NZ Entrepreneur Issue 17

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

April 2014

Young Enterprise Trust

Special Feature

Bookkeeping Basics for Budding Entrepreneurs An interview with James Coddington of Pride & Joy Ice cream Plus heaps more inside!

iP is about igniting passion Great ideas shape our world if they are harnessed and protected in the right way. At AJ Park, we work with you to understand your business and where you want to take it. Our experts specialise in helping you identify, protect, commercialise, and manage your intellectual property. If you’re looking for clear IP advice, call us today.

0800 257 275 I www.ajpark.com I New Zealand + Australia

AJ Park is about iP • intellectual property • igniting passion • ideas pervading 2

Contents 4

From the Editor

6

Bookkeeping Basics for Budding Entrepreneurs

10

Young Enterprise Trust Special Feature

14

Interview with James Coddington from Pride & Joy

18

Choose and Use Your (Ad)words with Care

22

Victor Yuen: Aura

22

The 9 DON’TS of Business

24

Ecosystem - Ignition

28

Entrepreneurial Intelligence

29

Parting Shot

From the Editor

I

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.

will always remember my final day of school.

For someone who disliked school as much as I did, it was a relief to finally start on my own path and not have to go back!

EDITOR / Nick Harley

It was several years until I discovered the world of entrepreneurship, and I’ve often wondered if my school was to run one of the schemes provided by the Young Enterprise Trust (YET) back then how it may have affected me.

CONTENT ENQUIRIES /

For this special issue of NZ Entrepreneur we’ve decided to highlight the amazing work the Young Enterprise Trust do to foster the next generation of #nzentrepreneurs. They have been a supporter from the very first issue of this e-magazine and I’ve personally been lucky enough to be involved in a few of their valuable schemes. It’s good for us to be able to give back and say thanks to their awesome team.

richardl@espiremedia.com

If you can spare a few hours, or a few dollars, you can help create the next Kiwi success story. Read on for more information about YET’s schemes, alongside some amazing stories and useful business tips to get you motivated!

Nick Email nick@nzentrepreneur.co.nz

N Z E N T R E P R E N E U R I S P R O U D LY BROUGHT TO YOU BY:

4

ABOUT /

ART DIRECTOR / Jodi Olsson GROUP EDITOR / Nick Harley CHIEF FINANCIAL OFFICER / Alastair Noble

Phone Richard on (09) 522 7257 or email richardl@espiremedia.com ADVERTISING ENQUIRIES / Phone Richard on (09) 522 7257 or email

ADDRESS / NZ Entrepreneur, C/- Espire Media, PO Box 99758, Newmarket, Auckland 1151, NZ WEBSITE / 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.

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BUSINESS LESSONS

Bookkeeping Basics for Budding Entrepreneurs

GOOD FINANCIAL RECORDS ARE THE CORNERSTONE OF EVERY SUCCESSFUL BUSINESS - LISA MARTIN, MANAGING DIRECTOR OF SPECIALIST SMALL BUSINESS BOOKKEEPING COMPANY, GOFI8URE, EXPLAINS WHAT YOU NEED TO DO AND WHY

6

C

ongratulations! You are most likely reading this e-magazine because you have recently taken your first

steps into starting a business or you have

‘the big idea’ at your fingertips and are about to put your plans into action.Just before you go any further with your start-up, you might want to spare a thought for how you are

going to manage your business accounts.

Without wanting to dampen your creative

entrepreneurial spirit, I must tell you that putting

solid bookkeeping systems in place early-on in the life of your business is far easier than having to

sort through a muddle 12 months down the track.

Also, did you know that if you have dedicated

processes for collecting, recording and storing all your financial data you can use these figures as a ready-reference tool to show how your business

is tracking, whether you should employ more staff and if you’re ready to grow.

You can match your milestones against your

accounts and see if they all stack up. Importantly,

from your financial dashboard you’ll also be able to see any inconsistencies or red light warnings.

Sounds good doesn’t it? If you’re nodding, read on…as now I’ll give you FIVE tips on what you need to do from here.

1.

PLAN, PLAN AND PLAN SOME MORE:

Having the great idea is fantastic but you need

to add some action to make it work. You already know this but, before you leap off and do the

doing part, you first have to plan how and what

you’re going to do. Apply this to everything and you won’t go wrong. Apply this to your financial

set-up and you’ll be streets ahead of the game.

The first step in your financial planning is to make sure that you treat your business as a separate

entity. This means opening dedicated business

bank accounts and using business EFTPOS and credit cards. Do not make the mistake of mixing

the two. This will just cause headaches when you are trying to reconcile your bank statements with your expenses and your GST.

The second thing you need to do is choose an accounting software system that will work for

you. Paper versions of cash books and receipt

pads aren’t really viable anymore and you can’t manipulate the data to give you the big picture.

Choose an electronic system that you’ve heard of or that your business friends use and are happy with. I recommend Xero for all small

businesses. The Xero software is real-time, it’s

in the cloud so you can access it from anywhere at anytime, it’s easy to use and it aligns all your numbers so they are simple to interpret for you and your accountant.

You can match your milestones against your accounts and see if they all stack up. Importantly, from your financial dashboard you’ll also be able to see any inconsistencies or red light warnings.

The Xero program means you

can actually use the financial

information you’re collecting

to improve your business. It gives the numbers part of

your business a purpose

and makes it exciting. For

example, at your fingertips you’ll have information about your cash flow situation, your profit

margins, your expenses

and what bills you’ve still

to pay.

7

BUSINESS LESSONS

2.

KNOW YOUR ABCS

When you’re setting up your office, make sure you’ve included a couple of filing cabinets.

While we’re in an electronic age, there will always be paperwork and that paperwork shouldn’t sit in a pile on someone’s desk.

Buy some folders, clear files and hanging

pockets, put everything into categories and file

in alphabetical order. Make sure you get a GST receipt for these purchases and file that too.

8

always best to. Group your receipts so you know how much you’re spending on, say, office stationary and building maintenance. Your accountant will love you for this when you come to hand over your ‘books’ for your tax return. The more information that you can include in your bookkeeping the more empowered you’ll be.

Another note to bear in mind is that you can’t claim for everything on your expenses.

The general rule of thumb is that if it helps

Even better, download the ReceiptBank app

you make a profit, you can claim it. Sorry,

heap of time. Remember, you don’t need to

new pair of Nike running shoes (even if

to your smart phone and save yourself a whole

but having your nails done or buying a

keep receipts for items under $50 but it is

you wear them to work) won’t wash.

4.

My last tip is ‘do it now’. You’re an entrepreneur and you have heaps of energy.

Apply a little to your finances right now and you won’t regret it.

TALK TO EVERYONE

The best way to find out about how best to run

a business is to ask other business people. Just remember to include asking about how they

organise their bookkeeping – what they use,

who does it and what they record. It’s great to

find out about marketing strategies and to glean profit making tips, but you can’t run a full page

advertising spread or adjust your pricing without knowing what your finances look like.

There’s often a reluctance to talk about

bookkeeping as there’s an old stereotype that suggests it can be boring. But, think of it this

way, bookkeeping is central to your business, it’s

3.

the big cog in the middle that keeps everything

turning – without it your business won’t succeed.

UNDERSTAND YOUR FINANCIAL

OBLIGATIONS

There are a raft of legal and financial obligations that business owners need to be aware of, not

least filing annual company accounts and usually monthly or two-monthly GST returns. The good news is that the Inland Revenue now offers a

online service which is quick to do and provides

I know that not everyone’s strength is numbers (and that you didn’t go into business to be a

bookkeeper – but I did!), so try to make friends

with the financials – they are there to help you not drag you down.

5.

BE READY FOR THE NEW TAX YEAR

My last tip is ‘do it now’. You’re an entrepreneur

you with an electronic copy – you need to file

and you have heaps of energy. Apply a little to

Diligence in this area will save you so much time

It might not be your forte and that’s fine – bring

missing documents when you come to pull your

especially as this month is the start of a brand

this in your system as soon as it comes through.

your finances right now and you won’t regret it.

later on and means you won’t be hunting for

in someone to help you – but just get onto it,

annual financial information together.

new financial year.

One word of warning around GST and something

It’s a bit like the 1st January – this is your

is not your money! If you are GST registered (and

a quick look at how you’re currently keeping your

that some business owners don’t quite get…GST

it’s a good idea to do), GST is applied to products and services at a current rate of 15%. This means that we all go around paying and collecting GST on our invoices. However, we then need to give

this money back to the IRD so, whatever you do, DON’T spend it. Using the GST fund, even as a one-off, is a slippery slope…just don’t go there.

opportunity to start how you mean to go on. Take books and think about how you can do it better.

And if it’s all too difficult, there is absolutely

nothing wrong with bringing in the experts. You wouldn’t re-wire your office if you weren’t an

electrician. In the same way, you don’t have to

work out your financials if you don’t know where to start. Good luck! ●

Lisa founded GoFi8ure in 2002, recognising a need for efficient, accurate, mobile and on-site financial administration and accounts management for small businesses operating in the greater Wellington region. She is currently the Vice President of the New Zealand Bookkeepers Association Inc. 9

S P E C I A L F E AT U R E

Young Enterprise Trust

Rod Drury is just one of the 55,000 people who took part in the Young Enterprise Scheme at school.

OUR SPECIAL FEATURE THIS MONTH DETAILS THE AMAZING WORK OF THE YOUNG ENTERPRISE TRUST IN CREATING THE NEXT GENERATION OF NZ ENTREPRENEURS TEEN BUSINESS PROGRAMME MAKES MASSIVE IMPACT

since its inception, and Young Enterprise Trust

The Young Enterprise Scheme has been

CEO Terry Shubkin wanted to find out how

have gone on to make massive contributions

“Anecdotal feedback from students, teachers

Enterprise Trust has just released a research

but we wanted to collect some concrete data

impact.

Terry. “That way we could contextualise and

completed by more than 55,000 students, who

students had benefited over the years.

to New Zealand’s economic growth. Young

and parents has always been very positive,

report which charts the programme’s amazing

around the Young Enterprise Scheme,” says

The Young Enterprise Scheme (known to many as

detail the outcomes of this programme for

being rolled out nationwide in 1981. An estimated

In October of last year, Young Enterprise Trust

the YES programme) was piloted in 1980 before

10

55,000 students have completed the programme

alumni – both in the short and long term.”

The Impact of the me Young Enterprise Sche ober 2013 YES Alumni Survey Oct

The positive outcomes were not limited to those alumni who went on to be entrepreneurs.

“Respondents told us that they are working in all sorts in industries including IT, Media, Healthcare, Manufacturing and Professional Services,” says Terry. “A large number have also returned to education.

Regardless of where they are today, the vast majority of our alumni got some positive benefits from the YES programme.”

Key findings from the research showed that: • 32% of all respondents said that YES played a part in their decision to change their pathway out of secondary schools

1

surveyed alumni whose ages ranged from 18 to nearly 50. More than 100 respondents completed the survey, including 22 who identified themselves as entrepreneurs.

“The 22 entrepreneurs have gone on to collectively start 47 companies, and have created more than 1000 jobs between them,” says Terry. “That’s a significant contribution to the New Zealand economy. Twenty-one of the 22 entrepreneurs said that the Young Enterprise Scheme was a factor in their decision to become an entrepreneur – and that’s something we’re very proud of.”

YES IGNITES A PASSION FOR ENTREPRENEURSHIP Nigel Bamford is just one of the many YES alumni who has gone on to start his own business. Nigel took part in the Young Enterprise Scheme in 1993 at South Otago High School.

“I don’t think we made a lot of money, but we learnt a lot about business,” he says.

Nigel went on to start his first business at 23 and is

• 87% of all respondents said they learnt about teamwork through YES, while 80% improved their confidence as a result and 74% gained communication skills • 100% of all respondents would recommend YES to current students “This research highlighted to us the range of benefits that students get from the YES programme,” says Terry. “We’re very proud to have played a part in the personal development of so many young New Zealanders.”

Young Enterprise Trust is now actively searching out alumni of all ages, and even has its’ first alum on the Board. Mark Vivian is a partner at MOVAC Venture Capital and took part in YES while at Scots College. now the founder and CEO of Escea Gas Fireplaces.

Escea employs 45 people and its products are

being sold in Australiasia, the UK, Europe and North

America. The company was a Deloitte Fast 50 award

winner for three years in a row, and Nigel was a finalist for the 2006 Ernest & Young, Young Entrepreneur of the Year Award.

Nigel says that Young Enterprise is a great way to get your first start in sales and marketing.

“Sales is one of those careers that seems to be 11

S P E C I A L F E AT U R E

quite undervalued in New Zealand, and not seen

Rachel says the Young Enterprise Scheme

reality is, every company lives, dies and survives

independent, about being organized, and

as a great way to make a living. But the simple

on the quality of its salesmanship, its salespeople

about working in a team. It was great to

Rachel Taulelei is another member of the YES

and support others as well as lead.”

through the Young Enterprise Scheme. Rachel

Enterprise Scheme in 2000, and has gone

Road, and is the co-founder of Wellington’s City

Jonny’s company has provided music

sits on Westpac’s External Sustainable Business

throughout the Wellington region.

Trust. In 2012 she was awarded the Sir Peter

lollies inside it. We sold out very quickly – everyone

and its marketing.”

learn how to delegate and work together

Alumni whose passion for business was ignited

Jonny Wilson took part in the Young

runs sustainable seafood company, Yellow Brick

on to form the Goodtime Music Academy.

Market. She is a Director of Grow Wellington,

lessons to more than 5000 primary students

Panel, and chairs the Wellington Culinary Events

“Our YES product was a painted plant pot with

Blake Emerging Leader Award alongside Richie

wanted to eat the lollies but threw away the pot!”

McCaw and Phil Keoghan.

Jonny says he didn’t do very well at high school,

“I took part in the Young Enterprise Scheme at St

mostly because he wasn’t very passionate about

Rachel. “We sold a food product – it was always

him an opportunity that was completely different.

Oran’s College when I was in the 5th form,” says

the things he was learning. Young Enterprise gave

about food for me! We sold biscuit crumbs as a

“I highly recommend it. When you get into the

baking product. We managed to get our product stocked in the local New World and we also sold to friends and family.”

12

taught her a lot. “I learnt about being

Young Enterprise Scheme, you’re thinking about creating something new which has never been done before.”

An estimated 50,000 students have taken part in the Young Enterprise Scheme since the programme began, including: Mike McRoberts: TV3 Journalist and News Anchor; Qantas Television Award for TV Journalist of the Year 2006; Ambassador for UNICEF and KidsCan

Rod Drury: Founder of Xero; New Zealand Herald Business Leader of the Year 2012; Ernst and Young Entrepreneur of the Year 2013 Paul Brock: CEO of Kiwibank Nathalie Whitaker: Founder of Givelittle Paul Soong: Head of Interactive at Designworks Rachel Taulelei: Founder of sustainable seafood company, Yellow Brick Road; Sir Peter Blake Emerging Leader 2012 Paul Grover: Founder of Observatory Crest Mike Clist: Managing Director of Canary Data Rebecca Caughey: Founder of music management company Funktion Music and manager to Ladi6 and Shapeshifter; Sir Peter Blake Emerging Leader 2008 Brady Dyer: Founder of Brady DyerPhotography Seeby Woodhouse: Founder of Orcon; Ernst & Young, Young Entrepreneur of the Year 2004 Stefan Lepionka: Founder of Stefan’s and Charlies Kelvin Wickham: Managing Director China/India, Fonterra

Meg Bartle with fellow alumna Aimee Groom

CHANGING LIVES

For some, the Young Enterprise experience has been lifechanging. Almost a third of the alumni who responded to the survey said that YES had played a part in their decision to change their pathway out of school.

“This was an incredible outcome, and not one that we expected,” says Terry Shubkin. “We always knew the programme made an impact, but the extent of it is really amazing.

Meg Bartle is a recent graduate of the programme, and directly attributes where she is today to YES, Meg was a year 12 student who “hated school” but took part in The Lion Foundation Young Enterprise Scheme at New Plymouth Girls’ High School.

“I don’t know where I’d be without the scheme,” she says.

Meg is in her final year at Wellington’s Victoria University doing a triple major in international studies, economics and marketing. She also visited Asia earlier this year as a recipient of the Prime Minister’s Scholarship for Asia. She travelled with 24 other recipients to Cambodia, Thailand, Laos, Singapore, Indonesia and Vietnam to learn about each country’s economic growth and development. ●

HOW YOU CAN HELP Three thousand students take part in The Lion Foundation Young Enterprise Scheme each year.

Here are three ways you can help them: 1. Mentor: Meet with a YES team each month for a year to provide feedback and advice.

Contact us to sign up.

2. Donate: Make a donation via Givealittle 3. Sponsor: Talk to Young Enterprise Trust about regional and national sponsorship opportunities 13

I N T E RV I E W

Pride & Joy James Coddington

14

Nathans Pod

ICE CREAM IS NO LONGER JUST STICKY-FINGERED FUN FOR CHILDREN; IT’S A SERIOUS GLOBAL BUSINESS OPPORTUNITY. OR AT LEAST, IT IS IN THE HANDS OF JAMES CODDINGTON, FOUNDER AND MYSTICAL PENGUIN (NO ACTUALLY – IT’S ON HIS BUSINESS CARD) AT PRIDE & JOY – A NEW ZEALAND START-UP GIVING REMARKABLE UNEMPLOYEES THE CHANCE TO DEVELOP INTO TRULY REMARKABLE BUSINESS OWNERS.

H

e’s urbane and as chilled as his product when we catch up outside the Auckland Waitemata Pod – a funky

steel cube-on-wheels that serves as a mini ice

cream store. One of four Pods currently in New

Zealand, James tells me they’re aiming to have 15 in action by the end of the year, and 255

in Australia. The other penguin behind all this

activity is business partner Tony Balfour (former Icebreaker GM), who handles brand building, while James, as he says, “gets shit done”.

“We had a lot of ideas about what the vehicle

could be,” James recalls, “And then we went to Giapo [ice cream restaurant on Queen Street] one day and ended up having a big chat with the owner, Gianpaolo Grazioli.

That conversation was integral to us

choosing ice cream – his passion was

infectious. It just made sense – ice cream is

synonymous with New Zealand, the margins are good, and its loved everywhere.”

After roping in ice cream wizard Ross McCallum

It’s a plan of world domination – “We wanted

(co-founder of Kapiti) to create their range

resonated with a big group of people all over

accepting applications from would-be Podsters

helped people. ”With a blank sheet of paper

or aren’t growing in the one they have.

to create a global business. Something that

of flavours, Pride & Joy were ready to start

the world, that didn’t just sell things, but actually

– remarkable people who either can’t find a job,

in front of them, James and Tony realised that

If they meet the criteria, they buy their own Pod for

the big group they were looking for was the

unemployed – with unemployment rates on the rise, they needed a business model that could harness this pent-up people potential. All well and good – but why ice cream?

$30k, get put through an intensive 30-day training program, and voila – a business owner. James

tells me it’s very much a people business – “Ice

cream is secondary to creating opportunities – it’s about the people behind the ice cream.”

15

I N T E RV I E W

“

Usually it would be really messy starting your own business – you don’t know where to begin, you don’t have the capital, the training, the support. We give them all the tools and the brand, but it’s up to them to sell the product.

16

James & Tony

I ask how easy it is to be a Podster – is it all smooth scooping on the road to ice cream success, or are there some melt-downs?

“Usually it would be really messy starting your own business – you don’t know where to begin, you don’t have the capital, the training, the support.

We give them all the tools and the brand, but it’s up to them to sell the product.

Each Podster is responsible for finding a location and doing their own marketing – we tell them it’s all about one customer at a time, building that community. The best part is – with such low overheads, they’re profitable from week one.”

Pods purchase their weekly supply of frozen joy from ‘Hubs’ – 40ft of ice cream manufacturing power on wheels. Each Hub can keep 55 Pods happily supplied. They work with the ‘Joy Mix’ developed by Ross McCallum – the base for all the ice cream flavours, produced at Green Valley Dairies using organic New Zealand milk.

Hubs (designed to be purchased by experienced business people) are sold almost at cost by Pride & Joy, same as the Pods – the monetisation kicks

James & Tony - Ex Unemployee

in with the ice cream sales. “This model allows us to scale – the Joy Mix can be blast frozen and shipped anywhere in the world. Wherever the Pod, the ice cream you buy will have that same New Zealand dairy taste.” It’s simple – cleverly so.

explain that cost of sales had to be paid back out of that!” Two-and-a-half year old son Finn is a very willing taste-tester, and partner Mandy, who “lives the highs and lows of the business” is there to have a glass of wine with at the end of the day.

I ask James how his family is enjoying the ice cream mayhem. He laughs, and tells me they’ve gotten used to all the ideas on paper scattered around the house.

It’s clear that James means business – the global brand he’s dreamed of is there within his reach, and he’s not planning on giving up until shiny Pride & Joy Pods dot the globe.

It seems he’s not the only entrepreneur in the family – 11 year old daughter Olivia was quick to adopt the mobile ice cream model, strapping a cart to her pushbike and promoting herself as ‘The Ice cream Girl’ on a cardboard sign in Millbrook Park.

“Some days it feels like you take one step forward, then one back, a sidestep, and then you’re sprinting towards the finish line, only to have some bystander step out and whack you in the face.

But even then, there’s nothing more exciting than creating a business – there are very few people who take the world forward compared to those who settle.” ●

“She made $1,100 for a fundraiser,” says James proudly. “The tricky part came when we tried to

Latesha Randall is an enthusiastic connector, entrepreneur, and writer based in Raglan - she enjoys working with start-ups and business owners as one half of Seb & Tesh, helping them create, clarify and implement their business ideas. www.sebandtesh.com.

17

IP IN ACTION

Choose and Use Your (Ad)words with Care IN THE RECENT CASE OF INTERCITY GROUP (NZ) LTD V NAKEDBUS NZ LTD, A KEY LESSON EMERGED: A COMPETITOR CAN EFFECTIVELY USE YOUR TRADE MARK AS A GOOGLE KEYWORD WITHOUT BEING LIABLE FOR TRADE MARK INFRINGEMENT. HOWEVER, USE OF SOMEONE ELSE’S TRADE MARK AS A KEYWORD IN CONJUNCTION WITH OTHER VISIBLE FORMS OF USE – IN THE TEXT OF AN ONLINE AD FOR EXAMPLE – DOES CONSTITUTE TRADE MARK INFRINGEMENT. LET’S EXPLAIN. BACKGROUND

18

The Google AdWords service provides online

InterCity and Nakedbus are direct competitors

advertisers with the ability to have their ads appear

originated in the mid-1980s as the name for the

are entered in the search.

Zealand Railways Corporation. It enjoyed a

search terms used by their target customers,

arrived on the scene in 2006.

to their website. This typically means using the

in the long-distance bus business. InterCity

next to search results based on the ‘keywords’ that

long-haul passenger coach service of the New

Smart advertisers research the keywords or

dominant position in the market until Nakedbus

and tailor their ads accordingly to drive traffic

From its launch, Nakedbus has referred to ‘inter

keywords in the text of the ad itself, but not always.

from the get-go, InterCity has taken issue with this.

the use of both ‘inter city’ as keywords and in the

that a Google search for ‘inter city’ generated

InterCity sued Nakedbus for trade mark

words ‘inter city’ in the heading and description,

of ‘inter city’ was likely to deceive or confuse

city’ (and variants) bus travel in its marketing and,

Nakedbus’ online advertising campaign involved

The situation revved up when InterCity realised

text of their ads.

Nakedbus online advertisements featuring the

infringement, also arguing that Nakedbus’ use

which then linked to the Nakedbus website.

consumers. They went to court and the court ruled.

THE JUDGEMENT

WHAT DOES THIS MEAN?

The High Court of New Zealand found that Nakedbus’ use of ‘intercity’ and ‘inter city’ as keywords in its Google AdWords campaign did not infringe InterCity’s trade mark registrations, breach the Fair Trading Act, or amount to passing off. However, Nakedbus’ use of ‘intercity’ and ‘inter city’ as keywords in conjunction with use of those terms in the text of ads or on its website, did infringe InterCity’s trade mark registrations, amount to passing off, and breach the Fair Trading Act. In effect, blatant and visible use of InterCity’s trade mark in Nakedbus’ online ads was against the rules whereas purchasing the keywords ‘inter city’ did not in itself constitute an infringement. Key to this decision was the judge’s acceptance of the argument that if the consumer could not ‘see’ the trade mark in use, then it could not be ‘taken as being used as a trade mark’.

Business and brand owners need to be aware that a keyword which would normally direct traffic to their website can be purchased by a competitor.

Although a trade mark owner may still have a legal remedy if this happens (passing off or misleading conduct under the Fair Trading Act 1986), if the keyword does not appear in the AdWord text then a claim for trade mark infringement cannot be made.

And on the flipside, advertisers that plan on purchasing keywords that are identical to trade marks owned by others need to be aware that visible use of those words in the text of their ads is against the rules!

However, that may not be the last word on this case. We understand Nakedbus has appealed the decision to the Court of Appeal so the position may change in future.

Watch this space!

Written by Jessica Miles, Solicitor, and Kim McLeod Partner.

Both are part of the AJ Park Auckland litigation team.

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19

TA K I N G T H E P L U N G E

Roy & Victor

Victor Yuen

Aura

EACH MONTH WE TALK TO AN UP AND COMING ENTREPRENEUR James & Tony - Ex Unemployee WHO HAS TURNED THEIR IDEA INTO A REAL BUSINESS.

BRIEFLY TELL US ABOUT YOUR BUSINESS. HOW DID YOU FIRST COME UP WITH THE IDEA?

Since that initial concept, market validation

Our company is called Aura and we are a

an iBeacons (instead of RFID) solution which

customer experience technology company. We

help large businesses deliver amazing customer experiences, ones that maximise the lifetime value of their customers.

Back in April 2013 I was exploring the concept

and research, we have been led to develop

we’ve recently implemented in one of the major

Australasian banks. The feedback so far has been extremely positive and has gained international

media coverage. The iBeacons solution is one of our first products that we will initially apply to the

of a loyalty program for a European car

banking and retail sectors.

need for staff to be able to greet each customer

WHAT IS THE BIG GOAL FOR YOUR BUSINESS?

dealership. During that process, I identified the by name. Each customer is spending over

$100,000 per purchase and should be treated as VIPs. The problem then arose, how do you

guarantee this happens every time a customer

walks through the door - especially challenging when you have many sales staff.

From this problem, spawned my solution of

giving customers key rings embedded with RFID tags. These RFID tags then get detected as a

customer walks through the door and then their

information is automatically displayed on a tablet on the staff member’s desk.

20

Our goal is to be the “go to” company when it

comes to disrupting the status quo and innovating on an industry’s customer experiences, in the

same way that Apple is the company known for

exceptionally well designed consumer products.

For example, in the banking sector, there are a lot of legacy systems and processes which for the customer means forms, queues, security,

impersonal service etc. Aura brings its expertise and technology products to personalise and

streamline the experience that you have when visiting a bank.

Aura

WHAT INSPIRED YOU TO TAKE THE PLUNGE? It was a successful businessman in hospitality that really helped me get things moving. After finding his details using a whois search on his domain I pitched the idea via email and to my pleasant surprise, he replied and accepted my request for a coffee meeting.

I remember sitting at the restaurant across from him and it was two thirds of the way through the meeting. I had finally stopped asking him questions about his businesses (as I admired what he had achieved) and gave him a short elevator pitch. It was at the end of this conversation that he said to me out of the blue - “If you’re looking for an investor, I’m keen to invest. What are the next steps?”.

At that point, I could scarcely contain my excitement and responded “Uh… as I mentioned in my email, it’s only an idea at this stage… but I’ll go talk to my developers who are just over there”. That’s how it started. It was the fact that someone put their faith in me and my idea that was the catalyst for building Aura. I never would have thought it would happen that way - and since then, I’ve realised it’s just a matter of taking the action and giving it a go. You never know whether you’ll stumble upon someone that really wants what you’re offering - like I did.

WHAT HAVE YOU FOUND TO BE THE MOST CHALLENGING ASPECT OF BUILDING YOUR BUSINESS SO FAR? The most challenging part has been dealing with questioning myself as to whether I had made the right choices. Everyday, I’m challenged with making choices that could have a major impact on the company. I keep reminding myself, there is no perfect choice when it comes to a start up and to

trust my own instincts. What’s important is that we keep moving, adapt and learn. There are always going to be mistakes and that’s okay.

WHAT KEEPS YOU GOING WHEN YOU FEEL LIKE GIVING UP? Keeping other stakeholders at the front of my mind has been really great for that. It’s not just

investors, but also family that are stakeholders and are significantly impacted by my success or failure. Giving up would let down people I care about, which really isn’t an option! I also have a very strong sense of what my future looks like and what I want to achieve. Aura is a very important stepping stone in realising this future and that keeps me focused on the long game rather than worrying about hiccups along the way.

WHAT ADVICE WOULD YOU GIVE TO ANY PEOPLE READING THIS WHO ARE THINKING OF STARTING A BUSINESS? The biggest reason why people fail is because

they don’t start. Almost everybody I speak to has a great idea for a start up however it’s an unbelievably low percentage that take any action at all. You would be surprised by how many people out there are keen to help you and how fast you can make progress simply by sharing your idea. Talk to people about your idea, listen to their suggestions and take action. Build a team of supporters around you that hold you to account for taking action around your idea. Validate your ideas against real people in the world rather than the little voice in your head (you’ll only get reasons why it won’t work).

To find out more visit www.auraeq.com 21

BUSINESS TIPS

Don’t

The 9 DON’Ts of Business

EVERYONE IS ALWAYS TELLING YOU WHAT YOU SHOULD DO TO BE SUCCESSFUL IN BUSINESS. I THOUGHT FOR A CHANGE, I’D TELL YOU (BASED ON MY OWN BITTER/ SWEET EXPERIENCES) SOME OF THE THINGS YOU REALLY SHOULDN’T DO. HERE ARE MY TOP NINE DON’TS WHEN IT COMES TO BEING SUCCESSFUL IN BUSINESS:

DON’T start or continue a business with no idea of why what you offer is needed and wanted.

Find your niche, be sure people want what you have and have a plan for how you will grow this business into the future.

DON’T believe you are the only one who can do what you do as well as you do. No matter what you do, no matter how specialised it is, there will be others out there who can be trained to do it just as well as you…if not better. Get your ego out of the way. Or you will become your business’s biggest liability when it comes to growth.

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DON’T be afraid to hire people. You cannot do it alone. No one will ever buy a business that is dependent on its owner. You must build a team around you. This is, however, one of the most challenging aspects of business and most small business owner often make a complete mess of it to start with.

DON’T do your own HR. Most business owners are better leaders than they are managers. You can probably inspire people to want to work for you with your vision, your passion and great ideas.

But an employee will never share the same level of passion as you, no matter how good they are at their job. Get an expert (HR consultant) to get the right tools and processes in place to motivate your team and manage their performance effectively.

DON’T try to grow too fast. You need people – but you need to know you can afford them first.

Make sure there is enough forward cash flow in the business first – don’t hire them hoping the business will miraculously appear out of nowhere to pay for them.

DON’T ever believe that doing the work is more important than selling the work. Learn to do the IN/OUT dance – making the out there selling part of your job as important as the in there doing.

You must have a sales pipeline in place at all times, always thinking about where your income is coming from next.

DON’T try to run a business without a budget.

Business is a financial game, and you must lead with the numbers. Project your sales, set your expense – have a plan to achieve these and then make the plan happen. Lead with the numbers.

Create strategies to achieve financial targets and take action.

DON’T let them grind you down!

DON’T let them grind you down! There is an extremely high probability that at some stage during the life cycle of your business you will want to quit. You will hate your clients, hate your staff, hate your suppliers and maybe even hate yourself for putting up with all their crap. You will have days like these. I call them duvet days. Go home, pull the blankets over your head and hide. But come out fighting again the next day, because as I saw on a billboard once: “I’m not saying it will be easy, I’m saying it will be worth it”.

If you enjoyed these 9 DON’Ts feel free to contact me at laura@liber8me.com with any thoughts or questions about your own business. My passion is helping you make your passion fly!

DON’T try to do it on your own. Business can be a very lonely game. Especially in the early days when you are doing everything. Even if you have a business partner or management team, it’s too easy to be introspective and talk yourselves into believing what you are doing is right. Get an external perspective on your business right from the start – a mentor, advisor, Board, Advisory Board… someone who will challenge your strategies and hold you accountable to your goals.

Laura Humphreys started her working career as a secretary. She went on to build and sell a number of businesses, using a formula that she now teaches business owners around the world. Laura’s business and life journey has been full of highs and lows, her lessons well learned and her stories full of experience. Laura says, ‘if a secretary can build a multi million dollar business, anyone can’. Her first book, Liber8 Your Business, shows you how to apply Laura’s formula right now to build a business that will ultimately bring you the financial freedom you deserve. Available here

23

ECOSYSTEM

Ignition

WE CONTINUE OUR TOUR OF THE COUNTRY’S CO-WORKING SPACES, ACCELERATORS AND INCUBATORS. THIS MONTH WE TALK TO THE GUYS AT IGNITION IN TAURANGA AND HEAR FROM A COUPLE OF THEIR RESIDENTS. WHAT EXACTLY IS IGNITION AND THE

Tauranga and, along with other co-working

Ignition co-working space was setup by Priority

city, the Priority One initiative will contribute

Tauranga and the Western Bay of Plenty in

for innovation and entrepreneurial businesses.

for collaborative and innovative ways of working.

WHAT SERVICES DO YOU PROVIDE TO EARLY

PRIORITY ONE PROJECT?

One, the economic development agency for

spaces already operating or planned in the

substantially to Tauranga’s positioning as a hub

October 2012 to meet the growing local demand Since its opening, Ignition has been home to over 35 residents, and currently hosts 18 individuals, who have all chosen co-working as their

preferred way to work. In line with the massive

global growth in demand for co-working, Ignition

has grown to full capacity, and is undertaking an exciting venture to move to a significantly larger, refurbished space in May this year.

Ignition allows like-minded, forward-thinking

professionals across a diverse range of industries

to work together in a supportive, dynamic working environment. They become part of a bigger

community, but still within their own space. The

Ignition work space creates energy and creativity and provides a collaborative platform for those in the space to make solid connections from a personal and business perspective.

Ignition will ultimately house 70-100 like-minded entrepreneurs and professionals in central city 24

STAGE BUSINESSES?

Ignition offers a collaborative working

environment, where people can escape the pets, the kids, or fixed term office leases, and become

part of a bigger community. Flexible membership options allow residents the ability to join the

space for as much or as little time as they like

in a month, with options ranging from a full-time

permanent desk to flexi-desks of 3 days a week, 6 days or 1 day a month or casual hot seats.

This means that people can be part of the

co-working community, enjoy the benefits of a productive work environment along with its facilities, but without over-committing

themselves financially. This is especially

important for early stage or start-up businesses.

The newly refurbished Ignition will also include meeting rooms, breakout areas, a casual tech bar and more.

CHECK OUT A COUPLE OF OUR CURRENT RESIDENTS Resident Profile: Michael Speth - Monky Games TELL US ABOUT YOUR BUSINESS, WHAT IS IT THAT YOU DO? Monky Games provides IT Consulting on two fronts, DevOps and Software Development. The main focus is on DevOps providing support for provisioning and orchestration of the IT infrastructure. Tools such as Puppet, Vagrant, Foreman, and Zenoss are used in harmony to provide an efficient and maintainable environment.

The DevOps generally is integrated in the development team to provide support from the start of a project to deliver rapid provisioning from development to production.

On the Software Development front, Monky Games has been developing high tech software for years, most of which is Open Source. The latest Monky Games project delivers instant access to information from your phone to the Pebble Smartwatch. Another project delivers total control over the keyboard and mouse geared for gamers, but also heavy application users like Photoshop. Monky Games uses a wide array of technologies and software languages ranging from C to Java to Javascript.

WHAT HAVE YOU FOUND TO BE THE MOST CHALLENGING ASPECT OF BUILDING YOUR BUSINESS SO FAR? Managing user’s expectations is the most challenging. On the DevOps front, I work in relative close proximity to my customers which allows for a more personal relationship. In order to stay relevant and maintain my contract, I must keep a high profile; meeting several times a week via Google Hangouts. I also use IM programs like lync (via pidgin) which helps me provide

quick response to my customers. Email is also another vital tool. Often, my customers want to know the length of time for a task. It can be difficult to estimate especially when using new technologies. It’s much better to overestimate (not by any orders of magnitude) and deliver early, than under estimating and having the customer wait.

On the software development side, internet users also expect instant response, which can be a challenge. They want to know what I am

working on and when the next release is. If the release isn’t out, they want to know why. Using Google communities is a very nice platform for communicating with my users. For example, I post daily on the happenings of Pebble Instant.

In return, the users are very good about providing suggestions to help shape the development of the product, which helps me develop a product which reflects the needs of users.

HOW DID YOU GET INVOLVED WITH IGNITION AND HOW HAVE THEY HELPED YOU AND YOUR BUSINESS? I used a co-working space called Flare Space in Rotorua when I returned from a 2-month trip back to the US. At the time, we had moved from Palmerston North to the Bay of Plenty and all of our household belongings were in storage in preparation to move to Tauranga. Flare Space was my first experience with co-working and I was very satisfied with their facilities and willingness to accommodate my schedule.

Darren from Flare Space then told me about Ignition as a co-working space closer to home, which I should check out, so I did.

25

ECOSYSTEM

Working at Ignition has opened a few opportunities in the IT space for me. The Priority One staff, who set up Ignition, have helped me to network within the local IT community. Priority One also invited me and other ‘under 40s’ from Ignition to attend the Young Innovator Awards launch breakfast recently, and from attending that, I’ve decided to enter the Young Innovator Awards contest, with a chance to win some good prizes. I have also had some interest in my IT consulting business as a result.

has so far helped me win a long term contract.

For more information visit www.monky-games.com

WHAT ARE THE BEST THINGS ABOUT WORKING AT IGNITION? Ignition provides a professional environment that allows for high productivity. On video chat, my customers want to know where I am because they are impressed by the surroundings. I have ample amount of desk space which allows for an extra monitor, laptop, keyboard, and mice with plenty of space to use for pen and paper too.

The common room is a nice place to get away, relax on the couch, catch-up with some of the other residents, or sip on coffee while reading a magazine. I also like having access to meetings rooms when interfacing with customers. There are dry erase boards for discussing diagrams and the tables in the large room are configurable so it’s easy to arrange to suit my needs.

WOULD YOU RECOMMEND OTHER PEOPLE TO WORK WITH IGNITION? As a small start up or a remote worker, ignition provides a co-working space that will meet your needs, with the facilities and people. It’s centrally located in the CBD, only a few blocks from the beautiful harbour. There are plenty of restaurants nearby for a quick bite for lunch to more formal sit downs for customer outings.

Ignition offers a wide range of plans to work around co-worker requirements. From unlimited access to single day passes; it’s easy to get started if you’re on a tight budget. Overall, Ignition is a great experience and provides a space that enables me to be very productive and 26

Resident Profile: Heidi Seal Bay Business Services TELL US ABOUT YOUR BUSINESS, WHAT IS IT THAT YOU DO? Bay Business Services exists to help business owners LOVE doing business in the cloud. We specialise in Xero Online Accounting Software and a range of Xero Add-On applications providing scoping, setup, integration, training and on-going support. Bay Business Services is passionate about efficiency and seeing SMEs flourish through integration and smart business systems. That is why we’ve chosen to become cloud experts!

We really get a buzz from solving problems, finding solutions, getting business systems running efficiently, taking away business owners ‘headaches’ and providing excellent financial and business information to our clients in real-time. We also love working with clever accountants to help them deliver great service and solutions to their clients.

WHAT HAVE YOU FOUND TO BE THE MOST CHALLENGING ASPECT OF BUILDING YOUR BUSINESS SO FAR? It has been a challenge over the years to define and re-define what my business offers, who my

target market is and become an expert in certain areas, rather than too much of a generalist in

many. As many service businesses find, pricing

has been a big challenge too - working out what

is reasonable, what I’m worth and then having the

confidence to follow through with that in quoting to new clients.

Another challenge I’m working through is getting better at off-loading the tasks that I don’t need to be doing and focussing on the areas that I

can add the most value. As someone who has

started off as a one-woman band and now has employees, it’s still tempting to do everything myself….it’s a journey, but I’m learning!

HOW DID YOU GET INVOLVED WITH IGNITION AND HOW HAVE THEY HELPED YOU AND YOUR BUSINESS? Ignition has been of huge benefit to my business.

Previously I was largely working from home,

and while that was good for a while, the novelty soon wore off. I found that working by myself a

lot, without the energy of other colleagues, was

de-motivating and a bit boring. It was also tricky to offer client training and client meetings in a

neutral environment - cafes worked for some, but having strangers to my home didn’t always sit

quite right. The opportunity to join Ignition came along at just the right time, when I was seriously wondering what I could do to make a change in this situation. I was going to an entrepreneurial breakfast group, where talk started about the

potential for some of the entrepreneurs and small businesses to find a space to work together. A

friend of mine working at Priority One, who also

attended the breakfasts, did a lot of research into

the co-working concept and spoke with a number of locals, including me, to gauge interest in the

idea. Months later, after figuring out the demand for such a space, Priority One made it all a reality. It was a bit of a leap of faith to join but it’s definitely one I’m glad I took.

WHAT ARE THE BEST THINGS ABOUT WORKING AT IGNITION? Ignition has provided me with the social satisfaction of having workmates as well as networking opportunities with other businesses that provide complimentary services. Working around others provides a great energy to glean from and I am often inspired by the diverse and challenging projects my co-workers are taking on.

From a professional point of view, it has been hugely beneficial to have excellent facilities to meet with clients, provide training from and facilitate staff meetings. There is also great credibility in being able to tell current and prospective clients that I work from an office in the CBD rather than ‘from home’, I feel it means they take my business more seriously. I think being a part of a co-working space has been a hugely affirming process and has also encouraged me to take myself more seriously as a businessperson.

WOULD YOU RECOMMEND OTHER PEOPLE TO WORK WITH IGNITION? Of course, for all the reasons I’ve given above. There’s a great bunch of people, some interesting business stories and a great

environment to have the best of both worlds knuckling down and getting some great work done as well as having the social interaction with other professionals. If you’re working from home and wanting to take your business to the next place, Ignition could be the place for you it will definitely elevate your professional status and give you the confidence boost to take your business forward.

For more information visit www.baybusinessservices.co.nz ●

Connect with Ignition co-working space on Facebook Or at www.ignitioncoworking.co.nz For more information on the Ignition co-working space or to consider securing your space contact Ignition Community Manager Michelle Parker on 07 571 1401 or email ignition@priorityone.co.nz 27

ENTREPRENEURIAL INTELLIGENCE

Entrepreneurial Intelligence with Sandy Geyer

Several people have said my business idea is not going to work, but I really think it will. Should I keep going with it or give up?

T

his is a very common response to new ideas, and we need to accept that most people we talk to about our ideas are not entrepreneurial thinkers. There are many examples of wildly successful people who were told, many times over, that their ideas would never work. Check out a few of the examples here for some inspiration.

then you have a calling and you should follow it.

This urge you are feeling hasn’t just appeared out of thin air. Your subconscious mind works as a much wider information-gathering resource than your conscious mind, and the urge you feel comes from the conclusions that this incredible thoughtprocessor you were born with is making.

One of the best examples is Walt Disney being told that no one would be interested in movies that were not silent. Can you imagine if he had listened? The most common thing that stands between people and success is their self-belief, and as entrepreneurs we need to hold onto our self-belief at all costs. There will be many times along our journey that it will be seriously challenged by the 90+% of people who don’t succeed as entrepreneurs.

My point is that your subconscious is a pretty reliable resource of information, and you can follow it with some conviction that your “gut” feeling comes from an authentic and very well-designed information processor. Also, an initial idea in entrepreneurship often doesn’t work exactly as we might think, but taking the first steps to exploring that idea often leads us as pioneers to the ideas that do work. As you progress, make sure that you stay real about the feedback you get from your results and adjust accordingly.

As human beings we tend to feel the need for the approval of those we love and admire, and it’s highly unlikely that many of those people will see things your way. My advice here is to find people that you have no emotional attachment to and who are qualified to judge your idea based on their experiences and thinking patterns. Get as much solid feedback from people like this as you can.

They might think of something you haven’t thought of or might have valuable suggestions that will increase your chances of success.

If you still get a resounding “NO” from such unbiased people, take the time to explore their reasoning. But if you still feel the urge to proceed, 28

There is no shame in adjusting your sails when the wind direction changes. If you do this you will very likely get to where you are going, even if your actual crossing takes a different path than the road map you are currently exploring.

Sandy Geyer is an entrepreneur and mentor and teaches the principles of entrepreneurial intelligence (EnQ), to entrepreneurs in New Zealand, Australia and South Africa. You can visit Sandy’s website at www.enqpractice.com

PA RT I N G S H O T

“A year from now you will wish you had started today.”

Karen Lamb

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