Aussie Painting Contractor May 2018

Know your Customer..

Win that quote!

Painting by Numbers

Budgeting and your business

Four antidotes to procrastination

The main ideas are to sleep, disconnect, get away from everything.

Bankruptcy!

How would it affect you?

www.aussiepaintersnetwork.com.au

CONTRIBUTORS • Alysia Blackham • Angela Smith • Anthony Igra • Caroline Miall • Jim Baker • Leo Babauta • Lotfi Belkhir • Monroe Porter • Robert Bauman • Sandra Price

EDITOR Nigel Gorman

From the Editor Hey Everyone, Welcome to the 77th edition of the Aussie Painting Contractor Magazine.

The past month has been a busy one, as always. We’ve continued to assist our Members with issues they encounter; from chasing monies owed, to managing the presence of lead paint on their sites.

We have also had businesses come to us who are being audited by the QBCC for not doing the Home Warranty Insurance. On that note, we were also contacted by the Qld Home Warranty Insurance Scheme to assist them in an education program that will be specifically designed for the painting industry. We will keep you up to date with this and look for more information on it in next month’s edition.

We have travelled far and wide training apprentices around Qld this month; including Proserpine, Mackay, Rockhampton, Gladstone, Hervey Bay, Maroochydore and the Gold Coast. If you are looking for a flexible form of training your apprentices let us know. We will come to you! What more could you want?!

Enjoy the pages within, and have a great month.

EXECUTIVE EDITOR Caroline Miall

Until next month, Happy Painting!!

GRAPHIC DESIGNER J. Anne Delgado

Nigel Gorman

nigel@aussiepaintersnetwork.com.au

07 3555 8010

Contents 6

The 4 Customer Types You Need To Know To

Win That Painting Quote The Hidden Variation

8

When it came time to do the work, the local council would not allow a crane that size in the area.

Four antidotes to PROCRASTINATION 17 ways to get REPEAT BUSINESS

Why mandatory retirement ages should be a thing of the past For some; A difficult thing to say

Do you know what your 31 staff achieved last week?

22

Painting by the Numbers

You work for yourself for a reason

11

How smartphones are heating up the planet

14

How bankruptcy CAN AFFECT A TRADIE

make a commitment NOW to try at least one, if not more, of these tactics

17

25

The owner now must rearrange their time to bring more value to the company.

36

Industry Idiots

28

34

37

Important Contacts

sometimes it’s a losing battle and the only way out is bankruptcy

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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The 4 Customer Types You Need To Know To Win That

Painting Quote When it comes to winning the quote, a one-size fits all approach to your communication with customers could be detrimental. Personality has as much of an impact on customer buying patterns as it does on whom individuals choose to befriend. As a result, you need to tailor your communication habits to appeal to your individual customer.

Generally speaking customers can be bucketed into 4 groups...

1. The Leader 2. The People-Person 3. The Free Spirit, and 4. The Task Oriented Understanding these customers, as well as your own personality type, will help you ‘make sense’ of your interactions, and enable you to alter your on-the-job habits so

6 | Aussie Painters Network

that you appeal to each particular customer type. It’s all about building rapport... an essential in trust building, and making a customer feel comfortable in your abilities to provide them the high quality service they’re looking for.

The Leader This customer has a dominant personality. They want to be delivered high quality service and quickly.

They’ve already done the research and are ready to buy if you prove that you can meet their needs.

When dealing with the leader, give them the quote promptly (Be upfront, they’ll be unforgiving if you give them blurred lines...), come prepared to do the work as soon as you can and don’t be offended by their assertive nature. If leaders are unhappy with the job, they’ll

let you know and you’d want to rectify the issue quickly...

As leaders are generally natural promoters they’ll spread the word when they’re happy with your service AND they won’t shy away from telling people if they aren’t. Wordof-mouth could make or break your painting business!

The People-Person This customer is loveable... They’ll want to have a chat, so give them your time!

When dealing with the people person ensure that you provide a personal touch! If they aren’t happy with your service, they’re nervous about bringing it up with you - invite them to provide feed back and ensure to be solution-oriented when they provide it.

If made to feel important, peoplepersons are highly likely to become repeat customers.

The Free Spirit This customer is an experimenter...

If you’ve got a new “innovative” paint product or colour you want to try out, they’re going to be up for it.

Free Spirits are fairly relaxed so ensure you secure payment asap.

You should know that they probably aren’t avoiding you if you are chasing up payments, they are just blasé by nature and will not react well if you are too pushy.

The Task Oriented This customer is a perfectionist...

Their standards are as high and as inflexible as can be.

Task oriented customers want to know the details of the job, exactly where their money is going and expect the painter to be on time.

When dealing with the task oriented, ensure your tradies do the job well and that they leave a mess-free environment (clean boot covers and a Tidy Tradie Mat are an essential).

Please a task oriented customer and you’ve won over their loyalty. They know you can meet their standards and they will choose you every time.

Regardless of who you deal with, your business needs solid on-thejob processes to increase your chances of winning every quote every time. We discuss processes and systems further at our live event The Next Level Tradie.

CLICK HERE to claim your FREE Aussie Painters Network ticket to our Brisbane, Melbourne, Sydney, Perth or Adelaide event in August.

Angela Smith

Co-founder – Lifestyle Tradie

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

FREE

Aussie Painters Network TICKET 2018 April Issue | 7

The Hidden Variation HOW you work is as important as your SCOPE of work A client of ours was contracted to demolish a section of building. In supplying the quote they based the price on a single day use of a 300 tonne crane plus a day of traffic control. However none of that was in the contract. When it came time to do the work, the local council would not allow a crane that size in the area.

At the end of the day the contractor had to use a 30 tonne crane over 8 days with 8 days of traffic control.

The important thing here is that the actual scope did not change: only the methodology. So while there is no variation in the scope of work, there is in how it was done.

Let’s look at another example.

Two companies bid for a demolition contract to take down an old townhouse. One company came in at half the other, and so were hired immediately. To the owners

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amazement this company turned up with 15 men who took the building down one brick at a time, cleaned the bricks on site, and resold them! The job took 6 weeks.

Now the actual scope of work was the same; demolish a townhouse.

But the method was completely unexpected. The owner was forced to wait and instead of a 4 day job, it was a 6 week job.

So work methodology is very important, because it can turn profitable work into a loss if you are forced to do work in a method that you had not budgeted for. So it is a good idea to insert in your quotes the ‘Assumed Method of Work’ into your quotes. This will mean that if you ultimately have to work in a different way then you can claim the cost difference even though the actual scope has not changed.

How should you go about deciding what to include in this part of your quote?

Consider all the elements that you are pricing:

This will include Labour – how much will you need to do the work using the selected method Materials – what brands have you chosen?

Plant & Tools – will you need to hire any of these?

Access Method – Will access to the work incur a cost? Is it straight forward or at heights?

Working Hours – are there enough each day for your method?

Cranage – will you get enough access to the crane?

Standard versus Customised work – have you allowed for any customised fabrication versus ‘off the shelf’ Critical path – does your work depend on other trades doing their bit first?

Once you have considered this, then you need to decide if any of these will incur a cost.

Ask yourself “Have I made any assumptions about how I will do this job?”

If the answer is ‘NO’, then you need not include anything because there are then no variables that can change to affect your profit. If the answer is ‘Yes’ then ask yourself “What are the possible alternatives I may have to allow for, for each of the elements I have priced”? For example, if you have assumed that you use Brand X lights and will install them off a scaffold, but may have to install Brand Y from a ladder, this will add to your cost. Carry out this exercise for each element.

Now ask yourself

“Will a switch to either alternative lose me money?”

changes will be worn by you because the scope has not changed.

If the answer is ‘Yes’, then specify your budgeted methodology in your quote.

So take the time to describe exactly what method your price allows for and then you will have the ability to claim for that ‘hidden’ variation: the method of work you have budgeted for.

So for example, you may specify that you will install Brand X lights off the builders scaffold. If the builder wants another Brand it will be additional cost. If you are forced to supply an EWP to install the lights that is also additional cost because you specified your method in your quote and your price allows only for your quoted method.

It is a crucial way top preserve profit.

Imagine if you quoted to simply ‘install lights’ You may have assumed the brand and access method, but because it is not in your quote then any

Anthony Igra

For more great articles and video

www.contractorsdebtrecovery.com.au

or call us on 1300 669 075

2018 April Issue | 9

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Four antidotes to PROCRASTINATION

Lately I’ve been procrastinating a bit more than normal, and of course it doesn’t feel great.

The truth is, though, that there are a number of good reasons for my procrastination: 1.) I’ve had some serious jetlag and sleep issues, which means my mind is tired and just needs some rest. So I am trying to be patient and take care of myself.

2.) I’ve had a lot on my plate, and it’s been overwhelming. Not just work stuff (though there’s lots of that), but family stuff too. So instead of holding myself to impossible standards, I have to be compassionate and allow myself to create some space, to simplify, to find a path that works for me.

I’m pushing myself into lots of uncertain territory this year. That brings up fears. I’ve been running from those fears at times, through procrastination. This is natural, and I shouldn’t beat myself up for it. In-

stead, I can be compassionate, and mindful, and find a path forward.

So if it’s not such a bad thing, my procrastination, and I shouldn’t beat myself up about it … problem solved, right? Or actually there’s no problem at all?

Well, yes … there’s actually no problem. This isn’t anything to feel bad about. However, I do believe that we should find an antidote (or two) to our procrastination, because it usually means we’re not doing the meaningful work we want to do in the world. It’s worth figuring out.

So in this article, I want to offer a few antidotes to procrastination, so that we can all find a path to doing the meaningful work we want to do, a path to offering our gift fully to the world.

Antidote 1: Self-Care The first thing to ask yourself, if you’re procrastinating, is: “Am I tired? Do I need to take care of myself?”

Often my procrastinating is simply because I haven’t been getting good rest, or I’ve been doing so much that I’m tiring myself out.

Maybe I went for a hard run in the morning and I’m not feeling energetic in the evening. Maybe I’ve been working hard on a project for a week without a mental break.

When this is the case, the answer is to get some rest. Take a nap. Sleep in. Disconnect, and read a paper book. Go for a slow walk, not for exercise but to get a mental breather.

Meditate. Do some yoga.

The main ideas are to sleep, disconnect, get away from everything, and perhaps meditate. Reflect, contemplate, find stillness and quietude.

Once you’re refreshed (and it might just mean a 20-minute nap and a short meditation), you can find mindful focus again.

2018 April Issue | 11

Antidote 2: Make a (Small) Commitment What helped me during one point of my procrastination was to make a commitment to a friend that I would do a bunch of work at a specific time. And if I didn’t do that work, I would have to suffer a consequence that we both agreed to.

Needless to say, I stuck to my commitment. I got the work done, no matter what it took.

Tomorrow I’m going to make a commitment to my wife to record a series of videos over two days. If I don’t … no coffee for a week!

When you make a sacred commitment to someone you respect, you’ll elevate the act from something you want to shrink from, to a vow that you want to uphold. Then doing the work will be something you want to do!

Protip: Make the action you commit to doing be fairly small. That will make it easier to get started, and you’ll be able to launch into your commitment without too much trouble.

Antidote 3: Create the Space A big part of the problem with constant procrastination is that we are in an environment that is conducive to distraction, to doing small tasks (like checking messages, answering emails, seeing how many likes you got on Facebook, etc.).

You might set yourself to doing the work, but then decide to just check one thing real quick. And that leads

12 | Aussie Painters Network

to checking another. And before you know it, a whole day has gone by. It’s hard to focus when you’re in an environment like this.

So the smallest first step you need to do is create the space. Turn off wifi, set up an Internet blocker, unplug your router, or get somewhere where there is no Internet. With an environment like this, you will be able to focus much better.

This is why my best writing is often done on planes or trains. Or when I use a distraction-free writing tool, or an Internet blocker. There isn’t anything else to do but the work I’ve committed to doing.

For other people, that might mean finding a space where you’ll do nothing but the work you’re going to do — a practice space for martial arts or music, for example, or a reading space with no electronic devices, or a painting studio in your garage.

Create the space, clear everything away, then get to it.

Antidote 4: Find the Joy in It When we think of the work as something huge and difficult, stressful and overwhelming, or full of fear … it’s hard not to procrastinate.

So a switch in mindset would be hugely beneficial. If you love doing it, you won’t procrastinate!

The trick is to find the joy in the activity. Don’t just do it like it’s a chore to be gotten over with, or some ordeal you need to make it through. Instead, see it as a treasured activity that you get to do.

Something that is a privilege to do, because not everyone gets to do this kind of work.

What an amazing thing it is to be alive, doing this activity right now, in the miracle of existence and of this moment! What a breathtaking thing, if only we don’t take it for granted, and fully appreciate the fleeting joyful beauty of this moment.

So in each moment, appreciate the profound power of what you’re doing, be fully immersed in it, fully mindful of the sensations of the experience and see if there isn’t the thrill of joy to be found in every motion, every breath.

Your brain will start to program itself to dive into this joyful activity, and you will be awake to the world.

Forever Nomad: The Ultimate Guide to World Travel On another note … my friend Tynan has a new book out: Forever Nomad.

It’s full of really amazing travel tips, and includes a chapter from me about traveling with your kids. Best chapter in the book, of course. But the whole book is worth buying.

Recommended! Get it today on Kindle.

Leo Babauta

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

ZEN HABITS

2018 April Issue | 13

17 ways to get

REPEAT BUSINESS

Q. I am finding it tough. Sales are slowing but I can’t figure out exactly why. No-one seems to be unhappy with what we do, and no competitor has entered the market. People seem to be buying less often and in lower numbers.

Your existing customers are your most valuable asset. This is because it’s easier and far less expensive to get an existing customer to buy off you again than to find new customers. So here are 17 ways to gain repeat business from existing customers, or to get your customers to think more positively about your business. The golden rule for success in business is to get your customers to believe that they are more important to you than anyone else.

Because small businesses are very diverse, not all these tactics will be relevant to your particular business. But many will be, so make a commitment NOW to try at least one, if not more, of these tactics.

Please also note that most of these ideas involve using your database of customers so make sure that you comply with the Privacy Act. (Check out the provisions of the Act at the Privacy Commissioner’s website www.privacy.org.au where you can download the Guidelines for Business’ file).

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1. Send a thank-you letter within two days of the customer buying off you. If at all possible, send a note the next day. It only has to be a handwritten note on a standard card though a professionally typed letter is better.

Other variations include sending a cartoon with your caricature to say thank you, or even a cartoon card (depending on who the customer is and how much they have spent).

2. Send an offer of a product or service that’s related to what they bought, usually after one month.

Offer a discount or special deal. If you don’t have any complementary products or services, then find a business that does and offer their products. Then get that business to do something similar with their customers, but this time with your products or services as the offer.

3. If you sell products (such as printers) that use consumables, use your database date-of-sale records to predict when they might be ready to buy these consumables so that you can send them a special offer. Use the same technique for products that have a definite useby date (such as timing the letter for when a lease arrangement on equipment is about to expire and newer technology is available).

4. Send out a questionnaire once every three to six months to see what your customers now want, and to see if your market has changed. Use the feedback to update your database and refine your product and services mix.

5. If you have a small number of highly loyal customers, then continue to acknowledge their custom with simple ideas like sending birthday and Christmas cards to them.

6. Try a telemarketing exercise.

Ring up the customer with a brief message about a special or new product they may like to try. If possible make the offer free, or offer some incentive that provides a genuine saving or deal for existing customers only.

7. Send out a regular or email newsletter to your customers (even once every six months). Inform them about what is happening in your industry, community or area.

Give tips relating to whatever business you are in. If you run out of ideas, then contact another business to share the newsletter (you can also share costs). Note: an email newsletter costs only a fraction of a conventionally printed and posted newsletter and the Internet offers a huge resource of useful information.

8. Run a customer contest that only existing customers can enter.

This rewards them for being your customer -- not the competitions.

9. In appropriate instances you may be able to ask for referrals.

Something along the lines of: If you thought that we did a great job, then we’d really appreciate it if you could send us the names of three people who could also benefit from our product/services.

Or you could simply ask for your name to be passed on to any people the customer may see as needing your help. Be careful here, though: don’t make this deal better than the one the original customer received!

10. If you have a new product or new technology just about to be released, then hold a customer-only preview. Supply refreshments. This could even relate to someone else technology. For example, if you have just bought a new colour printer, invite your customers to see what it can do.

Get them to bring in some printing so you can demonstrate on their work. You can also the supplier of the equipment to share the costs it’s promotion for the supplier too.

11. Have a sale that is available only to existing customers. Send them

an invitation that selects them out as special and points out that the public will be excluded.

15. Send customers a catalogue of all your products, and offer to direct mail to them anything they need.

12. A variation on the above is to offer existing customers first choice at your sale for a certain period (such as a few days or a week) before the sale is opened to the public.

16. A variation on this if you have a website is to offer preferred customers a special PIN number or password that allows them to log in to sections of your website (special discounts, sales, etc.) that others can’t access.

13. Try sending a letter or card or email that does not try and sell anything, but just keeps them informed of interesting facts or information for their use. This way, they don’t always associate hearing from you with hard sell. Instead, they come to look forward to receiving helpful information from you.

14. If your customers spend lots of money, and the profit per item is large, then send your customers relevant CDs or videos. For instance, if you sell to other businesses, you could send them CDs or videos on selling or marketing, or motivation. Or even in the case of especially good customers a video on their interests: find out from the survey you sent them what sports they follow, and then send them the corresponding video tape of rugby’s greatest tries, soccer’s best goals, highlights of the netball series or whatever.

Stick your business name on the video.

17. Come up with a special anniversary offer one year exactly after the customer first bought off you.

If the offer is taken up, repeat the idea every year.

There is something for every business in this list. The whole idea is to keep in contact with your existing customers, to build goodwill and positive word of mouth.

By making them feel special you’re preventing the possibility that YOUR customer will be lured away by the competition. They couldn’t possibly after the way you look after them!

Sandra Price

Phone: 07 33724554

VISIT US ON FACEBOOK

2018 April Issue | 15

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Mandatory retirement ages are – rightly – mostly a thing of the past in Australia. But they still linger both formally and informally in some sectors and roles. This is of major concern for a country with an ageing population, such as Australia.

Compulsory retirement ages have been progressively prohibited in Australia since the 1990s. There are good reasons for this: reliance on irrational stereotypes about older workers can prevent businesses from finding the best person for the job. Allowing workers to choose when they retire can improve staff retention, increase workforce morale, and help employers retain vital skills and experience.

At a national level, prohibiting mandatory retirement can help relieve the burden of an ageing workforce on pension systems. It also promotes labour market supply and removes barriers to older people participating in society.

Abolishing mandatory retirement can reduce welfare expenditure and increase self-reliance. Importantly, it recognises the inherent worth and dignity of workers of all ages, and sends a strong national message about the importance of ending age discrimination.

Where mandatory retirement remains Federal Australian judges must retire at the age of 70, as outlined in section 72 of the Australian Constitution. While section 72 does not generally apply to state or territory courts, all states and territories also impose a retirement age for their judges. These range between ages 65 and 72.

The Australian Defence Force has also maintained a mandatory retirement age of 60 for personnel and 65 for reservists, though this can be extended on a case-by-case basis.

In Australia, federal court judges have a mandatory retirement age of 70. Shutterstock Overseas, some countries still allow mandatory retirement. The UK, for example, allows employers to justify a mandatory retirement age for their workforce. The UK Supreme Court has identified two broad categories of legimitate justification: intergenerational fairness and dignity.

2018 April Issue | 17

PHOTO : Mandatory retirement ages for judges run contrary to legal reforms designed to prevent age discrimination. Dan Peled/AAP

Retirement provisions have been retained by some UK universities, including Oxford and Cambridge.

These organisations have claimed that retirement ages are justified by very low turnover, which may limit progression for other staff. They also cite the need to increase staff diversity, refresh the workforce, and facilitate succession planning.

Read more: How we could make the retirement system more sustainable My research on how Australian universities are operating without mandatory retirement shows that there has been an increase in the number of academics working longer. The percentage of total

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Extending academics’ working lives may be affecting the employment prospects of younger academics, particularly in relation to the availability of permanent academic posts at junior levels. Overall, though, there have been few negative impacts from the removal of mandatory retirement ages in universities.

I found Australian universities value the experience and skills of their older academic workforce, and explicitly reject any link between age and declining performance.

Judicial retirement ages

Even for the judiciary, mandatory retirement ages are outdated and inefficient. When they were introduced

at the federal level in 1977, retirement ages were intended to “contemporise” the courts by introducing new people and ideas. They were designed to prevent declining performance on the bench and provide opportunities for younger judges.

But the workforce and our attitudes to older workers have changed since 1977. My research found that mandatory retirement ages for judges are inconsistent with modern workplace practices and are contrary to the desire for age equality. There is no evidence that older judges are “out of touch”, and age is a bad predictor of individual capacity.

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匀䄀嘀䔀 夀伀唀 䴀伀一䔀夀℀

2018 April Issue | 19

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Instead, judicial retirement ages may deprive the courts of expertise and experience. Retirement ages also appear to be contrary to the wishes of judges themselves. Justice Graham Bell, who retired from the Family Court of Australia on 20 February 2015, was quoted as saying: These days 70 is equal to 60 or 55. … Judges should be able to go on till 80 provided they pass a medical inspection. After all, the pension makes judges pretty expensive creatures in retirement. They are sent out to pasture too early.

What’s more, judicial retirement ages are largely unnecessary in practice. Judges are entitled to generous pensions and often retire of their own accord. New judges will still be given opportunities even if we remove mandatory retirement ages.

Informal retirement pressures

encing age discrimination. In 2014, over a quarter (27%) of Australians aged 50 years and over reported experiencing age discrimination in employment in the last two years.

Given these findings, in 2016 the Australian Human Rights Commission (AHRC) conducted a national inquiry into discrimination against older workers. It recommended a suite of changes including discrimination law reforms and appointing a cabinet minister for longevity.

Previous studies have suggested that declining numbers of older men in the workforce are mostly due to employer constraints, not constraints on the part of older workers. This suggests the need for a shift in employers’ attitudes towards older workers, to encourage continued participation.

Why mandatory retirement ages are inefficient

In 2013, Productivity Commission estimated that overall labour supply per capita will fall by nearly 5% by 2059–60 due to demographic ageing.

The commission concluded that:

A period of truly diminished outcomes is likely to be at hand, unless luck or appropriate policy initiatives intervene.

One of the key policy measures available to address this looming issue is to increase workforce participation rates for older workers.

Eliminating the last vestiges of mandatory retirement is an obvious first step.

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

Alysia Blackham

Senior Lecturer in Law and ARC Discovery Early Career Research Fellow, University of Melbourne

Where mandatory retirement has been officially removed, there can still be pressure to retire at a certain age. My research found that some Australian universities may be using potentially discriminatory methods (such as redundancy) to manage an ageing workforce.

With an ageing population, Australia cannot afford to lose skilled workers prematurely.

A significant proportion of older Australian workers report experi-

https://theconversation.com/why-mandatory-retirement-ages-should-be-athing-of-the-past-94484

2018 April Issue | 21

N

For some; A difficult thing to say What is the only word that can be made up of consecutive letters in the alphabet?

To give you a hint, it’s one of the most used words that parents say to their kids when they’re growing up and, one of the words you don’t want to hear when you’re proposing to your partner. Unfortunately, it is also a word that business people have trouble saying to clients.

Recently I received a call from a painter that I know quite well. He wanted to know if we could catch up for a chat and also give him some business advice; so we met up at a coffee shop the next day.

While sipping on my latte, he told me how stressed he was and that it resulted in him getting very little sleep. The cause of the stress he

22 | Aussie Painters Network

said was ‘too much work’ and ‘not being able to keep up with the demand’. The reason for the influx of work at the time was that construction had slowed in the previous months because of the un-seasonal abundance of rain we have had.

This in turn, held up many of the trades from working. Then all of a sudden, things caught up, houses were ready to be painted and the builders were on his back to start and, complete. To make matters worse, he was working hard and working long hours but not making much profit for all the effort put in.

I know this can happen from time to time and unfortunately, that’s the way business can be. The simple answer can be just too ‘knuckle down’, source some temporary help and work hard to catch up.

This is only OK ‘IF’ it’s temporary

and that after the rush, you have something to show for it in your bank account.

So how can a problem like this be solved if the increased workload continues?

In this painter’s case as mentioned, there was no extra money for the hard labour put in so we looked at the builders and what they were paying. Sure enough when we broke down the labour and costs associated with the painting, he was only just breaking even on some of them. When I explained this he admitted that he couldn’t/ wouldn’t/didn’t know how to say the simple word ‘No’ to them. He always accepted the price offered, as all that mattered to him was the constant flow of work to keep his staff employed.

The majority of his work came from builders but there was also a consistent stream of private residential homes that he did also.

When occasionally he couldn’t keep up with the demand, he sacrificed the home owners work in favour of the builders, just to keep them happy. This is where I told him was his biggest mistake.

Residential homes is where the money is made so why work for someone if there isn’t a decent profit to be made. I advised him he had to forego one of the un-profitable builders; even if it meant losing one of his employees.

It is insane having seven people working for you if you can make the same amount of profit with six.

It’s also pointless working on a job if you are just breaking even. Why do it?

I say this to everyone I give advice too. You are in business to make a decent living. You are not a charity. You do not lower your rates because someone wants a cheaper job or they want a discount.

So the point is, you have to learn how to say NO occasionally.

No, I can’t match the other painters’ price.

No, I can’t do it for that square metre rate.

No, I can’t give a pensioner discount.

If people insist, then say you can only do it by cutting down on the time in the preparation work or you can use a cheaper line of paint to bring down the price. Other-

wise, do not compromise your high standards to suit their cheap budget.

Remember; you work for yourself for a reason. One is to not have to work for a boss and the other is to make more money than if you were on wages.

Discount and you will never get ahead.

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Jim Baker www.mytools4business.com

2018 April Issue | 23

24 | Aussie Painters Network

When we think about climate change, the main sources of carbon emissions that come to mind for most of us are heavy industries like petroleum, mining and transportation.

Rarely do we point the finger at computer technologies.

In fact, many experts view the cyber world of information and computer technologies (ICT) as our potential saviour, replacing many of our physical activities with a lower-carbon virtual alternative.

That is not what our study, recently published in the Journal of Cleaner Production, suggests.

Having conducted a meticulous and fairly exhaustive inventory of the contribution of ICT —including devices like PCs, laptops, monitors, smartphones and tablets — and infrastructure like data centres and communication networks, we found that the relative contribution of ICT to the total global footprint is expected to grow from about one per cent in 2007 to 3.5 per cent by 2020 and reaching 14 per cent by 2040.

That’s more than half the relative contribution of the entire transportation sector worldwide.

Another disconcerting finding is that all this extraordinary growth is mostly incremental, essentially shattering the hope that ICT will help reduce the global carbon footprint by substituting physical activities with their virtual counterparts.

the use of the device, but rather by its production. That includes, in addition to the manufacturing energy, the energy for material mining for gold and the so-called rare-earth elements like yttrium, lanthanium and several others that today are almost exclusively available only from China.

The impact of smartphones

Perhaps the most surprising result of our study was the disproportionate contribution of smartphones relative to the overall ICT footprint.

We found that the relative emissions share of smartphones is expected to grow from four per cent in 2010 to 11 per cent by 2020, dwarfing the individual contributions of PCs, laptops and computer displays.

In absolute values, emissions caused by smartphones will jump from 17 to 125 megatons of CO2 equivalent per year (Mt-CO2e/yr) in that time span, or a 730 per cent growth.

The lion’s share of this footprint (85 to 95 per cent) will be caused not by

Want to help combat climate change? Stop replacing your phone every two years. (Shutterstock) Another guilty participant in this excessive carbon footprint are the phone plans that encourage users to get a new smartphone every two years. That accelerates the rate at which older models become obsolete and leads to an extraordinary and unnecessary amount of waste.

These findings pertain to the device side.

2018 April Issue | 25

Every text, download, email uses server energy

On the infrastructure side, we predict the combined footprint of data centres and communications networks will grow from 215 megatons of C02 equivalent a year (Mt-CO2e/ yr) in 2007 to 764 MtCO2-e/yr by 2020, with data centres accounting for about two thirds of the total contribution.

Data centres are an increasing source of carbon emissions. (Shutterstock) For comparison purposes, the entire carbon footprint of Canada was about 730 MtCO2-e in 2016 and is expected to decrease by 2020.

The growth in smartphones and data centres aren’t unrelated.

Indeed, it’s the dizzying growth in mobile communications that’s largely driving the pace for data

26 | Aussie Painters Network

centres. For every text message, video download, photo exchange, email or chat, there’s a 24/7 power hungry server in some data centre that’s making it happen.

The incredible —as well as unsustainable— growth in the emission footprint of all this hardware is there for only one purpose: To support and serve the software universe.

It’s the energy consumption that we don’t see.

In other words, while it’s the hardware that does all the dirty work, it’s the software that’s calling all the shots.

Software companies spur growth

Finally, and perhaps the most ironic aspect of all this, is that it’s software that is driving the overall growth in ICT as a whole, devices and infrastructure included.

The way out?

Software companies like Google, Facebook, Amazon, Microsoft and Yahoo boast some of the largest data centres in the world. The rise in dominance of the mobile operating systems, namely Apple’s iOS and Google’s Android, along with the millions of mobile applications that are built on top of those platforms, has spawned the mobile communication age.

At the individual level: Hold on to your smartphone for as long as you can, and when you do upgrade, make sure you recycle your old one.

Sadly, only one per cent of smartphones are being recycled today.

At the societal level, we must demand that all data centres run exclusively on renewable energy.

Lotfi Belkhir

Associate Professor & Chair of Eco Entrepreneurship, McMaster University

https://theconversation.com/how-smartphones-are-heating-up-the-planet-92793

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

2018 April Issue | 27

How bankruptcy

CAN AFFECT A TRADIE

28 | Aussie Painters Network

Sometimes things just don’t go as planned when it comes to money.

you will run into problems when it comes to insurance.

even if you’ve only recently been discharged.

Often you fight your way through, but sometimes it’s a losing battle and the only way out is bankruptcy.

No insurance company (that we know of) will offer business insurance coverage to a tradie whilst they are still bankrupt.

Are there any ways around it?

Before you go down this path, it’s important to consider some of the consequences that this can have on you as a tradie.

We can’t provide you with bankruptcy advice, but we can tell you about how it can affect your ability to run a business and get insured.

Impact on business operations Once you’ve declared bankruptcy, you can no longer be the director of a company.

This means you won’t be able to run any business as a Pty Ltd company.

There is nothing to stop you from operating as a sole trader, which is how most tradies (especially subcontractors) operate anyway.

The only requirement when operating as a sole trader during your bankruptcy is that you only trade under your own name, or the trading name you used when you first declared bankruptcy.

You may be able to get an exemption if you want to use a different trading name, but only if you let all of your clients known about the bankruptcy.

Insurance impact Whilst you can still operate as a sole trader during your bankruptcy,

This can be a major issue, since a lot of builders and construction companies require that all subbies on site have their own public liability insurance.

So although you can legally operate as a sole trader, without insurance you may be severely restricted in terms of what work you can take on.

After you’ve been discharged In most circumstances you’ll be discharged from your bankruptcy after a period of three years, or earlier if you’ve managed to repay all of your debts.

Now you can choose to run your business however you like, either as a company or a sole trader.

You might still have some issues when it comes to insurance though.

All business insurance policies will include a question about bankruptcy, and if you’re operating as a company, the question must be answered by all directors of the company.

When you answer yes to the question, you will find that some insurers are not willing to offer cover for a number of years after you have been discharged.

Thankfully not all insurers are the same, and generally we will be able to find someone to provide you with public liability insurance

If you get really creative there are ways to keep working and remain insured throughout and after your bankruptcy period.

It’s not our place to suggest how this would be done, or even if it’s 100% legitimate.

The best advice may be to simply stick with a job on wages until the issues are behind you.

As a tradie working on wages for someone else, your bankruptcy (either current or discharged) will have no impact on your ability to work.

Insurance won’t be an issue since you’ll be covered by your employer’s insurance, and thankfully your bankruptcy has no impact whatsoever on your employer’s insurance.

For more information on bankruptcy in generally we recommend that you speak with your accountant first.

If you have insurance specific questions then we will be more than happy to assist. You can contact us via the website or call the team on 1800 808 800.

Visit our website

www.traderisk.com.au 2018 April Issue | 29

30 | Aussie Painters Network

Do you know what your staff achieved last week?

When you have a team of people to lead and manage in your business you’ll want to know what they’re up to and how they are achieving outcomes for your business. While leading people comes naturally to some, the skill of managing people may need some development at times, depending on the challenges you are facing with your staff. No matter where your strengths are in these areas, you’ll need robust and flexible communication mechanisms to stay in touch with what your staff are up to.

I’m asking you seriously, do you really know what your staff achieved last week? Or how they failed and brushed themselves off to get back on the horse? Do you know the inside story? How they thought about all the things that needed to be considered before executing the perfect plan to create one more happy customer for your business?

It takes a bit of time to build relationships with your staff that are based on trust and confidence before you’re able to openly discuss sensitive issues like performance with them. As people are all different, particular ways of communicating may suit one person more than another. As the boss it’s your job to figure out which way works best for your staff.

While your staff may have a certain level of autonomy, a successful business manager wants to know

how they use it. They need to know if the autonomy they have given to their staff is used in a positive way, or if staff are not meeting the expectations they are asked to meet.

To find that out you need easy to handle communication mechanisms that will allow you to stay in the conversation, as well as some formal mechanisms.

Performance review systems have been much maligned in some organisations, but in my view they are getting a bad rap that has more to do with the failure of management to make them work without intimidating staff. I’m talking about regular, weekly and monthly conversations that centre around identifiable achievements in

particular work areas. You can hold them individually with staff or in group settings. Know this though, it’s been demonstrably proven that building a culture of performance and achievement reviews with your staff is one of the hallmarks of any high performing business .There are untold advantages to creating a culture of performance review and achievement sharing, when it’s done right. Starting with the benefits for the employee, which includes an increase in feelings of self-worth and taking pride in their achievements for the team, the business as a whole gains a lift in morale and momentum to achieve more.

2018 April Issue | 31

Creating positive communication processes around performance can build morale in itself as you take an interest in what your staff are doing. One of the most effective ways to propel your staff on to do even bigger and greater things is by rewarding and celebrating them when they achieve success.

When they fail to hit the mark, it’s best you encourage your staff to look ahead and learn from their mistakes.

Build a culture of accountability andask your staff member to document the two things that they are planning to achieve this week. Each week you should also have a group staff meeting where these achievements are reviewed and commitments for the next week are discussed.

32 | Aussie Painters Network

Here are some ideas how you can create a multi-layered and systematic communication mechanism: • Set performanceexpectations and goals • Provide regular feedback throughoutthe year • Address any shortcomings of performance at the time they occur • Maintain documentation of performance discussions • Get feedback from others, eg co-workers or customers • Ask your employee for a selfassessment of their performance • Use examples to demonstrate desired behaviour and expected performance levels

Using the strategies above you can create a performance system and culture in your business that meets your needs and those of your staff.

If you needmore straight performance talk and business advice that works, feel free to arrange a FREE No-Obligation Meetingwithme. Call my office on 07 3399 8844, or just visit our website at www.straighttalkat.com.au and complete your details on our Home page to request an appointment.

Copyright © 2018Robert Bauman.

We help you to have business freedom.

2018 April Issue | 33

Painting by the Numbers Remember when you were a kid and could buy painting kits where you painted each color into a corresponding number to create a master piece. Following those simple numbers and staying within the lines ensured that everything would come out ok. Running a painting business is much the same. Without those numbers to guide us, things can become out of balance pretty quickly.

The rules have just changed.

I have been doing this for over 30 years and have never witnessed as much business anxiety in our nation. Both can be a dangerous approach, particularly when times are changing and the numbers are shifting.

Much of this is driven by 16 years of good times, the 24 hour news stations that constantly talk about our doom and gloom and of course, seeing your 401K take a 40% hit. There is no question business is tougher but it is still possible to succeed.

When folks get anxious, each and every one of us acts differently.

Some people talk faster, others withdraw. Extreme anxiety can impact our intellect and temporarily drop our IQ much like the 15 year old boy on his first date. He meant to say the girl had timeless beauty but nerves made it come out that her face could stop a clock. Believe it or not, I talk to contractors weekly who are doing ok but think things are horrible.

They complain that low ball bids

34 | Aussie Painters Network

It actually goes beyond simple numbers. Some folks are worriers and see the glass half empty.

Others are eternal optimists and always see the glass half full. Both can be a dangerous approach, particularly when times are changing and the numbers are shifting.

Knowing the numbers benefits both personality types.

are taking all the work when closing ratios are close to what they were last year.Most have fewer leads but if they adjusted their business costs as we have been coaching them to do, many had a more profitable first quarter. The problem is that they really were not looking at the numbers and anxiety had taken over logic.

On the other side, the eternal optimists tend to think everything will be ok and they will just sell more work. They are the kind of folks who are being tarred and feather and run out of town by an angry mob but they think they are leading a parade. Failing to use the numbers to guide business decisions can lead this personality to make devastating business decisions. In both of these cases, painting by the numbers relieves stress.So what are some of the simple steps you can take to paint by the numbers?

Start with an overhead budget.

Many contractors are cutting wages, benefits and trying to push field production. All of these things are good to do but the real financial problems for painting business starts with their overhead costs.

Take a moment and add up all of these costs. They include things like your truck and vehicle costs and expenses, office salaries, rent, advertising, accounting, insurance, interest, licenses, etc. Don’t forget that your owner’s salary is probably the largest area of overhead and if you still paint, you have a salary for your painting time as well as non-painting time.

Let’s run a really simple company and show how the overhead numbers work as volume decreases. We will use imaginary numbers but not totally realistic numbers for a painting contractor with about 5 employees in the field.

Now let’s suppose sales drop 25% from $400,000 to $300,000 and for now your direct cost percentage stayed at 62.5%. Gross profit would now be $112,500, overhead would be $136,000 and you have a $23,500 loss or 5.875% loss.

Since sales are 25% less, you obviously must adjust overhead and this can be painful and difficult.

The above company does not have excess overhead, leases on rent are signed in advance and it is hard to do things, like sell trucks.

Note that 20% of our 34% overhead is owner and admin salaries.

We can cut things like office supplies and phones but these are really the smallest costs. Since we are doing 25% less sales, we can probably cut our admin sales hours back but that can be dangerous.

If the owner now assumes all of the admin, he or she becomes a paid office clerk.

In the above example, the owner’s salary is the biggest overhead expense. Since sales are off 25%, the owner is probably doing 25% fewer estimates and now has excess time. How the owner uses their time is key to the business’ long term survival. If the owner becomes anxious and stares at four walls, the company is in trouble. If the owner is optimistic and does the same old same old, denial will kill the business.

The owner now must rearrange their time to bring more value to the company. Possibly, they should paint one day a week.

Maybe they need to pass out flyers in neighborhoods or cold call on businesses but the numbers support a need for more efficient ownership.

For many owners, this feels like the business is going backwards and can be very frustrating. It really is a matter of whether you will get with it and make something happen. I am betting that knowing the numbers and avoiding denial will force action. It is just math.

It may take a while to sort out in your business but if the math works, everything else will be ok.

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

Monroe Porter

is president of PROOF Management a firm that teaches seminars and runs networking groups for painting contractors.

www.proofman.com 2018 April Issue | 35

The Industry

Idiots

36 | 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

2018 April Issue | 37