When thinking about marketing online, most businesses think of obvious solutions like Google Adsense, or other types of advertising that basically involve shouting: “Look at me, everyone! Now come buy my stuff!”

Sometimes it seems like other methods are almost completely ignored. One of these is forums. Forums provide something typical online advertising can’t – a direct connection between you, and a potential customer.

Finding a Forum

Online forums have been around since the early days of the web. Perhaps surprisingly (even with the rise of social media), they are still popular today. In fact, chances are that no matter what niche your business is in, there is an online forum to match. Simply google something like “cooking forums” (if your niche is cooking obviously!), and you’ll find a forum quickly.

Now, some of the forums you will find might not be particularly active. So be sure to look down the list of forum categories to see the dates of the last posts made in each category.

Ideally, you’re looking for forums that have had a decent amount of activity during the last week. Otherwise, go find another forum where it’s clear people are actually interacting with each other.

Next, you’ll want to check what sorts of interactions are occurring on the forum. Just because a forum is active, doesn’t mean it’s actually useful.

Some forums, unfortunately, descend into large spammy threads where everyone just posts links to crap they want to promote. You’re looking for GENUINE interactions instead. You’re looking for problem and solution type forum interactions. You’re looking for CONVERSATIONS.

Participating in Forums

So, let’s say you’ve finally found at least one forum for your niche. Now spend some time getting acquainted with its environment. Read some posts, then read some more, and start getting a feel for the types of members in the forum.

Then, when you’re ready, register for a free account, introduce yourself to everyone, and start helping as many people as you can.

Don’t worry if you feel you’re not an “expert” at anything. Chances are, you’re actually an expert in quite a few areas already (often without even realising it). After all, in this kind of context “expert” simply means knowing more about something than another member.

But What’s In It For Me?

At this point, some people might be wondering how a forum helps “their bottom line”. What does your business have to gain from using a forum?

Firstly, just like with social media, stop expecting instant “Return on Investment”. You won’t get it.

And if that’s the sole reason you’re joining a forum, you’re going to get frustrated pretty quickly (and people are going to be annoyed with you).

But if you instead approach forums with the intention of getting to know the people there, and understanding and solving their problems, you will find some incredible benefits. Here are a few:

Free market research

At its core, forums simply consist of people who are looking for solutions to their problems. By participating, you can actually get a sense of what your target audience wants. Think of it as free market research, with the added benefit that you’re DIRECTLY involved in the process.

So build lots of personal relationships while you’re researching on the forums, and read lots of different post threads. Some posts may actually give you some great ideas for potential products and services you could offer down the track.

So, when you’re finally ready to sell something, chances are that you’ll have a list of forum members already highly interested to see what you have on offer. Why? Because you’ve built a connection with them, and have given them lots of free advice already. Chances are that they probably trust and like you by now. And it’s well known that people buy stuff from people they like.

Free blog post ideas

If you write a blog (and if you don’t, then you should be!), a forum can be an absolute goldmine for coming up with ideas for new content.

For example, let’s say you’re an accountant (please don’t hate me…). Did you just answer a forum member’s questions about tax returns? Great. Just re-purpose it now and VOILA – you have a brand new, useful article ready for your blog.

Why will it be a useful blog article?

Because you originally wrote it DIRECTLY FOR a specific person. And when you write in this manner, your writing is so much better.

A lot of writing experts say that you should always imagine your specific reader when you write something. So when writing on a forum, you are actually doing that for real!

Free traffic to your website

If you’ve been doing a great job of helping people on the forums, and if you’ve included a signature containing your web address in your responses, eventually you will notice web traffic coming from the forum to your website.

It can be surprising how quickly you can experience this effect.

But remember that the key to getting traffic in this manner isn’t about just posting links to yourself. If you want to get people visiting your website, you need to do it in the context of helping forum members with specific problems. Then, most people will be curious enough to want to find out more about you.

That’s why having your own blog can be so useful too. If someone on a forum has a problem that you’ve just written about on your blog, simply give them a link to your article. After all, you’re not trying to sell anything to anyone here. You’re just trying to help them with their specific problem.

And suddenly – BAM! You’ve brought a forum member to your website, and if what you have is any good, they’re going to be interested in more.

Build credibility and expert status

This last one is really a combination of all of the above. If you do the above well, and if you work hard at helping as many people as possible in the forums, over time people will see you as an expert in your area. That can have some great personal branding benefits.

But you have to make a commitment. That means visiting the forum regularly, instead of visiting only when it suits you.

And what does doing all of the above cost you?

Absolutely nothing, except for a little time here and there. But when you consider the potential benefits, it’s surprising more businesses don’t consider making forum participation a regular part of their online marketing strategy.

So, have you used forums before? Let us know how they helped you! :)

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[EDITOR'S NOTE: This is a guest post written by Timothy Ng, a personal finance writer.]

When you go into business on your own, you do so to market a product or sell a skill and chances are that skill has little to do with accounting.

As a small business owner you are passionate about your dream, your product, your service and your customers and as a result, keeping your accounts in order can come in very close to the bottom of your priorities.

While it is easy to contract your accounts work out to a virtual assistant or an offsite bookkeeper, as a responsible small business owner – and to ensure you are a successful one – you still need to understand the basics of your business accounts and systems.

Understanding Your Accounts

It may be enough to make business decisions based on intuition in the beginning, but making fully informed decisions based on financial facts has the ability to set you apart from the failed small businesses which have fallen by the wayside. Instead, make sure you understand and can monitor the financial position of your business without having to run to your accountant every time you need information.

This means being able to compare the financial performance of your business with the targets you projected at the beginning of the financial year or quarter. You should also be able to review the growth and progress of your business in recent years, and make comparisons with business benchmarks in your industry.

With this information on hand you have an accurate picture of how well your business is really doing, rather than just a vague feeling from the number of enquiries and the value of invoices you have sent out this week. Plus, if you regularly manage and update your financial statements you will know that you are satisfying your legal record keeping obligations as well.

Compiling and managing this information will be done through two main financial statements, your profit and loss statements and your balance sheet. However, this is just part of the process because you also need to understand how to analyse these financial statements.

To analyse your small business statements:

Convert the information into ratios or percentages.

If you compare the dollar values on your small business financial statements you are not getting a true picture of how your business is developing as these figures do not allow for inflation, and make it harder to compare your business to industry benchmarks.

Create a benchmark for your ratio comparisons.

A ratio won’t mean anything unless you have something to compare it to, and your benchmark may be a comparison of how your business performs at different times of the year, or how it compares to industry figures. In this way you can monitor whether there is a change.

The Importance of Understanding Your Accounts

You can judge the liquidity of your business.

This allows you to see whether your business can keep up with its outgoing expenses and pay bills on time from a cash resource.

You can calculate your business profit.

You can do this by comparing the percentage of your net profit, to your total sales.

You can identify problems and find solutions.

It is easier to fix a problem in your business if you do so before it happens; even if you see a problem arise in your regular analysis, your familiarity with your business systems, cash flow and statements will give you the best chance of finding the best solution.

Understanding the Profit and Loss Statement

Your profit and loss statement can be generated to show the performance of your business over a chosen time period. You can view the financial situation of your business monthly, quarterly, annually or over a customised period.

Since the profit and loss statement shows the income less the expenses in your business, it is a popular tool with small business owners who want to track their progress. However, before you rely too heavily on your profit and loss statement, make sure you understand what you’re looking at.

Profit and loss statements are not a compulsory part of a tax return for sole traders, partnerships or small proprietary companies but can be a useful tool to help you review the financial performance of your business, on paper, in black and white. Your accounting software program should be able to automatically generate a profit and loss statement, or you can ask your accountant or bookkeeper to show you how.

Your profit and loss statement will show:

Your business’ revenue.

The revenue of a business is the money earned from the normal business operations, including selling goods and services, interest earned on savings or dividends on investments. Your revenue may also include any rebates your business receives or rent due to you.

The cost of goods sold (COGS).

The COGS for your business includes all costs you must pay to acquire goods for sale. This includes the actual purchase price, any import duties, non-reclaimable taxes, freight inwards, freight insurance, handling, labour and any other costs you endure to convert materials into finished goods for sale.

Your business’ gross profit.

This equals the difference between your sales and your cost of goods. A larger gross profit margin means a healthier business operation as you are retaining a higher percentage of the sale, and losing less to your suppliers.

Your business expenses.

Included in your business expenses is every cost you incur to earn your business revenue including wages, rent, accounting and legal fees, electricity, depreciation and interest on business loans.

Your business’ net profit.

Your net profit is calculated by subtracting your expenses from your gross profit.

If you are a sole trader, the net profit is calculated before your own drawings are taken out, if your business is a partnership net profit may be calculated based on the proportion of the business allocated to each partner. As a company the wages of an active director are considered an expense and net profit for shareholders or dividends is calculated after this expense has been deducted.

In the case of a service business, you do not have to make a gross profit calculation as there are no goods costs involved.

Benefits of Reviewing Your Profit and Loss Statement

Understanding the basic components of your business finances.

A profit and loss statement will show you the cost of the goods or services sold, your gross profit and your expenses. Each of these components influences your net profit so you can pinpoint the differences a change to each component would make to your end profit.

Knowing how much money you are making.

When you’re on a wage in traditional employment, you know how much money you’re making, because it’s the same each week. However, in a small business you often have to look at a slightly bigger picture and this is where a monthly or quarterly profit and loss statement can show you how much, if anything, you are making.

Comparisons and forecasts.

You can use the information in your profit and loss to see how your actual performance measures up to your projected business outcomes, and how it fares against industry benchmarks. You can also use past figures to project future income and net profit.

Proof of income and expenses.

A profit and loss statement will sometimes be accepted in conjunction with other documentation if you are applying for a loan or a mortgage. You can also use the information to calculate your income and expenses to make it easier to complete your tax return.

Analysing Your Profit and Loss Report

To analyse the information in your profit and loss report, you can use profitability ratios so you can be sure your business is as profitable as it should be, where an increase in the ratios shows a positive trend for your business. Use the following ratios to analyse your profit and loss statement:

Gross profit margin ratio.

Your gross profit is your income, less the cost of goods sold. Your gross profit margin ratio is therefore your gross profit divided by your income. To express your gross profit margin as a percentage, calculate your gross profit divided by your income, multiplied by 100.

Net profit margin ratio.

Your net profit margin ratio is your net profit divided by your income. To express your net profit margin as a percentage, calculate your net profit divided by your income, multiplied by 100.

A break even analysis allows you to calculate the number of units for break even in your business. The number of units is calculated by dividing the total fixed costs of your business, by the unit selling price less the variable unit cost.

To calculate the dollar value divide the total fixed costs, by the total variable costs divided by total sales.

Your Balance Sheet

Your balance sheet will allow you to evaluate the liquidity of your business so that you can instantly identify and understand your business’ financial strength, and its capabilities in moving forward. A balance sheet is included in reports to business owners, stakeholders, banks and investors but is not compulsory as part of a small business tax return.

You need to understand your balance sheet because it tells you:

The proportions of your assets and liabilities.

Your balance sheet will detail what your business owns and what it owes showing the business assets and liabilities as well as the value of your equity, or the net worth of the business – the difference between what you own and what you owe.

Your business’ financial strengths.

You can see the capabilities of your business with regards to its financial strength through liquidity and the business’ ability to pay debts as they are due.

Understanding Your Balance Sheet

To understand your balance sheet you will be looking at the areas of assets, liabilities and owner’s equity. Your assets and liabilities are divided into short term and long term and can be further divided depending on the type of business into:

Assets.

These are the resources your business uses to remain in operation and an asset is any item which contributes to revenue. For example, cash and inventory are considered to be current assets as they are likely to be consumed within 12 months, whereas property or vehicles are non-current assets as they are not expected to be liquidated in the next 12 months.

Liabilities.

These are all financial obligations of the business, and are owed to those outside of the business. Current liabilities such as accounts payable are expected to be repaid within 12 months, where non-current liabilities such as business loans are not expected to be settled within 12 months.

Owner’s equity.

This is the net worth of the business and is the value of your business assets, less your business’ liabilities. This is the amount which belongs to you, after all financial obligations are met.

Analysing Your Balance Sheet

You can now analyse the information on your small business balance sheet, in conjunction with the details from your profit and loss statement and the following ratio calculations.

Debt to equity ratio

Debt to equity ratio = total liabilities divided by the owner’s equity

Your debt to equity ratio will tell you how heavily you rely on debt to finance your business operations, the higher the ratio, the greater the reliance.

Liquidity ratio

Liquidity ratio = current assets divided by current liabilities

Your liquidity ratio is an indication of how well your business can meet short term bills and expenses and the higher the ratio, the better your liquidity.

Efficiency ratios

The efficiency ratios of your business show how well you manage the business assets, and how quickly you can convert non-cash assets into cash assets. This is calculated using the following ratios:

• Accounts receivable turnover ratio = total sales divided by accounts receivable. The higher your ratio the faster your business is able to collect payment on invoices, meaning more cash is available.
• Accounts payable turnover ratio = cost of goods sold divided by accounts payable. You are looking for a high ratio as this shows there is a shorter period between receiving goods and paying for them so you rarely pay your bills late.

Inventory ratios

You want to see a high inventory turnover as this means high demand for your product, so calculate your:

• Annual average value of inventory = (opening inventory + closing inventory) divided by 2. Then calculate:
• Inventory turnover ratio = cost of goods sold divided by annual average value of inventory.

Final Note

Your small business accounts needn’t be confusing and having a basic understanding of your profit and loss statements and your balance sheets will not only help you make informed business decisions about your future, it will also give you a feeling of achievement and pride in seeing your business success on paper, in undisputable figures.

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My business has recently helped develop a unique and potentially ground-breaking new website called “War on Experts“. In the media and information saturated world we live in, this website has the potential to make a global difference by helping people identify reliable experts.

War on Experts officially launched earlier this week, so I sat down with the founder (who wishes to remain anonymous) to discuss this exciting new concept.

ADAM WOZNIAK: So, what is War on Experts?

WAR ON EXPERTS FOUNDER: War on Experts is a site for recording and monitoring predictions. People make predictions all the time. But they rarely get held to account for them. War on Experts is here to record these predictions and then see whether they come true or not.

AW: How did you come up with the idea for War on Experts?

WOE: I got sick of hearing political pundits continually predict things that never happen. The fact is that these guys know that they can predict all sorts of things and nobody will call them out if they get it wrong. If they are right, however, they tend to let people know that they were right.

I had the idea to have some way of recording all of these predictions, and going back to check if they are right or not. That way, we can see who just keeps getting it wrong, and perhaps make people realise which experts we should be paying attention to.

For example, after the election in Iran in 2009 there were all sorts of predictions being made. So-called experts were saying that it was the end of the regime and that protests in the streets would lead to another Iranian revolution.

None of this came true.

I had a feeling they were predicting what they wanted to happen rather than what would happen based on knowledge and evidence. I thought it would be a good idea to record these predictions to see who gets it wrong, and who gets it right. That’s what the site is about.

AW: Why is War on Experts such an important concept?

WOE: Well, sometimes bad predictions have real life consequences. The pundits who predicted that the Iraq war would go really well are the same people who are now making predictions about Iran and North Korea.

The same people who gave bad predictions about the economy back in 2008 are still making predictions about the economy today.

We shouldn’t continue giving these sorts of experts credibility and publicity. I hope we can call people out when they make bad predictions. If people are going to predict things like this, they should be held accountable. There should be some way to check them.

That’s what War on Experts is for.

The site can also show us how opinions and thinking on certain topics change over time. There was a time when people predicted that Fred Thompson would be the Republicans’ nominee for president in 2008. This might seem crazy today, but back then people really predicted that he would be president.

We can learn a lot about the past by looking at how people used to view the future.

AW: That’s a great point. So, what impact do YOU predict War on Experts might have in the future?

WOE: One day people will think twice about making a prediction, knowing that it will be recorded on War on Experts. But the site isn’t just about shaming people who got it wrong. It’s also about seeing who gets it right.

The site will be a way of knowing which pundits know what they are talking about, and which ones don’t. I believe this is incredibly useful information for not only the general public, but also for those who are in positions of power. Either way, it is important for all of us to know which experts can be relied on. Only then can the best decisions be made.

AW: Alright, well you better add that prediction to your website! Can you tell us a bit more about how the site actually works?

WOE: If you find a prediction online, submit it. The prediction can either be part of a video you have seen, or perhaps it’s part of a news article or blog post.

Either way, anyone can submit a prediction to War on Experts. The submission process literally takes about 60 seconds.

The site will work best when we have predictions on a range of subjects for all kinds of people. To do that, we need people to help us by letting us know about these predictions. So if your readers have an interest in this, or just want to see the site in action, I encourage them to come and visit us at www.WarOnExperts.com

AW: Thanks for your time, and I wish you great success with the future of War on Experts.

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From time-to-time I will be reviewing a business book here at the wecancreate blog. Since I am very selective about the books I choose to read (and hence review), you can be assured that I will only review books that I have personally found useful.

This week, I’ve just finished reading “Crush It: Why Now is the Time to Cash in on Your Passion“, by Gary Vaynerchuk. Let’s take a look.

Who This Book is For

There is no excuse for anyone … to slog through his or her entire life working at jobs they hate, or even jobs they simply don’t love, in the name of a paycheck or a sense of responsibility. The Internet makes it possible for anyone to be 100 percent true to themselves and make serious cash by turning what they love most into their personal brand. There no longer has to be a difference between who you are and what you do.

Gary Vaynerchuk makes a strong argument that this book is for EVERYONE. It’s for up and coming entrepreneurs. It’s for people who want to earn a living doing their true passion. And it’s even for people who are happy in their current employment.

This last demographic is an interesting one, and his argument behind it is that it’s time for EVERYONE to start thinking of themselves as a brand, regardless of whether they’re employed or not.

This book, while probably more targeted at individuals, could also be applied to bigger businesses. As long as those businesses are willing to step from behind their corporate masks and start engaging with communities in a personal and authentic way (without constantly trying to sell them something). Big businesses need to FINALLY understand the following formula:

Social Media = Business. Period.

Having said that, the book definitely is NOT for people who:

• are not prepared to work incredibly hard
• are looking for a quick “system” to getting rich on the Internet

So if you’re prepared to work hard, are passionate about what you do, and are patient, then “Crush It” is for you. I like the fact that this book is VERY upfront about that.

Contents

• Passion Is Everything
• Success Is in Your DNA
• Build Your Personal Brand
• A Whole New World
• Create Great Content
• Choose Your Platform
• Keep It Real … Very Real
• Create Community: Digging Your Internet Trench
• The Best Marketing Strategy Ever
• Make the World Listen
• Start Monetizing
• Roll with It
• Legacy Is Greater Than Currency
• Conclusion: The Time Is Now, the Message Is Forever
• Appendix A: Did You Forget Anything?
• Appendix B: Five Business Ideas I Won’t Get to – They’re Yours

Who Is the Author

Gary Vaynerchuk goes by many names. He’s been called the “Social Media Sommelier”, “the wine guru for the YouTube era”, and “the Wayne’s World wine aficionado” by global media outlets. Others just know him as the “wine guy”.

Having inherited a traditional wine business from his father, he turned it into a multimillion dollar business before launching his true passion – Wine Library TV – a daily video blog about wine.

He’s an entrepreneur, and an excellent example of someone who has been able to build a successful personal brand through the power of the web. He’s used his experiences over the last few years to also launch his own brand consulting company called VaynerMedia, as well as appear at numerous conferences and TV shows to talk about how people can capitalise on the power of social networking.

Speaking of his appearance on TV shows, I must admit – it is amazing (although slightly depressing) to see how middle-aged news anchors react with such resistance to Gary’s vision of business. It really shows how far in the dark ages some people are. You don’t want to become one of those.

To get a feel for what Gary’s personal brand is like, check out this video of a Web 2.0 conference he presented at. He really “crushed it” here:

Overview

The first generation built their brands on television and movie screens, radio, magazines, and newspapers, and the new one will do the same online at a much lower cost, with no need for a gatekeeper’s approval. Get into position, because the big killing is coming around the corner.

This book is a motivational semi-how-to guide on how to use all the social networking tools available online to really “crush it” and live your passion, while being happy and making a good living.

Even if you’re happily (or not so happily) employed, Gary argues that if you want to stay relevant and competitive in the coming years, you MUST develop and grow your own personal brand. A resume is no longer enough. It doesn’t differentiate what is special and unique about you. But a personal brand DOES.

Everyone … needs to start thinking of themselves as a brand. It is no longer an option: it is a necessity.

His main point is that the business world – and society itself – has changed dramatically in the last 10 years. Things that weren’t possible just 3 years ago are possible now, and at an incredibly low cost (often free!). Yet there are still a lot of people who are unwilling to understand the full impact of what’s happening here.

Never before has there been such tremendous opportunity for those who are passionate and prepared to work hard. Why? Because the web is destroying many of the past barriers. The “gatekeepers” are no longer in control of the media. They no longer control your access to the public.

Never before could you reach thousands of people, by YOURSELF, for FREE, in the space of a few minutes.

But that’s what can happen if you pump out great content and build online networks and relationships. Social media is, as Gary puts it, “word of mouth on steroids”. It’s a game changer.

With these communication platforms opening up, and with this low cost of entry (time, rather than money), qualifications, investment capital or family connections are no longer required to “crush it”. All you need now is passion, lots of hustle, and lots of hard work.

This last point he stresses a lot. Expect to be “bleeding out of your eyeballs at the computer” if you’re doing all of this the right way. But if you’re living your passion, you’re going to love working the hard hours to do it. If not, then you’re clearly not living your passion!

Gary basically believes we are in the middle of a gold rush, and the time to crush it IS NOW!

Some Tips from “Crush It”

Find your passion

Gary suggests that you focus on what is in your DNA to determine what your passion is. What is it that you feel you were born to do?

Too many people ignore their DNA, however, to conform to what their families or society expects of them. A lot of people also decide that professional success has to look a certain way. That’s how someone born to design bikes winds up becoming a lawyer …

Find your medium

Know yourself. Choose the right medium, choose the right topic, create awesome content, and you can make a lot of money being happy.

Once you know what your passion is, you need to find the medium that you’re most comfortable with. So, if you’re a great writer, write blog articles. If you’re animated and visually entertaining, do a video blog. Of if you’re a bit self-conscious around cameras, but love to talk, use podcasts.

Whichever medium you use, make sure you talk about what you’re passionate about. And even if you don’t feel you have the business skills necessary to “crush it”, remember the following:

Skills are cheap. Passion is priceless.

Create awesome content

Embrace your DNA, be yourself, put out awesome content, and people will be interested in what you have to say. Believe me, if you’re that good, people are going to find you, and they’re going to follow you, and they’re going to talk. And getting people to talk is the whole point.

What can you talk about

Great content is what you’re going to pump into your social media networks to draw eyeballs to your blog. It exists as a result of passion plus expertise, so make sure you can talk about your product like no one else. Do your homework.

You can even make the learning process part of your content.

Be authentic

Once upon a time the most popular celebrities were boxed up in such slick, sleek packages it was almost impossible to get a feel for their real personalities. Every move was choreographed, even their loves lives, and even when they weren’t on the red carpet they were red-carpet ready. Those days are long gone. The celebrities of today, the ones who are making it huge by connecting with their fans, whether on the screen or online, are all about keeping it real and being themselves.

Gary believes that authenticity is the absolute key to all of this. Your business and your personal brand need to be one and the same. There is no longer anything to gain by keeping information close to your chest. You’ve got to put it all out there.

Quality is the best filter

To everyone who is freaking out because they fear the noise and distraction of all the additional content on the Internet, you can relax. Quality is a tremendous filter. Cream always rises, my friends, no matter how many cups of coffee you pour.

Build your community

.. creating your content is the easy part. … What you do after you tape a show or write or record is the whole game. Creating community – that’s where the bulk of your hustle is going to go and where the bulk of your success will be determined.

According to Gary, you absolutely MUST have a blog if you want to “crush it”. But to build a community around it, you’ll not only need to create regular content, but you also need to reach out and interact with those people that will be a good fit for it. Then you can bring them back to your blog, your home.

In Chapter Six, Gary gives an overview of the major social media tools he believes you should be currently using to reach out and build your network. He talks about “Internet trenches”. Basically, every subject has an Internet trench out there. You just need to go out and find it. And the following tools will help you do that:

WordPress and/or Tumblr

Gary suggests you should use either of these for your main blog presence. This will be your home on the web. So make sure you use call to actions and share functions to help people spread your content easily to their friends.

Facebook

This is a “vacation home”. Create a Facebook fan page, rather than using your personal profile (because of the technical limitations), and use it to find people who are interested in your passion. But the ultimate goal is to lasso these people back into your main “home” – your blog.

Twitter

This is another “vacation home”. Its advantages are:

• it is mobile (much more so than Facebook)
• it has incredible endorsement power through retweeting
• it allows you to respond to customers immediately
• it is a great research and development tool
• it provides lots of opportunities for conversation
• its best use is to lure people to your blog

Flickr

Millions of people are constantly searching for images of things on flickr. If your passion is something that “photographs well”, Flickr can be yet another great “vacation home”. Its community features are also admirable.

YouTube and/or Viddler

YouTube is by far the market leader when it comes to online videos. But sometimes it can be beneficial to use smaller video websites like Viddler. Even though there are “less fish in the pond”, chances are that there are also less “fishermen”. So you could actually become a leading brand in your area on one of these smaller video services.

Viddler also has some great branding and tagging features, and because the community is smaller, it has better opportunities for your videos to be featured on the home page.

Ustream.tv

Gary believes this one is another potential game changer. Ustream provides a great opportunity for creating powerful and empowering interactive experiences with your brand in realtime video. We’re basically talking about one-on-one live video – which far exceeds what television was ever capable of.

Search.Twitter.com

This is probably one of the fastest growing search engines on the planet, and it presents probably the most intimate experience with a brand that is possible. It allows you to search for conversations that are happening in REAL TIME about your passion. Then it’s just a matter of entering those conversations.

Ping.FM

This is a great, free service that allows you to post your content to multiple social networking websites at the same time. Beats doing it manually one by one!

TubeMogul.com

This is a similar concept to Ping.FM, but it’s for online video instead. With a few clicks, you can share your latest videos across many different web video services. As an additional benefit, TubeMogul also offers great analytics to track useful stats about how your videos are performing.

Blogsearch.google.com

A specific search engine for blogs. This can help you find blogs related to your passion, so you can contribute to their communities, guest post, and build your personal brand.

Other interesting websites

Gary also states that even though Twitter and Facebook are now huge and household names, why not explore other similar types of sites where there are “fewer fish in the pond”? His examples include the following websites:

• Plaxo
• High Five
• Bebo
• Friendfeed
• Orkut

Basically, any platform “that has loads of search capabilities is an important place to find market opportunity”. Hence why he thinks Twitter and Flickr are such great platforms. Just remember,

Creating community is about starting conversations.

Ultimately, though, Gary nails probably the most important point about any of these platforms. Just having a presence on them doesn’t do anything to get you further ahead of your competition (despite what many businesses think). You need to differentiate yourself by doing your content better, and by being more passionate and authentic than anybody else doing the same thing. This is not something you can fake.

Building and sustaining community is a never-ending part of doing business.

Monetize your passion

You can monetize any passion, but the level at which you can monetize will be affected by the size of your niche and whether you are able to differentiate yourself enough from the other players in it. There are a lot of pockets out there today, however, that can sustain a nice forty-to-seventy-five-thousand-dollar-a-year business.

Gary’s approach is to focus on building a community first, then monitizing it. It took him almost 2 years before he started to monetize Wine Library TV. So he emphasises patience in this process. Far too many people approach these things directly from a monetization angle from the beginning.

If you enter a niche because you’re following the dollars, you won’t keep it up. It’s too much work, and you will get tired and frustrated and you will eventually fold. You have to think about building your brand in terms of a marathon, not a sprint.

But he believes that if you put in the sweat, and build a community, opportunities to monetize will present themselves. After all, “money follows eyeballs”. And once they do, you will have several major ways to monetize:

Advertising

Gary believes classy banner ads (ideally directly negotiated with the advertiser themselves) are the way to go, instead of mass advertising like Google Adsense (which doesn’t generate all that much money, and can make your site look cheap).

Speaking engagements and seminars

Gary believes that starting by doing free talks at conferences can be useful to build cred and spread your personal brand. Then, if you’re any good, people will eventually pay you to come and speak.

Affiliate programs

Selling other people’s stuff can also be a good way to make money. Commission Junction, the Amazon affiliate program, and the eBay affiliate program can be good ways to monetize (especially if your passion involves high priced items). But the best approach of all is to create your own affiliate deals.

Retail

Develop a product to sell around your passion.

Article marketing

Contribute articles to print magazines and blogs. While it’s rare to be paid for these, the benefit you’re getting is yet another opportunity to spread your brand, and bring more eyeballs to your blog.

Books and TV

It’s no secret that a select few bloggers manage to get book publishing and TV show deals. Whether or not that’s the best way to go depends. Some bloggers end up making far more money through their own channels, and the benefit of that is that they own their own content.

Consulting

Consulting is also another way you can monetize by helping people one-on-one to solve the same sorts of problems you’ve been able to solve. As you get more experienced, you can charge a bigger and bigger hourly rate.

But ultimately, just remember:

Business is not just about making money, and if you think it is, you’re broken.

What Could Have Been Improved

After reading this book, I could foresee the sorts of criticisms some readers might have.

The book is short

No doubt about it, this book is short. It’s just over 140 pages long, which possibly makes it one of the shortest business books I’ve read in a long time.

While I don’t believe that quantity trumps quality, with this type of short book I think the weakness is depth. The book could have perhaps gone into more detail about some of the strategies identified. For example, it talks about creating great content. But it doesn’t talk about what that great content should contain.

It might not be new to you

If you’ve read similar types of “new business” books, and books about social media marketing, etc, then you might not actually get that much more from this one.

Gary’s style

Some of the criticism that is levelled at this book (and, in fact, his entire personal brand) is that his style is brash and “in yo face”. Not surprisingly, this is the style that is associated with his personal brand. You either love it or you don’t, but at least he is being authentic. And that’s one of the points of this book.

Controversial statements

As with any of these sorts of business books, there are going to be many “controversial” statements. And if you’re new to a lot of these concepts, then they’re going to seem that much more “controversial”.

But if a book like this isn’t controversial, then it’s not doing its job. Some readers will embrace this, while others won’t be able to get past the claim that is made on the cover – the claim that you can, indeed, make a LIVING from your passion.

There are also other claims that Gary makes that might seem unpractical. For example, he claims to insist on PERSONALLY answering ALL emails he gets (and he gets at least 700 A DAY), and communicating with all his fans as often as possible, even if it means getting 3 hours sleep a night. Why he does this is obvious. It reflects the “personal brand” approach that he feels is so important. But it will be interesting to see whether he eventually reconsiders that approach. As he admits himself, it’s not exactly a scalable solution.

Personal background

Many people will discount all the advice in this book solely because they think that Gary was “born into riches” in the first place. Yes, it’s true that he inherited a wine business from his father, and that this business was already turning over a few million dollars a year. That’s an upbringing that few of us will be able to relate to.

However, there are just as many people (if not more) who have been born into relatively affluent families, and have instead chosen not to do anything with their lives. In my opinion, growing up in such an environment can sometimes do more harm than good. The fact that he built on it, and developed his own personal brand in the process, is a credit to him. After all, he could have just carried on as normal. But that wasn’t his passion. And that’s what this book is about.

Finding your passion

Probably my biggest complaint with this book is that it offers little insight into HOW to find out what your passion is. Gary figured out his passion from a young age. But beyond the “look at your DNA” solution he briefly mentions, there is not much more in this book about actually discovering your true passion. And for many people, I suspect finding their true passion is the number one problem they have.

But, in fairness, this book never makes that promise in the first place. It simply promises that it will help you cash in on your passion, once you know what it is.

So if you’re looking for a book that solely deals with finding your true passion in life, you’re advised to look elsewhere.

Rating

I choose to rate two factors: usefulness, and longevity. An overall rating is often misleading. For me (and probably for you), I need books that are useful AND will be something I refer to constantly over the next few years.

Usefulness 4/5

This book was a great, quick read. Its ultimate usefulness depends on the sort of information you have already surrounded yourself with. If you’re heavily into the various social media gurus around, and you consume their books and blogs day-to-day, you might not find as much value here as you would if a lot of the above info was new to you.

Regardless, even with my own deep interest and knowledge in these matters, I still took away quite a few nuggets of wisdom from this book.

What ultimately impresses me, though, is that this guy does what he preaches. He’s the real deal. I had a look at a handful of negative reviews of this book on Amazon, and was amazed to see that Gary himself was often the first person to comment on a reader’s review. But instead of taking things personally, or trying to defend his book against (often) completely baseless criticisms, he would personally apologise and offer to contact the reader personally (even by telephone!). Not surprisingly, he ended up turning some of these readers!

It’s really hard to not like what this guy has to say when you see this kind of “hustle” and passion. And when you think about these sorts of interactions more deeply, you see that it’s EXACTLY what he talks about doing in this book.

Longevity 3/5

I really liked this book, so I hate to give this a lower rating for longevity. But the reason for that is I believe that after reading this once (and really acting on what you’ve read), you probably won’t have much reason to return back to sections of this book (unless you’re looking for another hit of inspiration and motivation).

This is especially relevant when the social media tools he discusses eventually become superseded by something better.

Having said that, many of the underlying points in this book will be relevant no matter what social media platforms you’ll be using in future. This book shouldn’t be written off as a book that is only relevant in 2009 and 2010. It has far more value than that. And considering this is the first book in a 10-book deal he has signed, I’m looking forward to seeing his next offering.

But I will leave you with this important quote, in case the full impact of what Gary says in this book still hasn’t quite hit you:

The Internet is only fourteen years old or so … yet it has already crushed many of the biggest communication platforms known to humankind, and it’s not done. … it’s going to morph and change and reveal all kinds of surprises. You’ve got to be prepared to evolve and adapt along with it.

Buy “Crush It” Now!

* Just so you know, if you buy the book from this page, I get a tiny commission from the sale. How much exactly? Well, about enough to buy a used pack of chewing gum! But seriously, every little bit helps to fund future book purchases that I can then review for you.

Related posts:

1. Book Review: “Rework” by Jason Fried & David Heinemeir Hansson (from 37 Signals)

Have you ever noticed how many businesses are like politicians? This might sound like a strange concept, but hear me out.

What do you think of when you think of the average politician? What are the hallmarks of their public “brand”?

Well, usually it’s a mix of the following:

1) Untrustworthiness

There’s probably no such thing as an honest politician. We are, sadly, accustomed to politicians being guarded and secretive. We understand that they often have hidden agendas and plans that they desperately want to keep away from public knowledge. Hell, sometimes they just flat out lie.

2) False promises

Politicians are also known for making a lot of promises. Every election campaign, people inevitably complain that a politician has “not kept their promises”. Sometimes it seems like politicians promise almost anything to get a vote. They’ll use hollow slogans and catch phrases, but won’t back them up with any real action.

Many people would say that politicians only seem to be interested in one thing – getting re-elected. So if it takes lots of false promises and negative campaigning against the other candidates to win, then so be it. Who cares about the public, right?

3) Lack of authenticity

Have you looked closely at the body language of a typical politician? Something about them just doesn’t seem … real. There’s no authenticity there. There’s no humanity. No sense of humour. It’s almost robotic. Where’s the fun? Where’s the charisma? Where’s the engagement?

It seems like the typical politician is extremely afraid of being themselves. It’s far easier for them to rely on advisors, consultants, and committees to tell them exactly what they should say, word for word.

4) Trying to be everything to everyone

Not only is the average politician an incredibly poor public speaker, but they often have little concrete information to say. They seem to be too scared to stand for anything. Too scared to give everyone the wrong impression. Too scared to provide any content of substance.

In a sense, the typical politician is trying to be everything to everyone. And when that happens, it becomes harder and harder to differentiate what they’re selling compared to the others.

5) Resistance to change

The typical politician is slow to adapt. I would almost say “resistant to change”. It seems difficult for them to think too far ahead, especially because thinking that far means losing that instant gratification element that can be so addictive.

And when they don’t think too far ahead, they are more likely to follow the changing winds of opinion polls and trends. After all, it’s easier, right?

6) Lack of knowledge

The typical politician comes across a bit like a snake oil salesman. But if you quiz them long enough, you’ll often find a serious lack of substance and knowledge. Sometimes it takes months to discover that. Other times, it only takes a few seconds …

Arguably, a lack of knowledge can be forgivable from time-to-time. After all, no one should be expected to know EVERYTHING, and politicians are people too (or are they …).

But if that’s the case, a typical politician better have something to REALLY make up for it. And that needs to be charisma and strong interpersonal skills. Knowledge can always be increased by surrounding themselves with high quality advisors and consultants, and actually LISTENING to them. But a unique personality isn’t so easy to acquire.

After looking at the above list, it’s amazing we actually elect any politicians at all!

Let’s bring this back to YOUR business

Substitute the word “politician” with “business”, and “voter” with “customer” in the above paragraphs. Now ask yourself this:

• Is my business trustworthy? Or is it guarded and secretive? Why? What do I have to hide?
• Does my business over-promise and under-deliver? Do I just have mission statements and feel good slogans that don’t really mean anything?
• Is my business real? Am I authentic? Am I being myself and not hiding behind a corporate mask?
• Is my business trying to be everything to everyone? Have I instead focused on a niche?
• Is my business resistant to change? Does it just follow trends instead of focusing on the important?
• Am I knowledgeable about all aspects of my field? If not, do I surround myself with people who are? And do I make up for any temporary gaps in knowledge by offering my customers amazing service and a unique experience?

Ultimately, you have to decide whether you want to run your business like a politician would, or run your business like a REAL human would.

Just remember though – few people actually like politicians …

No related posts.

From time-to-time I will be reviewing a business book here at the wecancreate blog. Since I am very selective about the books I choose to read (and hence review), you can be assured that I will only review books that I have personally found useful. The style of my reviews is probably more similar to a summary of the book, so unlike a typical review, you can actually expect to get some wisdom out of these, regardless of whether you end up buying the book or not.

This week, I’ve just finished reading “Rework”, by the guys from 37 Signals. Let’s take a look at it.

First Impression

Brilliant. It’s everything that it promises it will be. Regardless of whether you’re involved in a web-based business or a “bricks and mortar” business, the concepts are transferrable to any industry or type of business.

Who This Book is For

This book is for anyone who has an interest in either starting their own business, or making changes to their current business to make it more efficient, productive, and successful.

Those of you who already like to think unconventionally about how to run your business will get a tremendous amount of tips here (although you will probably be familiar with some of them already from reading various blogs, etc).

Even more so, those of you who have come from a corporate/bureaucratic background will most likely find this book an incredibly eye-opening read (but only if you’re open-minded about the concepts presented – otherwise you will find yourself resisting a lot of these ideas).

In fact, I would go as far as to say that even if you’re an EMPLOYEE you still NEED to read this book. If only to tear out some of its pages and staple it to your manager’s head (before walking out the door to start living your passion)!

What Will You Get Out of It

“Rework” presents around 80 or so concepts (in short, easy to digest mini-essay format, complete with real-world examples) that will most likely clash with 99% of what we’ve all been trained to accept as “standard practice”.

Yes, it’s that good.

“Rework” is a blue print for how businesses should be run now, and in the foreseeable future. It might not be a step-by-step guide to starting and running a business, but the information presented here is more valuable than that. It will teach you concepts that will change your mindset, and allow you to see what you need to do in your own business.

Basically, the book argues that the old business methods are dead, and your business will be too unless it adapts to the concepts presented in this book. As the authors say, “it’s time to rework work”.

Who Are the Authors

The authors of “Rework” are Jason Fried and David Heinemeir Hansson from 37 Signals. If you’ve never heard of 37 Signals before, here’s a quick summary:

From Wikipedia:

37signals is a privately held web application company based in Chicago, Illinois, United States. The firm was co-founded in 1999 by Jason Fried, Carlos Segura, and Ernest Kim as a web design company. 37signals also produces a blog, Signal vs. Noise. Segura left in 2000 and Kim left in 2003, leaving Fried as the only remaining founder.

Since mid-2004, the company’s focus has shifted from web design to web application development. Its first commercial application was Basecamp; this was followed by Backpack, Campfire, and Highrise. 37signals also maintains two free-use web applications, Ta-Da List and Writeboard. The company was responsible for launching the open source web application framework Ruby on Rails, which it uses in its own applications. The products have follow the freemium business model.

The company is named for the 37 radio telescope signals identified by astronomer Paul Horowitz as potential messages from extraterrestrial intelligence.

To give you a feeling of the style of these guys, here’s a terrific video of David Heinemeier Hansson at Startup School 08:

Some Highlights from “Rework”

There are far too many highlights to include here, but I’ll list some of my personal favourites. Just following the advice below has the potential to change your business dramatically.

Planning is guessing

Here the authors attack the traditional “business plan”, choosing to instead call them what they really are – “guesses”:

Writing a plan makes you feel in control of things you can’t actually control. … The timing of long-range plans is screwed up too. You have the most information when you’re doing something, not before you’ve done it. Yet when do you write a plan? Usually it’s before you’ve even begun. That’s the worst time to make a big decision.

Their solution to this is to wing it, make decisions as they’re necessary, and focus on next week instead of next year. Plans are too inflexible, and chances are you’ll never refer back to them anyway.

Why grow?

Here the authors attack the traditional attitude that the bigger your business is, the more successful it is. A small business has advantages that a bigger business will never have. Advantages like flexibility, agility, and adaptability.

Small is not just a stepping-stone. Small is a great destination in itself. … Don’t be insecure about aiming to be a small business. Anyone who runs a business that’s sustainable and profitable, whether it’s big or small, should be proud.

Workaholism

“Rework” rightfully sinks the boot into one of the stupidest “diseases” we have created recently – workaholism (otherwise known as work for work’s sake). Workaholics are people who work insane hours (and frown upon those who don’t), burn the midnight oil, sleep at the office, effectively kill themselves over a project, and wear it all as some sort of badge of honour. As the authors sum up,

Working more doesn’t mean you care more or get more done. It just means you work more.

The authors point out that the above scenario is usually a result of workaholics not prioritising the most important tasks, and focussing instead on inconsequential details. And constant workaholism results in poor decision-making, inelegant solutions, and ultimately burn out.

Workaholics aren’t heroes. They don’t save the day, they just use it up. The real hero is already home because she figured out a faster way to get things done.

Scratch your own itch

The authors point out a good way of deciding what types of products and services you should offer:

The easiest, most straightforward way to create a great product or service is to make something you want to use.

Start making something

Here the authors attack those who only plan, talk, and fall in love with their ideas (without ever doing anything about them).

Ideas are cheap and plentiful. The original pitch idea is such a small part of a business that it’s almost negligible. The real question is how well you execute.

No time is no excuse

This essay perfectly applies to anything in life, and not just business. How often have you told yourself you can’t do something because you have no time?

When you want something bad enough, you make the time – regardless of your other obligations. The truth is most people just don’t want it bad enough. Then they protect their ego with the excuse of time. Don’t let yourself off the hook with excuses. It’s entirely your responsibility to make your dreams come true.

Besides, the perfect time never arrives. You’re always too young or old or busy or broke or something else. If you constantly fret about timing things perfectly, they’ll never happen.

Start a business, not a start-up

The authors really attack the concept of the startup here, and it’s one of their best points (although obviously controversial). They amusingly refer to the world of a startup as a “magical place” where expenses are “someone elses’ problem” until you figure out how to make money on your own. Their solution?

…don’t use the idea of a startup as a crutch. Instead, start an actual business. Actual businesses have to deal with actual things like bills and payroll. Actual business worry about profit from day one. Actual businesses don’t mask deep problems by saying, ‘It’s OK. We’re a startup.’ Act like an actual business and you’ll have a much better shot at succeeding.

Embrace constraints

Businesses often complain about their limitations. It might be a lack of capital, lack of equipment, etc. But that’s not necessarily a bad thing.

Less is a good thing. Limited resources force you to make do with what you’ve got. There’s no room for waste. And that forces you to be creative.

Focus on what won’t change

This is an interesting essay. The authors propose that too many businesses keep trying to follow trends and focus on the next big thing. The solution?

…the core of your business should focus on things that won’t change. Things that people are going to want today and ten years from now. Those are the things you should invest in.

Tone is in your fingers

Here the authors mention one of the major problems most people have – focussing and obsessing over tools and equipment, rather than focussing on what they’re going to do with them instead.

The content is what matters. You can spend tons on fancy equipment, but if you’ve got nothing to say … well, you’ve got nothing to say.

It’s not the gear that matters. It’s playing with what you’ve got as well as you can. Your tone is in your fingers.

Interruption is the enemy of productivity

We sub-consciously know this, yet we often choose to ignore it. The fact is that the reason most of us spend longer hours working is because we’re letting ourselves become distracted or interrupted.

The authors solution to this is to create more “alone zone” time. And doing that means blocking off outside distractions and interruptions, and letting go of “communication addiction” (eg. instant messages, phone calls, email, meetings, social networking, etc). It’s surprising how much you can get done in this “alone zone”. In fact, I’m in my own “alone zone” while I’m writing this review!

Your day is under siege by interruptions. It’s on you to fight back.

Sell your by-products

This is one of the best tips in the entire book. Its basic premise is that when you make something, you almost invariably make something else – a by-product. Sell that by-product!

Meetings are toxic

Here’s one of the pages you can staple to your manager’s head. It’s a brilliant summary of the uselessness of the typical meeting. Although the authors provide a way to solve that (if a meeting is REALLY necessary), their main argument about meetings is virtually bullet-proof:

When you think about it, the true cost of meetings is staggering.  Let’s say you’re going to schedule a meeting that lasts one hour, and you invite ten people to attend. That’s actually a ten-hour meeting, not a one-hour meeting. You’re trading ten hours of productivity for one hour of meeting time. And it’s probably more like fifteen hours, because there are mental switching costs that come with stopping what you’re doing, going somewhere else to meet, and then resuming what you were doing beforehand.

If you’re stuck in a bureaucratic corporate or government job, feel free to print the above paragraph and distribute it to your entire department!

Good enough is fine

Often, we look for more complicated solutions to problems than we need. Sometimes, the most mundane and simple solution can be the best.

Find a judo solution, one that delivers maximum efficiency with minimum effort.

Decommoditize your product

This, too, is one of the more useful concepts in the book. The fact is that if you’re successful, people will try to copy your business. The book’s solution?

… there’s a great way to protect yourself from copycats: Make you part of your product or service. Inject what’s unique about the way you think into what you sell.

The best businesses use this approach. Without it, the only thing you’ll have left is competing on price. And that’s a race to the bottom.

Build an audience

Also one of the most important concepts presented in the book.

All companies have customers. Lucky companies have fans. But the most fortunate companies have audiences. An audience can be your secret weapon.

The argument here is that when you develop an audience, you no longer have to spend ridiculous amounts of money on advertising to try to put yourself in front of people. Instead, your audience (read: customers) will naturally come to you because they already want to hear what you have to say.

This is one of the crucial changes to business in the last few years, but very few businesses still manage to do this successfully (or at all!).

Out-teach your competition

Instead of trying to outspend, outsell, or outsponsor competitors, try to out-teach them. Teaching probably isn’t something your competitors are even thinking about. Most businesses focus on selling or servicing, but teaching never occurs to them.

The argument here is that customers will be more loyal, and respect your business more, if you share your secrets, and teach them things they didn’t know before. Far too many companies hide their secrets, and it’s not doing them any favours. The one big advantage small businesses have over their bigger competitors is that they can use teaching to outmaneuver them, since teaching is not something most big businesses will ever do.

Nobody likes plastic flowers

This essay essentially talks about being authentic. Too many businesses are scared of being human.

The business world is full of ‘professionals’ who wear the uniform and try to seem perfect. In truth, they just come off as stiff and boring. No one can relate to people like that. Don’t be afraid to show your flaws. Imperfections are real and people respond to real.

Drug dealers get it right

Possibly one of the more (intentionally) controversial essays in this book, but its point is a solid one.

Drug dealers are astute businesspeople. They know their product is so good they’re willing to give a little away for free upfront. They know you’ll be back for more – with money.

Emulate drug dealers. Make your product so good, so addictive, so ‘can’t miss’ that giving customers a small, free taste makes them come back with cash in hand.

They’re not thirteen

This was one of my main gripes when I was an employee too.

When you treat people like children, you get children’s work. Yet that’s exactly how a lot of companies and managers treat their employees. Employees need to ask permission before they can do anything. They need to get approval for every tiny expenditure. It’s surprising they don’t need a hall pass to go take a shit.

When everything constantly needs approval, you create a culture of nonthinkers. You create a boss-versus-worker relationship that screams ‘I don’t trust you.’

What Could Have Been Improved

In the interests of balance – and it’s tough with this review, since I really do believe this book is a must-read – I’ll try and discuss things that could have been improved.

Firstly, there’s no doubt that a lot of the concepts presented in this book are going to be very difficult for many to swallow. There are so many concepts that are the complete opposite of what you would have been conditioned to believe about business. This will no doubt create resistance in the minds of some readers.

But that’s not really a weakness of the book. The book follows its own advice – make a statement, and have strong opinions. Otherwise no one will care about what you have to say. Just looking at some of the negative reviews on Amazon, it’s clear that some readers have strongly resisted the concepts presented in the book. That’s great. It shows that they’re scared of change!

So yes, while some concepts might be debatable for some (eg. the argument about startups is a tricky one – if everyone thought this way, there would be no Google, Facebook, Twitter, or YouTube), that’s a good thing. Either way, it means you’re going to be thinking a lot while reading this. You don’t have to agree with everything, but it’s important that you at least question existing assumptions. Just because certain things have been done a certain way for decades, doesn’t mean there isn’t a better way to do them now.

So perhaps the only two weaknesses I can point out in this book are as follows:

• I wanted to read more! Although this book is already at a perfect, digestible length (and it’s beautifully laid out and easy to read), I would have loved to have seen even more chapters. Having said that, that would contradict their own advice about keeping things simple, and only curating the best material for the final product. In fact, in the book they even mention that initial drafts were twice as long as the final book! So perhaps I will cut them some slack on that one!
• Even though the authors admit that they cut a lot from their initial drafts, in some places this could have been continued. What I mean by this is that there is some repetition throughout the book, where almost identical concepts are presented from slightly different angles. Perhaps that’s just my interpretation. It’s not really a major issue, but perhaps some of the remaining chapters could have been merged.

But again – the above is really scraping the bottom of the barrel. I’m honestly having trouble identifying any weaknesses in this book.

Contents

This book is split up into 14 chapters, each containing a list of mini-essays as follows (even just the headings will teach you something!):

First

• The new reality

Takedowns

• Ignore the real world
• Learning from mistakes is overrated
• Planning is guessing
• Why grow?
• Workaholism
• Enough with “entrepreneurs”

Go

• Make a dent in the universe
• Scratch your own itch
• Start making something
• No time is no excuse
• Draw a line in the sand
• Mission statement impossible
• Outside money is Plan Z
• You need less than you think
• Start a business, not a start-up
• Building to flip is building to flop
• Less mass

Progress

• Embrace constraints
• Build half, not half-ass
• Start at the epicenter
• Ignore the details early on
• Making the call is making progress
• Be a curator
• Throw less at the problem
• Focus on what won’t change
• Tone is in your fingers
• Sell your by-products
• Launch now

Productivity

• Illusions of agreement
• Reasons to quit
• Interruption is the enemy of productivity
• Meetings are toxic
• Good enough is fine
• Quick wins
• Don’t be a hero
• Go to sleep
• Your estimates suck
• Long lists don’t get done
• Make tiny decisions

Competitors

• Don’t copy
• Decommoditize your product
• Pick a fight
• Underdo your competition
• Who cares what they’re doing?

Evolution

• Say no by default
• Let your customers outgrow you
• Don’t confuse enthusiasm with priority
• Be at-home good
• Don’t write it down

Promotion

• Welcome obscurity
• Build an audience
• Out-teach your competition
• Emulate chefs
• Go behind the scenes
• Nobody likes plastic flowers
• Press releases are spam
• Forget about the Wall Street Journal
• Drug dealers get it right
• Marketing is not a department
• The myth of the overnight sensation

Hiring

• Do it yourself first
• Hire when it hurts
• Pass on great people
• Strangers at a cocktail party
• Resumes are ridiculous
• Years of irrelevance
• Forget about formal education
• Everybody works
• Hire managers of one
• Hire great writers
• The best are everywhere
• Test-drive employees

Damage control

• Own your bad news
• Speed changes everything
• How to say you’re sorry
• Put everyone on the front lines
• Take a deep breath

Culture

• You don’t create a culture
• Decisions are temporary
• Skip the rock stars
• They’re not thirteen
• Send people home at 5:00
• Don’t scar on the first cut
• Sound like you
• Four-letter words
• ASAP is poison

Conclusion

• Inspiration is perishable

Resources

• About 37signals
• 37signals products

Rating

This book is an excellent and important work, and I have no doubt it will serve as a useful reference whenever you find your business going off the rails. As famed guru Seth Godin mentions on the cover, “Ignore this book at your peril” (and ignore Seth Godin at your own peril too, by the way!). I couldn’t agree more.

As for rating this book, I choose to rate two factors: usefulness, and longevity. An overall rating is often misleading. For me (and probably for you), I need books that are useful AND will be something I refer to constantly over the next few years. I’m after more than just an entertaining and inspiring read. I want a book that I will refer to regularly.

Usefulness – 5/5

With over 80 tips and concepts, I’d be amazed to find someone who hasn’t learned something new from this book (apart from the authors who wrote it perhaps!).

Longevity – 5/5

This book will reward multiple readings. And I have no doubt it will be one of those useful resources that you will constantly refer back to. This book is a home run. Buy it now!

Buy “Rework” Now!

* Just so you know, if you buy the book from this page, I get a tiny commission from the sale…about enough to buy a used pack of chewing gum (I can offer you a piece, if you’d like)! But seriously, every little bit helps to fund future book purchases that I can then review for you.

Related posts:

1. Book Review: “Crush It” by Gary Vaynerchuk

How would you feel if I told you that by the end of today you can save your business approximately $2000? All you need to do is provide me with your credit card details … just kidding. :P

Okay, I’ll admit that the heading of this article sounds almost too good to be true. But stick with me here. Let’s start by taking a quick look at one of the major expenses associated with running most small businesses. Then we’ll look at how to reduce those costs with minimal impact to your business.

Software

Let’s face it, the typical small business these days needs quite a few software packages for day-to-day operations. This usually includes email software, office software, image editing software (especially for marketing), accounting software, and perhaps other communication software too.

The Typical Solution

A typical small business will probably automatically go for the following solution:

• Microsoft Office for all word processing, spreadsheet, presentation requirements (approximately $850)
• Microsoft Outlook for email and calendar requirements (included in the above price)
• Adobe Photoshop for all image editing requirements (approximately $1,200)
• MYOB for all accounting requirements (anything between $189 – $794, depending on your needs)
• a telephone for all voice communication (line rental costs, expensive call costs, etc)

Add all of that up and you’re looking at well over $2,000. That’s a lot of money, particularly if you’re a one-person small business, and particularly if you’re just starting out – when you can probably least afford it!

But what if I told you you didn’t need to buy ANY of the above software? And what if I told you that you could still achieve the exact same goals at a much lower cost? No, don’t worry – I’m not going to offer you counterfeit OEM software CDs from Taiwan. :P What I’m about to suggest, instead, are FREE alternatives to the software mentioned above.

Free Alternatives

OpenOffice – free office software

OpenOffice is a free, open-source office suite, developed with the assistance of big companies including Sun Microsystems, Oracle Corporation, IBM, and even Google. It’s been around since 2002 and has developed a huge following as a terrific alternative to Microsoft Office.

The OpenOffice suite includes:

• word processing software (alternative to Microsoft Word)
• spreadsheet software (alternative to Microsoft Excel)
• presentation software (alternative to Microsoft Powerpoint)
• database software (alternative to Microsoft Access)
• drawing software (alternative to Microsoft Publisher)

Some of these are so uncannily similar to their Microsoft equivalents, that you will barely notice the difference!

OpenOffice can even open and save documents as Microsoft Office files, so there are minimal compatibility issues. You can even save documents in PDF format, as well as do all the other types of things you can do in Microsoft Office. To read about other features, click here.

Looking for instructions or a manual for OpenOffice (even though it’s as easy to use, if not easier, than Microsoft Office)? Download them from here.

You can even save yourself lots of time by downloading any of the free business templates (eg. invoice templates, business cards, letters, etc) at the OpenOffice templates website.

Have I convinced you to try it yet? :P Give it a test drive and see what you think. OpenOffice is available for Windows, Mac, and Linux. Download the entire suite for free from the official OpenOffice website.

Google Gmail and Calendar – free email and calendar

One of the things OpenOffice doesn’t have is a Microsoft Outlook equivalent (eg. an email and calendar program). Thankfully, there is an even better alternative provided directly by Google called Gmail (widely considered to be the best online email software on the planet!), and you can use it in your browser (no need to install it on your computer). This has the added benefit that you can use it on any computer (or your mobile devices), and from anywhere that has an internet connection! To read more about Gmail, click here.

The great thing about Gmail is that once you have signed up, you will also have access to Google Calendar (an excellent calendar application that allows for group calendars, and even free SMS-notifications!), and Google Docs (a simple, online office suite that allows simultaneous real-time communication with your team members).

And yes – it’s ALL FREE!

Looking for instructions and quick tips on how to use Gmail like a ninja? Read them here.

Ready to try it out? Head over to the official Gmail website and sign up for a free account.

GIMP – free image editing software

GIMP is a free, open-source alternative to Adobe Photoshop. It has been around since 1996. Basically, it can do pretty much anything you’ll need in the image and graphics department. For more information about some of its many features, click here.

Looking for instructions and tips on how to use GIMP? Check the official manual here. If you just want some quick tutorials, then click here.

GIMP is available for Windows, Mac, and Linux, and you can download it from the official GIMP website.

GNUCash – free accounting software

GNUCash is a free and open source accounting software program that implements a double-entry bookkeeping system. It has similar capabilities to Quicken and MYOB, but also has features for small business accounting. You can check out a list of further features here.

The full GNUCash manual can be found here. If you’re after a quick guide, you can read one here.

GNUCash is available for Windows, Mac, and Linux, and you can download it from the official GNUCash website.

Skype – free voice calls

Last, but not least, we have Skype. It might not be open-source, but it’s still free, and it’s easily the leader in its field. Why use the phone for most of your business communication when you can use Skype instead?

You can voice call (or even VIDEO call!) other Skype users for free, and you can even phone real phone numbers too (these aren’t free, but are much cheaper than equivalent phone call costs). For a full list of the many other features, click here.

What I REALLY love about Skype, is that you can even set up an inexpensive voicemail system on it. This way you don’t always have to have Skype turned on to receive calls. For more information about this feature, click here.

If you miss the ability to actual have a real phone number (rather than a Skype username), then Skype has you covered too. For a very low price, you can get a real phone number (complete with your area code) that redirects to your Skype username. So your callers will never know the difference! Read about this feature here.

Skype is available for Windows, Mac, and Linux, and you can download it from the official Skype website.

Imagine the savings you can make on your normal telephone bill if you use Skype?! It really makes little sense these days to continue using traditional telephones for your small business. It’s a complete waste of money.

Summary

I have personally used the above 5 free alternatives for a few years now, and they are absolutely fantastic. Why spend $2,000 plus on software you don’t need, when you can get perfectly good alternatives above for free instead?

So, over to you now. Have you tried any of the above programs? What did you think of them? I’d love to know.

No related posts.

If you think this photo is confusing, then wait until you read about Trusts ...

In the last few tutorials in this series, we’ve taken a look at two of the four main business structures in Australia – the Sole Trader business structure, and the Partnership business structure. Now it’s time to look at another business structure – the Trust. The main benefit of operating a Trust is that it gives you flexibility in how income is distributed. 

Now, If you need a quick recap on what “business structure” actually means (and why it’s legally imperative!), make sure you take a look at one of my previous tutorials. Then, once you’re ready, it’s time to look at Trusts.

I would also like to make a few more important points before we continue:

Firstly, this tutorial is not about every type of Trust. Trusts are a complicated legal area, and I am not suggesting that everything you need to know about the law of Trusts will be found in this post.

Instead, I will be primarily focusing on using Trusts as part of RUNNING A BUSINESS. So if you’re looking at Trusts for other purposes (eg. family and domestic purposes only, and NOT business), then I encourage you to look elsewhere. Having said that, you still might get some general information here that might apply too.

Secondly, this tutorial does not intend to provide a comprehensive outline of the tax benefits of operating your business as a Trust. Tax planning is an area that you REALLY should get expert advice on. Everyone’s circumstances are different. The aim of this tutorial is to simply give you a general idea.

Lastly, I always mention the importance of consulting a lawyer, accountant, or other business consultant when dealing with any sort of business legal issues (hence the disclaimer I have at the start of every one of these types of tutorials). But I must say this – out of all the possible business structures, a Trust is probably the structure you would be REALLY unwise to try setting up without the assistance of a lawyer or other paid advisor.

Why do I say that?

Well, because if you don’t set up a Trust properly, chances are you will accidentally destroy the advantages that Trusts have over other business structures (and you may very well have the Government knocking on your door too …). This will all make more sense by the end of this tutorial, but I REALLY want to reiterate it here. Setting up a Trust without the services of a lawyer is probably going to end up in tears … but at least this tutorial should save you some time and money by giving you an understanding of the way Trusts work, before you go and consult a professional advisor.

What is a Trust?

Great question, Jimmy!

But seriously, Trusts are a VERY complex area. Even the basics of it can be difficult to understand. So we’ll break it down now, and try to simplify it as much as possible.

The first thing you need to remember is that a Trust is NOT a separate legal entity (unlike, say, a Pty Ltd Company – which we will discuss in the next tutorial in this series). And a Trust isn’t YOU either (eg. unlike a Sole Trader or Partnership structure).

Basically, a trust is a LEGAL RELATIONSHIP between one person and another person (or persons). The first person is called “the Trustee”, while the second person is called “the Beneficiary” (or “Beneficiaries” if there are more than one). The Trust is set up by a person called “the Settlor”.

Don’t you just love legal terms!

So, the TRUSTEE holds and deals with property (eg. this could be assets, income, etc) in a certain way for the benefit of the BENEFICIARIES. Think of the Trustee as a “middleman” in this equation.

Some Trust definitions

Before we continue, let’s briefly define some of these fancy legal terms further:

The Settlor: The person who established the Trust (usually a lawyer, but could also be a close friend). The Settlor should avoid being the Trustee or Beneficiary, otherwise some serious legal questions will be raised!

The Trustee: The person to whom property is conveyed in Trust for another. The Trustee can be a “natural person” (eg. you or me), or a “body corporate” (eg. a Company, such as a Pty Ltd Company). The Trustee holds property as the legal owner of it, but the Trustee holds the property for the ultimate benefit of the Beneficiaries.

It is actually fairly common for the Trustee to be a Company (corporate Trustee) for asset protection purposes (more on that later). The additional benefit of having a corporate Trustee is that it allows more than one individual (eg. the directors of a Company) to make decisions about how income/capital is to be divided among the Beneficiaries.

The Beneficiaries: Persons who do not hold the legal title of the property held in trust, but for whose benefit the legal title is held by the Trustee. Note that the Trustee CAN also be a Beneficiary, but CANNOT be the only one (otherwise, again, you will face some serious legal questions!).

A Beneficiary can also be a body corporate (eg. a Company) to provide further taxation benefits.

The Beneficiaries are generally not liable for the debts and liabilities of the Trust.

Legal obligations of a Trustee

There are many laws that govern the way a Trustee MUST behave and perform his/her obligations in a Trust. The law also outlines the “duties” the Trustee owes to the Beneficiaries. These types of duties are called “fiduciary duties”. They are special duties, and they are VERY serious. In many ways, they are also similar to some of the duties you would have as a Company Director or a partner in a Partnership. Basically, what this all means is that you can’t just do what you want!

So as a Trustee, you actually have the following legal obligations and duties (among others):

• to act in good faith
• to avoid conflicts of interest
• to make full disclosure to Beneficiaries
• to not make a secret profit or gain
• to keep proper accounts
• to act in the best interests of the Beneficiaries

The last duty mentioned above really sums up the entire relationship. As a Trustee, your obligation is to place the interests of the Beneficiaries FIRST. Your interests (as a Trustee) are only secondary in this relationship. You MUST remember that.

Additionally, a Trust is usually governed by an instrument (not musical, obviously …) called the Trust Deed. This Deed is a written, legal document (usually created by a lawyer) that outlines how the Trustee must perform their obligations in the specific Trust arrangement that has been set up. So apart from having to act in accordance with various Trust laws and fiduciary duties, as a Trustee you must always operate within the confines of the Trust Deed.

Trust deeds

So to set up a Trust, you WILL need a Trust Deed. This legal document will outline the purpose of the Trust, the property involved (eg. assets, income, etc), the rights and obligations of the Trustee and Beneficiaries, the rules within which the Trust must operate, and the way assets and income will be distributed to the Beneficiaries.

Generally speaking, it is probably unwise to consider setting up a Trust Deed without the services of a lawyer. However, there are websites that allow you to create your own Trust Deed through a guided template. Naturally, it is your decision if you choose that sort of option. I haven’t provided any links to such websites here, because I do not wish to be seen to endorse any particular website.

Trusts in business

Okay, so now you know what a Trust is, and you have some basic information about what’s involved. But I’m guessing you’re probably thinking, “what the hell does this have to do with running a business?!”.

Well, first of all – calm down, Jimmy. :P

On the face of it, it might look like setting up a Trust is completely irrelevant to running a business. But that’s not necessarily true.

Sure, Trusts are often created for other reasons (eg. family Trusts), but Trusts can also be used to carry on a business (or can form part of a more complicated business structure that incorporates a Company structure).

Let’s look back at the equation I mentioned a little earlier:

The Trustee holds and deals with property in a certain way for the benefit of the Beneficiaries.

Let’s replace the word “property” with “assets” or “income” (as an example).

So now we have something like this:

The Trustee holds and deals with assets and distributes income in a certain way for the benefit of the Beneficiaries.

So, realising that, and looking back at some of the definitions earlier (which indicate that the Trustee CAN be ONE of the Beneficiaries), we can see that it’s possible to set up certain beneficial arrangements. For example, you could run a business as the Trustee, and have several family members or business partners (including yourself) as the Beneficiaries of the profits.

Why would you do that, you wonder? What is the point?

We’ll look at advantages shortly (as well as disadvantages …), but primarily it’s important to realise the main benefit of operating a Trust. A Trust gives you flexibility in how income is distributed.

That’s really it.

This means that a Trust gives you the kind of tax planning flexibility that other business structures don’t. A Trust can also provide a form of asset protection (especially if the Trustee is a body corporate instead of a natural person), in that assets and income are technically held for the benefit of the Beneficiaries – which means that they can’t be touched by creditors, etc. HOWEVER, there are some exceptions to that statement. It’s NEVER that black and white!

So a Trustee in this sort of Trust arrangement owns the assets of the business, and carries on the day-to-day business activities on behalf of the Beneficiaries.

Naturally, you can see how there is scope here for misuse, and you can start to see why Trusts aren’t always given a good name. It’s true that many people have abused Trusts and have faced the rather serious legal and financial consequences.

I am by no means suggesting that you even attempt to do something that stupid! But’s it’s important to realise that many types of Trust arrangements can very easily border on illegality (or, at the very least, they might simply be unethical …). This is why it’s SO crucial to consult a lawyer before you contemplate setting up a Trust.

Advantages of a Trust

Generally speaking (and without looking at any SPECIFIC types of Trust), the advantages tend to be:

• flexibility of asset and income distribution
• asset protection
• easier to transfer assets
• can safeguard certain social security payments for Beneficiaries (did someone say “Trustfund babies”…?)
• reduced liability (especially if the Trustee is a body corporate)
• Trustee retains control of management and assets
• privacy
• great benefits for family (if they are involved in the Trust – eg. family businesses)
• ability to pass wealth from one generation to another
• taxation (facilitates income-splitting, and other tax minimisation strategies)

Disadvantages of a Trust

Not surprisingly, there are also many disadvantages in using a Trust for your business structure:

• expensive to set up and run (should REALLY use a lawyer, etc)
• complicated / complex legal structure
• difficult to make changes to the structure once set up
• compliance and running costs
• can be difficult to close down
• lots of paperwork
• lots of regulations and laws to adhere to
• can’t hold onto profits to “grow” the business, as these will incur penalty tax rates
• can’t distribute losses, only profits
• limited life of Trust Deed
• inflexibility since powers restricted by Trust Deed and the law

But the advantages and disadvantages mentioned above can be affected by the TYPE of Trust you select.

Types of Trusts

So to complicate matters further, there are several types of Trusts. For the purposes of this tutorial, we will only look at private Trusts (rather than Public Trusts – such as ones created for charitable purposes, or ones that are listed on the stock exchange, etc).

The most common types of Trusts for business purposes include Discretionary Trusts, Fixed Trusts, and Unit Trusts.

Discretionary Trust

This is also called a “Family Trust”. Primarily, people use a Discretionary Trust for the benefit of their families (and this can, of course, involve scenarios such as family businesses).

The primary feature of a Discretionary Trust is that the Trustee determines which Beneficiaries receive income/capital, when, and how. So there is no fixed entitlement for each and every Beneficiary – only the ones selected by the Trustee. In many ways, this type of Trust can be the best option – as it gives the Trustee flexibility in distributing assets and income.

Of course, the major weakness reveals itself when problems begin to emerge in the family unit!

Fixed Trust

As the name suggests, in a Fixed Trust the Trustee must distribute assets and income in specified proportions to Beneficiaries strictly in accordance with the terms set out in the Trust Deed. The disadvantage of this, obviously, is that there is no discretion whatsoever in the way the Trustee distributes assets or income.

Unit Trust

This can be the best type of Trust for non-family businesses. A Unit Trust is usually used for larger trusts. It has some similarities to shareholders holding shares in a company. But here you have Beneficiaries (instead of shareholders) holding “units” (instead of shares) in the Trust (instead of a Company). All units have a pre-determined value (like shares), so that way those Beneficiaries who hold more units are entitled to a greater (and fixed) share of assets and income.

This type of Trust is an excellent solution if you want to have partners in your business (and especially partners who are NOT your family members). It also provides more flexibility for Beneficiaries to enter and exit the Trust. They can transfer their units to others as easily as a shareholder can transfer their shares in a company.

So, how do I set up a Trust then?

Just like some of the other business structures (Sole Trader and Partnership), you will need an ABN, a TFN, and a business name for the Trust. For more information about how to apply for these, make sure you visit the ABN, TFN, and business name sections of either the Sole Trader or Partnership tutorials in this series.

You will also need to set up a Trust Deed (as mentioned previously).

Additionally, depending on the complexity of your Trust, you will probably be advised to register your actual business separately as a Company, and then set up a Trust to protect assets and distribute income in a certain way.

This probably sounds confusing and complicated – and it is. This is why you really should consult professional advisors if you’re serious about using a Trust in your business.

Should I use a Trust for my business?

Obviously, only you can know that. This tutorial is not intended as a full guide to the features of setting up a Trust for business (or any other purpose, for that matter), but hopefully it gives you some idea as to where to go next.

Your decision whether to structure your business using a Trust will most likely depend on the importance you place on the various items listed in the advantages and disadvantages mentioned earlier. Additionally, a Trust will generally be more useful when you are dealing with large amounts of property and money. Why? Because the following factors then become important:

• asset protection (especially if you have substantial assets that you want to protect)
• tax planning (ie. minimising taxation obligations and taking advantage of existing laws)

These are often the two major reasons for choosing a Trust as your business structure.

Regarding asset protection, you could put your business assets in a Trust for added protection, while running the day-to-day operations as a Company. Yes, this involves two structures, but it’s one that potentially maximises the advantages of both. Trusts can also be used as a vehicle for buying and selling other businesses (because it has tax advantages).

Regarding tax planning, the main advantage of a Trust is that it usually pays no tax itself (especially when it distributes all of its profits to the Beneficiaries each year). But there are always exceptions.

Additionally, a Trust allows the Trustee to take advantage of tax-free thresholds and lower personal tax rates for Beneficiaries. So the Trustee can then distribute assets and profits to family members, and/or other business associates in a way that minimises the amount taxed for everyone. In other words, the profts can be distributed to other members using PRE-tax dollars, rather than POST-tax dollars.

However, the above is an oversimplification of the taxation issues involved in a Trust. This is merely a quick summary. Remember, tax can be very complicated, and especially when you start dealing with things like Capital Gains Tax (CGT), etc. Expert advice from a paid professional is absolutely essential!

As you can imagine, the above features of a Trust are what makes them attractive for some people to use for tax evasion (or even money laundering!) schemes. It might seem like a Trust is a great way to siphon funds to yourself, screw creditors, and minimise your taxation obligations. But unless you want to become an accidental television “star” on the news, I’m hoping that you are thinking of creating a Trust for LEGITIMATE reasons!

There are, no doubt, other reasons (besides asset protection and tax planning) why you might (or might not) want to use a Trust for your business. You need to explore those with a professional paid advisor.

But hopefully this tutorial has served as a useful starting point for you – and it might help you understand what the hell your lawyer is talking about! :P

What if I don’t want to use a Trust?

The above are the basics of structuring a business as a Trust in Australia. Naturally, it’s important that you also consider the merits of the other three major business structures (and especially if setting up a Trust does not appeal to you – it’s definitely not for everybody!). It’s important that you consider your options carefully.

Additionally, you will usually find that using the Trust option will probably require you to ALSO use a corporate structure too (eg. for the Trustee and/or one of the Beneficiaries). A corporate structure always has that added level of protection due to its existence as a separate legal entity. After all, a Trust is only a legal relationship. It is NOT a legal entity.

Either way, remember that selecting a business structure is NOT an optional step if you want to ensure your business has been set up PROPERLY and LEGALLY. Some groundwork now will save you a whole lot of potential headaches in future. Besides, having a business structure makes your business look more professional and reputable.

In the next tutorial in this series, we will be looking at another type of business structure – the Company structure (eg. Pty Ltds companies, etc). In the meantime, if you’re also interested in other business structures,  make sure you check out the Sole Trader tutorial and the Partnership tutorial too.

Related posts:

1. How to Start a Business in Australia – Choosing a Business Structure (Partnership)
2. How to Start a Business in Australia – Choosing a Business Structure (Sole Trader)
3. How to Start a Business in Australia – Introduction

If you read a book on leadership, or even google “what makes a great leader”, here are the typical types of responses you’ll get:

A person who has:

• desire
• vision
• creativity
• expertise
• respect for others
• problem solving abilities
• self-confidence
• communication skills

*Yawn*

This reads like the selection criteria of some boring government job. They’re just words. They don’t mean anything. They’re vague and ambiguous.

Now, I’m not denying that the above are very important elements in what makes a great leader. But they’re too general. I have a new theory of leadership (one that basically incorporates all the above by default). I would like to propose the REAL secret to what makes a great leader.

And here it is …

The Typical Business “Leader”

But first, let’s consider the typical, text book type of business. This kind of business probably tries to implement methods that make it appear bigger than it really is. It will probably start to implement more and more bureaucratic processes as time goes on, because apparently that’s what defines a professional business. And that’s what others are doing too, right?

As part of the development of these bureaucratic processes, less and less action begins to happen.

Suddenly, team members lose their autonomy. Now they aren’t allowed to just make their own decisions, they have to take it to a committee, where several suits will debate the decision for hours, simply to try and justify their own positions in the business. Then compromises are made, and an overall decision is made, and it’s made in such a way that no one takes ownership over it for fear of being blamed for the consequences of any bad decisions. And this whole process takes an ETERNITY.

I could go on … but I won’t. It’s too painful!

Many of you reading this have probably had these kinds of experiences before, most likely while working in the corporate sector, or – even more likely – for government. Bureaucracy and inaction is a way of life in these places. And the way you become a leader in those types of environments is simply by accepting these ineffective processes, and continuing them once you’re offered a role in management (because by then you’ve proven that you’re a “team player”).

And what gets achieved ultimately?

N-O-T-H-I-N-G.

Everyone just spins their wheels, little genuine action is ever taken, and people begin to despise the “leader” because he/she is most likely completely incompetent at making decisions and taking action. Is that the type of leader you want to become in your OWN business?

So what makes a great leader then?

A Great Leader Generates MOMENTUM

I believe that the BIGGEST single feature of being a great leader is the ability to GENERATE MOMENTUM (eg. ACTION). Leaders should be “momentum creators”. How that momentum is generated is determined by the individual style of the leader.

For me, it’s through making things fun (or at least trying to!), taking decisive action, and having a sense of humour about it all. I’m not a serious individual overall, so why should I hide my personality from my business? Screw the business “professionals” and their textbook management styles. I’m trying to help people and make life fun – I’m not trying to put people in a coma!

Your style might be different, but the goal should still be the same – GENERATE MOMENTUM.

Without MOMENTUM, nothing will happen. You and your team may have good intentions, but a great leader needs to GENERATE MOMENTUM and he/she needs to do it CONSTANTLY. Action needs to happen. Bureaucracy prevents action. Bureaucracy is your enemy.

I have had the opportunity to test this theory out on many different projects in the past, and it absolutely works. Even when the initial outlook on a particular project was OVERWHELMING, momentum helped make the magic happen.

And once you build up that momentum, it becomes a run-away freight train (you know, like that movie, “Money Train” … minus the “freight”…). And this run-away freight train, with all its people on board, has no choice but to reach the final destination. Once it’s moving, not even the leader can stop it. So a fantastic thing happens with this approach – you get taken on a ride with your team, and you eventually complete the project – NO MATTER HOW OVERWHELMING THE PROJECT ALWAYS SEEMED.

So if this becomes a run-away freight train, what does bureaucracy become?

It becomes a clown car. It’s full of too many clowns who just sit there doing nothing. As a result, the car doesn’t go anywhere, and everyone on the outside laughs at how absurd it all looks.

So, to reiterate one last time, great leadership is about THE ABILITY TO CREATE MOMENTUM.

What do you think of this concept? Am I on to something, or am I just blowing smoke up your …

No related posts.

In the last tutorial in this series, we looked at one of the four main business structures in Australia – the Sole Trader structure. Now it’s time to look at another business structure – the Partnership. 

If you need a quick recap on what “business structure” actually means (and why it’s legally imperative!), make sure you take a look at my previous tutorial in this series. Then, once you’re ready, it’s time to look at Partnerships!

Partnership

In my previous tutorial in this series, I mentioned that the main underlying concept of operating as a Sole Trader was the fact that as a Sole Trader YOU (and ONLY you) are the business.

In many ways, a Partnership is similar – but the difference is that TWO or more people TOGETHER are the business. This is both the main strength, AND the main weakness. :P

The way the law likes to define a Partnership is “the relationship which subsists between persons carrying on a business in common with a view to a profit”. So in other words, YOU ALL own the business, YOU ALL are directly in control of everything, and all money the business makes belongs to ALL OF YOU JOINTLY (although all of these things can be modified somewhat through the use of a Partnership Agreement … more on that later).

But remember – just like with the Sole Trader business structure, with a Partnership the business is NOT a separate legal entity either (although from an accounting point of view it should certainly be treated as separate, otherwise it just gets too messy).

Limits of a Partnership

By law, the size of a Partnership is not unlimited. Generally speaking, a Partnership is limited to between 2 and 20 partners. However, there are some interesting (and bizarre!) exceptions.

For example, according to the Corporations Regulations 2001 (Cth), a Partnership can consist of:

• 50 actuaries, medical practitioners, patent attorneys, sharebrokers, stockbrokers or trademark attorneys;
• 100 Architects, pharmaceutical chemists or veterinary surgeons;
• 400 legal practitioners (God help us all …)
• 1,000 accountants (need I say more …)

Now, let’s look at some of the advantages and disadvantages of setting up a business as a Partnership.

Advantages of a Partnership

Starting business as a Partnership can be almost as simple as starting off as a Sole Trader. Both these structures are the simplest ways to structure your business.

Advantages of forming a Partnership include:

• It’s relatively easy to set up (I’ll tell you how shortly)
• There is less paperwork (in comparison to business structures like Trusts and Companies)
• It’s inexpensive
• There is less government interference and regulation (at least in comparison to a Company)
• It offers more privacy (in comparison to the reporting requirements of a Company)
• There is less need for hiring lawyers, accountants, and other consultants (at least in comparison to a Trust or Company)
• There is a broader management base (compared to that of a Sole Trader), which also means a wider pool of expertise, shared risk (which can be both good and bad…) and more sources of capital
• There may be tax planning advantages (such as income splitting)

Obviously, the above are broad generalisations, but they should give you a good idea of why some people choose this business structure.

And just like a Sole Trader, in a Partnership you can still employ people (NOT partners though – partners CANNOT be employees of the business), engage other contractors, apply for financing (although this last part might be more difficult compared to a Company), and do many other things. Again, there is a lot you can do.

And when your business expands, you can always change the business structure more easily than if you had set up the business as a Trust or Company.

So, what’s the catch, I hear you say?

Disadvantages of a Partnership

Interestingly enough, the main strength of the Partnership structure (eg. having more than one person in control of the business) is  probably also the main weakness!

Why? Well,  each and every one of you (as partners) has control of the business. This also means that each one of you is an “agent” for the business. This is where the law of “agency” can become an issue.

Since all of you have authority as joint owners, each one of you can contract with a third party (without the knowledge of any of the other partners), and you will ALL then be bound to that contract, regardless whether the partner in question actually had the permission of the other partners.

Naturally, this means that each and every one of you face the very real prospect of becoming personally liable for a bad business decision made by any one of the other partners (even if you didn’t know about it!). In fact, one of the “features” of a Partnership is that all partners are “jointly and severally liable” for all debts and liabilities incurred by the business. A Partnership can, of course, make it easier to pay off such debts, since all partners take a share of this risk.

But what if we take the example mentioned earlier even further … what if one of the partners decides to pack it in, clean out the assets of the business, and then flee to Majorca? Well, that’s too bad for you and the other partners. The Partnership will still have all its liabilities to pay off, and the remaining partners will be liable to pay off your scumbag partner’s share of the debts too (unless you are able to track down and sue the absconding partner for his/her share of the debts).

And if we take this example EVEN further (please let me indulge myself here…), if your remaining partners decide to follow the excellent example set by the partner now living up the high life in Majorca, you will then be left holding the ball. Since as a partner you are jointly and severally liable, this now means that you will become personally liable for ALL the debts and liabilities of the entire Partnership (unless you can track down the other partners and sue them for their share of the problems)!

Anyone who wants to sue the Partnership won’t care where the other partners are, and they are under no obligation to follow that up. They can sue whoever they want – and they will probably sue the person who is easiest to get to. In other words, all partners are “jointly and severally liable” for any debts or liabilities the Partnership incurs. And, just like the Sole Trader business structure, as a partner in a Partnership you have unlimited personal liability if anything goes wrong with the business.

In fairness, the above situation can be controlled (to a limited extent) with appropriate insurance cover. Additionally, you CAN actually avoid personal liability altogether in a Partnership by becoming a limited partner. But more on that shortly.

Other disadvantages of forming a Partnership include:

• Lack of continuity
• Divided authority (can be a good thing or a bad thing)
• Friction between partners, personality clashes, etc
• Limitations on size (generally speaking the maximum number of partners in a Partnership is 20, but with some exceptions …)
• Less flexibility in transferring ownership interest
• Bankruptcy or death ends a partnership. Partnership must then be re-formed (which incurs costs, paperwork, and lots of time …)
• If a partner absconds or dies, other partners are left with that partner’s debts and liabilities (as discussed above)
• Transfer of ownership is difficult
• Adding partners is difficult – generally requires the agreement of all partners
• If a partner decides to dissolve a business, it may bring the Partnership to an end
• If a partner wants to join or leave, all the partnership assets, etc may need to be valued (which is costly and time-consuming!)

Looking at the list above probably makes a Partnership seem like a very unappealing proposition. But it doesn’t have to be, and ESPECIALLY if you consider what is at the crux of most of the above negative points – a combination of lack of organisation, lack of communication, and – consequently – lack of trust.

A Partnership Agreement can be used to counter many of the above disadvantages, or at least make provision for what should happen if certain scenarios ever arise. More on Partnership Agreements shortly.

Limited Partnership

For the most part, this entire tutorial deals with Partnerships consisting of what the law calls “general partners”.

There is, however, provision to set up an alternative form of Partnership called a “Limited Partnership”. Unlike a general Partnership (which I have simply referred to as “Partnership” throughout this tutorial), a limited Partnership actually needs to be separately registered with your State’s Fair Trading Office/Consumer Affairs department (almost every State/territory calls it something else … the joys of Federalism …).

A limited Partnership must consist of at least one general partner, and one limited partner. A Partnership (of any kind) can only have a certain maximum number of general partners in the business (which I will discuss shortly), but there are NO limits to the number of limited partners that can be involved in a limited Partnership.

However, limited Partnerships are only an option in certain States/Terroritories in Australia (again, the joys of Federalism…). These are as follows:

• the Australian Capital Territory
• New South Wales
• the Northern Territory
• Queensland
• South Australia
• Victoria

If you’re planning on starting a business in any of the other States, then you’re out of luck – you will simply need to settle on a general Partnership (which is what the rest of this post deals with anyway).

To recap the differences between a general partner and a limited partner: a general partner is simply the type of partner I have referred to throughout this tutorial. Basically, a general partner is a full partner in the Partnership, and hence has managerial control and authority to act on behalf of the business. A general partner also has the personal liability issues mentioned earlier.

A limited partner, however, does not have such powers, or liabilities. A limited partner cannot take part in the management of the business, and generally has no authority to act on its behalf (although some of these things can be modified to an extent with a Partnership Agreement). But, more importantly, a limited partner has LIMITED liability (which counters a lot of the disadvantages mentioned earlier).

So, why would anyone consider a limited Partnership then?

For the most part, limited Partnerships are useful in situations where potential partners simply want to contribute capital and share in the success of the business (but without having control or authority in the business). In many ways, a limited partner is more like a passive investor in the business. They take a risk in providing the business with capital (eg. to help launch or grow the business), but if things go wrong they do not have the liability associated with general partners. If they did, this would not encourage investment!

The above is a really simplified explanation of limited Partnerships, but it hopefully gives you a general (or should that be “limited” – woohoo, lame pun!) idea of what limited Partnerships are.

There is also a more complex version of this kind of Partnership called an “Incorporated Limited Partnership” (where the Partnership actually becomes a separate legal entity like a Company), but I will not discuss that here. Anyone considering such an advanced structure will generally be doing so because they are considering a joint venture with another business (or businesses). And if that’s the case, you really should be arranging appointments with lawyers, accountants, and other business advisors right now!

Partnership Agreements

It is nice to think that your word alone is good enough to form the trust required to run a Partnership. But let’s face it – a written document that CLEARLY outlines all important aspects in this sort of relationship will ALWAYS be a better option. It’s like marriage – you’d be crazy to go into it without a pre-nup! It’s a simple risk management strategy. Remember – statistically, there is a STRONG possibility that something will eventually go wrong. And when that happens, you’ll be kicking yourself if you didn’t have that initial agreement set down on paper!

So think of a Partnership Agreement as a form of a protection … a form of insurance for ALL of you in the Partnership.

Yes, drafting a good Partnership Agreement DOES take time. It will also most likely require the services of a lawyer (did I just hear you groan …?) or other business consultant. So it will probably also cost a bit to get right. You DON’T have to use the services of a lawyer, etc to draft a Partnership Agreement – but since it will probably be used in some sort of legal context eventually, it’s probably a good idea to use a lawyer from the very start.

Remember, though, that a Partnership Agreement isn’t actually compulsory (unless you’re forming an Incorporated Limited Partnership – which I am not covering in this tutorial). Should you wish to proceed without a Partnership Agreement, then you can.

HOWEVER, realise that in the absence of a written Partnership Agreement, the law will consider you all to be EQUAL partners in the business (both from a management perspective, and also from a profit/loss and liability perspective). This might become especially problematic if profits are to be distributed in a certain way that isn’t intended to be equal.

So, what sorts of things can be included in a Partnership Agreement?

Elements of a Partnership Agreement

A typical Partnership Agreement may include some of the following key items:

• Names and addresses of all partners
• Nature and purpose of the Partnership business
• Name of the Partnership business
• Business address
• Start date and duration of the Partnership
• Capital to be contributed to the Partnership by each partner
• How profits and losses will be shared among the partners
• Arrangements for Partnership salaries/drawings/income
• Managerial roles of each partner
• Any limitations on the authority of each partner in making decisions or signing financial and legal documents
• How decisions will be made by the Partnership
• Agreement to engage certain consultants, such as a lawyer, accountant, or other business advisor in certain matters
• Accounting details for the Partnership
• Details of bank accounts for the Partnership
• Provisions for the death, bankruptcy, or retirement of a partner
• Provisions under which partners can change or assign their interest in the Partnership
• Provisions for dispute resolution between partners
• Provisions for the addition of new partners
• Provisions for the dissolution of the Partnership (including the method of valuation and distribution of assets, etc)

The above is a summary of some of the key elements a Partnership Agreement should contain. Again, it is adviseable to seek the services of a professional to assist with drafting such an important document. The last thing you want to find out when the proverbial hits the fan is that your Partnership Agreement has missed a key item, or is even completely invalid from a legal point of view!

Should I Set Up My Business As a Partnership?

Obviously, only you and your potential partners can know that. I cannot advise you on what YOU should do. This tutorial is not intended as a full guide to the features of operating a Partnership, but hopefully it gives you some idea about what to look out for.

Additionally, WHO you partner with will be crucial.  Should you simply partner with some friends or your family? Probably not. You need to approach this with your sharpest business mind, and base your decision on more than just “friendship”. There are many examples of friends falling out soon after setting up a Partnership. Some of this might simply be attributed to a lack of thought and discussion between the partners beforehand. They may have just assumed that since they are friends and get along, that this will automatically transfer to the serious business relationship that is a Partnership. But it generally won’t.

So basically you need to TRUST your partners, and you need to be on the “same page” regarding your goals for the business. Sounds simple, but it is often overlooked in the rush of enthusiasm at the beginning. Remember – running a business properly is a hard “slog”.

If, however, you CAN find partners to work with that you can trust, and that you have had serious discussions with about forming a Partnership, then you also need to make sure that the advantages of setting up as a Partnership outweigh both the disadvantages, and also the advantages of running other business structures (eg. such as a Company).

There are, no doubt, other issues you will probably need to ponder too (depending on your individual circumstances and also the industry you want to operate in). But hopefully the above gives you a useful starting point.

So, How Do I Set Up a Partnership Then?

First of all, you need to decide if you want to run the Partnership business under just the names of all the partners (eg. “Adam Wozniak, John Smith, John Citizen, and Joe Sixpack”), or whether you want an actual business name (eg. “Super Duper Abracadabra Solutions” …).

If you want to run your business under the personal names of all the partners (with NO other additions), all you need to register for is an Australian Business Number (ABN) for the actual Partnership (eg. one ABN for ALL the partners together, rather than individual ABNs like you would have as a Sole Trader).

Obtaining an Australian Business Number (ABN) for the Partnership

Regardless of whether you decide to run the Partnership business using the personal names of all the partners, or whether you register a business name, you will still need to obtain an Australian Business Number (ABN) for the Partnership.

To obtain an ABN, you will need to apply for it through the ATO. Thankfully, these days you can obtain an ABN in about 30 minutes without even leaving your computer. Click here to apply for an ABN. But just make sure you and your partners have agreed on how you will fill out these types of applications.

Obtaining a Partnership Tax File Number (TFN)

The Partnership will also need its OWN Tax File Number (TFN) – unlike a Sole Trader, who uses his/her own personal TFN.

For the Partnership, this means that all partners will still have their own personal TFN for their own personal individual income tax return, but the Partnership as a whole will have its own TFN on top of that. Yes, this means that in addition to lodging your own personal tax return, the Partnership itself will have to lodge its own, separate tax return too. Woohoo!

But note that a Partnership in itself is not liable to pay income tax or PAYG instalments. Instead, the individual income (and share of profits/losses) you, as a partner, make from the Partnership will need to be included in your own personal income tax return. THAT is how tax is paid on income generated by the Partnership.

So to reiterate – the Partnership itself does NOT get taxed, and that’s because it is NOT a separate legal entity (unlike a Company business structure).

That means that come tax time any income you make through your Partnership is counted together with your own personal individual income (so that means it is lumped in with income you make from other sources too – such as a job you might have on the side). By default, the law will assume that all Partnership income/profits/losses will be split equally among all partners, but it doesn’t necessarily have to be so. This is one of many areas where a proper Partnership Agreement can be useful, as mentioned earlier.

To obtain a TFN for your Partnership, you can do it online while you are applying for the ABN. Simply click here to visit the ABR website to get started. Again, make sure you and your partners have agreed on how you will fill out these types of applications.

Registering a Business Name

If you want to operate under an actual business name (rather than the personal names of all the partners), then you MUST register the business name in your particular State. If you intend on operating your business in multiple States, then you will need to register your business name in every State where your business will be operating.

Registering a business name in one State generally costs about $150 for 3 years. Naturally, if you intend on registering in more than one State, these costs will begin to add up quickly.

To find out more about the costs and paperwork required, please visit the relevant State office and look for “Business Names”:

• Australian Capital Territory – Office of Regulatory Services
• New South Wales – Office of Fair Trading
• Northern Territory – Department of Justice
• Queensland – Department of Employment, Economic Development and Innovation
• South Australia – Office of Consumer and Business Affairs
• Tasmania – Consumer Affairs and Fair Trading
• Victoria – Consumer Affairs Victoria
• Western Australia – Department of Commerce

Some notes to remember about registering a business name though:

• You can’t register a business name that is already registered in your State
• You can’t register a business name that is already taken as the name of a registered Company
• You can’t register a business name that is already registered as a Trademark (eg. “Coca-Cola”, “Google”, etc)
• Even if the business name partly contains the personal names of some of the partners, you STILL NEED TO REGISTER A BUSINESS NAME. Eg. although you wouldn’t have to register “Adam Wozniak, John Smith, John Citizen, and Joe Sixpack”, if you decided to call the business something like “Wozniak and Partners”, then you MUST register a business name. This is the part that MANY people get wrong!
• Registering a business name is more about consumer protection than it is about protection for your business. In other words, registering a business name does not necessarily give you any legal rights to your business name. It gives you less rights than registering your business as a Company, and it gives you even less rights than registering your business name as a Trademark. Basically, a business name has NO legal status in itself.

Despite all of this, registering a business name can be very quick and affordable. And there is a LOT less paperwork required compared to other business structures (such as a Company).

Once you have obtained an ABN, TFN, and registered your business name (if applicable) for your Partnership, you need to ensure that the Partnership ABN is actually linked to the business name. By default, it probably WON’T be. To link the Partnership ABN to the business name, telephone the ATO on 13 28 66.

What if I Don’t Want to Operate as a Partnership?

So those are the basics of structuring a business as a Partnership in Australia. Naturally, it’s important that you also consider the merits of the other three major business structures (and especially if registering as a Partnership does not appeal to you – it’s definitely not for everybody!). It’s important that you consider your options carefully.

Remember, selecting a business structure is NOT an optional step if you want to ensure your business has been set up PROPERLY and LEGALLY. Some groundwork now will save you a whole lot of potential headaches in future. Besides, having a business structure makes your business look more professional and reputable.

In the next tutorial in this series, we will be looking at another type of business structure – Trusts (a structure which holds property in trust for its beneficiaries). If you’re interested in reading about the Sole Trader business structure instead, then make sure you check out the previous Sole Trader tutorial.

Related posts:

1. How to Start a Business in Australia – Choosing a Business Structure (Sole Trader)
2. How to Start a Business in Australia – Choosing a Business Structure (Trusts)
3. How to Start a Business in Australia – Introduction

“If you buy the typical book about advertising… if you take advice from the average sales manager or ad agency… if you do sales and marketing the same way most big companies do… you will be thoroughly and totally equipped to do business in 1985.” – Perry Marshall

It’s amazing that in 2009 many businesses still don’t “get” the internet … or even email. Now, while Perry’s quote was targeted at marketing and advertising in general, I think it also applies more broadly … right down to the way some businesses approach communication with potential clients.

Are you scaring away potential clients?

Let me share a few lovely nuggets that I have collected recently …

As part of preparing to launch wecancreate, I spent much of my time contacting various other businesses right around the globe. These businesses included ones that specialise in online services, marketing and advertising online, and also businesses that specialise in legal issues. So a nice variety of different businesses. But one thing they all had in common was an online presence (and some of them were specifically about online products and services).

And you know what else a lot of them had in common? Absolutely shocking online communication.

My email enquiries were generally very simple and direct. Often, they were simply this: “I am interested in [whatever]. Could you please outline your prices for these services?” Now, even a 10 year-old should be able to understand a question like that…

But often I would receive one of the following emails in response:

• “Please give us a call.”
• “Give us your phone number and we will call you”

Better yet, some emails would go further:

“I’ll need some better contact information from you before I share this confidential information. Can you send over?”

This was from a real email response I received from a business specialising in online advertising and marketing – and it was in response to a simple question: “what are your fees?”.

An email example from a law firm …

But what really topped the cake for me was the following email exchange with a law firm (and you wonder why I have no interest in working as a lawyer…). After sending a simple email asking about prices, I received one of the responses mentioned above. So I wrote back the following reply:

“I am confused. Why have an email address on your firm’s website if you simply tell anyone who emails you to call you instead?”

At this point, I really didn’t care about this firm any more. Their first response told me everything I needed to know about them. But, amazingly, they replied with the following:

“We have made a suggestion which you have not accepted therefore it appears that we are not the attorneys for your matter.”

I nearly fell off my chair laughing!

Now, not only is this extremely poor form, it’s also against what a business relationship with any business should be about. I’m a qualified lawyer myself (but again, I don’t practise for many reasons – a lot of them have to do with the email exchange above …), but I understand that working with a client is two-way (regardless of the industry we operate in).

Yes, you can make suggestions – but ultimately it is up to the CLIENT to accept a suggestion or not. And yet here was a business telling me that because I have not accepted their suggestion (their suggestion being for me to telephone them, instead of using email, despite the fact they feature an email address prominently on their website), that they were not the firm for me. Marvellous. Brilliant customer service. And it’s a wonder people think lawyers are asshats …

If you offer multiple methods of contacting your business, then USE THEM. If you have no desire to use a particular method of contact, then DON’T OFFER IT AS AN OPTION. It’s really as simple as that.

Still operating in 1985 …

And this takes us back to the quote at the beginning of this post. Some businesses are still operating in 1985. For the record, the World Wide Web has been around since 1992/93. Email has technically been around since 1965 (!), although obviously wasn’t widely used until the launch of the World Wide Web.

Nonetheless, this means the Web has been around for approximately 16 years (as of writing).

Read that again.

And yet I am constantly encountering businesses who encourage contact via email, yet then tell you to “call them” after you email them. What is the point? Why have an email address at all if that’s how you’re using it?

This reminds me of a scene from the movie, “The 40-Year-Old Virgin”, where the kid in the “We Sell Your Stuff on eBay” store wants to buy a pair of shoes, and is told that he can’t – because the owner only sells the stuff on eBay. That scene is funny precisely because it is ABSURD. Just like the examples mentioned above.

Adapt to your customer

If a customer emails you, then it’s obvious that THAT is the method they want to use to communicate with you. Listen to the customer and adapt. And yes, it might be tempting to suggest a phone call, because then you can really “make the sale” by doing your salesman-schtick. But there are a lot of potential customers and clients who don’t wish to be harassed this way (and might be emailing dozens of businesses for quotes). Remember that.

And just because a potential customer EMAILS you first, does not necessarily mean they are any less serious about doing business with you.

If getting a simple price list or quote by email from your business is like getting “blood out of a stone”, then you are going to seriously annoy your potential prospects. It will say a lot about the way you do business. And it will also reveal that you’re not operating in the 21st century. You may as well close down your website and email address. You clearly don’t need them!

Leave a great impression by email

So if you DO actually use email to reply to potential customers, leave a great impression. Don’t include something like this in your response:

“… i am short on time right now as i am the CEO of the company”

Don’t laugh – this was actually a real response I received recently! I thought two things when I read that. Firstly, “what a douchebag”. Secondly, why on earth would you say something like that? Even if it’s true, the last thing you want to do is to emphasise how “busy” you are, and make it sound like you’re too busy to deal with a potential customer. What a great impression that leaves. It’s almost as good as not replying at all!

An email really tells a potential customer a lot about the attitude of your company (and whether or not you “get” the online world).

So what are YOUR emails saying about YOUR company? What strategies do you use? How do you communicate with your clients? I’d love to know. :)

But if you leave a comment below, I might have to tell you to telephone me instead … :P

No related posts.

In my last tutorial in this series, we looked at one of the first steps in starting a business – ensuring that you have the right licences. Now it’s time for the next major step – choosing a “business structure”.

A “business structure” refers to the way your business is structured legally. And – just like licencing – it’s ABSOLUTELY crucial that you choose a business structure and actually register it.

It’s amazing how many people either don’t get this right, or skip this step completely. Don’t be one of them. Getting this wrong could destroy your business, and it could destroy YOU.

Business structures are rarely explained well. Even some business books get this stuff wrong at times! Hopefully by the time you finish reading this series of articles you will have a much clearer idea about business structures, and which structure best suits your particular business. Remember, not all businesses will have the same business structure.

Types of Business Structures

Broadly speaking, there are four major types of business structures:

• Sole Trader
• Partnership
• Trust
• Company

Arguably, the Sole Trader business structure is the most popular one – but it might not necessarily be right for you. Additionally, you may need to change business structures eventually, depending on the needs of your business.

But what do all of the four structures actually mean? In this article, we will look at the Sole Trader business structure.

Sole Trader

The first thing to realise about structuring your business as a Sole Trader is that YOU (and ONLY you) are the business.

In other words, YOU own the business, YOU are directly in control of everything, and all money you make with your business is YOURS. The business is NOT a separate legal entity to you.

That means that come tax time all income you make through your business is counted together with your own personal individual income (so that means it is lumped in with income you make from other sources too – such as a job you might have on the side).

Sounds good so far, doesn’t it? But what does this all really mean?

Advantages of a Sole Trader

Starting off as a Sole Trader is the simplest way to begin a business.

• It’s easy to set up (I’ll tell you how shortly)
• There is less paperwork (in comparison to the other structures)
• It’s MUCH less expensive
• There is less government interference and regulation (at least in comparison to a Company)
• It offers more privacy (in comparison to the reporting requirements of a Company)
• There is less need for hiring lawyers, accountants, and other consultants (at least in comparison to a Trust or Company)

Obviously, these are broad generalisations, but they tend to be true much of the time.

As a Sole Trader, you can still employ people, engage other contractors, apply for financing (although this last part might be more difficult compared to a Company), and do many other things. There is a lot you can do.

And when your business expands, you can always change the business structure much more easily compared to other structures.

So, what’s the catch, I hear you say?

Disadvantages of a Sole Trader

Well, the major problem is that the business is YOU (no offence intended …). If you die or become permanently incapacitated, your business ceases to exist. Why? Because your business is YOU. It does not exist outside of YOU. So if you aim to pass on your business to other people in future (eg. family), this could be an issue. This area of the law is called “succession”.

This brings up a further complication, and one of the major weaknesses of this business structure.

Because the business is YOU, YOU are personally liable for any debts, negligent acts, etc that you commit while running your business. You assume ALL the risk and responsibility whether your business succeeds or not.

Every time you sign a contract with someone, is is YOU who is contracting – NOT your business. So if things go wrong, you could lose all your assets, your house, and your future. It’s a risk that you need to bear in mind.

Having said that, with the appropriate insurance cover, you might be able to lower your risks substantially.

Should I set up as a Sole Trader?

Obviously, only you can know that. This entire article is not intended as a full guide to the features of operating as a Sole Trader, but hopefully it gives you some idea as to where to go next.

Your decision whether to structure your business as a Sole Trader might depend on some of the following questions:

• Do you have a lot of money to start the business with? Can you afford the expenses associated with setting up, and operating, the business as a different structure (eg. as a Company)?
• Do you want the business to be a separate legal entity? If yes, then consider structuring it as a Company instead.
• Does it bother you that your business will cease to exist upon your death or permanent incapacitation? If yes, then you may want to consider structuring your business as a Company instead.
• Does the personal risk and liability issue concern you? Are you in a particularly risky industry where you may need greater protection (in addition to insurance cover)?
• How have your competitors structured their own businesses?
• Are the tax benefits greater than structuring your business as a Company? For example, the current tax rate on a Company is 30% (before tax is applied again to employee salaries). So depending on the rate of personal tax you might need to pay as a Sole Trader, sometimes it may actually be more effective to structure your business as a Company instead (which you would then become an employee of). This would be especially useful if you wish to use a lot of the profit to further grow your business, rather than adding it to your personal income (where the tax rate may often be much higher than 30%).

There are, no doubt, other questions that might also apply to you. But hopefully the above questions are a useful starting point.

So, how do I register as a Sole Trader then?

First of all, you need to decide if you want to run your business under your own personal name (eg. “Adam Wozniak”), or whether you want an actual business name (eg. “Wozniak’s Tools” or “Vandelay Industries” …). If you want to run your business under your own personal name (with NO other additions), all you need to register for is an Australian Business Number (ABN).

Obtaining an Australian Business Number (ABN)

Regardless of whether you decide to run your business using your own personal name, or whether you register a business name, you will still need to obtain an Australian Business Number (ABN) and a Tax File Number (TFN). If you have already been employed in the past (or are still currently employed), chances are that you already have a TFN. If you DON’T have one, you will need to obtain one through the Australian Tax Office (ATO). Click here to apply for a TFN.

To obtain an ABN, you will need to apply for it through the ATO too. Thankfully, these days you can obtain an ABN in about 30 minutes without even leaving your computer. Click here to apply for an ABN.

Registering a Business Name

If you want to operate under an actual business name (rather than your own personal name), then you MUST register the business name in your particular State. If you intend on operating your business in multiple States (eg. if you intend on having a physical presence there), then you will need to register your business name in every State where your business will be located.

Registering a business name in one State generally costs about $150 for 3 years. Naturally, if you intend on registering in more than one State, these costs will begin to add up quickly.

To find out more about the costs and paperwork required, please visit the relevant State office and look for “Business Names”:

• Australian Capital Territory – Office of Regulatory Services
• New South Wales – Office of Fair Trading
• Northern Territory – Department of Justice
• Queensland – Department of Employment, Economic Development and Innovation
• South Australia – Office of Consumer and Business Affairs
• Tasmania – Consumer Affairs and Fair Trading
• Victoria – Consumer Affairs Victoria
• Western Australia – Department of Commerce

Some notes to remember about registering your business name though:

• You can’t register a business name that is already registered in your State
• You can’t register a business name that is already taken as the name of a registered Company
• You can’t register a business name that is already registered as a Trademark (eg. “Coca-Cola”, “Google”, etc)
• Even if your business name partly contains your own personal name, you STILL NEED TO REGISTER A BUSINESS NAME. Eg. although I wouldn’t have to register “Adam Wozniak”, if I decided to add even ONE additional word that wasn’t part of my name (such as “Adam Wozniak’s Tools”), then I MUST register a business name. This is the part that MANY people get wrong!
• Registering a business name is more about consumer protection than it is about protection for your business. In other words, registering a business name does not necessarily give you any legal rights to your business name. It gives you less rights than registering your business as a Company, and it gives you even less rights than registering your business name as a Trademark. Basically, a business name has NO legal status in itself.

Despite all of this, registering a business name can be very quick and affordable. And there is a LOT less paperwork required compared to other business structures.

Once you have obtained an ABN, TFN, and registered your business name (if applicable), you need to ensure that your ABN is actually linked to your business name. By default, it WON’T be. To link your ABN to your business name, telephone the ATO on 13 28 66.

What if I don’t want to register as a Sole Trader?

So those are the basics of structuring your business as a Sole Trader in Australia. Naturally, it’s important that you also consider the merits of the other three major business structures (and especially if registering as a Sole Trader does not appeal to you). It’s important that you consider your options carefully.

Remember, selecting a business structure is NOT an optional step if you want to ensure your business has been set up PROPERLY and LEGALLY. Some groundwork now will save you a whole lot of potential headaches in future. Besides, having a business structure makes your business look more professional and reputable.

In the next tutorial in this series, we will be looking at another type of business structure – Partnerships (where you set up business with additional people).

Related posts:

1. How to Start a Business in Australia – Choosing a Business Structure (Partnership)
2. How to Start a Business in Australia – Choosing a Business Structure (Trusts)
3. How to Start a Business in Australia – Introduction

It’s amazing that many businesses continue to ignore the importance of having a website. Is it because they don’t understand what’s involved? Is it because they think it’s too expensive? Or is it because they’re stuck with outdated business models that were invented when the web didn’t exist?

These days, the question should no longer be “do I need a website?”. If you don’t have a website, you’re leaving money on the table.

Let’s have a look at some sobering statistics.

According to the Australian Bureau of Statistics, in 2007-2008 a whopping 70% of 1-4 person businesses still didn’t have a website. Considering 1-4 person businesses make up the vast majority of small businesses in Australia, that’s a pretty shocking statistic.

Here’s another fact.

In the USA alone, there are over 213 MILLION searches EVERY DAY through the major search engines (eg. Google, Yahoo, Bing)! Bear in mind that this statistic is from 2006, so chances are that it has almost doubled by now. Also bear in mind that this stat only refers to one country. Imagine the global stats!

But back to your business now. Chances are that you run a 1-4 person small business, and chances are that you don’t have a web presence at all.

So what do you think will happen if one of thousands of potential customers googles your business, or the product or service you sell?

Yep, they won’t find you. They’ll find your competitors instead! What a wasted opportunity!

9 Benefits of Having a Website

1. Are you spending time and money finding customers? Have them find YOU!

Think about this: how did YOU find THIS website? Chances are it was from either a web search, or a link through social media.

Having a website allows NEW customers to find YOU – 24 hours a day, 7 days a week. No other form of marketing compares. Unlike traditional forms of marketing – such as mail outs, radio and television commercials – with a website your message is going out there 24/7. And it’s there when people ARE ACTUALLY LOOKING FOR IT.

2. Would your customers benefit from 24/7 customer service?

What if your customers want to know your opening hours? Or they want to know if you stock a shirt in their size? Why should they have to wait until tomorrow to find that out?

Your customers want information about your products and services. A website offers round-the-clock access to such information.

3. Do you want to save time and money?

How much time and money could you save if all your customers’ questions were answered by your website? Free yourself and grow your small business while still providing excellent service!

4. Do you want to connect with your customers?

Your website is the perfect opportunity to express your unique personality to your customers. By personalising your message, you are strengthening the relationship with your customers. It’s a well-known fact that people buy stuff from people they like. You can cultivate these sorts of relationships online in a variety of ways, including through an email newsletter or blog connected to your main website. You can also do it by utilising social networking too.

5. Do you want an affordable and effective small business marketing solution?

Websites are much more cost effective than traditional forms of advertising. Can you really afford to spend money on expensive radio or television campaigns? And do you really want to spend money on ads that most people are going to ignore anyway? When is the last time YOU paid attention to an advertisement when you were watching your favourite television show?

Having a website allows your potential customers to find you WHEN THEY ARE ACTUALLY LOOKING. And not when they are more interested in watching CSI Miami!

6. Are you ready to expand your small business?

What other form of marketing gives you the opportunity to reach customers not only locally, but nationally and internationally?! You could have access to a whole new customer base – one that is continuously searching for your services and products. Who knows? Your local small business could become a GLOBAL small business instead! These days the possibilities have really opened up. You’re in a global marketplace now!

7. Is your small business operating in the 21st century?

Having a website shows customers that your small business is operating in the 21st century. And the fact is, the public EXPECTS that your small business is online. What kind of message are you leaving them if you’re NOT online?

8. How professional is your email address?

Do you already have a free email address that you use with customers? Have you ever thought carefully about the image your small business projects when your email looks something like julestools2009@gmail.com?

With your very own website, you could have a professional email address like john@julestools.com instead! And you can even give custom email addresses to other staff members too. Leave the free email addresses alone. Your small business is too valuable.

9. Do you want your information to be easily updateable?

Unlike traditional forms of marketing, it is easy to update your information on the web. For example, instead of losing money reprinting new catalogues every time you have a new sale on (or if you’ve accidentally published an error!), your website can be updated in minutes to save yourself all the headaches (and money!). Or maybe you just want to change your business address and contact details? Well, you can do that with only a few clicks!

But …

Perhaps you still have some reservations about whether YOUR particular business needs a website. Perhaps you think your business is “the exception to the rule”. Let’s have a look at some typical concerns:

“But I don’t sell stuff on the internet – why do I need a website?”

Excellent question. It’s true – many small businesses do not sell anything online. But let’s compare this to another marketing method – fliers and mail outs. Chances are that you’re not directly selling anything with those either, right? You’re just letting people know about your business and about your products and services. A website is no different – but it can offer SO much more than these other forms of limited marketing.

Additionally, ask yourself this: how are customers finding you? Unless you are a household name, chances are that the average person has never heard of your small business. They’re probably only going to hear about you when they search online. But are you going to be there when they do?

“I have a REALLY niche business.”

Ok, so you sell Chinese finger-traps to people who don’t have index fingers. Or you publish a quarterly dwarf-tossing magazine that comes out twice a year. You’re really into the whole “niche” thing. You might think that there is no point having a website for such a niche area.

But this is precisely WHY you need a website! The truth is that businesses with a successful web presence are often ones that have a VERY specific niche. Magnify that niche by the vast amount of new people you will have access to, and it’s obvious that having a website will expand your income potential.

And seriously, if you ARE selling Chinese finger-traps to people who don’t have index fingers, we might need to have a talk first …

Oh, and we don’t condone dwarf-tossing either!

“Pfff, the internet is a fad!”

Parachute pants, chia pets and ghetto blasters may have been fads (perhaps a “niche” now …?), but is the internet really a fad? Would you consider cars, planes and telephones to be “fads”?

The truth is that the internet, just like the above examples, is a continually evolving beast (just like a chia pet!). If you mean “fad” as in something that will evolve and change, then yes – the internet IS a fad. Ten years from now it will probably look quite different.

But the fact is that the internet – as a communications medium – will be around for generations to come. It is a major form of infrastructure and billions (if not TRILLIONS even) of dollars have been spent all around the globe to build it. It’s not going away anytime soon! So why let your competitors get a head-start? If you don’t adapt to it now, your business WILL suffer long-term, and it WILL become harder to catch up to future developments and opportunities in this area.

“It’s too expensive.”

This depends on your definition of “expensive”. If you think anything over $100 is expensive, then yes – you’re probably in for a shock!

But if you think in terms of “value” and return on investment, almost nothing beats the potential of a website. Besides, how expensive is it going to be to keep losing all those potential customers who are searching for your products/services daily on the web?

Remember, websites are a much more cost effective marketing solution than traditional forms of advertising.

As an example, let’s compare the cost of getting a print advertisement in a magazine. Generally, you would probably spend anywhere from several hundred to several thousand dollars on a one-page ad in a magazine – in one issue, seen by a limited number of people when they’re probably flicking through the magazine for other information.

So that’s several thousand dollars down the latrine! Several thousand dollars gone on a once-off chance to attract some new customers.

For a similar price, you could have a website instead, and use it to attract customers 24 hours a day, 7 days a week! Having a website allows your potential customers to find you WHEN THEY ARE ACTUALLY LOOKING – at any time of the day or night … unlike the “once off” style of traditional forms of marketing.

“I’m not a computer person. I don’t know much about technology.”

This, I suspect, is actually one of the major reasons many people haven’t made that leap. For some reason, many people seem to view the web (and technology in general) as some sort of threat or danger to society (governments seem to be especially good at promoting this ridiculous point of view). So it becomes easier to ignore that it’s there, and just convince yourself that “I’m not good with computers”.

Well, chances are you weren’t good with a LOT of things many years ago. There was probably a time when you weren’t able to drive a car, when you weren’t able to talk or write, even when you weren’t able to walk! Using this as an excuse is, quite frankly, a huge disservice to your intelligence. You owe your brain a MUCH better reason.

And the fact is that even if you don’t know a lot about the web, there are PEOPLE YOU CAN PAY TO HELP YOU! You’re not alone. Did you know that a lot of incredibly successful global online entrepreneurs wouldn’t know how to build their own website from scratch if, ironically, their livelihoods depended on it?! Guess what they do then? Yep, that’s right – they pay other people to do it for them.

A Final Thought to Convince You

Ultimately, if you’re running a business, being able to adapt and evolve on a regular basis is CRUCIAL to your success. Otherwise everyone would still be riding on horses, sitting around the “wireless” with the family, and heading down to their local “milk bar” to do their shopping.

Face it – the world is constantly changing. Your business MUST change to adapt with it.

Otherwise you will become like today’s movie, music, book and newspaper publishing industries. They used to be mega-empires. Now they are scared for their lives. They have spent the last few decades fighting against technology and the web (instead of adapting and embracing its opportunities), and now their previously exclusive market is being completely stolen by new competitors who HAVE adapted and evolved.

That’s the type of business YOU want to have, right? One that has adapted and evolved. One that “gets it”.

Summary

As you can see, it just makes NO SENSE to put off getting a website any longer. No more excuses. Take that first step NOW, and especially if you’re a brand new business trying to get established. The web is your friend!

And if you’re after someone to help you launch your website, make sure you check out our web design services while you’re already on our website. We’d love to help you! :)

No related posts.

For the time being, we will ignore any discussions of whether or not you should be starting a business. For the purposes of this tutorial, I assume that you have already made the decision to start a business – and now simply want some guidance as to some of the formal steps required in setting it up in Australia.

One of the first things you’ll need to consider is whether or not you need to obtain any specific licences to operate a business in your chosen industry. This is what we will cover in this particular tutorial.

Okay, now that we have those fun and games out the way, let’s take a look at licencing.

Licencing

Depending on the type of business you are intending on starting, there are various licences, permits, and registrations that you might need to obtain. To make it easier to explain these licences, I will label them separately as “operating licences” and “occupational licences” (please note: these are my own labels).

Having said that, it’s also possible that your type of business (and your occupation) might not actually need any such licences. But, either way, you need to make sure. The penalties for not obtaining such licences can be quite severe.

Operating Licences

If you are running a venue, you may need to have licences such as a liquor licence (to sell and/or serve alcohol) and an APRA licence (to play pre-recorded music over a sound system), to name a few. These licences will require that you fulfill certain requirements, fill out certain paperwork (often annually), and pay certain fees on a regular basis.

The best way to find out which operating licences you need is to visit the Business Licence Information Service website for your State. Click on any of the following links to do that:

• BLIS Australian Capital Territory
• BLIS New South Wales
• BLIS Northern Territory
• BLIS Queensland
• BLIS South Australia
• BLIS Tasmania
• BLIS Victoria
• BLIS Western Australia

Unfortunately, one of the great things about Federalism is that each State’s BLIS website is different (sometimes RADICALLY different). As such, some States’ BLIS websites are not particularly user-friendly. You have been warned.

But basically, most of the above BLIS websites operate in a similar way. They provide a general overview of the types of licences you might require. They often also include some sort of search facility where you can type in a keyword relevant to your business (eg. “entertainment”), and then relevant licences will show up. Obviously, this approach to finding licences may not be as thorough as you need it to be (unless you know EXACTLY what you need already).

Alternatively, some of the BLIS websites also offer you the opportunity to browse the entire list of licences (which is a good option), or – better yet – offer an interactive “quiz” that helps you determine PRECISELY what licences and forms you need (depending on the Council area you live in). The resulting report contains all the information you need on the licences you need to obtain for your specific set of circumstances. Additionally, the report often also contains actual copies of the forms you need to lodge! Very convenient.

So, as you can see, this process doesn’t have to be too complicated. But, needless to say, you MUST read these things very carefully.

Occupational Licences

There are also various occupational licences required by law for persons providing certain services. Such occupations can include building work contractors, conveyancers, land agents, plumbers gas fitters and electricians, security and investigation agents, second hand vehicle dealers, and travel agents to name a few. This is not a complete list, and the list varies depending on the State that you live in.

To obtain these types of licences, you will often need to fulfill certain “eligibility criteria” (eg. certain qualifications, security checks, etc) specified by legislation and mentioned by your State’s Fair Trading Office or Office of Consumer and Business Affairs (the name of the office depends on the State you live in – yet another joy of Federalism …). These licences are also subject to periodic renewal (so you need to pay ongoing fees to remain registered). Generally speaking, the earlier-mentioned BLIS service should list the occupational licences you might need in addition to operational licenses.

However, it might still be a good idea to visit one of the following websites for further information on occupational licensing (just to be sure you have everything you need):

• Australian Capital Territory – Office of Regulatory Services
• New South Wales – Office of Fair Trading
  Northern Territory – Department of Justice
• Queensland – Department of Employment, Economic Development and Innovation
• South Australia – Office of Consumer and Business Affairs
• Tasmania – Consumer Affairs and Fair Trading
• Victoria – Consumer Affairs Victoria
• Western Australia – Business Licence Finder

If you are working in an occupation that needs a specific occupational licence, and if you are considering a move interstate, the License Recognition website will assist you to find out whether your current licence will be valid in the other State (and, if not, what equivalent licence you will need to obtain).

Codes of Practice

Codes of Practice aren’t, technically speaking, “licences”. However, some licences can actually specify and require that you must comply with a specified Code of Practice.

Codes of Practice are a set of standards or guidelines that outline certain behaviour and performance that is necessary in certain situations in a particular industry (how’s that for a vague explanation!). These Codes are often developed in consultation with industry, and can either be compulsory (and referenced in legislation) or voluntary.

Regardless, Courts of Law may place high emphasis on these Codes as a minimum standard that you and your business must meet. Complying with Codes of Practice is a sound risk management strategy. What do I mean by that? I mean that it’s a damn good idea to follow Codes of Practice to minimise any damage that might be caused if your business is sued!

So, how do you find these Codes?

To find Codes that are referenced by legislation (in other words, Codes that are compulsory), visit the Australian Codes of Practice website.

Standards

Standards, just like Codes of Practice, can also be referenced by legislation. You can find relevant Standards at the Standards Australia website.

Ultimately, at the very least, you need to make sure you have copies of any Codes of Practice or Standards that are compulsory for the type of business (and industry) you will be operating. It’s also a good idea to have copies of any voluntary ones too. Basically, cover your ass as much as you can! It’s NOT a good idea to cut corners here.

So … What Now?

So those are the basics of business licencing in Australia. I hope you have found this tutorial beneficial. Remember, licencing is NOT an optional step if you want to ensure your business has been set up PROPERLY and LEGALLY. Some groundwork now will save you a whole lot of potential headaches in future.

But licencing is not everything. Next you’ll need to actually register your business, either as a Sole Trader, Partnership, Trust, or Company. Thankfully, that’s what the next tutorial covers!

Related posts:

1. How to Start a Business in Australia – Choosing a Business Structure (Sole Trader)
2. How to Start a Business in Australia – Introduction
3. How to Start a Business in Australia – Choosing a Business Structure (Partnership)

Whenever discussing "business", it's compulsory to show a photo of several corporate-types sitting around a monitor pretending to be working ... I promise I will never include such a photo on this blog.

These days there are quite a number of resources (both online and offline) that can help you with the formal requirements of starting a business and ensuring you do it properly. There are a tonne of business books and government services that have been created for this purpose.

But personally, I often find some of these to be less helpful than they could be. They can be poorly written, overly complicated, or just plain OVERWHELMING. So my goal here is to simplify them, and create a “digestible” series of tutorials that get you on the way. This series includes the following tutorials:

List of Tutorials

• How to Start a Business in Australia – Licencing
• How to Start a Business in Australia – Choosing a Business Structure (Sole Trader)
• How to Start a Business in Australia – Choosing a Business Structure (Partnership)
• How to Start a Business in Australia – Choosing a Business Structure (Trusts)

Over time, this series will grow and continue to evolve. I will be exploring the various aspects involved in setting up a business in Australia properly. By “properly”, I mean LEGALLY – by ensuring you dot all the t’s and cross all the i’s … or is that the other way around … :P

If there is anything you would like me to cover throughout this series, please post a comment below! Remember, this is an ongoing series.

Related posts:

1. How to Start a Business in Australia – Choosing a Business Structure (Trusts)
2. How to Start a Business in Australia – Choosing a Business Structure (Sole Trader)
3. How to Start a Business in Australia – Licencing

Ah yes, Tom Petty’s “Learning to Fly”. What a great song, and certainly a great way to sum up business and life in general. Probably better than this, right …?

But I digress. Starting a business, or even just running one, is a tough journey. So the more people that join you on your way, the better. Think of this blog as that opportunity – an opportunity to be involved in a community of individuals all “learning to fly” together.

By the way, if you accidentally found this page because you were literally searching for tips on how to fly, now might be a good time to hit the “Back” button (ah, the joys of search engines ….). I mean, I don’t personally have any tips on flying … although I suspect it helps actually having a plane … otherwise you’ll be “Free Fallin’” …

Anyway, you probably have a few questions at this point in time. You know, questions like:

• so what is the point of this blog?
• why should I spend my time on here?
• could you point me in the direction of the nearest lavatory?

Now, I’m pretty sure I can answer the first two questions. I can’t say I can answer the third question, although I’m sure that’s a business opportunity waiting to be grasped with both hands. Actually, scratch that last point – if you’re in Australia, believe it or not, there is a service to help you. Check out www.toiletmap.gov.au

Yes, it amazes me too. Of course, by the time you actually find a toilet using this method, it will probably be too late …

But back to the questions:

So, what is the point of this blog?

Naturally, as you can tell, this will be a very serious business blog. Strictly public relations material. I’ll only be talking about my business and my services, and I’ll pretend that you actually care about that. I might even tell you how great me and my business are, and then keep reminding you about my prices and services. Actually, that’s ALL I will ever talk about here … and I’ll hide behind a corporate mask.

Gee, sounds GREAT, doesn’t it …? “Quick, WHERE DO I SUBSCRIBE??!!”, I hear you say!

Okay, obviously that was a heavy dose of sarcasm (if it was too heavy, you may need to use the toilet map locater above …).

It amazes me how MANY businesses actually start a blog like this, and use it for NOTHING other than promoting themselves, and telling you how great they are. If you’re anything like me (a Polish immigrant who loves parallel parking) I’m pretty sure you HATE that as much as I do. So take it from me – this is NOT the approach I will be using with this blog.

My goal with this blog is to develop a community of like-minded individuals (preferably without bladder problems …), who wish to support each other in their business journeys. Starting a business – any business – is a really exciting time. I know – I’m going through it right now. You probably know too. Maybe you’re already running a business. Maybe you’re about to start one. Or maybe you’re thinking about one while you’re stuck in a job you don’t like (hopefully you’re not working for the toilet map locater people …).

This blog is here to help ALL of you during this exciting time (well, apart from that last example … you’re on your own with that one!).

But this blog is not only for those of you starting or running a business. It’s also for those of you who are looking for additional tips and strategies in your current employment or personal projects. We will ALL benefit.

Why should I spend my time on here?

Apart from building a community together, this blog is an opportunity for both you and me to learn more about how we run our businesses and projects. And it’s an opportunity to learn how to do it BETTER. Unfortunately, the bar often isn’t set very high in business or in life. That’s why you’re here, isn’t it? You want to be one of the select few who aim high in life and business. Welcome.

I’m very excited about this blog, and I’m excited about sharing tips, advice, thoughts, tutorials and videos with all of you. Am I an expert on all of this? Of course not. No one is. Will you gain something from my articles though? Absolutely. Will others (including me) gain from your comments on these blog posts? Damn straight we will! :)

So over the coming months, stand by for all sorts of tips and tricks. So make sure you subscribe to my email list (the big red subscription box at the top right hand side of this page). You can also join us on Facebook and Twitter.

And remember – the direction of this blog will also be shaped by YOUR input, so I encourage you to post comments in future articles. Let’s open up some discussion. And let’s find out about your business too! I’m looking forward to meeting you all! :)

So until next time, keep flying (but watch out for the telephone poles…)!

No related posts.