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Rusl an Kogan: surfing The interne t re volution
SPRING issue $9.95 inc GST
cover story
MICHAEL
KLIM Swimming in
business success
Jason
MAKING THE
Akermanis
MOST OF Keeping his eye
SOCIAL MEDIA
on the ball
4 Brand
waysto build your
and more...
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conten SPRING
2013
$
18 24
cover story
self-made
24. Land of milk and honey – Former world swimming
champion, Michael Klim has entered into the business 16. Self-made man – Kevin Systrom
world with cosmetics company Milk and is still making
a global impact. 18. Self-made woman – Danielle Fong
70. Self-made motoring – AMG
state of the art 74. Self-made travel – Sun & Snow
08. Editor’s Letter
10. In the News

spotlight
48. Property markets - Good property investment requires
78. Book Reviews
knowledge of not only the markets you wish to invest in,
82. Out of the Box but also of current trends. In this spotlight we look at the
resource boom as well as investment tips.
4 | new wealth creator SPRING 2013

nts
70 54 74
stealth high band width
20. How to survive and thrive – Ruslan Kogan 54. Keepin his eye on the ball – Jason Akermanis was
a champion footballer and he takes everything he learnt
22. The benefits of co-branding – Stan Gordon about leadership as a player and coach into business.
30. Social media mediation – Michael Simonetti 60. The science of success – Universal Biosensors CEO,
Paul Wright speaks about the emerging and lucrative
32 Why you shouldn’t reinvent the wheel – Alex Pirouz biotech sector.
34. Service with a smile – Andrew Darbyshire 64. Medicine and business bands together – Michael
Randall has produced a device that solves everyday
36. The secret to marketing in tough times – Nicole Smith common medical problems.
38. Your corporate karma balance? – Andrew Griffiths 66. A business frame of mind – It’s tough times for small
business, but Josh Poznanski is weathering the storm
40. Leverage & maximise opportunity – Pat Mesiti and changing with the times.
44. What the property pros know – James Freudigmann
46. Top tips to leadership excellence – Tim Reed
SPRING 2013 new wealth creator | 5

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R
editor’s esearch conducted by Bain & Co. in 2012 found that
rowers have the best track record of breaking into the
letter corporate world after their Olympic careers.

The report suggested that approximately 8% of US
and UK rowers who medaled at the Olympics between
1972 and 2000 went on to excel in business. Some
Olympic
landed top jobs at public companies, investment
banks, law firms and consulting practices, while many others started
their own companies.
size In Australia, it’s our swimmers who have done well for themselves post
Games. Thorpe and Hackett have both done well and, after her win in
success
Celebrity Apprentice, Stephanie Rice credits entrepreneur Mark Bouris
with her coming venture into the corporate world.
Which brings me to Michael Klim. As you’ll read in our cover story,
Klim was encouraged by his father who possessed his own
entrepreneurial traits. However, the younger Klim was focused on
swimming and winning gold medals, which he excelled at.
When done with swimming, there was the encouragement of his father
as well as wife Lindy, to start Milk & Co. The business founded in 2008
and it is now global.
As you would expect, Klim is focused but he admits he had a lot
to learn (and still does) about running a business.
The research by Bain was conducted by Bain partner Patrick Manning,
a member of the 1992 US silver-medal rowing team.
Of those who demonstrated strong business success – which includes
executive positions, board member, partner, managing director or above
at a big company - rowers came out on top, but swimmers and sailors
also showed some success.
One trait exhibited included intense teamwork, something which
Klim believes is integral to the success of a business.
Lisa Magloff of Demand Media writes: “Good teamwork allows
employees to take greater responsibility for decision-making and also
allows team members to control more of the work process.”
Henry Ford said, “Coming together is a beginning. Keeping together is
progress. Working together is success.”
The great thing about Olympians is that they understand the value of
team, even if they compete individually as well, and they can adapt those
traits to their ventures post-sport.
Jason Akermanis has done this; his views on teamwork are fascinating
and you will find them further in this magazine.
This is not a sports edition of WCM, however there is a lot to learn from
our elite sportspeople. There’s also the joy derided by a mad sports fan in
speaking with them.
If you want to run an elite business take note of what those who have
achieved the highest success in sport and business have to say. It’s often
fascinating, very entertaining and extremely informative.
Jonathan Jackson | Editor
Follow us: If you have any feedback or story ideas, I’d like to hear from you.
Send all correspondence to editor@21stca.com.au.
@WC_Magazine
WealthCreatorMagazine

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HOW TO
s u r v i v e and thrive
r in n o v a ti o n a nd change
th e g re a te s t o pportunity fo a n d C E O of Kogan.
pre s e n te d n, fo u n d e r
The internet has Revolution, writes Ruslan Koga
ial
since the Industr
$
20 | new wealth creator spring 2013
J
ust as the Industrial will end up stagnant losers. continually focus on the Once again, it’s those most
Revolution brought Our businesses will not customer or client while responsive to change that
hundreds of millions succeed in the face of you’re carrying out change will succeed in the long run.
of people out of international competition and in your business. Changing parts of your
poverty, so too has the protectionism will hurt local Innovation in business business won’t always be
internet already enhanced industries in the long run. can be both above and easy. Some people might
almost every element of our Whether it’s an online below the line. If you even think you’re a little
lives. Believe it or not, we retailer like Kogan, a head to kogan.com.au crazy. Make no mistake:
are only now on the cusp of bricks and mortar retailer, today you’ll notice a lot of any business that rests
what is possible. a financial institution or products with a dynamic on its laurels and fails to
From journalism to your local pie store, every price. The price tag of constantly seek new ways
banking, from video business will succeed if products in development to innovate won’t be around
production to retailing, they do one thing: innovate. is constantly ticking over much longer.
the internet has broken By constantly creating new while they’re being made. We live in a truly global,
down boundaries that ways of doing things in We called it LivePrice constantly evolving economy.
protected entrenched age- response to your customers’ and, although it was If Australian businesses
old practices, and replaced desires and needs, your something no-one had ever want to survive and grow, we
these practices with business will stay ahead of done before, it honed in must embrace our ingenuity,
openness, transparency the game and profit greatly. to what consumers really adapt to the changing
and accessibility. Before One brilliant example wanted from their shopping environment and ensure
the internet, a journalist of innovation is Amazon experience – the newest we deliver exactly what
would need to work his personalising its store for technology, but with more customers want. Australia
way out of the mail-room of the individual. Now when money left in their wallet. has some of the most
the local newspaper to get you visit Amazon, you can We put power in the hands brilliant minds in the world,
published; now anybody see recommendations for of shoppers to fund the but any attempt to “regulate”
with something valuable products that Amazon production of a product and the survival of our industries
to say can instantly run a knows you will like. save money. must ultimately fail.
successful online blog. While an innovation like Protectionist regulation
Not everybody is rejoicing LivePrice is seen by many, may add a lifeline to dying
in the impact of the
“the there are changes you can businesses for a year or two,
but the only long-term way
fittest
internet. There are plenty make to your business
of businesses that have that will have a big impact to build growth, economic
will
enjoyed many years without but people might not ever health and prosperity in
effective competition, and know about it. Kogan was Australia is to embrace
survive.”
are only now realising that one of Australia’s first change and adapt to evolving
they need to innovate to truly paperless offices and circumstances. On an
survive. We have already while a shopper will never individual business level, we
started to hear subtle calls The entire storefront is see that, it lets us run our need to hone in on exactly
for protectionism and these reconfigured for each business more efficiently what customers need or
whispers will turn to shouts individual customer, based and ultimately deliver want from our businesses
when stagnating businesses on their personal tastes better prices. and find new ways to deliver
start closing down. and purchasing history. For a business that can’t it. Evolution is not based
Protectionism, which really You don’t need to look for just compete on price, it on survival of the strongest,
means special protection by the product you want; the might mean offering more smartest, best regulated
government of businesses product will find you, at the personalised service. One or most protectionist, but
that could not otherwise cheapest price, without you Melbourne tennis racquet survival of the fittest – the
compete in a free and open moving an inch. dealer has built a tennis fittest are the best adapted
market, is not the answer. It’s clear from websites court next to the store, to their environments
Government needs to protect like Amazon, that allowing you to have a and the most responsive
innovation, not stagnation. innovation is moving hit with their pros to to change. The fittest will
There is only one constant beyond just a matter of help you choose the right survive and thrive.
in life, and that is change. price. It shows that whether frame and strings. Many
Ruslan Kogan is the founder and CEO
If government responds you’re B2B (business-to- retailers have already
of online retailer Kogan. Continue the
to the calls for special business) or B2C (business- begun to communicate conversation with Ruslan Kogan on
protection, all Australians to-consumer) you need to their competitive advantage. Twitter: @ruslankogan
spring 2013 new wealth creator | 21

The benefits of
co-branding
There’s no question; business today is tough. The past few years have been a bumpy
ride and, as we all know, being in business brings with it many challenges, but also
many rewards, writes Stan Gordon.
W
hen you’re in Video Ezy or a café inside So why, and how experimenting with an
independent coffee offering
business, you a department store. You’re
need to ensure on the right track as long can co-branding at their supermarkets…
that you’re as the brands go hand work? to lighten the drudge of
constantly looking for new in hand… or have some the grocery-shopping chore!
ideas and innovations. benefit to the customer. Co-branding can be a As long as the messages
It is the number one On a much larger scale, great way to buoy your you’re delivering are clear
way to maximise your Myer has been doing this for business in so many more and relevant, co-branding
opportunities and, if you’re ages. They have specialty ways than one. Set up partnerships can leverage
prepared to do everything brands within their stores. costs and overheads can each separate brands’
to the best of your abilities, Harvey Norman’s product be dramatically reduced marketing opportunities,
you’re much more likely to divisions are separately with savings made on which is a great way to
be in it for the long haul. franchised, operating shop rental, building maximise reach, open up
For many businesses, separate businesses under maintenance fees, wages for new markets and gain new
namely those in the the same roof. staff and business costs. If customers.
franchising sector, co- Of course, like with any you think logically, you’re For co-branding to be
branding is one innovation business venture there are disbursing costs across two successful, it’s imperative
that can bring entirely new benefits, considerations businesses while reaping to ensure the brands’
opportunities. and drawbacks for the the benefits of two separate values and customer
parties involved. When entities. It’s pretty simple! base is similar and
So what is done properly, co-branding
offers fantastic rewards
Brands can also gain
traction purely from their
complementary. For Cold
Rock, using a Cold Rock
co-branding? for everyone: not just association… if you have Express model and going
Co-branding by definition is the businesses involved one brand that’s not so well into video stores makes
pretty straightforward; it’s (financially and brand- known, think about where complete sense; the brand
the presentation of multiple wise), but most importantly it would be best placed to is going into new locations
and ideally, complementary for your customer – who is build its profile. A whole that already attract (albeit
brands and products to met with a more extensive world of new opportunities declining) foot traffic.
a single customer group. offering and therefore the can be presented by Ultimately, with this
This can include brands opportunity to enjoy more joining forces with a ‘name’ concept, any customer who
that fall into the same when visiting your store. that also has a great walks into the video store
category – like an ice cream In a way, it’s like creating customer base. It should be is a potential ice cream
shop inside another food a ‘mini shopping centre’ complementary, in a good customer. It also gives
store – but can also work that’s convenient for location and offer existing the ice cream customer a
quite effectively with brands customers… and we all like customers convenience reason to visit the video
in different sectors; like a anything that’s easy and and another reason to store and ‘re-experience’
Cold Rock Express inside a convenient! visit your store. Coles are the choice of entertainment

available, and it therefore It’s essential to ensure from co-branding stems will they leverage off
should be a cost-effective both brands are trying from finding the ideal one other?
method to increase to attract the same type partner for the current • Does the co-branding
revenue. In this instance, of customer to truly business. If the ‘right’ open up a new and
the investment for the video take advantage of the business can be found, an complementary market
store owner is small, but partnership. Step back existing business owner for my existing business?
the return has the potential and ask yourself: “If I (or in our case franchise Will it provide a
to be very worthwhile… were a customer, would owner) can discover and potentially more engaged,
with no major overheads. I be interested in both reach many new markets. or repeat customer?
these brands in the one But a word of caution; it’s • Will overall management,
Is co-branding the space?” A hardware store
combined with a fashion
not a decision that should
be rushed!
staffing and overheads
costs be maintained?
right thing for my brand probably wouldn’t Here are a few key • Will sales and revenue
brand? work… unless its work- questions to consider in receive a boost?
wear fashion (you see, you helping you evaluate if • Will the co-brand
It’s important to remember must always look for the co-branding is a good next diversify the risks?
that while co-branding opportunity!). business step for your
Stan Gordon is the CEO of Franchised
scenarios may seem smooth Weigh up the options brand:
Food Company, the umbrella company
sailing and obvious, there and think about whether • Will co-branding offer my encompassing the brands Cold Rock,
are considerations to make the brands will benefit one existing business overall Mr Whippy, Pretzel World
value? and Nutshack.
and details to look into another. Will they both give
before jumping into business enough impact? Ultimately • Are the brands
with another brand. any success that comes complementary and
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LAND OF MILK
AND HONEY
Michael Klim is as an Olympic gold medallist and
former world record holder; he is also the founder
and CEO of cosmetics company Milk & Co. He speaks
with Jonathan Jackson about diving feet first into
a business venture.
U
S swimming great Debbie why companies want people to endorse their
Meyer once said, “Believe in product and what values they wish to portray.
yourself, not only in swimming, He also realised that he wanted to work in the
but in life itself. You always lifestyle industry.
have to have fun. You have to “I could be considered a metrosexual,”
have an open mind. If you’re Michael says, “particularly because I was
not enjoying it, don’t do it. Life’s too short.” so dedicated to my own skin care while
It seems Australian swimming champion swimming.”
Michael Klim lives by the same philosophy, So, skin care it was and it was fortuitous
particularly the life’s too short part. timing.
Michael has crammed a great deal into his 35 “At the time, there wasn’t a great deal
years: elite swimming, teaching and mentoring, of choice in skincare products for men in
running a swim school and now operating a Australia. However, I could see the market
business with significant global reach. growing; by 2008 it was growing at about 40%
In fact, in the short time Milk & Co. has been each year. It was an opportunistic market.”
in operation, its products have been picked Encouraged by his wife Lindy, a model and
up by 5,000 stores across 12 countries. That’s entrepreneur, Michael took the plunge. They
pretty impressive numbers for someone who gathered friends in the make-up and branding
only really entered business in 2007. industries and came up with a skincare product
“In 2006 and 2007 I was looking at potential for the typical Australian male, with typical
retirement from swimming and looking at Australian values.
what else I could do,” Michael says. “In the There is no doubt Michael’s sporting pedigree
past, I had done some property development helped launch the business, but there was a
with my father and we started a swim school great deal of market research undertaken to
chain called Klim Swim. So I had a little bit of ensure the business was viable.
exposure with the business, developmental and Michael also drew on the experiences he had
entrepreneurial side of life.” with his father.
It was this direction that Michael wanted to “My dad always had a pretty amazing
take. The conundrum was what the business attention to detail and was always organised
would be. in terms of tax and balance sheets. He taught
Moving into branding was an option. Michael me to have everything set up financially. I don’t
had been the face of several brands during his have that background and for most of my youth
swimming career and had learnt a lot about my attention was focused on swimming,

c ov e r
“I think
I would
consider
myself, in
some shape
or form, an
entrepreneur.
But I’m
definitely not
an expert.”

but I understood what needed to be done.” catalyst to create a baby range because there
He was a raw entrepreneur when he stared was a lack of anything like that on the market.
Milk and by Michael’s own admission he is still So the brand grew organically, but the beauty
learning, however he is a quick learner. about Lindy is that she’s the creative type and
“I have much better grasp of the financial side I think a lot of brands tend to have people like
of the business. I think I understand retail and that – we use her creativity a lot.”
retail trends much better. I think a lot of it is Michael says Lindy would come up with a
like when most people do it, they do it on a bit million different ideas that would be tested to
of a hunch and they take a bit of a gamble – we see if they were realistic product propositions.
had a little bit of insight into the market, but I Meanwhile, Michael focused on delivering on
think I’ve learned a lot and I’m still learning.” supply or dealing with partners and retailers
Helping with the learning process were and building partnerships. He also says its
friends at Braun and Speedo. Michael was the nice to have someone who is not so focused on
face of Speedo for 13 years and Braun for five looking at the spreadsheets.
years and he learnt a lot about partnerships “You need to have that balance of people who
and the strength of company culture. are creative, business-focused and in touch
“Success for those companies is measured with the market.”
by the message that the brand is portraying.
“You need
Speedo has great ethos in living the brand and
every employee is part of that same culture. On
the flipside, Braun introduced me to the rules
and regulations that keep the brand identity
to have that
very strong.”
Initially the Milk brand was specifically for the
balance of
men’s skin care segment. However, Milk is more people who
than that now; it is a holistic lifestyle choice –
a family run company that creates products are creative,
designed to make life more liveable. Products,
according to the Klim family, that are simple,
business
effective, straightforward and good for everyone. focused and
The range now includes creams, balms and
health food products for him, her, baby and the in touch with
active lifestyle.
“When we first launched, Milk was a product
the market.”
that appealed to the average Aussie
male. It was all about simplicity, Focus is something that has been a part of
functionality, transparency Michael’s life since he was a youngster reaching
and value for money. that long arm of his out towards the finish
When Lindy came on line. His focus in the pool was to set a goal and
board, the brand itself achieve it.
and the business was “I was very fortunate in my sporting career
expanding.” that I was able to achieve most of the things I
Michael says the pair set out to do. So, when I started Milk I had this
complement each other well preconceived idea that it was always going to be
and that’s why it works as a a success. I had no other option.”
family business. Part of that success is also knowing what
“The nice thing is Lindy gave your competitors are up to.
me an initial push to get the “As an athlete, I was always quite analytical in
brand up and running. And terms of what my competitors were doing.
then when Milk, or the men’s So I think we’re doing the same at Milk; we
range, was on the market for analyse the marketplace and understand the
a bit over a year, we had our retail space. I think that’s really important.”
second child. That was the Michael also understands that retailers are

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looking for innovation and products that remain Having said that, Michael still keeps his finger
ahead of the curve. Innovation is a big part on the pulse of all that happens in Milk.
of Milk’s philosophy as it was with He calls himself a little bit obsessive, but
Michael’s swimming career. He was the first to believes he can step away from his micro-
introduce the straight-arm swim stroke and one management personality trait. When he does
of the first to try the Speedo body suit. that he will have achieved the ultimate balance,
The original business plan was to create an which is what the Milk brand stands for.
innovative, well-branded Australian company Michael believes the strength of Milk is that
that portrayed lifestyle. Michael wanted to build it is seen as an Australian lifestyle brand –
a company that he enjoyed working in that a family brand, which is what separates them
didn’t actually feel like work. It’s the way he from bigger players in the sector. The product
felt about swimming and it’s what he wanted offering is a strong one and brings about repeat
to emulate with Milk. customers, allowing them to break into other
He has done that and it remains at the core markets.
of the brand, despite some market changes. Next on the agenda is an amenities and
“Unfortunately customer dynamics change hotel range, expanding the men’s offering and
and customer drivers change. Price became shoring up the food and supplement side of the
such a big thing that we’ve actually had to business, including Milk active and its ready-to-
reengineer our brand.” go flavoured drinks and water. which Michael
Michael is okay with that and understands believes is a fast growing sector.
that he will probably have to do it again in a So with all the foundation work behind him,
few years. While the core values stay the same, does Michael consider himself an entrepreneur?
if the product and service doesn’t change the “I am not sure. It seems it’s a very serious
brand will always stagnate. title. I don’t know. What I can say is I think the
There has been a lot of support for Milk, the brand is sustainable now. We have got a couple
most significant financial support coming from of good margins and decent profit. I think we’ve
Blue Sky Investments, which came at exactly got a good model. I think I would consider
the right time. myself, in some shape or form, an entrepreneur.
“We were at a really exciting stage where But I’m definitely not an expert.”
we had started to develop a women’s range, Expert or not, the figures don’t lie. Milk has
so it was just the boost that we needed,” made major waves in its short life and with
Michael says. those family and core lifestyle values behind it,
“It helped us with the rebranding process in there is no doubt this business can follow in its
making the brand better known as an Australian founder’s footsteps and set a few records.
lifestyle brand.
“We were also investing heavily into export
and investigating this market. So having that
cash to do some of those things and streamline
the business was really helpful at that time.” Quick Facts:
The success of Milk has also been put • Milk & Co is an Australian lifestyle
back into the company: in structure, range with 5000 + stores globally.
training processes and staff to create a more • Milk by Michael Klim has the number
professional environment. one most profitable sku in grocery
Michael lauds the team as being behind the (men’s toiletries).
growth of Milk. This includes a distribution • Milk & Co now has distributors
agreement with a major pharmacy including in 12 different countries.
Frostblandand and deals with Woolworths, • Milk & Co has recently signed
Coles and Terry White pharmacies. 5 new deals globally.
“We have created a very reputable, very • Milk by Lindy Klim launched
experienced company. They all manage their early August into 1000 plus
own part of the business. They are the best doors - 95 % natural.
in their field, and have experience across
the board.”

“When we first
launched,
Milk was a
product that
appealed to
the average
Aussie male.”
Michael’s
5 Keys to
Success
1. The most
important is
having a sound
financial model.
2. Finding common
values in the
business.
3. Have a crack.
People talk the
talk, but they
need to walk the
walk as well.
4. Know the market.
5. Be innovative.

Social media
mediation
It is no wonder our clients are hassling us about the true value of social media. For the
average person, it accounts for 18% of time spent online or more than seven hours on
average per month. While this time seems modest versus, say, watching around 60 hours
of TV per month, social media has already surpassed the average time we spend on the
phone, email and mail combined, writes Michael Simonetti.
T
he majority of people troubled water, it is easy to live without. So if you are business, it is much
are still trying to figure see why there is so much more concerned with just harder to argue against a
out social media. confusion. getting through the day and reasonable level of social
Questions flying our My aim is to de-mystify reaching financial stability, media. It truly forms, as we
way include: do we have to some of the buzzwords and as long as you have have seen for our clients,
actively be involved in social answer probably the most business coming in the a considered marketing
networking? Can we have important question for social door, you can live without channel. However, if you
you or another company media today: where is the social media for now. This are yet to explore social
do this for us? How does real value for your business? is not a get out of jail free media as a ROI channel,
ROI compare with other Let’s tackle this upfront, so clause, because if you are then smart advice is to
advertising channels? How you know if your business interested in new channel have a reputable agency
much should we spend on sits in the current ‘small but leads or you’ve been thrust develop a strategy for
social media? important’ exclusion zone. into the social media your business. Or, you
Most are, at best, Then we’ll move on and whirlwind via consumers can always jump online
scratching the surface of discuss best practice and reaching out to your brand, and read a hell of a lot of
posts, pages and privacy how to measure true social you may not be able to articles on the topic, then
across platforms. With success. leave your Facebook or ‘get your hands dirty’ by
the complexities of rapidly Clearly social media is LinkedIn page just sitting starting up and running
shifting waves and social not the telephone or email there any longer. some accounts. Either way
media ‘experts’ guiding just yet; these are tools For larger companies connect a clear, financially
your budgets straight into very few businesses can or any consumer-facing motivated outcome and you

are on the right track. the point of ‘social’ media 1% of your fan base with the number of enquiries
With over a billion is to have people respond any particular post. you generate. Another
worldwide users, more than and talk passionately about smart challenge is to
half of the online world
actively spends time on
(share) your content. Done
right, it is word-of-mouth
Followers, measure how many people
you can reach with
one (or more) of around a on steroids. advocates, a single post.
dozen key social networking timewasters and I think discussions
platforms. So the carrot
for businesses seems big
What YOU should timing
about how many users
are on each platform are
enough to think about, Spend There is no set or easy way irrelevant for an individual
dabble in or actively evolve to develop these finer points business; there are enough
Time or budget? Spend
your social media projects. of social media; for example, users in all platforms, even
too little and see no real
Where you sit on the scale when best to communicate. new ones to influence a
effect, spend too much too
of activity really ties back to Your goal is to develop rich positive return. Still, the big
soon and you’ll find it hard
the question on value and to determine insights and advocacy and the best way numbers speak volumes,
value is highly correlated to understand the influence. to do this is transparently. as there is a current trend
best practice. Risk a few percent of your Offer something that will move towards global
Here are my top five best advertising budget to begin build your business in platforms.
practice tips to achieving with. No set budget? Then the long-term. I too often But if stats help drive
the most out of social media an absolute minimum in see companies offering home the message about
for any business. time spent or with a third giveaway after giveaway, social media: Facebook
party is $1,000 per month. but forgetting about has already claimed one
Key platforms Earmark 50% of this
budget on social advertising
interesting content related billion users while Google+
The macro approach is to the brand essence. To (despite being stamped a
so you can help generate
which key platforms you develop richer advocacy and ghost town late last year),
direct interest for your
should be engaged in. To be less timewasters, publish has exploded in 2013 to
brand. Don’t burn cash on
competitive, fresh strategies anyone who isn’t interested content that has stronger surpass Twitter and claim
or refinements are required in the ‘real you’. ties between people and the second largest social
almost every quarter. your brand. You may have media platform. Google+ is
Plus, some of the greatest fewer followers, but they will growing at over four million
opportunities are in the be the right followers and users per week and its
emerging platforms, which
Content strategy they will influence others. SEO connected +1 button
are problematic to pin Create a content strategy So in regards to timing, play is being clicked over five
down unless you already and plan a year ahead the long game. million times a day. With
have a highly evolved social quarter by quarter. Adjust figures like these, social
ecosystem.
Pinterest is 80% female
your strategy based on the
other best practice tips
Return on media as a tool or a channel
provides unique access to
and Reddit is 65% male. and the feedback you are investment clients and consumers. If
Then, by size, key platforms acquiring from followers. Use platforms to measure you can follow best practice
include Facebook, Google+, Consider a blend of and monitor your social and see a return, continue
YouTube, Twitter, LinkedIn, original content (a must), presence and build in KPIs. amplifying your social
MySpace, Pinterest, Tumblr, text, images, video, social It is easy to be diverted by media strategy for greater
Instagram (now owned commentary, responses, statistics and data overload end-to-end digital success.
by Facebook) and they competitions, advertising so I encourage you to build Feel free to hit me up
should all be considered and, most importantly, in a few simple conversion @andmine.com if you have
based on age, demographic define a tone of voice and goals that mean something any questions.
and platform UX (User stay within this brand to your business in the
eXperience). To determine character. The ‘real you’ real world. I’m constantly Michael Simonetti is the founder of
AndMine.com, a digital agency that
which platforms will suit (even if the character is talking and writing about
partners and advises to some of the
your business, research fictional) forms a narrative real-world ROI so, when biggest brands in the world, helping
the content published and people warm to. Ensure possible, connect your them develop and successfully execute
online strategies.
ensure the original content social is connected to your social channel to converted
you aim to add is at a wider digital ecosystem and sales and watch that
similar quality and equally/ content strategy. A good closely. A reasonable
more engaging. Remember rule of thumb is to engage second to this is to monitor

Why you W
hile there is certainly nothing
wrong with the person who
has a vision and makes it
his mission to bring it into
shouldn’t
existence, this is not a proven way
to make money, and often becomes
a problematic burden that rarely
reaches the heights the founder had
reinvent
hoped.
It’s easy to look at Facebook or
Google and say “why not me too?”,
but you must remember that the
reason we know of these companies is
the wheel
because there are so few of them, and
there are so many inventors trying to
emulate them.
The second approach is to borrow
an existing, working business model
and base your company around it.
This strategy offers many advantages
that should be carefully considered by
anyone looking to enter the business
There are two distinct ways world.
to go about founding a The biggest and most compelling
business – running with your argument in favour of following a
latest ‘big idea’, or following proven system is that it saves time,

money and effort. It is hard to argue
a tried-and-true business against that in today’s economy.
model, writes Alex Pirouz. We can’t afford to waste anything.
Someone else has already expended
the resources to develop, test and
implement something, so why not
take advantage of the work and
the associated savings? Are the
improvements, if any, worth it?
To gain a better understanding
of this topic, I recently spoke with
Aleksandar Svetski, a Sydney-based
entrepreneur who, after launching,
growing and successfully exiting
multiple start-up businesses from
scratch, is now focusing his time,
money and resources on building
CRAVE Frozen Yogurt – a franchise
business – rather then reinventing the
wheel.
“Life and the world have a way
of equalising themselves, as do
opportunities and efforts. I used to
have the mindset in business that
if I did everything, I could either
save money or make more money,”
Aleksander says.

“My aim used to be to vertically
integrate every business, thinking “life in the trenches of a
that I would increase the volume of
business or increase the margin in
the process, and even if I did succeed
start-up is a roller coaster.”
in doing that, I found myself working
two, three or four times as hard and that ‘so long as they build it, the idea of what he is getting himself into.
increasing my stress levels beyond customers will surely come’. He hopes it will pay off big in a short
what I could cope with. The frightening reality is that this period of time, but will it? And what
“In essence, I would trade my most isn’t always so, and months of about all those 14-hour days that
valuable commodity, time, for money, planning, spending, blood, sweat need to be put in for months at a time
or some other achievement or reward. and tears can go to waste when the to get it in working order?
At this stage of my business life, I’ve product launches and no one shows By borrowing a working business
adjusted my thinking, which I believe up to buy it. model, you can easily create your
we all do as we mature. I now value When you use a proven business expectations around the common
my time far more than I value money model, you can avoid this danger experiences of other businesses doing
and I am a big believer of standing by studying the market that other the same thing.
on the shoulders of giants and companies are targeting. Implement
horizontally integrating a business. variations of these strategies in your 4. Existing
“This change in mindset means that business and carve out your share of
I leverage off what has already been the market with ease. infrastructure
done and work together with others Designing the infrastructure of your
who have experience or expertise in 2. Known disasters business from the ground up is a
those areas. Yes, I may pay more for challenging and all-consuming task
services, I may have less control and Life in the trenches of a start-up is that will come to define the way the
I may decrease volume and margin a roller coaster of highs and lows – entire company is run years down
in the business, but I buy back my celebrations and catastrophes – and the road. If you pioneer a brand new
most precious commodity: time,” if you make it out alive, you’ll be a business model and you don’t have
Aleksander explains. much more resilient person for it. By shrewd business experience to help
While there are hundreds of reasons reinventing the wheel with a totally you answer these questions and
why you shouldn’t reinvent the wheel, new business model, you become like forge your infrastructure the right
below I have listed what I believe to be a blind man walking into a snake pit way – best of luck to you. However,
the top four. – danger around every turn and no sticking to a proven model comes
way to prepare for it. Unfortunately, with the benefit of a pre-existing
“we can’t
borrowing an existing business infrastructure. No guessing, no
model cannot prevent disasters from trial and error – just a ready to go
afford striking, but it can better prepare you

for what lies ahead.
blueprint for success.
In conclusion, a careful and
to waste 3. Realistic expectations

thoughtful analysis of your personal
goals for establishing a business
anything.” The expectations you have for your

new business affect the way you
should help steer you in the direction
of the type of opportunity that is best
for you.
approach your work and gauge your
1. Clear market demand progress, which is important for over-
Alex Pirouz is an author, business advisor and mentor.
He advises CEOs,executives, directors, entrepreneurs
all morale and dedication. and SMEs on their overall business strategy and
execution. Twitter: @alexpirouz
One of the biggest challenges that new From the work involved and hours
business owners face is determining required to the expected pay-out,
whether there is market demand for having realistic expectations and
their new product. This crucial task attainable goals keeps you focused
can be so foreboding that some choose and clear-headed.
to ignore it as they blindly launch into The guy who has the next ‘big idea’
development, assuring themselves and sets out to build it has very little

RVICE
E
S
IL E
W IT H A S M
In this final installment of Pacsoft founder Andrew Darbyshire’s three Ps

to success, he looks at the importance of delighting your customers.
W
e live in a customer service- up on time with the goods. You have your business is with referrals from
driven economy; look after to listen to them, hear them out, ask current clients. I believe customer
your customers or someone questions, confirm their objectives, service can be broken down into three
else will! I maintain that there and only then should you attempt to Ps. Develop these behaviours and
are two important things a business deal with their issues. This is true carry them with you always,
owner or manager has to continually do. whether you are selling something, as a carpenter carries his hammer.
First, ask questions of their team. People negotiating an outcome of any kind,
won’t always tell you what is important and in particular when you are PROMPTNESS
because it may not seem important to dealing with a customer complaint
them. But it may be critical to you and or crisis. People like to know they A. Call people back promptly every
your clients. Generalised questions are listened to and understood. They time. You never know what someone
won’t turn up the same issues that very must be given the chance to explain is calling you about; it may be a big
specific ones will. the situation fully to their satisfaction. opportunity you have been waiting for
If I am following up on a customer Only then should you deal with the and not what you’d expect.
issue and I ask, “Are they happy?” I situation to the best of your ability. B. Deal with issues in a timely
may be told, “Yes.” If however I were to If a problem is unresolved then manner. The best way to prove to a
ask if a specific issue has been resolved, apologise and do what you can to customer that you want their business
I may get a long-winded answer that make it right. is by treating all customer issues, good
reveals the issue isn’t resolved; so how Prescribing a cure without proper or bad, with a sense of urgency.
can the customer be truly happy? diagnosis is malpractice. Sometimes C. Deliver the goods by or before the
Secondly, always be on the lookout for it’s necessary to dig deeper than expected day/time. If you say you are
ways to simplify your business. Asking the surface. Nuggets of wisdom and going to deliver a product or service
questions of your staff will disclose opportunity can arise from a deep- by a certain time, then take that
where complexities are creeping into seated level of satisfaction or lack of commitment seriously. Your word has
your business – because complexities it. It may take some extra attention to be your bond in order to maintain
only introduce room for error. to uncover and resolve underlying your reputation.
When you put your customers first, issues, but don’t be afraid to ask the D. Never be late to an appointment
this means more than just turning tough questions. A great way to grow and avoid being too early. It is simply

rude to arrive late to an appointment. to elicit the customer’s needs and supply. Don’t have your mind on
If you do arrive early it’s important desires, and finding the appropriate something else; it will be a waste of
to acknowledge that you’re early and solution to meet those needs. time for you both, and you will miss
happy to wait. Don’t place pressure on B. People need to be heard. The most vital signs that they give out. Most
people to rearrange their schedule. important thing a good communicator important though is to look people in
will do is continually flush out what is the eye. A lot of people instinctively
Politeness on the other person’s mind, and you sense whether they like a person
can only do that by asking questions or what they are saying by the eye
A. When answering the phone, that make them feel comfortable contact they can or can’t make with
everybody should answer, “Good and let them open up to you. This is the other person. People make most
morning or afternoon, thank you for particularly important when dealing of their decisions based on emotional
calling X company.” It is important with customer issues to let them get it feelings, and eyes are without a doubt
that all your team answer the phone all out on the table, and then confirm one of the most powerful senses that
in a consistent and polite manner, it what they have said to ensure you feed data to our emotions. The quality
sets the tone of the conversation.
B. Smile. Practice smiling at people
when you greet them, it will only
take approximately 28 days for it to “People like to know they
become an automatic habit that you
don’t even have to think about. Smile
even when talking over the phone; it
are listened to.”
comes across at the other end and it
will also help you have a good attitude understand before even attempting of our relationships is under attack
towards clients. to address any issue. If someone is by modern technology. Put down the
C. Do what you say you will. If you putting a point across that you don’t Blackberry, turn off your cell phone
make a commitment to put someone entirely agree with, it helps to travel and pay attention to the person you
in touch with someone else or to do a down the path they are going down are with.
favour, even if it doesn’t have a direct with them, and resist standing up to
benefit to you, do it! There is nothing them.
C. Find out what is important to them.
THE MISSING P
worse than empty promises of help,
and many people hand them out freely. What is important to you doesn’t IS PRICE!
D. Never hang up the phone before matter. Don’t just go in boots and all,
the other person does. How often do talking about what you get a buzz Do a good job on the service
you just want to get off the phone? from. Ask questions to find out what front and price is one of the least
Well don’t be in such a hurry. The is important to the other person, and important elements to a client.
empathy you build up over the course then present what they want to hear People understand why Mercedes
of a phone conversation can take a about. After that is done, if you feel Benz is dearer than Hyundai. They
huge hit if the other person still has there are other benefits, present them also understand that their family’s
the phone to their ear when you place but ask permission as you go. Forget safety is priceless. The same applies
yours on the receiver. the features. Products are packed with to your business: why would you
features, but largely all clients want place it in the hands of dangerous
PERSUASIVE to know about are the benefits it will unprofessionals with cheaper half-
bring to their lives. Once a product is baked solutions? It is far better to hold
COMMUNICATION purchased and they have learnt how off until you can afford the best.
to utilise the basics, it is then that the
A. We have two ears, two eyes and features come in to play. Andrew Darbyshire is a successful Melbourne-
born businessman, mentor, speaker, author and
one mouth; use them equally when D. Look people in the eye and be
philanthropist. He founded his software business,
communicating with clients. In other absolutely present. If you are with a Pacsoft, in the mid-80’s and now has staff and offices
words, let them have their say. Good client and talking to them, remember in Australia, New Zealand and the USA.
service involves asking questions their time is precious and in short

The secret to marketing
in tough times
The secret to marketing in tough times is simple. Ask your clients what they want.
What’s crazy about this strategy is that they might just tell you the answer, writes Nicole Smith.
W
hat’s even crazier is that few Here’s an example: After years design firm ticked all the boxes, but
companies embrace detailed of being the preferred construction no, they weren’t being recommended
market research. Not your company for a retail supermarket as they simply weren’t being as
standard, garden variety chain, the work just dried up. And the proactive as other competitive firms.
of market research in which the construction company’s management “Some of the competitors come to
client ticks a few boxes or answers a team had no idea why. “Let’s ask us with opportunities outside bids,
few questions in an annual survey. them,” I suggested. The CEO of the and provide us with insights into
I’m talking in-depth, one-on-one retail company was happy to meet with market trends. We want to work with
interviews which uncover the good, me, and we discovered that a project companies that see us as partners,
the bad and the ugly of working with manager – one who had already moved not simply as go-betweens.” The
your organisation. on – had managed to offend nearly result? A change in marketing
In business-to-business companies, every one of the retail chain’s staff. focus and a reinvigorated business
particularly in professional services, When he left the receptionist in tears, relationship.
it’s not uncommon for a client to be they changed construction companies. So why is market research such a
worth millions of dollars in fees. And “We really liked working with your powerful tool?
yet, rarely do companies take the organisation – we just didn’t like this
time to find out whether their clients
are happy with the service they are
one guy,” was how the CEO put it. No
one in the construction company had
1. Australians don’t
receiving. any idea this was the issue. Once they complain – they just
For more than a decade, I’ve understood, they could work things out go elsewhere
undertaken intensive marketing – and were awarded contracts worth
research for my clients – often dozens millions of dollars as a result. Aussies don’t like dobbing in their
of interviews over a period of months – Here’s another example: A design mates to their bosses. Many people
and have discovered that a few hours’ firm had worked through an feel uncomfortable complaining about
research can mean the difference intermediary organisation for about a a business associate – especially when
between winning and losing millions of decade, but had noticed, particularly they are being asked for feedback
dollars of business. over the last few years, that they from someone within the business. In
It may seem counter-intuitive, but were repeatedly coming second in most cases, they’ll just go elsewhere
in tough times, clients rarely make tenders. Hundreds of thousands of and your company will never know
decisions based on price. People know dollars in time and money had been why. This is an expensive outcome
that when work is scarce, they’ll get a wasted. The design firm’s marketing when your client is worth hundreds of
good deal. team had undertaken proposal thousands, if not millions, of dollars.
So, what does matter in the lean debriefs, and conducted one-on-one An objective outsider can often gain
times? Relationships matter more than interviews with the consultancy to the vital information that those in
anything else. People want to work identify issues. The feedback was your company are unlikely to hear.
with companies they like and trust. always the same. “You’re doing a good
Comprehensive market research
enables companies to identify clear
job; it’s just that the other company
was better on the day.” The design
2. Bad is good
trends across the business and firm wasn’t reassured, and decided CEOs and company directors are often
uncover specific relationship issues and that objective, external interviews worried that market research will
opportunities. might reveal the truth. Yes, the uncover some bad news. “What if our

“your clients will
tell you these answers.”
clients say bad things about us? Do

we really want to know?” Yes, you do!
4. Don’t spend a cent
Ironically, the negative interviews are on marketing until
the most powerful. When someone is
feeling unhappy with your company,
you know what your
and yet they are willing to spend clients want
up to an hour of their time sharing Rather than trying to second guess
what’s gone wrong, it means they want what marketing strategies will most
something to be done. It means the appeal to your clients – ask them.
problems can be fixed. If your company How do they like to receive their
chooses to listen to this negative communication? What are the growth
feedback, and makes a concerted effort areas in their business? Where do they
to address the issues, the unhappy see the opportunities for collaboration?
client tends to transform into a
loyal, engaged one. They know, from When asked in the right way, your
experience, that it’s OK to speak up clients will tell you these answers.
when they are unhappy, because their From there, a highly-customised,
problems will be resolved. They become clever and creative marketing and
an evangelist for your business. business strategy can be developed to
meet these needs and opportunities.
3. Your people As one interview subject said to me
recently, “The gold will be found in the
are the brand creativity, not in the engine room.”
We’ve heard this one before, but do
your clients actually enjoy working with The bottom line is simple. In a tough
your people? In any type of professional market, winning new business is costly
services business, the key client in terms of both time and money –
relationships are held not with the and the odds of winning new work
CEO, but with the people who deal with are lower, as more people compete
the clients on a daily basis. Your staff for fewer projects. The bulk of new
might be brilliant architects, shrewd work comes from existing clients and
lawyers or savvy project managers, but referrals – and the key to securing loyal
those core skills don’t necessarily mean clients is to know them inside out. And
that they are great communicators, how can you possibly know what they
negotiators or marketers. These want if you don’t ask?
staff members can often unwittingly
upset a client – usually through poor Nicole co-founded Trilogy Integrated Communication
in 1999, and provided strategic marketing services
communication, taking an adversarial to a range of clients in the building, architecture and
approach or simply by not meeting the design industries.
client’s expectations. Without providing
your client with a channel to resolve
this, you may lose the client – and
never know why.

How is your
Corporate Karma
account balance?
Business requires good
karma to survive,
writes Andrew Griffiths.
P
erhaps the place to start is business trustworthy? Is the business the credibility of larger companies has
explaining exactly what a concerned with the long-term good of been challenged – a lot.
corporate karma account all, or the short-term benefit of a few? What’s the big deal? The balance of
is. I think it is the collective Now, these opinions are not formed an organisation’s karma account will
sense of goodwill that the broader overnight. Most larger corporations influence its profitability, resilience
community has towards a specific tend to start their karma account in and long-term success or failure.
business. Do they feel that the the red, as the broader community The karma account certainly
business is a ‘good business’, one tends to reserve judgment about influences the media. Those
that plays a proactive role in the a business until they have more companies with big karma balances,
community? Is it a business that is information. They start with the belief let’s pick Virgin as an example, can
committed to doing the right thing that a large company in particular has in many ways do no wrong. They are
– environmentally, socially and to prove itself before they will give it the sweethearts of the corporate world
financially? Is the business honest? credit, depending of course on who is and it is reflected in the media. They
Are the people who are running the behind the company. In recent years don’t enjoy this status randomly, their

actions over many years have built throughout the company. The maybe not at quite the same scale,
their considerable karma account staff become involved and buying but tell people nevertheless.
balance. Virgin can get away with decisions revolve around making a The time to be embarrassed or
making a blunder or two, as long difference or supporting others as coy about community involvement
as their balance stays in the black. opposed to saving a few cents. As the is long gone. If you don’t promote
They get through challenges in much business grows, there is a constant the fact that your business makes a
better shape and with the cheeky and never-ending desire to find more difference, you will lose customers.
grin of Sir Richard Branson not far ways to make a difference. Given the choice between supporting
from a camera. Last but by no means least, the a business that makes a difference
So how do you build your karma business needs to be very good and one that doesn’t, the vast
account balance? A great question. at communicating... and I am not majority of customers will always
There is no one single activity that talking about putting ‘spin’ on choose the more responsible
will build your karma account, but things, but genuine communication business, even if they are a little
rather an all inclusive attitude or with all people who have some form more expensive.
culture. Your organisation needs of interaction with the business. This
to be 100% committed to the means sharing victories as well as
community or communities where
it operates. This means being
challenges. Being open about their
values and vision for the future and “The karma
genuinely and actively involved
in supporting the people of these
where they stand in the community
and how they intend to make a
account
communities, the businesses that
operate within the community and
difference.
The concept of the karma
certainly
the environment. The key word here account is equally as applicable for
influences
the media.”
is genuine. small businesses as it is for large
corporations. All businesses need
to be aware that they have a karma
“a business account and the balance is mostly up

to them. So clearly we need to let our
that makes When everything is going great,

you can get away with a negative
customers know what we are doing.
This can be on our website, with
nothing balance, but when things get

tough or your business faces some
certificates on the wall in our office,
in our newsletters, with our logo
but money challenges, the negative balance is

enough to close the doors as the
included in the not-for-profit’s
promotional material, in the local
is a poor business will not get the support of

the broader community.
media, on our vehicles and just
about anywhere else where we
business.”
- Henry Ford
One of the biggest struggles that
many business owners seem to
can communicate the fact that we
care and we are trying to make a
have is the awkwardness of telling difference.
others, specifically their customers, My advice is simple: take the
Secondly, the business needs about their corporate citizenship. As right actions to keep topping up
to have a strong and clear leader always, I draw back to what the ‘big that karma account. Make it a
who is vocal. This leader needs to boys’ are doing. daily activity and be genuine and
personally live the culture of making Most publicly listed entities have sincere about it. It may just save
a difference. A good leader steps up a space on their website explaining your business one day. Remember
when the company makes a mistake what they are doing to make the the wise words of Henry Ford: “A
and apologises sincerely and quickly. world a better place for all involved. business that makes nothing but
They don’t get caught up in whose Many will promote their philanthropy money is a poor business.”
fault it is; they focus on fixing the in the media with specific television
problem. Even more specifically they commercials explaining the Andrew Griffiths is Australia’s number one small
business author, with 11 books now sold in over 50
focus on doing what is right. programs they run and the not-for- countries. www.andrewgriffiths.com.au
Thirdly, the culture of making a profit organisations they support.
positive difference is encouraged Small business should do the same;

The absolute must do’s to
leverage
and
maximise
opportunity
Finding key leverage points within your business is important
to effecting positive change, writes Pat Mesiti.

A
s the economy and I know people who an enterprise, I always find between them they said:
industries continue started in small things, like the best person to help me “Rivalry has no place when
to evolve, so must our an online business, and achieve my goals. And I making music. We have to
strategies and skills. created great wealth from it. reward them handsomely. put our whole heart and
The amazing thing about Others took an opportunity Many of us don’t see soul into a unified voice!”
opportunities is they always to invest in a small property opportunities because That’s what we must
look better going than they and now have over 20 we are too short-sighted. do. If we want to leverage
do coming. Many years properties. We’ve got to look Joseph P Kennedy once our opportunity, we need
ago I was asked to take at opportunities as a means said neither he nor his to celebrate each other’s
over a drug rehabilitation to an end. The key is: you children would have any uniqueness without being
facility, and quite frankly will either make excuses political aspirations. Years threatened by it. It’s about
it didn’t look like much or you’ll maximise and later, his son Jack Kennedy having the right mindset.
of an opportunity. It was leverage your opportunities. became President of the Most people see what can’t
$276,000 in debt and was But you can’t do both. United States and his sons happen but the opportunist
losing $27,000 a month sees what can happen.
with only four boys in the Here’s the cruncher:
program. Matter of fact you must have a dream
it was such a challenge,
most people wouldn’t touch “Make sure you share if you want to leverage
opportunities. You’ve got
it. But I could see there was
a major need for it.
your opportunities to begin with the end in
mind. Decide what you
The chairman of the
board told me they couldn’t
with others.” want to achieve, then
work backwards. Every
find 30 young men with opportunity needs a
addictions to fill the facility, destination; otherwise it’s
in Sydney of all places! Here are some tips Ted and Robert Kennedy just a whimsical thought
I think I could find 30 drug on how to maximise became Senators. or idea.
addicts in just one suburb, opportunities. The reason we don’t take Opportunities come to us
let alone a whole city. 1. See what’s possible. opportunities is because every single day. Some of us
The problem was they You and I must understand they often arrive brilliantly grab them and run; others
didn’t know how to the power of possibility. By disguised as impossible run scared. If you want to
leverage the opportunity. always thinking of what’s situations. leverage and maximise an
I really believe many of not possible, you will I’m sure all of us look opportunity, you must see
us are like this. Look at never, ever maximise an at things like Instagram it for both its difficulty and
the Beatles. When they opportunity. or Facebook and wish we reward. Only then can your
went to Decca Records the 2. Make a plan with had created it, but how life go to another level.
management told them, whatever small opportunity do you know the ideas and
“Bands with guitar sounds you have. Just remember, concepts you have aren’t Pat Mesiti is an internationally
celebrated speaker, seasoned business
are out of fashion.” What a you’ll never start anything the next great idea? It’s just executive, entrepreneur, mindset
missed opportunity. They at the top. In fact, the only a matter of presenting it to growth strategist, best selling author
didn’t know how to leverage job you do starting at the the right kind of person. and consultant. Pat’s books and
courses have sold over two million
this world-changing band. top is grave digging. And it’s You see, you’ve got to
copies. He is the author of eight best-
But more importantly, all downhill from there. understand the power of selling books such as The $1 Million
where is Decca Records You must have a plan. networking with others. The Reason to Change Your Mind, How to
Have a Millionaire Mindset, Soaring
now? The Beatles albums 3. This is important: synergy of working together
Higher, Dreamers Never Sleep, and
are still selling. make sure you share your creates something which Staying Together Without Falling Apart
I wonder what opportunities with others. brings long-term results. and in February 2013, he released
opportunities you’re not Then there will always be No-one achieves success by Pathway to Prosperity.
seeing. Most people say, someone there who can themselves; we succeed by www.mesiti.com
“I would never have done help you along with your working together.
that. I would have taken dreams and leverage your When the Three Tenors
that opportunity”. Well what opportunity even better. - Domingo, Pavarotti and
about the opportunities you 4. Get the best people Carreras - were asked
have right now? around you. When I begin if there was any rivalry

F LY I N T O Y O U R F U T U R E R E T I R E M E N T
The heart of good property investment is finding the next boom, but it can be tricky. Traditionally,
it was seaside towns that displayed the double-digit growth we were looking for. Today, it is locations
with high employment growth that is sending property prices soaring. Blue Horizons, has
identified two towns backed with the strength of mining and gas developments, that are pack-
ing a fierce punch. Chinchilla and Miles, in Queensland’s Surat Basin, are the next hotspots; ru-
ral towns set to explode thanks to the $30 billion worth of coal and gas projects surrounding them.
A boomtown is about more than just the booming employment – it’s about the corresponding
development in both residential and commercial arenas. Skyrocketing rents and capital gains are in store
for anyone smart enough to invest in property now. You are in the perfect position to expand your wealth
beyond your expectations.
Blue Horizons is your perfect partner. We specialize in offering high yield, rapid capital growth
property investments resulting from mining and industrial expansion. We have been 100% focused
on the Surat Basin since 2008. You can find comfort, knowing that Blue Horizons puts their mon-
ey where their mouth is – we have such confidence that this region will be the stand out perform-
er in the Eastern states for the next 10 years we have personally invested ourselves. This investment
opportunity mirrors the same property boom that has occurred in various mining towns over the last decade,
including the Bowen Basin, Mackay and Gladstone. Blue Horizons led the charge in both of these cases,
with our investor clients in the Bowen Basin and Gladstone now enjoying properties that have doubled in
value.
Roma
Miles
Chinchilla
Brisbane
The precedent has been set and it is now common knowledge that towns leveraged to resource booms
are quickly followed by skyrocketing property prices and rental demand. It is not too late. In fact,
housing prices in the three key support towns for the Surat Basin, Chinchilla, Miles and Roma, remain
affordable and representative of new house prices in any part of Australia. The astute investor buys be-
fore the boom. This region is at the very beginning of a breathtaking growth spurt. Here is where
you come in. With the benefit of Blue Horizons experience and knowledge, you can be one of the
forerunners, investing in property to maximise your profits.
The extra bonus that comes attached to the Surat Basin is that the region is not solely dependent on the
resource boom. While coal and gas projects are providing the impetus for growth, the region is already
thriving in its own right with a staunch and proven agricultural industry. Surviving droughts and economic
uncertainty, the Surat Basin’s agricultural roots have remained a stalwart pillar for the community.
S U R AT B A S I N I N V E S T M E N T O P P O R T U N I T I E S
Package A DUPLEX : 2 x 3 bedroom, 2 bathrooms, double garage units,
ducted A/C, stone benchtops as standard.
Price $745,000 - Rent $750 p/w per side x 2 = $1500 p/w

Total Gross Return 10.46%
80% LVR loan $596,000 @ 5.7% I/O = $33,972 or $2831 p/m

Gross rent = $78,000 or $6,500 per month
Depreciation figure average over first 5 years = $20,000

Tax offset @ 45% = $9,000
Rent + Depreciation : $78,000 + $9,000 = $87,000

Income - Interest : $87,000 - $33,972
Gross Annual Return : $53,028+*
Package B
HOUSE : 4 bedroom, 2 bathrooms, double car lock up,
ducted A/C, stone bench tops as standard.
Price: $480,000 - Rent $750 p/w

Total Gross Return = 8.12%
80% LVR = $384,000 @ 5.7% I/O = $21,888 or $1824 p/m

Gross Rent = $39,000 or $3250 per month
Depreciation figure average over first 5 years $12,000

Tax offset at 45% = $5,400

Income - Interest : $44,400 - $22,512
Package C TOWNHOUSE : 3 bedrooms, 3 bathrooms, double car

lock up, separate fenced yard, ducted A/C as standard.
Price: $435,000 - Rent $750 p/w

Total Gross return = 9.06%
80% LVR = $344,000 @ 5.7% I/O = $19,608 or $1634 p/m

Gross rent = $39,000 or $3250 per month
Depreciation figure average over first 5 years $12,000

Tax offset at 45% = $5,400

Income - Interest : $44,400 - $19,608
* Disclaimer: Information provided is not intended to be Tax, Financial or Accounting advice. We recommended to obtain independent advice from your own Tax, Financial or Accounting Professionals as individual tax or financial positions may vary.
Once you start working with Blue Horizons you will always have first access to new releases. We have a diverse selection of
properties to offer - House and Land, Duplex and Land, Townhouses and Villas, all competitively priced and delivered turn key with the
highest level of finishes. We act as your property partner, taking care of business while you are at work. From choosing colours to final
inspections, and everything in between, we provide a personal and complete service. You need only email or call to express interest in
the investment opportunities on offer and we will do the rest.
For further information contact us at www.bluehorizonsproperty.com and we will send you our free
11 page report on the Surat Basin complete with a snapshot of available properties.
Real value is not the same
as the asking or selling
price
There are often two market
assessments that people refer to when
talking about the value of a property –
appraisal and valuation.
The appraisal is what a selling agent
will provide to you. An appraisal is
a market indication based on some
comparable sales that the agent is
aware of; it is not a valuation. If you rely
on this and list your property for sale,
you will likely find that this appraisal
price is not an indication of real value.
A valuation is a calculated figure that
includes an assessment of the land
value and the improvements, taking
into account the depreciation of the
property since construction. It also
includes sales comparison, construction
costs, town planning commentary and
What the
a breakdown of living areas, outdoor
areas and car areas.
As a buyers advocate, every day I
property
see listing prices very rarely in line
with the market value of the property.
Sellers start with a higher price to see
if this can be achieved, then generally
speaking, the listing or asking price
prosknow
is reduced until there is an offer from
a prospective purchaser. A selling
agent’s appraisal is generally not an
indication of real or market value.
Real value or market value is the value
of a property assuming that there is a
willing buyer and willing seller in an
arm’s length transaction. This figure is
what is reflected in a valuation.
The world of property can seem foreign

to first home buyers and even seasoned Risk ratings and your
investors. James Freudigmann of Propell bank’s lending decision
National Valuers gives some insider’s tips Risk ratings are used as a benchmark
for lending purposes, so that the bank
into the property market. can determine whether they consider
the property to be appropriate security
for the lending associated.
There are eight risk ratings that a
valuer must assess and classify from
low-risk (rating 1) through to high-risk
(rating 5). The eight risk ratings are
based on the following.

• Location. properties that are not out of the marketability of a property - the
• Land. ordinary and are well located. Every photos will attract more people to
• Environmental issues. suburb has good and bad areas as well attend open home inspections.
as sought after addresses, so look for • Two of the biggest items that will
• Improvements.
properties in close proximity to these add value to a property are a new
• Expected reduced value in the
areas. Big positives include being close kitchen and bathroom. Investors and
next two to three years.
to cafés, schools and transport. owner-occupiers repeatedly demand
• Market for the area. functionality and style in these rooms,
• Market segment conditions.
Size matters and getting this right can help you sell
your home faster.
• Volatility of the property.
When you are considering purchasing • A covered outdoor area that flows
All of these provide a quick summary a property, the majority of people think from the living area can add value.
of the position and quality of more bedrooms equals higher value. People not only want to entertain in
your property in the marketplace. It’s a rational line of thinking, given these areas, they want this space to
Properties with risk ratings of 4 or 5 you can get a higher return renting be protected from the weather and
are considered to be relatively poor by the room, so more rooms would become an extension to their general
security for banks. If your property suggest more renters. living area. Bi-fold doors, stacker
gets a risk rating of 4 or 5, there is Propell National Valuers takes a doors and servery’s from the kitchen
potential for the bank to limit lending different view. A small house, let’s are other ways of adding value to
or not lend at all. say approximately 100sqm, that your property; but beware, the cost of
has been converted into five or six bi-fold or stacker doors can be quite
So how do you protect bedrooms of about 2m x 3m, is likely
to receive lesser demand in a sale than
expensive.
• Storage is also highly sought after,
your property from being a property with three bedrooms of a so secure car accommodation with
assessed as high risk? decent size. good storage is considered a premium.
Buyer behaviour shows us that The majority of people have too many
A simple coat of paint or landscaping having good sized bedrooms is possessions to get into a small unit
generally won’t impact on the generally in greater demand than so if you can convert some car space
property’s risk rating. It all comes having more. If you’re planning to add into storage above the car or in front of
down to what property you buy and on a bedroom or convert a current it, this will help to increase the value
where that property is located. For room into a bedroom, you need to of your property. Where possible (it
instance, if you buy on a main arterial consider what number of bedrooms a may be harder for units in Sydney
road, you are going to get a risk rating prospective purchaser will be looking and Melbourne), create storage for
of 4 or 5 due to the noise and traffic. If for. If your answer is three or four, suitcases, linen, garden equipment
you buy a property that is $3 million then don’t create five small bedrooms! and so on. Built-in or walk-in
in an area where most properties are Instead, ensure your three or four wardrobes are also in high demand, so
$500,000, then you are likely to get bedrooms are well sized and equipped it would be a wise investment to install
a number of high risk ratings due to with built-in robes and storage. these if your home doesn’t already
the volatility, limited market segment have them.
that the property appeals to and the
potential for reduced value in the next
What are the things that • Neutral and earthy colours are
essential to ensure you have the
few years. It is all about purchasing a add and reduce value? best marketability. Feature walls can
calculated investment. There is no definitive list. Markets detract from a property if it is not a
You are always going to struggle to all around Australia reflect colour that most people enjoy. Bright
get strong growth and low risk ratings varying affluence, demographics, reds, blues and greens should not
if your property fronts a main road, infrastructure, employment and so be included in the property, even
backs onto a train line or is in the top on; so what may add value to one as a feature wall, as this limits the
5% of the market due to the limited property in inner Sydney may not marketability and can put some
marketability, high vulnerability and add value in regional Queensland. buyers off completely.
volatility when markets move. That said, there are some items
To ensure your risk ratings are worth considering which have drawn James Freudigmann is the national manager
for Propell National Buyers Advocates.
assessed as low to medium, it is a demand in general, and therefore,
recommended to purchase property improve marketability and sales.
that is relatively in line with the • A well landscaped front yard
remainder of the suburb. Look for with a good fence will improve the

Top tips to
Leadership
excellence
From the largest enterprise to the smallest
start-up, the most successful businesses
are not just well managed – they are well
led, writes MYOB CEO Tim Reed.

B
ecoming an employer for the first time can be a what they need to achieve is to demonstrate the task
real roller coaster, especially in a newly established and the process required. To highlight any potential
business or one that is expanding to take on its first misunderstandings, ask them to explain their
employees. To be successful in managing staff and understanding of the task in their own words. It’s also a
in inspiring them to achieve your business aims along with great way to test and develop processes in a real-world
their personal goals, think long and hard about what sort environment, giving opportunity for improvement, and it’s
of leader you want to be. an opportunity to improve your own communication style.
Running a business means taking on a lot of roles. One Many business owners become their own boss because
of the most challenging and rewarding roles is building and they have a real passion for what they do. By demonstrating
managing a team. In my experience, a highly effective team how you want things done, modelling behaviours you’ve
can be the cornerstone to a successful enterprise and the found to be successful and celebrating the wins, you get a
key to a highly effective team is a great manager. chance to share that passion with your staff.
This often involves learning on a pretty steep curve.
Fundamentally, the best employers think about how they
want to lead people rather than micromanage them. They
“Running a business
means taking on a lot
strive to engage, inspire, communicate and collaborate with
staff, bringing out the best in them on the way to achieving
of roles.”
shared goals, rather than dictating.
Many start-ups and smaller business owners find it
difficult to hand over certain responsibilities to their
employees. Avoiding falling into the ‘I have to do it all myself’
trap can make all the difference to business growth and 3. Collaborate
development, as well as being the key to a positive, engaged A good leader recognises that great ideas can come from
team. As the team development cycle progresses, the best anywhere. Your team should be empowered to share ideas
management approach moves from a directive one through and given plenty of opportunity to add value to what they
coaching and supporting, and into effective delegating. do – innovation breeds success.
Sharing ideas and collaborating across the business
MYOB’s key principles can be a fantastic way to gain significant increases in
productivity and performance. Creating both formal
for business leadership and informal processes to regularly discuss business
1. Communicate improvements not only engages employees, it gives you an
One of the key traits great leaders have in common – in opportunity to regularly update them on progress towards
every walk of life – is the ability to clearly communicate a your joint goals.
vision and communicate it often.
This is particularly true when leading a team. It’s vital 4. Celebrate
they understand exactly what you want to achieve and Celebrating achievements is also the mark of a great
can visualise the steps that need to be taken to make it leader. Few businesses achieve real success on the work of
possible. At MYOB, our vision is to make business life just one person; regularly acknowledging that goes quite
easier for our clients, and our company values reflect some way to ensuring your team remains engaged.
and adhere to that vision. Divisional, departmental and Recognising the role the whole team played in achieving
individual goals flow down from that singular purpose. any milestone, while ensuring those who made a key
If you can paint a big-picture vision for the business and contribution are given special praise, both motivates staff
get employees excited about the journey, tying their role to and builds a strong team culture. Ensure there are regular
the company succeeding, that’s half the battle. They will opportunities to celebrate success and that milestones
understand their part in kicking goals – whether that’s (i.e. employee anniversaries, financial year-end, etc) are
driving outcomes that lead to revenue growth, having the marked wherever possible.
widest social media presence in the industry, achieving the Like everything in business, becoming a great leader
best customer service scores or something else entirely. is a process of constant development. But you don’t have
to work in isolation – choose the business leaders that
2. Demonstrate really inspire you, and learn whatever you can from their
The best leaders also lead by example. Having a deep leadership style. Then, as your business grows, build a
understanding of all aspects of the business helps team of leaders around you.
immensely in building the right paths to relevant
communication with each of your team members and Tim Reed is the chief executive of MYOB. He develops and drives the business’s
strategic development across Australia and New Zealand, such as its expansion
allows you to identify any problem areas. into online business management solutions.
One of the best ways to ensure employees understand

spotlight
Mining towns are they

Boom or Doom?
Are the mining towns a once in a lifetime investment opportunity or are they long-term
investment disasters?
T
here is no doubt that on the world stage, Australia is development usually means that population growth is forecast
regarded as one of the wealthiest countries in the world. at an appropriate level. The second of which is underpinned
The good thing for us is that we have only just started by diverse infrastructure development is employment and
to scratch the surface of our countries resources. wage growth.
As an investor myself I’ll always question and review my
investment options. Now anyone that knows me also understands Employment and wage growth
that I don’t often stray from my core investment strategy. I always consider the employment stats and wage growth of a
So what is my personal investment strategy? market when investing. The demand for property is closely related
My strategy is to buy medium density residential properties to affordability. When people feel secure in their employment, they
located in major cities. My strategy is to hold for long term growth. are happy to purchase property. When people earn more, they
But why? then aspire to upgrade their home. Mining ticks the boxes here.
The reason for this timeframe is that my portfolio isn’t really for Mining towns have great employment prospects ‘currently’
me; it’s for my kids and their kids and so on. My definition of long and the wage levels in comparison to major cities are fantastic.
term is 150 years plus.
I have however been keeping my eye on the latest ‘buzz’ over Infrastructure development
last few years which is property investing in mining towns. Mining ticks one part of the box when it comes to infrastructure
I recently spent a week in Gove and Groote Eylandt, which is development. There is no doubt that infrastructure is required to
far east Arnhem land in the Northern Territory at the Gemco mine support the mining operations. There are two things that seriously
sites. So believe me when I say, I don’t mind getting my fingers concern me with mining towns when it comes to infrastructure
dirty when investigating an investment option. development.
This and the fact that my brother Andy works at the Prominent The first is that the infrastructure development is not diverse
Hill mine site near the Olympic dam site in South Australia has in any way. It’s not planned in the same way city infrastructure is
given me fortunate insight into the mining communities. planned. It’s simply tacked on when and where needed.
I can see some fantastic opportunity to make a quick buck by The second and main issue I have is that once the infrastructure
purchasing property at the right time in some of these mining that is required to support the mine is in place, only around 30 per
towns. If you purchased property in Gladstone three years ago cent of the populations work force will be required to work at the
and you were selling now you would have made a killing. actual mine.
But before I get too excited, I remind myself that quick bucks The other 70% of the population will leave town. With this sort
have never been my strategy when it comes to my investment plan. of population percentage exiting any market, a huge oversupply
Quick bucks come with big risks. of property will remain and we all know what an oversupply of
property does to prices and rental yields.
‘Get rich quick’ often translates to ‘lose money fast!’ Imagine what would happen to prices in one of our major cities
So could mining towns form part of my long term investment if 70% of the population vacated.
strategy or are they potentially disastrous to my family’s long Mining towns have historically been boom and bust. It seems
term plan? apparent that this trend will continue.
It’s actually very easy to weigh up. The question to ask to ask is, Therefore when considering my family’s long-term investment
how do mining towns stack up against the factors that drive long- plan. Mining town investment is not entertained.
term property price growth?
While there are additional driving factors, the two big drivers Contact: Cameron McLellan is the CEO of Open Wealth. He has built a company
required for long term property price growth are what I’d like to that employs over 100 people of which three have been listed in the BRW Fast 100.
focus on. The first is infrastructure development. Infrastructure www.openwealthcreation.com.au

property
Top 7 Investment Strategies

Every year I reveal my preferred investment strategies which many 21st Century Members
eagerly await, writes Jamie McIntyre.
T
his list is designed to help people check off the strategies over the next few years. Any average and committed Australian
they are using and act as a guideline to stay on track. earning even a basic wage can achieve this.
The reality is that with the right financial education,
mentoring and support, even an average Australian can 2. US property
generate $1 million plus in retirement funds inside 10 years by It has been my favourite for three years; however, unfortunately
buying only two quality properties over the next few years. time is running out. This year is perhaps the last chance to make
If you learn how to buy property no money down, it will rapidly 15-20% rental yields on US property with an additional solid capital
speed this plan up. growth as the markets are recovering strongly.
Those who are more aggressive and want to create $10 million So if you are not adding US property to your portfolio this year,
plus net worth over the next 10 years should consider our ‘buy 10 then all I can ask is “Why not?” Especially, considering that for as
properties in 10 years’ strategy and end up with a $10 million plan. little as $25,000 you can own a slice of America.
Of course, such plans require action and dedication; however
they aren’t overly complex once you get educated. 3. Land banking
In fact many 21st Century Members who have followed my It is a very solid long-term strategy that involves tying up land that
strategy can testify to this and prove that it is indeed achievable. you don’t have to pay for, till years later. As a result you make the
Why don’t more do it? capital growth with no holding costs. It has worked well in regional
I would say for a number of reasons: cities like Bendigo in Victoria, with a growth of up to 25% per
annum in the last year.
1. They are simply not aware of how to do it.
2. They get talked out of it by well-meaning but less 4. Buying positively geared Australian property
knowledgeable friends. With low interest rates this is even easier to achieve. You will have
3. Fear stops them from starting – for instance, fears such as ‘what to select the right regions and suburbs but it is nevertheless a very
if property never rises again…’ – among other limiting beliefs. good investment strategy.
4. They go for short-term pleasure such as spending their money
now and not going through a bit of short-term pain or sacrifice 5. Buying negatively geared property with a deposit
by saving for a deposit or getting financially educated. This normal standard property strategy is tried and tested and with
exceptionally low interest rates it is a great strategy.
Remember, short-term pleasure often leads to long-term pain;
whereas short-term pain can lead to long-term pleasure. The 21st 6. Internet business
Century team will make available free webinars to go into detail on Often lower capital is required for investing in an internet business;
how to do each of these strategies. however it does require skill for the future of the business. The
entrepreneur must ensure he/she is educated the right way.
This is the year for property – both in Australia and the US.
Property should always be the cornerstone of your investment 7. Franchising
strategies and if you only ever did property and did it correctly, as It is safer than traditional business and has a higher success rate.
taught at 21st Century, you can’t go wrong. Therefore, in order of It does require capital but such a business will suit some
priority here are my current top 7 investment strategies for 2013. entrepreneurs. It is definitely worth checking out but once again
you should also be building a property portfolio.
1. Buying Australian property – ‘virtually no money down’
It is the smartest and fastest way to buy property and it enables an There you have it: the top 7 investment strategies for 2013.
average person to get started on our ‘buy 10 properties in 10 years There have been quite a few changes from 2012 with property
and become worth over $10 million’ strategy. heavily dominating this year – just as it should.
If becoming worth $10 million in the next 10-15 years seems
too much money for you, ask them to show you the $1 million net Contact: Jamie McIntyre is the CEO/founder of 21st Century Education.
worth plan achievable in 10 years from buying just two properties www.jamiemcintyre.com

spotlight
Investing in
Surat Basin
The heart of good property investment is finding the next boom, but it can be tricky.
Traditionally, the next boom comprised of seaside towns that displayed the double-digit growth
we are all looking for. Today it is locations with high employment growth that is sending property
prices soaring. Blue Horizons has identified resource towns backed with the strength of mining
and gas developments that are packing a fierce punch.
T
he dynamic Surat Basin is one of the fastest growing the region is not solely dependent on the resource boom. While
economies in Australia today. For investors, Chinchilla coal and gas projects are providing the impetus for growth, the
and Miles in Queensland’s Surat Basin are the next hot region is already thriving in its own right with a staunch and proven
spot; rural towns set to explode thanks to the $30 billion agricultural industry. Surviving droughts and economic uncertainty,
worth of coal and gas projects combined with Queensland’s most the Surat Basin’s agricultural roots have remained a stalwart pillar for
bountiful agriculture surrounding them. A boomtown is about more the community.
than just the booming employment – it’s about the corresponding There is such confidence in this region that is predicted to be a
development in both residential and commercial arenas. stand-out performer in the eastern states for the next 10 years.
Skyrocketing rents and capital gains are in store for anyone smart
enough to invest in property now. Rents currently are performing at Contact: For further information contact Blue Horizons at
7.5-10% depending on the type of property. You are in the perfect www.bluehorizonsproperty.com and receive a free 11-page report
position to expand your wealth beyond your expectations. on the Surat Basin complete with a snapshot of available properties.
...The astute investor buys

before the boom...
The precedent has been set and it is now common knowledge
that towns leveraged to resource booms are quickly followed
by skyrocketing property prices and rental demand. It is not too
late. In fact, housing prices in the three key support towns for the
Surat Basin (Chinchilla, Miles and Roma) remain affordable and
representative of new house prices in any part of Australia.
The astute investor buys before the boom. This region is at
the very beginning of a breathtaking growth spurt. Here is where
you come in. With the benefit of Blue Horizons experience and
knowledge, you can be one of the forerunners, investing in property
and maximising your profits.
The extra bonus that comes attached to the Surat Basin is that

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spotlight
Open Wealth
Open Wealth has been helping family and friends build property We started this company specifically to help guide, coach and
portfolios for decades. To date our property experts have been mentor you on this exciting journey. As part of that process, we
involved in more than $1 billion worth of property transactions, provide you with the same tried and tested system that we’ve
helping Australians acquire more than 5000 homes and used to grow our personal portfolios and build wealth.
investment properties. We provide education and inspiration as well as assistance
We love teaching people how to minimise risk as they build with investment property selection, finance and loan structuring,
wealth, using an investment strategy with an impressive record risk assessment and portfolio management. When you work
for delivering strong returns. We want to give clients the benefit with us, you get all the information you need to plan a self-
of our experience to help them find and secure the most suitable funded retirement.
property investment opportunities. All of our directors have run successful businesses across a
Over the years as more family members and friends asked number of different industries. But property investment is our
us for guidance on how to build wealth through property true passion and the foundation on which our success is built.
investment, the time we spent on coaching and mentoring Open Wealth Creation is a division of the Open Corporation.
increased and Open Wealth Creation was formed.
Our philosophy is that once you become an educated, www.openwealthcreation.com.au
experienced investor you have a responsibility to pass on what
you’ve learned.
Blue Horizons
Blue Horizons is your perfect property partner. They specialise level of finishes such as ducted air conditioning and stone
in offering high yield, rapid capital growth property investments bench tops.
resulting from mining and industrial expansion. Helping people They offer a full service to their clients from helping choose
with their property portfolios since 2003, they have been 100% the perfect property for your portfolio till rented. From advising
focused on the Surat Basin since 2008. Once you start working on colours choices to complementary final inspections and
with Blue Horizons you will always have first access to new depreciation schedules, and everything in between, providing
releases. They have a diverse selection of properties to offer - a personal and complete service.
House and Land, Duplex and Land, Townhouses and Villas,
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High B a nd W i dth
Keeping his “I was the eldest of two boys and mum said to
me, ‘If you want to earn money, you have to go
out and do things.’ And I got that, because I
eye on the ball could see it with the extra three or four jobs she
would be doing to earn some extra money.”
After starting with a paper run aged 10 he

Jason Akermanis achieved the highest of all soon realised by age 13 that ‘the run’ is not as
lucrative as you’d like it to be. And when you
accolades in one of the most exciting football careers have a fear of dogs after being bitten as a child
in the country. But what many don’t know about Aker (at age six he had 10 stitches on his left elbow),
is that the same determination he applied to football, where else do you turn?
he applies to all facets of his life, including business. “I went around the neighbourhood with my
Aker speaks with Jonathan Jackson about where brother in tow, which was very funny because
determination comes from, the growth of his own he had no idea what we were doing and I told
him, ‘We’re going to go and we’re going to try
business Supersonic and how to succeed.
F
and get some business.’ So, we went to the
old people who were at home and asked if we
could mow their lawns. We had cards made up
and we started that process.”
ootball fans familiar with Jason Akermanis know he Aker says he learnt his most valuable business
is a man of many words. He is opinionated, full of fire lesson at age 14 when the Akermanis brothers
and one who is committed to his beliefs. And while started by charging $10 per lawn. They were
some of those opinions and beliefs have been fervently so popular that eventually they were charging
questioned occasionally, his commitment to the cause $40 per lawn, which is a great example of
has to be admired. market demand at work. However, it was too
expensive for suburban Brisbane and with the
In fact there is a lot to admire about Aker. This football advent of Jim’s Mowing, the brothers started
fan (me), who wears his heart on his sleeve for the St losing business.
Kilda Football Club, gets a thrill out of watching all the
great players and Aker was one of them: the core strength, the skill, the gut busting Jim was charging $20 per lawn, had better
runs and the goals – he was a complete player as his Brownlow and three premierships resources and began to dominate the market.
attest.
“Our business went from around 30 lawns
The commitment to be that good requires long, arduous hours refining a skill and it to none,” Aker says.
requires dedication, a trait that Aker has had for many years. Truth be known, Aker was
an entrepreneur long before he was a champion footballer. Other than market demand, Aker learnt a few
more hard lessons.
The age of reason “What that experience taught me was the

quality of the job has to be really good.
At 10 years of age, Aker started his first business. His independence in this matter was born Unfortunately, my younger brother, Rory, didn’t
of necessity. He grew up without a father, while his mother worked to support her two sons. quite see it that way. So it also taught me the
value of working in a cohesive team. With Rory
“She was too proud to want to ever take any money from the government, which was not doing what I asked him to do it felt like
great,” Akers says. “But the problem is, you tend to get shuffled off to day-care very another punch to the head and I knew we just
early. So it wasn’t too many years before I was riding the bike or running home from weren’t going to work. And the most important
school by myself.” lesson of all was we got greedy.”
A typist’s wage can make home life financially difficult, but sometimes in life that is the In the wash up, Aker found a job working at a
greatest leverage you can have. butcher shop where the pay was slightly better.

Meanwhile, his mum was trying to talk him
out of playing football. He would appease
her by say yes and working, but he knew
the football field was where his heart lay
and he was determined to find a balance
between working and pursuing his dream.
Aker by name,
Aker by nature
While many football players start businesses

in hospitality or fashion, Aker wanted to
balance his football career with something
more meaningful to him. He completed a
sales and marketing traineeship as part of
an Australian Football League program.
“Marketing taught me one very valuable

thing – brand; going through what a brand
is, what it looks like, what your demographic
is and all things that separate unique brands
and their value. So all of a sudden, I thought,
‘Well, how do I apply this to footy?’”
Those books are brand and business bibles. Yet something more innocuous, but just
“I chose
as effective, also shaped Aker while he was in hospital.
to be the During that time he watched a lot of American Football and took note of how flamboyant
the gridiron players were. Those players, through their personalities, were brands in
guy I was.” themselves. It is how Aker wanted to be on the football field.
“I dyed my hair blonde and I went and did a handstand, of all stupid things, which the whole
Aker had one other experience with crowd loved. I had gone from being just a footballer to a blonde-headed guy who was doing
branding before this. That experience handstands every time we won. And all of a sudden, the brand grew. What I did from that
was the result of a horrible accident but it was I went and developed shirts and beanies and hats that people could buy online.”
shaped who he is.
Aker was producing $12,000 a year in stock and making that in profit. He learnt about
At age 15, a crash left Aker with a blood producing stock and running an online business. It became so big that he had trouble
clot in the brain that could have killed him. coping with another 12 personal sponsors to attend to, while balancing football and
Two things happened during the recovery media commitments all in the six months mayhem of the season.
period that shaped the rest of his life.
The key was to compartmentalise.
“I was fortunate enough to just hang on,
but for three months I was out of school, “It came down to time management. You’ve got to actually say, ‘Right now, I’m doing
suffering double vision and was very this column. And in about half an hour, I’m going to stop that column, and it’s got to be
depressed. That’s as low as I’ve ever been. done. And then, I’m going to get in the car and go down and do the TV gig’ ‘You have
Mum would be off working and I had no to practice that and eventually you become very good at it. Anyone who says you can
one to talk to, but she gave me some great do two cognitive functions at once is lying. We know it is scientifically impossible. The
books including Think & Grow Rich and The brain can’t do it, and you’ll just make lots of mistakes. You can walk and chew gum
7 Habits of Highly Successful People. but that is the automatic old part of the brain. Try and write a column while talking to
someone on the phone about which direction they are turning is impossible.”
“I was getting an education while I was on
my back and couldn’t do anything else.”

In the off-season, after his first full year into his football career, tragedy struck. Out of Supersonic is a global account management
nowhere his mum suffered a full seizure in his arms. Eighteen months later she died of and multi-currency/multi language (only one of
a cancerous brain tumour and Aker was once again faced with learning a new level of it’s kind for payments/finance/banking in the
independence. world) payment processing system, designed
to securely transfer funds via the internet,
“I had to look after my brother. I had to run the house. So, at 20, here I am running my mobile phone at point of sale machines –
mum’s house and it was the single biggest event that I could explain that shaped my including travel/money card – all in real time.
football and business career.” Clients range from mums and dads, celebrities
(David Hasselhoff), school programs (Edmond
This event illustrated to Aker that he had the personal strength to deal with things and Rice Foundation-Christian Brothers) to
move forward. international companies (Guylian Belgian Café
shops, Sudden Rush Guarana in Switzerland)
“Your quality of work doesn’t have to drop because everything outside might be going just to name a few.
to ruin. Things might be going to crap, but there’s still great quality in life and that’s what
“My
events like this teach you.”
philosophy
They also teach resilience.
is you either
“You can come at me all day, after that event, mentally and physically, and I know I could
handle whatever is thrown at me,” Aker says. “You get tested all the time in life, but I live
choose to
by the mantra that my mum lived by and that is, ‘It isn’t that bad if you are still alive.’
fix your
“I hung in there when everyone said, ‘You should get rid of him. He’s got issues. He’s
too hard to manage.’ But they’re just people who don’t want to solve anything. They
problems or
want to get rid of you because it’s too hard for them.
you don’t.”
“My philosophy is you either choose to fix your problems or you don’t. I chose to be the
guy to fix my problems and be better. I chose to be the guy I was.”
The business was seeded while Aker was

Leadership in business playing with the Western Bulldogs. One of the
sponsors was EzyBonds, run by Allan Andresz
The man Aker has become will be remembered as a Brownlow medallist and a triple who put a sponsorship deal to the star player.
premiership player. He will be remembered as eccentric and someone who is not Aker took the deal and with Allan’s guidance
opposed to voicing an opinion. He will be remembered as someone who is unafraid to learnt everything he needed to know about
lay all his cards on the table. And that’s just through the era of his football career. finance and running a major business. It was
an invaluable in-house education.
Aker has laid new foundations since he finished playing, but many of the traits above
are still in evidence in the way he runs Supersonic Global Payments. Today Supersonic and EzyBonds have an
alliance that makes both companies two of
the strongest in their field. What also makes
Supersonic a strong, global company is the
leadership skills that Aker has developed
during his time in sport. In fact, he puts a lot
of his leadership development down to his
current coaching position with North Albury.
“The difference between playing and coaching

is that as a player you worry about your
immediate position and situation. As a coach
you are looking at the whole game in the
context of a season.
“I was a good player in a great team. But what

was I seeing – what did leadership look like?

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Supersonic is built on honesty and trust
as well as the strongest product offering,
which is unencumbered by financial institutional
red tape and is completely secure to use,
and fast.
“We are working with the great companies

around the world to make this product not only
good, but able to be used in every country,
every currency and every language. And inside
all that, there is the understanding that this is
a great place to work – it has life balance. This
is the most important thing. Balance to make
“I could see it was incredibly consistent and demanding and very specific on the parts you healthy. Health sits at number one on my
everyone was playing. It was all about teaching people to know their role.” list. You can’t do much else laying on a bed
somewhere sick.”
According to Aker there are four things a good leader does well. One is to make it clear
what people are doing. Two is to show them how to do it and the third thing is to nurture Despite the tragedy and controversy throughout
their abilities to ensure they are suited to the role and to get the best out of them. The his career, Aker wouldn’t change a thing. His
fourth thing is to make sure they are making the right choices. success is built on the experiences he has
gathered and they have made him the person
So, how do you apply that to the business practice? he is today – that includes being a coach,
a business leader and a human being.
“You have to see the big picture and the little picture. The big picture is the relationships
that need to be built and the results from those; the little picture is making sure you “I just love the fact that you can go through
understand why on earth you have a good product.” life and learn and as long as you’re pretty
much not in the grave, it isn’t that bad. So
The interconnected nature of the business team is also no different to that in the if I was to tell my 14-year-old lawn mowing
football club. entrepreneurial self anything it’s to ‘keep
doing what you’re doing and persist and learn
“The interconnected through the best school on earth. The degree

of hard knocks’.”
nature of the business

team is also no
different to that in the AKER’s Keys to Success
football club.” 1. If you have talent, which most people

do, and if you persist, you will always
“As soon as I went in to coach, it became about the relationship between me and be successful no matter how much
my players. It’s the situation where I can look them in the eye and say ‘Mate, today struggle you go through – that’s the
was great’, or ‘Mate, you know that you didn’t go in, and you let the team down, let’s great formula.
fix this’. You need to build relationships and you need to understand the psychology
(profiles) of your team one by one. It takes time.” 2. Marry the right person. If you get that
support around you right, it will determine
Part of Aker’s relationship with his work and football teams contains the honesty 90% of your happiness or misery.
is he renowned for.
3. Be decisive even if sometimes you’re
“If you make it personal, it is not going to work, but if you make it about the job, they wrong. Life is not in the thinking, it’s
will listen and you will gain their trust which is a personal decision they make. I say to in the doing.
the boys, ‘Don’t shoot the messenger. I’m here to help you be the best footballer you
could ever be, or the best worker within this group. And this feedback is very important. 4. Simple is beautiful.
Without it, in my opinion you won’t get where you want to be.”

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High B a nd W i dth
The science of success

Universal Biosensors (UBI) has joined a group of
elite Australian medical technology/biotechnology
companies that have successfully made the leap
from R&D outfit to revenue generating commercial
manufacturing enterprise. Jonathan Jackson speaks
with CEO Paul Wright about partnership and growth
in the sector.
I n the outer Melbourne suburb of Rowville some of the slickest SMEs

are functioning with little fanfare but a lot of forethought. Rowville is
somewhat of an innocuous suburb. It sits almost at the foot of the
mountains, but there must be something in that mountain air that
breathes life and ingenuity into Australian business – and we’re talking
some successful businesses.
One you may have heard little of is UBI. This is a small business
with a big plan. It is a young business with figures that suggest a greater maturity.
A partnership deal sealed a few years ago with LifeScan, a subsidiary of Johnson
and Johnson, ensured the company was in for the long haul. Under the agreement
UBI manufactures tiny disposable test strips that use UBI’s novel electrochemical sensor
technology to give on-the-spot blood glucose readings. UBI receives a “service fee”
of around 1c for every consumable strip made, and the company can produce 750
million test strips every year.
“the trick
in leadership
is to be
Competitive.”
to contribute to significant and ongoing
revenue.
Like those previously mentioned companies

that saw potential in UBI so did its current CEO
Paul Wright, a former Cambridge-educated
aeronautical engineer and management
To give you a further idea of the size of the industry, the global self-monitoring blood consultant who took the reins in 2011.
glucose market is valued at $9 billion and there are 17 billion blood glucose testing strips
produced each year. “The reason I jumped on-board is that I saw
that the company is in good shape and had
“It’s a growing portion

some great attributes. My job is to push the
direction the company was already taking,
of the market.” rather than fundamentally change what I found.

UBI is a company that has a great technology
and is operating in an exciting market in point
That’s fantastic news for shareholders, but there is more to put smiles on their faces. A of care diagnostics.”
strategic agreement with Siemens Healthcare Diagnostics saw UBI secure exclusive
manufacturing rights to the handheld analysers for the coagulation (blood clot) testing Paul says a reason for the rise of the company
market which the two companies are developing. The handheld analysers will use UBI’s is the extraordinary talent that exists within
technology to provide on-the-spot, laboratory quality blood clotting data for patients its walls.
receiving therapies such as warfarin. This partnership has already earned UBI $6 million
in R&D milestone payments, and as with the LifeScan partnership has the potential

“What we had was actually not this big
organisation, but we had a team of talented
“every
engineers and scientists who could create and
turn their technology into a commercial reality.”
product is
It was 10 years ago that Johnson and
meticulously
Johnson’s LifeScan partnered with UBI.
LifeScan focuses on diabetes products. They
produced.”
saw something in the UBI technology
that was attractive and could give the US giant
an edge in the diagnostics sector.
The technology is a hand-held device

accompanied by a disposable biosensor.
Its purpose is to prick your finger and then give
you an immediate diagnostic reading about
your blood and glucose levels, among other
blood-related diagnoses.
To watch the strips being made is a lesson in

efficiency; this is an impressive assembly line
where man meets machine. The production
maze feels as though Willy Wonka branched
out into biotech; every care is taken to prevent
contamination and every product is

meticulously produced to ensure quality
is at its peak. The production values leave you
with no question as to why LifeCare joined the
fray and little doubt that UBI will fulfil their goal
to become a leader in diagnostic equipment.
The trick in leadership is to be competitive.
“To be in this game you have to not only have

a technology that can accurately look into your
blood, but you need to be able to manufacture
that technology in large quantities very, very
cheaply.”
In other words, the engineering and design

departments need to work very closely
together. Part of the strength of the company
is that those two departments have been
working together since the company’s
foundation when the original technology was
being developed for water membrane filtration.
“Like all good inventions, it began with

something that didn’t work,” says Paul.
“Then someone very clever said, ‘Well, hang
on, we could apply this to a different problem.’
This is now the diagnostics problem.”

The change in direction worked for UBI and LifeScan. “It’s a growing portion of the market because
many tests, many diagnoses can lead to better
“The meeting between that UBI team and the LifeScan company a decade ago provided health outcomes for patients when they can
the genesis for what we have today. We had be performed rapidly or when they can be
a technology and they had a need to continue to innovate in the glucose testing space. carried out more frequently through the use of
That was the first deal we did and working with them and having their support and a convenient tool.”
collaboration took us to our first product.”
Up until recently the main tool was the blood
The UBI/LifeScan partnership provided a foundation and the revenue to flow from glucose test. However, more recently UBI has
it, which has since provided the freedom to further innovate. Of 100 people in the created a coagulation test.
company, a third is in research and development creating new products, another third
work on manufacturing the strips and the final third deals with compliance and quality “It looks at the clotting properties of your blood.
assurance. All parts are equal in their importance and all make the company an attractive That’s another slice out of that $15 billion
proposition. market,” Paul says.
The anti-coagulant market has brought Siemens
“It’s a reinforcement Healthcare to the UBI table in what is another

big partnership and validation of UBI’s work.
of what we have done.” “There are many people on blood thinners,

particularly those who are ageing. More people
This well-oiled machine is staking a claim in the $45 billion in-vitro diagnostics industry. are on it for long periods of their lives and
This is medical diagnostics performed on samples taken from patients. That claim is need to do regular tests. So we saw a big
within the $15 billion point of care segment of the market. opportunity to develop a strip that tests blood

coagulation and can be used to determine whether a patient is taking the right amount
of their drug.”
“we expect
to make
money from
Meanwhile, Siemens was also looking for a point of care technology provider. The two
companies began to talk and found that they had strong mutual interests.
For UBI, this illustrates to shareholders that the company is not just a one-trick provider. that.”
With Siemens, three tests are actually in development and UBI is building a larger
portfolio of products. This SME at the foot of the mountains is not
the only company in the diagnostics market,
“We are going to multiply that and become a company with many revenue streams but they are certainly making a lot of noise.
from many tests,” Paul says. They have new products that are creating
growing revenues and profits. They have a
The Siemens partnership is validation of UBI’s work. vision to be a leading player in the point of care
diagnostic field. And they have the momentum
“A company like Siemens will only put their brand on somebody else’s technology when to leverage the technology that continues to
they’ve really checked you out. So, the amount of diligence, the amount of exploration propel the company forward.
prior to doing a deal like that is extensive.
“It’s a reinforcement of what we have done; another big company likes us and likes our
technology and proves the first time wasn’t a fluke. The other important thing is that
the markets that we will enter into with Siemens are large and exciting. They are a very
powerful player in the industry. So, we expect to make money from that.”
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High B a nd W i dth
Medicine & business “Now we have a comprehensive medical ID

alert system we call Mediband Plus, which
includes web-based emergency access that
bands together links to a customer’s mediband bracelet. This

is gaining support from health professionals
here and abroad because Mediband speaks
when the patient cannot.”
For Michael Randall, founder of Mediband,
Michael is not one to rest on his laurels and has
business began with an epiphany: to produce taken manageable measures to always invest
a product that solves the common problems we back into his business. As a result, Mediband
are faced with everyday. What seemed like a good has expanded from the Australian marketplace
and into the UK and US.
idea at the time has grown organically to become
an all-encompassing (and still growing) business “Our intention is to work hard and never give
E
that saves lives, writes Dominique Bambino. up. If something does not go to plan, it’s a
learning experience. Each day brings its own
set of rewards and lessons. We learn, grow
and move with information,” Michael explains.
Mediband contributes to the community by

stablished in 2005, Mediband began in the spare donating to the homeless, hospitals and a
bedroom of Michael Randall’s house. Like any number of charities such as Community Medic.
entrepreneur, he faced some sleepless nights and For Mediband, giving back to the community is
drank a lot of coffee. However, the dedication slowly grounding and fulfilling knowing they are helping
paid off: a year after the business launched Michael other organisations take a positive stand.
was able to move into a small office. A year later he
moved into a larger one and it wasn’t long after that The company stands by the philosophy of
Mediband transformed from a promotional products listening to their customers and understanding
supplier to a medical products supplier. There are what it is they want.
currently two divisions: medical database and emergency medical access supplier.
All divisions are still running at full steam.
Michael discovered his entrepreneurial streak as young as nine when he started

“work hard
selling chooks and chook eggs to salesmen at his father’s North Shore Honda Motor in life and it
will pay off.”
Dealership. Michael’s greatest mentor was his father because of the work ethic that was
instilled in him from a very young age. He still has fond memories of chipping off cement
from old bricks behind his father’s dealership so that they could be reused. Michael’s
father constantly reminded Michael that you don’t get anything for doing nothing. Work
hard in life and it will pay off. “Feedback is very important to us. It helps us
grow; that’s why we have a very strong presence
Travelling to Hong Kong with his wife resulted in setting up his first company, being on social networks and on our own website to
Handband: a customised silicone and promotional wristband business designed for enable comments and feedback… this allows us
large corporates like Nike. From there he listened to customers wanting an inexpensive to help others: Worry Less, Live More!”
medical ID bracelet and took the opportunity to create this, hence Mediband was born
to help save people’s lives. The timing was right because Michael had just discovered his Feedback comes from Michael’s wife, the people
son also had allergies to various foods, so he became one of his customers. he works with and from customers, and he is
frequently inspired by what they have to say.
You might have seen the Mediband. It looks like a silicone wristband, however this
unique medical ID bracelet is specifically designed for adults, children or anyone with
life threatening health conditions such as diabetes, epilepsy, asthma and food
and drug allergies.

For Michael every day is an achievement,
however if he were to label one big
achievement, it would be the success of
Mediband’s online medical emergency
database MedibandPlus.
“there is no
single key
to success.”
“A few months ago a doctor told me
MedibandPlus emergency medical service
helped save his patient’s life. Hearing this
keeps me motivated knowing each day makes
a positive difference in someone’s life.”
Mediband has evolved extensively over the

years and Michael explains that’s where his
heart is at the moment, but that’s not to say
there will be other opportunities and adventures
in other areas in the future!
“There is no single key to success. There are,

however, a number of building blocks
to success. For example, creating a product
where there was no product before, listening
to customers, being open to new ideas and
concepts, drive and determination, getting
the product mix and name right are important
factors when starting up a business.”

High B a nd W i dth
A business to go into other countries while sitting at home

and examining prices. People are no longer
prepared to accept prices of 20 and 30 years
frame of mind ago, particularly when they compare them to

equivalent societies such as Europe, England
or the USA.”
In spite of price differences, the framing

Everybody loves a frame; they preserve memories, industry does have an advantage: it is that
highlight special events and are often used to display importation has its risks, including inferior
quality (All Things Framed makes its frames
art. However like any industry in this day and age, onsite) and the delicate nature of the glass
the framing industry has had to contend with – glass is difficult to ship without breakages.
changing technologies, drifting philosophies and Another advantage for local manufacturers is
their ability to offer bespoke product.
declining economies. Jonathan Jackson speaks with
Josh Poznanski of All Things Framed about staying “European and Asian countries have different
relevant in difficult times. tastes to Australia; they may not produce
anything that would sell here,” Josh says.
“On that basis, we have an advantage.”
W
Specialty and bespoke items are what sets
Australian manufacturers apart from their
global counterparts. This specialised service
is a major tenet in their product and service
offering.
hat’s in a frame? Usually art. For Josh, good business equates to

However there is also love, good service.
which means that there will
always be a place for the framing “My personal philosophy has always been and
industry. continues to be that despite our artistic input,
first and foremost we are a service industry.
“We put our skills into dressing And if we do not provide the service, we don’t
frames up and making them get the customers. I have always been of the
visually acceptable,” says All Things Framed owner Josh Poznanski. Of course there is belief that you produce a limited range of high
more to it than that. When people buy a frame, it has to suit a particular and sometimes quality product and market it as much and as
very personal purpose. far as you can.”
“What we are really doing is preserving things that are important to people which are That belief has followed Josh through all
photographs and any objects which they collect during their lifetime.” installments of the company’s existence,
including those internal shifts he mentions
Framing is a personal business, but it is business nonetheless and must run on set above. From the Vic Market, to a small shop in
principles. You get the sense when talking with Josh that he is a stickler for those Gardenvale that facilitated the shift from market
principles and that they have served him well – through successful and more difficult times. sales to wholesale, and 18 months later, moving
to a much larger warehouse in the southeast
The first principle is that of profit. The second is good service. Josh learnt about good suburbs of Melbourne. In that time the business
service when he first rolled out a store at the Victoria Market in Melbourne. He says that’s has grown to 19 people and back down to just
where he completed his economics degree. three, but Josh is comfortable with that. He is
a man who is unafraid to make the decisions
“Over the years, and I have been in business for close on 40 years, we have seen about necessary to keep the company alive.
four or five major shifts,” Josh says. “We have had our own shifts, as well as shifts within
the business community. Business has been greatly affected by people’s ability

cash flow, the distribution costs were horrendous and the margins were far, far,
“we are less than I expected.”
a service Rabbit’s first loyalty was to their shareholders, which also proved a problem for a small
industry.” business trying to deal with them.
“They were very demanding. So, that brought me back to the reality that our client-base
An early partnership saw the business grow needs to be the people that we can communicate with, on a face-to-face basis. And we
quite quickly and allowed Josh to put a deposit offer them something that cannot be imported.”
down on the company’s current residence.
He says without that alliance, things may be Downsizing has actually allowed Josh to move in the direction the company needs to go
different today. and that is as a direct retail outlet. On the first Sunday of each month, All Things Framed
will open its doors to the public to keep in touch with the clients and show them what
An alliance with Rabbit Photo also proved they can do and what they have.
lucrative, however it was also the catalyst for
the coming downsize. To combat those shifts, Josh has also adjusted the way the business manufactures.
“We worked for many, many years with a very “At one stage we had a lot of shelf stock. We no longer do that. We manufacture by
small staff of two or three people. Then, when order basis. If the order is larger, for instance, we work on the basis that you buy 70
I went over to Europe and saw the size of the of a particular size and for every six ordered you receive an extra unit. It’s a reward for
market within the photographic business I said, making our lives a little bit easier. It also allows us to buy larger quantities from
‘Fine we will drop-off all the individual work our suppliers, which gives us a slight price advantage.”
and we will do bulk work.’ Our staff went from
two to six, to eight to 10 to 12. We had three The other shift in thinking is one that every business must now come to terms with –
reps on the road with three cars and huge the adoption of internet and social media.
expenses. And while Rabbit provided a huge

“An online approach is now part of the business model,” Josh says. “This is going to
become more and more important for us. I used to run around all over the place getting
orders; I still do. But we find that the bulk of the business – the 80-90% of all orders –
now come in via the internet.”
The advantages of these technological advances include a reduction in overheads, lower

prices and immediacy.
“If we have a problem, we can communicate very, very quickly. This is the biggest shift
in any business. Anyone who does not use online facilities today, will likely fail.”
Josh doesn’t want to move solely to an online model. He says while many provide purely
online services, there is a lack of communication that comes with that.
“You can do business with people for many years and never talk to them or never meet
them face-to-face. I still am a firm believer that people like being human; they like the
personal touch and they like to know with whom they are dealing with. We have tried
very hard to make our customers our friends and we have managed that very well.
Many of our customers are repeat buyers.”
The key to longevity for All Things Framed is quality, turnaround time, service and price.
It’s old-school thinking, but it still works for any business.
“Because we don’t have such huge overheads and we are not located within a retail
position, we can have prices that are 25% to 40% cheaper and still make a dollar.”
Moving forward, All Things Framed will become a family affair with daughter Simone
and her husband David Spark repositioning the company’s community profile. It is also
a matter of weathering the current financial storm. However, Josh is confident that the
company will continue to grow and be a relevant service business.
“an online approach

is now part of the business.”

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self-made
High flying
high performance
Y
ou may have read Daimler discontinued all motor sports
earlier that John activities, they decided to go into business
Lennon’s 1965 for themselves.
Ferrari 330 GT The pair’s spare time tinkering with the
sold at auction for performance of the 300 SE engine, led
$543,887, but it’s to Manfred Schiek winning the German
not the only car at Touring Car Championship a record
that auction that 10 times.
sold. A Mercedes- Aufrecht and Melcher’s reputations
Benz racecar driven by Formula 1 legend grew; they became the experts behind
Juan Manuel Fangio sold for 19.6 million the optimisation and performance of the
pounds ($29.6 million). It just goes to show Mercedes-Benz vehicles. But reputation
that everyone loves a Mercedes – well, a wasn’t enough, particularly for Albrecht
sports one anyway. who wanted to deliver a road vehicle based
The 1954 Mercedes-Benz W196 single- on the successful racing car.
seater was driven by the five-time world After leaving Mercedes in late 1966,
champion racer when he clinched his he convinced Melcher to join him in
second title in 1954. The Argentine drove his business venture. A year later they
the car to victories in the 1954 German founded Aufrecht Melcher Großaspach
and Swiss Grand Prix races. engineering firm, design and testing for the
Robert Brooks, chairman of Bonhams development of racing engines.
auctioneers, which handled the deal, called It wasn’t long before all racing teams
the car the most important historic Grand wanted their engines.
Prix racing car ever offered for sale. In 1971, the cumbersome Mercedes
So what is it about Mercedes, particularly luxury sedan won its class at the 24 Hours
their AMG, which is attractive? Is it that of Spa race. It won second place overall and
Lewis Hamilton can win races in them… beat many lighter, sportier race cars. The
and who doesn’t admire Hamilton, even legend of AMG was born then; their engines
if he does do burnouts in suburban second to none.
Melbourne streets? From the 1970s through to the end of the
The AMG has a long history. It began over 1990s, AMG honed its reputation for high
45 years ago with two German engineers performance vehicles. Every race car owner
who were working on the 300SE-racing wanted his high performance engine and
engine in the Daimler-Benz Development every fast flying businessman wouldn’t be
department. seen in anything other than the AMG. They
Werner Aufrecht and Erhard Melcher had both markets cornered and during this
were the engineers in question and when time the company grew into a medium-

motoring
sized operation with foreign clients and a

“So what is it about Mercedes, staff of 12.
The growth allowed AMG to move into a
particularly their AMG, which is attractive? ” purpose-built workshop and office space in
Affalterbach.
In 1984, AMG had a major breakthrough.
Melcher developed a completely independent
cylinder head with four valves per cylinder. It
was a unique innovation and in 1986, AMG
implanted the 5.0-litres V8 in an E-class
coupe. It was nicknamed the hammer and to
this day remains a US icon.
By the late 1980s, Daimler Benz and
AMG had formed a partnership as an
official racing partnership. The partnership
produced the 190, which won 50 DTM
victories between 1988 and 1993.
In the late 1980s, Daimler-Benz and
AMG started to work together – first as an
official racing partner. The highlight of this
period is the success story of the 190. The
race car, which was put into the race by
AMG with the support of the manufacturer,
won a total of 50 DTM victories between
1988 and 1993.
The partnership meant that AMG
products could be sold and maintained
through the Mercedes-Benz worldwide
network of company-owned sales and
service outlets and dealerships. AMG
expanded further after this opening a third
plant in 1990 and increasing the workforce
to 400 employees.
In 1993, the company unveiled the
Mercedes-Benz C 36 AMG, the first
jointly developed vehicle to result from
the cooperation agreement. In another
development the same year, the Patent
Office recognised AMG as a trademark as
the name was now so well known.
On 1 January 1999 Aufrecht transferred
a majority stake in AMG to Daimler
Chrysler AG. Six years later the car giant
acquired 100% shareholding.
According to the AMG website, “This
allowed the newly founded Mercedes-AMG
GmbH to benefit to an even greater extent
from the Group’s resources and global

standing. Also in 1999, the motorsport department was
transferred to company founder Hans Werner Aufrecht’s
firm H.W.A. GmbH (now H.W.A. AG). Located in close
proximity to Mercedes-AMG GmbH, some 200 staff now
work there together with Mercedes-Benz Motorsport to
manage the two companies’ long-standing involvement in
the German Touring Car Championship (DTM).
Today, there is an 1,100 strong workforce at the plant in
Affalterbach who produce high performance vehicle after
high performance vehicle, while also reaching best in class
status for consumption, emissions, maximum performance
an torque efficiencies.
The range is tailored to the needs of clients and
comprises 20+ AMG high-performance vehicles with power
outputs from 310 kW (422 hp) to 552 kW (751 hp). The
selection of models on offer includes saloons, coupés and
SUVs as well as roadsters and also the SLS AMG, the first
vehicle developed independently by Mercedes-AMG.
The vision is for high performance sports motor vehicles,
morphed into vehicles for everyone, but there still exists
the dream to produce the best racing cars. AMG vehicles
are the best ever performed at the DTM with the SLS
AMG GT3. Having secured 26 victories and the FIA GT3
European championship, the SLS AMG GT3 was the most
successful newcomer in the 2011 motorsports season.
The AMG brand is also represented in Formula 1,
currently by the Mercedes AMG Petronas team and the
engine manufacturer Mercedes AMG High Performance
Powertrains. In addition, AMG has been providing both the
Formula 1 Safety Car and the Formula 1 Medical Car since
“Our team fuses the proud traditions 1996.

“Our team fuses the proud traditions of AMG and
of AMG and the Silver Arrows, with the Silver Arrows, with over 75 years of success, at the
over 75 years of success, at the pinnacle of motorsport,” explains Norbert Haug, Head of
Mercedes-Benz Motorsport.
pinnacle of motorsport.” It was a logical step to strengthen the links between AMG
and the Mercedes-Benz Formula 1 programs, as reflected
in a new name: Mercedes AMG Petronas Formula 1 Team.
In the third race for Mercedes AMG Petronas, Nico Rosberg
took a dominant victory in the 2012 Formula 1 UBS
Chinese Grand Prix, scoring the first win for a works Silver
Arrow since 1955 - following a 55-year break in which no
works Mercedes-Benz Silver Arrow competed in Formula 1.
This is not only a story of fast cars and ultimate
precision in motor racing. The AMG story is one of hope, of
dreams, of talent and of two men who sought perfection.
Werner Aufrecht and Erhard Melcher were pioneers and
wealth creators.

raymond-weil.com Freelancer Urban Black
Enquiries T: (02) 9363-1088 E: info@avstev.com.au

self-made
Island
Style
Some destinations require the local feel
with a touch of luxury, writes Jonathan Green.

travel
Image courtesy of Design Hotels™
There are times when the 50-level skyscraper is the perfect entrance for some celebrity-style treatment.
accommodation. Major cities of the world like New York, Bangkok, But let’s get back to the facilities. What you see and feel at
or Dubai have a sense of excitement and majesty when viewed San Giorgio are equal measures of history, heritage, style and
from a penthouse some 200m above the ground. But if you’re simplicity. The authenticity of the white-washed building is exactly
relaxing in the Mediterranean... well, that’s a different story. You what you would hope to find in Mykonos – anything else would
want to stay in a place where you can feel the natural beauty of the just seem wrong. Equally, the design encourages air and light
area and experience the lifestyle at a local level. with inspired fabrics and furnishings to complement the local
You know what you really want? You want to stay at the summer environment and present style.
house of your coolest friend and immerse yourself in local food, In order to design this blend of local environment and relaxing
culture, attractions, night life, natural beauty... and so much more. class, Design Hotels dipped into its pool of original thinkers for
That is exactly what San Giorgio Hotel in Mykonos has achieved. the design team: former creative director of Design Hotels and
Situated on one of the most scenic areas of the island between now design entrepreneur Michael Schickinger, together with
Paradise and Paranga beaches, the hotel started from humble interior designer and stylist Annabell Kutucu. Throughout, there’s
beginnings in the 1990s thanks to a successful local fisherman a deliberate spotlight on origin and craftsmanship where a few
who wanted to stake a piece of this picturesque land. carefully chosen accessories give the right warmth to an otherwise
Jump forward to 2012 and San Giorgio became part of the open space.
Design Hotels™ Group – in collaboration with Thomas Heyne Naturally, a trip to the Greek islands would not be complete
and Mario Hertel (the creative minds behind Mykonos’ infamous without local food and produce – and again, San Giorgio does not
Paradise Club). In its current form, the majestic location has been disappoint. Market ingredients are sourced to make traditional
amplified with luxury and style, yet remains faithful to the simple Mediterranean fare – such as Greek yoghurt with fruit, freshly
pleasures that make the Greek islands a must-visit destination. baked breads, Mykonos sausages, cheese from the islands and
The 33-room hotel has its own private beach – perfect for homemade marmalade to start your day.
daytime relaxing – although if sand is not your thing there is an At its core, San Giorgio aims to complement Mykonos,
open air lounge around the pool or you could enjoy some privacy not dominate it. It is designed for those who seek simple pleasures
on your personal veranda. If you’re feeling a little more active, you like waking up to views of the sea, sharing good food prepared
can get out on the water in a range of activities, or stay on land with care, and feeling the energy of a crowd dancing under
and consider something like horse riding. a starry sky.
At night, you could simply relax in the gardens; however, if you’re
For bookings or more information, go to:
the type to be tempted by the Greek island nightlife, you can take
www.designhotels.com/san_giorgio_mykonos
a personal shuttle to the Paradise Club and enter through the VIP

self-made
“Chateau Tongariro has been awarded the winner

in New Zealand’s leading Ski Resort category
for a number of years.”
Luxury to
the extreme
In the land of the long white cloud it’s easy to lose
yourself to indulgence, writes Jonathan Jackson.

travel
Image courtesy of Gareth Eyres.
I am not a camper. When I go on holiday, I like to be comfortable. rocky terrain, once docked. And on arrival they would bask in the
Some may see that as soft; I just see it as enjoying a solid sleep, neo-Georgian luxury.
hot breakfast and hotter shower. In this regard I am not extreme. The grand entrance portico is highlighted by dramatic
However, I do like the extreme experience and New Zealand columns. The floor-to-ceiling arched entry is made special by
offers plenty of them. Famed for their ski slopes and extreme the Ngauruhoe Window and its superb view of the mountains.
sport, this is the place to go if you want a wild adventure during They would fine dine under magnificent chandeliers and enjoy
the day and luxury accommodation to unwind in the evening. long evenings in front of roaring log fires in the plush Ruapehu
There’s too much to write about New Zealand in a 500 word Lounge.
piece, so I’m going to concentrate on one place: the Bayview War and volcanoes ravaged the region soon after and Mt
Chateau Tongariro. The Chateau is an architectural icon and shares Ruapehu rediscovered its inaccessibility, but in 1948, newly
the landscape with three active volcanoes. In winter the chateau renovated, the Chateau reopened.
is popular with skiers and snowboarders. At other times of the On its 75th birthday, new owners decided to restore the hotel
year, it’s a luxurious base for hiking, biking and fishing fun in the to the glory of its origin years, and marked the occasion with a
Tongariro National Park – a dual-listed World Heritage Area. new wing (including 39 stunning rooms) all in keeping with this
The Chateau is steeped in history. In the late 1920s, The icon’s old-world ambience.
Tongariro Park Tourist Company Limited was formed to build Today, the Chateau Tongariro is a Category One Historic
the Chateau. It was to be an elegant Georgian structure of four Building. You can still dine under grand chandeliers on the finest
stories and basement, alongside the original Whakapapa ski huts. cuisine of the day, or enjoy the breath-taking mountain views
The Chateau, styled after the Canadian resort of Lake Louise, was from the grand arched Ngauruhoe Window. You can still relax
built to offer overseas tourists an international standard of hotel beside a roaring open fire in the plush Ruapehu Lounge.
accommodation. So there’s the luxury and to top it off Chateau Tongariro has
Construction began in January 1929 and was completed by been awarded the winner in New Zealand’s leading Ski Resort
August. Ruapehu had its own luxury resort and world class VIPs category for a number of years at the World Travel awards held in
soon caught wind. London.
They would travel months at sea to experience the revelry the Tongariro is shrouded in alpine mists. The resort is heaven and
Chateau provided. They would traverse primitive landscapes and the ski fields where the angels play.

books
Higher learning
Reviews by Daniel G Taylor
The Art of Thinking Most people, he says, expect that Takers will finish
Clearly first. But the research he’s done has found an answer
By Rolf Dobelli that will surprise you. Givers finish last, but Takers don’t
Sceptre, 2013. $22.99 finish first. While some Givers do finish last, other Givers
come out on top. Takers and Matchers settle in the
Entrepreneurs profit from middle. Otherish Givers – those who nurture themselves
understanding cognitive biases in – are the ones that win.
two ways: first, you’ll make rational Grant presents his argument well. He’s taken care to
decisions; second, you’ll be an effective marketer. ground his opinion in scientific research and he uses
The Art of Thinking Clearly exposes 99 cognitive biases case studies to bring his points to life.
– simple errors all of us make in our everyday thinking – But what makes this book of greatest value to an
and shows us how to become rational thinkers. entrepreneur is that it’s practical. Grant reveals the
Author Rolf Dobelli brings a fresh perspective because mistakes Selfless Givers make that see them finish last,
of his unique skill-set. He’s a Swiss writer, novelist and and explains why Otherish Givers win. At the end of the
entrepreneur. And he’s founder of an invitation-only society book there’s a section called “Actions for impact”.
of the most distinguished thinkers, scientists and artists. Read this to be convinced of the need to become an
Each short chapter deals with one cognitive bias, Otherish Giver – and find a roadmap to get you there.
showing the thinking error in action and enlightening
readers about how to think clearly. Tax for Australians For
While the book is not written for entrepreneurs, Dummies, 2012-2013
Dobelli’s experience in starting successful ventures Edition
makes it helpful for you. By Jimmy B Prince
Entrepreneurs, like anyone, are prone to making bad John Wiley & Sons, 2013. $24.95
decisions because of their cognitive biases. This book will
teach you how to discard irrationality and replace it with By the time you read this, you’ll have
clear thinking. little time left to get your tax return in
Perhaps the biggest boon, however, is that it empowers before the deadline: 31 October.
entrepreneurs to become better marketers. If your Like all the Dummies titles, this one gives you a
product warrants it, you can target your marketing to comprehensive introduction to a complex area while
make use of your customer’s cognitive biases. keeping things simple.
No matter how much you know, you’re always going Tax for Australians For Dummies starts with looking
to be biased in your thinking. This book increases your at how the Australian tax system works. It moves onto
chances of thinking clearly. the three areas you get taxed on: income from personal
exertion, tax-effective investments and running a business.
The next part gets you to think long-term: superannuation,
Give and Take: A pensions and the taxes involved with death.
Revolutionary Approach Jimmy B Prince’s guide is simple, but not simplistic.
to Success This is one of the most readable books you’ll find on tax,
By Adam Grant unless it’s an area you’re really passionate about.
Weidenfeld & Nicholson, 2013. $32.99 It’s a book where you can read only the parts relevant
to you. As you read it, you’ll gain a basic understanding
As entrepreneurs, what kind of people of your tax obligations. Prince also points you towards
do you think do best in business – the Givers, the Takers lots of ATO publications so you can do further research.
or the Matchers? You can also use the book to prepare questions for your
Adam Grant has an answer to that question, and it’s tax agent. So if you’re the kind of entrepreneur who
one he’s qualified to give. He’s the youngest tenured despises numbers and bureaucracy, this book will be a
professor at the Wharton Business School, USA. friendly guide in enemy territory.

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books
between pre-existing ideas.

Triple Crown Leadership: Kaye is a “global innovation and trends expert
Building Excellent, specialising in brand strategy for consumer businesses”.
Ethical and Enduring That sounds detached from real world experience,
Organizations right? But read her client list of Apple, Mars, Colgate,
By Bob Vanourek and Gregg Vanourek McDonald’s and American Express and her results speak
McGraw-Hill, 2012. $45.00 for themselves
This book is solidly grounded in research and
Triple Crown Leadership takes principles of human illustrated with interesting stories. Her book is an
effectivness a la Stephen R Covey and applies them to intelligent read that will help you generate innovative
leading an organisation. ideas. One thing she explores is how the left-brain/
Triple Crown Leadership is divided into two parts. The right-brain theory that dominated self-help and business
first is the practices of principle-centred organisational literature for decades is bunk. She shares the latest
leadership. The second part is five chapters of case scientific findings to show we always use both sides of
studies that illustrate how leaders have used the the brain, each side, however, processes information
practices in their organisations. differently.
The practices are Head and Heart (selecting and Anyone who wants a better way to find and reach
developing talent), the Colors (purpose, values and unmet needs with an entrepreneurial solution will profit
vision), Steel and Velvet (knowing when to be forceful from this book.
and when to be gentle), Stewards (creating self-regulating
organisations) and Alignment (working toward shared
goals).
Does the book succeed in its aim to teach you Mastering Media
principle-centred leadership of organisations? The Interviews in the
answer to that is yes. But does it contribute anything to 21st Century
leadership literature that hasn’t been said before? Sadly By Steve Cropper
the answer is no. A&A Book Publishing, 2013. $24.99
The thing which holds this book together is its horse
racing metaphor. To create significance within an Entrepreneurs will find that learning to handle the media
organisation, you need to build one that is excellent, helps you become a magnet to customers “if you present
ethical and enduring. One or two of these strands is not yourself well”.
enough. Success is all three. Steve Cropper’s Mastering Media Interviews in the
This book will grab the attention of entrepreneurs 21st Century is a collection of skills-based tips from an
with an interest in leadership, as well as those who like industry veteran. Do you need this book? Take this test:
Stephen R Covey and have a taste for horse racing. if someone from the media called you for a comment right
now, would you know how to handle them? What if they
were taking an adversarial approach to the interview?
Red Thread Thinking: The book has sections including ‘The Spokesperson’s
Weaving Together Craft’, ‘The Media Mastery Model’ and one on how to
Connections for Brilliant create media-friendly first impressions.
Ideas and Profitable Almost every one of this book’s 99 pages is crammed
Innovation with advice, tips, tools and strategies to do what it says
on the box: help you master media interviews. Cropper
By Debra Kaye with Karen Kelly knows what he’s on about. He’s one of Australia’s leading
McGraw-Hill, 2013. $34.95 media trainers and has spent 30 years in TV and radio
journalism, politics and public relations. His book covers
What entrepreneurs do is innovate. Good entrepreneurs print media too, and he teaches you how to present your
find an unmet need, or a problem that needs to be solved, message in a nutshell so the media will be able to use it.
and they base a business around it. Whether or not you plan to talk the media, if you own a
Debra Kaye teaches you a process to take the act business, you need to be ready to do so.
of innovation from being random inspired chance to
being something methodical and reliable. Underlying
the system she teaches in Red Thread Thinking is that
innovation is what happens when you make connections

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out of the box
Get with
t h e p r o g r a m
It’s official: the DVD/video industry what you want and then come home highlighted the problems within
is dying, or just about dead. A recent to find that it isn’t what you were the book publishing industry and
report by IBISWorld suggests that in the mood for anyway? Online therefore booksellers are struggling
the worst five industries for 2013/14 downloads give you the luxury of (although there are still those of us
will be: staying at home, choosing, changing who like to go into the bookstore and
• Video and DVD hire outlets - your mind and then relaxing without feel, yes, that’s right, ‘feel’ the book,
12.3%. having to be disappointed that the it’s soft smooth skin, it’s… ahem).
• Automotive electrical component only two copies of Malibu Bikini Books, unlike DVD rentals will
manufacturing - 6.7%. Shop ... er ... Pride and Prejudice survive. I have a big DVD collection,
• Heavy industry and other non- were already hired out. The only real because I like the artwork and the
building construction - 5.4%. advantage of the video library was liner notes and the feeling I get when
• Book publishing - 4.3%. the Ben & Jerry’s or Cold Rock ice I play one of my favourites. But I
• Mineral exploration-3.5%. cream in the freezer. fear somewhere down the track, that
Blockbuster stores are a bust. will change completely. Books on
Close to my heart here are video The irony is that these mega libraries the other hand are tangible; they are
and DVD hire outlets and book were behind the demise of many required for pleasure and education.
publishers. However the Some even prop bedposts
writing has been on the on them. And publishers
wall for video retailers saw the light early on
since Peter Jackson and began offering online
released the Lord of the “THE ONLINE REVOLUTION IS HERE.” versions for tablets and
Rings (LOTR) box set, the readers.
LOTR director’s special The online revolution
cut box set, the LOTR director’s independent retailers. Is that karma? is here.
special cut Hobbit edition box set and If the powers-that-were at IBISWorld’s top five industries and
finally the LOTR ‘my precious’ box Blockbuster had been on the ball, their expected revenue growth are as
set, featuring special commentary by they would have shifted their model follows:
Gollum and a giant talking tree. By to offer online downloads. They • Superannuation funds - 40.5%.
the time I had finished purchasing didn’t, and it resulted in bankruptcy • Iron ore mining - 22.9%.
these mega collections, I could have and closures. This is one business • Online shopping - 13.3%.
opened my own video library. of many, in an online generation, • Internet publishing and
The problem with video libraries who were foolish enough to think broadcasting - 12.7%.
is the same problem that any one- that the experience of face-to-face • Wind and other electricity
dimensional business has: it quickly rental would be enough to keep them generation - 11.3%.
becomes outdated. Today, if I want to running efficiently.
watch a new movie, I can rent it from Publishers have a lot to learn from Internet publishing and online
iTunes, Netflix (with the help of my the video experience. Magazines shopping: the message is clear.
little friend) or myriad other online are still well-read, but the more Follow the trends in these volatile
sites. Who wants to go to the video profitable publishing model is times and you will avoid a scrapheap
library, spend half an hour deciding now online. The demise of Borders of blockbusting proportions.

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Rusl an Kogan: surfing The interne t re volution

SPRING issue $9.95 inc GST

The next generation Audi R8. Nothing comes close.

Overseas model shown. AUDI5832/R8/WCM/DPS/1907

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08. Editor’s Letter

10. In the News

4 | new wealth creator SPRING 2013

44. What the property pros know – James Freudigmann

46. Top tips to leadership excellence – Tim Reed

SPRING 2013 new wealth creator | 5

ART & PRODUCTION

Written Correspondence to:

21st Century Media Holdings Ltd

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W e don’t sell platforms, brokerage or any new whizz bang

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In this final installment of Pacsoft founder Andrew Darbyshire’s three Ps

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