Many of you will know the story.

You put a frog in a pot of boiling water and it will jump out. Put it in a pot of cold water and then gradually turn up the heat the frog will eventually boil to death.

This is how I relate to most of us  with regard to having regular health check ups. We go along putting up with the minor creaks and pains and before we know it - Bingo , a heart attack. The same applies to bowel cancer, without regular checkups we wake up one day in pain, go the specialists, have a colonoscopy and find we have bowel cancer.

This is so for those over forty. You would'nt let your car go without servicing for a couple of years yet this is the way you treat your inner health, you never get it serviced.

As someone who believes in acting the minute something sounds or feels wrong, I would have had open heart surgery by now if I had not noticed a minor change in my efforts at the gym  a year ago. One of my sisters would still be with us today if she had gone to the sepcialist when she first had pain. No, she was a nurse and knew better. She chose to ignore it, thought it would go away and she died too early. Again, I would have had the same issue had I not had regular tests.

You are no use to your family and your business if you are out of action due to your own stubborn atttude and do have regular check ups. I don't mean just going to your GP, go and have an echo stress test on your heart, have a colonoscopy, get you skin checked by a specialist, have your eyes checked, get your hearing checked and measure your various blood levels for potential early warning signs.

If you don't then your are not only a dill, but also selfish. Just make sure your life insurance is paid up.

Late last year Grant Thornton published a paper on private food companies in Australia. For me, the key issue that came out of that survey is that innovation is a core success factor in growth and profitability.

I often see private companies who have their head in the sand when it comes to taking a proactive stance on innovation. They believe that what has worked in the past and been successful will get them through in these ever changing times.

Jack Trout wrote a book that should be a must read for all business owners. It is titled Differentiate or Die although written in 2000, it is even more relevant in today's highly competitive business world. The only difference is the impact of the web in 2012 an some of the examples mentioned are no longer in existence due to mergers , takeovers etc.

Consumers are faced with thousands of choices on a daily basis. They research on the internet before making a purchase and are able to access product from all over. For example, my daughter is expecting her first baby next month and I have watched with interest how nearly all the new baby gear has come via research on the internet.

Innovation has to be part of your DNA and be a constant core activity in your business. Your competitors will copy you and that requires you to be leading the way. My experience is that the greatest change is in packaging and making convenience king.

What are you doing to ensure your clients will chose you and your products over your competitors ? If you have an advantage now, is it sustainable ?

Just look at McDonalds menu today compared to ten years ago and their sales are still growing. 

This photo was taken after last year's flood in Ipswich. If this was your business would you survive and be able to recover ?

The building belongs to the Peter McMahon Swim Factory, a successful swim centre for kids and learners. Back in 1974 Peter's father also operated a successful soft drink company from the same site and it was completed flooded in those at that time as well. It took a long time to recover from that closure in the middle of their peak sales season.

So, this time around Peter knew to prepare and removed all his motors, papers. computers etc out when he saw the signs that a flood was heading his way.

Pre-planning enabled him to recover quickly and be back in business within ten days. The reseach says that 80% never fully recovery from such a disaster.

 Where is your your recovery plan ? Contact us if you want some help in developing a business continuity plan.

Embracing Social Media will  grow your business. So, why do so few SME's have an effective web site or web based sales and marketing strategy?

 In the USA  over 70% of customers go online before making a decision. In Australia it is over 50%.

Does your sales strategy have a hole in the bottom ?

I suggest you contact Fergal Coleman at www.symphony3.com.au .

On Jan 24th we start a series of workshops to assist business owners on how to start  planning in advance in case they are hit by a natural disaster such as a flood, fire or storm.

We know that 80% of business never fully recover from a natural disaster and planning can greatly help in reducing the impact.

Funded by the Federal Government through Enterprise Connect there are eight workshops being held in Ballarat, Horsham, Mildura, Kerang, Colac, Dunkeld, Warrnambool and Bendigo.

Contact us at billwinter@bigond.com.au for further information

That's the headline in today's Financial Review. But I do not see such headlines for private companies.

My information is that there is major restructuring going on in the banks and Insurance companies across Australia. We also see adverse headlines for the major retailer groups and their plans to close stores.

Every month I meet with 24 business owners in two forums where we discuss issues impacting on business performance and there is no talk of redundancies from any of them. In fact they are having trouble finding staff to meet their business growth. There is a disconnect here somewhere.

It will be interetsing to see where these white collar employees end up in the future and its the older employees who are going to feel it most. People I know who are over fifty and made redundant are taking many months to find employment again. My advice to anyone working for a services company such as a bank or insurance company is to develop new skills. Don't be caught with a single skill set.

It is private business who will eventually employ most of those who lose their job in large companies. This should be an opportunity for private companies to find people who are looking for a challenge in their job.

A key issue for private companies is the ability to operate in a business environment that encourages employment.

There is no doubt that business owners are confused by what they read in the press regarding the current rumblings around the Fair Work Act. I have yet to come across a business owner who understands how the wage rates pertain to their industry or work place. In fact most are paying above award wages due to market pressures and hoping that have the right rates in place.  The place to start is to join a reputable Industry association such as the VACC or a group such as VECCI. Use the extensive services they offer to members.

The Federal Government, through Safe Work Australia, issued a draft code of practice on workplace bullying last year.

How many directors of private companies are aware of the contents of this draft and their liabilities and responsibilities under the Act ?  I suspect, hardly any.

There was an article on page seven in last Friday's Financial Review that pointed out the issues around this draft. The article quoted a survey of 5000 employees by employment company WorkPro that found 23 percent claimed to have been bullied in the past two years, and 68% worried whether their own bullying behaviour could be seen as bullying.

The question was posted who has duties in relation to workplace bullying ?

The answer:

• Everyone in the workplace
• A person condcuting a business or undertaking has the primary duty
• officers, such as company directors, must exercise due diligence

In my experience the culture within a business on this issue starts in the board room or in senior management meetings. What is often said in so-called humour filters down through the whole business and has negative effects throughout.

If you chose to ignore this, I guarantee that you will get caught out and pay a high price in the future. As an experienced director, I am aware of the need to be on top of this issue.

We all know that New Year resolutions never last. That's why gyms  love this time of the year when many join up and then fall away attendance very quickly.

If you own or lead a business and don't have a clear vision of where you want to be in the future or, if you don't know why you exist, its no good thinking a change in the way you operate your business based on a sudden brain wave because its a new year. This is stupid thinking.

If you want to get the business off to a good start and be more successful in 2012, then take a day off, gather your staff , engage an experienced facilitator and spend the day in robust discussion on all aspects of what you are doing.

Do all of your staff really know where you heading. If I asked them what is the future vision for your company , how many could actually paint a picture for me ?

The only promise I would make to myself if I were in your shoes as we start this year, is to do the above and win the hearts and minds of your employees. Without them on board you will find the future very frustrating.

 I read recently a quote that stated; There are two ways to influence human behaviour: you can manipulate it or you can inspire it.

Sadly, I come across too many in business who fail on the second point. 

For my wife and I, just like many of you, this is a time for being with family.

Enjoy the day, do things in moderation and put away any difference you may have with others.

Remember the true spirit of Christmas and don't forget there are others in our community who are less well off and see if you can give some joy to someone who might be on their own.

Our best wishes and keep safe. 

1. Did I meet my expectations for the first half of the financial year ?

Actual revenue against budget. Bottom line trading profit verses budget. Expenses verses budget. Understand where the variances are. Share the results with your employees

2. Have I adjusted and reviewed my second half objectives and plans ?

If you missed the first half mark then you need to forecast the likely result at the end of the year based on current running rate. Focus on your cash flow statement, if you are behind budget then develop strategies to keep on track.

3. What do I plan to do to improve my personal and business skills in the next six months ?

The successful operators I meet are the ones who apply a discipline of continiuos learning for themsleves and their employees. Those with the big ego believe they don't need to keep learning, they believe they know it all.

In the two business groups I chair each month, recent feedback has highlighted that we are all learning and improving our problem solving skills. Its the  sharing of ideas and experiences that adds the value to these groups.