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

tim@winnersatwork.com.au

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

dennis@marketingmeansbusiness.net.au 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: geoff@businessoptimizers.com.au

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/ dan@profitmechanics.net

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 : taxandsuperprofessionals@gmail.com

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

solutions@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

manager@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

dennis@marketingmeansbusiness.net.au Skype: dennis.chiron2

Let’s Talk Business

14

“Let’s Talk Business” Small Business Publication

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PUBLISHER: Marketing Means Business

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We welcome contributions,

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Please address correspondence to:

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You are welcome to re-produce

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please quote the source as “Let’s

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