Aussie Painting Contractor Aug 2014

The Importance of

Professional Quoting Penny for your thoughts?

Receive a Gift Voucher for completing a survey!

August is

Tradies National Health Month There’s been an incident What do you do?

Tips for Small Living

www.aussiepaintersnetwork.com.au

From the Editor EDITOR

Hi all, Welcome to the 35 edition of the Aussie Painting Contractor eMag. th

August is Tradies National Health Month – an initiative spearheaded by The Australian Physiotherapy Association (APA) and Steel Blue. Read on for information and check their site for events happening across the country. This edition also covers planning for your business’ future whilst being prepared for the unexpected, more on marketing your business in the digital world, and the annual digital image competition The Volcano Art Prize – designed to raise awareness of lead in the environment - organised by The LEAD Group.

An industry partner is running a survey through our magazine magazine to find out what professional painters think about a range of issues. Believe it or not, you can complete a survey and to receive a $20 Coles/Myer voucher! Do it quick, the vouchers are only for the first 200 painters who do the survey on Page 20.

The new Aussie Painters Network website has been received really well by all our Members, supporters and the public; its ranking well in Google too, turning up high in the first page for most related keyword searches. If you haven’t visited the new site go and have a look, and drop in regularly to see new Member benefits arriving soon.

We are excited to say we expect Member numbers to exceed 500 by the end of August! To mark this milestone the lucky person who becomes Member number 500 will have a surprise in wait for them!

As always if you are needing assistance call us or send us an email. We are Your Partners in Painting.

Nigel Gorman EXECUTIVE EDITOR Caroline Miall CONTRIBUTORS • Anne-Maree Russell • Caroline Miall • Colin Thompson • Daniel Wurm • Jennie Gorman • Jim Baker • Leo Babauta • Monroe Porter • Nigel Gorman • Sandra Price • Scott Robertson

GRAPHIC DESIGNER Nigel Gorman

nigel@aussiepaintersnetwork.com.au

07 3555 8010

J. Anne Delgado

Contents Page 07

Managing Your Sales Effort

Page 10

Unions in Disrepute, again

Page 13

Desperately Seeking... you!

Page 14

Lowest Number of Work-Related Deaths in 11 Years

Page 17 The Importance of Professional Quoting Page 18

The End of the Day Philosophy

Page 21

Word Crimes

Page 22

Plan for Tomorrow

Page 24

Making Progress

Page 25

Painting Training Facility Launched

Page 27 August is National Tradies’ Health Month Page 28

There’s been an incident What do you do?

Page 29

Help your worker recover at work

Page 31 Overspray Page 32

The 7 Deadly Credit Management Sins

Page 35

5 Tips for Great Bookkeeping

Page 36

MasterMinding, What can it give me?

Page 38

Tips for Small Living

Page 46

The Industry Idiots

Page 47

Important Contacts

In the Chair Hi everyone, Aussie Painters Network is growing well now thanks to you our members. We are always looking for ways to help our members so PLEASE let us know. We also wish to acknowledge the support we get from our advertisers, a big thank you from the team at Aussie Painters Network.

We have been asked to do a few Take Offs for Painting Contractors lately. Unfortunately there seems to be some misunderstanding. We do the take off of areas ONLY and we leave it for you to put your own costs on the proposed project as everybody has different costs and overheads. We do require as much information as possible such as Floor Plan, Elevations and cross Sections and any other supportive information in order to get the take off accurate.

Our recent survey regarding rates per square metre is work in progress and be assured we are formulating a proposal to take to the industry stakeholders in order to get the painters rates up to a more acceptable level. We will keep you informed on our progress.

We have had some interest from members keen to set up committees in each State so that members can discuss issues in their particular area. These committees will be formed on a voluntary basis and will help to coordinate information back to us so we are able to keep you informed about Industry issues in your area.

I am slowly working my way through the members list in an endeavour to contact you all to make sure you are happy with our services and to provide any assistance you may require.

Colin Thompson colin@aussiepaintersnetwork.com.au 0433 724 794 07 3555 8010 1800 355 344

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 any 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.

6 | Aussie Painters Network

Managing Your Sales Effort

by Monroe Porter

One of the myths of paying salespeople commissions is that if they do a poor job, they do not cost you anything. In the old days, some car dealers would throw bodies on the sales floor and fire the bottom guys at the end of the month. Unfortunately, this is not a good way to get the most bang for your advertising bucks.

Lost opportunity costs can be huge. Personally, I am not a fan of commission only salespeople but that is another subject and a topic to explore at a different time. Sales is like anything else, the more efficiently it is managed, the better it will become.

Here are some simple steps you can take to measure your sales effort.

Measure what you expect: A few years ago, it became fashionable not to keep score in little league and other children sports. Where does success come in life where you don’t keep score? Most people want to do well. If you don’t monitor performance and understand what is going on, how can you be a leader and help guide your people? This also goes for company’s where the owner may be the only salesperson.

Institute a system to go over your closing ratios each and every month.

Know what you are measuring: To simply count the number of estimates given and divide by the number of jobs won is not adequate. You should track closing ratios by number of jobs and by dollars sold and type of lead. It is not uncommon to have a salesperson who sells a higher percentage by the number of estimates given but less when compared by dollars.

For example, a salesperson might sell 50% of the estimates given (200 estimated, 100 sold) but 30%

by dollars ($2,000,000 estimated and $600,000 sold).

What this might tell us is that the salesperson can sell small jobs but not the big ones. Or your might have a salesperson who sells 30% of the estimates given but closes 60% of the dollars quoted. This might tell us the salesperson does not consider small jobs important or one large job may have distorted all of the statistics. My favorite story about this is about the commercial company I consulted for and they bragged about selling 33% of the jobs estimated (12 million estimated, 4 million sold). What is interesting is that one job was 3.5m and when you looked at bids awarded by number of jobs, they had a 4% closing ratio. Type of lead is also very important. Make sure you break out repeat customers. Closing percentages are much higher for repeat customers and a salesperson with seniority can rest on his or her laurels. We worked for another residential company that had been in business 50 years that bragged about their salespeople having a 50% closing ratio. With some investigation, we found the company had a huge customer base and following. Closing ratios on advertised leads were less than 20%.

Evaluate post sales marketing expenses. Many company’s track advertising cost by the number of leads generated but this does not tell the entire story. Lead generation has become very expensive and it is important to understand the true marketing costs including sales success. Suppose a lead cost’s your company $300 in advertising. That means 10 leads cost $3000.

If you sold 3 out of 10 leads for a 30% closing ratio that would equate to $1000 advertising cost per job sold.

If you sold 6, it would drop to $500 per job sold.

Continue on Page 8...

2014 August Issue | 7

Managing Your Sales Effort With spreadsheets and other simple financial tools, it is easy to create something to help tabulate results.

Easier yet, every estimate has a written copy. Keep an extra copy and tabulate them to do see how you are doing.

It is not uncommon for yellow pages and web lead services to generate cheap per lead costs but that does not tell the whole story. If closing ratios on those leads is low, then the sales and time factors can become devastating. One of the problems with web lead companies is that they usually give the customer several names and that is an endorsement. If you are on a list with contractors who are sound technically but don’t have a clue of what their costs are, which is much of the market, the low guy gets the job. Consumer ratings can also be misleading. Just because someone is personable, on time and nice does not mean the job will last. Few buyers go back on line and complain when the job fails two years later.

So what’s the bottom line? Keep score and track what does and does not work. What works in Sydney may not work in Longreach due to market conditions, number of contractors in your trade or your salespeople’s ability, etc. Salespeople are like other employees. They have personal lives, illness, habits and numerous other things that can impact their day to day performance.

You can’t be a sales leader unless you are a sales scorekeeper.

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

www.proofman.com

How much does your business need to earn to cover its expenses?

8 | www.mytools4business.com/myhourlyratecalculator Aussie Painters Network

Contact Graco Australia: 03 9468 8500 | 0417 723 360 darren_jones@graco.com

2014 August Issue | 9

Unions in Disrepute,

again    

Union thugs hold up projects, builders say Union royal commission is too little, too late CFMEU lawyers call for police investigation into leaks ahead of Royal Commission CFMEU is lawless: construction boss

Yet again, several cases have surfaced where the CFMEU is in disrepute. The union for the construction sector has been hit by accusations regarding unbecoming conduct by one or more of their representatives.

The first is issued by Wilhelm Harnisch, chief executive of Master Builders Australia. He has stated that major construction projects across Australia, including the Adelaide Oval rebuild and the Brisbane Children’s Hospital, have been held up due to union thuggery.

In an interview with AAP, Mr. Harnisch stated that “there has been a return of thuggery, intimidation and in some cases corruption”. In order to fight these occurrences, Master Builders wants to see the ABCC reinstated in order to regulate the industry. CFMEU secretary Dave Noonan rejects the allegation and believes that Mr Harnisch only seeks to bring back the unpopular Work Choices laws.

Another case sees Grocon chief executive Daniel Grollo telling ABC radio in an interview that “CFMEU is a lawless organisation, trying to impose its own business model on the construction industry”. Mr Grollo believes that both unions and businesses should obey the laws of the land.

When asked for a reply, Mr Noonan replied that Grocon should focus on the criminal charges against the company, regarding a wall collapse in Melbourne that killed three people. “Perhaps he should deal with his own legal issues before talking about others,” Mr Noonan told AAP. While facing the aforementioned accusations, lawyers representing CFMEU have applied for a investigation by the federal police into a series of leaks regarding

10 | Aussie Painters Network

damning evidence that should be presented in the hearings of the royal commission that investigates union corruption. John Agius, SC, representing the Construction Forestry Mining and Energy Union, has told the first sitting of the commission in Melbourne on Monday that it should be a “matter of grave concern” that leaks of untested accusations to the press, including Fairfax Media, have trashed the reputation of union officials. Mr Agius believes that that CFMEU has been denied the opportunity to challenge the allegations of witnesses.

Dyson Heydon, Royal Commissioner, has refused a request by CFMEU that he order the investigations. He has stated that there was no support whatsoever to the claims of the union regarding witnesses or officers of the Royal Commission, being the sources.

Other criticisms regarding the Royal Commission inquiry have surfaced recently, not so much criticizing the Commission itself, but more aimed at the less than enthusiastic investigation, if any, by governmental organizations, into the different allegations towards the unions that have been voiced in recent months.

It is yet to be seen whether these criticisms will be of influence to the inquiry by the royal commission or the position of the union in the sector.

ABIS

www.aubis.com.au

2014 August Issue | 11

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Desperately

Seeking... you!

How Word of Mouth and Digital Marketing are now one and the same thing.

There are roughly 50,000 painters out there in this big country of ours. When you put it in perspective, its easy to see why so many businesses don’t reach their potential and subsequently fail. In any business area, it’s not difficult to fall to the back with regard to being noticed by the paying public. How do you make sure that they, some of them at least, find you and choose you to carry out their painting above anyone else? How is any one painter assured they garner the necessary percentage of the work available so they have sufficient work coming in to sustain them?

and bad (especially bad!), to be heard. They might pick up the phone and call a friend who they know is seeking a painter... Or, they might go to their blog with an audience of thousands... or Twitter, or Facebook, where their post could potentially be shared to an infinite numbers of possible clients. You had better hope that it is a positive one! Similarly, your business needs to be listed on all of the online free sites like Yellowpages, Yelp, Houzz, etc etc., and these are all populated with review and ratings sections. Just the place for a disgruntled/perfectly satisfied customer to share their impressions.

So, it’s important to view Social Media and Digital marketing as vital marketing methods, and a very real extension of word of mouth; again, reinforcing the importance of having great relationships with customers.

The best part of all of this is that most of these places are free to your business for a basic listing; sometimes the ability to add photos/logos, and even links to your own site. Check out the top sites below and if you’re not appearing there, create your listing now for free. The more places you are listed, the better your chances of being found, reviewed and recommended!

Basically, you need to be everywhere that they’re looking. We know from talking to painters and consumers that word of mouth marketing is the most powerful tool to ensure your success. Obviously you need to do a great job to be recommended to all and sundry. Considering this, then, do painters need to take notice of and engage in social media and digital marketing?

Well, the answer is an evolving one; and now it really isn’t possible to separate the two! Social Media IS word of mouth. People want their opinions, good

Aussie Painters Network (Obviously!) www.aussiepaintersnetwork.com.au Hotfrog Yahoo Directory True Local Aussie Web Yelp Yalwa Start Local Dlook Aussie Web

www.hotfrog.com.au dir.yahoo.com www.truelocal.com.au www.aussieweb.com.au www.yelp.com.au www.yalwa.com.au www.startlocal.com.au www.dlook.com.au www.aussieweb.com.au

2014 August Issue | 13

Lowest Number of Work-Related

Deaths in 11 Years Australian workplaces have recorded the lowest number of fatalities in 11 years according to data released by Safe Work Australia today in the report Work-related Traumatic Fatalities, Australia 2014.

The annual report found that 191 workers died from injuries received at work in 2013.

Distressingly, the fatality rate for self-employed workers (4.39 deaths per 100,000 self-employed workers) was three times higher than the fatality rate for employees (1.31). This is partly due to the high fatality rates in the Agriculture, forestry and fishing and Transport, postal and warehousing industries, both of which also have a higher than average proportion of self-employed workers.

In releasing the report Safe Work Australia’s Acting Chief Executive Officer, Michelle Baxter urged workers whether employed by a business or self-employed to make work health and safety a priority.

“While we have seen a 16 per cent reduction in work-related deaths since 2012 (228), this does not mean workers should become complacent about reducing and eliminating risks while working,” said Ms Baxter. “In particular it is alarming to see the fatality rate for self-employed workers is so much higher than for employees.”

“This report serves as a reminder that self-employed workers still have the same legal requirements as an employer to ensure their own health and safety is maintained while at work, as well as the safety of people entering their workplace.

“Even if a worker is conducting a business in their own right, they should not ignore their own health and safety.”

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Other key findings from the report include: • The decrease in the number of work-related deaths from previous years can be attributed to fewer crashes on public roads, particularly involving workers in cars.

• The worker fatality rate in 2013 was 1.64 fatalities per 100 000 workers. Male workers had a fatality rate of 2.80 while female workers had a rate of 0.28.

• Over the 11 years of the series, one-third of workers who were killed while working died in vehicle collisions on public roads, one-third in vehicle incidents at workplaces and the remaining one-third of fatalities did not involve a vehicle.

• The Agriculture, forestry and fishing industry recorded the highest number of fatalities in 2013 (48) followed by the Transport, postal and warehousing (46), and Construction (19) industries.

• 66 members of the public died as bystanders to someone else’s work activity in 2013.

The report is available at www.swa.gov.au. Some of the resources developed by work health and safety regulators to assist self-employed workers and small business is attached.

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

2014 August Issue | 15

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The Importance of

Professional Quoting With so much competition out there, it’s more crucial than ever that you demonstrate that your business is worthy of the customer’s trust and investment, by presenting a professional and reputable outfit.

Following the first contact, the way you present yourself and your written quotation to the client is the best indication for them to determine if you are the right contractor for the job; and this goes way beyond just the price given. If you do no more than hand write a bottom line figure on a business card or piece of blank paper, then you may as well not have turned up. Whilst it’s true that time spent quoting can be for nought if you don’t win the job, it’s a necessary evil. A proper written quote, with your company details and true figures relating to the specifics of the job, will go a long way to engendering confidence in your client. It gives you the opportunity to show your professional style and courtesy, that you understand what is required and helps you to justify the costs, time and materials.

Your presentation is Key! It’s ok if you’ve just come from another job, but this doesn’t mean you have to turn up looking like you have. A few simple tips will help you to stand out for the right reasons; keep a clean collared work shirt in your truck for quoting, wash your hands and use some deodorant. Nobody wants you trudging through their home looking and smelling bad.

Turn up on time, or call asap. We’re all late at times, and that’s ok - if you phone and explain it.

Unexplained no-shows are NOT OK.

What to include in your quote. If possible, assess the job with your prospective client noting together any complexities, or difficulties that may be obstacles or hindrances to painting; these will affect your costs.

Take into account heights, obstructions, fixtures etc that could complicate the job adding to the time needed. Take note of high areas such as soffits and ceilings for ladder or trestle requirements and details like surface texture, which can require greater paint quantities to cover. Then, include information below to determine your price: • • • • • •

Calculate the area Calculate your paint needs Add in your labour Factor in the cost of consumables Factor in the cost of your overheads Figure out market rates for the area and client base • Include requirements for Progress Payments • Remember that your past experience counts and should influence your rates Presentation of your quote.

Your quote should include your company information, logo, ABN etc. and how long it is valid for. Ensure it is in a professional, easy to read format, even if you hand write the information. Preferably, though, you should use a specifically prepared pro-forma, or take advantage of quotation software which is designed to simplify the whole process and present your business professionally. Some organisations offer tools to assist with this free of charge. (see Taubmans Create a Quote www.taubmans.com.au/Professional/CreateQuote) Also, as time is money, you may like to outsource the calculations for your quote, to save you doing it, and make sure your estimate isn’t going to lose you money at the end of the job. Aussie Painters Network now offers this Take Off Service specifically to assist in this way.

2014 August Issue | 17

The End of the Day

Philosophy

by Leo Babauta

‘If your knees aren’t green by the end of the day, you ought to seriously re-examine your life.’ ~Bill Watterson I’ve been making my small decisions throughout the day, recently, with a simple question: How will I feel about this when today is over?

If I have a choice right now between reading social media and news articles, or writing, I know what the answer will be: at the end of the day, I’d be happier if I’d chosen writing.

If I am faced with chips and pizza, I might be mightily tempted to eat them right now, but I know that later in the day I’ll be sorry I did. I inevitably feel bad after I eat greasy foods, though I always forget that before I eat the food. At the end of the day, I won’t regret having spent a little time with my wife or kids, but I will regret watching videos online or wasting my time by playing games.

I won’t regret having done my workout, but I will regret sitting all day.

I’ve learned these answers through repeated observation, but you can learn your own answers by asking the question before you do anything, making a hypothesis (“I won’t regret this later”) and then seeing if you’re right by reviewing the results at the end of each day.

Have a daily review before you go to bed, even if it’s just a mental review. Were you right? Do you regret any of your choices? If so, don’t feel bad about being wrong — be happy that you’ve learned this.

Then make a better choice the next time.

What are you going to do next, after reading this?

Will you be happy with that, at the end of this day?

18 | Aussie Painters Network

by Leo Babauta, a successful ‘simplicity’ blogger & author from California, is the creator of top 25 Blog, Zen Habits, chronicling his insights from acting significant changes in his personal and working life. We are delighted to share some of his observations in this months’ eMag.

2014 August Issue | 19

Here’s your chance to receive a

$20 Coles Myer voucher, just for completing a short survey An industry partner is keen to hear from professional painters on a range of issues associated with your choices of interior paint as well as issues facing professional painters in attracting new customers. Responses to this survey are confidential and will be collated so that the individual responses cannot be identified.

We know your time is important so the first 200 people to complete the survey will receive a $20 Coles Myer voucher (postage details to be provided at the end of the survey).

The survey takes only around 5-7 minutes to complete.

CLICK HERE

For any technical difficulties, please email jane@firstpointconsulting.com.au .Thank you for your interest and we look forward to hearing your feedback on the issues covered in the survey.

Word Crimes

Have you heard the new Weird Al Yankovic parody song, Word Crimes? It’s a cracker – to the tune of Pharrell Williams’ Happy, it sums up a lot of what I have been thinking lately about the written word in business, and how our skills - or lack thereof - in word smithing, grammar, spelling etc., are now on show like never before. At the same time, it’s apparent that good writing skills are being practiced less than ever before. Few of us put ‘actual’ pen to paper, so most of us rely on spell-check, and our language has been crucified by the gratuitous abbreviation applied to our digital speak, as we’re all in such a rush. Top it off with teachers who haven’t mastered grammar themselves, and what chance do the kids have of learning to write properly?

Do you have a grammar nazi in your group of friends?

Maybe you do, but you don’t even know it until you share an online space like Facebook. And they usually don’t mind telling you if you get it wrong. Personally, I think it’s generational and as we see more and more abbreviations and digital colloquialisms enter our formal language via the Oxford English Dictionary, some of it should be acknowledged as part of an evolving, living language... to some extent, unfortunately... even if only to quiet the grammar hounds.

You may be able to get it wrong on social media or any other personal arena of discussion, sharing etc..

Unless you are on there representing your business!

In the past few days I have come across numerous misspellings, poor grammar and just bad writing that has been done on behalf of a variety of businesses, and even an educational institution. I’ve been known to scribble correct spellings on the posters at my son’s daycare centre! I’m afraid wrongly spelt or mis-used words generally do not escape my attention. I can put my blinkers on in a personal arena and not slam the perpetrator, but I draw the line when it comes to professional presence, particularly online. Not only does it give you away as a poor user of the English language, but it gives you up as someone who isn’t even professional enough to PROOF READ your business’ material. All of it.

Here is my personal favourite that I located online sometime ago: (it was there for months too)

2014 August Issue | 21

Plan for Tomorrow My monthly articles have covered many topics: On-Site Etiquette; Unique Selling Points; Operating Costs; Niche Marketing; Vehicle Signage; and the list goes on. If you have read some or all of these articles, you will notice they have a common factor; they are all to do with creating work for your business. Hopefully the information has helped and you are booking more jobs into your calendar.

OK! So maybe you have two or more months booked in advance, that’s great news, but have you thought about the distant future and those unexpected events that may happen that could affect the operation of your business?

You most probably think it’s not worth worrying about at the present time. It won’t happen to me!

This is not the right attitude to have. You need a contingency plan for the unexpected happenings in business and a goal or target to achieve in life. Having no plan could have you still wielding a paint brush at the age of 70.

Planning for the tomorrow means: a) Planning for the unexpected, (ie, bad debts, sickness, accidents) b) Planning for the expected, (ie; holidays, lifestyle, retirement) Twenty years ago my dream was to have the lifestyle of my brother-in-laws father. He was a painter in New Zealand and I remember him and his wife always going on holiday to somewhere. I wished at the time that I would have that same lifestyle one day. Well guess what? My wife and I are doing just that. In the last 8 years we have been on seven overseas trips (eight if you count a week on Norfolk Island) and we are planning our next trip to France next year; thus fulfilling the dream I had.

Don’t assume we are wealthy; that is far from the fact. I do however operate a very successful painting business which doesn’t involve making huge profits by ripping my clients off, in fact, if I feel I have made too much on a job, guilt sets in and I reduce the amount owing.

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To have a successful business, which in turn leads to a successful lifestyle, there are certain procedures you should have in place. Without them you will run into difficulties that could cost you a lot of money. So first you have to come to terms of ‘what may’, and ‘what may not’ hold for you in the future.

Some of the unexpected events that could happen in your working life that you need to plan for are: 1. Long term illness, a personal accident, a major operation or an on-site mishap.

Don’t think it won’t happen to you. I was talking to a painter today who has just had a shoulder replacement and will be off work for 6 months. The forward planning he made was to adequately insure him for the time off work.

As for myself, I was recently diagnosed with prostate cancer (see my December 13 article). It is not of major concern at present but one day in the near future I will need an operation. This will mean a few months off work but because of my forward planning of insuring myself, my Critical Insurance Policy will pay for my recovery. So make sure you are suitably covered by insurance for all those possible scenarios, including the mishaps that could happen at work, otherwise you will find yourself very much out of pocket on top of the other stresses of the situation.

2. Bad debts To eliminate this you need to keep on top of the people that owe you money. Make sure you request progress payments at suitable stages of the job! I ask for a payment when the amount reaches between $5,000-$7,000. Have a good Debt Collector on hand also just in case.

3. Computer failure It is not a matter of ‘if ’your system will fail but when’.

One day sooner or later, it is bound to happen. Just think how much time, effort and money it will take to restore all that you have lost on your computer. You should back-up your files every day and have a copy of your site where it will be safe. Also remember; a fire proof safe will not stop disks and tapes from getting heat damage.

Government pension could change when you are ready to retire and you may find you cannot live on the allocated amount.

Apart from our financial advisor giving us good advice many years ago, the reason we can live the way we dois attributed to planning the way in which my business operates generally, and under unforeseen circumstances.

Some of the expected events that will happen in your working life that you need to plan for: Time off (or holidays), retirement and a good lifestyle Life shouldn’t be all work. Your objective in business is to make more money than you would do if you were working on wages. The extra should be there for your enjoyment; either to use on your house, your children’s education, holidays or building your wealth.

So invest in your future. Put away some of your earnings into a superannuation fund. It is not only ‘money in the bank’ but a great tax deduction too. The reason to have your own superannuation also is that the

You don’t need to be wealthy either to have a great lifestyle, all it takes is planning and smart business procedures. A smooth operating business leads to a financial operating business. The less hiccups, the fewer headaches, which inevitably results in lower operating costs and more money in the bank for you to enjoy.

A note to remember.

Plan for tomorrow, relax and keep some balance in your life and most of all, do not stress. If you stress, you don’t enjoy. If you don’t enjoy, then you might as well work for someone else and let them stress.

Life is too short, so don’t waste it. by : Jim Baker www. mytools4business.com

2014 August Issue | 23 www.mytools4business.com/howtobecome

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 required and 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 incorporate 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 payments established 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, whether there is a contract or not – they need a 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.

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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 the adjudication 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/Legal-Advice.htm Above all, simply be up front and clear with your client in 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.

Right: Indigenous 4th year apprentice painter Reuben Parsons from Alice Springs learns how to apply Granosite Trowel-On 1.5mm Scratchcoat during training at the new facility last month, with Kruise Nichols from Darwin Painting and Repair Services The new training facility for the NT painting industry was officially launched on June 23rd, 4pm - 6pm at IS Australia in Darwin. Representatives from the Department of Business NT, Australian Apprenticeship Center, the National Institute of Painting and Decorating, and leading paint manufacturers answered questions about: • • • •

Apprenticeships Employer incentives for training Recognition of Prior Learning for experienced painters Nationally Recognised Qualifications for Painting Contractors • Training and Education • E-learning for apprenticeships • Employment in the mining industry Employers and apprentices toured the facilities, heard about the future of the painting industry in the Northern Territory.

There were industry guest speakers, and information on the WorldSkills Regional Competition for NT painting apprentices to be held in Darwin in 2015.

Apprentices from all over the NT attended training in Troweled and Roller Applied Texture Coating, Protective Coatings, Anti-graffiti coatings, matching colours, safe lead and asbestos work practices; and received the highest quality training from leading industry experts, including Granosite Technical and the National Institute of Painting and Decorating.

A big thanks to Lisa Dodds from the Australian Apprenticeship Centre, Michael George from Valspar Leading Brands, Solver Decorator Center, and Paul from Darwin Painting and Repair who gave an inspiring speech about the opportunities a painting career brings. Daniel Wurm from NIPD spoke about the introduction of e-learning apprenticeships would allow painters in remote areas of the Northern Territory to train their staff more easily.

NT NEWS

New Painting Training Facility Launched

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National Tradies’ Health Month August is National Tradies’ Health Month created to educate and engage tradies on the importance of health and safety.

The Australian Physiotherapy Association (APA) together with Steel Blue have joined forces to keep Australian tradies pain-free, moving well and living to their full potential.

Recent data from the APA shows that 10 Australian tradies are injured at work daily. That adds up to 3650 tradies a year on workers’ compensation.

In addition, almost a quarter of all roofers, labourers and plumbers suffer back pain, muscle pain and strain from lifting equipment. Many also experience slips, trips and falls when handling materials.

Throughout August Steel Blue and the APA will promote health and safety tips for tradies.

Tradies are encouraged to participate in a range of activities lined up for the month including physiotherapist visits to construction sites around Australia.

QLD NEWS

August is

“The Australian Physiotherapy Association is passionate about keeping Australian tradies pain-free, moving well and living to their full potential. Steel Blue values the work that tradies do and want to improve their awareness and support in this area,” said Chief Executive Officer of APA, Cris Massis.

“Too many tradies are injured on site every day, 80 percent of injured workers in Australia are tradies and labourers. We have been working closely with the Australian Physiotherapy Association to encourage a behaviour change amongst tradies, to make them more aware about the importance of health and safety at work and home,” said Ross Fitzgerald, General Manager of Steel Blue.

The message to tradies is:

Don’t ignore the pain. Seeking help now can protect your future health, wellbeing and livelihood.

More information about this initiative can be found on the Tradies’ Health Website.

2014 August Issue | 27

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2014 August Issue | 29

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

Sonya Baker www.bakerbrosmasterpainters.com.au

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Overspray Whenever you’re using your spray gun there is always the worry that this time you might overspray something. On a bad day you might even miss a brush stroke, but the spray gun is the biggest culprit when things go wrong. It does not help that overspray can be excluded, limited or have additional excesses with some insurance companies.

Thankfully, not every insurer has these restrictions on their policy.

Most painters have probably heard stories where spraying has gone badly. No matter how well you guard yourself when spraying a fence, a simple gust of wind can spread that paint to a neighbour’s car or tinted glass. It wastes time, lowers your company’s credibility and can be expensive to remedy.

That’s why it’s important to make sure you get the right insurance policy. If you’re spending money on insurance, you may as well make sure that the policy actually covers you for the issues that matter. The easiest way to find out if you have restrictions for overspray is to take a few minutes and have a look over that insurance paperwork you normally just file away and see: 1. Does the policy describe you as a “Painter with no spray painting”?

2. Does the policy have any special “Endorsements” – things that add special terms to your schedule – e.g. “Exterior Overspray Additional Excess” 3. Does the policy list a special excess for spray painting activities?

If the answer is “yes” to any of the above – you should call your insurance broker to ask what they mean, or correct them if your occupation doesn’t list you as doing spray painting. If there are limitations on your policy, shop around – for the same money, you can often find yourself a similar policy with better cover for overspray!

2014 August Issue | 31

The 7 Deadly

Credit Management Sins – Part Two In last month’s issue, we visited some of the pitfalls in business, with regard to being paid what you are owed and some of the mistakes we make to this end.

We want to help you ensure your business flourishes, and you are properly remunerated for your hard work. (to see the first installment, see July’s Aussie Painting Contractor). Here are numbers 4-7: Provide Credit when in fact you state you are a Cash Business A cash business is exactly that – your customer pays cash as soon as the job is completed. If you allow the customer to pay in 7 days then you provide credit which means you need to have a credit policy in place.

Procrastination when dealing with slow payers Too often we hear clients say “I will just give them one last chance” when the debt is 6-12 month old. How many chances do you need to give your customers?

What communication have you had with your customer over the past 6-12 months? If you are not talking to your customer then what chances do you have in collecting the money? Next to none I would suggest.

If your customer has not paid you then don’t be afraid to escalate it to the experts i.e. a collection agency, where most agencies work on a commission basis only on successful collect, meaning they take the risk.

You believe everything the customer tells you If I was asked to write a book on every line or excuse we have been told when it comes to asking for payment, the book would be an extremely large novel. If someone says they will pay you, then get a date from them and the amount they will be paying as this gets a commitment . You don’t have eyes and ears around the place to ensure you have up to date information on all your clients. There are some great products in the market which can assist you with this. You can place an alert/monitor on your customers which will alert you of anything from change of business address, credit enquiries made against them or any adverse credit placed against them. This service is inexpensive as well as potentially saving you financial ruin as often you can be advised of customer issues prior to anyone else knowing.

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Reliance on Trade References rather than an independent robust credit checking So many times a business will phone the trade references written down on the credit application form and funnily enough receive a glowing reference. Well of course you will as the customer is not really going to put down someone who will say negative experiences are they! Unless you can control who they write down as a referee, relying on trade references can be very dangerous. To ensure you receive a robust and independent picture on your new customer, we would suggest a thorough credit check is completed through a credit bureau. This will provide you with important data i.e. identification of your customer, credit history (enquiries and any adverse data), on companies you will receive the correct legal entity of your customer, who the directors are, whether company forms have been lodged on time, as well as any adverse credit the company may have had in the past. To enable you to complete such reports you will need to have your terms of trade in place and up to date to ensure you comply with current Privacy requirements.

If you would like to receive further information on any of the above please contact EC Credit Control on 1300 361 070, email info@eccreditcontrol.com.au or visit www.eccreditcontrol.com.au

Because—you work hard for your money

Debt Recovery “No Collection—No Commission” Terms of Trade Documentation PPSR Registrations Professional Credit Management advice Offices throughout Australia Locally based Area Managers

Call us now on 1300 362 070 www.eccreditcontrol.com.au Your Australia Wide Credit Management Professionals

www.aussiepaintersnetwork.com.au

Aussie Painters Network is a proud sponsor of

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5 Tips for

Great Bookkeeping Here is Price Bookkeeping’s magic formula for how to keep your businesses books in tip top shape.

1. Keep it separate.

Even if you are not earning big bucks yet, still get separate bank accounts. Separate accounts allow for more accurate record keeping and saves you time and money with your bookkeeper and accountant.

2. Get into a routine.

By allocating a certain length of time each week on your books, you will soon regain control and get your sleepless nights back. As Nike say’s “Just do it”.

3. Get a good accounting package.

This does not mean it has to be expensive, it just needs to be the right one for you. With advances in cloud accounting we are able to offer clients and automated solution to what was once a laborious task.

4. If you are going to do it yourself, make sure it is right.

Dedicated bookkeeping specialist are a wealth of knowledge. They can help you set up your books and provide training and support. By ensuring its right the first time you will save precious dollars In the long run.

5. Do a bank reconciliation as often as possible.

Reconciliations are a great way to make sure your books are right. You can easily find errors and rec’s allow you to see your cash flow in real-time. If your Reconciliations are up to date you are in a much better position if you need financial reporting for that new loan in a hurry.

Bookkeeping shouldn’t be hard or keeping you away from your family. A few simple steps could revolutionise your business. If you would like to know more, call Sandra today on 0468 944 130.

www.pricebookkeepingsolutions.com.au 4/1311 Ipswich Road Rocklea QLD 4108

2014 August Issue | 35

MasterMinding, What can it give me?

by Jennie Gorman

Masterminding as a business building tool is the most productive and cost effective thing you can do. By being part of a group you will have the opportunity to grow not only your business but yourself as well.

Working with the collective-mind opens up a new frame of reference for participants.

When we join a mastermind group we have expectations on what we want to ‘get’ from the experience and need to be mindful of what we can ‘give’ to our fellow participants.

Facilitators are aware of the importance of synergy within any group and endeavour to bring together like-minded people who will not only get on well but who will support the changing of perspectives in all areas of business. To do this it is necessary to bring in as many as possible different personality styles to the group. This way, everyone has the opportunity to not only grow their business but themselves as well.

Many new skill sets are brought to the table which will support each member to develop and learn. For example, if you are not good at relationship building you will learn the skills necessary OR if you find technology a challenge someone with these skills can gently guide you and support you gain the knowledge necessary OR if you have challenges from a bookkeeping/accounting area you will also be supported.

In my Business MasterMind Groups I endeavour to put as many personality styles together so that we

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cover the spectrum and everyone gets the benefits necessary, I believe that we are born with innate gifts, we gain learned skills and some things we just never get! My groups are developed to support in all areas of business.

What you can expect to ‘get’ from a group:

1 Confidentiality 2 Commitment 3 Unbiased advisory board 4 Accountability 5 Introductions 6 Skills expansion 7 Business leverage and growth 8 To be challenged and supported 9 Trust, compassion, respect and honesty from your fellow members.

What can you expect to ‘give’ to a group: 1 Commitment 2 Time and participation 3 Investment 4 Trust, compassion, respect and honesty 5 Resources 6 New friendships 7 Support from my skill set

To find out more go to my website. www.businessmastermindgroups.com.au

2014 August Issue | 37

Tips for

Small Living I am no expert. This is all quite new to me, this small living stuff, but we have moved and we are living it. So far, so good. It all fits. We fit.

It’s great!

Here are my tips on moving from a mansion to a shoebox. I exaggerate.

But it’s all relevant, no matter how big your digs were and how small they are now.

1. Look for a place that gives the illusion of space. That’s what it’s all about. Living in a space that feels bigger than it really is open, plan, living. My new living/dining/kitchen space is one big space. It has balconies at either end, one off the living and one off the dining.

The kitchen is in the middle of the space. There are stacker doors opening onto each balcony so when the doors are open, both ends, the boundaries are blurred and you feel like your living area extends way beyond. You become part of the neighbourhood!

2. Green views add serenity to your space. If you are going to live small it’s good to see something green. Personally, I always need a view, wherever I live … a vantage point from which I can sip tea and contemplate the universe. From my living area and dining area I can only see green … gum trees, palm trees. The birds are plentiful too. Rainbow lorikeets abound.

Fast growing bamboo separates us from our neighbours. Despite the bamboo leaves tumbling across my timber floors! Small price to pay.

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3. Keep furniture to a minimum.. to avoid a cluttered look and feel. Keep just what you need. Big furniture in small spaces looks great, creates cosiness. Just don’t have too many pieces of it! One big statement piece in a room works well.

4. Be prepared to be organised.

Put stuff away as you use it. Put stuff away when you arrive home.

Don’t dump. Or things get messy fast. When you have less stuff and everything has it’s place, it’s easier than you think!

“Everything-Has-It’s-Place”.

Chant this daily to your children.

5. Think outside the square. Be creative with your furniture. Your desk doesn’t have to be in a study.

It can be in your living area or your kitchen! Especially if it’s pretty. If you can store stuff IN things, store it. My rattan sideboard below is full of stuff I don’t use often. It might even have it’s contents culled if it’s not careful.

6. Live beyond your home. Don’t have a back yard? … make the park across the road your back yard.

You live bigger! You meet people.

You make friends. Your kids make friends … and they meet girls!

7. Keep culling … just casually.

Once you’re in the rhythm, keep looking for ways to simplify. My eldest said something profound when we had been packed up ready to move for 2 weeks, with just the basics to survive. “Mum,

we haven’t needed anything packed in these boxes for the past 2 weeks.

They could fall off the back of the removal truck and we would still survive”. He gets it. Good to have the whole family on board!

8. Seriously cull. Come on, if you haven’t you used it in the past year, do you really need it? If you got rid of it, would you survive if you did suddenly need it? Could you use something else? My biggest possession lessons and greatest feelings of freedom have been when I have been travelling. A capsule wardrobe is so liberating. You have everything you need in your suitcase. All you need is a laundry, which you do have when you are not travelling!

Think travel, think holiday house (holiday houses always only have the basics and you always make do) … just keep what you really need. Then there is always room for a few pretties as well.

The greatest thing about having less stuff? You spend your weekends playing in the park and riding bikes with your kids … not cleaning … or shopping. Give it a try.

Anne-Marie Russell is a fully licensed Real Estate Agent, styling and selling homes all over beautiful Brisbane, Australia. She is also the author of the highly successful home design Blog, The House that AM Built and is currently designing her next masterpiece. www.thehousethata-mbuilt.com

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It is simple to use and can be personalised to your own business.

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2014 August Issue | 39

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Prizes 1. The 13 winners will receive a prize of 5 copies of a colour printed Calendar/Catalogue in which their artwork is featured (one per month). This prize has a value of $100.

2. All 13 winners will have their work printed on the LANDSCAPE orientation A4-sized top half of an A3 page-opening, where the A4-sized bottom half shows a month of the year, in a 2015 catalogue/calendar.

3. All entrants’ works will be accessioned into The LEAD Group Art Collection and will have their work archived at http://www.volcanoartprize.com/vap-archive.

4. 30 finalists will be given the option to have their own entr entry, or another entrant’s entry, printed on a Pictureproducts mug – either white ceramic or white plastic – with the VAP logo.

5. The Peoples Choice Award will be a Cash Prize of $500.

6. The Peoples Choice Winner’s image will appear on the cover of the 2015 Calendar/Catalogue for the 2014 Volcano Art Prize and be archived at http://www.volcanoartprize.com/vap-archive

2014 August Issue | 41

The Aussie Painters Network App Just search the App Store or Google Play for Aussie Painters Network.

42 | Aussie Painters Network

1800 355 344

Phone: (07) 3278 0825 Fax: (07) 3278 0894 Mobile: 0421 383 314 (Rod) 0421 383 315 (Ian) rscanes@ďŹ rstcharteredcapital.com.au

plan financial services

2014 August Issue | 43

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44 | Aussie Painters Network

Introducing

Jason has been playing the professional circuit for over 15 years. He was the winner of the 2010 Victorian Open, the 2007 Western Australian PGA & the 2007 New South Wales Open. We’re proud to be sponsoring him and look forward to seeing Jason sporting our logo!

Members of Aussie Painters Network will be in draw to play a round with Jason in your state...

2014 August Issue | 45

The Industry Idiots

46 | Aussie Painters Network

Important Contacts Aussie Painters Network www.aussiepaintersnetwork.com.au

Ph. 0430 399 800

Master Painters & Decorators Australia www.masterpainters.asn.au Ph. 08 9471 6662 National Institute for Painting and Decorating www.painters.edu.au Ph. 1300 319 790 Australian Tax Office www.ato.gov.au

Award Rates www.fairwork.gov.au

Ph. 13 72 26 / Ph. 13 28 65 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 STATE ACT NSW NT QLD SA VIC WA

Website www.worksafe.act.gov.au www.workcover.nsw.gov.au www.worksafe.nt.gov.au www.deir.qld.gov.au www.safework.sa.gov.au www.worksafe.vic.gov.au www.safetyline.wa.gov.au

Phone (02)62073000 13 10 50 1800 019 115 1300 369 915 1300 365 255 1800 136 089 1300 307 877

Cancer Council Australia ACT NSW NT QLD SA VIC WA

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 2014 June Issue | 47

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