Aussie Painting Contractor February 2024

The Evolution of a Painter's Journey:

From Apprentice to Business Owner

What is a balance sheet and how does it help me manage my finances?

Financial Review Processes

FOR YOUR BUSINESS Discover the 8 most effective ways...

What are ‘good’ and ‘bad’ debts, and which should I pay off first?

Owing money can sometimes feel challenging.

www.aussiepaintersnetwork.com.au

From the

Editor

CONTRIBUTORS

Hey Everyone,

• Angel Zhong

Welcome to the 133rd issue of The Aussie Painting Contractor Magazine, for 2024.

• Helen Kay

Hopefully, you had a break from the day-to-day grind. From all reports most have hit the ground running with almost no time to get back into the flow.

Our apprenticeship load is growing at a massive rate. Having now put over 20 applicants into trials with 7 starting their careers in the industry. We currently have 37 candidates looking for a chance to start apprenticeships. So, if you are considering employing an apprentice, reach out and contact us.

We ran our first Webinar last week, it was great to see those that attended and hope to see you and more at the next one, the feedback was great, we already have many that attended already registered for the next one.

For Members in Brisbane, we are looking for a couple more businesses to register for our Workshop being held at our office at Salisbury on the 8th February we start our Members only Scaling Your Painting Business.

“Scale Your Painting Business” Workshop Series – your key to unlocking unprecedented profitability for your painting business! This exclusive program spans over six transformative days throughout the year, comprised of ten dynamic modules carefully curated to empower painting business owners like you.

If you are needing anything let us know.

'Til next month, Happy Painting!!

Nigel Gorman

nigel@aussiepaintersnetwork.com.au

07 3555 8010

• Jim Baker • Leo Babauta • Nigel Gorman • Robert Bauman • Sandra Price • Timothy Colin Bednall

EDITOR Nigel Gorman

GRAPHIC DESIGNER J. Anne Delgado

AUSTRALIA'S ONLINE PAINT EXPERT

Advertise with us...

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

Contents & the Challenge of 06 Running Pushing at Your Edge

10

What is a balance sheet and how does it help me manage my finances?

12 Do you know your 'WHY?' 15

6 QUESTIONS you should be ready to answer to Smash that Job Interview

18

Achieving work life balance Work out you’re worth; delegate and outsource!

Employ an Apprentice?

29 Why’ and ‘Why’ UP-SKILL? Discover the 8 most effective

32 Financial Review Processes FOR YOUR BUSINESS

35

Cultivating Stokedness

the Art of Matching 38 Mastering Colours and Stains: A Crucial Skill in Painting and Decorating

Things You Need to Remember 41 9While Negotiating Contracts DIY Your Business 42 Don’t Insurance

AGREEMENT 22 SALES The Importance of Warranties Evolution of a Painter's Journey: 26 The From Apprentice to Business Owner

are ‘good’ and ‘bad’ debts, 44 What and which should I pay off first?

48 Industry Idiots 49 Important Contacts

Opinions and viewpoints expressed in the Aussie Painting Contractor Magazine do not necessarily represent those of the editor, staff or publisher or any Aussie Painters Network’s staff or related parties. The publisher, Aussie Painters Network and Aussie Painting Contractor Magazine personnel are not liable for any mistake, misprint or omission. Information contained in the Aussie Painting Contractor Magazine is intended to inform and illustrate and should not be taken as financial, legal or accounting advice. You should seek professional advice before making business related decisions. We are not liable for any losses you September 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.

Running & the Challenge of

Pushing at Your Edge I’m not the world’s greatest runner, but lately I’ve been challenging myself to stay at my edge.

As I was running at my edge the other day, it occurred to me that this is a useful practice in many areas in life. Learning to play at your edge is a challenging practice, but pays off in so many ways.

If you learn to play at your edge, you learn to stop shying away from discomfort. You grow and learn in new ways. And you develop a confidence in yourself that is hard to do when you stay in your comfort zone.

Let’s explore this challenging practice.

How I Stay at My Edge with Running

Let’s use running as a concrete example of this, so you know what we’re talking about.

First, I should say that I don’t do all my running at my edge. I run about three times a week, and typically only one of those runs is at my edge. The other two are at an easy pace.

But that one run a week at my edge typically looks something like this: •

Warmup: I start out running easy, warming up. Then I walk for a minute. This has me fully ready to run.

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•

Easing in: I start running and ease myself into a faster pace.

•

The Pace: I run about as fast as I can run if I were running a 5K race (which is a fast pace for me).

•

The Edge: At some point, I feel like slowing down — this is the edge of my discomfort, and it makes me want to back away. At this point, I try to stay here at the edge and not back off. Note that this is not an all-out sprint, but a sustained strong pace.

•

Staying at the Edge: If I stay at the edge, it usually gets more uncomfortable. If I can stay here, I do. If I have to rest, I do so, but then try to come back to the edge.

I repeat this, staying at the edge as long as I can, then backing off, then going back. If I can stay without resting, I do it, but resting and then going back is often a part of the process.

As you can see, this isn’t about never backing off. It’s about staying at the edge for as long as I’m able. And using rest as a way to get back to the edge.

By the way, this has been a really effective way for me to get stronger at running, though that’s not the only point. The main point is to learn to stay with the discomfort.

•

Focusing: If you want to get better at focusing on work (or reading), the practice is to stay for longer even if you’re a bit uncomfortable. We feel some overwhelm, stress, anxiety … and so we want to run from it. But what if we could stay here for a bit longer?

•

Relationships: The most delicious part of intimacy is when we’re in the unknown together. We learn more about the other person, and ourselves, if we can hang out here. But most of us want to be in the known — where we’re right, or we control things.

When you find yourself wanting to be right, or to control things, see if you can let go of that and step into the discomfort of the unknown for a bit.

There are lots of other areas you can practice at the edge – meditation, healthy eating, adventures, public speaking, finances, etc.

I hope you can see that this is where the deepest learning, growth, intimacy, and creating takes place.

Where Else Can We Practice at the Edge?

Running is a pretty concrete example, but there are lots of other examples: •

•

•

Strength training: Similar to running, I practice at my edge with lifting weights or bodyweight strength exercises. I don’t have a fixed weight or number of reps to lift, but feel what I’m capable of that day. If I can lift heavier, I do. If I can lift more reps, I do. It’s about finding the edge of my discomfort and hanging out there, which always makes me stronger when I do it.

Learning: If you’re studying something, it’s pretty uncomfortable to be learning something that you don’t really understand yet. You’re in the unknown, and our instinct is to get out of there as soon as we can. But if you can hang out in the unknown for longer, you’ll learn more. Stay with the learning even if you feel lost.

Creating: If you’re writing, making music or art, creating content online, etc … it will bring resistance. That’s the topic of Season 1 of the Zen Habits Podcast — how to hang out with that resistance. If you can stay there in that resistance, you’ll be able to create, but if not, you’ll be stuck in your comfort zone.

The Benefits I’ve Noticed with Practicing at the Edge If you can practice regularly at your edge — not all the time, but sometimes — you’ll see lots of benefits.

Here are some: •

Greater growth — you’ll grow faster as a person, and in the particular area (like running or learning) you’re practicing, than ever before.

•

Greater confidence — you’ll learn to trust yourself, that you can stay for longer than you previously believed, and this will have you feeling more confident in all areas of your life.

•

Expansive life — your life will be less held back by discomfort, and you’ll be able to expand to new areas of life that previously felt impossible.

•

Less stress — very often our stress is about our worry about not being able to handle something. But with this greater trust an confidence, and greater sense of expansiveness, we actually feel more fully alive and less worried about not handling things.

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A few final notes about practicing at the edge: 1. You don’t always need to be at the edge. In fact, I would say you should only do it about 20-25% of your practice time for an area. Most of the time you should be in a more comfortable place — let yourself do easy stuff as part of your training. As I said with running, only one of my three runs each week is at my edge.

2. Rest and self-care are incredibly important.

If you’re already running ragged, then being at your edge is more harmful than helpful. Just getting up in the morning might be already your edge. That means you should prioritize rest and recovery. Fill up your battery so you can practice at your edge. That said, if you’re always choosing rest over your edge, that might mean you should push slightly more (but not overdo it).

3. Your edge is relative each practice session.

When I lift weights, sometimes my edge is a lighter weight than my last workout. That might be because I haven’t fully recovered from the last session, or I didn’t sleep well, or I was really active yesterday, or I have a lot of stress in my life.

Don’t use objective numbers to tell you where

your edge is at today. Use your sense of discomfort. Sometimes you’ll overdo it because you think you should be pushing to a certain point, but that’s because you’re ignoring your body’s signals. That’s not going to be helpful.

4. Be curious when you’re at your edge. You’re not just trying to push yourself. You’re trying to hang out in the unknown. Most of us fear that kind of darkness. But what if the darkness and unknown could be a place of beauty, curiosity, love, creation and celebration?

5. Celebrate any little victory. Encouraging yourself is incredibly important. That means if you pushed a bit today but just didn’t have it in you to push more, then have some grace for yourself and celebrate whatever you were able to do. Even if it was 1% — celebrate that. This will develop a habit of encouragement that will help you so much more than discouraging habits (which always deteriorate you).

6. Choose only 1-2 areas to practice at your edge.

If you’re trying to create something, and get better at fitness, and get better at focusing at work, and also meditate and learn something … you’ll be practicing at your edge too much. It will drain you. So each week (or each month), decide what you want to focus on. You can change it up next week, but don’t try to be at your edge with 4-5 things in one week.

OK, that should be what you need to do this practice at your edge. What would you like to explore at your edge?

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Leo Babauta ZEN HABITS

2024 February Issue | 9

What is a balance sheet

and how does it help me manage my finances?

You’ve likely heard the phrase “in the black.” Your balance sheet is the tool that shows you whether your business is indeed “in the black.”

Your balance sheet includes a section for your assets (things you own or will receive that have value), your liabilities (what you owe to others) and equity (retained earnings and funds from investors) at a specific time. The relationship between these three sections shows how financially healthy your company is. If your assets outweigh your liabilities, you’re in the black. However, if you have more liabilities than assets, you’re in the red – which is undesirable.

But how does a balance sheet help you to manage your finances? Read on to find out.

Track your assets and liabilities over time

Most companies prepare a balance sheet quarterly, but you can certainly complete yours more or less frequently than that. The key is to prepare one regularly to understand how you perform over time.

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When you have a set of successive balance sheets, you can clearly see how your assets and liabilities measure up on average. For example, you may have had a costly period with critical equipment requiring replacement or repair. That balance sheet might not look so good if that’s the only one you have to interpret.

But when measured against other balance sheets, you may see that it was just an anomaly from which you have handily recovered. Perhaps the improvements even helped you to earn more money once they were complete. There’s no way to know unless you use several balance sheets together.

Measure risk

Your assets act as security for your business because if you found yourself in a situation where you had to, you could sell them to cover your debts. This is how you determine how liquid your business is. Your balance sheet easily identifies how much you own and how much you owe, so you have an easy way of assessing your liquidity.

This also enables you to determine how much risk your business faces. If you find you couldn’t readily pay what you owe by liquidating your assets, it would be clear that you couldn’t currently take on any more risk by borrowing money or buying something new.

Calculate decisions

Similarly, your balance sheet will help you see if now is a good time to spend your money or if you should hold off. For example, if your business is healthy, with plenty more assets than liabilities and easily able to pay shareholders, that would indicate a good time to make some capital improvements.

If you find things more precarious, your balance sheet will guide you to hold off on making any major purchasing decisions until you’re in better shape. It may even indicate you need to find a way to offload some debt to get back on track.

Use with other financial statements

Your balance sheet helps you see your assets and liabilities clearly. It becomes even more useful when used with the other two main financial statements: income statements and cash flow statements.

An income statement (which may also be called a profit and loss statement or an earnings statement) shows your revenues, expenses, and profitability. It tells you what you earn and the costs you incur to make that revenue.

Your cash flow statement will show what money came in and went out of your business during a specified period. Its purpose is to highlight your ability to operate based on how money moves through your business.

Together, these three financial statements give you a clear picture of how your company operates and how financially healthy it is.

Final thoughts

If you’re unfamiliar with financial statements, a balance sheet can initially seem intimidating – especially if it shows that you’re in the red. However, once you prepare one for your business, you will find it invaluable to help you see where you stand and what you can do about it.

----------------------------------------------------------------------------------------------------Sandra Price www.tradiebookkeepingsolutions.com.au

2024 February Issue | 11

Do you know your

Knowing your WHY is one of the hardest questions for most new business owners to answer. I find in my MasterMind Groups that most people who have been in business some time still can’t answer this question. I believe that if you do not understand the WHY of your business (and your life), what you want and what legacy you can leave behind, your why is not big enough to sustain you and your business in the long run.

Being in business today is hard for solo and small business entrepreneurs and most often they have to do nearly everything themselves. Usually it is one person working hard to do the roles of up to 8 people.

We all have our own innate gifts. These are the things we do without thinking and wonder at times why we get paid to the do them as they are so easy for us. It is the other things we have to do that aren’t easy and we struggle with, that have to be done, that take us out of our flow.

For me, one of the most difficult parts of my business to contend with is the accounting side which is the most important part if I want to get paid! I now understand that this is not my innate gift so I need a good book keeper and an accountant to look after these things for me, explaining what I need to know and understand if my business is to be successful.

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This is why outsourcing in business can change your world, allowing you the time to work on and with your innate gifts that you have to present to the world.

So, getting back to your WHY! If your why makes you cry, you know you are doing what you need to be doing. When I talk about my WHY, I can’t help but cry, because for me it is my overwhelming passion and reason for being alive. I want to share this with others to give them the opportunities to achieve what they want to achieve, especially when it isn’t in their flow. We are all born with something special and often it is our hobby initially … unt il one day we realise that we have a special something that we can share with others. Whatever that is, and if it is all consuming, you will most likely find that this is the WHY that you have been blessed to have and to share.

Only you can know your WHY. This is something that you need to sit with, think and write about, being aware of where your consciousness is and what you feel.

What is your cause and belief? What inspires you to be who you are? Does it brings tears to your eyes?

What brings up an overwhelming feeling in your heart that almost chokes you at times?

Understand that, and you will know your WHY!

Come and share your painting ideas! facebook.com/groups/aussiepaintersnetwork/

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6 QUESTIONS

you should be ready to answer to

Smash that Job Interview

With the new year underway employers are beginning to resume normal business activities and restart their hiring process. Similarly, many school and university graduates are beginning their job search after a wellearned break.

While some employers are using increasingly sophisticated approaches to recruiting such as psychometric testing and artificial intelligence, interviews remain one of the most common selection methods.

If you have been invited to a job interview, congratulations, as it likely means you have been shortlisted for the role. However, for many people, interviews can be an unnerving process. Not only do they require candidates to think on their feet, but also to create a positive impression of themselves as a potential co-worker.

may include questions such as: “What motivated you to apply for this role?” or “Tell me about your longterm career aspirations”.

For these types of questions, a convincing answer will highlight relevant skills you can bring to the role.

These professional experiences do not have to come from the same type of position. For instance, if you were applying for a customer service job, you might cite communication and problem-solving methods you used on a student team project.

With that in mind, it always pays to prepare by anticipating what will be discussed and practising your answers. Here are six types of questions you may be asked: 1. Tell me a bit about yourself?

An interview will often start with broad questions about your background and interest in a job. These

Interview candidates need to present themselves as someone others would want to work with. fizkes/Shutterstock

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A convincing answer will focus on intrinsic motivation: specifically, the aspects of the job you find interesting, enjoyable or otherwise rewarding. These could involve working with people, solving tricky business problems or making a social impact. Avoid negative remarks about your current employer and sources of extrinsic motivation - such as money or benefits - unless part of a salary negotiation.

it is a good idea to focus on a capability that is non-essential for the role, in which you would like to gain experience. For instance, if you are not a confident public speaker but recognise it as a necessary for your long-term career, you could say it is a skill you would like to work on.

Read more: 'Computer says no’: more employers are using AI to recruit, increasing the risk of discrimination

Your answer will also show how the role aligns with your own values. For instance, if you are applying for a teaching position, you could highlight your belief in the importance of education, as well as anything about the school you admire, such as its program of extracurricular activities.

2. How did you resolve a particular problem in the past?

Behavioural questions require candidates to provide examples of the past actions they took to manage situations. For instance: “Tell me about a time when you received a customer complaint. What actions did you take, and what was the outcome?” Their objective is to predict how candidates will behave in similar situations.

You can prepare for these questions by studying the job selection criteria and anticipating the questions the interviewer may ask.

If you do not have the relevant experience for one of the questions, you can say that you can’t recall a specific example, but you could outline how you would deal with the situation described in the question.

3. What are your weaknesses?

Interviewers will often ask about what you see as your greatest strengths and weaknesses.

The strengths part of this question enables you to highlight your knowledge and skills most relevant for the role. In general, it is a good idea to provide examples of specific accomplishments that illustrate these capabilities.

The weaknesses can be addressed by framing “weaknesses” as professional aspirations. In general,

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Weaknesses, such as a lack of public speaking experience, should be framed as professional aspirations. Mentatdgt/Shutterstock

By expressing willingness to receive further training and development, you can leave a much more positive impression than simply listing your current shortcomings.

4. What are your salary expectations?

Usually, pay negotiations will occur after an offer has been made, but sometimes the topic will come up during the interview.

Before stating your expectation, it is wise to find out the salary and other benefits associated with the role. If the salary has not been listed in the job description, you should ask the employer what the budgeted salary range for the position is.

Ahead of the interview, do some research and find out what is typical for the role you are applying for based on your level of experience.

Be careful about disclosing your current salary; this information can provide a baseline that can make it difficult to negotiate a higher salary. If you are asked this question, you can politely decline to answer or indicate the information is between yourself and your current employer.

5. Inappropriate or illegal questions Unfortunately, some employers may ask inappropriate or illegal questions. These may relate to relationship status, carer responsibilities, childhood planning, physical or mental health, cultural or ethnic background and union activity.

If you are asked an inappropriate question, you can politely ask the interviewer how that information would be relevant to your ability to perform the job.

Ultimately, job candidates have a right to refuse to answer such questions, and employers who ask them may open themselves to legal action through the Fair Work Commission, Fair Work Ombudsman or the Australian Human Rights Commission.

6. Do you have any questions for me?

Often, the interviewer will invite the candidate to ask their own questions. Thoughtfully selected questions can leave a positive lasting impression.

In this part of the interview, you can clarify any aspect of the role you feel unsure about, such as the working hours. It can also be good to do some research on the organisation and to ask some more specific questions about its clients, projects, or long-term plans.

Beyond the specific requirements of the role, a good topic to ask about is the team and organisational culture. You could, for example, ask what a typical day in the life of a team member would look like.

Read more: Job hunting: why taking regular breaks is vital for your well-being and success

At the end of the interview, you should ask about the next steps including when you should expect to hear back from them.

One final thing to consider about an interview is that it is a two-way process; you are also interviewing the employer to see if the job would be a good fit for you personally and professionally. If the role, organisation or people seem unappealing after the interview process, then it is wise to look elsewhere.

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Timothy Colin Bednall

Associate Professor in Management, Swinburne University of Technology

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

2024 February Issue | 17

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Achieving work life balance

Work out you’re worth; delegate and outsource!

One of the most difficult balances to strike in small business is placing the optimum value on your own hours at the rate you deserve; and work the number of hours you should be. This way, you’re likely to be getting more out of the rewarding side of your profession, and finding more time for leisure.

Obviously when beginning a business you’re going to be investing a lot of time, and plenty of it unpaid; but as an established business, you need to place at least the same value on your hours as you would demand from an employer, and preferably a lot more.

This is where you need to question, ‘is there anything I do in my business that could be done more time/ cost effectively by lining up someone else to do it?'

Similarly, if you can afford to avoid it, you shouldn’t be spending time doing what others are professionally trained for, if it takes you forever to complete.

options could prove a great asset to your business, and both can be recruited to provide flexibility and control as the employer. Providing an apprentice with an opportunity to learn is a great way to give back to your industry also. Most states have an employment agency specifically for apprentices and there are grants for employers who take them on.

If you’re just looking to lighten the load for a busy period, or to conquer a job you’ve been putting off, consider contacting one of the many employment agencies for simple time consuming tasks like filing or other admin; or if you know a high school or university student seeking some extra income, they can be a great source of assistance. Cost effective alternatives like off shore contracting is a very real option these days, especially if you have ongoing work you need to be done; any number of tasks can be easily delegated with only basic communication resources (i.e. skype).

Unless you’re particularly fond of it or good at it, you should outsource your accounting and tax processing too. Seek the services of a good accountant for your business; you’re better off having someone you trust who knows your business so if you haven’t got one, put this on your to do list! Ask for recommendations from other painters as someone who knows your industry well could be invaluable.

So, consider ways you can free up your time to devote to the people and pass-times you love! In the painting industry there are a number of ways to spread the load so you can attain a more desirable worklife balance.

If your business doesn’t already, take on contractors or apprentices short or long term. Both of these

It’s not difficult to see where you could be saving yourself some precious hours, but it may be worth spending a week analysing your time and noting what’s taking up the bulk of it. It may come of a surprise how much time you’re spending on tasks at home which could be farmed out. At a time when we’re all wishing there were more hours in the day, there may well be a way to make it happen!

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Membership

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Packages

2024 February Issue | 21

SALES AGREEMENT The Importance of Warranties Why business sellers need to be careful about the sellers warranties they include in business sale agreements.

It is essential that all parties who enter a business sale agreement abide by the conditions and warranties within it and must fully understand the sale agreement warranties importance.

In a typical business sale agreement, a warranty may be, for example, that all machinery and equipment will be in good condition. If the seller fails to disclose a faulty machine and the buyer finds that this equipment is faulty, there has been a breach of a warranty by the seller and the buyer may be entitled to claim any losses suffered due to the breach of warranty.

The Significance of Warranties in Business Sale Agreements:

When it comes to business sale agreements, many people focus on the conditions and overlook the importance of warranties. However, warranties can play a critical role in protecting both parties and ensuring a successful deal.

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While conditions outline the major terms of the agreement, warranties can cover a range of promises made by the seller, such as the accuracy of financial statements or the absence of legal disputes. For instance, if a seller warrants that the financial statements accurately represent the financial condition of the business, but it later turns out that there were significant inaccuracies, the buyer may be able to claim damages resulting from the breach of warranty.

Including warranties in your business sale agreement can have several benefits for both parties. Firstly, they provide a sense of security for the purchaser, knowing that they have some recourse if the seller fails to meet their promises. This can increase the buyer’s confidence in the deal and make them more likely to proceed with the purchase.

Warranties can also benefit the seller by increasing the perceived value of the business. By providing warranties, the seller shows that they are confident in the quality and condition of the assets being sold. This can make the business more attractive to potential buyers and may even result in a higher sale price.

What Happens if a Business Seller Breaches a Warranty?

When a business seller breaches a warranty in a sale agreement, it can result in significant losses for the buyer. However, there are remedies available to the injured party under the law.

The two potential options for the party who has suffered a loss due to a breach are: 1) damages to compensate for the loss; and 2) the right to terminate the agreement.

The right to terminate the agreement is only available if the breach was severe.

It’s important to note that all contractual deals with consumers are governed by the Competition and Consumer Act 2010 (Cth). This law requires business sellers to abide by certain provisions contained in Schedule 2 of the Act, known as the ‘ACL’.

One of the most important provisions is Section 18 of the ACL, which prohibits the making of misleading and deceptive representations. Another important provision is Section 4(2) of the ACL, which prohibits representations about future matters that are misleading, such as the future financial performance of a business.

If a business seller fails to comply with the law, it can have serious consequences. This may include costly and time-consuming court litigation, expensive damages that must be paid to the buyer, or even forfeiture of the agreement. It’s important for business sellers to understand and follow the law to avoid these negative outcome.

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Tips to Avoid Breaches of Warranty in Your Business Sale Agreement As a business seller, it’s essential to provide accurate information to potential buyers to avoid breaching any warranties in the sale agreement. While purchasers should do their own due diligence, you can take certain steps to ensure compliance with the law.

Here are some tips to avoid breaches of warranty in your business sale agreement: 1. Avoid making representations about the future success of the business. Instead, focus on providing accurate and factual information about the business’s current state.

2. Only include warranties that you know to be true and correct. Avoid making promises that you can’t keep, as this can lead to breaches of warranty.

Remember that providing accurate and truthful information is essential to building trust with potential buyers and completing a successful business sale.

In summary, breaching a warranty in a business sale agreement can have serious consequences for both parties. If you’re a business seller, it’s essential to understand your legal obligations and ensure compliance with the law to avoid any negative outcomes.

This blog emphasises the importance of warranties in business sale agreements and provides tips for sellers to avoid breaching them. It highlights the potential consequences of breaching warranties and emphasises the importance of providing accurate information to build trust with potential buyers.

To get further information as to how Rise Legal can assist you in a trademark application, book in for a free 15-minute consultation with one of our lawyers.

Qualify all warranties within the business sale agreement with disclosure during the due diligence process. This will help to ensure that the buyer is fully aware of any potential issues and can make an informed decision.

By following these tips, you can help avoid breaches of warranty and ensure compliance with the law.

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The Evolution of a Painter's Journey:

From Apprentice to

Business Owner The timeless debate of "What comes first, the chicken or the egg?" has a parallel in the world of painting—a question that arises when considering the progression of a painter's career. Within the realm of artistic and professional development, the journey of a painter is a multifaceted one, encompassing various stages and milestones. For years, Aussie Painters Network has been diligently working to develop comprehensive systems and support structures to guide individuals through each step of this intricate journey. In this article, we will explore the distinct phases of a painter's career, emphasizing the vital role of mentorship, training, and growth within the industry.

Apprentice Painter: The initial stage of a painter's journey begins as an apprentice painter. This phase is characterized by the acquisition of fundamental skills and knowledge. Apprentice painters work under the guidance of experienced mentors, honing their techniques and understanding the nuances of the trade.

Aussie Painters Network recognizes the significance of this foundational phase and has established programs, courses, and resources tailored to help aspiring painters embark on their careers with confidence and competence.

Qualified Painter: Following successful completion of their apprenticeship, individuals progress to become qualified painters. Equipped with the skills acquired during their apprenticeship, they are prepared to take on independent projects. The journey to becoming a qualified painter is one marked by personal growth, and Aussie Painters Network offers advanced training programs to ensure that these professionals meet industry standards and can deliver high-quality work to their clients.

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Painting Supervisor: Some painters aspire to assume leadership roles within their field, becoming painting supervisors. In this capacity, they oversee teams of painters, ensuring that projects are executed efficiently and to the highest standards. The role of a painting supervisor demands not only technical proficiency but also strong leadership and communication skills. Aussie Painters Network acknowledges the importance of effective leadership and offers courses and resources to help qualified painters make a successful transition into these supervisory roles.

Training for Painting Business Owner: As their careers progress, many experienced painters dream of owning and managing their own painting businesses. This transition from skilled painter to business owner requires a distinct set of skills. Recognizing this, Aussie Painters Network provides comprehensive training and guidance to aspiring business owners. Through specialized programs, individuals learn about various aspects of running a successful painting company, including marketing, finances, client management, and legal considerations. This phase of the journey equips them with the knowledge and skills needed to take the reins of their own enterprises.

Painting Business Owner: Becoming a painting business owner is the culmination of years of hard work and dedication. Successful entrepreneurs in the painting industry must not only be skilled painters but also adept businesspeople. Aussie Painters Network supports these ambitious individuals by providing a platform for networking, business development resources, and ongoing mentorship. Established business owners benefit from the organization's vast network of industry professionals, allowing them to thrive in a competitive market.

Hiring Apprentice Painters: As accomplished painting business owners, individuals can give back to the industry by hiring and mentoring apprentice painters.

This marks the completion of the cycle and ensures that the next generation of painters can learn, grow, and succeed under the guidance of experienced mentors. Aussie Painters Network actively encourages this practice, fostering an environment of continuous learning and skill development.

The journey of a painter is not a linear one but a continuous cycle of growth and evolution. Aussie Painters Network's unwavering commitment to supporting painters at every stage of their careers has been instrumental in shaping the industry and fostering its growth. Whether you are an aspiring apprentice or a seasoned business owner, this network provides the

resources, guidance, and community necessary to thrive in the dynamic and diverse world of painting.

Through mentorship, training, and shared experiences, the Aussie Painters Network continues to play a pivotal role in advancing the careers and skills of painters across the nation, ensuring that this artistic tradition thrives for generations to come.

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Nigel Gorman

nigel@aussiepaintersnetwork.com.au 07 3555 8010

2024 February Issue | 27

28 | Aussie Painting Contractor

Why’ Employ an Apprentice? and ‘Why’ UP-SKILL? For most of us these are, ‘no-brainer’ questions, but for some, it takes a little convincing to explain the benefits. I have written about both of these subjects in previous articles but I wanted to reiterate on it again as I was quite annoyed of what was said to me last week.

I told a painting colleague (who I won’t mention) who is a supervisor for a mid-sized painting company (that I definitely won’t mention either) that ‘Construction Skills Queensland’ was funding the ‘Painting and Estimating Course’ that I am the trainer for. This was forwarded on to an apprentice (who recently won an award for ‘Apprentice of the Year’) and is very keen to do the course and doesn’t mind paying the Enrolment fee of $80 (normally $380). I told him he should get his boss to pay for it but he replied back saying ‘He wouldn’t pay for that’. This is so sad when an employee, especially an apprentice, wants to voluntarily ‘Up-Skill’ themselves in their own time and the boss can’t see the value to him in paying for it.

There are many others too that think, ‘Is it really worth up-skilling or training someone? It will cost me time and money and then they may leave.’

The actual training of an apprentice is one of the main reasons why employers do not want to employ them. They don’t want the responsibility or they feel there is too much effort involved. Well! I must emphatically disagree with this way of thinking. In the

first few months of employment, an apprentice is generally doing basic things. These are simple tasks to pick up and not really time consuming for the employer. If you look at it another way, it saves having a qualified tradesman doing this work.

If you manage your apprentice correctly, you will see a monetary benefit within a very short period.

When they are into their 3rd year, they should be at the stage where they are doing the same work as a tradesperson. Also by taking on a new apprentice, you will be training them your methods and the way you want. ‘But they will leave when they finish!’ you may ask. Well you could be lucky and stay as long as my second apprentice who was with me for 20 years. And even if they do leave your employment, you may find they will come back. You know the old saying, ‘The grass isn’t always greener on the other side’. But, ‘What if they start up their own business?’

Even better as you can use them as sub-contractors.

You know what their work is like, so use it to your advantage.

Don’t just take my word on the benefits and advantages of up-skilling and employing apprentices. I will let Gen Frunz, (a lovely lady I met in person after she posted a query on the APN Facebook page) to give her personal opinion and thoughts on the subject.

2024 February Issue | 29

But first; a quick introduction of herself and her two employees Gen (age unknown as I am polite and didn’t want to ask) is married with two children, has three horses, some dogs and cats and lives on acreage on the northside of Brisbane. She began her painting career in 2011 and became a qualified licensed painter in 2019 after completing a twelve month RPL course. I have seen her work and must say I am impressed. She is very meticulous and takes great pride in her work.

TJ was actually the last apprentice I employed in my business. The way our paths met was that she phoned me in December 2016 enquiring if there were any positions available to take her on as an apprentice. As I had just signed off another apprentice in that year, I really wasn’t looking for a replacement, but I said I would phone around to see if anyone would be interested. Come the following January, she phoned me again. Her eagerness and passion to find employment, stirred something inside me to think, ‘This is a good choice. Take her on.’

I never regretted that decision. In February 2019, TJ became a fully qualified painter. Soon after she took a short break from painting and then earlier this year, I referred her to Gen as a potential employee.

When I saw her at work this week, I asked what it felt like when I signed the completion papers of her apprenticeship. She replied, ‘I have accomplished a life goal to finish a trade I love’. I could tell she was extremely happy which in turn, made me extremely happy too.

James recently joined Gen as a mature age apprentice. He is 24, married and has two children. Eight years prior, he did some odd jobs here and there. He completed a Certificate 1 qualification in Construction and as painting was one of the subjects taught and liked it, he expressed his interest in doing a painting apprenticeship. As Gen was looking to take on her first apprentice at that same time, she fortunately found him through a third party.

qualified for another $10,000 payment for employing a mature-age apprentice (please check the criteria if you are eligible for this). To top it off (in Queensland), Workers Compensation is also funded. Now add all this up and tell me it’s not worth it!

All Gens’ work derives from word-of-mouth as her reputation has spread around quickly, which is the reason she needed to employ people. Her main lesson though to herself is, ‘Apart from applying paint to substrates it is the consideration and nurturing of employees for them to achieve whatever goals they set. It gives me great pleasure that James can have security in work to feed his young family and in regards to TJ, her work ethics are outstanding. She sets goals and heads straight for them.’

She adds, ‘My opinion on having a trade or knowing how to ‘run a successful business’ is the responsibility we have in the circle of life. I believe that if you have a set of skills you are proud of, use certain tactics or methods that have led to your own success, then that should be passed on. Passed on to the next generation, as it has been done for 100's of years.

It’s a craft; it’s a culture; it’s a meaning: A tribal leader takes great pride in showing a young person how to make the perfect spear. He doesn't say, ‘Sorry mate. I make the spears around here, and no one will ever know my secret’. That person will never be remembered. They will be lonely, resulting in the perfect spear to disappear forever.

To take the purest form of a person, (this is someone who has no idea about anything but a will and ability to learn) encourage and nurture them to understand and achieve high quality results, is leaving your legacy. It would be utterly selfish of a high quality tradesperson not to want to instil their qualities in a younger generation.

Although Gen was only considering in taking on an apprentice, what helped her make the final decision was the substantial Government incentives in place.

The teaching is so rewarding. To see the light bulbs of ‘Why?’ go on; to see the self-assessing (my big one); to see the pride; but also to feel your own pride within you. That is your reward. It’s like raising children. And it should be done in every workplace.

This is all to do with the 2020 Covid 19 crisis and the need to get people back into work. Apart from the standard $4,000 Government Grant that has been in place for over 20 years, apprentice wages are now subsidised by 50% for the first year (this offer is only available for a short time). Also, in Gen’s case, she

Bit by bit they learn ‘your’ way, then they learn to question ‘your’ way, and then eventually, establish ‘their’ own way. Gradually you release their dependence on you. You are taking on the responsibility of a young adult: offering life advice; being a role model; teaching, ‘How to be’.

30 | Aussie Painting Contractor

My greatest achievement in this trade will be, via my own attained skill set, when my qualified painters and decorators have the skills and confidence to successfully run their own businesses, only then will my work will be done. I can become an ‘elder’, someone they can come to for advice, like ‘Jim Baker’. If I make money along the way, then I'm doing everything right.

I asked the question to Gen, ‘What are your thoughts on if your employees leave you to go somewhere else?’

Her reply was, ‘Of course they are going to leave! It’s like not wanting children because they might move out. It’s ‘who’ leaves you that’s important’.

Next I asked what she thought of the employers that are not interested in training their staff. ‘I think there are two types of painters/tradies. The ones who beats the pig with a stick to get it over the sty and get those wonderful shiny $$ coming in. Ultimately, they have sent that pig to market.

quality of work and the welfare of TJ and James.

Good, reliable and happy employees is what makes a successful business.’

Footnote: In my years of being in business, I have put through ten apprentices. I feel proud of how they have matured into becoming husbands, wives, mothers and fathers, but all-in-all, simply adults. When you have people as young as seventeen working for you, you become an important part of their life. You are with them (in most cases) eight hours a day, five days a week. Some may have troubled upbringings and don’t have close family connections, so what you do and say has a huge impact on them. Yes! This can be a big responsibility to an employer and I know not many are interested in taking that role, but all you have to do is be supportive and be understanding.

Train them with respect and you, like myself, will see the rewards.

Then there are the artisans who are the ones that feed the pig correctly, build it a gate for it to pass thru and let it return at its will. Those pigs bring prosperity because they know lots of other happy pigs and spread the word.

I would now like to thank Gen for her time to write her views on the value of employees. It is so inspiring of how she values them. If only more could feel the same way.

My final question to Gen was the future of her business and if she intended to expand. She said, ‘I am comfortable with how my business, ‘Dare You Design’ is operating and I am fully happy to keep it just to the three of us. I want to concentrate on the

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Jim Baker

www.mytools4business.com

2024 February Issue | 31

Discover the 8 most effective

Financial Review Processes FOR YOUR BUSINESS End-of-month accounting procedures are crucial for ensuring accurate financial reporting and informed decision-making. Here are some effective procedures that include reviewing financial statements, budget-to-actual analysis, and Key Performance Indicators (KPIs): 1. Review Financial Statements Income Statement (Profit and Loss Statement): Analyse revenue, expenses, and net income. Look for any significant variations compared to previous months or the budget.

2. Budget-to-Actual Analysis Compare Budget to Actuals: Analyse the variance between the budgeted figures and the actual results.

Identify areas where actual performance deviates significantly from the budget.

Investigate Variances: Investigate the reasons behind significant variances. Determine whether the variations are due to changes in business conditions, unexpected expenses, or other factors.

Balance Sheet: Review assets, liabilities, and equity.

Ensure that the balance sheet is in balance and that there are no unexpected changes.

3. Key Performance Indicators (KPIs) Identify Key Metrics: Determine the key performance indicators relevant to your business, such as sales growth, customer acquisition cost, or gross profit margin.

Cash Flow Statement: Examine the sources and uses of cash. Identify any potential cash flow issues and assess liquidity.

Compare KPIs to Targets: Evaluate actual KPI performance against predefined targets. Assess whether the company is on track to achieve its strategic goals.

32 | Aussie Painting Contractor

Adjust Strategies if Necessary: If KPIs are not meeting targets, consider adjusting strategies and tactics to align with organizational goals.

4. Reconciliations Bank Reconciliation: Reconcile bank statements to the general ledger to ensure accuracy of cash balances.

Accounts Receivable and Accounts Payable Reconciliations: Verify that the balances in these accounts match with supporting documentation.

5. Accruals and Deferrals Review Accruals: Ensure that all necessary accruals have been recorded for expenses incurred but not yet paid.

Check Deferrals: Verify that any deferrals have been appropriately accounted for, such as deferred revenue or prepaid expenses.

6. Expense Analysis Analyse Major Expenses: Scrutinize major expense categories and identify any anomalies or trends that need attention.

Post-Close Review: Conduct a post-close review to catch any errors or omissions in financial statements.

8. Documentation and Compliance Document Procedures: Maintain thorough documentation of the month-end closing process to ensure consistency and facilitate audits.

Compliance Checks: Ensure compliance with accounting standards and regulations.

By diligently following these end-of-month accounting procedures, you can enhance your business’ financial transparency, make informed decisions, and maintain financial health. Regular monitoring and adjustment of financial strategies based on the analysis will contribute to long-term success.

If you have any questions on monitoring your business performance, gross profit margins for your industry, or are just looking for a template that works, feel free to arrange a FREE No-Obligation Meeting with me.

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.

Expense Management: Assess the effectiveness of cost-control measures and identify opportunities for cost savings.

7. Financial Close Procedures Close the Books: Ensure that all financial transactions are accurately recorded and that the books are closed for the month.

Copyright © 2023 Robert Bauman.

2024 February Issue | 33

34 | Aussie Painting Contractor

Cultivating Stokedness How many days do you wake up excited for life, stoked to be alive and take on the day’s challenges?

If your answer is “often,” then congratulations! That’s an amazing way to live life — but you’re in the minority.

Most people are unenthusiastic about their lives, not looking forward to what the day has in store. That’s not a bad thing — if that’s how you’re feeling, it’s just how you’re feeling. There isn’t a “right” way to be.

That said, if you’d like to be more stoked about life, then there are ways to cultivate that. We’ll explore some of those ways in this post.

Living a Life of Stokedness What would it be like if you felt more excited by life each day? Or by what you were taking on at work, in your relationships, in your workouts?

Life is incredible, and we are immensely privileged to be alive in this miraculous world. We don’t always appreciate it — and that’s OK, to not always be grateful or excited — but there is the possibility of feeling more awe and wonder in our days.

Let’s say you wake up and you have a bunch of work to do (in addition to other things going on in your life). You could feel a sense of burden, overwhelm, and anxiety about all of it … or you could feel really excited by the meaningful things you’re taking on.

It’s not that one approach is right and the other is wrong, but they are entirely different approaches and experiences. We have a choice.

What if you took on each thing with a sense of wonder, and an open heart? What if each act of your day were an expression of your love?

2024 February Issue | 35

What Gets in the Way All of that sounds good, but there are things that get in the way of living life this way: •

• •

• • • •

A default of not being enthusiastic about life.

This comes from years of having our enthusiasm dampened, from feeling disappointment over and over, from learning to be jaded.

A sense of pointlessness that comes when we feel like we’ve failed at things over and over, or that people have let us down over and over.

Built-up pain from things that have hurt us, to the point where little things can agitate the wounds in our hearts, easily causing frustration, anger, explosions of outrage.

Built-up fear from things that have gone wrong, leading to a general sense of anxiety and overwhelm, and worrying about everything.

Built-up resentment and anger from injustices and offenses, large and small.

Built-up self-judgment from all the things we think we’re doing wrong, failing at, etc.

Built-up sadness from many losses, both large and small, so that the world and people around us can easily trigger sadness.

Releasing the Blockers If all of the above represents blockers in our hearts, then wouldn’t it be freeing to be able to release these blockers?

The process to release the built-up blockers is simple but not necessarily easy: •

•

•

•

When the world triggers a conditioned blocker (anger, resentment, fear, sadness, hurt, overwhelm, anxiety, jealousy, grief, etc.) … notice that it’s there, and decide to release it.

Sit still for a few minutes, and let yourself feel whatever you feel. Relax, and allow the feeling as fully as you can. Surrender to it, allow it to just be an experience of energy in the moment.

Know that you’ll be OK. It’s just energy, and if you relax instead of resisting the energy, it will just pass through you. That said … only do it if the intensity is a 7 out of 10 or lower. You don’t need to work with a 10/10 intensity, unless you have a therapist working with you.

After it passes, give yourself some gratitude and love. You have released some of your blockage.

This isn’t a comprehensive list, but I hope you can get a sense of what gets in the way of our enthusiasm and stokedness about life. Our hearts are closed more than open.

It might take a number of these kinds of releasing sessions to actually release a blocker, but the more you’re able to surrender and feel it, letting it pass through you, the less it will remain in you. You’ll be freed.

There is nothing wrong with any of this — it’s a natural consequence of life! We build up conditioning from lots of things that happen to us, from grief and loss to hurt and anger and fear. It builds up, and we lose the open-heartedness with the world.

How to Cultivate Stokedness If you commit to practicing with the releasing practice above, you will be much more open-hearted toward life. You will naturally be more and more enthusiastic.

36 | Aussie Painting Contractor

In addition, you could actively cultivate a stokedness toward your life: •

•

Try to find moments to appreciate the wonder of life. It could be out on a daily walk, or a quiet moment in the morning, or when you’re eating a blueberry. Set reminders so you can make this a regular practice.

•

• •

of you? What makes them tick? What is the light beneath their shadow When you’re taking on a work task, could you connect with why it matters to you? Could you find something meaningful and awesome about it? If you do this regularly, you’ll find a new enthusiasm about whatever you take on.

If you’re going to do a workout, instead of doing it because you should, could you find something fun about it?

Let yourself approach things with a childlike sense of curiosity and wonder and play, as often as you can.

In general, see if you can purposely open your heart and let love move you. And see what such an openhearted life could be like.

•

•

Find something to get excited about. Recently I bought myself a running watch and have not shut up about it for weeks. What have you been excited about lately? Let yourself get caught up.

Get curious about people. What could you discover that’s interesting about the person in front

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CONTACT US 07 3333 2415

info@tradiesadvantage.com.au 191 Wynnum Road, Norman Park QLD 4170

2024 February Issue | 37

Mastering the Art of Matching Colours and Stains: A Crucial Skill in Painting and Decorating

In the world of painting and decorating, the importance of matching colours and stains cannot be overstated. This skill, which was once a cornerstone of every painter's repertoire, has dwindled in significance over the years, largely due to the rise of technology and the proliferation of paint stores. In Part 9 of our series on the Importance of Training, we delve into the critical need for painters and decorators to master the art of matching colours and stains, as well as understanding the nuances of applying stains and clear coatings.

A Rich History of Skill The history of painting and decorating is rich with stories of skilled artisans who could match colours with incredible precision. These craftsmen didn't have access to the countless paint swatches and colour-matching apps available today; instead, they relied on their knowledge and expertise to create seamless transitions between old and new, or to restore a piece of furniture to its former glory.

Matching colours was once an essential skill for anyone pursuing a career in painting and decorating. It was a rite of passage, a skill that distinguished the masters from the apprentices. Unfortunately, with the advent of modern technology, this vital skill has been pushed to the back burner. The convenience of paint stores offering an array of ready-made colours has diminished the need for painters to mix their own hues or match them to existing ones.

The All-Important Timber Putty Matching colours extends beyond just paint. Painters and decorators must also be adept at matching timber putty for staining. Timber putty is a crucial element when working on wooden surfaces, as it helps fill in imperfections and gaps, ensuring a smooth and uniform finish. A mismatched timber putty can disrupt the overall aesthetics of a project, making it essential to have a keen eye for detail and colour harmony.

38 | Aussie Painting Contractor

The Costly Consequences of Missteps Matching colours and stains isn't just about aesthetics; it's also about financial prudence. Getting it wrong can lead to a costly and time-consuming exercise. Imagine the frustration of a client who paid for a paint job, only to realize that the colour doesn't quite match the vision they had in mind. The repercussions of such mistakes can result in a loss of business, damage to a painter's reputation, and a significant dent in the pocketbook.

Similarly, when it comes to staining and applying clear coatings, there is no room for error. Stains and clear coatings are used to protect and enhance the natural beauty of wood. Applying them incorrectly can result in unsightly streaks, uneven finishes, or, worst of all, damage to the wood itself. Rectifying such mistakes can be not only expensive but also time-consuming, causing delays in project completion.

The Value of Training In today's fast-paced world, where technology often takes centre stage, it's crucial to recognize the enduring value of traditional skills like matching colours and stains. The importance of training in these areas cannot be overstated. Apprentices and aspiring painters should be encouraged to learn from experienced mentors who can impart the wisdom of colour matching and staining techniques that have been passed down through generations.

In conclusion, matching colours and stains, as well as understanding the proper application of stains and clear coatings, are indispensable skills in the world of painting and decorating. They not only contribute to the aesthetic quality of a project but also play a significant role in avoiding costly mistakes. As we continue to embrace modern technology, let us not forget the timeless importance of mastering these fundamental skills that have been the hallmark of true artisans for centuries.

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Nigel Gorman

nigel@aussiepaintersnetwork.com.au 07 3555 8010

2024 February Issue | 39

40 | Aussie Painting Contractor

9 Things You Need to Remember While

Negotiating Contracts There are several aspects of business that can only be learnt through actual experience. One of them is negotiating contracts.

Several people fear the negotiation process because it is an intrinsically uncomfortable process. Asking for more money or making personal demands doesn't come naturally to everyone. But with the right toolkit, you can breeze through contract negotiations. And you'd better get used to it, because you'll have to handle a lot of contracts whether you're a business owner or a company employee.

Having the right mindset is critical to contract negotiations. You have to believe that you are going to get your way. Bring a positive attitude and a smile to the table. You're not signing contracts with the enemy.

The people you're negotiating with are going to be your business partners in one capacity or another.

Let's take a look at some things you need to remember when you're in the process of negotiating contracts.

1. Be patient Don't rush to get a contract signed. Rushed contracts usually leave one or both parties dissatisfied. It's understandable if you want to get the negotiation done with, but taking the extra time to examine your contract will benefit you tremendously in the long run.

2. Involve an expert You might know what you need from a contract in terms of an overall business output, but you could get trapped by the legalese. Get a lawyer you trust on board to frame the wording in a way which protects your overall interests. Even if you're good at negotiation, involving an expert is always a good idea.

3. Don't forget term sheets Term sheets are basically a broad overview of the terms of your contract. Before you get into the specifics, it's a good idea to make sure all parties involved agree on the big picture.

4. Take it one step at a time Negotiating a complex and lengthy contract is an inherently tedious process. In the beginning, make sure you've got the basic details agreed upon. Making

some headway is crucial to the overall success of the negotiations. After you've established a rapport with the other party, you can dive into the deeper, more difficult issues.

5. Think about the specifics The flowery language on a contract might make for good reading if you're of a certain leaning, but you need to understand what it translates to in the real world. How much will you be making?

6. Use the phone Emails are notoriously difficult to decipher at times.

You aren't aware of the body language of the sender and sometimes people can word things in a confusing manner because they don't have the best command over the language. If you're unsure about certain things in your contract, pick up the phone and have a conversation. It will help sort things out.

7. Don't fret too much about the first draft The first draft of your contract is just a starting point.

Don't be alarmed if there are things in there which aren't to your liking. It's called a 'negotiation' because you will be changing certain aspects of the contract.

8. If you can't make the tough calls, get someone who will If you're not a naturally assertive person or find it difficult to be demanding when the situation calls for it, ask for help from someone who is capable. It could be your business partner or even a spouse.

9. Do your research You don't want to make outlandish demands that the party you are negotiating with simply can't afford. Take some time and do your research. See what similar services or products cost in the industry.

Ask some experts for advice.

Negotiating a contract is like a very slow game of chess, except both parties need to come away from the table victorious. Before you begin the process, figure out what your short and long-term goals are.

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Sandra Price

tradiebookkeepingsolutions.com.au

2024 February Issue | 41

Don’t DIY Your

BUSINESS INSURANCE In the building industry we love to laugh at DIY warriors.

They can do it all themselves, but it ends up costing them twice as much when you have to come in and fix it!

But many tradies do the exact same with their business insurance…

You might save a few dollars with cheap online insurance, but are you really protecting your business?

Maybe, maybe not… Just because you can read a PDS doesn’t make you an insurance expert.

Our advice: Don’t DIY your business insurance® We’re all for making the insurance process better, but not at the expense of proper protection.

DIY online insurance is often sold with the following benefits: • Quick • Cheap • Easy That actually sounds pretty good! But imagine if a client came to you asking you to build them a new deck, and their main requirements were that it was quick, cheap and easy.

Does that sounds like a great project to take on?

Probably not. It sounds like one of those clients who will choose the cheapest quote from Airtasker or Hipages or similar…

42 | Aussie Painting Contractor

They might get lucky and end up with a perfectly great deck, or they might find themselves on the Tradie Mayhem Facebook page with all the tradies commenting “you get what you pay for”.

Business insurance is different to your home and car Many of us use DIY online insurance for our homes and our cars, so why not for our business?

Fair question, but they are so very different…

Most home and car insurance policies are pretty similar.

You also don’t need to consider different types of cover.

When you comprehensively insure your car, that’s all you need to worry about. You don’t need to consider if you’ve insured the doors properly, or the liability, or how the different types of roads you drive on might affect your cover.

Car insurance is car insurance – more or less.

And your home insurance is somewhat similar. There are still plenty of variables to consider, but if you’ve insured your buildings and your contents for the appropriate amounts, and selected all the right options, you can feel pretty confident.

But business is so completely different. There are many different variables to consider, and so many different types of cover depending on your particular business.

There is no “one size fits all” when it comes to business insurance.

So by all means DIY your home and car insurance, but don’t DIY your business insurance!

What makes Trade Risk different?

We’re also predominantly online, and we also allow you to DIY certain parts of the process to make it more convenient.

are not required to act in your best interests. You are taking the DIY option and you’re responsible for your own choices.

But as insurance brokers, we have a legal responsibility to act in your best interests.

This duty carries through to every renewal and every claim that we help you with.

Should you ever DIY your insurance?

If the choice is between having no insurance or taking DIY business insurance, then we’d always agree that it’s better to have something than nothing.

We know that thousands of tradies will continue to DIY their business insurance, and they’ll feel good knowing they might have saved a few dollars and a few extra minutes.

Chances are, they’ll never need to make a complex claim (or any claim) and they’ll never have an issue with their insurance.

And that’s awesome for those tradies!

But if you really care about your trades business, and you want to know that the industry’s most awarded trade insurance brokers will have your back at claim time, then you’ll want to be with Trade Risk.

And you know what? Often our premiums are no more expensive than the DIY option anyway!

And our process is so slick after a decade of refinement, that you’ll probably find our process just as quick and easy!

So why risk taking DIY business insurance when you could have Trade Risk on your side?

Don’t DIY your business insurance!

But the big difference is that a qualified and experienced insurance broker looks at every new quote and every renewal before it is issued to you.

Not only that, but we have a legal responsibility to act in your best interests.

When you purchase insurance direct from an insurance company or from a comparison website, they

2024 September Issue | 43

What are ‘good’ and ‘bad’ debts, and which should I pay off first?

With the cost of living soaring and many struggling to get a pay rise, it’s not surprising people are using debt to navigate life’s financial twists and turns.

Owing money can sometimes feel challenging, but not all debts should keep you awake at night.

So which debts are good and which are bad? And in what order should you pay them off? As it all depends on your personal circumstances, all I can offer is general information and not financial advice.

Ideally, you should seek guidance from an accredited financial adviser. But in the meantime, here are some ideas to consider.

With good debts, you usually get back more than what you pay for. They usually have lower interest rates and longer repayment terms. But personal finance is dynamic, and the line between good and bad debt can be nuanced. If not managed properly, even good debts can cause problems.

Some examples of “good debts” might include: Mortgages: A mortgage allows you to buy a house, which is an asset that generally increases in value over time. You may potentially get tax advantages, such as negative gearing, through investment properties. However, it’s crucial not to overstretch yourself and turn a mortgage into a nightmare. As a rule of thumb, try avoid spending more than 30% of your income per year on your mortgage repayments.

Student loans: Education is an investment in yourself. Used well, student loans (such as HECS-HELP) can be the ticket to a higher-paying job and better career opportunities.

Bad debt usually comes with high interest rates and short repayment terms. Justin Paget/Getty Images

What is a ‘good debt’?

Good debts can be strategic tools and help build a solid foundation for your future. They usually increase your net worth by helping you generate income or buy assets that increase in value.

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Review the terms and conditions of any loans carefully. Shutterstock

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What is a ‘bad debt’?

“Bad debts” undermine your financial stability and can hinder your financial progress. They usually come with high interest rates and short repayment terms, making them more challenging to pay off. They can lead to a vicious cycle of debt.

Examples of bad debts include: Payday loans: A payday loan offers a quick fix for people in a financial tight spot. However, their steep interest rates, high fees and tight repayment terms often end up worsening a person’s financial problems. The interest and fee you may end up paying can get close to the loan amount itself.

Negotiate interest rates or switch lenders: Don’t be shy. A simple call to your lender requesting a lower rate can make a significant difference. You may also take advantage of sign-on offers and refinancing your loan with a new lender. In the banking business, customers are not usually rewarded for their loyalty.

Consider different repayment strategies: Choose a debt repayment strategy that aligns with your preferences. Some people get a psychological boost from paying off smaller debts first (this is often called the “snowball method”). Others focus on high-interest debts (often known as the “avalanche method”).

Find what works for you. The most important thing is to have a plan and stick to it.

Credit card debt: Credit cards can be like quicksand for your finances. If you don’t pay off your purchase on time, you’ll be subject to an annual interest rate of around 19.94%. For a A$3,000 credit card debt, for example, that could mean paying nearly $600 annual interest. Carrying credit card debt from month to month can lead to a seemingly neverending debt cycle.

Personal loans: People usually take personal loans from a bank to pay for something special, such as a nice holiday or a car. They often come with higher interest rates, averaging around 10%. Spending money that you don’t have can lead to prolonged financial headaches.

Buy-now-pay-later services: Buy-now-pay-later services often provide interest-free instalment options for purchases. This can be tempting, but the account fees and late payment fees associated with buy-now pay-later services can lead to a long-term financial hangover. The convenience and accessibility of buynow-pay-later services can also make it easy to get further and further into debt.

Don’t be afraid to call your lender and ask for a lower interest rate. Shutterstock

Review the terms of each debt carefully. Certain loans offer flexibility in repayment schedules, while others may impose penalties for early settlement.

Take note of these conditions as you develop your repayment plan.

Debt can be a useful tool or a dangerous trap, depending on how you use it. By understanding the difference between good and bad debts, and by having a smart strategy for paying them off, you can take charge of your financial future.

So in what order should I pay off my debts?

There is no one right answer to this question, but here are three factors to consider.

Prioritise high-interest debts: Start by confronting the debts with the highest interest rates. This typically includes credit card debt and personal loans. Paying off high-interest debts first can save you money and reduce your total debt faster.

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Angel Zhong

Associate Professor of Finance, RMIT University

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IMPORTANT

Contacts

Aussie Painters Network aussiepaintersnetwork.com.au

Ph. 0430 399 800

National Institute for Painting and Decorating painters.edu.au

Ph. 1300 319 790

Australian Tax Office ato.gov.au

Ph. 13 72 26 / Ph. 13 28 65

Award Rates fairwork.gov.au

Ph. 13 13 94

Australian Building & Construction Commission www.abcc.gov.au

Ph. 1800 003 338

Mates In Construction www.mates.org.au

Ph. 1300 642 111

Workplace Health and Safety Contacts Comcare WorkSafe ACT Workplace Health and Safety QLD WorkSafe Victoria SafeWork NSW SafeWork SA WorkSafe WA NT WorkSafe WorkSafe Tasmania

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

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

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

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