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In the past, the only industries concerned with copyright were the publishing and media industries. However, digital communications and the internet have made copyright a concern for every industry and every business. “End-user agreements in online media also mean that copyright affects consumers more than previously,” says Fiona Phillips, executive director of the Australian Copyright Council.

The availability of content – such as the news – for free online has changed people’s expectations. “Not so long ago, if you wanted to read the newspaper, you bought a copy from the newsagent or had it delivered to your home,” says Phillips. “Now, we read the news online, because it’s free and easily accessible. We’re willing to pay for hardware and an internet connection, but we’re less willing to pay for actual content. People want what they want, they want it for free and they want it now. They may infringe copyright without considering the creators’ ability to earn a living.”

The digital medium has also made it far simpler to copy and reproduce content. “People can make perfect copies and the scale of copyright infringement is greater,” says Phillips.

Establishing and protecting copyright

Phillips says that people are concerned about how to protect their work and also how to prove that they created something – the downside of not having a registration system for copyright. “Proving that you are the creator is a matter of documenting it, so you have something to show and tell if you’re challenged,” she says.

A lack of contracts, documentation and copyright planning on the part of businesses is something the Copyright Council has witnessed on many occasions. If nothing is formalised and there is a falling out with a content creator or a business partnership dissolves, it can be unclear who owns what. In some instances, copyright can reside with a supplier, rather than the business that commissioned the content, website design or photography.

Copyright contract tips

Phillips says that it’s important to set out in a contract who owns what, what uses are covered and what uses could happen, subject to an additional fee. “Businesses such as photographers want to give you
a competitive price, so they may quote low, covering the minimum usage. If you want an exclusive licence or comprehensive rights,
you will pay more,” she says.

Being able to use content is not the same as owning the copyright.
For instance, if you hire a website developer to create a business website, it’s fair to assume that you will have the right to use the site. However, copyright also lies in the computer program, so you may want to request the code and the source files in your contract, in case you ever want to move to a different website developer.

Phillips adds that investigating copyright and getting the correct contract or licence are critical if you are developing campaigns or projects. “If you have a particular image or song in mind, find out how to acquire suitable copyright for its use early on in the process or have alternatives so the project doesn’t stall if you can’t secure the content you want.”

Protecting your copyright

It is up to you to police copyright infringements. Luckily, it’s as easy to find out who is using your content without permission as it is to find images and content online in the first place. For example, you can use TinEye to do a reverse search for images being reproduced illegally.

If you discover a copyright infringement, Phillips says that what you do depends on the circumstances and what you want to get out of it. It’s not advisable to make accusations, as part of the copyright legislation addresses groundless threats.

If your content is on a social platform like YouTube or Facebook, they have notice and take-down procedures you can follow. If an individual or company uses your images, you can send them a letter stating that you’ve seen they are using your copyrighted material and asking them to remove the item and let you know when it’s been done. Alternatively, you might want to come to a commercial licensing arrangement.

“If you have lost income because of a copyright infringement or the usage has brought your name or brand into disrepute, you may have to take them to court,” says Phillips. “In this instance, while you don’t have to use a lawyer to write a letter of demand, it may be the most efficient way to do it in the long term, as a letter of demand on a legal letterhead elicits a different response. If it’s your reputation or your livelihood, it’s worth spending $1,000 to $2,000 to use a lawyer.”

Disclaimer: This information is provided as a general overview of copyright law and is not intended to constitute legal advice. You should seek independent legal advice before relying on the information provided.

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Growth in sales of experiences rather than products and merchandise has been phenomenal. The success of companies such as RedBalloon and Adrenalin shows there are plenty of people prepared to put their money into having a rollicking good time.

How have they tapped the market so brilliantly?

Experience marketers have pitched heavily to gift-givers. In a market abundant with unwanted gifts, an experience presents the perfect solution for gift-givers: the gift of happiness.

The value of partnerships

If you are a small business selling experiences, there may be benefits in partnering with a well-known experience e-retailer, in return for a split in the proceeds or a set fee. Victorian operator Global Ballooning looked at the pros and cons before signing up.

“Global Ballooning believes that it is important to build relationships with other organisations,” explains sales and marketing coordinator Kate Fraresso. “This approach allows us to have brilliant exposure to our target market (not only in Australia but worldwide). In addition, it assists with alternative booking options for our passengers and gives us the opportunity to work with the tourism industry.”

Apart from the increased profile, partner sites may also take care of details like promotions and web design. “RedBalloon and global tour supplier Viator run exclusive offers in conjunction with us,” says Fraresso. “All we have to do is supply the information and all formatting and imagery is finalised by these umbrella organisations.”

What sells an experience?

Whether you work with a partner or go it alone, the leaders in the experience market make sure the gift-giver feels confident about the purchase decision. They have turned the online “click-to-cart-click-to-register” transaction into a feel-good experience for the buyer.

All the website images convey fun, adventure and good times. Whatever the activity, the images depict experiences that are memorable and out of the ordinary. Fraresso says that powerful imagery works very well in selling flights. “Ballooning is a very visual experience and imagery works best on our website,” she says.

The descriptions flesh out the initial visual impressions, painting a picture of hair-raising thrills, ultimate relaxation or unforgettable moments. “Our customers need and want a lot of information, too,” says Fraresso. “We are very up front about our product and how it works.”

Experience marketers also make the online purchase easy, using good site navigation to help customers find the perfect present. Gift-givers can often browse by price point, experience, location or occasion.

Customers are encouraged to provide feedback and ratings of their experiences. The liberal use of these testimonials helps assure future buyers that they are making the right gift choice.

Managing redemptions

Purchasers receive a gift voucher in either electronic or printed form, to give to the recipient. Most vouchers are valid for 12 months, and the terms, conditions, exchange and cancellation policies should be clearly communicated on both the website (prior to purchase) and the voucher.

In the case of Global Ballooning, Fraresso says their large number of hot air balloons and commercial pilots means customers with vouchers have plenty of opportunity to fly within 12 months. However, the company will also extend voucher life. “If a customer’s first flight is cancelled due to bad weather, we’ll extend the voucher by 12 months from the date of cancellation,” she explains.

Repeating the thrill

Immediately after the exhilaration of the experience is obviously a very good time to approach customers about a repeat purchase – but a follow-up email or mail approach a month or so later may also be very effective.

For example, Global Ballooning has a high-flyer discount for repeat passengers. “At the end of each of our flights, all passengers are given a leaflet with details of how they can redeem the discount for their next flight,” explains Fraresso. A first-timer can return for “a luxury accommodation package and five-star Yarra Valley experience,” she says.

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Hazel Clarke’s own West Highland White Terrier, Mackie, modelling a Hamish McBeth kilt and matching bow tie.

In 2005, Hazel Clarke started a small online business from her garage, selling luxury pet accessories. Her brand – Hamish McBeth – is now established in 30 countries worldwide. Here, Clarke shares her recipe for e-commerce success.

1. What led to the establishment of Hamish McBeth?

We were travelling to the Philippines a lot for business and I noticed that there was a very established leather industry there, ranging from tanneries to luxury goods manufacturers. I love dogs, so I decided to test the luxury end of the pet industry by setting up an online store selling leather collars and leashes. The factory we used was making Ralph Lauren accessories and our dog products.

2. How did you come up with the concept of luxury pet accessories?

I noticed there was a lack of real leather pet accessories available in pet shops. I wanted to start making contemporary designs and create a collection. Our intention was to sell leather pet accessories; however, retailers and online customers who loved our quality kept asking if we could make coats, jumpers, pyjamas and so on, as the quality of available goods was generally poor. For instance, pure wool dog jumpers did not exist.

3. What challenges have you had to overcome?

A brand is a promise, an experience and a memory. If your product fails you, then so does your brand. Getting manufacturing right is imperative. Whatever can go wrong will go wrong. You just have to anticipate problems and try to avoid product failure.

4. What was your big breakthrough?

Our biggest breakthrough was selling to Harrods in London. Who doesn’t want to have their products in the most famous department store in the world! It was the perfect endorsement. Even Mr Al-Fayed himself bought six of our wool jumpers for his dogs.

5. Tell me a bit about your customers.

Our typical online customer is a woman aged 40 plus and her typical spend ranges from $60 to $150. Even though we cater for all sizes of dog, the purchase is normally for a terrier to mid-size dog. She is a loyal customer and will buy from us a few times a year, including buying gift items shipped to another address.

6. How many international customers do you have?

Before the GFC, our overseas sales percentage was around 90 per cent. International sales still make up the majority of our sales, but the percentage has dropped to about 65 per cent of our total sales. We have worked hard through advertising to increase domestic sales, which has paid off.

7. Do customers prefer to buy from you online, or do they prefer to purchase from a stockist?

Our customers use our website to locate stockists and to also buy direct from us. Because we stock our whole collection online, we find we have regular customers who prefer to purchase from us direct. If they forget the size they bought last time, we can look it up and help them, making their next purchase easier. Keeping information like that helps maintain that personal touch and gives them a reason to buy from us again.

8. What kind of growth have you seen, in terms of sales, site visitors and so on?

Thanks to Google Analytics, we can see that site visits increase steadily year by year, which reflects in our sales. The great thing we’ve noticed is an increase in unique site visits, meaning our name is out there and more people are typing in “Hamish McBeth” as their keyword search.

9. What kind of feedback do you receive?

We get a lot of positive feedback from customers regarding product satisfaction, customer service and fast delivery. I cannot count how many UK customers have told me that they get goods from us faster via Australia Post than buying online in their own country – we find that orders reach the UK in three to four days. We have a 2pm pick-up and we try to ship our orders on the same day they are placed.

That’s the kind of consumer confidence you need to build a good online business.

10. What are the most popular lines?

All year round, we can’t sell enough tartan collars. We have a huge Westie [West Highland White Terrier] owner following, so that’s the main reason for this. Winter is great for selling clothes. It’s our favourite time of year, and Australians love dressing up their dogs. The biggest seller during the cold spell is our range of doggy pyjamas. The first year, we didn’t realise how popular this product would be and we ran out before winter really set in. Nowadays, we are more prepared and continue selling them well into early spring.

11. How have you customised the business for e-commerce?

We’ve kept our products small – like collars, tags and leashes – so they are easy to ship, even for trade orders. We don’t offer big or heavy products, like dog beds or heavy blankets.

12. Australia is a nation of pet lovers and international research indicates that the pet-accessories industry is surprisingly recession-proof. Has that been your experience? If so, why do you think people are so willing to spoil their pets, even in hard times?

I would tend to agree with that research but not necessarily due solely to the fact that people are spending more on their pets. I think there are more pets out there. My local dog park is busier than it was 13 years ago when I got my first dog. The increase at my local dog park is due to owners getting a second or sometimes a third dog, as well as there being new owners in the area. Pets are a de-stresser, so maybe people are also spending a bit more to spoil their pets. People are not having as many children, plus empty nesters still have that need to nurture.

13. What highlights have you experienced?

I simply love seeing dogs wearing our products in the street. The other day, I saw two small dogs wearing our Red Bone Dog doggy pyjamas. A couple of years ago in Nuremberg, Germany, I saw a Westie wearing our blue tartan collar with matching leash. Almost every week, I see a dog wearing something from Hamish McBeth.

The funniest thing was seeing a copy of a Hamish McBeth dog collar made in plastic. I thought: we’ve finally arrived, what a compliment!

The best highlight was a few months ago, when I was at a new dog park. A small dog came up to me and it was wearing one of the first collars that we made, back in 2005. We only made that collar once, so seeing it look in such excellent condition after almost eight years was an incredible feeling.

14. What are your goals for Hamish McBeth?

It takes a long time to develop a brand and be recognised, so it’s important to maintain a good name within the pet industry. Our goal is to keep developing new products, be innovative and continue to be known for quality and styling at a fair price.

15. Do you have any advice for aspirant online retailers?

Find a good website builder and think about the look, design and functions needed. Your potential customer cannot see you, so they need to feel confident buying from your site, especially overseas customers.

Don’t think having a website itself is going to get you business – it won’t. You need to have a marketing budget.

Despatch your orders immediately. Learn from your own online shopping experiences to improve your own service.

* Business Credit Account special offer terms and conditions: The one month free parcel pick-up offer applies to customers located in a Business Hub catchment area – a service area defined by Australia Post. The availability of the parcel pick-up times during the offer period will be determined by Australia Post. This offer is only available to new customers who are approved for an Australia Post Business Credit Account, successfully register for Click and Send or eParcel services, and have lodged their first parcel by 28 June 2013. The redemption of the one month free parcel pick-ups is through the specified business hub. The one month free offer commences on the date of the first free parcel pick-up and will expire one month from this date. After expiry of this offer, the standard parcel pick-up conditions and fees apply.

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1. Tell us about your business’s heritage.

Howard Park started in 1986 with winemaker John Wade, who produced two wines: Howard Park Cabernet and Howard Park Riesling. My husband and I purchased the company in 1993 and today we are the largest family-owned wine company in Western Australia. Our wide range of products includes Howard Park and Mad Fish, and the new Marchand & Burch wines produced in collaboration with our Burgundy winemaker friend Pascal Marchand.

2. What customer segments do you cater to?

The domestic market is extremely important to us and has become increasingly so as the Australian dollar is so high. We have distributors in each state, and they have an advantage as they know their market well.

We are not on any main roads in the wine regions, so we are a destination winery. The two cellar doors in Margaret River and Denmark are always busy with customers who travel specially to visit us. We have something for everyone, including varieties that may not be available in retail wine outlets, such as Late Harvest Riesling, museum wines and our sparkling. Visitors do love a sparkling!

Then, we have our mail order clubs, where we actively sell wines to people who are already familiar with our brands. The beauty of our brands is that they have been around for a long time and people are familiar with them. So, it is not necessarily price driven, but more about familiarity and knowing that the brand delivers. Service is really important: we have a dedicated mail order department that looks after this very important group of people.

Lastly, we have the export markets, which have been challenging over the past 10 years. However, there are some markets that we traditionally operate in, such as the UK.

3. What opportunities does the Asian market offer for Australian wine brands?

This is a growing market. In Asia, it’s all about relationships and service. The perception of Australian products also comes into play
– does Australia produce good wine? Thankfully, some of the more successful Australian brands like Penfolds have paved the way for a top Aussie sell. We have to ensure we uphold that image of price
and quality.

4. How are you targeting this market?

It’s critical to visit these markets and do dinners with key sommeliers, as well as influential consumers. Word of mouth sells a product.

The packaging needs to look expensive. Luckily, we can learn from others such as French winemakers, looking at the inclusion of red on labels for instance; some even use leather packaging!

Service is also critical, to ensure that we are good partners with our teams / distributor partners in each country.

5. How are you targeting the Asian tourist market?   

More Asian tourists are coming to Australia and they are very interested in wine. Tourism 2020 has predicted that Chinese tourists coming to Australia will spend $7 billion to $9 billion annually.

To service this tourist market, we have to be a bit more aware of visitor needs and the language barriers they may experience. For example, it would be good to have a set of common signs to help international tourists identify cellar doors.

6. Does the Asian market have different tastes in wine?

You have a range of wine tourists. A sweeter, lighter wine like our Moscato is very popular with wine beginners of all nationalities.

Other tourists are very sophisticated and have travelled widely to all wine countries of the world. They are looking for Australia’s point of difference. Each country has a wine icon. Perhaps in Australia it’s shiraz, with Penfolds Grange. However, because Australia is a vast country, our ability to produce many varieties well allows us great licence to impress.

Asian food combines well with riesling for fried foods and sauvignon blanc with stir-fries. With hot and spicy foods, I like to ensure that the wine does not try to compete with the strong flavours but rather complements the food. Again, whites are perfect.

The Burch Family Wines cellar door at Margaret River, WA.

7. How do you cater presently to Asian tourists at your local cellar door?

We offer some literature in Chinese to help tourists who don’t speak English well. I am hoping one day that we will be able to have multinational speakers at our cellar door because it makes a huge difference. When we have had staff who speak the visitors’ language, it has helped enhance the total wine experience. They have an instant rapport and everyone is happy.

8. You’re also building a new tasting area – what features will it have?

We worked hard to get a government grant to help us with this new tasting area, which we’re hoping to complete by July 2014. It will enable us to have a multimedia facility and to offer Chinese translation for wine tasting. It’s exciting because we can then explain what we do to a whole group of visitors in their own language.

9. What are your goals for Burch Family Wines?

We want to keep making quality wine in our style and to continue to pursue excellence in all areas of winemaking.

10. What’s your advice for small business owners looking to sell products to the Asian market or an international market?

Give great service and talk to your contacts reasonably regularly – they’re only a phone call away.

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Ofcom, the UK’s independent regulator and competition authority of the communications industries, conducted its first benchmark study of copyright infringement in 2012. The body examined copyright breaches over a three-month period, with 4,400 participants. Over that period, it was estimated that 16 per cent of UK internet users over the age of 12 illegally downloaded, streamed or accessed one or more pieces of online content.

While infringers said that cheaper legal access and simply being able to access everything legally would encourage them to stop infringements, more than a quarter said that it would help if it was clearer what is legal and what isn’t.

Who owns copyright?

The creator of the work owns copyright. The exceptions are if you are an employee, in which case the company that employs you owns copyright on your work. The other exception is social / domestic photography, such as wedding pictures, in which case the client owns copyright.

Copyright misconceptions

“People are aware that copyright is an issue, but unfortunately there are a lot of misconceptions,” says Fiona Phillips, executive director
of the Australian Copyright Council.

The first is that there is a registration system for copyright. “Copyright just happens naturally if you create content; and you don’t have to be
a professional writer or photographer to own copyright,” says Phillips.

The second misconception is that if you see something on the internet, it’s free and no copyright exists. In fact, most content is protected.

The third misconception is that if you alter something, it’s no longer protected by copyright. “Often, people quote the 10 per cent rule – if you change something by 10 per cent, it’s alright to use it,” says Phillips.

However, copyright infringement comes down to whether you are using a substantial part of an image, video or article – it’s a qualitative test. “As an example, in Edvard Munch’s composition The Scream, the face is a fairly small portion of the whole picture, but it’s a substantial part because it’s immediately recognisable,” explains Phillips.

Attributing the content creator

Attribution is a big challenge, especially in social media, and even traditional publishers don’t always get it right. To illustrate this point, Phillips says that during the 2011 London riots, the BBC attributed images to Twitter rather than the people who had taken the images. Similarly, earlier this year, The Sydney Morning Herald used an image of Florentijn Hofman’s Sydney Festival installation “Rubber Duck” from Twitter, but it had been retweeted and the newspaper published the image without acquiring a licence or correctly attributing the photographer.

If you have a licence or permission to reproduce content, all you are required to do in terms of attribution is to display the creator or author’s name reasonably prominently. However, the Copyright Council advises people to include the copyright symbol, the creator’s name and the year in which the content was created. “This makes it easier to track down the person in future,” says Phillips.

Finding legal content

Where you source content from depends on how much risk you are willing to take with copyright infringement. The least risky option is to create the content yourself or commission a professional to do it for you.

Then, there are heaps of image libraries, where you can select how you will be using an item and buy suitable rights.

You can also get some material – such as images on Flickr – that has a Creative Commons licence. A Creative Commons licence may allow you to use an image for personal use for free but charge a fee for commercial use (like a brochure or advertisement).

With image libraries and Creative Commons licences, there can still be problems if, for example, a photographer didn’t get a model release form. “That’s surprisingly common, even with professional photographers,” says Phillips.

In Australia, images taken before 1955 are in the public domain and, therefore, are not protected by copyright. However, laws differ across the world, so you need to consider this if you will be using “public domain” material on a website, for example.

Help! I’ve infringed someone’s copyright!

You can go to prison for copyright infringement, if it’s commercial-scale infringement and you do it with full knowledge – as is the case with pirate DVDs, for instance. Bear in mind that if you distribute something over the internet, that would probably be considered commercial scale.

Phillips says that if you are contacted about a copyright infringement, problems arise if you ignore it or are rude in response. “Make sure you monitor all contact email addresses as this type of enquiry might come to a sales@ or info@ address, rather than a direct address,” she says. “Have a policy in place and respond to complaints promptly.”

Disclaimer: This information is provided as a general overview of copyright law and is not intended to constitute legal advice. You should seek independent legal advice before relying on the information provided.

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Andrew Carnegie was an industrialist who, by the late 1800s, was one of the richest people on earth. When asked how he achieved such incredible success, Carnegie said that much of it came down to the fact that he had surrounded himself with what he called a “mastermind group”. This was a team of experts that worked by his side. The sum total of all of their knowledge and all of their skills, he said, allowed him to achieve success way beyond anything he could have done on his own.

These days a board of directors represents a set of minds combining to share talent and expertise. But such a board represents time, responsibility and money that few SMB owners and managers can afford. There is another option, though. An advisory board offers the benefits of a full-time board with few of the downsides.

What is an advisory board?

An advisory board is a group of three or four experts in various fields, all with an impressive track record of success and, just as importantly, a Rolodex filled with valuable contacts. The advisory board comes together six to 12 times a year on behalf of your business, in order to offer advice, set goals, help you to develop business plans, assist with preparation for capital raising and so on.

If you have the right contacts, you can approach and create an advisory board yourself, or you can engage a company to source suitable board members on your behalf. “We try to put together a dream team: the ideal mix of boardroom talent for a specific business,” says Kylie Hammond, CEO and founder of Board Portfolio, an organisation that brings together experts in various fields to create advisory boards. “Then we make it cost effective for a business to be able to access it.”

Hammond says costs can vary dramatically but, for a fee-per-meeting, the average rate is about $2,000. The advisory board would likely be required for six to 12 meetings per annum, with some expenses that may need to be covered on top of that.

Geographical boundaries are no longer an issue. As Hammond points out, with today’s communications technology there is no reason a business can’t have a truly multi-national advisory board. This is perfect for the SMB looking to expand into other territories.

The value of an advisory board

Harry Hodge, currently non-executive director on several boards, ex-executive chairman of Ksubi and founder, ex-chairman and ex-chief executive of Quiksilver Europe, is one of the Board Portfolio specialists. His massive insight and experience in international business spanning fashion, finance, manufacturing, design, retail, marketing and various other specialisations, is invaluable to the business managers and entrepreneurs with whom he works.

“Every start-up and every SMB should have some form of board guidance,” Hodge says. “We used to have the freedom to run businesses by trial and error, but times have changed. You need a great plan and enough funding to make it happen within ever-tightening timelines and with as little waste as possible. These days, the market will destroy any business that moves too slowly and makes too many mistakes. Those financial resources simply don’t exist any longer.

“An advisory board can help you avoid costly mistakes and can ensure your business plan and your goals and strategies are as good as they can be. In fact, the business without an advisory board has an enormous handicap in today’s market.”

Finding the perfect mix

In order to figure out which skills might be required on an advisory board, Hammond recommends managers do a skill audit of what currently exists within their current business and among its consultants. If, for instance, a company already has strong knowledge or relationships in the areas of manufacturing, legal practice and accounting, then perhaps the advisory board members should show great experience in HR, IT and marketing.

“You achieve the most compelling results when you mix resources,” Hammond says. “If people come up with the same ideas that you do, then it’s not very helpful. But if they think of entirely different and better ways around an issue then the advisory board will pay for itself over and over.”

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When departing BHP Billiton CEO Marius Kloppers recently announced his intention to step down, his replacement – Andrew Mackenzie – was already poised to assume command. It was a move that had begun some six years earlier, when Mackenzie had been hand-picked and then groomed to one day head the global resources giant.

For companies of all sizes, it was a salient example of the importance of succession planning and how it can help to minimise disruption and ensure that a business continues to operate smoothly when there are changes at the top or restructuring from within.

In fact, says CEO of the Institute of Public Accountants Andrew Conway, succession planning is “a critical business process” that too often gets overlooked.

As head of an organisation that represents the interests of thousands of accountants around Australia and overseas, Conway offers these expert insights into what every business needs to know about succession planning.

Why is it important for anyone running a business to have a succession plan in place?

Not only is effective succession planning important from a business risk perspective, it also serves as a key component of strategic direction and employee motivation. Providing people with clarity and a sense of purpose is a fundamental management discipline.

What are the most important factors to consider when devising a succession plan?

• Is the strategic plan of the organisation clear, with quantifiable targets that are achievable?
• Identify the key roles, responsibilities and characteristics required for the positions.
• Assess the calibre of the team through a skills audit and management development programs.
• Engage with key personnel to determine their interest and document their personal goals. Map those goals to the organisational strategy.
• Develop and clearly communicate key transition plans, so that everyone involved understands what is expected of them and when.
• Ensure that no employee is excluded from potentially being part of the succession plan – you don’t want employees feeling disgruntled or claiming a failure to promote.
• Don’t ignore “gut instinct” – while it is not the best sole determinant, it should not be ignored. This may relate to the culture of an organisation.
• Periodically review the succession strategies and implement a formal mechanism, such as reporting against the risk management framework through to an audit committee.

What are the legal and administrative details that must
be ticked off?

For key positions, there can be direct statutory implications. For example, managing directors or CEOs are the “employer” and have
a range of strict legal duties to uphold – such as ensuring the workplace is safe – so the succession plan must be effective
almost immediately.

There are also legal issues to cover, such as confidentiality
provisions and restraints of trade in the event of a key employee suddenly moving to a competitor with your trade secrets. Such
clauses are quite straightforward and easily incorporated into a succession plan.

Then there are standard legal provisions, such as ASIC notifications (if required). These are the sort of things your public accountant or lawyer can assist with.

Finally, it is critical that all members of the team clearly understand the succession plan. Those involved directly should be signatories to it and have a copy of their own. It is prudent to have succession plans documented for all key positions in the organisation.

What are the potential problems of not having a succession plan?

One of the traps that many businesses fall into is a failure to accept the fact that everyone is replaceable. This can breed a sense of complacency; a failure to plan for succession can have almost immediate negative consequences for a business. Relationships with suppliers can be adversely effected, staff morale goes down and the focus of the business moves from “business as usual” to managing an internal crisis that is severely disruptive and takes time to recover from.

As well as providing an exit strategy, succession planning can apply to restructuring the business to allow for growth – what are the important factors to consider here?

Succession planning can be an extremely effective business tool, not just for the benefits of business sustainability but for critically analysing the capabilities of the team and ensuring alignment of personnel to the strategy.

Having the right people in the right positions is key. Succession planning can reveal hidden gems in a business when a skills audit is conducted, which can result in an uplift in empowerment and staff motivation. Accordingly, it is important to remain open-minded about what the succession planning process may reveal.

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In 2012, there was a 31 per cent increase in the number of cyber attacks on small and medium businesses worldwide. According to Symantec’s Internet Security Threat Report 2013, smaller businesses may be targeted because they can be weak links in the supply chain of larger companies. Business owners may also assume that they are too small for cybercriminals to bother with, meaning that IT security practices are less stringent than they should be.

However, every business has customer and supplier data, business information and money they want to protect. Data breaches in Australia cost $145 per capita on average, they can erode trust with your clients and customers, and may have legal implications which could put you out of business. Use this checklist to identify areas where you can improve cyber security.

1. Who has access to important data?

Cyber security threats can come from inside and outside your business. Limit access to information to the employees or contractors who really need it, and use strong passwords to protect access, changing them regularly.

You should also be using different passwords for different sites, so that someone who gains access to the password for your business server or website, for example, can’t access your bank account with the same password.

2. Do your staff members know about spam, phishing
and social engineering?

Staff members may click on a malware link in an email or on a
website, or share personal or financial details on social media or
spoof sites that look like legitimate websites. This may inadvertently make your business website or email vulnerable to attack. Sometimes the sites or emails are very sophisticated: a friend who has lost a
wallet requesting $100 on Facebook, or a spoof payment site that’s almost identical to a legitimate bank login page.

Make sure your business email has spam filters, block pop-ups and ask employees to double-check website address URLs, looking for security elements like the security padlock on transaction pages, for example. Treat emails, calls or social media messages requesting money, passwords, personal information or banking details with suspicion. Never send credit card details on email.

3. Are your firewalls and anti-virus protection software up to date?

These mechanisms are your first defence in cyber security. Keep them up to date and have a plan in place, so everyone knows who to contact or what to do in the event of a cyber attack.

4. Are you using the latest versions of software, and installing patches when prompted?

Software developers regularly update programs to make cyber attacks less likely. Set your software and operating systems to update automatically. Patches are usually free and take only a few minutes to install – well worth the effort for the protection they afford.

5. Where is your data stored and backed up?

You should be backing up business data every day, ideally storing it off site as part of your business continuity plan. Test restoring data from back-ups, to check everything works as it should and that you know what the procedure is.

6. What information exchanges are you protecting with encryption such as SSL certificates?

SSL protection shouldn’t just be used for shopping cart transactions, as data breaches can happen at other points on your website too. Consider what interactions you’re currently protecting, and whether “always on” SSL protection is a suitable investment for your business.

7. How secure are work mobile devices?

If you’re using your smartphone for work, make sure that you have password protection (a PIN) in place.

Mobile phones are also increasingly susceptible to cyber attacks through SMS, MMS and malware apps, so you may need to install anti-virus software such as TrustGo for Android phones. (Antivirus apps for iPhones are in development.)

8. How often are you reviewing your cyber security practices?

The cyber security you had in place when it was only one or two people working in the business may not be adequate as your business grows and you employ more staff and acquire more computers or a server. Review your IT security procedures when a new staff member joins the team, or when you add or upgrade IT equipment and software.

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