The Profit February 2018

FEBRUARY - APRIL 2018

THE

INSPIRING BUSINESS IN HAWKE'S BAY

STRONG BOND TO BUSINESS VENTURE

NASH ROLLS UP SLEEVES FOR SMALL BIZ

THE CUBA STREET OF HB

SILICON VALLEY MEETS AHURIRI

NEW ERA AT PORT

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CONTENTS

FEBRUARY - APRIL 2018

THE

INSPIRING BUSINESS IN HAWKE'S BAY

PRO FEATURES 8-9 10-11 12-14 16-17 20-23 24-25 26-27

Stuart Nash rolls up his sleeves Hello Cup is much welcomed Technology in the Bay Beer from the gods Hastings' Cuba Street Greater support for start ups New lease of life for engineering firm

STRONG BOND TO BUSINESS VENTURE

NASH ROLLS UP SLEEVES FOR SMALL BIZ

THE CUBA STREET OF HB

SILICON VALLEY MEETS AHURIRI

NEW ERA AT PORT

PRO EXPERTS 33 34 35 36 37 38 39 40

Pro Finance by Tobias Taylor Pro RMA by Cam Drury Pro IT by Simon Fletcher Pro Education by EIT Pro HR by Kimberly McKay Pro Legal by Edward Bostock Pro Property by Paul Harvey Pro Business by Jess Radich 8-9

16-17

20-23

24-25

PRO REGULARS 4-5 6-7

Pro HB – What’s happening in the Bay Pro Q & A Brent Linn

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FEBRUARY - APRIL 2018

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EDITORIAL Open for Ideas Seven years ago we printed the first issue of The Profit. The magazine was created because we could see a gap for positive local business content that would profile local business success stories.

Thirty-two issues later the aim hasn’t change but a lot has changed within the media scene.

People are now getting their news fix from a wide range of media – both traditional, such as HB Today locally, as well as social media channels such as Facebook and Twitter.

What else can we do to improve your experience with The Profit? What type of content would you like to see, either in print or online? Would you like to see additional expert columnists such as social media, health and safety and business coaching?

Distribution is another focus area. We are grateful for the awesome support of the likes of New World supermarkets and HB Airport but if you know of other places it could be available please get in touch.

Another growth area is sponsored content.

Over the last couple of years, we have written a lot of paid business profile content.

These have been incredibly successful for the businesses involved. They’ve had great positive coverage into the business We at The Profit want to up our game and community and beyond and have been able move into the next three to five years at the to use the content for their own purposes forefront of storytelling, both in print and in such as website content and for distribution to other media. the digital world.

We plan to launch a new website for The 2018 is set to be an exciting year. We hope Profit in 2018. This will be a major resource that in some way you can contribute to and library of positive business profiles – making The Profit more AWESOME. Content has become a lot richer; by this I mean that a written story now extends beyond the paper it is published on.

The story might also be turned into a digital story (video content), which is then posted on websites, blogs and social media.

both businesses and business leaders alike. It will also provide access to expert advice from our business experts who cover all elements of doing business – legal, HR, finance, IT, property, planning/RMA and investing.

Contact me on 021 2886 772 or damon@theprofit.co.nz

In this latest issue we take a look at the revitalised 200 block in Heretaunga Street Hastings. It wasn’t that long ago that it was We are also keen to look at hosting some pretty derelict and a place where synthetic key events, some of which we would love to drug users bought their daily fix. It’s now partner with local businesses. These could an eclectic bunch of retail and hospitality be guest speaker breakfasts or after 5 pm businesses. We also catch up with Minister drinks, or specific seminars on business- for Small Business Hon. Stuart Nash. We have put a range of questions to him that related topics.

We will also be adding video content to our hopefully will shed some light on how armoury. This will be a further extension to government can support SMEs. the business features we publish.

Editor Damon Harvey damon@theprofit.co.nz

EDITOR/PUBLISHER: Damon Harvey 06 878 3196, 021 2886 772, damon@theprofit.co.nz, Twitter – @profithb

THE PROFIT is independently owned by Attn! Marketing PR and is published four times a year. Copyright ©2012: ATTN! Marketing PR

CONTRIBUTORS: Simon Fletcher, Jess Radich, Susie Clifford, Paul Harvey, Emma Doran, Kimberly McKay, Edward Bostock, Roger Wiffin, Catherine Wedd, Simon Hendery and Anna Lorck.

All material appearing in THE PROFIT is copyright and cannot be reproduced without prior

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care and diligence has been taken to ensure accuracy, no responsibility will be taken by the

PHOTOGRAPHY: Julia Jameson, Damon Harvey

publishers for inaccurate information or for any consequences of reliance on this information.

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ATTN! Marketing PR p 06 878 3196 | f 06 878 3194 | www.attn.co.nz PO Box 8809, Havelock North 4157 Vol 32 • February – April 2018 ISSN 2253-5292

SUBSCRIBE TODAY AND BE THE FIRST TO READ ABOUT YOUR REGION! 878 3196 2

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FEBRUARY – APRIL 2018

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Feature HB

Region to host major tourism conference Hawke’s Bay Tourism in conjunction with Napier City Council has landed a massive coup winning the Tourism Export Council Conference in August 2018.

Around 250 delegates will visit Hawke’s Bay for their annual conference from August 8-9.

It is expected this will equate to at least 750 nights spent in the region.

Delegates include the key international travel buyers from tourism businesses around New Zealand. The conference will be held at the Napier Conference Centre and Century Theatre at the MTG.

The tourism industry of Hawke’s Bay has stepped up to ensure this conference is a true showcase for the region. An extensive familiarisation programme of the region’s tourism experiences is being provided before and after the conference to ensure all delegates experience what we have first- hand.

Annie Dundas GM Hawke’s Bay Tourism says, “This conference is one of the most important on the national calendar and it’s our chance to show the rest of the country the incredible tourism product we have on 2005 and there has been huge investment in offer. We last hosted this conference in tourism facilities and experiences since then” .

Rocket Lab awards tertiary scholarship

Arianna says the scholarship will give her the freedom to focus solely on her studies and pursue her passion for engineering.

“The scholarship will play a huge role in forging the kind of future I want for myself Rocket Lab has not only launched a rocket and hopefully help others in our area to do but has announced the recipient of its the same,” she said. inaugural tertiary scholarship, with a Wairoa Peter Beck, Founder and CEO of Rocket College student taking out the award.

Lab, says supporting the growth of science, Year 13 student Arianna Ormond engineering and technology careers in New demonstrated her passion for engineering Zealand is crucial to continuing a culture of throughout a rigorous application process, The Rocket Lab Scholarship was founded innovation. before being awarded the scholarship to to encourage students from Mahia and the study a Bachelor of Engineering at the greater Wairoa region to pursue university “Bright, dedicated and passionate students like Arianna are going to be the drivers University of Canterbury. studies in science, technology, mathematics behind tomorrow’s innovation. We’re proud Arianna plans to specialise in mechatronics, and engineering. The scholarship covers up to support and mentor students while they an interdisciplinary engineering field that to $20,000 of tertiary education fees for develop the skills for this future,” he said. includes aspects of mechanical, computer up to four years of study, and also includes hands-on mentoring from Rocket Lab. and electrical engineering.

In 2012, the Regional Council formed a stakeholder group to look at the best way to manage the waterways of the Tutaekuri, Ahuriri, Ngaruroro and Karamū catchments.

The project quickly became known as TANK. In 2018, the TANK Plan will give clear direction to consent holders and other water users. It’s an opportunity to balance water use and environmental protection. The rivers and aquifer have to come first, but water users should also be able to rely on safe, secure water when they need it.

Who gets the water? Learn more: hbrc.govt.nz search: #tank

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HB

Attracting more visitors to Havelock North focus of new president Attracting more people to visit, shop and enjoy Havelock North, will be a key focus for the village’s new Business Association President Jane Mackersey.

Jane is a local business owner with a background in tourism and hospitality.

Jane says the association will be doing more to promote Havelock North beyond the region - encouraging more people to visit and experience everything the Village has to offer, which benefits all members.

“2017 was about consolidation and evaluating what we wanted to focus on and achieve. Shopping local and supporting our strong membership base has been very important to us.

“Now we want to do more to showcase our Village as a fabulous place to stay and play, as well as live and work, on the back of great events like Taste the

+ Profit Village and our Love the Village Ultimate Weekend.”

Jane says she brings a lead by example and roll up your sleeves approach to the presidency.

“I am an ideas person (not all brilliant and some ahead of their time), I enjoy problem solving and helping people. I want to create better, greener environments for people to enjoy and maintain the special character of the village”.

Havelock North Business Association committee for 2018 – president Jane Mackersey (Ribbonwood Cottages) vice president Milton Naylor (Milton Andrews Hair Design), secretary Rachel Sedger (Highfield Risk Consulting ), treasurer Dale Cooley (Papillon), members Will Atkin (Fortify Clothing), Jarnail Singh (The Milk Bar), Dale Rimene (Pure Catering), Jeni Gilbert Cox (Harvest Lodge), Catherine Wedd (Attn! marketing pr), Liv Reynolds (Mamacita, Hugo Chang and Wright & Co), Shaun Driscoll (Havelock North Motorlodge and Wayne Bradshaw (Te Mata Limes).

Long summer days HB harvest season A new Mayor for Hastings Rocket Lab blasts off!

Sitting on the fence The controversial Craggy Range Track – Good for tourism & recreation but poor approach

Loss HB fishing industry McLean Park – no cricket!

Nick Story – a true gentleman

Port appoints new director Napier Port has appointed Diana Puketapu as a non-executive director.

Diana brings a broad background in commercial, iwi and sports governance to the role. She currently sits on the board of the Tāmaki Redevelopment Company and Manawanui in Charge.

Originally from Napier, Diane is also a director of Ngāti Porou Holding Company, the iwi’s asset holding and investment entity, a board member for the New Zealand Olympic Committee and NZ Cricket, in addition to being an independent consultant on the Audit

NZ Digital

and Financial Risk Committee for specialist insurer and reinsurer CBL Corporation.

A chartered accountant, she was formerly the chief financial officer of Ngāti Whātua Õrākei Corporate.

Diana is based in Auckland and joins Napier Port at time of rapid growth and development.

“I’m passionate about improving the lives of New Zealanders, iwi and the local communities in which we live. Napier Port plays a critical role in connecting Central New Zealand to the world, and I’m looking forward to being part of its growth and development.”

Diana replaces Jon Nicols, who retired by rotation after serving ten years on the board.

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FEBRUARY - APRIL 2018

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PRO Q&A

New pastures for Brent Linnn Former Hawke’s Bay A & P Society general manager looks back at his time at the helm Brent Linn has stepped down as general manager of Hawke’s Bay A & P Society, one of the region’s oldest and most traditional organisations.

Brent was in the role for seven years and during that time has seen the society add additional events such as the Edible Garden Show, while at the same time ensuring the long-term sustainability of the annual Hawke’s Bay Show. In 2017, the showgrounds hosted 101 events.

He also established a master plan for the venue, which he hopes will be fully implemented.

The Profit caught up with Brent and asked him about some of his highlights and what the future holds for both the A & P Society and himself.

What are some of the highlights of your tenure?

Growing the society events to become a true celebration of the incredible diversity, resourcefulness and success of our primary sector industry and people.

Reconnecting the showgrounds with the wider Hawke’s Bay community, a symbolic opening of the gates to its beneficial owners and a general, more outwardlooking organisation. Last year we hosted 260,000 people at the showgrounds at 101 events.

Trying to develop the society events and the showgrounds venue with limited financial resources.

What does the future organisation look like?

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Establishing a master plan for the The society is a not-for-profit, registered charitable, membership-based development of the showgrounds; organisation whose charter directs it to delivering the $1 million Stage 1 showcase and champion the primary infrastructure phase in 2017 and industry’s contribution. It has about 800 developing the concept plans for the $3.5 members ranging from farming families million multi-use building to support the through to Hawke’s Bay businesses to Hawke’s Bay Farmers’ Market, Horse of urban families. Membership is open the Year and other users. to anyone and currently costs $65 What have been the challenges? per annum.

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It owns the showgrounds, a common misconception being that they are owned by the Hastings District Council, so unfair comparisons are sometimes made with other venues that are funded by the ratepayer.

The society delivers four events and after 154 years, the spring show is naturally the most recognised. That said, the National

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Photo courtesy of HB Today

PRO Q&A

Horticultural Field Days, Napier Port Primary Sector Awards and the Hawke’s Bay A & P Bayleys Wine Awards are now more important in that direct engagement with the primary industries.

What are your future plans?

I have a couple of personal projects that I am working through in the short term, most notably, vintage 2018 at my vineyard. However, 2018 is all about getting that much talked-about work–life balance thing sorted so I will be looking towards project-based roles that have a beginning, middle … and end.

What type of roles will you be looking at?

Supporting my agriculture degree, I have 30 years’ experience in building business capability, infrastructure development and relationship management in and around the primary sectors. I now want to utilise that experience to help businesses that have a development or process they are working through; in simple terms, project management.

“Generally the Hawke’s Bay primary sector industries are on a roll and are currently enjoying good product prices and good conditions climatically. We can look at investor confidence in certain sectors of the Hawke’s Bay primary sector – for example, Pipfruit – as providing an insight into heightened expectations around the future of those sectors.”

– Brent Linn What does the future of the primary sector look like in Hawke’s Bay? Generally, the Hawke’s Bay primary sector industries are on a roll and are currently enjoying good product prices and good conditions climatically. We can look at investor confidence in certain sectors of the Hawke’s Bay primary sector – for example, Pipfruit – as providing an insight

into heightened expectations around the future of those sectors.

In wider terms, what do you see as the challenges facing the primary sector in Hawke’s Bay? OK, you could call them challenges but those who master them will turn them into opportunities. Here are a couple off the top of my head: For the exponentially expanding horticulture sector, it would be having the right people at the right time in the right roles. So, the industry or operators will need to consider how their recruitment, training and reward structures attract and retain staff, from the orchard to the board room.

Another will be that whole collision of opinion surrounding the environment and the production of food that will see those who take an entrenched position, on either side, being left behind. We will see the increasing importance of production accreditation schemes, traceability and the consumers’ connection to the place of origin.

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Nash Rolls Sleeves Up for SME's There’s a new party running the country, Labour, and Napier MP Stuart Nash has picked up one of the most coveted and important portfolios – in fact he’s got two – Minister for Small Business and Minister of Police. We thought it was important to get Stuart’s views on how the government can support SMEs and what opportunities he sees exist for the Hawke’s Bay economy.

Stuart Nash

What’s your business background?

I have a Master’s degrees in law and management and have worked in sales and marketing for large corporates (Carter Holt and Fletchers) and elsewhere in the private sector. I spent seven years importing and trading petrochemical derivatives into New Zealand, Australia and Singapore and also worked in strategic development (writing business cases justifying capital development). So, rather wide and varied.

What do you think are the most common challenges for SMEs? There are a number, and it often depends upon where we are in the economic cycle, what sector the company is in and how mature a firm is; however, the three that I have heard constantly are: 1. Provisional tax – people tell me they hate the system!

2. Access to affordable capital in order to grow and expand.

3. Finding good employees. The new government is looking at innovative ways to address all three issues.

What role does government have in supporting SMEs? First and foremost, we can change the law and alter the regulatory settings to make it easier to do business. For example, this year sees the introduction of the Accounting 8

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Income Method (AIM) for paying tax for the SME sector. This is pretty much like PAYE for small-to-medium businesses (and I would advise all SMEs to ask their accountants about this). AIM should provide more certainty to SMEs around tax payments and make planning ahead much easier.

The www.business.govt.nz website also provides a treasure trove of advice to small businesses, from constructing an employment agreement to writing a business plan to paying tax and everything in-between. It really is a fantastic resource.

So, the government's role can be anything from providing advice and support through to, for example, proactively helping companies develop new markets overseas.

What initiatives to support SMEs will you be looking to roll out over the next 12 months?

One that I can talk about is reconstituting the old Small Business Development Group into a body with a much stronger mandate to advise government, advocate on behalf of the sector and provide solutions to the issues that are important. I would like this body to inform the research that needs to be done in order to support change and also take a level of responsibility for information dissemination.

Then there is the AIM, which should make paying tax easier. I will absolutely be

pushing the NZ Business Number, which is an amazing initiative whose value isn't well understood. This needs to change.

There are a few other initiatives that we are planning but just can't discuss at this point in time.

How do you think Labour and your success will be judged by SMEs? Always a tricky one. For me, it has to be about ease of doing business. While everyone acknowledges there has to be a certain level of compliance, if we can remove unnecessary red tape and replace this with initiatives that actually make doing business easier, then we all win. Of course, there will always be businesses that fly and those that fail, but if we can help get more off the ground and minimise the number that crash, then we all do well.

What Hawke’s Bay business people and businesses do you admire?

There are the obvious high-profile ones like, for example, Rod Drury (Xero), Jenny Yule (Porse), Hamish White (NOW), Rob Darroch (FPG), Kate Radburnd (Pask Winery), Hamish Whyte (Furnware), Claire Vogtherr (Holly Bacon), John Bostock, Kirsten Wise, Kevin Atkinson, the Tremain Family and the Beatons. There are, however, many small, medium and large companies that do fantastic work in the Bay. For example, we have just had some work done around our section and the quality of

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work from the excavation company through the team that put in the retaining walls and the firm that laid the concrete is absolutely legendary! I admire and respect anyone and everyone who is out there making it happen.

Who has been a mentor in your career?

I haven't really had what I would call a mentor. There are a few people whom I have regularly sought advice from at various times over the years or who have been role models in terms of how they conduct themselves or the quality of their leadership, but no one stands out over anyone else.

How do you think the Hawke’s Bay economy is performing?

The local economy is doing extremely well.

There are a few retailers and tradesmen who I talk to regularly in order to keep a track of how things are going. While it is completely unscientific, all report that spending is up, there is a lot of work on and there is plenty of people visiting and living here who have cash to spend. I remember talking to a group of young Napier entrepreneurs about three years ago, and they said that the major barrier to doing business in the Bay was the cost of airfares between Napier and Auckland. With Jetstar's arrival, this has changed. We should not underestimate the value that Jetstar has brought to the region.

What general improvements could be made to keep the local economy strong?

More people moving here with money and ideas and businesses. We need to make

Hawke’s Bay the 'easiest place to start and run a business from in the country'.

Also, there aren't many here who understand the size and potential of the Maori economy.

Once all the settlements are concluded, I think the level of economic activity will increase. Already Ngati Kahungunu, under Ngahiwi Tomoana's operational leadership, is a significant investor in the Hawke's Bay economy, with the vision, power, resources, governance and operational skills – and mandate – to really make a significant difference.

While I can't comment about the work of the Hastings District Council, I do think the Napier City Council has done some fantastic work over the last little while to really spruce the city up in an effort to once again turn it into a premium destination to visit, live and do business. Still plenty more to do in terms of reducing compliance and increasing advocacy and proactive support, but we will get there.

What investment model do you support for adding new infrastructure to the Napier Port?

I have yet to see the business case for any of the options, but I am keen to see the Port retained in local ownership (and there are a couple of ways this can happen while still meeting the requirements of the shareholders – you and me).

Do you see any water storage projects getting off the ground in Hawke’s Bay? If so, where?

Our economy is closely tied to three variables we have no control over: the

weather, commodity prices and exchange rates. So in order to mitigate economic risk, we need to exercise control over that which we can control. Water is one variable that we can have a level of control over, thus mitigating the risk of damage due to adverse climatic events. I am, therefore, a fan of water storage. After listening to all sides, I came to the conclusion that the Ruataniwha Water Storage Scheme (RWSS) wasn't the optimal model for the region. I am, however, a believer of the value of onsite storage and other innovative ways of capturing water that doesn't cost the region close to $1 billion to implement. I await with interest the Hawke’s Bay Regional Council’s next step in this area.

How closely will you work with the Minister of Regional Economic Development?

Very closely. We are good friends as well as cabinet colleagues. I will advocate hard for any worthwhile project that I believe will add value to the region. There are already three that I have discussed with him that we will hopefully be able to progress. While I won't win every battle, I will certainly push our case extremely hard.

In the briefing from the Ministry (MBIE), they talk about road shows, when is this likely for Hawke’s Bay? It’s likely to be Thursday 7th June. Further details are to come closer to the time.

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New Hawke’s Bay business a game changer for woman

New Hawke’s Bay business a game changer for women

WRITER: DAMON HARVEY

Robyn McLean and Mary Bond

Hawke’s Bay woman Robyn McLean is having fun with her new business venture that is a game changer in women’s health.

Robyn and long-time friend Mary Bond, based in Wellington, have launched the Hello Cup Company producing a range of menstrual cups – something that has released them from their bugbear of buying single-use tampons.

ago when they both had their first child around the same time. The initial idea was to sell children’s clothing, but around the same time there seemed to be an explosion of children’s clothing retailers and they decided really only a couple of options in tampons and pads. Not only do they create a hideous it probably wasn’t the best idea.

“We kept talking about joining forces and amount of waste, but they are unaffordable starting a business over the years but it had for so many women.”

to be the right business. We’ve finally come up with something that suits us both. Being a nurse, Mary really cares about people’s Hello Cups not only save money but welfare and I had a hunch this would be also have huge benefits when it comes to something that we could do together and the environment. really make a difference to the lives of “As mothers we knew there had to be a better women, not just in New Zealand but around option for our daughters than expensive and the world.” wasteful tampons and pads. The Hello Cup Robyn had been interested in using menstrual is that option.” cups for a while but it wasn’t until she was in A single cup will last at least five years and need that she finally gave one a try. holds three times the amount of a tampon. “I went into a pharmacy in Havelock North While most cups on the market are made and enquired about menstrual cups. The from silicone, Hello Cups are made from pharmacist was a user of one and was really medical-grade plastic, which means they are encouraging and enthusiastic so I bought fully recyclable at the end of their lives. one and it was instantly life-changing.

Robyn and Mary, a registered nurse, came up “It seems crazy that women have been led with their first business idea about 15 years to believe for so many years that there is 10

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After a bit more research Robyn decided she wanted to buy a New Zealand-made cup.

When she found there weren’t any, she went to Mary with her latest business idea and the rest, as they say, is history. Period!

The product development phase included trying to source high-quality medicalgrade plastic to make the cups, quality and comfortable design of the cups, a manufacturer and then a great brand name.

The medical-grade TPE (a type of plastic) is purchased from Germany and they are fortunate to have found a manufacturer in Napier who is able to produce the cups to their exacting standards.

“You don’t want anything dodgy going up there, so there was no way we were going to cut corners. Our design is quite different

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to others on the market. We have specifically softer and a good option for first-time cup designed it to be as comfortable as possible users. Hello Cups currently retail for $49 for a single and $69 for a box containing with as little ridges,” says Mary.

Robyn says having the manufacturing team both sizes.

Robyn, a former journalist and public relations practitioner, will be putting her communications and marketing skills to good use. She will take care of the marketing, including social media and responding to The inspiration for the brand name ‘hello.’ non-medical enquiries. was based on a desire to have a positive perspective to something that is a dreaded Mary is responsible for distribution and monthly hassle, says Robyn. “It also plays putting her medical training to use in on the full stop being called a ‘period’ in responding to medical-related enquiries.

America, which if we expand into that “We get some incredibly personal questions market, will make more sense to them from women and so it’s amazing for them probably than Kiwis! to be able to talk to a registered nurse who in Hawke’s Bay has been a huge bonus. “It’s so awesome to have the Hello Cups made in Napier. It proves that Hawke’s Bay has everything you need.”

“We wanted to have some fun and get woman to embrace their period. We’ve done this with the brand name as well as some of the marketing taglines such as ‘bloody brilliant’ and ‘no strings attached’.”

Periods are not a typical conversation topic but for Robyn and Mary, they’re talking about the Hello Cup daily together and to happy converts throughout New Zealand.

They’ve both quickly become experts as well as period counsellors!

Robyn sees a massive future in the Hello Cup. It’s quickly become a passion and they’re already looking at new products. In 2018 a sports Hello Cup and a Teen Cup will be added to their product range.

can answer their questions from an informed medical perspective.”

To get the word out about the Hello Cup, a marketing plan includes reliving their youth and heading to university orientation weeks across the country.

used the word vagina on their website or something less formal.

“Being a nurse, Mary was keen to stick to the name given in medical texts. I preferred vjayjay and fanny.”

To overcome the issue, their website features a ‘vagina switcheroo’ tool, whereby visitors are able to type their preferred name into a box that will then change the text throughout the site to the user’s chosen name.

They see huge opportunities with the secondary school and tertiary markets. The cups last at least five years, so that means a student can have one for their secondary schooling and then get another that will last for their entire tertiary study.

“We love what women come up with,” says Mary. Twinkle cave, magic box and foo foo are a few examples.

“We hear dreadful stories of girls not going to school when they have their periods because they can’t afford it. A single cup will last them their entire high school years.”

“We think menstrual cups will be the norm for the next generation and we are planning on taking the Hello Cup to women not just in New Zealand but around the world.”

The Sports Cup will be firmer, as fit females The only speed bump Mary and Robyn often have stronger pelvic floor muscles, have hit so far was agreeing on whether they while the Teen Cup will be smaller and

With more than 7 billion tampons and pads going into the world’s landfills each year, menstrual cups have a huge future.

The Hello Cup can www.thehellocup.com

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Blue Chip Tenants with Add-Value & Upside!

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Floor area: 2,480m2 Land area: 1,429m2 Multi-tenanted 80% NBS rating Mixed term tenancies Passing net rental: $100,000 p.a.

Total potential net rental: circa $175,900 p.a.

Arguably Waipukurau’s most prominent building has come to market and is available for sale for the first time in seventeen years.

The building is located on State Highway 2, the main arterial route running North and South of Waipukurau on Ruataniwha Street.

Sporting a corner profile the building has a frontage spanning some 46 meters and a seismic rating of 80% NBS, which aside from the tenant covenant, is what makes this building so attractive.

With the building leased to both national and government tenants, it offers great security. Upstairs has been refurbished to accommodate national tenant Crowe Horwath and Colliers International, with government tenant Heartland Services (department of the Ministry of Social Development) on ground floor, along with the remaining 690sqm of vacancy.

The building offers a fantastic add-value opportunity with great upside.

Contact: Jack Elliot | Commercial 021 876 765 3/15 Hardinge Road, Ahuriri, Napier | P. 06 835 6009 | brownwynkay.com FEBRUARY - APRIL 2018

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High demand for hi-tech talent WRITER: SIMON HENDERY

Hawke’s Bay’s technology sector is on a roll but are there enough skilled staff

“There’s so much competition so you need to be able to offer potential staff members things that are going to attract them. That’s obviously a competitive salary and a great lifestyle, which Hawke’s Bay can offer. They want somewhere that’s a nice space to work.”

“One of them wanted to move back with his children but didn’t think there would be any jobs available, then he went online and was surprised to see that we were advertising a role. He’s a really senior developer whom we’re over the moon to be able to bring back.

For Re-Leased, its “nice space” is the redeveloped Ahuriri site it shares with Xero, NOW and the Tech Collective, a But there are signs that’s beginning to collaborate environment – complete with change. The skyrocketing cost of living on-site Adoro café – that is also home in centres such as Auckland has made to several smaller technology companies.

Hawke’s Bay a more appealing option for software developers and other technology professionals. The establishment of ‘tech hubs’ and factors including improving broadband speeds have also made the region more enticing.

“There’s so much competition so you need to be able to offer potential staff members things that are going to attract them. That’s obviously a competitive salary and a great lifestyle, which Hawke’s Bay can offer. They want somewhere that’s a nice space to work.”

– Re-Leased founder and CEO Tom Wallace.

wanting to work here?

Recruiting the skilled staff needed to grow a business has often been one of the top challenges for both start-ups and established technology companies in the Bay.

And of course, there’s the lifestyle. Who wouldn’t want to live here if the numbers added up?

Among the local technology firms feeling confident about attracting more staff to the Bay is Re-Leased, a locally-founded cloud-based property management software Tom Wallace company that expects to grow its Hawke’s Bay team of 15 staff over the next six In the company’s recent hiring experience, months, as part of a global expansion. being part of a tech hub is one factor that’s “What’s important to tech companies is helped Re-Leased sign up former Hawke’s being able to attract talent,” says Re-Leased Bay people who are delighted to have the founder and CEO Tom Wallace. opportunity to return home, says Tom. 12

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“Hawke’s Bay now really has something to offer – we’ve got tech hubs, we’re got an amazing place to live and a great place to work. Now it’s just a matter of really educating New Zealand about the opportunity.”

If Xero and Kiwibank can do it …

Xero founder and Hawke’s Bay resident Rod Drury says his company expects to continue growing its Hawke’s Bay headcount after opening an office at the tech hub last year.

“Our staff are loving it in there. We’ve had quite a few go and work there for a few days and I think this year we’ll start seeing

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“You’ve got to tell that message not just to the employers but to the employees in Auckland so that they’re demanding it internally: ‘Hey, why can’t we come to Hawke’s Bay?’.”

– Rod Drury

based industrial data monitoring company DataNow. Also based at the Ahuriri tech hub, DataNow is planning to raise capital this year and increase staff numbers from four to fourteen within the next three years.

Rod Drury

some of our Auckland and Wellington staff migrating there. It’s proving you can do high-quality jobs in the provinces, so that’s all working well.”

Rod says many of the good developers Xero hires are in their 20s and more interested in the “urban lifestyle” rather than setting themselves up in places like Hawke’s Bay. But there is also an older staff demographic who are attracted to the region, whether for lifestyle, family or economic reasons.

“We’re finding that a lot of our people who are moving are people we’ve had with us for a long time, so they know how the system works, they know the business, and they have the skills to be productive. And we can support them in their changing lifestyle requirements.”

That leads on to a wider opportunity for Hawke’s Bay, he says: pitching the benefits of living here to corporates who could establish a presence in the region for fifty to a few hundred staff.“ You’ve got to tell that message not just to the employers but to the employees

in Auckland so that they’re demanding it internally: ‘Hey, why can’t we come to Hawke’s Bay?’.”

Rod says the concept had been proven

by Xero and Kiwibank, which opened a 100-person Hastings office in 2015 designed to ensure business continuity if a disaster hit its main facilities in Auckland or Wellington.

“I think we’ve moved from theory to practice. We’re seeing it now with the likes of Kiwibank and Xero – it’s actually really good practice that’s stacked up. We’re always waiting for those examples, but now we’re seeing those so we’re in good shape,” he says.

“Both us and Kiwibank open our doors to show other companies it’s the way. [When we’re talking to government departments] in Wellington or Auckland we talk about our Hawke’s Bay call centre, how it’s working for our team, how we have a good supply of loyal staff, and it gives us good resiliency from Wellington as well.”

A place where talent wants to live

Another Hawke’s Bay technology startup looking for more employees is cloud-

The company was founded by electrical engineer Erik van den Hout and its customers include WineWorks, Ravensdown and Analytical Research Laboratories (ARL).

Erik says this year’s capital raising will enable DataNow to bring new talent into the team, allowing it to continue to develop its product and service.

Business consultant Ben Deller, the former head of marketing at NOW, has been working with DataNow and says while the expanding technology sector is encouraging more skilled people to consider moving to Hawke’s Bay, the talent pool in the region remains small.

“The late, great scientist Sir Paul Callaghan talked about how New Zealand needed to be a place where talent wants to live. You want to offer all the qualities you can to attract the talent you know you’re going to need – in the case of DataNow, 10 more people over the next three years, which we know is going to be a challenge,” Ben says.

He and Erik say being part of the tech hub had provided invaluable opportunities to bounce ideas off like-minded people as they developed the business’s growth strategy.

The location would also be a plus for attracting new staff, they say.

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Erik says this year’s capital raising will enable DataNow to bring new talent into the team, allowing it to continue to develop its product and service.

Business consultant Ben Deller, the former head of marketing at NOW, has been working with DataNow and says while the expanding technology sector is encouraging more skilled people to consider moving to Hawke’s Bay, the talent pool in the region remains small.

“The late, great scientist Sir Paul Callaghan talked about how New Zealand needed to be a place where talent wants to live. You want to offer all the qualities you can to attract the talent you know you’re going to need – in the case of DataNow, 10 more people over the next three years, which we know is going to be a challenge,” Ben says.

He and Erik say being part of the tech hub had provided invaluable opportunities to bounce ideas off likeminded people as they developed the business’s growth strategy. The location would also be a plus for attracting new staff, they say.

Consultant Ben Deller, DataNow operations manager Rebecca Withnall, technician Martin Bischofer, managing director Erik van den Hout and developer Daygen Byford of Databank

Mixing surfing and software development at Haumoana A lifestyle property near Haumoana is the unexpected global headquarters of developer David Frampton’s Majic Jungle Software.

connection that he says meets his working needs.

A game developer since 2003, David moved from Wellington to Hawke’s Bay in 2012 after a search for the perfect place to relocate his home-based business. It needed to be somewhere he could spend time with his young family and indulge his other passion: surfing.

One way he keeps connected is through attending industry conferences.

“The only downside to living in Hawke’s Bay is there aren’t the numbers of people Through Majic Jungle, David built The here who are doing game development.

Blockheads simulation app that has been There were more in Wellington whom I downloaded and played by millions of could network with, so I’m missing that a little,” he says. mobile gamers around the world.

“Because I work from home, I could be based anywhere, so we drove around the country and checked out a bunch of possible spots before deciding to settle here,” he says.

“Surfing definitely influenced things. I had to find somewhere with some decent surf. It’s surpassed all expectations, I’ve found it really good.”

“It’s just as easy to jump on a plane from Hawke’s Bay and get over to San Francisco or wherever for a conference as it was from Wellington.”

As well as maintaining The Blockheads, David is currently ramping up work on a new PC game with a virtual reality component, which he’s given the working title of ‘Ambience’. He hopes to have it out for testing by late this year.

Another major development is brewing at Majic Jungle HQ. After several years of having three young kids at home, David is building an office on the property so he can “get out of the house”.

The location also allows him to indulge another hobby: building and flying At least the commute to work won’t take quadcopters. too long.

David’s broadband link to the rest of the world is a standard ADSL copper line

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New Venture for Insurance Brokers

BUSINESS PROFILE

Work colleagues team up to start local insurance broker firm

Long-time work colleagues Rick Behague and Kerry McIntyre have stepped outside of the safety net of being employed to set up their own local insurance broker business.

"Just like good insurance, we cover each other in strengths and weaknesses. We have over 35 years' combined experience in the industry. But if there is an area that we might need to find out more about, we have the support of the Insurance Advisernet and NZbrokers groups."

Rick and Kerry have worked alongside each other in the insurance industry for 13 years, within large multinational firms and also a As part of a wider network of brokers, Insure Hawke’s Bay has access to insurance local independent broking company.

They always wanted to own a business and products from well-respected insurers be in charge of their own destiny. 2018 and business systems, as well as additional appeared the perfect time to start establishing external expertise.

"It provides us with great buying power for “It’s exciting times for us. In fact, there’s insurance products, as well as the ability to been a wide range of emotions and we’ve design solutions that meet the needs of our definitely stepped outside of our comfort clients. In other words, we’re not going to zones, having been employed by other firms put our client in an off-the-shelf product, it’s going to be more tailored. Though for many years,” says Rick. cost is important, we put the emphasis on Insure Hawke’s Bay will specialise in broking service and advice. This way our clients insurance for the business, residential and can make informed decisions," Kerry adds. rural sectors. Its aim is to step away from the industry norm, modernise what is regarded “It provides us with great buying power as a very traditional sector, as well as up the for insurance products, as well as the game when it comes to client servicing. their business Insure Hawke’s Bay.

ability to design solutions that meet the

"Insurance is often seen as a 'grudge needs of our clients. In other words, purchase' or 'necessary evil', but we want to we’re not going to put our client in change that. We want to put some personality an off-the-shelf product, it’s going and fun into the transaction and not just to be more tailored,” tick the boxes when it comes to regulations.

– Rick Behague We want to be more relevant than that," Rick says.

Insure Hawke’s Bay sees the major difference Kerry adds the duo complement each of using a broker over going direct is that other both in regards to experience and it will source the best cover and when the knowledge. Kerry has a strong interest and unfortunate time arises to make a claim, vast experience insuring specialist heavy that the process is as smooth and stress-free machinery such as earth moving equipment, as possible. excavators and diggers, or as he calls them, "One of the least understood parts of a “big boys’ toys”. broker’s role is the claims process, but to us Meanwhile, Rick has a background in it is the most important. We work for our insuring within the construction sector, clients, not the insurers. It’s our job to get from small trade businesses through to large the most out of the policies should a claim occur," Rick says. construction firms.

As we went to print, Kerry and Rick had only been in business about a month but they’ve been thrilled with the response.

Both men are members of business referral network BNI and that has helped to quickly get the message out but also in utilising the skills of fellow members.

“We are local and I think that’s what gets lost by some of the larger insurance companies.

We have made it a priority that wherever possible we will use local suppliers for our business.

“We are proud Hawke’s Bay residents and that was a key reason why we wanted to have the region’s name as part of our brand,” Kerry says.

Although the business is in its infancy, Kerry and Rick have big plans for growth.

“We might only be two brokers at the moment, but we want to be an employer of choice and we have ambitions to be a sizeable business. We want to attract great staff and know we can offer a fantastic working environment.

“We’ve hit the ground running and the response has been fantastic. Our aim is to lift the standard of client services to a new level. We have a stake in the ground with this being our own business and we want our clients to feel informed, secure and valued.” www.insurehb.co.nz FEBRUARY - APRIL 2018

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Putting Hawke’s Bay Brews on the Map WRITER: SIMON HENDERY

There’s something special about enjoying a beer at the very spot it was made.

The Profit continues its series of stories profiling Hawke’s Bay craft breweries in the hope that one of them might give us some free beer…

Brewing success on their own patch of God’s Own In the heart of wine country on SH50 west of Hastings, Godfrey Quemeneur and Rachel Downes have established GodsOwn Brewery – a rural haven where craft beer enthusiasts can sample product brewed on-site.

The couple bought their 6.5ha property at Maraekakaho in 2010, embarking on a project to establish an environmentally sustainable brewing and hospitality business complete with a hops farm.

Rachel, a kiwi, and Godfrey, who grew up in South Africa, met in England where they discovered they shared a dream of developing some land that “brought people together”.

Godfrey, whose work as a chemical engineer has taken him to several countries, first dabbled in home brew while he and Rachel were living in Nigeria. He and a mate later built a small brewing system he designed in the carport of the couple’s home in Perth.

It was while in Western Australia that the couple observed the concept of breweries establishing themselves as visitor destinations within a wine region, a business idea they pursued when they resettled in New Zealand.

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The search that led them to their Maraekakaho property involved a tour of the country in a 1973 caravan.

“We had a few boxes that we needed to tick. We wanted land because we wanted to be more of a destination [business] and we wanted to grow hops and we wanted to have a lifestyle for ourselves as well – we’d always planned to live on the site,” Rachel explains.

“We also wanted to be on a highway. We needed a good water supply, we needed a liveable house and some flat land. This property just ticked a lot of boxes for us. We knew it as soon as we walked in.”

The GodsOwn brand became a reality after a brewery was installed in a shed on the property in 2014 and the couple opened their cellar door (based out of the same 1973 caravan that brought them to the Bay) the following year.

They were fully licensed and operational

by January last year and say they have been pleasantly surprised with how the business has grown over the past year.

“We had a few boxes that we needed to tick.

We wanted land because we wanted to be more of a destination [business] and we wanted to grow hops and we wanted to have a lifestyle for ourselves as well – we’d always planned to live on the site,” – Rachel Downes.

“A lot of people said to us, you’re too far out of town, it’s not going to work,” Rachel admits, “but we thought, we’ve seen this work before so we were pretty optimistic from the beginning.”

GodsOwn Brewery is not bottling its beers and while it sells kegs to a few pubs – including Havelock North’s Rose & Shamrock – Godfrey says drawing visitors to the site to enjoy a brew and the food menu is the key focus.

“Our plan was to try and keep everything on-site as much as possible, we’re not looking too much at the distribution side,” says Rachel.

“It’s something we’ll look at in the future but at the moment we’re just trying to create a destination here and make it something you have to come and find.”

Abbey Cellars

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Worshipping craft beer at the Abbey When you pitch up at Abbey Cellars, in the Bridge Pa Triangle wine district west of Hastings, the first difficult decision to make is whether you’re there for a beer or a wine.

The Haworth family established the Abbey Cellars wine brand in 2002 and a decade later, son Dermot started getting serious about beer. He began selling small-batch brews through the cellar door, leading to the creation of the Fat Monk label.

“We’re still predominantly a winery, which means we focus much of our energy on wine,” Dermot says.

“But we do now have 10 different styles of beer out in the market – probably the largest number for a Hawke’s Bay brewery.”

because it involves a combination of selling packaged product nationally while also having the cellar as a destination where visitors can enjoy a beer with food and music.

While Abbey Cellars does well attracting patrons – including cruise ship visitors and cyclists taking advantage of the local cycle trails – Dermot says that trade is limited to the summer months.

So in a bid to extend the cellar door’s appeal as a destination from spring right through to autumn, plans are underway to build a 12-metre covered beer garden on site.

On the other hand, a number of pubs have recently added ‘independent’ taps for craft beer and interest in Hawke’s Bay-brewed beers has also been enhanced by New World’s supermarkets in Hastings and Havelock North, which both stock local labels among a fairly extensive range of beers.

The Fat Monk brand was retired last year, with the beer now sold under the Abbey Brewery label. Dermot says the change reflects a maturing of the beer side of the business and aligns it with the wine brand.

The distinctive monk imagery associated with the previous name has been retained, The addition of a bottling and labelling however. line to the on-site brewery in late 2016 – Dermot describes Abbey’s beer business making the brand “self-sufficient” in terms model as “half brew-pub, half-brewery” of beer production – had been a significant

investment but one that was quickly paying off, he says.Away from the cellar door, like all the region’s craft beers, Abbey Brewery has faced the challenges of growing its brand recognition with local drinkers in a market where almost all Hawke’s Bay bars are tied into supply contracts with the two major brewing companies, Lion and DB. On the other hand, a number of pubs have recently added ‘independent’ taps for craft beer and interest in Hawke’s Bay-brewed beers has also been enhanced by New World’s supermarkets in Hastings and Havelock North, which both stock local labels among a fairly extensive range of beers.

“Their range is as good as in larger centres such as Wellington, and this has encouraged people to sample different styles of beers,” Dermot says “And it's great to see the bars that have started putting some independent taps in over the last couple of years and are noticeably busier and doing well because of their new offering.

It meets the current market demand that we have in New Zealand.”

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PORT S U C C E S S S E T S REGION UP FOR GROW TH The foundations for the growth and success of our regional economy are underway at Napier Port, with the operation posting record cargo volumes, delivering a strong financial result, and lodging an application for consent to build a new wharf.

A record 4.754 million tonnes of cargo crossed the port’s wharves in the year to 30 September 2017, up from 3.916 million tonnes in 2016. Container volumes grew 12% to a record 288,444 TEU. Log exports also hit a new high, with 1.63 million tonnes exported through Napier – a 35% increase on last year’s record.

After a large volume of scientific research and almost two years of pre-consultation with the community, Napier Port also reached a huge milestone in the development of its proposed wharf and dredging project when it lodged its resource consent application with Hawke’s Bay Regional Council last December.

At the end of 2017, Napier Port announced its latest annual result with the following highlights: • 4.754 million tonnes of cargo handled • Containerised cargo up 12% to a record 288,444 TEU • Log exports up 35% to a record 1.63 million tonnes • A record 48,310 TEU handled through on-port packing facility Port Pack • A record 125,000+ cruise passengers and crew visited Napier • New record set for largest vessel – Ovation of the Seas (348 metres LOA) • $16.7 million net profit after tax • $10.7 million in dividends to the Hawke’s Bay Regional Investment Company

If granted, it will see a 350-metre wharf built when cargo demand and increasing ship size warrant it.

Napier Port and the Hawke’s Bay economy are also enjoying the benefits of the cruise industry, with 60 cruise ships set to bring more than 153,000 passengers and crew into the Bay this cruise season.

Napier Port chairman Alasdair MacLeod says 2017 was an historic year for Napier Port.

“We faced a major challenge in the wake of the Kaikoura earthquake, and I’m proud of the way our people stepped up.”

Napier Port saw a significant and unexpected spike in cargo following the quake on 14 November 2016, as containers were rerouted to Napier.

“Essentially, we saw six years’ forecast growth in one year.”

It wasn’t the only major feat for the port in 2017, with giant cruise ship the Ovation of the Seas becoming the largest ship ever to berth at Napier Port when it made its maiden call in January.

“We had a fantastic cruise season, and the Ovation’s call was undoubtedly the highlight.

It really showed what we’re capable of achieving, and it was great to have such strong support from our tourism partners and our local community.”

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Alasdair MacLeod

More than 125,000 passengers and crew visited Napier over the 2016-2017 season, bringing around $20 million into the local economy.

The port’s onsite packing facility, Port Pack, also continued its growth trend, with 48,310 TEU containers handled over the course of the year. Port Pack now accounts for nearly a third of Napier Port’s containerised full export throughput, and has grown into one of the biggest packing facilities in New Zealand.

The port also invested $18.7 million in capital projects and equipment, including land holdings in Pandora and Whakatu and

Todd Dawson

specialist studies to support its application for resource consent to build a new wharf.

The resource consent application for its proposed 6 Wharf Development and Dredging Project is a crucial element in Napier Port’s future strategy. Alasdair says cargo volumes across the port are likely to nearly double over the next decade and Napier Port needs to develop its facilities to handle that growth on behalf of the region.

“Napier Port is critical to Hawke’s Bay’s economy – we’re associated with 27,000 full and part-time jobs and more than half of Hawke’s Bay’s gross regional product,” he says.

“Hawke’s Bay’s economy is in growth mode, and we’re forecast to see cargo volumes nearly double over the next decade, while ship size is also forecast to grow. Having a sixth wharf in place will strengthen our connection to global markets and ensure Hawke’s Bay can continue to thrive and maintain its enduring relevance.”

Long-serving chief executive Garth Cowie passed over the captain’s duties to Todd Dawson at the end of last year, after 18 years at the helm, and Alasdair says Todd is the right person to continue Napier Port’s success.

“We absolutely have the right person for the role. Todd brings the skill, acumen and tenacity we need to take Napier Port into the future.”

Port Facts • 14 different international container lines operate through the port.

• Napier Port activities are associated with more than $3.4b or 51% of Hawke’s Bay’s Gross Regional Product.

• By 2025, the port is forecast to be associated with $4.7b or an estimated 52% of Hawke’s Bay GRP. • The proposed new wharf and dredging of the shipping channel to handle larger ships will cost around $125 million.

However, over the next ten years, a total of $275 million needs to be invested to ensure Napier Port remains relevant and competitive.

• Napier Port is expecting a 49% increase in cargo by 2026

Todd comes to Napier Port from Kotahi Logistics, where he has been for the last five years, the last two as General Manager BoxConnect, leading their strategic programmes and implementation of new ventures and strategic partnerships. Todd says he’s excited to get stuck in.

“I’ve had a great welcome from the Napier Port team, and I’m enjoying meeting our many local customers. I’m very focused on a successful future for Napier Port, and I’m looking forward to working towards that with our team, our customers and our community stakeholders,” Todd says.

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Reinventing Retail: The Cuba Street of Hastings WRITER: SIMON HENDERY

Once a rundown part of town most people tried to avoid, this Hastings CBD block is now a magnet for shoppers and is being praised as a leading example of the ’experiential retail’ trend set to save high-street businesses. and cellar door they hope to open around mid-2018.

The distillery will help to further cement the block as the city’s premium precinct for artisan producers of local food and drink.

The windows of the former long-time home of Denton Wyatt Books on the corner of Heretaunga and Warren Streets, which closed in late 2017, have been whited-out Hastings businessman Michael ahead of a major redevelopment.

Whittaker, who owns several But elsewhere, along the stretch between properties in the 200 block, says Warren Street and Karemu Road, Heretaunga its transformation is a leading Street East is as vibrant as it’s ever been, with example for New Zealand of a range of artisan food producers and local how small, local stores can retailers plying their trade under awnings successfully evolve to thrive in decorated with bright hanging flower an age when shoppers are easily enticed by big box retailing and baskets.

It’s a major transformation from five years e-commerce. ago when the 200 block was the uninviting home of the local WINZ office, secondhand traders and a sex shop doing a roaring trade in synthetic cannabis.

Adding a ‘cellar door’ in the retail mix

Photo courtesy of Baybuzz and Tim Whittaker

Take a walk along Heretaunga Street East’s ‘200 block’ and you’ll find the central Hastings precinct buzzing with retail excitement – except in one corner.

Michael Whittaker Kate, the former chief winemaker at Alpha Domus, says her link to Back then, the street still had heart, with the the block goes back to the late 1990s when “[The distillery] should complement the likes of long-term occupant Cornucopia, she began shopping at Cornucopia and existing businesses well,” says Kate. but the café and food store’s customers were Humanity Books. becoming unhappy with the antics of some The distillery she and David are developing “We’ve been talking about a lot of of the people turning up to buy legal highs “will be akin to a winery cellar door collaborations with Funbuns and with the Common Room bar so I think it should all across the road. experience,” where customers will be able work in well. With all these boutique shops Today, WINZ, the sex shop and the second- to sample, buy and view the production and artisan producers around here, we hand stores are gone, replaced by retailers process, but there are no initial plans to thought these are like-minded people and such as La Petite Chocolat, Y’A Bon French include a cocktail bar. this is where we’d really like to be,” she says.

Baker and long-time Hastings furniture Gerard Barron and Jess Soutar Barron’s “While [the Denton Wyatt building] probably business Hutchinson’s. decision to open the Common Room bar isn’t the easiest building to work with The space left by Denton Wyatt won’t be in 2012 is seen as one of the major recent because of the way it’s been modernised, it vacant for long. Local winemaking couple changes on the block, and last year Nick Pike was really the last of its kind on the block so Kate Galloway and David Ramonteu have opened Funbuns, a “Bao buns and cocktails” we thought, well, this is where we want to be secured the site for a craft spirits distillery joint across the road. so we’d better secure it.”

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Gerard Barron

“When I started it I always said to myself, it’s going to take 10 years to slowly rework the fabric of the block.

I’m not a developer as such, I’d like to think I’m more of a re- developer. I’m not buying these buildings, doing them up and selling them. I’m a long- term investor in Hastings – and I’m putting my money where my mouth is to create something that’s in keeping with 21st century retailing.”

– Michael Whittaker

Kate says the popular union of eatery Carr’s Kitchen and craft beer brand Brave Brewing, with premises further down Warren Street, shows how the Hawke’s Bay drinks market has matured.

“The wineries are great and they’ll always be went from a corner that had a derelict old the backbone of it, but it’s just good to see building with vagrants living in it to a smart green space that the public could use.” beer and craft spirit coming into it as well.”

Michael now has interests in a number of Michael Whittaker’s involvement with the properties on the block and has plans up his block began in 2012 when he bought the sleeves for further revitalisation. disused Albert Hotel property on the Karemu “When I started it I always said to myself, Road corner, subsequently demolishing it to it’s going to take 10 years to slowly rework the fabric of the block. I’m not a developer create what is now Albert Square.

“We’d say that the 200 block was pretty as such, I’d like to think I’m more of a rederelict – every second shop was vacant – but developer. I’m not buying these buildings, therein lay the opportunity. We purchased doing them up and selling them. I’m a longthe Albert Hotel with the intention of term investor in Hastings – and I’m putting demolishing it [because] we wanted to my money where my mouth is to create develop Albert Square as a green space to something that’s in keeping with 21st century really say, hey, this block has changed. So it retailing.”

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Boutique shops 200 Block Heretaunga Street

Michael says his strategy has involved only leasing to private, Hawke’s Bay-owned and operated businesses.

but says: “We’re working with them very closely and we’re helping out where we can "We’ve invested for the because my view is anyone who wants to future in here. This is the “They had to have their heart in the business, put their shoulder to the wheel and create an interesting block, we all have to hang Cuba Street of Hastings.” they had to have their heart in the block. I had no interest, and still have no interest, in together and help. We’ve got food retailing; – Hamish Gibbs getting chain retailers or corporate retailers what we’re trying to do is really extend that in there because that’s a key part of the into the hospitality side.” revitalisation process – you have to have Fixing Hastings’ CBD friendly enhancements to the central mall people who believe in the block.”

The Hastings CBD has long been criticised beside the rail track.

Secondly, he says, he’s worked to ensure there for being too large, with its sprawling length was “an overriding theme for the block”. deterring shoppers, who instead are attracted Michael, who chaired the Hastings Business Association for four years until standing down “It’s all about experiential retail and in our to the large format retail zone off Karamu in 2017, says creating engaging experiences case we’ve tried to attract experienced food Rd on the central city fringe. for shoppers is a key way bricks-and-mortar retailers like La Petite Chocolat, where they It’s an issue Hastings District Council has retailers are remaining competitive against do their manufacturing in the shop, and Y’A been trying to address over the past few years, the online shopping explosion.

Bon, which is a full manufacturing bakery with a focus on encouraging the creations of ‘ – one of the best French bakeries in New precincts’ in line with what is happening on “At the end of the day, the Internet is going Zealand, all behind glass, where you can see the 200 block, part of a ‘mixed commercial, to play an increasing role in retail shopping; however, people will still want – and I think how it works,” he says. office, entertainment and retail’ zone. will increasingly demand – a retail experience.

“We’ve got future plans for a number of On the other side of the rail line that bisects They want theatre. You only get so much other experiential retailers that we’re talking the city, the first blocks of Heretaunga Street satisfaction clicking on a screen. So whatever to, to come into the block as well.”

West are a focused retail precinct, while the you do you have to make sure [CBD retailing] He is not involved in Kate and David’s council is in the midst of making visitor- is interesting and it’s an experience. redevelopment of the Denton Wyatt site 22

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At the time, Hutchinson’s director Hamish Gibbs considered the move to be temporary, given the store’s half-century association with the former site, but now there are no plans to shift back.

“It was pretty empty when we moved here and since then all the empty spots have been taken up, which is brilliant, for lots of reasons,” he says.

“It’s full, it’s vibrant, it’s lively and it’s attracting people.

People are enjoying the retail experience from the whole block. All the businesses complement each other and there’s just a good vibe and we’re really enjoying it.

“There are lots of clients of ours who are recent arrivals to Hawke’s Bay – whether it’s from New Zealand or overseas – and they just find Hastings is humming.

“That’s clearly the retail direction of the future block, but now the iconic Hastings retailer wouldn’t and I’d like to think the 200 block is leading that in be anywhere else. many ways in New Zealand.”

The former Hastings Municipal Building tenant was forced to move in 2014 when the municipal Big move, no regrets complex, including the Hawke’s Bay Opera After 54 years at its previous site, it took a seismic House, was closed for major earthquake safety nightmare to shift Hutchinson’s into the 200 strengthening work.

“[In the Municipal Buildings block] we were pretty much a destination store but now we’re part of a real buzz.

“We’ve invested for the future in here. This is the Cuba Street of Hastings.”

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Simone and Craig Stranaghan from Avantogo Tours with Jacqui Thomas, Business Hawke’s Bay, after their Business-Starter session at Hawke’s Bay Business Hub.

Hub Helps Fledgling Businesses

Fly

A new Hawke’s Bay Business Hub initiative is connecting established businesses with Hub services and assisting fledgling businesses get off the ground.

‘HUB Connect’ is a three-stage programme to connect businesses with Business Hub services. It’s designed for all businesses to find out more about what help is available here and how best to get started says Business Hawke’s Bay Chief Executive Carolyn Neville.

1. HUB Connect Check-In

of charge, involves a 60-minute meeting to help map out ideas and provide specific The first stage of the programme is the HUB information on business basics.

Check-In, which provides well-informed, impartial connections to the people who are Jacqui Thomas, Business Hawke’s Bay New Business Support says, “There’s various the best fit with the businesses’ needs. forms of support and advice for people Business Hawke’s Bay staff provide a already in business, but nothing much to warm welcome and an overview of the help people who have an idea but aren’t quite services available during a free one-to-one sure how to go about getting started. Now “The pilot programme was established with introductory session. After the ‘check- that the HUB Connect Business-Starter funding from Hawke’s Bay Regional Council in’ process is completed, businesses are programme is underway the enquiries range and Business Hawke’s Bay, and is strongly matched with organisations that can offer from people completely new to the concept supported by all Business Hub member further support and advice. of running a business, to those who may organisations. This is the service so many Referrals to the programme’s next stage, the have already been in business but have a new people have been waiting for – it’s designed HUB Business-Starter, are for those who idea they want to test out with an objective to make the engagement process with the are new to business or new businesses who ear, or want more insight into the early steps Business Hub and regional business service do not yet meet the criteria for Regional of getting started in terms of getting the providers easier and more effective.”

Business Partner registration, such as being fundamental basics sorted at the beginning.”

“So often businesses get given all sorts of GST registered.

“The Business Starter session is an individual contacts but don’t actually know who best one-to-one session tailor-made to meet the to talk to. With HUB Connect we take away needs of the client. For some this is as simple the confusion by pointing people in the 2. HUB Connect Businessas having a fresh sounding board to bounce Starter right direction and help them unleash their the idea around with, for others it covers the business potential.”

Last year, Business Hawke’s Bay identified a basic compliance aspects of structuring your Mrs Neville says her team really wants to real need to provide some form of support business and what things need to be covered simplify the process of connecting with the for people just getting started in business, off with various government departments.

Hub, and with HUB Connect it’s now as easy even if they only had an idea they wanted It is also a great connector into various to explore. A Business-Starter session, the other organisations and useful portals of as 1, 2, 3. second of the three stages available free information, and there are often plenty of 24

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“The HUB Club’s focus is on ongoing capability building.

We provide ongoing support for both start-ups and “Potential business owners can tap into the various forms established businesses through newsletters, events, of support and knowledge that is available right from the training workshops, networking opportunities and club very start of their business journey. Hopefully this will set deals including member discounts and special offers for them up for their best chance of success or, if their idea professional events.” needs some tweaking before it can fly, help them to avoid Fostering and supporting entrpreneurship costly mistakes.”

Craig and Simone Stranaghan from Avantogo Tours Overall, the ‘HUB Connect’ concept fosters and supports say they were delighted to be offered a Business-Starter entrpreneurship, as well as growing Maori participation in economic development. It supports Work Area 3 of session to help them with their new business venture.

Matariki – Hawke’s Bay Regional Economic Development “We went with an open mind, having previously been Strategy (HBREDS), the goal of which is to identify and in business in the building industry. We felt any help we support businesses wanting to grow. could gain would be of benefit. We really appreciated that our session was funded, as starting up a new business is Carolyn Neville says Business Hawke’s Bay is the lead agency for multiple Matariki Actions related to business an expensive exercise.” growth and start-up support.

“Jacqui really listened to us and provided some great advice. Of particular interest to us was the “speed business “Collectively the implementation of these Actions dating” sessions, the recommendation to revisit Hawke’s through our HUB Connect programme means we can Bay Tourism, a discussion around the importance of provide accessible business growth services and support social media, a wedding contact and useful booklets about to firms across the whole region. Already dozens of things like Health and Safety. Since our session we have people have taken part in HUB Connect and enquiries followed up on a number of these points and still have continue to come in every day through online registrations and referrals.” some on our to do list!”

“We have scope to support other fledgling businesses in the coming months. If you’ve got a new business 3. HUB Connect Club underway or you’re in business and would like to find out Also on Craig and Simone Stranaghan’s ‘to do’ list is more about the services available, we would love to hear joining the Business Hub’s new business event and from you so we can get you started – it’s as easy as I, 2, 3” training calendar, HUB Club.

To find out more about HUB Connect, check out Business Hawke’s Bay’s Club Co-ordinator, Tertia www.hbbusinesshub.co.nz Whitcombe, says membership is free for any business and gives access to a range of business-related initiatives. fresh ideas and useful contacts that come out of the session.”

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Empowering Business in the Central Region

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Fresh fields approach for local engineering firm

Scott Field and Blair Hislop

WRITER: KATE DE LAUTOUR Back in 1998, engineer Scott Field had just returned to Hawke’s Bay from the UK. Having worked for engineering firms in England and Brazil, he was keen to carve a niche in a rapidly expanding local economy. Setting up in Brookvale Road, Havelock North, with a 120-metre2 workshop, Scott asked brother- in-law and engineer Blair Hislop to join him.

Blair had also spent time in Europe, in the automated technology sector, and had returned to the Bay in 2002. Moving location four times over the years to accommodate the growing business, and now occupying 400 metres2 in the Whakatu Industrial Park,

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Fieldsway has a reputation for harnessing technology and innovating.

freedom to work on the business, rather than in it.

They have a discerning customer base requiring products ranging from high-end residential and commercial customised stainless steel bench tops, fixtures and fittings, to solar-powered entrance gates to heavy commercial irrigation systems.

Scott and Blair joined the Owner Operator Programme in the summer of 2016. Business had been going well but with several new projects in the pipeline, they both recognised a need to upskill themselves, and their staff, to ensure sustainable growth.

In the last two years, the business has scaled new heights as both Scott and Blair joined The Icehouse Owner Operator Programme, giving them the time and motivation to develop role clarity, implement new processes, build capability in their highly specialised team, and that all-important

Fieldsway were well known for manufacturing good-looking electronic gates and customised trailers but there were plans to expand further. “We wanted bigger premises and we were developing a new model for creating high-

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end stainless steel benches, fixtures and fittings to complement our current work, so we needed to ensure we got this model right first time,” Scott says.

One of the programme workshops focused on leveraging genius and role clarity. This provided the ideal platform for the two owners to nut out who would do what in the future. This included restructuring the organisational design of the business and building a high-performing team.

Planning began for a move from the Thomson Road leased premises to the Whakatu Industrial Park as well as building the capability of specialist designer Mickey Heibner.

“We knew we couldn’t grow the way we needed to without building the capability of our team,” Blair says.

Collaborating with other quality local businesses is creating high-value channels for new business and the Fieldsway team pride themselves on working well with other complementary teams.

“Everything we do is KPI’d and we analyse where every dollar is spent; on every job we can tell the guys exactly how much time they have to get it finished and that means no stress,” Blair says.

“We have an excellent relationship with Rabbitte Joinery when it comes to producing top-end customised kitchen and bathroom benches and fittings, we work with security firm Eastek on the electronic gates and, more recently, Think Water for irrigation work.”

Having moved into their new Whakatu offices in mid-2016, plans are underway to expand the workshop to have a larger bay for stainless work as the demand increases.

The team had identified a gap in the market for creating heavy-duty water systems for irrigation. Their time in The Icehouse allowed them to step away from the business and get the model right for this work as well.

“We recognised we needed to have a bigger focus on design and project management.

Ultimately designing and drawing up the Mickey joined The Icehouse Effective plans has given us a big tick for this kind of Leadership Programme (ELP), giving him the extra skills and tools to manage the new work,” Scott says. customer base, which was expanding fast “We’re all about the things you can’t buy off with the arrival of more efficient solar power the shelf, and we know the design expertise for electronic gates – the new technology we can provide is going to produce the right making gates more affordable for business finish,” Blair adds. and homeowners.

Ensuring that in-house processes are “Since I did ELP I have become more focused on my roles in the company and more open-minded about how to get the best out of the team with their skills, and it’s given me much more confidence with our clients and the other businesses we are working with on jobs,” Mickey says.

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streamlined is vital, with the large number of varied projects now on the go. Working with The Icehouse programme facilitator and coach Michaela Vodanovich provided the impetus to change to WorkflowMax and online calendars, as well as only focusing on the projects that are adding value to the bottom line.

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A 60-millimetre-thick folded stainless island for a Waimarama beach house has just been completed, another customer has recently requested oversized specialist shower nozzle fittings for an outdoor bathroom at a lake house in Taupo, and Mickey has been brought in to advise on a curved bench top for a Napier Hill kitchen that is nothing short of a work of art.

Commercial kitchens and new juicing factory plants are all being kitted out with stainless steel.

Staff are being retrained to upskill them to be able to work with the new designs, adding to the staff morale.

Both Blair and Scott agree they couldn’t be happier with the team they have built around them.

“We treat staff like family; we are interested in their personal lives, if they need to see a child in their school breakup then they should go. No one seems to want to leave, so we feel pretty good about that and it makes this business an awesome place to be.” www.fieldsway.co.nz

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WorkFit PRO

Feature

Hectic schedules at work, at home and in your social life can make it seem impossible to fit physical activity and healthy habits for general wellbeing in to your lifestyle and still have time for yourself. To think this needs to all be done in 7 days, week in week out can seem daunting.

...stress across businesses was up by a net 22.9%.

In 2016, the Southern Cross Health Society reported from their Wellbeing in the Workplace Survey that stress across businesses was up by a net 22.9%, something typically known to reduce the overall wellbeing of individuals.

What’s even more worrying to think is that 46% of Kiwi workers still turn up to work despite being sick.

We can’t remove the stress aspect altogether from the workplace, but there are a range of other options to reduce that to ensure our workforce are as healthy as they can be.

One way that Sport Hawke’s Bay is tackling some of these issues is the relaunch of its WorkFit programme with a whole new look, tailored to what Hawke’s Bay businesses are looking for. Previously the Green Prescription Active Families Coordinator, Oliva Mador-Puna jumped at the opportunity to lead this exciting new initiative.

“Everyone knows that healthy, active and well staff increases productivity, morale, and loyalty and decreases sick days,” said Miss Mador-Puna. “But not everyone knows where to look for a programme where people are genuinely interested in improving their wellbeing.”

“WorkFit will identify a more effective and efficient method of workplace wellbeing. We will remove the barriers that prevent your employees from being active and create a positive vibe for team collaboration.”

staff have incorporated multiple aspects of our nutrition options, including meal planning and healthy snacks into their Health and Wellbeing programme.

“I was extremely appreciative of the way in which all the activities were planned and delivered by the Active Living staff,” said EIT’s HR Advisor for Learning and Development. “They were open to suggestions, tailored all content and delivery to our staff group as required and we will continue to use them for input to our programme.

Their sessions were received very positively by staff and we certainly value having them as one of the contributors to our Health & Wellbeing programme.”

Mador-Puna ultimately see’s WorkFit improving the wellbeing of Hawke’s Bay businesses with an allencompassing approach, including regular activity, improved nutrition and a revitalized mind.

“I would like to see the “norm” in the office, for employee’s to happily head out for a lunchtime walk like writing an email without a second thought. Changing the culture of a business will be a challenge, but the benefits that reside with it are worth it!”

“With 4 years of experience working in the health sector, I am extremely passionate in promoting health and wellbeing. By building strong networks and key partners to support the WorkFit programme we look forward to enhancing active culture in businesses across Hawke’s Bay.”

With different options tailored to each business, WorkFit will incorporate three key components of wellbeing; nutrition, movement and mind.

46% of Kiwi workers still turn up to work despite being sick.

The programme offers a variety of deliverables such as; health checks, body analysis scales, cooking workshops, nutrition education, cycling, lunchtime movement, managing stress and tai chi just to name a few. Each plan will be designed to meet the needs, size and diversity of each business.

Both Eastern Institute of Technology (EIT) and Napier City Council dabbled in some of the WorkFit options as a trial in 2017 to empower their staff. Napier City Council tapped into sunrise Tai Chi with a healthy breakfast along Marine Parade in Napier every day for a week, while EIT

www.sporthb.net.nz

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For more information about WorkFit, contact Olivia Mador-Puna, oliviam@sporthb.net.nz.

FEBRUARY – APRIL 2018

Beating the workday slump in the Bay

Business growth leads to new team memberr Doing the right thing for its customers leads to dm consult mortgages + insurance adding Emma Hall to the team.

Darrin McCormick, Emma Hall, Ngaio Lewis and Brad Collett.

In just over 3 years dm consult has settled over $90m in loans, proving that we’ve done the right thing for over 400 satisfied clients, and with Emma on board, we can support many more clients seeking finance throughout Hawke’s Bay and beyond.

About Emma I am originally from Perth, Western Australia, and I have a background in Project, Facilities and Property Management roles, mainly in the corporate and resources sectors.

In 2010, along with my husband Glenn who was originally from Rotorua, and son Jackson, I had the opportunity to live, study, work and play in South East Asia, before relocating to Hawke’s Bay in 2016.

I am now a Registered Financial Adviser (RFA) and a member of the Professional Advisers Association (PAA).

“I am very excited to be joining dm consult mortgages + insurance and feel privileged to be working with such a great team. My passion is service delivery and to me this means finding solutions for my clients that are tailored to their individual needs and circumstances.

Simply – doing the right thing!”

Contact us on 877 0271 or visit www.dmconsult.co.nz FEBRUARY - APRIL 2018

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Sponsors event

We’re Expanding The much anticipated multi-million dollar redevelopment of Hawke’s Bay Airport’s terminal is now underway.

The project will take approximately 18 months to complete and will increase the size of the terminal by over 50% to 3,800m2.

Watch this space for further announcements

For more information visit www.hawkesbay-airport.co.nz 30

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TICKETS ON SALE NOW NAPIER PORT HAWKE’S BAY PRIMARY SECTOR AWARDS DINNER 12 April 2018, 5.30pm Event Centre, Showgrounds Hawke’s Bay, Kenilworth Road, Hastings MC: Jeremy Corbett Dress: Smart business attire Tickets: $150 (plus gst) www.napierporthbpsawards.co.nz

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New Zealand and India building stronger horticultural relationships A new partnership has been announced between New Zealand and the State of Himachal Pradesh under the Himachal Pradesh Horticultural Development Project which targets smallholder farmers in northern India.

The Himachal Pradesh Horticultural Development project aims to be the start of a much broader relationship with New Zealand horticulture.

The New Zealand team, working on the project, includes scientists from Plant & Food Research, Agfirst Engineering, Fruition Horticulture and other New Zealand-based specialists with additional support from the New Zealand pipfruit industry body, New Zealand Apples & Pears and New Zealand Government agencies.

The World Bank-funded three-year project will work with the horticulture industry in the Himachal Pradesh province to improve production of the region’s key fruit crops, including apples, summerfruit, and tropical fruits such as mango.

Located in the north-western Himalayan region of India, about 90% of the HP population lives in rural areas and is dependent on agriculture for their livelihoods. Apples are the main crop, accounting for 85% of fruit production in the area and about 30% of India’s total apple production.

Members of the New Zealand team who have been working together on the Himachal Pradesh Horticultural Development Project, (from left) G2G Know-How managing director Malcolm Millar, New Zealand Apples & Pears chief executive Alan Pollard and Plant & Food Research Business Development Manager (Commercial Group) Greg Pringle.

New Zealand Apples & Pears chief executive Alan Pollard said the industry is pleased to be contributing to these important goals of creating more jobs and better livelihoods for the people of Himachal Pradesh.

knowledge to support communities in developing regions is very rewarding.

“It also allows our scientists to extend their understanding of how crops grow in different geographic regions and “New Zealand’s apple and pear industry environments, and supports the relationship has the highest productivity in the world, between New Zealand and India, and their averaging 65 metric tonnes per hectare per respective apple industries,” he said. annum which is more than 50% higher than New Zealand’s entire horticultural sector our nearest competitor. is globally renowned for being innovative, “World best production and post-harvest sophisticated, and highly productive, backed systems and practices have earned the by sound science and world best practices. industry an international reputation for The New Zealand apple industry, while producing fruit of the highest quality. producing only 0.5% of the world’s “This project will provide growers in the apples, has been named the world’s most Himachal Pradesh province of India with competitive apple industry for the past three access to New Zealand expertise to help years (Belrose Group, World Apple Review). improve the productivity of their orchards From annual production of approximately in terms of both yield and quality, and 550,000 tonnes, two thirds of the crop is subsequently generate better returns for exported to over 80 countries around the world. their growers,” Mr Pollard said.

Plant & Food Research chief executive Peter The new project will use New Zealand Landon-Lane said Plant & Food Research expertise to develop orchard management is pleased to be involved in the Himachal techniques, irrigation and water harvesting Pradesh Horticultural Development Project. that will improve production and quality of fruit crops grown in the Himachal “Our scientists have been working with Pradesh province. It will also lower pesticide the apple industry for more than 50 years use through improved pest and disease and our research has contributed to the management, thereby contributing to excellent reputation of New Zealand environmental outcomes as well. produce globally. To be able to share this

TWO OF THE LEADING LAW FIRMS IN HAWKE’S BAY HAVE MERGED TO CREATE ONE STRONGER AND MORE EXPERIENCED PRACTICE On January 1 2017 Bramwell Grossman and Bate Hallett merged to form Bramwell Bate Limited.

Both firms have significant historical experience in providing legal services in the Hawke’s Bay area.

The merger will strengthen their service offerings and enhance client service.

To learn more visit www.bramwellbate.co.nz

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Finance

Do you want tulips with your bitcoin?

By Tobias Taylor | Head of Wealth Management AdviceFirst

The cryptocurrency bitcoin continues to make the news.

What many New Zealanders don't realise is that if they hold loyalty cards like Fly Buys or an air points card, they already own digital currencies.

"But as the price goes higher and higher, investors are buying into it not because of the development but because it's gone up... so it's become very much a speculative bandwagon."5

However, when we read in December of a Wellington waterfront property for sale in bitcoin, and that bitcoin futures recently debuted on Wall Street, the subject of bitcoin and cryptocurrencies warrant Other financial speculators are now also drawing parallels to consideration as a potential investment option. the Tulip Mania that gripped the What is a cryptocurrency?

Netherlands in the 17th Century, Cryptocurrencies are digital currencies which use encryption when some tulips sold for more techniques to regulate the generation of funds and the transfer of than ten times the annual income of a skilled crafts worker, before funds independently of a central bank. dramatically collapsing.

What is bitcoin?

What defines a good asset?

Bitcoin is one type of cryptocurrency that is produced and stored Before committing to bitcoin, or any other investment, ensure that it electronically. It has no intrinsic value – it cannot be redeemed for matches the definition of a good asset class. Ask yourself: other commodities like gold – and it has no physical form because it 1. Does it consistently earn on your behalf ? e.g. interest bearing. exists only on a network of computers.

2. Is it predictable? e.g. stable, not volatile.

Bitcoin is not backed by any government or central bank, it is not 3. Is it widely accepted and in demand? regulated by any laws, and it is not universally accepted.

Bitcoin has a high profile because it was the first cryptocurrency. 4. Is it safe? For example, protected by regulation.

However, because they can be created with ease, as of writing there 5. Is it easy to buy or sell? were more than 1,3001 other cryptocurrencies (including ethereum, If the answer is no to some or all of these questions, talk first to an ripple and litecoin) available on the internet. experienced financial adviser about what investments are best suited to your circumstances.

Why is bitcoin valuable?

There is a cap on the number of bitcoins that can be created, limiting While investments that don’t have the above characteristics may how much the currency can devalue through inflation. It can be provide opportunity for positive return, by and large, when dealing seamlessly transferred between countries. A growing number of with peoples total combined wealth and financial goals, such people are willing to accept it and to trade with it. investments fall more into the speculative and chance category, On a more sinister note, Bitcoin also enables crime and terrorist's rather than forming the basis of considered and planned financial networks2, like ISIS, because it can be used for transactions that planning to meet one’s ultimate goals. regular banks and governments would not allow.

Tulips anyone?

How does bitcoin stack up as an investment?

Volatile is one of the first characteristics of bitcoin that comes to mind. The US Commodity Futures Trading Commission said in December that investors need to be cautious of an investment that surged more than 1,700% in 20173. Since the high of December 17, 2017, bitcoin was valued at $27,769 New Zealand Dollars. At the writing of this article (January 11, 2018), bitcoin devalued some 37% to $17,418 NZD on 22 December before going on to ‘recover’ to the current valuation of $20,776 NZD (9 Jan 2018) – still some 25% down on the earlier high4.

Dr Shane Oliver, AMP Capital's Head of Investment Strategy and Chief Economist, labels bitcoin a bubble.

"To me, bitcoin has all the classic hallmarks of a bubble. It started off with some fundamental development, which is favourable, potentially revolutionising the payment system slashing the price of shipping money from around the world.

Sources: 1. https://fma.govt.nz/investors/ways-to-invest/cryptocurrencies/ 2. https://www.coindesk.com/u-s-think-tank-finds-rising-bitcoin-price-linked-terrorist- interest/ 3. http://fortune.com/2017/12/11/bitcoin-futures-contracts/ 4. https://www.cnbc.com/2018/01/08/cryptocurrency-ripple-crashes-30-percent-in-24- hours-bitcoin-also-dropping.html 5. http://www.ampcapital.com.au/article-detail?alias=/site-assets/articles/insights- papers/2017/2017-11/all-aboard-the-bitcoin-bandwagon&audience=2 Tobias Taylor is the Head of Wealth Management for AdviceFirst, a nationwide financial services provider with offices across the New Zealand. Based in Hawke’s Bay, Tobias is also a practicing Authorised Financial Adviser (AFA) and Certified Financial Planner (CFP).

Your Adviser has a disclosure statement that is available on request and is free of charge. The information in this article is of a general nature only and is no substitute for personalised advice. If you would like advice that takes into account your particular financial situation or goals, please contact your Financial Adviser. The opinions contained in this document are the opinions of the author and are subject to change without notice. Past performance is not indicative of future performance and is not guaranteed by any party. While care has been taken to supply information in this article that is accurate, no entity or person gives any warranty of reliability or accuracy, or accepts any responsibility arising in any way including from any error or omission.

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PRO RMA

New national standards for Forestry sector

By Cam Drury | Principal planner Stradegy

National Environmental Standards for Plantation Forestry (NES-PF) will come into effect on 1 May 2018 in an attempt to get greater consistency across the country Plantation forestry is New Zealand’s third largest primary sector.

According to the Ministry for the Environment and the Ministry for Primary Industries, it employs over 26,000 people and generates around $5 billion in export earnings each year.

Together with these positive social and economic effects, plantation forests also provide environmental benefits such as improving water quality, controlling erosion, and providing a temporary carbon sink.

On the other hand, plantation forestry activities can adversely affect To manage these risks, its Regulations cover the following the environment if not well managed, with the greatest risk occurring 8 core plantation forestry activities that have potential environmental effects: when land is exposed during harvesting or earthworks.

Rules contained in Regional and District Plans to manage such effects vary however, and while some of these variations reflect local differences and community priorities, they can cause problems for the many forest owners who manage forests in two or more regions or have forests that straddle council boundaries.

This has the potential to result in increased costs, uncertainty and inconsistent environmental outcomes. In response, and given the dominance of forestry from both a geographical and economic sense, enter the ‘National Environmental Standard’ approach allowed for under the Resource Management Act 1991 (RMA).

• Afforestation (planting new forest) • Pruning and thinning-to-waste • Earthworks • River crossings • Forestry quarrying (extraction of rock, sand, or gravel within a plantation forest or for operation of a forest on adjacent land) • Harvesting • Mechanical land preparation • Replanting.

National Environmental Standards (NES) are regulations made The regulations applying to these activities are based on good under the RMA. They set out technical standards, methods or forestry practices, and include: requirements relating to matters under the RMA and unlike Regional • Setbacks when planting next to rivers, lakes, wetlands, and or District Plans pertaining to different regions and towns, they are coastal areas – these unplanted strips protect against erosion intended to provide consistent rules across the country by setting and sedimentation from afforestation planning requirements for certain specified activities.

Rules within an NES prevail over rules in a Regional or District Plan except where a NES may specifically allow more stringent rules to be developed if specific issues in a Region or District require this.

• Management plans for earthworks, forest quarrying, and harvesting activities to identify environmental risks and how they'll be managed • Identification and maintenance of stormwater and sediment

control measures for forestry activities.

The National Environmental Standards for Plantation Forestry (NES-PF) will come into effect on 1 May 2018, and will follow five Like the structure of District and Regional Plans, if forest operators existing NES’s, these being: can meet the conditions, the activity is permitted. If not, they must seek a resource consent from their council. In some areas of high • National Environmental Standards for Air Quality erosion susceptibility however, stricter requirements may apply and • National Environmental Standard for Sources of Drinking Water some forestry activities will not be able to be carried out without resource consent.

• National Environmental Standards for Telecommunication Facilities

• National Environmental Standards for Electricity Transmission Activities • National Environmental Standard for Assessing and Managing Contaminants in Soil to Protect Human Health

This is a serious piece of legislation, and to this effect, Councils will be able to charge to recover the costs of monitoring permitted activities that have a high risk of environmental effects if conditions are not complied with.

The sector will certainly experience change - Councils will require greater resourcing, foresters are likely to require assistance from The NES-PF will apply to any forest greater than one hectare that private providers and monitoring requirements are likely to increase, has been planted specifically for commercial purposes and will be and may involve on-going programmes. harvested.

The main risks that the NES is seeking to manage include wilding conifer spread, erosion, and disturbance to waterways, particularly while fish are spawning.

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Cam Drury is the principal planner at Stradegy. To contact Cam email him at cam@stradegy.co.nz. Stradegy provide expert services in the field of Planning and coordinate a range of supporting consultant disciplines across the region.

PRO IT

Lightbulb Moment An alternative to Wifi, that’s worth considering?

By Simon Fletcher | Spark Business Hub

The summer holiday season is here! It’s been good to have a few days off over Christmas and enjoy this little piece of paradise with friends and family.

It’s been great to keep in touch and there haven’t been many places I haven’t been able to get access to Wifi to check emails and generally carry on with business. Wifi is such a flexible and useful technology and I struggle to remember what it was like without it (although its less than 20 years old).

There are a lot of options for Wifi connectivity throughout the country including free Wifi hotspots. This means the holiday can have almost seamless connectivity. But what is the future of our internet connectivity, is Wifi still the best technology and what about LiFi? Lifi was coined by Professor Haas in 2011 and stands for Light Fidelity. Essentially Lifi is delivered via a common household LED light that transmits data by a very fast flickering light (undetectable by the human eye). Every LED lamp is powered through an LED driver and this LED driver gets information from an Internet server that encodes the data. It is then picked up by a Photo Detector on the other end which is able to read all the flickering. It then decodes the data after Amplification and Processing (see diagram) And as light travels faster than radio frequencies (WiFi), then the obvious advantage of this technology is the increase in speed that LiFi can transmit data at, about ten thousand times faster than radio waves. Indeed speeds are indicated to be up to 28 Gigabytes per second versus 7 Gigabytes for optimal Wifi speeds.

Practically however there are some disadvantages to Lifi, the most obvious is the bulb must be on to transmit data. This won’t please anyone who enjoys checking social media or news in bed at night.

Also the range is limited; it is around 10 metres vs 30 metres for Wifi.

And each light handles multiple connections so the more connected the slower the speed will become.

It’s still early days but at the moment Lifi is still limited from a practical perspective, both Infrared and LED LiFi can’t transmit through walls, so while this could be an advantage from a security perspective, it’s a hard ask for your average user.

The mouth-watering speeds are exciting and further development is bound to push through the existing barriers.

The prototype of Infrared Lifi on show at CES has a lamp and a dongle that attaches to the PC (as our devices aren’t set up for this technology yet). The lamp is connected via an Ethernet cable and the dongle allows the PC to pick up the light.

The initial reports are it seems clunky, a bit of a hassle and costly.

But plans are in place to allow this to be expanded to a room sized area.

The speeds though were very encouraging (currently beyond standard PC capability)

I think the take out from this, is a real push to commercialise this On the positive side it does mean it can have commercial appeal for technology and already we are seeing some products hit the market industries where RF waves aren’t suitable. Think power stations and and a number of new companies started around LiFi. hospitals for example. And as light can travel through water this can So it’s probably going to be some time before we have these awesome be beneficial for underwater industries too. speeds where we need them and anywhere comparable to what Wifi Regardless of the limitations, the technology is certainly worth offers us at the moment. developing. What we have seen since its initial discovery is others Our businesses perhaps will see the benefits first and I can certainly looking at how to enhance it. see some advantages to any light based data transfer technology, So, enter the introduction of infrared light LiFI. Still not particularly when it comes to the Internet of Things and I suspect commercialised but already we are seeing some examples at this that is where the technology may be commercialised first. year’s CES in Las Vegas which indicates it may not be far away.

So at this stage I think Wifi is still going to be the technology of The difference between LED LiFi and IR LiFI is a passive antenna choice and as it is flexible and very useful, so when working remotely located in the centre of the bulb/light that allocates a single beam to while on holiday during the year, I hope your Wifi will do just enough a connected device and then using optical light to transmit the data. to keep you in touch.

One of the key advantages over the early Lifi is each light beam is allocated to individual devices (multiple connected devices slow Simon Fletcher is the owner of the local Spark Business Hub and has over 20 years’ down the speed). experience in the Utilities and communications industries.

Email Simon at simon.fletcher@hubhawkesbay.co.nz

FEBRUARY - APRIL 2018

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PRO

Education

NOW Co-Founder Embraces Study at EIT Widely known in the business community as the co-founder of NOW, Ben Deller delights these days in telling people he is a student.

Learning by chance about EIT’s suite of postgraduate programmes, he worked through his study options with School of Business Associate Professor Jonathan Sibley.

Having left the successful telecommunications company early last year, the 38-year-old is now dovetailing business consultancy work with parttime postgraduate studies at EIT.

Ben had good reason for feeling tentative – his first experience of tertiary study hadn’t gone well. After leaving Lindisfarne College, he abandoned Bachelor of Medical Laboratory Science studies after just a few weeks.

Ben enjoyed his 14 years heading NOW’s sales and marketing team, but over time, he says, the focus became less about innovation and more about management and scale.

Having broadened its customer base, the company was continuing to expand beyond Hawke’s Bay. It needed an injection of capital to achieve further growth. In 2015 Spark bought a stake and, over a period of 12 months, Ben started looking at what else he might do.

Ben Deller, EIT Postgraduate Certificate in Applied Management student

“I was working with some really smart people,” he says, “and one in particular – she has a master’s degree – suggested I study, as she had, purely for the enjoyment.”

Combine post-graduate business study and your career with work-integrated learning.

Study part-time or full-time, starting February. Prior tertiary study not mandatory.

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Tackling one course each semester, he is now on the way towards gaining a Master of Applied Management.

And EIT is also gaining from Ben’s enthusiasm for study. He has agreed to feature in a light box advertisement to be prominently displayed in the Hawke’s Bay Airport.

“It’s going to be odd seeing myself on a poster board,” he says with a grin.

ENROL NOW 0800 22 55 348 | eit.ac.nz

Jonathan suggested Ben attempt a course that took his interest to determine how he felt about study aligned to his passion for business. He enrolled for a leadership course taught by applied management Robbie Field and “absolutely, thoroughly, utterly enjoyed it”.

Ben says he wouldn’t keep coming back to EIT if he didn’t see the value in study – “I’m learning skills beyond those I already had.” His wider skill set comes into play in advising clients of Workshop X, the specialist consultancy he established to grow business ventures here in Hawke’s Bay.

Get the edge

THE EXPERIENCE YOU NEED & THE SUPPORT TO SUCCEED

“It really wasn’t my thing, but it’s taken a long time to pay back that student loan,” he ruefully reflects. The move to Palmerston North wasn’t a total write-off, however. He reopened a disused nightclub and attracted DJs from around the country in staging “a lot of parties”.

Ben Deller, EIT student Master of Applied Management

PRO HR

Show Me The Money Pressure builds in the Remuneration market.

By Kimberly McKay | BDO Central

After a long period of low inflation and low wage and salary rises pressure is building in the remuneration market. There are a number of factors having an impact, most of which have featured prominently in the media.

The new Government’s pledge to increase the minimum wage will be good news for those on low wages and will undoubtedly also have a ripple effect to workers on rates above the minimum, where previous margins between the rates of different groups of employees will be eroded.

Shortages of skilled workers are being experienced now and in certain occupations are predicted to accelerate as digital transformation occurs across industries and occupations. Employers are having to pay more to recruit and then may also need to address internal relativity issues with existing employees whose pay has not kept pace with the market.

The cost of housing in Auckland is putting pressure on wages and salaries and also contributing to labour shortages. Employers struggle to recruit in occupations with national public sector salary scales that do not reflect the cost of living in Auckland and we are seeing Aucklanders relocate to the regions (for many good reasons as we know).

The Government pay equity settlement for 55,000 care and support workers is likely to have far reaching effects as those costs come to bear on large numbers of low paid workers over the next five years. They certainly deserve better remuneration but their supervisors and colleagues who now see their pay relativity diminished and wages compressed will very likely be seeking a consequential adjustment.

All of these factors are driving up expectations that potentially will hit businesses hard if they are not in a position to pass wage rises on through price increases to consumers. These factors will impact differently depending on whether you are in the private sector, not-for-profit or public sector and whether you are in Auckland or the ‘rest of New Zealand’ and the extent to which skill shortages may affect your business.

There is plenty of research to show that for most people salary is not the primary motivator of performance or retention.

Other factors drive employee engagement which in turn is linked to performance and retention, including: • Learning and development • Career opportunities • Work that has purpose and meaning • Work life balance • Quality of leadership and people management

However, feeling valued is very important and may become the thing that tips the balance for existing staff to look elsewhere if your remuneration gets too far behind the market. Likewise it can be the deciding factor in which job a candidate chooses if all other things are equal.

You don’t have to be the best payer to recruit and retain staff but it certainly helps if you can manage remuneration well. There are a range of factors to consider that can make a positive difference to your remuneration and recognition practices: • Aim to keep in reasonable touch with the market for your industry and/or location. Use remuneration surveys or your networks to regularly check what’s happening.

• Have a clear remuneration structure and process. Make sure people understand how pay levels are set, how it links to performance, how they can progress.

• When people reach a ceiling at the maximum salary the job is worth or don’t have career progression available, be transparent and creative about how to keep them challenged and rewarded. Consider one-off payments instead of base salary increases or other non-monetary benefits.

Try to assign interesting projects or extra responsibility that provides development and satisfaction.

• Keep your promises – do salary reviews when they are due and communicate well about the reasons for pay rises or the lack of them.

• Consider the total package you offer employees – are there benefits aside from salary that are cost-effective to provide and attractive to employees? Make sure these are visible and not taken for granted.

When communicating about remuneration remind people about the extras they receive (such as funding for study, phones, health insurance, car parking, extra leave) • Be active and deliberate about nonmonetary recognition for good work and commitment. Thank people often, show appreciation with a small gift or morning tea. Acknowledge birthdays, length of service, passing exams and other milestones.

• Celebrate success and recognise achievements in front of peers with awards, a certificate, commendations at team meetings or in newsletters.

Pay attention to the drivers of engagement noted above to promote retention and engagement of existing staff and make sure you tell the story of your culture and work environment to prospective employees to support your market reputation and to ensure you attract the attention of desirable candidates.

Kimberly McKay is a Human Resource Consultant with BDO Central (NI). She has extensive experience assisting both small and large employers with all aspects of their HR needs. BDO Central are Chartered Accountants and Business Advisors, with offices in Napier and Palmerston North. BDO is able to support clients with a comprehensive suite of accounting, information systems and HR services. The firm is an independent member of BDO New Zealand and part of the global BDO network. www.bdo.nz FEBRUARY - APRIL 2018

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PRO Legal

Expect the best, plan for the worst and prepare to be surprised

By Edward Bostock | Bramwell Bate Lawyers

It is important for every business to have formal Terms of Trade. When comparing large businesses to small, it’s fair to say the larger the business the more likely it will have written Terms of Trade.

While there may be some who have operated for a substantial amount of time without written Terms of Trade and have never had cause to require them, every business should "expect the best, plan for the worst and prepare to be surprised."

Terms of Trade should set out the conditions and agreements that the business and the customer have made at the commencement of a transaction including the obligations of the business and the customer (if any). This benefits both the business and the customer – the customer enters the relationship with realistic expectations and the business has defined the standards it intends to meet.

Business to Business

The Consumer Guarantees Act 1993 (CGA) will not apply and it is therefore important to specify the businesses potential liability and the extent that liability is to be excluded. For example, a business may wish to exclude liability for losses suffered by a customer that could not be reasonably foreseen. A business may also wish to limit its liability to a specified dollar amount or to exclude liability completely.

Business to Consumer

The CGA will apply where a business (acting in trade) supplies goods or services to a consumer. Where the CGA applies various warranties will automatically be implied into the contract between the business and the customer. Importantly Benefits Well drafted Terms of Trade should assist a a business cannot contract out of the business in resolving issues with a customer. CGA when dealing with a consumer.

For example, the terms can help a business to collect debts, should the need arise, and should also specify: TERMS OF TRADE SHOULD • How the price will be determined (if a SET OUT THE CONDITIONS quote is not given); AND AGREEMENTS • When and how payment is to be made; THAT THE BUSINESS • Consequence of non-payment, such as AND THE CUSTOMER penalty interest on unpaid amounts and the ability for the business to recover HAVE MADE AT THE its costs in collecting the debt from the COMMENCEMENT OF A customer.

TRANSACTION INCLUDING By recording these matters at the outset, THE OBLIGATIONS OF the customer cannot refute them or argue THE BUSINESS AND THE that they do not apply, or they did not agree to them.

CUSTOMER (IF ANY).

Acceptance of Terms

It is important to be able to evidence that a customer accepted the Terms of Trade.

A business may have well drafted Terms of Trade that provide them with all the protections required however this will be of no use if it is unable to show that the customer had agreed to the terms.

For example, a business that prints its terms on the back of an invoice may have difficulty proving that the customer accepted them.

The obvious issue here is that a customer may claim that the first time they saw the terms was on receipt of the invoice, after the transaction had essentially been completed and may argue therefore that they never accepted the terms.

Where a business provides quotes, good practice would be to specify that accepting the quote constitutes acceptance of the businesses Terms of Trade, which should be provided with the quote.

The obvious way to evidence acceptance of the Terms of Trade would be to have the Tailor-made customer physically sign those terms prior While it's possible to download a template to commencing work. It is accepted however form of Terms of Trade, it is advisable Notwithstanding that the CGA may apply that this may not always be appropriate for each business to tailor their Terms of a business may still want to limit its liability however emailed confirmation from the Trade to their specific circumstances and for example for “indirect” or “unforeseen customer accepting the Terms of Trade requirements. losses”. However, if a business does this would also suffice.

For example, the question of liability should it must then be determined whether the be included in Terms of Trade and “one Terms of Trade are considered a “standard size” may not fit all. The question of liability form consumer contract” and whether any will first be dependent on whether it is a of the terms are “unfair contract terms”. Edward Bostock is a Director at Bramwell Bate “business to business” or a “business to Lawyers in Hastings. To contact Edward, email edward@bramwellbate.co.nz consumer” sale.

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PRO

Property

The value of a registered valuer

By Paul Harvey | Williams’ Harvey Registered Valuers

Late last year Napier City Council updated the Rating Valuations (RV) for properties within its Territorial Authority (TA). Also known as Government Valuations (GVs) these property valuations are undertaken every three years and are based on mass appraisal techniques.

The values are used primarily for assessing local authority rates and in many cases the subject property has not been inspected.

Also, be aware of how the value conclusions for a property are generated using an e-Value/ computer generated reports used by some retail banks and Quotable Value.

• Sales offered as comparisons are not always relevant to the subject in question and do not compare apples with apples and therefore over or under value the property.

However, often property buyers use Rating Valuations as a guide to value when making an offer or considering the purchase of a house. • Computer generation does not take into consideration factors such as views, aspect, house presentation, neighbouring properties. For Rating Valuations are carried out every three years, and may be out example, in Havelock North and Napier streets can include sites of date after only a few months. Some assessments are carried out that are more elevated or in a gully some sides of the streets shaded several months prior to the published date and may even be out of other sides are not. date by the time of public release. In most cases there is significant change to values in a three-year period. Consequently, there could be • A property might front a busy road versus a enormous discrepancies in the assessments. This is a concern for a quiet cul-de-sac, furthermore unless a property is lender basing any loan on a Rating Valuation’s ‘value’ or a vendor/ inspected it is impossible to tell its true condition. purchaser negotiating a contract for sale or purchase and relying on this ‘free’ assessment. As independent Registered Valuers, our reports are of a much higher standard and comply with both International Valuation Standards (IVS) and those set by the banks themselves and our reports are deemed out of date if they are more than three months old. Of note, confusion often occurs about the term RV. Is it a report from a Registered Valuer, or is it a computer-generated report from your local TA, a Rating Value?

Vendors and Purchasers alike should be aware of the following points: • Rating Valuations do not include a chattels allowance which would normally form part of a purchase price. Chattels generally include removable appliances, drapes, light fittings and floor coverings.

The value of chattels can be as high as 10% of the property’s value.

• Rating Valuations are typically computer generated using previous values and increasing these by the average rise indicated by recent sales. These are then checked, sometimes by a roadside inspection.

Very seldom do the Valuers make an internal inspection.

• As there is often no internal inspection, a property may have been altered or refurbished since the Rating Valuation was assessed and this would not reflect the property in its upgraded state - or deteriorated state such as a leaky building.

In fact, if you read the small print of these reports – you will find the same or similar: "X provides this material for information only.

You should seek professional advice relevant to your individual circumstances. While X has taken care to ensure that this information Also, be aware of how the value conclusions for a property are is from reliable sources, it cannot warrant its accuracy, completeness generated using an e-Value/computer generated reports used by or suitability for your intended use. To the extent allowed by law, X some retail banks and even Quotable Value. There is no actual does not accept any responsibility or liability arising from your use of property inspection and therefore very limited understanding of what this information. accepts no liability or responsibility...." the property's attributes truly are. Unlike a report from a Registered Fundamentally, no property can be accurately assessed without a Valuer, some of the differences between a registered valuation and site visit by someone who is in full knowledge of the property and an E-Value report include: location's characteristics. If you do require the best indication of • Floor areas are sourced from Core Logic, not physically inspected price, engage the services of a Registered Valuer so that you can be or measured. sure of the true value of your property.

• Value is benched off the Rating Value.

• Of the nearby sales looked at the value conclusions do not make Paul Harvey is the Director of Williams’ Harvey Registered Valuers. He has a comparisons back to the subject property and do not state whether diverse and broad knowledge of the HB property market. To contact Paul, they are inferior, comparable or superior to the subject property. email: paulharvey@williamsharvey.co.nz FEBRUARY - APRIL 2018

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Business

Stick to what you know Some sound advice for construction businesses.

By Jess Radich Information Systems and Business Manager BDO Central (NI)

The topic of how difficult it is to find a tradie with capacity is a popular one at the moment, which leads me to believe that accounting, paperwork and tax will not be top priority for those in the industry.

Now is a great time to look forward and decide what direction you want your business to go in 2018. For those in the building and construction industry, it seems that an increase in profitability features high on the wish list.

Here are five tips to help make 2018 the most profitable year yet.

Tackle compliance

Tradies all say that dealing with paperwork and compliance is one of the toughest, most timeconsuming parts of the job. Invoicing, payroll and GST is not everyone’s forte. Falling short in any of these areas can have significant and costly consequences.

breaking even, or worse, are costing you money.

This is where job management applications are hugely advantageous.

Workflow Max or trade industry specific apps such as Fergus, Tradify and Service M8 will guide you from job costing and quoting through to invoicing and payment. Each job is made up of various tasks and costs with estimated dollar values applied. Labour cost is calculated based on employee pay rates and hours required. At any given time, a jobs progress can be viewed to ensure all costs are being captured and billed.

Knowing how much money your jobs are likely to make you, will help you avoid work that would dig you into a hole, and allows you to pick winners right from the start.

Get paid sooner

A good accountant with knowledge of cloudbased applications is a great asset. They can recommend the best online accounting systems and job management software that best suits your business. Accounting software such as Xero, Reckon and MYOB give you details of your financial performance in real time, eliminating the need for spreadsheets which remain static and error prone. These platforms also offer integrated payroll systems, which can take the stress out of each pay period. GST is automatically calculated and ready for filing directly with IRD. Customised invoice templates can be set up to save you time at the end of a job, which look professional and are easy to read.

Invoices for trade/construction work tend to be on the larger side, which clients can often put off paying. Whether you are a subcontractor on a big job site, or a sole trader doing residential one-off jobs, you should be getting paid regularly and on time. Online invoicing from cloud-based applications mentioned above means that you can send all invoices via email instantly. Customers can then view their invoice online and you can see the exact date and time they opened it – no claiming the invoice was not received! You can even connect online payment services like PayPal or Stripe so that clients can pay on the spot.

Enforcing strict payment policies is a good idea too, a 7-day payment term is perfectly reasonable.

For high value projects, it may pay to agree on a payment schedule throughout the life of the project with your client. An early payment incentive can also work a treat!

Job costing

Minimise bad debts

Even though you may be charging big bucks for a job, it often turns out that you are only just

Debtor management in any business can be tough and the construction and trade industry is no

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exception. Chasing bad debt is never a pleasant task. Fortunately, there is an easy way to automate the pain away. Xero and most other apps will send late payment reminders automatically to allow you to chase bad debt without lifting a finger. Xero integrated app Debtor Daddy even provides you with a receivables manager that will call your clients on your behalf if they do not respond to reminders. Minimising bad debt levels makes a huge improvement to your business, and really lifts profitability.

Stick to what you know

Many business owners take care of the books themselves, when in fact it is far more efficient and cost effective to pay someone else to do it. Information can be sent seamlessly to an accountant via cloud apps, which will enable them to take care of compliance and provide you with meaningful financial reports without having to chase you. Invoices from suppliers can be scanned or snapped by a smart phone and filed directly into Xero ready for your accountant to process.

Employees can prepare their own timesheets using job management software on their own devices and submit for payroll processing.

HubDoc or Receipt Bank apps can be used to extract key information from supplier invoices that have been scanned or emailed directly to the app for automatic data entry into Xero.

Jess Radich is the Information Systems and Business Manager with BDO Central (NI). She has extensive experience assisting both small and medium sized entities with a wide range of Information Systems and advisory services. BDO Central are Chartered Accountants and Business Advisors, with offices in Napier and Palmerston North. BDO is able to support clients with a comprehensive suite of accounting, information systems and HR services. The firm is an independent member of BDO New Zealand and part of the global BDO network. www.bdo.nz

ELECTRICITY SAFETY TIPS TO POWER YOUR SUMMER KEEP VEGETATION UNDER CONTROL An important electrical hazard to be aware of is trees growing too close to power lines – vegetation and power lines don’t mix.

If you spot a tree growing close to power lines, Unison can arrange for a free inspection and quote from our vegetation team. The tree may be eligible to be removed or trimmed at our cost.

As well as posing a safety hazard, trees and branches hitting power lines cause around 20 percent of unplanned power cuts.

With the temperatures soaring and many of us spending more time outdoors on DIY and in the garden, here’s how to keep safe around electricity.

TOP SUMMER SAFETY TIPS Summertime is often when we undertake projects or general tidy-ups around the home.

Here’s our top summer safety tips when working outside.

1. LOOK UP Be aware of power lines above you when using ladders, flying kites or raising caravan antennas for example. Keep them well away from power lines and make sure any ladders you use have rubber feet touching the ground.

Electricity can ‘jump’ to nearby conductors – and that includes you! Call Unison to apply for a temporary disconnection for safety.

2. LOOK AROUND Power boxes have live electrical assets inside of them. Remember the five metre rule: if you plan to work within five metres of any asset you need to call us prior to organise a safe approach – for residential customers this is a free service and needs to be booked in advance.

3. LOOK DOWN Check for buried cables before digging.

If you are near power boxes or know that there is a power line nearby there may be cables you can’t see. If you are digging, installing stakes or warratahs, or undertaking renovations, contact us to find the location of underground cables on your property boundary.

4. TREE SAFETY Keep your trees maintained and at least four metres from power lines to reduce the possibility of an outage. If trees are within four metres, contact Unison for a list of approved arborists. Before deciding where to plant your trees, consider the species and their potential future height.

A tree planting guide is available at www.unison.co.nz/safety-and-trees 5. FALLEN POWER LINES If you see a fallen power line stay well clear, keep others away and call 0800 2 UNISON immediately.

6. MAKE SURE EXTENSION LEADS AND POWER CABLES ARE IN GOOD CONDITION If there’s any damage, get rid of them or have a licensed repairer fix them.

7. HIGH LOAD PERMIT If you need to transport a load above five metres high (such as boats and trailers) through the Napier, Hastings, Rotorua and Taupo regions, it is crucial you apply for a High Load Permit.

This will help ensure you are not at risk of hitting or damaging live power lines during your trip, which can be a very costly error.

You can apply for a high load permit at ww.unison.co.nz/get-a-permit

If you would like a safety disconnection to locate underground cables or have a tree that needs attention, call Unison on 0800 2 UNISON (0800 2 86476).

When trimming trees, please remove any branches and debris as many of our vegetation related outages are caused by flying debris during high wind events.

Keeping trees at least four metres from the network helps to keep everyone safe and the power on.

Unison undertakes proactive vegetation inspections over its 12,000-square kilometre network and in our last financial year, the vegetation team removed or trimmed around 21,000 trees.

But we need you to help us! If you have trees that need urgent attention, please contact us.

Business Hub | Hawke’s Bay

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