NZ Entrepreneur - Issue 41

NEW ZEALAND’S E-MAG FOR ENTREPRENEURS AND BUSINESS OWNERS

April 2016

10 QUESTIONS with

Bernadette Soares Founder of Beauty Empire ‘Brand Value’

IRD to refund up to 28% of R&D tax related losses Academic Qualifications - Do They Help Entrepreneurs?

Why You Need A Financial Model Even If You Aren’t Raising Capital www.nzentrepreneur.co.nz

CONTENTS

ABOUT / Short and sharp, New Zealand Entrepreneur is a free e-magazine delivering thought provoking and enlightening articles, industry news and information to forward-thinking entrepreneurs.

4 6

From the Editor Why Academic Qualifications Will Not Help You (Much) As An Entrepreneur

EDITOR / Jennifer Liew ART DIRECTOR / Jodi Olsson GROUP EDITOR / Colin Kennedy CHIEF FINANCIAL OFFICER / Alastair Noble CONTENT ENQUIRIES / Phone Richard on 021 994 136 or

10 16

10 Questions with Bernadette Soares Blood, Sweat and Tears

email richardl@espiremedia.com ADVERTISING ENQUIRIES / Phone Jennifer on 0274 398 100 or email jenniferl@espiremedia.com WEBSITE / nzentrepreneur.co.nz

18

Taking The Pulse Of New Zealand’s Sales Profession

26

Why You Need a Financial Model Even If You Aren’t Raising Capital

30

Generator Changing the Way We Work One Desk at a Time

2 • www.nzentrepreneur.co.nz

ISSN 2253-5683 NZ Entrepreneur is a GREEN MAG created and distributed without the use of paper so it’s environmentally friendly.

Please think before you print. Thank you!

Landscape powered by Helix

New Zealand’s most powerful and dynamic segmentation solution

Inivio introduces New Zealand’s first truly household level segmentation product.

Inivio have teamed up with Roy Morgan Research to create Landscape powered

by Helix providing a dynamic and comprehensive view of New Zealand consumers.

Roy Morgan collect a myriad of data on everything from income, discretionary spend, response to marketing mediums and thousands of other variables that drive New Zealand consumer attitudes and buying behaviour.

Landscape Powered by Helix builds upon Roy Morgan’s Helix segmentation solution with enhancements utilising Inivio’s verified household level intelligence to create the most dynamic and granular segmentation solution for NZ.

Next steps

With Landscape powered by Hel x you will: Receive dynamic updates every quarter Gain access to Roy Morgan’s Helix website to view research intelligence and media consumption trends Manage marketing & risk through identifying value segments and how to attract likeminded prospects Focus media buying based on value prospect behaviour

To find out more contact Inivio on 09 367 6285 or visit www.inivio.co.nz

© 2013 Veda Advantage Solutions Group Pty Limited This document is the intellectual property of Veda Advantage Solutions Group Pty Limited. The information contained in this document is confidential and may not be stored, copied, given, lent or in any way transmitted to any other company or person without the express written consent of Veda Advantage Solutions Group Pty Limited.

EDITORIAL

THE START OF THE new financial year often brings with it new goals and changes. And on that note one of the changes we’re making at NZ Entrepreneur is that I will be handing over the reigns as editor to the Founder of NZ Entrepreneur, Richard Liew.

It has been such a privilege being editor. I have met even more phenomenal entrepreneurs as a result of which have added enormously to my own journey as an entrepreneur.

Thank you to all the Kiwi

4 • www.nzentrepreneur.co.nz

entrepreneurs who have shared your inspirational stories and hard earned wisdom with us, as well as all those who support the NZ Entrepreneur community.

Although I will no longer be editor I will still be very much involved in the supporting NZ Entrepreneur’s community.

For anyone that would like to reach out to our new editor Richard Liew, please do so by emailing him at richardl@espiremedia.com Many Thanks,

Jennifer Liew

✉

GOT A PRODUCT, SERVICE OR BUSINESS WORTH TALKING ABOUT? Want to grow brand awareness in a more effective and useful way?

TALK TO ESPIRE MEDIA ABOUT OUR CONTENT MARKETING SERVICES We offer a range of ways to attract and retain customers, by creating and curating relevant and valuable content to engage and add value to your audience.

BENEFITS: • Expand your digital footprint • Grow brand awareness • Increase traffic to your website • Thought leadership • Media exposure • Attract new customers • And... grow SALES!

Get in touch with Jennifer now to discuss our options. +64 3 443 6316 (NZT) | jenniferl@espiremedia.com | www.espiremedia.com

Check out our blog for content marketing advice, tips and ideas, plus a free copy of our content marketing guide The Content Creation Cookbook!

ENTREPRENEURSHIP

WHY ACADEMIC QUALIFICATIONS WILL NOT HELP YOU (MUCH) AS AN ENTREPRENEUR AS AN ENTREPRENEUR, your job is to create a replicable, scalable business model which can deliver a product or service of value to the market, at a profitable price.

Sounds quite daunting when you put it that way doesn’t it? The good news is that millions of people around the world have done this and like anything in life, you too can learn how to do it if you’re committed. Oh, and if you’re open to learning.

“Open to learning?” you might be thinking to yourself.

“Oh good. I made it through high school. I have a diploma/ certificate/degree. I’ve got a masters/Ph.D./MBA. So I’m good to go right?”

6 • www.nzentrepreneur.co.nz

Unfortunately, no. That’s not the sort of learning I’m talking about. In fact, when it comes to entrepreneurship, many highly academically qualified people are some of the least open to learning.

The real learning needed to be a successful entrepreneur can’t be learned in a classroom. You can’t pay a fee, go to classes, write essays and sit an exam to get qualified. But wait! I hear some of you saying.

You can study business and entrepreneurship at school.

This is true and there is a growing awareness that more emphasis should be put on entrepreneurship in our schools and tertiary institutes.

Initiatives like the Young Enterprise Scheme do a great job of introducing Kiwi kids to entrepreneurial thinking at a young age. (Find out if your children’s school offers Young Enterprise programs here.)

Similarly, many business programs at universities now include papers on entrepreneurial thinking.

MBA’s often include the study of elements relevant to entrepreneurship.

is far more expensive and far tougher than academic or “book” learning. Quite simply, it’s called experience! It’s a bit like learning to swim…

The real learning you need to succeed as an entrepreneur

spend most of your time on the product development

You can read about it, study it, watch others do it, write papers about it… but at some stage, you have to jump in the pool and get wet. All that best practice business theory you studied – it’s very hard to apply it in a cool, calm, collected manner when you’re fighting for your life, just trying Don’t mistake me here – all opportunities for learning are to keep your head above the water so you don’t drown. useful and it is a good idea to read and study everything On the plus side, there a very few prerequisites for starting you can get your hands on your degree at the ‘university about entrepreneurship of entrepreneurship’. There before you start. are no fees, there are no age But here’s the deal… while limits, you can start as soon you can get lessons on as you like and take as long entrepreneurship “in the as is required. classroom”, the real learning is done out in the marketplace.

And the market doesn’t care So, what type of things can you how many degrees you have, look forward to learning? what you majored in, what When you first start out, thesis you wrote or what because it’s the fun and school you went to. exciting bit, you’ll probably

www.nzentrepreneur.co.nz • 7

stuff – taking that idea you’ve had for a product or service and figuring out how to turn it into a tangible, saleable commodity.

Then your real learning will begin when you realise you then need to build a working structure (ie a business) around that product to actually get it into the market.

Essentially the first year or two will be spent learning how much you don’t know about each of the key elements required to build a successful business. Sales, marketing, product development, customer service, accounting and financial management, IT, law, management to name a few. This can be a very daunting and disheartening time and many people drop out at this stage.

But it is an essential first step in your entrepreneurial education, as ignorance in any one of these areas can bring your business down.

Not only will you have to do most things in your business yourself to begin with (unless you’re lucky enough to start it with a partner or two), but as a business builder you need

8 • www.nzentrepreneur.co.nz

to know enough about each area to understand what is required in each role, so that as you begin to hire people to perform each role you are able to manage them properly and hold them accountable. (In his excellent book ‘The E-Myth’ Michael Gerber refers to the difference between ‘management by abdication’ and ‘management by delegation’).

If after realising how little you know, you decide to keep going, your entrepreneurial education will then continue through the process of Action – Reaction – Review – Adjust – Repeat. Otherwise known as cause and effect, or trial and error. This can be a brutal process and you need to be prepared to leave your ego at the door.

Often you will be forced to make decisions, with insufficient knowledge and information, most of which will be wrong. This is where your openness to learning from your mistakes comes in.

Acknowledge them and learn from them, and you will hopefully not make those mistakes again. Fail to learn

from them and you’ll be doomed to repeat them time and time again, hitting the same roadblocks and failing to achieve the success you desire.

It is also during this stage of the process that you will also undergo the most significant and important learning of all. That is the learning about yourself.

Your strengths, weaknesses, discipline, mental toughness, personal character, and integrity – all these and more will be constantly tested. Even your reasons for wanting to be an entrepreneur in the first place will be tested and I know many people (including myself) who have realised that the goals that used to motivate them when they first started out, no longer mean as much to them.

Most of all it is your tenacity and perseverance that will be tested. Those who can stay the course will continue moving through the learning process, getting better and better and overcoming the obstacles until ‘graduation’ and the inevitable success waiting for them at the end.

If you have a degree or academic qualification, that’s great – but don’t assume it will give you any advantage as an entrepreneur. And if you don’t, well three or four years out there in the marketplace will teach you more about entrepreneurship than any qualification – so go to it!

Like any great undertaking or journey, though, perhaps the best reward will not be the things you get from building a successful business, but the person you will have become. A qualified, successful entrepreneur!

[PS. A few notes about this article… I have long been a proponent of life-long learning and my journey as an entrepreneur has been probably the most valuable learning opportunity I’ve had so far. This article is simply my perspective on learning in the context of entrepreneurship.

I should point out that I do have a business degree and that no, I don’t feel I have graduated from the university of entrepreneurship… yet! RL].■

Richard Liew, founder of NZ Entrepreneur and Espire Media - www.espiremedia.com

www.nzentrepreneur.co.nz • 9

INTERVIEW

10 QUESTIONS with Bernadette Soares Bernadette Soares is an inspiration to all us Mum’s out there and so many more. She is the founder of Brand Value, the parent company of well-known beauty brands Natural Glow, Radiessence, Pharo, Enliven and BodEze. Bernadette also founded the charity Let Your Light Shine, set up to empower individuals and transform communities.

10 • www.nzentrepreneur.co.nz

You’re a mum who started her beauty empire from a kitchen stove while raising three children.

Can you tell us more about how and why you got started?

As a child, I knew that one day I would own my own company.

I grew up in India surrounded by a very business orientated family and was inspired by stories about my Grandmother who had set up our family property empire.

My children were still quite young when I started my business in New Zealand.

As much as I loved being a mum, I missed the creative side of working and needed a new challenge.

Looking for a part time job after 11 years of being a stay at home mum was daunting and I faced the barriers of perception around experience and responsibilities. Setting up my own business became more of a necessity than an option.

I tossed around a few ideas until I realised that I had a potential business sitting right in front of me.

For several years, I had been producing a natural hair removal product for family and friends made on my home stove from a family recipe passed down through generations.

All I needed to do was improve the formula so it resonated with New Zealanders. I added Kiwifruit and Aloe Vera and before I knew it my business was underway and growing in the local market.

Raising kids and running a business doesn’t come without its challenges, what’s your secret to successful business and family life?

I am very blessed to have a very supportive husband and have always been a very routine, organised mother.

I prioritised spending time with my children by investing in a housekeeper.

www.nzentrepreneur.co.nz • 11

Time to yourself must be a bit of a luxury, what do you do to blow off steam and keep sane?

Like any first love, I threw all of my energy and waking moments into starting up my business. In the last five years, I have made a commitment to making some time for myself.

My family escape once a year for an annual holiday together, I make a purpose of catching up with friends for lunch or coffee and make time for the gym and golf.

12 • www.nzentrepreneur.co.nz

You came here at the age of 21 from Mumbai and have made New Zealand your home. What do you love about being an entrepreneur in New Zealand?

New Zealand is one of the easiest places and most deregulated places in the world to start a business.

Entrepreneurism is really encouraged and celebrated here so it has been wonderful for someone like me to network with other successful entrepreneurs to grow and thrive in this environment.

“

“

Don’t be too precious about what you’re working on either, talking to people and seeking advice is key in the early stages.

As a Kiwi entrepreneur what has been your biggest challenge?

Distance to markets is one of the biggest challenges that New Zealand entrepreneurs face. Because of this, I started out by optimising my resources and focused on growing sales in New Zealand before I took the next step to exporting.

Another big challenge is managing the cost of goods.

We are proud to manufacture our products here in New Zealand but the cost is much higher than the likes of Asia or India making it harder for us to compete on price points with some of the global cosmetic brands.

You have a Masters Degree in Business Innovation and Entrepreneurship. Do you think you’d be where you are today without it?

I truly believe that ultimately, it fast-tracked my success.

Gaining my Master’s Degree increased my business acumen, knowledge and strategic ability but most of all it raised my confidence which has been the key to getting me ahead.

Do you think anyone has the potential to be successful in business? If so, what attributes do you think set apart those who succeed and those who do not?

I don’t believe that running a successful business is for everyone. Some people have a natural aptitude but what they really need is passion, drive, determination and hard work.

www.nzentrepreneur.co.nz • 13

You could probably write a book on this subject alone but can you share a few words of wisdom on how one might take a business they start at home to the likes of Beauty Brands?

Take into consideration your passion, skill set and available resources. When starting a business from home you have

14 • www.nzentrepreneur.co.nz

limited resources so you need to be careful with how you allocate them. For Beauty Brands, the key to growing from our roots to where we are today has been to strategically forming alliances with other businesses and partners, leveraging off their resources, skills, and associations.

Can you tell us more about your aim of one day using your businesses financial resources to serve a bigger purpose?

We engage with these small communities by mentoring and facilitating networking between individuals and organisations to develop innovative business ideas and strategies. The organisations we work with include councils, spiritual leaders, the community, local iwis, and businesses.

The desire and vision to set up a charity has been in my heart for a long time, from the day I started my business over 14 years ago. I wanted to be able to leverage my success to channel a portion of my The charity has a strong focus business resources and goodwill on working with women to benefit the wider community. that have not had the same opportunities in life that I have and who may be caught up in What are your hopes and dreams the cycle of domestic violence, for the charity you recently poverty, lack of education founded ‘Let Your Light Shine’?

Who is it for and who can help you or loss of self-esteem.

achieve its purpose?

The vision of Let Your Light Shine is to see small towns throughout New Zealand that are struggling economically and socially transform into thriving hubs of local and social activity.

In a short space of time, we have already developed mentorship programmes in Te Awamutu, Opotiki, and Kawerau that will contribute to change and significantly influence the lives of the people within their community. ■

Brand Value has now entered a new era of corporate and social responsibility donating a portion of proceeds from some of its beauty products to the operation of Soares’ passion project – the Let Your Light Shine charity. Find out more here.

www.nzentrepreneur.co.nz • 15

SPONSORED CONTENT

Blood,Sweat andTears New Tax Credit Available For Some Research & Development Companies

THE GOVERNMENT HAS INTRODUCED a new Research and Development (R&D) Loss Tax Credit to help give innovative companies access to some of their tax losses sooner.

This new credit enables eligible companies to ‘cash out’ (claim and be refunded) up to 28% of R&D-related tax losses, so they’ll have money to grow their businesses when they need it most.

Short-term, this change will help improve the cash flow of companies involved in R&D. In the past, these companies would have carried their tax losses forward and deducted them from their income once

16 • www.nzentrepreneur.co.nz

their company began to make a profit.

Long-term, this change will help encourage innovation.

Finding innovative solutions to everyday problems is a cornerstone of our culture. While we might not ‘fix it with no.8 fencing wire’ anymore, our can-do approach and self-reliant attitude are still hallmarks of the Kiwi way of life.

New knowledge gained by companies involved in R&D can result in improved materials, products or devices – all of which could help give our country a competitive edge and benefit the economy.

CASH TO KEEP CREATING The new Research and Development Loss Tax Credit aims to help ease this financial challenge for innovative companies.

BLOOD, RESEARCH, SWEAT, DEVELOPMENT, TEARS...

R&D makes unique demands of a company – and the individuals who take it on.

Often people involved in R&D are driven by passion – there’s a problem to be solved or a useful invention that has to see the light of day. The work can easily become all-consuming.

The long hours and late nights can take a toll.

However, the largest challenge Kiwi innovators usually face is finding the funding to keep going. The process of taking a product from imagination to market is not always linear or predictable – which makes it hard to budget for. At the same time conducting research and developing a great idea generally requires a significant financial investment.

Eligible companies could get up to 28% of their tax losses from R&D returned to them.

This could be a lifeline for businesses; making it that little bit easier to take their idea from their back shed to a shop in your neighbourhood.

CHECK IF YOU’RE ELIGIBLE AND APPLY ONLINE If your company meets eligibility criteria, you can start claiming back tax losses from the 2015/16 tax year.

Find out if your company is eligible and apply at www.ird.govt.nz/rd-credit If you think your company might be eligible, don’t delay.

To receive this credit, you must submit your application to Inland Revenue before your income tax filing due date for the 2015/16 financial year. ■

SALES & MARKETING

TAKING THE PULSE OF NEW ZEALAND’S SALES PROFESSION

Why is this important as an entrepreneur? Without sales, no business. It’s important we’re aware of the landscape we work within and how that impacts our ability to grow our businesses. As this article clearly points out knowledge is power, but only if you take action on what you know.

18 • www.nzentrepreneur.co.nz

“

Constant connectivity coupled with increasing dependence on the ‘all seeing, all knowing’ Internet has changed the way people buy and thus the way sales professionals must sell.

THE WORLD OF THE traditional sales professional has undergone significant change, especially over the last decade.

It wouldn’t be wrong to say that 2008’s Global Financial Crisis, as with other major historical economic events, played an integral part in the latest cycle of challenges; shaking sales organisations to the core when the money dried up.

While we have largely recovered from the GFC fallout, New Zealand sales professionals in both businessto-consumer, and business-tobusiness must now navigate the increasing impact of the online world, including social media, on lead generation and the sales cycle.

Recent research by Influence Central revealed that for 90% of consumers, an online review of a product or service is more important than input from a salesperson.

Constant connectivity coupled with increasing dependence on the ‘all seeing, all knowing’ Internet has changed the way people buy and thus the way sales professionals must sell.

It is clear that buyers like to do their own research to get the maximum value out of every dollar they spend before they make any purchase, and this has made the work of sales professionals even more challenging.

We spoke to five New Zealand sales training and development experts to take the ‘pulse’ of the sales profession in New Zealand and get their take on the three biggest challenges facing our sales professionals.

www.nzentrepreneur.co.nz • 19

Here are their insights.

MARTIN PERCIVAL MANAGING DIRECTOR ACHIEVEGLOBAL NZ

>PRESSURE TO DEVELOP NEW OPPORTUNITIES OR LEADS

>LESS EMPHASIS ON PRENew Zealand as a marketplace EXISTING RELATIONSHIPS has always been finite in terms of opportunity and leads.

As such, sales endeavours have often related to the cyclical buying requirements related to reinvestment and maintenance and then the GFC landed.

We’re still experiencing the spend rationalisation and conservative behaviour that permeated the years following the GFC. In addition, when we do spend we look for cheaper alternatives or drive discounts in our suppliers.

As a result, sales organisations are putting increasing pressures and emphasis on sales team members to adopt new strategies, new thought processes and skills; generally without training or support, to prospect and open doors in a marketplace already limited with opportunity as preexisting relationships dry up.

20 • www.nzentrepreneur.co.nz

Historically, the New Zealand marketplace has been heavily weighted in terms of interpersonal relationships.

Being able to build relationships built on trust meant long-term success and ensured that the competition couldn’t enter the fray. In the current climate, however, budget holders are expected to show a positive return on investment and often find themselves in an extended procurement process with additional team members who focus on the tangible financial aspects of a transaction rather than the immeasurable service or relationship aspect.

In essence, it has become about price and the salespersons who differentiated themselves through their relationships are struggling to maintain their position.

>LACK OF MOTIVATION Over the past few years, increased buyer expectations, longer sales cycles, reduced budgets, and increasing price competition have all contributed towards the fact that sales has become a far more challenging profession.

Sales professionals now need to work twice as hard for a budget, which has been slashed to the smallest permissible level.

Therefore, sales professionals now must possess a resilience beyond that which was required in the past – to remain motivated and excited about the next potential opportunity.

ROSS WILSON

>KEEPING UP WITH THE RAPID TURNOVER OF STAFF

>MAINTAINING A HUMAN RELATIONSHIP WITH THE BUYER IN THE DIGITAL AGE

Contacts, especially gatekeepers, as well as decision-makers, move on before you’ve been able to build trust and hence one has to start building trust and relationships with the new people all over again.

CEO GROWING ORGANISATIONS

Our customers’ time resource is stretched to breaking point.

Everyone is ‘meetinged out’ and exhausted. As a result, meetings are set weeks in advance if you get one at all.

Often we have to resort to ‘phone meetings’ instead.

Therefore, even existing customers are harder and harder to get time with.

>COMPLYING WITH MARKETING DEPARTMENTS DEMAND TO KEEP CRM (CUSTOMER RELATIONSHIP MANAGEMENT) SYSTEMS CURRENT AT ALL TIMES This requires hours of a salesperson’s time every week, taking them away from productive sales activity.

Obviously this impacts their sales performance and results.

CEO NEW ZEALAND SALES INSTITUTE

>LACK OF LASER LIKE FOCUS Every company in every industry has their own unique sales challenges, but one universal issue is the frustrated inability of sellers to focus on the most important things.

Salespeople fight the daily war against distractions and non-urgent activities that come up with the inevitable impact on focusing exclusively on what’s most important to your pipeline.

>EMBRACING TECHNOLOGY Technology adoption among sales professionals has been well behind marketing. There is now an explosion of sales automation technologies specific to sales professionals, but those same sales professionals need to take advantage of what is now in front of them. There is still tremendous scope for more effective tools to play an increasingly important role in improving sales productivity and effectiveness.

22 • www.nzentrepreneur.co.nz

“

Salespeople fight the daily war against distractions and non-urgent activities that come up with the inevitable impact on focusing exclusively on what’s most important to your pipeline.

“

STUART EDMUNDS

>NEED FOR GREAT SALES MANAGEMENT

Far too few salespeople have competent sales management who can guide, coach, support, mentor, motivate and direct their activities apart from keeping other conflicting priorities at bay and helping them in creating the best environment to ultimately drive (over-) achievement of sales.

JOANNE HYLAND DIRECTOR PROFORMANCE

>KEEPING UP WITH THE TECHNOLOGY Technology coupled with the speed of change is inevitably going to have a widespread and highly impactful effect on sales people and our ability to sell effectively. Our customers are able to access all sorts of information about ourselves, our company and our products through online sources without even conversing with us. Some of the information online we can control and hence is positive on the brand.

But, inevitably there will be information that we cannot control including friends putting inappropriate photos of us online, customers publishing product reviews we don’t like and competitors outplaying us. This puts increasing pressure on organisations and their sales teams to be constantly informed and able to respond appropriately.

Moreover, our sales resources have changed. Our customers expect us to have smart phones, tablets and to be able to immediately access sales information, stock levels, pricing options that help

them to make their decision.

They are not prepared to wait in this environment where we are all time poor and want immediate solutions.

>PROVIDING CUSTOMISED SOLUTIONS Sales is a competitive industry, where the dynamics change continuously. With all the technology we have at our fingertips, we should have live comprehensive sales data to inform, educate and advise our customer on the best solution for their business.

No two customers should be treated the same or given the same offer. In-depth analysis enables us to tailor our offer in a manner that is win/win for our customer and us. The outstanding sales person should aim to be in the position whereby your customer does not want to be without him/her.

>OVERCOMING OUR OWN LIMITATIONS A good salesperson needs to be aware of his/her skills and abilities as well as his/ her limitations. They need to source feedback and coaching to enable continuous selfimprovement. They need to look for opportunities to upskill, to grow and develop.

www.nzentrepreneur.co.nz • 23

>KNOWLEDGE IS POWER. More knowledge is more power. It is clear the modern salesperson must be provided with a level of management support and guidance that goes far beyond simply increasing their targets for new meetings or cold calls or sales each week.

PAUL O’DONOHUE CEO SALESSTAR

>GETTING IN FRONT OF THEIR TARGET MARKET The people who we need to reach have become busier than they used to be five years ago. Moreover, they are bombarded with 1000’s of marketing messages every day. Getting their attention is a big challenge.

>COMMODITISATION OF PRODUCT/SERVICE It is a global world and our products and services are being commoditised.

>PROLONGED SALES CYCLES Most of the time, companies only buy if they have to buy, so decisions are being stalled.

24 • www.nzentrepreneur.co.nz

The pressures of rationalised sales teams and budgets, increased reporting pressures and increased operational requirements can leave sales reps feeling isolated, unrecognised and vulnerable.

There needs to be more sales management capability in New Zealand, providing more coaching and support for sales team members.

The sales professional of today must understand that more than ever, in this everchanging playing field, it is the survival of the fittest.

On the bright side, the sales professional that is flexible, resourceful and innovative, and can add something of real value to each customer interaction will always be able to make his or her mark. ■

RESOURCE CORNER

As You Think I

n 1904, a little-known Englishman named James Allen wrote a small book called As a Man Thinketh. A hundred years later, this book has become a self-empowerment classic. New World Library author and publisher Marc Allen updated this timeless gem, recasting obsolete language and polishing the author's message to highlight the universal principles of the original.

James Allen's message has now reached a whole new generation of readers with As You Think.

Great truths are simple and easy to express, and James Allen's insights into self-empowerment are just that: Personal power lies within the mind. Once awakened, there are no limits to what one can imagine and then achieve with the power of thought.

The author shares deep insights into the essential relationship of a person's thoughts to personal character, life circumstances, physical health, life purpose, achievement, and personal serenity. As You Think is a simple yet powerful reminder that "all we achieve and all that we fail to achieve is the direct result of our own thoughts." We are the masters of our destinies. ●

Available from Amazon

By James Allen www.nzentrepreneur.co.nz • 25

Investment Corner

WhyYouNeeda FinancialModel EvenIfYouAren’t RaisingCapital

BY Nathan Rose, Assemble Advisory

26 • www.nzentrepreneur.co.nz

• Establishes goals. Imagine TOO OFTEN, EARLY-STAGE companies will operate what you want your business for months or even years to look like in two years without financial forecasts. from now. Now imagine Entrepreneurs tend to be what the next 24 months the type that prefer doing will need to look like, to planning, and it’s this very month-by-month, to get same “ready, fire, aim” attitude there. Imagine how many that makes entrepreneurs new leads your advertising willing to take risk and build budget needs to generate. businesses in the first place.

Imagine how your sales They’d prefer to spend their staff will need to perform time driving sales instead of in converting these leads poring over spreadsheets. into customers. Imagine the But a financial model is cost-per-unit of production. just as indispensable as Imagine how much you will a business plan. In fact, need to charge for each unit a financial model and a in your product range. Is business plan are best seen your brain hurting yet? With as two sides of the same coin a model, everything is all in – the model calculates, while one place for you to refer to the business plan articulates. at any time. Knowing what needs to happen across If your company is ambitious every area of the business for success, you need to lay also provides critical out a roadmap for how it plans performance standards to reach that success. Here’s for everyone within the how a financial model will be company to meet. able to help your venture.

www.nzentrepreneur.co.nz • 27

“

“

Potential investors almost always demand a financial model. But what many don’t realise is that partners and employees can also be positively influenced by the presence of a good financial model.

• Improves your business plan. A business plan has very little basis without a financial model that backs it up – the financial model ensures that everything in your business plan has had rigorous analysis put into it, and makes sure all parts of the plan cross-refer to each other consistently.

Your business plan will be robust and it will add up.

• Helps bring onboard key people. Potential investors almost always demand a financial model. But what many don’t realise is that partners and employees can also be positively influenced by the presence of a good financial model.

It seems virtually everyone would rather work with an entrepreneur with a clear vision and a plan of how to realise that vision.

28 • www.nzentrepreneur.co.nz

• An objective step-back.

The act of putting together a financial model can reveal unexpected insights about your business. You might not have realised that if you keep spending the way you are, you’ll run out of cash within less than six months. You might not have realised that to grow to the level you were imagining within the next two years, it would imply an impossible 90% share of the total market. You might not have realised that with all the staff you were planning to hire, you’ll need to spend thousands more than you initially imagined on new office space and computer equipment. It’s better to be aware of these things before you invest too much time or money, rather than have them take you by surprise.

“

“

As author Alan Lakein said, ‘failing to plan is planning to fail’. Even if you never show your financial model to anyone outside your business, the exercise of putting one together is one of the most valuable investments an entrepreneur can make.

• A working tool, on an ongoing basis. Building a financial model is not a one-time thing. Like your business plan, it will adapt as goals are achieved, missed or exceeded. New opportunities will come to light, your business will pivot, and your financial model will change along with your business. You will come to see it as a critical business-planning tool.

Is building a decent financial model time-consuming?

Absolutely. But it solidifies your thinking and ensures you are focusing on the right things. And what could be

more time-consuming than continuing to work on a business with no real idea of what you want it to look like in the future, and no real idea on how to get it there?

Aiming for ‘growth’ is not enough – you need to know the ‘how’, the ‘what’, and the ‘by-when’, line-by-line.

As author Alan Lakein said, ‘failing to plan is planning to fail’. Even if you never show your financial model to anyone outside your business, the exercise of putting one together is one of the most valuable investments an entrepreneur can make. ■

Nathan Rose is an experienced investment banker offering services in financial modelling, building great pitch decks, and capital raising analysis for entrepreneurs and small business. Find out more here.

www.nzentrepreneur.co.nz • 29

Sponsored Content

Generator

Changing the Way We Work One Desk at a Time

30 • www.nzentrepreneur.co.nz

RYAN WILSON DIDN’T SET out to ‘disrupt’ the commercial real estate sector when he created coworking space, Generator in Auckland’s Britomart district five years ago, but recent news articles suggest that he’s been at the pointy end of the biggest change in the sector for decades.

From the New York Times to the NBR, articles are appearing praising the growth in coworking and how it is changing the way people work and forcing the market to change the way they do business.

Forbes event went as far as saying that ‘Every Office Will Be A Co-working Office In five Years’.

And when you walk into the edgy and vibrant premises of Generator in Britomart, it is easy to see why.

With a mix of hot desks, casual work tables in the café, enclosed offices, event spaces and boardrooms, Generator is like a microcosm of the greater CBD, but with every space delivered with style and character.

It offers almost every kind of business or entrepreneur a space to work from that suits their style and their budget.

The place hums with activity, with members working on every available space – including Wilson, who often works from a table in the café, coffee in hand, laptop on the table, chatting with the members.

“Co-working is a modern buzzword, but essentially, a co-working space is simply a mashup of a serviced office, a members club, and the Koru Lounge,” says Wilson.

“Someone owns the lease and provides the infrastructure and member businesses and individuals share the space,” he says. “Simple.”

Generator was one of the first in New Zealand and is undoubtedly the market leader. With 300 members and 80 companies occupying 3,000 sqm of office space, over three buildings in the CBD, Generator has become an important business hub for Auckland.

www.nzentrepreneur.co.nz • 31

32 • www.nzentrepreneur.co.nz

“

“

Why work alone from home staring at the unwashed breakfast dishes when you can work in bright surroundings, surrounded by a community of like-minded and driven entrepreneurial people?

Members including the likes of facebook, Pandora, f5 network, Getty images, Expedia, Juniper, Simpl Health and A2, mean that Generator is not just a hub for entrepreneurs, it is the landing point for international businesses wanting to plug into the energy of New Zealand.

“International companies want a flexible and scalable place to work, that gives their team all the benefits of a larger workplace, whereas the smaller business or entrepreneurs want to feel connected and well resourced above all,” says Wilson.

“Why work alone from home staring at the unwashed breakfast dishes when you can work in bright surroundings, surrounded by a community of like-minded and driven entrepreneurial people?” he adds.

Generator was conceived out of a visit to London in 2009, where Wilson first came across a variation of the co-working model in a club context with Soho House. It took the best elements of a traditional members club and made it relevant to the movers and shakers of the world, entrepreneurs and those striving to go out and do their own thing.

Wilson set out to replicate that in New Zealand – just as the Global Financial Crisis hit, fundamentally changing the commercial real estate and business landscape. Businesses of all types experienced rapid change - it meant rethinking the way they managed their businesses and introducing new flexible work-practices.

www.nzentrepreneur.co.nz • 33

“Simply put, dynamic businesses just didn’t want to commit to the traditional CBD office space anymore,” he said.

Wilson identified Britomart as the place for Generator’s first home.

“Britomart was still largely undeveloped when we first came to the area, but we could sense the soul that was being created here by Cooper and Co and their team.

“We have definitely benefitted from the vibrancy of the area.

It provides even our smallest members with the energy, entertainment and amenity that only an office in the heart of the city can provide,” he said.

34 • www.nzentrepreneur.co.nz

Ryan at Generator

So, where to next for Generator now the real estate journalists are writing about Co-working spaces disrupting the market?

“There are certainly competitors coming into the market now and the coworking model is evolving.

But we have the advantage of having been one of the first of the new breed in the market and setting the standard.

“Right from the beginning we got strong interest from people who wanted to be part of the unique offering that we were able to provide – many of those early enquiries turned into long-term residents who continue to grow and to be part of our unique culture.

“For Generator to expand successfully we need a landlord who is aligned with our way of working and can see the value that we can bring to a building or office precinct - and ultimately we will need strong funding partners,” says Wilson.

“We want to take that culture and environment and make it available to people all over New Zealand and are looking to expand our business into other complimentary verticals and other regions.

“But for now, we’re not resting on our laurels and we’re keen to stay at the head of the disruption of the marketplace, growing and adjusting as the market demands,” he said. ■

Reference: Forbes Magazine. You can find out more about Generator’s Co-working space in Auckland’s CBD here: www.generatornz.com

www.nzentrepreneur.co.nz • 35

PARTING SHOT

“Making mistakes of all types and consequences is part of an entrepreneur’s journey, the only real failure is not trying.”

-Jeff Clavier

36 • www.nzentrepreneur.co.nz