Let’s Talk Business
1
Let’s Talk Business Back To Basics Business Solutions - Support for Small Business
Definition of an Australian
Small Business
(There are about 20 different definitions - depending on who is doing the defining)
Inside this issue
Cover Story - Definition of
a Small Business ...... ...….2
The Continually Improving
Business
Dr Tim Baker …..….............3
Biz Snippets …………….......4
Are You a Creative Leader -
or a Manager ?
Dennis Chiron………...........5
Squeeze Out Your Balance
Sheet to Improve Cash Flow
Geoff Butler ………………..6
7 Reasons Why NOT to have a
Business Coach or Mentor
Dan Buzer ……..…………...7
6 More Things That Google
Looks For in a Website
Karen Ahl ……..………..….8
Your WH&S Obligations -
Keeping Records
Tony Osmani …..…….…....9
Stay Alert for Scams
Jo-Anne Chaplin………….10
General Financial Tips for
Small Business
Christopher Mobbs…….. .11
Is This Divine Intervention?
Peter Nicol ………………..12
Editor’s BizTips ……….….13
LTB Objectives …..........…14
Volume 2 Issue 23 - October 2014
Let’s Talk Business
2
Exactly What Is The Definition of Small Business In Australia?
Just what is a small business?
We currently have a range of definitions
by a range of government agencies and
banks.
There are probably over 20 different
definitions of small business.
For example, the Australian Securities
and Investment Commission (ASIC)
regulates many businesses that are
'small proprietary companies', which
means a company with two out of these
three characteristics:
an annual revenue of less than $25
million
fewer than 50 employees at the end
of the financial year, and
consolidated gross assets of less
than $12.5 million at the end of the
financial year.
The Australian Taxation Office defines
a small business as one that has annual
revenue turnover (excluding GST) of
less than $2 million.
Fair Work Australia defines a small
business as one that has less than 15
employees.
Despite these differences, many
regulators have informally adopted the
definition of ‘small business’ used by
the Australian Bureau of Statistics
(ABS), which is a business that employs
fewer than 20 people.
Conversely, on the other side of the
world, the United States Small Business
Administration (SBA) defines a small
business concern as one that is
independently owned and operated, is
organized for profit, and is not dominant
in its field.
Depending on the industry, size
standard eligibility is based on the
average number of employees for the
preceding twelve months or on sales
volume averaged over a three-year
period.
So, why do we need a better definition
in Australia?
Firstly we need a definition that picks up
on the fact that we are people.
That will help regulators and policy
designers do a better job. We must
remember that when it comes to small
business the Process must not defeat the
Purpose of the Policy - otherwise the
aim of the policy will fail.
Currently all political parties and indeed
much of the bureaucracy are focused on
small business like never before.
But whenever some new support or a
new process is developed we find that
due to the definition of small business
that most of the target group is often
missed.
For example the recently announced,
and then unannounced, tax cuts for
businesses only applied to incorporated
businesses.
There are some 2.5 million small
businesses in Australia and only around
700,000 are incorporated, so most miss
out.
Also of the 700,000 that are
incorporated most do not use the
company structure for taxation purposes;
they use it more for protection or for
family ownership purposes.
Only about 300,000 small businesses
actually used the company structure for
taxation purposes.
We know that governments want to give
small business people a break and
therefore we also need to get a better
definition in place, particularly for
taxation purposes.
The Council of Small Business of
Australia (COSBOA) and the Tax
Institute recently held a round table on
“Can We Better Define Small
Business”. This was attended by senior
executives from Treasury, the
Department of Prime Minister and
Cabinet, The Australian Taxation Office
and the Department of Innovation.
The round table also included
representatives from Cabinet Ministers’
offices including the Treasurer and
Assistant Treasurer and the Minister for
Small Business.
The Small Business Commissioner from
NSW attended, Sensis was there as were
the banks and the Institute of Public
Accountants among others. The
economics adviser to The Greens also
attended.
The meeting was addressed by the
Assistant Treasurer, David Bradbury,
the shadow Minister for Small Business
Bruce Billson and the Independent Rob
Oakeshott.
This is an impressive list and shows that
this issue is not an ideological issue that
divides parties and politics. It is
something that we all want resolved.
The discussion centred around why we
need a better definition and whether it is
possible to have one definition for all
purposes.
The development of one definition
maybe possible but would prove very
difficult. It is certainly something that
Geoff Fader, a Director and ex
Chairman of COSBOA and Chairman
of the Tasmanian Small Business
Council sees as a worthy target.
But in between time we definitely need
a better definition for the purposes of
giving small business people a tax
break. COSBOA, and others, are on the
job to achieve that as soon as possible.
Let’s Talk Business
3
How do you get people to bring their
brains to work and not leave them in a
paper back at the door?
There has been lots written about the
subject and business owners and
managers are still frustrated by
employee who don't display initiative at
work.
Most businesses are locked into a 20th
century mindset based upon stability
and predictability. And this kind of
thinking inhibits innovation and
continuous improvement.
Business owners and managers put in
place set processes and procedures and
expect employees to follow these to the
letter. The rationalisation for these
systems is that they are the best way to
accomplish work-related tasks. People are
then rewarded for following standard
practice and often criticised or even
punished for not doing so.
Under these constrains it is very hard to
promote a frame-of-mind which is based
on innovation and continuous
improvement.
Another reason for this vacuum in ideas is
that we are still largely operating on the
old 'them and us' employment
relationship. Managers do the thinking
and workers do the work. Under this
psychological contract, employees believe
that their manager is paid to think.
And traditional managers may also
believe this too and therefore show little
interest in their employee's ideas.
At any rate, the best way to break this
cycle is for business owners and managers
to ask employees direct questions around
innovation and continuous improvement.
Asking a general question such as: "Have
you got any suggestions for how we can
improve?" is unlikely to elicit anything
profound.
The key is to ask specific questions in a
timely manner about a specific task at
work. And it helps to do this one-on-one.
For example, a better question may be:
"How would you go about improving the
poor communication between our team
and administration; I am interested in
your ideas?"
Here are some areas that may assist in
focusing the innovation and continuous
improvement conversation:
Improving quality
Reducing time
Reducing costs
Increasing output
Increasing safety
Meeting deadlines
Enhancing interpersonal
cooperation
Streamlining systems &
processes
The other advice I would offer is
this: Don't do this once or twice. Do
this all the time.
In fact if every manager and
supervisor ought to have a five to
10 minute conversation twice a year
with their direct reports, I have no
doubt that people would start
coming up with suggestions on a
range of matters.
Some of them will undoubtedly be
too costly or impractical. But some
would also be worth considering.
Start with the routine tasks and
processes. After all, the regular
activities are likely to consume the
most time. Improvements in these
areas will consequently reap the
greatest benefit.
This is the approach I am
advocating in my book: The End of
the Performance Review: A New
Approach to Managing Employee
Performance.
www.winnersatwork.com.au
Dr Tim Baker
Managing Director
WINNERS AT WORK Pty Ltd
www.winnersatwork.com.au
www.about.me/tim.baker
Telephone. +61 7 3899 8881
The Continuously Improving Business
Editor’s Note:
Dr. Tim Baker is an international consultant, successful author, keynote speaker, master trainer, executive coach, university lecturer and skilful facilitator.
In a nutshell, he has conducted over 2,430 seminars, workshops and keynote addresses to over 45,000 people in 11 countries across 21 industry groups.
"“Dr Baker leads the world in
offering an innovative new approach
to appraising employee performance.
His research and energy in the
specialised field of performance
management is evidenced by his
international profile as a renowned
speaker, management consultant and
facilitator".
Stephen Hartley, Australia’s
leading expert on project
management and author of
"Project Management: Principles,
Processes and Practices.
Let’s Talk Business
4
The Bankrupt
Three businessmen
were having dinner
at a club. When it
came time to pay the
check, each grabbed for it.
"It's a business expense," said one.
"I'll pay," said the second. "I'm on
cost plus."
"Let me have it, "argued the third.
"I'm filing for bankruptcy next week
The Tax Office
A businessman, on
his deathbed, called
his friend and said,
"Bill, I want you to
promise me that
when I die, you will have my remains
cremated."
"And what," his friend asked, "do
you want me to do with your ashes?"
The businessman said, "Just put them
in an envelope and mail them to the
Tax Office. Write on the envelope,
'Now, you have everything.'"
Smart Woman
Two women
were comparing
notes on the
difficulties of
running a small business.
"I started a new practice last year,"
the first one said. "I insist that each
of my employees take at least a week
off every three months."
"Why in the world would you do
that?" the other asked.
She responded, "It's the best way I
can learn which ones I can do
without."
(I could do with 100 of these - daily)
HUMOUROUS
BUSINESS CARDS
HEY!!!
YOU SUCK AT PARKING
I MEAN REALLY?
LEARN HOW TO PARK
IDIOT …..
This card certifies that you had
an encounter with me and found
me funny, polite, warm, friendly
and intelligent.
(Your Name Goes Here)
THANK YOU! FOR PROVIDING SUCH TERRIBLE SERVICE
HERE’S A TIP FOR YOU
FIND A DIFFERENT JOB
WHERE PEOPLE DON’T DEPEND ON YOU
LIKE POLITICS
(Your Name Goes Here)
HUMOUROUS SIGNS
Let’s Talk Business
5
Are You a Creative Leader or a Manager?
Dennis Chiron Marketing Means Business
0451 184 599 www.marketingmeansbusiness.com
[email protected] Skype: dennis.chiron2
One of the essential ingredients of high performing individuals, teams and organisations is creativity
(Basadur,2004).
But before we discuss why creative leadership is so crucial in today’s society, we need to understand the difference between two closely related things: Creativity and
Innovation.
Mark Batey, Manchester Business School says: “Creativity is the capacity to come up with ideas for solving problems and exploiting
opportunities.
Innovation is the ability to turn those creative ideas into new products and services. To put it another way: creativity is inspiration; innovation is
perspiration.”
In that case, a creative leader is someone within an organisation who is capable of producing the conditions that enable those in their
team to generate creative ideas.
These ideas will help the
organisation to move forward.
Creative people push the boundaries; they seek new ways of seeing, interpreting, understanding
and questioning.
They can accept the ambiguity of contradiction and uncertainty. They can tolerate disorder and
unpredictability.
In fact, they thrive in circumstances which others might see as chaotic and disorderly (Montuori & Purser,
1999).
Creativity and Creative Leadership is probably one of the most important (but sadly lacking) leadership qualities needed in this
decade, if not this century.
Creative leaders are not just born that way, and they just don’t have very strong personalities if they are to lead successful
organizations.
They must profoundly understand and know human behaviour, and, most importantly, understand who they are and what motivates them to success and what
can cause their failures.
Creative leadership is built on the idea that everyone at every level in the organization is a leader; that leaders must know themselves, alert to their failings and graces, to better serve the organization; and that only by mastering complexity – both human and organizational – will leaders be able to
achieve alignment. (Doug Guthrie, 2012)
Whether you are the CEO of a large organisation; the leader of a team or division within such an organisation; or the founder of a small company, creative leadership is critical to your innovation
success.
Innovation is the result of successfully
implementing creative ideas.
Moreover, the process from idea to implementation, of a breakthrough innovation, requires a great deal of creativity. And to achieve this, you need
creative leadership.
Jeffrey Paul Baumgartner believes: “It is not about your creativity. It is about
your team’s creativity”
Creative leadership has very little to do with your creativity and everything to do with your team’s creativity. If it was only about your creativity, you wouldn’t need
a team would you?
You are only one person. Your team (which might be your entire company) is many people. Tapping into the cumulative creativity of 10 or 100 or 1000 people will clearly result in better results than tapping into the creativity of
one person, no matter how creative
you are, and ignoring everyone else.
What Makes a Creative Leader?
Creative leaders love challenges that test their limits. They also do not fear the fact that they don’t know something, and they see setbacks as just that - opportunities for personal
growth.
Creative leadership today, is a priority in these increasingly complex and unpredictable times.
To be a leader today you require a totally different attitude and mentality and different mind-set. But, unfortunately, our education system has not taught us how to think
“outside the box”.
Drawing from his experience, Dr Kalam articulated eight key tenets of creative leadership that are critical for driving innovation and growth in the emerging global knowledge
economy:
1. The leader must have a vision for
the organization
2. The leader must have the passion to transform that vision into
action
3. The leader must be able to travel
into an unexplored path
4. The leader must know how to
manage both success and failure
5. The leader must have the courage
to make decisions
6. The leader should have nobility
in management
7. Every action of the leader should
be transparent
8. The leader must work with integrity and succeed with
integrity
Let’s Talk Business
6
A couple of major complaints I
regularly hear from business owners
are that although sales are going up
they aren’t making any more
money, or that their accountant tells
them they’ve made a profit but they
can’t find it. Let’s see if I can help
explain it:
Everyone knows the value of a
sponge: it absorbs water. This can
be useful in all sorts of contexts.
Well, your company’s balance sheet
is also like a sponge – except that it
soaks up cash, rather than water.
This can be far less useful and not
necessarily a good financial deal.
As the sponge nears its capacity to
absorb additional water, it becomes
far less efficient. The same thing
happens with your balance sheet
and the phenomenon has two basic
causes.
Increasing sales – or growth –
creates a need for additional money
to finance an additional level of
assets including inventory or in
service businesses, work-in-
progress (WIP) etc. For most
businesses the main source of this
additional finance is from creditors
– in other words, debt. Risk (in the
form of increased debt) increases
accordingly, and increasing interest
expenses may even put downward
pressure on profits.
Furthermore, growth in sales is
often accompanied by a decrease in
the efficiency of the operation. This
inefficiency really surfaces in the
balance sheet as proportionally
more assets are required to support
new sales levels. In other words,
the rate of asset growth increases
faster than sales; you make the
same percent of profit – but you
make it less efficiently.
So, what do you do? The clear
message is quite straight forward:
Manage better. A few ways this can
be done are listed below:
Manage current assets (Inventory,
Debtors) more efficiently. Unless
you’re in the finance industry,
don’t let your customers use you
as a bank. You’re much cheaper
than theirs as you probably don’t
charge fees and interest.
Restructure debt (long-term, not
short-term). The Golden Rule of
borrowing is to match the term of
the loan to the life of the asset.
Make more profit
Sell existing unproductive assets.
Whenever you buy something,
chances are you should be selling
something.
Curtail expansion and manage
growth
Lease fixed assets rather than
buying
Implement sale-leaseback of
existing fixed assets
Don’t grow (use pricing, etc. to
limit growth)
Get a new equity source – a
passive investor or active partner
This checklist represents the action
steps necessary to manage growth
effectively; you need to arrive at the
particular combination of
components that will work for you
(remember; when it comes to the
balance sheet, doing ‘nothing’ is
usually the worst possible decision).
By earning the same level of profits
more efficiently, sufficient cash is
‘squeezed out’ of the balance sheet to
significantly reduce borrowing
requirements.
Keep in mind that there are three
fundamental parameters in evaluating
the growth capabilities of expanding
companies:
1. How efficient is the company
now?
2. The financial requirements of the
company; that is, what new assets
will be needed? And
3. The owner’s abilities as an asset
manager – strong or weak?
Growth is reflected on the profit and
loss statement as increases in sales and
(hopefully) profits. The ‘cost of
growth’ is generally reflected on the
balance sheet in the form of increased
debt to offset decreased inefficiency.
These are controllable issues.
The sponge analogy? Well, efficiency
translates to squeezing your balance
sheet to free up the funds you need to
grow; otherwise, you’ll find it
squeezing you.
Geoff Butler FAIM AP, MAITD MACE
Principal/Business Improvement & Implementation Specialist
Business Optimizers
Mobile: 0414 943072
Fax: 3036 6131
Email: [email protected]
Skype: business.optimizers1
Squeeze Out Your Balance
Sheet to Improve Cash Flow
Let’s Talk Business
7
“7 Reasons Why NOT to Have a
Business Partner, Coach or Mentor”
This is a tongue-in cheek-rant.
It’s been written with people in
business in mind, however it could
apply to many areas in life, such as
sports, personal development and
more.
I hope you enjoy it and would
appreciate any feedback or comments
If you have had the pain of having a
Business Partner, Coach or Mentor
involved in your business affairs, I’m
sure you will relate to this rant!
1. You’re constantly wondering about
things like “Is my activity being
productive” or “What actual results
am I aiming to get, currently getting
and did I finish up with?” It can be
really annoying to be constantly
thinking about whether or not you're
wasting time!
2. They’re always, constantly, never-
endingly asking for a score of some
sort! Like a Profit & Loss, or a Cash
-flow Forecast, or the number of
inquiries that converted into sales.
JEESH! Although these things don’t
take long to tally up (once they’re
set-up), it still forces you to look at
“The BIG Picture” (in whiny
groaning voice).
3. It makes it really hard to distract
these people with personal
emotional stuff. It was much easier
to divert attention from the real
issue (especially my spouse) when I
could use emotional excuses like “I
know I should have, but Johnny was
on school holidays”.
It’s annoying not being able to cloud
the real issue with personal life
stuff!
4. Then there’s the cost! If you don’t
do what you said you’ll do, you still
have to pay for their time! It makes
much more sense to just not have
that accountability at all and the
added bonus is there’s one less bill
to pay. It’s pretty simple really. Just
work more hours IN the business
to reduce the wages bill.
Duh!
5. They never seem to let the small
stuff go! Like insurance,
intellectual property protection,
putting money aside to pay an
upcoming tax bill, etc, etc, etc.
It’s like they have this list that
they never forget and keep
bringing your attention to until
you do it! Seriously, it can bug
the heck out of you!
6. When you have a bad day, the
WORST of the bunch seem to
have this 'Jedi Mind Trick'. They
just let you get it all out and then
when you're finished they ask for
a positive way to solve the
problem! Now, that might seem
to make sense, BUT the problems
give you something to stress
about and this in turn makes you
feel like you’re doing something.
So it may seem like they’re being
helpful but it makes it really,
really hard to have a pity-party!
7. They can give you different
options and ideas from their way
of life, personal experiences and
network of connections. This
makes you think outside your box
which sucks because it feels so
good to be the smartest person in
your business.
Do you seriously have to ‘open
your mind’ (in over-exaggerated
whiny voice).
Rant over.
Dan Buzer
Profit Mechanics
0414 567 188
www.profitmechanics.net/ [email protected]
Editor’s Note:
Dan Buzer is Co-founder of Profit
Mechanics
Was mentored by BRWRich list
regular Mr Cyril Maloney,
who has a net worth of over
$330 million.
One company Dan worked
with grew from 6 outlets and
$4.2 million dollars turnover
to 36 outlets and $25,000,000
turnover in 7 years.
Has owned several businesses,
including an Australian based
franchise operating in 16
countries. Out of 44 stores one
of Dan’s was number 1 in the
country from its first month! It
consistently sold 1,000% more
of its lead product than the
franchise group average.
Has acquired businesses for
free that were listed on the
market ranging
between$200,000 and
$800,000. This includes a
majority share-holding in a
national pet food
distributorship with 17
licensed distributors operating
for over 25 years.
Let’s Talk Business
8
Here is the final instalment of “6
things that Google looks for in a
website”.
7. Regular Updates
Gone are the days of just building a
website and leaving it. Google is
smart enough to compare the
recentness of information and
consider the best for ranking.
Google calls this the “Freshness
Factor.” The more often you update
your website = Google will revisit
your website more often. Then you
don’t have to wait as long for
subsequent updates to be considered.
8. Links FROM your site
Links between the pages within your
website are important. For example,
a website menu. This is why one-
page-websites are not as popular –
they have no other pages to link to.
To further increase the number, and
power of links within your website,
add links throughout your wording
E.g. link the works, “click here for
more information about mechanical
repairs” to another page on your
website about Mechanical Repairs.
Google will assume that this linked-
to page is about Mechanical Repairs.
Now, if your wording on this linked-
to page matches this assumption, it
can prove a very powerful link.
Now “links from your site”, also includes
links to external websites.
“By definition of internet ‘interconnected
network of networked computers’… thus
without external links, you basically are
telling Google that "the link to follow
stops with your website."
Source: http://www.rankya.com/seo/do-
external-links-affect-seo.html
By linking to other websites (obviously
avoid linking to your competition & only
link to sites related to search phrases you
want to rank better for), you are helping
Google with giving them more websites
to visit. This is how Google is so
efficient at reviewing so many websites.
It basically jumps from site to site as a
result of interlinked websites. Give
Google great quality links to jump off to!
9. Sitemap
This is a list of the pages within your
website. It, again, makes life easier for
the search engines to determine how
many pages exist within your website.
Your sitemap link does not need to
appear on your website. It can just sit in
the background. Once set-up, submit this
to Google to speed up the ranking
process.
10. Google Map Listing
It is FREE, you need a physical location
and you will receive a text/phone call/
postcard with a PIN to verify this listing/
account. Only create one Google
account! Google preferences their map
listings in most search results. They
usually sit at the top, just under the
coloured paid ads.
11. Links from Social Media
There is no real evidence that Google
does or doesn’t count links from social
media. Google claims that they don’t
at this time, however…Google does
consider the amount of traffic it
generates to your website. Linking
from your Facebook, Twitter,
LinkedIn and other social media via
posts etc. is a great way of
encouraging traffic to your site. If
Google identifies lots of traffic, it will
assume that your website must be
popular and important. And it is
Google’s job and soul purpose in life
to only rank popular and important
websites.
12. Links from other websites
Increasing the number of quality links
to a website can further convince
Google that your site is popular and
important. Commonly called “Link
Building,” many Search Engine
Optimisers focus on creating quality
links on online business directories,
other websites, forums and blogs with
the soul aim of increasing your
websites “Link popularity”.
You can do this yourself and for free.
Just find great quality directories as a
start.
For further information, please feel
free to email Karen ~ The Webgirl.
Karen Ahl
Bac. Bus (Mark, Man), TAE40110, Cert IV IT
Caboolture, Queensland
Ph 0415 142 178
www.web-sta.com.au
6 more things that Google looks for in a website
Let’s Talk Business
9
Tony Osmani C.E.O.
Tell : 1300 421 914,
Mob: 0411 09 5539 Your WHS Obligations -
Keeping Records
In every workplace you are required to identify and keep records. The records that you are required to keep will be
determined by your job tasks. Company policy would have commonly used records such as physical records, preparing
and personal, WHS and basic financial transactions,
In businesses, in the rural and regional sectors of Australia, the industry sectors can be quite varied. However the record
keeping and administration requirements have many common factors related to the: types of records
legislative requirements
ethical standards
technology and equipment used Both the physical and financial records of the business are vital for planning purposes, meeting legislative requirements and
the efficient operation of the business on a daily basis.
The following table is a guide for the common factors across these industries.
Let’s Talk Business
10
Jo-Anne Chaplin
Tax & Superannuation Professionals Pty Ltd
PH 07 3410 8116 / Mobile 0457 960 566
Email : [email protected]
Web: www.taxandsuperprofessionals.com.au
I am a qualified Accountant and will celebrate my 20th anniversary as a
Registered Tax Agent this year. During my time in Public Practice I have
assisted clients to achieve business growth and prosperity. My earlier career
included positions in banking, manufacturing, construction and retail. My
particular interest is in promoting a culture of using local industries and
business in order to build a strong community.
Some interesting data crossed my
desk last week. During an update
from the ACCC, they advised that
there were 91,927 scams reported to
them in 2013, a figure that was up
10% on the previous year. Of these, a
reported amount of $89+ million
dollars was lost to scammers.
Broken down into ranges 33% lost
between $100 - $499, 10% lost
$10,000+ and there were 2 reports of
losses over $1million.
The majority of monies lost were by
scams relating to online shopping,
fake lotteries, false billing and
phishing & identity theft.
Further information from the
Australian Federal Police advises that
one of the latest targets are self
funded Retirees looking for
investments for their Self Managed
Superannuation Funds.
The pool of money held in Australian
SMSF’s is now so substantial it has
attracted organised crime who are
using sophisticated techniques to trap
Trustees into bogus investments.
These include elaborate websites, and
detailed information about the
investments being offered.
Are you a target? It is imperative that
you have procedures in place to
protect you and your business from
these types of fraudulent activity.
have finished using them
Control/ limit who has access to
your online data, company and
personal passwords
Dispose of your records by
shredding, burning or using a
quality assured records
destruction company.
Do not respond to emails or
telephone calls requesting your
banking details or passwords
Do not respond to unsolicited
phone calls from people
purporting to be from Microsoft,
or Apple and requesting access
to your computer.
When choosing investments always
make sure that the investment
provider holds an Australian
Financial Services Licence. The
Licence details can be checked on
the Australian Security and
Investments Commission website
www.asic.gov.au.
The most secure option when
investing or setting up your business
procedures and protocols is to use a
local service provider. Someone
whom you can sit in front of and
discuss at length your position,
ideas, and goals.
For more information on current
scams, you can sign up for alerts at
www.SCAMwatch.gov.au.
A simple procedure for business owners
to follow, and to teach all accounts staff
to follow is:
Before paying an account:
If you didn’t order the product/
service, find out who in your
business did;
If you can’t work out who placed the
order, ask the creditor for a copy of
the order. If they don’t send it, don’t
pay the invoice;
If you did place the order, check that
you’ve received the product/service,
and that you’re being charged the
right amount.
Online safety is also an issue, so to
safeguard your online presence, and
your data:
Always make sure that you virus
scanning programmes and firewalls
are up to date
Do not share passwords, or record
them. Change them often, and do
not save them to your computer
Always “logout” of secure websites
and close your browser when you
STAY ALERT
TO SCAMS!
Let’s Talk Business
11
Should I Consider Refinancing? Some people will refinance a loan for a many reasons. Obviously, to access a cheaper interest rate. With all the competition in the market at the moment it really does pay to shop around. I suggest doing a check over your loan every once or two years, at least every five, just to make sure that it does remain suitable for you and your changing circumstances. That's something we can help you with. We offer a complimentary review of your loan and we work with you to make sure that it is suitable and compare others in the market to see if there is a better deal for you. Other reasons people refinance are debt consolidation. You might like to consolidate all of your loans into one at a lower interest rate so you only have to worry about one repayment each month. Renovations. These days a lot of people are choosing to modify their existing home or business rather than selling and buying a new one. By releasing some of the equity that builds up over the years, they can quickly and easily access the money they need to complete their renovations. One of the other most common reasons people refinance is for investment. This might be to unlock the equity in your property for the purpose of buying shares, manage funds or even another property. There are so many different scenarios that I get asked about. We will work with you to find the best lending solution for your needs. The
benefits of refinance can be huge. You can save thousands just by accessing a cheaper interest rate. Lenders can be a bit cheeky, too. They pass on the cheaper insurance rates to their new customers, but they don't always pass it on to their existing customers. It really does pay to review your loan and take advantage of the competition in the market. It's so easy to switch between lenders these days. If you're not satisfied for whatever reason, don't be afraid to ask us for help.
When Do You Want To Retire? As a result of recent proposals in the Australian Federal Budget, many Australians will not be able to receive the age pension until age 70! So it's important that we start to plan ahead, and we have to act now so we can decide when we want to retire and not when the government wants us to retire. The scary thing is that this is not the first time that the age pension has been raised. During the recent Labour-run years the age pension was changed from 65 to 67. Now, the age pension has risen again from 67 to 70. Who knows what the next changes will be or what the Government will do. It is clear that the Government is telling us that the age pension is not set in stone, and therefore they may increase the age again or even decrease the amount that is received from the pension by changing the rules of the asset and income test (which they have already started to amend). So the choice is yours; you can either have the freedom to retire or the Government can have control over it.
How do you become self-funded and how much do you need to save? The best way to avoid the age pension changes is to start to save now for retirement. We all know that we eventually have to start putting extra money into our superannuation, but most of us don’t know how or how much. Let’s take the example of a 45 year old man on an average wage of $75,000 a year. If he retires at 70, he will need $357,000 in super for a comfortable retirement income2. But if he retires seven years earlier at 63, he'll need $482,000 in super - $125,000 more. The good news is that it could be easier than you think to close the gap. Assuming the same 45 year old currently has $100,000 in super, he could reach his target of retiring comfortably at 63 by salary sacrificing just $65 a week into super . We need to view each situation differently and that is why advice around retirement is so important. You can choose to take the slow and steady route to retirement by planning well before you have chosen your retirement date, or you just might not have enough money to retire with and will be forced to work till 70. The choice is yours. Get in touch with us so we can help you plan for a better tomorrow for you and your family.
For confidential advice contact us or
call us on 1300 733 237.
Christopher Mobbs
Managing Director and Senior Financial Planner
Comprehensive Financial Solutions
1300 733 237
www.comprehensivefinancial.com.au
Some General Financial Tips for Small Business Owners
Let’s Talk Business
12
Peter Nicol
Wisdom Marketing & Management Services
0417627097
www.wisdommarketing.com.au
Is This Divine Intervention? This is a "“oncer” as they say.
It just happened only a few weeks ago
and to tell the story I have to set the
scene.
I was in Florence on week three of a
six week holiday in Italy. It had been a
tiring day and my partner and I decided
to get a coffee at McDonalds.
They serve reasonably priced good
food and after 3 weeks on the road a
few chips and a Big Mac held a lot of
appeal.
The place was packed!
A young woman in her thirties
struggled into the seats beside us. She
was loaded up with bags and I helped
her get settled. People with bags are
commonplace on journeys like ours.
We started to chat and I asked where
she hailed from. It was Ireland. She
said she was in Florence for the day
working and was grabbing a quick
snack before heading back to Rome
where she lived with her husband.
I asked what she did for a living. I was
a little taken aback with the answer. “I
was here to do the makeup for the
bride and bridesmaids for a wedding
that is taking place right now.”
“Wow” I said “all that way you must
be pretty good at it to get customers so
far from home (Rome)”.
“I have been doing it for about 4 years
now and the business has simply
grown and grown since I started.
My husband is Italian and when I
came here I could not speak a word of
Italian. I was a qualified hairdresser
and had skills with makeup.”
“So how did you kick it off I asked?”
This is the purpose of the story.
She said that she knew there were a lot
of Irish priests in Rome. So she went
and visited them all and told them she
would appreciate it they could help.
She told them she could do wedding
makeup and if any brides came their
way she would be grateful for any
referrals.
From there her business has grown and
grown.
What a great story. New country, no
idea of the language, and she sets up a
new business.
Australia has stories like these a
million times over with our
migrant population seeing
opportunity everywhere.
Sometimes circumstances make us
think hard as to how make ends
meet.
No, we did not share emails or
phone numbers. I thanked her for
sharing her wonderful story with
us. I told her I was a small
business specialist and to her
credit she said can you give me
any tips?
My answer was simple “you are
right on the money.”
Just a passing moment in life and I
learned a lot from this delightful
and clever person.
Just ask yourself are you doing all
you can to market and grow your
enterprise? Sure it is hard work but
the coming times will be tough on
business so it is time to get “down
and dirty” and start working the
territory and getting real sales
plans in place.
Not sure if your local parish priest
can help but hey who knows?
The trip to Italy is now over and I
am back at the office knowing that
if I am to go away again I have to
keep working my market.
Cheers Peter
Let’s Talk Business
13
What Makes You Different?
Why should customers buy from
you and not from someone else?
What does your attitude and actions
say to your customers?
Do you make your customers feel
welcome and wanted? What lasting
impressions will your customers
have from purchasing your products
or using your services?
Make the experience for your
customer a memorable one and let
them remember your for your
superior customer service.
Quality Customer Service
Every day each of us receives or
provides customer service and
everyone has a story about a
favourite retail shop, restaurant,
dry cleaner, hotel, etc. Why do
certain businesses earn your long-
term support and word-of-mouth
recommendations?
Because they exceed your
expectations. They treat you with
respect and make you feel as though
you are an important part of their
business.
As a business operator, your focus
must always be the customer. You
exist to provide service and
satisfaction and meet the needs of
your customers.
Stay Flexible
You must be flexible when it comes
to your customers and clients.
This means doing a project for a
client in a pinch, having an early
morning meeting even if you like to
sleep in, and meeting on Saturday
even if you usually reserve your
weekends for yourself.
Make up for that pricing by
increasing your margins on non-
price sensitive items.
For example, a small bookstore can
offer best sellers at a discount
similar to the large chains, but may
be able to charge list price back
catalog books and premium prices
for book-oriented gift packages.
Customer Loyalty is the
Foundation for Success
What is Customer Loyalty? There
are many schools of thought on
exactly what this means.
However, the most simplistic and
accurate interpretation I think is:
Customer Loyalty is giving people a
reason to not only shop at your
place of business, but also wanting
to come back.
They would prefer to come back to
you rather than going to your
competition or going online and
spending their money at some
company that offers cheap, ‘crazy’
deals.
Customer Loyalty is when people
go out of their way to patronize
small companies because they know
and like the people there and enjoy
the service they receive and the
overall shopping experience.
Of course, you also have to offer
good, quality products and great
service at reasonable prices, but
what you are able to achieve is
“Relationships” with your
customers and a solid reputation and
credibility in your community.
Flexibility can also mean getting
information for your client, even
though it may not be in your area of
expertise.
Say, for example, you're catering a
wedding and your client needs
information on Irish wedding
customs. It's just as easy to make a
call to your local library and fax the
information to your client as it is to
say "I don't know anything about
that." And making that extra effort
will ultimately pay off with a very
satisfied customer.
Don’t Compete On Price
Perhaps the biggest mistake small
merchants make when faced with
competition from national discounters
is to slash prices to attract customers.
A more sound approach is to look for
ways to differentiate your prices
based on added features, warranties,
service, or other value packages.
For example, a local appliance dealer
whose price on dishwashers is higher
than the price at a national chain may
justify the difference as a “value
package”.
The small dealer may include special
services such as free delivery,
discounted installation, a supply of
detergent, or a book on cleaning tips.
Keep price sensitive items in line.
While you generally cannot compete
solely on price, there may be
occasions when you will want your
prices to be in line with the going rate
at the large retailers, particularly
around price-sensitive items heavily
advertised by the large companies.
Consider keeping your prices on these
goods close to those of the larger
competitors so as not to alienate
knowledgeable customers.
Dennis Chiron Marketing Means Business
0451 184 599 www.marketingmeansbusiness.com
[email protected] Skype: dennis.chiron2
Let’s Talk Business
14
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