September 2011 E-News

12 Ways Others Can Generate Referrals for Your Business

By Ivan R. Misner - the founder of BNI & “the father of modern networking”
How many times have friends, family, and associates said, "If there's anything I can do to help you, let me know"? How often have you said, "Well, now that you mention it, there are a few things you could do." If you're like most people, you aren't prepared to accept help the moment it's offered. You let opportunity slip by because you haven't given enough thought to the kinds of help you need. You haven't made the connection between specific items or services you need and the people who can supply them. But when help is offered, it's to your advantage to be prepared and to respond by stating a specific need.

Don't let the next opportunity for others to help slip through your fingers! Being prepared with some simple requests can make a real difference in the success of your business. Systematic referral marketing requires that you determine, as precisely as possible, the type of help you want and need.

There are many ways your sources can help you promote you and your business by generating referrals. Here are 12:

1. Provide you with referrals - The kind of support you most want from your contacts is referrals—the names of specific individuals who need your services. They can also give prospects your name and number. As the number of referrals you receive increases, so does your potential for increasing the percentage of your business generated through referrals.
2. Introduce you to prospects  - Your contacts can help you build new relationships faster by introducing you in person to people they think need your services. Furthermore, they can provide you with key information about the prospect. They can also tell the prospect a few things about you, your business, how the two of you met, some of the things you and the prospect have in common, and the value of your services.
3. Arrange a meeting on your behalf - When your contacts tell you about a person you should meet, they can help you immensely by coordinating a meeting. They can help even more by setting up and attending the meeting.
4. Invite you to attend events - Workshops and seminars are opportunities for you to increase your skills, knowledge, visibility, and contacts. Members of groups you don't belong to can invite you to their events and programs. This gives you an opportunity to meet prospective sources and clients that you wouldn't normally be in contact with.
5. Endorse your services - By telling others what they've gained from using your services in presentations or informal conversations, your sources can encourage others to use your services.
6. Display your literature and products in their offices and homes - If these items are displayed well—such as on a counter or bulletin board in a waiting room—visitors will ask questions or read the information. Some may take your promotional materials and display them in other places, increasing your visibility.
7. Distribute your information - Your contacts can help you distribute marketing materials. For example, if they publish a newsletter, they can include a flier for you or your business in it.
8. Make an announcement - When attending meetings or speaking to groups, your contacts can increase your visibility by announcing an event you are involved in or a new service your business provides. They can also invite you to make an announcement.
9. Nominate you for recognition and awards - Business professionals and community members are often recognized for outstanding service to their profession or community. If you've donated time or materials to a worthy cause, your contacts can nominate you for relevant service awards. You increase your visibility both by serving and by receiving the award in a public expression of thanks. Your sources can pass the word of your recognition by word of mouth or in writing.
10. Follow up with referrals they have given you - Your sources can contact prospects they referred to you to see how things went after your first meeting, answer their questions or concerns, and reassure them that you can be trusted. They can also give you valuable feedback that can help you close a deal with the prospect.
11. Serve as a sponsor - Some of your sources may be willing to fund or sponsor a program or event you are hosting. They might let you use a meeting room, lend you equipment, authorise you to use their organization's name, or donate money or other resources.
12. Publish information for you - Your contacts may be able to get information about you and your business printed in publications they subscribe to and in which they have some input or influence. For example, a source who belongs to an association that publishes a newsletter might help you get an article published or persuade the editor to run a story about you.

Keep this list with you and add to it as other needs occur to you. Knowing how to match your needs with the right sources is the key to obtaining the type of help you need. You'll be amazed how much easier it is to spot opportunities and find sources of support. You'll also be better prepared to respond when someone says, "Let me know if there's anything I can do for you."

But remember—it's a two-way street. These support activities are also things you can do to help your contacts promote their businesses and generate referrals. Helping your sources achieve their goals goes a long way toward building effective and rewarding relationships.

Finally, it's good practice to develop a list of ways to reward referral sources for helping you. Once a referral has become a client, be sure to recognize and reward your source appropriately. Doing so encourages them to send you more referrals.

Small Business in Australia to Benefit from Tax Law Amendments

The Assistant Treasurer, Mr Bill Shorten, has recently released Exposure Draft legislation and explanatory materials which amend the small business depreciation rules.

These proposed amendments follow announcements made by the Government in response to the Australia's Future Tax System Review, the Clean Energy Future package and the 2011-12 Budget.  They are intended to apply from the 2012-13 income year.

Specifically, under these amendments, small businesses will be able to:

• write-off depreciating assets costing less than $6,500 in the income year in which they start to use the asset, or have it installed ready for use, for a taxable purpose. This amount is increased from the current amount of $1,000.
• allocate depreciating assets costing $6,500 or more to the general small business pool to be depreciated at a rate of 15% in the year of allocation and 30% in other years irrespective of the effective life of the asset (currently, small businesses allocate assets to two different depreciation pools).
• claim up to $5,000 for motor vehicles acquired from the 2012-13 income year.

In addition, the Exposure Draft also puts in place amendments to abolish the entrepreneur's tax offset from the 2012-13 income year.  

Superannuation: One-off relief for Breaching Concessional Contributions cap

The Assistant Treasurer has announced changes a relief measure for individuals who breach their concessional contributions cap for the first time by up to $10,000. The concession provides some flexibility for accidental breaches of the cap.

Under the changes, individuals who breach their concessional contributions cap by up to $10,000 for the first time will have the option to have the excess contributions refunded to them. The refunded contributions would be taxed at the individual’s marginal rate of tax rather than triggering excess contributions tax. Excess concessional contributions are taxed at 31.5% in addition to the 15% tax when contributions are initially made to the fund.

Car and travel expenses

'Work-related car expenses' and 'work-related travel expenses' are expenses you incur in the course of performing your job as an employee.

The deductions include the cost of trips between your home and your workplace if:

• you used your car because you had to carry bulky tools or equipment that you used for work and could not leave at your workplace (for example, an extension ladder or cello)
• your home was a base of employment (that is, you started your work at home and travelled to a workplace to continue your work for the same employer); or
• you had shifting places of employment (that is, you regularly worked at more than one site each day before returning home).

Work-related car and travel expenses also include the cost of trips:

• between two separate places of employment (for example, when you have a second job)
• from your normal workplace to an alternative workplace while you are still on duty and back to your normal workplace or directly home; or
• from your home to an alternative workplace and then to your normal workplace or directly home (for example, if you travel to a client's premises to work there for the day).

If the travel was partly private, you can claim only the work-related part.

You cannot claim normal trips between your home and your workplace, even if:

• you did minor work-related tasks at home or between home and your workplace
• you travelled between your home and workplace more than once a day
• you were on call
• there was no public transport near work
• you worked outside normal business hours
• your home was a place where you ran your own business and you travelled directly to a place of employment where you worked for somebody else.

You need to follow the above principles when preparing a log book or diary for your car.  One of the most common methods of claiming a deduction for car expenses is by using the cents per kilometre method.

What is the Cents per Kilometre Method?

You can use this method to claim up to a maximum of 5,000 business kilometres per car even if you have travelled more than 5,000 business kilometres. For example, if you travelled 5,085 business kilometres, you can only claim the cost of travelling 5,000 kilometres with this method.

You do not need written evidence but you may need to be able to show how you worked out your business kilometres.

Rates per business kilometre (2010-2011 year)
Engine capacity    
Ordinary car                                                               Cents per kilometre
1600cc (1.6 litre) or less                                                   63 cents
1601cc - 2600cc   (1.601 litre - 2.6 litre)                         74 cents
2601cc (2.601 litre) and over                                            75 cents

Rotary engine car
800cc (0.8 litre) or less                                                      63 cents
801cc - 1300cc  (0.801 litre - 1.3 litre)                             74 cents
1301cc (1.301 litre) and over                                            75 cents