Announcements

A new, weekly, edition of My Business e-news

Starting next week, My Business e-news will be published weekly.

We're making the change because we want to step up our coverage of business news to make it more timely.

To be completely honest, there's a commcercial side to the decision too - email is becoming a more valuable marketing tool and we need to move with the times.

The change is not compulsory. A few weeks ago we promised we would preseve a fortnighly newsletter for those of you who prefer it. We'll honour that promise.

So if you want to stay with a fortnighly newsletter, click here. Your preference for a fortnightly newsletter will be noted.

If you like the idea of a weekly newsletter, you don't need to do anything.

I look forward to your feedback on the new weekly newsletter.

Simon Sharwood

Editor

My Business

mybusinesseditor@mybusiness.com.au

[ top ]

2011 ActionCOACH My Business awards entry deadline extended to August 31st

The deadline for entries for the 2011 ActionCOACH My Business awards has been extended.

You now have until August 31st to enter the awards. But we really, really need your entry by that day and will be fierce with late entries.

We've already had many entries, including some that use witty youTube videos to re-enforce their points.

Check out this one from Spoilt Rotten Hair and Beauty or the effort from The Cartridge Family.

Your editor's personal favorite at this point cane from Chatterbox Club, a company which clearly remembers The Muppets very fondly.

[ top ]

'Like' My Business and win a book

My Business has a copy of Paul Wallbank's new book, eBu$iness, for the first six people to Like our Facebook Page.

Paul is one of Australia's leading experts on technology and regularly appears on ABC Radio.

The book offers seven steps to online success and covers setting up and using social media, web publishing tools, e-commerce and other online tools for your business or organisation.

Note: We're yet to hear from eight people from our last Facebook giveaway. We wrote to all the winners, so check your Facebook inbox to score your book.

[ top ]

Links

Best of the My Business blogs

The My Business blogging team has been hard at work. Click on the headlines to read their latest efforts.

 

Cashing in on the MasterChef Final
Rockhampton Hairhouse Warehouse franchisees Jason and Jodie Kliese booked a TV ad to air during the MasterChef final. What do you think it cost?

Four ways to detect micro-managing and seven ways to turn around your management style
Micro management can damage your business by keeping you involved in things you should delegate. Paula Maidens explains how to spot a micromanager and - if you are one - has advice on how to adopt a more effective management style.

Tips to use and traps to avoid when negotiating contracts
If you are negotiating a contract, Cvetanka Trpeski from Swaab Attorneys has tips toget a good one, and shares the traps that sometimes snare the unwary.

 

[ top ]

Business News

EXCLUSIVE: Federal government to taxpayer-funded Small Business Superannuation Clearing House promotion

The Federal Government will launch a taxpayer-funded direct mail campaign to promote the Small Business Superannuation Clearing House, with “the vast bulk of small business” to receive information about the service by the end of the year according to Federal Small Business Minister Senator Nick Sherry.

For the full story click here to visit the My Business website.

[ top ]

Westfield, Facebook, team for location marketing

 

Ever since the row over GST imports thresholds broke late in 2010, commentators and online experts have been telling bricks and mortar to do more online in order to win back their customers.

Westfield has now done just that, teaming with Facebook on a new service that offers discounts to shoppers who “check in” to stores in its centres.

Checking in is a function of Facebook that allows you to tell your friends where you are in the real world. The feature relies on GPS features in smartphones and when activated offers a list of nearby locations. Facebook users that choose to check in pick a location which is then shared with their friends

Westfield’s use of the service will see it offer special discounts to shoppers who check-in at its malls, with discounts of up to 30% offered at Angus & Coote and Cotton On stores. The offers will be sent to users only afer they check in from a Westfield property.

“Retail, and particularly the way we can now target shoppers with special deals and discounts, has changed dramatically over the past decade. With tools such as Facebook Check In Deals we’re now able to communicate to our shoppers in relevant and localised ways,” Westfield’s General Manager of Marketing, John Batistich.

[ top ]

For the banks, this crisis may be different

Banking Day (10 Aug.) Financial markets may be superficially exhibiting a degree of stress reminiscent of the later months of 2008, but in reality the credit markets are not functioning badly and Australia’s large banks have succeeded in selling their debt – in reasonable volumes – into offshore markets.

Westpac, with impeccable timing, raised JPY101 billion for five years in Japan’s Samurai bond market last Thursday. The amount raised converts to approximately A$1.2 billion, and the pricing achieved in the Japanese market doesn’t seem too bad, with the fixed-rate tranche yielding just one per cent per annum.

Data from Markit shows that Westpac’s five-year credit default swap (CDS) spreads had been moving in a range of between 125 basis points and 135 basis points over the previous month (as had those for each of the major banks). On the day, the spread was at 130 basis points, but the next day (Friday) it moved out beyond 145 points.

To view full article for BankingDay subscribers

[ top ]

Positioning Tasmania's forest industry for the future

The Tasmanian Government has pledged its commitment to the future of the state’s forest industry.

A statement issued by Bryan Green while he was Acting Premier said the Intergovernmental Agreement between the State and Federal Governments guaranteed that all timber supply contracts would be honoured.

Mr Green said proposed high conservation value reserves would be independently verified by experts before any more forests were protected. He said the agreement was about supporting forest workers and regional communities while positioning the industry for the future.

It provides for $85 million of support to timber workers as part of the $276 million transition package.

Mr Green said the State Government would ensure the forest industry had the security to continue operating through the transition process and long into the future. He said the process had been about ensuring the industry was on a sustainable footing and providing conservation outcomes so decades of forest conflict in Tasmania could be overcome.

Mr Green repeated calls for all sides of the forestry debate to acknowledge the intent of the Intergovernmental Agreement and to continue working towards a lasting solution.

[ top ]

Think tank throws weight behind carbon price package

Research undertaken by a not-for-profit environment body contends that the Federal Government’s carbon price package could take Australia 83% of the way towards achieving its international commitment to reduce greenhouse gas emissions.

The report prepared by ClimateWorks says the package, if properly implemented, would enable the government to meet the emissions target of five per cent below 2000 levels by 2020 through domestic emissions reductions alone.

It says the package has the potential to reduce domestic greenhouse gas emissions by 133 million tonnes per year - more than double the Federal Treasury’s modelling of domestic abatement achievable through the carbon price.

The report says the domestic abatement opportunities are in addition to internationally sourced abatement opportunities. This provides solid evidence for increasing Australia’s 2020 pollution cap, to be considered by the independent Climate Change Authority.

ClimateWorks says achieving the emissions reduction potential of the carbon price package depends on good program design and delivery. It says the complementary measures can more than double what the carbon price would do alone, making their implementation critical to the initiative’s overall success. The report can be accessed here.

[ top ]

Incentive program for renewable energy sector

An Emerging Renewables program has been opened to fund what the Federal Government describes as promising renewable energy technology projects such as geothermal, solar and ocean.

The program – with total funding of $126 million – aims to reduce the cost of new technologies, improve skills across the renewable energy industry and leverage finance from the private sector, as well as state and territory governments.

Geothermal companies will benefit from the new program design with at least one-third of the funding expected to be available to support geothermal energy.

The program provides a streamlined applications process as well as the opportunity for greater collaboration between applicants. It employs a continuously open application model, allowing companies to submit applications as and when they need without arbitrary cut off dates or set funding rounds.

The Australian Centre for Renewable Energy will administer the program until the $3.2 billion Australian Renewable Energy Agency(ARENA) is established.

Minister for Resources and Energy, Martin Ferguson, says opening the program now is important to keep up momentum in the renewable energy sector as the government introduces a price on carbon and establishes ARENA and the $10 billion Clean Energy Finance Corporation.

Further information on the Emerging Renewables Program Information Guide for Applicants is available at www.acre.gov.au

[ top ]

Are 4G mobiles fab or a flop?

 

Telstra has announced a new 4^th generation (4G) mobile network.

Faster download speeds are the headline attraction, as the 4G kit Telstra has chosen can hum along at 100 megabits per second (Mbps). That’s as fast as the wired connection on many older wired office networks and considerably faster than the 12 Mbps advanced as the minimum speed for the NBN. It’s also more than double the 42 Mbps top speed available on Telstra’s NextG today.

That’s the good news.

The less exciting news is that 4G will only work in Sydney, Melbourne and Brisbane, and only, as Telstra has been careful to point out, “within 5km from the GPO.” Telstra has also been very careful not to make any claims about the speed you’ll experience.

To use a 4G network you’ll need a new modem for your computer and Telstra has announced one (pictured) at “$0 upfront on the $49 Telstra Mobile Broadband Standard Plan over 24 months (minimum total cost $1,176) with 7GB included data.”

Should you care?

There’s no reason to queue all night to get your hands on 4G equipment, for a few reasons.

One is that 4G won’t be exempt from the real world performance of wireless networks so there will almost certainly be slow days, dropouts and general weirdness. 4G won’t be exempt from those phenomena, so you’ll almost certainly get a slower connection in the very limited area the carrier will initially cover.

Another is that Telstra will keep its 3G kit going for a good long while yet. It will probably be cheaper and on many occasions will get close to 4G speeds, so if you don’t need blistering connections you can save a few bucks.

A third is that what Telstra is calling 4G doesn’t achieve the speeds that telecommunications nerds say makes for a real 4G network. The international bodies who run this stuff say real 4G will be ten times faster again – one gigabit per second – than the stuff Telstra has announced. (For those who like Acronyms, the stuff Telstra is rolling out uses the 3GPP Long Term Evolution standard. The really fast stuff is called LTE Advanced.)

So what’s the big deal?

It’s a grand achievement for Telstra to be confident it can throw the switch on an upgrade. But for you and I, the 4G network’s currently so small and the likely real-world speed boost will likely be elusive. So mark 4G down as the march of progress in action, rather than an upgrade you have to have.

[ top ]

Events

The Import/Export show

 

[ top ]

Case study

Interview: Sharon Pearson on the importance of market research, customer service and marketing

In 2004, Sharon Pearson founded The Coaching Institute. Since a first student intake of just 9 students, The Coaching Institute has gone on to train over 1560 students, as well as deliver Coaching for Managers training for organisations throughout the world.

In just seven years The Coaching Institute has become the leading provider of coach training in Australia, is Australia’s leading coaching business and the most accredited coaching school in Australasia.

The Coaching Institute was selected as the winner of the 2006 & 2010 Telstra Business Awards, winning the Victorian Micro-business category & Business Women’s Award. As the resident life coach on Channel 10, Sharon appeared regularly on the national show, ’9am with David and Kim’ throughout 2006 offering insights and tips for its viewers.

In this Q&A interview with Alex Pirouz, Sharon Pearson talks about how market research, customer service and innovative marketing strategies helped her build Australia’s biggest coaching institute.

Q: How did you go from cold calling to running Australia’s biggest Coaching Institute?

I learnt about a technique called Relationship Based Marketing, so instead of me going out and chasing clients, I worked out that it was more about getting the right type of clients coming to me.

Q: Can you briefly describe the steps involved in relationship based marketing?

Well, within this marketing method, there are five steps. Step one is all about understanding who my ideal client is; who I really want to work with and who would love to work with me.

Then step two is working out where they all congregate so that I can reach them easily. Step three is then to get in from them with a gift so that they can notice me.

Then step four is all about building a relationship with them over a period of time until they feel comfortable that I am a trusted advisor for them. Once you build trust by providing great value and answering all their questions you then make them an offer, which is the last step.

Q: When looking to purchase a product/service, what do customers look for these days?

I think these day’s people can be quite sceptical, I know I am and most of the people I speak with are. One of the biggest problems of being a marketer is how do you get your product or service in front of someone without yelling at them.

So I think the key thing that a client is wanting is something that is authentic and that is a complete match for a problem they have without them having to think about it.

Clients have every right to be sceptical, but by doing so it makes it very hard for them to find what they are looking for. Clients these days have higher standards then ever before.

 

Q: What form of marketing do you believe is most effective these days, besides Relationship Based Marketing?

I don’t, after investing over $350,000 and eight years of testing every other method possible with very little success, I have come to the conclusion that nothing else works as well as relationship based marketing.

Q: How important is it to conduct market research within your business?

I think the only thing that matters when you start marketing is market research, and I don’t mean the old traditional style of research where you have focus groups and surveys.

I am talking about asking and listening to your clients when they join up with you. Ask them why they purchased from you rather then someone else, what they liked about your service/product, the style and approach of your marketing, etc.

Too many businesses fail because they build and hope that clients will come; whereas if you know exactly who are targeting you will increase your success in marketing to the right demographic.

 

Q: How do you establish the right price for a product/service when launching a new business?

The system is simple: find out what the competitors are charging, find out what they are delivering, what problem they are solving and then find out how to add more value then they are by including more bonuses and charge client market price for it.

Q: If you could offer one piece of advice to any individual who is looking to create a successful marketing campaign in their business, what would that be?

Before you do anything in business, work out why you’re in business. Work out your ideal average day and create a business model around that.

Alex Pirouz is the founder of RIDC Advisory Pty Ltd. A Business and Sales Advisory firm partnering with Australia’s largest and fastest growing companies to further increase their revenue. Visit www.ridcadvisory.com.au for more details.

[ top ]

Feature articles

Online retailers say rivals need to catch up on service, not price

Online retailers say their devotion to customer service is their true advantage, and that if bricks and mortar retailers can respond in kind they’ll be back in the game.

The Productivity Commission’s Draft Report on the “Economic Structure and Performance of the Australian Retail Industry” has won favour from online retailers, who believe its finding that lowering the GST threshold on imports is not feasible highlights the need for traditional retailers to improve customer service, rather than fighting on price.

Phil Leahy, Founder of The Professional eBay & eCommerce Sellers Alliance, said the report is “A good wake up call to traditional bricks and mortar retailers.”

“They find themselves in this position because they have taken a long time to embrace online,” he adds. “A good example of this is the Australian Retailers Association. Up until a couple of years ago they would put out a quarterly press release warning about the dangers of shopping online.”

Lucas McEntee, Managing Director of online retailer OHKI.com.au summed up the opinion of many online retailers by saying “If all the effort that has gone into complaining about the GST by the major retailers was diverted to running their respective businesses better they would have found as solution by now.”

McEntee adds that online retailers don’t win on price alone. “An online business is cheaper to operate and can compete on price, but only to a point,” he says. “We still focus on customer service as we know we will get a better quality customer, willing to pay more and repeating with us on purchase many times over.”

Kellie Byrnes of online retailer Kindred Gifts agrees.

“Take a look at the myriad of comments on blogs and forums, and you'll see that most Australian shoppers are fed up with a lack of service in bricks and mortar stores. If there were able to walk into a store, receive value for money and fabulous service, then the vast majority of consumers wouldn't need to shop elsewhere. Sadly, this has not been the case in many, many retail outlets for a very long time (particularly the large chains, who are the ones complaining the loudest about tax thresholds).”

Craig Reardon of e-commerce consultancy The E Team has similar views.

“Unfortunately the bulk of retailers will not take this decision 'on the chin' and thus continue to practice their 'complain and avoid' approaches to the Web instead of embracing the obvious opportunities it provides them,” he says. “Whilst they are investing their energies into fighting the web and all it represents, their competitors are understanding the 'eChange', working hard to understand how it works and staking their claim on their piece of the online pie.”

The Chamber of Commerce & Industry Queensland has expressed similar views, with Nick Behrens, the body’s General Manager – Advocacy, stating “… retailers need to recognise that loss of trade to overseas retailers is not entirely based on price competitiveness and extends to diversity of the online product range, ease of shopping from the living room and perhaps most importantly timeliness in terms of products arriving at the door.”

Behrens also says traditional retailers need to innovate, and says “ … they will ultimately need to consider investing in their own online shop front infrastructure either directly themselves or through clustering, or alternatively remove the wholesaler from the supply chain and source directly from the manufacturer.”

Behrens and the Australian Retailers Association (ARA) both also praised the Commission’s raising of issues around regulation and landlords’ power. Behrens says the Draft Report highlights “regulation as a significant barrier for retailers,” that advantages larger retailers.

The ARA’s Executive Director Russell Zimmerman says “ … planning and zoning restrictions are propagating the power imbalance between landlords and retailers at the negotiation table” and therefore supports the Draft Report’s recommendation for “…a harmonisation of lease information and nationally consistent model legislation as well as voluntary national code of conduct for shopping centre leases that is enforceable by the ACCC.”

Dissenting voices

But not everyone feels the Draft Report is a wake-up call for traditional retailers and lawmakers.

“Real-world retailers are unwittingly operating free showrooms for online retailers,” says Stefan Sojka of Sydney web design company Cyrius Media Group. “They pay rent, have stock, employ salespeople and do their own marketing so that the public can walk in, discuss, try on, test, touch and feel products (that you can’t do online) then go online and make the purchase, based on price alone.”

This is a very unfair situation. Online retailers are reaping all the benefits by not needing to pay for stock, staff and showrooms, whilst the real-world retailers deal with an ever-increasing stream of non-customers, assisting the online sales process with a real-world shopping experience.”

“Online retailers probably don't even know what a great service the real world retailers are doing. They are just as unwittingly making sales without knowing how much real-world research shopping, fitting and testing the customer has done. If they had to contribute financially to these real-world showrooms, would they? Why would they when they are getting the service for free now? One sector is cashing in, the other is going broke and there is no direct connection between the two businesses.”

“Unless a shift in thinking occurs, where real world shops are seen as showrooms for online shopping and the cost is shared by the online retailers, the real world shopkeepers will suffer greatly.”

Kindred Gifts’ Kellie Byrnes says things aren’t all roses for online retailers either.

“As an Australian online business, we actual have trouble competing with international retailers as well - it's not only brick and mortar stores that are finding the current retail slump very difficult. The costs to ship products to Australia, and the corresponding customs and quarantine costs, are huge.”

“On top of that, Australian wages are high, office space is expensive, and general business costs are high. However, we know that if we work hard to offer something different; make life easy for our customers; offer them fabulous customer service; and keep our pricing at the most competitive levels we can, then Aussie customers will enjoy shopping with us. I honestly believe that for the most part, Australian consumers would much rather shop locally if the convenience, customer service, range and value for money are there.”

Byrnes also says all retailers need to be pragmatic.

“At Kindred Gifts we import a lot of products into Australia ourselves, an d are now also distributing many brands, and we know for a fact that we simply have to compete on price with international pricing. While this means a smaller margin on our products, we understand that we made the choice to be in business, and we have chosen the type of business we're in, so we have to face the conditions that come with doing that. While we could choose to go down the path that many other distributors have, and set retail prices at ridiculous levels in Australia just because we think we can get away with it, we know that this isn't feasible - or ethical - for business in the current climate.”

[ top ]

Systemise or capsize

You know you have a winner: your business is expanding, competitors are copying you and you’ve ideas that will take it even further and your investors are smiling.

For sure there’s plenty of challenges too. Hiccups and unexpected blockages are normal in any business …

But you’ve noticed that these seem to be happening more and more frequently. You’re being diverted into crisis management and putting out fires … Dealing with issues caused by, amongst other things; problems with making deadlines; the quality of your product/service; late delivery from suppliers, or a staff member who just isn’t up to the job.

You didn’t have much time to yourself before but you believed that as you emerged from ‘start up’, things would get easier and you’d have more control …. However it’s not turning out that way.

Ask yourself these hard questions about the possible reasons for the situation you are in:

1. Is your business running as efficiently as you would like it to?

2. Was there a job description given to that new staff member and were the objectives & expectations for the role clearly articulated to them?

3. Are there documents that explain the critical steps and standards to be followed in the processes in your business?

4. Are you confident that your processes can be repeated to the same standard by everyone in your team?

5. Is there an induction & training program in place for your staff?

6. Is there a way of monitoring and ensuring quality in your business?

7. Are your policies (eg performance management, OH&S, etiquette etc) documented and available to your staff?

8. Is it clear to your staff who is responsible for what and what they can expect from each other?

9. Is the operational side of your business well organised i.e. templates, filing systems and document management processes in place?

10. Is there a structured approach to recruiting staff?

If the answer to the majority of the questions above is “no”, you may be one of the many business owners that would be well advised to spend some time and money in implementing systems in your business. We are not talking about IT systems here, though they definitely play a part, we are talking about the day to day running of your business as it relates to your people and the way the work flows into and out of your business. It is not uncommon for this to be an area that falls behind as a business grows ... After all, there’s a limited number of hours in each day and the business owner is often an entrepreneur with great skills and passion for marketing and selling. Implementing systems isn’t necessarily a natural strength.

If the warning signs are there – your business is running you, the business relies on you to function, you are fighting fires, you wouldn’t be able to attract more investment for expansion or sell your business without you in it – you may be in danger of capsizing. Creating systems may not be your passion or your skillset – but don’t let that prevent you from taking action. There are specialists available who can do this for you …. The money spent will be returned to you through higher productivity, lower staff turnover, better qualified staff, lower stress levels, greater personal empowerment, more time and most importantly the increased value of your business.

Ann Quarmby is a specialist in business operations management and through her business, Boss-Plus Professionals, offers businesses access to skills and templates for systemising their businesses.

[ top ]