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Friday, 14 November 2008
November Newsletter
NEWSLETTER STRATACORE NOVEMBER 2008
Message from the CEO
Welcome to our Newsletter for November 2008 and what an extraordinary month October was! The media has had a field day advising everyone of the doom and gloom and the stock markets have followed suit. However as history tells and many of us have witnessed, the stock market does recover over time. The most important thing to be mindful of is not to panic and make sure you receive very good financial advice by those that are well qualified and able to assist. Remember that unless you sell your shares, any perceived stock market losses are only on paper. Hopefully by the time you do sell the market will have recovered and you will be making gains.
However, in relation to the worldwide economic downturn, now is the time for you to ensure your business is operating at maximum effectiveness and your weaknesses are eliminated. As 3 out of 4 businesses fail before the end of year 5, PLEASE make sure you do everything you can so you don't become a statistic. Stratacore has developed a new product to assist you to ensure your business has a solid foundation and that risks are identified and can be eliminated, and more details are provided later in this newsletter.
We also have a variety of other articles to assist you including
- AusIndustry provides details of assistance available for exporters via a Tradex program. Details of Climate change grants to make businesses 'Climate Ready' as well as for manufactures to 'Re-Tool for Climate Change' are provided.
- Valuable information from leading Dietician Amanda Clark, to assist Australians from ceasing to be a statistic, is our next article. It is horrific to think we are the most overweight nation, ahead of even America.
- Details of the Mentoring for Growth program operated by the Department of Tourism, Regional Development and Industry are provided as the last article.
Stratacore's article this month focuses on ensuring your business is not economically dependent on something and, if it is, why you should start addressing that issue now.
We hope you receive some tips to immediately implement in your business and you are more than welcome to forward this newsletter to any of your business associates.
NEWS
With the extraordinary turmoil in the world, now more than ever you need to ensure your business is operating effectively and that risks are eliminated. To assist you, we have some very exciting news:
1. Stratacore is very excited to announce the launch of a new product!
Most businesses are not performing at their optimum level and this is a serious issue for the business owner especially in the current business climate. Business owners and management do not necessarily know their weaknesses or the ramifications that failure to obtain timely advice can cause. If they are aware of the issues, obtaining appropriately qualified advice to develop the appropriate actions to address the situation is the next challenge. We are very concerned with this issue and after years in the making, your very own Stratacore Business Health Check Report is now available which will provide the essential information to breathe new life into your business.
This is the first extensive Business Health Check Report to cover all aspects of your business; from your finances to human resources to your risk, providing the specific information and the actions required to align your business for success and overcome any weaknesses.
Contact our office on 5526 3550 to obtain your approximately 40 page report that will highlight areas of your entire business that require attention, detailing why they are an issue and how to fix them.
This tried, tested and proven product is now available through your Stratacore office. Considered a product that should be used annually to review, refocus and align your business, it is priced at only $1,500 +GST.
2. Stratacore is pleased to announce there will be two more programs that attract the government subsidised funding of the Maximise your Business Growth. Maximise your Business Value program conducted in early 2009 with the first one commencing on January 28th. THERE WILL DEFINITELY BE NO FURTHER GOVERNMENT SUBSIDISED PROGRAMS AFTER THIS.
Give your business the head start it needs by commencing this program in January, or for the maximum benefit bring your management team and use it as strategic planning time. For the many who have experienced the program and obtained the benefits, now is the time to refer your business associates so you can all grow together and combat the market turmoil.
If you require details, please contact Lucy on 07 5526 3550 or email lucy@stratacore.com.au.
Cost is $750 + GST per person.
Eliminate any Economic Dependence in your Business - by Debbie Crowther FCA B.Bus
Often when a business is started, the reasons for its formation revolve around one area - for example to service a particular client or a person capitalising on a particular skill. That is very logical, but if steps are not taken to remove the dependence on the one client or the key person and something were to happen, the business could disappear overnight.
Economic dependence normally results from dependence by a business on one or more of three areas - dependence on major clients, major suppliers or key people. Whilst you may think you are bullet proof, you are still human and economic dependence is a serious issue that all businesses need to address.
One company that we worked with was economically dependent on a client and the referrals they generated. Unfortunately for reasons beyond the control of our client, they almost lost that client and the effects would have been devastating. They have significant equipment subject to finance as well as rental premises and that’s without the staff. The solution was to keep servicing the major client but identify all of their strategic assets and then target very specific other significant potential clients.
For those businesses who have a major supplier we recommend you look elsewhere so if the unforeseen happens, you can keep trading. One of our clients imported the main component of their product from company X and were considered an excellent customer by them as they paid all invoices on time and were great to deal with. Having a backup supplier was raised on a number of occasions but it never got to the 'must do' list. What no one counted on was that Company X suffered major problems due to the loss of a significant number of staff. They couldn't meet the demands by their customers and could only service their major customers. That meant our client had to wait 4 months to receive supplies. To service their customers they had to make alternative arrangements which ultimately cost more and affected the bottom line.
The last way a business can be economically dependent is on key people in the business. This doesn't stop with the founder and can include many people, especially those that have their duties 'in their head.' To counteract this, detailed procedure manuals are a must as well as ensuring there is a back up who can step into a role if necessary. You also need back ups of all key information to be held in a safe secure location and it may be worthwhile for the business to have some form of insurance to cover the disruption to the business and the resulting financial effects, especially if you need to find a suitable replacement which will take time.
The above are three basic examples of economic dependence of a business and the effects felt the hard way. We hope you will review your business to see if you have such risks and if so, speak with appropriate advisers to fix the issues and develop the right solution for your business.
Are you an Exporter and looking for valuable cash flow benefits?
AusIndustry, the business arm of the Australian Government's Department of Innovation, Industry, Science and Research, aims to strengthen the international competitiveness of Australian business in export markets through its provision and administration of its Tradex program.
Tradex is a scheme which provides up-front exemptions from Customs Duty and GST on imported goods that are intended for direct export or imported goods that are used, lost or wasted in the manufacture of other goods that are exported later on e.g. imported component parts that go into a finished product destined for export.
If you qualify for the Scheme, you will be given a Tradex Order and reference number, which you quote to the Australian Customs Service (ACS) when importing the nominated goods. Tradex duty is an amount equivalent to the Customs duty that would have been payable on the imported goods but for the concession provided by the Scheme.
Therefore, the advantages of having a Tradex Order is that it can deliver significant cash flow benefits, whereby the savings can flow through the entire supply chain, right through to the exporter. It also removes the need to 'drawback' i.e. apply for a refund of the duty and gst charges after export. This benefit is an entitlement upon registration, if eligible.
Therefore, to discuss eligibility requirements and the relevant registration process, be sure to contact Regional Manager, Rowena Bell-Bradbury, of the Gold Coast-based AusIndustry Regional Office on 07 5503 1601 / 5503 1476 or e-mail Rowena.Bell-Bradbury@innovation.gov.au.
REMINDER REMINDER REMINDER REMINDER
Further to the previous months' Stratacore newsletters, which featured a write up of AusIndustry's rounds-based, Climate focussed grant programs, please note the following important grant program dates:
- Climate Ready (matching funds grants from $50,000 to $5 million in support of projects addressing the negative effects of climate change) – the second round is now open and is due to close for submissions on 4 December 2008
- Re-Tooling for Climate Change (grants to manufacturers of $10,000 to $500,000 for up to one third of the cost of each project improving energy &/or water efficiencies of production processes) – the first round recently closed on 20 October, meaning the second round is now open for submissions at any time prior to its round closure date, which is to be published shortly
For more information on any of the above, please contact the Regional office (as mentioned above), or call the national Hotline on 13 28 46 or visit the website: www.ausindustry.gov.au.
Drinks that don't go with lunch - they are lunch!
Amanda Clark has recently released the book 'Portion Perfection - A visual weight control plan' where the size of portions is a major factor in our diet.
According to latest reports, Australia is the world's most overweight nation, ahead of the super-sized Americans.
Nutrition surveys over the past 20 years have clearly established we are eating more calories than we used to. What was acceptable as a snack 20 years ago is now approaching the calories in an entire meal. Leading dietitian Amanda Clark compares the number of calories in various serving sizes in her new book Portion Perfection - A visual weight control plan, including:
Take-away coffees
Takeaway coffee in meal and snack sizes
20 years ago, a take-away coffee would have come in a 200ml polystyrofoam cup. It was made on water and even if you added full cream milk and sugar it wouldn’t be more than about 85 calories.
Today, a typical small milk-based coffee or hot chocolate would be 250ml - that's 200 Calories (Cals). A Grande size at 470 ml provides up to 480 Cals, depending on the particular drink you've ordered. That is the equivalent number of calories in an entire meal for most people!
The Solution
It is possible to enjoy calorie-dense drinks occasionally with your meal without gaining weight. The key is getting your portion sizes right to meet your calorie needs. We are all unconsciously persuaded to eat more because of external factors like marketing, packaging and our environment. Various sized glasses give the illusion of holding more.
So how did our portions get so big?
The main reason behind increasing portion size is simply that food manufacturers want to make more money, and they have a number of clever ways of achieving this. Their aim is to persuade us to eat more of their products. There are two ways of doing this: they can sell more, although this isn't necessarily easy to do. The simpler option is to make the products bigger (and therefore more expensive).
Food is actually a fairly small component of the cost of a food product. The main costs are the labour, the packaging and the advertising. It is therefore a very cheap option to offer extra-large portions as an attractive offer to consumers. For example, you can get an upgrade on a take-away meal which gives you 50 per cent more food for 16 per cent more money. Or the company decides to manufacture a 'king-sized' packet, which costs more, and then gradually phases out the original packaging size.
Another simple benefit of larger products from the manufacturer's point of view is: the bigger the packet, the more visible it is on the supermarket shelf. Of course, consumers aren't entirely blameless either. Where we fall down is that we are attracted to value for money deals - but is it value for money to eat more than you need? What is the actual cost in health and efforts to lose that excess weight gained?
Extract from Portion Perfection - A visual weight control plan by Amanda Clark
This book and plates are perfect for weight conscious and those wanting to educate children on healthy eating options. If anyone is interested in acquiring Amanda's book or portion control plates, one of which will be available for viewing in our reception, please contact Lucy on 07 5526 3550 or lucy@stratacore.com.au.
Mentoring for Growth program
Mentoring for Growth (M4G) is a panel mentoring process delivered by the Department of Tourism, Regional Development and Industry with the support of private sector business mentors.
Who does M4G assist?
The program assists enterprises that are in high/rapid growth mode by providing access to a panel of business mentors who can help to address commercial challenges. Typically businesses that participate in M4G will:
* Be experiencing strong growth and/or have clearly defined growth opportunities
* Have an annual turnover between $500,000 and $50,000,000
* Have Queensland headquarters or significant Queensland operations
* Hold (or be in the process of obtaining) rights to intellectual property that provide the enterprise with its unique business opportunity.
What happens at a M4G Panel Meeting?
When a mentee firm attends a M4G panel meeting, a group of eight to twelve voluntary mentors will assist the firm with their challenge by conducting an hour long think tank. The firm's commercial perceptions may be challenged and a range of options may be identified that will help the firm make a decision and move forward.
What sort of commercial challenges can M4G assist with?
Challenges facing your business may include how to manage people and business operations, market products or services, establish international business opportunities or arrange finance. In fact, Mentoring for Growth can assist firms with virtually any business opportunity or issue to better understand and address their commercialisation challenges.
What does it cost?
M4G is a FREE service to Queensland businesses. The industry Convenors and Mentors generously donate their time and knowledge.
The next M4G session will be held on 3 December 2008.
To register your interest as either a mentor or mentee, click on http://www.business.qld.gov.au/dsdweb/v4/apps/web/content.cfm?id=7634
Contact Details
Stratacore International Pty Ltd
Seabank Building
12 Marine Parade
Southport QLD 4215
PO BOX 5931
Gold Coast Mail Centre QLD 9726
Ph: 07 5526 3550
Fax: 07 5526 3150
Email: lucy@stratacore.com.au
Disclaimer: This is general advice and is not to be relied on. You need to seek professional advice before making any decisions.
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