Aussie Painting Contractor August 2017

The Four Keys to Learning Anything Unlock your potential!

Give your business

A Financial Health Check Builders

What Painters really think

Don’t be a Tool!

& make sure yours a covered by insurance

www.aussiepaintersnetwork.com.au

CONTRIBUTORS • Angela Smith • Caroline Miall • Jim Baker • Jennie Gorman • Leo Babauta • Monroe Porter • Robert Bauman • Sandra Price • Shane Moore

EDITOR Nigel Gorman EXECUTIVE EDITOR Caroline Miall GRAPHIC DESIGNER

From the Editor Hi Everyone, Welcome to the latest edition of the Aussie Painting Contractor Magazine.

This month I’ve been reminded the importance of networking and sharing within the industry. I would like to thank Dulux for inviting me to their Dulux Accredited Conference. It was great to meet so many Members and those that have been following us on the APN journey over the last 6 years.

Having so many painters at the conference proved to me that painters can work together, share ideas, help each other and most of all support each other through not just business but personal hurdles that everyone faces at different times in their lives. There were lots of stories shared and lots of laughs. It reminded me that people that who are in competition with each, other can actually work together to assist each other to the benefit of both parties.

Hopefully others will follow in this and learn that working together, the industry improves its status quo, and becomes stronger for it for every individual within it.

Just remember that as Painters we are the ones that make every other trade persons work look good no matter how bad they are at their job. This is why we should really be among the highest respected trade in all the construction industry.

For those in Nth Qld this month keep an eye out you might just see the Painters Training Wheels coming through your town.

Until next month, Happy Painting!!

J. Anne Delgado Nigel Gorman

nigel@aussiepaintersnetwork.com.au

07 3555 8010

Contents 6

DANGEROUS ROCKS The 4 keys to Learning Anything Always pressed for time?

10

Pictures brought to you by the Internet

15

Here’s What To Stop, Keep And Start Doing Today SOLE TRADERS Insurance Guide Give Your Business a

TOP REASONS TO GET A PROFESSIONAL PAINTER

19 22

24 26

Making Progress Glossary of Paint & Painting Term

Make Sure Yours are Covere

Painters tell us what they really think!

34

BUSINESS CARDS

DON’T BE A TOOL!

A Bad Wrap for the Builders

Seven Tips for Successful

31

37 38

Industry Idiots

42

Important Contacts

43

Financial Health Check

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.

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1800 355 344 07 3555 8010 info@aussiepaintersnetwork.com.au

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DANGEROUS ROCKS It was 1966, 51 years ago, when I was sitting in a classroom with around twenty five of my class-mates. I was in Grade 7 Primary School and 12 years old. Back then the subjects taught consisted of Reading, Writing, Arithmetic, Social Studies, Elementary Science, Music, Scripture and Handwork (or Needlework for the girls). If you are wondering how I can remember all this, I still have my ‘Student Report Card’.

One day when having ‘Science,’ our teacher (Ms Atkinson), brought in a box of rocks for us to examine and to familiarize ourselves with. I have forgotten what they all were but I definitely remember one in particular. She told us to ‘look’ and ‘study’ the texture of it, ‘You can see how it consists of fine fibres’ she said ‘and how it easily breaks away from the structure of the rock’. So we did as she suggested and pulled the fibrous particles off and rolled them in our fingers. ‘This is a substance used in many building materials in Australia and is called Asbestos.’

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Besides the ones that could kill you in a rock slide, it made me wonder what other ‘dangerous rocks’ existed in the world and how many I may had been in contact with. As I went through the top 6 most dangerous, I remembered ‘Fools Gold’ was another rock that was shown to us by our teacher.

1. Cinnabar Cinnabar (mercury sulfide) is the single most toxic mineral to handle on Earth. The name of the crystal means dragons blood, and it is the main ore of mercury. Forming near volcanos and sulfur deposits, the bright red crystals signal danger of the worst kind. Cinnabar may release pure mercury if disturbed or heated, causing tremors, loss of sensation and death. In the Middle Ages and late 1700s, being sent to work in Spanish mines containing cinnabar formations was widely considered a death sentence. Cinnabar was widely used in Chinese history for ornamental food dishes, and intricate carvings were created

from chunks of it, sometimes at the expense of the artisans. Even more incredibly, some ancient medical practitioners believed Cinnabar held healing powers, and prescribed it for certain conditions.

2. Orpiment The only thing worse than arsenic itself could be a rock made from arsenic and sulfur. The lethal and chemically reactive Orpiment crystals are found growing below the surface in mineral formations, often near hydrothermal vents. The colors are seductive, but holding the crystals in your hands may release carcinogenic, neurotoxic arsenic powder.

Like Cinnabar, the Chinese made extensive use of this mineral, but to far more terrifying ends. Arrows would be rubbed on crushed samples of these stones and then launched to poison the enemy in a rather fancy way to throw a rock.

The mineral was also used as a primary component of ochre paint, and likely poisoned many of the artists who used it.

3. Stibnite Stibnite is antimony sulfide, but it looks like silver. For that reason, the huge, shining metallic crystals of this unstable compound were once fashioned into magnificent eating utensils. But the sword shaped crystals bore the powers of death to those who used them.

Stibnite’s antimony laced crystals killed a number of people before it became known that use of the mineral was causing food poisoning of the worst kind.

4. Torbernite Torbernite is the mineral from hell.

The prism shaped green crystals form as secondary deposits in granitic rocks and are composed of uranium. Formed through a complex reaction between phosphorous, copper, water and uranium, the stunning crystal displays have seduced many mineral collectors into taking a sample for a shelf collection. The uranium decay can send out a lethal radon gas capable of causing lung cancer. Torbernite can occur in granite, so your stone countertop just might contain traces of torbernite. The bright green crystal blooms were used by prospectors as indicators of uranium deposits.

6. Chrysotile and Amphibolite Asbestos is not a manmade product, but one of most terrifying minerals on the planet. Where other minerals act as toxins through their chemistry and sicken victims of accidental poisoning, Asbestos conducts full scale mechanical sabotage on the human lung. Asbestos deposits consist of aggregates of thousands of tiny, fibrous crystals that can become airborne and lodged in the human lung. Carcinogenic effects occur through persistent irritation of the lung tissues, leading to scarring.

5. Arsenopyrite Arsenopyrite (or Fools Gold) is arsenic iron sulfide, which is the same type of mineral as pyrite but with a heavy addition of arsenic. If one attempts to heat or in any way alter the mineral, a strong garlic odor of arsenic will be produced as lethally toxic, corrosive and carcinogenic vapors are released.

There are two categories for asbestos – friable and non-friable.

(Asbestos)

Non-friable asbestos is asbestos that has been mixed with another product, like cement. This is the most common type and found in building materials as it is strong and flexible.

Friable on the other hand, is a loose form of asbestos. It was used in some types of insulation and is more prone to becoming airborne.

2017 August Issue | 7

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Both types of asbestos are considered dangerous with a high risk of health issues and diseases associated with exposure, particularly particle inhalation.

(Asbestos was mined in Australia until 1984 and was one of the highest users of asbestos, per capita, in the world. The ongoing threat to Australian lives is a real concern, especially with an increase in the popularity of renovating older homes, which may contain asbestos products).

As painters, we are continually in contact with many types of building materials, some being potentially dangerous and life-threatening. The ones that mainly work on repaints are at most risk though because of the age of some of the properties. This is where we need

to know how to identify dangerous materials (such as Asbestos and Lead-Based paint) and what procedures to take to protect ourselves, and our employees from any exposure that could cause us harm. It is not worth taking the risk and ignoring these potential hazards just to get the job done quicker or cheaper. You should explain the danger to the client and why it is going to cost more. This is where you can differentiate yourself from the others (shonky painters) by caring for your employees’ and clients’ wellbeing.

---------------------------------------------

Jim Baker www.mytools4business.com

The portable, inexpensive method to prevent paint waste-water polluting the environment.

2017 August Issue | 9

THE 4 KEYS TO LEARNING ANYTHING I’ve been studying how to learn, as I try to teach myself new skills … and absolutely love learning new things. But I keep running up against a few key problems: 1. Becoming overwhelmed The more you learn, the more you see there is to learn. The beginner doesn’t know how much there is to study, but as you start to explore, you find new caverns, and they are immense. Then as you explore those caverns, you find even bigger ones. It can become overwhelming, and lots of people eventually give up because of this feeling.

2. Failure feels bad If you want to learn to play chess, you’ll lose a lot at first. Then you get better, and lose a lot. In fact,

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no matter how good you get, you’ll probably lose a bunch of times. This happens not just with games, but with learning languages, physical skills, academic subjects — you’ll fail a lot. There are ways to set it up so that you rarely fail, but then you’re not really learning much.

3. It can feel like you’re just

treading water

In a fantasy world, you’d learn at a breakneck pace, downloading new skills and knowledge into your brain like they do in the Matrix.

Unfortunately, it doesn’t work like that. You read and read, or practice and practice, and a lot of the time you barely get better. Other people seem to be learning at twice your speed! Sometimes it seems like you’re not learning anything. This can be really discouraging.

4. There’s always a strong

feeling of uncertainty

Humans don’t like the feeling of uncertainty, for the most part. We avoid it, become afraid of it, get angry or frustrated. But when you try to learn a new skill, it’s almost all uncertainty. You constantly forget things, you don’t understand anything, or when you think you do understand, you try it and it turns out you didn’t understand at all.

This feeling of uncertainty causes a lot of people to give up.

OK, so we all want to learn skills — new languages, programming skills, physical skills, history, math, writing, games, so much more. But these four problems stand in our way.

2017 August Issue | 11

Let’s take them on. We’re going to discover four keys to overcoming these four problems, so that we can tackle anything we want to learn.

First Key: Small Focuses Yes, it’s true: there’s a vast amount of things to learn, and it can be overwhelming. But that’s true of life itself — there’s so much to see and do, and no one can ever do it all. All we can do is one step at a time.

So we have to not focus on all the innumerable huge caverns that have yet to be explored … but the ground right in front of us.

What small area can we study right now?

What small focus can we conquer?

What little area can we explore?

Ignore all the vast uncharted territories for now, shut the rest of the world out, and just be in this one place. Just study this one thing.

One small step at a time, a few small steps each day, and we can explore a lot over time.

Second Key: Flip Failure on Its Head Did you all see the video of Deepmind’s AI after it taught itself to walk? The amazing thing about this is that it did all of that through trial and error. Every single mistake was a lesson.

In fact, that’s similar to how we learn. We don’t know that our knowledge is wrong until we test it out and see whether it works.

We can’t truly learn something new until we try and fail a bunch of times.

We all learned to walk that way … wobbly, falling down, until we got

12 | Aussie Painters Network

the hang of it. That’s also how we learned to talk, to feed ourselves with a spoon, etc. Sure, we had the benefit of being able to see examples of doing it right, but we had to try and fail a whole lot of times before we got it.

Unfortunately, at some point we start to fear failure, but that fear is just holding us back. Failure is really the learning process. Every loss at chess, every falling down when we’re learning a backflip … those are lessons.

So instead of looking at failure as “bad,” we have to flip it on its head.

Failure is a lesson, an opportunity to get better, a wise old teacher telling us where we need to focus our learning efforts.

When you fail, smile and say thank you for the lesson.

Third Key: Find Enjoyment in the Process It’s a tough thing when we feel we’re not making progress, that things are moving too slowly. We want to get to expert level (or at least “advanced beginner”) as quickly as we can, and when it takes five times as long, we can get frustrated.

The answer is to forget about the pace of our progress, but just focus on enjoying the process of learning.

It’s like when you go on a hike, and you’re fixed on getting to your beautiful destination … but it’s a long journey, and you get frustrated by how long it’s taking. Instead, focusing on the journey itself is a better way of traveling. Enjoy the scenery, the exertion, the beauty of each step.

When we’re learning, instead of focusing on where we want to be, we can enjoy the particular focus we’re studying right now. We can be grateful for where we are, for having the opportunity to learn at all.

We can enjoy the falling down, and any progress we’ve made so far.

Whenever we find ourselves wishing things were moving faster, that’s a good sign to change focus to where we are.

Fourth Key: Learn to Relish Uncertainty I think the uncertainty of learning something new, of being in such a foreign place, is probably the most difficult thing. We don’t like that uncertainty, and we usually shy away from it.

With conscious practice, we can change our feeling about uncertainty. We can start to find the joy in this place of not knowing, of not being in complete control, of not having solid ground under our feet. That might sound weird, but it’s possible.

Let’s take a few examples: • You’re learning to play Go, and you are playing your first few games. You keep losing, you don’t have any idea where you should play, you worry that every stone you place is a big mistake. This is a place of uncertainty. Can you enjoy this process of trying something and not knowing how it will turn out? Be curious about what might happen when you play your moves? See it as an exciting opportunity to experiment, to explore, to play and have fun!

• When you’re learning a language, you might be deeply afraid of speaking, because you don’t know what you’re doing (uncertainty). But if you don’t speak, you’ll never learn. So instead of fearing this uncertainty, you dive in and make a complete fool of yourself. Better to be a fool who’s learning than the chicken who doesn’t learn anything new. It’s like dancing wildly with random moves in the middle of a crowd … just have fun being silly! You can do the same thing with speaking a new language — try it, look foolish, enjoy this place of wild abandon.

• When you’re learning to play music, you can get stuck on the certainty of learning songs from sheet music, because it’s easy to just follow pre-written instructions. But you don’t really learn until you put the sheet music away and try to play the song on your own. And you really learn when you try to play without following someone else’s pre-written music — just playing your own song, riffing and making it up as you play. Of course it’s much more uncertain, and will probably suck. But so what? Just have fun and make stuff up. Relish this place of creation and uncertainty.

So uncertainty can be enjoyed if we think of it as play. If we think of it as creation, learning, exploration, curiosity, finding out, experimenting, openness and newness. It’s courage.

Be courageous today, and put yourself in a place of uncertainty. And then let your heart fill up with the freedom of not knowing and flying without a plan.

Leo Babauta

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

ZEN HABITS

2017 August Issue | 13

䤀渀猀甀爀愀渀挀攀 昀漀爀

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吀栀攀 猀攀挀甀爀椀琀礀 昀漀爀 琀栀椀猀 瀀爀漀搀甀挀琀 椀猀 瀀氀愀挀攀搀 瘀椀愀 䰀氀漀礀搀猀 漀昀 䰀漀渀搀漀渀 愀猀 眀攀氀氀 愀猀 漀琀栀攀爀 䄀甀猀琀爀愀氀椀愀渀 愀甀琀栀漀爀椀猀攀搀 椀渀猀甀爀攀爀猀⸀ ㄀㠀 ㌀㔀㔀 ㌀㐀㐀 椀渀昀漀䀀愀甀猀猀椀攀瀀愀椀渀琀攀爀猀渀攀琀眀漀爀欀⸀挀漀洀⸀愀甀 眀眀眀⸀愀甀猀猀椀攀瀀愀椀渀琀攀爀猀渀攀琀眀漀爀欀⸀挀漀洀⸀愀甀 14 | Aussie Painters Network

ALWAYS PRESSED FOR TIME?

Here’s What To Stop, Keep And Start Doing Today On a daily basis trade business owners contact us desperately seeking help. These trade business owners are often in different stages of business, or in various trades BUT they all have one common challenge…

They simply “have no time!”.

In fact, they have often described themselves as being a “rat on a wheel” - their days are monotonous and repetitive… Rather than moving forward, they are JUST getting by, getting things done because they have to.

Sounding familiar?

It was certainly this way for us when we first started our own trade business but we found a better way, and so can you! What did we do?

Firstly, we went back to basics…

Everyone is guaranteed 24 hours in their day, and 7 days in their week.

It’s your job to approach your day wisely by maximising your time.

These tasks serve no higher purpose, they are a waste of time and your life will not be worse off without them.

Start by recording every single task you do in a week. When I say everything, I literally mean EVERYTHING (including watching TV and mindlessly scrolling Facebook).

Some guys have recorded this in 30minute increments to really feel the vibe of their day.

It’s time for you to STOP doing these tasks.

THEN, follow these 3 steps: 1) STOP 2) KEEP 3) START STOP

They are sucking energy from you and time out of your day.

The things that you aren’t an expert in…

In addition to stopping everything that doesn’t truly matter, you must also stop anything that… a) You aren’t an expert in AND b) Is cheaper to outsource

The things that don’t matter…

Cross off everything on your list that is of zero importance.

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Many trade business owners will shy away from investing in outsourcing, for example, a decent bookkeeper because they see this as an unnecessary splashing of cash.

Although the upfront cost of an expert such as a bookkeeper may seem expensive, when you do the math, you will be surprised at how worthwhile this investment would be.

In order to distinguish between tasks you should keep and those you should outsource you need to: 1) Determine your worth per hour.

How much do you pay yourself?

How much could you make per hour on a job?

2) Calculate how long it takes you to complete a task 3) Enquire how long it’d take for someone else to do it and the cost 4) Establish if your worth per hour is MORE than the cost of someone else doing the task.

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If your worth is say $150 an hour and it takes 3 hours to do a tasks, that’s $450.

If you can outsource a task, such as bookkeeper, for $100 an hour and it takes them 2 hours to do it (and they’ll probably do a better job of it!), that’s $200. $450 - $200 = $250 Therefore, it’s more profitable for you, in this instance, to STOP this task and outsource it.

KEEP

Yay… the hard part is done.

Your list should now just be full of tasks that are both vital to your day and most profitable for you to do them.

START

What to do with all your spare time?

Start business building activities, tie up the loose ends you left hanging

due to your busyness or spend time with your family and friends.

What seems like a very simple task, to split your every day activities into what you should STOP or KEEP and then what you should START doing, is probably one of the most important actions you could DO. Like many other painting business owners, we won’t be surprised when you thank us for it.  Want to know MORE about gaining back time so that you are no longer be like a rat on a wheel?

Let us show you how at The Future Tradie live event… CLICK HERE for details and to get the special Aussie Painters Network ticket offer of $47 plus bring a friend for free.

Angela Smith

Co-founder – Lifestyle Tradie

“Helping Trade Business Owners Fast-Track Financial & Lifestyle Success”

2017 August Issue | 17

Public liability insurance for painters, from just $407 - Includes cover for spraying - Unrestricted heights option* - Cover from $5m to $20m - Monthly payment options - Easy online application

Premium of $407 is based on $5,000,000 public liability insurance policy paid annually for a painting business in QLD with one manual worker. * A 15m height limit applies, but can be removed for an additional premium.

Insurance Services Pty Ltd t/as Trade Risk (CAR 422847) is a Corporate Authorised Representative of 18Westcourt | Tradesman Aussie General PaintersInsurance NetworkBrokers Pty Ltd, Australian Financial Services Licence No 238447. ABN 81 009 401 772.

SOLE TRADERS

Insurance Guide Insurance Types • • • • •

Public liability insurance Tool insurance Commercial motor Professional indemnity Business pack

Being a Sole Trader

Operating as a sole trader is certainly the easiest way for a tradie to start doing business on their own.

Whether you’re subcontracting to others or running your own jobs, being a sole trader is a cheap and easy business structure for a tradie to go with.

There are some downsides however, and one of those is, you and your business are treated as one and the same.

If something goes wrong in your business as a sole trader, there is nothing to protect your assets such as your family home.

This means it is arguably even more important for a sole trader to have the right insurance in place, and especially public liability insurance.

Insurance Types

There are many different types of cover which can fall under the sole trader insurance category.

Public liability insurance is a big one, and for tradies there are your tools and your ute or van that need to be protected.

Depending on how complex your business is there may be other needs, but for now we’ll stick with the main cover types.

Public Liability Insurance For any sole trader, public liability insurance is the most important form of cover, and the one you’ll most likely be asked about.

If your business suffers a loss, perhaps as a result of being sued, you are personally liable for that loss.

This differs to a Pty Ltd company structure, where the loss is generally contained within the company.

This is the insurance that could well save your family home and other assets in the event that you are sued over property or personal damage.

Your public liability policy will respond in the event that you cause property damage or personal injury to a third party.

At the low end, this could be basic property damage caused to a client’s home or contents.

At the high end we have claims involving personal injury. If your negligence was to result in the death or serious injury of another person, you could be liable for hundreds of thousands, if not millions of dollars.

Even the lowest amount of cover for public liability is $5 million, which can give you the peace of mind knowing that you are protected if things go wrong.

If you feel you need greater protection, cover amounts of $10 million and $20 million are also available.

2017 August Issue | 19

Tool Insurance Any tradesman operating on their own is going to need a solid collection of tools and equipment.

$5,000. For some people this is no problem, whilst for others it means the policy is not the right fit for them.

It is this gear that you rely upon in order to make a living, so if anything was to happen to it, you need to get it sorted quickly.

Commercial Motor The majority of tradies operating as sole traders run their business from home with a ute, van or truck.

In the case of utes especially, often these double as the tradies main form of transport rather than being a pure business vehicle.

Sadly, tool theft in Australia is rampant. At Trade Risk we deal with multiple tool insurance claims every week from tradies who’ve had their gear taken.

For this reason we often find that sole traders have their ute or van insured through a typical car insurance provider such as NRMA or AAMI etc.

It’s a similar story with signage.

Some of these policies might cover a few hundred dollars of signage if you tell them it’s for business use, but they generally won’t cover your $4,000 wrap.

This is where a proper commercial motor insurance policy can help.

Your broker can work with you to ensure the true cost of your vehicle is covered. Not just the vehicle itself, but the thousands of dollars’ worth of modifications you shelled out for.

Professional Indemnity Insurance The majority of sole traders working in the trades will not require professional indemnity insurance, but that doesn’t mean you shouldn’t know about it.

Just like you insure your house or your car, you can also insure your tools and equipment.

Tool insurance can cover you gear for a range of risks including fire damage, damage caused in a vehicle collision and theft following forced or violent entry.

When purchasing tool insurance it’s vital to check for any item limits on the policy.

Some policies will only cover items over a certain value if they have been specified on the policy.

This amount is typically $3,000 or $5,000 depending on the insurer.

One of our more popular tool policies won’t cover any single item with a replacement value over

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Whilst these are fine insurance companies, you need to check if you are properly covering your vehicle for business use.

Furthermore, you need to check what you’re actually covered for.

Policies through the big retail insurance companies are great for the typical commuter, but can fall well short when it comes to business use.

For example if your ute or van has a few grand worth of fit out, such as boxes, racks and shelving etc, these might not be covered under a standard policy.

Professional indemnity is in some ways similar to public liability, but instead of covering your physical activities it is more about advice based activities.

So who needs it then?

Essentially anyone who provides advice for a fee.

If for example you’re a carpenter and you provide advice to a homeowner as part of some building work you’re doing, this is most likely not going to need professional indemnity cover.

If you’re lucky enough to be purchasing your own premises, we can also assist with insuring the building itself.

But if you’re a carpenter and you’re going out providing written reports to homeowners, and they’re paying you for that service, then you should definitely be considering professional indemnity.

Then you’ll need to insure whatever is in the premises. This could be stock, machinery, furniture, computer equipment or whatever else your business needs to run.

We strongly recommend speaking with one of our insurance brokers to determine if this type of cover might be right for you.

Business Pack Although sole traders are typically home and vehicle based, there are some who’ve taken the next step and have their own premises.

If you’re renting the premises, your lease will most likely require that you hold public liability of $20 million and glass cover.

It may be a small warehouse, office or even retail space. Either way you need to ensure the premises and everything in there is properly insured.

These are both quick and easy (and relatively inexpensive) to setup, and we can issue the certificate of currency that the property manager or owner will require.

All of these different risks (and many more) can be insured under a single business pack policy via Trade Risk.

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Shane Moore Trade Risk

2017 August Issue | 21

Give Your Business a

Financial Health Check In the previous editions, we’ve covered the importance of balancing the ‘Three-Legged Stool’ when running your business, which are Sales & Marketing, Production and Finance. In this article I’m going to focus on just one aspect of the stool: Finance. You see, when you havea comprehensive financial plan,it will not only help you increase your profits, it will also help you save tax.

1.Develop a BudgetYour budget is the backbone of your business. Setting up a budget that shows how you are going to spend your business dollars over the financial year is one of the most critical tools you have as a business owner. Yes, it will take timeto set it up from scratch, but it will also pay off, and it’s not that complicated. The easiest way to do it is by using a simple spreadsheet which needs to detail all of your business expenditure likeoverheads and discretionary costs to run the business, payroll costs, tax obligations etc.

You’ll also want to set up acashflow forecast so you can monitor your incomings and make sure that you have enoughfunds available at the time the funds for your expenditures are needed.

2. Create a Tax PlanI often get asked “What is a tax plan”? The straight answer to that is: it’s similar to a budget but not quite. A tax plan allows you to work out, based on previous year’s figures and current projections, what your tax liability is going to be this year.

Your tax plan also has an impact on your budget and extends into other areas of business, ie how you increase your bottom line by making smart buying decisions. For example, when reviewing your allowable business deductions and your asset depreciations, you will be able to invest in capital expenditure ata time when it will also lead to a decrease in your tax burden.

The 10 tax saving strategies below are examples of legal ways to bring down your tax burden. Not all are applicable to all kinds of business, so you’ll need to check with your accountant about which ones are the right strategies for you.

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1. Salary Packaging Private Motor Vehicles-Makes private motor vehicles tax deductible.

2. Concessional Super Contributions - $25,000 deductible contributions cap (per taxpayer).

3. Establish a Family SMSF-Most tax effective investment vehicle (0, 10 or 15% tax rates) 4. $20,000 Asset Write-Off-Upfront deduction for depreciating assets.

5. Employee Meal Expenses on Business Premises-Makes private meals tax deductible.

6. Reducing Super Guarantee Payments-Eliminates super guarantee payments to contractors.

7. Share Buybacks-Enables shareholders to access companies retained earnings and keep maximum taxrates at 27.5%.

8. Companies-27.5% company tax rate (and reducing to 25%).

9. Transferring Business Premises into SMSF-Provides asset protection benefits plus tax savings on rental payments made.

10. Utilise Business Goodwill to Pay Out Your Private Mortgage Don’t just take my word for it. The Australian Tax Office has stated that “You have the right to arrange your financial affairs to keep your tax to a minimum – this is often referred to as tax planning, or tax-effective investing. Tax planning is legitimate when you do it within the letter and the spirit of the law”.

3. Plan your Capital Expenditure Most tools and equipment have an expected lifetime and will need replacing at some point. Who hasn’t been in a situation where working with old tools has set you back from completing your job the way you wanted. Ideally, you would be looking at upgrading or replacing your assets before they give you grief. That’s why it is a good idea to plan your capital expenditure, and make allowances for that in your budget, before you get too frustrated. Capital expenditure also includes online tools like your website, your accounting programs or other types of specialised software you might be using. Capital expenditure is just a fancy name for buying business assets like cars, tools, machinery, office furniture and equipment, and the like that, in the eyes of the taxman, have a value which depreciates over time.

While the value is depreciating, it will decrease your tax burden.

When the value has fully depreciated, the asset is no longer reducing your tax burden.

You can see now how the Tax Plan we’ve talked about before integrates with the forward planning of

your Capital Expenditure, and how capital expenditure interconnects with your Budget.

4. Review your Financial Structures Your job as a business owner includes making sure that your business gets the best deals, while weighing up your business needs for quality products and how critical they are for you. That’s why it’s a good idea to periodically review your financial commitments like leases, mortgages, loans and supplier arrangements. As the marketplace changes new deals are offered on all kinds of products.

The most well known example of this are interest rates in the banking sector, though many companies in other industries also regularly change their pricing structures; mobile phone and internet plans come to mind.

When thinking of taking a new loan or renegotiating one, remember that there is a difference between ‘good debt’ and ‘bad debt’. One of

the most efficient ways to use debt can be borrowing to invest in an asset—such as property or shares— which can generate income and grow in value while the interest charged on the debt is tax deductible.

The least efficient debt is money borrowed through credit cards and personal loans to pay for dayto-day expenses or an asset—such as a car—that decreases in value.

Decisions you make when you review your finances will always have an impact on both your tax liabilities and your budget. When you do your homework right, it will have a very positive impact on your bottom line, too.

If you are stuck for tools or templates to do this, just contact our office on 07 3399 8844 and we can help you out.

Copyright © 2017 Robert Bauman.

Call Us: (07) 3399 8844

2017 August Issue | 23

TOP REASONS TO GET A PROFESSIONAL PAINTER

Pictures brought to you by the Internet

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2017 August Issue | 25

DON’T BE A TOOL!

Make Sure Yours are Covered Having your tools stolen is an absolute nightmare as a tradie. It’s not just a matter of losing your tools and spending money to replace them. You also lose precious time… something you can’t afford to waste if you’re on a tight deadline and an even tighter budget. It’s vital for you to think how you can cover yourself in case your tools get stolen. The solution? Consider getting an insurance for your tools.

Tools insurance aren’t uncommon and it’s being endorsed by a lot of experts, but some tradies would often put it aside because they think it’s an additional expense their businesses can forgo until they are financially sound. That mindset can become a disastrous mistake since there are many factors you can’t control. Unless you’re a genuine psychic, you can’t foresee if you’ll lose your tools in an accident or if they’ll be filched off straight from your ute.

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Unfortunately, it’s quite common.

The statistics aren’t encouraging, and even without the numbers, you probably already know a couple of tradies who’ve had their tools stolen, or have experienced it yourself before. Year after year, authorities see a rise in reported tools thefts.

They are often snapped up from unattended vehicles and even job sites! There are security measures you can and must take (bolts and locks, security cams for example), but if your tools are insured, you’ll sleep better knowing you won’t have to spend most of your savings trying to replace them if worst comes to worst.

What will the Tool Insurance cover?

There’s no insurance policy that will cover any and all circumstances, keep that mind. Generally, tools will

be covered if there is evidence of forced entry. If you left your tools lying around the job site for thieves to simply pick up, there’s a big chance your claim will be denied.

Most policies also stipulate that if the value of your tools exceeds a certain amount, it has to be declared in your policy. Failure to do so means you’ll only be paid the maximum coverage per item even if the value exceeds that amount.

Get all the facts. Since no two insurers are alike, read your policy thoroughly so you’ll know what’s covered and what’s not. Check if you can make a claim if you’ll lose your tools due to accidents, if your stocks are included in your coverage, and what’s are the limits to your claim.

2017 August Issue | 27

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You’ve already got Tool Insurance. What now?

Good job for taking interest in protecting your assets proactively. The next step is to make sure you’re meeting the terms of your policy so that in case you’ll need to make a claim, there won’t be any snags to delay you.

Here are some basic tips to consider: • Keep your tools secured. I can’t highlight this enough. If your tools are usually in your ute or shop, be sure they are bolted down or there are solid locks to keep them inside.

Good security costs money, but it’s an investment you shouldn’t pass up because this means less opportunity for thieves to take advantage of.

• Keep a record of all your tools. If you’re going to make a claim, your insurance company will ask for a list of your missing tools, plus evidence of ownership. Keep a copy of receipts as these are the best documents you can attach as support, but you can ask your insurer if they’d accept packaging and manuals. In your record, also list down your tools’ serial numbers and models when available.

Even with insurance, it can take a week or more for tradies to replace their equipment. Protect your business and income.

Protect your books as much as you protect your tools! Contact Price Bookkeeping Solutions now. With me taking over your bookwork, you’ll have a thriving business minus the headache and stress.

• ID your tools. This is still being debated upon by some tradies because engraving or marking your tool can void its warranty. Check with the manufacturer first and if it’s not a problem, go ahead and engrave the tools to identify it as yours. This will increase your chances of recovering your gears in case the Police will find them.

Sandra Price www.pbks.com.au

Trace My Business Keep a record of ALL your clients • • • •

•

Where the referral came from

The quote success and failure rates

•

Suburb comparisons

The different advertising campaigns

•

(what (wh works and what doesn’t) First projects vs repeat business

New vs existing revenue and projects

•

Yearly and overall client revenue

• Growth analysis

Projects, who referred them, and the referrals they subsequently provided

Written and Developed by Jim Baker 2017 August Issue | 29

30 | Aussie Painters Network

A Bad Wrap for the Builders Painters tell us what they really think!

We must have hit some sort of critical digital mass over recent weeks, because we’ve had so many requests to join our Facebook page, the number of new likers and members to the closed group has just gone off! There’s been a lot of interesting contributions from Painters and more debate and discussion than ever before.

We don’t mind stirring the pot a bit ether, (excuse the pun!) to get a bit of conversation going.

Recently, we posted a controversial question to the industry – one we knew would get a pas-

Tell us why you wouldn’t or shouldn’t work for a builder. It cer-

sionate response.

tainly seems that we have a bit of an issue here. Either your average Builder has a genuine problem with respect and their attitude towards the work Painters do, or there is a problem with practically every Painter’s perspective.

Check out the next page on how it went: I am going to start a thread.

WHY SHOULDN’T YOU WORK FOR A BUILDER??

Go for broke and give us your reasons.

2017 August Issue | 31

* Cheap rates * Never pay on time! * They expect damage to our finished work(from other trades) to be repaired for free. * Get paid on their terms not ours * Because they have NO respect for our industry! * Expect you to drop everything and start their jobs. * Not organized. Painter’s will fix it * 80% think they run the world * Think that we owe them! * Worst part is when they put their companies into voluntary liquidation and just start up again under a different name. * There are still the minor exception old school gentleman builders out there - if you can find them who pays well n on time.

* If you can get enough private work stay away from builders. * I don’t think I will have enough room for my list, However I will give a few. Builders always see painters as the lowest of lows however as we all know Builders will do their best and we have to gap the rest.. * Also love how they get quotes and then at the end the money gets drip fed as they have run out of doe. How hard is it to put everyone’s money aside so you don’t screw everyone.

* The pr^cks never pay on time, If they are held up on their end with finish times they expect the painter to shorten his or hers time frame to get them back on target, it ain’t my problem your guys are slow.

* I just picked up two whose painters got complacent and greedy started doing crap work & overcharged; their loss my gain đ&#x;‘Œđ&#x;‘? * As a rule I try not to work for builders. If a builder approaches me I normally tell them a few home truths and that they can get the owner to deal with me direct

* I happily walked away 9 years ago from project builds, told the supervisor you don’t deserve me! Lol * It’s amazing how a job can sit there for weeks with no one onsite and then we need to work miracles at the end of contract build.

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* They don’t give you coffee, cake or breakfast in the mornings. Just ask my guys. They love the appreciation my clients give them. * To builders we’re the most lowly regarded but most highly scrutinised.

* I love that they call you and tell you to start and you turn up with either no front or back door fitted no archs and skirtings on and they tell you to start undercoating. * I had a job where the upstairs was ready for me, downstairs had no windows in the middle of winter so I’m to start upstairs. However the tiler starts the bathrooms in 2 days but I can work around him. * Another great builders trick is to tell you the scaffold has to come down so the deck out the back can be built mind you it took 2 months before said deck got started * Builders damage finished work and expect the painter to fix it with no extra charge. Oh I’m sorry, I must have got that stupid marked paint you know the one that looks like people have marked it but it’s in the paint. * Damage IS NOT a defect Who has said they are a bunch of cunning low life thieves....

* Just finished a set of 6 units and spent 122 hours doing a final which about 3 hours of were or fault the other was all the other trades when I told the BUILDER THIS IS BULLSH*T! His reply was - Not my problem, isn’t that covered in the square meters? * There are three G’s of builders.

They start out as GENEROUS; THEN GRATEFUL; and lastly; GREEDY. process takes about 2 years * I don’t think I’ve come across one that’s’ worth working for. First house is always a gem. Then they progressively get worse and worse.

Like the payments they get slower and slower.

眀眀眀⸀氀攀愀搀⸀漀爀最⸀愀甀

Seven Tips for Successful

BUSINESS CARDS

As a business owner I know that the most important thing in my ‘tool box’ is my business card. They are my shop window!

I find that most people are unaware of the importance of having a business card that really shows who they are and what they do. You will be judged on your business card; the professionalism displayed, the thickness of the card, the clarity of the writing and design, the message that is there, etc. My seven tips for successful business cards are: 1. ALWAYS have your business cards easily accessible I am surprised at the number of people who say to me ‘I do not have a business card as I do not need one’. I am usually rather shocked when I hear that from a small business owner, even a successful one.

In fact to me, it is rather arrogant and I wonder how their business is really progressing.

Your business card is your shop window, it is the way people can make contact with you if they need to or pass on your information to someone else. I am always happy to pass on a business card to someone if I feel that it will be useful to them.

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2. NEVER run out of cards Running out of business cards to me is something in business that is inexcusable. I believe that if you are a networker you need to be spreading your cards around as much as possible. You never know who may want to make contact with you. Be aware that your branding needs to be on your business card, your website, you social media, you emails etc. Remember, your card is your shop window and you will be judged on them.

3. Have your PHOTO on your card if you are a small business Having your photo on your business card will take 15 minutes off your first meeting with someone new.

Isn’t it nice to meet someone that you have an idea of what they will look like? The judgement and apprehension of that first meeting is no longer there if you know what to expect when you first sight some-

one physically. This is where social media has been so very valuable in relationship building.

A photo on a business card helps people remember later who they received a card from as a memory jogger. A card with a photo on it is more likely to be kept than one that hasn’t one on it.

4. Make sure all your information is CORRECT Given that your business card is your shop front, having the correct and updated information on your card is REALLY IMPORTANT. I find that so many people do not get new cards done when there are information changes. You will be judged by your card and if you write on it with changes that makes you look unprofessional. If the information changes, throw out all the old ones and get new ones done! Do you want to be seen as unprofessional?

5. Give RELEVANT information about your business As mentioned before, your business card is your ‘shop window’.

For many it is the first time anyone gets to find out a bit about you. If this is the case, it is IMPORTANT to make sure that you give them some information about what you and your business do. This needs to be in very few words so make sure you give enough that will create enough curiosity so that they want to talk with you or check out your website.

6. Make sure the Writing on the card is easy to read The thing I find hardest with people’s business cards are the ability to read easily the information on them. Often the font is difficult to read as the graphic designer has

decided to use a fancy font and/ or the font size is far too small. Be aware that people of all age groups need to be able to read your card easily. For me, if it is difficult to read with a magnifying class, the card goes in the bin. So make sure you use a good graphic designer who understands the importance of having a good business card that is clear and concise.

7. UNDERSTAND other cultures in the handling of your cards.

This is really important having become such a diverse multicultural society. Note that in some cultures

it is important when handed a business card, that it is disrespectful to not look at it and study it for a few seconds (even if there is not much on it). Acknowledge receiving the card and do not put it straight into your pocket.

I suggest that you learn some of the cultural things necessary, especially if you are travelling overseas, for example the correct hand to pass on your card, the quality of your card, the handling of yours and others cards etc. This is a big subject in itself … use Google as your friend with this.

Jennie Gorman www.connexionsunlimited.com.au 2017 August Issue | 35

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Making Progress Payments throughout the job are a must to ensure your hard work isn’t unrewarded.

As a Tradesperson and business owner, there are certain measures that you need to observe to ensure you are paid fairly and not hung out to dry at the end of a job. It’s important to have contracts in place where requiredand in any case it’s wise to have written agreements in place regardless of the total.

Within these agreed conditions for the work, it’s crucial that you incorpo-rate progress payments to cover you and your staff for materials, time, wages, and to ensure you don’t get to the end of the job out of pocket. Otherwise you are acting as your client’s bank and financier, rather than service provider, and run the risk of not being paid at all.

Similarly, you don’t expect your client to bear all the risk by paying you up front in entirety. Many people will have experienced that to pay a tradie for the whole job before the work begins, can be a good way of ensuring you never see them again! To protect both parties from the unscrupulous, progress paymentsestablished for various points throughout the job will make sure work is being done satisfactorily and your business isn’t struggling to carry costs unnecessarily.

Be sure to communicate well with your client, whetherthere is a

contract or not – they need thorough understanding of the various stages of the job so that they appreciate the need for progress payments; and most importantly, that the job won’t advance without them.

Many customers won’t realise the amount of work that is required to in preparation of the surfaces, or the expense outlaid for paint and materials. So it’s a must that you convey this information in detail – it will make it much easier to secure each payment, and to justify the progressive amounts. Also recognise the need for variations or amendments to the scope of work to be discussed, and signed off on, especially regarding how they will affect the staged payments – when and how much is to be handed over.

As usual, honest and open communication with your customer should ensure any problem with progress payments is avoided, assuming they are trustworthy. If they aren’t, then progressive payments for the

work will ensure you can cut your losses before they are too great.

Dealing with Builders Painting sub-contractors can take action to secure progress payments for work they performed or goods they have supplied. The Building and Construction Industry Security of Payment Act allows for theadjudication of disputes over progress payments and provides for a fairer and quicker payment system for all parties. Laws now allow sub-contractors who believe they are entitled to a progress payment to seek to ‘freeze’ payments to a contractor or other entity that engaged them. http://www.painters.edu. au/Business-Development/LegalAdvice.htm Above all, simply be up front and clear with your clientin each job to ensure you aren’t painting someone’s house purely for the love of it! If you come across difficulties in this regard, give us a call for assistance.

2017 August Issue | 37

Glossary of Paint & Painting Terms

Ll

LATEX Originally a natural rubber latex; now also applied to dispersions of various synthetic resins.

LAYING OFF The final operation in the brush application of coating materials, whereby unevenness in the film surface is reduced by light brushstrokes.

LEAD-BASED PAINT A coating material that contains lead-based pigments in substantial quantities.

LEAFING The action involving the floating and slight overlapping of certain metallic and other pigment particles, in the form of thin flakes, in the surface of the film of a coating material.

LEAFING The ability of an aluminum or gold bronze paint to exhibit a brilliant or silvery appearance. Good leafing is caused by using treated or coated pigments along with suitable bronzing liquids.

LEVELLING The flowing out of a coat of wet coating material to give a smooth surface.

LIFTING Softening, swelling, or separation from the substrate of a dry coat as the result of the application of a subsequent coat.

38 | Aussie Painters Network

LIGHTNESS The proportion of light that a surface reflects, irrespective of hue and saturation.

LINSEED OIL The drying oil obtained from the seeds of the flax plant Linum Usitatissimum.

LUSTER Having the appearance of depth. The term is also used as a synonym for gloss.

Mm

MASKING Application of a temporary cover to that part of a surface that is not to be painted.

MATT The description of a painted surface that scatters or absorbs the light falling flat on it so as to be substantially free from gloss or sheen when viewed at any angle.

METALLIC PAINT A coating material that upon application gives a film with a metallic appearance. The effect is normally produced by the incorporation of fine flakes of metals such as copper, bronze or aluminium, that are non-leafing or leafing; the latter giving a more lustrous appearance.

METAMERIC MATCH A match in colour between paints under one illuminant but not under others.

MILDEW RESISTANCE The ability of a coating to resist the growth of molds and mildew. Mildew is particularly prevalent in moist, humid and warm climates.

MILKINESS A whitish or translucent appearance in the normally transparent film of a varnish.

MILL SCALE Layer of iron oxides produced during the hot rolling of steel.

MIST COAT A thin coat of paint, not intended to form a protective film, but to enhance the adhesion of subsequent coats.

MOISTURE-CURING COATING A coating material in which the film cross links and hardens when exposed to atmospheric moisture.

MUD CRACKING Deep, irregular cracks that resemble dried mud form in dry paint film.

MULTI-COLOUR PAINT A coating material, usually for application by spraying, to produce a mottled or flecked appearance in two or more colours.

Nn

NAILHEAD RUSTING Rust from iron nails that penetrates or bleeds through the coating and stains the surrounding areas.

NAPHTHA A petroleum distillate used mostly by professionals (as opposed to do-it-yourself painters) for cleanup and to thin solvent-based coatings. A volatile organic compound (see VOC).

NITROCELLULOSE The major constituent of most lacquers, made by reacting nitric and sulfuric acids with cotton. .

NON-VOLATILE CONTENT The quantity of material remaining after removal of the volatile constituents of a paint; may be expressed by mass or volume (volume solids).

Oo

OCHRES Also “ochers.” Earthy iron oxides ranging in color from yellow to brown, and to red.

OIL PAINT A paint that contains drying oil, oil varnish or oil-modified resin as the film-forming ingredient. The term is commonly and incorrectly used to refer to any paint soluble by organic solvents.

OPAQUE A material which will completely obliterate or hide an underlying material. The quality of not permitting light to pass through, or that which one cannot see through.

ORANGE PEEL The uniform pock-marked appearance, in particular of a rolled film, resembling the peel of an orange due to the failure of the film to flow out to a level surface.

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Any Terms that are identified within the painting & decorating industry as “defects”, images; possible cause; solution and prevention methods are provided.

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More of “L” next month...

Glossary of Paint & Painting Terms

2017 August Issue | 39

䌀漀渀琀愀挀琀 䄀甀猀猀椀攀 倀愀椀渀琀攀爀猀 一攀琀眀漀爀欀 昀漀爀 洀漀爀攀 椀渀昀漀爀洀愀琀椀漀渀

40 | Aussie Painters Network

䴀礀 䠀漀甀爀氀礀 刀愀琀攀 䌀愀氀挀甀氀愀琀漀爀

眀眀眀⸀洀礀琀漀漀氀猀㐀戀甀猀椀渀攀猀猀⸀挀漀洀 2017 August Issue | 41

The Industry

Idiots

42 | 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

2017 August Issue | 43