Many believe that registering a business name gives them the unconditional right to use that name. This is not true and is unfortunately a trap that many business owners fall into and do not become aware of until it is too late.

Business name registration

If you are trading under anything other than your legal name then you are required to register your trading name with the ASIC. 

Examples:

Sole Trader - Bob Smith trading as ‘Bob’s Plumbing’. Bob would have to register’ Bob’s Plumbing’.

Company - Big Builders Pty Ltd trading as ‘The Big Building Shop’. Big Builders Pty Ltd would have to register ‘The Big Building Shop’.

Note that this does not give you the intellectual property rights to use the name. It is simply a mechanism for others including customers, suppliers and the government to identify the entity behind the business.

Recently business name registrations moved from a state based system to a national system which has made it much simpler to register a business name nationally.

Below is an extract from a legal update by Maddocks which explains the new national registration system and importantly issues around protecting your intellectual property.

Business Names and Brand Protection

June 2012

The move to a national system of business name registration provides a timely reminder for Australian businesses to take stock of their intellectual property assets. Maddocks lawyer, Alexandra Gilbert, and partner Brendan Coady take a closer look at brand protection in light of the new business names registration regime and outline some practical steps for organisations to protect their IP assets.

The aim of business name registration is to protect consumers by enabling them to identify the particular business or individual they are dealing with. The Business Names Registration Act 2011 (Cth) (Business Names Act) creates a statutory obligation to register a trading name, however, it does not provide rights in a name. Where a brand name is material to a business, it is important to consider other means of protecting it. Business names do not provide rights in a name. Businesses may need to consider trade mark protection for material brands.

New system

Previously, businesses were required to register their names in each state and territory in which they were trading. Under the new system which commenced 28 May 2012, businesses pay one fee to register business names nationally. Particularly for businesses that trade in multiple jurisdictions, this will mean a reduction in registration costs and administrative hassle. National registration is intended to cut red tape and reduce the administrative burden associated with maintaining multiple registrations for a single name.

Current registrations should automatically transfer to the new register. Now that the system has commenced, ASIC is proposing to merge identical business names registered to the same business into one registration. ASIC proposes to notify the holder of multiple business names of any amalgamation of those registrations, however it has said it will be possible to maintain multiple registrations.

For companies with an existing business name registration, the integration of state and territory business names may have resulted in another company holding a national registration for the same name. The names will now co-exist and a distinguishing mark will be attached to the names on the register. This means that where there were identical names registered in different jurisdictions, the new arrangements do not require existing businesses to bear the cost of reissuing branded stationary or signage by mandating a name change. Where the same name is registered to different business name holders, all names will have national effect from 28 May 2012. 

Are you operating under an unregistered trading name?

Under the Business Names Act, it is an offence for any person or company to carry on business under an unregistered business name. Unless an exception applies, trading names must be registered.  If a particular name is already registered, it will generally be unavailable. Further, it is the responsibility of the business to ensure their business name does not infringe the rights of trade mark owners in Australia. Checking for trade marks is an ongoing responsibility of businesses as new trade marks are used and applied for continuously.

Is your brand sufficiently protected?

Where a business is going to invest time and energy into developing a brand, having that brand name registered as a trade mark provides the highest form of protection. The Trade Marks Act1995 (Cth) confers protection on owners of registered trade marks against unauthorised use of trade marks which are associated with a particular category of goods or services. Business name registration will not provide protection over a material brand for a business. Where possible, businesses should have appropriate trade mark protection in place to protect key brands. Now would be a good time for businesses to consider an IP audit to consider whether their assets are appropriately protected. The new business name laws have not changed any of the existing law relating to trade marks or intellectual property in a name. Registration of a business name will not prevent someone using the name who has registered it as a trade mark.

What do you need to do:

• Promptly register any trading names which are used by your business.
• Develop a clear branding strategy and know the value of your brand.
• Conduct an IP audit, including:
• clearance searches to ensure you are not infringing someone else’s rights in a name;
• assessing the need to obtain trade mark protection for material brands and taking steps to do so where possible.

If you would like to discuss any of these issues further, please contact Alexandra Gilbert, Brendan Coady or any other member of the Maddocks ICT Team.

Our tech guru Ben is back in action with a blog on a neat application that could help teams better manage themselves. Find out about Ben and his team use Asana.

benjaminpaton:

It has been some weeks since I have written for this blog (more like months). I feel bad, as I had such big aspirations for this blog, but maybe it just highlights that blogging everyday, leading a global team, and living your life the way you should is not a sustainable exercise (if only blogging was my full-time job…).

Anyway, with that said. I am back. Despite my hiatus from writing, I have not been absent from the world of technology.

As I get up and running again, I wanted to keep things light, and touch on a couple of the things that have consumed my attention in the past couple of months.

I came across Asana from a recent New York Times article (http://www.nytimes.com/2012/05/21/technology/from-a-facebook-founder-a-social-network-for-the-office.html?pagewanted=all). 

Asana is the brainchild of former Facebook co-founder Dustin Moskovitz, and a team of successful technologists. The outcome as suggested by the @nytimes; a product of the billionaire and the big egos is a large scale web-based to-do application. Put simply, it is a tool for making digital lists of the things you (and others) have to do. This is not a new concept, task have been in Microsoft Outlook for years, that desolate tab below your calendar. Many of us have not even looked in their. Others have tried and failed, only to find 6 month old tasks the next time we mis-click the guilt riddled tasks tab.

Asana manages to do what Outlook cant, and that is create an engaging task management experience. Fluid task creation, simple assignment and logical management. This is to be expected. Where it goes to the next level is its ability to manage tasks across teams.  Maybe its most powerful feature is the encapsulated back and forth commenting for inpidual tasks, which was first seen in the smaller scale Orchestra (http://www.orchestra.com/).

I have been using the application now for 4 weeks to coordinate task for my global team. I have setup my team and created our current projects and tasks. Tasks are assigned to relevant team members and due dates set. My team and I are able to discuss each task directly in the application to ensure the requirements are understood. A tick to complete lets me know when tasks are complete (it even allows for file uploads for those times where the task is something like delivering a spreadsheet).

General feedback is good. I am pushing it, and the team are responding, but time will tell if the tool is as valuable to inpidual contributors as it is to the managers managing them.

Conceptually it helps trim down your inbox, as many of your task based conversations are held inside Asana, but unfortunately this is only a conceptual gain, as currently email is its only form of notification (feature request has been submitted, lets hope they heed the call for an in-app notification list). 

Asana is available using a Freemium model, offering an increased user base, advanced permissioning and priority support to paid users

The primary web app interface, is a pleasure to use, but the iPhone app and iPad “mobile” version leave a lot to be desired.

All in all its a good application, you can see them spin it their way in the video below

Asana are playing in a highly under represented niche, where I think the key will be ensuring the tool is either integrated enough to fit into people workflow, or functional enough to stand alone as a workflow killer. Time will tell.

Benjamin Paton
@benjaminpaton 

This article originally appeared on Dynamic Business.

EOFY: How to make year-end less taxing

The end of the tax year is nigh and small businesses across Australia are searching for missing receipts and tackling queries that have been stored up for the obligatory annual visit to the accountant.  

But it doesn’t need to be this way. A quiet revolution has been taking place in the tax world, with an increasing number of accountancy firms using new technologies to change the way they handle annual returns for their customers.

Mi-fi is one such example. A new breed of web-based accountants, instead of utilising the time-based billing model, users access the services they require for a fixed fee as often as they want.  What makes this possible is the smart way Mi-fi is using Zendesk, a cloud-based help desk service, to streamline communications so that it can offer the level of service promised, in a way that is also commercially viable.

Mi-fi co-founder, Campbell King explains, “Business owners shouldn’t be afraid of contacting their advisor for fear of being charged for it. In fact, we believe they should contact us whenever they need to, no matter how big or small the issue they may be facing. This way they can tackle it early and we can help them make better decisions.

When a customer sends an email it is captured in the Zendesk system and sent to the person dealing with that particular customer. Campbell explains,“With Zendesk, the conversations we’ve had with clients via email are easy to find and track, giving us the ability to search and organise customer enquiries for more accurate and timely responses.

“I think it’s well known that taxation and doing tax returns is becoming somewhat of a commodity, and something like Zendesk allows us to deal with clients in a more proactive way and add value that way,” Campbell said. “I think that accounting firms who don’t take this approach will be left behind.”

It’s not just accountancy firms who are changing their approach to year end. Many small businesses are starting to take a more proactive approach to how they manage their accounting. It’s this ‘hands-on’ approach which is driving Xero’s success.

An online accounting software solution, Xero enables small businesses to access the type of enterprise-class solutions in the cloud that up until now have been the preserve of much larger organisations.  As a result, small businesses can now access the vast array of functionality previously only found in large corporate environments, with minimal commitment and up-front cost.

Chris Ridd, managing director, Xero Australia, says, “Our customers are often business owners, busy people on the go, so having mobile or tablet access to their accounting system, from wherever they are is vital. Online accounting systems enable small businesses to gain a real time view of their finances and track their cash flow throughout the year, taking the time and financial burden away from the end of financial year.”

For small businesses wanting to make the most out of the cloud and their accounting systems and avoid tax time stress, Ridd has three top tips:

1.    Review your accounts regularly:

Keeping a regular check on bills, expenses, receipts and tax payments helps, avoid a mountain of finance paperwork at the end of the financial period.

2.    Know your accounting onions:

Ask your accountant to explain what reports mean.You’ll develop a deeper understanding of what is required at the end of the financial year as well as having a forecast to plan for what the future brings.

3.    Show your accountant your system:

Invite your accountant into your accounting system and they’ll have greater visibility of your accounts and daily cashflow position to help manage the business more effectively. This means less stress for you, especially when it comes to tax time.

It’s been in the wings for a while but payroll is now live in Xero. Having used Paycycle for some time ago it has been great to watch the ‘Xerofication’ of the Paycycle product and it’s final integration into Xero with the appearance of the ‘Payroll’ tab in Xero today.

Whilst Xero is by far the best accounting platform I have ever used, I have understood people’s apprehension to switch without an integrated and well designed payroll function. Well it’s finally here and is pretty damn slick!

For those who have been using ‘Paycycle’ to date you’ll know how easy it is and will appreciate the seamless posting of pay runs to your general ledger the integration brings (no more need to ‘export to Xero’). For those new to Xero Payroll here is a quick video run down of the key features.

For those new to payroll in general, setting it up in Xero is still a task that takes some knowledge of employing people and the various nuances this brings. Xero is an easy to use system and whilst payroll is a welcome new feature it is probably one of the more complex functions. Be sure to chat to your Xero Certified Advisors about setting up and using it. Of course if you don’t have one we’d be happy to help!

After some time in the making we are proud to launch our ‘What is mi-fi?’ video to the world. Find out in 80 seconds what mi-fi is all about and how we can help your business.

Spread it far and wide!

A few weeks ago we posted about Retention of Title clauses and how to use them to strengthen your claim against bad debtors. We hope you have had time to digest the information and review your businesses terms of trade.

The next step to ensure your business maintains its interest in goods sold on credit until they are paid is the newly enacted Personal Properties Securities Act 2009 ‘PPSA’. In a nutshell the PPSA requires parties to register their interest in goods that are sold on credit, leased or otherwise financed.

Thanks to Holding Reidlich Lawyers we have included a detailed overview of the PPSA below. If your business sells goods on credit you should read this to ensure you have registered your interests appropriately.

Personal Property Securities Reform Overview

With over 195 existing Acts and Regulations and over 70 registers throughout Australia currently dealing with the grant and registration of security over personal property, the introduction of the PPS Act is intended to harmonise the laws throughout Australia and provide one online database to register and search for security interests in personal property. Whilst real property (i.e. land) is excluded from the operation of the PPS Act, the PPS Act will need to be understood by project financiers in the property industry as it does have some application.

The complexity, confusion and uncertainty associated with the grant of security over personal property in Australia and ascertaining the existence of any security interest over personal property, is intended to be resolved by the commencement of the Personal Property Securities Act 2009 (Cth) (PPS Act).

The PPS Act will make fundamental changes to secured finance in Australia, particularly relating to those transactions not ordinarily thought of as security arrangements including retention of title, commercial consignments, transfer of accounts, bailment and finance lease agreements. These arrangements will now be required to be registered to protect and preserve the security in, and priority regarding, such security interests granted over personal property.

The PPS Act will create a single national law and a single national online register (being the PPS Register) for the registration of all security interests in personal property - replacing over 70 possible duplicitous registers throughout Australia including the ASIC company charge register, REVS for vehicles, Bills of Sale, Ships Mortgages and Crop Liens/Mortgages.

Whilst further legislation (including the regulations) is still to be drafted and passed, the commencement of the PPS Act is slated for May 2011. This publication provides an overview of the key concepts associated with the PPS reform.

What is the PPS Act about?

The PPS Act and associated legislation establishes largely uniform rules for[1]:

• creating valid and enforceable security interests;
• governing priority between competing interests;
• determining when a security interest will be enforceable on the Grantor’s (previously referred to as the chargor) insolvency;
• establishing the circumstances in which personal property is acquired free of a security interest; and
• enforcement of security interests.

What is personal property?

Personal property includes many different kinds of tangible and intangible property, but excludes real property (i.e. land), fixtures and certain specifically exempted property such as water rights. Personal property may include motor vehicles, machinery, office furniture, stock-in-trade, crops and livestock, commingled goods, contracts rights, licences (provided they are transferable), intellectual property and company shares. Under the PPS Act, personal property is referred to as collateral and can include both consumer property and commercial property.

Whilst real property (i.e. land) is excluded from the operation of the PPS Act, the PPS Act will need to be understood by project financiers in the property industry as it does have some application.

What is a security interest?

A security interest is an interest in personal property that secures payment or the performance of an obligation by a party[2]. A security interest can include what traditionally have been referred to as fixed and floating charges, as well as chattel mortgages, hire purchase and lease arrangements, conditional sale agreements, consignments, retention of title arrangements, transfer of an account and account receivables. It also includes a PPS Lease which is a new concept identified in the PPS Act being a lease or bailment of goods for a term of more than one year (or for an indefinite period or that is automatically renewable).

Attachment

The PPS Act introduces a concept of attachment which states that a security interest is not enforceable, whether against the Grantor or third parties, unless it is ‘attached’ to the collateral[3]. That is, attachment refers to the time at which collateral becomes the subject of a security interest.

Attachment occurs when:

• a Grantor has a transferable interest in the collateral or the power to transfer an interest in the collateral; and
• value is given by the Secured Party (or chargee) or, the Grantor does an act to create the security interest.

Some examples of attachment include:

• signing a security agreement over existing collateral (e.g. the signing of a charge instrument, chattel mortgage etc); and
• depositing share certificates with the Secured Party with the intention to create a security.

Perfection

After attachment, the security interest needs to be perfected. Perfection involves notifying the existence of the security interest to third parties and taking every available step to ensure that your security interest has priority over any interest another party may have in the same collateral.

The PPS Act provides for perfection to occur by way of either:

• the Secured Party having possession or control of the collateral;
• registration of the security interest in the collateral on the PPS Register; or
• temporary perfection as provided for under the PPS Act (being a transfer of all existing registered secured interests in personal property from the range of jurisdictional registers to the PPS Register) – such perfection will only be available for 24 months after the commencement of the PPS Act.

Importantly, the act of perfection provides additional protection to Secured Parties whereby their security interest will survive in the event of the insolvency of a Grantor. An unperfected security interest is void in an event of insolvency of the Grantor.

Accordingly, if a Secured Party does not perfect a security interest, another security interest may take priority or another person may acquire an interest in property free of a security interest.

Enforcement

The PPS Act does not derogate in any way from the various rights and remedies the parties may agree to in the terms and conditions of their various security agreements[4]. The general tenure of the enforcement provisions detailed in chapter 4 of the PPS Act are evidence of a consumer protection rationale with a number of the enforcement sections able to be contracted out of in respect of security interests over collateral that is not used predominately for personal, domestic or household purposes. Market practice may result in priority arrangements becoming more and more common with greater emphasis on the various enforcement rights of the Secured Parties having competing interests in the same collateral.

Extinguishment

The concept of extinguishment deals with the circumstances in which a person purchasing or leasing collateral can take it free of a security interest. Part 2.5 of the PPS Act deals with the rules of extinguishment which, in essence, replaces:

• the common law concept of a bona fide purchaser for value without notice; and
• a Grantor’s right to deal with floating asset charges.

Extinguishment or ‘taking free’ as it is commonly referred to, can occur:

• when a Secured Party has expressly or impliedly consented to a dealing;
• where there is an unperfected security interest and the transferee acquires an interest for value;
• in any dealings in the ordinary course of the Grantor’s business;
• where a transferee acquires serial numbered property and the serial number is incorrect or missing and a search of the PPS Register does not disclose any security interest; and
• a number of other circumstances as provided for in Part 2.5 of the PPS Act.

The concept of extinguishment requires the absence of actual, or in some cases, constructive knowledge that the dealing is a breach of a security agreement.

Priority Rules

In the absence of a priority agreement between a number of Secured Parties and the Grantor, the PPS Act provides a series of ‘default rules’ in respect of priority between competing security interests in the same collateral.

The following Security Interest 

Has priority over 

1. Perfected security interest
2. Unperfected security interest
3. Perfected by control
4. Perfected by other means
5. Perfected (first in time)
6. Perfected (later in time)
7. Unperfected (attached first)
8. Unperfected (attached later)

PMSI

One of the key reforms included in the PPS Act is the introduction of the concept of Purchase Money Security Interests or PMSI which expands the scope of security interests under the PPS Act. A PMSI can be obtained by a Secured Party when they enable the Grantor to acquire particular collateral. This may occur[5] :

• where a Secured Party provides for the collateral;
• where a person provides funds to acquire collateral;
• the interest of a lessor or bailor under a PPS Lease; or
• the interest of a consignor under a commercial consignment.

PMSI would include retention of title arrangements, hire purchase and lease finance arrangements, bailment agreements and transfers of accounts receivables (such as factoring arrangements). A fundamental characteristic of a PMSI is the degree of connection between the money borrowed and its use.

It is important to note that the process for registration of a PMSI is quite specific with very short periods of time available to register a PMSI to gain the ‘super priority’ granted to a PMSI over other perfected security interests.

The ‘super priority’ means that a PMSI has priority over a security interest (i.e. not a PMSI) acquired after or registered beforehand.

Impact of PPS Act on Fixed and Floating Charges

The commencement of the PPS Act sees the abandonment of the distinction between fixed and floating charges and the concept of crystallisation of a floating charge over property. Instead, a security interest will attach to the collateral in accordance with the terms of the security agreement and the Grantor will be able to deal with the collateral as provided for in that agreement and under the PPS Act.

We envisage that security agreements will take a similar form to that of fixed and floating charges, whereby the Grantor’s dealing with the collateral the subject of a security interest will be restricted upon the occurrence of a default event under the security arrangements. This arrangement is usually the case in fixed and floating charges common in the marketplace for property finance matters.

All charges currently registered on the ASIC register will be migrated to the PPS Register under the temporary perfection arrangements provided for in the PPS Act.

Key matters to be aware of regarding PPS Reform

Whilst some of the legislation and all of the regulations are yet to be finalised, we highlight the following key considerations:

• the PPS Act provides a fundamental change for title based security PMSI such as ROT arrangements, consignment, bailment, lease finance and assignment of accounts receivables which now need to be registered to protect and preserve priority;
• a Secured Party has the ability to register its security interest early (on the basis of having reasonable grounds) before attachment of the security interest to collateral;
• priority agreements will become more and more common between Secured Parties to clarify the extent of contracting out of the PPS Act enforcement provisions;
• failure of a Secured Party to perfect its security interest can detrimentally affect enforceability (particularly in an event of Grantor insolvency);
• the act of registration of security interests on the PPS Register requires very specific information and defective data entry can affect the enforceability of the security interests (specifically PMSI); and
• the information required to adequately complete the relevant documentation to register a security interest will have detailed identification requirements.

Source: Australian Government Attorney-General’s Department. Presentation Paper, Seminar Tuesday, 25 May 2010.

Section 12 Personal Properties Security Act 2009 (Cth).

See section 19 of the Personal Properties Securities Act 2009 (Cth).

Section 110 of the Personal Properties Securities Act 2009 (Cth);

Section 14 of the Personal Properties Securities Act 2009 (Cth).

If your business operates from a physical premise there is often the question of whether there are benefits in purchasing the premise or leasing. Ask yourself the question “What are my goals? Am I running a business or investing in property?”

In making investment decisions you need to consider your long term financial goals and investment strategy. If property is to play a part in this you need to make an assessment of the property market and research properties which represent the best value for your investment dollars.

The commercial property market is considered a riskier investment than residential property. Some areas to consider include:

• price
• capital growth
• rental yields
• future use
• flexibility in lease terms
• attracting the right tenants

If your business is to be the tenant, then you should focus on the question, “is this the best investment for me?”. Once the above has been considered, you can then factor in the tax benefits and other strategic benefits which may come from owning your own premise from which you operate.

If you are a new business that is yet to trade you should consider leasing. Leasing will allow you to preserve your usually scarce financial resources and provide you with working capital for unanticipated items. Once your business is established and cash flow is strong, you can consider investing in property.

You should discuss the lease agreement with your solicitor to ensure it provides for flexible terms of tenancy and potential purchase should the opportunity arise. When the time is right, mi-fi can address how the investment should be structured and funded.   We can assist in providing you with an appropriate level of asset protection and the most tax effective structure to suit your investment.

Every business has a unique situation so should you wish to discuss aspects of this article in relation to your specific circumstance please contact us.

benjaminpaton:

I was lucky enough to attend Yammer on Tour at The Westin Hotel in Sydney today.

For those of you unfamiliar with Yammer it is an Enterprise Social Network, which in the words of an audience member

“Yammer is Facebook for enterprise”

What this means is that Yammer aims to have business requirements at the heart of its service offering. So rather than emphasising walls, tagging photos and liking, it focuses on collaboration, sharing, and transparent communication.

Read More

Extending credit to customers is a common business activity and can create greater sales opportunities as you provide greater flexibility for your customers. However there is always the risk that a customer may not pay for goods you have supplied them. Therefore it is important to clearly identify when goods become the legal property of your customer - ideally when they have paid for them!

This is known as retention of title (“ROT”) and increases the legal case for you to be able to claim back goods that have been provided to a customer but not yet paid for, especially in the event of your customer becoming insolvent. By incorporating an ROT clause into your terms of trade you greatly strengthen your position. 

Compare the following examples of ROT clauses:

Example of a Valid Retention of Title Clause

The following is an example of an effective ROT clause. You may wish to insert this clause into your terms of trade:

The Company agrees, that until payment of all monies owing to the Supplier, the Goods

remain the property of the Supplier.

Until the Company has paid all the monies to the Supplier:

(a) the Goods are held by the Company as fiduciary bailee of the Supplier;

(b) the Company must store the Goods separately and so that they are readily identifiable as the property of the Supplier;

(c) the Company must not sell the Goods except with the prior written consent of the Supplier or in the ordinary course of the Company’s business; and

(d) Any proceeds of such re-sale, insofar as they relate to the Goods, shall be held on trust for the Supplier in a separate account.

Why is this an effective clause?

The clause above is an “all monies” clause which as discussed broadens the supplier’s scope for recovery. It also uses the terms fiduciary and bailee which may assist the supplier to establish that there is a fiduciary relationship and enable the tracing of sale proceeds.

It also requires the goods supplied to be stored separately which will enable the supplier tomore readily identify the goods if still in the possession of the Company. There is a requirement on the supplier to hold any proceeds of resale on trust in a separate account, which may enable the Supplier to recover any proceeds, particularly those received after notification to the Company or Insolvency Practitioner back from any resale. It can also be used as further evidence of the existence of a fiduciary relationship, which may give the supplier a right to trace in equity.

The clause entitles the Company to sell the goods in the ordinary course of business or with prior written consent which is realistic and reflects normal business practices.

Example of Ineffective Retention of Title

The following example does not allow the supplier to retain any title, in any form:

Seller retains a security interest in the Products delivered to the Buyer, and in their accessories, replacements, accessions, proceeds and Products, including accounts receivable to secure payment of all amounts due under this Agreement. If Buyer fails to pay any amount when due, Seller shall have the right to repossess and remove all or any part of the Collateral from Buyer but not from Buyer’s customers. Any repossession or removal shall be without prejudice to any other remedy of Seller hereunder, at law or in equity. Buyer agrees, from time to time, to take any act and execute and deliver any document reasonably requested by Seller to transfer, create, perfect, preserve, protect and enforce security interest.

Why is this an ineffective clause?

The clause does not retain title in the goods but instead seeks to create a security interest in the goods supplied and is therefore a charge.

In asserting an interest in the proceeds, the Seller is seeking to charge the proceeds and as such a charge is unregistered, it is void against an administrator or liquidator pursuant to section 266 of the Corporations Act 2001.

This clause provides no protection to the Supplier if the Company becomes insolvent (and the charge is not registered).

Reducing your risk

A retention of title clause is one way to reduce your exposure to bad debtors by increasing the opportunity to reclaim goods that have not been paid for. Unfortunately if your customer no longer has the goods in their possession then this strategy will not work. In the end appropriate due diligence into your customers ability to pay is the best way to mitigate this risk.

For more tips to strengthen your business processes speak to us today about how you can have a trusted accountant and advisor on call when you need them without the hourly charges.

benjaminpaton:

A website was once something that was limited to I.T. businesses, people who knew someone in I.T. or those with plenty of money in their marketing budget. Today if you don’t have an online presence, it’s as though you dont exist.

Business Web 1.0

In the early days, the businesses which stood out from the rest were the ones with a website (many of them just a logo and come contact information). Search engines were abundant, and their algorithms were not as advanced as they are today. Search Engine Optimisation was virtually non-existant, and if your website used Flash, you had it made.

Business Web 2.0

As the business world caught on, and accepted that the Internet was not a passing phase, the Internet flourished with websites. The differentiator became functionality. Online checkouts, virtual tours, users comments and reviews. No longer was it good enough to just have a website. Viewers expected fresh content, an experience and opinions. 

It’s not “what is your product”, its “what do people think of your product”

It was the websites which allowed the viewer to interact with the business and its customer which stood out from the rest.

Business Web Today

Today as the Internet knocks on the door of Web 3.0 (check out this video, although theoretically, I believe it best represents what Web 3.0 will be) the importance of an online presence for business is paramount. The proliferation of SEO techniques means that if you are not representing yourself online, then your competitors will be.

“If you don’t show up in my search, it is unlikely I am going to give you my business, If I can’t determine if your products are good or not, I will probably look somewhere else”

So often today, I see businesses without websites. I see marketing material with no callback, no ROI beyond the piece of paper it is printed on. The customer knows what you are doing today, but what about tomorrow?

Getting Online the Easy Way & Killing 2.0 Birds With One Stone

It is often the how and how much which prevents businesses from entering the digital realm. Here is a two step process for getting a presense which is will make visible, and Web 2.0 ready;

1. Register a domain for your business 

   This will cost you less than $10 a year for a .com address, or less than $130 for two years for a .com.au (here is somewhere to start)

2. Register on one of the following and point your domain at it, or if your serious register all three. They’re free so why not.

• Twitter Account (get started here)
• Facebook Page
• Tumblr Account

These social media websites firstly rank highly in search engines. Secondly they allow you to communicate your message and have people find it. Finally they allow you to connect and interact with your customers.

Case Study: St Frock Online Store

St Frock is a women’s clothing store in Pyrmont New South Wales, you can catch them on Facebook here, or on Twitter here.

I was made aware of this store after it made repeated appearances on my credit card. It turns out it had become a regular pit stop in my wife’s daily lunchtime routine.

At the time I don’t believe St Frock had a website (they do now). What they had was a Facebook page. When customer would visit their physical store, they would encourage them to Like their Facebook page.

Why does it work?

St Frock uses their Facebook page to post information about their products; what they have, what is on special, and what is new. They include lots of pictures, and encourage discussion. As a results customers are encouraged to come back to their physical store. 

As Pyrmont is a business hub, it works perfectly. Lots of people with 1 hour to kill each day. Just dying for someone to point them in the right direction.

If your business doesn’t have an online presence, you owe it to yourself to get one. The investment is minimal, and the benefit is massive.

Do you have a website for your business? How have you, or somebody you know leveraged social media for an online prescense?

Benjamin Paton
@benjaminpaton