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  06 Cover story                              ONLINE          rich – the basics, and saving for set goals.
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                                                  Make your cup runneth over
Angela Vithoulkas                                                                                                                                                                                                                                                                                                                                                                                                         SEVEN STEPS FOR
works 15-hour days
to make the Vivo Cafe´                                                                                                                                                                                                                                                                                                                                                                                                    PLANNING YOUR
Group a success.
  Picture: John Fotiadis                                                                                                                                                                                                                                                                                                                                                                                                  FIRST MILLION
                                                                                                                                                                                                                                                                                                                                                                                                                            1       INVEST IN

                                                  Passion, persistence and never switching off their ‘business brain’ are the key characteristics of successful entrepreneurs, writes Alex Tilbury                                                                                                                                                                                                                        Research indicates that improving your
                                                                                                                                                                                                                                                                                                                                                                                                                          education can improve your income.

                                                              O YOU want to make a          out there being paid millions to                                                                                                                                                            ‘‘One of my driving reasons for                      and supported through
                                                              million bucks? Unless         destroy companies and they                                                                                                                                                                pursuing success is the sheer                          adolescence and
                                                              you were born with a          never risk themselves the way                REVEALED: HOW TO MAKE A FORTUNE                                                                                                              achievement of it and, of course,                      adulthood by Dr Tom and                                                        2       AVOID THE HERD
                                                              platinum spoon in your        small business does.                                                                                                                                                                      the overall security it gives me                       Jan Dooley – a well-known
                                                              mouth or had your                ‘‘Why do I say this? Because                                                                                                                                                           and my extended family.’’                              Brisbane pub family.                                                         Herding is a fall-back to prehistoric days
                                                  numbers come up in a dream lottery        most people’s perception of a                                                                                                                                                                                                                       ‘‘Doc and Madam                                                           when humans needed to club together to
                                                  win, then you’ll have to earn it.         coffee shop is that it’s almost a                                                                                                                                                         Just go for it
                                                    Sure, the mega-rich may have            hobby or a job, certainly not a                   Even                                                         Know                                                                                                                              Dooley showed me the
                                                                                                                                                                                                                                                                                                                                             value of investing in good
                                                                                                                                                                                                                                                                                                                                                                                                                          avoid becoming someone’s lunch. This is
                                                                                                                                                                                                                                                                                                                                                                                                                          why people rush to buy in at the top of the
                                                  had some breaks in life and went to       career or a business.                                                                                                                                                                     Serena Beirne, head of consulting at
                                                  the right school, but more often             ‘‘Most of the time we are                      when I                                                       what it                                                                    Australian Fashion Partners, agrees
                                                                                                                                                                                                                                                                                                                                             people and rewarding
                                                                                                                                                                                                                                                                                                                                             them for loyalty,
                                                                                                                                                                                                                                                                                                                                                                                                                          market and sell out at the bottom.
                                                  than not they created their own           investing or risking over $500,000                                                                                                                                                        that goal setting and self-sacrifice
                                                  destiny through hard work, self-          to build a site and then it can take        was kid, I                                                    is you exactly                                                                  are required to make it happen.
                                                                                                                                                                                                                                                                                                                                             creativity and
                                                                                                                                                                                                                                                                                                                                             initiative. Our family
                                                  belief, discipline and an over-riding
                                                  competitive drive that makes them
                                                  work seven days a week.
                                                                                            months or years to see a return on
                                                                                            your investment. That can mean
                                                                                            zero income for a long, long time.’’
                                                                                                                                        was thinking                                                  want and get                                                                       ‘‘But don’t hurt anyone along
                                                                                                                                                                                                                                                                                      the way and keep checking as you
                                                                                                                                                                                                                                                                                      are achieving your goals that they
                                                                                                                                                                                                                                                                                                                                             business is successful
                                                                                                                                                                                                                                                                                                                                             today because my
                                                                                                                                                                                                                                                                                                                                                                                                                           3       HANG ON TO YOUR WINNING
                                                                                                                                                                                                                                                                                                                                                                                                                                   INVESTMENTS, SELL YOUR
                                                                                                                                                                                                                                                                                                                                                                                                                                   LOSING INVESTMENTS
                                                    Most of the filthy rich never              She warns other wannabe                  up ways to                                                    that vision                                                                     are still making you happy. Get                        husband and
                                                                                                                                                                                                                                                                                                                                             business partner,
                                                  switch off their business brain           entrepreneurs that if ‘‘you can’t                                                                                                                                                         advice from professionals – it is a
                                                  and that is their secret.                 define your strategy for growth, if         breed                                                         implanted                                                                       false economy to do everything                         Dominic, and I
                                                                                                                                                                                                                                                                                                                                                                                                                          Many people sell their winning investments
                                                                                                                                                                                                                                                                                                                                                                                                                          too soon, and hold on to their losing
                                                                                            you can’t recognise your potential                                                                                                                                                        yourself ,’’ says the Sydney-based
                                                  A hard slog                               weaknesses or actually work within          chooks and                                                    within                                                                          executive, who is currently                            ourselves with                                                               investments in the hope that they will recover.
                                                                                                                                                                                                                                                                                                                                                                                                                          This is a certain way to destroy your wealth.
                                                                                            your budget then all the greatest                                                                                                                                                         developing sponsorship proposals                       great people.
                                                  The secret of most successful             food in the world in the prettiest          sell them                                                     your mind                                                                       for designer Gary Bigeni’s Paris                       The financial
                                                  entrepreneurs is not that they are        cafe in the world won’t help’’.             Gerry Harvey                                                  Peter Bond                                                                      Fashion Week trip later this year.                     rewards will
                                                  super-smart, but that they have an
                                                  incredible capacity for work. Most
                                                  successful business owners still
                                                                                            Build networks
                                                                                                                                                                                                                                                                                         Beirne says if you don’t keep
                                                                                                                                                                                                                                                                                      setting yourself new challenges and
                                                                                                                                                                                                                                                                                      goals, then life gets very boring.
                                                                                                                                                                                                                                                                                                                                                                                                                            4       THINK CAREFULLY
                                                                                                                                                                                                                                                                                                                                                                                                                                    ABOUT TAX

                                                  work seven days a week, even when         It is incredible how many of                 ‘‘I am turning 70 next month and       me how to be successful and how                implanted within your mind and                            ‘‘Having said that, though, I                                                                                                    Tax is a drain upon your wealth. Think about
                                                  they have made their millions.            Australia’s most successful business      I am still on a mission. It is not        to apply myself to something,’’                indeed, into your very being. Once                     think I will give myself a tiny pat                                                                                                 how you can reduce, defer or minimise
                                                     Take Gerry Harvey, for example.        people are old friends. John              about the amount of money I have          Brawls says of his alcohol-sourcing            your vision is firmly entrenched,                      on the back when we have paid                                                                                                       income tax, capital gains tax, or both. Ask
                                                  The furniture and electrical king         Singleton and Gerry Harvey                made, it is more about what you           operation, which just turned over              your passion for achieving it should                   off our mortgage and my husband                                                                                                     your accountant and financial planner about
                                                  even turned his favourite holiday         backpacked together through               achieve and I am still trying to pull     almost $1 million, not bad for                 be rising and the way you feed this                    and I finally realise that dream of                                                                                                 which structures are the most suitable.
                                                  spot at Byron Bay into a resort and       Europe and went on to take the            things off. The advantage I have          ‘‘two hours work a night’’.                    passion is to start to draw a basic                    a boat – if we can resolve the fight
                                                  his love of horses into the successful    Magic Millions horse auctions on          now is the backing I have behind             ‘‘I import spirits and source               step-by-step plan of how to achieve                    over whether to get a yacht
                                                  Magic Millions horse auction.             the Gold Coast to become a                me, the money from my                     bottles from deceased estates or               your vision,’’ Bond says.                              or a cruiser,’’ she says.
                                                     Angela Vithoulkas owns the Vivo
                                                  Cafe Group with her brother Con. It
                                                  has three coffee shops in Sydney’s
                                                                                            $250 million annual event.
                                                                                            Networking can sometimes be a
                                                                                            pain and a waste of time, but having
                                                                                                                                      organisation, which you cannot do
                                                                                                                                      as a loner. That’s where I get the
                                                                                                                                      kick and get the adrenalin flowing.
                                                                                                                                                                                even local bottle shops. I just sold a
                                                                                                                                                                                $7000 bottle of champagne to a
                                                                                                                                                                                man in Greece who wanted it for his
                                                                                                                                                                                                                                  ‘‘This could be broken down into
                                                                                                                                                                                                                               tiny everyday steps, but the
                                                                                                                                                                                                                               important thing is that you take a
                                                                                                                                                                                                                                                                                         ‘‘I am a business owner who is
                                                                                                                                                                                                                                                                                      also the mother of a one and five-
                                                                                                                                                                                                                                                                                      year-old, so my exercise mostly
                                                                                                                                                                                                                                                                                                                                                                                                                            5       SET A BUDGET
                                                                                                                                                                                                                                                                                                                                                                                                                                    AND STICK TO IT

                                                  CBD, plus a catering business.            influential friends is always an asset.      ‘‘You don’t necessarily think          son, and he wants more. The                    step a day, even if it is just a phone                 involves chasing five-year-old                                                                                                      Make regular saving a compulsory part
                                                     Vithoulkas sets about her                 Harvey believes that people            about the $100,000 or $1 million          dearest bottle I sold is a $50,000             call or email to achieve this vision.                  Annie and carrying my sturdy one-                                                                                                   of your budget. Remember compound
                                                  average 15-hour work day at               either have a business brain or not.      you just made but it’s the fact you       bottle of 50-year-old Glenfiddich to           You must keep the momentum of                          year-old Michael around before and                                                                                                  interest and time are your friends.
                                                  4am, Monday to Friday.                       ‘‘When I was 19 and 20, I didn’t       did it. It’s all about achievement. If    a casino in Australia.’’                       always striving towards that vision.                   after work. In the work-life balance
                                                     But even this blonde dynamo            spend too much time with people           you get that, the money follows, so          He doesn’t even have an online              With your vision, passion and plan                     equation – exercise is an area I need
                                                  doesn’t think she has ‘‘made it’’.
                                                     ‘‘I have not conquered the world
                                                  and that is my goal. Retirement is
                                                                                            who were my age. I spent time with
                                                                                            people of 45 and 55 and sucked their
                                                                                            brains all day because I could see no
                                                                                                                                      chase the deal. If you think, ‘I want
                                                                                                                                      to make a lot of money’, that is just
                                                                                                                                      a want, and if you are just money-
                                                                                                                                                                                site – it’s all done through word of
                                                                                                                                                                                mouth and email. ‘‘You just have to
                                                                                                                                                                                apply yourself and if you fail, get up
                                                                                                                                                                                                                               in place, just sheer bloody
                                                                                                                                                                                                                               determination to see the job
                                                                                                                                                                                                                               completed will get you there.
                                                                                                                                                                                                                                                                                      to work on. I do wave my arms
                                                                                                                                                                                                                                                                                      around a lot in client meetings
                                                                                                                                                                                                                                                                                      though – does that count?’’
                                                                                                                                                                                                                                                                                                                                                                                                                            6       LEARN THE DIFFERENCE
                                                                                                                                                                                                                                                                                                                                                                                                                                    BETWEEN GOOD DEBT
                                                                                                                                                                                                                                                                                                                                                                                                                                    AND BAD DEBT                           THE B
                                                  not my goal, nor is it part of my         point in talking to another 22-year-      hungry it won’t work for you.’’           and do it again. I put a lot of                   ‘‘Most people like to allude to the                    Every school holidays, no matter
                                                  strategy. I know retirement can be        old who knew nothing. I would go             Harvey is impressed with one           pressure on myself. By 22, Virgin              secrets of the rich but in reality, it                 what is happening at the office,
                                                  viewed as a sign of success but my        straight to anyone who had brains         of his brightest young recruits,          founder Richard Branson had his                should be called the passion and                       Beirne takes a full day off so she and                                                                                              Good debt generates income for you.
                                                  mum is 70 years old and still puts in     who had done well in the world and        Alistair Brawls, a 22-year-old            own record label. I am behind, so I            persistence of the rich.’’                             her daughter can spend a day                                                                                                        The interest expense of good debt is tax
                                                  a 50-hour week,’’ she says.               suck their brains day and night. My       originally from WA who has                have to catch up.’’                               Bond now works at least 10 hours                    together jam-packed with movies,                                                                                                    deductible. Bad debt consumes income
                                                     Vithoulkas considers herself and       wife (Kate Page, managing director        just taken over managing                                                                 per day, more relaxed now than the                     chocolate treats and shopping.                                                                                                      and is not tax deductible.
                                                  all small business owners as              of Harvey Norman) is the same, she        one of the Harvey Norman                  Chase success,                                 ‘‘90 to 100 hours per week’’ he                           ‘‘When my son is old enough, I
                                                  adventurers. ‘‘A warrior waitress, if     is a natural and always had a             furniture shops in Melbourne.                                                            worked in his early career when he                     will take great joy in figuring out
                                                  you like, fighting a war that really is   business brain,’’ he says.                   Despite being a non-drinker,           not money                                      ‘‘sacrificed pretty much anything to                   our special time agenda as well. No
                                                  ongoing. Most small business
                                                  owners start out because they like
                                                                                               Harvey was an early
                                                                                            businessman: By the age of six in
                                                                                                                                      Brawls buys rare cognacs and
                                                                                                                                      whisky from overseas and onsells
                                                                                                                                                                                Peter Bond is the driving force
                                                                                                                                                                                behind Linc Energy, an ASX-listed
                                                                                                                                                                                                                               take that step forward towards
                                                                                                                                                                                                                               realising my vision’’.
                                                                                                                                                                                                                                                                                      matter how busy you are, take the
                                                                                                                                                                                                                                                                                      time to develop enduring family
                                                                                                                                                                                                                                                                                                                                                                                                                            7       PROTECT WHAT YOU
                                                                                                                                                                                                                                                                                                                                                                                                                                    HAVE ACHIEVED
                                                  the idea of being their own boss or       country NSW he was setting rabbit         the plonk, while taking a                 company introducing clean liquid                  ‘‘These days I tend to be a little                  traditions and your kids will
                                                  have a talent that turns into a           traps before school, skinning the         commission. In his day job, he’s          fuels for power generation.                    more measured in my work day,                          remember their childhood really                                                                                                       Wealthy people always protect their assets
                                                  business,’’ she says.                     animals and selling the fur.              been working at Harvey Norman               Bond owns 55 per cent of the                 however, keeping in mind that                          positively and won’t focus on ‘my                                                                                                     with adequate and appropriate insurance.
                                                     ‘‘Not all can operate them or             ‘‘Even when I was a kid, I             since he was 16, taking new               company with a market                          when the pressure is on and I                          mummy was at work all the time’.’’
                                                  turn them into going concerns and         was thinking up ways to                   televisions out to customers’ cars.       capitalisation of $620 million.                need to get the job done, I tend                          Beirne’s parents died when she
                                                  maintain financial success. But then      breed chooks and sell them,                  ‘‘At 21 I was given my own shop          ‘‘Know what it is you exactly                to fall back into the whatever-it-                     was quite young but she was                                                                                                           Source: HLB Mann Judd financial
                                                  there are a lot of corporate CEOs         or selling flowers,’’ he says.            in Victoria. Harvey Norman taught         want and get that vision firmly                takes mode very quickly.’’                             fortunate to have been mentored                                                                                                       planning partner George Wright

                                                                                                                                                                                                                                                              “So how do you put
                                              Part Three:                                                                                                                                                                                                     a price on priceless?”

    YOUR                                      Planning your
                                              first million
                                                                                                             Thinking outside the
                                                                                                             square and how to use

                                                                                                             other people’s money
                                                                                                             to make your own

                                                                                                                                                                                                    ING’s simple insurance calculator can help you work it out.
    Your new financial friend                                     NEXT WEEK                                                                                                                          To cut through the clutter and work out your insurance needs, visit and use our simple insurance calculator
                                                                                                                                                                                                    or talk to your financial adviser.

    YOUR MONEY HELPS YOU BUILD YOUR WEALTH                                                                                                                                                          This is general advice only and does not take into account your individual objectives, financial situation or needs. Before using this advice to decide whether to purchase a financial product, you should consider how appropriate it is in regard to your personal circumstances.

38 The Courier-Mail Monday, August 17, 2009                                                                                                                                    FRST
                                                                                                                                                                                                                                                                                                                                                                                                     Monday, August 17, 2009 The Courier-Mail 43

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