Business Advice

“The greatest thing in this world is not so much where we stand as in what direction we are moving.” Johann Wolfgang von Goethe It’s hard to keep up appearances in your business when the backend is chaotic and stressful. Successful businesses thrive on the hard work of well-oiled business processes, dedicated employees, excellent communication, continuous innovation and a desire to provide more to customers. All of these depend on how well managed a business is – how effective the management is in steering the business in the right direction. Whether you are the business owner, a customer or a prospective investor, you want to be a part of a business that’s being run smoothly and efficiently. Let’s explore the five groups that can see all the behind the scenes pieces of your business. These are the people who experience the effects of a poorly managed business, which this puts you on the back foot when it comes to driving business growth: STAFF: The first group of people is your staff. What does your business look like from a staff point of view? The more you can get your staff flowing competently and confidently, you will find that they are the very people that will pick up the mission of your business expansion and drive it forward are better than you ever could. Make sure to create a supportive environment where everyone knows what a good job looks like. And when that is done, ensure that work is getting rewarded. CUSTOMERS: The next group of people who are going to see the effects of the backend of your business are your customers. They may not see what's going on in your business filing systems, but they're certainly going to get the effects of how things are run. Make sure your customers experience a consistently positive event when they engage with your business. They should always have the same type of service, receive the same sorts of follow up, and have the same sort of exemplary experience in your business. If they don't, they may not tell you, but they will tell their friends and family or put their reviews online. So make sure that the backend of your business is driving exceptionally positive customer experiences. SERVICE PROVIDERS: The next group of people who are going see the effect of a poorly managed business backend is your service providers. Your suppliers and contracted service providers have the potential to become some of your biggest raving fans and they have the ability to drive your business forward into new growth. If your business doesn't have a good flow when you're dealing with your service providers, that word will spread like wildfire. FAMILY: The fourth group of people to see the effects of the behind the scenes part of your business is your family. If you're going home tired and stressed, worried that you're juggling too many balls in the air because your systems and processes don’t flow, they are going to feel the impact. But conversely, if you are refreshed, and constantly achieving and expanding in a sustainable way, your family will jump on board and celebrate that with you. It's really important to get that behind the scenes aspect of your business set up and running smoothly because you want your family to be advocates for you and your business’s growth. YOU: And finally, the last person is you. You can put on all the smiles in the world when you’re in public, but if your business is a mess behind that veil, deep down you know that things aren't right. It is hugely important that you have a sense of integrity and honour about what’s happening in the engine room of your business. If your business is clean and clear, and it matches the glossy front end of your business, then you know the entire operation is being represented truthfully for everyone to see. If you want to stay ahead of the growth curve in your business, it's really important that the back end of your business matches what's happening in the front. If you want to continue to scale that business through to become something that's bigger than yourself, expanding, multiplying, creating a positive impact in the world, you need to realise that in reality, what’s happening behind the scenes is driving what people see and experience, and not the other way around.   If this article has struck a chord with you, please reach out to Kerry Anne online. She loves hearing about her readers’ businesses and is passionate about helping them to transform their operations into the Freedom Machine they’ve wanted all along. She is dedicated to establishing proven business systems to create team certainty and sustainable expansion which open pathways to new lifestyle choices. http://www.operationverve.com/   

Today one of our major national newspapers is carrying a front-page story about the ongoing energy crisis and the potential economic risks that flow from political plans based around ideology not reality.   Peter Strong, CEO of Council of Small Business Organisations Australia (COSBOA], responded saying; “Business knows that if you have a problem then you must address it with a plan that identifies and manages change and the risks - practically and comprehensively – you can’t stand still. It is time for our political parties to stop pandering to the extreme left and extreme right voices in their ranks – they must let the ‘sensible centre’ majority to be heard.”   “Small business is frustrated and angry – we continue to feel the pain from ever increasing energy prices while farmers and businesses in regional communities face devastating losses from bushfire and floods of increasing severity.”   COSBOA knows that small business people, like all Australians, want an energy system that provides reliable and affordable electricity while reducing GHG emissions. This can be done without destroying jobs and wrecking the Australian economy in the process.   COSBOA will be holding an invite-only Small Business Energy Summit in Melbourne on 20 March to confront this issue head-on. This summit will focus on all challenges and develop a roadmap that is about change management and risk management. The Energy Summit will be working out ways small businesses can take control of their electricity usage and costs, in a way that is both affordable and environmentally responsible.   Mr Strong added, “Many households have voted with their feet by installing rooftop solar panels. Doing this in a small business, operating in a building or shop they don’t necessarily own is harder, but not impossible.”   “And it is not just about coal and renewables. There are major opportunities for Australia to better harness its vast reserves of natural gas to power Australia’s economy with lower carbon emissions, alongside coal and renewables. Yet many State/Territory governments appear to be asleep at the wheel in respect of these opportunities”.   “We are going to assemble a team of partners (political leaders, business leaders – big, medium and small) to develop a practical plan that will work for Australian Businesses.”   “We are delighted that Minister Taylor has agreed to open the forum and we will be inviting the other political leaders in this space to tell us how they could help Australian businesses (of all sizes) take control of their energy costs and responsibly reduce their GHG emissions”.   Mr Strong finally added; “It is past time for action. The time for talk ended years ago.” ____________________________________________________________________ For more information on COSBOA visit cosboa.org.auInterviews with Peter Strong, CEO of COSBOA are available upon request.

If you could sit down with some of the most successful people in business and learn all the lessons of success that they had taken a lifetime to gather. Do you think that would help you to be more successful   What if you could sit down with one hundred of the most successful people who ever lived and learnt their rules, their lessons and their secrets of success? Would that help you be more successful in your life? What if you could sit down over time with more than a thousand highly successful men and women? How about two or three thousand?   Action is Everything   You probably answered spending time with these extremely successful people and learning what they learned to achieve their goals would be a great help to you. The truth is, all this advice and input would do you no good at all unless you took some specific action on what you’ve learned.   If learning about success was all it took to do great things with your life, then your success would be guaranteed. The book stores are full of self-help books, each one loaded with ideas to make you more successful. The fact is however, that all the best advice in the world will only help you if you motivate yourself to take persistent and continuous action in the direction of your goals until you succeed.   The probable result of reading this article has been that you have made some specific decisions about what you’re going to do more of and what you’re going to do less of.    You have set certain goals for yourself in different areas of your life, and you’ve made resolutions that you’re determined to follow through on. The most important question for you now is simply. Will you do what you have resolved to do?   Self-discipline is the Core Quality   The single most important quality for success is self-discipline. Self-discipline means you have the ability within yourself, based on your strength of character and willpower, to do what you should do, when you should do it, whether you feel like it or not.   Character is the ability to follow through after the enthusiasm with which the resolution was made has passed. It’s not what you learn that’s decisive for your future. It’s whether you can apply discipline to yourself to pay the price over and over again until you finally get a result.   You need self-discipline to set your goals and make plans for their accomplishment. You need self-discipline to continually revise and up-grade your plans with new information. You need self-discipline to use your time well and to always concentrate on the one most important task you need to do at this moment.    You need self-discipline to invest in yourself every day, to build yourself up personally and professionally, to learn what you need to learn so as to enjoy the success of which you’re capable.   You need self-discipline to delay gratification, to save your money and organise your finances so you can achieve financial independence during your working lifetime. You need self-discipline to keep your thoughts on your goals and dreams and keep them off your doubts and fears.    You need self-discipline to respond positively and constructively in the face of difficulty.   Persistence Is Self-Discipline in Action   Perhaps the most important demonstration of self-discipline is your level of persistence when the going gets tough. Persistence is self-disciple in action. Persistence is the true measure of individual human character. You persistence is the real measure of your belief in yourself and your ability to succeed.   Each time you persist in the face of adversity and disappointment, you build the habit of persistence. You build pride, power and self-esteem into your character and personality. You become stronger and more resolute. You deepen your levels of self-discipline and personal strength. You develop in yourself the quality of success, the one quality that will carry you forward and over any obstacle.   The Two Essential Qualities   Orison Swett Marden says in his book that “there are two essential requirements for success.    “The first is to get to it, and the second is to stick at it.”   Confucius said, more than four thousand years ago, “Our greatest glory is not in never falling, but rising every time we fall.”   James J. Corbett, one of the first heavyweight boxing champions said “You become a champion by fighting one more round. When things get tough, you fight one more round.”    Yogi Berri the great American baseballer said “It ain`t over till it’s over.” And that it’s never over as long as you continue to persist.   Elbert Hubbard wrote, “There is no failure except in no longer trying. There is no defeat except from within, no really insurmountable barrier save our own inherent weakness of purpose.”   Vince Lombardi said, “It’s not whether you get knocked down. It’s whether you get up again.”   All these successful people have learned how critical the quality of persistence is in achieving greater goals and objectives. Successful men and women are hallmarked by their incredible persistence, their refusal to quit, no matter the circumstances.   The one quality that absolutely guarantees success in business and finance is this indomitable will power and the willingness to stick with it when everything in you wants to stop and rest, or go back and do something else.   Perhaps your greatest asset is simply your ability to keep at it longer than anyone else.   For further info call Bob Lyon on 043 883 0937.

Business plans are not a new concept, most of us have seen them and have a fair (if theoretical) idea of their value. Despite a lot of interest from business owners who seem enthusiastic, what I have seen over the last 15 years is a long way from that enthusiasm. My estimate is that less than five percent ever had a business plan. Gurus and experts love to spruik all sorts of doomsday outcomes from not having a business plan, but business plan / business failure are not the only two, mutually exclusive outcomes. This ridiculous line actually undermines the value of business planning as those who would benefit simply tune out, as they don’t think they’re about to fail. In reality, there is a continuum of outcomes for businesses with and without plans; most small businesses don’t do any kind of planning and haven’t failed. If avoiding failure is not the pinnacle of business planning, what is the point? To me the whole point is about improving the outcome from what would otherwise be done without any kind of planning. Sometimes that means saving the business from oblivion, but not often. Usually, it means making more money, a clearer direction, better engagement, and doing less dumb things. Businesses are very high risk, yet “seeing what happens” is the most common approach. Getting out of operational mode for a short time to decide where you want your business to go gives clarity and certainty for the whole team when they are in-the-trenches every day. Analysing the business also uncovers a lot of problems that business owners may or may not know about: low margins, poor marketing, failing strategy. It’s like looking in the mirror that forces the owner to address reality. A common misconception about business plans is that it’s all about the business plan and the total focus is on creating a polished document. But the real value of a business plan is the process that goes into creating it – the document creates a record of the analysis and the decisions made. We spend 2 to 4 weeks analysing the business, researching the market, creating projections and targets, reviewing the strategy, understanding pricing and margins, understanding the business owner, marketing and human resources. We take the business apart and put it back together again. Outcomes we have seen at The Business Plan Company include a plumbing company that cut out half of their non-profitable business, a pest company that learnt to deal with seasonality, a kitchen company that stopped wasting many thousands on advertising and a consulting company that eliminated bad debts. Even for business owners who have been in business a long time, we challenge the way they think about their business. Most small businesses don’t do business planning; it’s not useful, it’s too hard, too expensive, they don’t need it or even don’t understand it. From what we have seen, a short, sharp, action-oriented business plan can unleash enormous value in a business. If an effective business plan generates more than $2,000 extra profit than not having a plan, why wouldn't you invest that to get the professional help to create one? From the businesses that we have worked with, they generate that value with their eyes closed. For More Information: Warren HarmerEmail: [email protected]: 1300 171 534Website: www.businessplancompany.com.au

  Many small and medium sized businesses experience regular cashflow problems. It is more common than you may think and it becomes a balancing act, or a poorly choreographed juggling attempt. A clear head is the number one ingredient, not yours, your thinking is hampered by stress. You need someone that offers substantial business experience and sound advice. Don’t look at the usual suspects for support. No job can match the business experience you gain in the insolvency sector. Financial Crisis is what we deal with and learn from with every new case. As an insolvency consultant, I see first-hand what can go wrong. I also often get to learn what would have made a difference, but by now it is too late. This is frustrating, knowing so much of financial pain could be eased or avoided altogether. Not all insolvency consultants focus on helping clients avoid insolvency. A1 Debt Assistance does, as I lost my chain of retail stores during the Keating recession. I now help others avoid my mistakes. You need to expand your horizons.  There are a multitude of reasons for your business to experience challenges. Often these are not obvious until the business undergoes a due diligence process. Don’t have your first due diligence as part of the sale of your business. This is likely to turn into the purchaser being able to walk away from the deal. Run your own check, or get help. Address the issues and establish which ones you can fix and which ones you can’t fix. How would this situation look under a new ownership? Can we turn weakness into strength? Is it your personal debt that is dragging down the business? There are solutions and under some circumstances you may be able to go bankrupt and still operate your business. Freeing up cashflow. Be honest when you sell After losing my small chain of 5 retail stores, I ended up in Commercial Real Estate – selling businesses. I was shocked when going through the listings. Many business listings, with substantial asking prices had no more than junk value. The prices reflect the owners financial needs to get out, not the value of the business. Don’t let your business become such a listing. I started to help struggling business owners who had nothing to sell, to turn things around and stay in business or finally be able to sell. Buyers need to know if it’s a basket case and the asking price needs to reflect this. This does not stop you from selling, it stops you from cheating. Don’t ruin someone else in the process. The No-Go zone. Basket Case and over-priced.  The figures must stack up so the buyer can borrow against the business.  A cash buyer is rare. Whenever it seems’ a buyer is ready, the accountant or the bank manager will pull the plug. Due diligence is there for a reason. I never understood why agents would even run with shonky listings. Fix them first and you actually have something to sell. What are your options?  At A1 Debt Assistance we receive calls from business owners ready to enter into some form of insolvency. Often, we help them avoid this. We approach it similar to a due diligence process. Our motivation is to detect the main culprit causing your business problems and develop remedies. A purchaser does not have the same overheads than the current seller. This relates to existing car loans, business loans, over drafts etc – all such figures are called add backs. Running through this process will tell you if you have a business that could be viable to a particular purchaser. It also will determine your asking price. For tax reasons we are encouraged to make business purchases on finance and use the finance costs as write downs. Unfortunately, when the turn over drops, your repayments remain. The tax saving is now killing your business. There are insolvency options that may actually help you, whilst still being able to keep your business. How does this help you to sell your business? People generalise things and overlook the detail. To establish your best sales options for a difficult business, get someone that has the skill to look at the detail. Numbers tell a story, they don’t just add up. Get professional help to decipher the story for your business. Different buyers have different reasons to purchase a business.  Your business may have major flaws, but someone does put value to certain parts. This could be your data base, or a contract that is not viable under your structure. It could well be managed effectively by a larger player. Your store could be in an ideal location, just not for your type of business. Sell the lease to the right business or chain. Once you understand the true selling points, you get a better understanding of who the likely buyer is. Don’t let them know they are your last hope! Now you can create your hit list of targeted buyers. You have approached a competitor and they are interested. Trust me, they will find out how tough it is for you. Their approach will likely be the waiting game. They are not paying, they just wait for you to close the doors and they are on the phone to the landlord – taking over your goodwill for nothing. Why advertising the sale of your business is so important? To avoid the above scenario. Your buyer should fear they could miss out. You could be dealing with multiple buyers. This will give you a much greater chance to sell your business and get the best possible price under the circumstances. Create the balance of supply and demand.   If you need help with your business – feel free to contact me via email [email protected] or visit my website www.a1debtassistance.com.au.

Although bank interest rates are at record lows in Australia, many potential franchisees still can’t raise the finance to acquire a franchise and are increasingly turning to non-bank lenders, particularly their parents and family members. The Franchise Advisory Centre estimates around 10% of new franchisees are now funded or underwritten by family finance, which it terms the Bank of Mum and Dad (BOMAD). BOMAD financing is very different from traditional bank lending. Banks will methodically and unemotionally evaluate a loan application, and will ultimately price their risk based on the security offered by the borrower, and their capacity to service the loan. The security requirement will normally boil down to bricks-and-mortar real estate (usually the borrower’s home], and the servicing requirement will be assessed on the business’ capacity to generate enough cash to repay the loan and meet all its other obligations (as well as pay a reasonable rate of return to the operator). BOMAD financing on the other hand, is often based on emotional, rather than purely financial considerations. If the Bank of Mum and Dad underwrites a loan provided by a bank by giving personal guarantees, or putting their house up for security, they bear secondary risk if the franchise goes bad and the loan is not repaid. However, if the Bank of Mum and Dad is the loan provider themselves, they bear the primary risk if the loan goes bad, which can have a flow-on effect to the relationship between the family members involved. There are a number of advantages and disadvantages of BOMAD financing for franchisors and franchisees. Here are a few: Advantages for franchisors: Access to younger, potentially more talented candidates With Baby Boomers approaching retirement age, more and more franchisees are coming from the ranks of Generation X and Generation Y. Generation X are often mortgaged to the hilt due to the rising property market, so have some real estate equity for security, but often not enough to buy a business. On the other hand, Generation Y can’t afford to enter the property market, so rarely have any real estate equity to offer. However both of these generations bring youth and vigour to franchising and are desirable candidates for franchisors. BOMAD financing may be the only way they can afford to get into business for themselves. Disadvantages for franchisors: The loan is not treated as seriously as bank finance A franchisee risks all manner of adverse consequences if they miss repayments or default on a bank loan. These consequences are often absent for a BOMAD loan, which may not even be documented with a loan agreement between the parties. Therefore if the cost of failure to a franchisee is low, their drive to succeed may also be low. This is not a strong recipe for success and if the franchisee loses money, they may simply treat it as an advance on their inheritance, which might upset the family dynamics for a bit, but is often nowhere near as severe as what will happen if a bank doesn’t get repaid. Mum and Dad might end up running the business If the business underperforms badly, the franchisee’s parents may become so concerned about their investment that they step in to influence the operation of the business, or are forced to take control altogether. This form of reverse inheritance (ie. the kids passing something to their parents) is a nightmare for franchisors, and even though it might be a breach of the franchise agreement, may be tolerated in preference to shutting down the outlet altogether. The parents who end up running the business might never have attended franchise training, or fully understand the operations and culture of the business. Often for the franchisor, this makes a bad situation worse. Advantages for franchisees: Potentially easier access to finance on more favourable terms Borrowing from the Bank of Mum and Dad may not require any securitisation, and may involve other more favourable terms (such as a lower rate of interest) compared to a bank loan. This can make life a lot easier for the franchisee, so long as they treat the loan seriously, which means at the very least they should still prepare a business plan and agree to minimum repayments over a set timeframe just the same as they would need to for a bank. Plus, Mum and Dad as proud (and invested parents) will always be more supportive and interested in the franchisee’s success than a bank. Disadvantages for franchisees: Interfering parents Just as Mum and Dad are proud of their child’s achievements in business (with their money], so too will they offer unsolicited advice, guidance and other assistance that may be counter to the franchisee’s training or intuition, and be far less helpful than intended. Often this unsolicited support will be an unhelpful distraction to the smooth operation of the business, and at other times, it will be extremely useful. The key for the franchisee is to take the rough with the smooth, filter appropriately, and understand that all help offered by parents is generally made with the best of intentions. Lack of proper documentation BOMAD loans are often undocumented, meaning they are not written down but are loosely based on a handshake or mutual understanding. If they are written down anywhere, they are rarely anywhere near the standard required for a bank loan. To eliminate the opportunity for future family arguments over money, BOMAD loans need to be documented via a formal loan agreement between the borrower and lender, indicating the principal to be lent, the term of the loan, the rate of interest to apply, and the consequences of default. Additionally, the parents should amend their wills to acknowledge the loan as an asset of their estate, and outline whether the loan should be offset against any other inheritance due to the child in the event of their passing.  This helps reduce the potential for ugly disputes between siblings when dealing with their parents’ estate, or the risk of an executor calling-in the loan to settle the affairs of the estate. A franchisor would be wise to ensure that any BOMAD-financed franchisee has a proper loan agreement. It may even make it a condition of granting the franchise that it be provided with a copy of the loan agreement to ensure that the franchisee is committed to repaying the loan and that the conditions of the loan are consistent with those of the franchise. The bottom line This is not an exhaustive list of the pros and cons of BOMAD financing, however it does highlight some key considerations for both franchisees and franchisors. BOMAD financing is expected to grow in future and those franchisors who learn how to embrace it whilst managing its associated risks wiill potentially accelerate their growth compared to those who don’t. Jason Gehrke is the director of the Franchise Advisory Centre and has been involved in franchising for more than 25 years at franchisee, franchisor and advisor level.

With time becoming an increasingly scarce commodity, employees are now placing greater value on their own personal time. For businesses to prosper, employers need to pay great attention to employee conditions and remuneration. Flexible working arrangements allow a greater choice of ways for employees to access the necessary time to complete their tasks. This shows that the employer is respecting the value and importance of the employees’ time and life away from work. The most common arrangements to improve work flexibility are job sharing, working some days at home, rostered days off, and making up any time off on other days. The key part of the arrangement is that it must be conditional upon the employee reaching agreed Key Performance Indicators (KPIs) and other performance targets. That way, everyone is better off. Flexible working arrangements are a low-cost exercise that produces a small but long-term return for the employer. Training to improve an employees’ physical and emotional wellbeing increases the employees’ capacity to perform and adapt. Here are some tips for employers to improve employees’ work life balance: Ask your employees what support they would like from you to help their work life balance. Adopt  healthy  eating  and  drinking practices during working hours and business lunches. Be honest, caring, knowledgeable and inspirational. These leadership traits reduce employee work stress and reduce sick leave. Provide ongoing learning and safety sessions that cover a wide variety of topics including work-life balance. Provide  your  employees with opportunities  to participate in physical activity. Walk your talk. Be the example of good health and a healthy life balance. Creating more flexible working conditions gives your employees greater choice on how to use their time by improving their capacity to do more with their working time, enhancing productivity benefits and leading to a healthier balance sheet for the firm. For further information contact Paul St. Clair on 02 9221 4088.

Considering what your business is worth is essential for any business owner in making decisions. But it’s not just good for identifying the purchase price in the event of a sale or acquisition; it can also be used to establish partnership agreements or dissolution, resolve disputes relating to estate and gift taxation or even assist in something as left-field as divorce settlements and proceedings. Most usefully though, as we’ve talked about before, you can use a business valuation to grow your business. In this post we discuss how your business might be worth different amounts depending on how you look at it. Why does the value of a business change? As business valuation is an extremely versatile tool, there are many ways in which a business valuation can be performed. Depending on the way the valuation is conducted, the outcome may change. How do I decide which kind of valuation is right? To decide what method of valuation is right, you need identify the main reasons a valuation is being performed. This idea is known as the 'premise of value'. This is basically the assumptions one has made about where in the business the most value lies and will determine the method of valuation. Assumption one: the value of the business You can make one of two assumptions about the business itself which will determine the focus of the valuation. Is the business worth more in its 'liquidation' (termination, breakdown and sale)? If this were the case, one would choose a valuation method that would focus on the asset value of the business and discount the ability of those assets to generate wealth in the future. Is the business worth more as a 'going concern'. This refers to the assumption that the main value of the business is in its ongoing operation. In this case, one might choose a valuation method that focuses on the return of investment over time. Assumption two: fair value for more than one party If the valuation is being used to determine value for more than one party (for example in a purchase situation, or when a partnership is involved], you need to make an assumption about in relation to the ‘fair value calculation’. Basically, what is going to result in the fairest valuation for all parties. Again, you can make one of two assumptions about this: The business' value is 'in exchange', meaning that the business is most valuable to all parties when considered alone because the individual assets of each party do not confer inequality in the value of the business. The business’ value is 'in use', which refers to the assumption that the business is most valuable when considered in combination with other related assets, for instance specific competitive advantages one party may have over others. A more simple way of valuing your business For those business owners who are simply interested in gaining insight on the 'problem areas' within the business, the valuation method is less important than the ratio analysis. A ratio analysis is a key part of any valuation process, and one that should be done regardless of any other considerations. Essentially this process is where you would look at the books to see what the cash-flow, turnover and profit-margins are. The ratio analysis alongside the assumptions about the premise of value provide deep insight into the inner workings of the business and clarity as to what areas need improvement to increase the outcome value of the valuation. - Andrew Quinn Andrew Quinn is the CEO / Founder of My Business Path, www.mybusinesspath.com.au

Ground rules outlined below can be useful in providing assistance to Purchaser of a Business in finding the right business. 1.  Take Your Time  When buying a business, it is important that purchaser allows for a considerable time (2-4 months) to find an appropriate business. Since buying a business requires a major commitment on purchaser’s part, it is vital that the purchaser takes his/her time and makes an informed decision. 2.  Conduct Industry Research Once the purchaser has decided on the industry in which he/she wants to buy, it is important that the purchaser undertakes relevant industry research considering points such as industry’s performance, no of businesses operating in the industry, main suppliers and customers etc. This would provide purchasers with an increased ability of analysing a business in that particular industry. Information about the industry can be obtained from library, trade magazines, accountants, consultants etc. 3.  Undertake Educational Courses   Undertaking a technical course specific to the industry chosen is a good way of obtaining additional information about a industry and the management issues involved in that industry. 4.  Don’t Buy the First Business Examined Examining a number of businesses that are for sale in their particular chosen industry would give the purchasers a better understanding of certain working aspects of the industry like profitability, staff levels and working hours etc. 5.  Obtain a Second Opinion Purchaser should get a second opinion on the business they find suitable from an individual who is independent of the transaction and also has the relevant industry knowledge like accountants or business valuer in order to make sure that no important details have been overlooked. 6.  Where to Find a Business  Purchaser should make use of the numerous avenues available to them in order to find the right business. Purchaser can look at the following areas for possible businesses to buy. Classified Advertisements Direct Approach Business Brokers Trade Publications Specialised Magazines Internet by Paul J St. Clair, Chartered Accountant and Taxation specialist - ph 02 9221 4088

In this article we’ll get down to the nitty-gritty of how to get going in a difficult economy. When we’re done, you’ll be armed with a creative, industrious, positive attitude in the face of hard times – the same hard times that cripple your competitors. If you’re reading this article in the middle of a difficult economy – and the chances are that you are – it’s vitally important to take careful stock of the psychological and transactional changes going on in both the minds and lives of your market place and in the minds and lives of your competitors. Look at the attitude and actions of your suppliers, vendors and support services. You’ll probably witness the following predictable reactions. Your competitors are feeling battered. Their sales and marketing approaches are generating meager results. They don’t have tried and tested plans in action. And they don’t have a proactive strategy for capitalizing on all things going awry. So typically you’ll see them pulling back and trying to cut costs to maintain a holding pattern. Or they’re redoubling the same ineffectual efforts that didn’t really work during the good times but got masked by the upward force of the economy. So what do you do? Set up an offence and defense – Offensively, you look for gaps, weaknesses and hidden opportunity in all this adversity. And believe me it exists in droves. Defensively, you stop doing anything that isn’t working. Test, monitor and measure your results and you’ll know immediately when something isn’t working and you can stop wasting time and money on it right away. This will help you guard against loss, but you can do better than that. Your next step is to go beyond merely surviving and to begin enacting changes that will ensure your business continues to evolve. What are some of those direct and impactful ways? Well, we’ve talked about the importance of joint ventures so let’s start there. Your first plan of action should be to structure joint ventures with groups who already have access, trust and credible relationships with market segment you want to reach. The key is to move your costs from fixed and speculative to variable, contingent and result certain. But it gets even better. These steps comprise only stage one of your crisis growth strategy. Your entire outlook and modified approach are based on gaining more direct, favorable, predisposed and highly credible access to your market in unconventional (but highly ethical) ways – and these are ways your competitors would never think of. It’s your opportunity to make your product or service stand head and shoulders above the rest. Think about it. When your competitors are too blinded by their own panic to reach out to the market place in a meaningful way, that’s when you can establish yourself as the pre-eminent, most trusted, reliable source whilst everyone you compete against is bleeding red ink. Life Time Value of a Client You can engineer countless performance based deals with other businesses when you are able to make them irresistible propositions. The key to success at structuring no-cost performance deals is to know your allowable cost for acquiring a customer. Most companies don’t analyse what a lead, prospect and converted first time sale really costs them. And until you know that piece of information along with the life time value of the buyer, it’s impossible to make performance based deals with the media and other companies. In a crisis economy when sales are down along with consumer confidence or motivation you need to make offers, propositions and proposals that are irresistible, unbeatable and non-refutable. And in this context especially remember the life time value of your buyers. In any economy the goal is to start the buyer relationship as quickly as possible, because the sooner they buy that first time, the sooner they’ll come back to buy again. So your goal in good times or bad is to lower their resistance, lower the barrier of entry and reduce the hurdle. Make it easy for your prospect to say “Yes.” Penetrate New Markets  In a crisis economy odds are great that your competitors are focusing their attention on the same basic market that you’ve all targeted all along. If everyone else is depending on either their newspaper ads or Yellow Pages to generate business, you can tap into overlooked, undervalued alternative sources. For one thing, there is an economic connection between doing one type of improvement and the incentive to do more. For example, people who remodel a kitchen suddenly see that the rest of the house looks a bit shabby. So they re-carpet and re-paint and re-do the driveway, roof, and bathroom and so on. It’s the same for people who add a pool or spa. They re-do their landscaping, re-envision their garden, and add an extension to their veranda. My point? Well let’s say you’re the contractor remodeling a bathroom. You can go to all the people who do non bathroom remodeling such as kitchen re-modelers, carpet companies, and roofing people and make deals to get their client’s names after their work has been completed. Their business is potentially a huge source of future business for you. What’s next? Look at your basic business – not what you sell, but what you don’t sell that your type of buyer or client needs, wants and will buy in a crisis economy. Most business owners see themselves as being highly specific sellers of a single category of product or service, yet the same people who buy from you also purchase complementary or related products or services before, during and after they buy from you. By adding additional back-end products or services that you can source from quality providers who, like you, are struggling in this crisis economy and will be open and willing to structure very advantageous deals where you offer their products and double, triple or even quadruple your revenue. Once you’ve mastered the art of growing your business regardless of what is going on in the surrounding world, your business will always thrive if you action these ideas. In a downturn, fewer people are taking the steps they would in rosier times. Your competitors are struggling because they possess the mentality that says “No one is buying”. You on the other hand are growing your business because you know that whilst the pie might be smaller, your piece of the pie is getting bigger and bigger. For further information on how your business can benefit from these and other exciting business and marketing tactics call Bob Lyon direct on 043 883 0937 or get your FREE report entitled “How To Sell Your Business At Your Price … And Cause A Stampede Of Prospective Buyers Literally Begging For Your Time” by simply going to  www.betterbusinessreport.com/ab4s1.htm

The Internet is the most powerful force behind making traditional work practices and ‘the office’ less relevant. High speed connectivity and powerful software have the potential to render bus rides, train crushes and coffee queues in order to arrive at the office a thing of the past. Much of this is happening now. Today’s workforce could be the generation that pioneer ‘bleisure’ – a combination of business and leisure which irrevocably blurs the lines between home and work life, and if that happens, then what happens to the office as we currently know it? A recent report by Jones Lang LaSalle showed that within most organisations, staff desks are utilised just 60% of the time, with the other 40% spent in collaboration spaces or out with clients. In this environment people don’t even get a desk to call their own and companies are benefiting from it from needing less office space. Coupled to this is the fact that millennials don’t want to spend their day in an office if they don’t have to. As they seek to balance life style with work style, the office environment may not be the best place to do that. The ‘office’ of the future could be your home, your coffee shop, a library or a public park; and might be required to function in multiple ways as a touch down space, a collaboration space, a space where things can be built, a meeting place and more. As this new model for work emerges, the technology driving this movement forward is becoming more powerful. Technology will soon make it entirely possible to enter the board room for a conference, face to face, with clients and colleagues from around the globe, while you’re still at home. Virtual Reality (VR) goggles can readily provide this capability. The time, cost and stress of business travel will be eliminated. Artificial Intelligence (AI) could take care of most mundane tasks that don’t require emphatic thought processes. Emails will be automatically read and filtered, with only the most important ones being discussed with you. What’s more, your AI device will provide details on each person you meet instantly, informing you of both their personal and professional information. In this world you’ll have the capacity to be more collaborative and innovative than ever before, with the ability to ‘see’ what those in the physical world are doing and communicate with them whenever you need to, including ‘seeing’ what is happening on a project site or in your retail outlet and ‘popping in’ to take care of things without physically being there. You’ll print what you need to work by downloading a design from the cloud and using a 3D printer to manufacture it. Within this scenario, innovating will be more important than ever before. If mundane tasks are taken care of, the challenge to all workers will be to find new ways to add additional value. This will place a greater demand on workers to create more value for customers. Intelligence and innovation will become the ‘natural resource’ that companies must leverage to create competitive advantage. We have seen technology already displace and challenge many blue collar work environments. It would be naïve to think that similar disruption won’t occur to white collar work environments, particularly, when millennials are demanding this new balance. Critically, if we are on the cusp of another workplace revolution, it is important that we contemplate its impact. There is a need for businesses to begin to ponder how the way we work will change; the effects on staff and the need to adjust their resourcing strategies. Uber’isng the office work force is literally just around the corner. Aurecon has launched a new futuristic blog! Called Just Imagine, it provides a glimpse into the future for curious readers, exploring ideas that are probable, possible and for the imagination. This is a copy of a post which originally appeared on Aurecon’s Just Imagine blog. Get access to the latest blog posts as soon as they are published by subscribing to the blog.

Product publicity is the \"secret pathway\" to business success everyone wants. In simple terms, product publicity is a kind of advertising that costs you nothing, yet brings in the orders for you. Regardless of what kind of business you are operating, you should want, and strive for, as much publicity for your business and your products or services, as possible. After all, it’s \"free advertising\" that is essential to the growth of your business. However, your publicity efforts should be well thought out, and pre-planned for maximum results. The first and basic form of obtaining publicity is through what is known as … the press or news release. This is generally a one page story about your business, your product/service or an event/happening related to your business that is about to, or has recently occurred. These publicity stories are generally \"shot-gunned\" to all the various media: local newspapers, radio and TV, and trade publications. Problem number one is getting the people to whom you've sent these publicity stories, to use them, that is, to publish or broadcast them. And this leads us back to the \"right way” of writing them and sending them in. In every case, send a short cover letter addressed to the person you want your material to be considered by. This means that you send your story to the city editor of the newspapers; the news directors of the radio and TV stations; and the managing editors of the various trade publications. It will do you no good what-so-ever, to send your material to the advertising, circulation or business managers - describing how you're a long-time advertiser, subscriber or listener. The most important thing is that you make contact with the person who has the final say as to what is to be published or broadcast, and at the bottom line - this person's use of your material will somehow make him a \"hero\" to his or her readers, viewers or listeners. The cover letter should be a short note. Let’s take the Better Business Report - my regular publication for serious business owners to bring in new customers - as an example. You might send the following note to the editors and news directors of the media in their areas: \"Here's something  that’s new, and for a change, truly helpful, to business people trying to grow their customer base and those wanting to know how to write advertising that sells. Should be of real value - interest - to your readers. Please take a look - any questions, or if you need more info, give me a call at: 043 883 0937.\" Then, of course, you skip about four spaces, type your name, your business name, and your address - sign your name above where you’ve typed it, and staple this note in the upper right hand corner of your news release. So, now you've got a cover letter, and you know who to send it to. Then take it to a near-by quick-print shop and have them print 50 to100 copies. Now you need the actual publicity release, which also must be \"properly\" written if you expect it to be used by the media. Above all else, there's a proper form or style to use, plus the fact that it must be typed, double-spaced, and short - about a half page in total length. You can do it a number of ways, but here's one that’s worked for me: About an inch from the top of the paper, with an inch and a half margin on each side of the paper; from the left hand margin, type in all capital letters: “PRESS RELEASE:” Then, underline these words. Immediately following the colon, but not in all capital letters, put in the date. Always set the date forward by at least one day after the day you intend to mail the release. On the same line, but on the right hand side of the page, and in all capital letters, write the words, FOR FURTHER INFORMATION: Underline this, and immediately below, but not in all capital letters, type your name - your phone number - and your address. Skip a couple of spaces, then in all capital letters - centred between the margins - type a story headline, and underline it. Skip a couple of spaces, and from the left hand margin, all in capital letters, type the words, FOR IMMEDIATE RELEASE: From there on, it's the news or publicity story itself. You can write the headline before the story, and then a story to fit the headline - or the story before the headline, and then a headline to fit the story - either way, it's basically the same as writing a space ad or a sales letter... ... You attract attention and interest with the headline and fill in the details with your story. Here's an example of the headlines I use on publicity blurbs for the “Inside Secrets Of Advertising” home study course: HELP IN GETTING MORE CUSTOMERS... FAST NEW CUSTOMER-GENERATING PUBLICATION FOR SMALL BUSINESS Notice how I continue to sell or involve the editor - His readers are always looking for better ways to make ends meet, and he’s specifically interested as to what our promise involves. He wants his readers to \"think well\" of him for enlightening them with this source of help, so he reads into the story to find out who, what and how. Suffice it to say that your headline, and the story you present to the editor, must sell him on the benefits of your product or service to his readers. Unless it specifically does this, he will not use it. You must sell the first person receiving your materials. Keep this fact uppermost in your mind as you write it. The person you send your press or publicity release to, must quickly see and understand how your product or service will benefit his readers - thereby making him a hero to them - and he must be assured it will do what you promise in your headline. Come right to the point and say your product is lower in price ... or more convenient to use ... or whichever way your product or service is useful to the people in general. It's also a good idea to include a complimentary sample of your product or an opportunity for him to sample your services. Remember, the editors receiving your information are fully aware of your purposes - Free Advertising! They are not the least bit interested in you or your credentials. If you've sold them on the benefits of your business to their readers, and they want background details, they'll call you. That's why you list your telephone number and address. These people are busy people. They have not got the time or the interest in reading about your trials and tribulations or plans for the future. They want only \"a flag\" that alerts them to something new and of probable real interest to their readers. Sell the editor first. Convince him that you've found the better mousetrap. Show him that your product or service - your business -fills a need and/or will interest a large segment of his readers, his viewers or listeners. When an editor uses your publicity release, always follow-up with a short 'thank you' note. On the other hand however, never, ever send a publicity release to an editor and then call or write demanding to know why he didn’t use it, use it as you wrote it, or only gave you a quick mention. Do this once, and that particular media will \"round-file\" any further material received from you, unopened! If your first effort is not used, then you should review the story itself; perhaps write it from a different angle; make sure you` re sending it to the proper person - and try again! As I said, these people are busy, with hundreds of publicity releases passing across their desks every day. They only have so much space or time. Therefore, your material has to stand out and in some way, fit with the information they - the editors - want to pass along to their readers, viewers or listeners.  Regardless of your business, product, or service, you must build your press release - write it - around that particular angle or feature that makes it beneficial or interest to the readers, viewer or listeners of the media you want to run your press release. Without this special ingredient, you're lost before you begin! The timing of your press release is always important. Try to associate your press release with current events in the news. A story on how hard it is for small businesses to survive, carried in the newspapers, on TV and radio, would prompt me to get publicity release out to all the media on the help and opportunity offered by the Hot Tips Advertising Letter! There's another kind of timing also to keep in mind ...Publication deadlines. For best results, always try to time it so your material reaches the editor in time for the Sunday paper. This is because that's when the papers have their greatest circulation; the most space is available; and the people, the most time to read the paper. For articles you'd like to appear in the Sunday paper, you'll generally have to get your release in at least nine days prior to the date of publication. If you're in doubt, call and ask about the deadline date. For further information on how your business can benefit from these and other exciting business and marketing tactics call Bob Lyon direct on 043 883 0937 or get your FREE report entitled “How To Sell Your Business At Your Price … And Cause A Stampede Of Prospective Buyers Literally Begging For Your Time” by simply going to www.betterbusinessreport.com/ab4s1.htm