Happy Australia Day proud Aussie Businesses

We are proud Australians who love to celebrate our day.  If you are a business owner take a moment to consider what “Australia Day” can mean for you  …

 

Amazing customer/client service and relationships.

Unique business advantage which sets you apart from your competitors.

Savvy marketing which gives you the best bang for your buck.

Trained people in the right jobs working together.

Risk management strategies underpinning your success.

Accommodating and compliant policies and procedures which advance your business.

Links with networking partners and suppliers who promote your business and refer easily.

IT and other technology that is cost effective, supports efficient business operations and is not a shackle.

Awesome staff who make your business great.

Decision making processes that are informed but don’t bog things down.

Accolades and testimonials of recognition.

Yielding balance between work and life.

AUSTRALIA DAY    …  got to love Australian Businesses  …  have a good one!

Balanix Solutions – a proud Aussie Business

Are You a Trend Follower?

David Balwin - Business Advisor | Accountant | CPA

I read with vigor information which indicates impacts on businesses and industries in order to stay ahead of the game (or at least in the game!).

IBISWorld’s January 2012 report on “Industries to fly and fall in 2012” indicates that the five growth industries for 2012 are diamond and gemstone mining, motor vehicle manufacturing (interesting day to mention this), online education, biotechnology and online shopping.  The five declining industries in 2012 are listed as iron and steel manufacturing, institutional building construction, cotton ginning, cut flower growing and pulp and paper and paperboard manufacturing.

Of particular interest is that the decrease in pulp, paper and paperboard manufacturing is linked to two of the growth industries – online education and online shopping.

Most online education providers do not use hardcopy textbooks but rather provide resources online.  Further, there is a significant trend by mainstream schools and educational institutions to move to online resources.  IPads, Tablets etc also facilitate online reading which is resulting in the decline of the traditional bookstore, such as Borders, who simply cannot compete with the electronic versions or online store selling (at a far cheaper price).

So if you are considering going into a business or are already in business, what does this type of information mean for you.

The clear message to me is that internet selling/stores will continue to grow significantly at the cost of bricks-and-mortar retail businesses and that these businesses will need to respond to the challenge or run the very real risk of becoming another KODAK type of business (yes, it is not just about books!).  KODAK dominated its industry for decades but eventually failed to meet the new challenges of the digital era.

Further, it is critical that businesses remain alert to the world around them and be able to see (and respond to) emerging trends before they overtake them.

Balanix Solutions – Business Advisory

One Easy Way to Harm Your Brand

Sally Balwin Director, Balanix Solutions

I received a phone call the other day from a person wishing to speak with my Business Partner, David.  “I’m sorry, he is in a meeting” I said.  “Can I help?”  The person advised me they were a HR consultancy business and had spoken to my Partner a month or so ago who discussed with them the fact that we were experiencing recruitment and retention difficulties in our business.  The person on the other end of the phone suggested they could help and was following up to arrange assistance.  After I obtained their name, business name and a contact number, they asked if in fact we were experiencing difficulties.

“No” I said.  “In fact, we are an Accounting and Business Advisory business which has a HR and Recruitment arm”.  “Oh” they laughed,” then you probably don’t need our services”.

Clearly this person had not researched who they were cold calling and also chose to, dare I say, fabricate information in an attempt to establish familiarity and progress things with us.  This strategy and encounter has not left me with a good impression of this business.

Cold calling has its place in the world of marketing strategies.  But like everything we business owners and managers do, we need to make sure it is enhancing our brand and not harming it.

Balanix Recruitment & HR

3”C”s of Better Output

Sally Balwin Director, Balanix Solutions

I recently read a wonderful recount of an episode in an organisation.

An employee was working late one evening when he found the CEO standing in front of a shredder with a piece of paper in his hand.  “Excuse me,” said the CEO, “this is a very confidential and important document, and my PA has gone for the night. Can you make this thing work?”

“Certainly,” said the employee. He turned the machine on, inserted the paper, and pressed the start button.

“Excellent!” said the CEO as his paper disappeared inside the machine. “I just need one copy.”

Errors and re-work cost businesses plenty and yet, many handle the issue by merely venting frustration and complaining.  People make mistakes and, to some extent, making mistakes is a good way to learn.  However, allowing errors and re-work to continue at unacceptable levels results in direct costs to the business, as well as, loss of productivity.

But the 3 “C”s can help on the way to resolving the problem.

1. Correct people in the right job:  Getting the right person for the right job at the right time has enormous benefits for a business.  Making the wrong decision can be stressful, confusing and expensive.  Refer our previous blog on “Who to Employ” to start you on your way.
2. Communicate:  OK, you may have the right people with the right skills doing the right job, however, communication and consultation needs to be facilitated amongst the team.  No one is an island – no employee can work in isolation to the rest of the organisation – keep people informed in relation to business activities; stress the importance of everyone talking and working together to make sure things don’t slip through the cracks or misunderstandings occur; think about just how urgent things are before asking someone not familiar with an aspect of work to help out.
3. Continuously monitor and measure:  Job costing and timesheets are great tools to monitor and measure work and costs.  Monitoring and measuring the time it takes to do work, the materials used etc will provide invaluable information to identify areas prone to error or re-work and enable better practices, policies and procedures to be developed to minimize and/or get rid of these situations.

blanixsolutions.com.au

5 Things to Think about before signing a Lease

David Balwin - Business Advisor | Accountant | CPA

The Retail Shop Leases Act 1994 (Australia) requires prospective lessees or assignees who lease less than five retail establishments in Australia (as at the date of the report) to obtain a Financial Advice Report to be completed by an accountant in accordance with Australian Auditing Standard AUS 904 Engagement to Perform Agreed-Upon Procedures (Corporations Act 2001)

In my experience in providing these reports, here are the top 5 things I notice lessees either do not understand nor realize the potential impact of not getting them clarified upfront.

1. Ensuring that the clause setting out what business can be conducted at the premises is sufficiently broad enough to allow you to undertake any expansion you may have in mind for your business.  I generally prefer to see this as broad as possible in relation to the type of business you intend to run from the premises.
2. Ensure that you fully understand what the rent/lease cost covers, eg, does it include outgoings and if so what outgoings.  Also what other costs will you be liable for under the lease, eg, painting the premises at the end of the lease or restoring changes to the premises back to the original state.
3. Lessors normally hold the lessee responsible for the maintenance of the premises and the lessor for capital expenditure.  Therefore, make sure you take photos of the premises before you move in so that if there is a dispute you can clearly show the state of the premises at the time of entering into the lease.
4. Be clear if the lease is for a period of time (eg 3 years) with an option to extend for an additional period (usually the same length of time) that you understand exactly what your obligations are in terms of advising the lessor of your intention to take up the extension or not.  Many leases state a specific point such as “no later than three months prior to end of the period of lease”.  Failure to comply with this timeframe gives the lessor the right to refuse to extend the lease which could lead to you having to find alternative premises in a very short time frame and go through the process of advising clients etc of the move.
5. Fully understanding the consequences of breaking the lease and what liabilities you will incur in doing so.  Depending upon your circumstances and future plans you may be better taking a 3 year lease with an option to extend another 3 years  rather than a 5 years lease with the option to extend a further five years or vice versa.

Wherever possible it is far better to get things clarified and changed in the original lease than trying to negotiate amendments to the lease at a later stage where you are at a significant disadvantage from a negotiating perspective.

Balanix Solutions Business Advisory

Listen – You Might Hear (5 Tips to Better Customer Relationships)

Sally Balwin Director, Balanix Solutions

One of the shortest distances between success and shut down involves listening – listening to customer wants and needs – listening to competitors’ approaches and changes – listening to learnings of other business owners and trying not to repeat the mistakes – listening to the market environment and staying in front of the ball – and listening for opportunities that may or may not lead somewhere.

Many times we hear information without actually listening to what is really being said.  We interpret what we hear through personal perceptions and filters which can result in the speaker’s message being lost in translation.

To reach the goal of an effective listener:

Be Present:  make a conscious decision to listen. Focus on the speaker and their message and block out all distractions.

Be Involved:  demonstrate interest and encouragement using both verbal and nonverbal cues (eg, prompting the speaker to continue; nodding).

Be Restrained:  exercise patience and suspend judgement about the speaker and what is being said.  Be aware of your personal biases and filters and try to hear what is being said not evaluate it.  Ask for clarification or for more information if necessary without accusing, blaming, debating or demanding.

Connect:  find connections to the speaker’s ideas, intent and what, if anything, they want in return.  Listen for the action the speaker is trying to communicate.

Learn:  be open to new ideas, views and opinions even if they differ to your own.  Explore the possibilities of the new information through asking questions and discussing further with the speaker and with others.

If you listen with engagement and purpose you will hear valuable information for your business.  This information could strengthen your competitive edge and increase your business in the market place.

Balanix Solutions-Business Advisory

4 New Years Business Resolutions

It is that time of the year when we make resolutions for the coming year.  Lose weight – get fitter – drink less – actually use that gym membership we keep paying for – spend more time with the family and friends and so on  …. 

What about New Year Resolutions for your business?  Here’s our top 4 to consider  … 

 1.       I resolve to get on board internet and social media marketing and use them to promote my business.

Marketing research and statistics support that consumers are using the internet to source suppliers and/or do business with those suppliers.  Those who “tweet” “FB” “Blog” and sell their products via the internet are the ones who are capturing greater market presence than those who aren’t.  Where people use to tell one or two others how happy they were with a supplier or service provider over the BBQ and a drink in the past, people are now communicating the same information with hundreds of people in an instance via Facebook, Twitter, Linkedin, Blogs, etc. 

 2.       I resolve to explore selling and providing my products and services over the internet.

Although people are continuing to enjoy the “shopping experience” with on-site shopping/service provision, there is a growing trend to do a lot of this from the comfort of the customer’s office or home.  Regardless of whether you are a supplier of goods or services, customers are looking more to the internet to source their needs.  Cloud capabilities and internet shopping is growing.

 3.       I resolve to review my business practices to see if I can do them more efficiently and/or cost effectively.

With technology changing so rapidly it is important to review how you do business to make sure you are getting the biggest and best bang for your buck.  Could you be doing business more efficiently?  Is the technology you are using the best for now and into the future?  Can you source the technology cheaper (eg, phones)?  Is the way work flows through your business optimal?

 4.       I resolve to support my staff as an asset of my business.

A lot of business owners invest a lot of money in technology and marketing however are irritated with staff management and development.  The thing that separates technology and people is that people come with a brain that can think for itself and experiences, connections, and capabilities when nurtured and fostered to support a business are a significant asset across many areas of the business, not just the area they are employed to do.  For example, computer software is purchased to write letters and another to create spreadsheets and another to do the financial management and another – well you get the gist.  People can do the job they are employed to do as well as market the business, up-sell/cross-sell, referral market, assist with process design, etc.

Happy New year from Balanix Solutions.  We look forward to hearing 2012 was successful and profitable.

www.balanixsolutions.com.au

10 Answers to the interview question: “Do you have any questions”: a lighter look

Sally Balwin Recruitment Consultant, Balanix Solutions

Job interviews can be quite stressful for both the Candidates and the Interviewer.  As the Interviewer, you are coached to ask open questions in order to get candidates to provide information to help with decision making.  At some point in most job interviews, the Interviewer will ask candidates if they have any questions.  Here are ten answers to this question, candidates have provided:

1. “If you were a fruit, what fruit would you be?” Megan Garnett, Articulate Leadership Team, Articulate Communications Inc
2. “What do you want me to do if I cannot walk to work if it’s raining?  Can you pick me up?” Christine Pechstein, Career Coach
3.  “Can we wrap this up fairly quickly?  I have someplace I have to go.”  Bruce Campbell, VP of Marketing, Clare Computer Solutions
4. “What is your company’s policy on Monday absences?”  Campbell
5. “If this doesn’t work out can I call you to go out sometime?”  Christine Bolzan, Founder of Graduate Career
6. “How big do the bonuses really get once you make associate?  I hear it is some serious cash.”  Bolzan
7. “When you do background checks on candidates, do things like public drunkenness arrests come up?” Bolzan
8. “So, how much do they pay you for doing these interviews?”  Jodi R. R. Smith, Mannersmith Etiquette Consulting
9. “Can I bring my bike into the interview with me?  I’m nervous it might get stolen from Reception.” Anon
10. “Can I just phone my Mum to check if there are any questions I should ask?”  Anon

As an interviewer, be prepared!

www.balanixsolutions.com.au/recruitment

10 Bad Money Habits to Kick –Part 4

David Balwin - Business Advisor | Accountant | CPA

Welcome to Part Four of five in which we will look at 10 money habits business owners should make sure are NOT occurring in their business.

Funding Tax liabilities at the last moment.

All business owners are certain of two things  ….  Cashflow will  have ebbs and flows and there is always a tax liability in some shape or form.

Depending on the nature and size of the business various tax obligations and liabilities may apply.  There is company tax, goods and services tax (GST), payroll tax to name but a few.

Unfortunately, some business do not plan for these liabilities and find themselves stressed and unsure where to find the money when the taxman comes knocking.

Like all good business practices, plan the business’s tax obligations and set up a process of putting the money away on an ongoing basis so it is there when payment is due.  If need be, set up specific bank accounts for GST and long term liabilities so the money goes out of sight thereby reducing risk of spending by accident.

Saving what’s left after paying everyone else.

Debts have to be paid.  Businesses need to establish good credit profiles in order to maintain good suppliers and financial arrangements.  With cashflow in and required cashflow out not always dancing in harmony, business owners need to save along the way to ensure adequate funds when needed.  Set a percentage of income to be saved on a regular basis and don’t rely on scraps if and when there maybe some.  Also, manage the payment of bills ensuring they are paid on time but not necessarily the minute they come through the door.  Budgeting and forecasting is another tool to stay on top of cashflow and the financial health of the business.

www.balanixsolutions.com.au

You’ve Got Mail

“You cannot increase the quality of your achievement or performance except to the degree in which you increase your ability to use your time” (Brian Tracy)

Modern Technology  …  isn’t it grand!

Easy, quick access to the information highway  …  communication on demand with many people at the same time no matter where they are around the world  …  others expecting you to respond on demand to email after email after email after email after …..

Ah yes  …  emails!  What to do with emails?  Hmmmm – respond as soon as received (yes that’s the polite thing to do; I mean someone has sent it and wishing to communicate – it should be read immediately) – or maybe, just leave them – there’s too many anyway with most advertising or junk mail.

If your emails are killing you and your productivity, then it’s time to take control of your inbox.

First, set up your mail program to manage as much as possible.  Use the filter capabilities to create rules to redirect mail to folders or directly to the trash.  Also, consider using the “notification of receipt” function.  Some emails are basically information and the sender doesn’t really need a reply but rather just to know you got the email.  Let the system do it for you.

Don’t check or respond to email on demand.  Switch off your mail notification (if you have one).  Responding to mail on demand, can severely interfere with whatever work you may be trying to do, both in terms of time and concentration.  Also, if you receive high volumes of email, continuous notification will just become annoying.

Set aside times in the day when you will check and respond to mail.  You will get a handle on the volume of mail you could expect to receive each day so work into your time management appropriate blocks of time throughout the day to read and respond to mail.  If appropriate to your business, let clients know your policy on responding to emails so they know you are not ignoring their correspondence but rather you value all relationship mechanisms and will devote proper concentration to their email in the allocated times.  This will also let clients know when they are likely to hear from you and so they can get on with their business too.

Also, try not to be distracted by mail in your most productive time of day.  If you are a morning person or your clients are most likely to want you in the morning, leave emails until the afternoon.  Scheduling less demanding tasks such as reading and responding to email to your less than “best” or demanding work time will help you make the best of your working day – and that’s good management.

For better Business Practices call Balanix – we can help!