Thursday, 6 October 2016

Nine Ways to Become a Better Investor

Everyone would like to become a better investor. People get into a twist trying this method and that only to abandon them for the next new thing. There's an easier way, and it involves following a few simple suggestions.

Stop watching the market and start your watching stocks

Just because the market is frothy doesn't mean your stock's price is. Just because the market is sinking doesn't mean your stock is now a bargain. Unless you look at your company and how it's priced, you really can't make an intelligent decision about whether to sell. Rising prices often cause investors to panic and sell everything, and falling prices may make them think that almost every investment is a sure thing. Both attitudes are equally foolish.

Spend less time reading and listening to information about your investments

It may sound counter-intuitive, but spending too much time attending to your investments can send your portfolio straight downhill. There are 'experts' everywhere and most of them sound very persuasive. They all claim to know what the market will do next week and whether your stock is headed up or down. If you listen to them you'll be panicked into selling too soon or buying stocks you shouldn't buy. If you must read about your stocks, read the company's annual report and quarterly earnings reports and skip most of the opinions.

Get the buy right and don't worry about the sell

Buy solid dividend-paying companies when they're on sale and hold them until there is a major change in their story. In some cases, this may mean you can hold them for a lifetime. Don't underestimate this method. Every time some pundit insists that buy-and-hold investing is dead, it proves itself all over again.

Ignore market noise

Every talking head can tell you why the market went up or down today. If the reasons sound flimsy, it's because they often are. In the short term, the market makes very little sense and fluctuations can happen for a million silly reasons. In the longer term, good companies reward their shareholders and their prices reflect it.

Diversify intelligently

Buy stocks when they're on sale and not just to diversify your portfolio. Don't buy a housing stock when you know the housing market is declining, even if it would diversify your portfolio. As time goes on and you take advantage of the economic cycles, you'll still end up with a diversified portfolio, but it will be composed of stocks you purchased at bargain prices.

Balance profits and losses.

Sooner or later, you'll need to raise cash and will want to sell some stock. Be careful how you do it. Some investors only want to sell losers, while others can only stand to take profits. The former will have you selling stocks that are just about to turn around, while the latter will leave you with a stack of losers and a big capital gains bill. It's almost always better to balance winners against losers, which minimises your tax exposure, cleans the junk out of your portfolio and allows you to take some profits.

Don't confuse a great company with a great stock

Just because a company is making tons of money and has low debt and great management does not mean its stock is a good buy. Some great companies have share prices that have been bid up to unsustainable levels. If you like the company, wait for a temporary drop in the share price. Sooner or later, you'll usually get one.

Take a beginning accounting class

It may be a little more work than the other suggestions but learning to understand a profit-loss statement and other fundamentals of business accounting will give you a huge advantage in understanding whether the company you're buying is financially healthy.

By taking the time to understand how the markets work and how companies are valued, you can relax when everyone else is panicking and know that your long-term results will almost certainly beat any fixed-income investment you can find.

Contact us

Need help you with business equipment finance or property loans? Talk to the Zenith team experts on 1300 288 874 or enquire below.

Company Details

Phone: 1300 288 874
Fax: (02) 8088 7300
Australian Credit Licence Registration Number 389877

Monday, 26 September 2016

Zenith Finance Testimonials

What Zenith finance clients say

At Zenith Finance we aim to provide every client with the smartest financing option for their business equipment, vehicle and property needs.

It’s about removing the confusion and frustration with friendly and professional help every step of the way. Not to mention, some very attractive numbers.

Here’s what just a few of our valued clients have to say:

“Hi Yolanda & David,
Thank you very much for all your assistance in this process. I recognise its been a rather messy and possibly painful transaction, and we appreciate your efforts in bringing us to settlement.
I look forward to being in touch again in the future for assistance in our financing requirements.
Thanks again…”

Andrew Hide, Exposure Productions NT
“Dear Richard, Yolanda and David,
I’ve just made my final payout to Westpac for my Audi A3.
I wanted to thank you all for the excellent service and respectful communications and highly professional negotiations – even for my small finance payout, treated by you with care and respect.
Hoping to finance my future goods with Zenith.
Kind Regards,

“Markitforce have been dealing with Zenith for well over seven years and throughout that time have always been extremely happy with the service and advice that Zenith have provided us. The one on one customer service that you get from Zenith is unbeatable.

Markitforce go to Zenith whenever we require new finance. As a fast growing company we rely on a finance broker that can assist us with a wide range of needs. We have always found the finance process to be smooth and extremely quick when the team at Zenith are involved. Markitforce are very happy to recommend Zenith to anyone looking to utilise their services.”

Sarah Rigby, Accountant
“Proactive, reactive and top quality personalised service. This is one company that does not sit back and wait for things to happen, They stand up and MAKE THINGS HAPPEN!

After contacting Zenith and expressing my interest to purchase my first home, I met with David Louie. I explained to David that I knew absolutely nothing about the process for purchasing a home and asked him to walk me through everything. I was treated like an individual and the most important thing was that I was not treated like an idiot. During the process of applying for the home loan, I was constantly kept up to date on what was happening and Zenith definitely went further than the extra mile to ensure that deadlines were met on time, and if they realised that this was not possible, I was told well in advance so that I could get extensions.”

Rob Moss, Executive Assistant
“Simon Says Television Pty Ltd (SSTV) is happy to endorse Zenith Finance, SSTV has been a client of Zenith since the late 90s when our first finance was arranged through Richard, and SSTV is still getting Zenith to provide finance for the company. Our most recent dealings with Zenith has taken place over the past month when we upgraded our equipment, the finance was finalised within an extremely short timeframe, David Louie, Finance Manager for Zenith worked quickly and professionally to ensure that we were able to secure this cutting edge equipment before a dramatic price increase occurred.
The reason I use Zenith is that I have experienced considerable frustration when dealing directly with lending institutions, Zenith save me time and money and manage the whole process with a minimal amount of disruption to my busy schedule.

What I like about Zenith is that they sort things out and make sure that you, the client, get what you need with the least amount of hassle.”

Simon Manzie, Director
“Richard, I have dealt with you and your company now for nearly 20 years, and I guess now many hundreds of forklift trucks later that you have arranged finance for through Nomad Materials Handling Pty Ltd, Pacific Rentals Pty Ltd and now for Odn Asia Pacific Pty Ltd.

Your attention to detail and your promptness in service confirms that our decision to select your company to supply our financial advice and services to us and our customers has been one of our smartest business decisions.

You have taken the time to understand the forklift truck hire and sales industry and treated us and our customer’s confidential information in a high professional manner. Many of our customers have confirmed this to us also when they have had dealings with your company from the one forklift truck owner to the multi-national company users.”
Bob Maxwell, Director

Contact us
Need help you with business equipment finance or property loans? Talk to the Zenith team experts on 1300 288 874 or enquire below.

Sunday, 18 September 2016

Investment Basics – Understanding Your Gains And Losses

When you’re reviewing your investments, it’s important to remember that income and returns come from two main sources, Capital Gains and Interim Income.

Capital gain (or loss)

This is the difference in the overall value of your investment between when you purchased it and now (or the date that you sold it.) You can work it out as:
((Current or sale price per unit – purchase price) * number of units) – fees and taxes
For example, let’s assume that you purchased 100 shares of Amazing Blue Widget Co. for $50 each and then sold them for $80 each. You had to pay $10 to buy, $10 to sell and 15% tax on the profit, this would work out to: (($80 – $50)*100) – $20 – $450 = $2,430 or a return of 48.6% on your original $5,000 investment.

Interim income (dividends, interest etc.)

This is the amount that you’ve received in interim payments over the life of your investment. It’s calculated as:
(Interim % * value of investment) – taxes
You would need to work this out for each interim payment that you receive.
For example, let’s assume that you’ve held 100 ABWC shares for three years, and that they paid dividends of 3% a year; in the first year the shares were $50 each, in the second, $60 each and in the third $80 each. Your return would be: 3% of $5,000, $6,000 and $8,000 less tax; this works out to: $485.

Your total return

This is equal to your capital gain (or loss) plus your interim income. You can then compare this to your original purchase price to understand what percentage gain or loss that you’ve made.
For example, your purchase price of ABWC shares was $5,000; over three years, you’ve made $2,430 in capital gains and $485 in interim returns (dividends) for a total of $2,915. That’s an increase of 58.3% over three years, or 19.4% a year – Not bad!
You should compare your total return to your targets and life goals. This can help you decide if you should keep your investments, or if it would be wise to sell them.
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Contact us

Need help you with business equipment finance or property loans? Talk to the Zenith team experts on 1300 288 874 or enquire below.

Company Details
Phone: 1300 288 874
Fax: (02) 8088 7300
Australian Credit Licence Registration Number 389877

Wednesday, 10 August 2016

Aged Care Finance - Zenith Finance Cpmpany, Australia

At Zenith Finance, we are progressive, inventive and strive to be good corporate citizens in the area of finance. Through our Seniors Housing and Aged Care Finance division, we blend the best of each.
Call Sam Leon on on 1300 288 874 to discuss financing for aged-care housing.

Australia’s Age of Ageing – 60 is the new 40

It’s no news that Australia’s population is ageing fast. More and more people:
  • live longer
  • work well into their 70s and 80s
  • have children in their second, third and fourth marriages.

Retirement ‘tribes’

Retirement has shifted from a “door closing” to a “door opening” stage of life. Even from the age of 50, people are starting to think about a new quality and quantity of lifestyle when they finally do retire – enjoyed around people they connect with.
This has led to planning and development of ‘lifestyle living’ communities based around entire ‘tribes’ of people. It goes way beyond simple sea-change and tree-change moves.

A huge growth in ‘lifestyle living’ communities

We are now seeing:
  • affordable gated communities
  • 24-hour concierge service and security.
  • pools, tennis courts, coffee shops and outdoor barbecue areas
  • silver service dining rooms
  • putting and bowling greens
  • beauty salons
  • fully equipped gymnasiums
  • organised activities
  • high-speed cable Internet
  • adjacent golf course
  • function centre
  • and much more.
We have seen developments themed like an Italian village – cobblestones in the “ marketplace”, pizzeria, alfresco dining, bubbling brooks and little waterfalls.

Mega campuses heading to Australia

Then there are the mega campuses – yet to appear in Australia, where entire villages of self-care and low-care homes and home units, sit alongside medium-care and into high-care facilities and ultimately a Hospice.
These huge developments will find their way into the Australian way of life within a decade. And they require large and sophisticated financing.

The changing face of aged care

Yesterday’s grim nursing home has given way to today’s modern, airy, high-quality and government compliance-standard legislated, low, medium and high care mature-age living facilities. These projects cater to a growing clientele that are spread across the socio-economic spectrum.

Thousands of new seniors bed licenses

In February 2010, 2,224 new bed licences have just been released in NSW alone. This means between 20 and 30 new seniors housing developments will commence in the next 12 months, mainly in the greater Sydney area.
Across Australia the number is 12,218 new bed licences.
The maximum funding provided by the Australian government towards community assistance with these developments is $150 million. That’ more than most international governments provide, but still way too little for a need that is way too great.

Specialists in Seniors Housing and Aged Care Finance

Our Seniors Housing and Aged Care Finance division provides a unique, specialised and very necessary service.
Headed by Sam Leon, senior consultant in retirement and aged housing finance, our team specialise in the retirement and aged-care housing sectors.

Highly experienced

Sam has studied ageing, aged care housing and both retirement and aged care financing for 10 years. He has been a long serving director of the Whiddon Group (Frank Whiddon Masonic Homes), a consultant to several retirement village developers and a consultant to a specific, market- focused, high care aged property-developer.

Established with funders

Sam knows and is known by all of the major funders in this specialised field. He is familiar with their requirements, documentation, LVRs, valuation requirements and funding preferences. He speaks their language – and equally important, he speaks your language.

Industry representatives

Sam was the opening speaker on day 2 of the Aged Care Association of Australia’s NSW conference in the first quarter of 2010.

Like to discuss your development in confidence?

Sam is available any time should you wish to discuss your proposed or approved development in complete confidence.

Richard Korda
( Managing Director )


Tuesday, 2 August 2016

Truck & Heavy Vehicle Finance - Zenith Finance Cpmpany, Australia

Zenith Finance Cpmpany, Australia
Searching for the right heavy vehicle loan to:
  • buy a truck, trailer, bus or other heavy vehicle?
  • upgrade to a brand new rig?
  • add a number of vehicles to your fleet?

Whether you run a solo business, a medium sized company or a large operation, Zenith Finance can help you with a tailored truck or other heavy vehicle finance package.

Expertise that saves you money

Wherever you are across Australia, call our expert team in Sydney on 1300 288 874 to discuss your heavy vehicle loan needs – or ask for our free Truck Finance Guide.

Trucks and heavy vehicles we can finance for you

We can help you buy or lease:
  • prime movers
  • rigid trucks
  • dump trucks
  • flat bed trucks
  • mining trucks
  • vans
  • trailers
  • buses
  • almost any heavy vehicle on the market.
Contact us today on 1300 288 874 to discuss your heavy vehicle finance needs.

Lower rates and greater benefits

We understand that every business – and every vehicle purchase – is unique. So one of our heavy vehicle finance specialists will meet with you at your workplace to find out what you really need.
From here, they’ll grill the banks and financial institutions to get you the best possible rate in the market. And then explain in straightforward, no jargon language how our different financial plans can give you:
  • better tax and GST advantages
  • easy to manage cash flow benefits
  • flexible payment options
You choose the plan that works for you – and leave all the leg and paper work to us.

Like to discuss your truck and heavy vehicle financing?

Contact us in Sydney on 1300 288 874 or get in touch online today
Learn more about the different vehicle finance packages you can choose from:

Contact Richard on 1300 288 874 if you need some expert help with commercial property finance or equipment finance loans and also you may apply online for any further inquiry Zenith Finance | Finance Company Australia

Wednesday, 27 July 2016

What is an operating lease and rental? - Medical Equipment Operating Lease

What is an operating lease and rental?
It’s a finance option that works well for medical equipment that depreciates quickly, has a short life span or is constantly in need of upgrading. It’s similar to a finance lease but, gives you more flexibility.
You might have also heard it called a rental agreement, rental, fully maintained operating lease or non maintained operating lease.

How do they work?

We purchase the medical equipment and rent it to you for an agreed payment over a fixed term.
You get to use the equipment without the hassle of disposing of it at the end of its life. It’s like renting your equipment over a fixed period.

What sort of medical equipment do operating leases best suit?

  • Computers
  • Telecommunications
  • Office equipment


What are the benefits of operating leases and rentals?

  • Upgrade, add and replace – make changes to your equipment throughout the contract
  • You keep your capital – no deposit required and we pay 100% for the equipment so you don’t need to tie up your funds
  • Less risk – because you don’t fork out a huge payment to buy the equipment
  • Short or long term contracts – from 2 to 5 years
  • Easy budgeting – fixed rental and interest so you always know what you’re up for
  • Tax advantages – 100% deductable when used solely for business
  • We pay GST – so you’re monthly payments are lower


Like to find out more about an operating lease for your business equipment?

Contact us in Sydney on 1300 288 874 or apply online today
Or learn more about the different medical and dental finance packages you can choose from:

Thursday, 30 June 2016

Income protection - If you were ill for months or years how could you pay the bills?

More than likely you've heard of income protection insurance. A lot of Australians have, but feel that if they're going to spend money on insurance, they'd rather protect their car, house, life and health.
The trouble with this is that people do get seriously ill and find themselves out of work for months, years, even permanently. Unfortunately, life insurance can't help, and even top level health insurance only covers some of the medical bills in the short-term.

Thousands of Australians risk sliding into poverty

In 2008, the Australian Bureau of Statistics records show 7,624 Australians couldn't work (1) and relied on sickness allowance - if they have a partner, that's just $205.75 each per week (2).

With our cost of living now amongst the highest in the world, this can turn into a nightmare for the 69% of Australians who don't have any personal income protection insurance (3).

With no money coming in, they struggle to put food on the table, cloth the family and pay the basic bills - let alone keep up with the car repayments and average mortgage of $367,000 (4).

Should we protect our biggest asset first?

J-Lo's booty ($300 million), Mariah's legs ($1 billion) and The Boss's voice ($31 million) aside, being able to earn a living is the most valuable asset most of us will ever have. If you make $80,000 per annum now, it means you'll earn more than $2.6 million over the next 20 years (allowing for inflation).

And while there seems to be an insurance to cover just about anything these days - including alien abduction - income protection insurance is a smart and inexpensive way to ensure that you and your family don't have to worry about sliding into poverty if you get sick or injured.

How much does income protection insurance cost?

Here's an example of how cost-effective it is for a healthy, 40yo, non-smoking male working in an office:
  • Earning the average wage of $1,248.20 per week (5) 
  • Cost $62.47 per month (6)

If he gets sick or injured:
  • Insurer pays him 75% of his income, or $1,014.00 per week
  • Paid until he is well enough to return to work or age 65.

(The reason the benefit is not 100% is so that there's still an incentive to get well and back into a contributing role in society.)

Ways to pay and tax benefits if buying through an advisor

You can get Income Protection through an industry superannuation fund by purchasing additional units of cover, or via a life insurance adviser.

One of the biggest benefits of buying income protection outside your superannuation, is that it becomes a tax deductible cost , which significantly reduces its impact on your household budget.

Waiting and benefit periods can be adapted to your needs. And premiums can be paid monthly, quarterly or yearly.

The most precious benefit of all

Of course, whichever way you go, the irreplaceable benefit is peace of mind for the rest of your life knowing that if you're unlucky enough to be struck down with illness you and your family can maintain your current lifestyle while you're on the road to recovery. Even months and years after sick leave and health insurance have been exhausted and there's no salary coming in.

Like to find out more about Income Protection?

Here at Zenith, we've recently partnered with MBS Insurance who are Authorised Representatives of Lonsdale Financial Services (ASIC Authorised Representative Number 303212).

Their licensed insurance brokers can help you with:
  • expert advice on income protection
  • ongoing protection portfolio management support during claims.

If you'd like to find out more, contact us here at Zenith and we'll put you in touch with the best person.

[1]ABS 1301.0 2008 Year Book” Income and community support. Accessed 28 January 2010.

[2] accessed 28 January 2010

[3] TNS/IFSA Investigating Income Protection Insurance in Australia July 2006 accessed 28 Jan 2010

[4] report dated 3/12/09 accessed 5/1/10

[5] ABS 6302.0 Average weekly earnings Australia. August 2009. Accessed 28/1/01

[6] Quote provided by AIA Australia April 2010

Quotation figures as at 23 April 2010 based the following:

Male, aged 40, non-smoker

White collar duties
Income Protection
Indemnity Value
Benefit Period – to age 65
Waiting period – 60 days
Benefit Indexation not included
Claims Escalation not included

Please consult tax and financial professional to obtain appropriate advice

For further details click here : Zenith Finance | Financing For Business

Wednesday, 4 May 2016

Construction Equipment Finance

Need a loan to buy or lease heavy construction equipment such as earthmovers, excavators and cranes?

When you're business could be investing anywhere from $10,000 to $1 million + for a single machine, you want a finance broker who understands your industry and can offer you much more than low rates alone.

We're experts in construction equipment finance

For many years, Zenith Finance has been designing tailor-made finance packages for businesses buying construction and earthmoving equipment in Sydney and around Australia.

To discuss your own equipment finance needs contact our expert team on 1300 288 874 or apply online today.

Construction equipment we can finance for you

We can help you buy or lease:
  • earthmovers
  • excavators
  • cranes   


We move heaven and earth to get you the right deal

Our construction equipment expert will come to your business or work site to learn about your requirements. We'll then negotiate with banks and other lenders on your behalf and a create finance plan options that offer you:
  • the best tax and GST advantages
  • easy to manage cash flow
  • flexible payment options
  • and, yes, a low interest rate too.
You choose the one that works best for you and leave all the leg and paper work to us.

Like to discuss financing for your construction equipment?

Contact us in Sydney on 1300 288 874 or apply online today

Or learn more about the different finance packages you can choose from:

- See more at : Zenith Finance | Plant & Equipment Finance

Saturday, 23 April 2016

Dental Equipment Finance

Are you a dentist, dental hygienist, orthodontic surgeon or cosmetic dentistry clinic looking for smart options to finance your dental equipment?

At Zenith Finance we specialise in helping dental and orthodontic practices, clinics and centres acquire the equipment you need to successfully start or grow your dental business.

Dental equipment we can help you purchase or lease

Just some of the equipment our financing experts have financed for dental businesses - and can do the same for you - include:
  • Air compressors
  • Autoclaves
  • Dentist chairs
  • Dental hygiene systems
  • Dental imaging systems
  • Dental lights
  • Dental milling machines
  • Dental technician equipment
  • Dental x-ray equipment
  • Lasers
  • Nitrous-oxide systems
  • Orthodontic equipment
  • Vacuum pumps
  • Dental fitouts, furniture, computers
  • and many more.

Why finance your dental equipment?

With a finance, loan or lease package tailored to your needs, you can do things like:
  • finance up to 100% of the cost
  • avoid making large upfront payments and keep cash for other needs
  • arrange repayments to suit your cash flow
  • ensure you other business and personal assets are kept secure
  • acquire the equipment before it's you've paid for it
  • upgrade your dental equipment whenever you need to
  • receive 100% tax deductions and GST benefits. 

 Why talk to Zenith Finance about your dental equipment finance?

  • Years of dental equipment financing experience
  • We source and package best financing option for you 
  • We can meet at your office, our office, or over the phone
  • Friendly, helpful one-on-one expert service. 

Contact us today

Call us in Sydney on 1300 288 874 to speak with a Zenith Finance medical equipment finance expert.

 Learn about our medical equipment loan options

- See more at  : Zenith Finance |  Dental Equipment Finance

Wednesday, 20 April 2016

Medical Equipment Finance

Low rate specialist medical financing - plus smart tax, GST and other benefits

At Zenith, we find, arrange and tailor medical equipment finance for solo practitioners, medium sized practices, medical centres and hospitals in Sydney and around Australia.

How can we help you?

Medical equipment we can finance for you

We can help you buy or lease:
  • medical systems
  • dental equipment
  • surgical equipment
Call 1300 288 874 to discuss your medical equipment needs or apply online today.

Or meet the Zenith Finance team.

Get a thorough examination of your options

We specialise in medical equipment financing – and understand each medical business has unique needs and circumstances. So we know how to dissect the rates from different institutions and negotiate a deal on the one that best suits you.

We’ll also walk you through our different finance products and clearly explain the:
  • tax and GST advantages
  • how much you pay for different length terms
  • flexible payment options
  • how to best manage your cash flow

You choose the one that works best for you and leave all the leg and paper work to us.

Like to discuss financing for your medical equipment?

Contact us in Sydney on 1300 288 874 or apply online today.

Or learn more about the different medical finance packages you can choose from:

- See more at : Zenith Finance | Financing and Insurance for Business

Tuesday, 19 April 2016

Commercial Property Finance

Are looking to invest in a commercial property:

 that you rent out to tenants?
 where you set up your own office?
If you have a good credit history, the team at Zenith Finance can help make you goal a reality.

Contact us in Sydney today on 1300 288 874 to speak with one of our commercial property experts.

Tailor-made commercial property loans

Whether we come to you, or you come to us, we'll listen, learn and discuss how different finance plans might fit your requirements. This could include things like repayment options, tax and GST advantages and working around your business structure.

If you like what you hear, we contact banks and other lenders to secure the lowest rate of interest on your behalf.

We’ll put together the right loan and benefits for you

Just some of the finance options we can offer you include:
  • Loan terms up to 15 years
  • Fixed or variable rate options – always know what you owe or pay your loan off sooner
  • Up to 75% loan to value ratios – get a loan for up to 75% of the property value.
  • Business overdraft facilities – extra money against your mortgage when you need it
  • Commercial bill facilities – when you need a big injection of cash for a short period
  • Complete commercial banking facilities 
  • Solutions for retail, industrial and commercial strata zonings


Like to talk to someone about commercial property financing?


Contact us on 1300 288 874 or apply online today

Wednesday, 13 April 2016

Is your business at the risk of "destruction"?

Is your industry experiencing long term downtrend which could suddenly turn into a destructive whirlwind? Look at print media as a cautionary tale 

What do the following names have in common? –Larry Page, Segei Brin, Mark Zuckerberg; Reid Hoffman? They are successful digital media entrepreneurs – the first two as founders of Google, the second a co founder of Facebook and the third, the founder of LinkedIn. They are kingpins in their respective digital and social medic space and they are the new ‘establishment’ of corporate America. There’s a not so subtle lesson for all business owners here: they were all still at school 15 years ago.

The point being that some industries are being destroyed ‘as we speak’.  In the world of media and publishing old business models are not being eroded they’re being destroyed. The Sydney Morning Herald and the venerable The Age have seen their newsprint papers suffer 18 percent declines (in sales) in just 12 months (to end December). That probably means about a 25% decline in top line revenues. Few business models could sustain that kind of decline. The rules are being re-written in real time.

Old business models

There are manifold effects of the destruction of old business models – apart from the obvious ‘losses”. In media, the convergence of technologies and media has led to an explosion of start-ups because first of all it is much easier to start a business today online than ever before and second because convergence itself is creating opportunities which even a year or two or go were not even on the radar. And speed of convergence shows no sign of letting up any time soon. Indeed recent data suggest that Australian broadband users will see bandwidth and speeds multiply 10-fold or more over the next few years, once again booting up convergence of technology and media.

This would resonate for experts like Clayton Christensen who have written scholarly works on why innovation often catches old-technology industries off-guard.

Christensen literally wrote the book on disruption, so it’s worth paying attention to him when he talks about where the disruption fuelled by the web is going to strike next. The Harvard business professor and author of The Innovator’s Dilemma notes that some industries that are “either in a state of disruptive crisis or will be soon,” and the professor has said also that “Journalism, certainly, and publishing broadly. Anything supported by advertising. That all of this is being disrupted is now beyond question.” What are the clues that precede “destruction”:
  • Creative destruction occurs when something new kills something older
  • Some industries will take longer but most will be affected by the web

Print media is one category but personal computers are another great example. The industry, led by Microsoft and Intel, destroyed many mainframe computer companies, but in doing so, entrepreneurs created one of the most important inventions of this century.   

Christensen goes on to describe what has happened to the newspaper and traditional media business; where he has said that many newspapers were lulled into a false sense of security and then “very quickly, all of a sudden, you go off the cliff.”

Business decision makers should pinch themselves every day to ensure they remain awake to technological shifts and their potential impacts on their industry.

Thursday, 31 March 2016

Story - A basic understanding of finance

Medical practitioners, health professional and allied health workers do not need to go to business school to run a successful practice but they do need some basic understating of finance. They do not teach business in medical school. When doctors go into private practice, they learn about profits and losses on the job, in a complex industry that is subject to large-scale forces beyond the control of most individuals.

The biggest potential cost savings are on personnel.  “Personnel are clearly the biggest place you can save,” said one doctor. This particular doctor had half a dozen medical practitioners on staff and cut his support staff in half, to six support staff, by cross-training employees and working more efficiently. The practice invests in continuous training.

It seems the days of having multiple medical assistants help you with every task are over.

In some practices today, the doctors do the mundane stuff of reminders for appointments  after they are done with their technical duties. This can involve the phoning of patients with reminders or to set up appointments. This also pays off when a staff member calls in sick or takes vacation.  The business thus avoids the need to hire a temp to be a medical assistant or secretary. With training, a practice can just take one of the support staff and slide them into a different position. Everyone in the office has a list of things to do if they’re not busy doing their primary job.

One method that business owners apply when cash flow is tight is to stretch the fixed costs across more doctors or expanded office hours. Practices with multiple doctors enjoy efficiencies that solo practitioners cannot obtain, as well as greater power in negotiating discounts with insurance companies, paper suppliers, vaccine suppliers and even credit card processors.  More practice hours spreads the costs and increases the net contribution per doctor

While the jury is still out on e-records, effective information technology systems can also save doctors valuable hours in prescribing, note-taking and communicating with staff or patients. With work-flow improvement, it gives more time for an extra patient or two in the day.

Financing of equipment remains a key area for savings. A poorly structured purchase can be more costly than it should. One doctor – Peter - purchased a new surgery in Chatswood for $495,000. It was a strata property. He then needed to do a new fitout. In order to finance this he secured a purpose-structured deal. The finance firm, Zenith financed the fitout at a cost of $125,000; financed through a commercial loan facility. The fit out which included walls, examination tables, sterilization units. This was done on a chattel mortgage agreement.

As people costs will remain high, the ability to finance equipment and fit out with innovative and economic solutions remains critical. Training however offers costs savings as it does in any small business. Training new staff on the practice’s procedures, including emphasis on first appointments to establish trust and lay the groundwork for a long-term relationship with patients is vital. One doctor noted “The more hand-holding you do, the more retention you get.”  Staff turnover for a medical practice should be a controllable expense just as capital expenditure is.

- See more at : Zenith Finance