Is the 206 billion deficit the core issue in our Australian elections?

My politics are "agnostic" - I think the political system and policies of Labor and Liberal are both good.... however I am not cool with lies and deceit!

The Australian's article this morning ht a chord with me

The $250bn cost of Kevin Rudd: a tale of waste and spending - HENRY ERGAS AND JUDITH SLOAN  the Australian 

"THE era of Kevin, interrupted by the Julia interlude, has been a roller-coaster ride. Having promised fiscal conservatism, the excuse of the global financial crisis unleashed a period of rapid growth in government spending, successive budget deficits and mounting public debt under Kevin Rudd's guidance.

Now, with Rudd's return, Labor has launched a charm offensive that seeks to whitewash the past: it is as if aliens from Mars, fortunately departed, had been in charge. But the damage of that era cannot be wiped out so easily.

Will the electorate forget Rudd's past as he seems to have done?"

... so here it goes!!

Before Australia can continue to go forward economically, we need to identify what the problem is before we can fix it...

What is that problem?

Is it Bad fiscal management?

"The Commonwealth's balance sheet has shifted from $44.8bn in net assets when Rudd took office to $161.6bn in net debt this year..... a $206b turnaround!

a shift from a budget cash surplus, averaging 0.9 per cent of gross domestic product during the Howard years to a cash deficit that exceeded 4 per cent of GDP in 2010. "

This in itself might not be a bad thing.....has the money been used for good purpose. It is interesting to provide a score of 1 - 10 on the following questions (KPI's)

• Has that debt resulted in an increased asset base for our country, that will lead us to sustainable growth for the future?
• Stave off the negative effects of a worldwide GFC
• Are the people happier, better off, worse off?
• Has our infrastructure improved?
• Roads, trains, bridges, education, healthcare, security, leisure time, etc?
• Sustained benefit for the community - such as healthcare, edcation , security
• If they spent to facilitate commercial enterprise and SMEs
• export, 
• r and d, 
• innovation,
•  infrastructure, 
• workplace education, 
• leadership programmes, 

If the blowout was to support something that is beneficial for the shareholders (the people) that generates revenue and sustained benefit instead of trying to kill business, they would have lots of revenue and could spend what they have.

But they seem to  just keep going back for another piece of the beheaded Golden Goose and seem to spend it on unsustainable 

 Joe Hockey's comment  "We don't have a Revenue problem, we have a spending problem." should be finished by .... "on things that are not sustainable or beneficial to the public!"

The past decade from mining has resulted in a massive revenue windfall. 

Increase demand of resources to china and India and massive increase in the price of steele ($30 to $130 per tonne).

What are the things we can do to make this revenue sustainable?

What did we do with this revenue? 

Did we spend it on infrastructure that would increase productivity?

 Or

Did we blow it all on tax cuts and subsidies to inefficient private services, wasteful programmes (batts, school rorts) ,public bureaucracy (increased politician wages), badly managed programmes (blowout of NBN)

What if we took  the wasteful spending out of the picture... Imagine it was never spent...however, continue to support stimulus in a sustained way.....where do you figure the budget would have been today?

Surplus or Deficit

2. Is it Bad Leadership - 

The government needs to be responsible governors and leaders

Living within your means shouldnt just apply to consumers and business... It should apply to government!

Spending capital and debt is a good thing, which can create wealth for individuals, corporates and countries.

however

The debt has to be good debt!

Debt that is used for sustained growth and benefit for the future of the country.

But they just keep going back for another slice of the beheaded Golden Goose !!

It's ok to spend from capital or debt, as long as their is a reason or a plan that this spend will ensure growth and sustained surplus where more money will come in than go out!

Core values

If management

• stuff up
• lie
• don't perform

they need to be held accountable and  fired..... I have never seen a CEO that has been fired for incompetency bad management and bad leadership be returned by the board!

It seems ok to the Electorate (the shareholders) for our leaders to lie and cheat and backstab.... Just because "that's what politicians do"

This is an inditement to ourselves, the people!!  The shareholders should call a meeting to replace the board  and the returned CEO!

HERE'S THE THING!!!

Shit happens, budgets blow out, business turns around, ventures fail.... That's OK, and can be rocks that seem to be in the way, that can act as stepping stones later on! (thanks Paul :))

But if the core values and ethos is where lies and deceit and mismanagement is OK, the end of prosperity is near .....

And that is what the real issue is!

The credibility of this government is questionable. They do not have the moral authority to remain in government, nor can we vote them in based on competent leadership and governance....

Whether it was a Liberal or a Labor government.... My comment above would be the same!

THE OPPORTUNITY

Australia has the opportunity to be the shining light to the world.

We have it all

Resources, Beauty, Peace, Multiculturism, Racial and Religious tolerance,, Good people, Free press, Great Climate, Good Education, Innovative People, Strong International Relationships and a strong Moral Compass

(Just remember Kevin, we were all immigrants, many of us refugees)

Let’s use these assets to build an awesome nation with a sustainable future for ourselves, our children and our future generations...,

Let’s leave our kids an amazing legacy....

We need great leadership based on core values of truth not lies!

Ark Informer January 13

Welcome to the first Ark Informer of 2013. The Ark Team are holding a really useful 30 minute webinar on the "top 5 Wealth Tips for 2013" on Wed 23rd Jan @ 6pm and Thurs 24th Jan @ 12:30pm. See below for more details. (Click on dates to register). Join Me on LinkedIn  http://au.linkedin.com/in/ivankayebsi ( I have over 3,500 contacts that I would gladly connect you with!)

January 2013 - A Webinar to kickstart 2013 Welcome to the first of our education webinars for 2013. In this webinar we unveil 5 effective strategies to help you manage and build your wealth in 2013.  In 30 minutes, we will cover the following; 1. Simple tips to help reduce your individual tax 2. A review of Home Loan Structures and a look at what interest rate you should be paying 3. An analysis of where you should invest your super and a look at some of the best funds from 2012 4. Where to put your excess savings? Looking at alternatives to cash.  5. How to organise and manage your finances easily These top 5 tips sound very generic and simple... and they are. They are not designed to be high risk or complex but to help you along your wealth journey.  At the end of the webinar, all participants will receive a copy of our new e-book 'Wealth Planning for Young Accumulators'.  If you can't make the allocated times, just 'click for an advisor' on the right and we can send you the relevant information. Regards, The ARK Total Wealth Team  www.arktotalwealth.com.au | info@arktotalwealth.com.au Webinars Top 5 Wealth tips for 2013 Wed 23rd Jan @ 6pm Thurs 24th Jan @ 12:30pm Duration: 30mins

FOUR TOP TIPS FOR DOING BUSINESS IN CHINA

You will start doing business with a Chinese Company, when there is a trusted relationship such that they would be prepared to invite you to their daughter's wedding. This takes time, commitment, trust and an ability to communicate and connect!

First business meetings are crucial .  If you muck them up, you won’t get any further.

This is a lesson my friend Rohini Kapur understands, who is on the mission with Vanessa Xing's colleague  David Thomas and 600 other delegates, on Australia’s largest-ever trade mission to China this week.(good on you Vic Government - leading Innovation in Australia!!) They’re about to meet a whole lot of people in a very short period of time. and need to make a good impression!!

What should one look to get out of a first meeting? 

Start to develop a relationship... You actually have to spend time developing trust . Show that you are genuinely interested in their country, their business and their family - do not simply see your business as a transaction?

Do not expect to do a deal after your first meeting!!!

here are four tips to get started

1. PREPARE YOUR PITCH PROPERLY

Your counterpart is likely to give you a beautifully presented bilingual document detailing their company, city or industry. Do the same!! . The worst you can do is offer shoddy documentation with no Chinese translation, says Sydney-based consultant David Thomas.

2. GIVE OUT YOUR BUSINESS CARDS PROPERLY. RECEIVE THEM EQUALLY SERIOUSLY

• The exchange of cards is taken very seriously in Asia. 
• Double sided cards work well (one language each side). 
• Make sure you have the right Chinese character set for your destination. Hand over cards with two hands.
• Receive them the same way.  
• Hold onto the card while you speak, or put it down on the table in front of you. 

Don’t stick it in a pocket.

3. TALK LITTLE AND LISTEN A LOT

Western business people often start pitching themselves or their products without knowing sufficiently what the other side wants.

“In China, this can come across as arrogant, discourteous and even rude and, whilst it may not be apparent at the time, its likely to cut things off before they’ve even got started!” Thomas says.

4. USE A PROFESSIONAL TRANSLATOR WHO UNDERSTANDS THE CONTEXT OF YOUR ROLE AND YOUR BUSINESS

When addressing audiences or customers, it is critical that you get the correct message across. The quality of your message depends on the interpreters you have entrusted to translate it. 

A brilliant person to have on your team is my friend Vanessa Xing. She is superb, and comes highly recommended!!

None of these tips guarantee you the end goal of a wedding invitation – or business. But they’re important first steps. A long-term relationship ultimately requires people to invest part of themselves in it – something that not everyone can do.

Sustaining any relationship in business takes time and commitment. But if you don’t hold your business cards the right way, you’re unlikely to even make it a possibility!!

10 mistakes investors make in Africa, and how to avoid them

Abel Myburgh, Africa Desk Coordinator for BDO

Thu, 12 Apr 2012 11:59


Every year, African governments and big companies issue lucrative international tenders for major projects. Abel Myburgh, Africa Desk Coordinator for auditing firm BDO, offers advice on what companies should consider before and after winning that coveted tender.


Lack of knowledge and planning

Many investors regard the African continent as a single business regime and ignore the fact that there are over 55 countries, which include the surrounding islands. Each nation has its own rules and regulations. Some regions have tried to introduce uniform regulations but on the ground, the applications are different. We have experienced instances where companies tender and win contracts in Africa, only to realise that conducting business is difficult than they expected. We recommend that you start planning early - before the tender documents are filed. There are issues that can influence pricing, deliverability of the terms of the contract, and extracting profits from the specific country.

Lack of knowledge of the business culture in the host country

It is not unusual to find total disrespect for local culture. To avoid this, an in-depth study of the business norms and culture of the specific country should be undertaken. A lot of problems and misunderstandings can be avoided if a new entrant understands the perceptions and actions of their partners in Africa. The language barrier also forms part of this problem - it is important to acknowledge that English is not always the only or the main business language.

Unrealistic expectations

This is one of the most common mistakes made by new investors, and it can have a major impact on operations. The World Bank’s ‘ Doing Business’ guide can be used as an indicator, but country-specific information on regulations and business environment must be obtained in order to be informed on the exact procedures to follow.

Type of business entity to set up

Many companies may be under the impression that they can just begin operating in a country. However, the reality is that in most countries it is mandatory to register an entity. Another important consideration is the duration of the operation as some countries apply Permanent Establishment (PE) regime, which can result to a company paying tax locally on its worldwide profits.

Minimum share capital

Companies need to take into account any statutory minimum share capital requirements, which can vary from US$500 to US$1 000 000.

Local participation

In many countries, it is mandatory to introduce local shareholders and directors to a newly established company. A company then has to source indigenous shareholders, and the risks are numerous here. Proper planning is crucial in order to find reputable local shareholders or to opt for a different entity, for instance, a company branch.

Foreign exchange regulations

BDO has found that a number of companies stumble over this specific hurdle in that they cannot repatriate all of their profits and investments during or after the project has come to an end.

Direct and indirect taxation

Taxation is one of the biggest cost factors that companies have to take into account when operating in Africa. Many African countries have some of the highest tax rates in the world and in some cases, very aggressive tax authorities. Therefore, companies must do their homework when it comes to indirect taxes particularly import duties.

Taxation of employees

This is often a major area of concern, which tendering companies must plan for. Foreign employees’ presence in a country beyond 183 days will most likely trigger residency tax issues.

Work permits

It is important for a company to understand the latest requirements and regulations concerning foreign workers. BDO has encountered occasions where foreign employees have unknowingly operated in a country illegally due to obtaining incorrect visas.
What foreign investors look for in potential partners in AfricaFor African companies looking for foreign equity partners or financing, there are six key points to remember: western investors value time, honesty, direct communication, competition, planning and action - and they look for entrepreneurs who can execute ideas.

According to US-based investment consulting firm, RENEW LLC, this checklist will provide African companies with invaluable advice on how to deal with foreign investors.

10 points to think about when presenting to a VC

Having raised more than $300 million in numerous financings, and listened and reveiwed in excess of 600 pitches, I have found that there are 3 things that will get a VC  to meet with you.

• an idea
• top people. passionate and ability to work together 
• a big market for the product and service.

 In your presentation, make sure these each get a slide.

Your presentation goal is to get a second meeting - not to get the money at that meeting!!-  give them an overview on the investment opportunity and show how you will make money for them.

1. Do your homework:

ensure that the VC is interested in your space and is prepared to invest the money needed... Often VCs are only inteested in investing 10m + , it is a waste of time presenting a pitch asking for $1m.

2.Ten slides: limit the number of slides in your venture capital presentation to ten. - a normal human being cannot comprehend more than ten concepts in a meeting—and venture capitalists are very normal.
If you must use more than ten slides to explain your business, you probably don’t have a business.

The ten topics that a venture capitalist cares about are:

1.The problem you are solving and industry context

2.Your solution

3.Business model

4.Underlying magic/technology

5.Marketing and sales

6.Competition

7.Team

8.Projections and milestones

9.Status and timeline

10.Summary and call to action

3.Less is more on slide content: Each slide should contain one, clear point

 
4.Start with the big picture: Avoid being bogged down in details at the beginning of your venture capital presentation. Start with the industry trends and why your idea will fit well with the indsutry and where it is going.

5.KISS – Keep it simple —- no jargon or technical terminology that might not be clear to your entire audience

6.Use graphics: A picture is worth a thousand words. Graphics are especially important in conveying new ideas and concepts - make them clear and relevant

7.Readable font size: dont read your slides and make the font big...


8.20 Minutes – spare them the details: it is a venture capital presentation, not a white paper! In a perfect world, you give your pitch in twenty minutes, and you have forty minutes left for discussion.

9.Clear financial model – Have a clear financial model that shows how your business makes money

10.Use “bottom line” conclusions on your slides the venture capital presentation should focus on your bottom line only.




 Remember some of the ideas above using the 10/20/30 rule of a PowerPoint presentation. It’s simple to remember: a PowerPoint presentation should have ten slides, last no more than twenty minutes, and contain no font smaller than thirty points.

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The global growth through a burgeoning Asian middle class can bring in a new era of growth, wealth and prosperity

Salient Points

• Shifting Wealth’ from West to East over next 25 Years
• Middle Class spurs growth and Innovation a nd there is a huge swell of Middle Class in China, Asia and India (growth from 1.8b spending $21trillion to 4.6b spending 56trillion
• Annual output to grow from 63 trillion per annum to 200 trillion per annum in 25 years
• The growth does not depend on a rebound in US or European consumer demand, but depends on the inevitable demand from a new large, growing  Asian middle class, that is  of  sufficient  size  to provide the impetus for demand growth that the world needs.

read more

EMDG Shortfall for 2010 - worse expected for 2011

The Government in the budget have reduced the budget allocation to support the Exporters EMDG programme.

The EMDG budget for next year is $150 million (down from $200m) .

2009 EMDG Claimants can expect 60% of their entitlements with a lot less expected in 2011.

This is a disaster for SME Businesses....

There is a chance if SME's lobby that the Government will continue to support the SME's who are focussed on Exporting their Australian Goods and Services.

Australian Government support for export businesses

By Export Finance and Insurance Corporation (EFIC)

Any first foray into exports can seem daunting. One must set about preparing an export business plan, developing a marketing strategy, organising logistics and securing finance. While government support can be a key to export success, navigating through the myriad of government programs can be a challenge on its own.

The Australian Government’s three key export agencies, AusIndustry, Austrade and Export Finance and Insurance Corporation (EFIC) , offer valuable support, whether a business is new to the export game, building on early successes or an established global player.

AusIndustry, the Australian Government’s agency for supporting business innovation, can help on the export journey.

BSI assists companies identify which programmes are best for them and assists in maximising these grants.

If a company is in the early stages of growth, or a separate company has been set up to commercialise research, you could be eligible for financial assistance and business advice under AusIndustry’s Commercialising Emerging Technologies (COMET) program.

Another AusIndustry scheme, Tradex, can provide up-front exemption from customs duty and GST on eligible imported goods that are intended for export.

Austrade, the Australian Government’s trade and investment promotion agency, has programs designed to assist in developing the skills and knowledge to find and maximise export opportunities.

An Austrade Export Adviser can help determine the best way to obtain market research, link the company up with international partners, provide on-the-ground support when it is time to visit potential buyers and help develop a risk management plan.

Once an overseas market has been identified, an effective export marketing strategy is essential. Austrade can advise a business on how best to market its product or service internationally.

Austrade’s Export Market Development Grants (EMDG) scheme encourages the growth of export markets by reimbursing up to 50% of expenses incurred on eligible export promotion or marketing activities above a threshold amount.

It’s also a good idea to talk to a bank at an early stage about the finance to support export plans. If the bank can’t provide all the necessary support, contact EFIC. As the Australian Government’s export credit agency, EFIC provides finance and insurance solutions to help Australian exporters overcome the financial barriers when growing their businesses overseas.

EFIC helps successful businesses to win, finance and protect export trade or overseas investments. Working directly with exporters or with their banks, EFIC provides loans, guarantees, bonds and insurance products which can be tailored to the needs of both large and small exporters.
16/09/2009 12:00 AM

for more information join the bsi network

Ivan Kaye interviewing Harvey Gartrell on EMDG

Ivan Kaye interviewing EMDG Expert Harvey Gartrell on Export Incentives.
For more information see www.bsi.com.au