Yesterday I was chatting to the passenger sitting next to me on a flight to Sydney. I pricked up my ears when he told me he had employed 150 people in Australia over the last 12 months.

He was the operations manager for an international freight company and he told me how much inbound freight has increased since Gerry Harvey and his retail colleagues alerted Australians to the benefits of buying overseas.

The problem facing retailers is that they seem to think imposing GST on imported goods will solve their difficulties, which is rather like burying your head in the sand and hoping things will change.

Yesterday I waited for 12 minutes (with four other customers) at a cash register at David Jones Bondi Junction. Eventually when someone did show up to take my money I asked if they were “very busy”. The response was “no we don’t have enough staff to serve everybody”.

Hmm! Maybe that has something to do with the retailers’ dilemma.

Expect those changes to continue in 2012, making it easier for people to access your website and to discover your business.

Prospects access the web through numerous means. 20% of web access is now via smart phones and PDAs, and it’s growing, so expect to see more robust tools to come to market in 2012.

The 2011 Computer Electronics Show (CES), held in Las Vegas, introduced 70 new computer tablets modelled after the pioneering iPad produced by Apple. The iPad is so popular that, today we call desktops “grandfather boxes” – only used by those who are five years behind the times.

This will require some outlay to keep pace with the competition.

Your current web site is accessible through smart phones, PDAs, TV sets, game consoles and other tech products but if the user is required to scroll right, left, up and down to find the one piece of information s/he is looking for you are likely to lose them.

This has lead to the development of dot.mobi sites – sites designed for easy accessibility on smaller smart phone screens. If you don’t have a .mobi site, 2012 is the time to spend the money to upgrade your current site and add a mobi site to your marketing arsenal.

It’s not just the wave of the future, it’s here now so you may be running double-time in 2012 just to catch up.

The last few weeks of the year are the ideal time to look back over the previous business year to assess what worked, and to look forward to the challenges and opportunities that come with the New Year.

Analyse

You have a year’s worth of data so prepare a short statement of achievements, lessons learned and how you can leverage what you have learned to fuel expansion in 2012

It’s natural to protect “your” initiatives, ideas and positions BUT, as you analyse performance metrics for 2011, be honest with yourself. It’s hard but it’s essential to admit setbacks and learn from them. Numbers don’t lie.

Organise a holiday celebration.

The end-of-year party is a terrific morale booster, especially when you use the occasion to praise loudly. (Leave the quiet criticism for January. It’s a party.)

If you are a manager, this is an opportunity to praise the performance of specific individuals and to hand out special “bonuses” like gift cards and other thank-you incentives.

Something I recommend: invite clients to the holiday celebration. Again, this builds good will and creates a “personal” bond within a business context. Get to know your clients on a face-to-face level over holiday cheer. And, if you want to maximise the impact, be sure to invite partners.

It’s a matter of perception in a high-stakes game

Perception is and can be very dangerous if it is based on make-belief politics. Take the US government for example: for months they have hinted that the economy is on the rise once again… that everything is all right. And then… boom, there goes another stock market crash.

Fact is that things are not all right.

The US is still spending more money than it earns. The national debt is getting bigger while people’s lives are ruined everywhere. And it doesn’t stop there. The perception game continues across the pond with half of Europe on a dangerous downward spiral.

People everywhere are fed up and the signs are showing. Take the recent UK looting escapades that resulted in people losing their life’s work and their lives.

People are hurting and the governments close both eyes to play damage control. This also applies to Australia, despite the in-cahoots practices of our politicians.

Perception in business

While the wrong perception can bring the stock market to a slow crawl and make it crash and burn, it can do wonders for your business if used right.

Perception is everything in marketing. When potential clients and customers perceive you as a successful business, as a reliable company they are more inclined to show with you. This brings us back to brand marketing and how important it is to build your brand to build your business.

Where will it lead?

If we err on the side of caution then NAB’s chief Clyne comments hit closer to home than we’d like to admit. According to him we might be in for a tough ride as more and more homeowners fail to keep up with mortgage payments. Rising unemployment is causing havoc for many families and if it keeps rising we might be in for a rude awakening.

What do you think is really going on?

So what has our Prime Minister got to do with broken promises and lost credibility?

The answer of course is a lot.

Gillard has demonstrated to us the one way we should never do business: by breaking a promise that was made to help her career. Before being elected into office (on terms that are outside the scope of this article) Julia Gillard clearly promised not to implement a carbon tax should she become Prime Minister. Her words were: “I rule out a carbon tax.”

Instant Credibility Destruction

Fact is Ms Gillard once made a promise to Australians. A promise she broke for the sake of a political agenda most of us find hard to comprehend. It has cost her credibility in the eye of the public – except perhaps with the Green Party – and most likely the next election victory. The Greens are the only winners in this debate. Not the environment, not the taxpayers and certainly not the public.

As the Saga about the carbon tax lives on we have to take a serious look at how a broken promise can cost us our credibility in the industry.

Truth is Better than Fiction

If you’re in business you can learn an important lesson from Gillard’s broken promise.  For starters, it is to be said that people change their opinions, their stance and their viewpoint on things. It’s a natural evolution of humans. And there is nothing wrong with that.

What’s not natural though is to make a promise and then to renege on it.

In fact, doing so can cost you your clients. It can cost you your credibility with your staff, your suppliers and your business partners.

Aim for the truth every time, even if it hurts, because you will sleep better at night. If you can’t deliver on your promise don’t make it. Only promise what you can control 100%. It’s the best way to avoid embarrassing situations.

A broken promise leaves a trail of pain and suffering…

Ask yourself: can I really hold true on a promise I’m about to make? It might well save your soul – not to mention your business.

The mighty News Corp came crashing down faster than lightning speed after the scandal was made public. It resulted in shameful closure of the once popular newspaper News of the World and ruined the credibility of news publications across the UK, perhaps further still.

Journos are at best a mildly trusted bunch of professionals. They are not exactly the most favoured of all people in the eyes of the masses. Sadly, it appears that a bunch of scheming and corrupt journalists used unsavoury methods to get a story.

Senior executives at News Corp apparently never saw it coming, despite previous police and internal inquiries…

How to Avoid a Murdoch-ian Disaster in Your Business

You don’t have to have an empire the size of News Corp. A disaster like the phone hacking scandal can strike anyone at any time. Unless you come prepared.

If you employ people in your business; whether that is in-house or by means of outsourcing certain business tasks, you must practice absolute transparency to avoid potential lawsuits.

Here are ways to do this in style.

• Create a mission statement and make it the foundation of doing business
• Have everyone sing to the same tune, try and simplify your business to make it understandable by all staff; what is your primary objective; how will clients be handled; who is responsible for XYZ; how will you handle complaints, etc.
• Prepare a MO (Modus Operandi) is by far the best way to detail your business across all departments: from marketing to sales to client management.

Any rule is useless unless it is somehow controlled and enforced. No one expects you to stand by and hassle your staff 24/7. In fact you want to give them credit for making independent decisions and acting from good judgement.

Having said this, you also want to have measures in place that review the processes on a regular basis.

Transparency Improves Performance

It has been observed by savvy businesses that increased transparency fosters improved performance. When your team knows what strings to pull and how they are more inclined to excel in their day-to-day operations.

The Most Important Part of Being Transparent

I can’t stress enough how important it is to actually have systems in place that monitor your team’s performance and actions. This is where junior and senior management can play their best game.

The secret to playing the game at the top level lies in keeping control of who pulls the strings in your company. Trusting your staff is great, but ultimately keeping control is protecting you, the owner against nuclear disasters like the one News Corps is dealing with right now.

As reported by the website, the disruption of services cost Qantas some $21 million in lost revenue! A massive loss in anyone’s book if you ask me. And while no one would ever expect an ash cloud disruption of the magnitude we just experienced in Australia it is clear that these things do happen – and for that we ought to be covered with the right insurance policy.

Do You Have Sufficient Cover?

How does your business insurance policy stack up against sudden, unexpected disruptions? Do you have ample cover, or have you neglected this side of your business in favour of other, more pressing financial matters?

Don’t Wait Until It’s too Late…

The statistics never lie and the following high percentage of under-insured SMEs in Australia should be enough reasons for you to be concerned.

“The Australian Bureau of Statistics and the Insurance Council of Australia estimate that 67% of small businesses have no business interruption insurance or are underinsured.”
− source CIA Insurance

Thinking that “she” be right” is asking for serious trouble down the road.

GM of Vero Insurance’s SME Products, Rob Walters, tells how approximately “70 per cent of small businesses that are not insured or underinsured and suffer from a financial loss fail within a year.”

Statistics have proven that most SMEs underestimate the serious consequences of a business interruption. Often to the cost of failure.

How to Take Out the Right Cover?

Taking out the right cover is essential to avoid potential misunderstandings when trying to make a claim for something you are not covered for. The best way to do this is by using a qualified insurance broker. They can help you design a comprehensive risk management plan suited to your circumstances and your business.

Brokers have adequate knowledge of policies that are not known or available to the general public. A broker can custom-design a cost-effective policy cover for you and your business.

Don’t delay getting adequate cover for your business, because failing to do so can cost you and your family your livelihood. To learn more about business insurance and the various types available download this SME Insurance Whitepaper for free.

It’s the stuff nightmares are made off; misplaced invoices, unpaid bills, lost transaction statements, etc. – if that sounds familiar, then you might benefit from the tips below.

Short of having a nervous breakdown at the thought of doing your tax return you have options to simplify your tax, and you can start to make sense of your paper clutter today.

1. Make Record Keeping Your # 1 Priority

A lot of business owners tend to complicate record keeping. With the right system and knowledge it’s a lot easier to keep your books organised than you might think. The best time to start is now! I’ve started to use a program called Paperless to scan and store everything but there are plenty of similar systems.

2. Separate Business and Pleasure

The one thing that hikes up your accounting fees is when you use your personal accounts and credit cards for business too. This is a commonly known problem for sole traders and small partnerships rather than larger companies, but it is worth mentioning here because it adds hours of time to bookkeeping, increasing your bill dramatically.

If you are battling with account mis-management right now you ought to separate your accounts. Keep your personal- apart from your business affairs. Thankfully this is relatively easy thanks to dedicated business accounts, online banking and e-statements. You have control over your accounts 24/7. If you set aside time for record keeping and data entry you pick up errors a lot faster.

3. Defer Income Until 1 July

If you’re concerned about getting a hefty tax bill this year you might be able to defer some of your income until July by delaying your invoices. At the same time you can do some last minute shopping for your business to increase your deductible expenses. Think essential equipment, stationary or maintenance. Remember that I’m not giving you legal advice. If you require help with your taxes you should seek professional guidance.

4. Claim What’s Rightfully Yours to Claim

If you’re home-based it’s possible that you can claim some of your home office running costs such as electricity, a portion of your rent or mortgage, office furniture, computer depreciation costs etc. Once again, speak with your accountant to find out what you’re legally entitled to claim.

5. Pay an Expert

The best tip to get your tax affairs in order is to pay an expert to handle the bookkeeping for you. A registered BAS bookkeeper can handle your BAS statements and simple accounting needs for you, whereas an accountant will handle the more complicated returns that require more attention.

Now is as good a time as any to get your books in order. Waiting will only prolong the mental stress and pain on your hip

It may seem a simple concept, and it is, but don’t underestimate the journey that it takes to strike gold. Listening to customers and learning from them can pay big dividends.

As we saw with today’s announcements, Apple is renowned for thinking outside the square and developing products that are not traditional. A big part of their success comes from listening to their customers and responding to market demands.

Initially when Apple launched the iPhone they believed that so-called web applications were the way to go. After the launch, it became evident from the large number of developers writing applications in native iPhone code, that this is what their customers wanted. So Apple changed their mindset and allowed developers to write native apps. In fact, they saw an even bigger opportunity and opened the Apple App Store.

By September 2008, three months after the introduction of the App Store, users had downloaded 100 million native apps. There have since been a number of versions of the iPhone driven by consumer demand, and apps have made it a goldmine for Apple.

Apple has shown that you can make mistakes, but if you learn from them and constantly work at being relevant to your customers there can be a pot of gold at the end of the rainbow.

Are you listening to your customers?

Whatever went down behind closed doors is not a good advert to build trust between the public and the law. Or for that matter, the public and the Government.

People want answers and they want the truth.

But, if we have learned anything from this latest saga, it’s that an ‘open’ decision making policy might not be the best thing for your business. Why? Let’s discuss some of the more obvious (and not so obvious points).

What is Open Decision Making?

The basis of open decision making is simple:

• The first step is to collect input from a large number of people
• Step two is to facilitate agreement between all parties
• The third step is the announcement of the decision

In short, ODM is a group decision.

Many business owners believe this strategy to be counter-productive and to a large extent I have to agree, and you might want to consider a few points before you employ an open decision making policy in your company.

# 1 – Too Many Cooks Can Spoil the Broth

In business sometimes less is more. When you have to wait for a collective decision within a group, time and money can quickly become an issue. Whenever opinions divide – and they always do in a group environment, things take a longer to finalise. If you own a small business this reason alone could make or break your survival.

# 2 – Authority Could be Tarnished

People generally want and need leadership. Even if they think otherwise. Most people will talk around in circles if given the chance. If you employ an open decision making policy in your business it could easily invite trouble. If you do, make sure you establish clear boundaries and rules as to how the policy will be executed.

# 3 – Reconsideration Requests

Once the group makes a decision you should never reconsider, unless important new information becomes available. Despite your best intentions you might be pressured to reconsider because someone didn’t agree. People are funny that way: they sometimes say one thing and do another.

Unless you can impose strict guidelines and stick by them you should ask for opinions when warranted – but ultimately make the decision yourself.

What do you think?