NEW ZEALAND’S E-MAG FOR ENTREPRENEURS AND BUSINESS OWNERS
November 2013
10 Things To Know About Trade Marks Making The Move Silicon Valley
10 Questions with
Cecilia Robinson
of My Food Bag & Au Pair Link
Boards - Time for small businesses to grow up Entrepreneurial Intelligence With Sandy Geyer Profile on #nzentrepreneur Richard Butler Plus heaps more inside!
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Contents 4
From the Editor
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Making The Move - Silicon Valley
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IP In Action: 10 Things You Need To Know About Trade Marks
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10 Questions With Cecilia Robinson of My Food Bag & Au Pair Link
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Time For Small Businesses To Grow Up
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Profile: Richard Butler - BlueBerry IT
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Ecosystem: Soda Inc
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Tomorrow’s Entrepreneurs
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Entrepreneurial Intelligence With Sandy Geyer
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Parting Shot
Subscribe to NZ Entrepreneur for free!
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. EDITOR / Nick Harley ART DIRECTOR / Jodi Olsson GROUP EDITOR / Nick Harley CHIEF FINANCIAL OFFICER / Alastair Noble CONTENT ENQUIRIES / Phone Nick Harley on (021) 052 9770 or email nick@nzentrepreneur.co.nz ADVERTISING ENQUIRIES / Phone Jennifer Liew on (027) 4398 100 or email jenniferl@espiremedia.com
From the Editor
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ADDRESS / NZ Entrepreneur, C/- Espire Media, PO Box 99758, Newmarket, Auckland 1151, NZ WEBSITE / www.nzentrepreneur.co.nz
ISSN 2253-5683
t appears as time passes we are seeing an increasing glamorisation of entrepreneurship, start ups and the associated buzzwords. Hopefully with this mag we offer a
more practical and pragmatic view for our readers. Suddenly it seems everyone wants to be involved with start ups, build a prototype, pivot, get customers, pitch to investors, raise money, get more customers, and of course get acquired by a much bigger fish. If only it was that simple. And anyway, not all entrepreneurs and businesses are geared towards the tech industry which spurts out most of these terms. I meet many people who talk about their ideas, but relatively few who are proactively acting upon them, choosing to give up well paid jobs, commit time and their own money with no certainty of success. They just never seem to get round to it. It’s hard to take that next step. Truth is, entrepreneurship is far from glamorous. It’s mentally tough, filled with sacrifices and I’m sure many people wouldn’t recommend it. So perhaps we should forget any hype or the mirage of glamour that seems to accompany start ups these days, and just get on with the hard work of building our business ideas. If you want to paint, go find a canvas, and just start painting.
Nick
Email nick@nzentrepreneur.co.nz LinkedIn http://nz.linkedin.com/in/nickharleynz Twitter www.twitter.com/nickharleynz
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Vicki and Ryan Johnson
ENTREPRENEURSHIP
Making The Move
Silicon Valley
New Zealand is ranked as one of the easiest places to start a business in the world, but being so isolated geographically means the hard part comes when you’re looking to reach customers in foreign markets. When Vicki and Ryan Johnson started their first business together in Wellington, New Zealand, they soon realised they needed to be located where most of their customers were (The USA). We talk to Vicki about why they decided to move to San Francisco and how their business has benefited from being closer to their customers. Ryan and I have very different professional backgrounds. When we first began dating in Washington, DC, I was working in public health policy while Ryan was working in corporate product management. Ryan was also co-founder of www. slapapp.com, one of the first iPhone app review websites. In 2010, I won a policy fellowship in New Zealand and Ryan agreed to leave his corporate job and come with me on an adventure on the other side of the world. His start-up was acquired in 2011 and we began to daydream about starting an online company of our own. While we were still in DC, he saw me give a talk on a panel discussion about women and leadership where I told my story to a group of recent graduates detailing how I had used fellowships to not only travel the world, but advance my career in policy. Fellowships are short-term, competitive opportunities that provide funding for professional development, career training and graduate study. Before Ryan and I met, I had earned three competitive fellowships – one in New York City government, one in a research think tank in Washington, DC and one to conduct an independent project in Berlin, Germany. When the audience asked how I found these fellowship opportunities, I explained they were actually very hard to find because they are often hidden on obscure websites or archaic university databases. Watching the fascinated interest of the attendees, Ryan recognised an opportunity to make online fellowship searches easier. He proposed the idea that we develop a website specifically about fellowships, to solve a challenge I experienced myself. However, I knew nothing
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about business, let alone start-ups or technology, so little did I know I was about to embark on an incredible journey building a company with Ryan. We moved to New Zealand in January 2011 and we began to work on ProFellow there. ProFellow started as a blog, which served as a place to find fellowship information, but today ProFellow is much more about the community of people who use our site – aspiring and former fellows, university and career advisers and fellowship organisations.
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Over time you realise there is no right way to grow a start-up, despite what some people will say.
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You have to decide for yourself what the best approach for your idea and company will be We both wanted to continue growing ProFellow and Ryan was particularly interested in gaining start-up experience in Silicon Valley, so San Francisco was the obvious place to go. Being American citizens, this move wasn’t as challenging as it would be for Kiwis. We did have friends there already, and we luckily found an inexpensive six month sublet in Nob Hill through a friend of a friend. After our wedding in Washington, DC in October 2012, we moved immediately to San Francisco, but we didn’t quite know what the future would hold. We were not ready financially to work on ProFellow full-time, so Ryan began looking for product management positions in start-ups in the Bay Area. During our first 6 months in San Francisco, we went to every start-up event and meet-up we could, including Hackers & Founders, Women 2.0 and the Start-up Bike Meet-up, a group of start-up entrepreneurs who get together on bikes for evening group rides ending at a local pub. Ryan also continued learning to code, a goal he began while we were still in living in New Zealand. In the Bay Area, there are numerous meet-ups, code-pairing groups and academies for people interested in learning to code. You could go to an event every day of the week if you wanted to. Through these events, we’ve made friends and contacts that are invaluable. Having grown up on the East Coast where people can be a little more guarded, we were surprised to discover how easy it is to meet new people in San Francisco. Like Wellington, people are
very willing to meet with you for coffee or a beer and just chat about start-ups. The San Francisco Bay Area has no equal in terms of the support for tech start-ups. Ryan began working as a Senior Product Manager at Elance in Mountain View in April 2013. At that time, I also began working out of Hacker Dojo, a popular co-working space in Mountain View. Co-working spaces are another great place to meet new people, and there are many of them throughout the San Francisco Bay Area, including Kiwi Landing Pad in the city. It’s highly advantageous to work in a co-working space rather than at home. It gets you into a daily routine and it also provides opportunities to meet people working on start-ups at many different stages, from ideation to acquisition. For example, just the other day I met a group at the Hacker Dojo who are in the current class of Y Combinator. Cafés are also popular places for small start-ups that are boot-strapping. In downtown San Francisco, you’ll find start-ups taking advantage of the cheap coffee and free wi-fi at the large Capital One Café at 101 Post Street. San Francisco is probably one of the most creative and innovative cities in the world. When you’re in New Zealand, the Silicon Valley world seems so far away, and unapproachable but it’s actually very accessible. In San Francisco you’ll meet people daily who are working on startups, both technical and non-technical. It’s a great place to just listen. Almost everyone is willing to share ideas, stories, and tips for your start-up. Advice is free and plentiful here, which can be a blessing and a curse. Over time you realise there is no “right way” to grow a start-up, despite what some people will say. Even popular approaches like “Lean Startup” are not onesize-fits-all philosophies. You have to decide for yourself what the best approach for your idea and company will be. You won’t know - that’s part of the risk – but you should follow your gut instincts, even when others say you’re wrong. Being in San Francisco, we’ve met a lot of entrepreneurs who have told us stories about hard times, including entrepreneurs who came close to bankruptcy, faced serious health issues while lacking health insurance, or had to fire a good friend. These stories are more common than you might think.
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E R ENN E U R S H I P S NETCR TE PI O
Build on your ideas through conversation, do not hide your ideas. Just get started.
Compared to these stories, we haven’t had a real low point yet. However, we also haven’t exerted pressure on ourselves to take huge financial risks or do more than we can comfortably handle. We’re building ProFellow slowly, one person at a time. Our business is more about building a community than building a technical solution. We have personal relationships now with many of the people who have signed up for our website. We’re also having fun, which is one of our priorities. When you’re working on multiple career goals, it’s not easy to have a good work-life balance. The right priorities only become clear when you really think about what you want both now and in the future. Start-ups are very hard work. Coming up with a great idea is the easy part. The hard part is making it happen, and it can take a lot more time and energy than you ever anticipated. It requires a passion for what you are working on. Ryan and I both have many career goals, including personal and financial independence. However, what is most fulfilling about working on ProFellow is connecting with people and seeing the network grow. For us, we’re already really proud of what we’ve achieved. In the future, we want the international impact of ProFellow to be tenfold, whatever that looks like. It could be thousands more international students finding funding to study or work in the U.S., or more collaborative social impact projects by fellows who have met through ProFellow, or more private sector funding for fellowship opportunities. Ideally, it would be all three! We have boot-strapped from the beginning and have used as many free and low-cost tech tools as possible, including Wordpress for the blog, Mailchimp for our newsletter and Wufoo for easy, online forms like our sign-up page. In 2011, we also raised more than $10,000 USD in online crowdfunding. Online crowd-funding is a great option for raising seed funding because you don’t have to sacrifice equity in your company.
I think the New Zealand start-up community would benefit greatly from better and cheaper access to Internet. When we first moved to New Zealand we realised we took for granted the fact that free, unlimited Wi-Fi is ubiquitous in the U.S. It really does make it easier to be more mobile and actually boot-strap a start-up. For aspiring entrepreneurs, we would just advise that you get out and meet people. Build on your ideas through conversation, don’t hide your ideas. Just get started. You can start like we did with something as simple as a blog. You may not have all the skills yourself to build your idea, but while you are searching for partners and resources (a process that takes time) do everything that you can possibly do yourself. Talk to potential customers, build an informational website, raise money by crowd-funding, define your market, mock up a prototype. There’s so much to do in the process of building a start-up, you should never feel at a standstill. To find out more about Vicki and Ryan and their company ProFellow, visit their website at www.profellow.com
Networking at a ProFellow event sponsored by Stanford University 8
Case Study: Stray
“I’ve forgotten about reliability issues because there are none.”
Brett Hudson Operations Manager, Stray
Stray
Stray Limited is an adventure bus company taking travellers to out-ofthe-way places around New Zealand. We caught up with Operations Manager, Brett Hudson to talk about 2degrees and their business.
Adventure Travel 50 staff 41 mobiles Around NZ Joined 2012
WHY DOES STRAY NEED MOBILES?
Our tagline is “off the beaten track” so we’re not staying at your main destinations. We’re getting out there to the extremities of New Zealand and our sole way of being in contact with our drivers is through phone communications. We have changes happening all the time and we need to be able to contact our team in real-time.
WHAT WAS YOUR OLD PROVIDER LIKE?
There were large phone bills and if we had a problem like a phone outage it seemed they were either busy or they weren’t organised, and couldn’t get back to us. It was very frustrating and it became a constant problem within the business.
AND WHAT IMPACT IS 2DEGREES HAVING?
It saved us $60,000 in the first year. In the second year, it’s going to save us that again. All this will go back into marketing campaigns or growing other parts of the business. The other impact is having an Account Manager I can get hold of to get solutions to my problems when I need them.
WHAT DIFFERENCE DO MOBILE DEVICES MAKE? Our drivers are now able to use their smartphones and other mobile devices to show videos, photos and information about other tour packages and options available, like our operations in Thailand, Laos, Cambodia and Vietnam. We couldn’t do that before and it has made a huge difference. Of course, they’ve now got email and internet access too. “You need damn good partners for successful business, and 2degrees I put in that category.“ Brett Hudson, Operations Manager
HOW IS THE COVERAGE?
The coverage is fantastic. Regularly, I’m on road trips across New Zealand and off the beaten track and haven’t experienced issues with coverage. With our old provider there were a lot of black spots around Auckland and I don’t get those with 2degrees. And the bus drivers could be at Cape Reinga, they could be at Stewart Island, they could be down the West Coast; so in all sorts of different coverage areas and 2degrees works well for us. 3 x $89 plan
37 x $49 plan
1 x $149 plan
HOW RELIABLE IS THE NETWORK? Since I’ve been with 2degrees I’ve forgotten about reliability issues because there are none. Previously I regularly had issues. I would be on the internet and it would drop out and when I sampled a 2degrees SIM card in there, I was amazed at the speed, how much quicker it was. I would regularly be on the phone with the last network and it would just drop a call. I don’t get that any more. As I said, the word reliability has disappeared from my vocabulary because it is so reliable.
For video case studies about Stray and other businesses who have made the move to 2degrees Business, please visit 2degreesmobile.co.nz/business
better 0800 022 BIZ (249)
2degreesmobile.co.nz
businesscare@2degreesmobile.co.nz
BUSINESS
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I P / I N N O VAT I O N
Things you 10 need to know
about trade marks A trade mark is the legal term for what you might think of as a "brand"— the name of your business, or the name of a product or service you are offering. Trade marks distinguish one trader's goods and services from the rest, so they are important assets. If you are launching a new business or product, some early planning on how you will choose and protect your trade marks will safeguard you in the future and avoid potential legal pitfalls. D o n ’ t f a l l i n l o v e t o o f a s t . It’s easy to become attached to a brand name. Before you commit to using a new trade mark, it’s wise to make sure no-one else is using it or has registered it as a trade mark. Otherwise you could be at risk of infringing their rights (and find yourself facing an injunction). A trade mark expert can perform a thorough availability search and identify any obstacles your new mark might face. B e d i f f e r e n t . It will be easier to register your trade mark and easier to stop other traders using a similar mark, if you choose something distinctive. This means it doesn’t describe the goods or services you provide – like, “YELLOW” for bananas – and it isn’t used generically in the industry. Although it’s tempting to pick a mark that tells consumers exactly what the product or service does, these kinds of marks are tough to assert ownership of. R e g i s t e r y o u r t r a d e m a r k . Registering your mark with the Intellectual Property Office of New Zealand will probably cost you a few hundred dollars (perhaps more), but it is worthwhile. If you haven’t yet started using your mark, obtaining a registration is a valuable “placeholder” to put other traders on notice that you own the mark and deter them from using a similar one themselves. Owning a registration also acts as a defence against trade mark infringement proceedings from other traders (although not against other Fair Trading Act and common law proceedings), and gives you standing to bring infringement proceedings against anyone using your mark without permission. Registrations last 10 years at a time and can be renewed indefinitely. The oldest surviving trade mark registrations in New Zealand date back to the mid 1800s. S a m e n a m e , d i f f e r e n t t r a d e . Trade mark registrations only protect your mark for the goods and services you provide — for instance, if someone else uses a certain trade mark for their auto repair services, you might still be free to use and register it for your beauty therapy services or clothing line. Registrations are classified according to what goods and services they cover — for instance if you
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use your trade mark in relation to clothing, you would register it in class 25. Many trade mark registrations cover multiple classes for various goods and services. K e e p a p a p e r t r a i l . If someone challenges your trade mark or tries to make you stop using it, your chances of success may come down to the records you keep. Often in legal proceedings over trade marks, it is crucial to establish who first used a particular mark and whether their mark has a reputation in New Zealand. Records of when you started using your trade mark, how much you have spent each year on advertising it and how many sales of products or services have been associated with the mark, are all valuable pieces of information. You may never need it, but if you do, you will be glad you kept track of these details at the time. U s e i t o r l o s e i t . It’s fine to register a trade mark even if you haven’t started using it yet. But if you don’t use it in New Zealand within three years of its registration date, your mark can become vulnerable to revocation. Basically, someone else can apply to the trade marks office to have your mark taken off the register. They might then register the mark themselves and begin using it. If you think your mark might
be in danger, consult a trade mark expert for advice. If you start using your mark again before anyone tries to revoke it, it is likely you can avoid the risk of revocation (at least for another three years). P l a n n i n g o n g l o b a l d o m i n a t i o n ? A New Zealand trade mark registration only protects your mark in New Zealand. If you plan to export overseas, it is worth checking to see whether you will be free to use the same mark in your other countries of interest – and ideally, register your mark overseas. You can either file separate applications in each country one at a time, or file an international application through what is known as the Madrid system, designating all of the countries you want to obtain registration in. A Madrid application can be a significant cost at the outset but it can reduce downstream expenses and make maintaining your trade mark registrations more efficient. Since every country has different trade mark laws, it is worth consulting an expert before filing overseas trade mark applications. What does your registration protect? There is a difference between registering a brand name, and registering your business’ logo. A trade mark registered in plain block letters, with no stylisation or pictorial elements, gives you protection over those letters or words in whatever font or colour you may use. In contrast, protecting a logo or stylised word mark gives you protection for the visual elements of that mark. There are benefits in both. To achieve maximum protection, it is best to register your word mark in plain text and register your distinctive visual logo separately.
can register any “sign” that is capable of distinguishing one trader’s goods or services from those of other traders. This includes three-dimensional shapes (like a bottle or distinctive packaging), as well as sounds, colours, animations and even smells. These non-traditional trade marks can be difficult to register. D e f e n d y o u r p a t c h . If you become aware of someone else using a trade mark that is the same or very similar to yours, in connection with goods or services like yours, seek help from a trade mark lawyer – or if you feel confident, write to the interloper yourself. If you don’t assert your trade mark rights and instead allow others to use your trade mark, you may find it difficult to stop them later on. This will dilute your brand and could confuse consumers. Someone else may even be able to register their mark alongside yours, by proving “honest concurrent use”. A carefully-worded letter alerting them to your trade mark can often nip the problem in the bud.
What else can you register as a trade mark? A trade mark doesn’t have to be a word or a picture. You
Written by Damian Broadley & Stacey Wood from AJ Park
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ISNETC ER W T VI IOE N
10 Questions with
Cecilia Robinson of MyFood Bag & Au Pai rLink Great businesses are started everyday when people act upon an opportunity. We talk to the recently crowned Young New Zealand Entrepreneur of the Year, Cecilia Robinson about her journey so far. Hi Cecilia, you’re one of New Zealand’s most successful entrepreneurs, how did it all begin and what inspired you to start creating businesses? Do you come from an entrepreneurial background? I started Au Pair Link when I was 21. Au Pair Link was truly a labor of love and came from my experience of being an Au Pair myself in America about ten years ago. I founded Au Pair Link from our small two bedroom apartment in Auckland city and since those early days in 2007 the business has gone from strength to strength and we now employ close to 50 staff nationwide. Nowadays I am largely strategically involved in Au Pair Link and leading our business into a new generation. Our other business, My Food Bag, was launched in March this year. We had seen the concept overseas a few years earlier and when I was overdue with our son (Thomas) I decided it was a good time to write the business plan for My Food Bag. Four hours before going into labour I finalised the plan and four weeks later we were presenting it to Au Pair Link’s board. The business concept quickly gained momentum and backing and soon we had assembled a fantastic team consisting of business dynamo Theresa Gattung and Masterchef winner Nadia Lim. My Food Bag has gone from strength to strength in the past 6 months and is now four times the size of Au Pair Link and growing larger by the minute.
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In terms of an entrepreneurial background - my family has a history of owning businesses, which I think for me means that I have a strong sense of wanting to do things myself. More than anything though, I believe it’s the combination of my husband and I that creates the entrepreneurial environment in our little family. We love to bounce ideas and concepts off each other and we manage the businesses together. What achievements are you most proud of during your career and is there anything that you still want to achieve but haven’t yet? Au Pair Link has achieved some amazing world firsts. An important achievement for us was that we were the first Au Pair Company to become licensed as an early childhood education provider. In addition to that, we are now one of the largest Au Pair companies outside of the USA and one of the top 5% of agencies in the world. We are the largest by quite a stretch in Australasia. For Au Pair Link and myself, we have had some fantastic accolades, including: winning “Best SME”; placing 12th on the Deloitte Fast 50; winning ‘Businesswoman of the Year’ and ‘EY Young Entrepreneur of the Year’. However, what really inspires me is that we have placed very highly on the Kenexa best workplace and this year we are a finalist in the best small/medium workplace. That’s something I am very proud of.
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Find a way to say YES, rather than a reason to say No
At 28 I am really only at the start of my entrepreneurial journey and there are so many things left to achieve. I look to some of this country’s most amazing entrepreneurs (Rod Drury among them) and the list of ‘what’s next’ is very long. In terms of our businesses – for Au Pair Link I want to continue growing and revolutionising the early childhood market. I have a strong belief in home-based early childhood education and I think the industry has so much potential and growth opportunity. For My Food Bag, I believe the opportunity for our business growth is exponential and we have some key projects to achieve and deliver over the next period – and I can’t wait for the challenge. What was the most painful lesson you’ve had to learn in business? Have you experienced any bad times? I think every business person has experienced bad times and many painful lessons. Frankly I think those instances are the ones that make you a better business person and make you stronger. In both our businesses we have had some real challenges to overcome and I think that the true measure of you as a person and the resilience of your team is determined by how you manage those tough times. People don’t judge you by how things are going when it’s going ‘swimmingly well’ – they judge you by what happens when it doesn’t. What motivates and drives you to keep innovating and building new businesses?
I think the entrepreneurial gene means that you are continually looking to improve things and innovate. I have recently become more involved in Au Pair Link after having a From Johnperiod. Banks, Coming Tim Alpe, Dan Alpe huge focus on My Food Bagleft forto anright: extended back in to Au Pair Link, I have realised that the team has really missed me. The key thing I noticed to be missing in Au Pair Link when I wasn’t as present was the ability to say ‘Yes’. What I mean by that is that often when businesses grow you put processes and systems in place to support that growth. Those are essential to create and maintain a high performing business. However what sets the mark of a true entrepreneurial business is the ability to be nimble and respond fast. My motto is ‘Find a way to say YES, rather than a reason to say No’ as well as ‘Think BIG’. Entrepreneurs often have a crazy idea and instead of dismissing it they say - ‘Yes I can do that’ and they often look at a market and see a huge opportunity. An example of this is My Food Bag, I knew nothing about the food or distribution industry but saw the concept and fell in love with it. Instantaneously I knew that if I didn’t do something I would be very disappointed with myself. So I found a way of saying yes – which in this case meant involving key stakeholders to execute this business idea and frankly we haven’t looked back. Many people put off starting a business because they don’t have any money. Does it really take money to make money? I’m not sure many people start businesses because they don’t
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INTERVIEW have any money. Generally I think people start businesses because they have got a good idea and/or a passion for something and they want to share it with other people. I also think that people often have a sense of wanting to control their own path in life and having your own business can help with this. We started Au Pair Link with nothing in the bank and had to fund our start ourselves. This was really hard and it took a long time for us to be able to scale and grow. Having funding and more importantly contacts across many different areas has made a huge difference for My Food Bag. In My Food Bag, we have invested in the business prior to launch and this has enabled us to provide a really solid proposition and product to our customers. Because Au Pair Link has been very successful, we have also been able to leverage off the systems, processes, team and contacts within Au Pair Link and this has been a key success factor for My Food Bag. What are the three most important business skills you would advise up and coming entrepreneurs to develop? Generally entrepreneurs have a really good ability to identify an opportunity and ‘go for it’. I think often the key areas we need to work on are developing sound processes and systems. Especially at the start of an entrepreneurial journey when you often have little or no support. Entrepreneurs need to identify areas where they can easily up skill so that they understand the key drivers behind their business and have the skil-set to analyze this data. For an entrepreneur it’s important that you have sound financial understanding and excellent business practice. I would also encourage anyone going into business to ensure that they fully understand their role and obligation as a Director.
You have started two very different businesses – how do you know when you’re on to a good idea? For Au Pair Link I realised I was on to something good when I started getting phone calls at 7am in the morning from potential customers. I quickly realised there was demand from customers for our Au Pairs and this made me feel confident that the business idea was sound. For My Food Bag, we floated the idea with a focus group prior to launching and every single person in the group said they would subscribe to our concept after having trialed it – and 6 months down the track at least 80% of that focus group are still customers. I think for both our businesses I absolutely love our concept and we use both products ourselves (we have an Au Pair and subscribe to My Food Bag weekly). I think it’s pivotal for you to be passionate about what you do and through that passion you will convince others that it’s a good idea too. Why do you think you’ve been so successful? Is there a secret formula? Anyone that knows our businesses understand that my husband and I have equal involvement. He has been pivotal in the success of both our companies and while I’m the person that says ‘let’s do this’ he will often say ‘yes but let’s analyse it first’. This has been the perfect combination for us. I remember my father-in-law making a speech about us on the night of our engagement and he said that we ‘bring out the best in each other’. This is certainly true in not only our personal life but our business careers as well, we absolutely bring the best out in each other. Without James neither of our businesses would not be as successful as they are. I think the other key reason for my (and our) success has been our ability to take risks and ‘say yes’. Add a good dollop of hard work and self-belief into that and I think that brings out the right environment for an entrepreneur.
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For an entrepreneur it is important that you have sound financial understanding and excellent business What do you think are the things New Zealand needs to improve upon when it comes to creating more successful businesses? I think a key challenge for New Zealand businesses is achieving scale. I often find that New Zealand business people are stuck in the ‘self-employed’ rut where you don’t have the ability to step away from your business. Often this means working much harder – and often for less (at least initially) than what you would have when working for someone else. Therefore I think the key to success is being able to scale your business and make yourself redundant (or replaceable)! I also think that we need to make sure we think big and understand the total opportunity when identifying a business idea both in New Zealand and overseas.
You’ve already achieved so much in terms of business success. What’s next for you? For My Food Bag we have a very exciting period ahead of us where we are introducing more products and diversifying our offering significantly. In addition to this we are on the cusp of launching our new website and expanding our business into new areas. For Au Pair Link, we are just about to launch a massive piece of technology which is a New Zealand first and will revolutionise the way au pairs and families find each other. In addition to this we are at the start of introducing a couple of new services as well as some exciting new early childhood projects. Other than that, my big focus is on our family and my 14 month old son. We have a family vacation planned over the Christmas break and I can tell you we surely are in need of a break! For more information about Cecilia and her businesses visit www.myfoodbag.co.nz and www.aupairlink.co.nz
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G SEC TTIO NN G IT DONE
Time for small businesses to grow up New Zealand small and medium enterprises have often discounted corporate governance as expensive or complex without fully understanding the benefits this leadership discipline brings. But, as Aaron Wallace reports, governance is now becoming a pillar of market-leading organisations.
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n this competitive climate, businesses must find groundbreaking ways to reach new markets. It’s vital to consistently manage, monitor and improve your
business and that’s where corporate governance can play a crucial role. Governance is about structuring, operating and controlling a company with a view to achieving longterm strategic goals for shareholders, creditors, employees, customers and suppliers. It is, and will continue to be, the cornerstone to success and business longevity. Fortunately, many business owners now see the benefits of incorporating this executive discipline into their business. However, who should be on that governing board, how it could be run and what resources or issues it should consider, are common stumbling blocks. Opportunities are being lost by those unsure of how to answer these questions. Every business is unique, so it’s difficult to put together golden rules for running a board, but here are some points to help get you started: What’s is the ideal mix? Boards are often looking for members to fulfil certain skill sets or roles missing from the business, such as financial, legal, marketing or operational. A diverse mix of people who can challenge each other is a powerful combination. Successful boards often employ an independent adviser
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The board creates a sense of trust and respect among its members and with external parties 16
who can bring discipline, experience and objectivity. They regularly get asked to chair the board, as having a dominant shareholder or CEO in this position can lead to issues being sidetracked. The key is to get the right independent person. Having the external accountant or company lawyer on the board is common but these professionals should act in an advisory role with a ‘big picture’ or business focus. A pure technician may not be the best choice. Likewise, an experienced member of a large corporate or NZX-listed company may not be the best fit as the mechanics of a SME are significantly different. It’s important that the board creates a sense of trust and respect among its members and with external parties. It must be shown as a winning team and not a pack of interested individuals feeding their own agenda. What are the rules? There should be a governance or competency framework. This will often be linked to a Constitution or Shareholders Agreement that outlines the decision lines and powers of each management level in the organisation including the board. There should be a drive to search for better ways to operate the business and meetings should be challenging but not destructively confrontational. Operate by the rule: ‘say what you mean, mean what you say but don’t be mean in how you say it’. While healthy debate is good, the board should feel as if they can have a beer together at the end of a meeting. All board members must buy into the strategic direction of the business and champion this theme at every opportunity. Leading by example will help get the troops to buy in to the direction and future sustainability of the organisation. Content and issues to discuss Meetings should be governance by nature, not operational. While reviewing compliance matters should be considered the gatekeeper to business risk, performance orientation should be a recurring agenda item. Any proposals around strategic opportunities or a reorganisation of current operational matters should be sent to all board members in advance along with a detailed paper to support these proposals and provide a healthy and informative discussion. An agenda should be weighted to monitor and manage the business but also to look forward to building a stronger model. It should be about growth as much as it is about
survival. Discussion around progress towards the rolling fiveyear plan must always be on the agenda, as should the review of standard reports such as accounting matters, monitoring of marketing activities and non-financial performance indicators. Running the initial board meetings Those first meetings will be untidy and slightly unstructured as the board finds its feet and builds a structure that’s meaningful to your organisation. At different times, the focus will be on current ‘hot issues’ such as marketing, liquidity, R&D, personnel matters, strategic growth etc. At initial meetings energy must be put into developing and agreeing on the company vision, creating a ‘brand map’ and building a five-year plan everyone will buy in to. Where there are several owners in a business, identifying shareholder/director values, reviewing a commercial remuneration model and setting a valuation methodology for an eventual exit may also be involved. A common hurdle owners must get over when establishing a board is the recruitment of the optimal team. Reluctance to remunerate for board positions can prevent owners from attracting the best members. Not all positions will be remunerated, so ‘paid for’ positions could be limited and cost effective. Given the purpose and role they perform, a director’s fee should be considered an
investment, not a cost. The proviso is that any external party joining the board must be passionate about building a better business and making it stronger. Members must appreciate that their role extends beyond turning up for a monthly meeting. The position requires varying time input and topical issues will determine which board members need to offer more of their skills between board meetings. Most businesses never reach their potential due to a lack of skill, capital and resources. A tailored, low-cost governance programme may not solve the world’s problems, but it’s certainly a step in the right direction.
Aaron Wallace is the co-founder of Bellingham Wallace; an accounting and advisory firm that promises fresh thinking, expansive strategies and the insight you need to make positive change. www.bellinghamwallace.co.nz Follow on LinkedIn
Do you use Social Media in your business? I am looking for business people to assist with a research project to explore how many entrepreneurs, inventors and business leaders use social media to drive innovation within their organization. I am looking for a wide spectrum of responses, even if you do NOT use social media for any business purpose, so I can gauge the overall level of usage. It should only take between 5 and 10 minutes, and there is an iPad Mini as lucky draw prize for a participant.
Click here to take the survey!
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TAKING THE PLUNGE
Richard Butler
BlueBerry IT
Each month, we talk to up and coming New Zealand entrepreneurs who have set about turning their idea into a real business. Here we speak with Richard Butler about his company - BlueBerry IT
Briefly tell us about your business. How did you first come up with the idea? BlueBerryIT is a full service IT Company based in Nelson serving customers from the Top of the South Island of New Zealand to as far away as the Netherlands. The business came about as an idea thrown around after a disheartening staff meeting with a previous employer. We figured there was a better way of doing things, and then we set about doing it. What is the big goal for your business? To be the best IT service provider in Nelson, not necessarily by virtue of size but more in terms of quality and what we can give back to the community. We are very involved in local events and organisations, and this is a big part of who we are - not just as a brand, but as a team of individuals working towards a common goal. What inspired you to take the plunge? At the age of 37 I thought it was about time I had a go at starting my own business, while I still had plenty of energy. I wanted to create something that would help me to help others - both customers and employees. I also wanted to create something unique which could potentially be saleable in the future. Fortunately I had three other like-minded people who wanted to do something similar, so the timing was right. Being in charge of my own destiny was a big draw card.
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What have you found to be the most challenging aspect of building your business so far? Dealing with people, although on the flip-side it’s also the most fun part as well! Humans are amazing animals - you never quite know what’s going to happen next. Everything else in business is straightforward by comparison. What keeps you going when you feel like giving up? When a customer calls or emails me and tells me one of my engineers has done a great job and I can then pass that on to them. That is one of the greatest feelings. What advice would you give to any people reading this who are thinking of starting a business? Stop thinking and start doing. It’s never been easier to start a business, all the tools you need to run your back end systems are available on line for next to nothing and there is plenty of good help and advice out there if you reach out and ask. Come up with a good idea, find a good accountant and lawyer, talk to your local Chamber of Commerce, make a plan then follow it. Would like to tell our readers your own story? Get in touch with Nick at nick@nzentrepreneur.co.nz Snaffle’s Carl & Amber McNulty
Lee Bennett (left) and Steven Almond (right)
Silver foxes get better with age. Software doesn’t. Unfortunately, time takes its toll on technology. Microsoft will soon end security updates for: • Windows XP • Office 2003 • Windows Server 2003 Without these updates, you leave your organisation at risk of harmful viruses and business disruptions. Ensure your business is future ready.
Visit microsoft.co.nz/getmodern for great deals on software upgrades.
ECOSYSTEM
3.Zero Finance Founder and Soda resident Dave Meaney hangs out with the other startups at the ASB Technology Bar launch
Soda Inc What exactly is Soda Inc?
SODA Boost
SODA is Waikato’s Entrepreneurship Hub. Each year we receive more than 100 enquiries from startups and ultimately support 60 of these. On average we enter up to eight highgrowth ventures into SODA’s incubation programme. In addition, more than 1,500 fledgling and established entrepreneurs participate annually in SODA events. We are leading the growth of early stage investment opportunities and we’ve established a unique ‘born global’ partnership programme.
SODA Boost is our full incubation programme that’s a fast track to growth, tailored to the unique needs of each startup. Every week the start-up meets their mentor, every three months they meet with Team SODA to assess progress, and every six months they must double a major growth target to remain in the programme.
What services do you provide to early stage businesses?
During incubation SODA also connects the start-up with the right networks and investors needed to ensure high growth.
SODA offers value to all start-ups we come into contact with, not just those who go through the SODA incubation process. Our incubation services include:
All our entrepreneurs are required to demonstrate and develop a Global Focus From Day One. They need to bring export dollars to New Zealand, connect the region with the world, and add to or help increase New Zealand’s international competitiveness. We also require the companies we work with to have a positive impact on the economy of our region and New Zealand, creating and delivering jobs.
SODA Ignite: When an individual or a team have a business idea, they start with SODA Ignite. In this programme, they go through screening and an introductory workshop to learn the basics of business planning and pitching. After that, they pitch their idea to Team SODA. They may then take their idea away for further development, or if they give a successful pitch to Team SODA, they can move into SODA Lift. SODA Lift: SODA Lift is a 12-week pre-incubation business development programme designed to accelerate the process of turning an idea into a start-up. Over the 12 weeks, with feedback and mentoring from Team SODA, they develop and test their idea and business model before moving into full incubation.
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It’s rigorous but effective, and leaves them under no illusions as to the hard work required to achieve success in business.
Resident profile:
3.Zero Finance
How did you get involved with Soda Inc. and how have they helped you and your business? I met the team at SODA through the Innes48 Business Startup Competition they run. Our team’s idea, Spring, won the competition so we were spending a lot of time at SODA after the competition ended. After talking in depth with Business Growth Manager, Petr Adamek, I decided my new venture 3.Zero Finance (which was separate to the winning idea from Innes48 competition), needed SODA’s support. I have been through the start-up cycle before and the first phase is critical to understand the market opportunity. For me, SODA provides the environment, skill set and structure that will help me through this process. What are the best things about working at Soda Inc? Having access to a broad range of expertise is really important for the development phase of my business – SODA has a great network and pool of knowledge. I also enjoy the rigor of the programme, which keeps me focused and on track. They are not afraid to challenge the logic and I believe this keeps us honest and thinking about our start-up from our customers point of view, not ours - this is essential for all start-ups. The trick is to build something enough people want. It is actually harder than you think.
Innes 48 hour business startup competetion Would you recommend other people to work with Soda Inc? Yes, the support from the team at SODA has been great. They have introduced me to tools I am finding essential to the growth of our business as well as providing continued support – being an entrepreneur in a start-up can be a lonely at times. It is good to be part of an environment with like-minded people who are all passionate to help each other succeed. For more information: www.sodainc.com 079749111 info@sodainc.com www.facebook.com/SODAIncNZ www.twitter.com/Soda_inc
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TOMORROW’S ENTR EPRENEURS
Young Enterprise Terry Shubkin, CEO YOUNG ENTERPRISE TRUST
W
e are getting down to the business end of the year for our Lion Foundation Young Enterprise students. A champion company has been
named in each region around the country and those teams will descend on Wellington next month to compete for the National title. There are some amazing business ideas in the mix. INCYT, from Westlake Boys’ High School are the Auckland North champions and their Chalk-Me T shirts allow users to draw or write on their t-shirt. The company was featured on the Erin Simpson TV show and are in discussions with a large New Zealand retailer whom they are hoping will stock their product from early 2014. Tauranga Girls’ College team, Soar, were named the Bay of Plenty regional winners after creating a product called Collide - a crunchy peanut butter and chocolate hazelnut spread. The group worked in collaboration with Ceres Organics based in Auckland to create the product.
Then there’s Nelson/Marlborough champions, Reverb, who have created The Little Thrift Dress; a t-shirt dress that is made using handpicked material which has been donated by thrift shops or local sewing fans. Each material is used in only 3 dresses (small, medium and large) so customers are guaranteed to have a unique outfit. The companies will each compete in the National Final for the supreme title, The Lion Foundation Young Enterprise Company of the Year. Each team will have just five minutes to pitch their business idea to a panel of New Zealand business leaders. The winners will be announced at the National Awards gala dinner on Wednesday 11 December – tickets are $110 each and can be purchased from the Young Enterprise website. If you’re in Wellington that day and want to check out our next generation of business supremos, you might want to come along.
ChalkMe directors Daniel Surkalim, Adam Qi, Guy Hermanoche, Jake Jiang, 2 2 Yan, Eugene Fong with their teacher Keryn Wright. Jason
Young Managing Director of the Year named
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Dunedin student has been named as the New Zealand Institute of Chartered Accountants (NZICA) Young Managing Director of the Year for 2013.
Sian English is the Managing Director of Otepoti Products, a Lion Foundation Young Enterprise company at Columba College. NZICA sponsors the Young Managing Director Award as part of the Young Enterprise Scheme. Sian’s mantra was “to do well by doing good” and she led Otepoti Products to establish a profitable business marketing and selling ‘Organamix and Organamix Plus’ – their own brand of liquid fish and seaweed fertilisers. “Sian’s a natural leader who’s empowered and supported the team to achieve their business and community goals,” says NZICA Chief Operating Officer Kirsten Patterson. Otepoti Products has delivered impressive returns to investors and donated 31% of their profits to the local Orokonui Ecosanctuary in keeping with their goal of giving back to the community.
through to team management and financial reporting. I am keen to use my skills and pursue a career in project management,” says Sian. Young Enterprise Trust is dedicated to growing a more prosperous New Zealand through enterprise. Our aim is to ensure all New Zealand students participate in experiential enterprise education and financial literacy programmes. Young Enterprise also runs the Fairfax Media NZ Business Hall of Fame, which recognises New Zealanders who have made outstanding contributions to business and the community.
Support Young Enterprise Trust at Givealittle....
“At the start, we weren’t all school friends, so my focus was to build a united team to work on a meaningful enterprise we could all be proud of. The experience has given me a strong grasp of how businesses operate and all that entails from covering health and safety and copyright issues
Sian English receives her award from Young Enterprise Trust CEO Terry Shubkin.
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PS E ER C STOI O NN AL TRAINER
Entrepreneurial Intelligence with Sandy Geyer HOW DO I MAKE THEM UNDERSTAND? By Sandy Geyer
My parents are not entrepreneurial at all, whereas I thrive on new opportunities and building ideas. They don’t really understand it and are always telling me to get a ‘career’. How can I make it easier for them to understand my risky business ventures and be supportive? The first word most of us will remember hearing when we were old enough to move about unaided was the word “NO”. And in most cases this word was yelled “at” us at top volume as we explored our environment and every manner of injuring ourselves as inquisitive toddlers with no sense of danger whatsoever. This negative and very limiting instruction was meant with the best of intentions by parents who simply cared deeply for our safety and security in a dangerous world. Your parents are still saying it and still mean it with the very best of intentions. They don’t want to see you fall and hurt yourself, and they never will. They probably also don’t want you to live at home for the rest of your life, depending on them financially! Your conforming to a “safe” career will give them more peace of mind and your journey will no longer be in their care. But it’s your future that’s in question, and it sounds as if you will eventually wither and die from lack of inspiration if you take a “safe” career; your creativity and inner happiness will shrivel up in such a “career”. Having the natural capacity to build on ideas is a wonderful gift and suggests a mindset that a successful entrepreneur needs to get off the starting blocks. Just be respectful to the
need for real skills and know how to develop that mindset (whether from your own research and education or from smart collaborations) or you might well fall and hurt yourself. Although my advice is for you to follow your call, I would also advise taking the time to talk to your parents about your chosen path. Acknowledge their concerns by talking them through in some detail and answering their questions as best you can. If they understand more about what you want to do, why you feel this way and how you intend to proceed, they might be more likely to be supportive if not completely in agreement with your chosen path. In each issue Sandy will be answering commonly asked questions from new entrepreneurs. If you have a question for Sandy to do with entrepreneurship, building successful businesses or the challenges and difficulties faced by entrepreneurs, email the editor at nick@nzentrepreneur.co.nz.
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
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You have to be totally dedicated to the business to succeed. You have to live, work and dream it.”
Bill Buckley, Buckley Systems
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