Archive for category The Board Room

The Rule of Three.

Oct 8

Posted by Bren Ryan in The Board Room | 1 Comment

You can have Quality, Service, or the Cheapest Price – pick two, because you can’t have all three.

I can’t even remember where or when I saw / heard this rule (it isn’t my original, but I can’t remember the source – sorry source), but when I heard it….a light bulb moment, a BFO (blinding flash of the obvious – I remember the source for BFO, Casey Gollan – thanks Case)

I use it every day, when I buy, and when I sell.

When buying, the application is pretty simple – If the price is low, low, low, what’s the catch? If you get three quotes, and one estimate seems to be way below the market value, you can usually bet that either quality or service has been compromised. Now that is not to say that a compromise in quality or service is always a bad thing, just a compromise.

For example, buying on eBAy. I love eBay, I have bought & sold some great stuff really cheap – but, there was always a compromise. To buy or sell at a low price, there has to be a compromise on either service or quality. I just bought a nice coffee machine on ebay. Brand new, an unwanted gift. I saved about 35% off retail- great price. The machine is brand new, under warranty, known brand – great quality. Therefore, the compromise is the service – I had to wait for it to be sent, no instant gratification. I take a small risk that the goods will not be as described. I have less rights as a consumer because it was bought at auction. So, the service has been compromised – not bad service, just different. Different enough that I have to decide if it is worth paying more for the better service, or accept the compromise for a better price.

A selling example could be when I sell caps. If a client wants 150 caps in under 2 weeks, with an average size logo we can easily turn that around for about $7-8. Great quality, Fast service, and a market value price. If the client wants to get them cheaper for whatever reason, then of course there are things that can be done, but they involve a compromise of some sort. We could choose a cheaper hat – a compromise in quality. We could print instead of embroider – again quality (it wont last as long) – so a cheaper hat or different decoration doesn’t mean bad quality, just different.

We could also compromise the service. If we made the caps to order in the Chinese factory instead of using stock already in Australia, we can reduce the cost of the same hat to about $4-6 – great price. Great quality – it’s the same hat, from the same factory, no compromise. Lesser service – delivery will take 12 weeks, rather than 1-2 weeks (literally a slow boat from China!) So, not bad service, just different.

How can we apply this to our businesses?

Do you have any competition?

Do you ever have to competitively estimate?

Are you in a price driven industry?

Are you in a commodities industry?

If you answered yes to any of those questions (and I think most of us would at some stage) then you must use the rule of three to define your USP.

We need to analyse our own business, and our competitors business to see how the rule of three applies, and how we can use it to our advantage.

For example, if your competitor has a consistently cheaper price than you, what are they compromising on? Do they offer a slower service? A different brand? A lesser warranty or guarantee? A lesser after sales service? A different production method? Somewhere, the compromise will be there (it’s a rule). Once you know what that is, you can then rationally explain to prospects exactly what the difference in features (quality, service) is, and why paying a little bit more could be justified. Now, some people will always go for the cheapest price. And some will be willing to wait for delivery, take a generic brand, live without the extended warranty, give up the free after sales service – that’s ok, let’s face it, you probably couldn’t keep up if you won every single order, right?

It could be the other way. You could be the one whose competitive advantage is a cheaper price. You still need to know what that compromise in quality or service is so that when a prospect brings it up, you can rationally explain why the compromise doesn’t matter – you don’t need the extended warranty because they never break down – the generic brand is made in the same factory as the branded one – you deliver slower, but you deliver right on time (when you said you would). Now some people will always steer away from the cheaper version just because they can (Ferrari would never sell any cars if price was always the major factor, right?) – that’s ok, you probably couldn’t keep up if you won every single order, right?

So, according to the rule of three, where is the compromise in your business, and your competitors? More importantly, how can you use those differences between your competition and yourself to your advantage?

Business Basics

Oct 8

Posted by Steve Gray in Excellence!, Finance, Growth, Planning, Risk Management, Starting out in business, The Operations Dept | 4 Comments

I love chatting about business, and love to see people put an idea or three into action and get results, but unfortunately far too many people go to get started and so blindly follow the idea their heart runs off with the head and they fail. I don’t want them to fail but they do, the business owner does not want it to fail but it does… Fail, fail , fail… its not a good look!

Therefore, any chance I get I like to mention the basics of business in the hope to make a difference, I like to harp on about the basics and let people know…

Idea – Research – Action – Spend $$ – Make $$ – Have some left over – Invest – Repeat. (or close to that.)

Still people get it wrong, some end up with an image like this…

Idea – Action – Spend $$ – Make SOME $$ – Spend more $$ – End up broke. (Or some similar pattern to that.)

What’s the point of having a great idea and seeing it crash and burn? None, it hurts and can easily hurt others, so stop doing it. The challenge is however people don’t see the “crash and burn phase” they see a rose coloured world of $$ and happy customers.

Consider this, you want to learn to fly, you have the idea, you have the cash to buy a plane, you know full well you can’t fly the sucker until you have been trained and pass the test.

So why the heck do people jump into business (of any size) without the right training… Because they can, and you know what, you can sign up to get business registration on line, get a bank account and so forth and be in business in no time flat. Problem is no training, probably some skills, possibly and few helping hands to get started. and the rest seems to be “fly by the seat of your pants” and hope for the best.

Do some basic research BEFORE getting started and make sure you KNOW what you are in for PLEASE. too many failures in business seems such a waste of resources folks.

Tags: business success, Planning, Risk Management, starting in marketing

Articles to Whet Your Appetite!

Sep 13

Posted by Steve Gray in The Board Room | 3 Comments

In a rush?, want to find great articles fast, here are a few popular ones which seem to hit the right note with readers, I hope you find them useful too!

Does your business have a heart problem? Bren Ryan writes from solid experience in business, this article explores the blockages you might face with a great metaphor, the heart.

Training to Win… Five rock solid points on how to train people to win the game, the business game of course. In simple points to get you thinking and hopefully acting to improve your business.

Top Tips for Probation Periods at Work Nnew staff? Get them off to a flying start with this gem, and I bet you never thought of some of these points, or if you did you didn’t implement them.

Successful Communication – 4 Key Categories Jenny Stilwell is professional with an eye for what works, in this case great communication, you know it’s an issue in most businesses (in fact in life!) so use these points to get your business in to gear.

What are your people doing, working… or? People are great aren’t they, but hey what are they doing? Not sure then perhaps this article will give you a few clues to find out…

The eco friendly recruiter A simple way to streamline your recruitment practices and make a stand for the environment at the same time.

Feedback and Communication More communication strategies, I know you just can’t get enough of them.

Bitter, grumpy annoyed… get over it! People in business can get this way, and I think it’s a timely reminder…

Workplace Bullying Policy What’s that… you don’t have one… oops! Here’s an outline of how to get one fast.

Creating Your Own Marketing Action Plan Emma Rhoades explores a great way to get on top of your marketing plans.

Tags: innovation.leadership, management, managing, recruitment, training

Does your business have a heart problem?

Sep 10

Posted by Bren Ryan in Excellence!, Planning, Risk Management, Starting out in business, The Board Room, The Customer Service Dept, The Operations Dept | 2 Comments

I live and work in Geelong. I have for 15 years or so. In that time, we have pretty much been in drought conditions, and under water restrictions.

This year, month, week, that’s pretty much changed. The word is, we are fast moving towards breaking the drought. With just “average” rainfall mind you. Fantastic! However, it’s caused a bit of chaos this week. You see, Geelong is a city divided by the Moorabool River. It runs roughly West to East, and dissects the North from South.

Of course, there are multiple points at which to cross the river, but one (apparently) vital one. It’s called the Breakwater Rd & Breakwater bridge. As the name suggests, it’s a breakwater, and it floods every time the Moorabool River reaches a certain level. It a pressure release valve so that the river doesn’t flood as badly as it might.

It’s a two way, one lane intersection. It’s tiny. It’s insignificant. It doesn’t appear to be that busy in the scheme of things. I take it everyday in my 5 minute trip to the office.

When it floods, it throws the City of Geelong into Traffic chaos! This week has seen a lot of Geelong employees late for work. My daily 5 minute drive has turned into 45-60 minutes!

My City has a heart problem. Like our Hearts, the city depends on all it’s arteries to follow un-hindered – block one, and you have a heart problem.

It made me think about my business (while i was stuck in traffic ) Sometimes, we have arterial blockages in our businesses. It might be that the phone messages stall at reception and don’t quickly get sent to the sales guy, it might be the order release message from the accounts dept stalls and doesn’t get communicated to the despatch area, so an order sits on the back dock two days longer than it should.

An arterial blockage in our business is simply a part of the system that gets blocked up, slows the rest down, and sometimes even stops the system dead – grid lock!

The first step to clearing such a blockage is to identify it. Sit back, take a breath, and objectively look at your business and how an order goes through your system, even place an anonymous order and see how your system looks to an outsider. Once identified, you can take steps to alleviate the pressure and work out ways to prevent future issues.

In my business for example, the artwork process can be one of those areas that can bog down and block the system. It might be the client is slow to send us appropriate files, or our email breaks down, or a contract artist does not do the job fast enough – there are any number of ways that part of my business can (and has) block and stop orders from proceeding. I don’t like it, but knowing it is an area for a higher potential for screw ups, I pay more attention to it to avoid said screw ups.

Another area with potential for blockages is delivery. I rely on third parties often for delivery. I have clients all around Australia and even a few Internationals. Therefore, I am often reliant on third parties like manufacturers and couriers. If the guy on the back dock at the pens factory is having a bad day, my urgent delivery might not go out, just as the courier driver might have a flat tyre or only pick up 2 of 3 boxes. Even a foggy night made us miss one deadline when the plane holding one box was grounded.

I can’t completely avoid potential blockages, but if i know exactly what they are, I can put safe guards and pressure valves in place to reduce the risk.

So, does your business have a heart problem? It’s one of those questions just like your own health – it might not be comfortable to self analyse if you are at risk, but well worth the effort.

Tags: business, innovation, lateral thinking, Planning, Risk Management, risk reduction

Who’s in… Who’s out? Your business politics.

Sep 10

Posted by Steve Gray in Human Resource Management, People! | 1 Comment

In your business you will have politics (if you don’t like politics get out of business…) it’s all about who jostles for what position, who has power, who wants what and does what.

Politics is great, as long as it has positive aims and ideas (Check out your mission vision and values, it should reflect these.) Where it goes wrong is when people get a little off centre and the positive aims and ideals get shoved off the agenda (not officially, nor formally) but the various thoughts, discussions and notions taking place have “Hidden agendas” happening.

In the end the negativity connected with this level of “philosophical thought process” ends up down the drain. People get hurt, egos get fractured, casualties can be seen from the front to the back door in a “trail of blood” (more in theory than in reality).

I figure the aim of a leader, manager supervisory type is to curtail the pain before it begins. Let’s take a look at some of the issues you might explore:

Is there an “Inner Sanctum”? - This is a group on the “inside” outsiders can not penetrate, even though your values and ideals purport to provide a “fair go” for all. The upshot might be great ideas are not getting past the barrier created by this, your loss… Take a look and see if there is any, then plot to break it down.
How transparent is the organisation? – From providing financials showing the state of play in the org, through to clear systems aiming to support your team (rather than your team feeling unsure about a system and how it works). Making things more transparent shows you are willing to chat about things and let the team know they are a part of the “organism” you have created.
What communication does not take place? – Things not discussed are things missed which perhaps should have been chatted about. Ask what are the things the staff chat about… Now take a look at what’s not being said. e.g. if they talk a lot about their favourite team sport but not about the how well the manager is doing, then in the background they could be stabbing them in the back.
How are they chatting? - These days email, SMS and the like means the backchat can be happening but you don’t know about it. I know “no news is good news”, and “You never hear good things about yourself” while these are interesting clichés, they are not always true and do you want to live your life by clichés?. Oh and avoid trying to cut out texting at work and private emails, they will do it anyway after hours or at lunch on their smart-phones. The aim, to allow them to do it with the aim of it being constructive.
How are they anyway? – The people on the “outer” that is, one or two casual chats will be met with a degree of scepticism “what do they want?” rather than an open conversation where they tell all. Your aim is to have all of your team “Onside” so it’s up to you to build an open and trusting relationship so they can feel comfortable sharing with you in a way which means you will not “rat” on them or use it against them. Keep your chats light and breezy, show you care and remember details (names, places and the like as reference points) and chat about them not so much about you! (that’s a gem!)

In time you can build an organisation which can stand on it’s own feet, knowing the right people are supporting everyone to be their best. Not a team of “Cronies” who aim to create more “Jobs for the boys” and exclude information and ideas. It will take work, it will take a critical eye, it will take you out of your comfort zone, hopefully the end product will be great for all concerned.

Tags: business, business mechanics, business women, have fun in business, hr leadership, People!, politics, small business marketing

How To Make Employees More Productive

Aug 27

Posted by Michael Crooks in Human Resource Management, Leadership, Planning, The Board Room, The Sales Dept | 2 Comments

Most companies are extremely aware of their external markets such as clients, customers, distributor networks and even vendors. But many fail to realize that employees make up an internal market. There are plenty of organizations that bend over backwards to get feedback and input from customers and clients. Far fewer work as hard to get feedback and input from employees. I sincerely believe that any organization that doesn’t view its employees as an internal market is shortsighted. And if you think the majority of your employees are happy campers – I’ve got news for you.

In a report released January 5, 2010 by The Conference Board based on a survey of 5000 U.S. households, only 45 percent of those surveyed said they are satisfied with their jobs. 55 percent are not satisfied with their jobs! According to Lynn Franco, director of the Consumer Research Center of The Conference Board, “The downward trend in job satisfaction could spell trouble for the overall engagement of U.S. employees and ultimately employee productivity.”

What the report doesn’t tell us is WHY 55 percent of employees are dissatisfied. And while specific reasons for dissatisfaction vary by company, job and employee, I believe it can pretty much be summed up as a disconnect between those in the ivory tower and those in the trenches.

One of the best books I ever read on management and problem-solving is an 80 page book called, “I Know It When I See It” by John Guaspari. In the book, the Boss demoralized his employees by telling them that the key to increasing the quality of their product is to, “Try Harder! Do Better!” It had the same effect as unfunded government mandates – no one was given the information, tools or ability to accomplish the edict. What followed was employee frustration, job dissatisfaction and further loss of market share.

If your company is large enough, consider an undercover operation to include the top echelon. In disguise either shop your company or get a job with your company. See first-hand what affect your policies and directives are having on those who must deliver your product or service. In smaller companies, I encourage bosses and managers to get out of the back room. Run the cash register. Load some trucks. Ride and work the route. Stock some shelves.

The easiest dollar made is from a happy, repeat customer. But that’s a lot harder to achieve when employees’ are hampered by decisions based solely on numbers made by people sitting behind desks who are out of touch with reality.

Tags: employee happiness, employee satisfaction, Michael Crooks

More Training to Win – Creating levels

Aug 27

Posted by Steve Gray in Human Resource Management, Planning | No Comments

When a person starts in your business they start at some level, the bottom, the top or somewhere in between.

Generally it will be at some lower level and will hopefully want to “climb the ladder of success” you provide. For some this will mean a ladder governed by rising pay increments, for others it will be the attainment of various levels of skill achievement perhaps leading to a new title (from assistant to manager etc.)

My suggestion is you figure out a pathway for your staff no matter where they come into the business, so they can clearly follow the path and attain the sense of achievement which goes with it.

There are various examples throughout history of how organisations have used this to their advantage, the main one is the military, where you work up from a “private” to Corporal, Sargeant, and so on. Along the way you have to “prove yourself” to be worthy of the role and the new responsibilities that may bring.

Because of the history of this sort of hierarchy, many people are ingrained to this way of working, so in business we can use this to our advantage.

For some businesses a formal approach is taken, and for others a more casual approach can make the approach far more fun and engaging for that type of employee and business. lets take an example of a business which does a lot of business to business sales.

Because the business is sales focussed the team has to either be supporting the sales team or be part of the sales team. therefore they might create a structure like this.

Support Crew – Starting role in the business – probably in admin there can be a range of levels in this category to take in stores and warehousing.
Sales Support Agent – These people work with the sales team as the sales support team, making the calls, tracking client contacts etc.
Sales Agent – The new sales person starts here, the apprentice if you like to the sales executive.
Sales Executive – The actual sales person, experience and able to lead the sales agents.
Sales Coach – You could call this a sales manager role.

As you can see the aim is to provide a start and end point, in time the end point might alter depending on what the organisation is able to offer and how it develops.

By creating these sorts of levels in your business you can now develop the sorts of specific tasks you want people at each level to do.

Blitz your business now…

Aug 6

Posted by Steve Gray in Excellence!, Growth, Planning | 1 Comment

If you are like many people in business you are probably flat out keeping your business ticking over and doing your best to get and keep, ahead in tough times. you have all the usual things you do to keep things going and if you have a profit happening then you are doing some things right.

However it is also easy to miss out on getting things right in your business and in fact it can be VERY difficult to get ALL things right. Perhaps this “Blitz” idea might make a difference to how you go about things.

Businesses often have “blind spots”, in retail circles it’s often called “Store blindness”. It’s where particular parts of the business are not up to scratch and often go unnoticed, it might be one area of a display which has become tardy but is not noticed so we form a blind spot to it. My answer, “blitz your business”.

How? Simple, in retail for instance, draw a rough plan of your store, and have a blitz attack on sorting things out in that section, check cleanliness, stock levels, layout, lighting, signage etc… Then to other business aspects, marketing, operational systems, and management to name a few. Go through all of these one at a time and sort them out bit by bit.

Perhaps set up a blitz team to work on each part of the business so the organisation can see the fruits of it, knowing it has taken solid action to get those results. Start now with a simple checklist of areas to focus on. Oh and remember to mix up the areas you focus on with your team so they avoid getting into a rut and follow a boring routine.

Tags: creativity

Top Tips for Probation Periods at Work

Aug 6

Posted by Steve Gray in Human Resource Management, People! | 5 Comments

Many organisations offer a probation period for new staff and it seems 3 months is often the norm, so what might some of the challenges be, and how would you overcome them? I hope to answer these questions for you, BEFORE you get into a potential minefield with an employee or potential new recruit.

Know…

What you want them to do… It’s one thing to get a new person and say “probation period”, and watch them “try to do their best”, but what do you expect them to know and be able to do in that time? Make a great list of the tasks, values and beliefs they should know as starting points of creating a solid plan of action for training the employee. Ask other in your organisation to have input so it can be a great outline using collective intelligence, not just your ideas.
When you want them to do it by...Then make a loose plan of action showing start and end dates for the probation period. When they start let them know the dates and diarise these for your reference.
What level or standard you require… It’s okay to say the person has learnt something and they are competent, but for a long term employee you probably want more than just the ability to do a task, but you probably want them to be able to do it to a set level consistently, therefore you are now looking for proficiency rather than just the basic ability to do something. Sure measure the fact they have been shown “how to do a task” and they can do it, but go the step further and have them record how often they have done something. At the end of the probation period you should be able to see key areas done x number of times and then you can ask about standards of performance.
They have a reliable Buddy... This is a person they can relate to and a go to for information, in fact it might be a few people they can call on for info. Train the buddy in how to listen, ask questions, and assess performance against set criteria. Make sure they don’t judge the person because they ask too many “dumb questions”.
You have a clear disputes process... It’s one thing to have a plan of action, dates for things to happen by, but what if there is a dispute? please have a clear process to handle this with, otherwise you may find a minor step into a minefield has instantly become a hop skip and a jump into one!
There should be no time extensions… Okay if they have to be away (due to a death in the family or some such event…) the end date might alter, but the time frame should remain solid, three months is three months. If you believe they are not able to come up to the set standard set for the tasks set, then a clear line needs to be drawn about the minimum level they need to attain in that time frame. It can get frustrating for the employee to hear “We are extending the probation period.” at the end of the time it’s the end, wither in or out, if it’s not clear it’s the employers fault, not the employee.
To get results YOU have to take action… You have to set the dates, create the checklist, do the research, train the person… Not them, so set great guidelines and then you can expect great results to follow.

I hope all these points are of value and give you great starting points to work from. Let us know int he comments how you go!

Tags: business, business success, HR, hr leadership, Leadership, People!, Risk Management, training

The Harassment Issue

Aug 4

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

In light of recent events with the David Jones case in Australia where a worker is claiming a multi million dollar compensation payout, it’s clear employers need to be aware and take positive action to ensure ANY harassment DOES NOT takes place in the workplace.

At the time of writing the case has not been settled, however employers need to be aware an employee can chase a multi million dollar payout figure and although it may not have to pay, the employer will probably have a wide range of stress at the thought of it happening.

Make things easy for your organisation and at least have an outline of what harassment is and look for ways to proactively create an environment where harassment is minimised with the aim of eradicating it.

Active employers will certainly be able to set up a basic awareness of the issues and ways to tackle it which may include training. Do the right thing and show total respect for all the team in your care, by taking action now.

Great profits…

Jul 31

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

‘

“Great profits come from great products and services…”

Seems like a simple enough statement, but what makes a great company??

Simple…

Great people.

Therefore great people make great companies, so it stands to reason if great companies recognise this they will do their utmost to make sure they make greater people out of the ones they already have.

It also stands to reason a great company will be passionate about people because of this knowledge and provide a “loving environment.”

“What’s a loving environment…?” Lets brainstorm for a minute. (Go ahead I’ll wait…) Enough of the waiting here’s a list to contemplate.

Elegant systems people love to use.
Great training which works with the team to provide relevant skills and information for each level they are at.
Great support, especially if you want your people to succeed to the max.
Elegant communication, your people talk, and not just about the weekend sport or other activities, they talk work and they do so with great interest.
The chance to put in, to give, to be an active part of the organisation. Why because they like to achieve, they want to achieve they CRAVE achievement. Why? because it gives them a greater sense of purpose.
Great service. Your people go all out to be exceptional, and new recruits get to model the exceptional behaviour of your best people, if they don’t do it or get it they are out and you search for better people.
Great examples. Your best people are champions and the rest of the team aspire to be like them, yeah? Of course, if not…. keep training them.

To do all this takes time and expertise, you have to make sure you get the expertise and share it. You know what, I don’t care if you have to do courses after hours, work on your systems on weekends, tweak policies or procedures at 2am, do it.

Do it because you have to make sure your business is the best and will stand the test of time and tough business environments (like a recession and or depression.)

Do it because to live in utopia we need utopian thinking and we need it to start somewhere. If you are not thinking utopia, what are you thinking? Mediocre? or something less than great… why?

Okay it requires effort, but if you already have a team put up this list (add to it if you want) and have them provide ways to get the list into action. Then act on the information as soon as possible.

Now look for the gaps, gaps in the attitudes, gaps in the systems, gaps in the budgets, profits, processes, service provision… Then fill the gaps fast, before long your company will be exceptional and not just great.

7 Mistakes new businesses make with IT

Jul 23

Posted by Bren Ryan in Excellence!, IT Dept, Planning, Risk Management, Starting out in business, The Operations Dept | 1 Comment

Any new business likes to get off to a fast cheap start, but it important to keep an eye on the prize and be wary of cutting too many corners that will end up costing time, money and possibly loss of data and even your businesses ability to adapt to a changing business landscape.

So here are the top seven IT mistakes I have seen new businesses make:

POP email

POP email accounts are those email accounts that you get when you sign up with an ISP. Often you get a few free email accounts that you can associate with your company domain. The problem with POP accounts is that they don’t get backed up and leave you with a false sense of security. Ultimately much of your businesses value lies in the contacts that you have, as much as the conversations you’ve had. POP accounts only store the conversations, and in many cases even those are cleared from the server by your email application. So now all of your data is sitting on the one vulnerable hard disk in your computer and unless you know what you are doing, this does not get backed up.

Shop around. For less than $US15 per month you can get a hosted 5GB Exchange mailbox that stores all contacts, calendar and email. It gets backed up each night and it can be made to synchronise contacts and appointments as well as email with your mobile PDA. If you have multiple employees you can share contacts and calendars and email. This can takes office productivity to a whole new level. Outside the office, on the work site, having access to your email, contacts and calendar is fast becoming as important and as expected these days as having a mobile phone was five years ago. From the work site you can place a booking with a client into the Calendar on your PDA and within minutes staff back in your office can see that booking by looking into your calendar on the server. And Vice-Versa, how good is that. No more checking with the office then calling the client back to confirm, not to mention the to and fro reduced if the booking did not suit.

Of course if you lose or break the mobile phone al of the contacts and appointments that are synchronised to the server are not lost. Just get a new phone and set up again and all the contacts and appointments will be synchronised back onto the phone.

OK, setting this up may require some help from an IT consultant but when you factor in the productivity gains and the reduced risk of data loss in the event of failure the gains are worth it for most businesses.

2. Peer to Peer networking

There is a plethora of fantastic cheap devices on the market these days that let you store copious amounts of data on a networked hard disk. If you like you can also share the hard disk of your own computer so that your co-workers can store all of the data in a single location.

But please don’t forget that you need to back that data up and, just as importantly, you need to be able to restore from that backup should the data be accidentally overwritten, corrupted or you just have a good old fashioned disk crash. Most IT professionals don’t like keeping all of the eggs in one basket. So we devise ways of making systems redundant. A ‘real’ server solution will have redundant hard disks, so that should one fail, your data does not go with it, resulting in days of downtime while the system is pieced together from that backup that you regularly do.

Too many small businesses still store scary amounts of critical data on a single hard disk inside a regular workstation (usually the oldest one in the office).

3. Free software

Free software sounds great. And it can be. I am not against it in itself, but with most software it is not the license that will end up costing you the most money, that will actually be a small part of the cost. You need to consider the longer term costs of implementation and running your systems utilising that software. For a small basic single user application that may be fine. But for something that will be implemented across your business to become what we call ‘mission-critical’ you need to consider the longer term implications. How easily can I get outside help to support this system should those who know it move on (key-man risk)? Can I recruit people who know how to use this system, or will I need to train them up? Will updates for the software be available when I come to upgrade the platform on which it runs?

These are some of the questions you need to ask before taking on what may appear to be a cheap solution.

4. Mates Rates advice

It is hard to pass up free advice. However free advice rarely translates into good support. At least not the kind of support you can depend on from a strategic point of view. Your mates may be available after hours and on weekends but if they are holding down a full time job they may not be as accessible as you need them to be. There are also often strategic and technical differences between how IT is setup and run in a small business environment compared to that of larger organisations. There are specific product bundles available from vendors such as Microsoft, Dell, Hewlett Packard, Symantec and many others that facilitate excellent solutions for small business when implemented correctly. However while these bundles may appear to be a collection of products that many IT experts may be familiar with, they often include some additional bells and whistles that allow you to get real leverage with your IT investment. I have seen many implementations Microsoft’s Small Business Server where a so-called expert was unfamiliar with the use of Remote Web Workplace and so had not known to implement this for the business. Yet Remote Web Workplace is one of the core offerings of small business server and one that many administrators of large organisations would give their eye-teeth for. It allows small business workers to connect to any workstation within the office and run all of their applications from a remote location.

So how could this have been over-looked? Remote Web Workplace is not a feature available on ‘big’ business systems, so if your friends work in big business, they may not know about it, or many other things.

Another important function I have seen ‘knowledgeable’ mates overlook is the ability of Microsoft’s Small Business Server to enable BlackBerry type functionality with regular iPhone, Nokia and Windows PDAs. Perhaps the mate thought they would need to buy a BlackBerry server to do all of this, perhaps because the company they work for has one.

5 . Backup-backup-backup and offsite-backups. Then test them.

It makes me cringe to see what some people consider a backup plan.

Too often I have heard people telling a reporter that loosing the house to a fire was bad enough but loosing the family albums and memories was devastating. The rate of business failure after a major IT disaster from which there was no backup is very high. I have seen figures like 80% in the two years following the disaster thrown around.

So I guess lesson one is make a backup of all of the family photos and take them to a location away from the home. And then repeat this regularly. And check that you can access the copies that you have made. Lesson two is to do the same for your business.

6. In-house software / DIY Systems

All too often I see people who believe that their systems and their way of doing things is so special that they must create their own software just to manage this. Accountants probably bare the brunt of this when the new business owner fronts up to them with a box full of receipts and an excel spreadsheet full of fancy macros that nobody except the business owner knows how to use. Or the very very special Access database for managing stock levels and generating very very special reports.

All businesses want to feel that they are unique. But encoding that uniqueness into a software application that can only be modified by one select person can turn out to be a serious strategic mistake when you try to sell the business or when that ‘key-man’ risk is realised because the person who knows the system can no longer maintain it.

Ask yourself how your business will make money. If developing this special piece of software and selling it is not on the list then don’t go there.

7. Lock in.

No deal in IT is so good that you should sign up for more than two years. The market and your business moves too fast for that. What is a great deal today can be serious drain on cash flow in as little as six months from now. So whether it be a mobile phone plan, an internet connection, a PABX system, a server hosting plan or an IT support plan, two years is just too long a commitment to make. If we think a deal is good today, you can be assured that a better deal is just around the corner and if you’ve locked in for a long time you will be regretting the lock in for at least half of that time.

And it is not just the money. Once you’ve locked into a plan you’re often locked into a technology. Then along comes the next best thing and your business is now not as dynamic as you thought it was.

Svend Petersen is the Managing Director of Excelan.

Excelan provides a personalised level of IT support and strategic consulting for small to medium sized organisations in and around the Sydney CBD.

Tags: business, business success, IT, IT Tools, lateral thinking, Risk Management, training

Successful Communication – 4 Key Categories

Jul 19

Posted by Jenny Stilwell in Human Resource Management, People!, Personal Development | 3 Comments

There are four key categories to remember when thinking about whether you are maximising your communication with your target market. Within these categories there are many variations on how a message can be conveyed, or a channel for dialogue opened. However, if you keep in mind the 4 groups, you will always maximise your opportunities for communicating your message.

1. Develop the Information/Message

If you have information you would like to convey to your customers and clients, in how many fundamental ways could this be presented?

Newsletters
PowerPoint presentations
Emails
Web site
Music or message on hold
Company profile documents
Products & services lists
Product specifications
Company stationery
Brochures
Direct mail pieces
Copies of press coverage/press releases
Articles
Invitations
Speeches

Presentation of your message is critical. Please keep some of these considerations in mind:

Always think in terms of your customers’ perspectives. What is interesting and useful to them? Be genuine. If you say you’re going to do something, then do it. If you’re not genuine it will be apparent.
Focus on consistency of presentation, of message, of image, of how you are being perceived by your customer.
Know who your customers are. Don’t use humour which would only appeal to a small group of people, don’t risk using any message which may offend, and always be mindful of different religious and cultural perspectives when appealing to a broader segment of the local or international market.

2. Open the Communication Channel: Events and Networking

This category of communication is ‘up close and personal’ between you and the customer or potential client. The message may be specific, or non-specific relationship building communication. Some options within this category are:

Client lunches
Launch events
Entertainment events
Industry events (exhibitions, conferences etc.)
Association or Institute gatherings
Organised sporting competitions between companies

Again, remember that your clients and customers are typically not all men, or all women, they are not all the same age, they do not all have the same interests, they may not all have families, and their idea of a great time may not be the same as yours.

The point is, learn about your customers as much as you can, so they join in these events willingly and enthusiastically, so everybody gains something from it. Finally, events and networking are about communication, but what will be remembered is what is different, amusing, and interesting. Add value and your message will be remembered.

3. Involvement from your Clients and Customers

Events and networking functions involve your customers at some emotional level and build the relationship you have with them. However, communication that elicits involvement and follow-through communication from your customers is different, in that there is some notion of commitment to do business with you.

Specific tools to communicate with involvement from customers and clients are:

Surveys and questionnaires
New product/service test programs
Writing up testimonials from your customers
Case studies on your customers’ businesses and their relationships with you and your business
Ask customers for feedback on new developments, such as your web site for example.

Inherent in this type of activity is ongoing involvement and relationships. This is the primary objective of successful communication.

4. Follow Through Communication

One-off communication is not enough. One-off communication does not build relationships. A message can be conveyed by communicating it only once, but will it be remembered? How many times have you seen yet another ad on television and not known who the advertiser was because it didn’t register? The message needs to be clear, repeated, and followed up. Ideally it should also be humorous, of interest or value, and have some differentiating factor.

Don’t stop communicating:

thank your clients
send notes of congratulations when appropriate
send information in which they may be interested
send them leads
follow up on your survey
follow up on the new product or service launch
send them a copy of your first newsletter, brochure, etc.
proactively call them once in a while to touch base and ask how they are, and how business is

The cycle must continue in order to be successful. “The little differences make all the difference”.

Tags: business, communication

My Favourite Web tools Pt 2 – Goodsync

Jul 19

Posted by Bren Ryan in Excellence!, Innovation and Creativity, IT Dept, Planning, Risk Management, The Operations Dept | 1 Comment

Last week I told you about Roboform, the stress saving password encryption and saving program. This week i’m looking at Goodsync, Roboform’s first cousin.

As the name would suggest, Goodsync is a syncronisation program. It will syncronise Folders & files on a PC, Network, and the internet.

I use it on a daily basis to back up my most critical files. Everyday, I copy my accounting back up, my CRM data, my clients art files, copies of my quotes and invoices, our procedures manual, my Roboform data, and my quoting program data – a lot right? It is a lot, and frankly, if I was simply making a back up or copying all those files every day, it would take all day!

I also make multiple copies – I have the original files on my mail PC, I have a back copy on a “storage PC” on the work network, and I make a copy to my laptop (so that I have a mobile copy of the file in case of something like a fire at work). That’s how I use it, you could just as easily use a portable hard drive.

The beauty of Goodsync is; it only copies over files that have changed. This means it doesn’t get bogged down copying files that are already there in the back up destination, a big time saver.

First, Goodsync analyses the source files compared to the destination files, after the initial analysis, this takes only a few seconds.

Then Goodsync creates a list for you to check. There are default settings like always forcing the sync one way, or force the newest revision of the file to override the direction of the sync. You can either manually make the decision, or let Goodsync decide for you based on your preferences.

At the click of a button, it copies the right files to the right place super fast – the only limitation of speed is the speed of your connection. My hard wired network syncs faster than it does to my laptop through the wireless router for example. Still, it only take 3-5 minutes per day to back up all my critical files to two different locations.

Goodsync is super easy to use, A few minutes to set up the initial settings, and then once that is done the daily task takes only minutes. Take this link for a quick overview of how Goodsync works . There is also a MAC version of Goodsync, which I haven’t tried yet, but if it’s like anything Apple, it’ll be easy

I haven’t used the portable version, Goosync2go, but i have used the protable version of Roboform, so I have to assume the portable version is every bit as good as the PC version.

Of course, there is a free trial of Goodsync, it has full funcionality, just a few limits on the volume, so give it a go!

Bren

Tags: business, business success, innovation, IT Tools, Risk Management

What are your people doing, working… or?

Jul 12

Posted by Steve Gray in Excellence!, Leadership, People!, Planning | No Comments

Everyone seems busy right… But things are not moving very well, the people are all busy? Should I put another staff member on…

These and a whole bunch of other questions could be bothering you if your business is a bit bigger than a few employees.

You think back to the early days of doing everything yourself, you worked 12 hour days and then some, finally getting some breathing space when you took on some staff. You trained them and you could see great progress but now things seem different. What’s happening?

Perhaps your people have found a comfortable place for themselves and are keeping themselves busy (it makes the day go faster…) and not overly concerned about the effectiveness of things.

You have a meeting with your key people “Blah, Blah Blah!!!” you go on about how the key guys should lead the team, how they should get up noses, rattle the cage so to speak, and for a short while you see some “scared rabbits” run about and things pick up and then fade, now they are all back to busy but not overly effective.

Your method of getting people to do things seemed great at the time, but knowing it failed after a few weeks was disappointing, you feel like you have to watch the team the WHOLE time, and that’s not what you want to do.

The answer…

Take a look, wander about, listen, observe start making mental notes. What’s working, what’s not… and what are they doing to look so busy yet be so ineffective!

Ask yourself…

Are they doing “administrivia” and dragging it out to fill time.
Are they calling suppliers to get useless info for customers who probably won’t buy anyway, or only want a small quantity of a low priced item.
Chatting about ‘garbage’, or doing silly rubbish, which is personal, rather than getting to the tasks, which really need to happen.
Are your management team, managing too much and not leading enough? Are they not in a position to connect with staff due to too much paper work, or other garbage which is really just a waste of time.

Any of these can take the wind out of the sails of your business, but before you call one of those “rant and rave” meetings to put the wind up people (which will just buy you more enemies anyway). Consider a different approach.

(And yes here’s the answer/s…)

Check out if the team has great technology to support them and make the tasks easy to achieve.
Make sure your systems are easy to learn, follow and implement.
Use multitasking to keep them mentally stimulated and able to do various new tasks from time to time.
Chat to them about what works from their point of view, become a “one on one focus group leader” with each person and get REAL information, not the sort that filters up through the ranks and becomes watered down as a result.
Ask what keeps them coming to work, and not just money and holidays.
Coach your management team to do the same, train them to build rapport, not build ramshackle bridges to nowhere.

In all honesty if you set up a great business to begin with, you will probably find it can remain that way, but it may need some of your original passion for the business to shine through, so the results you want to achieve can be very tangible, you just need to have the right things happening in the right way… Now go out there and make YOUR business highly effective and get the people doing more of the right things in the right way. Then and ONLY THEN will you really profit from the business you started out with so passionately.

Tags: business, business women, HR, hr leadership, Leadership, mums in business, People!

Evaluating Your Small Business Strategy

Jul 8

Posted by Bren Ryan in Excellence!, Growth, Innovation and Creativity, Planning, Risk Management, Starting out in business, The Board Room, The Operations Dept | 1 Comment

Countless people set themselves personal goals in life, but in many cases, small business owners don’t do themselves the same favour. Without setting time aside to consider, plan and implement a solid strategy for any business, its success can be often hindered or compromised.

In these tough economic times, owners are struggling to make their business grow, but strangely enough, there is great opportunity for companies to make leaps and bounds while the market is down.

Take a Step Back

Being in the day-to-day running of your business can alter your perception of how effectively it is run. Take the time to look at every facet of your business to gain the most unbiased perspective.

What kind of relationships do you have with suppliers? Is there any way you can leverage the associations you have with them to gain better pricing or additional extras (like longer trading terms to increase cash flow) that they don’t usually provide?

Do employees see their position as a job or a career? One of the most difficult tasks an employer can face is motivating their staff so that they are more productive. Try to introduce creative, cost effective ideas to improve staff morale, which will ultimately allow your business to be more successful in so many different ways – higher customer satisfaction, increased work output, less mistakes and a much nicer place for everyone to work.

What are your sales margins? Taking a realistic look at how much you are making on your products and services is crucial to allowing your business to grow. A small increase in sales margin may not seem like much in isolation, but calculated over a year, this additional profit can make quite a difference to your bottom line.

In many cases, customers will expect to see increases in prices every few years, purely because of inflation. If you do apply increases, be transparent to your valued clientele – it will only reaffirm why they should continue to spend their money with you.

What are your competitors doing? If they are blazing trails in your area or industry, find out why and how. Start to follow their lead and see where you can even improve on their practises. But another, far more powerful way to knock down competition is to find out what they are doing badly. By being exceptionally great at what your competitors do badly, it will soon put you miles in front.

Planning – What to Consider

After all the research has been done, it’s important to spend some time planning how you will turn all of these findings into meaningful actions. There is a fine balance between continuing to maintain a high service level in your business and being able to implement new processes, procedures and projects. Figure out what elements can be immediately implemented into your business and what will take more time and resources. Once you’ve determined this, you can then allocate timelines to these more lengthy projects so as not to interrupt the flow of your business. Many strategies tend to stretch over several years, so make sure you build some level of flexibility in to allow for changes in your business, the economy and the marketplace.

Implementation – Getting Your Hands Dirty

It’s all well and good to research and develop business strategy, but sometimes the hardest part can actually be doing the work involved. The best way to avoid being overwhelmed with implementing the strategy is to break up each task and set key goals and milestones. Once you have completed the task or project successfully, make sure you take the time to look back on what you have done and be constructively critical. If you have an upcoming project of a similar nature, it will allow you to become more efficient in implementing your business strategy.

All in all, developing a business strategy gives you the chance to recognise opportunities and shortcomings that may not have been realised otherwise. While each business can be very different, the foundations of a solid business strategy are ultimately the same and can be applied to most companies, regardless of their service offering or industry.

An article provided to us by one of our site sponsors – NRMA Business Insurance

Tags: economics, employees, implementation, margins, Planning, relationships, suppliers

My favourite web tools. Part 1

Jul 2

Posted by Bren Ryan in Excellence!, Innovation and Creativity, IT Dept, Starting out in business, The Board Room | 2 Comments

This isn’t a long list. In fact it’s only a few. However, they are products that I use every single day, and i’ve actually come to rely heavily on them, so I guess a short list of quality is better than a long list of lower quality, right? This is part 1, part 2 & 3 will follow in the coming weeks.

Part 1 – Roboform.

If you are like me, you have dozens, if not hundreds of log ins and passwords to remember.

I have several websites and blogs to manage and they each have a log in for the blog, one for the forum, one for the admin etc etc, I bank accounts, supplier sites – the list goes on. As of today, I have 212 log ins to various websites, all needing me to remember the URL, the log in name, and the password – yeah, that surprised even me

I also use the web a lot these days, like most of us, for purchasing, researching, enquiring products and services. So i’m constantly filling in forms – Name, address, age, hair colour……. – very time consuming.

About two years ago, I found the very nifty product – Roboform. Roboform is a little bit of software you load straight onto your PC that securely stores all your personal info.

RoboForm’s Key Features are;

So Easy – You remember one password, RoboForm remembers the rest. I suggest you don’t use your beagle’s name, ok?
Saves Time – With ONE CLICK RoboForm goes to a website and logs you in automatically. I can log into any site on the list – no finding the site, no remembering the log in, no remembering the password.
Saves More Time – RoboForm also fills long registration and checkout forms with one click. Roboform will fill in just about any form you find on the web. I save lots of time when signing up for service, newsletter, buying a product, making an enquiry. I’ve found a few it wont work with, like java applet stuff, but even then you can copy and paste faster then you can type it all in.
Secures Your Information – Stores passwords on YOUR computer, protects them with AES encryption. Hey, nothing is bullet proof, but Roboform’s encryption is far stronger than having your browser store your passwords in the cache.
Strengthens Passwords – Generates random passwords that hackers cannot guess. A strong password has, letters (a mix of upper and lower case), symbols, numbers, is min 8 digits long, and is apparently random in appearance. So, a strong password looks like this – 1&xT44B! – a weak password would be – Franklin (your beagle’s name that you use for every password, banking, your blog, your facebook, the lot!) The problem is of course, how do you possibly remember a password like the strong one, let alone remember dozens or hundreds of different ones? Roboform features a password generator that you can set to generate passwords of different length, different types of digits (numbers, upper / lower case text, symbols). It will fill the forms on the fly, and copy the password to you clipboard if the form you are using won’t allow auto fill in (some more secure sites like banks won’t allow auto fill in to stop robots)
Fights Phishing – Phishing is when you get those emails from a bank or PayPal or some such asking you to log in and confirm your details. Often these fake sites look so real that many unsuspecting users will “log in” and hand their name and password to the thieves on a silver platter.Fills passwords only on matching web sites. Just for the record, your bank will NEVER email you and ask you to log in.
Defeats Keyloggers – Somewhere along the line, we have all been infected by a malicious virus. A common threat are keyloggers, simply put, a virus records every keystroke, and send a small text file to the data thief at a pre-determined time. Roboform doesn’t use the keyboard to fill in your passwords, or to fill forms (like credit card forms), so keyloggers are rendered ineffective. You can also use your mouse to fill in the master password, so even that can be kept secure.
Simple to Use – Just download RoboForm and learn as you go. It really is intuitive and easy to use. Even if you are very new to the interweb, you will be Roboforming like a pro in no time.

There are a few other features – you can find more details here – too many for me to detail, but the three above are the ones I use every day. In fact, i’m using it right now. I can quickly and easily skip between different sites. At the moment i’m working from home, so i’m skipping between logging into the work network, Vertical Response, the WordPress log in for this blog, and the admin for www.freepromotips.com.au. Too easy!

The good folks at Robofrom also have a portable version – Roboform2go – for installation onto a usb. You can take that with you and log in on any PC (the portable version doesn’t work on your Mac)

When you buy Roboform, you also get access to the online system, which means you can even log into your account from anywhere without Roboform2go (I find having a USB easier and more convenient myself)

It’s ready to go for PC’s, but they haven’t yet produced a MAC friendly version. I’m told that will come, but for the moment they have created a system utilising the online product, and a java applet that sits in your safari or firefox menu bar (it may work in other browsers, but I don’t know. I only use Safari of Firefox on my Mac)

If you think that sounds good, you can trial it free or buy it here.

That’s my favourite web tool.Part 2 next week – Goodsync.

Bren

Tags: business, business success, business tools, innovation, web security, web tools

Featured forum member

Jul 2

Posted by Bren Ryan in Excellence!, People!, Starting out in business, The Board Room | No Comments

1. How did you get started in business?

I think I got started in business from birth. My Mum and Dad had corner stores and I was taught business skills at an early age. (I can remember balancing the till while in primary school… It was one of the ways we learnt to count).

After school I worked in One Hour Photoshops, working my way to Manager by the time I was 19. In 1995 I was offered a “job” at a lab as manager.. Turned out they wanted someone to buy it, so I did. This led to the expansion to 2 suburban Kodak Express stores. In 2001 someone offered me an offer too good to refuse so I took it ? (I took a year off and then took up a position as the EA to the Managing Director of the No 3 Photographic Supplier in Aus.)

Meanwhile my hubby, Mick, had been working in various companies doing Security Screens, Window installation, Blinds, Awnings etc. In 1998, I convinced him he should go out on his own. This business – Abacus Screens and Security – while successful, it suffered from my lack of time to manage the business side of things. (Advertising not planned, very much RE-active rather than PRO-active).

In 2000, he was offered a job at one of his suppliers so he took it. Lesson 1: ONE business at a time ?

Fast forward to 2005 and we moved from Brisbane to the Sunshine Coast. Mick secured a position at a local screen company. (I am still travelling to Bris 3 days a week). Mick learnt very quickly, the coast was grossly under serviced in the security screen business, so we resurrected Abacus Screens in October 2006

Understanding the problems from “Abacus Mach I” we put a number of things in place up front.

We made sure we had enough money to start. Printing, advertising, good ute, etc etc etc. Also enough “buffer cash” for 3 months wages, just to take the pressure off.
We joined a couple of networking clubs, so we had people to talk to and bounce ideas off.
Mick spent a fair bit of time scoping out who he knew (Lots of his old colleagues have moved to the coast and are now in management and decision making positions with building, window or aluminium companies)

Nearly 2 years down the track and all in going along VERY well.

2. What inspired you to become part of the FBT forum?

Gosh it is soooo long ago now ? From memory I was googling something to do with business and came across FBT. I am a forum junkie and join anything !!! Most though get deleted from my Favourites after 3 months or so when I get bored. So I guess the fact I have been a fairly active member for the past 24 months or so is testimony that the forum is vibrant and above all RELEVANT!!

3. What have been your three biggest business challenges (so far) and how have you overcome them?

Finding staff- As with many communities, we have a skills shortage on the coast. (Hmmm Well maybe not We have a “committed worker shortage”. Talk to many business owners (especially “tradie types” in any coastal community) and , if the surf is pumping, the sickie rate is high ?)
We have overcome this by asking prospective employees LOTS of questions (I asked the forum to give me some questions to ask – Thanks Guys!!) and following up references. My number one telling question with references is “Would you be happy to have “Fred” work for you again?”
Marketing – With my background in retail I have great skills in creating a rapport to keep customers coming back and back. Abacus presents a different scenario wherein, generally, we only see our customers once or twice Overcoming this is an ongoing process. I ask a LOT of questions of similar, non-competing businesses. Eg our local winner of “Young Woman in Business” is in the steel shed business, so I rang her up, took her out for coffee and picked her brain.
Managing Growth – Mick is getting a reputation among builders for being good ? So being able to say NO is difficult. We have learnt to say No gently, “No you can’t have it in 5 days but is 7 ok?” If he delivers in 5 Great!! But at least he doesn’t have to. Having a buffer allows us to outsource the manufacturing if need be.

4. What five tips would you give to a person starting in business?

Know your craft. (It astounds me how many people have NO idea about any part of the business they are in – Often seen in franchise owners)

Learn the basics of book keeping. It is VITALLY important to know the basics of profit and loss and the difference between Gross profit and Nett profit. I see too many people who think they can buy something for $10, sell it for $20 and think they have made $10!!

Work ON the business. Of course you will read that everywhere, but what does it mean? It is the time to do bookwork, time to think of marketing strategies, time to work on staffing, time for networking. You need to MAKE time. If you feel you have no time because you are actually doing the job- get some staff and let them do the job!! If you have staff for 1 day, use that day to work ON your business.

Make sure you (and your family)are healthy. As an employee, it is ok to have a day off to be sick or look after the kids when they are sick. It is much more difficult to do this as a small business. Keep fit and eat well.

Balance family life Keep a diary. USE it. I have been known to schedule family time. But it IS important to block time out in your diary for yourself. Remember that in the overall scheme of life, your kids and family is worth FAR more than any business. Little Billy’s birthday party is infinitely more important than any business meeting. If you already had a meeting with Client A and Client B wanted to meet at the same time, you would reschedule… Family is ALWAYS Client A!!.

5. Is there anything you would like to say about being in business, and or being an active part of learning more from Internet type forums?
Internet forums can be a good source of information and networking. FBT has a great cross section of industries and people who are ready to help. There is no such thing as a silly question!

6. The best part about being in business is…
The journey ?
I like to think of any of our businesses like a baby. They took a year or so of sleepless nights and teething troubles, then they walk all by themselves and eventually don’t need you anymore ? Along the way you need to guide and point them in the right direction, they won’t just grow on their own. Discipline is important and , if you get it right, you raise a healthy self sufficient entity, with a life of its own.

Mick Moynihan & Sue Josephson

Abacus Screens
25/6 Beerburrum Street
DICKY BEACH Qld 4551
Ph 5491 5489
Fax 5439 4125
www.abacusscreens.com.au

Tags: business, business success, business women, Effective Networking, have fun in business, Leadership, mums in business, People!, Planning, small business marketing, women in business

The eco friendly recruiter

Jul 2

Posted by Steve Gray in Human Resource Management, Innovation and Creativity, People! | 1 Comment

When your business is madly intent on hiring staff, they probably do like many others do and follow a standard formula…

Advertise - get responses – sort – send a note back saying “we have received” – Then a “thanks but no thanks” note to the short listed ones… – interview etc… Oh what a hassle.

Some of you will be Thinking cut out the note sending part… “I just ignore the people it’s my business and why should I care”. Sorry to feel you might think this way, however a short letter can at least let the good folks know you do care and respect their time and effort for applying, after all their efforts in your business could make you extra $$.

However if things are done a little differently you could make things a little easier and in the process possibly speed things up.

Recently I saw something, which turned the standard formula slightly on its head. First the company asked for short email responses to a bunch of simple criteria (less paper up front, and it shows they have SOME degree of computer literacy.) Then they replied to the email with the following email letter.

The response letter simply read…. “Thanks for your application, if you are required for an interview we will call you.”

Nothing more to say, no need for a second letter out, no need to say “The standard of applications was high etc.” none of that.

The other thing they did, was not ask for a resume or long responses to a heap of selection criteria… They asked for just short responses in the first instance. If the person then “made the grade” they got a phone call for a brief phone interview.

The good thing about this from my perspective was the way they would have probably caught a heap of people off guard, those who are used to the selection criteria bit… They would have had to think outside the square.

Interesting, they saved paper, they saved time, tested some IT skills and therefore saved money…

Are there other ways we can all recruit staff which will save us time and money and probably show a little creativity to boot? Yes.

Do you have staff? STOP NOW!

Jun 9

Posted by Steve Gray in Health and Safety Dept, Risk Management | 1 Comment

Pay attention people, all hell could break loose with your staff and you may not even know it! Ok I may be exaggerating a little but the thing is you could have a potential problem so stop now and read on…

Here’s the issue, you figure the people you employed will have some common sense and do the right thing in your business, know their skills, apply them well and be a productive part of your business community. But wait, what if you learned they may not have so much common sense after all, don’t feel bad (just yet) many people seem to fall into this category…

The specific issue this time is OHS, lets set a scene to explain why. You explain the OHS system when you employed a person and figure they will remember to let you know if an incident happens, even if it is a minor one or even if it has the possibility of happening. But over time they forget.

Lets go a step further, the staff member in question, twists quickly in the course of doing their job, no lifting of an object… just a twist, lets say to change direction while walking… In an instant they feel some pain in their back, a strain or sprain of some kind.

They think to themselves, “I wasn’t doing anything at the time, and even though I am at work there is nothing to report.” well not true, they have an injury which took place at work, not due to work but AT WORK. Therefore it should be reported. In this case however it wasn’t.

The issue becomes greater as the person decides the next day to take time out to se a Doctor as the pain is worse and needs to be seen to. Their Doctor is busy so they go to another, see a long waiting list and decide to give it a miss, they have missed a day of work and will see if they can sleep it off. The next day they return to work still a little sore from the ordeal.

Chances are it may never turn out to be an issue for the person or the organisation, but what if it did.

Lets say the person does have an issue, and on advice they get legal advice, the solicitor tries to pin down what took place and the OHS records at the business show nothing reported, then they close the book and say “Sorry it’s doubtful there is any case for the company to answer as there are no records of an incident taking place, was there a witness? No, oh well then there is nothing to make your story stick…”

Interesting story, but in real life such a situation can be tragic for the employee if they can not pursue any action, tragic for the company if they lose an employee or end up with one who may be able to only do some of their original duties, which could be tough all round. Or imagine they just spread the word your organisation is lousy for not looking after people, more mud, and some will stick.

The moral here is to keep training and reminding your staff to be highly aware of safety issues, making it a number one priority always, and reporting the simplest thing, actual or potential, which could be a risk to the organisation or a person. Lets hope the subject of our story has no further issues and the sprain gets better soon!

Are you really insured?

May 17

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

Are you really insured?

When business does not go as planned the owner can end up in a serious bind, this can be the case when an event like a storm ruins things, in some cases even wiping out the business. But lets take the idea a bit further… what if you didn’t have private health insurance and you needed medical attention now and not some time in the future when the Government scheme can fit you in? Or you are on a business trip and did not get travel insurance?

In business as in life things can go wrong fairly quickly and people find themselves saying “If only we had…” or “Are you sure we paid that last premium?” The peace of mind they may have once had fades fast. When disaster strikes you want to be sure you covered your bases. Private health insurance exists: to give you a fast personal health service when you need it most and the team at http://hbf.com.au may be one of the providers you turn to for a starting point.

You will have seen news reports of natural disasters tragically affecting lives, and some of you will appreciate the follow on effect a disaster can have on the wider community when the shock of a nasty event subsides. Sure our current medical support services can help out in a crisis (Australia) but when the follow up or specialist services are required you can be at risk if you don’t have private health cover. Imagine if you are overseas and are caught with a medical situation, you want to make sure the travel insurance is in place.

In many communities small businesses make a huge impact on local employment, and the provision of so many necessary services. Not only does a disaster wipe out these things, but the potential income loss for the owner can be huge, good business cover can help out there but on the personal side health cover is often overlooked and it can be at the peril of the business if you are not able to be there to run things.

I guess Insurance is about peace of mind in knowing that should a situation arise where it’s needed it’s there to cover you. For those into business speak, it’s about risk management and finding ways to minimise those risks wether you are here or overseas getting the right cover can make a world of difference.

Perhaps insurance should be seen more like a good friend, often not seen until needed, but, when needed, they are worth their weight in gold. On the books of the business the “expense” of insurance would end up in the liabilities column, but when you need to make a claim you might soon view it as an asset. Your health is all that matters and nowhere does that matter more than when you’re overseas http://hbf.com.au/travel/ can be the answer to your travel insurance needs.

Let’s face it often people pay for the their business, car and home insurance with ease (they are used to that) but their health and travel insurance may be seen as an expense at the time. I’m not sure that would give me peace of mind, how about you?

Remember it’s an investment to make your life easier by giving you peace of mind in knowing you are covered if disaster strikes and you need the support and protection of a good friend!

Good connections

Jun 15

Posted by Steve Gray in Innovation and Creativity, People!, Planning, The Marketing Dept | 1 Comment

One of our guru lads over here is Ross Hill, on his Blog is a great piece of intriguing information I think all businesspeople and educators can learn a lot from.

He starts off talking about games and what makes them addictive… Then he goes on to show the comparison to social media (“aint” that the buzz at the moment) then I figure if you know what makes social media addictive, you could create a business that is addictive for your customers.

Imagine that people addicted to what you have, and they keep coming back to buy more… Yep the old loyal customer routine. Only now (thanks to Ross and others…) we can start to build an understanding of how that happens, so lets do it for business. Oh I mentioned educators as well, in a stale classroom, sit down, shut up, take down these notes… a fresh perspective on what engages people has got to be useful!

I’m going to cut to the chase here… The five central elements of Game Mechanics are:

Collecting things.
Earning Points.
Getting/giving feedback.
Exchanges/Gifting.
User Customization.

In looking at the game mechanics and the social media link up to it there are plenty of things that make these points work, If you ever played pinball, getting the high score was way cool, in the latter day digital gamers world collecting things to give you more power, gifts, tokens etc was way cool too. then in a connected world being able to give feedback via facebook, twitter etc became a big buzz. then they allowed “games” of giving flowers, plants (virtual etc…)

Let’s go across to:

Business…

Collecting things – Tokens in adverts.
Earning points – Buy five things get the sixth one free or at a discount (loyalty card ticked off.)
Getting/giving feedback – Hello – how are you – query form.
Exchanges/gifting – For every $10 you spend we give $1 to charity…
Customisation – if you have an online store they can personalise in some way then that’s useful.

Education…

Collect and bring things for show and tell.
Get points for good behaviour.
Discussing progress – giving feedback on what they liked in class.
Exchanges of information in group sessions
Customising by selecting which type of final assessment device they want to choose.

These are a few examples of possibilities, I’m sure there are plenty more, the thing is making sure you can provide enough to ensure your service is the one they are addicted to.

If you are still not sure about any of this check out Mc Donald’s and think about their happy meals for kids… you get a toy to collect, while the parent is there they probably buy something too, so even just having a single part of the formula in place can be highly valuable. Now put on your thinking caps and come up with a few ways you can use this information to your advantage.

I’m almost excited about the prospect of saying AND… lets add in our target market personality types, motivators and Drivers it would really assist us to be able truly effectively hit them between the eye’s with solid targeted information they want to act on… but perhaps I better leave that for another day… Oh and remember if you need assistance to figure out ways to do this sort of thing chat to your friendly branding expert, they are sure to help.

Tags: business mechanics, business success, creativity, game mechanics, innovation, lateral thinking, loyalty programs, Planning, strategy, The Customer Service Dept

Workplace Bullying Policy

Jun 14

Posted by Steve Gray in Health and Safety Dept, Human Resource Management, Leadership, People!, Planning, Risk Management | 1 Comment

Don’t turn off and stop reading because you are a small business, Don’t stop reading because you believe you have all the bases covered on this one, and just because your people in the HR department say there is no need for such a thing due to no cases of it at this point be wary of that.

Imagine you employ a bright eyed graduate or fresh faced school leaver brimming with interest and potential, then after a few weeks you see them with less of a smile, less of a pep in their step. For most people watching this person they might say, yep the realities of being in a job have kicked in, he he!

That can be the case, but what if they have found their supervisor or a co-worker has given then some grief, a few terse words, a few statements which have impacted on their esteem. This might seem like petty stuff but the impact of this sort of situation can get out of hand very quickly, the worker may feel powerless, in a bind, awkward, berated, useless and so on.

Your business has a duty of care, you have a duty of care and this needs to be stated up front that everyone in the organisation also has a duty of care. Therefore that being the case guidelines need to be in place to clearly out line what actions are taken in situations like this and to spell out some basics as to what might constitute bullying, harassment and other situations which might impact a persons esteem.

Okay so now a bunch of you are saying “Hey the hell do I have to care about a persons esteem? Heck I pay them to do a job, they should do it and put up with the situation, they should harden up, the world is a tough place…”

My view on that is how can you not care about a person you employ… If you are not into caring, avoid being in business. If you don’t care, your customers won’t either and then your staff will soon disappear. Yes it’s that basic, and you need to ensure you have the situation covered or you could be caught out VERY QUICKLY.

So do the right thing and have one ready to implement now, I suggest at the very least you do a search on google and see what comes up, grab one that suits and use it. for a rock solid start try the public service in your country and see what they have you can edit to make it your own. one I looked at recently had a 44 page doc you could download easily enough and it had various examples as well. http://www.apsc.gov.au/ethics/respect.pdf

To finish, imagine this, you are interviewing people for a job, on telling them about the organisation you are able to show them a copy of your bullying policy. It shows you care, it shows you will not tolerate people who don’t care, it shows you want to have happy people enjoying being part of the team, together everyone feels safe and in a organisation which values people, enough said…

Tags: bullying, HR, Leadership, Planning, Risk Management, workplace safety

Basics are basics…

Jun 1

Posted by Steve Gray in Finance, Growth, Leadership, Risk Management, Starting out in business | No Comments

It’s June 2009 the global financial crisis is still happening. Watched a documentary on Chinese businesses going under, huge factories closed down, lots of out of region migrant workers now displaced. Sure this was one province (Guangdong) and particularly one city Dong Guan, so probably not a big cross section to measure by. The show was on SBS Australia’s Dateline (May 31) and showed a range of businesses closed and gutted out.

Here’s a quote from the show “In Guangdong province alone, 60,000 factories have now closed down and millions of migrant workers are searching for work.”

My first thought was what were they making? well it’s interesting the businesses included a printing plant, toy factories, and jewelry manufacturing… My second thought was do they make for the local market or export, export… third question, is the product a need or a want, mainly want.

So it comes down to the basics if the majority of what is produced is not for needs when a downturn comes the wants are dropped first. When an external order from overseas is pulled then the whole thing can collapse quickly. as the local economy is hanging on wants, the failure of one is felt across all.

Learn from this huge scale disaster and make sure you have a balance of income from needs based sources as well as wants based sources. If you have shares in a grocery company Co for example it seems logical that they supply the needs of people, then take your own business think about how you can supply to the needs based customers. Think carefully about this as a form of insurance to ensure you can balance your wants and needs to ensure sustainability.

Getting Marketing to Critical Mass

May 30

Posted by Steve Gray in Planning, Starting out in business, The Marketing Dept | 5 Comments

For businesses starting out, and those who may have just swapped their “marketing person” to someone new, you need to be aware there is a marketing critical mass.

I figure it as the point where the marketing being done has reached a level where a balance has been reached between the income level in the business covers the costs and leaves a profit. It’s the sort of point of satisfaction, knowing your business is getting enough of what it deserves.

To reach this critical mass can be tricky though, at first it’s devices which will probably be around for a long while, like signage on a store, then through to consumables like adverts and business cards. So perhaps you have to look at marketing non consumables (or low consumables) as start up costs, then measure marketing from the consumable start up point.

For the business which has been going a while a swap in marketing people can spell a huge challenge, especially if they are wanting to try new things… what may have been a sensible campaign going along well can be scrapped by the newbie out to impress, oops! For the new business operator sometimes just having enough cash to get to critical mass is a challenge.

Examples, you may have 5000 business cards and y have paid for them, however they are not doing much stuck in your desk drawer, even when you get them out in circulation it does not mean instant cash for your business. The same with adverts, unless there is something to cause the reader to act, then the result can take a while to kick in, in fact many advertisers find it takes 6 or more repeats of an advert to have an effect.

Another factor to marketing effectiveness is a simple one, know that when you advertise a specific product (like car tyres for instance) it requires someone to take note of the advert and then take action, when they require that product, or can see it may be useful to have at some later stage. Therefore if you want people to buy what you have, your advertising needs to be there when they want what you have. In the tyre example people may see an advert for tyres from five different organisations, but none registers until they need or want them.

When your business has it’s marketing sorted out to create a critical mass, you can then “tweak” things to make it perform better. Effective measurement of what’s working is then vital to ensure you know what’s marketing you might want to alter.

Clearly marketing is critical to your businesses success, how you go about getting it to a suitable level should now be easier and not get into a mess. To sove the whole challenge perhaps you should chat to your friendly branding expert who might just be able to help you out.

Tags: critical marketing, marketing success, starting in marketing, starting your marketing campaign, The Marketing Dept

Business is…

May 23

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

There are many types of business primary, secondary etc… but I have just had a thought about other “types” of business and felt it useful to share.

In the most part a business is about creating a device to provide a product or service and make a profit from it, however it goes a bit further than that. I feel it’s important to make a few distinctions.

Job – not a Biz – Turn up – do work – go home – repeat.
Low level Biz Operator – as above – not much scope to get ahead – Some franchises can feel like this.
Low level Biz Owner – Some growth as the biz operator gets some leverage by having staff do the work, with input from the owner.
Mid level Biz Owner – Better growth limited input to the biz as the staff do it all with a manager in place or similar – perhaps develops other businesses or franchises of one business.
Upper level Biz Owner – As previous but developing assets to utilise the growth’s potential.
Top level Biz Owner – Utilises others to do the work, from developing more assets to creating more businesses.

Which level do you want to be at and what will it take to get you there? Notice it’s all about growth and profit leading to leverage, with leverage you can do more. When you learn the skills and mindset required to do this you get to play at a new level each time learning more skills and mindset tweaks to assist you. Note at each level and with more leverage you can assist more people, develop greater security and achieve more.

Happiness – workplace style…

May 19

Posted by Steve Gray in Excellence!, Human Resource Management, Leadership, People! | No Comments

Just for a moment think about your life, do you do things better when you are happy or grumpy/sad? Now think about business, do you prefer to deal with people who are grumpy/sad or happy?

It’s a no brainer really, however there are many people looking to change jobs, move on, move up, move out! Why generally because they are unhappy. As an employer it’s part of your unwritten “duty of care” to provide an environment where staff are happy.

A small family business might seem like a great thing and how you treat family can be quite different from general staff. You might be happy to work at an old desk loaded with irrelevant papers and bits and pieces, but an employee probably will be put off by that.

I guess the moral of this is think about it. Take time to evaluate, if a new employee is due to start next week, make it a major priority to make their starting off in your business fantastic.

Here’s a few reasons why:

Change can be difficult for people, new surrounds new names, new everything! It can take a while to get used to.
Moving jobs means altering routines, wake up times, transport changes, family routines alter.
A new job with different systems can take quite a while to adapt to.
A new role may mean there are changes to who is leading who, this can cause challenges.

So imagine starting them off in the ideal situation…

Start them with half a day’s work, late in a week, so there is little monday rush and weekend panic.
Be their “work buddy” show them where everything is and how things are done.
Check in with them regularly to see what stands out as issue, then aim to resolve them fast.
Make sure all the “paperwork” is sorted for their superannuation and so on, early…
Advise all other staff to wear their name tags more often in that start up phase so the new person does not stress about things like names.

We could make a really long list here (please do!) and I hope you get the idea. Happiness even in a recession is vital to ensure your staff perform to their best ability, perhaps not in the short term but later on when they are up to speed.

Make time to be there for the new recruit and ensure as many things as possible go right for them so they feel at ease.

Are you Yammering?

Apr 22

Posted by Steve Gray in Human Resource Management, Innovation and Creativity, IT Dept, 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!

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.

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”.

Forum down… but not out!

Mar 30

Posted by Steve Gray in IT Dept, Risk Management, The Board Room | No Comments

A huge apology to all who want to view our Business Forum… We have had an issue with a “hacker”, and have to wait for the “rescue squad” to put back the pieces, I guess it will give people a break from their “forum fix” and give them a chance to read the main articles and comment in here!

It makes things hard when on Saturday I handed out a bunch of FBT cards at a business function, rather annoying!

Conservative or smart…

Mar 26

Posted by Steve Gray in Excellence!, Finance, Innovation and Creativity, Planning, Risk Management | No Comments

As more companies go down, and an unrepentant writhing takes place as people follow the sense of fear pervading workplaces, I am left to ask… Were these big companies not smart, or perhaps should they have been conservative?

Ok a boom is a boom, bust is what it says and no one wants to go bust. So how then do you even out the ride and make things settle down into a form of business which can handle the tougher times. Get conservative, get smart.

There is heaps of info on business smarts, same probably for being conservative (chat to your accountant if you don’t follow…) the idea is to put in action plans to ensure you cover your butt. Meaning put some cash away for a rainy day. If you have more than enough then you can invest some of the rainy day money (preferably into things which you can sell and turn back into cash readily.) then as the investments grow you might be in a position to take on some longer term assets which return an income (read rental property)

By taking this sort of stance you make sure your business has a back up plan and a solid foundation to build security with.

I guess it all comes down to the aim of the business, do you aim to be in business for the long haul and reap it’s various rewards, or simply take risks and live in the fast lane for a while… Conservative or smart, perhaps it’s both.

Down up, left right which way & what next!?

Mar 12

Posted by Steve Gray in Finance, Growth, Risk Management | No Comments

Positives and negatives abound in the new found financial meltdown news, some people have lost value but not $$ (Big business CEO’s who find their stock options are “a little short on value”) while others have lost $$ but not value (e.g. work has dropped off for some contractors).

Despite all this the average “Joe” is now fighting to keep their jobs or hoping to get another one where the boss is not giving them grief and so the applications for positions has gone down but the number of applicants has gone up. Strange times call for strange answers…

Ages ago I wrote about a tourist town in New Zealand doing Ok, but what would happen in tough times? they supplied to the “wants” of the world and not the “needs” of the world. This put a few noses out of joint, but unfortunately the minute things went haywire so to did the tourists… bye bye, back another day when things pick up.

It comes down to balance (yeah too easy for me to say huh…) if the overview of the situation is too much one way (providing just wants) then hassles occur… if you provide to just needs then there are no want type situations to be taken advantage of. (imagine a supermarket, which just provided basics and NOTHING else… It equates to all work and no play.

So much for macro economic theory (of which I know little formally) what about Micro? Well the situation is this. You are in charge of the $$ at home and the things under your control, so you had better figure out how to balance things there (strangely similar? yep!)

Basic investing 101 says “Have a balanced portfolio” so you buy shares across a range of areas, resources banking etc… This helps to balance things if one goes up and the others go down, but if the HWOLE share market goes down, stiff luck. What it really means is, have some $$ in shares, some in business, some in Investment properties, some in the bank. In tough times you can shift things about to suit.

For most people the balanced portfolio idea outlined is nice but few have the ability to fund this many investment options. Challenging and frustrating all at once, so this is where a BIGGER picture plan comes into being. If you have just shares what are you saving for? An investment property… or the chance to put profits into the bank. Either way your plan should show you the way.

Lets face it many people have been caught out by the current financial dilemma and many more will feel pain before it’s over, but there are those who have taken a balanced approach and will not be doing things so tough as others. Half their luck. let’s hope in the positive future we can all heed their wisdom and build a sustainable portfolio for long term financial support.

Jobs slashed, businesses fold… NEXT!

Feb 26

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

Pacific Brands Australia announced over 1800 jobs to go in the next 18 months.. jobs to go off shore.

Those who are regulars here will know I have sprouted wistfully about the doom and gloom, however this time I want to take a “positive swipe” at the situation and ignore the nay sayers cutting jobs and propping up the shareholders (or so it might seem).

I have long been a proponent for the Cooperative business model, it has shareholders like most businesses however they generally have a vested interest in the business and provide a “different” backbone or foundation for the business, as opposed to a seemingly “slash and burn” approach of some public organisations.

So I ask…

What if the workers were able to form a cooperative and take over from where their employer has left off.
What if the Company was to utilise the strength of unity of the workers and explore sourcing the goods from a Coop they assist to set up to keep the jobs here and not ship them OS.
What if people were put down as a profit and not as a liability…

Lots to explore, but in the end we let this stuff happen, perhaps it’s time to take a stance, set up some great business models to be able to handle these situations better. After all 1800+ jobs can be a bit much.

Crunch time is nigh…

Feb 18

Posted by Steve Gray in People!, Planning, Risk Management, The Board Room | No Comments

On the news this morning more jobs lost 600 here 400 there and that’s just in Australia… so where to from here?

Well people will pull their heads in then even more slowly let them out, I guess the smart money is on businesses, which provide a need for customers, then there’s those which put a spin on their want type of business so it sounds like people need it. (check out any of the infomercials selling “stuff” on the TV…)

The challenge as I see it, is being able to overcome the time factor in the ongoing “recession” just how long will it take to get beyond the tipping point and back to reality? The last recession we had was in the late 80′s and once revealed I guess it was 9 – 12 months before things bounced back.

During that recession, I was delivering Pizzas and attending my second chunk of Uni. So I was more or less out of the loop so to speak. One thing, which stood out, was, although there were plenty of people doing it tough, there were still people with cash to spare (Most nights of the week our little Pizza store had upwards of five drivers zipping about the burbs delivering $15+ hot and tasty pizzas… ok more luke warm and barely tasty…).

So now we are starting to see the jobs fall, and people panic a little what really happens in the background?

Well, bigger businesses have less exports, then they put off workers in big chunks, that causes the local community those people come from to hiccup… Once previous solid communities reel under the instant burden of a whole bunch of homes coming onto the market, the good people from those homes scramble to find work, relearn, redeploy, retire, relocate or rest… The real estate and share prices take a beating and things stabilise as they find their value.

In the scramble the majority of folks and businesses will be running about screaming “the sky is falling!”, while at the top of the heap, (read top 3 – 10%) a bit of shuffling takes place in their seats, buttons are pushed, memos are sent, meetings are held and a dip in their finances is about all that shows as they adjust the position of their sails, nudge the tiller and head for clearer open water. It seems these businesses have different GPS devices to the rest…

The lesson from the top of the heap is to cover your butt and make sure that during the up times you let your profits run, so in the lean times you work the profit margin hard so it shows it’s true worth in the lean times. The lesson from the bottom of the heap is “PANIC!, push and shove, the fastest and fittest will survive…”

Tough times show the real side of people and businesses I guess, lets just hope there are more of the top of the heap types about, so we can learn from and heed their advice.

Bushfire innovation

Feb 12

Posted by Steve Gray in Innovation and Creativity, Planning, Risk Management | No Comments

For many this might seem like a curious title but I hope it makes sense as you read on.

For many the horror of the Victorian bushfires will be an ongoing battle as they come to terms with personal loss on an unimaginable scale. For those watching from a short distance they are living the horror with some degree of distance from direct involvement but perhaps with some knowledge of friends or relatives affected in some way… Then there are those further way from involvement but still seeing and hearing about the issues those on the “front line” are facing.

Each time a bushfire of any magnitude does it’s thing various changes take place in policies and procedures at various levels of government. in the 1936 fires they created the CFA (Country Fire Authority) then with the Ash Wednesday fires in the 1980′s they got better at disaster and fire management. This time around I feel sure there will be changes yet some of the things that could have been done are really simple and no brainers, let me explain.

In many of the fire areas houses were old and made of timber with metal roofing, over 1,000 of these were burnt to the ground.

Over 800 people have died, having no where to run when they could not fight the fires.

Both of these challenges could have been dealt with.

There are earth houses, these are simply structures cut into a hillside, then a “shape” is formed out of concrete slabs or poured forms with windows across the open slope of the hill, on top they put about 1 metre of dirt to cover the structure. the dirt forms a great insulating layer both from the std elements as well as the extremes of fire.
A few people survived the ravages of the fire by having a cellar or basement to retreat to which was made from concrete and provided protection. Simple structures like a concrete style tank made for this purpose could provide relief similar to a panic room built into some modern homes for security conscious people.

Both of these options do not suit everyone, of course! However they are existing devices which have been proven and could be very useful in the future.

What it boils down to is having the ability to innovate, think creatively and develop a range of options to suit our situation, so living in areas where this level of risk is apparent can be minimised. Perhaps it will provide a business opportunity which can revitalise the building industry as many builders will be kept very busy re building. Hopefully the haste to re build will not force people to build unsustainable structures, which will cause difficulty when the next fire comes along.

and now….

Feb 10

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

Your are in the midst of the economic whatsit… and you are doing what?

perhaps you are planning what to do… Pulling your hair out as prices alter before your eyes, competitors cut their margins to keep afloat, petrol prices go up (again) staff are nervous and looking elsewhere, your partners and or shareholders are asking questions, your accounting team are fudging (oops read working with) your numbers, suppliers want to be paid…. and so forth and so on.

STOP!

Ask this one question… Is it any different (REALLY) to “normal business”, so someone turned up the volume on a few things… Amazing how that makes you think, worry, get nervous/anxious.

As the pressure rises, do you think “Can it get any worse?” Do you feel humbled by the bushfire and flood crisis in Australia thinking so many have lost so much and you are ok… Is all this pushing your threshold to the limit? If it’s not, what will!

Note folks this is the status quo, if it’s not the environment – financial crisis – staffing issues – bushfires – floods – customers pulling their heads in etc… (the list goes on) then it’s something else.

Therefore the resultant writing on the wall is “it’s getting tougher to do business” so you had better have heeded the warnings the business guru’s put out ages ago and innovate. (Read the ability to go left not right, or up not down.)

If you can do that chances are you can make some headway.

We are dumb… USE IT!

Feb 4

Posted by Steve Gray in Growth, Innovation and Creativity, People!, Starting out in business, The Board Room, The Marketing Dept | 1 Comment

Ok.. some of you are… (not you specifically…)

I wanted to raise your interest in a thought I had this morning watching the news, someone did something dumb and I thought “Derrh! what an idiot”, then I started to mentally add up the dumb stuff…

Stop violence against women, great idea, but why not just Stop Violence…
War, probably the dumbest concept of all time…
Teachers stand and deliver to classes with an attention span of two seconds, heck cut the crap give the kids engaging material which causes them to want to be interested.
Cigarettes, no nutritional value, no other value, not even cool anymore… BUT people buy them. I don’t get it, never have, never will, dumb…
Barriers on high bridges to stop suiciders jumping, no biggy put them in NOW! Or give them a trampoline to make it a fun exit… (apologies if that offends).
Transport ticketing systems that cost millions and don’t work, hmm other countries have systems that work, copy them…
Solar panels for power on roofs, umm, hey guys someone start a publicly listed energy Co that wants to put them on the roofs of businesses, let alone houses, the economy of scale makes it useful surely. Could be a way of stimulating the share market again…
Cars that burglars can break into easily still. just set a std guideline that says the car Co’s have to fix the problem now… how long has this been an issue… grr DUMB.
Paperless offices, great idea, simple answer, stop selling printers… then watch people sort out the issue fast.
Empty shops, as long as shops are owned by private enterprise there will be issues. Too many too expensive and in poor order. Too many are running at a loss so they don’t have to pay too much tax, yep that’s why there are so many crap ones about.
Too many grumpy old guys, over fifty, out of work, become grumpy and a burden somehow. No one likes a grumpy person, and too many guys over fifty (oops that’s me too!) have to contend with being redundant and replaced (young kids are cheaper, faster and tech savvy…. grr!) run down… I call it “Death of a Salesman syndrome” (after the play and book of the same name.) The wisdom these guys can have collectively should be used (somehow) and not shelved.
Councils… (I guess that speaks for itself in some ways.) many people whinge about them…
Defence forces (perhaps that should be offence forces) what if they were peace keeping forces that if a hostile situation broke out they could be quickly retrained to shoot etc… a humanitarin force not in combat camoflague.
Water, it’s every where, but not a drop to drink (too salty) but hey we have to import the technology and use up precious power to run a desalination plant… (when we get it) and will it be enough? and hey why not put the water in to the top of the river system so the whole state can benefit… dumb, and why not investigate a solar powered one? Anyone go a prototype of a portable model?
Too much alcohol is causing major punch ups and violence… so stop serving it in ways where people can consume too much.
No power, we are running out of power on hot days to run airconditioners, they still sell heaps of them though… any solar power cells in your area? What about a wind turbine? Heck there are enough power poles, can we have mini turbines to mount atop these?
We have water usage issues, yet they still sell inefficient washing machines, dishwashers etc. DUMB, just sell us the best, hey do that for power too.
Every year thousands of new businesses start up and lose HEAPS of money when they go belly up in a few months… DUMB! Lets come up with ways to set up these start ups so they have the BEST chance of thriving. lets create “thinkubators” to make it easy for them to learn about business, research, get started and supported in the all too important start up phase. heck a stimulus package for businesses like this could have BRILLIANT flow on effects… I guess this means the government ins DUMB for not thinking of it.
$2 shops, heck I can buy all sorts of garbage for next to nothing, do we need it? nope, do we want it? not really does it help the economy? hmm ask people in local manufacturing if it helps them… does it help the businesses in high st anywhere look good? nup… dumb…
Op shops that open in main streets next to or near fashion shops… ooh nothing drags down retail areas more than an op shop. OKAY! they have their place BUT can we have some control please… and why so many…(It’s a sign of the times I guess…) DUMB (perhaps it’s the council for not providing guidelines here.)
Hand done signs on windows of stores, sure Uncle Harry is a dab hand with a brush, but your specials painted by him on the window look like garbage… you saved how much? and made how much? Nup not bright… in fact DUMB.
Bullying… As the economy slips further down the gurgler, Bullies everywhere are able to inflict more pain and hassle on their victims… “they can’t go elsewhere, so they have to put up with me…” (sinister chuckle ensues). Its an OHS ISSUE plan for it, do something and kick their butts.
I need a license for a car but not to be a parent, that makes sense… NOT, DUMB… how many dysfunctional families can the world take! Teacher’s everywhere will be able to tell you the hassles they cause. Simple tip folks, a parent’s key role is to build the child’s self esteem… Does it happen enough… nope.
Welfare organisations, why so many? Surely five admin departments is better than 25… The cost saving surely is worth it. DUMB! “Oh lets help more people… oops no money left… oh what a pity…”

Go on add to the list (in the comments section please.)

BUT figure out ways to make money out of any of these ideas and you might well be sitting on a goldmine…

A thought to finish on… Frank Zappa (musician) in one of his songs loosely said “If we are created in gods image, therefore if we are DUMB then GOD IS DUMB, and maybe even a little ugly on the side…”

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