Chamber Connect Magazine by Tuskany Agency

CHAMBER

CONNECT The Bay’s most informative Business Magazine

MARCH 2016

COMPANY CARS SORTING OUT THE SPIN SMEs TAKE CENTRE STAGE WATERFRONT STEPS INTO FUTURE ATTRACTING THE TALENT

ISSUE 3

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CONTENTS MARCH 2016

SMALL BUSINESS TAKES CENTRE STAGE Helping hand for local firms

Oliver Moorcroft, a Director at Harris Tate Lawyers, with his company car

SNAPPED

CHAMBER

CONNECT YOUR TEAM Chamber Connect is published on behalf of the Tauranga Chamber of Commerce by NewsAplenty Ltd. EDITORS Anne Pankhurst (anne@tauranga.org.nz) 577 8955

EDITORIAL IDEAS Feel free to contact the Editors or the Publisher to discuss editorial ideas. If we like your suggestion, the subsequent article will run free of charge. Advertorials are also available via Advertising Sales. DISCLAIMER Chamber Connect is a quarterly publication © Copyright 2016. Articles and illustrations may not be reproduced in any form without the permission of the publisher, NewsAplenty Ltd. The opinions expressed are not necessarily those of, or endorsed by, NewsAplenty Ltd or the Tauranga Chamber of Commerce (the Chamber), unless stated otherwise. Whilst every effort has been made to ensure accuracy at the time of printing, under no circumstances will NewsAplenty Ltd or the Chamber be liable whatsoever for any loss, injury of damage arising directly or indirectly from any omission or error in respect to information contained in the publication (whether the result of negligence or otherwise). NewsAplenty Ltd and the Chamber do not accept any responsibility or liability for the views or claims expressed in this publication. The Editor and Publisher retain the discretionary right to reject all copy, including advertisements, without any recourse.

Katie Ross-Williams (katie@tauranga.org.nz) 577 8954 PUBLISHER & PRODUCTION Paul Dykes (pauld@newsAplenty.co.nz) 021 020 70912 JOURNALISTS Monique Balvert-O’Connor, Paul Dykes ADVERTISING SALES Paul Dykes (PaulD@newsAplenty.co.nz) 021 020 70912 DESIGN CREATION Tuskany Agency (tara@tuskany.co.nz) 577 1630

SMALL BUSINESS TAKES CENTRE STAGE Helping hand for local firms

NEW STUDY OPTIONS PROVIDE GREATER OPPORTUNITIES

COMPANY CARS A SIGN OF GOOD BUSINESS

Getting the financials right

YES WE CAN

Students in the business world

AWARD WINNER EYES GROWTH

HOME SAFE FROM WORK

Expansion plans for record-breaking games

Make H&S part of your workplace culture

FIND SPACE FOR ROCKET

Young professionals’ launch pad

SUCCESSION PLAN VITAL FOR FAMILY BUSINESSES

ECONOMY BATTING ON WELL

STEPS IN TO THE FUTURE

Waterfront plans awash with support

CHAMBER WINS SME CONTRACT

Extra help for local businesses

ATTRACTING THE TALENT

CHAMBER

CHAT

SMALL BUSINESS IS BIG FOCUS By Stan Gregec

The Tauranga Chamber of Commerce has launched a new strategy in 2016 to support small businesses in the Bay, to give them the recognition they so richly deserve. The Chamber has established a new network called Small Business Tauranga, which aims to provide initiatives, support and engagement opportunities that will add real value to business owners based in Tauranga. We know this sector makes up 80% of businesses in the region and within our membership; we will take a closer look at how we can better support these people and their businesses. The new division will be similar to the existing Business Women’s Network and Rocket Young Professionals groups. At a practical level, we’ll be organising a number of initiatives that will hopefully draw in a much wider audience than our own members. We’re planning to run a campaign to profile small-business owners, coming out to businesses and putting the spotlight on

Making the most of IT

them, as well as additional breakfast events, business

SNAPPED EVENTS

For further information, visit: Linkedin:

28 SMART PLACE FOR BUSINESS

Top facilities available

EVENTS AND TRAINING

UPSKILLING THE MANAGERS

expos and more.

Small Business Tauranga (Group); and Facebook: Local and Vocal in the Bay. It is also pleasing to be able to announce that the Chamber has been re-selected to lead the delivery of the government’s Regional Business Partnership for the next five years (see Page 23). The programme, which is jointly funded by New Zealand Trade and Enterprise and Callaghan Innovation, is targeted at the SME sector. Since 2011, 734 SMEs have benefited from the programme across the wider Bay of Plenty.

SMALL BUSINESS TAKES CENTRE Helping hand for local firms

The Chamber’s key strategic focus for 2016 is on small businesses, reflecting the importance of the long tail of members from this sector, who make up the bulk of the membership. Small Business Tauranga was officially launched in February at Club Mount Maunganui at an event attended by more than 100 local business people. The initiative’s slogan “Local and vocal in the Bay” underlines the strategy’s theme of giving a voice to an important sector of the local business community, said Chamber Chief Executive Stan Gregec. “We want to give them a voice and show them there is an awful lot of support and opportunity out there for small-business people,” he said. He estimated the small business sector accounted for up to 80% of businesses in the region and within the Chamber membership. He floated the concept initially with a new group on LinkedIn just before Christmas, which drew in more than 150 people keen to take part. The Chamber has set a new internal division, utilising existing resources, to drive the new strategy, which will draw on support from the business

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community. The new division will follow the successful model of the existing Business Women’s Network and Rocket! Young Professionals groups. “We believe it’s time we recognised the small business sector and started to give a voice to all the amazing small-business people who are out there. The initiative has really resonated with the kind of small-business community we have here in the Bay. We have had a terrific response and a lot of people have come forward.” Stan emphasised that Small Business Tauranga wasn’t just about refreshing the Chamber’s membership by encouraging more businesses to access its services, but was about making sure the organisation had a wider stake in the community. The strategy’s objectives include drawing in a bigger audience than just existing Chamber members to its events, he said.

new businesses, we’re in a position to make connections for them to the opportunities they may be seeking. We want business people to know that the Chamber can help them connect the dots.” Small Business Tauranga will gain additional momentum from the visit of Minister for Small Business Craig Foss to Tauranga on 22 March to meet with Chamber members and small business representatives. The minister will focus on the government assistance side of supporting small business.

The new focus will allow the Chamber to engage more effectively with small businesses that had recently set up in Tauranga, as business owners in this sector may view the Chamber as part of a traditional old boys’ network. “In particular, for new migrants into the city, as well as older people who may be looking to develop their own Phil Waylen from event sponsor Documents With Precision

NZ BUSINESS MARKET

STAGE

As part of its small business focus, the Chamber is partnering with Brett Yeatman, who recently set up the NZ Business Market, a series of “pop-up” mini business expos. Brett brought together 15 or so companies at February’s Small Business Tauranga launch to showcase the concept. He plans to hold monthly mini business expos at the ASB Arena, kicking off on Wednesday 20 April.

The Chamber has a number of new training initiatives underway, one of the first of which is a sales training initiative geared specifically to smaller business owners that has been developed by Zita Cameron, who runs networking special projects company INfuzed. Small Business Tauranga events will be tailored to take into account that the average small business owner is incredibly busy and has limited time to attend half-day workshops, said Stan. Instead, there will be more “short and sharply focused” early morning or breakfast events. The Chamber will also

be reaching out to host events in rapidly developing business centres, such as Tauriko and Papamoa, to encourage greater participation. “There will be lots of opportunities for people to do traditional networking out where they are working,” he said. “But we will also be utilising networks that are out there already out there. The Chamber is not here to reinvent the wheel. We see ourselves as an umbrella supporting the whole business environment.”

Chamber Chief Executive Stan Gregec said that a lot of small businesses did not have the resources to commit to taking part in a major trade show, which could take two weeks out of their schedule. Companies taking part in the NZ Business Market will be able to access a 2x2m space, priced at $250 for a morning or afternoon slot. Exhibitors sign up for either morning or afternoon sessions. Brett said the response for the April event was strong, with some companies opting to take up both sessions. Stan said the concept was ambitious, but there had been positive feedback. “We think there’s scope for an expo where companies can quickly and easily set up and promote themselves.”

Chamber Chief Executive Stan Gregec at the launch

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LOVING YOUR BUSINESS Phil Holland, founder of LovUrBiz, spoke at Small Business Tauranga’s launch on the importance of business owners falling back in love with their original business goals and aspirations. The business grew from the long-time financial planner discovering when he began consulting to small businesses that a consistent problem for many of them was not the business basics. “What I find – particularly with small-business owners because they usually have nobody to talk to – are problems around their head space.” They could become overwhelmed and frustrated, spending all their time in the business, but not working on the business, he said. “Generally, there’s nothing wrong with their business, but they don’t listen to their own intuition,” he said. “It’s really lonely being a business owner. What I love about the Small Business Tauranga project is that it’s giving small-business owners the opportunity to be part of something, and part of a forum where they can discuss and share their problems.”

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MOVING THE BUSINESS FORWARD Chamber board member and Small Business Tauranga steering committee member Steven Tarrant is a strong supporter of the Chamber’s new focus. “Part of the reason I wanted to help out with the Chamber was to better equip it in assisting and supporting small businesses,” he said. Steven and wife Nicola founded and ran successful small manufacturing and wholesaling business Candles of New Zealand and its Flicker retail arm, which specialised in gift candles. They sold the business in 2014 and he is now Bay of Plenty Manager for Keith Hayes Homes. “Candles of New Zealand was a classic Tauranga small business. We were representative of a lot of businesses in the region that essentially could be run from anywhere – and what better place than Tauranga.“ He noted that small-business owners were usually very good at one or two

things. “We were very good at branding, creating and marketing our products,” he said. “But we didn’t know where to start when it came to the logistics of mass manufacturing and didn’t really have a clue when it came to the legal side of exporting. What we needed was support in how you operate and move the business forward.” Steven said it had been enormously valuable as a small-business owner to reach out to the Chamber for support. “They helped me and put me in touch with other agencies such as ExportNZ and NZTE and just helped us grow regionally, then nationally, then when we were looking at export markets. My experience was that we couldn’t have done what we did without their support.” The Small Business Tauranga group was a great opportunity to promote the fact that the Chamber was there to provide support and inspiration, he said.

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NEW STUDY OPTIONS PROVIDE GREATER OPPORTUNITIES Four new qualifications on offer at Bay of Plenty Polytechnic in 2016 will help meet local and national skill shortages and take people into higher levels of study. Academic Director Dr Amanda Torr says the new offerings are in line with both public demand and job opportunities. “These new programmes provide more diverse study options for people in the Bay of Plenty as well as meeting local and national employers’ demands.” Starting from February 2016, the four new programmes are: Bachelor of Community Health This three-year degree is based at the Windermere campus and took its first intake of students at the end of February. There are two majors on offer – Public Health or Occupational Health and Safety (currently on the Immigration New Zealand Skill Shortage list). Graduates will be able to go into a variety of jobs, including community health officer, health promotion, occupational health & safety officer or consultant, risk manager and many more. Prospective

employers are likely to be government agencies, private companies and various community-based organisations.

is for people working in, or planning to work in, strategic leadership roles in supply chain management.

Rachael Gardiner, Polytechnic Group Leader Health, says it is evident through consultation with industry that there is a strong need in our community for this qualification.

The qualification provides a win-win for both employer and employee. Graduates will benefit by having a qualification that recognises strategic leadership capabilities in supply chain management while employers will achieve gains in efficiency by having people with strategic skills and knowledge to optimise the supply chain of their products to market.

“From school leavers to mature students – people have been asking for a degreelevel study option in health and we are thrilled to be able to deliver it in 2016.” NZ Certificate in Baking (Generalist) Also on the NZ Skill Shortage list are qualified bakers. This one-year qualification teaches fundamental baking skills, food safety and kitchen operations. This is a well-recognised qualification that has the potential to gain graduates jobs around the world. New Zealand Certificate in Supply Chain Management and New Zealand Diploma in Supply Chain Management Due to start in the first half of 2016 (pending approval), these online qualifications are designed to meet the growing need for skilled people in supply chain management. The level 6 diploma

Graduate Certificate in Sport and Exercise and Graduate Diploma in Sport and Exercise Both qualifications are ideal for those either wanting a change of career or to gain skills and an internationally recognised qualification in the sport, health and exercise sector. Applicants need to hold a Bachelor’s Degree (in any subject) and have an interest in sport, health and exercise. For those who don’t have a degree, entry will be reviewed on a case-by-case basis for people demonstrating considerable experience in the sport and exercise field – perfect for people wanting a formal qualification to back up their years of experience.

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COMPANY CARS A SIGN OF GOOD BUSINESS Getting the financials right

Many businesses would not be able to operate without a range of company vehicles, but those entering the market can find the assortment of procurement options very confusing. What’s better for the company? Hire purchase, leasing or buying outright? There are tax advantages here, but liabilities there. What do we own at the end of the leased term? Will we be stung by a top-up based on residual value? Can we quit the deal if we can no longer justify the car? Sure, it can be a daunting process, but in every case there is a specific finance package that is perfect for each vehicle. First, talk to your accountants and financial advisors. What resources are available to you? Then have a chat with a vehicle provider and work through the options that suit the recommendations given to you in step one. In most cases, the company seeking the vehicle will be GST registered, and that provides other incentives. These days, there is no “best” time to buy. Most companies acquire vehicles on a seasonal basis that matches their business cycle, such as kiwifruit harvesting. Mike Farmer, Group Managing Director at Farmer AutoVillage, says March was consistently a strong month for sales, but others time it to coincide with their

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BY PAUL DYKES

financial year or forecasting. “Some companies hire purchase instead of lease to get the full year depreciation in the first year. That doesn’t occur in leasing. “Leasing stays off the balance sheet. It’s a straight monthly expense. That way all the cash stays in the business – in some cases that money is far better to be within the business working at a higher rate of return than the rate of interest.” He says the split is close to 50:50 between leasing and hire purchase (HP), with about 20% of company vehicles purchased outright (not necessarily with the company’s own money). “Some companies prefer HP to claim the depreciation and the GST back on the purchase price of the car. With HP, you can structure the payments more easily. This might help a seasonal company to pay less in its off-season months.” He says leasing is a purely linear arrangement, except you chose the deposit price (like an advance rental) and the residual value (RV). As an example, a $10,000 car might have a $1,000 deposit, 24 monthly payments of $600 (paying interest only compounded into the monthly payments) and an end-of-term RV of $3,000. At the end of the term you can either pay $3,000 and take full ownership or refinance the $3,000 over a period of time. The main leasing terms are Operating Lease and Finance Lease. With an Operating Lease, the vehicle is owned

100% by the lease company – like a rental. The costs are 100% tax deductible. “But you are bound by monthly payments based on their car’s value by the end of the contract term. You need to nominate the kilometres you’ll travel over the term and if you exceed them there are penalties as the RV reduces.” Larger companies tend to go for the Operating Lease so they have no worries with fleet management issues and at the end of the term it’s a straight handover. Any damage will be charged back. Finance leases are similar to an HP agreement. “It’s not over-costly to go upscale to provide motivation for staff. This can deliver huge benefits in terms of kudos and status in the company and among their mates.” Mike Sheaff, Manager at Sheaff Vehicles, says there is still some evidence of spending before the end of the financial year, but a lot of activity relates to hiring extra staff members or taking on more tradespeople. The dealership specialises in Ssangyong, with about 60% being sold to private buyers. The rest are for companies, with about 20% electing for HP, often with pre-approved finance. “My view on this is that leasing tends to work for the bigger companies running large fleets. There is no capital outlay and the vehicles often tend to be charge-out vehicles so the costs can be recovered through the vehicle’s mileage.

THE ULTIMATE BREAKDOWN Mark Rouse, Ultimate Motor Group Business Manager, provided the following explanation. Buying on HP Buying a vehicle is a fairly straightforward process. You borrow money from a lending institution and then make monthly payments until the loan is paid off. As you make payments, you gain equity in the vehicle until it’s eventually all yours.

“Leasing works in those situations. You know exactly what the vehicle is going to cost you per kilometre and you can charge that on to your customers so it costs the company nothing.” Others are happy to pay a set amount per month and carry the risk of accidents and repairs. “For small companies (one or two people), the ownership options appeal. They might take a structured HP deal with no (or low) deposit, an increased term (perhaps five years) and a lumpsum repayment. This provides flexibility around financing. “The trade-off is they have an asset – they own the vehicle. There are tax advantages, but there is not a big difference between owning and leasing other than fringe benefit tax. You can also claim depreciation and GST if you’re the owner.” In each case, the car is going to drop in value and the customer is just spreading the cost of that devaluation one way or the other. “We’ve had a good run since June – our numbers are well up, especially with Ssangyong. In the past couple of months the LDV vans have gone well, which is a reflection of whole tradesperson sector. And the Ute market is very strong. They are very practical vehicles.”

You can keep the vehicle as long as you like and you can do whatever you want to it, from installing aftermarket accessories to giving it a custom paint job. The only penalty for modification or abuse could be a lower resale value when you sell it or trade it in. Because you’re typically paying back the entire cost of the vehicle (minus any trade-in or down-payment amounts), the monthly payments on a loan are higher than when leasing. And when you’re ready to get a new car, you need to either trade in or sell your old one. Operating lease On the surface, leasing can be more appealing than buying. Your monthly lease payments are typically much lower. Then, after enjoying the most trouble-free three or so years of the vehicle’s life, you bring it back to the dealership and either lease another new one or simply walk away. There are other advantages to leasing: • There’s often no down-payment required when leasing, or only a low one. • You can drive a higher-priced, better-equipped vehicle than you might otherwise be able to afford to buy.

Finance lease A finance lease offers possible tax benefits while improving your cash flow, so your own cash or credit facilities remain intact and ready to invest back into your business. You can tailor your monthly payments to suit your budget, i.e. by selecting your term and agreed RV. Because the monthly payments are fixed and known in advance, you have total control over your budget. You can recover the monthly GST on the lease payments throughout the loan term. At the end of the lease term, you have options available to you: • Pay or refinance the residual and own the vehicle. • Sell the vehicle privately, pay the RV and retain any profit. • Trade in the vehicle and start again. A lease is a good option if you like to get a new car every few years and keep up with the latest technology. If you purchased a new car every few years, you could end up with loads of negative equity. All in all, you free up valuable working capital for investment in your business and remove a depreciating asset from the balance sheet and the monthly lease price you pay is normally the same as HP on a second-hand vehicle. Example: Finance Lease on a new Ford Ranger, XLT, 2WD, Double cab, Auto A 48-month/45,000 km finance lease is $769 per month including GST, with a $23,000 RV.

• You don’t own the vehicle. You get to use it, but must return it at the end of the lease. • You’re always driving a late-model vehicle that’s usually covered by the manufacturer’s warranty. It’s a bit like having a long-term rental car.

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MYTHBUSTING AND THE COMPANY CAR Operating leases vs buying

BY SUE DE BIEVRE

SUE DE BIEVRE

Quite a few misconceptions float around the question of whether to lease or buy an asset for your business. Myths arise from what we want to do, as opposed to what’s best for our business – shiny new ute, anyone – or from what works best for the salesperson you’re talking to. This article looks only at operating leases, that is, leases where you pay a set amount each month, but you don’t end up owning the asset. The mythology is also helped by the fact there is no hard or fast answer – sorry about that. Myth: There’s less commitment with a lease.

Fact: But you can also claim your depreciation for tax purposes, so it often works out pretty much the same. There is rarely a significant tax difference between buying and leasing. Myth: It’s cheaper to lease. It feels cheaper because you don’t have to pay now, or even provide a deposit. Fact: It’s usually more expensive. You pay for the convenience. Myth: But if it breaks down, it’s not my problem. Maybe, maybe not, check the lease. Fact: It all depends on whether you have that in your lease agreement. You get charged more to have that kind of cover and if it’s a new asset, would you need that added protection?

You don’t have to find that large chunk of cash, so it feels like your commitment is not as high when all you have to do is sign here.

Myth: Owning an asset is the best option.

Fact: There’s way more commitment with a lease. Once you’ve signed that lease agreement, you really have no (easy) out for the term of the agreement. You have to keep paying for the 36 months (or whatever the term is) no matter what else happens in your business world. If you’ve bought an asset, all you have to do is sell it again.

Fact: If you have the cash, it may well be. However, do you always want to wait for cash surpluses before expanding your business? Sometimes there is a business case for buying or leasing now to generate further revenue, even if the finance options cost slightly more.

Myth: It’s better for tax purposes to have a lease. Because it’s fully deductible every month, right? This is what every salesperson will tell you. And it’s completely true.

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Buying an asset outright is the best option – no finance, no strings attached.

So how do you decide? 1. How much extra revenue will the asset generate? Or how much will it save on costs? For example, buying yourself a shiny new ute may well make economic sense if your old one is costing you a lot on maintenance.

2. Whatever the asset is, do your homework. Compare all options from a second-hand asset to a range of new options. What’s the cost? Is the seller offering any great deals on loans? 3. Check out a range of options from the seller to your bank to find the cheapest interest rates you can. 4. Compare against buy versus lease costs. For example, you need a $10,000 asset and you can finance at the bank rate of 8% and at the end of 3 years you estimate the value of the asset will be $3,000, or you can ease over 3 years at $300 per month. Buy = Interest of $1,281 + $7,000 = $8,281 Lease = 300 x 36 = $10,800 However, it may feel like the lease is better because the repayments at the bank would be $313 per month, as they include the principal amount. 5. Consider also how much commitment you want to this asset. If you need to get rid of it before the term is up, then buying is definitely a good option.

*Sue de Bievre is CEO at accountancy software provider beany.biz

Questions

Hire Purchase (Credit Agreement)

Finance Lease

Operating Lease Non-maintain

Do I own car at start?

Yes

No - finance company does

Do I own car at end?

Yes

Yes - you are responsible for the residual

No ownership - return car

Deposit?

Flexible

Minimum of one month’s lease payment or lump sum

Minimum of one month’s lease payment

Monthly repayments?

Yes generally

Yes

Structured lump sums?

Yes - the most common type of finance

Fixed monthly with a residual at end

Responsible for residual or balloon end?

Yes

Yes - hirer meets any shortfall between residual and market value

Not applicable - return car

Term?

Up to 60 months

Business 6-45 months (passenger) Business 6-60 months (commercial)

Limits to km travelled?

Not applicable

Not specified but affects RV

Contract is based upon km

Excess km?

Not applicable

Not specified but affects RV

Liable for excess at agreed rate

Balance sheet

Yes

GST

Yes - in full at start

Claim as you make payments

Depreciation

Yes - 30% DV for used

No - lease payment is fully deductible

Business and Tax Deductions

35% DV for new

No - lease payment is fully deductible

Interest

Yes - spread over term

No - included in lease payment

FBT

Yes - if purchased by business

Yes - if leased by business

Notes: Table provided by Ultimate Motor Group Please seek independent tax advice on terms.

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YES WE CAN Students in the business world Nearly 200 local students will get a taste of the business world this year through The Lion Foundation Young Enterprise Scheme (YES). The programme is run nationwide by Young Enterprise and coordinated locally by the Chamber, and is about to kick off for the year. Young Enterprise has been working with schools for more than 30 years. Their aim is to promote economic literacy, business understanding and enterprise with youth. Their flagship programme YES helps secondary students set up and run a small business for a year. Students invest real money, produce real products or services, pay real taxes and keep the real profits. Nationally, more than 130 schools and 3,000 students take part in the programme. Locally, there are up to 7 schools and 180 students each year. Working with Young Enterprise Scheme fulfills many of the Chamberâ&#x20AC;&#x2122;s goals and values and the Chamber is proud to support this next generation of entrepreneurs.

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Regionally, the programme gives the students a great opportunity to realise their uniqueness, develop their strengths and entrepreneurial skills, work as a team and be rewarded by earning some revenue. On a personal level, the students develop social skills by working and having to deal on a day-to-day basis in the commercial world. The teams begin the year in February by developing an idea for a product or service. From there, they spend the year building their business plan and company, developing the product or service, and then going into production and sales. Their company is created, run and wound up or sold within eight months. Teachers and business mentors play critical support roles for YES students. If youâ&#x20AC;&#x2122;d like to support a YES company through the year, please contact Emma Harvey on 07 577 6141.

Do you want an Effective, Affordable and Sustainable way of profiling your business to a wide range of potential customers, on a regular basis?

NZ BuSiNESS MArkEt DAtES ASB Arena at Baypark 81 truman Lane Mount Maunganui 20 April

- Focus on SMEs

18 May

- Building tauranga

15 June

- New Beginnings

20 July

- Young Entrepeneurs

17 August

- Women in Business

21 September - Business transformation

www.nzbusinessmarket.co.nz | info@nzbusinessmarket.co.nz | 027 281 6302

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AWARD WINNER EYES GROWTH BY MONIQUE BALVERT-O’CONNOR

Expansion plans for record-breaking games

AIMS FOR SUCCESS Tauranga Intermediate School principal Brian Diver won the prestigious Excellence in Business Leadership award at the Westpac Tauranga Business Awards. Not only does he head New Zealand’s largest intermediate school, he is also the mastermind behind the idea of establishing the hugely successful AIMS Games. The AIMS Games has become a flagship Tauranga event of great sporting and financial significance to the city and its surrounds.

It was on a road trip, with a professional of similar ilk, that the AIMS idea was first officially mooted. Brian Diver was travelling with Otumoetai Intermediate School principal Henk Popping when he voiced the concept of an annual Tauranga-based sporting event for 12 and 13 yearolds. The meritorious idea quickly gained traction and the Association of Intermediate and Middle Schools (AIMS) Games debuted in 2004, attracting 750 students from about 17 schools, competing in four codes.

“A driving ethos is that it provides an opportunity to learn to win or lose with humility and dignity. It is a great tool for young people to learn at this age to equip them for the future,” Brian says.

In 2014 an international flavour was added to the event, with this becoming a biennial occurrence. Indications are that competitors from three Australian schools, plus a Cook Island contingent, will travel for the 2016 AIMS event.

“I am about details and monitoring. You have to check and monitor the small things – do them right and the big picture falls into place.”

The guiding light for all, he says, are three visionary and strategic ideas which have formed the very basis of the AIMS Games.

The AIMS Games are scheduled annually for September, a time relatively quiet on the tourism front, hence an opportune time to bring money into the community for the benefit of the community. Idea number three recognises that children of intermediate age enjoy, and can benefit from, competition.

Last year 8,009 young sportspeople took part from 250 schools nationwide, competing in 19 codes, and accompanied by more than 1,500 coaches and managers. New codes are offered all the time, with sailing, for example, introduced last year, while canoe slalom and BMX will be offered for the first time this year.

It has been a whirlwind success story, involving an able team of volunteers (of which Brian is one), headed by the AIMS Trust, capably executed by event organiser Vicki Semple, and assisted by 20 stakeholders (representing 20 different sports). These people are all integral to the structure and success of the AIMS Games story, Brian says.

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Idea number one is to provide an opportunity for intermediate-school aged emerging athletes – irrespective of the context in which they are educated – to compete against their peers. Idea number two is focused on promoting Tauranga Moana as an outstanding place to visit.

In organising such a mammoth sporting event it is crucial, he says, to be pedantic about the detail.

Details associated with financing are on Brian’s radar at present as the Trust aims to wean itself off sponsorship. “We have been very dependent and appreciative of key sponsors, which include The NZ Community Trust, Tauranga City Council, TECT and Fonterra, for example, but our business model now is to move toward producing our own income.” This will be generated through business activities associated with the games – such as food and apparel vendors – contributing a proportion of their takings.

The more the international involvement can be expanded the better, as this too creates a revenue stream, Brian says. The Asian market is being looked at, and hence the introduction of table tennis and badminton to the offering in recent years. “We offer a one-stop, turn-key experience. We meet our overseas competitors at Auckland airport and farewell them at the same airport; and we do everything in-between.” Where to from here? Brian is confident AIMS has a wonderful, Tauranga, future. For starters, there is no likelihood of other cities taking this away from Tauranga, Brian says. “This is a perfect venue for it and we are very grateful to the city for the magnificent support we are given in terms of venues, etc,” Brian says. He says there is no reason why participant numbers can’t expand in many codes (with the exception of those with facilities that will not cope). “There’s also no reason why numbers won’t get to 10,000, but expansion cannot occur too rapidly as AIMS’ integrity and performance standards must be retained,” Brian says. And what of Brian in relation to the future of AIMS? It looks as if his name will remain synonymous with this success story for some time yet. “I have no intention of retiring or giving this up,” says Brian, who has always loved sport. “I will be here as long as I am wanted. It is a privilege.”

Brian Diver

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HOME SAFE FROM WORK BY PAUL DYKES

Make health and safety part of your workplace culture All employers will be caught up in new legislation that is designed to provide a balanced framework to secure the health and safety of workers and workplaces.

of industries throughout New Zealand, giving strategic, compliance and best-practice advice on non-contentious matters as well as providing representation in disputes.

The Health and Safety at Work Act 2015 comes into effect on 4 April 2016, bringing in a raft of changes that will have a significant impact on many businesses.

She says the new law is part of a reform package aimed at reducing the number of serious work-related injuries and deaths in New Zealand by at least 25% by 2020.

Kate Ashcroft, Principal at Copeland Ashcroft Law, says employers will need to review and revise their Health & Safety (H&S) structures to ensure they are ready to comply with these changes.

“We know too many people die or are seriously hurt while working in New Zealand. Our workplace H&S record is poor by international standards.

“To prepare for the H&S changes, businesses need to understand what is changing, and work out what this means for them,” advises Kate. “The Act uses new terminology and concepts. A great way to get to grips with the basics is to look at the WorkSafe New Zealand website, particularly the mythbusting section. “Businesses need to think about how the Act applies to them, and whether any changes are necessary to company insurances, governance processes (to meet the “due diligence” duty) and their H&S plan.

“According to the WorkSafe New Zealand website, 52 people die while at work every year, hundreds more are seriously injured, and as many as 900 die from workrelated diseases.” The H&S legislation is intended to be accompanied by changes to employment law in April, once the Employment Standards Legislation Bill is passed. That Bill will address unfair employment practices such as zerohour contracts by setting requirements for agreed hours of work and cancellation of shifts.

“This will need to be audited and revised to update the wording and concepts it refers to in regard to employment agreements and role responsibilities as well as worker participation processes.”

“It will also require employers to consult regarding deductions from remuneration and prohibit unreasonable deductions, restrict unreasonable prohibitions on secondary employment, extend paid parental leave to more workers and increase flexibility and strengthen the enforcement of employment standards.

Kate is an employment law and H&S specialist based in Tauranga, and she acts for employers across a range

“To understand how the new law applies and to ensure compliance, professional advice is recommended.”

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FIND SPACE FOR ROCKET Young professionalsâ&#x20AC;&#x2122; launch pad

Rocket provides monthly inspirational and educational events aimed at assisting individuals who are on the launch pad of their business careers and looking to gain an edge to propel themselves to new heights. A voluntary team of young professionals working with the Tauranga Chamber of Commerce provide this formal network to help develop and enhance personal and career progression, as well as their social life. The Rocket committee strives to provide a cross-section of event topics to cater for a wide range of personal needs. Rocket recently combined with the Priority One Young Professionals group, and will take a stronger approach to advocacy with a particular focus on wattracting and retaining talented young business and professional people.

Rocket Young Professional events are business focused, with either an educational or motivational push and they form a great networking platform. The events can be as diverse as bowls at the Mount Club to having a focus group on the Civic Heart. Once a year Rocket Young Professionals get to dress up for the Young Read Woudberg Awards and Ball, where our best local young business people and leaders are recognised as Young Business Owner, Young Innovator and Young Employee. What is especially pleasing is the high level of talent and skill discovered in the younger generations.

Kate is an employment law and health and safety specialist based in Tauranga and is passionate about providing commercially pragmatic, tailored solutions to client issues. She is a principal with Copeland Ashcroft Law, acting for employers across a range of industries throughout New Zealand, giving strategic, compliance and best practice advice on non-contentious matters as well as providing representation in disputes. Kate Ashcroft - Principal

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SUCCESSION PLAN VITAL FOR FAMILY BUSINESSES Family businesses play a major role in the New Zealand business landscape, yet the significant majority of family businesses are in their first generation, indicating a certain lack of longevity.

A lack of succession in our family businesses detrimentally impacts on the country’s economy in terms of provision of employment, GDP per capita, as well as business growth (Decoding Family Businesses – Rebecca Hirsch, University of Auckland NZBLQ126). Studies show that an incumbent’s inability to let go is the most cited barrier to effective succession. If the incumbent is too attached to the business, the potential successor might not be given the opportunity to develop the skills or earn the respect necessary to manage the business. Letting go, however, can be a doubleedged sword and history will show that letting go is also a path littered with disaster tales. Therefore, letting go in a planned and managed process offers the best chance of success. The transition of the ownership of the business should not happen overnight and it needs planning, discussion and commitment.

From the incumbent business owner’s point of view, it is much easier to let go if the first stage of the transition is not too intimidating. An initial stage allows everyone to get comfortable with change, allows the incumbent to assess the contribution of the successor, and allows the successor to gain confidence over time. Implemented correctly, it is akin to putting the training wheels on before going solo. One of the best ways to enable staging to happen is to develop a management succession plan first and have this implemented over time before ownership succession is implemented. It is easier for the incumbent to implement management succession to whatever degree the incumbent is comfortable with, if the incumbent still retains control of ownership of the business. This also provides the opportunity to set a review date so that at an agreed time progress with the initial stage will be reviewed, preferably with the assistance of an independent advisor.

If all is going well, then the incumbent may consider moving to a further stage. If not, then the incumbent can either defer making a further decision until the desired outcomes have been achieved, or alternatively formulate a new direction. This way, there is less risk for the incumbent. Also, this way a firm message is given that performance is required and the successor is given the opportunity to get his or her feet under the table in a more comfortable environment. Sometimes the best plan is not succession. However, getting to that point is just as important as planning for succession. This is because the decision means that a different course of action will be needed by those who get to that point. Staging the transition is a key ingredient for successful succession of any business, but particularly family businesses.

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ECONOMY BATTING ON WELL The New Zealand economy had a pretty good innings in the past year. The combination of solid growth and low inflation put us in an enviable position compared with many of our trading partners.

We’re also facing headwinds closer to home. First, we’re looking at another year of low dairy prices. This will be a significant drag on agricultural earnings, and will inevitably spill over to the economy more generally.

the economy’s consumer base and its productive capacity. At the same time, there’s a large pipeline of construction work outside of Canterbury, particularly in Auckland. We’re also seeing strong growth in tourist arrivals.

But by the end of the year, a few cracks had started to appear. As we look to the year ahead, the question is whether we’re about to take that long walk back to the pavilion, or whether it’s just that the economy’s run rate is easing off. So, what are some of the big factors that will be shaping the economic outlook?

At the same time, changes in lending restrictions and the taxation of capital gains have prompted a slowdown in house price inflation in Auckland.

On top of these factors, New Zealand is experiencing very low rates of inflation. While much of this is a result of low global oil prices, prices more generally have remained subdued.

On the downside, the global economy remains rocky, with particular concern around softening growth in China and emerging markets. As well as dampening global trade, this has resulted in ructions in financial markets and is weighing on the prices of many global traded commodities.

Up to

Finally, while reconstruction activity in Canterbury will remain strong for some time yet, from late 2016 it will start to gradually ease back, resulting in a drag on GDP and employment growth. But, despite these challenges, we are looking at a slowdown in growth – not a collapse. Several factors are continuing to support demand. Strong net immigration is resulting in the fastest population growth in decades, boosting

This has prompted the Reserve Bank to cut the Official Cash Rate to 2.5% (equal to the record low reached during the financial crisis), putting money back in consumers’ pockets and helping to push the New Zealand dollar lower. And, with inflation set to remain low as growth eases off, it’s likely that further interest rate cuts will be on the cards this year.

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STEPS IN TO THE FUTURE BY PAUL DYKES

Waterfront plans awash with support A draft concept to provide public access to the water’s edge along The Strand in Tauranga has attracted a lot of positive comment and support from the public.

Many of the responses from all quarters suggested the Council should just get on with the work as soon as possible – many respondents saying such a revamp of the waterfront area was long overdue.

Morgan Jones, Tauranga City Council’s Project Leader City Development within the City Transformation Group, has been soliciting responses through a number of channels, including online and at public events.

Judging by the responses, there is wide support for the tidal steps and pier option. But many people want the Council to go further, to think bigger, to utilise the whole strip from The Strand along Dive Crescent to the Harbour Bridge.

One novel approach was to hand out postcards over two days to people walking in the CBD. In all, 340 postcard responses were received as part of the formal public consultation process.

The Council has just completed an upgrade of the Dive Crescent shoreline, prompted by concerns over erosion. The road reserve and recreation reserve have been slowly eroded away

– threatening the viability of the road, footpath and pohutukawa trees. Morgan says Dive Crescent is a vital link to, and from, the Tauranga city centre and provides a strategic pedestrian link between the Waterfront/Strand redevelopment and the Harbour Bridge. “Reconstruction in this area includes a 3m-wide pedestrian and cycle pathway, increased vegetation where possible and the installation of landscaping and streetscaping. The total cost of this work is about $850,000.” It seems there is no shortage of ideas for the downtown waterfront area. There were calls for a boat ramp at the Matapihi rail bridge, increased moorage facilities for visiting boaties, designated fishing areas and extensive playground activities. One respondent would like to dam the Waikareao Estuary at Chapel St to make a permanent recreational lake. “Anything that connects people to the water is a great thing,” says one respondent. “The more you can open up the waterfront the better,” says another.

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There were strong opinions regarding the car park along The Strand. “The current use as a car park is a waste. We need activity right on the waterfront,” says one. “Why do we have a car park at the best place for views of the harbour, asks another. And: “Our cars don’t need the best view in town.”

CHAMBER WINS SME CONTRACT Extra help for local businesses The Tauranga Chamber has been re-selected to lead the delivery of the government’s Regional Business Partnership for the next five years.

“The selection of the chamber to once again lead the delivery of the programme in the Bay signifies confidence in our capability to reach SMEs in the region,” said Tauranga Chamber of Commerce Chief Executive Stan Gregec.

Tauranga will work with the Rotorua and Eastern Bay Chambers of Commerce to deliver the programme, together with regional partners ExportNZ Bay of Plenty and the Poutama Trust.

The funding supports the chamber’s business advisor programme, which includes regional business advisor Jason Stockdale and a support team in Tauranga, and Phil Becker, based in the Rotorua Chamber, who also advises the Eastern Bay Chamber.

The addition of Poutama Trust, a Rotorua-based independent, pantribal Maori business development organisation, reflects the chambers’ understanding of the importance of the growing Maori economy to the region. The programme, which is jointly funded by New Zealand Trade and Enterprise and Callaghan Innovation, is targeted at the small-to-medium enterprise (SME) sector and has been rolled out to almost 10,000 businesses across the country in its first five years. Since 2011, 734 SMEs have benefited from the programme across the wider Bay of Plenty.

Small Business Minister Craig Foss said the partners were local hubs of business development know-how and R&D expertise for companies, with the work of the advisors being of particular value. Stan said a new development was the addition of delivery of Business Mentors New Zealand services by the regional partner. The mentors programme used to operate separately.

shop for all the government assistance programmes that are on offer in the Bay,” he said. The other main elements of the partner programme include: • Assessment and advice: Business advisors within each region assess businesses’ needs and provide direct advice, connections and support. • NZTE Vouchers: Capability Development Vouchers allocated to clients to fund up to 50% of the cost of specialist business support and training (up to $5,000 per voucher), with participating companies funding the balance. • Callaghan Innovation R&D support: Grants to pay for 40% of external R&D costs (up to $5,000) and support for applications for larger R&D project grants (up to $250,000). Partners will also act as a shop front for Callaghan Innovation’s other (nongrant) services.

“This allows us to add significant value to those relationships because we are now a much more efficient one-stop

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Tauranga CBD tertiary campus Thanks to support from the Bay of Plenty region and the Tertiary Education Partnership, students who are starting secondary school now will have great options for tertiary study in the Bay from 2020 with the development of the Tauranga CBD tertiary campus. Initial programmes on offer will relate to areas of regional activity, including marine, ICT and logistics. The University of Waikato is leading the development on behalf of the Bay of Plenty Tertiary Education Partnership. We’ve recently appointed Greenstone Group to manage the design and build of the new campus, while Jasmax have been appointed as architects. Currently, we’re continuing to work closely with iwi, community, our tertiary partners and other major stakeholders on the project.

The Tauranga CBD campus development is made possible through the commitment from the BOP region. Thanks in particular go to three key funders, Tauranga City Council, Bay of Plenty Regional Council and the Tauranga Energy Consumer Trust (TECT). To keep up to date with campus developments visit waikato.ac.nz/tauranga-campus

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Steve Turner and Diresh Dodanduwa

ATTRACTING THE TALENT Making the most of IT Diresh Dodanduwa is an information technology specialist who has been working for largescale companies globally for the past 20 years. Last year this Sri-Lankan skilled migrant decided to make Tauranga home. Diresh has teamed up with Tauranga local Steve Turner and the two are now CreativeQ business partners. Steve, who started the business four years ago, says he saw an opportunity to take CreativeQ to another level. Someone with a global perspective was required, and “a chat over a couple of coffees” ascertained Diresh fitted the bill. CreativeQ is a development business with specialties in software, applications, mobile and website development, plus business optimisation from a technical perspective. The company also serves as technology partner for creative industries, and this is a growth field, Steve says.

It is a company based in Tauranga with clients throughout New Zealand and overseas. That global span encompasses Ireland, the UK, the USA, Singapore, Australia, Sri Lanka and India. “We have various clients in these countries,” Steve says, “and the overseas aspect is growing. But we want to keep things in balance in terms of domestic work too, as we want our global base to remain here.” Both men are passionate about Tauranga. In earlier days Steve travelled the world as a musician – “but Tauranga was always going to be home. I could never get my head around living anywhere else.” Diresh says he saw an advertisement depicting the beauty of Tauranga, and the city has more than met his expectations. It is the perfect place for work-life balance, he says, which is especially important in such an “engrossing” field of work.

They say the city functions very well as a base for their business. “Because of the port it is a great point for finding global connections. A lot of companies have representation here as it is their logistics headquarters,” Steve says. Theirs is a field that works so well globally too because of the Internet. Diresh sees New Zealand as a country of great potential. That potential, from a CreativeQ perspective, lies in assisting with business optimisation through software. “Our objective is to help New Zealand businesses to really compete in the global market,” Diresh says. He says it is “a blessing” to bring the UX/UI technology he has learnt to Tauranga and New Zealand. Steve says Diresh’s experience has been a key part of CreativeQ’s business growth over the past year. Revenue has doubled and client numbers continue to grow. Clients are in industries such as manufacturing, construction, legal, lumber, kiwifruit, agriculture and entrepreneurial start-ups.

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SNAPPED EVENTS BA5 @ ASB ARENA

01. ASB Arena 02. String Quartet 03. Clare Rickerby, Savannah Blake 04. Kirsty Buxton, Wanita Wood 05. Carl McOnie, Mark O’Donnell 06. Sian McAllum, Mark Deaton, Wendy Coulter 07. Donna Jarden, Stan Gregec 08. James Moran, Dinnel BaileyGordon, Alister Moran 09. Nick McDonald, Colin Derrick 10. Carly Shorter, Wayne Shadbolt 11. Kate Walker, Sarah Jesson, Margaret Holmes

BA5 – SPIRIT OF GOLD - PARALYMPIANS COMPETING IN THE 2016 PARALYMPICS

12. Rachel Froggat 13. Chloe Wickman, Stan Gregec, Rachel Froggatt, Susan Reid 14. Sean Tretheway, Susan Reid

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SMART PLACE FOR BUSINESS Top facilities available The Smart Business Centre is the innovation and enterprise business hub in Tauranga. While not strictly a co-working space, the Smart Business Centre is a space with a number of businesses co-locating. It has worked very successfully for the past nine years largely because of the mix of agencies that thrive by collaborating and benefiting from these business connections. While the space has grown and introduced other businesses, they all see the benefit of being together and working closely with each other. Apart from the co-locating of businesses, there are meeting rooms and a computer suite that are also hired out to members and to the public. The computer suite is particularly useful as it has 15 computers â&#x20AC;&#x201C; perfect for

new program introductions for your company when you need the staff to be together for training or upskilling. The spaces that are available are from smaller meeting rooms through to a versatile training room for up to 50 people with theatre-style seating. A boardroom is also available. The Smart Business Centre is located at Chapel Street, which makes parking and out-of-hours operation very easy and accessible. Out-catering is effortless, with numerous options available right at the Bay Central Shopping Centre. If you would like to take advantage of these facilities, please contact Monique van Aken (E: reception@ tauranga.org.nz).

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UPSKILLING THE MANAGERS BY PAUL DYKES

Business and strategy diploma A new graduate course has been launched in Tauranga that aims to teach managers how to manage a business in a fast-changing world. Stellaris has created an eight-module programme that will be taught every second weekend in Tauranga so those selected for the course can continue in their roles. It is a graduate-level course designed for those with the ability to become senior managers or business owners. The qualification, which is approved by the New Zealand Qualifications Authority, is the result of extensive consultation with business owners and executives across the country. Ron Scott, who was instrumental in developing the Diploma in Business &

EVENTS AND TRAINING

Strategy course, says he has seen so many able managers who just need a practical course to make the jump to excellence in management.

MARCH 22 Tuesday

Acceptance is by selection.

Craig Foss Minister of Small Business

Modules cover economics for business, strategic marketing, corporate communications strategy, organisational behaviour, strategic resource management, finance for strategic managers, global business strategy and a research project. Knowing that a manager has developed a strategic outlook is a vital part of the appointment process, Ron says, because it makes such a difference to the achievement of that manager or business person.

1.00pm - 2.30pm

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APRIL 05 Tuesday 9:00am - 12:30pm Health & Safety at Work Act

06 Wednesday 5:15pm - 7:00pm BA5

13 Wednesday 9:00am - 4:30pm Leading Effective Teams

MAY 04 Wednesday 5:15pm - 7:00pm BA5

12 Thursday 9:00am - 4:30pm Health & Safety Representative Training

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