Aussie Painting Contractor February 2015

Contractor or Employee What’s the difference?

Avoiding the

“Salesman Disease” MATES Training Stopping Suicide

Getting Back to Basics Six Real Estate

Photoshoot Rules

www.aussiepaintersnetwork.com.au

From the Editor EDITOR

Hey all, What an amazing start to the New Year!! The online training resources developed by the National Institute of Painting and Decorating are now being used by students nationally with almost 40 in Qld alone working in the system already. There is little doubt that this is the way forward for training in the future.

The online resources can be used by the students to study painting processes over and over if they wish, instead of watching a trainer demonstrate once then trying to replicate it. The face to face training is done onsite, one on one, with highly experienced trainers.

The industry is facing great change and challenges this year; some positive, some not. Firstly, there has already been the ill conceived major licensing scrapping in the construction industry in New South Wales, which we are endeavouring to have reconsidered. We have just heard that the Victorian Building Authority are seeking input from industry stake-holders for the revision of building regulations, evaluated every 10 years. We would like to hear from readers in Victoria about what they think should occur with regard to licencing in their state; how would you like us to respond to the review? We are of the belief that licencing is a great thing for our industry it will assist in better quality for the end consumer.

This month we welcome Simon Clayer from Dundas Lawyers with his perspective on the difference between a “Contractor and Employee”, we are asked on a weekly basis to explain the rules and Simon has addressed the nuances, as well as the penalties involved.

If you are looking for more information on anything to assist you in your painting business contact us.

Happy Painting!

Nigel Gorman

nigel@aussiepaintersnetwork.com.au

07 3555 8010

Nigel Gorman EXECUTIVE EDITOR Caroline Miall CONTRIBUTORS • Anne-Maree Russell • Caroline Miall • Jennie Gorman • Jim Baker • Justin Barlow • Leo Babauta • Monroe Porter • Nigel Gorman • Robert Bauman • Simon Clayer

GRAPHIC DESIGNER J. Anne Delgado

Contents Page 06 Contractor or Employee...

What’s the difference?

Page 11

‘Keep the Customer Satisfied’

Page 12

What are the thorns in our sides?

Page 15

Avoiding the “Salesman Disease”

Page 19

10 Tips for Start Up Businesses

Page 20

The Contentment Habit

Page 25

MATES Training Stopping Suicide

Page 26

5 Critical Numbers for Business

Page 29

Orange Painting

Page 30

Getting Back to Basics

Page 33 Try Queensland for the Best Paid Tradesmen Page 34 NSW Licencing Changes Now in Effect Page 38

Six Real Estate Photoshoot Rules That I Will Now Live

Page 40

The Industry Idiots

Page 41

Important Contacts

Opinions and viewpoints expressed in the Aussie Painting Contractor Magazine do not necessarily represent those of the editor, staff or publisher or any Aussie Painters Network’s staff or related parties. The publisher, Aussie Painters Network and Aussie Painting Contractor Magazine personnel are not liable for any mistake, misprint or omission. Information contained in the Aussie Painting Contractor Magazine is intended to inform and illustrate and should not be taken as financial, legal or accounting advice. You should seek professional advice before making business related decisions. We are not liable for any losses you may incur directly or indirectly as a result of reading Aussie Painting Contractor Magazine. Reproduction of any material or contents of the magazine without written permission from the publisher is strictly prohibited.

Just-In!!

It’s been a fantastic start to working here at Aussie Painters Network. How things can change in such a short time!

Welcome to February’s edition. I Hope everyone had a happy and safe beginning to the New Year. APN has begun 2015 in a big way. Starting late last year in the avenue of education, we are now working very closely with Face to Face Training to provide services to the painting and decorating industry, for apprentices and Recognised Prior Learning candidates. Our approach seems to be ticking a whole lot of boxes for both employers and apprentices.

The Aussie Painting Contractor has made its way via email to thousands of painters and decorators and its stakeholders to all corners of Australia and overseas. Feedback just gets better as the magazine continues to inform us all on current and relevant changes to industry, stories, products and services.

After talking with many painters over the last month, it seems there’s a lot of employers receiving the eMag and emails; but a lot of employees, apprentices and subbies are missing out.

Help us keep the industry informed; if you have staff who’d like to get our mag, please email their details to us and we’ll add them. They can unsubscribe at any time.

You are probably aware we are also taking on the challenge to the new licensing laws in NSW in representation of the hundreds of painters who have voiced their concern. The painting and decorating industry is a highly skilled finishing trade within the construction industry. I urge all readers to support APN’s online petition to protect the integrity of our industry and the wider community. The government’s lack of consultation with industry prior to implementation is possibly the most concerning part of the issue. It shows little understanding of the potential impact on the community, or to the professionalism of the industry. These decisions can effect so many people’s lives within our community. We need more signatures for action.

See more and sign at: https://www.communityrun.org/petitions/protect-nsw-public-from-lead-paint-and-asbestos Let us know what you think.

Justin Barlow 07 3555 8010 / 0433 724 794 justin@aussiepaintersnetwork.com.au

Contractor or Employee...

WHAT’S THE DIFFERENCE?

Given the ups and downs of work in our industry, independent contracting is common and is preferable for some workers due to greater flexibility, freedom and earning potential.

The contractual relationship between an employer and employee is often called a Contract of Service. In contrast, the contractual relationship between a business and contractor is referred to as a Contract for Services.

Unfortunately this can be a very expensive mistake for A person engaged under a Contract for businesses if the worker should have been an employee.

To help clarify the difference between a contractor and Services typically: an employee, we have asked Simon Clayer, Practice Leader for Employment and Industrial Relations at • decides on how to do the work and what expertise is needed; Dundas Lawyers to explain.

• has the power to delegate work to others; The answer to this question is often not straightfor- • works for a set period of time or on a specific project; ward. To correctly determine whether a worker is an • works on one off occasions rather than on a regular basis; employee or contractor, we need to look at the whole • submits an invoice for work completed; working arrangement including the specific terms and • gets paid an agreed contract price once a particular result is produced or project is completed; conditions under which the work is performed.

• pays their own super, tax and GST; There are a number of factors or criteria which must be • has their own insurance; considered. No one factor alone will determine whether • does not get paid leave; the worker is a contractor or an employee. Instead, we • provides their own materials, plant and equipment; must consider all factors in order to reach a conclusion. • can work for others without the business’s permission; • is personally responsible for the defects in their work.

Contract of Service or Contract for Services

6 | Aussie Painters Network

In contrast, when taking into account other factors, a person employed under a Contract of Service would: • work under the employer’s direction on an ongoing basis; • work set hours; • not carry any financial risk; • have their income tax deducted; • be required to wear a uniform; • be entitled to super; and • be entitled to receive paid leave, such as annual leave, sick leave and long service leave.

law it is held to be an employment relationship.

• penalties and charges, including: o PAYG withholding penalty for not meeting their PAYG withholding obligations; o super guarantee charge (for not meeting their super obligations).

Sham contracting is not simply ‘mischaracterising’ a person as a contractor rather than an employee – it involves a deliberate or reckless intention to treat an employee as a The worker may also have claims for payment of employment entitlements contractor. such as: If a worker believes he or she is • accrued annual leave; working under a sham contract, • personal/carer’s leave (if for example, the person was abthey can lodge a claim with the Fair sent because they were sick and not Work Commission, with the Courts otherwise paid because they were not What this essentially means is an determining the outcome. If the providing services on that day); employee works in your business Courts find a person who was en• long service leave; and is part of your business, where- gaged as a contractor is an employas a contractor is running their own ee, the business may be liable for a • allowances; business for profit. maximum penalty of $51,000 per • penalty rates or; • overtime. contravention.

What are the consequences if you get it wrong?

Do not assume that because a worker has an ABN and provides invoices for their services that the worker is a contractor.

Under Fair Work Act 2009 (the Act) it is illegal for an employer to misrepresent an employment relationship, or employment offer, as an independent contracting arrangement.

It is illegal to dismiss, or threaten to dismiss, an employee with the main purpose of re-hiring that person as a contractor to do much the same work.

Fair Work Inspectors may also apply to the courts to grant an injunction or an interim injunction to prevent an employer from dismissing an employee for the purpose of engaging them as an independent contractor.

This is called SHAM CONTRACTING Courts can also make other orders and is sometimes deliberately done to have the employee reinstated or by an employer to avoid employee compensated. entitlement responsibilities. It may also be mistakenly done by employers In addition, the employer may be liwho do not understand their legal able to pay the Australian Taxation obligations.

Office the following: • superannuation contributions on True sham contracting arrangements behalf of the person; are rare: the more common scenario • tax which the business should is where an employer tends to create have withheld from the a contractor relationship, however at payments made to the person;

Exemption If the court finds the worker should have been engaged as an employee, the employer may be able to avoid being held liable for sham contracting if it can prove that, when the representation was made to the worker, the employer: • did not know; and: • was not reckless as to whether the contractual relationship was an employment relationship.

The employer will need to demonstrate (through the decision makers) that it genuinely believed that the arrangements were legitimate contractor arrangements, and/or that it had a legitimate basis for believing this. This might include advice from a lawyer or an accountant, possibly the custom and practice of the industry.

An employer would be acting recklessly if they don’t immediately seek advice or investigate a suggestion that workers may be employees and not contractors.

Continue on Page 8...

2015 February Issue | 7

Contractor or Employee WHAT’S THE DIFFERENCE Recommendations Sham contracting can be a difficult thing to detect, but there are steps you can take to avoid it such as: • Check whether the worker meets the criteria for a Contract for Services which distinguish a contractor from an employee. If the worker does not then he or she should be engaged as an employee.

• From the outset have a properly drafted contractor agreement which specifies the contractor’s business details and what duties and obligations apply (such as workers compensation, payroll tax, PAYG etc).

• Do not employ someone as a contractor if you have led them to believe that they will be employed as an employee.

• Do not knowingly make a false statement to a current or former employee with the intention of persuading them to become a contractor to perform the same work.

• Do not dismiss (or threaten to dismiss) an employee and then re-engage them as a contractor to perform the same work.

Above all, take the time to learn the differences between a contractor and an employee. Although the paperwork, assessment and checking processes required to properly manage contractors is time consuming, the risks involved in getting it wrong are considerable.

FURTHER INFORMATION If you would like further information about Sham Contracting, please call Simon Clayer on 07 3221 0013 for an obligation free

www.dundaslawyers.com.au

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2015 February Issue | 9

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‘Keep the Customer

SATISFIED’ Who remembers that classic song?

In case you don’t, it was sung by Simon and Garfunkel and released on their ‘Bridge Over Troubled Waters’ album in 1970. I still have the original vinyl copy and the ‘Bang & Olufsen’ record player to play it on.

(That’s showing my age).

The tune popped into my head when I went to a client’s house recently.

She phoned me in desperation wanting a quote to repair some faulty workmanship caused by another painter. He had been recommended by a parent from a school her children went to. The particular paint job was a complete interior and to be performed while the owners were away on holiday. This was also to make it easier for the painter as there would be less interruption from the clients being home. Full instructions were given with feature walls to paint in certain rooms.

The owners arrived back two weeks later and were happy enough with the job but queried some of the workmanship and also the painting of the wrong walls in the feature colours. The painter couldn’t agree with their requests and refused to rectify the work and said that whatever money they still owed him, to keep it. This is when they contacted me and when the lyrics ‘Keep the customer satisfied’ came to mind.

I estimated that it would have taken around 40 hours to repair the faults

but some of that could have been argued to the fact that it was within standard acceptability of a paint job. In my view though they did had a fairly valid point on 50-75% of the work but the rest I felt they were being a bit ‘pickie’.

Once you have won a clients’ confidence, you should do everything in your power to ‘hang on’ to them. For the past 30 years, I have kept a record of all my clients and how they found my name. I know for instance that at present, 80% of my work comes from previous clients or referBy refusing to do the work though, rals from those clients. In particular, a black mark has now gone against one job has led to 38 other clients him and will not be recommended with work totalling to over 1.2 milby these clients in the future, and it lion dollars. How much in advertising fact, word will now get around the dollars do you think it would cost to school what exactly happened and win 38 clients? will escalate. In proof of this, another client phoned me for a quote a Now you may not agree with what week later that was recommended a client is complaining about but is by the disgruntled client. It was for it really worth the hassle of disaa complete interior and exterior greeing with them and losing popaint job totalling over $16,000. tential leads in the future. AdvertisThe painter could have easily won ing costs a lot of money and a lot of this job if he had just done the right effort goes into it as well, whereas thing by the owner. referrals are free, and all you have to do is; I have mentioned this many times before in previous articles and in ‘Keep the customer satisfied’. my book that; ‘An unhappy customer will spread the word of a poor by : Jim Baker tradesperson to more people than jimbaker@notjustapainter.com.au a happy customer who had an excellent job done’. Good customer service reduces negative word of mouth.

2015 February Issue | 11

What are the thorns in our sides?

Running a small business can come with its little (and big) frustrations.

We all have our pet peeves, and this is why we do what we do here at Aussie Painters Network! We hope to help make life a bit easier in the world of small business, particularly for painters.

After reading a few local forums and blogs that touched on this topic lately, we reflected on what most of the contributors said. Here are a few in no particular order: • • • • • • • • • • • •

Finding good staff Email Filing Paperwork Book keeping / accounts Chasing Money Cash flow up and down Inconsistent workload Running social media platforms Web marketing Lead generation Keeping up with government changes to rules and regulations • TIME. Balancing Your Business and personal life We’d like to know if you agree… are these on the top of your list of irritations or least favourite tasks? Let us know of your pet peeves that are specific to our industry. Do you have any suggestions for fellow painters? Email us and let us know and if there’s more we could do to help!

Next month, we’ll revisit the list with readers’ suggestions and some of our own tailor made solutions.

12 | Aussie Painters Network

2015 February Issue | 13

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AVOIDING the “Salesman Disease” The Death of a Salesman is a 1949 Pulitzer Prize winning play written about the tragic life of Willy Loman the salesman, an average guy who chased the American Dream as a way to overcome his weaknesses and insecurities. His denial and false sense of success leads to tragedy and ultimate suicide. There are many similarities between Willy’s demise and contractor companies who destroy themselves or at best experience a lifelong series of business ups and downs.

Before going further, I want to make it clear that I consider myself a good salesman and am offended by the stereotype used to portray salespeople. Good salespeople are problem solvers, good listeners and a vital part of the business process.

Unfortunately, it is the pigeonholing of the sales profession as pushy characters that leads to this misbelief just as a few bad contactors ruin the industries reputation. However,

Willy does possess several of the characteristics that destroy many a contractor business. Let’s discuss some of them.

insanity is doing the same thing over and over in hopes that it works. To succeed, businesses must fix the core business issues in their way and not just blindly try to do so by “One more job and it will all be selling more. ok.” The ideal salesman was once described as someone who, if he “We can do this job.” Taking jobs was tarred and feathered and run outside of your core competency out of town, would think he was can be devastating. Contracting is leading a parade. Having a posi- not an endeavor where taking the tive attitude and enthusiasm can job and figuring it out later works be a positive trait. However, there very well. Characteristics of a typiis a thin line separating optimism cal bad job include an unknown cusand denial. Optimism is the hope- tomer, job location, type of skills refulness and confidence something quired to do the job, the size of the will work. Denial is the refusal to job, etc. acknowledge facts and conditions It’s hard to tell why contractors take keeping something from working. work they should not do. I think the Think of a contractor that failed. fear of running out of work, being Normally, the company had a great in too much of a hurry and Willy deal of work and was busy. If your Loman’s type of denial all play a role company is not making money in the situation. where your business is now, it is doubtful one more job or next year Continue to Page 16... it will be better. One definition of

2015 February Issue | 15

Avoiding the

“Salesman Disease” A little checklist can help you avoid bad jobs.

• Have you checked credit and talked to other subs about this customer?

• Did you get bad vibes from this customer when you met?

• Did you google the customer to see what he or she does for a living and search lawsuits?

• Is this job substantially larger than your standard job?

• Do you have the cash to carry the job’s payment schedule if it is delayed?

• Does this job contain some type of work you really are not accustomed to doing?

• Does the job have a demanding schedule?

• Are there other factors such as other subs, weather, materials that could impact the job?

As a contractor, you are always taking risks but make sure the “salesman disease” does not put you into denial regarding those risks. Don’t take an out of town difficult job for a litigation attorney, to be done in the middle of the winter, with a picky architect, a lot of material to buy upfront, a demanding schedule and a customer who came across as demanding and wonder why you are in trouble.

16 | Aussie Painters Network

“Don’t worry we will get it done.” Outselling your

financial and production capabilities can be disastrous.

If you are having trouble finding employees at your current level, what makes you think you will be able to do so if you double your sales? There is a limited number of good craftsman including subcontractors and dramatically overselling that capacity can have a devastating impact.

You also need enough cash to take you through your sales growth. If you do 100k a month and it takes 30 days for people to pay you and you go to 200k a month, you need another 100k in cash to keep things going.

“The customer is always right; we will take care of it”. If you are dealing with unscrupulous customers or someone who is demanding unreasonable specs and performance, such folks can eat you alive. To keep doing things to merely keep them happy is insane. You must clearly negotiate what you will do and that they will be satisfied and pay you. It is doubtful you are going to make this person happy and at this point it is all about damage control.

In closing, there is nothing wrong with being a good salesperson. However, good salespeople are not in denial and will not make the sale at all costs. Building business requires more than sales.

Monroe Porter is president of PROOF Management a firm that teaches seminars and runs networking groups for painting contractors. Several Aussie painting contractors travel to the US each year to participate in his programs.

www.proofman.com

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2015 February Issue | 17

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10 TIPS

for Start Up Businesses Starting a business is an exciting time for anyone who has a wish to do something that is their passion or has been a hobby in the past. I find that many people who commence business for the first time have no actual structure and as a result make their start-up very difficult and with a propensity for failure.

Once you know your marketplace, 4 Set up a solid platform / structure create a marketing plan for how you on how the business is to run are going to get your message out If you have no clear structure around to prospective clients. This covers your business it will be impossible your website, social media, adverfor you to focus and prioritise what tising, business cards, flyers and the needs to be done to move forward. branding of your business.

5 Systemise all aspects of the business Here are my 10 Tips for someone This is critical if you are to have a wishing to start a new business. smooth running business. This is easier to do in the beginning that to try doing it after operating for years.

1 Know WHY you want to create If you are going to leverage in any a business Knowing your WHY is one of the way, it is imperative your systems are most important things you need to in place in all areas of your business. know before you start a business. If the passion is not there you will not 6 Create a basic Business Plan be able to survive the tough times A basic Business Plan will help guide you initially. Even though this is as business gets tough! something that will probably more 2 Have a Vision for what you want than likely go into the bottom draw, you need to have one to forward that business to be in the future It is important that you have a clear plan what you want your business and concise vision of where you see to become in the future. your business in say 3 years and 5 years. If you do not have this, it is 7 Create a Financial Plan and have virtually impossible to be on track an accountant A financial plan for where you are and focused. now and for forecasting where you 3 Understand who your audience is want to go is necessary. Find a good accountant who can guide you to and how you can reach them Knowing where your niche/audience set this in place. They will be worth is will show you where to promote it in the long run. your business. You need to know 8 Create a details Marketing where to go to meet your future cli- Plan including Social Media and Advertising ents/prospective clients.

9 Goal Set and create a 90 Day Action Plan every 90 days Setting goals for the future are important and having a 90 Day Action Plan will keep you on track.

10 Find a mentor and mastermind group to support you We all need to have someone to support us and keep us moving forward. A mentor/coach will help your but a business mastermind group will give you the on-going support 24/7 if necessary and give you your independent board of directors for future growth.

Now to make these things happen by putting them into practice ‌ Of course there are more things you need to do but these are the basics to get your business moving. If you want more, contact me at jennie@ jenniegorman.com.au to see how I can help you create the business you want and desire.

by Jennie Gorman www.connexionsunlimited.com.au

2015 February Issue | 19

The Contentment Habit I’ll admit I do it as much as anyone else: see the cool things that others are doing and wish I were doing something cool like that too.

You see great travel photos on Instagram and other social media — people living amazing lives, creating cool things, going on adventures. And instantly, there’s the thought that you should be living a better life.

But this is the wrong habit. It leads to a feeling that your life isn’t good enough, that you aren’t good enough.

And the habit doesn’t end: if you pursue a better life, you will always feel that you should be doing more, partying more, creating more, learning more, reading more, traveling more. You can’t possibly do it all, but you’ll always wish you were.

So what’s a better habit? The contentment habit.

What I’ve been learning is that happiness and contentment and greatness isn’t out there. It’s not where everyone else is, even if it seems like it. You can spend your whole life chasing this happiness, contentment, dreams, greatness, coolness, and never reach it. That’s because it’s right where you are now. Before we talk about that, let’s look at the habits that most of us do.

The Discontentment Habits Tell me if these habits sound familiar:

• You see people doing great things, traveling, having fun, and wish you were doing something like that too.

This never ends, because no matter how much you do, there will always be other people doing still more things that sound really cool. So you’ll never reach the pinnacle of fun and cool and achievement.

• You look at yourself and think that you can improve — get fitter, leaner, more learned, calmer, happier, more productive. This too never ends, because even if you do amazingly at improving yourself, you will never be perfect, and there will always be more to improve.

So you’ll never be content, and then you die.

• You feel you could be doing more. You’re rushing around, doing a lot, but there’s always a feeling that you could be doing more. This never ends, because there is always more you could be doing. You can never do everything, so there’s always more that you’re not doing than there is that you are doing.

• You criticize others for what they’re not doing. Your kids, your spouse, your family, your friends … they’re all doing something you think they shouldn’t, or maybe

20 | Aussie Painters Network

not doing something you think they should. There isn’t happiness in criticizing others, because you’re dissatisfied with life when you’re dissatisfied with other people.

If you find yourself doing any of these things — and I’d bet $1,000 that you do them more than you realize — then it’s a good time to think about whether that habit will ever end, and if it will bring you happiness.

The answer to both questions is no — those habits don’t have an end, and they don’t bring happiness or contentment.

Continue on Page 22...

2015 February Issue | 21

The Contentment Habit When you catch yourself doing those discontentment habits, by being mindful of your feelings and thoughts during the day … try this instead: • Stop looking elsewhere for happiness — in what others are doing, in what you should be doing, in what others should be doing but aren’t, in the things you should improve. Happiness and contentment aren’t out there.

• Instead, turn to where you are right at this moment.

Pause and feel your body, your breath, and all the sensations surrounding you right now. See how this moment contains so much that you don’t normally notice, if you start paying attention.

• Realize that this moment is enough. All around you, right now, is a moment that is as high quality as any of the possibilities that often enter your mind of what you should be doing or where you should be. Those ideal experiences aren’t of any higher quality than the experience you’re having right now.

• See the wonder in this moment. Right where you are, right now. Notice the amazing things around you, and in you, as if you’re seeing it for the first time ever. Notice

the miracle of your body, your mind, your surroundings.

How did all this come to be? The building you’re in, or the nature you’re in, didn’t just magically appear — it’s almost as if the world conspired to make this moment happen, and you get to be here to witness it. Awesome!

That’s the contentment habit, and you can do it anytime, anyplace, no matter what you’re doing or who you’re with. It is free, always available, always miraculous. And it never ends.

by Leo Babauta,

a successful ‘simplicity’ blogger & author from California, is the creator of top 25 Blog,

Zen Habits, chronicling his insights from acting significant changes in his personal and working life.

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22 | Aussie Painters Network

2015 February Issue | 23

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MATES Training

STOPPING SUICIDE

Stopping suicide and saving lives is what mental health program MATES in Construction is all about. In the construction industry where suicide rates are close to twice the national average for men something needed to be done. And MATES is doing it!

up on time, unsafe work, hitting the grog, anger or withdrawal could be clues that something is not right. Then we empower them to ask “Are you OK mate?” That simple question is incredibly powerful: powerful enough to save someone’s life.

MATES in Construction CEO Jorgen Gullestrup says “Construction’s a tough industry to be in. We all know that. Everyday it’s physically hard. Long hours. Jobs finish up. If you’re sick or injured that might mean you’re not getting paid. You’ve got subbies who are chasing money, chasing the next job. It can really affect them. Problems at work often lead to family and relationship problems as well and workers feel they have no-one to turn to for help.” MATES has been providing that help since 2008 to anyone in the industry or their families with their 24/7 telephone helpline. Workers are immediately connected to trained professionals who are there to help them. If they need more help and support MATES Case Managers provide it. Since they started MATES have provided ongoing professional support and assistance through case management for more than 1,500 workers in Queensland and they get around 40 new cases a month.

Interest from the industry in the success of the program is so strong that MATES will hold a one day conference in Sydney with speakers including retired California motorcycle cop and ‘Guardian of the Golden Gate’ Kevin Briggs’ and suicide survivor and mental health advocate Kevin Hines. The conference on 5 March will look at ‘Mental Health at Work – Do we care?

As well as providing a telephone helpline MATES offer a one hour training session called General Awareness Training on how to recognise the signs that a mate is doing it tough. Since starting up MATES has trained around 70,000 workers in suicide awareness Delivered on site to 5 or 500 workers Gullestrup says the training teaches workers what to look for when a workmate is struggling. “It’s often about recognising that not showing

Gullestrup says “In our industry, the ‘mates helping mates’ approach is for everyone, it’s safe and encourages anyone who’s struggling to seek help. It also enables workers to confidently recognise signs that a mate might be at risk and emphasises that everyone in the industry can play a part in reducing deaths from suicide.”

If you need help now, Call our 24/7 help line

1300 642 111

For more information on the conference and MATES

www.matesinconstruction.org.au

Contact: David Scholes, Communications Manager dscholes@matesinconstruction.org.au 0409 506 020

2015 February Issue | 25

5 Critical Numbers for Business - PART 2 All Tradies know how important numbers are for their business success. In fact, without the ability to measure up the job and use these numbers to get the job done right, Bob the Tradie, who was the example we’ve used in Part 1 of this article (published last month), wouldn’t have a business to work in. Tradies who go into business for themselves do it because they love what they do, and yet, most of them would love to spend more time with their families or go fishing with their mates. Using the 5 critical numbers to Bob’s advantage, he would be able to increase his profit AND do all of the above. He would no longer be running himself ragged going from job to job and still not getting ahead.

In Part 1 we’ve spent some time showing you the importance of numbers in measuring the success of a business, and discussed 1. Gross Profit in $ / Gross Margin % and 2. Markup.

Now let’s focus on the other three numbers.

5. Breakeven

What does breakeven mean for Bob? Well in simple terms, a breakeven figure identifies the number of sales to be made before all business expenses and profit begins (before tax). It is the spot where Bob’s busi3. Net Profit $ / Net Margin % The Net Profit figure in dollars is worked out by deduct- ness neither makes a profit nor a loss. This figure can ing the costs and overheads from the Gross Profit. It be calculated and once Bob knows it, he’ll have an idea correlates to the Net Margin figure in percent. While how many more jobs he needs to do, or how to run Bob’s wife would be more interested in the Net Prof- his business more profitable, before he can put more it figure, the Net Margin is more useful to Bob when money into his bank account for his wife. assessing the profitability of his business. Net Margin figures are used in benchmarking business success and Please Note: Many of the comments in this article are Bob should be using this metric in his financial reports. general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their inter4. Budget This is such a useful tool for business, and yet we find in pretation and the information’s applicability to their our practice that most Tradies don’t spend time creat- particular circumstances. ing a budget and cashflow forecast. Bob will find that a budget will help him better manage his cashflow needs, for example, when he needs to buy more materials and, of course, to put money in his bank account to cover the cost of living for his family. With a solid budget Bob could also walk into any bank and talk to them about a loan, if he needed one.

26 | Aussie Painters Network

Copyright © 2014 Robert Bauman.

A D Hamilton & Associates www.adhamilton.com.au

www.aussiepantersnetwork.com.au

2015 February Issue | 27

from $45.00 28 | Aussie Painters Network

Orange Painting How did ‘Orange Painting’ establish themselves as successful and sought after painters in Perth in just two short years? Read on to find out..

Painting has for a long time been my family’s business, but on a much smaller scale when compared to that of today. Initially choosing computer science as my career path, I later decided to drop this option when I realized that IT was not fulfilling my passion - which turned out to be painting. I started the business around two years ago and later travelled all around Australia to cities like, Adelaide, Brisbane, Melbourne, Canberra, and Kalgoorlie seeking better opportunities and eventually Perth was my chosen destination. It is now my pleasure to say that after some hard work, I managed to get my business settled and get many referrals in a short period of time.

in a friendly manner. Our clients are invited to discuss all the issues and ideas with our team without any hesitation.

Apart from all this, we ensure that after a hard day work, our client’s house is clean and tidy thus saving them the hassle of cleaning the mess due to our work.

We also understand that it is vital that a customer gets a peace of mind relating to the work that we do without their supervision. We assure them they can trust our quality relating to any part of the work, including being trustworthy and honest. We try to deal with each customer in an individual way for that personal touch, with the least hassle, and catering to different tastes.

My focus has always been to deliver the best value to As a result of a professional, personal approach, Perth customers using best Dulux quality products, and being people know Orange Painting for providing the best efficient and professional at all times. We paint houses quality service, at the most affordable price. keeping in mind all the necessary measures that ensure the customer full safety, cleanliness and satisfaction.

Your house is more than just a block of land, walls and roof. It is your place of comfort and one of your greatest assets; therefore, it is both fulfilling and comforting to have a house that is aesthetically pleasing and has impact the moment someone sees your beautiful abode. Painting houses is our passion and with concentration on proficiency, today we boast of one of Mike Feizpour the finest painting businesses in Perth. No delays due Phone: 0469 085 999 to misinformation or other trivial matters. Our team is email: Info@orangepainting.com.au devoted to providing our clients a better quality service www.orangepainting.com.au

2015 February Issue | 29

Getting Back to Basics

We often bang on about getting back to basics in business. That’s because there is little doubt that being consistently professional, leaving a job well done, capitalises on ongoing good-will and it is far cheaper to retain a customer than attract a new one. Excellent communication, respect and relationship skills that make the experience simple are as important as a quality finish. Ensuring a good experience with customers should be part of any great marketing strategy.

I recently experienced how and why these basics work from a new customer perspective. I’ve been looking for tradespeople/skilled labour for some simple tasks around my home, and it would seem that nobody returns calls anymore. How do these businesses run with any modicum of success? I have no dramas with voicemail, but can never understand when one is not returned in business.

I suppose some are just overwhelmed and busy, but I often wonder how much is just poor management.

It has reinforced to me how important the basics are.

I don’t even want to phone random businesses for quotes now, until someone I know or am even loosely connected to, recommends the business having already used it themselves. Because, unfortunately for varying reasons, many people are just plain unreliable.

My other whinge is that if you’re going to have multiple modes of communication advertised to the consumer, you need to manage them! As many parents will know, making and taking phone calls just screams “Ambush Mummy” to a fractious child or children… calling half a dozen people trying to get a quote isn’t always convenient, nor effective. So, email and text are my preferred contact. But there are so many businesses who are set up for modes of communication, only to ignore anything coming in that way.

Diversify your offline approach

A recent caller to our Network had a new business, seeking ideas on how to grow. He was spending serious money on ‘pay per click’ advertising and was unsure if this was making any difference. He was also advertising in a local newspaper, which is great as you need to put the word out on many different mediums. This is what we told him:

30 | Aussie Painters Network

nstead of investing in Pay Per Click, continue to advertise in the local publications, but don’t go for the flashiest and biggest ad – go a bit understated. Then you can afford to spread your budget over a greater area; instead of one, advertise across say five. Like laying down roots, this new business began to grow. A web presence is as necessary as a phone number these days, but also having an offline strategy that covers your bases is invaluable.

And Online…

As far as web presence in building customer numbers goes, have a good but simple website which is impeccable in presenting your professionalism. Include photos and testimonials but make it brief, accurate and to the point. Take advantage of the free online mediums like Facebook but again, if you’re going to use them, try to keep them reasonably active; not stale and outdated.

Keep content purely professional; have your personal page separate.

Impressions

Do we need to revisit the human basics? You would need to be incredibly charming and probably really good looking to make a good professional first impression in my home in your filthy overalls, after eight hours on the job in the middle of summer. Take a few moments to ensure you have a clean shirt and some deodorant in your car. Communicate respectfully and call if you’re not going to be there on time. by : Caroline Miall caroline@aussiepaintersnetwork.com.au

www.consolidatedi .com.au Phone: +61 7 3292 1100 | Fax: +61 7 3292 1110 Email: contactus@consolidatedi.com.au I just wanted to say a BIG THANK YOU for referring me to Consolidated Insurance Pty Ltd. I spoke to Scott about our Business Insurance and with little time, Scott emailed me back a comprehensive package for our Business and we saved over $1,000.00. Thanks again Aussie Painters Network for the great referral and all your ongoing help.

Sonya Baker www.bakerbrosmasterpainters.com.au

2015 February Issue | 31

4 /1311 Ipswich Rd, Rocklea, Queensland, Australia 4106 1800 355 344 info@aussiepaintersnetwork.com.au

32 | Aussie Painters Network

Try Queensland for the

Best Paid Tradesmen • Queensland tradesman the most expensive in Australia • The average for a tradie in Queensland is $63.14 an hour

Numbers that have been compiled from serviceseeking. com.au, from a size of 58,000 tradies nationally, show that hourly prices in areas such as electrical, building, concreting, painting, plumbing, and landscaping have risen in Queensland by 7.5%. The state has pushed past Western Australia, the mining state, for average hourly prices.

The Queensland average is now $63.14 an hour and this is almost $4 more an hour than the national average of $59.70.

During the last quarter the biggest jump in price was in the concreting sector, at 11.5%, and in landscaping, at 9.2%. The owner of Concreting QLD, Brett Boormakin, states that tradies who are truly great at their skills have a reason to charge more than the others.

“Guys who are not doing the right thing, they drop off the system,” he said.

“Those doing the right thing can charge a little bit more.

People are prepared to pay when they know they are going to get good service.”

Taylor Nichols, who works for Mr. Boormakin, states that the industry has been quite busy.

“There was that slump a few years ago and it went a bit quiet but it has definitely picked up since then, which is good,” he said.

Mr. Pennington said that for those who need to save money on tradies need to hire them during the off-peak season.

“At this time of year people are prepping for the Christmas holidays, getting the house repainted or a deck in because they are hosting the family. Everyone doing that at the same time pushes the prices up,” he said.

Oliver Pennington, serviceseeking.com joint CEO, says that this is a result of an active building industry.

“In Queensland we certainly saw a jump which is indicative of a tightening of availability of suppliers,” Mr Pennington said. “Building activity has increased in Queensland more than other states (and) there is a bit of a correlation between the number of building approvals and renovations and the pricing.”

If the building sector keeps doing great, Mr. Pennington says the he predicts that prices will continue to rise, but he says they will come down again if interest rates rise.

“Don’t wait until November to get your air conditioner serviced or installed. The airconditioning companies put their prices up (in summer) just because they can.”

“Do it in winter and you’ll save a fortune.”

ABIS Phone: 1300 887 959

www.aubis.com.au 2015 February Issue | 33

NSW Licencing Changes

NOW IN EFFECT

Last month we discovered the serious changes that have been legislated for the construction industry – for Painters in NSW it meant no license being required for most internal jobs, nor for external jobs under $5,000.

Almost all of the painters we spoke to across New South Wales had no idea these changes were being made, and it rang alarm bells for painting business owners, and those who work hard to prevent toxic fall out from lead paint and asbestos in older dwellings.

“disproportionate with the corresponding level of homeowner risk,” which essentially tells us that the changes have been dictated by builder’s costs. Unfortunately the onus is now on us to prove that this risk to homeowners is far greater than the cost to builders. Aussie Painters Network and NIPD will now attempt to collate and review statistics of the cost of asbestosis, the cost of illness from lead paint, the cost of worker’s compensation for painters who are injured, the cost to homeowners in Victoria (where there is no licensing) who have to go to court because of faulty paintwork.

So, what’s been going on? Aussie Painters Network and NIPD launched a petition to have the changes reversed, and upon publishing this edition, have reached nearly Fair Trading stated that they would consider information 500 Signatures. We wish to take it to parliament when put to them, but that the legislation had been passed, it reaches 1000. and would not be due for review for another two years.

We issued press released to media outlets across the country, in the hope we could attract some public attention to this issue. Unfortunately no one seems to have picked up the story, nor have they contacted us for comment. Sadly, we suppose someone will have to actually get sick from unprofessional handling of toxic materials before it becomes hot news.

Whilst meetings have taken place with Fair Trading, their position is that adequate consultation took place, however it would appear this was with the builders, not painters. The following passage from the Policy Position Paper, September 2013, explains to some extent how they reached their conclusions: “Industry stakeholders have raised concerns that the compliance and administrative cost to builders associated with these licensing requirements is disproportionate with corresponding level of homeowner risk… Excluding these works would reduce red tape and regulation and help focus the Act on core residential building work.” http://www.fairtrading.nsw.gov.au/biz_res/ftweb/pdfs/ About_us/Have_your_say/Review_of_home_building_legislation_position_paper.pdf

The key point here is, according to the paper, the costs to builders in maintaining these licensing requirements is

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The Shadow Minister for Fair Trading NSW Tania Mihaluik has spoken out against the new legislation after we contacted her about our campaign, saying that the changes could expose consumers to greater risks from general construction projects in their homes.

“These backward steps are opening the door to the unqualified and unskilled labour coming into consumers’ homes and potentially working with asbestos, lead and other dangerous materials commonly found in households,” she said.

Thank you to the hundreds of committed individuals who have signed our petition. Many have also left some passionate opinions about the changes and what they will mean. Here are just a few below.

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2015 February Issue | 35

NSW Licencing Changes

NOW IN EFFECT

“Some parts of the painting industry already have a bad reputation for unacceptable workmanship. Imagine trying to quote against an unqualified brush hand on new housing, and imagine the look on the face of the owner when he receives the keys to his new home.

They will end up painting their house themselves.. How about we deregulate your job Mr Mason-Cox. “They are inviting more cowboys into our industry.

There will be lots of victims with bad jobs and wrecked homes” “My concern is that this will spread throughout Australia, thus creating major problems for work place standards on liability issues......

“The change in legislation so basically any person can pick up a brush and start a painting job, will not only destroy our industry it will increase the CASH COWBOY market. I was shocked when notified of these changes.

I feel sorry for the property owners and their families who may have their health damaged due to some unsafe practises by these cowboys. Good luck to the rest of the trade qualified painters trying to make a living.

“I believe that it’s not fair on those that have paid thousands to do training and get their certificates.

There will be lots of complaints from house owners regarding issues of painting that unqualified painters didn’t undertake. My voice counts too!!

“This cannot be allowed to happen in Qld

“I didn’t do an apprenticeship to compete with unlicensed and unqualified cowboys!!!

“Besides the fact that the workmanship will be substandard, the criteria for obtaining a painting license is that you MUST not have a criminal record and that you have the funds required to run a business.

Surely this legislation opens the customer up to being defrauded. Who will be responsible for this in the future? The minister involved? This could easily be another “pink bat” fiasco!!!

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“We aren’t labourers, we are tradespeople!

“I provide training for people managing lead paint and am only too aware of the risks of untrained people getting involved with lead paint. Extremely dangerous to themselves and the occupants, present and future.

“Lack of license control allows cowboys and unqualified people to undertake work that requires years of training and good practice. The people that suffer are the gullible australians that assume all painters are tradesmen because of the years put in by licensed painters.

It will all come down to cheap prices and the trade will suffer the consequences.

“This has been driven by the large building companies to reduce prices paid to subcontractors.

This does not help the industry or consumers. Shame on the Minister for Fair Trading Matthew Mason -Cox for bowing to the builders pressure “I am a lead accredited painting contractor and worry about the repercussions of untrained people handling a deadly situation Exposure of lead and asbestos to the wider community is a significant health risk that will lead to major illnesses and deaths. It will put people’s lives in danger. Who will be responsible or these outcomes when the government is approving unlicensed or unskilled workers to work with such hazards in the community? I recommend anyone involved in making such decisions watch the following You Tube video on asbestos. https://www.youtube.com/watch?v=4gyvg-ZGXy0 “Protect the health and wellbeing of our tradies and the professionalism of the painting job.

“De regulating the painting industry!! No thankyou..

“I live in WA and heard about this ludicrous change that will ruin the painting trade over there. The quality and professionalism of the painting industry will suffer immensely. I feel sorry for the professional painters over there who are now going to have to compete against any old person who thinks they can paint.

WHAT A JOKE! “Let’s keep the cowboy outfits away from our trade.

“If you scrap licensing laws for jobs under $500 and non-licensed people could go in perform the work with no standards, legal issues may then arise and therefore more complaints to fair trading raised.

“It’s bad enough now, with so many unlicensed painters just getting their skills off a paint can label and with builders using unqualified painters, the quality of workmanship now is worse than 10 years ago. It’s just going to get worse if they bring this in. I think the industry has to be tightened up not relaxed. Non knowing clients are going to get ripped off severely.

“It’s definitely a joke, and a real slap in the face for us painters.

“This initiative will substantially undermine the integrity of the industry by allowing unqualified and unskilled workers in to a well-managed and regulated industry. A blow for consumer protection.

“I have a professional painting service honestly this bloody idiots in charge of the changes must have a secret agenda

because the only thing this will do is bring unqualified people in lower wages and cut us out good onya so called Australian execs.

“Painters have a reputation to keep. I would like to know how this would benefit the building industry. The regulations did not explain the outcome that they’re hoping to achieve; It will only create more demand for painters to become defect inspectors & mediators for clients due to the poor from work of an unlicensed, untrained persons.

If you haven’t had your say yet, please do at https://www.communityrun.org/petitions/protectnswpublic-from-lead-paint-and-asbestos You may also like to respectfully express your concern by email to the Minister at: office@mason-cox.minister.nsw.gov.au

Six Real Estate

Photoshoot Rules That I Will Now Live By Oh, it was hot yesterday! The furniture install and photo shoot that I did at my latest house listing was a physical challenge and an emotional one too. It was almost like yesterday’s life experiences were sent to teach me many serious staging/install lessons all in one sitting … to save me making ANY of them again in the future.

Rule Number One:

Know where your phone and keys are at all times.

Actually, keep them on you at all times … so that when you make your 17th trip back to the car … to collect that special something that will finish of a vignette perfectly … and the front door catches a breeze and slams closed … with your phone, handbag and keys locked inside … you will be able to get back into the home …. and not have to door knock the neighbours in search of a phone … in order to call the husband of the wife of the home you are staging … who’s number you don’t remember, as it is in your phone that is on the laundry bench in the home that you have just locked yourself out of.

Rule Number Three:

If it is 36 degrees in the shade, with no hint of a breeze, stop at Powerade number 3 and switch to Zeroade, or you are going to end up the size of the house you are staging.

Rule Number Four:

Ensure that the ‘Stager’s Tool Kit’ stock, that you keep in the boot of your car, is ALWAYS kept up to date, because Murphy’s Law guarantees that if you need a standard bayonet light bulb, for that one lamp bulb that didn’t make the journey, you will have EVERY light bulb permutation and combination EXCEPT that one.

In all seriousness, my staging/styling tool kit consists of:

Laser measurer, batteries for laser measurer, tape measure when laser measurer fails, matches, candles in all sizes, battery powered candles, picture hooks, hammer, blue tac, string, extension cords, double adaptors, furniture floor protectors, magic erasers, lightbulbs, Plus side? … you meet really nice people, neighbours scissors, post it notes – to remind me of things in the who offer you tea while you wait for your rescue … and home I have to come back to tend to, cleaning rags, also offer to discreetly break in for you. cleaning fluid, soap, toilet paper!

Rule Number Two: Following on from Rule Number One, invest in a door stop and use it!

38 | Aussie Painters Network

Rule Number Five:

Anne-Maree Russell is the Find a good photographer who: is a delight to work Principal/Owner of Cape Cod with; … takes crash hot photos; respects your idiosyn- Residential - a bespoke apcrasies; … respects your need for a little bit extra time proach to the presentation to modify, ‘slightly’, that perfect vignette and who is & marketing of premium properties throughout Brishappy to … you get the idea! bane, as well as author of popular home design blog.

Rule Number Six: … eat the food props (with you) at the end of the shoot!

One must indulge in the food props. It’s something to look forward to after a huge day!

www.thehousethata-mbuilt.com

My Costing Guide ‘My Costing Guide’ is a fully automated program where all you have to do is add or change the variables and the total price will appear in an instant. It is simple to use and can be personalised to your own business.

Personalise your own rates instead of using a recommended rate!

www.mytools4business.com/mycostingguide 2015 February Issue | 39

The Industry

Idiots

40 | Aussie Painters Network

Important Contacts Aussie Painters Network www.aussiepaintersnetwork.com.au Ph. 0430 399 800 National Institute for Painting and Decorating www.painters.edu.au Ph. 1300 319 790 Australian Tax Office www.ato.gov.au Ph. 13 72 26 / Ph. 13 28 65 Award Rates www.fairwork.gov.au Ph. 13 13 94 Fair Work Building & Construction www.fwbc.gov.au Ph. 1800 003 338 Mates In Construction www.matesinconstruction.com.au

Ph. 1300 642 111

Workplace Health and Safety Contacts Comcare WorkSafe ACT Workplace Health and Safety QLD Victorian WorkCover Authority WorkCover NSW SafeWork SA WorkSafe WA NT WorkSafe WorkSafe Tasmania

www.comcare.gov.au www.worksafe.act.gov.au www.worksafe.qld.gov.au www.vwa.vic.gov.au www.workcover.nsw.gov.au www.safework.sa.gov.au www.commerce.wa.gov.au/WorkSafe/ www.worksafe.nt.gov.au www.worksafe.tas.gov.au

1300 366 979 02 6207 3000 1300 362 128 1800 136 089 13 10 50 1300 365 255 1300 307 877 1800 019 115 1300 366 322

www.actcancer.org www.cancercouncil.com.au www.cancercouncilnt.com.au www.cancerqld.org.au www.cancersa.org.au www.cancervic.org.au www.cancerwa.asn.au

(02) 6257 9999 (02) 9334 1900 (08) 8927 4888 (07) 3634 5100 (08) 8291 4111 (03) 9635 5000 (08) 9212 4333

Cancer Council Australia ACT NSW NT QLD SA VIC WA

2015 February Issue | 41

OUR MEMBERSHIP Standard Membership • Five postcode listings in our online directory • Work, Health and Safety Plan • Risk Assessment and Safe Work Method Statements • Incident Investigation Forms and Incident Investigation Form Register • Instant access to our pricing and estimating guides • Quotation guide to assist you when quoting • Personal service and phone advice • Web Listing for prospective customers to find you easily • Free targeted online marketing & advertising • Back-links to assist you in SEO rankings • Assistance with Debt Collection and Discounted Terms of Trade • Discounts on Courses • Painter Help section if you are looking for work or looking for painters to help