What you need to know about Contracts and Insurance

As a young entrepreneur, it is easy to get flummoxed about the “legal stuff” – so Vanessa Cullen, Director of Forward Thinking Design and winner of 2010 Anthill 30 under 30 winner; has put together a Contracts and Insurance 101 piece to help you get your head around it all….

Indemnity, Business Insurance, Contracts, IP and more

Service Contracts

• If you’re in a service industry get your service contract written by the best legal counsel you can afford.

Your professional association may be able to provide you with a basic pro-forma contract template but I’ve largely found these to be deficient when it comes to the reality of what people will try to get out of paying you for your services.

By all means, draft your own contract, using such pro-formas as a basis but do invest in submitting this to a solicitor who specialises in contractual law and has experience of your industry.

Their services certainly won’t be cheap but you’ll save so much more in the long run by having a good, solid, hole-proof contract upfront.

Who’s Signing the Contract?

• Ensure that the person signing (and named in) the contract is the same person responsible for paying you.

If anyone says they’ll be paying you on the behalf of the person who signed then get it in writing, with an acknowledgement that they’ve read the contract and understand that they’ll be held accountable for late payment.

Or, better still, reissue the contract in their name and have them sign. Ensure you’re contracting with an individual or company, not a trading name or false entity.

For large contracts you’d be well advised to conduct a background credit check on the client to ensure they have the capacity to pay versus a history of defaults.

Claiming Fees

• Aside from your fees, also include costs in your contract so you can be reimbursed for travel, printing etc. Make it very clear when payments fall due.

Ensure all parties can identify the end of a stage of delivery so there’s no later argument about when your services have been deemed to be completed, your involvement in the project is in order and the account should be settled.

Licensing Intellectual Property

• Include licensing arrangements in contract terms and conditions even if project is only proposed as a one-off.

You must limit the licence to use your IP or risk it being stolen and replicated.

An example of this for us is when we design one store but the client then decides to sell our design to franchisees to roll-out subsequent stores.

We have licencing arrangements with our clients that allow them the freedom to expand and franchise but which also ensure we receive a suitable return on the replication of our design.

Public Liability and Professional Indemnity Insurance
• You must get public liability insurance and professional indemnity insurance. You’d have to be crazy to run a business without protecting yourself from litigation.

Read the paperwork carefully and ensure you’re properly covered.

Business Insurance
• I also recommend you get business insurance to protect your business from costly interruption and to protect your assets.

Be careful to enquire about ‘add on’ covers.

These are items that you’d think would be covered in the general business insurance but which your insurer has decided (in their infinite wisdom) to make separate options.

We got stung one year by not realising that business items in a business vehicle were not insured because we didn’t realise it was a separate ‘option’.

When items were stolen from a vehicle, we found we had no cover. Business items on your person or in your vehicle may not be automatically covered. Read the PDS in great detail.

Purchase Records

• Record all conversations with insurers and suppliers at purchase time, they often do and you should too. This protects you from errors in their sales process that may be difficult to prove later on.

We hope this helped!

$6 million Govt funding for tech start ups

If you have a tech start-up, or planning one – the NSW Govt wants to hear from you!

So here is the criteria to satisfy for the Collaborative Solutions-Mobile Concierge Program

Consortia-backed submissions Each submission must be backed by a consortium of at least three members. The consortia lead must be a NSW-registered business with the capability to commercialise and export the ICT solution being developed. The consortia must include at least one user organisation to participate in the development and piloting process. The remaining consortia members will provide technologies, content or capabilities to the project. Submissions by single companies or individuals will not be considered.

Developed and piloted in NSW Solutions must be predominantly developed in NSW. Submissions with minor components developed outside of NSW will be considered, but those components will not be supported by the grant if one is awarded. The solutions must be piloted in NSW.

Development has not commenced The development of the proposed solution must not have commenced before the date of submission. Any grant funding will be for the development and piloting of the proposed solution after the date of submission.

Funding applications close on March 25, with successful grants announced in early April

There is an industry briefing to provide details of this program. If you are going to check this out – you have to confirm your place by 28th Jan 2010. Click here for more details on the CS-MC Program

Best of luck folks

Your 2011 – Massive success; or Epic fail?

Imagine this….it is 31st Dec 2011 and the whole world is about to celebrate the coming of 2012 – what do you think will be your final reflective thoughts of YOUR 2011?

Well…….you have 361 days to create this year as you want it….and counting.

Richard Branson in his book “Screw It, Let’s Do It”, said,

“I always tell people that if they want to do anything well, they must plan and prepare.”

Don’t forget to take time to do this important step. It is only too easy to get caught up in the excitement or the ‘busy-ness’ and forget. Don’t watch that Youtube interview, don’t check your Facebook, don’t plan on how to spend your riches…until you have planned and thought about your business goals and strategy. Branson’s achievements only prove the value of this importance business step.

Have you thought of what makes a great business, as opposed to a frustrating, going-nowhere business? How will you know that yours will be successful? Well, let’s hear from some hugely successful young entrepreneurs on how they started and planned their path to building great businesses…

Scott Farqhuar’s checklist (regarding what he looks for in a biz) – Atlassian
1. Would I personally use this?
2. Do I get excited about the possibilities of this idea?

Matt Wilson’s checklist– Under30CEO.com

1. How much time/effort will the idea take to implement?
2. Is the idea profitable?
3. Does the idea fit your businesses long term strategy?
4. How will the public view your idea?
5. How will your employees view your idea?

Now it’s your turn. Rate yourself in our simple Business Fire Test checklist – 10 questions and you will know exactly where you are at, and what you need to do.

And if you are a Sydney Young Entrepreneur we have some outstanding 2011programs with mentors, business experts and super hot business content!

How To Be A Wealthy Property Investor Before Your 30th Birthday

30 is is the new old. If you havn’t reached 30 you might think it’s ancient, but really it’s not. At thirty you will still have plenty of energy and youth to enjoy the fruits of any successful investments that you make which is why building wealth before you hit thirty is an excellent goal.

If you can manage to build some wealth by the time you turn thirty you will be able to enjoy life more and work a little bit less. While your contemporaries are braving the rat race in hopes of enjoying their wealth in twenty years you can enjoy it now while you are still young enough to make the most of it. Property investment is one way to put yourself on that road to success before you get to the ripe old age of thirty.

The successful property investor has some basic personality traits that help her or him get ahead of the financial game. They need to be tough decision makers who are not afraid to commit to those choices. They also need to be smart enough to know when to stand their ground and when to bend so that they can adjust to the inevitable changes that will come their way. They also must be creative enough to see potential where other people might not and wise enough to make the difficult choices to make that potential a reality. If you think that you want to dip your toes into the poop of property investment you should see how your personality measures up to that of other successful investors.

Personality Traits Of A Successful Property Investor

Decision Oriented – Most property investors know that the buck stops with them. When they come to a decision they stick with it because they know, they do not just think, that their decision is the right one. Whether this decision is a product of loads of research or just instinct does not matter, what is key is making the choice and acting on it. This does not mean that the choices are always perfect or even successful, everyone fails sometimes. But even then, you must be able to accept the failure and keep moving.

Optimistic – If you were to look at a portfolio of a successful property investor you might be shocked at some of the risks they took. From buying properties that seem uninhabitable to betting on neighborhood improvements that are years out, most property investors are willing to gamble because they are certain that they are on the right side of the bet. While you have to be smart in your optimism the ability to look past the problems and see potential is an incredibly valuable skill. This does not mean pasting a fake smile on in the face of all adversity. What it does mean is being able to see the diamond in the rough or to take little failures in stride without giving up.

Flexibility – The thing with dealing in investment properties is that it is a constantly changing business. Markets, interest rates, and attitudes constantly change. Again, the successful property investor has to be able to not only roll with these changes but find the opportunities that are hidden within them. Attitude in life is just about everything, and investment properties are no different. You will not have the time or the luxury of dwelling on the negative impact of changes, you just have to find a way to move forward.

Patience – Property investment is not going to bring you fat returns overnight. In most cases it takes years to see a return or a profit on your investment. This type of wealth building is not for those people who simply want to make a quick dollar. Instead you need to have the patience to choose the right property and the experience to look for trends in the market that are predictable, even when those trends take years to cycle.

Leadership – As a property investor you have to know that you are the final decision maker. While it is important to surround yourself with smart people that you trust to help make decisions you also have to know that ultimately you have the final say. By realizing that you are the leader you take full responsibility for the success but also for the failures of your team. It can be a difficult road to travel, since we all want to blame someone else for our failures, but in the end you will know that you did what you knew was right, regardless of the outcome.

Financially Savvy – Being able to manage your finances is likely one of the most important traits you will need to master as an investor. You will incur large amounts of debt as you buy new houses and then pay for any construction or repair that needs to be done on them. The smart investor is not using their own money, but rather the money of others to help grow their business. In the beginning you will have to get a home loan from the bank to finance your investments, but over time you should be able to borrow against your property portfolio. That means managing your debt wisely and avoiding the urge to spend frivolously.

Self Evaluative – Just as you have to be strong and smart enough to be the leader of your team you also have to be smart enough to know your weaknesses. You might be great at choosing properties and understanding the market climate but completely incapable of doing payroll. You might not have the patience or the time to do your own taxes. Knowing that there are lots of things that you do not know or that you do not have time to do is a great asset. Once you figure those things out find people whom you trust and give them control over those issues. It can be hard to let go of control but you will be better for it in the long run.

Trustworthiness – Anyone who runs a business will tell you that being trustworthy is imperative. This is not a personality trait that can be learned, it is all about knowing what is right and wrong and trying to always do the right thing. Too often investors are seen as untrustworthy because the have a bad reputation for not holding up their end of a deal or using unsavory business practices. Those are the people that wind up failing because eventually no one wants to work with them. You can be better by simply being honest with yourself, your employees, clients, and anyone else that works for or with you. Being nice does pay off in the end.

If you are thinking of investing in properties then you are on the right track to wealth. As long as you have the right personality traits and the willingness to work hard you will find the success you are looking for regardless of your age. Starting young only means that you will also be able to enjoy the fruit of your labor earlier. Perhaps even at the ripe old age of thirty.

Financing Your Start Up With A Credit Card

One of he most popular ways to fund a start up company is with the help of credit cards. A credit card gives the entrepreneur easy and fast access to much needed funds while he or she is in the process of building a company. Many of million dollars companies have been started with a simple credit card.

Personal loans from family members and friends are also highly favoured as finance for start up companies.

Cisco Systems, a successful company was founded by Sandy Lerner and Len Bosack and if wasn’t for their personal credit cards they might have never seen the levels of success they found thanks to their fluid funding tool.

Other business success stories are also based on credit card funding such as the story of Google and how Sergey Brin and Larry Page pulled their cards to fund much needed office equipment and computers to get rolling.

Movie lovers also know too well of the any famous directors who had to resort to the practice of funding their celluloid success with the help of a credit card to get off the starting blocks.
Start up funding exposed:

While a personal credit card can be and is a great tool to fund a start up venture it can be a bit of a grey zone because of the legalities involved. These days many banks offer you a business line of credit to fund a business. However, what many entrepreneurs fail to understand is that even these loans will be your personal responsibility in the event of a repayment default.

Unless your business is registered as an incorporated entity you will be made legally responsible for all debts accrued whether you apply for a business line of credit or a business credit card.

The problem for most start ups is that unless they have a guarantor with enough financial clout behind them they won’t be able to incorporate their company in the first place.
Check for exclusions:

One of the first things you should do when looking into start up funding is to see whether some of your personal assets can be excluded from your personal guarantee. Another option is to see whether the loan guaranteed percentage will decline as the business matures.

Never sign credit card contract unless you understand the legal implications of it.

Despite the possible financial implications sometimes entrepreneurs have no other option than to fund their business with a personal credit card. The same applies to personal loans from friends and family. Check what is expected of you and be sure you have a backup plan for the worst case scenario.

Business start ups mustn’t be a financial nightmare before they even take off. With a bit of financial diligence and planning you should be able to make the most of your options.

bizedge – Young Entrepreneurs Day

Get an edge and grow your business idea NOW.

Come and spend the day hearing from highly successful entrepreneurs, networking with other young entrepreneurs and learning key skills that will give you the edge over your competition and the market today.

BIZ Edge Young Entrepreneurs Day is a free event held during Small Business September by the NSW Department of Industry and Investment in conjunction with The Frank Team.

This FREE event specifically for young entrepreneurs is packed with all sorts of good ideas to grow your business to the next level or to help you get started in the business world. Check out what is involved in the day……

Keynote speaker: Amanda Gome from Smart Company – A highly successful entrepreneur, Amanda will share her secrets on how she built her business empire and what gives her the EDGE in their market today.

Workshops: All participants will attend two practical and highly useful workshops.

- Online Marketing Success with Fred Schebesta will run twice so all participants go through this workshop. Fred Schebesta will share his ideas and knowledge about the important elements of online marketing success.

- ACTIVATE Steps to Start UP with The Frank Team is perfect for you to learn the steps to starting up your own business, how to take your idea and make it a reality.

- Life cycle Marketing Systems with The Frank Team will help participants learn about marketing success for their business and how to set up systems that run this part of your business. This workshop is from The F rank Team’s highly successful YESUP.
After lunch, a panel of young entrepreneurs from a wide range of industries share their secrets to success, and answer audience questions.

Your panel includes:
* George Katrib – Bayswater Property Group
* Lisa Messenger – Messenger Marketing
* Glenn Drew – esite Connect

Plus you can meet heaps of very cool people, or take part in promo opportunities where you get up in front of the group, and tell everyone about you and your business, before continuing networking after the event downstairs at The Verandah Bar.

The BIZ Edge Young Entrepreneurs Day is on Friday September 11 at the Sydney Mechanics’ School of Arts, 280 Pitt Street, Sydney. The day begins at 9.30 am sharp and winds up at 3.00 pm.

To register go to www.smallbusinessmonth.nsw.gov.au. Enquiries to anna@frankteam.com.au or call (02)95186244.

But there is only room for 60 people so do RSVP quick to secure your spot.

So the important details….

When: Friday September 11th

Where: Sydney Mechanic School of Arts, Pitt Street, Sydney

What time: 9.15am for a 9.30am start – 3pm

And we will start without you if you don’t arrive on time!

RSVP: To register go to www.smallbusinessmonth.nsw.gov.au and search for “Biz Edge” event.

Any questions contact us on (02)95186244 and ask for Anna.

Look forward to seeing you there.

More info about the speakers at the event….

KEYNOTE – Amanda Gome
Amanda Gome is the founder and publisher of SmartCompany.com.au, a free online news and resources site for entrepreneurs. Previously she had been an editor and senior writer at BRW magazine where her passion and interest in entrepreneurship led her to founding and editing the Fast 100 list and the Emerging Companies section.

Over two decades in business journalism, Amanda has interviewed almost every entrepreneur in this country worth their salt … and plenty that weren’t! She is also an adjunct professor of business at RMIT University, lectures students in entrepreneurship and regularly comments on business.

Practical TAX Assistance Available for Young Entrepreneurs

Do you need more practical help to manage your business?

Do you get confused by all of your tax obligations and worry if you are keeping up?

We know that when you start and run a business all you want to do is just that – run the business! But what comes with that is plenty of administrative things…..like TAX! It can be confusing and annoying – we know. But there is a whole heap of help out there from the ATO just waiting for you to use for free to keep you on track and growing your business….without getting into tax troubles.

The Tax Office’s Small Business Assistance Program provides free, practical help which is aimed at keeping businesses on track.

In a recent speech to the Council of Small Business of Australia, Tax Commissioner Michael D’Ascenzo announced new measures to help businesses that are struggling to manage their tax payment obligations in the current economic climate.

Eligible small businesses with an annual turnover of less than $2 million can apply for:

• 12-month general interest charge free payment arrangements for activity statement debts (BAS)

• deferred activity statement payment due dates – they can grant requests for deferrals of up to two months for quarterly and annual payers and one month for monthly payers.

For debts of $25,000 of less, businesses can use the ATO online calculator to work out a payment arrangement that meets your circumstances. Once you have calculated a suitable payment scenario based on your circumstances, you can use this as a guide to propose a payment arrangement.

For debts of $25,000 or less, businesses can use the ATO automated self help service to apply for a payment arrangement by calling 13 72 26. The self help service operates 24 hours a day, seven days a week.

Businesses with a tax debt or experiencing payment difficulties should visit the Tax Office website www.ato.gov.au/businessdebt or phone 13 11 42 from 8.00am – 6.00pm Monday to Friday.

The Tax Office also offers other forms of free assistance to help business. Talk to them and they can help you better understand your tax obligations. Their range of business support services gives you access to experienced tax officers who can answer your questions for free and help you get on top of your tax issues.

They offer:

- On-site visits where they come to you, nice! http://ato.gov.au/businesses/smallbusiness.asp

- Local seminars and a range of workshops

For more information:
• Free tax support
• Rates, calculators and tools
• Record keeping for small business (NAT 3029)
• Do you need financial advice about managing your business during the downturn?

Make the Media Your Best Friend

Young Entrepreneurs in the Media

Dealing with the media can seem daunting when you’ve never done it before. Once you learn how, media coverage can be the best marketing tool to grow your biz.

We asked 3 young entrepreneurs how they got media attention, how it helped their businesses and what tips they have for anyone starting out.

Check out their stories here

Here are some examples of media releases featured in local papers by young entrepreneurs:

Download them and start thinking about what press release you could put together to get you and your business noticed in the media!

Paul Munro, Creative Director, Vision- Print Design Studio

1. Local paper (The Highland Post) – Local Young Entrepreneurs Reject the Recession

Vanessa Cullen, Principal, Forward Thinking Design

1. Fit Out magazine – Setting the Standard

2. Local paper – Design on Future

Where has The Frank Team been in the media recently???
We have been lucky enough to get some great media attention over the years. We have used a combination of direct media releases to journalists, as well as our website ranking highly for keywords that we know journalists are looking for and they then contact us!

Check out…
News.com.au – Young entrepreneurs tell Australians to toughen up on the global financial crisis
Daily Telegraph – Youth get down to business
The Australia – Now’s the time for web starts ups to go online
Want to learn how to get yourself featured in the media?

BOOK NOW for our PR Secrets for Beginners Workshop.

Send us your media coverage and we will add it here for ALL to see! jessica@frankteam.com.au

5 Common PR Mistakes

The thought of contacting a journalist and media agency can be scary, but it doesn’t have to be! We’ve been around the PR block and learnt a thing or two about what NOT to do when trying to gain media exposure for you and your business.

Here is your 5 COMMON PR MISTAKES TO AVOID download a peak at what to avoid with DIY publicity

Want to learn more?

If you want to learn more about how to be a self-sufficent PR gun, hurry and book now for our ‘PR Secrets for Beginners’ workshop which is running July 14th, Syd with young PR and publicity extraordinaire Jonica Bray.

As busy people it can be tricky to keep a finger on the pulse in all areas of your business or organisation. So knowing how to continually promote you and your organisation through media channels can be daunting…unless you have the know-how.
Effective PR is important to any organisation for a number of reasons. Mainly because it raises your profile to your audience, positions you as an expert in your field, helps to build your database and most importantly INCREASES SALES and exposure for what you do!

Book Now to come to our engaging and highly effective workshop so you learn the Tips from Jonica who has worked on the inside as media for many years.

PR Secrets for Beginners – Workshop

Would you love to get some coverage in the media to grow your business but don’t know where to start?

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As busy entrepreneurs it can be tricky to keep a finger on the pulse in all areas of your business. So knowing how to continually promote you and your business through media channels can be daunting…unless you have the know-how.

Effective PR is important to any business for a number of reasons. Mainly because it raises your profile to your audience, positions you as an expert in your field, helps to build your database and most importantly INCREASES SALES!

Why pay someone else when you can learn the secrets of how to utilise the media and make the most of PR opportunities yourself?!

The Frank Team’s ‘PR Secrets for Beginners’ workshop will teach you how to be a self-sufficient PR gun with a toolbox full of strategies for getting you and your business the PR exposure to grow your business right now.

Following the success of April’s “SHOW ME HOW” online marketing workshop with marketing gun, Fred Schebesta, The Frank Team are excited to offer a 3 hour practical workshop for young entrepreneurs like you on how to get out there, get noticed and raise the profile of you and your business with PR and publicity extraordinaire, Jonica Bray.

The Frank Team’s “SHOW ME HOW” series deliver workshops that are presented by young entrepreneurs for young entrepreneurs that are only about stuff you need to know about and focus on showing you HOW TO DO IT YOURSELF.

When: 14th July 4.30 – 7.30pm

Where: bioFirst Seminar Room
Ground Floor, National Innovation Centre, Australian Technology Park, 4 Cornwallis St Eveleigh, NSW 2015
Parking available on site.

How Much: $66 per person (inc GST)

A recording of this workshop will be available to view after the event  – please email jessica@frankteam.com.au to book your access.

Also, if you have a skill that you would like to SHOW other young entrepreneurs HOW TO DO then please contact us for inclusion in our “SHOW ME HOW” series.

We have put together a short article on 5 Mistakes to Avoid when working with the media. We hope to spread the learning we have had over the years in regards to working with the media to you so please feel free to forward the article around and use in your newsletters etc with acknowledgment of The Frank Team of course.

Plus check out the coverage other young entrepreneurs have got in the media recently – get inspired!

Our Workshop presenter:

Jonica Bray from Publicity Insider

Through this workshop Jonica Bray will teach people all the basic skills they need to get their business PUBLICITY.

After working for leading national and international press and liaising with PR agencies on a daily basis, she has a lot of experience to share. As a journalist she knows which stories get published and which press release’s end up in the recycle bin.

Her inside knowledge can be passed on and by following the simple instructions you will have a basic PR plan in no time. Most news rooms work the same and are looking for particular types of stories at certain times of the year.

Jonica will provide you with those calendars and suggest ways you can be involved with many publications throughout the year, establishing your credibility and enhancing your reputation along the way.

The 3 hour workshop will cover:

- Introductory guide explaining what PR actually is (compared with marketing and advertising)

- How PR can help your business

- Why it’s important to set PR goals

- How to create a simple PR plan.

- Identifying target audiences and the publications they read

- The main ways to secure free editorial coverage

- How to develop story material for your pitch

- Digging deeper to get the story

- Who are you going to call?

- Roles within the media

- Becoming a PR expert

BOOK NOW TO SECURE YOUR SEAT

When: 14th July 4.30 – 7.30pm

Where: bioFirst Seminar Room
Ground Floor, National Innovation Centre, Australian Technology Park, 4 Cornwallis St Eveleigh, NSW 2015
Parking available on site.

How Much: $66 per person

A recording of this workshop will be available to view after the event  – please email jessica@frankteam.com.au to book your access.

We have put together a short article on 5 Mistakes to Avoid when working with the media.  We hope to spread the learning we have had over the years in regards to working with the media to you so please feel free to forward the article around and use in your newsletters etc with acknowledgment of The Frank Team of course.

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