As commercial litigation lawyers, our clients are often surprised that our initial advice to them is to avoid becoming involved in litigation if possible.
Whilst this sounds like a poor business strategy for lawyers specialising in commercial litigation, the reasoning is simple – litigation is very time consuming, stressful, and expensive.  Consequently, the effort and expense required to run litigation proceedings can outweigh any commercial benefit realised by the proceedings at the end of the day.
Of course, there will be times where litigation is advisable – but such times are rare.  More commonly, there are times where litigation is unavoidable.  In either case, it is important that steps be taken (as far as possible) to mitigate the time, stress and expense associated with litigation.

Unfortunately, if litigation proceedings are already on your doorstep, there are very few things that can be done to mitigate the time, stress and expense of litigation – your bed has been made.
Accordingly, in order to mitigate the time, stress and expense of litigation, your focus should be on implementing practices in your day-to-day business dealings that will ensure that, if litigation does arise, you are in the best possible position to prosecute and/or defend it.
Too often we see the situation where parties to an agreement fall into dispute – each party claiming (whether honestly or not) that the other has failed to perform his or her obligations.  However, the negotiations surrounding the entering into of the agreement, the day-to-day performance of the agreement, and indeed the agreement itself, have never been documented.
Further, it is commonly the case where, whilst the parties have attempted to reduce the agreement to writing, they have not sought professional advice and, accordingly, the written agreement is poorly drafted and of little assistance in determining the dispute that has arisen.

In the absence of a well drafted agreement, it can be difficult to advise a party on their rights and obligations under an agreement and, more importantly, their prospects of successfully prosecuting or defending court proceedings.
Whilst, in some circumstances, agreements are not properly documented as a result of people’s ignorance about how things can go wrong, or because a person naively considers that a “handshake agreement” will be honored, most commonly business arrangements are not formally documented because the parties wish to avoid the costs associated with having a solicitor (or other professional as may be appropriate) formalise the arrangements.  Whilst it will sound like propaganda for this statement to come from a lawyer – that is simply false economics.

In our experience, the time, stress and expense of litigation is commonly directly referable to having to:
1.    establish the existence of an agreement;
2.    establish what the terms are, and what the effect of an agreement is; and
3.    establish what did, or did not, happen prior to, or during the course of, the existence of the agreement giving rise to the dispute.
Where the negotiations surrounding an agreement, and the agreement itself, are not documented, the Court will be required to decide a dispute largely on the basis of oral evidence.  In that event, the Court must favor the person who is the most credible witness on the day – not necessarily the person who is the most truthful.  We have seen impressive, educated and honest clients crumble under the pressure of a good cross-examiner at trial and, consequently, be perceived as an unimpressive witness.
It is much harder (although not impossible) to discredit a document which appears to be a document created by a person or business in the course of the operation of (i.e. contemporaneous to the happening of the event it seeks to record), and/or for the purposes of the operation of, that business.  Indeed, combining oral evidence with supporting documentary evidence will put you in the best possible position to be successful in litigation.
Accordingly, taking the time to seek professional advice and ensure that arrangements are properly documented and drafted will save considerable time, stress and expense in the future should a dispute arise.

To that end, it should be a common practice in your day-to-day business that you, for example:
-    take a contemporaneous file note of any telephone conversations you have which are business related (which file note records the parties to, the date and time of, and the matters discussed during, the conversation);
-    take a contemporaneous file note of all meetings (i.e. not just at directors meetings) recording the parties at, the date and time of, and the matters discussed during, the meeting;
-    ensure that all conversations where new business arrangements and/or agreements are formed, or where business dealings are clarified or amended, are followed up with a letter to all other parties setting out what was discussed and agreed – even before any agreement is concluded.   That way, if there is to be disagreement as to what was discussed and/or agreed, that will come to light quickly and (hopefully) before any harm is caused to the relationship;
-    keep a printed or electronic (or both) database of emails (and other electronic forms of communications) and letters sent to you which is logically organised and easily accessed.
In this regard, it should also be remembered that email communications are a formal means of communication which can be relied upon in litigation proceedings.  Don’t fall into the trap of thinking that emails are a less formal means of communication and, therefore, you can include something in an email that you would not include in a letter.  Everything is capable of being put in front of a Judge;
-    keep a record of when all communications are received and sent – such as a mail book recording the date on which correspondence was actually sent and received (as timing is a very important issue in a lot of litigation matters and the date printed on the letter may pre-date the actual date the letter was received considerably);
-    speak with your solicitor (or such other professional adviser as may be appropriate) as soon as you think an issue has, or even may, arise so that steps can be taken to avoid the issue escalating;
-    seek legal advice (or such other professional advice as may be appropriate) prior to concluding any agreement so that you can be assured that all matters which should be dealt with in the course of your negotiations are covered; and
-    most importantly, have the final agreement drafted by an appropriately qualified solicitor.

These examples are not intended to be exhaustive.  However, failing to take such basic steps leaves too much room for a party to raise arguments during the course of a dispute which would otherwise be unable to be maintained.  Such arguments allow a party to drag out the duration of, and expenses involved in conducting, litigation.

A practical example of what can happen when agreements are not documented can be seen in the recent District Court case of Ariki Constructions Pty Ltd v Clovis & Ors [2011] SADC 13, in which we acted for Mr and Mrs Clovis.
Mr and Mrs Clovis purchased land in a commercial estate with a view to building a warehouse complex with 4 warehouses; one of which was to be occupied by their son’s business.  They asked around the community for a recommendation for a reputable builder.  Mr and Mrs Clovis were, on a number of occasions, referred to a local builder, Ariki Constructions Pty Ltd, and its director, Mr Wolferstan.
Mr and Mrs Clovis decided to engage Ariki to build their warehouse complex.  However, the parties did not enter into any written contract.
At the trial of the proceedings, Mrs Clovis said she had asked the builder for a written contract and he had replied that he doesn’t do business that way – she should simply trust him.  Consequently, Mrs Clovis did not insist on a written contract.
Ultimately, the parties fell into dispute.  The lack of a written contract left a number of matters unknown, namely:
1.    What was the builder engaged to do?  Mr and Mrs Clovis claimed that only 1 warehouse was to be built first so that their son’s business could move in.  However, the builder claimed he was engaged to build all 4 warehouses at the same time.
2.    When would the works be completed?  After undertaking initial site works, Mr Wolferstan left the site and worked on other jobs in the area.  The builder did not return to Mr and Mrs Clovis’ land for almost a year.  At trial, the builder claimed that the parties had agreed he was allowed to work on other jobs while completing the works for Mr and Mrs Clovis.  However, Mr and Mrs Clovis claimed that the builder had promised the warehouse would be complete within 6 months.
3.    What was the price for the warehouse?  The builder had provided a written quote.  About a third of the way through building the first warehouse the builder had already invoiced Mr and Mrs Clovis $50,000.00 more than the total of the quote.  The actual cost of the first warehouse ended up being more than double the amount quoted.
4.    When was Ariki Constructions Pty Ltd to be paid?  A normal building contract stipulates when payments are to be made (which payments typically coincide with a certain stage in the building process).  In this case, Ariki issued invoices randomly and would demand payment for works before they were carried out.  If Mr and Mrs Clovis did not make payment of the invoices in advance, the builder ceased works.
Ultimately Ariki placed a lien over Mr and Mrs Clovis’ property and commenced proceedings in the District Court seeking payment for claimed unpaid building works in the sum of $110,000.00.
Mr and Mrs Clovis filed a defence and counterclaim to recover the cost of rectifying defective works and the cost to complete the warehouse (which Ariki Constructions Pty Ltd had not done).
On 18 February 2011 the District Court delivered its judgment dismissing Ariki Constructions Pty Ltd’s claim for $110,000.00 and ordering Ariki Constructions Pty Ltd to pay Mr and Mrs Clovis approximately $180,000.00 in damages in addition to their legal costs.
However, the issues in the proceedings were complex, and the evidence convoluted (given that the absence of a clear contract required significant oral evidence to be led at trial by the parties in order to attempt to prove their respective case entitlements).  For the privilege of the fight (and the victory) Mr and Mrs Clovis incurred significant legal expenses.
Had Mr and Mrs Clovis taken steps at the beginning of their relationship with Ariki Constructions Pty Ltd to ensure that contracts were drawn up by solicitors so that the scope of the agreement, and the parties respective entitlements and obligations, were clear and unambiguous, the expense of the resultant Court proceedings would have been significantly less.  Indeed, one could theorise that, had a clear contract been documented, the dispute could have been avoided all together.

For further information, contact:

Liam McCusker
Senior Associate
Direct +61 8 8229 0911
Mobile 0417 830 659
LMcCusker@dwlaw.com.au

Sarah Annicchiarico
Solicitor
Direct +61 8 8229 0934
Mobile 0437 015 593
SAnnicchiarico@dwlaw.com.au

DonaldsonWalsh Lawyers
Kings Chambers
320 King William Street
Adelaide SA 5000
Tel +61 8 8410 2555
Fax +61 8 8410 2322
info@dwlaw.com.au
www.donaldsonwalsh.com.au

How long have you been in business?

WizKid has been in business from August 2011 and the idea developed over a year of research and hard work.

Why did you start your business? What was the driving force?

As a sales consultant for an internet company I found people who were not confident with technology. Selling things like home network connections was a challenge to those who had just learnt about the internet but they were interested in learning more. When a lot of novice clients where afraid of technology the only answer I had was “you can learn some of the basics at your local community centre”.

This got me thinking and I had researched that all the Technical support services are mainly around computers or TV’s. The service was basic and didn’t help the client understand the product, how to use their device, or even the potential their devices may have. As I struggled during my schooling
I leant how to adapt by a monkey see, monkey do attitude. Around the same time I had the opportunity to work as a centre operations and system administration lead. Supporting 200 staff I adapted my learning abilities to educate my colleagues and continued to get feedback on how knowledgeable, easy to understand and clever I was at being able to fix issues.
After moving onto another department after 12 months, I decided my passion with technology and helping others went beyond helping family.  I then started the journey as to how I could make the idea into a business and generate an income and profit.

Did you have assistance in starting your business?

In 2003 I had been involved with Mission Australia the VOLT and we had run a 6 month program called “What’s the Biz?” This gave me the interest to run my own business at an early age and the skills I had learned from setting up to liquidation have been useful to adapt to my new idea.
I had a lot of feedback from my family; my sister who runs her own business recommended the BEC centre to get the right advice and support.

What is the 5 year plan for your business?

1st Year :- Successful repeat business and expand with two extra staff members who assist with customer service and sales. Meet a turnover target of $60,000.00 and a profit of 40%.

3rd Year:- 5-10 employees on the field. Fully staffed office including a Manager, Marketing and Research, Processes and Training, Administrator to manage scheduling bookings. Ideally I would do the business performance and administration side of things and have confidence in the employees  on site and providing the services.

5th Year :- Expansion to a company, Branch of staff and a small call centre. New staff required for Marketing, Research, Processes, Training, Bookings, Scheduling, Online Marketing and after sales care, Sales Revenue, Team managers.
I would then be the Overseer and Director of operations, letting the team feed the information through a chain to push the direction and drive of the business forward for expansion.

 Has being in business met your expectations?

Yes and more.   Starting working with community centres has given me more inspiration and ideas than just the basics. My idea keeps expanding every day.

What is the best thing about being in business?

The excitement and relief on their face when an issue has been fixed, their answers – answered and getting the best out of technology.

 What is the worst?

Late nights cramming in as much info as my brain can process. Many hours on the internet and trial an error by practice at home.. Technology is always changing and keeping up with it is a challenge.

What is the best thing you have done to promote your business?

Talking about issues surrounding technology to prompt people’s pet hates or struggles, and using that to promote my services around their emotional needs.

What is the worst thing?

Not getting my data base going before I made contact with clients. Working with several community centres – collecting client details to promote to and also keep in contact with.

What has been the hardest aspect of business for you to really understand?

Marketing – delivering the benefits more than the services effectively and eye catching methods.

Do you use social media to promote your business? If so how?

I had concentrated more on building a website with a list of services offered, contact methods, terms of service etc. Only recently have I integrated Facebook and my website together. When people visit the website or Facebook they will get the news feed of active projects at community centres, also in addition starting tips and up coming releases of new technology coming to Australia.

But what about you?

All business experts agree that plans, goals and measurements are critical to your business improvement. But often in business there never seems to be enough time to do them properly. In fact surveys estimate only one in ten small to medium enterprises has a written plan.

I think we all agree that some planning is an extremely positive step. The traditional business plan also forces you to think about all the crucial areas of your operation which is a good step to take. But many small business people perceive business planning to be difficult, time consuming and costly (especially if you engage an outside consultant to help you). In my view these thoughts are correct. But business planning has its place especially if you are raising money to start your business or need to approach banks with an expansion to an existing business.

A wonderful way to short cut planning is to do a 90 day plan covering the 10 crucial areas of small business success. The Business Enterprise Centre Tea Tree Gully offers a very powerful process for doing this and in 1-2 hours you can have energy, vision and clarity to hit the ground running in 2012.

Now is also the time to self review your business. Working out what are your strengths, weaknesses, opportunities and threats can be done at any time but in my opinion, doing this simple process at the end of the calendar year or the start of a new year makes great sense.

Your Own Business Review

Here are 10 great questions to ask yourself about your own business.
By highlighting the great things you are doing and the not so great, you can work on simple strategies to change and improve. You can also put the items needing attention into a 90 day plan starting January 2012.

Success Factor #1: Goal Setting
Do you have clear defined written down 1 year and 5 year goals for your business?

Success Factor #2: Planning for Performance
Do you have a written plan of the strategies you intend to take in the main areas of your business?

Success Factor #3: Customer Satisfaction
How would you describe your customers’ or clients’ satisfaction? High, Average or Below Average?
What is the one strategy that would improve customer satisfaction?

Success Factor #4: Operating Efficiency
Generally are you operating efficiently? If not what are the bottle necks or processes that need work?

Success Factor #5: Promoting Your Business
Do you have a marketing machine working in your business?
Do you attract enough new customers?
If not, what is the one strategy you could work on to improve in this area?

Success Factor #6: Controlling Your Finances
Is the money going in and out of your business running smoothly?
Do you have an up to date budget?
Is your invoicing and overall money management effective?

Success Factor #7: Managing Your Time
Do all the people in your business (including yourself) manage their time well?
As a business are you working on the most important things most of the time?

Success Factor #8: Your Team
Is every team member effective, motivated and high performing?
If not, what one strategy might change this?

Success Factor #9 Increasing the Amount of Repeat Customers
Do you contact your past customers regularly?
If not, what one strategy would make a difference?

Success Factor #10 Overall Outlook for Your Business
Big question: Is your business in good shape, medium shape or in need of immediate help?

Business Christmas cards, like personal ones, are all about relationships.

In business, your relationships with your customers are paramount, because they help you to build and shape your business.

Customers not only buy things – if we have a good relationship with them we gain an understanding of who they are, why they buy, what else they buy and how we (as a business, and our products) might be able to become a bigger part of their lives.

That’s why so many businesses concentrate on building relationships – through face-to-face interaction, email newsletters, websites, facebook, linked in and much more.

Christmas Cards are another means of creating awareness, and developing closer relationships.

So – should you send them?

The answer, in most cases, is absolutely yes – but you need to follow some guidelines.

1. A Christmas Card is a reminder that your customer is important to you, and you are acknowledging and thanking them for being a customer.  So make sure your card, wherever possible, reflects that personal touch.  Write a message by hand if possible and make sure your card has your logo or at least your business name on it.
2. Use good quality cards with an appropriate illustration.  Cheap cards make your business look cheap (like cheap business cards do) so try to make a positive impression.
3. Christmas is a religious festival, so don’t send Christmas Cards to people who you know may be offended. You can choose to go the US way and avoid the problem by marking everything “Happy Holidays” but I don’t think Australia is quite there yet….so just use some judgement.
4. Spell your customer’s names correctly and try not to forget anyone.   If you deal with Bob and Alice at XYZ industries, don’t just send it to Bob.  Put Alice’s name on it too.

Printed or email?

Email cards are on the increase, with many companies claiming that they are sending email cards because they are better for the environment.  Hmm.  Also a lot cheaper.

Animated email cards can be good but also can be boring and repetitive, especially if everyone is sending a same variation of the same thing.  If you do want to send email cards, Bluemountain.com have some good ones, but there are lots of other sites too.

Use your judgement again – an email card is certainly better than nothing, but printed cards probably still have a little more impact.

So – get cracking with your Christmas Card list and don’t forget anyone!

Tim – thanks for talking with us.  Let’s start with a little background:

What’s Big Feat Coaching?

Big FEAT Coaching came to life in 2005. It started as an idea to assist people to achieve greater fulfillment and success in work and life.

1. How long have you been in business?

Eight years. The first two years as a sole trader under the business name TEQAbiz and the last six years with the company Big FEAT Coaching.

2. Why did you start your business? What was the driving force?

The driving force was many and varied. I was essentially burnt out in the job I was in and felt like I had to leave to preserve my health and family life! After leaving and taking some time out I really wanted to be able to work in an enjoyable environment where I could assist others with the business and management skills I’d developed over the years and have plenty of time for family stuff.  So to sum up, lifestyle, health and family was the driving force.

3. Did you have assistance in starting your business?

In a sense yes, my sister had a small business she was growing at the time and wanted some help. She was kind enough to take me on as a consultant which really assisted me to get started. In addition I went along to quite a few workshops run by DTED via the BEC that were very valuable.

4. What is the 5-year plan for your business?

To enjoy every moment and go with the flow!

5. Has being in business met your expectations?

Yes.  I didn’t come into it with big business expectations, rather came into it wanting to get my life back. To that end, it has been the biggest personal growth period of my life. As such, the business has changed regularly to align with what I want from it and my own personal values.

6. What is the best thing about being in business?

The best thing for me is definitely the flexibility. The business is one currently where I have flexibility in how the hours worked are set. So this allows it to flow with everything else in my life.

7. What is the worst?

The worst is the lack of regular daily interaction with others. Whilst at one stage the business had me as an employee and up to four contractors, I made a decision to move it back home and so it’s just me. This has many benefits and at the same time means less interaction with others. So the worst part at the moment is the lack of interaction.

8. What is the best thing you have done to promote your business?

In 2005, I moved the company from home to a small business precinct at Thebarton run by the University of Adelaide. Just being in that environment, meeting the other business owners and being a part of the opportunities that arose, raised awareness of the business and assisted its development.

9. What is the worst thing?

Mail outs. These for whatever reason just haven’t worked!

10. What has been the hardest aspect of business for you to really understand?

Marketing has definitely been the biggest learning curve. There are so many aspects that you could consider and so many ways to market a business, it can be a tad confusing.

11. Do you use social media to promote your business? If so how?

Currently, no.

12. What other methods have assisted you develop your business?

I have found business alliances/partnerships to be a really great method for developing the business. When two businesses come together with a lot of synergy and enhance each other’s offering, then it can work really well.  It’s a bit of trial and error too. I’ve been involved in about six alliances/partnerships over the eight years, of which two have worked really well and continue to benefit both companies.

800 million people use Facebook worldwide. This is the estimate of Facebook accounts around the world. In Australia too, the numbers of users is simply staggering. So the question is, have you exposed your business to Facebook?

You probably know you should have some exposure to Facebook with your business. You would have heard that it is best to set up a fan page rather than a personal profile. You may have been resisting Facebook due to lack of privacy, lack of time, or an overflow of confusion (all valid reasons). But what really are the top benefits of Facebook in relation to you?

The obvious thing Facebook has going for it is numbers. Facebook has surpassed Google as the most trafficked site in the world. People spend over 700 billion minutes per month on Facebook, and at least a little of that time isn’t Farmville. Also, many older people have embraced Facebook so it is a myth to think it is just for the younger generation.

A key business tip is this: your business needs to go where the people are hanging out. If you are one of the last holdouts, here are 5 solid reasons to embrace Facebook so that you can get your business in front of the masses.

1. Visibility

With some recent Facebook Page changes, you can now comment on other Pages as your Page and like other Page’s posts. If you have no idea what that sentence is about, don’t worry. Just know that this feature will give your Facebook Page much more visibility than it had before and make it easier to participate on Facebook as your business.

2. Share-ability

I love the fact that Facebook makes it very easy to pass good content around to others. This could be with other businesses or friends or anyone you are connected to. Similarly, people can share your links, your videos and your pictures. So if you post quality content from your site on your Facebook Page, your community will provide you with valuable digital word-of-mouth advertising. Increased business will result.

3. Authority

Facebook helps you establish yourself as an expert in your field. The key is to post something at least a couple of times a week that goes directly out to your audience. Even better is a daily post, if your resources allow you the time to do this.

With helpful information that adds value to your past customers and prospects, you can build a fantastic community related directly to your business. You can send out tips to your community on your business products, your services, newsworthy items not related to business but topical, videos, instructional help, guest speakers, community interesting information, training tips and the list goes on and on.

The key is to not be a pushy seller but to give tips and valuable information. That is what your audience craves; something that helps them. By doing this, when your audience requires your services, you are the first person they think about.

4. Branding

The more times people see your business name you are helping your brand to become noticed. Facebook helps your branding easily by enabling to communicate with your past customers and potential future ones.

The more places you are seen on the web with your consistent brand message, the more you will be remembered. The playing field has been leveled. The small guys can now look big.

5. Connection

The total essence of Facebook and the biggest benefit is this: Facebook allows you to contact your community every day and remind them of your presence. Your post shows up in the News Feed of your “Likers” and they are given the opportunity to interact with you. You are inviting your target audience into your business every day. Can you see the power in this for your enterprise?

Facebook also allows you to connect with people so they get to know you and your business better. With those daily connections you build that “know-like-trust” factor which is critical. More business will result.

Facebook is the same as any method of marketing your business, you need to put in time and effort (or pay someone) to get the results, your viral reach could easily go up literally overnight, but a one-off event isn’t enough – you need to do it consistently. Guide 15-30 minutes daily is ideal.

*Attribution: Some content provided by Copyblogger  – www.copyblogger.com

Hi Mandy – tell us a bit about yourself and your business success so far:

How long have you been in business?   

Just 7 weeks!

Why did you start your business? What was the driving force?

I started my own business for a multitude of reasons but here are just a few.

I am able to work full-time now that my children are both at school but the traditional retail travel agency hours do not work well with school hours so I wanted or should I say needed something flexible that would fit around family life whilst still enabling me to be a professional.

After 16 years as a travel agent I felt comfortable and confident enough in my skills to be able to work alone in my own business.

My earning capacity has increased dramatically which is always a good thing but I am in control of my work/life balance rather than a company dictating my hours and obligations.

Did you have assistance in starting your business?

I am very lucky in that there are a few companies specialising in partnering with mobile travel agents and I joined one of these. They provided a weeks’ training and they also supply on-going support by means of Business Development Managers, a central website, e-mail marketing  and on-line forums where I can connect with other TravelManagers around Australia.

What is the 5 year plan for your business?

I will still be consulting on my own in 5 years time at a level where my business is made up of  repeat and referral clients only. I do want to be in a position to hire someone to take care of the day to day admin so that I can concentrate exclusively on travel rather than the back office.

Has been being in business met your expectations?

Yes it has.  I had a taste of being a ‘business owner’ as a manager for Flight Centres where I oversaw every aspect of the store apart from marketing.  Lo and behold marketing is the main area I am struggling with as at both Flight Centre and Harvey World prospective clients just called or walked through the door in response to national advertising.

Now it is just me and my efforts alone that will generate leads which is a bit daunting.

What is the best thing about being in business?

The flexibility and knowing that every effort I put in to the business benefits myself and my family and not a huge national or global company.

What is the worst?

Not being busy with enquiry! I am focusing my efforts on increasing my database and generating leads to which end I am reading up on marketing and will be completing the 90 day marketing plan with Brian at BEC and of course implementing it.

What is the best thing you have done to promote your business?

Get help and from the right people.  Promoting my business is not my strength.

What is the worst thing?

Letter drops. My business is based on the trust and connections I make with people face to face, over the phone and through word-of-mouth and letter drops haven’t generated a single enquiry.

What has been the hardest aspect of business for you to really understand?

Marketing, marketing, marketing – what is my target market and how do I connect with them? I keep circling around that question and still come up with blanks.

Do you use social media to promote your business? If so how?

I am planning to start a Facebook page however I need a plan so that it is constantly updated and with the right kind of information and specials for my market (when I figure out what that is of course!).

The Key Point of Systemizing

The key point is this; systems can dramatically improve your business. Your people (your team) run the systems and the leaders of your business run your team. A great way to implement this is to look at improving one internal process or system per week. In a year that may be approximately 50 internal and external processes you could change for the better. Start with simple improvements and go from there.

4 Steps to Systemize Effectively

1. Flowchart your processes.  This will show you how it all fits together.
2. Document how it gets done.  Get the team member who is currently doing the job to write down every step in performing a task.  This person then gets a new person to do the task with the written down steps.  If the person currently doing the task has to step in and explain anything to the new person then add the step etc.  Once completed start again with another person until any person can do the task without intervention.
3. Measure using key performance indicators.  Typically, these will be the top five measures to show system performance.  Get these from the person doing the job.  Eg in sales you could use no. of leads, conversion rate, average $ sale etc.
4. Processes and systems do not need to be locked in stone. Allow the system to change/grow.  Ensure the system is self-correcting and can evolve itself.

How to Start Improving your Processes

1. What are you doing on a regular basis that a lower paid team member could be doing if it were systemised.  Systemise it, hand it over to the lower paid team member and spend your time on higher level activities.
2. Is there anything you hate doing which could be done by a lower paid person if it were systemised? Systemise it and hand it over.

Some final tips…

1. Don’t over complicate systems or people won’t follow them.
2. Use lots of photos, videos, tapes etc.  This may be as simple as printing a computer screen or videoing someone doing the task at hand.  This will make the systems much easier to follow.
3. Document your system in a policies and procedures or operations manual in an easy to access format.  And make sure everyone knows where it is!

Improve my Business Systems Checklist…

Daily office operation systems

• Answering the telephone
• Receiving and opening the mail
• Purchasing and maintaining office supplies and equipment
• Faxing and e-mailing
• Dealing with incoming/outgoing delivery needs
• Backing up and archiving data

Product development systems

• Developing product and protecting it legally
• Developing packaging and collateral material (eg catalogues)
• Developing manufacturing methods and process
• Developing manufacturing costing and bidding process

Manufacturing and inventory systems

• Selecting vendors
• Determining product or service warranties offered
• Establish product or service pricing (retail and wholesale)
• Establishing reorder process for inventory production
• Receiving and storing product as inventory
• Reconciling physical inventory with accounting records

Order processing and tracking systems

• Taking orders and recording the orders by mail, fax, phone or online
• Fulfilling and packaging the orders
• Confirming details before service or product delivery
• Sending the orders
• Management system for freight, couriers and vehicles
• Order tracking systems

Invoicing and Accounts Receivable Systems

• Invoicing customers for the orders
• Receiving payments for the orders and crediting customers for payment (whether cash, cheque or credit card)
• Monitoring credit control and age of accounts
• Starting the collection process for outstanding receivables

Customer Service Systems

• Returns procedure for inventory receiving and customer payment return
• Responding to customer complaints
• Replacing defective product or performing other warranty service
• Measure quality and professionalism of service delivery

Accounts Payable Systems

• Purchasing procedures and approvals required
• Payment process for supplies and inventory
• Petty cash

Sales and Marketing Systems

• Create an overall marketing plan
• Designing and producing promotional materials
• Developing general leads and prospects
• Creating an advertising plan
• Creating a public relations plan
• Creating a direct mail plan
• Developing and maintaining a database
• Developing and maintaining a website
• Analysing and tracking sales statistics

-          Continuously measure number and origin of all leads

-          Measure conversion rate for each salesperson

-          Measure your average dollar sale for every team member

-          Keep a record of your profit margins

People and Education Systems

• Recruitment procedures
• Training employees
• Payroll process
• Induction program
• Team member positional contracts
• Career planning
• Company rules of the game
• Company vision and mission statement
• Company and individual team member goals and performance indicators
• Conflict resolution
• Contingency staffing plans
• Redundancy systems

General Accounting Systems

• Managing the accounting process with daily, weekly, monthly, quarterly and annual reports

-          Complete and keep to monthly and yearly budgets

-          Complete a monthly balance sheet

-          Daily or weekly update cashflow statements

• Managing cash with future borrowing needs secured and available
• Budgeting and forecasting
• Reporting payroll taxes, superannuation and withholding payments
• Complete weekly bank reconciliation
• Have a daily banking system
• Maintaining an asset register including depreciation

General Corporate Systems

• Negotiating, drafting and executing contracts
• Developing and protecting intellectual property
• Managing insurance needs and coverage
• Reporting and paying federal, state and other taxes
• Planning for federal, state and other taxes
• Managing and storing records
• Maintenance of equipment
• Maintaining investor/shareholder relations
• Information flow processes
• Ensuring legal security
• Developing a business plan for planning and managing growth

Physical Space Management Systems

• Maintaining and designing telephone and electrical systems
• Upgrading office equipment
• Planning permits and fees
• Licensing
• Ensuring physical security

Hi Liam – thanks for talking to us.  Let start by asking you how long you have been in business?

I began my solo career as a sole trader 5 years ago after attaining my cert 4 as a Personal Trainer. I started off with a few clients of my own (I still remember how it felt being given my first $5) however I received most of my income through subcontracting to another business owner in the area. I took on a sub franchise about a year later, then my own franchise location in the Barossa & then nearly 2 years ago was offered the very business I began working as a subcontractor in.

Why did you start your business? What was the driving force?

At the time I didn’t really realise it, however I am a very ambitious person. The only qualification I had 5 years ago was a cert 4 first line management which I obtained through my employment at GMH. Since management wasn’t what I wanted to pursue, I needed another career where I could put everything into. Without any real qualifications, I realised the only way I was going to succeed big was to do it myself.

Did you have assistance in starting your business?

I was given some books to read which helped. However it wasn’t until I told about the BEC’s & went to some workshops in the city that my eyes were really opened to how a business really works.

What is the 5 year plan for your business?

By the end of this financial year I will grow this business to a point where it is better able to maintain itself through the systems I am implementing now. I will then expand into stronger demographic areas where I will also team up with complimentary industries to create another business structure altogether. In 5 years I intend to be able to use this new structure to begin a franchise system of my own.

Has been being in business met your expectations?

Holy @#!% No it hasn’t……..It’s exceeded them further than my wildest expectations could have ever dreamed of!  I have the potential for such a greater lifestyle than I would have EVER gotten had I stayed in an employee role through someone else’s business. The issues I am dealing with now are only temporary, my lifestyle now has no boundaries & I am in control of where I want it to go. I never expected to discover THAT about being in business.

What is the best thing you have done to promote your business?

Getting advertising out there in any form. When I look back over the past few years, the times when I have advertised frequently I have had the greatest amount of contacts, when I haven’t advertised I have had the lowest. When I look back on the first advertising designs I put together I cringe, there is no emotional grab, no call to action, nothing. However it still got people calling (somehow). Although I know that I need to know so much more about advertising, I also know now that getting anything out there (regularly) is better than nothing.

What is the worst thing?

Neglecting to keep in regular contact with my customers making them feel special. I lost an entire franchise location because of this & it almost killed my business.

What has been the hardest aspect of business for you to really understand?

Bridging the gap between what I want my business to be & what my customers are prepared to pay for.

If you purchased a franchise – why did you do that instead of opening as an independent?

I have done both & the franchise I bought into, The Original Bootcamp, has a very specific system that I could simply couldn’t replicate to the same quality level in a million years. However it isn’t enough for me so I also do my own programs in other areas.

Do you use social media to promote your business? If so how?

No I don’t and I should!  It’s certainly on my list of things to develop more. However I feel that my ideal/target customers use social media secondary & I have decided to create a stronger presence through word of mouth first & then standard media before going online.

This article discusses 5 great tips used by copywriters all over the world to improve flyers, direct mail, newsletters, website or business emails sent to get people to take an action. The action could be one of many depending on your industry. For example, you may be a dentist wanting people to call your office to book an appointment, a bakery wanting people close to the store to drop in etc etc.

Rest assured the advertising principles are the same no matter the industry. You just want people to take an action which leads them to your business and for them to become a customer or client.

So here are 5 key tips that every advertisement, flyer, direct mail, sales copy, business website or company profile should have in some shape or form:

1. A powerful headline with the biggest benefit possible
2. More benefits that are easy to read and understand
3. Proof of past performance
4. Demonstration of credibility
5. Call to action- what you want the reader to do next.

Your headline is #1.

Don’t get me wrong: Every part of your sales message is important. Your opening is crucial. Your presentation of product benefits … of proof and credibility elements … of the offer and premiums … of your guarantee … and of your closing, “ask-for-the-sale” copy are all critical.

But of all the things you do to produce a sale, nothing equals your headline when it comes to pushing response through the roof.

Why are heads so important? Two reasons:

FIRST, your headline is the tap on the shoulder … or like a person waving a big flag  that at the moment of impact, make it impossible for your prospect to look at anyone but you – or more precisely, anyone’s ad but yours.

SECOND, your headline is the gateway to your sales copy. More than that: It’s the sales copy that persuades your prospect to read your sales copy. If you have no headline or a weak headline, the chances of anything else getting read is remote. Have you ever read a newspaper article without noticing the headline first? No. We read the headline, it catches our attention, we then decide – if we like that headline – to read on or if we did not like it – to stop reading. Same goes for your marketing.

In short, great headlines have only two functions: 1) To grab your reader’s attention and 2) To convert that attention to readership of your sales message.

Here are some example headline starters to get your creative juices flowing. You can adjust these to suit your particular industry by filling in the blanks.

A Part-Timer’s Tactics for a Full-Timer’s ______________

A Quiz: Test Your ______________ Smarts

Cash in on _______________ Trends

Chasing the Right ______________

Cool Tools for Today’s ______________

Common Errors That Kill ______________

Discover the 7 Essential Elements That Guarantee ______________

Finding the ______________That is Uniquely You

Good News for ______________

How to Bounce Back from ______________

How to Get Other People to ______________

How to Handle ______________

How to Make ______________ Work for You

How to Make Your ______________ Dreams Come True

How to Turn ______________ into ______________

Mastering the Art of ______________

No More ______________

Part-Time ______________, Full-Time Success

MORE BENEFITS

In 2011 we are all so busy. We haven’t enough time. You need to catch people’s attention by the headline and then give compelling reasons or benefits for the reader to continue. After all they are only thinking “WIIFM” (What’s In It For Me).

Boring or weak copy (words) are feature orientated with no benefits. Answer me this. Do you need to know how electricity works (the technical side or feature) in your house or do you just flick the light switch to get immediate benefit – the light comes on!

Giving many benefits that is practical for your product or service in your advertising or marketing can only do one thing; give you a better result. Another way to do this is to put a benefit on the end of a feature especially if you are in a technical field. Example, “The car has triple fuel injected and recoiled widgets (the feature) and what that means to you is the car has great straight line speed (the benefit)”

PROOF OF PAST PERFORMANCE

This is a good one. Social proof by putting in testimonials from happy customers, telling how long you have been successfully in business, giving details of what other companies or people have been customers of yours. These can all help dramatically.

DEMONSTRATION OF CREDIBILITY

This is a good one. Social proof by putting in testimonials, by guaranteeing your service, by showing what other customers thought, by showing how you have served others (photos, videos can work well, if applicable) successfully are all important elements in gaining the prospect’s trust. Missing this element can hurt the response you may get.

CALL TO ACTION: WHAT DO YOU WANT THEM TO DO NEXT

Wow. So many marketing pieces miss this out. What action do you want the person to take next? Say it clearly and specifically. Do not shy away from the fact that without this, your advert is doomed to fail. Examples:

“Call us today on xxx xxxx”

“Email your query to x and you will receive a bonus service valued at $25”

“Call us today for your free, no obligation quotation”

If you want a free marketing appraisal of your flyers, adverts or website please call me, Brian at the BEC Tea Tree Gully on 8397 9555.