expand your budding enterprise will definitely arise. Seize the moment, even if it means some amount of temporary inconvenience on your part. After all, you never know what the new venture may bring.

PEARLS OF WISDOM We all have adages and little Pearls of Wisdom that we live by. Here are a few gems that have helped us in The Entrepreneurial Game.

Life Lessons The Six Golden Rules for a Happy and Successful Life 1. When you lose, don’t lose the lesson.

2. Treat others as you would like them to treat you.

3. Always have a Devil's Advocate. He can help you to critically and objectively look at your actions.

4. Allocate time for things that are important but not urgent.

5. Live and let live, but don’t live with injustice.

6. Do what you say you are going to do.

Secrets to Happiness 1. Happiness begins with acceptance.

2. Happiness is about journey, not the destination.

The Purpose of Life The purpose of life is rather simple; develop loving relationships and make a meaningful, positive contribution.

The Three Parts to Every Conversation 1. The Facts 2. The Feelings 3. The Consequences

The Facts of Finances Secrets to Excellent Customer Service 1. Offer service with a smile.

2. Ask your customers more questions.

3. Truly care about their needs.

4. Exceed their expectations every day.

Financial Formulae Value for money = Quality/Price The Reasons People Buy 1. Your item is rare.

2. The item affects their Empathy and/or Ego 3. You have a great sales pitch.

4. The deal is too good to pass up.

5. They are obligated to buy.

6. They are nervous.

7. They are influenced by social pressure.

The Reasons People Don’t Buy 1. There's no need for the item.

2. They simply don't trust you or your product.

3. They're in a hurry.

4. They are afraid.

5. It's not their decision.

6. They have countless options.

7. They have limited funds.

The Four keys to Persuasion

1. People don’t care how much you know until they know how much you care.

2. Figure out what the other person’s emotional needs are and fulfill them.

3. Make it easy for people to buy your item.

4. Focus on Value, not Price Four Things about Saving and Making Money 1. “Yes, it is expensive. But look at what you get in return.” Quality is always better than Quantity.

2. Take a deep breath and think it over, regardless of what you think of the price 3. Always ask, “Is that your best price?”

4. When clients say, "I'll think it over," that's because they have a particular issue that they need to address. In this case, your reply should be, “I agree you should think about it." This lets your customers know that you aren't solely focused on making a sale.

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Karen E. Spaeder, "10 Ways to Grow Your Business", Entrepreneur, www.entrepreneur.com, May 11, 2004.

Louis Lee, "How to conduct a focus group", Bloomberg Business Week Magazine, www.businessweek.com, October 8, 2009.

Brad Sugars, "10 tips for a Strong Start", Entrepreneur, www.entrepreneur.com, February 12, 2010.

Cynthia Gomez, "How to conduct a customer survey", eHow Money, www.ehow.com, December 15, 2011.

James Grubel, "Australia aims to lift Asia trade to one third of GDP by 2025", Reuters, www.reuters.com, October 28, 2012.

Jack Herrick, et. al., "How to write a business plan", WikiHow, www.wikihow.com.

October 31, 2012.

"How to better manage your Cash Flow", Entrepreneur, www.entrepreneur.com, accessed November 1, 2012.

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Australia", Wikipedia, www.en.wikipedia.org, accessed November 1, 2012.

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ABOUT THE AUTHORS

Steve Tsimopoulos

Yianni Tsimopoulos

James Tsimopoulos

We have been around the corporate block enough times to know how and when to cash in on a good deal. We've worked our way up from humble, working-class beginnings in Adelaide to the boardroom of one of the world's best companies and we can tell you, it wasn't an easy ride.

After selling our highly successful Medical Pathology Business in the early 1990s, we started the Nationwide Group of Companies to give every Australian the chance to learn how to achieve their hopes and dreams for the future. Now we share with you our two cents about the wonderful world of Accounting and Finance to help budding entrepreneurs on their fiscal journey.

We have experienced losses, setbacks, and triumphs while making our way along the road to Success, but the journey has taught us the true value of being entrepreneurs.

Despite the bumps and bruises, we wouldn't change a thing!

An entrepreneur is permanently strapped to the economic wheel of life. There will be moments when you’ll be pushed face first into the mud and your financial situation will leave you gasping for air. But if you just hang on, work with your strategy, and believe in the mathematics and fiscal principles of what you’re doing, then the wheel will turn and soon, you’ll be basking in golden sunshine.

To find out how you can start planning for your financial future, please visit www.nationwidefinance.com.au.

We’ll finish this book with a lesson that we've learnt over the years: “Work, because work is good for your soul. Play, because you have to balance out all the hard work and effort that you’ve invested. Fight, for what’s worth fighting for. Love, what’s worth loving, and Believe in something.”