Succession planning: A competitive advantage strategy
Sidestep the negative effects of change with thorough succession planning and you’ll put your business ahead of the curve. Not only does this improve your company’s value, but it also provides something every good business manager strives for: your employees’ peace of mind.
You know this is true – succession planning is the cornerstone of any business that lasts. It smooths the way as one leader leaves and another takes over, creating an environment in which the new management – and your business – can be successful while reducing the effects of the unavoidable turmoil of change.
Yet succession planning is so often overlooked.
According to Deloitte, 86 percent of leaders see leadership succession planning as ‘urgent’ or ‘important’, but only 14 percent believe they do it well.
This is something that I’ve seen regularly as the CEO of Star Business Solutions – an MYOB business partner.
Here it is in a nutshell:
- Succession is inevitable
- Planning is imperative to manage risk
- It can affect your entire business
- Consider the emotional aspects
- Data provides objectivity during uncertainty
Succession planning for a family business is especially important because the organisation is more than just a company – it’s a legacy, tied to the life’s work of just a couple of people. It’s so complex that there have been entire books written on the subject.
But even in traditional businesses, the process of letting go and handing over the reins to a successor can be surprisingly painful for the exiting leader.
Managed poorly, it’s not uncommon for the process of succession to stir up feelings of resentment, resistance and even hostility in otherwise level-headed business people.
In the middle of all that upheaval, the organisation and your team are left struggling to keep the doors open and the lights on.
A great succession plan doesn’t just create organisational stability, market confidence and value, it also comes with a raft of other benefits.
- More diverse leadership – with the objectivity that comes from succession planning, you’ll be able to more clearly see what your company needs, rather than simply replacing leadership like for like.
- A career pathway mapped for emerging leaders – this means you’ll be more able to attract and retain top talent with the promise of genuine opportunities to come.
- A strong and healthy culture – panic-purchasing leaders are the fastest way to erode staff goodwill, and damage that intangible, yet utterly important element: culture. When you have time to consider your options, you’ll be able to choose leaders who will embody your company values and maintain a strong and healthy workplace culture.
Why succession planning will get you ahead
Having an eye on those inevitable future changes means you’ll transition more smoothly, and your new leadership will get fully operational faster. But that’s not all.
A succession plan is about more than just planning for the future – since so many businesses fail to do it, it actually gives you a competitive advantage.
You’ll be sidestepping the messiness, infighting, and underperformance that so many of your competitors will deal with.
Systems ready for change
While software isn’t the be-all and end-all of business, an old or inefficient system can make a succession process far more difficult.
At the most basic level, when BAU relies too heavily on the knowledge of one leader, it creates risk – when that leader leaves, even with the best preparation, it’s likely they’ll be leaving gaps through which leak money, time and goodwill.
This is especially important if you’re replacing first-generation leaders, who’ve built the business almost from scratch. They may not even be aware of how much they know – the ratios, the leading indicators, and warning signs, for example.
These can, and should, be taken out of leaders’ heads and embedded into the business intelligence reporting. This will mean the system plugs the knowledge gaps and keeps everything ticking over, while staff and new leadership get their feet under them.
These systems should also enable leaders to track progress simply and quickly. This delivers much-needed oversight, allowing others in the leadership team, the board and any consultants to keep an eye on the business as the incoming leaders learn the ropes. This gives new leaders a safety net – they can trust that any major misses will be caught early by those in the business with more experience. Similarly, during a hand-over period, it allows the outgoing leadership to stay engaged with performance, without feeling like they’re breathing down their successor’s neck.
The data objectivity can also help minimise resistance and resentment. Planning for and finding a successor based on transparent, accessible data will let all management be engaged in the process, and more readily accept outcomes.
Plan for changes of leadership team, not just the CEO
Succession planning is so often focused on protecting the business when the CEO is replaced.
The reality is that this role, while truly critical, is only one piece of the management puzzle.
Any sudden or poorly planned exit of any of your senior leadership team can create problems. The new leaders, underprepared, could have gaping holes in their knowledge of your business systems and processes, and in their understanding of the new team.
At best, this will mean they take much longer to begin working at capacity. At worse, they’ll lose the respect and support of the people they’re leading, and make decisions that abjectly affect their department and the business as a whole.
A well-prepared leader will be equipped with the context and understanding needed to be successful in the role from day one – and for that they need to be entering the business under an agreed plan.
Establish long lead times
The ideal time to plan for succession of an organisation as a whole is when a business is established.
For senior leadership, preparing for their departure should begin as part of their induction process. Obviously, that rarely is the case, but it indicates how critical early preparation is.
With long enough lead time, preparing for this change becomes BAU for everyone in your business, rather than something that seems to come out of nowhere. It also gives you time to properly develop criteria for evaluating candidates and gives the outgoing leader a chance to prepare for the change – both practically and emotionally.
There can be huge problems with the outgoing CEO not letting go emotionally and practically. It can make the new leader’s job impossible and they’ll go elsewhere.
In a best-case scenario, you’ll have five years to prepare for a change in CEO, with three years being the minimum. Succession plans for the remainder of the executive, and other management will need less time.
Establish accountability and advocacy
According to research from Deloitte, succession planning is often overlooked due to a lack of ownership – it’s not clear who bears responsibility for creating the plan or for finding top talent.
This means that while people acknowledge the importance of succession planning, they’ll assume it’s someone else’s job until told otherwise.
Similarly, having advocates at executive level will help build a succession culture into the organisation – staff at every level will expect succession planning as a normal part of growth and success.
Design for where you’re going
Most succession planning looks at what you need in order to maintain the status quo.
A moment’s pause will reveal the flaw here – succession planning should be about the future of the company, not it's present.
Focusing on the needs of your business in the future won’t just better prepare your next leaders for the changing world but can help remove a barrier to successful planning itself: fear.
In most businesses, staff at all levels are incentivised to appear irreplaceable – and that butts up against the most basic goal of succession planning, which is, quite literally, to replace people. That often leads to leaders spending time protecting their patch and holding back from preparing people to take over.
If the goal is to build leaders for what the business is next, it removes the feeling that leaders are replaceable now.
This makes it easier for the outgoing leadership to accept that their replacement will – and should – do things differently. This can be particularly difficult if the outgoing leader still has an ongoing financial relationship
You might think, ‘It’s my money so I have a right to be involved here’, but it becomes counterproductive. You have to trust that you’ve made the right choice of leader, and then let them get on with their work.
Sidestep the messiness, smooth the transition
A successful business doesn’t stand still – it grows, innovates, maybe even diversifies. Meanwhile, your leadership can either stand still or move forward with the future of the business.
A great succession plan, not just for the CEO but for all the individuals on the management team, creates an environment of stability, confidence, and value in business – definitely a competitive advantage. Not only that, but it diversifies the leadership, offers career paths for promising staff, keeps an eye on the future of your business, and maintains a healthy work culture for the present.
A smart leadership team will recognise the emotional and cultural risk of a poorly planned succession. You’ll manage a smoother transition by keeping software systems up to date (retaining specialist knowledge that’s currently in the heads of the Old Guard), assigning responsibility and advocacy for succession, and establishing clear future goals.
Most importantly, your plan will begin long before it’s needed, so when succession time happens, everyone is well prepared and ready for the inevitable.
Who knows? They might even look forward to the fresh air of change.
Reproduced with the permission of MYOB. This article by Trish Hall was originally published at https://www.myob.com/au/blog/succession-planning-competitive-advantage/
Important:
This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.
Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author.
Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.
Customer service makes small businesses the first choice of consumers
Zendesk has released a newly commissioned report titled Big Expectations, Small Businesses: What Customers Want, revealing that small businesses have a distinct advantage over big businesses when it comes to the customer service they provide. In fact, customers are happy to pay more to a small business for this reason alone.
Almost all customers reported clear benefits from working with a small business when compared to a larger company. It’s the small, personal touches that make working with a small business so good. For customers, it comes down to working with someone who knows their specific situation and creates the feeling of having a valued relationship.
Beyond this, customers enjoy working with small businesses as they feel good about supporting smaller organisations and find the relationship convenient. As a result, customers are actively looking for ways to support small businesses. Over two-thirds of customers will find ways to work with small businesses – even when it is less convenient for them.
Amy Foo, Managing Director, Zendesk A/NZ said, “Australia is well known as being a nation that champions the underdog, and it is no different when it comes to purchasing behaviour.
“Small businesses have a unique advantage in the personalised, earnest customer service they provide, giving them the one up on larger businesses. By maintaining a focus on providing positive and unique experiences, small businesses have a great opportunity to be competitive against bigger, more well-known competitors,” Foo added.
With almost all Australians reporting a good customer experience with small businesses, this has a big impact on behaviour. Nine out of ten customers will positively change their buying behaviour following a good customer experience – by buying more or recommending a brand to friends and family.
While this is a clear advantage for small businesses, customers have now come to expect a high level of customer service. To meet these high expectations, business owners should ensure they are communicating with customers when, how and where they want.
Digital channels like social media, live chat and texting have become increasingly popular methods of communication. Yet, small business customers still show a preference to look for self-service options before reaching out. Making it easy for customers to answer their own questions is the first step in providing good customer service.
“One thing is clear – it’s not just about providing the best experiences for the customer. Small businesses should also be thinking about their front-line employees. Armed with the right tools and resources to have a complete view of the customer, they will be empowered and enabled to create better customer experiences,” Foo said.
Click here for original article source
Rebranding? Here’s why you don’t let your domain name lapse
Have you ever wondered what happens to domain names that you let lapse after your business is bought/sold or you rebrand and change to a new domain name? In this article, we'd like to share a true story, written by an experienced business writer, Ingrid Moyle.
True story
I admit to being one of those people who didn’t think too deeply of the implications when I let an old domain name that I had traded under for many years go.
After all, I had been trading under the new domain name for a few years, and the only emails that were going through to my old email address were spam, so no biggie if I just let it lapse. Right?
Wrong!
Scammers and hackers are always looking for new ways to do their thing, and re-registering lapsed domain names is simply the latest in their long arsenal of ways to stuff-up business owners.
In my case, the scammers found a way to circumvent the auDA domain name registration rules to re-register my expired domain name.
They then organised hosting with a hosting provider with a murky reputation and proceeded to scrape a full copy of my website from many years ago and make it live once again in a zombie parody of what it once was.
The scammers then filled the zombie site choc-full of malware and had the e-commerce component of the site redirected to their personal PayPal accounts.
For good measure, they added a stack of add-on domains selling male enhancement medications under my old domain name.
Why is this an issue?
Remember when I said that they scraped my content? This included photos of me and all of my marketing wording.
If someone searched for my name, my company or my services, the zombie site would pop up in the Google’s search results, and legitimate clients checking out my business would either pick up a dose of malware for their troubles, or potentially buy a product and get nothing in return leaving them less than impressed with my business.
But wait. There’s more.
They also added in a catchall email to the account, which meant that anyone sending email to the old email address communicated directly with the scammers and not me.
A growing security problem
The zombiing of websites as a way to either deliver malware or access old emails is rapidly becoming a significant security issue for business.
Gabor Szathmari, a cyber-security expert in Australia, had his company re-register six domain names of law firms in Australia that had re-branded to test the scope of the problem.
They then set up catch-all email accounts to monitor emails coming into the old domain names.
As part of the research, they were able to:
- Access confidential documents of former clients;
- Access confidential email correspondence;
- Access personal information of former clients;
- Hijack personal user accounts (LinkedIn, Facebook, etc.) of former staff working in their new jobs; and
- Hijack professional user accounts (Commonwealth Courts Portal, LEAP, etc.) of former staff of the businesses.
In other words, if you let your domain name lapse and at any time you had an email account attached to the domain, you are potentially leaving your business wide open for disaster.
What happened in my case?
I would like to tell you that getting the domain name back from the scammers was super simple and straightforward. It wasn’t!
Stopping the scammers had more twists, turns and heart-stopping moments than a Marvel movie.
Getting the scam site taken down, the domain name registration cancelled and getting it back under my name took loads of paperwork, legal advice, a battle with an SEO company who got in the middle at the wrong time, and a few too many late nights and alcoholic beverages.
However, finally, good prevailed, and my old domain name is back under my control. Sure, it is now radioactively toxic from an SEO perspective, so will never again be used to host a site, or be redirected to my new site, but at least that is one cybersecurity gap closed.
Should you let your domain name lapse?
Domain Names are the new cyber vulnerability. The new rules for every business, no matter the size, is if you have ever had a domain name registered that had a website on it and/or an email account linked to it, NEVER LET IT LAPSE.
Domain names are something that you need to keep for life. Yes, you can let your hosting lapse if you don’t need a live site anymore, but never let your domain name lapse. Keep it under your control at all times.
And if you have changed your domain name and let your old one lapse, your first task for today is to see if you can re-register your old domain name. Do this before you take the first sip of your coffee (it is THAT serious)!
Source: FlyingSolo July 2019
Getting a tax refund, bonus or inheritance - Top tips to make the most of your windfall
Getting a tax refund, bonus or inheritance - Top tips to make the most of your windfall
If one of your employees or yourself receive a tax refund, bonus or inheritance here are some smart ways to use this money that will give long-term benefits. At this time of year, your employees may be receiving a windfall. Please feel free to pass on these great tips. If you have any questions, please feel free to contact us.
Pay off your debts
You could use this money to pay off any short-term loans or credit card debt you have. Or, you could use it to reduce your personal loan or mortgage.
Smart tip
Pay off higher interest debts like payday loans or credit cards first.
If you have more than one credit card, pay off the one that charges the highest rate of interest or the smallest debt first. For more information, see our webpage on how to pay off multiple credit cards.
Paying off debts means you'll pay less interest and save money. Find out how you can reduce your debts faster by making extra repayments.
Work out how much you'll save in interest by making extra repayments - credit card calculator
Create an emergency fund
If you don't already have one, start an emergency savings fund. Open a high interest savings account and, if you can, aim to build up 1-3 months' worth of living expenses, so the next time life throws you a curve ball, you'll be ready to face it head on.
Compound interest will help your money to grow. For example, $3,000 in an account earning 3% interest would grow to $3,485 in 5 years' time. If you deposit extra money into this account, your savings will grow even faster.
See how compound interest increases your savings - compound interest calculator
How Australians spend their tax refund
Take a look at our tax refund infographic to find out the average refund and how people spend it.
Contribute extra to your super
Making extra contributions to your super can really boost the amount of money you'll have to live on when you retire.
If you're on a low income, the government will match your after-tax super contributions with 50c for every dollar you contribute, up to a maximum of $500. For more information on boosting your super see super contributions.
Work out how contributing more to super can affect your final super payout - superannuation calculator
Consider investing your windfall
Investing your windfall can help you grow your money and keep it safe. If you choose to invest, make sure you take the time to consider your investment goals.
If you're new to investing, our section on investing smarter is a great place to start.
If you would prefer to rely on professionals who are skilled in making investment decisions, you might consider a managed fund. These types of products give you access to a range of investment types with the benefit of having a professional investment manager choose which individual assets to invest your money in.
Get financial advice
For large amounts of money, such as an inheritance or a redundancy payment, you might consider getting professional financial advice. An adviser can help you develop a plan to make the most of your money.
We have tips on what to look out for when you are choosing a financial adviser.
Commit to making the most of your tax refund
Publicly committing to your goals is a great way to motivate yourself to achieve the things you're aiming for. Decide how you'll use this year's tax refund to boost your finances, and share it on your own Facebook page.
I commit to making the most of this year's tax refund, instead of spending it on something I don't really need. SHARE TO Facebook
You could also follow MoneySmart's Facebook page. It's a safe and supportive community that will encourage you to stay on track to reach your money goals.
Don't have Facebook? Here are some other options
If you don't use Facebook, or would prefer to make a commitment another way, why not write it down on a post-it note and keep it in a place where you'll see it every day.
This could be:
- in your wallet
- on your bathroom mirror
- on the fridge
- above the coffee machine
- near your desk at work.
Alternatively, set a reminder in your calendar about your tax refund commitment when you lodge this year's tax return.
Think through your options and use your windfall to give you a real financial boost.
Source: ASIC's Moneysmart July 2019
Reproduced with the permission of ASIC’s MoneySmart Team. This article was originally published at www.moneysmart.gov.au/life-events-and-you/life-events/getting-a-tax-refund-bonus-or-inheritance
Important note: This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person. Past performance is not a reliable guide to future returns.
Important
Any information provided by the author detailed above is separate and external to our business. We do not take any responsibility for any action or any service provided by the author.
Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.
5 Habits to use technology more mindfully
Technology has become imperative to our daily work, activities and social life. It is an expectation that we are always “connected” to maintain our place in modern society. So, what do we do? What does using technology to enhance our lives, but not detract from it, really look like? I believe that, as in most things, balance is the key.
Keeping technology usage in balance is equal to keep consumption of anything in balance. We can overeat, over-shop, over party, oversleep, and the list goes on. It’s even possible to drink too much water, which seems crazy, but it is true. Minimalism has found its way into our thoughts when we consider needs versus wants for our home decor, our closets, our food, even our finances.
In contrast, technology can feel like a need versus a want, so it is harder to minimize this category of our lives. I have found multiple effective ways to balance my technology usage AND remain connected. The core always goes back to asking yourself that classic minimalism question, “Does this add value to my life?” Once you determine yes, this or that technology adds value to my life or is a need, then making sure using the tech doesn’t leave you feeling used in return is an absolute must!
5 Habits to Use Technology More Mindfully
If we find the balance that works for us, we can utilize tech as a way to enhance our lives and prevent the negative effects of over-consumption. The below actions can take dedication to embrace, but when you do, your technology usage will improve your life, not detract from it.
Habit 1. Phone Minimalism
Let’s start here and take the phone for its primary purpose, not as a smartphone with its many uses. The “smart” things I will cover separately below. I consider the phone one of the most infiltrating forms of technology in the world, even without the added smart elements. This device is the first one that we decide is a need not a want, so it is the first to get abused and hardest to keep in balance.
TURN OFF YOUR RINGER MAJORITY OF THE TIME
Most of my friends do this; I love them for it. When I hear a phone ringing, it is almost shocking to me these days. It is disruptive to your company if you are with someone and its as annoying as a car alarm to strangers when you are out. It’s best to limit your use of this feature for you and everyone else.
How? An obvious answer is to turn off the ringer. I got so used to this that now I only turn my ringer on when I am waiting for an urgent call, or I have flexible time and am open to a spontaneous call from someone. I know that’s not feasible for everyone, though. A solution for this is iPhone's impressive feature called “Do Not Disturb.” Other phones have this feature, but it’s called something different on each device. Essentially, this is like a call screener.
You program in specific numbers that you must pick up if they call, like your child’s school or your sick relative. When the numbers you programmed as VIP call you, your phone rings as normal. Every other call is silent or is sent directly to voicemail depending on your device settings. Think about which numbers you would pick up even if you were in the bathroom, or in an important meeting. Those are the ones you might add to this feature. All others can usually wait to get a call back shortly after you realize you missed the call.
Phone Screen Minimalism
MINIMALIST PHONE SCREEN
This has been an amazing life-changer for me. When you pick up your phone, what are you looking for? Usually, it’s something specific. You’re checking for missed calls or messages. As soon as the screen lights up more often then not you see a long list of notifications and when you enter the phone you see red bubbles with numbers that are growing by the second. These red bubbles are found on many apps that update regularly and capture your attention.
More often then not you are drawn to click on the app and see what notification you missed. That was not your primary purpose for picking up your phone. You didn’t miss any calls, yet all of a sudden 15 minutes have disappeared reviewing app notifications that were not time-sensitive at all. So, making the primary screen clear so it doesn’t distract you from your purpose is important.
How? Screen Minimalism will look very different for each person depending on what matters to you and comes in 2 primary parts.
TURN OFF NOTIFICATIONS
Turn OFF notifications for any apps that aren’t time-sensitive. This is specific to each person. Keep only the ones that truly matter to you. As an example, I have turned off almost ALL of my notifications. Consider what information you find valuable and actionable and important to receive so instantaneously. Everything else, turn off the notifications for and proactively look around in your phone to address the rest when you have set aside the time.
CLEAR YOUR HOME PAGE
This may seem radical but can be the most effective minimal phone technique. If you light up your screen to minimal or no apps you atomically will take a pause and ask – “What was I looking for?” The magic happens at this moment. Sometimes you were looking for nothing! The amount of times we pick up our phone is habitual, not purposeful.
A person committed to minimizing their tech will approach it purposefully so they are doing something proactively not reactively. Clearing your home page can be the perfect catalyst to help with this.
Habit 2. Email Minimalism
This is another technology need that easily becomes overwhelming. When my email red bubble grew to the number 911 – yes, nine hundred and eleven unread emails – I decided that was a sign! HELP!
My email seemed to scream at me and I spent considerable time over the weeks after that researching and brainstorming the best way to handle my usage of my email so that it can be a tool for me, not a source of stress. The following we essential in getting me very close to inbox zero more often than not.
UNROLL ME
The biggest culprit of email stress for me is the flood of emails from signups that you didn’t sign up for, that you only needed once, or that you want at a lower frequency. Enter Unroll Me. I am sure there are better, similar services out there now but this one was the best I found a few years ago when I minimized my email.
It works like this: You get ONE email with a chosen subset of your emails listed inside, similar to an email news feed. Instead of opening each email separately you get one email with visual images of your emails in a thread. To me, it feels like Instagram within an email for all your “rolled up” emails in your inbox. This feature makes reviewing email very quick and easy. It also consolidates a large chunk of your “junk mail” into one email so your overall inbox receives fewer emails and is cleaner.
What is most amazing about this service and what got me out of the 911 email zone was its super quick unsubscribe feature. Within the Unroll Me account, you can scroll through all of your email subscriptions like a checklist. You can select whichever email you no longer want with a little checkmark and “unsubscribe” to a mass of emails at the same time!
The first time I did this I had over 200 subscriptions, many I never signed up for! I unsubscribed from over 100 email subscriptions within 5 minutes and felt a weight lift off me. Now, I regularly set aside time to go into the software and unsubscribe to a set of email subscriptions all at once. It feels amazing. Bye inbox clutter.
STOP CHECKING YOUR EMAIL
This doesn’t mean what you think it means. Instead of constantly checking your email, set aside a significant amount of time to check your email deliberately. It can be once a day, once an hour or once a week. Setting aside a block of time to look at your email ensures that when you open your email that you have the time to reply or give attention to whatever action you read.
I can’t count the number of times I used to open my email, scroll through it, see I have 5 different emails that need my attention and close my email because, after checking my email, I didn’t have the time right then to reply. The emails that needed my attention stayed unread and in the back of my mind were added to the “do later” list.
You probably know where this is going. Later didn’t happen for the majority of emails and I got up to 911 unread emails. Oops! Now, I open my email when I have time to answer, delete or archive whatever came through and I have been able to keep my inbox at 25 or fewer emails majority of the time.
Habit 3. Social Media Minimalism
SOCIAL MEDIA DATE
Make Social Media enhance your life by setting a social media date with yourself. No one feels good emerging from a Facebook, Instagram or YouTube vortex. You look at the clock and are in disbelief of the time that went by, this is the vortex. Don’t let it take your time, choose to give it your time during “x”. Some examples of “x” are, only look at Social Media on your commute, on your lunch or after dinner. Setting this date will make it a proactive enjoyment, not a time drain.
THE COMPUTER IS KING
Look at your Social Media primarily on your computer instead of your phone or tablet. On a computer, you can set your social media pages to open to a specific subset page instead of your feed. If you open to your feed we are caught by curiosity right away. When you enter deliberately to your calendar of events, a favourite group or your personal page you will select more mindfully where you go from there to invest your time consciously while on the platforms.
Stop and think who you are curious about and type their name in, send them a message or better yet after viewing their profile get offline, send them a personal message via phone and make their day. To often we are consuming and scrolling but the real point of social media is connecting – use it that way or let it go.
SET AN ALARM OR TIME LIMIT
This is very effective. If you know you only want to use social media 1 hour or less per day monitor your usage and get your life back. Living minimally involves valuing your time. It doesn’t come automatically. Most of us have to practice the discipline and there are many tracker apps to help with social media specifically based on your device. Use them. You will be shocked to see your usage.
At the end of the year, you can easily amass 2 full weeks on social media. Would you rather have done something else with those two weeks of your life or did the time spent online add to your life? For me, there is always a tipping point. I learned my perfect amount of time spent online by timing myself and adjusting accordingly.
Habit 4. The Internet Vortex
My absolutely most effective internet vortex prevention tool has been to create a “research later” list. You were just going to look up something, 3 hours later you have read and watched so many things you wouldn’t be able to recall any of the information even if you tried. You also didn’t get the information you went on the internet for in the first place anyway.
This is the struggle with the internet. There is SO much information. Instead of getting trapped in the vortex when you just needed to look something up, create a list of things to look up later that you check off one by one while you are online. This will make sure you are using your time and the internet effectively.
Habit 5. Selective Specialty Devices
There are so many smart devices now it is important to make sure these are enhancing your life not taking your life. Gaming Consoles, TV, Home Stereo, Smart Watches, Activity Trackers… Smart – Lightbulbs, Door Locks, Toothbrushes, Water Bottles (yes, these are real and will track your water consumption for you). When you choose which of these to bring into your life ask yourself, “Does this make my life better, easier, AND when I use it is it a good use of my time?”
Only you get to decide but make sure it enhances not detracts from your life. Gaming is the perfect example. For some, it is a community, a decompression activity, a sport or just a playful past time. It can turn into a stressful activity, an activity that leaves you without much-needed sleep and it can slowly replace meaningful face to face connecting with other people. Be honest with yourself and choose to use devices in a way that leaves you feeling your best. Your future self looking back on your life will thank you.
Hopefully, these have offered you some new, easy to incorporate habits and at the very least, I hope you try 1, dedicate to it and let me know if you notice any changes. I am counting on it that you will feel the difference!
This article by AnneMarie Skin Care was originally published at https://www.foodmatters.com/article/5-habits-use-technology-more-mindfully
10 Minutes with Matt Drew – His views on the economy, success, technology and more
1.Interest rates are at an all-time low. What effect do you believe this will have on a small business?
With interest rates at record lows, there is an opportunity for small businesses to borrow funds to invest in their growth. Whether that be to bring on more staff, spend more on marketing or possibly to access the Small Business Instant Asset Write Off by purchasing new equipment and claiming an immediate tax deduction for assets costing less than $30,000.
2.We have recently seen the introduction of Single Touch Payroll [STP]. How important is it that business owners embrace technology rather than shy away from it?
Like it or not, we are now operating in a digital age, and it is essential that business owners keep up with changes in technology or risk being left behind. In some cases, for example, STP, business owners are left with no choice but to embrace technology to meet their obligations as the Government pushes forward with its plan to move more and more functions into an online environment.
Change can be scary, and it is always tempting to stay in our comfort zones and simply maintain the status quo. However, by embracing technology, we can bring new opportunities to our businesses to help them grow and prosper.
3.How does McPhail & Partners keep up with technology changes?
For us, it really comes down to a combination of connecting with the right business partners and having a team with curious minds. Technology is developing so fast that it’s impossible for a small business to keep on top of everything. We have strong partnerships with our IT and Software providers who keep us abreast of significant developments that can positively impact on our business.
We also encourage our team to investigate ways to improve our internal processes and procedures where they feel we could benefit from new technologies. For example, the team is currently looking at utilising some of the Xero Apps to streamline the expense claim process and integration with our payroll system.
4.What would you say are the most significant risks to business at the moment?
Risks will vary from business to business and from industry to industry. For example, in the retail space, those businesses with physical shopfronts face the challenge of more people buying online rather than in-store. The hospitality industry faces reputational risk as social media can have such a powerful impact, both positively and negatively, on their businesses. Cash flow is always a challenge for small businesses, particularly those in the building and construction industry where significant resources and finance are required up-front.
It is crucial for all businesses to understand the risks specific to their circumstances and put plans in place to minimise the impact these risks can have.
5.What are the biggest pitfalls when selling a business at the moment?
I think for someone selling a small business, the biggest challenge is harnessing their emotions and looking at things objectively. A potential buyer is looking at the purchase as a business decision and will look at the financial performance, market position and perhaps synergies with their existing business.
They don’t see the years of blood, sweat and tears that have gone into developing your business, or all those late nights at the kitchen table doing the BAS returns or paying the accounts. With all that effort that has been put in to build the business, it can be difficult to set realistic expectations of its true market value, which can make the negotiation process extremely stressful and challenging.
6.Small business is the cornerstone of the Australian economy. Do you believe there is enough support for a small business owner; affordable support to help them navigate running and growing a business in today’s times?
There is a lot of support out there for small businesses, but business owners might not be aware of the resources at their disposal. Having a strong relationship with your Accountant and, if relevant, your bookkeeping is essential as we can help to guide and advise you.
Additionally, the Government has some great resources available for free online which can assist with running a small business such as Business Victoria (www.business.vic.gov.au), the Fair Work Ombudsman (www.fairwork.gov.au), the ASIC (www.asic.gov.au) and even the ATO (www.ato.gov.au).
Outside of these Government resources, there are also other organisations that businesses can join, such as the Victorian Chamber of Commerce and Industry (www.victorianchamber.com.au), to assist. It is also a good idea to join your local council business group where you can network with other local business owners to share ideas and hopefully build your referral network.
7.Five years from now, what can we expect from McPhail & Partners?
As part of our ongoing succession plan, we will see some changes of the next five years as we look to position the business for hopefully another 75 years of success. We will still maintain the values that we pride ourselves on, such as honesty, integrity and professionalism so that we can continue to provide our clients with the level of service they expect.
We are always looking at ways to improve our service offering to meet the needs of our clients, which we will continue to do. This will come from a combination of engaging with new technologies, keeping up to date with legislative changes and also developing new skills and offerings to help clients navigate through their own financial journeys.
8.We live in an App era! There seems to be an App for everything these days even budgeting and rounding up Apps to help save money. What’s your advice about using these Apps? Can they be useful when it comes to budgeting?
There are several great apps out there that can help you track your finances and manage your budget. The challenging part is having the self-dedication to update and review them regularly and to hold yourself accountable for the results.
These Apps do serve a purpose but should be used as part of the bigger picture of managing your overall financial objectives.
9.McPhail & Partners has recently moved offices. ‘They’ say that moving can be one of the most stressful experiences known to man! Having been through the process, what advice would you give to others that are considering relocating?
DON’T DO IT! Just Kidding!
Honestly, it was a stressful process at times, and we certainly learnt some lessons throughout the move. In hindsight, there were some things we did really well, but equally, there are some things we would have done differently if we had to do it again. The key items I would highlight for anyone looking to move would be:
-Have a clear plan of what you want to achieve but be flexible and open to change as the process unfolds
-Set a realistic budget and don’t overextend yourself
-Communication! There are so many moving parts, and there needs to be clear communication between all the stakeholders, so things run smoothly
-Ask for help – you can’t do everything yourself (especially if you are also running your business) so build a team and engage others to help you
-Enjoy it – despite all the stress and long hours involved there is real satisfaction in seeing your vision for the future of your business come to life in front of you
A guide to working with independent contractors for small business owners
Hiring independent contractors may be an effective way to get more work done without onboarding new, full-time resources, but there are a few things small business owners should be aware of before taking the plunge.
If you need to start delegating tasks in your business or don’t have the necessary expertise in-house to complete certain jobs, you may want to hire a contractor.
Here is the rundown on everything small business owners need to know about working with independent contractors.
What is the difference between an employee and a contractor?
Employees, whether part-time, full-time, or casual, are hired to work within someone else’s business.
They’re paid a wage and receive entitlements during the year, such as annual and sick leave.
Their work is performed on site, in most cases, and there are other controls about how, where, and when they do their job.
Independent contractors, on the other hand, differ in a variety of ways.
READ: Employee or contractor? Know your obligations
Although there is no one factor or combination of factors that determine a worker’s status, usually contractors:
- Are their own boss, working for themselves but selling their services to others
- Control their working times and work as many hours as are needed to complete a job
- Work from home or other premises of their choice, or complete work on business premises for a short amount of time
- Provide their own equipment and tools
- Create their own processes to complete tasks
- Accept or refuse work as they see fit
- Work for many clients at once
Also called ‘sub-contractors’ or ‘subbies’, independent contractors are hired to complete a set task or project based on terms set within a contract.
They’re paid per hour, per day, per task completed, or via another agreed calculation.
Contractors can choose to delegate or subcontract some of their work if they want to, too, unless this has been specifically forbidden in their contract.
Businesses often hire contractors for their specialised skills, when such skills are required for a short, or pre-determined, amount of time.
The rights and responsibilities of businesses hiring contractors
If you decide to hire a contractor for a project, be aware that your rights and responsibilities are different from those when dealing with employees.
Unlike with in-house staff, when you use contractors, you don’t have to pay them sick leave, annual leave, superannuation, or other related benefits.
You don’t have to take tax out of your payments to contractors, either (although contractors may request this in rare cases). Tax matters are up to independent contractors to sort out.
READ: Changes to Taxable Payments Reporting in 2019
Businesses negotiate a set price for the work contractors are to perform and pay them accordingly.
Independent contractors supply an invoice for the work. Businesses must make payment within the agreed-upon timeframe noted in the contract and/or on the invoice.
If unhappy with the work done by a contractor, entrepreneurs should read the contract to understand payment terms and conditions.
Contractors usually bear the responsibility and liability for poor work, but not always.
Try to resolve payment issues amicably, or make use of a mediator. You may need to get legal advice, too.
Don’t just withhold payment if you’re not pleased with a contractor’s work. Doing this can give them the right to terminate the contract because you failed to meet payment obligations. Contractors might then claim damages from you for that breach.
Contractors are not entitled to a minimum wage, but they’re after an acceptable rate for their work. They typically always bear the financial risk for making a profit or loss for each job.
Under the Fair Work Act, contractors are protected from various adverse situations, though.
For example, as a business owner or manager, you can’t terminate a contract because a contractor made a complaint to a regulator about their workplace rights.
Businesses must not threaten to take action against contractors as a means of coercing them not to exercise their workplace rights, either. Nor can they force contractors to join (or exclude themselves from) a trade group or other relevant association.
The Independent Contractors Act also protects self-employed workers in the matter of contracts.
Contractors can ask a court to review contracts they see as harsh or unfair.
If a case goes to court, factors considered include contract terms, bargaining strengths of each party, unfair tactics used against any party, and the comparison of the total remuneration against standard industry rates.
Be aware that if courts deem a contract to be harsh or unfair, they have the power to order contract terms to be changed (e.g. added, removed, or edited), to nullify certain terms of the contract, or to set aside the entire contract so it no longer has any effect.
Since contractors typically work off-site, businesses aren’t usually responsible for keeping contractors safe.
Contractors need to take out their own insurance and legal covers to protect themselves and others, as applicable.
But, if a contractor does have to work at your business site or use your equipment, your firm could be liable if harm comes to the contractor as a result of your dangerous workspace or equipment.
Contractors are usually liable for any defects or other problems with their work, too, although again, this can vary from contract to contract.
The pros and cons of hiring contractors
There are numerous reasons to hire a contractor. Benefits include:
- Quick access to the additional skills, experience, or technology your business needs, particularly during growth stages or periods of uncertainty
- Organisational flexibility, since you hire contractors only when you need them
- Ease of termination, as you can end most contracts with just a few weeks’notice
- Lower overheads due to the fact you don’t need to pay superannuation, holiday pay, sick leave, and other benefits
- Reduced legal liability as contractors provide their own insurance
There are also some potential downsides to be considered when hiring contractors rather than employing people in-house. For example:
- Lack of stability in your business, because contractors come and go
- Time wasted training contractors how to do tasks to your liking; contractors take knowledge with them once a contract finishes
- Less team cohesion, since contractors work independently and usually don’t get involved in team discussions or events
- When you use contractors, you don’t end up adding value to your core business. Over the long term, investing in employees often pays better dividends than spending money on contractors year after year
- While you will likely get a contractor to sign a non-disclosure agreement, there are risks in giving them access to sensitive information
Utilising contractors in your small or medium business can be a smart tactic in many circumstances. But, always do your research, be careful about which contractors you hire, and get advice from accountants and lawyers to ensure adequate protection before going ahead.
The information provided here is of a general nature for Australia and should not be your only source of information. Please consult an experienced and registered business advisor, as well as a professional legal advisor, as each individual’s circumstances will vary.
Reproduced with the permission of MYOB. This article by Kellie Byrnes was originally published at www.myob.com/au/blog/.
John Peiper from Peiper Signs
Peiper Signs is a long-standing business which has built an excellent reputation. In this article, John shares his secrets to success and longevity.
1. J&J Peiper has been in business since 1981; what’s your secret to business success?
Working hard and trying to do the best possible job for the client that you would want to be done for yourself.
2. J&J Peiper is a family owned business. Many people shy away from working with their family. What is your advice about successfully working with family members?
All of our boys (4) have worked for me and my wife Jennifer, through schooling and beyond at various stages, we have enjoyed their involvement immensely. They have all moved on to their chosen fields now with Jennifer, I am still working in the business. My advice would be to listen to their ideas and work as a team.
3. What challenges do you face as a small business owner?
The challenges of a small business are trying to juggle the workload when you are really busy. You have to learn to prioritise the jobs which need to be completed first.
4. How has McPhail & Partners helped you over the years?
Wayne Durdin has been tremendously helpful through our journey, offering advice and knowledge freely.
5. Technology has changed dramatically since you first started the business – how do you remain at the forefront of your industry?
When I started in the signage field as a 17-year-old most signage was done with a brush and paint which was time-consuming, but enjoyable. Overtime machines came into play that cut vinyl letters then going to machines that print the total sign. Signwriters have always picked up whatever was new to aid us in the production of signs.
6. Who inspires you?
My father was most likely my inspiration at the beginning teaching me to work hard and be honest.
7. What marketing activities have you found over the years have worked?
Having your vehicle sign written is a great way to promote your business. Always have business cards printed and ready. Have a web page and online presence.
8. How have customers’ expectations changed over the years?
I don’t think customers have changed over the years as long as you give them value for money and honest personal touch.
9. What advice would you give to someone that wanted to start a business in today’s world?
Network and give people the best advice that you can. Have business cards and signage to promote yourself. Always remember word of mouth is valued highly.
10. What have been three valuable lessons you have learned since growing the business?
Don’t be money hungry, do the right things, and the money will look after itself. Always keep track of invoices and follow up to make sure all is paid in a reasonable time. Look after your clients, and they will look after you.
For more information about John and his business, click here.
Shining the light on Monika Murti, Accountant at McPhail & Partners
Monika Murti joined our team last year as one of our Accountants. We sit down with Monika this month so that we can learn a few more things about her that may not have been revealed during the interview stage! Thanks, Monika for being so candid in this interview and for all your hard work; it's great to have you in the team!
What three words would you use to describe the culture at McPhails?
Professional, Supportive, Motivated
Monika, you are a working mum who is also studying. What are your tips for juggling all the priorities that you have?
My tip would be to plan, plan and plan for the week. I would do my schedule for the week on Sundays. I wake up an hour earlier than the kids to prep lunches. The night before I organise school uniforms and make sure their homework is done and make dinner for the next night. When kids are in bed, I study.
The world is changing so quickly these days. What advice will you give to your children about career choices in the future?
I would let them choose what they wanted to do and support their choices. I would encourage them to work hard towards their goals and that it's ok to change your career if you decide it’s not for you.
What does a typical day look like for you at work?
I start my day with a morning coffee, check my emails and get started on preparing accounts and returns for clients.
Who inspires you at McPhails and why?
Matthew Drew. His inspiring in-depth knowledge of Accounting principles and tax concepts at such a young age is truly inspiring. Also, he is a very hands-on and supportive leader and injects huge amounts of enthusiasm and energy to the team and the business.
What role do you think continuing education plays in the level of success a business can have?
It definitely gives business a competitive advantage and keeps them relevant.
If we were to come to your house for dinner tonight who would cook and what would we eat?
I would cook and I would cook Indian food, lamb and chicken curry with rice and roti.
Cat or dog person?
Dog person
If someone gave you $1,000 what would you do with it?
I want to say I would go on a family holiday to Fiji, but I would probably pay the bills with it.
If you could have a gigantic billboard erected anywhere to get a message out there, what would it say?
Live in the present.
What’s the best piece of advice you have received yourself?
Once you become comfortable in your own skin, you can accept others for who they are.
You’re faced with a mammoth task at work - how would you tackle it?
Make a list of all the tasks that need to be done and schedule the priorities first and then start working my way through the list.
What is one thing the team at McPhails don’t know about you yet?
I love going to craft and food markets.
Thanks, Monika, we're definitely coming for dinner!
Shining the light on Sargents Cakes with Kim and Paul Sharwood
Husband and wife team, Kim and Paul Sharwood, share their business story with us. Sargents has such a long-standing history and we wanted to know all about it! Thanks to Kim and Paul for opening your doors and sharing your success with us.
- How old is the business?
Established 1952...so 66 years old!
- Where did the name Sargents come from?
Jim Sargent established the business in 1952. Paul’s Dad Barry lived next door to him. Jim only had one daughter who showed no interest in being involved with the business, so he asked Barry’s parents if Barry could begin work at Sargent’s as an apprentice. Barry was like the son he never had. Barry and Jim worked together until Jim retired and Barry bought the business in 1982. He decided to honour Jim by keeping the name Sargent’s Cakes. When Paul and I took over the business in 1997, changing the name wasn’t even a consideration. The name Sargent’s Cakes is synonymous with Reservoir, and the people of Reservoir don’t like change!
- Who owns the business now?
Paul and Kim Sharwood.
- Congratulations on being a super husband and wife team. How do you do it? What’s the secret to your success because not every husband and wife can work together!
I believe that as a couple, both in business and at home, we have a lot of respect and love for one another. We have been together since we were 14 years old, so we know each other extremely well. As far as the business is concerned, Paul starts very early in the mornings and his focus is on the production and quality control of the goods. I work part-time at the business, and my focus when I am there is on the staff and of course the customers. When problems arise within the business, we always openly discuss our options/solutions, and we make sure we are on the same page. A lot of the time Paul will have the answers to any manufacturing issues, due to his extensive knowledge in that area, (which I don’t have!)
- Which social media platform do you use and what is the name so that we can find it?
We have a website (www.sargentscakes.com.au), that is not utilised much since our introduction to Instagram, (sargents_cakes). It is much more time effective to post a cake photo and description on Instagram.
- What makes you smile at work?
Paul...” Seeing the shop full of customers, lining up to give us their money!” Kim...” Having a chat with customers who have become like family over the years; banter with my staff; looking at the final result of a beautiful cake that our decorators have completed!”
- You must have such a loyal customer following. How do you ensure that your quality and service keeps up to date with customers’ expectations?
We do have a huge local following. Many customers have been coming to us for over 50 years! Great enthusiasm and lots of hard work and time are dedicated to making sure that customers return. They expect a friendly greeting, knowledgeable and reliable information on our goods, a clean and appealing shop, and of course food that tastes amazing! This is achieved through the training and supervision of our staff; making sure that they know what our expectations are of them and for our customers. Our staff are very loyal many have worked for Sargent’s Cakes for over 20 years! The main drawcard for Sargent’s Cakes is that we bake fresh daily you can’t beat an apple pie or jam donut that has just come out of the oven!
- In a family business, they say success lies in each other knowing their strengths and weaknesses. What business roles [hats] do each of you do [wear?]. For example, who looks after the HR, who looks after the finances etc.?
Paul is a qualified pastry cook. He is hands on every morning, six days a week, making all the pies and cakes that we sell. I work part-time at the shop and work at home keeping the finances under control, doing the bookwork and answering emails/enquiries. Paul does not do technology, so needless to say all the HR falls into my hands. One of my young decorators has taken over the Instagram page from me, as she is more tech-savvy and more in tune with the lingo!
- You’ve been a client of McPhail and Partners for many years. How would you describe what it is that they do?
McPhails have looked after us the whole time we have owned Sargent’s Cakes, and also when Barry had the business. They give us peace of mind that our accounting needs are being managed by qualified accountants who have the knowledge to keep our business out of strife with the Tax Office (!) and running as efficiently as possible. They offer us advice and are always available to help us when we have enquiries.
- What motivates you every day?
Running and maintaining a successful business that people love to visit keeps us both motivated every day. Knowing that people are enjoying our food gives us great pleasure. Of course, wanting to provide for our family and to continue to provide us with a lovely lifestyle motivates us as well.
- How has retail changed for your business over the years?
Retail has changed for us over the years. We have a younger demographic moving into the area, so the demand for different products has increased. Customer expectations are higher than before, and value for money is extremely important. It is not as busy as the good old days, with competition from other bakeries and the big supermarkets. However, we have learnt to adjust to this. Our prices are very reasonable, and our quality is always high, so we know that Sargent’s Cakes is here to stay!!
Thanks Kim and Paul and congratulations on a wonderful success story.
