FYI March 2018

Invest for Success Smart financial and legal strategies for growing businesses

Have your say

Money Psychology

Economic Views

On the Auckland Long-Term Plan Pg 7

Thinking beyond budget and cashflow Pg 18

Exiting for the right reasons Pg 30

MARCH 2018 — MEMBER NEWS AND INFORMATION

businessnh.org.nz

NZ’S STORAGE EXPERTS ARE NOW ON THE SHORE! NOW, THERE’S NO NEED TO CROSS THE BRIDGE TO VISIT US – WE’VE BROUGHT OUR SERVICES CLOSER TO YOU! Dexion Supply Centre North Harbour has been opened in response to our growing support and recognised growth in the North Harbour region. With a dedicated team, based in the North Harbour we can now be available to respond to your requirements in a manner and level of customer service we are known for in the other regions. Dexion Supply Centre North Harbour is a subsidiary of the Cemac Auckland Limited group.

A company with a long history in the New Zealand market dating back to the 1960’s.

EVERYTHING YOU NEED FOR STORAGE UNDER ONE ROOF FROM A TEAM YOU CAN TRUST.

MAGNUM17342

New Zealand’s Dexion Supply Centres were established in 2010, the goal was to create a ‘one-stop shop’ for everything storage.

With the merging of the Precision commercial storage & shelving product portfolio with the Dexion Industrial product range, the Dexion Supply Centres can offer a selection of products and service that are second to none in the New Zealand market.

DEXION SUPPLY CENTRE NORTH HARBOUR Unit 3/33 Apollo Drive, Albany 09 930 8568 | dscnorthharbour.co.nz

FROM THE CHAIR

From the Chair Welcome to 2018 and the first edition of FYI. We have a full programme for the first 6 months and as a Board we are looking at the strategic direction of Business North Harbour over the coming years. The strategy is being formulated as you read this. The questions we are looking to answer include: • How do we add most value to our members?

• What is it that our members most want from Business North Harbour?

• Are our existing programmes relevant and appropriately resourced?

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• How best to communicate with our members?

reserves. Rather surprisingly, rapid growth often results in excellent profits and the absence of cash. Your cash ultimately ends up in stock and debtors, often leaving an inability to pay suppliers. Knowing this is normal before pursuing a growth strategy may let you sleep a little easier when the time comes.

The answers to those questions will dictate our way forward, and if you have any thoughts feel free to contact me directly at chair@businessnh.org.nz. We hope to have the strategic plan completed by June this year.

Managing growth is a large part of any business and this FYI focuses on some tools to help you. Experience has taught me that if you are planning on growing more than about 25% per annum you need to review your cash

Peter Lamberton Chair, Business North Harbour

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In this issue 4 6

In Brief Diary Dates By the Numbers 7 Advocacy 8 Events 11 Business Success - Tailor Made Suits 12 Business Success Coherent Solutions

14 Cover Story - Invest for Success 18 Money Matters 19 Asian Business Matters 20 Transport 21 NZTA Update 22 Social Responsibility Food Waste and Inorganic Collection Initiatives

23 Crime Prevention 24 Gold Sponsor - Kristin School 25 Community - Project K 26 Professional Development - McVeagh Fleming 28 Professional Development - AccountabilityNet

29 Gold Sponsor - Quay Travel 30 Economic Views 32 Government 33 Gold Sponsor - NAI Harcourts 35 Property Matters 38 Gold Sponsors

BUSINESS NORTH HARBOUR GOLD SPONSORS 2017-2018

Women in Business Event Series Sponsor

Contact FYI Magazine Business North Harbour General Manager Janine Brinsdon janine@businessnh.org.nz

Editor Lizzie Brandon lizzie@writesphere.co.nz

Advertising Shirner Dyson shirner@businessnh.org.nz

Design Lewis Hurst lewis@hurstmedia.nz

Business North Harbour, 12 Parkway Drive, North Harbour, 0632. PO Box 303 126, North Harbour 0751

office

Printer McCollams Print mccollams.co.nz

09 968 2222 web businessnh.org.nz

The opinions expressed in this publication are not necessarily the views of the publishers.The publisher does not endorse any person, company or organisation that advertises in this publication.

MARCH 2 0 1 8 F YI BUSINE SS N H . O RG. N Z

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IN B RIEF

How the other half live Here’s a problem that most of us probably wish we had: What do you do when you run out of Bollinger but you can’t get to the bottle shop?

Now, thanks to Rosedale-based Heletranz, you can call up your very own Champagne delivery by helicopter.

Speaking about why this service has been introduced, Heletranz owner Sofia Ambler said, “New Zealand has an impressive number of high-net-worth individuals tucked away in its glorious paradisal spots, anywhere from the top of the North Island to Waiheke Island and the Coromandel. Many of these luxury accommodation sites are accessed via helicopters and are remote and isolate for added privacy, also increasingly viewed as a luxury on its own. It makes sense for us to offer the missing service of helicopter-delivered top shelf champagne.”

Traffic Cameras Traffic cameras can be a real boon if you want to see exactly what’s happening on the roads, and try to avoid areas of potential congestion.

Business North Harbour now has 8 live cameras around our region. Footage is updated every 30 seconds, providing up-to-the-minute images, and the view can be rotated in order to see in both directions at an intersection.

Our cameras are in the following locations: • Apollo Road /Rosedale Road • Rosedale Road /Bush Road • Rosedale Road /Tawa Drive • Corinthian Drive /Data Way (NEW) • Paul Matthews Drive /Upper Harbour Highway • Constellation Drive /Apollo Drive • Arrenway Drive /Apollo Drive • Albany Highway /Bush Road (NEW) Their live feeds can be found at businessnh.org.nz/traffic-cameras Alternatively, contact sarah@businessnh.org.nz for the live feed NUUO app.

Albany to Pinehill reservoirs watermain construction Start-finish: December 2017-November 2018 Location: Albany Reserve to Pinehill (Spencer Road, East Coast Road) The first works have been completed at: Greville Road /East Coast Road intersection Browns Bay Road /East Coast Road intersection

Grab a team and join the 2018 March Auckland Walk Challenge Registrations are now open for a fun, free walking competition to discover Auckland during Walk Month March!

Get your organisation involved and make a team of colleagues, friends or family and walk your way around a digital map of Auckland enjoying favourite walks and discovering new gems along the way. As well as being part of a friendly competition where there are lots of prizes on offer, you’ll also be giving your health a boost.

30 minutes of brisk walking a day has multiple health benefits, as well as improving your mood, enabling creative thought, and lowering your stress levels. There are heaps of prizes on offer for achievement, interaction and commitment – something for everyone! Last year’s participants loved the fun, the challenge and the feelings of improved health and fitness from getting outside and putting one foot in front of the other – so find more information and sign up at auckland.walkertracker.com 4

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Work is now continuing down East Coast Road from Greville Road towards Arran Road, and will likely take until April. Traffic management is in place over this time at these intersections.

Construction areas will be fenced for the safety of the public, and working hours are 7am to 7pm, Monday to Friday, and Saturday 7am to 2pm.

To find out more please visit the Watercare website or contact John Parsons, project manager, on (09) 539 7413.

Entries open for the Westpac Auckland Business Awards 2018 on March 1st The Westpac Auckland Business Awards celebrate business excellence by recognising and rewarding outstanding organisations led by people whose passion, determination, innovation and success inspire others.

A series of workshops will assist you in every element of entering and maximising the most from the awards for your business.

This year’s awards are proudly brought to you by Auckland Business Chamber and Auckland Tourism, Events and Economic Development (ATEED) and open to any business of any size in Auckland.

Benchmark your business against the best. Enter now. aucklandbusinessawards.co.nz

IN BRIEF

The Evening Rituals of Successful People There seem to be numerous articles written about the morning habits of highly productive people, but now there’s been some research into their evening activities too – especially as these relate to enjoying a restful, restorative sleep. These include: • How to transition out of work with a “closing ritual”. A mental wind down helps our brains disengage from work mode, and (hopefully) minimises those moments when we find ourselves mentally composing an e-mail we forgot to send or fretting over an item on the to do list.

• Prepping for the next day’s goals. Consider creating tomorrow’s MIT (Most Important Things) list for the stuff that absolutely has to get done first thing. Mark Twain referred to this as “swallowing the frog” because, no matter what else occurs, you know you’ve tackled your hardest task.

• Reflecting on the day with a “gratitude journal”. Taking some time to think about events that went well and why those events made us happy can lower stress levels and imbue a feeling of calm.

• Reading a book instead of staring at a screen.

A 2009 study by the University of Essex found that just 6 minutes of reading can reduce stress levels by up to 68%. That’s not to say we shouldn’t be watching any TV, but ideally there should be a screen-free hour or two before we hit the sack.

You can read the whole article at thriveglobal. com/stories/18907-the evening-routineessentials-of-the-most- productive-people

Food sellers – deadline for registration fast approaching Do you own or run any of the following types of business?

• Café or club without an alcohol licence • Bakery • Caterer • Rest home • Dairy • Convenience store If so, you need to register for the new Food Act by 31st March. This also applies to some food manufacturers (including makers of fresh pasta, and chilled or frozen meals and /or desserts). More business types will be required to register by November, including brewers and other food manufacturers.

Not sure if the new rules apply to your business?

Why not use the free assessment checker at mpi.govt.nz/ food-safety/food-act-2014/where-do-i-fit/

Celebrating the unsung heroes who help us get home safe Entries are now open for the 2018 Workplace Health and Safety Awards. These are NZ’s only all-sector health & safety awards, and are a great way of highlighting good work and showing that commitment to health and safety is a core value of your business.

There’s a range of categories for organisations and individuals covering health, safety and well-being.

Entries close at 5.00 pm on 4th April. The finalists and winners will be celebrated at a gala awards dinner at SKYCITY Convention Centre on 30th May. For more information and to download an entry pack, go to thomsonreuters.co.nz/events/awards

MARCH 2 0 1 8 F YI BUSINE SS N H . O RG. N Z

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IN B RIEF

Diary Dates March 13 Women in Business

Hannah McQueen – Founder and Director enableMe Do you want to real-life tips on how to get ahead financially in both your business and personal life? Hannah’s talk entitled ‘Take Control and be Ambitious in 2018 - Financial Smarts for Smart Women’ was specifically prepared for Business North Harbour’s Women in Business series.

Time: 10.30am-12pm Venue: North Shore Golf Club, 51 Appleby Road, Albany Price: Free for 1 representative of Business North Harbour members and Associate members. Guests of members will be charged $40 plus GST to attend.

Sponsored by: Eclipse Recruitment Register: businessnh.org.nz/calendar

Peter Bailey

20 CEO Forum

Hannah McQueen

15-16 Inorganic Collection

We are aware many businesses in North Harbour occasionally have bulky waste items to dispose of that don’t fit into their standard waste bins. We have also heard from businesses that have waste goods that they no longer want but are still in good working order. This collection is a service that we are offering to our business and property owner members to help solve this problem.

Registrations close: 9 March.

Cost: $35 plus GST per cubic metre collected.

Register: businessnh.org.nz/inorganiccollection

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By the numbers

6 3 1 day

The time needed to complete the procedures to legally operate a business in New Zealand (databank.WorldBank.org)

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Cyber Security - it’s not just about compliance Come and join Peter Bailey, General Manager of Aura Information Security for light refreshments and find out about global and local cyber security trends, how these are affecting New Zealand businesses, and most importantly, what your business should be doing to prepare for and prevent attacks.

To get the most out of these forums, we ask that all attendees meet these minimum requirements to attend: 1. Own or manage a $10 million plus business and 2.

Manage or employ a minimum of 30 plus employees Find out more at: businessnh.org.nz/ceoforum

33%

The number of firms with 1-19 employees that have existed for 5 years or fewer (MBIE Analysis – Small Business in NZ)

49%

Firms founded in 2010 with <50 employees which had ceased by 2016 (MBIE Analysis)

Almost 50%

NZ SMEs report being placed under pressure by late payments (MYOB)

5%

SMEs report that pressure as being “extreme” (MYOB)

80.3%

Invoices paid promptly across all NZ businesses (Dun & Bradstreet)

7.4 days

The average late payment time for firms in Auckland (down 1.9% YoY – the only NZ region to record annual fall) (Dun & Bradstreet)

9.9 days

The average late payment time for NZ firms with 500+ employees (Dun & Bradstreet)

ADVOCACY

Auckland’s 2018-2028 Long Term Plan On 28th February, the Auckland Mayor releases the council’s 2018-28 plan and budget. This plan will outline how the budget will be allocated across infrastructure, housing, transport, environment and council services. The Mayor will summarise the relationship between local and central government, his expectations for financial central government contribution and changes to legislation to enable localised targeted rates.

Much speculation has been given to the Mayor’s plan to introduce a regional fuel tax. However with central government’s review of the Auckland Transport Alignment Project by the Minister of Transport, Phil Twyford, not due back until March, the decision regarding the implementation of the fuel tax will fall outside of the 2018-28 Long Term Plan consultation period. It is important to still have your say on whether you support a regional fuel tax, however the decision may not be entirely in your hands, should central government not pass the appropriate legislation.

While the Mayor kept his election promise of a 2.5% overall rate increase, there are numerous targeted rates being introduced.

These are in effect “silent” costs to your business, and you need to be aware as they all contribute to your OPEX.

Other elements of the plan which you may wish to consider are:

• Natural environment levy: The 10-year budget has $97m set aside for natural protection. However council are proposing this contribution is boosted through an additional levy. They outline two packages.

The first “Targeted Protection” levy will raise a further $125m over the 10-year period. If your commercial property is worth $5m, your annual targeted rate would be $169.23, and on a commercial property worth $10m, your targeted rate would be $338.46 per annum. The second option being put forward is the “Enhanced Protection and Restoration” levy which would raise an additional $356m over the 10-year budget. The targeted rate to support this programme is $338.46 (against a commercial property valued at $5m) and $967.24 ($10m property value).

The question we want you to consider is, should the cost of environmental protection – especially the Kauri trees – be borne solely by residents or residents and business combined? If the latter, to what extent?

• Water quality targeted rate – this will fund the Auckland Regional Water Quality Improvement Programme. The proposed targeted rate split will result

The Mayor is looking for $120m savings over the next 10 years across council’s operations. in business rates contributing 25.8% of the total budget – a higher percentage against the capital value of commercial property than residential ratepayers. The proposed targeted rate for water quality will be $534.52 ($5m property value) and $1,069.04 ($10m property value).

• Should NZ’s central government follow countries such as Australia and allow the GST component of rates collected to be made available to local authorities for infrastructure? In Auckland’s case, this would add $40m to council’s income.

• Council controlled organisations such as ATEED and Auckland Transport are undergoing a value for money review programme. The Mayor is looking for $120m savings over the next 10 years across council’s operations. Do you believe there are additional efficiencies within the wider council that could

contribute to greater rate of savings than $120m?

• Council owns and maintains Eden Park, Auckland Zoo, Auckland Art Gallery, A u c k l a n d Wa r M e m o r i a l M u s e u m , MOTAT and Maritime Museum, amongst other cultural organisations. The Mayor is looking for ways to leverage greater value from this investment. Do you believe Eden Park should become a national stadium? Should council still fund the cultural sector?

These are some of the points which we will seek your opinion on, once the full plan and budget is released on 28th February.

Consultation will run until 28th March, and Business North Harbour will collate the views expressed by our commercial property and business owners. Please keep an eye out on our social media pages and website for ways in which you can get involved.

If you want to speak to us directly, contact Janine Brinsdon – General Manager on 021 212 4942 or e-mail gm@businessnh.org.nz MARCH 2 0 1 8 F YI BUSINE SS N H . O RG. N Z

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EVENTS

Doing it for SHORE: Showcasing local success Business After Five, 30th November 2017 Business North Harbourâ&#x20AC;&#x2122;s 2017 event calendar ended on a high, as Massey Business School extended the warmest of welcomes to members and their guests.

The eveningâ&#x20AC;&#x2122;s three keynote speakers were Chris Spence of Flintfox, Rojie Aguilar of Snowplanet and James Speedy of Electric. Each offered a different perspective on business success and their insights were varied and fascinating. It is clear that the customer experience remains central, and customer means both staff and clients.

Attendees also had the choice of three breakout sessions: Fostering an Innovation District with Kel Marsh, director of Grow North, Empowering your Organisation with Prof. Jane Parker, co-director of MPOWER and Retail Trends: Future of Bricks and Mortar with Prof. Jonathan Elms, director of Sir Stephen Tindall Chair in Retail Management.

The ideas presented were thoughtprovoking and sparked much lively discussion. All in all, it was a most interesting and energising event.

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EVENTS

Business Capability Workshop, 15th February

Health & Safety – how does this affect you?

More than 80 people attended this informative and practical workshop, which demonstrates the importance that local businesses place on providing a safe working environment.

Justin Michels from WorkSafe NZ and Claire McCool from McVeagh Fleming cut through the jargon to explain how The Health & Safety at Work Act 2015 (HSWA) impacts businesses, and the importance – legal and ethical – of adhering to the Act. A few key points to highlight: • Under HSWA the highest penalty is 5 years’ imprisonment plus a $600,000 fine (for individuals) and a $3 million fine (for businesses).

• The Act requires business owners to engage with their team. In other words, it is about shared knowledge and accountability.

• Businesses should be proactive with formal procedures such as staff inductions and site assessments.

• If an accident or incident occurs, the

company’s appointed PCBU (person conducting business or undertaking) must inform WorkSafe at the earliest possible opportunity. Failure to do so may result in separate penalties (of up to $10,000 for an individual).

The general advice is to be realistic and to be prepared.

Implement the appropriate systems, review incidents (and near-miss incidents), provide regular training and ensure the whole team are involved. We all have a collective responsibility to help each other get home safe.

If you’d like to discuss what HSWA means to you and your business, please contact Justin Michels at justin.michels@worksafe.govt.nz or Claire McCool at cmccool@mcveaghfleming.co.nz MARCH 2 0 1 8 F YI BUSINE SS N H . O RG. N Z

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BUSINESS SUCCESS

Tailor made for success Doyle Trinh moved from Vietnam to New Zealand in 2005. His grandmother’s hometown has a reputation for tailoring suits for international visitors, and Doyle’s family have been involved in the textile industry for more than 60 years.

Doyle himself trained as an accountant, and 4 years ago he found himself at a crossroads – should he register for his Masters degree, find a job with an accountancy firm or start his own family business? He chose option 3, and Tailor Made Suits began in the garage of his 1-bedroom house.

The business grew quickly, requiring a move to a 3-bedroom house, then a 5-bedroom house, and finally, 2 years ago, to premises on the corner of William Pickering Drive and Rosedale Road. Trade is thriving and, last August, Tailor Made Suits opened a new store in the Canterbury Arcade on Queen Street.

There’s now a team of 8 in New Zealand, supported by about 30 tailors in Vietnam, managed by Doyle’s mother.

Online and bricks & mortar working together

In the early days, Doyle estimates that 99% of his customers came via the company’s digital marketing. Nowadays, that figure is closer to 80%. He references the success of the Queen Street store which has gone from zero custom to being comparable with Albany in just a few months. “It’s grown like crazy!” he says. There’s no external signage, so he is certain that customers are visiting the store having searched online.

“A strong internet presence is very important to help customers find us,” he says. “But it’s not all about e-commerce; we probably only sell 10 units per year that way. I was a bit surprised by this at first, but I quickly learnt that our customers want to come in, see and touch the fabric, and try on the garments.” In fact, Tailor Made Suits has gained business from people who have tried previously to

buy suits online. “They may look fancy in the photos,” comments Doyle, “but the actual quality is disappointing. Customers have had problems with sizing too, especially if they’ve ordered from overseas.”

Platforms for growth

Tailor Made Suits has successfully used daily deals websites (such as GrabOne) to promote the brand and gain customers, so Doyle acknowledges that these platforms have merit. However, he feels that they must be used correctly, and that small businesses should not allow themselves to “get squeezed” by overly-discounted deals or very zealous agents. “The daily deal sites can be useful for upselling too,” he says.

A strong internet presence is very important to help customers find us. But it’s not all about e-commerce.

Preparation and planning

Doyle is adamant, “Homework is the key.

Market research is okay, but you need to put the product out there to see how the market will respond to it before you invest a tonne of money. I’ve seen many people spend tens of thousands of dollars and fail, because they didn’t do proper testing.”

As an accountant, Doyle is perhaps extra mindful of the importance of financial fundamentals.

• Plan your annual budget with monthly

reviews. “It’s always easier to calculate the outgoings than the incomings,” he observes.

• Keep on top of cashflow. Particularly for new businesses, he would advise putting aside 20% of everything, not just profit, in order to cover business expenses and to be prepared for the likes of Provisional Tax and GST. • Use Specials purposefully. Doyle believes that offers or discounts should not be a knee-jerk reaction, but rather a planned part of business strategy. If a business has a known quiet period, then it would make sense to offer extra incentives during this time.

• Know your products and understand your customers. Tailor Made Suits has 2 main business channels: wedding and corporate, and within those 2 channels are The Bargain Hunters and The No Wait-ers.

The former won’t ever pay the full price but they will wait for a deal. It’s important to acknowledge and accommodate that mindset.

Support and collaboration

Doyle’s strongly in favour of making full use of technology to support business growth. Tailor Made Suits has approx. 10 software systems operating together, and this year’s goal is to implement Radio Frequency Identification (RFID). It’s not cheap, but would streamline stock-taking and could provide continuous live inventory information.

To further assist with the business’ continued growth, Doyle has introduced complementary services: alterations, suit hire, and dry cleaning (operated in conjunction with a neighbouring business in Albany).

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BUSINESS SUCCESS

A coherent strategy for raising capital Coherent Solutions was founded in 2012

by Andy Stevens and Iannick Monfils. The company is based in Canaveral Drive and specialises in the development and manufacture of high-end testing equipment for fibre-optic communications. It has enjoyed several years of sustained organic growth and built a strong reputation for quality and innovation. As Andy says, “Our instruments are used in many of the leading research labs across the globe by scientists and engineers developing the next generation of telecommunications technologies.”

When several new significant customerdriven opportunities presented themselves, it became clear that external funding would be required in order to push forward and meet these exciting challenges.

Sure enough, in early 2018, Coherent Solutions announced the completion of a $3 million investment round.

Andy Stevens

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Iannick Monfils

MAR CH 2 0 1 8 F YI B US I N ES S NH. ORG. NZ

How was this achieved, and what lessons were learned?

The company has a solid relationship with its bank and bank manager, but applying for a loan was not the most desirable method of raising capital, as Andy explains. “The bank had always been good to us, but the stuff that we need to buy is expensive, and the levels of personal guarantees that would have been involved just got past the point where I felt comfortable, both in terms of the dollar amount and my own mindset.”

The company had credibility, the forecast and opportunity could be well-articulated, and it was decided to seek funding from other sources.

So, Andy and Iannick considered their options, and even thought about speaking to potential investors in the US and Taiwan.

However, this called into question the overall direction of this business. True, almost all of their customers at the time were based overseas, but that didn’t necessarily mean that they wanted to be driven by an overseas owner.

Moreover, Andy had previously been involved with a number of tech start-ups in the US and Scotland which had quickly built up their market value in order to be sold. “I didn’t want to do that again,” he comments.

“Our goal was to plan for long-term success,

and gain investment for sustainable growth.”

The key therefore was to find an investment partner whose values matched their own.

Venture capitalists and angel investors seemed good places to start, but actually neither proved to be suitable for this project.

“On the one hand, the vast majority of VCs weren’t interested in a raise of ‘only’ a couple of million. And on the other, it would have taken 5 or 6 angel investors to reach that amount.” Andy highlights this as a big gap in the capital market which, he feels, is somewhat filled by family wealth funds.

BUSINESS SUCCESS

Crowdfunding wasn’t an option either, although Andy observes, “If we’d been a business like a brewery then I think it could’ve been.”

Fortunately, Coherent Solutions found exactly the right fit with the Punakaiki Fund, supported by K1W1, NZVIF (New Zealand Venture Investment Fund) and Auckland University’s Inventors Fund. “It was serendipitous! Good timing for them, and they understood our philosophy. They appreciated that we were growing to do business, not to sell up.”

Punakaiki Fund’s Lance Wiggs admits that Coherent Solutions represents a significant investment, but recognises the opportunities it offers to both parties. “[They] impressed us by their ability to gain a foothold into this global market which is dominated by large, multi-national instrumentation companies, and have a well-defined growth strategy. We are excited to be a part of this successful New Zealand story.”

As Andy reflects on this excellent outcome, he thinks about what the process taught the company.

Making the decision to go for the funding had taken a year of his time. “For the first 3 months we had to work hard on clearly defining the business opportunities and perfecting our pitch. But as the customer

Andy raves about how great the North Harbour region is for tech companies, likening it to NZ’s Silicon Valley.

what we know now, we wouldn’t approach angel investors; that’s just not our market.”

He acknowledges the valuable contribution made by NZTE. “They were incredibly supportive, assisting with pitches, introductions and strategy. But it took 4½ years for us to be eligible for that support.

They have thresholds, and they can’t work with you if you’re below these. But once you do get there, they couldn’t be more helpful.”

The good news is that Coherent Solutions is here to stay. In fact, Andy raves about how great the North Harbour region is for tech companies, likening it to NZ’s Silicon Valley.

The company continues to expand, having already recruited 6 new staff members so far this year, and expecting to hire more.

“Realising that relationship with a NZ based investment partner has definitely encouraged us to become more engaged with the domestic market too,” he says. “There are exhilarating times ahead!”

and market opportunity grew so did the need, which also made our case stronger.

It enabled us to raise more money at an acceptable valuation.”

“I think it would definitely be easier the second time around!” he says. “Knowing

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principles

COVER STORY

Invest for Success Smart financial and legal strategies for growing businesses

RETAIL

As a company grows so inevitably do its financial and legal obligations.

For small business owners, managing cash flow and keeping track of all the relevant legislation can be tough at any time, but periods of expansion bring additional challenges.

There are serious new decisions to be made.

Where could funds be allocated to best support growth?

What are the extra regulations that now need to be considered?

Is there additional exposure to risk that there wasn’t before?

What is everyone else doing? Is that traditional approach necessarily the most appropriate?

FYI sought insights from experts in three key sectors – retail, export and logistics & transport – which are represented within and relied upon by the North Harbour business community.

What are the trends and innovations that could assist the region’s SMEs who want to invest astutely in growth, and what are the potential legal pitfalls of which they should be mindful?

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Professor Jonathan Elms

The Sir Stephen Tindall Chair of Retail Management, Massey Business School.

Director, Centre of Advanced Retail Studies (CARS)

It’s not the end of bricks and mortar!

There are two dynamics happening presently.

Firstly, SMEs with a physical store wanting to grow who, having weighed up the relatively low cost of operating online vs. the operational costs and associated complexities of a bigger physical footprint, choose to expand their business digitally.

Then there are SMEs who are seeking to open a physical store in order to grow their brand image. This tactic is being championed by some industry giants. For example, Amazon, who are investing in Wholefoods, and have opened Amazon Go and Amazon Books to give themselves a presence in the community marketplace.

This aspect could be critical to smaller businesses’ success too. “To develop productive, longstanding relationships, you’ve got to be a part of the community.

You might not be able to compete with the online giants on price or product range, but you can compete with them on service and local engagement.”

Smaller successful firms should recognise CSR (Corporate Social Responsibility) as a fundamental part of sensible capitalism. “Get involved. Do good things in the community. Sponsor events. Run ‘show and tell’ mornings at cost only. Prove you’re not faceless and distant. There are valid commercial and ethical reasons for doing so.”

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Encouraging customer engagement Definition of GAMIFICATION the process of adding games or gamelike elements to something (such as a task) so as to encourage participation (Merriam Webster) How many kilometres did you cycle today?

Is that more than your friend?

How much money have you saved since you quit smoking?

Have you collected all the tokens yet?

Gamification is a means of keeping up energy and excitement, usually through apps or other online engagement, and it does have some academic substance behind it. There are non-tech equivalents too, with some cafés providing board games to encourage customers to come back and finish playing.

Also, think of potential self-service divisions of the business. It’s the same concept as the self-checkout or, for example, the Air New Zealand app. Customers are happy to do stuff for themselves in exchange for a discount or loyalty points – or just to stop the boredom. “It’s about finding new ways of doing things.”

EXPORT

COVER STORY

Catherine Lye

Executive Officer, ExportNZ Auckland

Kiwi export prospects are looking positive for the next year, despite what is often referred to as an uncertain global political and economic landscape. Overall, the second annual ExportNZ DHL Export Barometer show that international trade continues to flourish as innovative NZ businesses take advantage of bigger offshore markets.

“SMEs have a significant role to play because that’s where the high value jobs will be created.”

Preparation is the key to success

Traditionally growing businesses invested in an export strategy with very little market research. Reacting to overseas enquiries formed the basis of their development strategy, which meant it could be rather scatter-gun.

That’s no longer the case.

“Successful businesses are becoming far more sophisticated in their approach. They understand that you don’t treat your overseas customer as though they were in NZ, and consider the channels they’re entering, ensuring that they treat each country as several distinct markets, because each is very different.”

“When ExportNZ ask exporters what they would do if they had their time again, we hear, ‘Research, research, research’ and then, ‘Focus, focus, focus’.”

Managing risk is a key part of doing business, and currency movements are a key driver in fluctuation in export value. Financial education to arm SMEs with the skills to be part of the global economy is crucial. “Getting sound financial advice from your bank, or support from an accounting & tax advisor with international experience is vital.”

Greg Harford

General manager, Public Affairs, Retail NZ

“The last couple of years have been pretty challenging for New Zealand’s retailers, but I’m convinced there are real opportunities for businesses who invest in the customer experience.”

The basics are still the basics – great products, great pricing, great experience – but customer expectations have evolved.

“They expect you to be flexible, have some kind of digital presence, and to be able to research you online before they visit or make an enquiry. You don’t necessarily need to be fully e-commerce, but you do need to be accessible to your customers, no matter the time or their whereabouts.”

Attracting customers and keeping them occupied

Many businesses are choosing to offer on-site wi-fi. For retailers, this may seem counterintuitive as customers could potentially search for items and find a cheaper price. However, if someone’s using that service, they’re likely on the premises for longer, wandering around

the store, viewing more stock, and engaging with staff. Plus, it could attract more custom from overseas tourists.

How about offering coffee, a space for the kids to play, or even an electric vehicle charging point?

Potential legal stumbling blocks

Any products being sold in New Zealand must comply with the Fair Trading Act and the Consumer Guarantees Act. Problems can sometimes arise when using overseas suppliers whose standards vary from those of NZ. “Check this carefully, and ask your suppliers about their ISO 10377 compliance too.”

Business continuity is an area which can get left behind when a business grows. “In particular, I’d urge business owners to know your insurance. Find out if you’re adequately covered for force majeure. What would happen if your building was inaccessible, or if the offices next to yours were suddenly empty and you lost 80% of your customers?”

Exporting digital services

Investing in digital strategy continues to be important, with 30% of NZ businesses enhancing their online presence to drive increased export sales – and not just for products. The Internet allows service businesses to export. “A tour operator in North Harbour might be found on WeChat, have deposits paid via AliPay, and receive leads through TripAdvisor.

Exporting is no longer just feet in the street forming relationships, but connecting your products and services to the established global marketplaces that already have a hungry consumer audience.”

Potential legal stumbling blocks

IP protection is an area where exporters could come unstuck.

Sound recordkeeping is essential for copyright. “When you identify target markets, make sure that you develop an IP protection plan, appropriate to that territory. Choose distinctive brand names, and make sure you own copyright in your logos, packaging designs and products.”

Other factors to bear in mind are product liability standards and labelling requirements for each jurisdiction. Other countries can have very different legal environments. Bankers need business owners to address these issues in any request to finance transactions and to assess the risks of non-payment. “It’s vital that the assessment of a market or customer includes these factors. After all, a sale is not completed until the money is in the bank!”

To provide peer-to-peer support for business owners on the early stages of their export journey with the ambition and motivation to achieve global growth aspirations, ExportNZ have recently launched Excelerate100.

Visit www.exportexcelerator.co.nz to find out how this could help your business

MARCH 2 0 1 8 FYI BUSINE SS N H . O RG. N Z

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LOGISTICS & TRANSPORT

COVER STORY

Keith Robinson

FCILT, President Elect (VP) and Northern Chair, Chartered Institute of Logistics & Transport

Keep on trucking

In terms of transport & logistics, North Harbour businesses primarily have to rely on trucks. There’s no railway in this area and this situation is unlikely to change. “The cost is just too prohibitive. Heading north, the tunnels aren’t adequate to cope with rail which means they’d need to be demolished and rebuilt.”

The Puhoi Corridor should improve some journey times, and logistics suppliers and customers are already reporting benefits from the Waterview Tunnel.

It would seem logical therefore for growing SMEs to invest in more or bigger trucks. Forward-thinking businesses may wish to consider battery-powered vehicles, since electric courier vans are now a reality, and earlier this year a 58-tonne electric freight truck was one clean, green initiative to receive a share of $3.74 million of Government funding, with $1.74 million being allocated to provide more charging stations nationwide.

Kiwi ingenuity providing a win-win for suppliers and customers

Up to 30% of freight on NZ roads is unutilised.

Why? Consider this scenario. A truck takes its load from Rosedale to Hamilton, drops it off, and then returns to Rosedale – empty. Progressive transport firms are collaborating to try and mitigate this situation – and its associated environmental and financial implications. “It’s like Uber for trucks!” This online initiative allows customers to look up where empty freight may be running and bid to fill that space. “It’s a win-win. The customer could gain that trip at a reduced cost, and it’s not a completely wasted journey for the transporter.”

Earlier this year a 58-tonne electric freight truck was one clean, green initiative to receive a share of $3.74 million of Government funding, with $1.74 million being allocated to provide more charging stations nationwide.

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MAR CH 2 0 1 8 F YI B US I N ES S NH. ORG. NZ

Improving efficiency, reducing risk Definition of BLOCKCHAIN A system in which a record of transactions [made in bitcoin or another cryptocurrency] are maintained across several computers that are linked in a peerto-peer network. ‘We can actually have a look at the blockchain and see evidence of what’s going on’ (Oxford English Living Dictionaries) The blockchain approach is becoming more prevalent within supply chain management. It provides transparency and traceability, and helps to monitor efficiency. This is useful not just as good business practice but for legal compliance too. Adopting this web-based approach doesn’t have to be expensive, but it does involve an investment of time, particularly for business owners who aren’t especially IT savvy. “You just need to get your head around the process.”

Definition of INTERMODAL being or involving transportation by more than one form of carrier during a single journey (Merriam-Webster) Companies who are seeking to increase their product distribution could also investigate the benefits of intermodal containers and journeys. Once again, logistics providers are working together so that customers can enjoy the benefit of a streamlined service, whilst also potentially improving security and reducing the risk of damage to products. And once again, it’s a win-win for the suppliers, the customers and the environment.

Investing in this strategy could prove valuable long-term.

“Some smaller freight companies are operating on only a 1% to 3% margin, and their owners may sell out to larger companies as they retire. This will mean that customers have less choice of supplier, and less choice means higher prices.”

Potential legal stumbling blocks

Health & Safety legislation is where some smaller businesses fall down. The Health & Safety at Work Act 2015 (HSWA) is significantly broader and more stringent than previous regulations of the 1990s. “Growing SMEs need to recognise their obligations – especially with staff and contractors – and behave proactively. The repercussions of not doing so could break a business.”

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MONEY MATTERS

The Psychology Of Money Thinking beyond budget and cashflow

When considering the financial factors which are essential for a business’ long-term success, most people would immediately think of budget and cash flow. Logical planning and accurate monitoring of these elements are vital of course, but there may be another component which is either forgotten or even unrecognised.

This is the business owner ’s money mindset. Or, to put it another way, how they feel about money. Messages heard in childhood – “Money burns a hole in your pocket” or “Don’t spend it. Save it for a rainy day” – can be unwittingly carried into adulthood, and impact personal and professional financial matters.

Lynda Moore is the co-founder of Money Mentalist. As a chartered accountant with more than 20 years experience and postgrad qualifications in psychology, she helps clients recognise their money mindset and develop strategies to overcome potential internal obstacles.

She recommends that business owners begin by thinking about how they define “wealth”. Then when they think about being “wealthy”, notice whether that incites positive or negative emotions.

This could be significant as an indicator of their money ceiling. “The most vivid example of someone who has hit their money ceiling is the lottery winner who suddenly receives millions of dollars and, within a few months or years, loses all their winnings and more besides, including relationships,” explains Lynda. “They weren’t psychologically prepared or ready for that influx.”

Business owners wishing to find their money ceiling may wish to do the following: 18

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“Look at your current income, and now multiply it by 20. How does that make you feel? Elated and amazed or worried and overwhelmed? Keep dropping the multiplication factor until you relax enough to think, ‘I can achieve that’. If it’s higher than your current level (your money floor) then that immediately gives room for upward progress.

If not, and financial growth is essential for your business to succeed, then there could be barriers to tackle.”

could be positive effects though, with the right approach,” comments Lynda. “A Hoarder could curb a Spender, and a Spender could persuade a Hoarder to invest and take some necessary risk.”

Amongst small business owners, Monks – who, simplistically speaking, believe that money corrupts, and try to avoid having too much of it – would seem to be very rare.

“I’ve personally never worked with one,” says Lynda. However, there are definitely some Avoiders, and she advises that they should be mindful.

“Avoiders delegate, which can be great as it gives them more time to focus on the core business. But they’re so desperate to hand over that financial responsibility that they can trust people too readily, ignore potential warning signs and may be taken advantage of, simply because they wanted the relief of getting the stuff off their desk.”

Ultimately, no one money personality type is “better” than another; each has their own set of plusses and minuses. But acknowledging and addressing their money mindset could give business owners an extra advantage as they strive for growth.

Messages heard in childhood can be unwittingly carried into adulthood, and impact personal and professional financial matters.

Lynda regularly sees real-life examples of this. “I particularly recall a construction company who were stuck at a certain level of income. They’d consistently priced jobs wrong, never getting beyond that financial point. It’d become a repeat pattern.”

The significance of someone’s money ceiling may also be linked to their money personality. It’s broadly acknowledged that there are 5 basic money personality types: Spender, Hoarder, Avoider, Amasser and Monk. Combinations of these are also possible, such as Amasser-Spender (“think Donald Trump”) or Amasser-Hoarder (“think Bill Gates”).

Conflict can occur if two business partners have opposing money personalities. “There

Lynda Moore

To learn about your own Money Personality, visit www.moneymentalist.com

ASIAN BUSINESS MATTERS

Improved communication = improved business relationships 3A Solutions work with Chinese business owners wanting to grow in NZ, and Kiwi businesses seeking to attract more Chinese customers (both in NZ and mainland China). From this experience, account manager, Edward Lin, has some ideas and insights to share.

A few hints & tips for businesses seeking to attract more Chinese customers

Be aware that Chinese social media is quite different to NZ’s. For various reasons, people from mainland China are not accustomed to Facebook, LinkedIn or Instagram. However, WeChat is frequently used in favour to e-mails, and this means there’s an expectation of immediate response times.

SkyKiwi is a popular platform, similar to TradeMe, where products and services may be advertised to a predominantly NZ Chinese market.Chinese customers are generally focused on value, and to them that means cost. Brand loyalty is not a familiar concept; it’s commonplace to shift to a new product if it offers the same thing for a cheaper price. Make sure you stress the real benefits of your product or service and, if it’s a limited time offer, make sure you highlight this.

A few hints & tips for Chinese businesses seeking to broaden their customer base

B e b r a v e ! Tr y t o “ u n l e a r n ” y o u r traditional communication habits and take a step onto NZ’s mainstream social media platforms.

Price isn’t everything, and many Kiwi businesses value the long-term relationships they have with their customers and suppliers. It takes time to build trust and rapport, so be patient.

You could be working with a preferred partner for the next 5, 10 or 15 years.

You may not receive an immediate reply to an e-mail. You’re not being ignored, but your e-mail is likely one of many which require a response. If your query is urgent, make sure you stress this. Or, why not pick up the phone for a chat?

FYI would welcome contributions for this page. If you are an Asian business organisation which has information to share (for example: news, upcoming events, photos from expos, business advice) please contact us on (09) 968 2222.

给想扩大客户群的中国商家的 一些提示和建议 勇敢一点！尝试跳出传统的沟通方式，善用新西兰的主流媒 体平台。 价格不是一切，很多本地商家重视与客户和供应商的长期合 作关系。建立信任和良好关系需要一定的时间，所以要耐心 些。你可能会找到一个能 与您合作5年、10年、甚至15年的 很好的的客户或供应商。 有时候对方可能不会马上回复您的电子邮件。这并不是说， 对方不会回复你，而可能是因为他们需要回复很多电子邮 件，还没有来得及回复您的。假如你需要紧急回复，在写邮 件时，请确保你告诉对方这件事情很紧急，请他们尽快回 复。或者，你也可以直接拨打他们的电话。 FYI 欢迎大家投稿。如果你是亚洲商家，并想分享信息（例 如：新闻、近期活动、展销会的照片、业务建议），请与我 们联系 (09) 968 2222。

MARCH 2 0 1 8 F YI BUSINE SS N H . O RG. N Z

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TRANSPORT

New bus station for Rosedale?

On 8th December 2017, Hon. Phil Twyford, Transport Minister released the plans for a proposed new bus station to be located on Rosedale Road, currently where the Turners car site is located.

The station is expected to cater to a minimum of 4,000 commuters per day.

The plan is to include local bus stops on Rosedale Road, drop off and pick up areas, and some parking spaces for operational and mobility access car parks (which will be

located off Arrenway Drive).

When Rosedale Busway Station is completed there will be further service changes which will re-route and improve public transport services to the new station.

The construction is due to start in 2019, with completion in 2021.

In theory, Business North Harbour are supportive of investment which provides options for commuters and employees to get to and from work. Especially if this

Transit T2 and T3 Lanes Business North Harbour have received a number of queries from members about correct usage of the Transit Lanes. We put these to Auckland Transport on your behalf, and here is their response: There are various types of Special Vehicle Lanes. In Auckland we have Bus Lanes (which can also be used by cyclists and motorcyclists), T2 Lanes (vehicles with two or more occupants) and T3 (vehicles with three or more occupants).

If you want to use any Special Vehicle Lane, you must fit within the designated category.

You may also use the lane for the purposes of completing a safe turning manoeuvre (turning left). You can enter the lane from 50 metres out from the turn.

This is the same anywhere in New Zealand; it is not a rule set by Auckland Transport.

To make it easier for motorists, Auckland Transport will not issue an infringement for any travel in the lane from a point 70 metres from the turn. We give motorists a full 20 metres above the national guideline.

Some lanes that have a major intersection approaching may be marked with a guide for a safe turn in. The line 20

MAR CH 2 0 1 8 F YI B US I N ES S NH. ORG. NZ

marking will go from a solid green line to a series of broken green lines to indicate that the distance to the intersection is approximately 50 metres and you can enter the lane to turn.

This will correspond with a solid white limit line and corresponding broken white limit line.

Please do not get these confused with any yellow lines as they are safety based lines.

These solid green and broken green lines are not a legally required traffic management marking, they are a guide only and are placed at some major intersections to assist the public.

Keep up to date with all our region’s transport projects at businessnh.org.nz/better-transport

investment reduces demand for on-street parking, through improved public transport links from neighbouring suburbs. However, we need to ensure that the location of this proposed transport hub does not adversely affect your business’ ability to function.

Help us by providing feedback for our submission by completing this online survey: surveymonkey.com/r/ businessownerrosedale before 9th March.

Parking charges planned for Albany A u c k l a n d Tr a n s p o r t ( AT ) h a s confirmed it will introduce paid parking within the Oteha Valley, Albany Express Way and Motorway (excluding Westfield Mall and QBE North Harbour Stadium area) zone for Albany in late 2018 to coincide with when the New Network for bus services takes effect. The New Network should mean improved bus services connecting the Shore to the Northern Busway.

On-street parking will be charged at $1.00 per hour from 8am to 6pm, Monday to Friday, with no limit on how long vehicles can park. A 10-minute grace period will allow for pick-ups and drop offs, and existing loading zones and mobility parking are not affected.

Business North Harbour provided a submission presenting the views of the businesses which reside within the designated streets.

To read this submission, please head to businessnh.org.nz/ formalsubmissions

NZTA UPDATE

Northern Corridor Improvements Project given green light The Board of Inquiry released its final approvals report granting consents and designations for the Northern Corridor Improvements (NCI) project on the 6th December last year and we are now gearing up to begin construction within the next few months.

Who will manage construction?

Following contract negotiations the NZ Transport Agency has confirmed it has signed an alliance contract with Fulton Hogan, HEB Construction, Jacobs and Opus to build the NCI Project. Key staff from all four organisations and the Transport Agency have been seconded in to the alliance for the next 3-4 years to oversee the management and construction of this $700 million investment in the North Shore and Albany area.

Night time works

Emma Cushnie

Trish Viall

Who can you contact about the NCI Project?

Building strong community relationships and providing personal contact points is a key part of the alliance’s management philosophy. Experienced construction community managers Emma Cushnie and Trish Viall will be working closely with the community to build a wealth of knowledge of what is happening locally in each area.

Monthly info days will be held where you can pop in to see the team and chat. For more info contact them on 0800 624 776 or northerncorridor@nzta.govt.nz.

Night time works underway

Four months of night works on SH1 are currently underway, to prepare the motorway

for the upcoming NCI Project. The aim of the night works is to provide the construction crews with safe, offline areas to work in and to minimise temporary traffic management or changes to motorway lanes when the main works get underway. New lane markings will be put in place as well as a temporary speed limit of 80k/h for our crew’s safety. Night time detours are in place while these works are underway – check www.nzta.govt.nz/traffic and plan ahead to give yourself more time if travelling in the evenings. Note that HPMVs travelling at night should follow the detours advised by your association.

Bridge works at Spencer Road, Albany

Drivers or bus passengers travelling along SH1 through the Greville Road/Spencer Road area will also have noticed that the team building Tirohanga Whanui (the new Spencer Road – Albany walking and cycling bridge) have excavated large site areas on both

What you will see happen in the first six months of 2018

• D o o r k n o c k i n g , m e e t i n g s a n d a d v a n c e n o t i f i c a t i o n s o f w o r k s t o a l l affected neighbours.

• Early works to prepare the motorway, such as pavement strengthening to reduce the risk of skids and potholes. Median barrier replacement and narrowing of lane widths, as well as temporary 80km/h speed limit to create a safe work zone for construction crews.

• Establishment of construction sites, vegetation clearance, fencing and signs.

Rebuilding and widening of motorway bridge structures and Watercare assets.

• Extra VMS signs to warn you of what’s ahead.

sides of SH1, with a large crane now on site too. We thank all the project’s neighbours for their support and apologise for any disruption during the build of this new bridge.

Sports club relocations

The Transport Agency has been working with North Harbour Hockey, Harbour Hockey Charitable Trust, Hockey NZ, Watercare and Auckland Council for the past two years to investigate options for relocating the current hockey facilities in the area. In late December 2017, the Upper Harbour Local Board approved the steering group’s recommended proposal, which will move the hockey facility to another part of Rosedale Park, build a new facility for North Harbour BMX in Hooton Reserve, and build a new pony centre in Wainoni Park, Greenhithe, onto which Rosedale Pony Club will relocate to alongside other pony clubs. The build of these three facilities has now been awarded to the NCI Alliance to complete on behalf of the sports clubs. Community engagement with neighbours, sports groups and players is expected to begin in early 2018, and will share the intended construction timetable and details for each of the new facilities. It is planned that all three facilities will begin construction by mid-2018.

For more information on the NCI project visit nzta.govt.nz/projects/the-westernring-route/auckland-northern-corridor/ or phone 0800 624 776 MARCH 2 0 1 8 F YI BUSINE SS N H . O RG. N Z

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SOCIAL RESPONSIBILITY

Food waste and inorganic collection initiatives Business waste could account for up to 86% of all landfill. That’s potentially 1.4 million tonnes per year. Business North Harbour can help you reduce your business’ environmental impact.

Food Waste Collection Business North Harbour is launching this new initiative for all members!

Two reputable companies, We Compost and Reclaim, have been selected to provide the services to SMEs, large corporates and hospitality outlets across our region. Both businesses offer a clean, effective and easy solution for the recycling of food waste. It’s taken to a commercial composting facility which subsequently provides and supplies organic compost to farms and growers. Along with diverting food waste from landfills, this process also greatly reduces methane gas produced in landfills and limits the use of synthetic fertilizers.

Both companies offer various sized bins and bin liners to suit each organisation’s requirements, and these can be discussed during a complementary site visit.

We encourage all our members – especially cafés, restaurants, bakeries, grocery stores and fast food outlets – to register your business.

It’s first-in, first-served – AND YOUR FIRST SIX COLLECTIONS WILL BE FREE!

Inorganic Collection

Our Inorganic Collection service began in June 2015. Since then we’ve run two collections every year, in March and September/October.

So far, 332 cubic metres have been collected with only 12 cubic metres returned to landfill.

134 businesses have used the service and, on average, each collection attracts 85% new customers.

Our next inorganic collection dates are 15th-16th March for all Business North Harbour members that register on our website by Friday 9th March.

As previously, it will cost only $35 + GST per cubic metre collected (min charge) and there are no minimum or maximum collection amounts.

To make the process as smooth as possible, collections are made from your premises and not kerbside. All reusable items collected are first offered to charities and non-profit organisations before being broken down and recycled.

HELP REDUCE LANDFILL

THIS WILL NOT ONLY HELP PROTECT OUR ENVIRONMENT BUT IT WILL ALSO SAVE YOU MONEY

FIND OUT HOW Food Waste Get six collections free T & C’s apply

Register here: businessnh.org.nz/foodwastecollection

Inorganic Collection 15-16 March Reduced collection Costs Register here: businessnh.org.nz/inorganiccollection

businessnh.org.nz Contact Dave for further information: david@businessnh.org.nz

CRIME PREVENTION

Protecting yourself from the fraudsters Unfortunately, many FYI readers will either know someone who’s been defrauded at some point, or may even have been victims of fraud themselves.

are not returning my calls, text messages or e-mails.”

“I paid $400 for an iPhone 8 (worth $1200). I met the person in the Greenlane supermarket car park at 11.30pm. I paid the guy and I was given an empty box full of paper. He left before I could open the box.”

You could say, how stupid are they, and that you would never do that, but you just might just get caught out. Be careful when trading.

There is NO guarantee that these victims will ever see their money again.

Online scams

There are a multitude of scams doing the rounds at the moment, including:

This is a massive area of concern as a large percentage of online banking scams originate overseas, and it’s very difficult for NZ Police to hold offenders accountable.

Here’s some general advice about how to keep safe and not be exploited by the criminals.

Internet Fraud

I’m sure most of you at some time have purchased or sold something online and had no problems at all, but be warned that there are less than honourable people out there waiting for some unsuspecting person to prey on and relieve them of their hard earned cash.

There are several things you need to consider, especially if you are buying something on TradeMe, Wheedle, Sella or any of those types of websites.

The first thing is: if an offer sounds too good to be true it probably is, so this should immediately raise your suspicion.

Here are some things you can do to protect yourself: • Do the trade in person, but use common sense when meeting them. Meet in a public place and don’t go by yourself.

• Don’t hand over the money or items until you are sure you know what you are

getting or whom you are selling to.

• Get to know the seller by looking at their selling history and the goods they sell.

Be extremely careful around the payment method used for persons selling with little or no selling history. Google is a great search tool.

• Check the item you are purchasing and ask the seller questions about it, to ensure they own it. If the serial number is scratched off… enough said!

• Never use Western Union, MoneyGram and other money transfers as a payment method.

• If you cannot do the trade in person, use Buyer Protection or something similar.

Always ask yourself: “Have I won the item – or have they won their next victim?”

Real life stories

The following are all comments on active files being investigated by NZ Police: “I let the guy take my motorbike for a test drive and he never came back”... (No ID shown) “I paid $130 for an iPhone 5 and I banked the money into the bank, but I haven’t got the phone”... (Off shore bank account) “I put $800 in the person’s bank account.

I received a broken phone, and now they

• False e-mails from your bank asking you to click on a link and update your personal banking details.

• False invoices from clients with a different bank account number attached.

• And the best of them all, the relative who has left you money or the lotto win overseas from a ticket you have never purchased. It is extremely unlikely that you have a long lost relative that has passed away and you are the only living next of kin or you have won an off shore lottery worth millions and all you need to do is send some money and bank account details to release your inheritance or winnings!

DON’T get sucked into this. You would be surprised how many people do.

If you receive these texts or e-mails, do NOT open them. Delete them immediately.

Remember, no bank would ask for your personal banking details online or over the phone from an unsolicited e-mail or phone call.

Tr a d i n g a n d w o r k i n g i n a n o n l i n e environment is just the way things are done these days and it is generally very safe.

But, like any business transaction, do your research, take precautions and be careful.

Don’t be the next victim.

Other agencies that can offer further advice and support are: Netsafe: netsafe.org.nz Department of Internal Affairs: dia.govt.nz Victim Support: victimsupport.org.nz Ministry of Consumer Affairs: consumeraffairs.govt.nz/scamwatch

Sergeant Tony Bruce Glenfield Community Policing Centre E: Tony.Bruce@police.govt.nz www.police.govt.nz MARCH 2 0 1 8 F YI BUSINE SS N H . O RG. N Z

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Masterclasses for the community As we all know, well-being education is most effectively delivered when there is a consistent approach to issues both at home and at school. One way in which Kristin seeks to nurture this consistency is through the hosting of a new ‘Masterclass’ each term. The vision for these sessions (which are usually free of charge) is to engage regularly with parents and the wider, local community, on a variety of well-being topics that affect the lives of children and teenagers and about which parents may wish to learn more. Topics in 2017 included the teenage brain, resilience, the issue of the ‘spoon-fed generation’ and screen addiction.

In the ‘Spoon-fed Generation’ Masterclass, Australian author and parenting guru Dr Michael Grose strongly argued that over-parenting is responsible for creating a generation of anxious dependent children.

Dr Grose argues that currently we do too much for our kids – we give them too much, expect too little – and are raising a generation of nervous children who fall apart when a skerrick of pressure is applied to them. In the Masterclass, he outlined that our ‘spoon-feeding’ ways are turning children into dependent adults with limited capability to function in the world. He finds many parents say, “I wish I had let go earlier. I wish I had not done so much for them.”

In another 2017 Masterclass, American psychologist and international bestselling author of ‘Glow Kids’, Dr Nicholas Kardaras spoke to an audience of over 600 members of the community about the science of screen addiction. Dr Kardaras shared his research and findings, and advice on what we can do in practical terms to help our young people with this increasing problem. He has been actively advocating that screen addiction be recognised as a clinical disorder akin to substance addiction, saying it’s easier to treat a heroin addict than a screen addict.

From a schooling perspective, Dr Kardaras says: “I’m not disputing there is a place for technology as a helpful adjunct to effective teaching, but […] having unfettered screen access in schools, especially in

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WEDNESDAY 4 APRIL / 7PM / KRISTIN SCHOOL AUDITORIUM Learn Professor Grant Schofield’s rules around nutrition, activity, sleep, multi-tasking, and focusing on strengths to help our children, teenagers and us all, lead healthier, happier lives.

BOOK YOUR FREE SEAT AT WWW.EVENTFINDA.CO.NZ/GO/KRISTIN

elementary levels [up to 10 years old] is problematic.” Dr Kardaras says we need to remember that children are not neurologically equipped to manage the impulse control to moderate their behaviours on screen, especially if they have already developed a compulsivity to that screen experience. He says that research also shows the younger and more vulnerable the person is, the more significant the neurological impacts are. Being well informed and role modelling the behaviour you want to see in your children is vitally important.

Parent and community feedback on the Kristin Masterclasses has been very positive.

Book your FREE seat to ‘Brain Rules for an Awesome Life’ - 7pm, Wednesday 4 April 2018, in the Kristin School Auditorium at eventfinda.co.nz/go/kristin.

The Phantom of the Opera Early in 2017, Origin Theatrical (Australia) took the unprecedented step of announcing that – for 2018 and 2019 only – Sir Andrew Lloyd Webber and The Really Useful Company would be considering applications from schools in Australasia to stage ‘The Phantom of the Opera’, one of Webber’s (and the world’s) greatest musicals. Kristin

applied immediately and were ecstatic to be granted the performance rights.

“On behalf of us all, I thank Sir Andrew Lloyd Webber for giving Kristin the honour of being one of the first schools in Australasia to stage this spectacle, in our 45th Anniversary year,” said Lorna Rood, Kristin’s Artistic Director of Productions, in her statement to the school.

‘The Phantom of the Opera’ has consistently played to larger audiences (over 140 million people worldwide) and, for longer performance seasons, than any other musical in history; and Kristin look forward to sharing the unforgettable score and incredible theatrical experience with you.

School Production 17 – 20 May 2018

Tickets on sale via iticket.co.nz from 12 March Music by Andrew Lloyd Webber | Lyrics by Charles Hart | Additional lyrics by Richard Stilgoe | Book by Richard Stilgoe & Andrew Lloyd Webber Based on the novel ‘Le Fantôme de l’Opéra’ by Gaston Leroux | By arrangement with ORiGIN™ Theatrical | On behalf of the Really Useful Group Limited | Logo TM & ©1986 RUG Ltd

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COMMUNITY

Project K – real lives, real difference Did you know that almost a quarter of a million young Kiwis lack what’s regarded as a healthy level of self-confidence?

Project K is an initiative from the Graeme Dingle Foundation which is helping to improve this situation. It’s a 14-month programme for Year 10 (14 year old) students that focuses on building confidence, teaching solid life skills, promoting good health and encouraging a positive attitude. It does this with 3 main components: • The Wilderness Challenge – a 3-week outdoor adventure • T h e C o m m u n i t y C h a l l e n g e – a n opportunity for students to give something back to their community • Mentoring – each student is paired with a personal mentor to help them achieve their goals and maintain the changes they’ve made in the first 2 stages.

What’s it like to be a Project K mentor?

Mentors need to build trusting, authentic partnerships with their students to help them set and reach their goals. This means meeting up every fortnight and catching up weekly by phone or e-mail. Mentors also have the chance to share their successes and challenges at monthly mentor meetings and participate in Project K events.

Amongst other things, being a mentor offers the chance to: • Make a difference to a young person’s life by encouraging them to reach their potential • Achieve personal development through the experiences and learning from mentoring • Learn about current youth issues • Develop peer support networks with other Project K mentors Byran Theunisen has been involved with Project K for 8 years. He was keen to be part

of a worthwhile project for young people, so he describes becoming a mentor as a “no brainer”.

“These kids don’t suffer fools!” says Byran.

“They see through any bluff and keep you grounded. Their perspective is refreshing, and I feel grateful for that.”

Byran says that the training provided for Project K is invaluable, and not just for his role as a mentor. “They teach you about empathy, how to listen, how to ask open questions and help someone find their own answers without giving them,” he explains. “This has been of great benefit in my worklife too, where I’m looking after a team who are mostly younger than I. In fact, I’d say my team management skills have improved tenfold.”

Byran feels that his ability to develop a rapport and forge strong meaningful relationships quickly has been enhanced too, which has had a positive effect on his new business development skills.

He acknowledges that the commitment, especially of time, could deter people from volunteering. However, he observes, “This programme can actually help with your time management, prioritisation and delegation.

You have to make the time to be with your young person, so how are you going to achieve that?”

of myself, and that I won’t get anywhere in life without putting in the hard work. But after all the things I learnt and experienced throughout Project K I now have the ability to have healthy, honest and loving relationships with my friends and family.

I wish every teenager got the opportunity that I did. I truly believe that if they all got the opportunities that I did now they would be the making of a peaceful and fair world later.

Want to know more about becoming a Project K mentor?

Project K is looking for mentors in the North Harbour area.

The first step is to sign up for 2 Saturdays of mentor training. These sessions are held just down the road in Henderson on the following dates: 14th & 28th April, 9th & 16th June, and 18th & 25th August.

TO FIND OUT MORE Elena Searle Mentor Recruitment Co-ordinator Graeme Dingle Foundation Head Office 6 Triton Drive, Albany, Auckland 0632 Ph: (09) 477 6237 or 0800 435 775 E: elena.searle@dinglefoundation.org.nz W: www.dinglefoundation.org.nz/ProjectK

What does Project K mean to its students?

In the words of just one participant: In a way, Project K has saved my life.

I had no goals and no self-respect. On Project K I learnt about choices. I learnt that I have to choose to make something MARCH 2 0 1 8 F YI BUSINE SS N H . O RG. N Z

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PROFESSIONAL DEVELOPMENT

What happens when a commercial tenant outgrows their space?

An introduction to negotiating a Surrender or Assignment of Lease

Successful companies that experience growth in a short period may need to relocate and move into bigger premises much sooner than the initial business plan anticipated. This may mean having to negotiate surrendering or assigning a lease, particularly in situations where the current term of the lease has a number of years left to run and the need to move is far more immediate.

It’s important to know the difference between a Surrender of Lease and an Assignment of Lease, as well as understanding the process to obtain the desired outcome, and any liability that may remain subsequently.

What happens when a lease is surrendered?

At this point, a tenant’s interest in the premises is transferred back to the landlord, and both parties accept that the lease is terminated. The tenant is released from all liability for paying rent and performing covenants in the future. They would, of course, still be liable for rent already due and any other existing breaches. The surrender is usually formalised by the entry into a Deed of Surrender of Lease. The tenant would be required to pay the landlord’s costs for considering the surrender proposal and formalising the process.

Finding a new tenant may be costly, due to marketing the premises and agent fees. A new tenant is also an unknown entity, potentially creating more risk for the landlord.

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Is a landlord obliged to accept a request to surrender the lease?

They are not! In certain instances, the landlord’s lawyer could actually advise against doing so. This would likely be because the landlord has certainty under the existing lease with the tenant. Finding a new tenant may be costly, due to marketing the premises and agent fees. A new tenant is also an unknown entity, potentially creating more risk for the landlord.

It is still possible to negotiate a surrender, but any well-negotiated exit should address the landlord’s potential concerns. A tenant wanting to strengthen their position and encourage the landlord into granting a surrender might try to find a new, good quality replacement tenant. The surrender could then potentially be agreed, subject to a condition that a Deed of Lease with the new approved replacement tenant is delivered

PROFESSIONAL DEVELOPMENT

prior to surrender. Alternatively, a tenant may wish to agree to make a compensatory payment to help persuade the landlord to agree to the surrender.

and outgoings on the premises, and that they’re able to run a profitable business. The landlord could also request credit checks and references.

When would an Assignment of Lease be used?

Is the landlord obliged to accept an Assignment of Lease?

If it simply isn’t viable for the landlord to accept a Surrender of Lease, then an Assignment of Lease could be the other option. A fully-executed Deed of Assignment of Lease establishes a new, direct relationship between a new tenant and the landlord. However, the fundamental terms of the original lease – such as duration, monthly rent, outgoings apportionment and rent review conditions – remain the same.

So, a tenant can arrange this without landlord involvement?

No, an Assignment of Lease requires the landlord’s consent. Furthermore, a prudent landlord will want information about the proposed assignee (replacement tenant) and guarantors. This might comprise a CV or work /business experience record, and financial statements including evidence of all assets and liabilities.

The landlord should be satisfied that a prospective new tenant is financially stable with sufficient funds to pay the rent

No, they’re not. Most standard form ADLS (Auckland District Law Society) leases provide that the landlord may not

unreasonably withhold consent, however the landlord is entitled to make their decision based on the application. That’s why it’s crucial to have accurate, clear and complete information about a proposed new tenant.

It’s also important to note that, after an Assignment of Lease, if a new tenant and guarantors default, the old tenant and any guarantors remain liable under the existing terms of the lease.

At McVeagh Fleming we have the experience and expertise to assist you with all your commercial property needs. Our specialist solicitors regularly act for landlords and tenants in complex leasing matters, and are able to provide timely, informed advice.

To find out more, contact: Kate Chivers (09) 415 4477 kchivers@mcveaghfleming.co.nz

Find McVeagh Fleming in the Business North Harbour Online Directory

Delivering Biosecurity Training for Transitional Facilities and Accredited Persons New Zealand Biosecurity Academy (Albany based), is approved by the Ministry for Primary Industries to deliver Accredited Person and Transitional Facility Operator training.

We provide flexible, cost effective training in small classes that are delivered by experienced trainers to meet regulatory requirements for companies who are involved in the transport, delivery and devanning of imported shipping containers and imported goods.

Visit our website to find out more, and to book an Accredited Person or Transitional Facility Operator training course. Alternatively call us on 0800 382 436 to see how we can assist you.

www.biosecurityacademy.nz FACILITATING TRADE + PROTECTING ENVIRONMENTS + ENABLING BIODIVERSITY + MAINTAINING HUMAN HEALTH

PROFESSIONAL DEVELOPMENT

Simplify Your Accounting When your business is small, you might be able to get away with using a manual accounting process, but as you grow, managing taxes and accounting becomes more complex and time-consuming.

Sheer growth in transaction numbers, payroll, taxation, margin management and financial reporting require that you invest in a smart accounting system. Wisdom shows that intelligent business owners invest in effective business accounting software from the start, before growth kicks in.

In the ideal world, you will want accounting software that grows with you, helps you track increasing volumes of receivables, expenses and revenue and one that creates reports that provide an at-a-glance summary of the company’s financials.

Rapid growth is the goal for all businesses.

Growth can lead to making determined decisions on resources, staffing and contractors. When growth happens, you will be assessing whether your current systems and software can serve your needs, whether you have enough working capital to cover necessary investments and tracking and managing more complex finances becomes a challenge. You will also need to ensure

that you continue to offer day-to-day client account services and invoicing.

Having a great accounting system can help you avoid the financial turmoil common with growth and provide you with the landscape to thrive!

AccountabilityNet is a progressive accounting practice, operating on Auckland’s

add-on systems such as WorkflowMax, Tradify and Receiptbank for job, timesheet and expenses tracking. They help businesses seamlessly transfer from desktop to cloudbased systems ensuring that their finances are correctly managed and available 24/7.

AccountabilityNet, speak the language of your business and provide affordable,

Rapid growth is the goal for all businesses. Growth can lead to making determined decisions on resources, staffing and contractors.

North Shore for more than twenty years.

They work with the latest cloud-based technologies to support and grow your business. AccountabilityNet provide expert assistance for Xero including set-up and add-on implementation. They also offer

easy-to-understand financial reports and accounting services. A diverse group of companies with a wide range of activities, including start-ups and those well-established, continue to benefit from AccountabilityNet’s services and support.

Call Patsy McCook.

She will demonstrate to you the benefits you can enjoy by becoming part of AccountabilityNet’s energetic, enthusiastic and knowledgeable team of switched-on accountants.

Accountants who understand the mechanisms needed to support thriving business.

Accountants that understand the importance of standing alongside their clients.

Patsy McCook (021) 257 0972 patsy@accountabilitynet.co.nz Find Accountability Net in the Business North Harbour Online Directory

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GOLD SPONSOR

What will 2018 bring to both business and personal travel?

Michelle Malcolm, managing director of Quay Travel, gives her view on travel in 2018, both for corporate clients and leisure travellers.

The Quay Travel team.

Increased airline capacity from new and existing airlines will continue to drive airfares down and we should continue to see the lowest airfare pricing ever. Add to that upgraded in-flight product and it has never been a better time to travel. Inflight connectivity is also becoming increasingly important for the business traveller and 2018 will see the roll-out of onboard WiFi with more and more airlines. Competition is fierce and this is a good thing for our clients!

For corporate customers, we believe it is time to simplify your travel policy.

Simplification allows travellers to spend less time worrying about the logistics of their trip and more on the purpose of their trip. For this reason, we are seeing customers coming back to the traditional “travel agent” in favour of trying to do it themselves online. The

airline and airfare choice continues to grow, and it can be difficult and time consuming for travellers to search out and find the best deal online.

Companies also have a duty of care to their travellers. Travel agents can really assist with support in this area, with 24-hour service if things go wrong and the ability to track down and contact your travellers anywhere in the world. 94% of corporate travel buyers are saying duty of care is their top travel policy priority. Our unique business model at Quay Travel is focused on providing a personalised and tailored solution to each client, a one size fits all model is not how we work. We are local in your community, 100% NZ owned and operated and you will enjoy a highly personalised service and invaluable expertise from our team of travel specialists

“I frequently travel to the UK and Europe for business and have dealt with many travel agents over the years. Nikki and the team at Quay Travel look after all my travel requirements and get me the great deals within my Frequent Flyer alliance.

Quay Travel have presented deals I never knew existed, so I no longer have to spend hours searching for the best deal as I know I am getting the best deal. I know they are always there to help when I am away should anything change. It is the little things that make the difference like calling before I leave and when I return to make sure everything is OK.” Nick Williams, Solution Dynamics Ltd – Business North Harbour member

with years of knowledge and experience.

For our leisure travellers, cruise will continue to be our biggest growth area in 2018. It is just so accessible for clients, you have so much choice, new ships arriving every month and some amazing cruise itineraries for every type of traveller.

For most of us, travel also plays a vital role in our leisure time, be it dreaming of the next place we would like to go, or planning our next travel adventure or actually taking that well-earned holiday. With airfares so low, overseas travel is now a more affordable holiday option for everyone. We are seeing some amazing deals to all destinations. Our advice though is to plan ahead (especially for school holidays), call us to let us know your travel plans for 2018 and we will hold your “wish list” in our database and notify you when the specials come out so that we get you the best deal possible.

Michelle Malcolm 021 545-823 michelle@quaytravel.co.nz www.quaytravel.co.nz

MARCH 2 0 1 8 F YI BUSINE SS N H . O RG. N Z

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ECONOMIC VIEWS

Loving the journey, planning your exit According to research commissioned by Xero in 2017, 90,000 business owners are likely to sell their company or retire in the next 10-12 years. That’s 20% of NZ’s small businesses – and yet it’s acknowledged that the vast majority of SMEs have no formal exit plan. It’s either too soon to think about it, or there’s no time, or there’s a lack of knowledge on where to start.

This is a recognised area of risk. Many small businesses without succession plans fail after their owners leave (retire, fall ill or die).

Peter Dickinson has built a strong reputation over more than 40 years in the technology industry, covering NZ and international markets. During that time, he’s helped build a number of successful tech businesses with a focus on international growth, led mergers & acquisitions from both sides, and provided strategic advice to tech companies ranging from start-ups to multinationals. In 2016, he was instrumental in the sale of Greentree International to MYOB. From the get-go, Peter describes himself as a builder, not a speculator. This is important as it expresses his goals and motivations. Furthermore, it underlines one of his key beliefs: that for an exit strategy to be successful, it must be done for the right reasons.

An ongoing, common sense approach

A positive exit strategy requires continuous preparation. “You should be doing the really simple things all the time,” he says.

It begins with The Basics. “Fixate on creating value, in terms of IP, customers and revenue. If you get that right, it’ll give you options to realise.”

Next comes Good Housekeeping, especially clean financial reporting. “You should be able to look at your monthly results one week after month end. Use technology 30

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to help you, and be consistent. Your monthly management updates or meetings are more relevant, and during discussions with third parties, it demonstrates that you’ve ‘got it together’.”

You have to love the journey.

It’s equally important to have a clean balance sheet too. “Whilst ‘creative things’ might be tax effective at the time, they can leave legacies,” observes Peter. “Keep it squeaky clean!”

With regards to Legal Matters, contracts for customers, distribution channels,

and employees and contractors should be standardised. “Don’t have numerous variations,” he advises. “Due diligence is so hard, and potential buyers want to eliminate as much risk as possible. If you have 100 customers on 100 different contracts, any acquisition would likely fall over.”

Similarly, check ownership of IP and domains, and ensure there is freedom to operate with no patents being breached.

He advises a pragmatic approach to bolstering the company, and keeping it as invulnerable as possible. Whilst certainly agreeing that insurance should be in place, Peter doesn’t believe it should be regarded as the solution to a problem. “Key person insurance should be the support, not the strategy.”

ECONOMIC VIEWS What’s best for the team?

Whether or not to involve staff in the exploratory stages of an exit strategy (especially a merger or acquisition) is a tricky subject. Peter feels it could be counterproductive for them to be included too early.

“There’s uncertainty, which means stress or a shift in attitude could be caused by a hypothetical situation only,” he says. “This could destroy ‘the vibe’ of a company, which is hard to get back and may cause damage for no reason.” Depending on the nature of the acquisition, there may also be the risk of “insider trading” accusations.

Only involving the Board and financial controller means that the eventual news will be a shock, but at least it will be a certainty. “Obviously, you don’t want to cause emotional disarray. You should be acting for the benefit of all.”

Trying to understand and avoid “the wrong reasons”

Peter admits that he is in the 5% of people who actually thrive on change. (Greentree being something of an exception as he stayed with them for 15 years.) Nonetheless, he’s come to recognise the importance of not changing things just for the sake of it, as this can cause unnecessary turmoil.

On the other hand, he stresses that

SMEs need to be aware of the potential consequences of not making palpable changes in the business. Overlooking this can lead to a business owner becoming disillusioned with the journey, and an exit being motivated by the wrong reasons.

“Things aren’t going as well as they would have liked, so they’ll try and mask the situation, but most people will see through this to the real deal,” says Peter. “Don’t be

You must have clarity of purpose. At heart, what’s your “Why?” self-delusional. See through your customers’ eyes, not your own. Don’t ignore advice just because it doesn’t fit with what you want to hear.”

Whilst NZ is a nation of innovators, a lack of market testing can be some SMEs’ undoing.

Peter estimates, for example, that 90% of software concepts go nowhere.

“It’s not enough to be a great developer.

Commercialisation is critical.”

He feels that it’s generally fear that holds

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people back, fear of the idea being a dud.

There’s also the personal excitement from friends and family, and not wanting to let them down. “So, you reinvent this, tune that, add a little something. You keep tweaking, but with a lack of any real affirmation.”

In tech terms, the Minimum Viable Product (MVP) is what undergoes limited testing in its potential marketplace. If it’s found that the product doesn’t suit that market, but could suit another, the company may pivot to that one.

Whilst this could have merit, it requires a separate investment of time and capital each time there is a pivot, and Peter cautions business owners who are considering this approach not to use it as an excuse to “flog a dud”. “It’s better to pivot than to be delusional, but keep your eyes open,” he urges.

“Be realistic.”

Furthermore, he acknowledges that pivoting may be more difficult outside the tech industry. For example, if a fine-dining restaurant decided that it really ought to be a casual bistro, the cost to achieve this could be prohibitive.

“It’s relatively easy to have a good idea,” he concludes. “It’s harder to have a brilliant idea, and it’s tough to realise either! Be brave. Do the proper testing to see which one you have.”

GOVERNMENT

SME LEAP Summit, Auckland Earlier this year, Hon. Stuart Nash, Minister for Small Business, addressed the SME LEAP Summit. Here are a few of the key points he raised.

AIM – Accounting Income Method

This is a new method of managing Provisional Tax, which is available from 1st April. It’ll be necessary to opt-in via AIM enabled accounting software on or before the first payment due date. For businesses which file their GST bi-monthly, this will be 28th June.

The goals of this new “pay-as-you-earnprofit” system are to try and lower compliance costs, and give small businesses more certainty around their cash flow.

More information is available on the Better Business Tax section of the IRD website.

NZBN and e-invoicing

Every business on the Companies Register is given its own NZBN (New Zealand Business Number) which is designed to help reduce time and costs, by making it easier for firms to deal with the government online. This should improve further with the introduction of e-invoicing – a system which will allow a supplier’s online accounting software to exchange an invoice with their client’s online accounting software. It’s hoped that this will improve productivity and payment times, as it reduces the risk of e-mailed invoices being overlooked or mislaid.

It is estimated that with just a 15% uptake of e-invoicing, NZ businesses and government 32

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agencies could save up to $500 million per year.

Employment Agreement Builder

This can be found on the government’s business website (www.business.govt.nz) and is designed to make it easier for small businesses to create legal employment

responsibilities of the group can be shaped, and is seeking to give it a higher profile “with more oomph”.

He is also keen to work with the Minister for Trade and Export Growth to increase the number of SMEs which export, and will be raising awareness of how Free Trade Agreements can be of assistance.

A full transcription of Hon. Stuart Nash’s speech can be found on beehive.govt.nz.

It is estimated that with just a 15% uptake of e-invoicing, NZ businesses and government agencies could save up to $500 million per year.

Minimum wage rises

agreements. In the last 12 months, it was used to create an estimated 200,000 agreements and received a user rating score of more than 90%.

Starting-out and training minimum wages are 80% of the adult minimum wage. A summary of who can earn the different rates can be found at business.govt. nz/hiring-and-managing/hiring-people/ minimum-pay-rules/ MBIE further suggests that this could be a suitable time to update employment agreements, especially if the existing ones are a few years old.

Small Business Development Group

This initiative was originally established in 2002, but was placed on hold for much of 2017. Mr Nash is investigating how the

In accordance with Government’s legal obligation to review minimum wage rates annually, from 1st April 2018, the new minimum rates are: Adult: $16.50 Starting out: $13.20 (up from $12.60) Training: $13.20 (up from $12.60)

GOLD SPONSOR

When you least expect it, expect it The rule of business and investment seems to be that the opposite of what is happening now is the next most likely thing to happen at some point very soon – and when you least expect it.

Managing a profitable business with positive cash flow seems like the ideal way to go, however, especially when your business is in a high growth phase or at a mature stage in its life cycle, there is a need to prepare for unexpected occurrences, market shocks or unfavourable macroeconomic events.

NAI Harcourts is the commercial arm of the Harcourts Group. It is a JV between Harcourts and NAI Global, an international commercial real estate services firm providing systems, processes, knowledge and contacts. Fundamentally our role is to give advice, solve problems and achieve our clients’ goals. As many commercial property owners are also homeowners and business owners, there is that close connection with the single individual, couple or company where they see us as trustworthy, knowledgeable and able to assist them.

Our North Shore office has grown into a multi-faceted commercial real estate business covering sales, leasing commercial property management and last year we started our business broking (selling businesses) division. That need for advice and help is the reason we got started, and the quality of that advice and the results we achieve for our clients is at the core of our business.

Most of our clients are private individuals, small-to-medium businesses and family trusts, and our experience with hundreds of clients and thousands of interactions have a familiar ring to them regarding being prepared.

Our broadest advice would be: “have everything in order like you were either going to sell your business, become incapacitated or die soon”. It may sound callous and insensitive, but too often we see our clients fall ill, have a business partner pass away, get divorced or have another reason that the business needs to be sold and things are not in order.

There are many industry professionals available to help with this, but it has to start with your intention to be prepared and organised.

Then you must act.

Up-to-date financial records are a good starting point. You need detailed monthly profit and loss accounts, plus a constant check on the balance sheet, to include debtors and creditors, fixed asset values, stock value (and obsolete stock assessment), intangible asset value (and justification), debt level to profit ratios, etc. If the business suddenly needs to be appraised for market value and sold it is critical that this information is accurate and available.

It’s best when your accountants and business brokers work together.

This is not simply a matter of looking at a multiple of EBITDA (also less owner’s drawings). Time needs to be taken to understand the industry, clients, contracts (suppliers and customers), inventory and the overall market climate and trends to determine its true market value and market appeal.

Another area where being prepared is vital is commercial property leases. The Property Law Act and legal lease documents have strict control over commercial property occupation and the rights of both tenants and landlords. If leases are not in order or not signed or renewals and rent reviews not documented, these rights can disappear. Commercial property lawyers and commercial real estate firms provide expertise in this area and are very familiar with deeds of leases, deeds of assignments, sub-leases and the like.

Many recent instances show that ill health, sudden death, divorce and business splits meant that a property had to be sold and the owners have discovered leases were not signed and executed correctly, exposing them to vacant premises, loss of income or missed renewals and rent reviews.

In reverse, from a business owner’s or tenant’s point of view, leases need to be executed correctly to offer the business security of tenure on terms that reflect the market.

Hopefully you have all had a good summer holiday and your business and investments are tracking well and in a growth phase, but it’s time to reflect, to organise and seek out willing professionals to assist you with being prepared for the unexpected.

“Have everything in order like you were either going to sell your business, become incapacitated or die soon.”

Rob Meister NAI Harcourts (09) 486 9260 021 900 801 rob.meister@naiharcourts.co.nz MARCH 2 0 1 8 F YI BUSINE SS N H . O RG. N Z

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PROPERTY MATTERS

Seismic ratings, earthquake-prone buildings, and the potential problems of being under-insured

Until quite recently, commercial property insurance premiums had arguably been fairly stable and predictable for a number of years.

However, accumulated losses experienced by the market from natural disasters such as earthquakes, major weather events, flooding and fire, etc have resulted in rising premiums.

On top of this, recent increases in government levies for both the Fire Service and EQC which are collected as part of the overall insurance premium charged by the insurer means property owners may now face a “doublewhammy” increase in premiums when they look at their annual insurance renewal.

Understanding the changing insurance market along with the sort of cover a commercial property insurance policy provides is essential. The increased cost of insurance premiums, along with the fact that construction and rebuild costs are constantly escalating, could lead to property owners underinsuring their building to save on the premium – and this can put both the building owner’s and tenant’s interests in jeopardy. Building owners should check with their property managers that regular replacement value assessments are being carried out, so that they’re adequately covered and their asset and investment is preserved.

In close connection with this, on 1st July 2017, the Building (Earthquake Prone Buildings) Amendment Act 2016 (the Amendment Act) took effect in order to: Ensure the way our buildings are managed for future earthquakes is consistent across the country, and provide more information

for people using buildings, such as notices on earthquake-prone buildings and a public register.

It categorised New Zealand into three seismic risk areas (low, medium and high) and set time frames for recognising and taking action to strengthen or remove earthquakeprone buildings. Auckland is in a low risk area with a remedial time frame of up to 35 years.

A building is deemed to be earthquakeprone if it will have its ultimate capacity exceeded in a moderate earthquake, and if it were to collapse, would do so in a way that is likely to cause injury or death to persons in or near the building or on any other property, or damage to any other property.

Local authorities determine whether a building is earthquake-prone and, if so, an EPB notice is issued. The property owner then has specific responsibilities which are outlined on the business.govt.nz website – “Owners of potentially earthquake-prone buildings” section.

It’s really important that property owners familiarise themselves with this legislation, and consider its potential repercussions. For example: buildings that are ranked low on their earthquake performance rankings may be harder to insure and occupy. A strong relationship with a property manager and insurance broker could prove invaluable, as they should be able to offer informed, practical advice. It may also be worth noting that there are engineering firms which specialise in seismic analysis (should this prove necessary).

Help Us To Help You Part of Business North Harbour’s role is to keep our property owner members informed of important policy changes or legislative updates which may relate to your investments, and to advocate on your behalf.

We can’t do that if we don’t have your correct contact details!

If you’ve recently updated your e-mail address – or if you haven’t heard from us for a while – please get in touch via admin@businessnh.org.nz

Note about privacy & confidentiality: we are seeking to update our own database. Business North Harbour will not share your contact information with any third parties.

Your details will not be added to the online Members’ Business Directory and will therefore not be publicly accessible.

In collating the information for this article, the assistance of Rob Meister at NAI Harcourts is gratefully acknowledged.

MARCH 2 0 1 8 F YI BUSINE SS N H . O RG. N Z

35

FOR ME, IT’S BEEN TRULY

TRANSFORMATIONAL.

I KNEW I DIDN’T HAVE ALL THE ANSWERS AROUND LEADERSHIP, BUT NOW I CAN SEE

THE POSITIVE IMPACT OF MY STUDIES.

JILL CLARK

Master of Advanced Leadership Practice student

Mastering the Art of Leadership Local Brown’s Bay resident Jill Clark is no stranger to education. She’s worked in the sector for 35 years and currently manages one of the Blind and Low Vision Education Network’s resource centres, helping to support young learners with visual impairment.

Jill was keen to broaden her skillset to open up future opportunities. She was after something transformational, not just a three-day course that would be quickly forgotten.

She says the Master of Advanced Leadership Practice offers a very supportive environment, including a coach for the first year, and a cohort that freely shares insights and ideas. The programme also includes international guest lecturers who are at the top of their fields.

Apply now:

massey.ac.nz/malp

ADVERTORIAL

Investing in Commercial Property The Maat Way Commercial property investors purchase properties for a variety of personal reasons.

Whatever the reason for commercial property investment the process of identifying the property, analysing the variety of information available and following through with the purchase are fundamental to making an effective decision.

Maat adheres to this process as specialists in purchasing commercial properties for investors, through forming a company in which investors purchase shares. This form of ownership allows investors to have control of the ownership and management of the company, with the guidance of Maat. In this way, investors can be part of an investment which is of significantly greater value than they could manage on their own and they have a passive investment, whereby the property management; lease management; and financial reporting is completed for them.

The status of the property, the quality of the tenants and the forecast financial return for the investors are key aspects to be analysed when purchasing commercial property, as part of a full due diligence process. The detail of that analysis should include an examination of every aspect of the purchase, including legal assistance to review the title(s) for the property; the terms of the leases; and any other property

related reports which are either available from the vendor or can be obtained through other sources.

In addition, the financial forecasting needs to be thorough and robust enough to include the effects of future rent reviews and rent renewals; the real cost of obtaining a new tenant; the future maintenance requirements; the long - term capital expenditure requirements; the growth of operating costs; and the forecasting of the future financing costs.

Maatâ&#x20AC;&#x2122;s Managed Property Portfolio

Maat is currently offering another opportunity to investors, being the 13th property purchased for Equity Investment.

This property is located at 306 Cameron Road, Tauranga and will be partly funded by $22.85m of equity subscribed for by investors. A Product Disclosure Statement is available from the Maat office for prospective investors, with capital raising to be completed by 29 March. Settlement is scheduled for 16 April.

The three directors of Maat are qualified accountants, with two managing their own practices in Taranaki.

*projected pre-tax return for a three year period

Neil Tuffin Accountant, Authorised Financial Adviser Director Maat Group (021) 481 441

To register interest in investing in commercial property, or to find out more about Maatâ&#x20AC;&#x2122;s commercial property management services, contact Maat on (09) 414 6078 or email info@maat.co.nz. Maat Offices are located at B4/17 Corinthian Drive, Albany.

MARCH 2 0 1 8 F YI BUSINE SS N H . O RG. N Z

37

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Call Lesley Cuttle today for more information on Mobile: 021 815 560 or Email: lesleycu@solutiondynamics.com. Visit 18-24 Canaveral Drive, Albany, Auckland 0632 Website: www.solutiondynamics.com 38

MAR CH 2 0 1 8 F YI B US I N ES S NH. ORG. NZ

Catering, Coffee + Events In 2016 Trio was conceived primarily as a corporate focused café in the heart of Albany. Due to its popularity, Trio’s catering and events business has since grown at a rapid pace! The driving force behind Trio’s fast growing success is Alisha Tomlinson. Alisha relocated from Matamata up to Auckland to pursue her love and passion for food and hospitality, and is now proving to be formidable force within the industry.

Trio quickly developed into a “café on wheels”, catering to the wider area.

You will now see the Trio Express mobile coffee van out and about supplying its award-winning Fixation coffee and delicious food all over Auckland and surrounding areas!

Whether it be delivering a morning tea to your team, or planning a special event, Trio Events has a dedicated and experienced team who have the knowledge and passion to organise your event from start to finish, providing high quality service, fresh and innovative food, all presented in a first class manner. From corporate events, private functions, baby showers, kids’ birthday parties, weddings, home dinners, tradeshows, sporting events and many more, Trio’s well trained, professional and friendly staff will deliver excellence.

Trio can create specialised and individual menus to suit you and your event, hire staff and glassware, provide a mobile coffee or fresh fruit juice van, and even a complete bar service.

Alisha Tomlinson | Managing Director 027 480 6554 info@trioevents.co.nz

Get in touch with a member of the Trio Team today to discuss your catering and events needs. Trio find the best way to suit your event, budget and requirements!

Mandy Lawrenson | Events Manager 021 087 39890 events@trioevents.co.nz

Contact Alisha: 0274 806 554 | info@trioevents.co.nz