Business News Australia.com.au

National Australia Bank– the first major bank to dump penalty fees to appease angry customers, a move that would flush more than $100 million down the drain annually.

But it appears pre-emptive bet on fee reductions has paid off in spades.

A month after dumping all penalty fees, NAB saw a 40 per cent reduction in customer complaints and a sixfold increase in customer acquisitions.

NAB chief executive Cameron Clyne yesterday admitted his market-leading purge on penalty fees was so successful in driving new business and generating customer goodwill that it almost covered the drop in fee revenue.

The bank announced in July it would be dumping its overdrawn account and dishonour fees in a bid to win new customers and improve the bank’s image.

Rival banks responded to the move almost immediately, but none followed NAB’s lead in scrapping penalty fees altogether, with Westpac, Commonwealth and ANZ preferring only to lower such fees to $9, $10 and $6 respectively.

Excerpt from - NAB rewarded for dumping fees - By Andrew Carswell
Source : - http://www.news.com.au/

Here is an interesting video tutorial regarding Twitter for business. Enjoy!

Twitter For Business - Information - Mark Shaw

Sourced from - http://www.youtube.com/user/yourBusinessChannel#p/u/248/WEnM_2O0akY

Tips for using social media websites

The explosion in popularity of social media websites has created many new ways to advertise your business, but it can be difficult working out how to take advantage. Here are a few tips to get you started.

Understand the different types of social media websites

Here’s a summary of what the different types of social media websites do.

Social bookmarking: A social bookmarking site allows you to add your favourite websites so that friends and other users can see them and comment on them. Delicious and Digg are two examples.

Social networks: These are social media websites that work around building communities. They allow you to create or join groups, make contacts and communicate in a variety of ways with the other people in your network. Some of these sites are specifically targeted at certain groups of people. For example, Linked In is purely focused on business networking.

Social media: YouTube and Flickr, are the two most popular examples. They allow you to create a page or “channel” of videos or images. Other users can “follow” your channel and contributions are often ranked by popularity.

Blogs: A blog (short for web log) in its simplest form is a journal. Blogs traditionally have one small article or “post” per day, which is archived as time moves on. The social aspect of blogging is the comment function, which allows a visitor to write a response to any of the posts in the blog.

Micro blogs: Twitter is the best example of this relatively new medium. Twitter lets you post very short little text messages “tweets”, telling your friends or family what you are doing. For example, “Just had a great coffee..” or “In an interesting conference.” Twitter lets you to follow other people’s tweets, and allows you to manage your tweets from your mobile phone or hand held device.

Forums: These have been around for a long time. They are websites that allow discussion on particular topics. The small business forum at flyingsolo.com.au/forums/ is a great example.

Do some research!

Have a look around at some of the different social media websites. Read what other people are saying and see how they are contributing. You need to have a think about which ones might be suitable for your business. Are the participants likely to become your customers? Might they be potential suppliers or perhaps they could offer you advice?

A great way to promote yourself and your business as an expert in your field is to join a forum that relates to your business. For example, a landscape architect might start participating in a gardening forum by answering questions and helping people with useful advice. This situation puts the landscape architect in direct contact with people who are thinking about improving their gardens.

Don’t forget to set up your forum profile and signature so that people can contact you easily.

Blogs are probably the next port of call. Commenting on blogs is another way to build your online reputation and generate interest in your business. Again, making sure that people can find a link to your site from your comment is very important.

If you have the ability to create videos or audio pod casts, then a site like YouTube or blubrry.com could offer some great promotional opportunities.

Where should I start?

Create a list of social media websites that you are going to participate in. Start with two or three and make sure that you give them some genuine attention. Set aside at least an hour two or three times per week to network in your new world of social media.

You’ll be surprised at the results. Do it for a week and let us know how you go.

Source : - http://www.flyingsolo.com.au/
Author - Tristan Boyd http://www.flyingsolo.com.au/p288748406_Tips-for-using-social-media-websites.html is a website and internet marketing specialist.
Through his business, Boyd Design, he provides cost effective and powerful solutions to SMEs and soloists.

Source : http://www.flyingsolo.com.au/

Oh you’re so excited! The phone’s rung and the potential client wants you to do a BIG project for them. If they accept your proposal, that’s the rent and food for the next six months, plus a holiday, and that new computer.

You spend hours on the phone with your potential client, answering questions and giving advice. You call in your team of solo alliances and suppliers that will be needed, to help prepare a whiz-bang proposal. They happily give their time on the promise of a “big” job.

Finally, you’ve dotted the I’s and crossed the T’s, and maybe prepared charts and graphs. Your team has spent time and money creating some slick computer linked examples of what they can do. You put the proposal in a smart presentation folder, say a blessing, and courier it in with copies for all concerned.

Now comes the eager nail-biting wait for some response.

But nothing!

In spite of your emails and phone calls, no response. Not a word. Finally, either directly or through the grapevine, you do get a response with one of the following reasons for your failure to get the job:

Someone else got the job. Maybe it turns out yours was the third “compulsory” quote called for and the result had already been decided.

The client decided to do the job, or part of the job, in-house after all. More than likely using all your information and expertise.

They are not going ahead at this time and were just looking to see what was possible. Chances are no-one mentioned this was just an exploratory tyre kicking exercise.

Full of impotent rage and disappointment you spit chips and wipe the egg of your face when you confront your disillusioned suppliers.

Has any of this every happened to you? It’s happened to us and so we don’t get caught again, we’ve introduced some guidelines and policies for dealing with potential clients.

Questions to ask:
How many quotes have been called for and have they all been given the same brief? If at all possible find out who are your competitors.
Do you have a budget in mind? This gives you the opportunity to state your rates.
When are you thinking of doing this? If the answer is too vague, time to be wary.
You will need a policy in place before you start the bidding conversation with your potential client. Then you will know when to draw the line around the value of your time and information.

If there is a lot of brain picking going on, decide on and give a clear indication of how much advice preparation work you are able to do as an initial proposal. Then if they want more detailed information, but are not yet willing to commit, you have to start charging.
Find out exactly what the initial brief is and don’t over-deliver unasked for with bells and whistles in the hope of making a great impression.
With small business clients, talk budget and what you charge early in the conversation and before you get into an informationfest. Find out if they can afford your rates and, if not, refer them on to somebody else. This could save you a lot of time dealing with enquiries that are simply not your market yet retain good will.
What are your tips to avoid wasting time on jobs for potential clients that are never going to happen?

AUTHOR
Wendy Buckingham (http://www.flyingsolo.com.au/p179032142_Wendy-Buckingham.html) is a writer, speaker, coach and author of the Ready Set Goal Series. She is also co-owner of Class One Productions, a leading Australian producer of audio/video programs for business education.

It’s not easy to think about ideas as property, but for some businesses it’s vital. Most of us have had an idea for a new product or service only to dismiss, postpone, or neglect it. Sometimes we later find that others had the same idea, but took it to market before we did. By that time, it is too late for us to take advantage of the idea.

Ideas are relatively easy to come by, but inventions are more difficult. It takes knowledge, time, money, and effort to refine an idea into a workable invention, even on paper. Turning an invention into an innovation - a new product accepted by the marketplace - takes a lot of effort and a little luck. There are substantial barriers in the path of those who pursue innovation. Overcoming them requires careful planning and plenty of input from others.

Hundreds of thousands of inventors and innovators file each year for protection under U.S. patent, trademark and copyright laws. However, it can be hard to decide which of the three vehicles is most appropriate for the protection of a particular invention. Although a single product or service may require a patent, a trademark, and a copyright, each category protects a distinct aspect of a creative work or expression.

Patents, copyrights and trademarks, as well as know-how or trade secrets, are often collectively referred to as intellectual property. Many firms have such property without even being aware of it or of the need to take measures to protect it.

Many people’s notions of intellectual property are unrealistic. Some believe, for example, that simply having a patent on a product will enable one to succeed in the marketplace. Consequently, they may spend thousands of dollars to obtain the exclusive rights to market something that no one wants or can afford to buy. Others may decide that intellectual property protection is not worth the trouble.

People who may not be interested in protecting their own rights must still take precautions to avoid infringing on the rights of others. This calls for more than the avoidance of copying. Some copying is unavoidable; but one can easily infringe on the rights of others without deliberately imitating specific features of goods or services.

Source : http://www.lupra.com/
Lupra.com is a non-profit website that contains hundreds of articles about doing business online and many other business-related issues.

Are you looking at buying a small business? Perhaps you are a business owner looking to snap up an additional business or are craving an escape from the rat race. Either way, there are seven sins all potential purchasers must avoid…

1. Love

It’s easy to put on rose tinted glasses and fall in love with a business. Whilst it’s important that you love what you do, when buying a small business it’s vital to separate fantasy from reality and look at the cold hard figures. The tough love comes when you have to place head over heart…and make the decision on whether or not to proceed.

2. Dishonesty

We all go into things with the best of intentions, but can you see yourself in the business in six years or even six months time? It’s hard to stay passionate forever, but if there is any danger of you having a change of heart it’s a sure-fire way to kill your business stone dead. So whatever you do, be honest with yourself.

3. Ignorance

Would you employ someone to fly a plane without training? No! So would you expect someone to be able to run a business with no knowledge of the business’s industry? Believe it or not countless numbers of people buy small businesses without any experience. Ignorance is bliss anywhere but in a small business! If you want to run a book shop go and work in one first, if you want to run a restaurant learn to be a waiter. If you want to fail, walk blindly into a small business – the bliss will fade pretty soon!

4. Greed

If the first thing you look for in a business is the net profit, a world of disappointment awaits you. You must view the business in totality – how it fits with your lifestyle, how well you are suited to it and how it will work for you in the future. Money is a drug that can make you happy, but it will only numb the pain temporarily if you aren’t doing something you enjoy.

5. Narcissism

I once knew a small business owner that bought a chain of cafes because he thought it would make him look like Jamie Oliver and help him to pull chicks. It didn’t work, and after six months neither did his chain of cafes. Everyone thinks it’s cool to run your own business, but if you’re doing it to pamper your ego, you’re doing it for the wrong reasons.

6. Sloth

Finding a good business is hard. Finding a lemon is really easy! Sticking your head in the sand and not performing rigorous due diligence will lead you straight down Lemon Street to the best lemon in town. What will save you from buying a lemon is if you are stringent with your research. Get out and ask questions, do surveys, speak to neighbouring businesses, talk to the council. Get a tight fisted accountant and an anally retentive lawyer (that won’t be hard). You can never do too much research when buying a small business.

7. Trust

“Oh the vendor told me it’s one of the best businesses he’s ever seen”, “They don’t have proper accounts because they make so much money in cash”…beware! The vendor and the agent are not your friends, they are out to sell a business and this should be remembered at all times.

Family and friends, whilst appreciated for their loving support, will only say nice, encouraging things to you; so please don’t buy a business based on what your mum saw on Dragons’ Den.

What lessons or observations about buying a small business have you got to share?

Source - http://www.flyingsolo.com.au/

Author - Craig Reid of -  www.ninjaconsulting.com.au - Sydney, NSW

Australia’s richest woman Gina Rinehart.

Billionaire Gina Rinehart has been named business woman of the year at Telstra’s annual awards held in Melbourne last night.

Rinehart, who became Austrailia’s first female billionaire in 2006 and is now valued at almost $3.5 billion, is the owner of Hancock Prospecting, the mining and exploration company left to her by her late father Lang Hancock.

But building Hancock Prospecting into a multi-billion operation was not as simple as stepping into her father’s shoes. Following Lang’s death in 1992, the company was struggling with high debts and crippling cashflow problems. Careful management - and the commodities boom - allowed Rinehart to develop Hancock Prospecting’s Hope Downs mine in a joint venture with Rio Tinto.

The company has several other projects under development, including the Roy Hill iron ore mine in Western Australia and a coal mine in Queensland.

Rinehard said she is excited by the prospect of entering a new era in in international relations.

“There are exciting times ahead for Australia, especially for companies at the forefront of developments with Asia. Both China’s and India’s economies are forecast to double in the next decade, and we are well positioned as a nation to forge valuable and fruitful relationships.”

The award for the young business woman of the year went to Emma Cassar, a former forensic psychologist who is now general manager of the women’s prison system in Victoria.

The business innovation award went to Dr Catherine Foley, chief research scientist at CSIRO, while Rhonda Brighton-Hall, senior vice president of human resources and communication at eyewear company Luxottica won the private and sector award.

Source - James Thomson (http://www.smartcompany.com.au/)

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6 ways to succeed during a recession (and become a confident and knowledgeable investor)

Bill Zheng reveals smart strategies investors can adopt to stay afloat and succeed in the current downturn

If you’re confused, uncertain and even frightened about the property market in Australia, you’re not alone. Most investors feel that way. They also feel angry and even betrayed.

During most of 2008, property investors across Australia didn’t fair too well, some couldn’t sell their properties at the right price to exit, others couldn’t refinance on a good valuation to get out of their existing mortgages provided by those defunct non-bank lenders. Many developers couldn’t sell their stocks or obtain proper development finance, and you name it.

We’ve seen some relief, in the first few months of 2009 at the low-end property market due to the first home owner grant and lower interest rates. We all know this won’t last, especially when Australia is officially included in the ‘Great Recession’ by IMF.

I believe that in tough times you should revisit your strategy, purpose and assumptions continually – especially when you’re experiencing resistance or frustration of any kind in the accomplishment of your investment and lifestyle goals.

Now more than ever, it’s especially important that you anticipate market shifts, control risk and create powerful strategies that move you in the direction you want to go.

1. Re-position your leverage level on properties

The current recession is mainly caused by financial crisis, a good percentage of the economic growth and asset value have been contributed by over-leverage.  Deleveraging across the world will see credit tight for many years to come, even after the economy recovers.  Hence we will see tight credit markets for at least another 2-3 years if the IMF’s prediction of the global economy recovery late 2010 is correct.

You should consider at least 3 factors when you look at leverage:

1. Return on investment: this is comparing your deposit money sitting in a bank vs. being invested into a property.

2. Safety: this is to avoid negative equity or loan recalls.

3. Your own circumstances: how close you can achieve the ideal leverage level.

Ideal leverage level:

• If residential property prices were going up at 7-10% each year, higher leverage (such as 80% or above) will give you higher return on your capital invested and still relatively safe.

• If residential property prices were to be flat or even slightly down each year, lower leverage (60% or below) will give you a higher return on your capital invested and it is also safer to keep your leverage lower.

In my opinion, our current property market trend is likely to be suitable for 60%LVR or below if your circumstances allow you to do so.

If you must stay at higher leverage, your income should at least allow you to pay down your mortgage principal on a monthly basis.  Because paying down your mortgage is similar to lending your money to the lenders. The lender is paying you the interest rate your mortgage is costing you; you have effectively become a lender.  Lenders make more money than borrowers in a deleverage economy (home loan calculator).

Many people are concerned about lenders recalling their mortgages if they show negative equity.  For most private property investors and homeowners, negative equity will not be the main reason why the lenders would recall your loans.  Lenders would usually recall loans when the borrowers fail to make repayments.

However if you are one of those property investors with a very large property portfolio or run a business with credit facilities with the same lender, you may want to separate the business credit facility from your mortgages and reduce the exposure to a single lender. This can avoid the unnecessary risk of your mortgage being reviewed by the lenders at an inconvenient time.

2. Re-set your minimum cash reserve

Cash reserve is not a new concept to most property investors; most of us know we must have them to cover our rainy days.

How much is sufficient is quite a personal matter, but the general idea is: how many months you would like your cash reserve to last if you experience severe loss of income and overrun of cost at the same time.

• Loss of income can be loss of your job & business income, default of debtors, loss or decrease of investment income such as rent & dividends;

• Overrun of cost can be increase of interest repayment from your mortgage, unexpected expenses.

>>>Read more at Your Investment Property magazine<<<

Republished with permission.

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Set on a fully fenced 2.2 acres behind huge gates and hedges with sweeping concrete, tree lined drive with landscaped lawns, succulent and rose gardens plus a large variety of fruit trees and every inch manicured. 2 good sized sheds, 1 with coolroom and 2 huge 60 x 16 shade houses for nursery of Bromeliads with over 2500 species.

>>>READ MORE>>>