Moves are afoot to help even out the balance of power in franchising, writes Ed Charles ONE of the problems of being a small franchisee is that disputes with the franchisor are unequal. Franchisees are often small businesses while the franchisors are big, multi-million-dollar businesses that can leverage their market power and afford large legal bills. But the balance of power is moving a step closer to being evened out with the likelihood of the Senate passing legislation that will […]
journalism
Loan gymnastics
The Australian — Wealth: With mortgage providers jostling for business in a highly competitive market, there is a loan to suit almost anybody, reports Ed Charles July 19, 2006 WITH low interest rates and competition among mortgage providers we are able to borrow more money than ever before to buy homes. In some cases it is possible to borrow four times one’s salary. The problem is that the median cost of a home in Sydney is 8.5 times the median […]
Which bank wants to sell you a package? Every bank
From The Australian: EVERY bank wants to sell you a package. The idea is that if, in addition to a home loan, they can sell you transaction accounts, credit cards, insurance and multiple mortgage accounts for investments they can make more money. And hopefully you can make more money too. This is the thinking behind professional packages which has been extended to the latest generation of portfolio loans. Portfolio loans are where wealth management meets packaged home loans. Typically, for […]
FROM NICHE TO NATIONAL – How a gourmet yoghurt spread across Australia – A HOMEMADE SUCCESS STORY
From The Australian, Entrepreneur: Detailed research and some great timing has paid off for this niche market player, writes Ed Charles THE secret of a successful product is that it must be something that people want. And it must be something that a lot of people want most days in their lives. For businesswoman Ivone Ruiz it turned out that homemade yoghurt was exactly what Coles felt that people wanted to see on its shelves. It started when she discovered […]
Cut costs, not staff
There are ways to improve revenue performance, if only CFOs had time to look for them. CFO. 01 May 2006 For the first time since 1987, companies are starting to see annual productivity gains slow. Dr Frank Gelber, chief economist at BIS Shrapnel, said last year that Australian companies have cut back the fat to the point that there were no more efficiency gains to be had. He said this means companies face cost increases and either rising prices or […]
Hybrid markets: Raising the capital bar
After Orica’s success, it seems like hybrid capital raisings are driving the whole M&A market this year. CFO. 01 May 2006 The Australian stockmarket is at an all-time high. The mergers and acquisitions business is booming, and the boom is bringing a wave of new capital-raising to the market. But if 2006 is to be known for anything, it will be the year of the hybrid step-up preference security (SPS). The twist that has caught the market’s interest is that […]
Lucky country is unlucky for some
From IN THE BLACK May 06 Wherever you are in Australia houses are bloody expensive and have been for some time. State and federal governments have debated the issue and there has even been a Productivity Commission report. According to the Demographia International Housing Survey (using September figures) Sydney is the seventh most expensive city in the world to buy property, with the median house costing 8.5 times the median take-home pay. Still, at least you’re not living in Los […]
Office space: rent or buy
From IN THE BLACK April06 The big debate on property is whether to rent or buy. When property values and rents are falling the market favours the renters. But when the market is in an upswing – as it is now – owning a property can shield against rent rises, an attractive option for small business owners. One option is the strata office. The fact is that 71 per cent of strata office buyers are the occupiers themselves, while the […]
Next in line
From IN THE BLACK April 06 When it comes to succession planning, many business owners overlook the obvious: selling to their own employees. It’s the dilemma facing all ageing business owners. What to do with the company upon retirement? Many will choose a trade sale of the business. But few are thinking about a sale to their employees. The average age of a family business owner is 57. Over the next five years, more than 40 per cent of business […]