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Archive for April, 2009

I told you so…

Apr 28

Posted by Steve Gray in Excellence! | No Comments

Lots of people being sacked, redundantised, etc… due to the GFC (allegedly). In the past those who are regulars will realise I have been an advocate for cooperative business models. So ask yourself this would a coop put off a staff member for no good reason? short answer no.

So is the answer to make all business a device owned by the community? Well probably not. but the bigger issue is how businesses are perceived. xyz Co put off x No of staff oh woe is the state of things, they are bad guys etc…

Here is what I see are the real issues here, outsourcing, and diversification.

If a Co outsourced all but it’s core activities, things would not fall far in one organisation. and if they diversified they would not be relying on one income stream. Lets explore that.

Co a sells widgets and makes a profit, the profit goes into an investment fund and they buy property to rent out. They get another income stream. In producing the widgets for one market they recognise a different target market needs a similar widget, and they can do it with a few tweaks, therefore they develop another income stream. So with the profits being (hopefully) greater, they can put more into other investments e.g. term deposits with a bank.

That’s the basics folks, make some, add some, make some more and so forth. The aim being if one goes down, the biz is still intact to some degree. it’s simple but it should work. If it was a cooperative then it might just work better with the right foundation and philosophy supporting it.

Marketing Mix – How Powerful Is It?

Apr 22

Posted by Emma Rhoades in Starting out in business, The Marketing Dept | No Comments

I’m sure you are wondering “can the marketing mix really be held accountable for my success?” You bet it can. You see, the marketing mix is the foundations of any business promotion. Read on to find how it works…
Not many people know of the Marketing Mix, or if they have heard of it, what it really means. Some think it’s all about the specials that they run in their business, or how many newspaper adverts they put it. Actually, it’s a combination of what is also commonly known as The 4 P’s.
Product, Price, Place and Promotion. In that order. Without one, the others fail. All 4 combined together will be 100% responsible for your promotion success. Let me go over them each and how they tie in together and you’ll start to see what I mean.
Product.
This refers to your physical product, or your service that you offer. Have you really looked at it? Pulled it apart and examined it from all angles? (And I don’t mean physically pull it apart!) What is so special about this product of yours? What are you really selling? For example, a hardware shop doesn’t sell drills; it sells holes in the walls. A hairdresser doesn’t sell haircuts, they sell confidence. Find your benefits and see if your product really delivers what you say it does. Once you know that the market wants your product, you can then go about pricing it.
Pricing
Many people get stuck on pricing of their products. The only time this should stump you is when you are introducing a brand new, individual, never been done before product or service into the market. Otherwise this is where your competition analysis comes into play. Who are your competitors? What products do they have that are similar to yours? Are the same type of people buying their products that you want to buy yours? Where do you fit into the marketplace? Are you going to come in cheaper than your competition?(A strategy that can never be sustained, I might add) or will you come with a different angle. This will help you to complete the pricing component of your marketing mix.
Place
This element refers to how people can buy your product. Do you have a retail shopfront? Can they purchase online? Do you have your own distributers? You will see that this section is critical to your marketing success. If people can only buy from your shopfront – what’s the point of advertising in a city ½ an hour away? Especially when your competitors are closer to them? By analysing this point carefully, you will discover that you can save precious marketing $$.
Promotion
This element is the part that people skip straight to. And funnily enough, if you haven’t done the above 3 points first, it’s useless! You are just throwing away all of your money and profits if you don’t know the answers to the above. Test yourself – get someone to ask you all of the above questions, try to overcome objections about your product. When you can passionately promote your product and overcome customers’ objections without any hesitation then you are ready to move on to the promotion aspect.
As you may already know, there are boundless avenues to promote your business. From mainstream marketing such as newspapers and magazines, to free publicity via press releases, to online marketing and social web, there are plenty of strategies that will fit well with your marketing mix, and save you thousands of dollars on your business promotion.

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Are you Yammering?

Apr 22

Posted by Steve Gray in Human Resource Management, IT Dept, Innovation and Creativity, People!, Planning, The Operations Dept | 2 Comments

https://www.yammer.com/

This is like Twitter, but just for your organistation. If you have a bunch of people with intra company email addresses, they can connect and chat, just like twitter does on a global scale. It works on the premise of “what are you doing now?” as the main question. Then as people use it they find others working on things similar to them, or they may have an answer or a resource for someone else where working on something.

Productivity tools just got a kick in the backside folks!

Warren Buffets guide to investing, my view…

Apr 21

Posted by Steve Gray in Finance | No Comments

The American Warren Buffet has been in the investing game and winning for a long time, here is his guide to investing and my take on how to go about doing it…

• Hard work: All hard work brings profit; but mere talk leads only to poverty. 
- If the hard work you do does not bring profit  you need to get to doing smarter work, and work hard at that. 

• Laziness: A sleeping lobster is carried away by the water current. 
- Clearly the pain of hard work has caused laziness to kick in and you are debilitated by the hassles it caused, this does not happen all the time, try looking for ways to the pain and get on doing what you love.

• Earnings: Never depend on a single source of income. 
- Easier said than done sometimes… If you first thought was a Multi level business opportunity stop, it’s not the only answer and it’s not for everyone. So think about income from investments, in businesses, bank term deposits, rental properties etc…

• Spending: If you buy things you don’t need, you’ll soon sell things you need. 
- Ask yourself do I really need it, or just want it? Is it for my ego or??? Things you buy should enhance your life, not cripple it!

• Savings: Don’t save what is left after spending; Spend what is left after saving.
- Try putting 10% of what you earn in a separate bank account  you can’t touch easily. Teach your kids to do that ALWAYS, and leave the money there, unless they can earn more interest with savvy investments…

• Accounting: It’s no use carrying an umbrella, if your shoes are leaking. 
- Having an accountant is like having a great tool you always use in your toolbox, in this case the tool should have been something to fix the leaky shoes with!

• Auditing: Beware of little expenses; a small leak can sink a large ship. 
- Keeping track is vital, know if your margins are outside reasonable limits. 

• Risk-taking: Never test the depth of the river with both feet. 
- always have a back up plan, an exit strategy, a way of measuring how the risk taking is going and do great research before jumping in.

• Investment: Don’t put all your eggs in one basket. 
- And don’t harvest just eggs! Spread the load and keep things safe.

There, my take on investing using Warrens guide, notice how we find these things after people have gone to the wall! :)

Arts based recovery?

Apr 19

Posted by Steve Gray in Growth, Planning, Starting out in business, The Board Room | No Comments

Years ago when the “recession we had to have” was on (late 80′s) there was a push at one stage for an Arts Led Recovery. Perhaps it’s time to look at it again and try a fresh tack in the “G.F.Crisis”.

Locally there is a small Arts following with a few commercial galleries and a regional one with some contemporary artists hiding in the bushes somewhere.

However on the Weekend I was in Melbourne for “Art 09″ a giant expo of art from a range of Commercial Art Galleries and a lot of “art” was bought, thousands flock in, thrashed their credit cards and went off with smiles and art in hand.

A lot of discussion took place (and will for a few weeks to come) about the merits of the event and the possibilities for those wanting to have display spaces next time, as well as other ways to “make art pay”. It’s a topic dear to my heart (being an Artist might do that…)

To get on with the process it’s probably important to say, it’s about income (when people buy stuff that’s what happens folks…) then about the art (the product), then the artist (the producer…) The flow on is therefore about sustainability to be able to then have a profit and see the spread of the income to the wider community. Note with no margin there is no spread so the profit is important (both monetary and other).

I’m thinking that not everyone wants a contemporary piece in their home, (well not a big 1 X 3 metre piece anyway). However there is sure to be ways to encourage people to consider the works (at the moment much is hidden under the bed of Artists wanting to become the next big thing…) to enlighten them etc…

One initiative I saw a while back, was art in vending machines, (clearly very small pieces). however it is not until people start to explore ideas that ways to “make Art pay.” will we see the flow on. Also the flow on of interest in creative endeavours and not just the cash transaction.

There is scope for exploration for ways to make it pay, for now lets consider the fact that we have a solid core of artists, galleries and punters willing to purchase. So lets find ways to get the ball rolling.

Free Training YAY! ??

Apr 19

Posted by Steve Gray in People!, Personal Development, Planning, Starting out in business, The Board Room | No Comments

Local paper, classified training section, courses on offer with local accredited training org’s there are free courses in pre apprenticeship training, and various others to assist to up skill people… seems good, fairly non eventful stuff. It looks like the government and trying to boost things along with the freebies (have done for some time now…

However I looked down to see a small business start up course to explore new biz ideas, read through, looked okay but you have to pay… hmm at first I ranted and raved to the wife about “THIS SHOULD BE FREE!! dammit!” then got the raised eyebrow and a chat about “yeah, yeah… bla blahhhh… get over it..” and I stopped, then thought…

Hmm they should pay but then at the successful completion of the course get their money back… a money back redemption, perhaps a discount or a carry over to another course to take the idea further, or better still a chance to thrash the idea out that bit deeper with a mentor.

A nine week program, Perhaps I should go along and play devils advocate… thoughts?

Companies shirk responsibilities

Apr 18

Posted by Steve Gray in Excellence!, People!, Planning, Risk Management | 1 Comment

Ok so this is my view… but how dare a company employ people and not cover their entitlements when the whole thing goes belly up…

Here’s an example from our local newspaper, on Melba Industries.

The company does not have the funds to cover their staff entitlements now they are being liquidated. As business go along they find the money (put it away earlier) to cover tax requirements, and allegedly the same with Superannuation payments etc… so why not put away an amount to cover entitlements.

Or at worst I guess it could come out of a DRF (Debt Reserve Fund) of some kind. How about some form of insurance they have to pay into, or a compulsory savings plan for employee entitlements, that way the real profits could show through and the issue could not be so big.

Hey folks don’t hold your breath waiting for the government to do something about it, do the right thing from the start, take the whole duty of care situation more seriously and cover those entitlements.

Always make the “little bit extra”.

Apr 11

Posted by Steve Gray in Finance, Growth | No Comments

Business, Enterprises, Co-operatives, not for profit groups etc… I implore you to ALWAYS make that little bit extra, that “profit” that “margin”, that bit on the end left over after EVERYTHING is paid for.

Here’s why… In tough economic times, those who can stand the test of time are those who put away for a rainy day, simple. Those with that “bit extra” can grow their business, provide more resources for their customers, give themselves more leverage and build an enterprise which is more sustainable.

I guess in an ideal world your “business” should be such others want to buy it, they covet it’s uniqueness, its service ethic and so on, to really do this you need to have the margin built in so the future of the business is assured, either for you or others who take it on as a franchise or as a “straight” business.

Know what your industry standard is for margins, then beat it by a bigger chunk (so you can have a greater edge in the long run.) It’s all about longevity, sustainability, offering the right stuff at the right time to the right customer mix… it’s up to you but a margin goes a long way to assisting you to be a business owner rather than a business operator.

A margin or cash asset can be the ultimate strength you need to borrow funds to grow with, and let the asset grow, let it provide other investment opportunities without having to spend it, let it be the vehicle to propel you forward ad give yo the edge. Most people when they get a profit spend it and enjoy the rewards (short term usually) that brings. I am advocating you put the money away and leave it away, watch it grow and provide the sort of stability every business needs.

Think carefully about the way you build your business and maybe you even have to alter your mindset/s about Cash and finance to be able to effectively put this sort of plan in place, no matter what, make sure you have a margin of some kind.

Sustainability, a thought or two.

Apr 8

Posted by Steve Gray in Excellence!, Planning, Risk Management | No Comments

In tougher economic times the idea of sustainability may take on a fresh meaning, the big car guys didn’t get it, they have put their hands out… many other companies are down the tubes to, they also have their hands out.

Before a revolution kicks in and angry mobs demand “jobs and justice” I am reminded of a “trend” a few years back which offered some promise but seemed to rarely deliver.

A friend was telling me about grants his organisation was applying for (not for profit) one of the criteria was based on “making the project your grant will be used on, sustainable.” simply put he said on discussing the issue with work colleagues, the best they could do was come up with a few ideas around energy efficient office equipment, using recycled paper and that sort of bent on sustainability.

I said, “It’s funny but I get the view they want you to take the $$ and be able to sustain those $$ for as long as possible.” Simply put if they give you $100K towards a worker and some resources, you would then get at least double that return from that workers output, therefore sustaining their job and building more resources.

He went wide eyed for a moment, first thought was “How do you get $200k from a $100k ‘investment’ in a person?” while his second thought was “But we would have to do some project which was going to make us money from sources other than the grant…”

He was stuck, or at least his current paradigm was stuck, he had to now think outside the square as to how either of these might happen.

Sometimes we have to look out for fresh ways to tackle things so we can make our organisations more sustainable, and whichever way you look at it both are useful. In tougher times those that made the transition to being more fundamentally sustainable will reap the benefit, those who created a “want type” business where people walk away when spare cash is not about, will (in the main) feel the “pinch”.

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