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e-news | April 23rd, 2009 |
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Business NewsCall for payroll tax to be cutThe Australian Chamber of Commerce and Industry (ACCI) is pushing for a reduction in payroll tax and wants the Federal government to put payroll tax on the agenda of the Council of Australian Governments (COAG) when the heads of government next meet on 30 April. The CEO of ACCI, Peter Anderson, said that "There is no more important issue for government leaders to tackle than joblessness, and preventing it. The causes of unemployment, such as cost pressures and taxes on businesses that lead to retrenchments, have to be addressed; not just the consequences of unemployment." He said "State and Territory Governments are taxing employers every time wages are paid to employees. This payroll tax penalises employment. Reducing the tax on jobs would save jobs during this recession. COAG must do the right thing, and reduce payroll tax. It is unconscionable for governments to tax jobs when joblessness is rising by 50,000 a month." The latest figure show that unemployment in March jumped 0.5% to 5.7%. Full time jobs continue to be lost from the economy and in March net employment also fell, with 52,900 more people unemployed than in February. For further information see www.acci.asn.au. Awards for Excellence for outstanding employersThe Minister for Workplace Relations, Julia Gillard, has urged employers to nominate for the 2009 Minister’s Awards for Excellence for the Employers of Australian Apprenticeships award category. The awards recognise outstanding achievements and best practice in the training of apprentices and trainees in 22 regions across Australia. There are three categories for the Minister’s Awards for Excellence:
Each regional winner receives $5,000 prize money and a certificate. A trophy will be presented by the Minister at a presentation ceremony and dinner to be held at Parliament House, Canberra on Tuesday 18 August 2009. Applications for the Employer award category are now open and will close on Monday 11 May 2009. Application forms and further information are available at www.australianapprenticeships.gov.au/2009_Ministers_Awards_employers.asp Banks urged to support small business lendingThe Federal Minister for Small Business, Dr Craig Emerson, has told a meeting of banks that they need to support small business during the economic slowdown. “I told the banks that they have a vital part to play in keeping small business trading,” Dr Emerson said. He again urged the banks to pass on to small business to the maximum extent possible any reductions in funding costs, including recent reductions in the Reserve Bank's cash rate."The purpose of the Reserve Bank cutting interest rates is to stimulate the economy and it is essential that this stimulus flows on to small business," he said. The Minister’s most recent meeting with the banks follows on from the Small Business Roundtable in Melbourne on 6 March 2009 and a meeting of the banks with small business representative organisations on 8 April 2009. At the 6 March Roundtable, the banks offered to meet with the industry associations in attendance to identify and seek to resolve or ameliorate any industry-specific issues in securing bank finance. Dr Emerson pointed to the availability of a small business banking complaints clearing house for businesses that believe they have been unreasonably denied credit. To date, 34 complaints have been referred by the clearing house through the ABA to individual banks. Dr Emerson has contacted more than 100 industry associations, encouraging them to advise their members of the availability of the clearing house facility. The Australian Bankers Association can be contacted at www.bankers.asn.au. There is a also a website run by the ABA and the Small Business Forum www.smallbusinessbanking.com.au My Business: Keeping Your Business AfloatIn the April issue of My Business magazine, turnaround specialist Michael Fingland offers My Business readers his expert advice on the early warning signs that show a business is under performing and the major remedies that can turn that business around. Timing is critical – early detection of a problem, followed by a swift cure has saved many a business from receivership. According to Fingland the things to look out for include: working capital growing faster than revenue; difficulty obtaining finance; the loss of a key customer; increased staff turnover; and management ‘buying’ sales at the expense of margin. He also identifies a number of internal causes of under performance, including too great a focus on growing revenues, without considering the impact on margins and profit, and the poor management of working capital. Potential remedies include putting a robust 13-week rolling cash flow in place and identifying slow moving or obsolete stock. Fingland also suggests developing strategies to win new customers and deal with your major stakeholders. A detailed strategic business plan will also demonstrate to your financiers that you are working towards a solution. The number one issue for many businesses in the current climate will be working capital, or the amount of cash that’s tied up in accounts receivable, inventory and accounts payable. Any improvement in working capital will be beneficial, whether the funds are used to pay down debt, fund capital expenditure or further invest in research and development. Optimising your working capital involves working with the key people in your business to uncover where improvements are possible. Improvements of as little as 10 per cent can generate significant cash flow. Survey results: Retailers reluctant to shed staffNew research released by the Australian Retailers Index has revealed that two thirds of retailers are holding onto staff and understood the important role employment levels would play in economic recovery. Australian Retailers Association (ARA) Executive Director Richard Evans said this result was despite SME retailers reporting the lowest growth in employment over the past quarter with 11 percent of SME retailers reporting a decrease in staff levels and 23 percent reporting an increase (resulting in a negative 12 percent retail employment growth index). "The latest Australian Retailers Index showed retailers suffering with falls in sales performance at negative 18 percent, were doing the right thing by adjusting their business paradigm, reducing other expenses and trying to stimulate consumer spend before letting staff go.” "Although a decrease in employment levels was being considered by 14 percent of SME retailers in the past quarter, over 35 percent were reducing other costs as a result of current economic conditions. Almost 20 percent were adding new products and 18 percent were advertising more to try and stimulate consumer spend. "We're urging employers right through the supply channels to hold onto their staff who have the key to economic recovery in their pockets. If unemployment levels remain under six percent , the retail sector can expect to see improved growth by the September quarter. Valuable business insights at the National Small Business Summit
The 2009 Virgin Blue National Small Business Summit, convened by the Council of Small Business of Australia (COSBOA) and organised by My Business magazine, will provide business owners with new and refreshing insights as well as business advice and counselling about the development and growth of their businesses. More than 300 people will attend the one-day Summit, to be held at Melbourne’s Sebel Albert Park Hotel on Wednesday June 10. The Prime Minister Kevin Rudd will address the Gala Dinner to be held on the evening before the one-day Summit which has become the premier event on the small business calendar. The Summit will be an outstanding opportunity to learn from top-ranked experts in:
As a new and valuable dimension to the Summit, experts in marketing, tax, ecommerce, IT, industrial relations, accounting, finance and other significant business areas will be on hand to provide one-on-one counselling at no cost to delegates attending the conference. The 2009 Summit will be addressed by Malcolm Turnbull MP, Leader of the Opposition, the Federal Small Business Minister, Craig Emerson, the Tax Commissioner, Michael D'Ascenzo, as well as leading business identities and commentators from technology, e-commerce, retailing, marketing and business development. The 2009 Summit is being supported by Virgin Blue, Optus, Hewlett Packard, EnergyAustralia, Citibank Australia and Check Point Software Technologies. The Summit is convened by the Council of Small Business of Australia (COSBOA). COSBOA's member organisations represent more than 100 000 small businesses across Australia in a wide variety of industry sectors. Visit the COSBOA website for more information www.cosboa.org.au. To register for the Summit go to www.mybusiness.com.au/summit or tel 02 8923 8003 or email events@mybusiness.com.au. New guide to venture capital publishedThe 2009 edition of the Australian Private Equity & Venture Capital Guide has now been released. Now in its 16th year, the Guide is the only regularly updated source of information about the rapidly changing venture capital and private equity field. The completely revised sixteenth edition lists contact details – including names of key individuals – for more than 200 sources of equity capital. These range from angel investor networks to private equity and venture capital funds. The Guide also includes a detailed introduction outlining how to seek equity capital and how the get the best out of it. It is published annually by Private Equity media which produces the monthly Private Equity and Venture Capital Journal. The Guide’s Editor, Adrian Herbert, said that Guide’s “Profiles of each source will assist business owners to determine exactly who to approach for investment in their business. This is extremely important in this highly specialised sector. Loan funding for small businesses is now very difficult to obtain and owners with expansion plans need to explore the possibilities offered by equity capital investment.” He said “Equity capital, in the form of private equity or venture capital, is available to a wide range of small businesses with high growth potential. Obtaining this funding, however, requires careful preparation and approaching the right people.” The Guide is available in print, PDF, or online formats. To order, please visit: www.privateequitymedia.com.au or telephone 03 8534 5003 or email Naomi.braham@halledit.com.au. Australian companies remain upbeat about exportingAustralia’s export credit agency, the Export Finance and Insurance Corporation (EFIC) says that the latest annual Global Readiness Index indicates that Australian companies remain optimistic about their offshore operations despite the global downturn. The GRi survey, conducted in February, surveyed 726 Australian companies about key aspects of their experience of going global, including the drivers, destinations and obstacles, and sources and availability of funds. “Despite the backdrop of a worldwide credit crunch and a severe downturn in world trade and production, offshore expansion remains a key strategic imperative for Australian businesses,” said Managing Director & CEO of EFIC, Angus Armour. Over 80% of companies with offshore operations plan to expand them and over 40% of respondents currently without offshore operations plan to expand offshore. However, access to finance is the major obstacle to offshore expansion – and has become a greater barrier due to the global financial crisis. Fifty-eight per cent of respondents stated ‘access to finance’ as a barrier (up from 29% in the February 2008 GRi survey) and 34% said it was the key obstacle. ‘Economic conditions abroad’ jumped from fourth-ranked barrier in 2008 to second-ranked this year, with 48% saying it was a barrier. Businesses continuing to hoard moneyThe tougher economic conditions are causing businesses to hoard their cash with the average time of payment for bills blowing out to 57.6 days. The latest data from Dun & Bradstreet indicates that the average payment time has increased from 55.9 days at the end of 2008 to 57.6 days at the end of March. Payment terms have increased steadily since September 2007, when the average was 52.6 days. Small businesses with between six-to-19 employees are the quickest payers (53.9 days) while companies with 500 or more employees are taking an average of 62.1 days to pay - 2.8 days more than in the December quarter of 2008. Dun & Bradstreet’s CEO, Christine Christian, said that “Our findings continue to show that Australian companies are holding on to their cash for longer in an attempt to manage their cash flow and improve liquidity. However the flow-on effect of this trend is a reduced focus on business development and investment, and consequently a further decline in economic growth. If Australia is to avoid the extent of pain that other nations are experiencing we need to ensure that payment terms do not continue along the same trajectory." My Business Online: Standing Out from the CrowdIn the April issue of My Business magazine, web expert, Sophie Wegat, advises on ways of ensuring that your online store stands out in an increasingly crowded market place. Ensuring you have a well designed web site that is easy for your prospects to use might sound obvious, but the number of poorly built sites out there suggests otherwise. A professional-looking site instils confidence in potential customers and attests to the quality of your products. Equally important is the usability of your site. One of the best ways of testing this is to watch friends and family complete basic tasks you have set them, such as finding out how much an item costs or making multiple purchases. If you get the design and usability right you will greatly increase your chances of converting hits into sales. Other tips include providing clear shipping and returns information and displaying testimonials. The testimonials should include ones on the site’s ease of use, the quality of the product, the speed of delivery and the speedy resolution of some issue that arose. Wegat also suggests adding extras to your offering, such as free shipping for orders over a certain amount, trial packs or loyalty schemes, is a great way of getting people to buy more and encouraging repeat business. One of the most effective ways of marketing your business is also to include a ‘tell a friend’ feature on your site whereby the referrer receives a gift for every new customer they generate. Microsoft survey reveals impact of the recessionMore than a third (38 percent) of Australian small business (SMB) owners and managers report their business is currently struggling or worse, when compared to this time last year. Of those, nine in 10 say the health of their business is having a negative impact on their personal lives, according to a small business ‘stress survey’ commissioned by Microsoft Australia1. However, despite this, the survey revealed that nearly 60 percent of small businesses described themselves as healthy, with one in five expecting to continue investing in their people and replacing staff as necessary and only 6% are considering laying off employees. “It appears that many small businesses have clearly been hit by the reality of the global economic downturn as many of Australia’s small businesses are feeling the pinch and experiencing increased stress in this climate of uncertainty,” said Inese Kingsmill, director of small and mid-market business, Microsoft Australia. “However, the survey also found that a larger percentage of businesses are still healthy, which points to the resilience of the sector. While it’s challenging to look beyond the current economic circumstances, small businesses have an opportunity to look through the uncertainty and start preparing their businesses for the when the economy turns upwards.” The survey also found that more than half (56 percent) of Australian SMBs say that business pressures are more stressful this year than last year, with more than a third (35 percent) reporting that they are working longer hours now when compared to the time they put in prior to the global economic downturn. For almost half, (42 percent), the primary focus at the moment is simply retaining and growing their customer base. MYOB Chief: Time to get in shape and stay in shapeWith the end of the financial year not too far off, the CEO of MYOB, Tim Reed, says that there’s still a small window of time for business owners and managers to get in shape for the end of financial year. Before 30 June you should:
Mr Reed said that “Following this you’ll be able to complete your BAS and payroll reconciliation at the end of June, and then run your end of financial year reports. Preparing all your reports prior to visiting your accountant will save you time and money. “ “Don’t forget to backup your data. You will also need to keep copies of your accounting records for at least five years (an ATO requirement). You should also take some time now to prepare for the 09/10 financial year.” Mr Reed said businesses ought to aim to make the next end of financial year period less stressful. “Consider what improvements you could make to your work practices to stay in shape. For example, stay on top of your bookkeeping requirements, keep up-to-date with inventory, cashflow and debtors and follow task lists.” Sick days beginning to waneThe tougher economic conditions has taken its toll of the “sickie” with a decline in the number of people who are taking days off work for illness. The average worker takes 8.62 days off per year in addition to their entitled annual leave, according to a report from Direct Health Solutions (DHS), a company which consults clients on managing absenteeism. However the company said that there had been a 15 per cent fall in absentee rates in the past six months compared with a year ago. CEO of Direct Health, Paul Dundon, said that employees worried about their jobs are thinking twice about calling in sick and are skipping work only when they are genuinely ill. He said that Australian figure of 8..62 days off work due to illness was above the average of about five days in the United States but roughly in line with the United Kingdom. The estimated cost of absence was $354 per person per day, which equated to $26.6 billion in lost productivity for the Australian economy each year, the report said. Self managed super funds are on the riseDespite the economic downturn, the latest figures show that there has been a recent increase of around 20 per cent in the number of Self Managed Super Funds (SMSF) being formed. Carolyn Baker, from chartered accountants CJ Baker & Associates, said that SMSFs are now officially the largest sector in the trillion dollar market, with 30.4 percent of all managed superannuation and assets totaling $326 billion. However she said that compliance continued to be a problem with the SMSF sector “The ATO have instigated a number of measures to ensure trustees are aware of their responsibilities and potential compliance issues are identified early,” Ms Baker said. “One of the biggest issues is the quality and independence of audits. In an audit of auditors the ATO has found in 25 percent of cases the same firm is still doing both the accounts and audit of SMSFs. With extra funding the ATO has had to employ over 200 compliance staff, with audits expected to reach 11,000 or more, up from the 3,600 conducted in the 2006/07 financial year. Australia-India Business Summit to be held on May 20
The annual Australia India Business Summit is the major forum to review trends and opportunities in bilateral trade and investment between the two countries. Organised by the Australia India Business Council (AIBC), the 2009 conference in Sydney on May 20 will hear presentations from senior politicians, and business people from both countries. The one day event to be held at the Sofitel Sydney Wentworth and will conclude with a Gala Dinner. Despite the gloomy global economic environment, trade and investment between Australia and India continues to grow at a very healthy rate. India is Australia’s sixth largest and most fast growing merchandise export market with an annual growth rate of 28 percent during the last five years. The conference agenda will include industry chapter streams; sessions on doing business in India and case studies of successful trade and investment. For details of the conference, please go to www.halledit.com.au/aibc09 For more information about attending the conference email Joanne King jo.king@aibc.org.au or telephone 03 8534 5040. Win some free Cisco business solutionsThe Cisco Changing the Game Competition helps you address business communications issues by offering four free Cisco solutions valued at $50,000 to local, small companies. To remain successful, companies need to stay ahead of the competition, control costs and expand at a healthy, steady pace. Cisco has a set of small business solutions that are designed to help businesses grow and stay connected with simple technology that helps you uncover a world of greater efficiency and profitability. Small businesses in Australia and internationally are now using Cisco technology to facilitate a range of modern work practices that help save you time and money. Work from home or from anywhere, hold meetings online from your desktop using Web conferencing software, lower your travel costs by meeting online more, and securely connect to your customers, partners and staff with greater ease than ever. If you’re an Australian based small business and have anywhere between one and 250 employees, you can get involved now. There are four free Cisco solutions on offer for your business valued at $50,000(rrp) via the Cisco Changing the Game Competition. To find out more, and enter the Cisco Changing the Game Competition, just click http://www.cisco.com/web/ANZ/netsol/smb/gamechanger/index.html Sourcing capital for growth in the credit crunchGraham Reid, Head of Integrated Capital Solutions (ICS), NAB will present on an integrated approach to the provision of capital under the credit environment and options for mid-sized businesses to source capital for growth at the forthcoming Mergers & Acquisitions 2009 to be held in Sydney on June 3-4. Mr Reid will share lessons learnt from NAB ICS's recent participation in two mid-sized deals and how the transactions were completed under a higher cost of capital environment with different capital covenants. Complementing this session will be an assessment of why M&A remains relevant for privately-owned businesses to be presented by Natasha Mandie from Credit Suisse and the resilience of the M&A mid-market during the Global Financial Crisis to be presented by James Todd, Managing Director Wolseley Private Equity. The fifth annual Mergers & Acquisitions conference will be held in Sydney 3-4 June, 2009. For further information on this unique capital markets forum, visit www.halledit.com.au/MA09. Try Teleconferencing for FreeDuring a downturn, eliminating or reducing travel is one way that businesses can make significant savings. Teleconferencing is a great way for businesses to stay in touch without the high costs, time and environmental impact associated with travel. You not only reduce costs but can improve your business’s productivity. It's really easy to use, there is no special hardware or expensive set up fees for you and your participants – and you only pay for the minutes you use. Budget Conferencing was launched in Australia in February 2009 (a subsidiary of Budget Conferencing North America) and is a specialist audio and web conferencing company. It offers Australian small-medium businesses the opportunity to take advantage of conferencing technologies that were previously out of reach for many due to the associated costs. Whether you need to get a quick update from suppliers, present a product to a widespread audience, or run a training session, Budget Conferencing can provide the solution that best meets your needs. Conferencing starts at 8c per minute - Australia’s lowest teleconferencing rate. If you are interested in finding out how your business can benefit from teleconferencing, you can try it free when you sign up on our website. There are no contracts, monthly fees or set-up costs. Sign up only takes a couple of minutes and you get instant access. To get your free trial, visit: www.budgetconferencing.com.au. | |||
