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Let’s Talk Business
1
Let’s Talk Business Back To Basics Business Solutions - Support for Small Business
Volume 2 Issue 18 - May2014
Inside this issue
Cover Story - The Federal Budget …............…..........2
The Eight Values of an
Employer of Choice
Dr Tim Baker ……...........…3
Biz Snippets …………….......4
Considering Exporting?
Dennis Chiron .......... ...........5
The Importance of
Maintaining Composure
Geoff Butler ………………..6
Investing in Rental Properties
Jo-Anne Chaplin ………......7
“…. The Smartest Person in
Your Business ....”
Dan Buzer ………………….8
Facebook Strategy
Karen Ahl ……..…………...9
Objections are the Lifeblood
of Sales
Peter Nicol ………………..10
Use of Machinery
Ron Court …..…….….…...11
Key Risks You Must Consider
Before Moving to the Cloud –
Part 1
Karen Davey-Thorpe …....12
EOFY Financial Tips 2013 -
14
Paul Gillmore ….................13
Creative Leadership ……....14
LTB Objectives …..........…15
How Much Has The Federal Budget Impacted on Small Business?
Let’s Talk Business
2
The Federal Budget and Small Business
What’s in the Budget for small
business? It seems that there’s not
much at all, And the onus is on
business owners to take advantage
now of incentives set to disappear at
the end of the tax year, or so the
Sydney Morning Herald seems to
suggest.
However, this budget isn't as bad as
Labor appears to be claiming and the
Liberal heartland will privately think.
It's undoubtedly the toughest budget
since John Howard's post-election
budget in 1996, but it's hardly
austerity economics, says Ross
Gittens, the Sydney Morning
Herald’s Economic Editor.
But, this budget is Abbott's admission
that his claim to be able to balance
the budget without increasing taxes
was no more than wishful thinking.
The Liberal heartland, however,
schooled for years to give its
selfishness free rein, is having trouble
facing this reality.
An unprecedented $80 billion cut to
health and education spending over
the next decade leads a list of tough
savings measures affecting age
pensioners, seniors concession card
holders, family payments and people
on the disability support pension in
the Abbott government's first
budget…. States Mark Kenny, Chief
Political Correspondent with
Business Day.
Larissa Ham of The Age points out
that the Federal Budget has some
winners and losers. But a budget
deficit of $19.4 billion was always
going to mean that there would be
little or no good news for small business
owners, despite Treasurer Wayne
Swan’s emphasis on job creation.
In truth, small business will be left
wanting from the lack of any significant
measures designed to make doing
business easier, reduce costs, improve
education, skills and training, or support
business and consumer confidence.
Almost everything had been
regurgitated as part of the government’s
plans to “support business to innovate,”
as most measures had already been
announced, including the $500 million
investment in Industry Innovation
Precincts and the $1 billion “Plan for
Australian Jobs”
These measures were put forward as
“part of our plan to support and create
jobs, building on our loss carry-back
and instant asset write-off reforms for 3
million small businesses” not yet
legislated from last year’s budget.
Peter Strong, executive director of
peak body The Council of Small
Business Australia says while no one
likes to pay more, many of the proposed
changes are “not unreasonable” given
the austere nature of the budget.
“I don’t view it negatively at all. What
does annoy me is the negative talk from
the government – there’s no need to talk
things down,” says Strong.
Those in the business of freight (for
example) such as transport companies –
have already copped a blow with the
announcement of a rise in the fuel
excise rate, which has been locked at
38.1 cents a litre since 2001.
The Federal government is expected to
increase the fuel excise in line with
inflation twice a year, which will fund
$80 billion of new roads. Treasury Joe
Hockey says the massive
infrastructure exercise will in turn
create tens of thousands of new jobs.
But the jump at the petrol pump will
also hurt many businesses – either
directly or as a flow-on effect to
customers, says Pitcher Partners’
partner Theo Sakell.
During the election campaign, the
Coalition announced that the company
tax rate will drop from 30 per cent to
28.5 per cent from July 1 next
year. However, a 1.5 per cent levy will
be applied to taxable income
exceeding $5 million.
Sakell says the reduction means small
enterprises will have more money to
reinvest in their own business growth.
Small businesses should also be aware
of a number of tax deductions that will
disappear or reduce at the end of this
financial year.
The NAB’s View is:
Overall, the Budget is moderately
positive for SMEs. The creation of a
Single Ombudsman should ensure
easier Government access for SMEs,
reducing red tape. Further, reductions
in the company tax rate should lead to
higher profitability for some SMEs, as
they will largely be spared from the
Paid Parental Leave levy, which will
impact larger businesses.
Let’s Talk Business
3
Every organization these days - big or
small - wants to become an employer of
choice. Many claim they are and in
reality few can be considered as such.
In today’s skills' short marketplace,
many employers are adopting an
employer of choice strategy, offering a
variety of employee benefits in an
attempt to attract and retain quality staff.
A lot of these companies are doing this
in a superficial way. It is often more
about image than substance. The
majority of today’s employees are not
influenced by employers’ shallow claims
of being an employer of choice. It is not
as simple as offering prospective
employees trinkets.
In plain terms, employer of choice
means a business that is a great place to
work. If companies don’t genuinely act
to become an employer of choice then
good employees will simply vote with
their feet and move to a forward thinking
employer who offers them what they
want. Being an employer of choice is
more than marketing gimmickry.
The essence of becoming an employer of
choice is the quality of the employment
relationship, or psychological contract.
The traditional employment relationship
which has arguably been hugely
successful for over 200 years since the
Industrial Revolution is a hindrance in
climate of complexity, accelerated
change and uncertainty.
Employers of choice such as Google and
SAS have created a culture that is based
on a new employment relationship. It is
more collaborative and open than the old
'them and us' relationship we have all
witnessed and probably been - or are -
part of. This new employment
relationship is based on the changing
needs and interests of employees and
organisations.
My research has defined eight values
of this new relationship between
management and labour. The table
below summarises this relationship:
The New employment relationship
model
On the left-hand column are the eight
values. The middle column represents
the appropriate mindsets for
progressive employees and the right-
hand column represents the mindsets
of the business owner who is an
employers of choice.
The new employment relationship is
still based on a psychological contract.
But the mindsets are diametrically
opposite to the old them and us
relationship.
Business owners and managers
would do well to embed this new
thinking in their companies. Most
businesses are in flux between the
old and new employment
relationship.
Dr Tim Baker is the author of a new
book - Attracting and Retaining
Talent: Becoming and Employer of
Choice which will shortly be
published through Palgrave
Macmillan
(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 Eight Values of an
Employer of Choice
Let’s Talk Business
4
THE NEW FIRM
A young businessman
had just started his own
firm. He rented a
beautiful office and had it furnished
with antiques. Sitting there, he saw a
man come into the outer office.
Wishing to appear the hot shot, the
businessman picked up the phone
and started to pretend he had a big
deal working.
He threw huge figures around and
made giant commitments. Finally he
hung up and asked the visitor, “Can I
help you?”
The man said, “Yeah, I’ve come to
activate your phone lines.”
NEW SECRETARY
The boss was very
exasperated with his
new secretary. She
ignored the telephone
when it rang.
"You must answer that telephone,"
he told her irritably. "Okay," she
replied, "but it all seems so silly.
Nine times out of ten, it's for you!"
THE NEW BOSS
A company, feeling
it was time for a
shake-up, hires a
new CEO. This new boss is
determined to rid the company of all
slackers. On a tour of the facilities,
the CEO notices a guy leaning on a
wall. The room is full of workers and
he thinks this is his chance to show
everyone he means business!
The CEO walks up the guy and asks,
"And how much money do you make
a week?"
Undaunted, the young fellow looks at
him and replies, "I make $600 a
week. Why?" The CEO then hands
the guy $600 in cash and screams,
"Here's a week's pay, now GET OUT
and don't come back!"
Feeling pretty good about his first
firing, the CEO looks around the
room and asks, "Does anyone want to
tell me what that slacker did here?"
With a sheepish grin, one of the other
workers mutters, "He's the pizza
delivery guy."
Murphy's Law: If something can go
wrong, it likely will.
O'Toole's Rule: Murphy was an
optimist.
Advertising is the art of convincing
people to spend money they don't
have for something they don't need.
If advertisers spent the same amount
of money on improving their
products as they do on advertising
then they wouldn't have to advertise
them.
You've got to go out on a limb
sometimes because that's where the
fruit is.
When a politician is in opposition he
is an expert on the means to some
end; and when he is in office he is an
expert on the obstacles to it.
(1918) Will Chesterton
Seen at a Car Dealership: The best
way to get back on your feet: miss a
car payment.
On a Fence: Salesmen Welcome! Dog
Food Is Expensive!
On an Electrician's van: Let Us
Remove Your Shorts
In a Podiatrist's office: Time Wounds
All Heels.
-----------------------------------------
NOT YET
READY FOR
BUSINESS AT A
NEW STORE
Two businessmen were sitting down
for a break in their soon-to-be new
store. As yet, the store wasn't ready,
with no inventoried stock and only a
few shelves set up.
One said to the other, “I bet any minute
now some idiot tourist is going to walk
by, put his face to the window, and ask
what we’re selling.”
No sooner were the words out of his
mouth when, sure enough, a curious
tourist walked to the window, had a
peek, and in a thick accent asked
“What you sell?”
One of the men replied sarcastically,
“We're selling ass-holes.”
Without skipping a beat, the tourist
said, “You doing very well… only two
left!”
HUMEROUS SIGNS
QUOTES & QUIPS
Let’s Talk Business
5
Considering Exporting? Pricing Your Product for Export
Dennis Chiron Marketing Means Business
0451 184 599 www.marketingmeansbusiness.com
[email protected] Skype: dennis.chiron2
PRICING - How do you price your
product for export?
One way to find more customers is to
expand your geographic market you
are targeting. Have you considered
selling overseas? It can be an
excellent way to dramatically
increase sales.
Firstly, you know how to price your
product for the local market. Is it
priced to what the market will bear?
Is it calculated on a ‘cost plus’ basis?
Is it the cheapest, or is it the most
expensive? Does it provide good
value for money?
Whatever your pricing strategy, I’ll
bet that price is not your only
marketing advantage. Other features
of your product rank equally with, or
more prominently, than price!
Yet, local manufacturers seem to
have a real hang-up about price when
it comes to export markets.
Obviously, price is a significant
feature. However, for most
manufactured goods, price is not as
important as service, market support,
customer support, or value for
money.
Consider your own purchasing
decisions. How many purchases do
you make on price alone? Would you
import a product simply because it is
cheap?
If you did, would you expect it to be
high in quality? Probably not … Yet,
time and time again, we think that
overseas buyers will only purchase
our products if we supply them at
bargain basement prices.
That is a very common yet very serious
mistake.
I know that the low price mentality
permeates many sectors of our business
community, and even those branches of
government who attempt to assist
exporters.
It probably stems from the days when
bulk commodities were just about he
only goods we exported and the sole
competitive advantage they could have
was price.
BUT, in today’s sophisticated market
where Aussie manufacturers are trying
to sell high quality, world class products,
we need to draw the emphasis away
from price. We need to promote and
focus on other features of our products
and the advantages and benefits these
will have for our customers.
Looking rationally at the overall
Australian export scene, it is just about
impossible for us to compete on price.
Our cost structures are generally higher -
and sometimes much higher - than many
of our international competitors.
Wages; infrastructure; components;
general operating costs, are all
generally higher than our
international competitors. Not to
mention the fact that our geographic
isolation dictates higher
transportation / delivery costs.
Additionally, that fact that even our
largest factories are small by global
standards comparison, means we
cannot produce sufficient volumes of
products to satisfy demand for
cheaper goods.
So, why do we keep trying to sell
on price?
Now, please don’t misunderstand
my intended message …. I’m not
trying to paint a picture of doom and
gloom.
Australian products are very
competitive on world markets in
terms of innovation and quality.
Admittedly, we do, sometimes, have
a few “glitches” in terms of
consistency in quality and reliability
of supply, and perhaps these are the
real reasons why foreign importers
try to squeeze our prices. … and
maybe these are the areas on which
we need to focus our attention.
Let’s face it. In terms of
manufacturing goods, Australia is a
supplier to niche markets. So, low
quantity, high quality and high
prices are really ‘the order of the
day’.
It is possible, and it is - absolutely -
the most sensible strategy for us to
pursue.
www.efic.gov.au
Let’s Talk Business
6
With increased marketplace
demands and intensifying
competitive factors that surround
us, leaders must have greater
poise, agility and patience to
minimize the impact of
uncertainty. How leaders respond
to these and other growing
pressures is an indicator of their
leadership skills.
Composure is reflected in their
attitude, body language and
overall presence. In today’s ever
changing business environment, it
is clear that leadership is not only
about elevating the performance,
aptitude and development of
people – but more so about the
ability to make people feel safe
and secure.
Move up http://i.forbesimg.com t
Move down
Many times crisis results when
composure is missing.
During times of uncertainty and
adversity, crisis and change – you
must avoid showing any signs of
leadership immaturity or lack of
preparedness that will make your
team feel unsafe and insecure.
Here are seven ways to maintain
leadership composure during the
most pressure-packed moments:
1. Don’t Allow Your Emotions
to Get in the Way
Don’t wear their emotions on your
sleeve. Don’t yell or get overly
animated when times get tough.
When you allow your emotions to
get in the way, employees
interpret this as a sign you are not
being objective enough and too
passionate about the situation at
hand.
2. Don’t Take Things Personally
Leaders shouldn’t take things
personally when things don’t go their
way. Business decisions and
circumstances don’t always play out
logically. As a leader, remain calm
and don’t get defensive or think that
you always must justify your thinking
and actions.
When you begin to take things
personally, it’s difficult to maintain
your composure and make those
around you believe that you have
things under control.
3. Keep a Positive Mental Attitude
Employees are always watching their
leader’s actions, behaviour,
relationships and overall
demeanour. During the most
difficult of times, leaders must
maintain a positive mental attitude
and manage a narrative that keeps
their employees inspired and
hopeful.
Leaders set the tone for the
organization they serve. A positive
attitude can neutralize chaos and
allow a leader to course correct
through any negativity. Keep a
positive mental attitude and never
stop moving forward. Stay focused
on building positive momentum for
the betterment of the healthier whole.
4. Remain Fearless
When leaders project confidence,
they instill it in others. During
uncertain times, leaders must remain
fearless and project a cool persona
that communicates composure to
those they lead.
5. Respond Decisively
Leaders who maintain their
composure will never show any signs
of doubt. They speak with
conviction, confidence and authority
– whether they know the answer or
not! With their delivery alone, they
give their employees a sense that
everything is under control.
6. Take Accountability
Leaders are most composed during
times of crisis and change when they
are fully committed to resolving the
issue at hand. When you are
accountable, this means that you have
made the decision to assume
responsibility and take the required
steps to problem solve before the
situation gets out of hand.
7. Act Like You Have Been There
Before
Great leaders know that one of the
most effective ways to maintain
composure during difficult times is to
act like you have been there
before. Leaders that act as though
they have been through the problem
solving process numerous times
before are those with strong presence
who approach the matter at hand with
a sense of elegance and grace. They
are patient, they are active listeners,
and they will genuinely take a
compassionate approach to ease the
hardships that anyone else is
experiencing.
As the saying goes, “Keep Calm and
Carry On!
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
The Importance of
Maintaining Composure
Let’s Talk Business
7
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.
Investing in
Rental Properties
Owning a house or commercial
property which is let to tenants can be
a tax effective way of creating wealth.
The rental income received by you is
assessable income, and the associated
deductions of owning and
maintaining the property are
allowable deductions.
However, the prime purpose for
acquiring income producing property
is not about the tax deductions, but
rather about the capital gain that will
accrue.
When selecting a property you need
to thoroughly research the area, the
condition of the property, the local
occupancy rates and whether the
property will be suitable as a rental.
If you are looking at purchasing a unit
in a resort, then give consideration to
on-site management and the
outgoings that are associated with this
type of property.
It also important to be sure that the
property will be affordable. How
much extra will you be required to
contribute to the investment? Usually
the net rental income will not be
sufficient to meet the loan repayments
and the cost of rates, insurance and
other fees. You may need to apply
for a variation in your tax withheld by
your employer. This will provide you
with the extra cash flow during the
year to meet these expenses. A
variation should be carefully
calculated, as if the variation is too
low, there will be extra tax to pay on
lodgement of your income tax return.
Your Income Tax Return needs to include
the rental income, and set out below are
an example of the types of expenses you
can and can’t claim.
What you can claim a deduction for..
Rates & Water costs, Land Tax,
other Council fees relating to the
property
Repairs to the property, including
gardens, garden sheds, pools etc
Fees paid to Rental property agents
Insurance premiums relating the to
the property
Travel associated with maintaining or
inspecting the property
Body corporate fees
Advertising for tenants
Depreciation on the fixtures in the
property eg carpets, blinds, stove,
HWS
Building allowance write off – IF
your property was built after 1985,
and you
Have a quantity surveyors report
giving you the required information
The interest on loans used to acquire
the property, or maintain or improve
it.
What you can’t claim a deduction for..
The purchase price of the property
including the purchasing costs such
as solicitors fees and stamp duties
Loan repayments which are a
combination of principle and interest.
Only the interest component is
deductible
Loan interest on loans which have not
been used in respect of the property.
Initial repairs to the property
Travel expenses associated with
buying the property
If the rental expenses, including
depreciation exceed the income, then
the resulting loss can be offset against
your other income. This is called
negative gearing.
Negative gearing is not working
particularly well in the current
environment of low interest rates as the
gross rental return and the interest rates
on investment loans are very close. In
times of higher interest rates, more loan
interest is paid, and therefore a higher
loss results.
As previously stated, the negative
gearing aspect of investing in property
should not be taken in isolation. As
interest rates are now low, this is the
perfect opportunity to pay down debt,
and increase the equity in the property.
The increase in equity means your
wealth has increased, and also means
that you have more opportunity to
acquire further property or investments
using that equity.
It is always best to seek advice in
relation to the purchase of an
investment property. Consideration
should be given to what entity the
property should be held in, what
percentage of investment returns can be
expected, cash flow matters and the
consequences of periods of vacancy.
Let’s Talk Business
8
“ … If You’re the Smartest Person in Your Business, Your Business is in Trouble …”
After 8 weeks of running a well-
received webinar series, we wondered
what a great subject to finish on
would be. We had already covered
cashflow, database, systems,
recruitment, management, advertising
and much more. So what would be a
fitting finale?
Participants had been loaded up with
templates, instructions and support to
implement the ideas, so this was a
hard call! Then … like a light at the
end of the tunnel … we found it!
Building your Master Mind Group
We realised, that having all these
great resources, learnings and a plan
to implement everything was a
complete waste of time if the
Business Owners didn’t do it! So how
were they going to continue the
momentum of implementing the
strategies after the hand-holding
period of the webinar series had
finished?
The answer was to show the webinar
attendees how to identify or build a
Master Mind Group. The response
has been amazing! We have since
found out that this is the final piece of
the puzzle for many of the Business
Owners for a few reasons.
1. They had to prepare their
businesses and gather & compile
their data so it was presentable to
the professional people they were
intending to approach and invite
to join the group. This was a time
of reflection.
2. Many of the ideas they were
implementing were new for the
Business Owners, but Master Mind
Group members, being experienced
people in business, would have
their own ideas about many of these
strategies. It’s likely they have
implemented many of them
themselves.
3. It was a way to change-up their
game to a new level. They were
clear that to get better results, they
had to associate with people who
were better at business!
Then of course, we had to give
everyone instructions explain how to
build their Master Mind Group. So in
the final webinar we put together a step-
by-step process that would lead to a
private mentoring group of peers that is
a secret strategy many successful
entrepreneurs implement in different
forms.
There are 5 sections to the webinar …
1. How to build a Master Mind Group
2. The purpose of building a Master
Mind Group
3. Who to get involved and why
would they be interested
4. What are the rules and etiquette of
such a group
5. How to open doors with your
Master Mind Group
Since running this webinar several
attendees have told me that they know
that if they do not implement this final
step, their business growth will more
than likely not grow far beyond where
it is now. They have ‘copped it on the
chin’ that if they truly want to play a
bigger game, they will need to
associate and play with more successful
and experienced people in business.
In summary, this final module seemed
to fit the bill perfectly. As a reader of
this publication, you are probably of a
similar mind-set to the attendees of this
webinar and so you have an
opportunity! This webinar series was
NOT FREE! Attendees invested money
to be involved and there have been
some brilliant advances in several of
their businesses. You have a short
opportunity to access this webinar. For
the month of May, 2014 if you email
[email protected] and in the
subject line type Master Mind Group
Webinar’ I will email you a private
YouTube link where you can watch the
40 minute module at your own pace.
If you take up this opportunity you may
also like to have a chat about other
possibilities for you and your business.
To this end you’re welcome to
experience a complimentary 30 minute
review of your business that includes a
copy of the well known Profit
Mechanics Diagnostic Questionnaire.
You will get an easy to understand
report that will help you see where
profit may be leaking from your
business and how to fix it.
Business is More Fun When There’s
Profit!
Dan Buzer
Profit Mechanics
0414 567 188
www.profitmechanics.net/ [email protected]
Let’s Talk Business
9
Planning your social media posts,
tweets and updates can help you
increase your business! Like all
marketing, you should not just take a
point and shoot approach and pray
people are paying attention.
Facebook is ALL about establishing
relationships. This applies to your
personal profile and your business
page. Using the two to complement
each other can prove quite powerful
and provide you with insights to
your potential customers.
Here are some Facebook tips to help
you get more out of your time spent
on Facebook:
A proven number of Facebook
posts = 2 per day. We just do one
per day, but Social Media Experts
have proven 2 posts per day to
work the best if you have the time
to invest.
Typically, adding a photo helps
boost attention to your Facebook
POST. However, because most
businesses are posting a photo,
sometimes putting up a post
without an image can be
surprisingly successful by
standing out in someone’s feed.
If you are going to do an image…
add text. Facebook places more
weight on an image and text
combo posts than a photo by
itself. i.e. More people should see
it.
Keep posts short and sweet…if
you have more information;
provide a link to a Blog post on
your website.
Direct people back to your website
when appropriate…you do not own
Facebook, you own your website. If
you want to build your mailing list,
get them to sign up on your website
not just interact on Facebook as
they can ‘unlike’ your page at any
time then you have no means of
contacting them easily.
Ensure that you ‘share’ any
Facebook posts you put up on your
Business Page via your Personal
Profile. This helps a) reach those
people who are just your Facebook
friends and don’t already like your
Business Page + b) increase the
overall audience reach of your post.
Use the scheduling tool. It is the
little Clock icon found at the
bottom of every post update area on
a Business Page. This allows you to
pre-plan your posts days, weeks
and months in advance. Great for
your regular weekly tip post
upcoming event reminders. NOTE:
Scheduled posts do not usually
have the same amount of reach as a
post created in “real-time” but they
are good to maintaining a presence
on Facebook when you are too
busy to be on each and every day.
Hootsuite is another great third-
party program that allows you to
schedule posts as well as twitter
tweets, LinkedIn updates &
Google+ all at once. You lose the
ability to ‘tag’ easily but a great
program regardless. You can also
leave Hootsuite open to track all of
your social media via one
dashboard. www.hootsuite.com
WHAT to post & WHEN ~ Monday
to Sunday
Monday - provide an inspirational
note or image ~ If you can keep
this industry related, even better.
Tuesdays - provide a free tip or
hint ~ You are demonstrating how
great you are at what you do and
how willing you are to help. Keep
it short and sweet & include an
image or diagram.
Wednesday - encourage
interaction with your social media
~ ask your followers a question,
post a video, ask for feedback,
encourage people to ask you a
question…trial different strategies
until you find one that gets the
most amount of interaction.
Thursday - promote: an event,
your services, sale, new website or
competition ~ this can also be
events that your business
supports.
Friday - be funny ~ it’s become a
cliché but Friday is for fun. If you
can share an industry related
funny image or joke, even better.
Remember to keep it clean &
avoid anything offensive.
And don’t forget the weekend –
Saturday - share relevant event/s
you’re attending (or a review)
and
Sunday – be more social update
~ examples include “Photo of
the Week” or staff selfie.
Karen Ahl Bac. Bus (Mark, Man), TAE40110,
Cert IV IT Caboolture, Queensland
Ph 0415 142 178
www.web-sta.com.au [email protected]
Facebook Strategy !
Let’s Talk Business
10
Peter Nicol
Wisdom Marketing & Management Services
0417627097
www.wisdommarketing.com.au
Objections are the Lifeblood of Sales
When people object they are really
asking a question.
There is an old saying that goes “turn
every objection into a question – show
more value and close again”.
Sounds simple and good sales folk find
it a snap. Why? Well for a start they do
their homework. They work out all the
benefits of their products and the
potential objections that they might
have to encounter in the sales process.
All good selling is serving; you are
there to help guide the customer to a
point where they feel this has answered
their needs and wants.
Things like it’s too expensive, I live
too far away, does it come in other
colours, I can get one like it but
cheaper, too heavy, too light, too
everything. Yes they sound like
whingers but they are really only
asking a question and thank them for it.
I usually say what a great question to
every objection. And re-phrase the
objection as a question.
Yes colour is important “but” – “It is a
little more costly than the others but
the warranty is where the real value
come into play”.
Patience and listening to people in the
sales role is the key to success. Some
years ago I saw a sales training film
where half the class were given a
balloon to blow up.
They were then asked to stick a pin in
their balloon. You guessed it they blew
up. The other half were then asked to
blow up their balloon and then slowly
let the air out of it – then stick a pin it.
Not much happened.
That is what prospects are like they
come into your store or get on your
phone and start to talk.
Let em! I love it as it gives you time to
structure your responses and detail
what major benefits are going to be
there when you get your time to reply.
Real Estate agents need to know a lot
about a property as so many factors
can play a role in a purchase.
Is it child friendly- this means they
might have to find out how many
young families there are in the area?
Schools bus services, hospitals for the
elderly. These are just some of the key
elements that good sales people get
together when they are researching a
sale or a product for sale.
The skill can come with two names,
Pre-call Planning or Product
Knowledge. Learn about the attributes
so you can turn objections into
questions, and then answer them
fully and completely and with the
confidence that comes with
practice.
You must inform in order to
persuade. Tell people all they want
to know and, more they should
know. Because you must ensure
they get what they want.
This comes from asking as well as
listening. Sometimes clients are
hell bent on getting a particular
item. It is up to you as a
professional and ethical person to
listen then provide the product that
they want or one that might do a
better job and might save them
time and money. That makes for
repeat business as people come
back as they trust you for your
professionalism.
So next time you see a client, think
of the balloon analogy, and let
them talk for a while and explain
their needs and wants.
Some just have an “itch” and are
not sure they want something but
can be persuaded into making a
purchase.
They might have seen it on TV
and just have come in to touch and
feel.
These are golden moments for the
sales professional. Is that you?
Let’s Talk Business
11
workplaces should treat all of these
concerns as genuine and in
consultation with exposed workers
attempt to find acceptable solutions.
However, as a good "rule of thumb"
if a machine can't be adequately
guarded for the job in hand the
machine being used is probably not
the right machine.
In comparison with States like New
South Wales and Victoria, Western
Australia's manufacturing industry is
on a small scale, making it difficult
to justify jigging and tooling to
automate manufacturing processes
with the associated improvement in
safety for machine operators
.
This "economy of scale" problem
also results in many old machines
remaining in service long after their
genuine "use by date" has expired.
They are kept for those one or two
jobs a year that can then be done in
house rather than sent out to a
competitor with a more appropriate /
modern machine.
As a result, it is particularly
necessary for those who work with
and around machines to be aware of
the related hazards and the means of
controlling them.
Hierarchy has the safest measures
at the top
In occupational safety and health
there is a hierarchy of controls that
should be applied to any hazard.
The hierarchy is in a descending
order from the control measure
which gives the greatest level of
safety, but they may be used in
combination.
Generally the order is:
Ron Court,
AMC Dip (Funerals) MQJA JP
OH&S Advisor
0419 679 619 [email protected]
Use of Machinery
Elimination
Substitution
Isolation
Engineering Control
Administrative Control
Personal Protective
Equipment
Maintenance considerations should
include ready access to areas
identified during design as
requiring regular maintenance such
as for cleaning, lubrication and
adjustment.
Routine adjustments and lubrication
should be designed to be carried out
with the machine stopped, but
without the need for removal of
safeguards or dismantling of
machine components.
Where frequent access is required,
interlocked guards should be used.
Self-lubrication or central
lubrication of parts should be
considered if access is difficult.
Positive lock-off devices should be
provided to prevent unintentional
restarting of machinery, particularly
after a machine has shut down
unintentionally.
You can get information about your
OH&S obligations and other
valuable OH&S resources both in
hard copy and online from their
websites. http://
www.deir.qld.gov.au
Always seek independent legal
advice on what is applicable to your
situation.
Unguarded machinery is hazardous
The number of machines being
introduced to workplaces is increasing
exponentially. Initially machines were
unguarded probably because the
hazards* were not fully appreciated
and community expectations were not
as high as they are today.
You will no doubt have seen
photographs of factories in the late
1800s and the early 1900s with line
shafts running from one end to the
other with numerous pulleys and
unguarded flat belts driving a variety
of different machines.
The accidents that occurred with such
systems led to the realisation that
action had to be taken to protect
workers.
However, despite the fact that
guarding has been available for many
decades, workers still continue to be
injured.
Machines must be adequately
guarded
In many cases workers remove guards
because they perceive some difficulty
in performing their job efficiently
with the guard in place.
Sometimes the guard is thought to
slow work down, sometimes the
guard gets in the way of the work
piece or the job just can't be done with
the guard in place.
Sometimes workers complain that the
guard restricts their view or doesn't
allow the degree of accuracy required
when lining-up the job for say a
bending or pressing operation.
Employers and persons in charge of
Let’s Talk Business
12
cloud computing is that you need an
internet connection to access the
cloud. Your internet connection
should also be reliable and fast.
This direct dependency on the
internet means cloud computing is
susceptible to outages and service
interruptions at any time. If your
online presence is critical for your
business to operate smoothly, then
you will need to identify an internet
service provider that can guarantee
service availability commensurable
with your needs.
Risk 2: Data Sovereignty and
Security
This is a significant and complex
topic. Generally speaking, if your
business engages non-Australian
service providers, including cloud
service providers, then it is your
responsibility to take reasonable
steps to confirm they comply with
Australia’s laws. Your security
evaluations of their operations must
include who can access the data,
where it will be located, (country of
jurisdiction for evaluation of legal
obligations), technical infrastructure
(e.g. physical hardware) and what
steps the cloud provider has taken to
protect the integrity and security of
the data.
While some cloud providers in
Australia will commit to hosting
services within national boundaries to
alleviate data sovereignty concerns,
you will still need to satisfy yourself
that your cloud service provider
meets all of your other data security
Karen Davey-Thorpe AAIDC CC
Smart n Savvy Business Solutions
1800 899 198
needs.
I encourage you to seek
professional and legal advice to
better understand how this topic
applies specifically to your
business.
Risk 3: Compliance
Did you know that the investment
you made in achieving certification
(e.g. industry standard or regulatory
requirements) may be put at risk by
migration to the cloud if your cloud
service provider cannot provide
evidence of their own compliance
with relevant requirements? Or if
they do not permit audits to be
undertaken at your request?
If certification is important to your
business, please ensure you include
a compliance assessment in your
evaluation of cloud service
providers.
As with the implementation of any
key business change, it is important
to plan properly and consider how
all areas of your business that may
be affected.
The decision to proceed with a
cloud computing solution should
only be undertaken once a risk
assessment has been completed and
you are satisfied the risks and
mitigation actions are acceptable.
We’ll review the remaining key
risks in the next issue. If you’d like
to learn more about whether cloud
should be part of your business,
please contact me.
As I mentioned last month, the
marketing of cloud has been very
effective in promoting the positive
aspects of what cloud computing can
deliver for business (quicker, cheaper,
better), however it’s very rare for the
potential risks and business impacts to
be discussed in equal measure.
The European Network and
Information Security Agency (ENISA)
has identified eight cloud specific
high risk areas. We will begin to
look at these in this article.
It is important that you consider how
these risk apply to your business and
what mitigation actions may be
required to ensure your transition to
cloud is successful.
ASSETS AT RISK
There are two types of assets that are
deployed to the cloud. These are:
Data (e.g. financial information,
customer lists, product details,
supplier details).
Applications/functions/processes
(e.g. procure to pay, inventory
management, customer
relationship management, etc.).
When you consider how important
these assets are to your business, and
the value they hold, then you begin to
appreciate why you really need to plan
your move to cloud solutions carefully.
KEY RISKS
Risk 1: Network Dependency
Cloud computing is dependent on the
internet. A fundamental drawback of
Key Risks You Must Consider Before Moving to the Cloud – Part 1
Let’s Talk Business
13
As we head towards the EOFY, we can
think about how to improve our financial
position and prepare for our tax returns.
1. Documentation – we can assist our
accountants and save money by
preparing documentation. If you
have a book keeper, they will do this
but it revolves around receipts, bank
statements, log books and proof of
expenditure i.e. to receive a tax
deduction “generally” you must
prove that the money was actually
spent on a tax deductible item
2. Pre pay interest – if you have an
investment loan or business loan,
you can pay some or all of next
year’s interest before 30 June this
year. Your accountant can include
this in this year’s expenditure and
can effectively reduce your tax
liability for this year
3. Contribute to your
Superannuation – if you are under
60 you can contribute up to $25,000
to your super and receive a tax
deduction. If you are over 60 you
can contribute up to $35000. You
must be CAREFUL NOT to over-
contribute as there are heavy
penalties. By doing this you can
keep most of the money yourself,
albeit in super AND possibly move
to a lower tax bracket
4. After tax contributions to your
super – you can contribute up to
$150,000 to your super this financial
year. If you sell an investment
property, a business or receive an
inheritance you can utilise the ‘Bring
Forward’ provisions and contribute
up to 3 years of contributions or
$450000. BUT you cannot contribute
more than a $450000 in after tax
contributions in the 3 year period.
5. Capital Gains Tax – you can reduce
your CGT liabilities by a) “realising”
a capital loss to offset against any
capital gain; b) Offset capital gains
against capital losses carried forward
from previous years; c) make pre tax
contributions to super to offset a
capital gain; d) you can sell your
business and roll the proceeds into
super providing you with a CGT
exemption of up to $1.255m for the
2012-13 year. This is a great way of
getting much or all of the proceeds of
the sale of your business into the tax
preferred environment of
superannuation. It is important to
work with your accountant or
financial advisor when seeking
offsets.
6. Bring forward or Defer payments –
just as we can bring forward annual
interest costs we can bring forward
other costs into this financial year.
Additionally we can bring forward or
defer income. We can simply ask our
debtors to pay this financial year OR
ask them to pay next financial year.
Consider your income, expenses, tax
liability and consult your accountant
before applying this strategy
7. One Month to go – we have about 1
Paul GILLMORE DFS
Founder and Director
Southern Cross Financial Services
07 5429 5561
0402 685 032
month to get these strategies in
place. They must be in place
PRIOR to June 30 meaning that
monies must have been disbursed
or contributed and have
been cleared into their destination
accounts. If not, they simply do
not make it into this financial
year.
8. Superannuation Clearing
House for Small Business –the
ATO has taken over the
responsibility of distributing
super to all super funds. This
saves an enormous amount of
work for small businesses by
simply remitting super to the tax
office with a schedule of
contributions rather than
completing individual forms,
drawing separate cheques and
acquiescing to the administrative
retentiveness of, particularly,
industry super funds – a great
benefit to small businesses.
9. New Millennium – super
contributions and rollovers have
finally made it into the new
millennium by being electronic as
opposed to a physical cheque
with associated postage and
manual reconciliation.
DISCLAIMER – the information here
is general and should not be taken as
financial advice. Please refer to your
account or financial planner directly
for individual personal advice.
EOFY Financial Tips 2013-14
Let’s Talk Business
14
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.
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
Creative Leadership
Dennis Chiron Marketing Means Business
0451 184 599 www.marketingmeansbusiness.com
[email protected] Skype: dennis.chiron2
Let’s Talk Business
15
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