Business Advice

Building a business can be a tough gig, but working for your business owning boss when they’re at their wits end is no walk in the park either. The pressures facing entrepreneurs are widely known but sitting behind the owner’s stress, exhaustion and burnout are the staff doing their best to hold it together. Yes, the average entrepreneur spends nearly 70% of their time running a management hamster wheel. Yes, it’s a time consuming race that has a quarter of them working over 50 hours per week. But if the business owner is stretched too thin, chances are their staff are coming to the end of themselves too.  Staff miss out on training  It’s exhausting for business owners to chase their staff around to fix their mistakes. It’s frustrating for them to watch their team wasting precious time because they can’t find what they need. And it can be infuriating to realise that no matter how many times you show them, they still don’t know what to do.  Even though research shows employees want to be trained, business owners in survival mode typically abandon the training and development their staff need to create business stability. Employees want to work more effectively, develop new skills, and advance their own careers. If they don’t get it, research shows 40% will leave the company altogether. If you employ millennials, 87% say they will jump ship if staying with you means missing out on professional development and career growth. Proactive business leaders make staff training a priority. They see the learning opportunity in every mistake and they champion the development of their staff as the best way to grow the business. Staff can feel unappreciated When you have been tied night and day to the work of growing your business it can be difficult to pop your head up out of the trenches to check in with your team. 30% of business owners report struggling with depression, and 50% of those deteriorate through to full burnout. Reaching out to care for your team is undeniably difficult when you can barely string five minutes together to care for yourself.  It is easy to take your staff for granted, but when employees don’t feel valued or rewarded by their employer, they are likely to leave. 79% of employees who quit cite lack of appreciation as their reason for leaving, but with proper rewards and acknowledgement 90% of employees report feeling like their work really makes a difference.  Strategic business owners invest just a few moments each day into acknowledging their staff and the contributions they make towards lasting business expansion.   Staff will cost too much While your staff have the potential to be your greatest business asset, employees who miss out on the training and TLC they need can become a costly expense in any business. For every thousand employees, ineffective training costs businesses $13.5 million each year in poor customer care, reduced performance, and wasted resources. If a disgruntled employee leaves, replacing them will have the business owner spending half of their annual salary to find and train their replacement.    The problem is that many business owners see training as a short term expense rather than an investment in the long game. Companies that invest in employee training have 24% higher profit margins than those that don’t, and they enjoy 218% higher income per employee than companies without formalised training. Business owners burning the candle at both ends in pursuit of growth will do well to remember that being the champion of their staff will accelerate the achievement of their aims. To develop a proactive leadership plan for your business, go to http://www.operationverve.com

Working on your business, not in your business, is the prevailing wisdom among businesses at the moment but growthcoaches.co founder Justin Theng said that it’s beneficial for entrepreneurs to learn to become better marketers.  Speaking at a recent marketing training event, Justin Theng — a former advertising executive who now owns and operates marketing coaching business GrowthCoaches.co — said that many business owners have had at least one bad experience with a marketing agency or a marketing person they’ve hired. He subsequently told this publication that the reason is because instead of owning the marketing conversation the same way that they typically own the sales conversation, business owners abdicate instead of delegate. “For the last 15 years I’ve worked businesses ranging from large household brand names to small businesses and startups. What I’ve found is that the businesses that go onto see the most success are the ones where the  owner has applied themselves to being the architect of their own marketing plans, with some guidance,” he said, “We have a diverse range of clients, from the top end who book in workshops over a number of days, and those who just want a quick online course with less than $500 to spend.” What is the most common mistake business owners make with their marketing?  When it comes to their marketing, many business owners like to take a set-and-forget type approach. They’ll engage an expert to do the marketing, and hope that they’ll just get on with it, while the business sits tight and waits for the sales to come in. “When marketers don’t have regular connection with the visionary in the organisation, the chief ideas person, then the marketing can devolve into guesswork,” he said. “What’s worse, is the business owner is left thinking that they are not getting what they wanted, and the marketers wonder if their efforts are valued. That perceived indifference on both sides causes more lost ROI than anything else. How can business owners improve their mindset towards marketing? According to Mr Theng, entrepreneurs make the best marketers, because from the beginning they have lived and breathed the message to market. “Imagine one day the business owner is on a stage speaking to other entrepreneurs and inspiring them with the journey they've been on to get to where they are. In that context the brand and the entrepreneur are one in the same. They are the story of the business, and in a sense you can’t really delegate that,” he said. “Sure, they may not be able to use any marketing technology or use the tools, or even be the best with all the latest tactics and strategies, but that's not marketing. That's just execution. Real marketing is about moving people and motivating people to engage with the business and transact. That's it. That is what good sales is, and that is what good marketing is.” What to remember when planning your marketing Realise how involved you would be in your marketing if the whole world were watching. How close would you be to your marketing? You probably wouldn't set-and-forget.” Don't wait until you're on a stage to be an influencer and a brand ambassador. “Be an influencer now. You're already an influencer with your customers. When your customers or clients want the best of the best, who do they ask to speak to? You. So don't just be that in a small community of people who are already transacting. Be the best influencer you can beyond that. Whether that be on social media or in writing articles or blog posts or establishing partnerships or speaking engagements.\" Be an internal influencer. “Influence your team. Be the most customer-centric, marketing-thinking person in your business, and inspire, lead and coach your team. Be the one in your business to know the plan, like an architect turning up at a construction site. The architect is the one that designed the building. He knows what's going on. He doesn't know how to mix the concrete, necessarily. He's not there to tell the foreman how to be a foreman. But he is the guy that's carrying the vision in his head, and he knows not just what the building will look like, but what people will feel when they're in the building. What the space is supposed to feel like. What the emotions are that comes with it.\" For More Information Justin Theng [email protected] http://growthcoaches.co

Selling a business is often an emotionally taxing experience as an owner. You have to balance handling all the administrative matters correctly with preparing for life away from your business. As a result, it is really easy to overlook certain parts of the process, which unfortunately can create headaches down the track. This is particularly relevant to the legal aspect of selling your business. To help you avoid any complications, we’ve come up with a list of legal factors for you to consider before signing off on a sale Terms of Sale When presenting your business for sale to prospective buyers, it’s important to be very clear and specific about what exactly you want to sell. The goodwill of your business can be spread throughout your tangible and intangible assets. This can range from land and equipment to your business name and customer data. You will want to establish the elements of your business that you wish to sell or retain, prior to entering into a Business Sale Agreement. Business Name Transfer If you do agree for the new owners to take on your business name as part of the sale, you will be responsible for the transfer process. ASIC provides a simple to use service to transfer a business name to a new owner. This process is done completely online and is accessible here. It is important you are aware of this obligation prior to agreeing for your business name to be sold. Employees When selling your business, the future of your current employees will be one of the more pressing matters to deal with. This is something you don't want to neglect, as there can be legal consequences if you do not act appropriately. During the process of a business sale, there are essentially two outcomes that can occur with regards to your employees The new owners may want to keep your existing employees when they take over the business. In this instance, it is wise to provide as much information to the new owners in order to avoid any confusion or complication. As a starting point, you should transfer your employee’s most recent records over to their new employers. In addition, you will want to make them aware of any existing obligations you have with your employees.  These could include contractual, financial, legal or leave related agreements. Despite the fact that your employees will still have work, you will need to provide notice of their employment ending. Inform them that they will have to enter into a new contract with the new owners, which comes into effect when the business is officially sold. Alternatively, if the new owners have no intention of employing your staff then you should notify them as early as possible. This can be a delicate situation to deal with, and as a result, honesty and transparency during this process is vital. Being clear with your employees about their future will not only benefit you as the employer but will also give them the best opportunity to find other employment. It’s best practice to refer to and follow the requirements of the Fair Work Act 2009. Leases and Licenses During the negotiation process with a potential new owner, it’s vital to identify any existing leases, licenses or permits that concern the operation of your business. An existing lease may require a transfer to be arranged with the vendor to the buyer. With regards to licences, councils tend to be the authority that will manage the transfer process when a business is sold. Liquor and food licences are examples of this. Failing to disclose any of these factors, can lead to legal consequences, especially if they are noticed after a sale has been completed.  The key theme to remember throughout the entire process of selling your business is transparency. Disclosing relevant information about your business to a prospective buyer will ensure you don’t encounter any complications after the sale. If you are uncertain about any aspects of the selling process, the advice of a business sale lawyer be of use. For more information, contact Christopher Tsiknas at Lawpath [email protected]://www.lawpath.com.au

Before I take on a client I stop and look at everything about that industry that could gripe, frustrate or irritate a potential customer. I ask people what irritates them. I try to internalize the same problems so I can experience the customer’s frustration when I create my client’s marketing. I write down on paper precisely what aggravating problems I want my client to promise to correct - all the problems someone could have who seeks out my client’s product or service. I then examine companies in my client’s field who are doing things right by addressing one or more of the problems on my list. I look at a lot of different industries looking for the undisputable winners’ in each field. Why?  Because many success-building techniques that work for one firm in one industry are adaptable to others. In fact, most are useful. I've prepared a suggested worksheet you can modify or add to. Carry it with you all day. Keep it in the car when you're driving and listening to the radio. Keep it handy at home or in the office. Every time you see or hear something that irritates you, assume that it irritates the heck out of most everybody else and jot it down. To remedy this problem or its equivalent in your industry can lift your business head and shoulders above your competitors. When you see a business that truly stands out, ask yourself – What distinguishes that firm’s performance from its competitors? Once you find an answer, record it, and then employ that same technique in your business. Here is my suggested worksheet: Things I can't stand in other businesses. What would I do if I were in that business to overcome that problem? How I can adapt the positive side of that negative observation over to my business? Things firms do that impress me. How I can adapt that technique into my business’s marketing operation? Terrible ads I've seen. How could they be improved? What salesman/woman has impressed me? - How and why? How can I adapt that positive impression to my marketing? What turnoffs have I been subjected to by salespeople? How could that negative be converted to positive? How could I adapt that positive? Prepare worksheets for radio, T.V., newspapers, the Internet and direct mail and then force yourself to review it regularly. Frequently and systematically review this data, to identify marketing elements that can be incorporated into your business operation. Take the necessary actions to test the effectiveness of these elements in enhancing your marketing programs. While doing all this, remember your Unique Selling Proposition (U.S.P.) the reason or reasons why customers should chose to do business with you over your competition? If asked to recite in a tight, concise, compelling 60 words or less, the Unique Selling Proposition their firm offers that goes above and beyond all their competitors, most business owners would go blank. If you can't immediately, clearly articulate one or many unique sales appeals, how do you expect your customers to perceive it? Indirectly this article is really about how to improve, expand or create a compelling U.S.P. to make your firm invincible. It really works. Try the techniques. Integrate them into every fabric of marketing and observe the impact. It truly will amaze you. Bob LyonThe Better Business Report0438 830 937 

The job market is not like it used to be. The people on both sides of the table know that business owners need their staff more than the staff need their employer, and if they plan to sell up, they need the loyalty, reliability and efficiency of their staff more than ever. The power game is up for the boss. We are in a seeker’s market. I spoke with a business owner recently who is passionately invested into the goal of building his very successful creative design business into a cookie cutter franchise model. He says he plans to duplicate that model across multiple stores to create a saleable asset. He’s in the early stages of his journey, and on this day he was lamenting the frustrations of recruiting his first hire. “They come into the interview and ask what I will offer them! As if I owe them something!” The stats around employee motivation and expectation act as a challenging mandate for business owners. A 2018 study by Axonify showed that over 85% of employees not only want training to advance their own career, but they want it to be fun, personalised, easy to understand, delivered on paid time, at a time they choose. As real human beings with feelings and pride, employees also want acknowledgement, recognition and reward. Octanner tells us that 79% of employees who quit their jobs cite a lack of appreciation as a key reason for leaving. 69% of the participants in that particular study reported not having been recognised even once that year. No wonder 85% of employees are disengaged at work! In a 2016 Reventure study on the Australian Workplace, half of workers admitted that “some days of work don’t really get my maximum effort.” Guthrie Jensen tells us that 74% of employees feel they aren’t reaching their potential at work. This is an expensive problem. 40% of workers say they will leave their employer in the first twelve months if they do not receive adequate training to do their work, which costs Australian businesses $33 billion annually. Workplace disengagement across the board costs over $500 billion each year. The last thing you want if you are working a plan to sell your business is to have unpredictable, disengaged staff manning the fort. Long-time business mentor and exit strategist Denise Hall, affectionately known as “The Entrepreneurial Mother”, says most business owners leave their run too late when it comes to adequately preparing for the sale of their business. “The actual sale process should take anywhere between 3-9 months. But you’ve got work to do first to get the asking price up. From a salability perspective, your staff need to have the expertise to transition the business from your ownership to the next party. They need to be able to replace you entirely.” Business owners who break the statistical mould prepare their business for sale well in advance on the strength of their staff training and development programs. This is about more than boasting the competence and productivity of your current workers. Building a saleable asset relies on the creation of robust staffing processes. Effective systems for training, management and promotion attract high quality candidates, empower them to perform well when they’re hired, and make them reluctant to leave. Furthermore, a business asset is only truly ready for sale if it can be demonstrated that even in the face of staff departure, it is guaranteed that the business show can and will go on. Benjamin Franklin once said “an investment in knowledge pays the best interest” yet gaping holes in workplace training abound. Axonify’s study shows that one third of employees receive zero training, and 43% of those who are trained say that training was ineffective. A recent study by CareerBuilder.com shows that a whopping 58 percent of managers said they didn’t receive any management training at all. To be fair, the vast majority of businesses do offer staff training in one form or another, but effectiveness is the key to building a saleable business. A 2017 ReportLinker study revealed 83% of employees with opportunities to take on new challenges say they’re more likely to stay with the organisation. Companies that offer comprehensive training programs have 218% higher income per employee than companies without formalized training. But it doesn’t stop there. These companies also enjoy a 24% higher profit margin than those who spend less on training. You might like to think of your business asset like your car. Your employees are the engine, and training them provides the fine-tuning and maintenance they need to ensure optimum performance. If you’re looking to sell that car, the potential buyer will be impressed if it hums like a dream. If you can show long term service records, they will be confident the vehicle has been prepared to perform well into the future. If you’re selling your business, your potential buyers need to see staff working like a well-oiled machine as a result of their performance being maintained by systems that are recorded, tried and tested. When you as the seller can show that the work of your staff is consistently excellent because you have developed well-refined management systems, you are a very attractive candidate indeed. For more information about setting productive goals in your business, contact Kerry Anne Nelson at Operation Verve http://www.operationverve.com

The end of the financial year brings with it the thrills of counting the beans of your business wins, or the condolences of tallying up losses. It is a perfect time to take stock of your current position and how you got here. Revise the goals you have set in your business for improved performance and better results.  Ultimately, your goals will be successful only when their achievement grows your business and establishes freedom. Often measurements are set around lag goals which is not always helpful. Lag goals are usually results oriented, meaning their achievement comes directly from your organisation’s activity. Lag goals are easy to measure but not as easy to improve or influence. These goals target outcomes such as the number of sales made or the amount of revenue produced.   While tracking them has value, they’re not always the most productive areas to set KPIs around, because they are by definition the type of goals that lag behind the activity being done. They can only be attained as a result of your routine business activity.   Lag goals are important to measure because results are important to achieve. But if you want to control the activity leading these results you need to set KPIs around lead goals. Lead goals measure what is actually being done in the here and now. They are easier to influence or improve because they deal with immediate progress and show the likelihood that you will reach your aims.   Lead goals track activities such as the amount of sales calls being made to result in the sales. They count the amount of customer interactions that you’re having which will result in revenue. They tally how many ads being presented on a daily, weekly or monthly basis to achieve the social media reach that you might be looking for.   To put it simply, the difference between lead goals and lag goals is the difference between counting the amount of workouts you do and counting the amount of kilos you lose. The workouts are directly within your control, while the weight loss is something you cross your fingers for in hope.   When you’re setting your business goals this financial year, be clear on the difference between lead goals (which are your daily and weekly routine activities) and lag goals (the results or the output of that activity). For more information about setting productive goals in your business, contact Kerry Anne Nelson at Operation Verve http://www.operationverve.com/   

Did you know that 97% of all businesses here in Australia are small businesses? And did you also know that over 67% of small business owners don’t make it through to survive their first 5 years? Running a business is not for the faint of heart. Entrepreneurship is undeniably risky. While there are a number of small businesses that perform well and are continuously profitable, a larger portion of businesses fail without the proper tools in place to achieve critical business objectives. So many small businesses are on an inevitable path to failure. Here are four reasons why small businesses fail: Not making enough sales A large number of businesses fail because they are over-reliant on a very small number of clients. It takes just one unexpected closure to result in a significant fall to rocky financial. Short-term future earnings can be massively reduced, and invoices for completed work can go unpaid. While maintaining caution about spreading yourself too thin, you should try not to rely on a very small client base. If you deal with a very few clients, or if a small number make up the bulk of your turnover, you should begin scouting for new prospects. 2. Expenses are too high – Just as good cash flow keeps a business afloat, poor cash flow can sink it. If your bills exceed cash on hand, you’ve got a cash flow problem. Cash flow can also shift dramatically depending on the time of year, or even by day of the week. What makes it even more challenging is that cash is most needed when your business is growing. A strict handle on cash flow helps insulate your business during struggles, downturns, or unpredictability, and also allows more flexibility during growth periods. 3. Record keeping  As a small business owner, you understand your business’ processes inside and out. You probably lose sleep at night worrying about your sales. You’re passionate about your business succeeding, and you’ve invested your life’s work into it. But, there are metrics that small business owners often overlook and fail to record and track effectively, which ultimately hinders them from making strategic plans thus preventing them to succeed in their businesses. 4. Strategic management  A 2011-12 report by the Australian Securities and Investments Commission (ASIC) found that 44 percent suffered poor strategic management. This is another common reason why small businesses fail. For a small business to grow and succeed, it needs a good strategy and a plan to support it. As an entrepreneur, don’t make the mistake of excessive idealism concerning your business, don’t be so focused on your vision for the business that you forget or neglect creating a strategic plan that factors in important components of your business and addresses them adequately. Having a clear understanding of exactly what we are dealing with here in our small business journey is half the battle. It is vital that we keep the passion we have for our small business in check with the realities of our very survival. Developing a clear plan to address each of these four areas in our small business is the only way that we will earn our right to be on the positive side of the statistics, growing and expanding beyond our humble beginnings to the larger operation we always imagined.   If this article has struck a chord with you, please reach out to Kerry Anne online. She loves hearing about her readers’ businesses and is passionate about helping them to transform their operations into the Freedom Machine they’ve wanted all along. She is dedicated to establishing proven business systems to create team certainty and sustainable expansion which open pathways to new lifestyle choices. http://www.operationverve.com/   

“The greatest thing in this world is not so much where we stand as in what direction we are moving.” Johann Wolfgang von Goethe It’s hard to keep up appearances in your business when the backend is chaotic and stressful. Successful businesses thrive on the hard work of well-oiled business processes, dedicated employees, excellent communication, continuous innovation and a desire to provide more to customers. All of these depend on how well managed a business is – how effective the management is in steering the business in the right direction. Whether you are the business owner, a customer or a prospective investor, you want to be a part of a business that’s being run smoothly and efficiently. Let’s explore the five groups that can see all the behind the scenes pieces of your business. These are the people who experience the effects of a poorly managed business, which this puts you on the back foot when it comes to driving business growth: STAFF: The first group of people is your staff. What does your business look like from a staff point of view? The more you can get your staff flowing competently and confidently, you will find that they are the very people that will pick up the mission of your business expansion and drive it forward are better than you ever could. Make sure to create a supportive environment where everyone knows what a good job looks like. And when that is done, ensure that work is getting rewarded. CUSTOMERS: The next group of people who are going to see the effects of the backend of your business are your customers. They may not see what's going on in your business filing systems, but they're certainly going to get the effects of how things are run. Make sure your customers experience a consistently positive event when they engage with your business. They should always have the same type of service, receive the same sorts of follow up, and have the same sort of exemplary experience in your business. If they don't, they may not tell you, but they will tell their friends and family or put their reviews online. So make sure that the backend of your business is driving exceptionally positive customer experiences. SERVICE PROVIDERS: The next group of people who are going see the effect of a poorly managed business backend is your service providers. Your suppliers and contracted service providers have the potential to become some of your biggest raving fans and they have the ability to drive your business forward into new growth. If your business doesn't have a good flow when you're dealing with your service providers, that word will spread like wildfire. FAMILY: The fourth group of people to see the effects of the behind the scenes part of your business is your family. If you're going home tired and stressed, worried that you're juggling too many balls in the air because your systems and processes don’t flow, they are going to feel the impact. But conversely, if you are refreshed, and constantly achieving and expanding in a sustainable way, your family will jump on board and celebrate that with you. It's really important to get that behind the scenes aspect of your business set up and running smoothly because you want your family to be advocates for you and your business’s growth. YOU: And finally, the last person is you. You can put on all the smiles in the world when you’re in public, but if your business is a mess behind that veil, deep down you know that things aren't right. It is hugely important that you have a sense of integrity and honour about what’s happening in the engine room of your business. If your business is clean and clear, and it matches the glossy front end of your business, then you know the entire operation is being represented truthfully for everyone to see. If you want to stay ahead of the growth curve in your business, it's really important that the back end of your business matches what's happening in the front. If you want to continue to scale that business through to become something that's bigger than yourself, expanding, multiplying, creating a positive impact in the world, you need to realise that in reality, what’s happening behind the scenes is driving what people see and experience, and not the other way around.   If this article has struck a chord with you, please reach out to Kerry Anne online. She loves hearing about her readers’ businesses and is passionate about helping them to transform their operations into the Freedom Machine they’ve wanted all along. She is dedicated to establishing proven business systems to create team certainty and sustainable expansion which open pathways to new lifestyle choices. http://www.operationverve.com/   

Today one of our major national newspapers is carrying a front-page story about the ongoing energy crisis and the potential economic risks that flow from political plans based around ideology not reality.   Peter Strong, CEO of Council of Small Business Organisations Australia (COSBOA], responded saying; “Business knows that if you have a problem then you must address it with a plan that identifies and manages change and the risks - practically and comprehensively – you can’t stand still. It is time for our political parties to stop pandering to the extreme left and extreme right voices in their ranks – they must let the ‘sensible centre’ majority to be heard.”   “Small business is frustrated and angry – we continue to feel the pain from ever increasing energy prices while farmers and businesses in regional communities face devastating losses from bushfire and floods of increasing severity.”   COSBOA knows that small business people, like all Australians, want an energy system that provides reliable and affordable electricity while reducing GHG emissions. This can be done without destroying jobs and wrecking the Australian economy in the process.   COSBOA will be holding an invite-only Small Business Energy Summit in Melbourne on 20 March to confront this issue head-on. This summit will focus on all challenges and develop a roadmap that is about change management and risk management. The Energy Summit will be working out ways small businesses can take control of their electricity usage and costs, in a way that is both affordable and environmentally responsible.   Mr Strong added, “Many households have voted with their feet by installing rooftop solar panels. Doing this in a small business, operating in a building or shop they don’t necessarily own is harder, but not impossible.”   “And it is not just about coal and renewables. There are major opportunities for Australia to better harness its vast reserves of natural gas to power Australia’s economy with lower carbon emissions, alongside coal and renewables. Yet many State/Territory governments appear to be asleep at the wheel in respect of these opportunities”.   “We are going to assemble a team of partners (political leaders, business leaders – big, medium and small) to develop a practical plan that will work for Australian Businesses.”   “We are delighted that Minister Taylor has agreed to open the forum and we will be inviting the other political leaders in this space to tell us how they could help Australian businesses (of all sizes) take control of their energy costs and responsibly reduce their GHG emissions”.   Mr Strong finally added; “It is past time for action. The time for talk ended years ago.” ____________________________________________________________________ For more information on COSBOA visit cosboa.org.auInterviews with Peter Strong, CEO of COSBOA are available upon request.

It’s inevitable that some businesses will fall into insolvency in their lifespan. This means the business is in a position where they are unable to pay their debts. Despites efforts to turn the situation around, most insolvent businesses won’t be able to avoid liquidation. One option in this scenario is to try and sell your business before entering into administration. Selling an insolvent business is a delicate process that can very easily end up as illegal activity, if the wrong steps are taken. Here are some factors to consider when attempting to sell up.  Why Sell?  Before you try and sell your insolvent business, it’s important to understand what you will gain from doing so. From a financial perspective, selling can save you the costs associated with entering voluntary administration and/or liquidation. You will also have control over the sale of assets, which can ensure you get the most value as possible. Typically, a sale which occurs prior to administration/liquidation will attract a greater amount. In terms of non-monetary positives, the sale of your business can help maintain your image. Your business can also continue to trade under new management, which keeps it alive instead of disbanding. This may also provide the opportunity for your employees to stay on.  Selling to a Related Party  When looking to sell your insolvent business, it is acceptable to have a related party purchase it. The idea behind this is that a related party will provide a higher price for the business in comparison to an unknown entity. However, there are a number of legal provisions that must you must satisfy in order to sell to a related party. The following requirements stem from sections within the Corporations Act. Related Party Definition A related party, for the purpose of purchasing an insolvent business, includes: The directors of the company Director’s spouses Relatives of directors and spouses  An entity controlled by a related party (e.g. any of the parties above) Arm’s Length Terms In order to conduct a sale with a related party, the transaction must include arm’s length terms. Arm’s length refers to a transaction were neither party bears a special duty or obligation. They should act under no influence and for their own interests. In order to determine whether a related party transaction is at arm’s length, the following factors will be considered: Are the terms similar to an unrelated party transaction with comparable circumstances Is there another legitimate alternative available instead of a related transaction Nature of the negotiations Implications of this transaction both now and long term In addition, all related party transactions should be for fair value and in the best interests of the business. Staying within range of market price and having the process independently reviewed is also recommended.  Illegal Activity With so many rules and regulations surrounding the sale of a business, it can be very easy to fall foul of the law. Illegal phoenix activity is a common offence amongst those selling insolvent businesses. This is when a new company is created in order to continue the business of an insolvent company. The insolvent company is then intentionally folded to avoid paying outstanding debts.  If you engage in illegal phoenix activity as a director, you will be in breach of your company duties. The duties require you to act in good faith and make proper use of your position. Punishment can range from fines to imprisonment.  Conclusion There can be a number of benefits to selling off your insolvent business. However, it is important to be aware of the complex legal web which guides the process. The advice of a company lawyer will be helpful in breaking down these legal factors and verifying your sale.     About LawPath LawPath is Australia’s leading provider of online legal services for businesses and individuals, providing technology powered legal solutions at a fraction of the time, cost and complexity of the traditional system.

Branding is, where advertising stops, and marketing doesn’t go. Back in the day, cattle were branded to help protect breeders and buyers from rustlers. Today’s iconic brands are often forged by unscrupulous knock-offs to mislead the gullible consumer. But, increasingly, the very word ‘brand’ has become the wild west of marketing and is used by marketing agencies and consultants to mislead businesses about the services and expertise being offered. Today’s caveat is ‘Beware of ‘hustlers!’ Branding fills the ‘gap’ between advertising and marketing. A global Google search on ‘branding agencies’ lists 80,400,000 entries . In reality, the number of true experts in branding lies in the rounding – probably less than one thousand. But what does a branding agency do? The answer is – a lot, and not much. There are a lot of web-site designers and SEO experts claiming to be brand experts. There are also a lot of graphic designers, package design experts, media consultants, personal image consultants and copywriters calling themselves ‘branders’ or ‘branding experts'. Most advertising agencies now include branding in their name or their own marketing materials, but many do not truly understand what branding really is. So, what is branding? It’s not a clever name or a slick logo. It’s not a tag line to improve your search engine ranking. And it’s not a short social media blitz or an expensive advertising campaign to provide top-of-mind name recognition for a few weeks. Are these things important? Perhaps! But they are not branding. To understand branding, you have to understand why people purchase your product or service when there are so many alternatives out there. Of course, they have to be aware that you exist, that’s what advertising and public relations is about. They will want to explore the details of your offering, and today that requires an accessible and informative website. They may seek the opinions of others about you, so social media may play a role, as ‘social proof’. But ultimately, people buy, and more importantly re-buy, from organisations (from brands essentially], with whom they have an emotional connection. Advertisers will tell you that cute kids or cuddly cats trigger those sorts of response. Colour consultants can match your packaging to the mood you want to convey. SEO experts can tell you the words that buyers are searching for, but not what underlying, often unconscious, driver is prompting their search, or triggering their procurement decision. The actual definition of “Branding” according to the Cambridge Dictionary2 is the ‘act of giving a company a particular design or symbol in order to advertise its products and services’. That particular design or symbol it refers too must represents the emotional relationship that your business has with your target audience. In other words, a brand then, is what the consumer thinks of, and experiences, when they buy from you. The image that your customer understand about you and your business is called your “brand”. A brand, your brand is more important than what your business makes or offers and is more important than a cool name or an awesome logo. We talk about the importance of branding, but most businesses are often confused on why branding is so important. The importance of branding Branding is important because people often make a judgment in their buying process (about your brand) based on initial impression and the experience the customer receives from you. A good brand will create a personality like a living person, and will tell a story about the service or product they are buying. In many cases it will give your business a voice. Understanding this can also make a difference in your marketing activities. A brand’s visual identity is what your customer sees and what they you identify with. And a brand’s voice is what your customers hear or read about, or what your brand says to them. How well-known your brand is recognised depends on how much brand awareness your business has, how much and often your brand is seen. This relates directly to how much, and what type of marketing or advertising you do to build your brand awareness. Bringing it all together While all the other considerations are important, a true branding expert will help you develop the ‘brand’ which re-affirms the buyer’s self-image, not just for the initial purchase, and not just for themselves. An effective brand is promoted by the buyer. They are proud of their decision and are not afraid to advocate for you. And your branding makes it easy for them to do so! Even if you are not a Gucci or a Nike, or one of the top 10 global Fashion brands.3 Branding is an umbrella activity which expands on and protects your investment in graphic design, packaging, product design, web development, social media, advertising, and public relations, events, and all your other potential marketing activities. Branding is where advertising stops and marketing doesn’t go. Genuine branding costs a little more but delivers both short and long-term ROI. Old tricks – New Safeguards Rustlers tried many things to re-brand cattle. The honest buyer looked for pedigree and proof of origin. As with today’s knock-offs, it takes only a little bit of investigation to determine the fakes from the genuine article. But many people still get fooled. As you are making a significant investment in your business, it’s worth your while to do ‘due diligence’ on your branding advisor. It takes a little bit of your time but can save you a lot of money! Here’s how. Look into the breadth and the depth of the ‘portfolio’ – and beyond. Is it limited to one or two areas of expertise? Check their qualifications and the references. Is there substance behind the inclusive use of every one of today’s ‘must have’ buzz-words? Look for results! Only if they’ve delivered them for others can they deliver them for you. For more information visit www.brandforbrands.com

PR is a powerful marketing tool that can introduce your brand to new audiences. However, to achieve the best results, it’s important to understand how it fits into your overall marketing strategy. PR – or Public Relations – is the art of spreading awareness about your brand, product or service through positive media coverage. This is usually achieved through distributing media releases and pitching your story to journalists and producers. Media releases communicate your brand message and offer your expert commentary to media professionals who may choose to use your industry perspective in relevant interviews, articles and radio and television segments. PR is not advertising… However, it’s important to understand that PR is not the same as advertising. “Media outlets charge brands to advertise their products or services in their publications or on their radio and television networks,” says Jules Brooke, founder and director of Handle Your Own PR. “Media outlets generally don’t charge for PR opportunities. Good PR is considered to have mutual benefit for the media outlet and the brand being featured, and is delivered in an independent editorial environment.” That means rather than paying for a TV advertisement to be broadcast during a designated ad break, for example, PR would occur during a program – such as via an interview with the show’s hosts or as an invited guest to talk about or demonstrate your product or service on the show. …But it is an important marketing tool While PR shouldn’t replace your other marketing efforts, it should be an important part of your marketing strategy, says Brooke. “PR is also a little different to other marketing channels you might use such as blog articles, social media posts and the newsletters you use to communicate with your customers or leads. “Media coverage you achieve through PR should complement your other marketing efforts as another lead generation tool that will get your message out to a larger audience outside of your immediate database or social media following.”PR helps build brands… While PR is a great way to introduce your brand to new audiences, its benefits are much more far reaching. Audiences understand when they are seeing an ad. They know it has been paid for and that the ad content has been carefully created by the brand in question in very controlled conditions. The same is true of marketing content – most customers understand that it has been created by the brand in order to present its products or services in the best possible light. “PR, however, comes with the implicit endorsement of the media outlet that is featuring your brand,” says Brooke. “That means there is much more trust and credibility around your brand because the content is being driven by an independent media outlet, not by the brand itself.” …But PR doesn’t have to blow your budget Many large companies employ their own in-house PR teams, and PR agencies charge thousands of dollars to provide their services to brands with money to spend. However, a new generation of companies like Handle Your Own PR are taking a do-it-yourself approach to making PR affordable for smaller companies, entrepreneurs and startups. “We offer an easy six-step process that helps you build your media contact list, write your media release with an easy-to-follow template, distribute it via our online platform, and manage the all-important follow up,” says Brooke. “Our aim is to give smaller businesses access to affordable PR that was once only available to big companies with large budgets. Smaller brands often have a much more interesting story to tell, and the media wants to hear it.” Handle Your Own PR is just one of a few great tools you can use to get your story out to the media. Other options include: Sourcebottle - you can respond to media requests for interviews or stories Story Match - a great new app that is a bit like 'Tinder for journalists and stories' - you explain your story idea and if a journalist swipes right, then you chat directly Headline Analyser - helps you write compelling headlines Otter - changes your voice to text - a great way to get started if you aren't confident about writingthere is no time like the present to kick start your PR campaign. To learn how - and get started straight away, or get PR coaching, visit www.handleyourownpr.com.au