The Pit - IMI Trust

You are seeing the world of business revolutionise right before your eyes!

Business is not about building databases anymore, it is now about building networks or communities. It is taking what is so powerful offline and utilising the technology available to create networks online.

It is no longer about selling your customers, it is about educating them and providing them with a platform to contribute to your business.. The more you educate and inform, the more loyalty you attract. It is about involving them in the community which you are developing, and allowing them to be active within it.

Advertising platforms allow marketers to target their customers, in ways which 10 years ago… were not even thought of. The way consumers think is now in terms of ‘keywords’. Companies like Google, take an approach to advertising which I have never seen before. That is… the better you are at targeting your customer, and the better you are at relating your text to your customers desires… the cheaper your advertising rates.

For business, sites like LinkedIn have gone from strength to strength. Facebook is now evolving at an amazing rate and astonished the business world when Microsoft invested US$240 into the company for a minor stake. This investment valued the company at US$15 Billion.

Google is on the verge of cracking $700 a share, and it’s aquisition of Youtube has proved wise, with it now being the platform of expression for the new generation. Politics has seen a rapid change, with a strong focus on capturing Youtube’s audience to promote their message.

Now we are seeing Australian politicians John Howard and Kevin Rudd go toe to toe, utilising Youtube and Myspace as their platform.

Promoting your business is now more complex and strategic than ever. Those companies that don’t advance with the changes, will be left behind by the companies that adopt the Web 2.0 and Social Networking models.

How are you utilising Web 2.0 and Social Networking in the growth of your business?

Recently, the population of NSW witnessed what has to be one of the poorest marketing pitches in history.

For all the brain power behind these campaigns, this is the best slogan the NSW Liberals could come up with.

Are you ready? Drum-roll please!!!! This is it…

“Don’t Vote Labor”

That was their campaign slogan. Here is my personal tip for the NSW Liberals…

‘Sack your entire marketing team.’

This slogan would be about as effective as the military recruitment campaign slogan being “Don’t think about bullets flying past your head and potentially being blown up.”

Here are some more reasons the NSW Liberals want to sack their marketing team tomorrow…

• “Don’t look down”
• “Don’t think of the colour blue”
• “Don’t think of a tree”
• “Don’t think of the TV”
• “Don’t think of Morris Iemma being re-elected”

Ever watched kids? Have you ever noticed how whenever you say “Dont do…”, they do it? As adults… we are not that different!

Yes, NSW Liberal Party. You GAVE the election campaign to the NSW Labor Government with your poor attempt at marketing.

Now obviously this is being targeted at a Government, but the truth is… I see businesses doing this every day. In fact, one company I spoke with recently were looking at a campaign which would have people mentally connect fraud and their company name.

So if there is anyone from the NSW Government reading this blog, here is my last tip for you, “Don’t think about hiring our company to consult to you on your next campaign. Don’t entertain the idea. Please… don’t think about the possibilities of hiring IMI Trust to assist you!”

Capital Raising, Venture Capital, Business Angels and Private Equity have become flavour of the month in Australia.

The reality is, for businesses looking to raise capital, it can become a nightmare for the unsuspecting owner. You always read about the successful ventures but rarely do you hear of about the challenges associated with raising capital for your business. For other business, who utilise business factoring services, it is their opportunity to utilise an alternative solution. 

When it comes to capital raising, most business owners believe they have 3 places to go: Banks, Angels and Venture Capitalists. Few people realise there is a 4th way to go if you want to raise between $250,000 and $5m (without a prospectus).

Below is a snapshot of some of the issues related to each.

Venture Capitalists
There is a reason they are called Vulture Capitalists. They generally look for small to mid size companies and traditionally Venture Capitalists will value your company on its current value (prior to growth following funding), and then look to take a stake based on that value. Some Venture Capitalists, will also look to play a role in the management of the business. It is a coin toss whether this becomes an asset or a liability.

This path is fraught with problems especially if you are looking to retain control of your business. With one business we worked with after funds were raised through a Venture Capitalist, personal attitudes and business differences surfaced and the owner was forced to leave the very organisation they started.

Business Angels
Business Angels could be ideal for your business if the Angel brings a wealth of experience, contact or resources to the table but again the problems you face with Venture Capitalist’s, you are likely to face with Business Angels. You lose control and possibly a lot more.

Banks -
Although the most common option for people, you should only really go to a bank if you a desperate. This is why…

1. Do you enjoy putting your own personal assets at risk?
2. Do you enjoy paying interest for the life of the loan?

Of course not. When raising capital the questions you want to be asking are…

1. What percentage of the company am I willing to offer? How are the shares going to be split up between the current owners and stakeholders.
2. Is your business structure investor friendly, as well as business owner friendly
3. If you are utilising the banks, are you willing to put your personal assets on the line
4. Do you want to retain control of your business, or are you happy for a 3rd party to have an influence?
5. Have you put in place a strong management team?
6. How unique is your offering, and what is your realistic potential for growth?

All of these questions are important, and you should definitely know the answers before you approach any organisation to assist you in funding the growth of your business.

These are the questions you need to answer when looking at the 4th way for you to Raise Capital for your business

This path offers some unique benefits…

1. The capital raised is interest free
2. Doesn’t require you to put your home up as security
3. Allows you to maintain the majority shareholding in your business… allowing you to retain control of the future direction of your company.
4. Allows you to crystalise the value of your business, which is recognised by the markets and considered as an asset on your balance sheet
5. Provides an investor-friendly environment allowing your investors the opportunity to sell their holding if they desire
6. Ensures that you are compliant with ASIC’s rules and regulations. Most people dont realise the legal mine field and potential issues if you try and do this yourself… and get it wrong. Let me provide some insight… a $20,000 fine, 5 years jail, the company wound up… and then it starts to get ugly from there.

Our focus is to help entrepreneurs realise the aspirations they have for their business!
What this means for you is that IMI Trust is able to facilitate debt and equity funding for your business growth, expansion and acquisitions.

To explore the commercial potential of raising capital for your business click here.

Da Vinci Code was one of the highest grossing movies of 2006 and it came from one of the best selling books in the last 30 years. However, this post is more to do with the man and than the Dan Brown legacy.

It is a quick guide as to what made Leonardo Da Vinci, a man that will be remembered throughout time.  He was always considered a great artist but few have ever viewed Da Vinci as a businessman… and yet he was exactly that.

Leonardo was a genius in many different ways. He was an inventor, an artist, an engineer, a scientist and a brilliant sales person.  The Mona Lisa is one of the most famous paintings on the planet and a priceless piece of art. There are so many things that could be written about Leonardo Da Vinci but we will focus on his incredible ability to sell and market himself.

To fund his work, Leonardo had to generate an income which would be able to pay for himself, his students and his side projects in which he would work on.

Da Vinci knew exactly where to go. He went to the “Warlords” of his era and propositioned them. His idea was simple ‘Go where the money is!’ Now you may ask… how does an artist get a gig with power hungry and ruthless “warlords”?

It is recorded that one of his employers killed his own brother, committed incest with his sister and would regularly poison his dinner guests. A meal to savour to say the least. This man was the most hated, feared and envied man of his time and known for his bloodthirsty mentality.

And beside him, working for him was one of histories greatest men. Imagine one of Adolf Hitlers artists being regarded, as one of the greatest that ever lived. This same man was that deluded, that he would hire historians to search his bloodline, to prove he was from the bloodline of the Gods.

Leonardo was smart… he knew what the “Warlords” valued and he gave it to them. Leonardo would not pitch them on his ability as a painter. No… He would pitch them on his ability to create War Weapons and then artwork which would appeal to their Vanity.

He was able to satisfy some very powerful motives! He was able to satisfy the desire for Power, Wealth, Social Status and through his art… vanity.

He also created for his employer one of the most powerful tools he could ever offer a war lord. It was absolutely revolutionary for his day. This tool came in the form of a detailed and exact “MAP”. This gave his employer vision and power… and for Leonardo… it gave him money!

He would play stage manager and conductor to some of the greatest parties of his era. He became renowned throughout the wealthy and powerful as the master orchestrator of parties.

He moved to Venice… a city of new money at the time and also a city in crisis.  Leonardo used this opportunity to sell his invention - the idea of an underwater army complete with armour. Yes… the first recording of the idea of scuba diving equipment.

He used his ideas and art to generate income, as well as to protect his own interests! This idea was far fetched, but studies today on some of his exact designs have been tried, tested and proved to be successful.

What was brilliant about this is that without his ability to promote his services, he would not have garnered the reputation he did. The interesting thing is that Leonardo was completely against war, but yet he designed some of the most brilliant war weapons. He designed the first tank. Something which was not first used until WWI.  Now this was not designed to be a motor powered tank, but a man powered tank! His design is ingenious! It wasn’t until World War I, that a tank would be designed and used in a war.

This work allowed him to fund his studies into nature and the human body! More then that, it allowed him to create art pieces. Whilst working for the Vatican during the day, Leonardo would be performing autopsy’s in the evening. One of his discoveries was that the aging process was linked to excessive nutrition of the blood.

This finding is what we know today as cholesterol.

The ability to promote your service is a powerful skill. The ability to market your services and products determines how your clients remember you. Sometimes… you need to sacrifice for the sake of your long term vision, exactly as Leonardo did. Leonardo always tried to make sure that everything he did, generated a uniqueness.

Even though he painted objects, scenes or portraits which had been done many times before… Leonardos unique touch would not be rushed, and would have him known by millions of people after his death.

So as business owners, how can we make what we do unique?
How can we have our clients remember us?
Do we create grand ideas and grand plans but in the background put together lots of small jobs to make it all work?
How can be satisfy the desires of our cleints through our business and through our website?
What are some of your ideas about how you build loyalty with your clients?

These are all modern issues and Leonardo Da Vinci had it figured nearly 500 years ago.   

The newspapers and investment magazines around Australia seems to be hooked on trading CFD’s (Contracts For Difference) on the ASX (Australian Stock Exchange). Actually, there is very little editorial coverage of the CFD ‘phenomenon’. Most of the ink is on advertising the platforms on which to trade this relatively new instrument.

An analyst on CNBC claimed that approximately 50% of trades on the London Stock Exchange are CFD trades now dwarfing all the other instruments in the multi-billion dollar derivatives market. Australian investors are trading just a fraction of that number but the figures are anticipated to explode over the coming months.

Because of this, many players are scrambling for market position. How do you get ahead when there are so many people vying for market share?

We have recently been engaged by The Sharemarket College to assist marketing the SMC Trader online trading platform. One of the challenges we have is competing in a very competitive market.

A few months ago at the Melbourne Traders Expo there are booths 3×3 in size with companies all attempting to sign you up. As an investor how do you choose which CFD provider to go for?

The Sharemarket College is fortunate enough to have a brilliant product that offers investors state-of-the-art tools to facilitate their investment. In addition, they have over a decade worth of testimonials from their clients that have been through their investment education courses. But how else can you appeal to the average investor?

Do you look at the advertisements in Personal Investor, AFR Smart Investor and Intelligent Investor and think ‘That deal looks good, where do I sign up’? Do you read the ‘advertorials’ in Wealth Creator Magazine or Your Trading Edge and think they contain the right information to make an informed buying decision. Do you ask the man standing in the middle of the Sydney Investment Expo wearing an ‘I Hate CMC Markets’ T-shirt what his opinion on who’s the best CFD provider? I don’t think he will be trading CFD’s with CMC.

As an investor, the choice can be difficult. As a CFD provider trying to claim ‘that’ investor, the road is even more treacherous.

IG Markets, judging by their front-page advertisement on the Australian Financial Review, are offering a good deal. Low commissions on trading they advertise. Low commissions sound good but you’ll find that the discounted rates only apply if certain trading criteria are met. They are making a cut somewhere that’s for sure. They have to. That one advertisement would have cost around $15,000.

There are a dozen other entities all trying to earn your dollar and most show great examples of how NOT to go about your marketing. If you ever want to see poor marketing in action, you will commonly find these two elements.

1. Reduce trading commissions.
2. Throw amazing amounts of money at blanket marketing which offers no real benefits, but mentions your discount trading.

Sounds similar to the IG Markets marketing plan. Effective? Probably. But it may not be as efficient as it should be.

Other domestic players like Macquarie, Sonray Capital Markets and Tricom use a more corporate model. Day trading, online trading, full service brokerage and whitelabelling and referral plans. This is in own right is effective and profitable but they want a slice of the ‘mum-and-dad’ pie too.

The CFD trading revolution has fully hit Australia. Funnily enough, the centre of global trading, the US, doesn’t allow its citizens to trade CFD’s. The rest of the world can trade CFD’s on the New York Stock Exchange and Nasdaq with no problems.

And we will… The Online Trading industry in Australia is going to massively expand over the next few years. CFD’s are going to play a major role in that expansion and we look forward to enjoying the ride.

We’ll be working on promoting the SMC Trader until the end of 2007 so we’ll definitely give you updates on how it goes. If Commsec and ETrade, start issuing statements that they’re numbers are falling then assume we are doing well.
That should happen anyway as both are really limited in both functionality and product offerings. It’s true.

To view the SMC Trader go to http://www.smctrader.com  and to view the SMC Cafe, where traders meet, go to http://cafe.smctrader.net  

Job applicants that want a job where they can ‘travel’ can send their applications right here.  What a 10 days.

• Gold Coast (our hub) to Brisbane, then back to base
• Gold Coast to Sydney
• Sydney up to Cairns via Gold Coast
• Cairns back to the Gold Coast (for a change of clothing)
• Then, finally, Gold Coast to Melbourne and back 

I really must learn the art of appointment booking. This also explains the lack of blogging recently.  Sorry.

Please Note That Trips Were Longer Than 5cms In Real Life 

Brisbane
We met with clients to discuss processes they need to implement to streamline their services and become more efficient.   Their processes were too ‘key person’ specific.

Technology allows businesses to provide consistency. Relying solely on humans for the support of your clients can cause serious problems.  Do not remove the human element completely but support your staff by underpinning their role with strong systems.

The reason.  The potential impact of losing just ONE client is:

• You can lose the upfront profit a sale will generate
• You can lose any ongoing trails or commissions that sale will generate
• You can lose any referrals that client can provide
• You can lose the sales, trails & commissions from those referrals and their referrals
• You lose the potential to upsell any new products
• That ONE unhappy client will tell lots of other people and ruin your reputation amongst their peers

Can it be emphasized enough the amount of loss suffered from weaknesses in company processes? 

Sydney
The point regarding loss of reputation leads me nicely onto the next stop of the trip, Sydney for the “Banking & Financial Services Reputation Management Summit”. Hosted by Frocomm Australia, the event was focused around “Trust and the Impact on Reputation”. 

One of the speakers at the event was John Brogden, CEO of Manchester Unity and former Opposition leader in NSW.

This event confirmed for the direction we’ve been taking with our clients. Building trust & loyalty through community & support and communicating this clearly.

John Brogden was so accurate when he said the key to retaining clients is developing loyalty through service and information as the public can access your competition in seconds online.

In line with our philosophy, he noted that the power of the internet in developing their business.  When he started with Manchester Unity, he was of the belief that the internet would provide a lower quality, less loyal client base. What he has found is precisely the opposite.

His reasoning was the client who purchase online have developed a lot stronger product knowledge before making their decision. Exactly the way we have been working with our clients.

The line-up of speakers was second to none and a thank you must be extended to Glen Frost at Frocomm for organizing the event and Mark Hollands from Factiva for being a superb MC.  Also I won an iPod mini for my troubles.  Bonus!

Cairns
The trip to Cairns ended up being like a weekend away. I would have to say thank you to the Shangri-la Hotel for the fantastic stay. Cocktails and Wedges (not in the same glass) by the pool topped a perfect weekend.

Another One Of Those Texas Planes Landing

Melbourne
The road trip ended with Melbourne, which included a meeting with one of the big four banks to improve their marketing and distribution. It is amazing how the largest organisations in Australia can be ‘old school’ in their marketing approach. Get on the phones, sell, sell hard and quickly. We offered a few solutions and soon we’ll see if we’re allowed on board.  The signs so far are good.

The road trip was a great success, next time though I need to allow more time for sleep.

Google is everywhere… but how can you use them to grow your business?

That is the question most businesses are asking, and they are investing tens of thousands of dollars to do it!

Some organisations our company has dealt with, have a team of people dealing with Search Engine Optimisation alone.

Do you know that the way your website is built determines how easy it is for Google to find you? Commonly, the prettier and flashier the website… the harder it is for any search engine to find you.

Here is a little test for you… go to www.google.com and search for “Untitled.”

There are 175,000,000 listings for the word “untitled!” Do you think that is because that is the main heading people wanted to have listed?

No… it is because they dealt with Web Development companies that did not understand the importance of listing titles of website pages and images.

The money companies spend trying to outsmart the search engine giant is more often then not wasted! Google are very confidential about the algorithms behind their search engine spiders, and to make it even harder… they are consistently changing them.

So what is the best solution to make your website google friendly? Deal with a web development company that knows how to structure your website, your web pages and all elements of your website to be Google friendly. Listen to their advice about the content you should have on your website.

Most people build a website thinking they know what their clients are looking for, but never properly researching it. The try to open themselves up to the entire universe, instead of targeting their sites to the clients they desire. I will give you a gentle clue - When building your website, chose your words very carefully!

If they don’t know… then find an organisation that does. Google is like a gate that comes with it’s own padlock. Except with this padlock, the more combinations you get right, the more the gate opens for you… allowing more and more traffic to filter.

If you are off the mark on your combinations, your website will not be getting the traffic it deserves. There is only one company on the planet that can get all the combinations right… and that is google.

IMI Trust devised a step by step system for us to follow when we are developing a site, specifically to assist google in recognising our clients sites. We also let our clients know exactly what they can do, to develop upon the foundations we have integrated in the web development phase.

After you have structured your site correctly, the next step is to evolve to the world of Google Adwords. I will save this content for another post, but feel free to contact our team if you want any assistance with your site.

Honestly… Apple are brilliant!  I say this as a previous Apple hater.  I am now a convert.  Apple’s products and their marketing of them is pure genius.  Though, that is a Guinness slogan but it applies perfectly well here.

Who else could hold a conference call, to talk about their future product development and tell their biggest competitor to “Get out your photocopiers!” I thought it was brilliant how they highlighted that their major competitor is continuously delaying their release of their next Operating System version.  

In the last 5 years, Apple has re-invented the way we listen to music and even the way we buy music. Never again do we have to carry around gloveboxes full of CD’s, or purchase mammoth CD cases to house a collection.

The Ipod has been, and continues to be, an amazing profit centre for Apple. What I love about the iPod, is that it is everywhere and even when you dont realise it… it is being promoted to you.
Think about these points…

* If you see someone on a train or street with a white cord and white ear phones, what are they listening to their music on?
* When you are getting onto a plane… they ask you to turn off your MP3 player or your iPod
* When the plane is going to land, what are they telling you to switch off again?
* If you like todays music, what is the only MP3 player they will show in music videos?
* Even popular TV programmes like The Simpsons are parodying it with its famous DiePod eutanasia experience.

What is amazing is that, every day on most plane flights around the world, in multiples of languages, airlines are marketing the iPod and they don’t even know it. The other thing you have to love about the IPod, is find me 1 person on this planet that has… and has not purchased any more accessories. By the time you get the belt, the microphone, the speakers, the additional case etc. It is almost a 25%to 50% on the original sale.

Household Items Now Include Apple Products

iTunes, responsible for changing the way we purchase music. Over 1 Billion songs have been downloaded! That is insane if you consider the enormity of it. The best part is… people are chosing to pay the US$0.99, instead of downloading it for free. How rare is that? You have the choice of Free vs Paid, and people are chosing to pay.

Being in the finance industry, all we seem to care about is the latest earning announcements and or the potential future earnings. It saddens me that sometimes we miss the genius behind the growth of these companies, and how they evolve their success. When Apple announced they were going to be using Intel chips in their computers, their share price skyrocketed. Thankfully for me… I was on it! The true merging for Mac users being able to use all the software the PC users could, was coming closer.  

Now the whole world is convinced of Apple. From consumers, to Mum and dad investors, to retails shops and the institutions. The hype of Apple is backed up with brilliant products, which keep evolving the digital world. 2 Years ago, I did not know anyone that owned a Mac computer. Now, I feel like I am one of the few that don’t.

That is an amazing turn around! Web Designers are now having to design their sites with Apple in mind! Even though the savvy designers use an Apple to do their design in the first place.  The web designers that do are the ones that are getting the financial rewards for their clients. It is that extra business, the extra profit, the extra sales that are making companies take notice. Trading platforms which don’t have Mac capability, are losing business every day!  

Over the next few years, it will be great to see how Apple keeps growing. One of my Mac owner friends, recently commented to me, how his whole digital world now revolves around Apple products. From Music, to Photos, to Videos, to Radio and for people who are blind… Apple has them catered for too. Apple has me convinced! Check out their new Operating System being released… Leopard

I am quite confident my next laptop or desktop will have an Apple logo on it.  Financial groups tend to use PC based technology though.  Are there any groups out there that use Apple? 

All the best,  

From The Pit