Entrepreneurship development programme in india.pptx
investing_in_people
1. D E P A R T M E N T O F A G R I C U L T U R E , F I S H E R I E S A N D F O R E S T R Y
INVESTING IN PEOPLE
INVESTMENT IN BUSINESS GOES
BEYOND THE FINANCIAL LEDGER. IT’S
ABOUT NURTURING YOUR HUMAN
RESOURCES, MARKET-FOCUSED
SKILLS AND SECURING STRATEGIC
RELATIONSHIPS.
ENTREPRENEURSHIP AND INNOVATION IN AUSTRALIAN AGRIBUSINESSINVESTING IN PEOPLE
NEW INDUSTRIES DEVELOPMENT PROGRAM
NUMBER 1, SERIES 4
3. Tim Jones and Anne Montgomery are
producing the only certified organic fish
in Australia from their Silver Perch fish
farm near Grafton, in NSW.
An NIDP In-Market Experience
Scholarship has enabled them to upgrade
their business skills and identify a
valuable niche market for their organic
fish in Japan while also exploring high-
value domestic opportunities.
Anne and Tim both work off the
property to maintain cash flow while the
enterprise is being developed. They have
found that growing the fish was relatively
easy, due to their technical backgrounds
in aquaculture, compared with the
marketing and financial management
issues they have confronted.
Gaining the NIDP Scholarship was a
turning point. It gave them the resources
to invest in themselves by improving
their skills and to undertake a market
assessment trip to Japan.
While they have found the formal
aspects of marketing a challenge, their
face-to-face interaction with buyers – and
chefs in particular – is proving stimulating
and enjoyable.
“We quite enjoy the manual work of
the farm but it’s the mental stimulation of
marketing and meeting with the buyers,
the face to face contact, that makes it
interesting,” Anne said. “And getting first-
hand feedback is vital to our success.
“We are establishing a premium product
that will command a premium price. If
someone doesn’t re-order we need to
find out why; whether it’s the taste or the
quality, a supply issue or because Silver
Perch have quite spiky fins.
“A lot of thought has gone into
identifying the markets for what is a very
special product, and we spend a lot of
time cultivating personal contacts with
buyers and potential purchasers.
“Meeting chefs (in the hospitality
industry), making them fully aware of our
product and receiving their comments,
has been the main focus of our visits in
various parts of Australia.”
Tim and Anne’s 40-hectare property,
on which they have two 0.5 hectare
earthen dams stocked with Silver Perch,
is adjacent to the Orara river, a tributary
of the Clarence system, between Coffs
Harbour and Grafton. Silver Perch is
an Australian native fresh water fish.
The farm is certified with the National
Association of Sustainable Agriculture
Australia (NASAA).
They have local government planning
approval for construction of a total of
seven hectares of ponds, which they plan
to establish over the next three years.
Skills training and networking
Focused training, they agree, has
been indispensable in developing and
maintaining their business.
The Scholarship funding enabled them
to train in the use of a “QuickBooks”
business accounting package, that has
streamlined their financial management.
Other training made possible by the
Scholarship included Tim’s participation
in an NIDP-sponsored “Stepping Stones
to Capital” workshop in Canberra and
an Austrade “New Exporter Coaching
Clinic” in Byron Bay.
Anne attended a two-day “Fresh Fields
Strategic Planning” workshop for food
producers offered through the Regional
Cuisine project; a NSW Government
initiative focusing on local producers and
cuisine.
Their participation in such events
also enables networking and interactions
with others not in their supply chain
that can lead to business insights, ideas
and solutions to problems. It has also
ensured they take time out from running
the farm and the family and their other
employment to re-assess and re-focus
what they’re doing.
Diligence pays off
Since making time for targeted business
and market development activities, Anne
and Tim hold high hopes for positive
outcomes.
Their trip to Japan exceeded
expectations, as did the support of
Austrade’s Tokyo representative who
put them in touch with the proprietor
of an organic/macrobiotic restaurant.
This restaurateur sampled their Organic
Orara Perch and is keen to serve it in
his restaurant and distribute it in Japan.
However, production is currently so small
it will be some time before Tim and Anne
WRESTLING WITH MARKETING ORGANIC FISH
(AUST.) PTY LTD
LOCATION: 30km south-east of
Grafton, NSW
PROJECT: Organic Orara Perch
farming
NIDP FUNDING: $29,945 In-
Market Experience Scholarship
for market analysis and training
to improve marketing and
financial management skills
INVESTING IN YOURSELF
GROWING THE FISH IS RELATIVELY EASY COMPARED WITH
MARKETING AND BUSINESS MANAGEMENT ISSUES
INVESTING IN YOURSELF
‘WE’RE ESTABLISHING A PREMIUM PRODUCT THAT
WILL COMMAND A PREMIUM PRICE. IF SOMEONE
DOESN’T RE-ORDER WE NEED TO FIND OUT WHY’
A HUSBAND AND WIFE TEAM WITH BACKGROUNDS IN MARINE SCIENCE AND
ECOLOGY HAVE QUICKLY GRASPED THE CONCEPT OF ORGANIC FISH FARMING
AND BROUGHT IT TO REALITY. WRESTLING WITH THE MARKETING AND BUSINESS
MANAGEMENT SIDE HOWEVER, HAS BEEN THEIR TOUGHEST LEARNING EXERCISE.
Opposite: Anne Montgomery delivers her Organic Orara Perch to the chef of Mangrove Jack’s
restaurant in Coffs Harbour. Above: Tim Jones and Anne sell their perch direct through the Coffs
Harbour producer market.
The fish is a specialty of restaurants including
Mangrove Jack’s.
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4. can supply the quantity of product needed
to meet the demand from even the tiny
niche market they are targeting.
There are also packaging and
transportation issues to overcome before
export can become a reality, yet the future
beckons brightly.
A small trial shipment has been well
received in Japan and they have hosted
a visit to the farm by several potential
Japanese buyers.
In addition to funding vital self-
investment, the NIDP Scholarship assisted
them to visit domestic regions to identify
and prioritise a range of local market and
supply-chain strategies, and further address
their packing and transportation concerns.
As a result they are developing a retail
pack for domestic and export use, with
vacuum packing the best option at this
stage, and are attempting to determine
the shelf-life and quality of their product
under different storage and handling
conditions.
Supply chain challenge
Development of a supply chain from
farm to market is their biggest current
challenge, with reliable, temperature-
controlled transport a problematic area
for local markets as well as export.
They plan to supply Australian organic
retail outlets, but first need to settle on
the most suitable pack for the product
and address the organic industry’s
requirements for certification of every
stage of the production chain.
Organic Orara Perch are already
regularly sold - some whole, some
gilled and gutted and some as fillets - to
restaurants in Yamba, Coffs Harbour,
Byron Bay, Grafton and Brisbane and
direct to consumers through the local
producer market at Coffs Harbour.
The whole Organic Orara Perch
which are sold direct from the farm to
restaurants are certified organic. But fish
dressed or filleted for them by the local
fish shop, which is not certified, cannot
carry a certification label. Anne and Tim
are investigating what would be involved
in setting up a cleaning and filleting
facility on their property.
They already have a packing room with
all stainless steel fittings and a NSW Safe
Food Licence.
Right qualifications
back learning curve
Although both have tertiary
qualifications, Tim has also worked in
prawn aquaculture and Anne has interests
in environmental planning and organics.
They both wanted to own their own farm
for the lifestyle and independence.
It seemed logical their enterprise should
be an organic fish farm, with organic
certification holding the promise of a
marketing edge. It was a case of starting
a business where they could apply their
strengths though being prepared to
commit to a new learning curve in
marketing and management. ∞
FURTHER CONTACT
Timothy Jones and Anne
Montgomery, 02 6649 3549,
info@organicfish.com.au,
www.organicfish.com.au
NIDP, 1300 884 588,
nidp@daff.gov.au
INVESTING IN YOURSELFINVESTING IN YOURSELF
ENTREPRENEURIAL SPIRIT AND A STRATEGIC
RETHINK ARE DRIVING AN ADELAIDE BASED
MICRO-BUSINESS TO SHIFT FROM HARD-
END PRODUCTION TO CAPITALISING ON THE
VALUE OF ITS TECHNOLOGIES.
CHANGE OF
DIRECTION WILL FREE
UP TECHNOLOGY
BRIGITA PTY LTD
LOCATION: Adelaide, SA
PROJECT: Wastewater
treatment systems
NIDP FUNDING: $97,900 grant
to commercialise and assess
benefits of novel filtration and
tertiary treatment systems
invented by the principals of
Brigita to lower environmental
impact and recover resources
present in wastewater from the
olive oil industry
This has meant reaching out to the
world by seeking linkages with better
resourced, well established companies.
Mark and Sarah Lobban originally
established Brigita Pty Ltd to build and
sell wastewater treatment plants. They
designed initially a filtration system and
then a new ground-breaking tertiary
treatment. Today they are aiming to
market their wastewater treatment
systems – their intellectual properties.
The change in direction has been
prompted by the realisation that their
embryonic business does not have
the capacity to market their powerful,
innovative technologies world-wide.
Also they are aware that many small
companies, like Brigita, don’t survive
beyond five years.
However, given their resources and
skills, it makes more sense to ensure
their technology is made available
internationally by marketing their
system to established companies. These
companies have the networks and know-
how to take the technology to the end
users. Their initial plan was to sell plants
to end users such as wine makers and
olive oil producers themselves.
“We simply cannot achieve the global
Tim and Anne reflect on their production and market
development activities.
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IN FOCUS
THE BUSINESS STRATEGY
Sustainable production of
premium quality, healthy products
for high-value niche markets.
ACTION STEPS
• Developed procedures for
producing premium quality fish.
• Obtained Organic Certification.
• Identified customers in selected
niche markets and nurtured
relationships with them.
• Implemented supply chain
processes to ensure premium
product is delivered to
customers.
OUTCOMES
• Sales of products focused
into two identified premium
markets within Australia.
• Anticipated sales of 50% of
production into Japan.
LESSONS LEARNED
• A close relationship with
customers is critical to access
high-value markets.
• Initial timeframes are likely to
be optimistic and the business
plan needs to be conservative
to accommodate unexpected
delays.
• Small regional companies can
export to large, competitive
international markets with the
assistance of an appropriate
partner.
5. network necessary for the commercial
success these technologies deserve with
our limited resources,” Mark said. “In
fact, pursuing the original objective
could have increased the risk of losing
control of the technology or seeing it lost
completely through lack of exposure and
development.
“The best option for us is to find
the people best equipped to take our
technologies out into the global market
place while we focus on our strengths.
“We are excellent at invention,
innovation, at generating ideas and
developing them to practicality, but
we don’t have the global resources to
commercialise the sort of products we
are developing to reach the potential they
would achieve in the hands of the most
established players in the market.”
Core feature
The centrepiece of the Brigita
wastewater treatment system is a
continuous self-cleaning filter developed
by Sarah.
Her family has an olive grove and the
patented filtration system was developed
specifically to handle the wastewater from
the olive oil production process.
A combination of up to three per cent
oil and high levels of solids in wastewater
from the process makes it very difficult
to handle. So a system that operates
effectively in that environment is likely
to handle wastewater from most food,
beverage and similar production with
relative ease. The new technology collects
the solid filtrate, opening the way for it to
be processed into a by-product.
Mark and Sarah have two full-scale
pilot plants operating in olive mills and at
the Tamburlaine winery in NSW, where
principal Mark Davidson has developed
a model winery applying world-best
ecological practice. As part of the project
a mobile demonstration plant was
constructed in a shipping container.
Based on the performance of the pilot
plants, a benefit of the system is that it
can handle difficult wastewater problems
world-wide. Mark and Sarah understand
the huge potential for their treatment
technologies in the global market place.
Both readily acknowledge the need
to invest in themselves by participating
in relevant courses and workshops
whenever the opportunity arises and as
a result have been exposed to lot of new
concepts over the past two or three years,
some of which caused them to question
parts of their business plan.
Trigger point
The trigger point for their change in
strategic direction was a “Stepping Stones
to Capital” course Mark attended late last
year. He found the intensive four-day
course, presented by Greg Loudoun of
Fastrack, “extremely good but personally
extremely difficult.”
As he worked through the course
material with Sarah on his return home
the disappointment he felt over their
original approach changed to appreciation
and they agreed their re-focusing
would increase the likelihood of Brigita
technology being widely adopted.
Even though they knew what was
needed, the decision to change direction
was hard, Mark said.
Just as Greg Loudoun indicated, they
had to let go of a lot of their then goals
IN FOCUS
THE BUSINESS STRATEGY
• Identify and gain strategic
understanding of 3
international water/wastewater
companies with the capacity
to achieve maximum benefits
in global sales growth and
competitive advantages with
Brigita’s IP.
• Sell/license IP at greatest
valuation. Exit.
• Invent new technologies,
commercialise; refine and
repeat the strategy.
ACTION STEPS
• Build industrial scale pilot
plants in shipping containers
to demonstrate benefits of
technologies to targeted
companies.
• Protect IP.
• Test for technical benefits
evidence to support sales.
• Research companies which are
likely purchasers of Brigita’s IP.
OUTCOMES
• First IP sale/license to be
completed by mid 2005.
• Abandoned initial business
plan and strategy of being a
manufacturer. Selling direct to
end users.
LESSONS LEARNED
• Be flexible and prepared to
evolve strategies.
• Let go of and change/adapt
strategies that are not feasible.
• Get strategic help from the
best and brightest.
• Not all business advice
consultants are as bright as
they profess.
• Know your strengths and limits.
and perceptions and their business plans;
no easy thing given the amount of time
and effort devoted to developing them.
They have accepted there are ways to
achieve their aims without having hands-
on control of the treatment process.
Letting go will also enable them to
devote more of their resources to the
conceptual and developmental work that
is their forte.
Complementary technologies
They are currently focusing on other
wastewater technologies to complement
the filter system and break down
“recalcitrant” organic and inorganic
compounds in wastewater.
At the same time they are continuing
to improve their business knowledge
to participate in formal study. An
add-on benefit of their involvement in
entrepreneurship courses is the access
that provides to a network of like-minded
people wrestling with similar issues in
different business environments.
Mark attended a recent “Business
Readiness” workshop run by NIDP,
and Sarah has been involved in the New
Enterprise Incentive Scheme (NEIS), an
Australian Government initiative that helps
people start and run their own businesses
by giving support during the first year of
operation. They are also on the look-out for
the best mentors and consultants.
One of the many lessons they have
learnt is that it is important to have ready
access to support and good advice, and
that it is important to seek out “the best
and brightest” consultant or advisor
relevant to the issue being addressed. ∞
FURTHER CONTACT
Mark Lobban, 0418 841 391,
bestresearch@ozemail.com.au
NIDP, 1300 884 588,
nidp@daff.gov.au
‘SARAH AND I ARE VERY
GOOD AT INNOVATION
… BUT WE DON’T HAVE
THE RESOURCES TO
COMMERCIALISE THE
SORT OF PRODUCTS WE
ARE DEVELOPING’
PERSONAL CHALLENGES
Mark and Sarah are both intent on
their endeavours. Sarah is an engineer
specialising in primary wastewater
treatment and Mark has a background
in business and a particular interest in
tertiary water treatment.
They are husband and wife, with a
new child. However, they do find
time to both undertake the Masters
in entrepreneurship studies at the
University of Adelaide while continuing
to develop and refine their treatment
system and plant.
Despite their complementary interests,
balancing business and personal
pressures can be difficult. That is why
both have attended Landmark personal
improvement forums, designed to help
participants develop tools to enrich
interpersonal relationships; especially
to recognise and address personal
“baggage”; and avoid falling into
undesirable behaviour patterns and
reactions.
They have found it important to plan
and schedule business to ensure space
and personal time, separating work and
family and to sort out issues as they
arise.
Left: Sarah with the wastewater filtration unit she developed. She and husband Mark now focus on their intellectual
properties. Inset: Olive oil effluent before processing (left jar) and solids extracted after processing; Mark and Sarah
find time to work through their issues.
KEY POINTS
• Be prepared to re-assess what you are doing and, if necessary, pursue
a different direction to achieve what is best for your business, your
product or service.
• Clearly recognise and exploit your strengths and abilities.
• Training and development, including attending industry forums, will
deliver business and personal benefits.
• Involvement in courses exposes you to a network of like-minded people
grappling with similar issues in different business environments.
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INVESTING IN YOURSELFINVESTING IN YOURSELF
6. “I have learnt throughout life that the
most successful ingredient is people,”
Gino said.
“Development of a new product is
long and daunting, so without the right
people and without them having some
sort of ownership, you are not going to
be successful.”
It also helps to create a product that fills
a gap in the market place, meets market
demand and is cost effective for buyers as
well as profitable for investors.
And that’s exactly what Balmon aims to
achieve in the imminent release of a new
range of products that provides a low cost
means of monitoring isolated watering
points on pastoral leases.
The range is centred on a very compact
and extremely durable monitoring unit
that transmits UHF signals to a base unit
situated at the homestead. The monitor,
solar powered but with battery back-up,
can take multiple sensors for different
read-outs.
In development since December 1998,
the range of products is set to be launched
in May 2004. It is appropriately called
Mill Run (a term used in agricultural
circles to describe the job of regularly
heading out to check a property’s
equipment such as fences or water sites,
which could take hours or days).
“We can produce the Mill Run and
put it on the market because the range
of products offers a cheaper alternative
to physically driving over the property to
assess what is happening,” Gino said.
While the Mill Run initially was
designed to remotely monitor water sites
in pastoral areas, its use and potential
benefits have since expanded.
The products also can be used to
monitor water medicators that inject a
chemical or trace element into stock water
to treat animals for disease prevention or
improve their condition. Like any treatment
program, it is critical to deliver the correct
dosage. In addition, the last 12 months has
seen the transmission of images by radio
telemetry incorporated into the design.
The cost savings in terms of labour and
fuel associated with the traditional task of
physically monitoring remote watering
points on pastoral leases is just one of
the positives. Reducing vehicular traffic,
in turn reduces land degradation and
maintenance costs to pastoralists.
Though the emphasis to date has been
on the pastoral sector, the real beauty
of the system is that it has many other
industry applications. The wine, vegetable
growing and even the fuel industries are
now showing interest.
People partnership
With the Mill Run range about to be
released, what has been crucial to its
survival and the company itself is Gino’s
approach to building the best human
resources.
He comments that to start with you
get your technical expertise by paying
for it but if you see those experts have
an attitude which is totally committed
to the project, then offering some sort
of partnership is a sound way to keep
the best people and hasten progress of
the work.
And that’s exactly what he has
done. Apart from himself and his wife
Georgina, the Balmon WA partnership
comprises Simon Holmes a Court of one
of Australia’s largest pastoral companies
Heytesbury Beef, Steve Wallace of
NAVX Systems who handles the technical
applications through all the electronics,
and engineer Peter Green.
“If people offer expertise to your
business you can’t buy elsewhere their
value is almost incalculable,” he said.
“They have to be made shareholders.
“I look for those who are the best
in their field. But the ability to have a
wide vision and look at the whole of the
operation is important, so when we sit
down together they don’t only talk about
their core tasks.”
Gino seeks out people with the right set
of skills and they must be experienced.
He selects on the basis of technical
ability, innovative skills, knowledge of
‘I HAVE LEARNT THROUGHOUT LIFE THAT THE MOST
SUCCESSFUL INGREDIENT IS PEOPLE’
ALWAYS SEEK OUT THE BEST
BALMON WA PTY LTD
LOCATION: Exmouth, WA
PROJECT: Electronic monitoring
of remote water points on
pastoral leases
NIDP FUNDING: $100,000
grant to commercialise the Mill
Run product system to deliver
instant, accurate readings for a
variety of remote sensor units
Opposite: Gino Garbellini’s a firm believer in people partnerships. Inset: Reviewing product development with his
local partner, engineer Peter Green.
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FINDING THE RIGHT PEOPLEFINDING THE RIGHT PEOPLE
WHEN 97% OF NEW INVENTIONS FAIL, YOU MIGHT WONDER HOW THE REMAINING
THREE PERCENT GET OFF THE GROUND. ACCORDING TO THE PROJECT DIRECTOR
OF BALMON WA PTY LTD, GINO GARBELLINI, THE KEY INGREDIENT TO THE SUCCESS
OF RELEASING ANY NEW PRODUCT ONTO THE MARKET IS HAVING THE RIGHT
PEOPLE INVOLVED FROM THE START.
7. the product and relationship to the target
market.
He believes they need to be part of
an industry profile and possess coal-face
knowledge along with business acumen.
When you move from shareholding to
take on partners, he warns that a clear
understanding of exit policies is essential
so you don’t end up in costly court cases
dissolving ties.
Bring in the professionals
While it is important to consider who’s
in the partnership, partners are not the
only ones involved in development and
hopefully the success of your product on
release.
“We constantly draw on a huge
number of professionals. Always use
professionals – don’t try and do things
you know nothing about and if you need
the expertise of 10 major players get 10, if
you need five get five. And try your very
best not to employ the wrong people for
the job.”
Balmon employs the expertise of
marketing, advertising and financial
professionals during the course of its
development work.
When it comes to drawing up a
marketing plan, for example, Gino’s
advice is never do it yourself. He
recommends employing a professional
who has a critical knowledge of the
market place so they can better assess the
actions you need to take.
Vital to any business was the
consideration of alliances with your
suppliers. They can directly impact on
your business resulting in your success
or failure.
Do your sums
The point is also made that people
alone are not enough to secure the
success of a new product. As a business
principal it is imperative you have a good
understanding of your own product and
its place in the market over the short to
longer term.
As a product often is in development
for some years and has no value until it is
commercialised, there is a major risk for
losing large quantities of cash. So doing
your sums and developing a business
strategy is of fundamental importance.
“Our business strategy through market
research was first looked at long before
the first product prototype went out – it
is not much good producing a product no
one wants, is too expensive, or there are
lots of people competing to do the same
thing,” Gino said.
“When you talk about the actual
planning for the business – we started
that a long time prior to entering
development.”
Once Balmon’s business strategy was in
place it was not set in stone, but constantly
updated as circumstances and the market
changed: “You shoot off to the side and
come back to the main track probably
about 20 times a year throughout the
development cycle.”
Having recently undertaken to go
through the NIDP “Business Readiness”
program, Gino and his partners are using
the online business tools to establish their
own parameters in order to formally draw
up a new business plan, which will be
done externally. NIDP also has assisted
Balmon with the commercialisation of the
Mill Run products. ∞
‘DEVELOPMENT OF A
NEW PRODUCT IS LONG
AND DAUNTING, SO
WITHOUT THE RIGHT
PEOPLE AND WITHOUT
THEM HAVING SOME
SORT OF OWNERSHIP,
YOU ARE NOT GOING TO
BE SUCCESSFUL’
FURTHER CONTACT
Gino Garbellini, 08 9949 1593,
garb@nwc.net.au
NIDP, 1300 884 588 (for the cost
of a local call), nidp@daff.gov.au
A ‘grow-out’ feeding pen at Fitzgerald Bay, Whyalla, SA.
KEEP IN MIND
• Cast your business plans long before the first product prototype is
ready and prove your viability to potential partners.
• Only employ people with the best skills and expertise and if they show
real commitment to the project, offer them shares in lieu of service or a
partnership in the development.
• Keep a percentage of company shares outside the partnership to attract
investors.
• Use professionals when you don’t have the knowledge or skills to do
something yourself.
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SKILLS DEVELOPMENTFINDING THE RIGHT PEOPLE
HOOKED ON TRAINING
WITH 10 YEARS EXPERIENCE IN THE LOBSTER INDUSTRY, TOM DAWSON
KNEW IT WOULD TAKE SOMETHING VERY SPECIAL TO SUCCESSFULLY
EXPORT FIN FISH TO THE DISCERNING JAPANESE MARKET.
BUT TOM DID HIS HOMEWORK, FIGURED OUT THE SKILLS AND
PARTNERSHIPS HE NEEDED, AND NOW HIS AUSTRALIAN HIRAMASA™ IS
WOWING THE CONNOISSEURS AT JAPANESE RESTAURANTS FROM TOKYO
TO TORONTO.
8. When Tom Dawson decided to expand
his South Australian-based lobster business
by providing Australian Hiramasa fish for
the international market, he worked on
the principle “you only get one chance to
get it right.”
In his case, this meant a learning curve
of not just building up knowledge about
his product and its markets, but ensuring
he and his team acquired the relevant
skills and training.
Australian Hiramasa (Seriola Ialandi
– also known as Gold Striped Amberjack
or Yellow Tail King Fish) has firm white
flesh, full flavour and a minimum of dark
muscle that makes it ideal for a range of
culinary applications from the simplicity
of sashimi to the most sophisticated of
dishes, limited only by the imagination
of the chef.
It can be supplied whole chilled or as
vacuum packed fillets. It is sold all year
round to the Japanese sashimi market,
America, and some European countries.
The product is named after the company
of which Tom is managing director.
He says a major fillip to the business
was the NIDP PCP to assist with
commercialisation of production for sales
to export and domestic markets, as well
as funding a thorough human resources
review of the company.
“All our employees are sourced through
the Career Employment Group in
Whyalla,” Tom said. “We have trained
them in two groups, 25 initially then
another 15 as our business grew. With the
PCP resources we were able to carry out
a full OH&S review, which we arranged
through the Australian Maritime College.
“We now have a formal OH&S program
and all our staff are compliant and have
been properly trained for their tasks. As
the company has grown our attention to
OH&S requirements has become more
and more important.
“The aims of our review were to
allow better matching of selection
and development of people against
our requirements; better performance
management; and to provide the basis for
an appropriate employment instrument in
the future.
“We now have written position
descriptions, position classifications and
performance indicators, as well as a clear
structure for performance review. It’s not
quite as formal as it sounds, but you really
need to have these things in place to be
able to manage an expanding workforce.”
Training gets results
Part of the NIDP grant money can be
used to instruct workers in ‘on the job’
skills. “When they joined us, none of our
people had any training or experience
in our industry,” Tom points out. “The
PCP funding allowed us to train them
all through the Port Adelaide based
Australian Fisheries Academy, which sent
one of its trainers to us at Whyalla for a
fortnight to help us. Our first intake is at
level two of their training, while the more
recent additions are at level one.
‘The results have been astounding. I
estimate the training has given us a 300%
improvement in productivity – but there’s
a lot more to it than that. You’ve got to
remember that these were unskilled people
who now have a trade, and that means a
lot in regional centres such as Whyalla.
“I’m amazed at the resilience of our
staff and the way they’ve stuck with us
through the hard times. Just recently
the strong Australian dollar has worked
against exporters such as us, but even
when the plant is not fully operational
there is no loss of commitment from any
of our employees.
“I think the training has given benefits
to the individuals and the region, as well
as our business. Our people now have a
skill in preparing fish for the world market
and that’s got to be of value to them in
both the long and short term.
“There are two basic jobs. We have
a wet area for examining each fish
– assigning it one of five grades of
quality – and heading and gutting; and
a dry area for filleting and packing. The
filleting is a real art; it’s where we cut and
present the fish in the special way that the
Japanese market requires to ensure that
it is of sashimi standard. I went to Japan
to learn that under the earlier In-Market
Experience Scholarship, and we’ve had
Japanese experts come here to run the
employees through it too.
“As an example of the dedication of
staff, one of our people spent two years
designing and building a heading machine
and getting it patented. We’ve bought it
from him – and I feel this shows his level
of commitment to this industry and its
future.”
Tom has been on a learning curve too
– hence the trip to Japan to ensure that
the cutting of the fish was done in exactly
the right way. But he also brought in a
highly experienced fin fish manager from
Tasmania who’d had 25 years experience
in the salmon industry, to introduce
efficiencies, help define the requisite skills
IN FOCUS
THE BUSINESS STRATEGY
It’s all about relationships,
making the right connections,
understanding every part of the
supply chain and tailoring HRD to
market needs.
ACTION STEPS
• Investigation and research using
worldwide networks and visits.
• Finding the right partners for
every stage of the process.
• Structuring internal training
and development to business
objectives.
OUTCOMES
• Training delivered outstanding
results.
• Achieved targeted 80% export
and 20% domestic sales in the
first two years.
• Moved up the production chain
to add value.
LESSONS LEARNED
• Understanding that “the more
you do, the better you’ll be”.
• Staff training builds loyalty.
• Research every aspect of the
business, no matter how small.
• Don’t turn your back on the
domestic market when you’re
developing your product
initially.
• Understand the viability of
supply chain partners.
Filleting is a real art, to meet exacting
Japanese standards.
THE ISSUES
• Research the market in detail.
• Systematically build up a knowledge bank and skill levels right
throughout the company.
• Attune skills development to areas of greatest need, and hence where
likely to generate the greatest commercial returns.
MADE IN AUSTRALIA
PAGE 12 APRIL 2004 :: SERIES 4 NUMBER 1
MADE IN AUSTRALIA
SERIES 4 NUMBER 1 :: APRIL 2004 PAGE 13
AUSTRALIAN HIRAMASA
PTY LTD
LOCATION: Office – Port
Lincoln, SA; Export processing
plant – Whyalla, SA
PROJECT: Commercialising
export production of Yellow Tail
King Fish
NIDP FUNDING: In-Market
Experience Scholarship for
research and PCP grant to
assist commercialisation, skills
development and training
‘THE RESULTS HAVE BEEN ASTOUNDING. I ESTIMATE THE TRAINING HAS GIVEN US A
300% IMPROVEMENT IN PRODUCTIVITY’
AS THE BUSINESS HAS GROWN SO TOO HAS THE
NEED FOR A MORE STRUCTURED HRD PROGRAM
SKILLS DEVELOPMENTSKILLS DEVELOPMENT
9. W. H. Heck and Sons, trading as Rocky
Point Sugar Mill at Woongoolba, deep in
Queensland sugar history, has faced up to
sliding world sugar prices with a startling
array of new initiatives.
While some of its competitors have
called for Government assistance or faded
away, Rocky Point has moved into a
number of other profitable operations.
RockyPoint’sseeminglyunconventional
businesses include:
- organic sugar;
- industrial alcohol;
- a renewable electricity cogeneration
plant;
- ethanol production for the fuel
industry;
- bulk liquid and retail packaged sugar
for local industry and the domestic
market;
- and a significant move into sugarcake,
a value-added sugar product used in
Japan for fermentation to produce
sake or Shuzo.
As managing director David Heck,
a fifth generation co-owner of the
family business puts it: “I never let an
opportunity pass me by.
“Rocky Point is one of the smallest
mills, so we had to be smart to keep
going,” David explained. “We process
about 400,000 tonnes of cane a year,
less than half what most mills do. In
the old days it was easy, you grew cane,
you made sugar and that was it. But it
doesn’t work like that any more, so we’re
diversifying and outsourcing.
“Economic conditions made us look
outside traditional sugar processing,
and technological changes led us into
outsourcing. There are things that are
‘outside the square’ that we can learn to
do ourselves, but there are things that are
further from our core business, and that’s
when we bring in outside help.
“Being realistic, you also have to keep
a watch on staff numbers in a volatile
economic market, maintaining our plant-
specific core workforce but outsourcing
helps us to stay viable and grow even
when we don’t have particular skills in-
house.”
The power of an idea
Impressed by Rocky Point’s reputation
for having a go and turning the
improbable into a success story, NIDP
provided a $110,000 PCP grant for the
construction of a trial production facility
for the sugarcake.
“Sugarcake has a very large potential
and the backup and support from NIDP
the company needed, and act as a mentor
to Tom and his staff.
“We brought Greg Riley over for
six months and he made a tremendous
difference. He gave stability to the
business, and that’s a very important
attribute. Greg also introduced the grading
system - quality control being absolutely
essential for the world market.”
Tom describes Australian Hiramasa as
a “product for the new age buyer”. A key
concern in markets such as Europe and
Japan is the concept of traceability. “We
must be able to vouch for every stage of
the finished product from egg to table.
Stringent EU requirements, especially at
the top end of the market where we are
placed, put great emphasis on this.
“Traceability means that the customer
is assured about not just the safety of the
product, but also the sustainability of the
way it is produced. Being able to do this is
tremendously important to our business.
“We’re helped by being able to market
our product as coming from the pristine
waters of the Great Southern Ocean. South
Australia has worked hard to develop and
maintain its worldwide reputation for
the highest quality fin fish aquaculture.
Quality and absolute freshness are the
cornerstones of this valuable reputation.
“Yet that’s only part of the story. It
takes a lot of time and effort to get the
knowledge and ensure everyone has the
skills and training to make this work, and
that includes me as well as the people who
work for me.” ∞
THE AUSTRALIAN
HIRAMASA™ STORY
The evolution of Australian Hiramasa
emanates from Tom’s search for other
seafood ventures as a way to smooth the
seasonality and volatility of his interests in
the lobster industry.
“About five years ago I went to Japan to
look at the fin fish market and about the
same time I started to form an alliance
with South Australian Aquaculture
Management (SAAM). Together we
identified this fish as having excellent
potential in Japan and in Japanese
restaurants around the world. And it has
the added advantage of a name well
known to the Japanese market – Hiramasa
is the Japanese word for kingfish.
“Australian Hiramasa is a sub-species
native to South Australian waters, so the
challenge was not to interfere with the
perfection of that natural balance but to
improve on it. SAAM runs the hatchling
and grow-out areas off Port Augusta and
Whyalla – both in Gulf St Vincent – and
is Australia’s largest producer of this fish.
We have interlocking Directorships and
the company Australian Hiramasa is a
shareholder in SAAM.”
Improving on nature was no easy task,
and it took the company’s marine
biologist several years to find a way of
producing commercial quantities of
disease-free fish in the hatchling areas
off Whyalla. “We’re the first Hiramasa
aquaculture operation in the world – but
it’s paid off and we can now produce
the quantity and exceed expectations for
quality,” Tom declares.
“The relationship with SAAM has
strengthened and will continue to do so
in the years ahead. That’s been a major
milestone in developing the business, but
I’ve also been helped enormously through
my involvement with NIDP. In 2001 I
was awarded the In-Market Experience
Scholarship, followed by the PCP, which
has just been completed.
“The Scholarship was fantastic – so many
great ideas came out of it. It doesn’t solve
big problems like currency fluctuations or
volatile world demand, however it does
teach you the importance of presenting
a product in the best possible way. And if
you can do that, you’ll come out in front.
“Quite frankly I’ve been amazed by the
professionalism of the NIDP people I’ve
worked with. I was worried there’d be
miles of red tape, but it’s just the opposite
and they seem to understand that when
a business person has an idea he or she
needs a quick answer. The Australian
Maritime College helped me in putting our
case forward and it all worked very well.”
Tom is vice chairman of the Food Adelaide
Group, a State Government-assisted
cluster of food exporters with offices in
Japan and Taiwan. “It’s been tremendously
valuable for us to be members of this
group. Currently a new group is being
formed for SA food exporters, bringing
together existing industry entities into a
single body. This will be less confusing
for the overseas market, and I can’t
over-emphasise the importance of trade
bodies like this for exporters.” ∞
FURTHER CONTACT
Tom Dawson, 08 8683 3366,
tom@sorl.com.au
NIDP, 1300 884 588,
nidp@daff.gov.au
Food Adelaide,
www.foodadelaide.com
Australian Hiramasa sashimi is a prized dish in Japan.
David Heck … alert to new ideas.
KEY POINTS
• Falling sugar prices propelled need for new ideas – get smart or go
broke.
• Look outside the square; explore different paradigms for answers.
• Be brave when aiming for big outcomes.
MADE IN AUSTRALIA
PAGE 14 APRIL 2004 :: SERIES 4 NUMBER 1
MADE IN AUSTRALIA
SERIES 4 NUMBER 1 :: APRIL 2004 PAGE 15
‘. . . IF YOU CAN PRESENT YOUR PRODUCT IN THE BEST
POSSIBLE WAY, YOU’LL COME OUT IN FRONT’
OUTSOURCINGSKILLS DEVELOPMENT
TOASTING SUCCESS WITH SAKE
TO MANY IN BUSINESS, OUTSOURCING MEANS PAYING A THIRD PARTY TO LOOK
AFTER NON-CORE INTERESTS SUCH AS ACCOUNTING OR MARKETING. BUT THERE
ARE OTHER, MORE CREATIVE WAYS TO OUTSOURCE FOR PROFIT.
ROCKY POINT SUGAR
MILL (W. H. HECK &
SONS PTY LTD)
LOCATION: Woongoolba, QLD,
halfway between Brisbane and
the Gold Coast
PROJECT: Diversification from
traditional sugar processing
NIDP FUNDING: $110,000 PCP
grant for a trial processing
facility for sugarcake to
produce sake for the Japanese
market
10. has certainly helped us focus on that side
of the business,” David enthuses. “We’ve
invested a lot of time in the Japanese
market with this product, and our first
export order will be filled later this year,
out of next season’s cane crop.
“Sugarcake is made from a side-product
of the sugar process, and we see it as an
innovation which is one of our hedges
against volatile world sugar prices.”
As an accountant with a science degree,
David had previously hit on the idea of
diversifying into power generation – using
electricity rather than the traditional steam
for cane processing. After doing due
diligence he took the idea to the Federal
Government and won a $3m Showcase
Grant, which was ‘passed on’ to the
Queensland Government in the form
of a 30MW turnkey cogeneration plant
alongside his sugar mill.
“We run it all year round on cane
waste and other bio-mass renewable waste
products, use the steam and electricity
across our whole product range in sugar
and ethanol production, with the balance
of around 20MW sent into the grid. It’s
owned by the State Government but
operated by us, and is another exercise in
outsourcing beyond our core business.
“We also outsource our maintenance.
Given our small size we don’t have a
large workshop so we have an alliance
with local engineering firms for our
preventative maintenance and any major
specific repair work. Moving from
cumbersome steam processing to smaller,
neater electrically-driven plant has meant
savings in maintenance too. We outsource
computerised monitoring of our plant
and use technical consultants like the
Sugar Research Institute and Prosutech
to ensure the mill always operates at
optimum performance.”
David says the company’s overall
business plan, written in-house, relies on
a very high degree of synergy between
its various businesses. The strategic
directions set across the suite of interests
define the total need for outsourcing.
This way they stay in control of all their
businesses and know what to do in-house
and what to farm out to experts.
“We haven’t used outside consultants so
far on any of our business plans, but we’re
currently talking with some of the major
accounting firms which may be able to
bring some additional expertise into the
business through their experience in the
sugar industry and the related operations
we are now running – particularly the
ethanol business which we feel has a lot of
potential. In fact we’re hopeful of closing
a recent deal to supply 15 million litres of
ethanol to one single customer.
“Ethanol production uses the 70% of
cane that’s made of up water, so we’re
turning waste into a new product. It sits
well with the electricity cogeneration and
keeps our unit energy costs down. Our
waste stream is down because we burn the
cane waste in the cogeneration plant.”
Glean from networks
David gleans ideas from a network of
government and private sector contacts
from around the world, and emphasises it
is very important to keep your eyes open
and learn how to tap into information
from a variety of sources.
“Last year I went to Brazil to look at
ways of further improving the synergy
between our businesses and to Japan to
study better ways of making alcohol.
‘In agronomy we get a lot of help
from the Bureau of Sugar Experimental
Stations (BSES) here in Queensland, and
the CSIRO. We’re working with them at
the moment to determine whether we can
grow one type of cane for alcohol and
another for sugar, while retaining the fibre
content we need to fuel the cogeneration
plant. For technical advice on sugar and
alcohol production we go to the Sugar
Research Institute in Mackay.
“As we’re small, the other mills don’t
see us as a threat so we seek information
from them too and let them know what
we’re doing. I think they sometimes see us
as a sort of a test case for new ideas.
“In our manufacturing we insist that
suppliers understand the applications of
their equipment in the sugar industry
and that all sales are on a turnkey basis
where plant is designed, supplied, installed
and warranted as fit for service for our
application – and that our people are
trained in how to use it.”
David is now instigating a risk
investment and profit sharing scheme for
the more than 100 growers who supply
the mill. “Traditionally they’ve been paid
under a formula that’s linked to the world
price for sugar. What we’re offering them
is a way of sharing in the risk of our other
ventures, with the opportunity of sharing
in the returns. It’s innovative – but that’s
the way we run things at Rocky Point,
based on survival.” ∞
FURTHER CONTACT
David Heck, 07 5546 2422,
davidheckgroup@ozemail.com.au
NIDP, 1300 884 588,
nidp@daff.gov.au
Bureau of Sugar Experimental
Stations, www.bses.org.au
ugar Research Institute,
www.sri.org.au
KEEPING
YOUR KEY
PEOPLE
by Anne Howard*
Imagine a work environment where
people are rewarded for showing initiative
and taking on extra responsibility,
where there is provision made for staff
advancement, where all opinions are
valued and achievements are celebrated
by all who played a part.
In this same workplace there is an
atmosphere of flexibility, trust and
working together with everyone placing
a high value on the corporate processes,
procedures and systems that drive the
business forward.
A utopian dream? No, it can be a reality
for many businesses that take the time to
invest in their people. The old adage
that ‘our workers are our most valued
resource’ still rings true for the majority
of businesses and once again is making a
come back as businesses try to work out
how to keep their key staff.
What CEOs think
It is interesting to learn from the
approach adopted by a number of
successful agribusiness CEOs – in
virtually every case they put a great deal
of effort into ensuring that their important
messages are effectively communicated
and that staff have the opportunity to
communicate with management. At the
end of the day, communication is all
about perceptions and expectations from
both the perspective of the business and
its employees.
Surely it cannot be as simple as
communicating? But it is.
Take the story of Bruce who joined
a brand new food processing business
soon after it began. His background in
the industry was proving invaluable as he
quickly learned the formal quality assurance
processes and systems. The product was so
good it virtually sold itself and the little
factory was becoming very busy.
Everything was going well until a
simple misunderstanding in expectations
and an omission to communicate a
change in routine for that day saw the
factory lose its entire day’s output. It
resulted in an obviously disappointed
owner and an employee who felt so badly
he just wanted to quit.
All of this could have been avoided
if the owner had ensured that Bruce
was aware of the change and the added
responsibility he now carried. The
situation was resolved over a cup of coffee
with both admitting how important it is
to communicate. The owner realised the
mistake was not due to a lack of capability
on Bruce’s part.
How to communicate
People communicate in many different
ways. For example, you can pick up the
telephone to speak directly with someone,
or better still, actually meet them
personally in an office or over coffee.
These two forms of direct communication
provide the participants the opportunity to
tailor their messages to meet the occasion,
as well as providing immediate feedback.
Other forms of communication include
email, intranet, memos, staff circulars as
well as formal meetings and informal
gatherings. In a similar fashion, the office
manual should set out the corporate
policies, procedures and systems that
all employees are expected to follow,
although this assumes that people will
read and value the stated policies.
It is also important to understand that
communication is not just one-way but
a highly interactive process that requires
your full attention and that of the person
or people you are trying to communicate
with.
In the end, our attitudes and behaviour
generally get back to good communication.
When there is open communication,
it is easier to provide a more flexible
workplace, one which supports people
and in turn generates commitment to the
business objectives. ∞
* Anne Howard, BA (Comm), MPRIA, is a
director of Howard Partners and an expert in
communication and relationship management.
Over the years she has worked extensively with
SMEs and advised management and boards in
relation to internal communication, reputation
management and corporate positioning. Her
contact details: 02 6273 5222,
anne@howardpartners.com.au
A UTOPIAN
DREAM? NO, IT
CAN BE A REALITY
AIM TO
§ Have sound policies, processes
and systems in place that are
well understood.
§ Ensure your people understand
and respect your corporate
culture and values.
§ Provide a safe and clean
workplace.
§ Provide a flexible family friendly
environment.
§ Show respect and appreciation.
§ Listen to people - encourage
their ideas and opinions.
§ Promote an environment where
people can use their initiative.
§ Recognise people’s
commitment.
§ Share the accolades as well as
the trials.
§ Remunerate properly, with
increases for responsibilities.
§ Nip any grievances in the bud
early – proactively address areas
of concern.
§ Make time for people – provide
opportunities for people to
interact informally such as at
weekly social gatherings.
§ Keep communicating.
Further reading: “Love ‘em or Lose
‘em – Getting Good People to
Stay” by Beverley Kaye and Sharon
Jordan-Evans, published by Berrett
Koehler.
THE ART OF COMMUNICATION
Cane waste is utilised to run the mill’s cogeneration plant.
MADE IN AUSTRALIA
PAGE 16 APRIL 2004 :: SERIES 4 NUMBER 1
MADE IN AUSTRALIA
SERIES 4 NUMBER 1 :: APRIL 2004 PAGE 17
OUTSOURCING
THE STRATEGIC DIRECTIONS SET ACROSS THE
COMPANY’S SUITE OF BUSINESSES DEFINE THE TOTAL
NEED FOR OUTSOURCING
‘THE IMPORTANT THING IS NEVER TO LET AN
OPPORTUNITY GO BY’
11. profitability. The market demands year-
round supply yet there’s a squeeze between
rising production costs and lower returns
due to over-supply of the market in spring;
the ‘natural’ season for asparagus.
Microwave Magic – 2 Minute
Asparagus, which is at the forefront of
vegetable retailing technology, seizes on
the demand for fresh products that have
extended shelf life and require minimal
– in this case zero – preparation. It is
microwaveable off-the-shelf.
Minter Magic already supplies fresh
asparagus for 10 months of the year - by
growing a range of varieties in different
soil types and in different growing areas
- instead of only a few weeks in spring.
Robin says the new product, the first
of its type in the world, will enable the
family to provide asparagus to Australian
supermarkets 52 weeks of the year.
There is also the export potential to
consider. Currently Australian fresh
asparagus generates $40 million a year in
export income.
The path to success has been one of trial
and error. That’s not uncommon, but the
most testing experience was trying to find
a mentor and advisor to help guide the
business in the quest for innovation and
growth.
For Robin Minter and his wife Andrea,
who run Fresh Concepts Corporation, an
offshoot of the family enterprise Minter
Magic, the experience has convinced
them there is no place for sentiment when
selecting advisors, and the easiest option is
seldom the best.
What they needed to ensure success of
their project, they eventually realised, was
the best advisor for each key facet of their
operation; the best patent attorney, the
best accountant, and so on, rather than the
most convenient or easiest to access.
Develop empathy
However, there is one area where it
is essential to have a close synergy and
empathetic understanding.
“Your lawyer must relate to your
accountant. If they don’t think along the
same lines you will get conflicting advice
and you will find you are paying other
consultants to adjudicate on what they
are telling you and help you decide what
course to follow,” Robin said, ruminating
on his own experience.
Robin, his brother Darren, their families
and their parents Geoff and Betty, who
trade as Minter Magic, grow about 72
hectares of asparagus and pack produce
from another
30 hectares grown by
other producers.
Fresh Concepts Corporation, which is
developing “Microwave Magic – 2 Minute
Asparagus,” will operate as the processing
arm of Minter Magic.
Robin and Andrea believe Microwave
Magic, a farm-to-fork product designed to
be cooked without opening the pack, will
make asparagus the ultimate convenience
vegetable and significantly expand the
market for the family business.
The idea for it was sparked by repeated
queries from consumers in Australia and
overseas about how to cook the vegetable
fresh, together with a rapid rise in
consumer demand – and willingness to pay
a premium – for high-convenience foods.
Robin and Andrea took the view if they
could capture these consumer preferences
it would give them an edge and maintain
MENTORINGMENTORING
MEASURING MENTORS
It cost Robin and Andrea Minter considerable
time and a lot of money before they realised
there is no relationship between the size of a
consultant’s fee and the quality of the service
rendered.
It took them about the same time to realise
they needed to pull no punches when deciding
whether or not to use a consultant; no matter
how intimidating the person or the fee may be.
That process involves questioning what the
prospective consultant can or can’t do or
provide, and frequently telling them they didn’t
have the knowledge or capability required.
OBJECTIVE APPROACH
Andrea and Robin’s experience demonstrated
you must not apply subjective judgement when
choosing an advisor, but take an objective,
measurable approach. And they discovered
there was not one single consultant or mentor
who could help steer their business.
The challenges have been so diverse and
specialised they had to find a team of
consultants/mentors who they could draw on
as needs dictated, and who they also use as a
sounding board for new concepts.
Among other lessons learnt was that you don’t
get the best return from selecting advisors who
are the most convenient or easiest to access.
While they initially looked for advisors and
consultants in their Sunraysia district, the input
they required, particularly in interactive film
technology and intellectual property protection,
was simply not available locally.
THEIR FIRST MENTOR
One of their first – and most important –
mentors was the NIDP team. The assistance and
feedback provided by their NIDP project officer
facilitated them in preparing a more competitive
and ultimately successful application second
time round.
Robin feels they wouldn’t have been able to
continue without the NIDP grant to develop
their pilot plant and supply chain, with the
confidence boost almost as important as the
funds.
“The money was important – the amount of
money required to develop a product like ours is
frightening - but being able to convince NIDP we
knew how to get to our goal was very important
to us.
“Winning the grant helped give us the
confidence to continue because someone else
felt the idea was worth supporting.
“There is a variety of sources of support available
for new businesses. The key to success is to find
the source that fits your project and stage of
development, find out what that source offers,
and present your application in the way required
by that organisation or program.
“Three or four years ago the appropriate grant
for us would have been for R&D, not start-
up funding for a pilot plant and supply chain
development.”
Other sources of support and information
included regional development boards,
which get a lot of assistance from Regional
Development manager Jenny Garronne, and
Craig Urand, from Austrade, who are based in
Mildura. Austrade has facilitated negotiations
with government authorities and potential
buyers in Japan and elsewhere in Asia.
Networking opportunities through involvement
in NIDP events and courses also have proved of
significant benefit to Robin and Andrea. ∞
FURTHER CONTACT
Robin and Andrea Minter,
03 5029 1518,
minterra@hotkey.net.au
NIDP, 1300 884 588,
nidp@daff.gov.au
IN FOCUS
THE BUSINESS STRATEGY
Prove commercial value of the
company’s processing innovation
through use of a pilot plant.
ACTION STEPS
• In the early phase particularly,
sought professional advice/
services to construct mind
mapping activities: to plan/plot/
link/prioritise all aspects of the
project.
• Pursued NIDP funding until
successful – first application
was unsuccessful.
• Made many visits to Melbourne
for professional advice
(recognising that all the
expertise required was not
available locally).
OUTCOMES
• To have pilot plant in full
production by September
2004 (in peak spring asparagus
season).
• Commence exports to Japan by
2006.
• Have gone from zero to 200
tonnes of new product in first
year of processing.
LESSONS LEARNED
• Remain focused on target, learn
from negatives, learn from
change.
• “Build” a team of mentors,
advisors, legal advice, etc.
• Move on if something/someone
is not right.
A VICTORIAN FAMILY BUSINESS THAT HAS BEEN INSTRUMENTAL
IN EXPANDING THE ASPARAGUS SEASON FROM A FEW WEEKS
IN SPRING TO ALMOST YEAR-ROUND IS ABOUT TO LAUNCH A
WORLD FIRST FOR THE FRESH-CUT VEGETABLE – A PURPOSE-
DESIGNED MICROWAVEABLE PACK.
Above: In consultation – Andrea and Robin Minter (left) with Austrade
regional manager Craig Urand, and family member Darren Minter.
MADE IN AUSTRALIA
PAGE 18 APRIL 2004 :: SERIES 4 NUMBER 1
MADE IN AUSTRALIA
SERIES 4 NUMBER 1 :: APRIL 2004 PAGE 19
FRESH CONCEPTS
CORPORATION PTY LTD
LOCATION: Iraak, 30km
south of Mildura, in Victoria’s
Sunraysia district
PROJECT: Develop Microwave
Magic - 2 Minute Asparagus
NIDP FUNDING: $110,000
to build a pilot plant to
commercialise the product and
supply chain development
A TESTING EXPERIENCE
FOR “MAGIC ASPARAGUS”
12. Geoff Moller, SBAO Sunshine Coast
and Hinterland, Sunshine Coast Area
Consultative Committee, Queensland,
sbao@scacc.com.au:
KEY SOURCES OF HELP
Q: Where can you go to find out
more about starting a business?
A: Starting a new small business for the
first time can be a fretful task, that’s
one of the reasons why the Small Business
Answers Program initiative was begun by the
Australian Government – to provide local, face
to face, grass roots support for small, micro and
home based businesses.
As a Small Business Answers Officer I can help
put you in contact with all the right areas to
get you started, including the local business
registration office, Australian Taxation Office
(ATO), and State Government and local councils
for any special licenses or permits.
The local State Development (SD) office is
also a great place as it runs a number of key
seminars and workshops such as ‘Business
Planning,’ ‘Small Business Start Up’ and ‘Effective
Promotions’ aimed at people new to business.
SD provides some vital knowledge on starting
and running your own enterprise.
The first place I would visit on the Internet is
www.business.gov.au – it is a great source of
information with links to register a business and
includes access to the ATO.
DEALING WITH GST
Q: How do you register for the
goods and services tax?
A: The first step is to obtain an ABN
(Australian Business Number). That
creates a business entity for the relationship
with the ATO. You then can register for the GST
with the ATO either online at www.ato.gov.au
or by phoning 13 28 66. Businesses with a
turnover below $50,000 are not required to
register for this tax.
The ATO has some great new publications; the
three main ones I like are:
• Tax basics for small business
• Record keeping for small business
• Guide to GST for small business.
FUNDING EXPANSION
Q: Do you need money to expand
the business; how can the
Government help?
A: The main sources of funding to expand
a business are usually banks, finance
companies or other investors such as venture
capital fund companies. Sometimes people can
find enough money through friends, family or
wise temporary use of credit cards.
Having said that, you may be eligible to access
one of the many programs the Australian
Government has put in place to assist
businesses with new or innovative ideas. The
first place to visit in searching for possible
funding is www.grantslink.gov.au, a one-stop-
shop reference to the programs and initiatives
of all the different Government departments.
An example of how to use this site: One of the
popular offerings by AusIndustry is the R&D
Start program, so in the search window you
would enter ‘R&D Start’ and press enter – that
finds 8 results, the fifth one from the top is
‘Research and Development (R&D) Start (Grants
and Loans).’ Once you select that, a summary
page with a short description appears and you
can see if the program fits your requirements.
This type of quick search allows you to use key
words to view many different possibilities easily
and efficiently. When you find a particular
program you are interested in, simply click on
the website link.
Jeanie Hall, SBAO, North Eastern
Victoria Area Consultative Committee,
sbaonev@bigpond.com.au:
HOW TO MERIT GOVERNMENT
FUNDING
Q: Tell me which forms to fill in to
get some government money?
A: It is not really about form filling. Seeking
government grant support requires the
same diligence and preparation as if you were
doing your homework to approach your local
bank. Some pointers to guide you are:
• Develop a clear definition of what it is you
need to have funded. (If your development
is innovative you will also need to consider
very early how you present your idea and
protect intellectual capital by contacting IP
Australia on www.ipaustralia.gov.au.)
• You could also contact your local SBAO or
AusIndustry regional manager and start
researching. The SBAO will direct you
through a range of Australian Government
portals and web sites to determine if
there are any relevant programs. Check
Grantslink (www.grantslink.gov.au), the
Business Entry Point (www.business.gov.au),
Commonwealth Regional Information Service
(www.regionalaustralia.gov.au), and the local
Area Consultative Committee operation
(www.acc.gov.au).
Dependent on many factors your research
may in fact demonstrate that non-government
venture capital or a business angel (friendly
investor and supporter) is an option. Also
consider that philanthropic groups often are
THE NEED TO KNOWTHE NEED TO KNOW
www.grantslink.gov.au
MADE IN AUSTRALIA
PAGE 20 APRIL 2004 :: SERIES 4 NUMBER 1
MADE IN AUSTRALIA
SERIES 4 NUMBER 1 :: APRIL 2004 PAGE 21
a useful source of support, particularly ‘The
Foundation for Rural Regional Renewal’, at
www.frrr.org.au.
Recognize that all these avenues are highly
competitive so you will need to prepare a very
well-defined business case and business plan.
If your project is some sort of product, clearly
identify the market for your product and supply
chain strategies. Regardless of the project’s
nature, stay flexible about how you get there.
And never lose enthusiasm!
There is some good news if your need of
assistance is to do with technology. Industry
TechLink is a free service giving impartial,
confidential and expert support to people in
small business.
It regularly produces a very interesting
e-newsletter and can be contacted on 1800
111 485 or at www.industrytechlink.gov.au.
THE COMPLEXITY OF MARKETING
Q: What are the ifs, buts and how of
marketing?
A: Marketing is one of the most critical
aspects of any business plan. A
common misconception is that it is simply
about promoting your business. At its highest
level, marketing is a complex science delivering
extraordinary results.
Marketing consultants can earn you a great
deal more than their fee with a sound, well
maintained plan. It is up to you to decide what
your needs are, and regardless of whether you
choose to engage a consultant, my advice
is that it is never too soon to gather market
intelligence. There’s no rocket science involved,
just the discipline of proactively sourcing what
you need to know.
At the DIY end‚ one of the simplest ways is to
talk to the people with whom you are doing or
want to do business. Do you know who your
customers are? Take the time to identify where
your business is coming from. The results may
give you direction as to how to contact those
people/markets most suited to your product
or service. Ask your clients how they heard
about you or what attracted them to your
business. Look closely at what your business
supplies. Does its image match with the type of
clients you are targeting? Conversely have you
targeted the correct market?
Plenty of reference material is available in
book shops, on the Internet and through
business coaches or mentors, for developing a
marketing plan. The Department of Agriculture,
Fisheries and Forestry has released a fantastic
new CD (similar in approach to the one titled
Supply Chain Workshop) which will assist
people in putting together their marketing
plan. (See the inside front cover for how to
receive a copy.)
Today’s technology offers enormous
opportunity for marketing as well as gathering
and storing information, but take care to
ensure laws governing privacy issues are
observed. If you feel your product or service
might be ideal for promotion using the
Internet, the National Office of Information
Economy has produced an excellent
e-commerce guide that takes people through
the process.
Among other marketing avenues, you can
consider participating in expos, field days and
shows. More traditional media presence may
suit you more. Given the cost of any form of
marketing promotion, the evaluation of your
actions is important to determine if you have
got it right.
Kathy Brown, SBAO, Great Southern Area
Consultative Committee, Albany, WA,
sba@albanyworking.org.au:
ROUND PEG FOR A ROUND HOLE
Q: How do you choose the right
person for the job
A: Careful planning. Make sure you have
an accurate job description for the
position and state if specific qualifications or
training are required. Write a clear, concise ad.
When assessing short-listed applicants, check
the references and qualifications given and
ask for help if you are unsure of the interview
process.
Recruitment guides are available from the
local library, book shop or training provider,
and some information is available online. If you
do not have the time to devote to this very
important aspect of your staff selection there
are agencies you can use – look under the
employment section in the local yellow pages
directory.
Communication is the key to successful
selection, recruitment and induction. You need
to provide a job description at induction, listing
all tasks expected of the newcomer, especially
if it is a junior with no previous job experience.
It is important to include the “yucky” bits, like
washing the dishes, making coffee, mopping
the floor, dusting the shelves and being
the gofer, if this is what you expect of your
employee.
There are training courses for owners and
managers through training providers such
as TAFE colleges. Alternatively contact your
local Chamber of Commerce or industry
organisation to inquire about any educational
training programs they may offer.
Alison King, SBAO, Riverina Area Consultative
Committee, Victoria, sbao@racc.org.au:
TAKING ON A NEW EMPLOYEE
Q: What should be done when
taking on a new staff member?
A: The main actions are:
• Notify the ATO in order to register for tax
withholding. This can be done online at
www.ato.gov.au or by completing an “Add a
New Business Account” form 2954 by calling
13 28 61.
• Establish the Award, Federal or State, your
employee will come under, so that you pay
the appropriate wage. Contact your state’s
department of labour or industrial relations.
• Check if a new apprenticeship scheme is
an option, where government assistance
may be available. Contact the New
Apprenticeships Hotline on 1800 639 629.
• Have your new employee complete a ‘Tax
File Number’ Declaration, forwarding the
original to the ATO and keeping the copy for
your records.
• Place the new employee under Workcover
insurance – this is a legal requirement for
any business with employees.
• Ensure you comply with the national
Superannuation Guarantee Levy, by making a
superannuation contribution currently 9% of
the employee’s gross wage. ∞
ANSWERING THE RIGHT QUESTIONS
The Small Business Answers
Program is an Australian
Government initiative run through
Ausindustry. There are 56 SBAOs
covering regional Australia who
are part of a national forum of
Area Consultative Committees,
which create and maintain cross
regional networks with all levels
of government and are funded
under the Regional Partnerships
Program:
www.regionalpartnerships.gov.au
FOR MANY SMALL TO MEDIUM BUSINESSES ACCESSING INFORMATION AND ASSISTANCE
CAN BE DAUNTING; OFTEN IT IS ABOUT KNOWING THE RIGHT QUESTIONS TO ASK.
HERE, AUSINDUSTRY-FUNDED SMALL BUSINESS ANSWERS OFFICERS (SBAOS) FROM
ACROSS AUSTRALIA PRESENT QUESTIONS AND ANSWERS ON FUNDAMENTAL ISSUES
CONCERNING EMERGING AND ESTABLISHED BUSINESSES.
13. Australian Government
Departments and
Agencies
Department of Agriculture, Fisheries
and Forestry
02 6272 3933, www.daff.gov.au
New Industries Development Program
1300 884 588, www.daff.gov.au/agribiz
Agriculture Portal
www.agriculture.gov.au
Austrade
13 28 78, www.austrade.gov.au
Australian Bureau of Agriculture &
Resource Economics
02 6272 3933, www.abare.gov.au
Australian Bureau of Rural Sciences
02 6272 3933, www.brs.gov.au
Australian Bureau of Statistics
1300 135 070, www.abs.gov.au
Australian Competition and Consumer
Commission
02 6243 1111, www.accc.gov.au
Australian Customs Service
1300 363 263, www.customs.gov.au
Australian Pesticides & Veterinary
Medicines Authority
02 6272 5852, www.apvma.gov.au
Australian Taxation Office
13 28 66, www.ato.gov.au
Australian Quarantine and Inspection
Service
02 6272 3933, www.aqis.gov.au
Business Entry Point
www.business.gov.au
Department of Employment and Work
Place Relations
02 6121 6000, www.dewr.gov.au
Department of Environment and
Heritage
02 6274 1111, www.deh.gov.au
Department of Foreign Affairs and
Trade
02 6261 1111, www.dfat.gov.au
Department of Industry Tourism and
Resources
1800 024 095, www.industry.gov.au
Department of Transport and Regional
Services
02 6274 7111, www.dotars.gov.au
Food Standards Australia New Zealand
02 6271 2222,
www.foodstandards.gov.au
Grants Link
www.grantslink.gov.au
IP Australia
1300 65 1010, www.ipaustralia.gov.au
The Ministerial Council on Consumer
Affairs
www.consumer.gov.au
Industry Representative
and Research
Organisations
Agrigate
www.agrigate.edu.au
Dairy Australia
03 9694 3777,
www.dairyaustralia.com.au
Fisheries Research and Development
Corporation
02 6285 0400, www.frdc.com.au
Food Science Australia
02 9490 8333,
www.foodscience.afisc.csiro.au
Foret and Wood Products Research and
Development Corporation
03 9614 7544, www.fwprdc.org.au
Grains Research and Development
Corporation
02 6272 5525, www.grdc.com.au
Grape & Wine Research & Development
Corporation
08 82730500, www.gwrdc.com.au
Horticulture Australia Ltd
02 8295 2300,
www.horticulture.com.au
Meat and Livestock Australia
1800 023 100, www.mla.com.au
Rural Industries Research &
Development Corporation
02 6272 4539, www.rirdc.gov.au
State Government
Departments and
Agencies
Australian Capital Territory:
Business ACT
1800 244 650,
www.business.act.gov.au
New South Wales:
NSW Agriculture
02 6391 3100, www.agric.nsw.gov.au
Department of State and Regional
Development
02 9228 3111,
www.business.nsw.gov.au
Northern Territory:
Department of Business, Industry and
Resource Development
www.nt.gov.au/dbird/dpif
Queensland:
Department of Primary Industries
07 3404 6999, www.dpi.qld.gov.au
Department of State Development
07 3225 1915, www.sd.qld.gov.au
South Australia:
Department of Primary Industries and
Resources
www.pir.sa.gov.au
Food for the Future
08 8226 0585, www.food.sa.gov.au
Tasmania:
Department of Primary Industries,
Water and Environment
03 6233 6496, www.dpiwe.tas.gov.au
Department of Economic Development
1800 030 688,
www.development.tas.gov.au
Victoria:
Business Victoria
13 22 15, www.business.vic.gov.au
Department of Primary Industries
136 186, www.dpi.vic.gov.au
Food Victoria
www.food.vic.gov.au
Western Australia:
Department of Agriculture
08 9368 3333, www.agric.wa.gov.au
DIRECTORY OF CONTACTS
WHERE TO GO
For your free subscription or
to order back copies of Made in Australia,
phone 1300 884 588 (for the cost of a local call)
or email nidp@daff.gov.au
