Smart Buisness

Starting A Business

The importance of writing a business plan.

Starting a business can be a rewarding experience and fulfilling career move, and to give yourself every chance of success it is important to develop a clear and concise business plan, laying out your goals in detail and how you intend to achieve them. There is plenty of scope to build a career in the arboriculture sector, with skills shortages an ongoing issue for employers, and for workers who are dedicated to learning and developing a broad range of experience over time, opportunities will likely present themselves.

Starting a business may well be a natural progression for some, however it is important to be realistic about the challenges ahead, and detailed planning can help determine what it will take to achieve your goals and just how ready you are to take on the extra responsibility.

First Things First: Are You Ready?

Of course, as a starting point it is important to be fully qualified and knowledgeable, and wide-ranging industry experience will serve as a solid platform to begin exploring what sort of opportunities are available.

However, a willingness to take on the responsibility of running a business is also important, and it will help to be clear in your mind about what exactly you want and your preparedness to shoulder additional responsibilities, and to be realistic about your chances of success.

Australian Bureau of Statistics statistics shed light on business movement, showing that there were over 2.37 million actively trading businesses in the Australian economy as at June 30, 2019, with a 15.4 per cent entry rate and 12.7 per cent exit rate in 2018-19.

The statistics show that the Agriculture, Forestry and Fishing industry division was the only division to post an overall decline in business count in 2018-19, comprising a 6.9 per cent entry rate and 7.8 per cent exit rate.

Business Plan Checklist

Putting together a business plan will help to catalogue what is required to establish and grow your business, and to clearly articulate step-by-step processes and strategies, along with measures of success.

As advised via the business.gov.au website, it is worthwhile taking your time in putting together a plan (along with regularly reviewing it, and potentially taking steps to protect its content), and seeking out professional help if required, with different steps encompassing:

  • Determining who the plan is for – will it be purely for internal purposes, or also used for external purposes (such as when seeking financing)? Being clear on the plan’s purpose can help develop it for the right audience
  • Getting the research done – incorporating decisions about your business structure, marketing strategies and finances, with research helping to develop goals and targets, facilitating a better understanding of where your business needs to be heading
  • Being clear about your finances – in seeking to secure financing, you will need to show how much money you have, how much you need and how much you expect to make in the near future
  • Finishing with a summary – summarise the key aspects of your plan using as few words as possible, including details about your business, market, goals, current financial position and what any financing you’re seeking will help you achieve

The good news is that there are plenty of small business advisory services available, and it is certainly worthwhile utilising resources such as www.business.gov.au to determine what free and low-cost services are available in your area.

May 21, 2020 / by / in , ,
Liability Insurance And Subcontractors

Is your Insurance Policy covering the subcontractors you use in your business? The answer is no!

Insurers do not include subcontractors under liability insurance policies. If they did this, the insurer then accepts the liability for all of the work that the subcontractor undertakes. For example, you may have a subcontractor who does semi regular work for you throughout a year, but they also work for other companies and trades as well.

By including this subcontractor under your policy you are in fact covering them for all the work that they will perform throughout an insurance period, regardless of whether it is for you or not. This would include jobs that they undertake for other companies and which you know nothing of. The subcontractor could potentially cause an incident which results in property damage or an injury to a member of the public, and the subsequent insurance claim would be held against you, because they are an insured party under your policy. It will then be for the insurer to decide whether the policy will respond to this incident, or deny liability. It may leave you responsible to pay the costs for damages for work of which you knew nothing about – costs which could be in the tens of thousands of dollars or higher, depending on the incident.

Subcontractors should be treated like their own company and therefore should have their own cover in place for the work that they are performing. Just as you are required to have your own insurances in place, so are subcontractors required to have the same level of cover.

The best way to ensure a subcontractor you use has their own cover in place is to obtain a Certificate of Currency from them.

A Certificate of Currency will provide you with the information that is on their policy, and can give you re-assurance that they have cover and that you may not have significant out of pocket expenses. It is important to check the Certificate of

Currency received to ensure all details are correct.

Key points to look for include;

  • company name of the subcontractor
  • Are the dates current
  • Is the limit of liability adequate for the job you are performing
  • Are there any exclusions or limitations on their policy

Your liability policy should also include an extension for Vicarious Liability. Vicarious Liabilities can arise in situations where you are responsible for a third party (eg. the subcontractor or contractor who is working for you), and they are negligent in carrying out that responsibility and exercising control. If they are negligent you may be deemed to be responsible for some of the property damage or bodily injury caused by the subcontractor or contractor. Vicarious Liability covers this exposure for you, so it is important to check that your policy includes this extension so that you are not left out of pocket or with a damaged reputation.

Some Key Points To Remember When Dealing With Subcontractors:

  • Ensure all contractors are aware of their responsibilities and understand house rules
  • Ensure records are kept up to date detailing contractors attendance at principal’s induction program
  • Confirm that all subcontractors or contractors have their own adequate insurance cover in place that provides indemnity for you by naming you as their contract principal
  • Check that the cover a subcontractor has in place includes sums insured that match your insurance cover and has no clauses that will pass the liability on to you, or exclusions that relate to the work you are performing; and
  • Obtain and keep on file a copy of each subcontractor’s Certificate of Currency and diarise to ensure that an updated certificate is obtained each year or for when new work is performed.

For more information on Cyber Insurance or other insurance risks speak to Mick Le Grand at Fitzpatrick & Co – supporters of the Horticulture and Arboriculture industries for over 20 years – on (03) 8544 1600 or email [email protected].

Alternatively, visit www.fitzpatrick.com.au

April 22, 2020 / by / in , ,
Harnessing Digital Technologies To Drive Business Growth

Businesses across a wide variety of sectors are actively harnessing digital technologies to drive business growth, and those that don’t may be missing out on opportunities and falling behind their competitors.

Recent research conducted by Deloitte Access Economics for the federal government and its Small Business Digital Champions

Project has highlighted increasing small business adoption of digital technologies. The research, which classified digital engagement as basic, intermediate, high and advanced based on use of varying social media, websites, marketing and data analytics tools, found that:

  • In 2019, 55 per cent of small businesses achieved high or advanced levels of digital engagement, up from 39 per cent estimated in similar research in 2017
  • Small businesses moving from basic to advanced digital engagement see a 60 per cent increase in revenue per employee, having earned on average 28 per cent higher revenue growth in the last 12 months
  • Cost is the most commonly cited barrier to small business digital engagement
  • Of businesses with basic levels of digital engagement, 51 per cent don’t understand the potential benefits of engagement
  • More businesses are using social media to maintain their online presence before establishing a website

Of course, the nature of digital engagement will be determined by day-to-day business operations, and it makes sense to carefully consider how engagement can complement operations in your business.

Making your business visible: the importance of an online presence Maintaining an online presence is a fundamental component of business digital strategy, essentially providing a reference point for potential customers.

The 2018 Telstra Small Business Intelligence Report points to the importance of being active online, revealing that for 71 per cent of consumers traditional “word-of-mouth” referral comes behind online search and online reviews.

The report additionally found that 89 per cent of customers want a website that’s easy to navigate, while 48 per cent will stop considering a business if it doesn’t have one.

Meanwhile social media platforms are another important tool via which businesses can establish an online presence, with last year’s Yellow Social Media Report revealing 79 per cent of Australians use social media, with 47 per cent of small-to-medium-sized businesses on social media.

Without an online presence, it becomes more difficult for potential new customers to find you, while utilising the range of online tools available can help businesses not only advertise, but also build credibility and encourage customer engagement.

For instance, via a website or social media platform, you can provide an overview of your business, along with photos and videos of different projects worked on and other relevant information, allowing customers an insight into your experience, approach and range of services.

Where to Start?

It is certainly worthwhile keeping up to speed with the ever-evolving range of digital tools that can potentially help grow your business.

As a starting point, a number of state government websites provide information on digital strategies, and may also have information on relevant workshops for small business owners.

It is also worthwhile referencing the business.gov.au website, which provides a range of information about digital tools, including information on creating an online presence. Information on the Australian Small Business Advisory Services (ASBAS) Digital Solutions program can also be found at business.gov.au, with the ASBAS program designed to provide small businesses with advice about a range of digital solutions.

In the next issue we will look at how a small business in Arboriculture can make the most of the Small Business Digital Grants Program and how to be eligible for a government sponsored ‘digital makeover’

January 20, 2020 / by / in , , ,