Starting and Operating a Business in New Zealand

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Starting and Operating a Business in New Zealand

  1. 1. Starting and Operating Your Business Useful Information:  Business Questionnaire  Business Structures, Registering Trade Marks and Company Names  How Your Business Structure Affects Tax  Registering a Company  Trade Marks  Keeping Good Records  ATEED and TEN  Franchises  Ten Reasons Why You Need Content Marketing  The Revolution in Telecommunications - VOIP  Eight Tips for adding Value to your Telecommunications  How to get a Mortgage if Self-Employed  Are You Signed Up for More Business Inside this issue: Other topics in the Linku2 Booklet Series Babies and Toddlers Business Services Education and Training, Clubs and Community Getting Married Health and Beauty, Sport and Recreation Motor and Marine, Industrial and Rural Property: Real Estate, Building and Development Senior Living Shopping and Dining, Living and Leisure Visiting the Hibiscus Coast and Rodney Adverts can be taken in these booklets independently or are free with Linku2 Hibiscus Coast Web Business Plans. Plans start from just $25.00 pm. For further details contact Sarah on Phone: 428 0204, Email: admin@linku2hibiscuscoast.co.nz or visit our website at www.linku2hibiscuscoast.co.nz (Rates subject to change - for up to date information visit the website) Linku2 Community services are kindly sponsored by Pak n Save Silverdale helping us support our local Community
  2. 2. BUSINESS QUESTIONNAIRE Before you even start a business you need to be absolutely sure that is what you should be doing and be prepared for some tough times ahead. Yes, it’s never just plain sailing so, even if you are already running your business, going through a few simple start up questions can often give you an insight into some things you should consider before starting or putting in place early. Questionnaire - Are you suited or prepared for the challenge of starting a business? Answer 'yes' or 'no' to the following questions. Answer honestly, there is no point in deceiving yourself about your business prospects. Commitment and passion Do you have a real passion for what you want to do? (It will be difficult to maintain your interest or sell products or services to others unless you are enthusiastic about what you do.) Yes / No Is the business in an industry you enjoy and can perform well in? (You may like the thought of owning a restaurant, tourism business or retail shop, but do you know what's involved in running these businesses?) Yes I No Do you have the drive and persistence to overcome obstacles and keep going? (Persistence is a key to success.) Yes/No Are they aware of the time and effort you will have to commit to the business to get it going? Yes / No Are you prepared for the impact buying a business is likely to have on your personal and family life? (You might have to work long hours at first.) Yes / No Do you have the support and und understanding of your family and partner? Yes / No Business idea Have you talked to experienced business people (not just friends and family) about your business idea? Yes I No Do they think it is a good idea? Yes / No Has your idea worked before (for example, in other countries or regions)? Yes / No Is your idea sustainable? Yes / No IMPORTANT INFORMATION FOR NEW BUSINESSES AND THOSE WHO WANT TO GROW Get a dedicated computer expert for a fraction of the cost! Earn more. Spend less. Computer Sales  Computer Servicing Business Solutions 1 Orewa Square, Orewa 17 Neville St, Warkworth Ph: 09 427 5548 www.tailormadecomputers.co.nz
  3. 3. Do you think your idea is better than any potential competition? Yes / No Can you protect your idea, trademark or brand from copying? Yes / No Have you checked if you need resource consent? Yes / No Experience and skills Do you have experience in the activity or industry you wish to enter? Yes / No Do you have any small business experience or skills (for example, financial, marketing, sales or management skills)? Yes / No Are you willing to gain business skills before you start your business? Yes / No Business planning and research Have you completed a business plan? Yes / No Have you done any formal market research to test the feasibility of your business plan? Yes / No Have you test marketed your product or service to find out if there is demand for it? Yes / No Do you know who the competition is? Yes / No Is the business able to compete effectively against the competition? Yes / No What opportunities exist for growth? Yes / No Do you currently have an income from your idea or existing customer(s)? (For example, from a hobby you believe can be scaled up to a business?) Yes I No Do you have a marketing plan to put into operation? Yes / No Do you have a back-up plan if anything goes wrong? Yes / No Funding the business Have you prepared a budget for the start-up costs of the business? Yes / No Have you discussed with your accountant and business advisers the start-up costs of the business? Yes / No Can you raise enough money or back-up funding to support you until the business starts producing a profit? Yes / No Can you access extra funds for unforeseen circumstances and crises? (Things always cost more than you anticipate.) Yes / No Are you sure that you will not be taking on more debt than the business will be able to repay? Yes / No Scoring For every 'yes' answer, give yourself one point and add up your total. Ideally you want to be able to answer 'yes' to each question. In practice, this is unlikely to happen because, for example, you might have strong skills in making your product, but lack business experience. However, you can improve your score by improving your skills.
  4. 4. How to improve your score Keep working and building your skills to achieve a higher score. For example: Business idea Find out about protecting your idea through trademarks and copyright and find out if you need resource consent. Experience If you lack experience in the industry you wish to enter, think about working for someone else in that industry. For example, if you love cooking you may want to open a restaurant so try working in a restaurant (if necessary volunteer your services) for a few months. Or ask if you can observe the business for a few days. You may discover that the reality differs from what you imagined. You will certainly get to know the challenges of the restaurant business. Note: You may be sold a business on the basis that 'you don't need any experience in the industry' but this is seldom completely true. Every industry requires some specialised knowledge. If you are already running your business continue to up skill, learn and know what’s coming up in your market. Business skills If you lack certain business skills then register for training. There are lots of courses available through your local college or through New Zealand Trade and Enterprise. Read, information is so readily available nowadays it usually doesn’t take much to find tips, hints and articles on all aspects of your particular business. Business plan If you haven’t completed your business plan yet then do so! There are a number of publications that can help you and lots of books and resources you can get hold of or refer to a business specialist for advice. As you grow and develop review your business plan regularly. Make it a key part of your strategy to assist in your growth. If you need you can find a business plan template at www.business.govt.nz Research Market research is a critical and technical step. The more thoroughly you research the feasibility of your business idea the better. Do not rely on your friends and family telling you it's a 'great idea' because they may be trying to encourage you. If possible test market your idea, product or service to establish demand. It is important to ensure your business idea will work. Think about engaging a professional company to conduct the market research or get help to complete a formal market research process yourself. If running already this is always good as an on-going exercise, find that unique aspect of your business and tell everyone about it! Everything in Coffee News is fun and entertaining! For further information or to advertise your local business call Catherine or Brendon today! Ph: 427 8455, Mob: 021 036 9518 Web: www.coffeenews.co.nz
  5. 5. Research who your competition will be and the current market value of similar businesses. To research the market and industry use industry organisations, the library, the internet, and Statistics New Zealand. Statistics New Zealand provides information on industries, visitor numbers, household incomes, growth industries. Funding the business. If you lack capital to start a business, consider working for another year to accumulate more savings so you are not as dependent on lenders (or have to pay high interest costs). The extra finance may tip the balance between failure and success. (Many business ventures fail because they are undercapitalised and rely heavily on debt.) Discuss with your accountant and business advisers the start-up costs of the business, as they are best placed to tell you if your plans are realistic. Also discuss with your advisers if you will be taking on more debt than the business will be able to repay. If you are already in business and start to find yourself in difficulties don’t leave it until it is too late to seek help. BUSINESS STRUCTURES, REGISTERING TRADE MARKS AND COMPANY NAMES There are various ways of operating a business to suit the needs of people establishing or changing the way they do business. They include sole trader, partnership, limited liability companies, co-operatives and trusts. Business names and trade marks may be registered. BUSINESS STRUCTURES Small businesses generally employ one of the following business structures in New Zealand: Sole trader A sole trader operates the business on his or her own. He or she:  controls, manages and owns the business  is personally entitled to all profits  is personally liable for all business taxes and debts. Why Use Lume?  Single point accountability  Consolidated Service  Reduced Costs  Happy Staff Productivity How does it work? Lume Managed Service Integration is a new service designed for businesses that need to focus on growth, while being confident that their technology is working for them. Unit 18, 33 Apollo Drive, Mairangi Bay Ph: 477 3602 Email: Richard@lume.co.nz Web: www.lume.co.nz
  6. 6. Usually a sole trader can begin the business without following any formal or legal processes to establish it. He or she may employ other people. Large numbers of businesses operate as sole traders. No registration is required to start a business as a sole trader. Partnership In a partnership, two or more people run a business together. Each partner:  shares responsibility for running the business  shares in any profit or loss equally, unless the partnership agreement states otherwise  is liable for any debt within the partnership. Many partnerships are established with a formal partnership agreement. The partnership itself does not pay income tax. Instead it distributes the partnership income to the partners. The partners then pay tax on their own share. No registration is required to start a business as a partnership. HIBISCUS COAST Hoyts showBusiness offers a wide selection of innovative products to suit every business requirement. Our offer can be further tailored to your specific project and budget. Hoyts Hibiscus Coast, 6 Link Drive, Whangaparaoa Ph: 09 488 6000 w www.hoyts.co.nz
  7. 7. Limited Liability Company A company exists as a formal and legal entity in its own right. It is separate from its shareholders (or owners). To register (incorporate) a company under the Companies Act, you need to: • reserve the name and incorporate the company online at www.companies.govt.nz. The business is then established. A person, or a group of people, own shares in the registered company. The company:  owns the assets and liabilities of the business  Is responsible for any debts. The shareholders' liability for losses is limited to their share of ownership of the company, except when company directors have given personal guarantees for company debts or where a company has been trading insolently or is considered to be trading recklessly. Co-operative A co-operative business involves people (or entities) working together to achieve business goals that are not possible on ones own. Examples of co-operative businesses can be found where someone has an idea for a business that needs several or many people to be involved and where they all have a common goal. For example, where small or boutique businesses performing the same or similar activities, like marketing wine, decide to work together to gain economies of scale while still maintaining agreed standards or even independent brands. Co-operative businesses in New Zealand contribute over 20% of NZ's Gross Domestic Product. There are also Co- operative Societies that can be used for much the same activities but operate under different legislation. A co-operative is an enterprise that is owned and democratically controlled by its shareholder/members. The shareholders/members contribute the prime capital for the business. Co-operative participants share in the profits of the business in proportion to their participation - the greater the participation, the larger the proportion of profits. Karen Franklin ...a proven professional Commercial, Business, Residential Sales & Marketing Consultant P: 09 428 5635 M: 021 779 838 E: karen.franklin@harcourts.co.nz W: karenfranklin.harcourts.co.nz
  8. 8. HOW YOUR BUSINESS STRUCTURE AFFECTS TAX OBLIGATIONS Regardless of the type of business you may be considering establishing, obtain the guidance of qualified professionals. With regard to income tax the rules are different for companies and sole traders. Find out more on the Inland Revenue website at www.ird.govt.nz or the Business site at www.business.govt.nz. Here is some basic advice. Registering your business for tax Balance dates You register with Inland Revenue by applying for an IRD number. When you do, you’ll automatically be given the standard balance date of March 31, which means that – like most businesses – your accounting (or financial) year begins on April 1 and ends on March 31. However, you can apply to Inland Revenue to use a different balance date. Successful applications contain concrete reasons for changing balance dates. For example, Inland Revenue won’t grant a change of balance date if you just want your financial year to start on the same day you open for business or you just want to take advantage of a tax concession. The vast majority of SMEs in New Zealand have March balance dates. IRD number To register with Inland Revenue, your business needs an IRD number so it can be recognised. You may already have an IRD number.  If you’re a sole trader, you use your own individual IRD number because you’re not considered to be a separate legal entity to your business. Register online with Inland Revenue for an individual IRD number.  While sole traders in a partnership have their own individual IRD numbers, the partnership itself also needs its own IRD number.  Companies also need to be registered with the Companies Office, New Zealand’s public registry of companies. When you do this, you can also apply for an IRD number for your company at the same time.  If you run a company, you use the company’s IRD number to pay business income tax at the company rate and your own individual IRD number to pay income tax on the profits you receive from the company. This is because companies are considered separate legal entities to their shareholders.
  9. 9.  A separate IRD number is also needed if you run your business through a trust. Registering as an employer You must register as an employer with Inland Revenue when you start employing people. When you do, you’ll also be automatically registered as an employer with ACC (Accident Compensation Corporation). Before you register, determine whether the people working in your business should be classed as employees or self-employed contractors because they’re taxed differently. Find out more with Focus on employees and Focus on contractors. After you register you’ll need to start making PAYE deductions (as well as possible other deductions for KiwiSaver, student loans, etc.), pay employer levies and premiums to ACC, and pay other taxes such as fringe benefit tax if they’re applicable. Registering for GST GST is a value-added tax (currently set at 15%) that is added to the price of most goods and services bought and sold in New Zealand. If your business is GST-registered, it collects GST for the Government on the goods and services it sells and claims GST back on all the goods and services it buys from other GST -registered suppliers. You don’t have to register for GST until your business has reached, or you expect it to reach, a turnover of $60,000 a year. A good way of measuring this is to look at your average monthly turnover – if it is (or is expected to be) $5,000 or more, you should register. However, if you charge GST you must register regardless of your turnover, for example taxi drivers. Some new small businesses register for GST regardless of whether they expect to turnover $5,000 a month. This is because they can claim GST back on the goods and services they buy – including their start-up costs (which could place them in a refund situation until their business is established). TIP: An added advantage of registering for GST is that preparing your GST returns allows you to review the performance of your business. After you register Once you’ve registered with Inland Revenue, your tax compliance responsibilities can’t be put on the backburner until the end of your accounting year. Throughout the year you should budget for payments before they fall due and keep your tax records up-to-date. If you don’t, you could risk the financial stability of your fledgling business and risk inviting penalties from Inland Revenue. Budgeting for tax payments The second year in business can often be the hardest financially if you haven’t budgeted for tax payments. This is because in your second year you’re required to not only pay tax on your business profits from the previous 12 months, but also to start paying provisional tax on your current year profits. Provisional tax payments are business income tax instalments you pay to Inland Revenue several times during the year.
  10. 10. If your income for the year hasn’t been taxed enough – or at all – and your Residual Income Tax (RIT – tax on your income minus PAYE and any tax credits) is more than $2,500, then you’ll have to start paying provisional tax in the next tax year. The frequency of your provisional tax payments depends on how you choose to calculate them. If, at the end of the financial year, you haven’t paid enough provisional tax for your business, you must pay the remaining amount. You can be liable for penalties and interest if you don’t pay enough provisional tax. If you’ve paid too much, Inland Revenue will issue you a refund or you can ask to have the overpayment transferred to the next tax year. Find out more about provisional tax with Inland Revenue. To avoid having to pay your first year’s tax and start paying provisional tax at the same time, you can make voluntary business income tax payments in your first year of operation. If you’re a sole trader or partner, you may be eligible for a 6.7% tax discount in your first year of business. Sole Trader A sole trader is a person trading on their own. They control, manage and own the business. How does being a sole trader work? A sole trader usually has no formal or legal processes to set up the business. The owner/manager is personally entitled to all profits, but is also personally liable for all business taxes and debts. What are "drawings"? If you are a sole trader you're probably not paying yourself a wage, but simply taking money from the business when you need it for personal use. These takings are called drawings. They are:  a part of your profit and taxed accordingly  not a deductible business expense when calculating your profit. Record your drawings in your cashbook so  Corporate Events  Christmas Parties  Special Occasions  On-Site Management  Room Dressing  Baby showers  Christenings  Birthdays  Engagements  Weddings For an obligation free chat call 021 716 713 hellen@eventdesigners.co.nz www.eventdesigners.co.nz
  11. 11. that you can reconcile your cashbook with your bank statements, ensuring that there is enough money in the business to cover any bills owing. What are the tax rates for sole traders? A sole trader is taxed at the individual tax rates. Independent earner tax credit (IETC) From 1 April 2009 eligible tax payers earning between $24,000 and $48,000 will be entitled to the IETC which will lower the amount of tax to pay. REGISTERING A COMPANY The Companies Office has information on registering a Company. This can be done online and becomes effective immediately the Certificate of Incorporation is issued. You need to firstly reserve the company name you would like to use. Once you have reserved the name you have 20 days to apply for the company to be incorporated (this can be extended if required). Once you have completed all the formal procedures including the Director and Shareholder forms and returned to the Companies Office. Once these have all been accepted the company will be incorporated and the Companies Office will send you your Certificate of Incorporation. For further details or to incorporate a company visit the Companies Office website at www.business.govt.nz/companies TRADE MARKS The Intellectual Property Office of New Zealand (IPONZ) has information on creating trade marks, which cost from $112.50 per registration and, because of international agreements, take six months to be finally registered. Due to the complexity of trade marks it is worthwhile reading IPONZ's beginner's guide information. They can be obtained online or by calling the IPONZ toll free number 0508 447 669. PO BOX 687, Whangaparaoa Ph: 021 466 737 E: kate@greensky.co.nz W: www.greensky.co.nz Green Sky is an open market place where people who want to be hired advertise themselves. We are taking 'the wall' down so employers can view and contact people directly Or, as an employer, are you too busy to hire the new person you need? Use our affordable, sophisticated and automated on-line tools.
  12. 12. KEEPING GOOD RECORDS You need to ensure you keep accurate records, budget for upcoming tax payments and account for your business expenses and deductions. If your business is expanding you may need to register to additional tax types such as GST, or it may be in your interest to change the structure of your business. Your business records should include banking information, proof of income and expenses, cash books and wage books. No matter what sort of business you’re running, you need to be able to see what you’ve paid and what you’re owed so you can budget. Your bank manager, accountant or investors may also need to see your business records at some time to keep track of your progress and help plan your business’s future. Several government departments also require you to keep records by law, especially for statistics and tax reasons. Company Records to Keep You should keep the following records of your income: Tax invoices: If you are registered for GST and invoicing a customer/client or another GST -registered person Other invoices: eg, for supplies of $50 or less, which do not require a full tax invoice even if you are registered for GST Credit card sales: keeping all copies of the vouchers and voucher schedules Debit notes: which you must send to your customers (clearly marked as a "debit note") if the price of your goods/services increases after you issue your original invoice. Credit notes: which you must send to your customers (clearly marked as a "credit note") if the price of your goods/services decreases after you issue your original invoice Cash register tape: for businesses that make many cash sales and therefore are not required to issue tax invoices. All cash sales should be recorded on the tape. You must keep these records for seven years from the year that they were created. Electronic records: If you are storing records on a computer, you must continue to keep all relevant paper records. Also take care to keep adequate back-up copies of your important electronic records (additional disk copies or print-outs). Electronic records must also be kept for seven years. Nine key benefits of good records Easier tax compliance - 1. Reduce your tax bill - You can claim business expenses against your income, reducing your tax liability. Good records allow you to support your expense claims if you are audited. (If your records cannot confirm an expense, we may not allow you to claim it.) 2. Complete returns more easily - Keeping your bookkeeping up to date makes it easier to file your GST and tax returns and meet your employer obligations (if you are an 331 Rosedale Rd, Albany Ph: 09 282 3959 or 0274 98 66 99 E: ray@essentialinsurances.co.nz www.essentialinsurances.co.nz What happens if you lose your income? How long would it take before your lifestyle was dramatically impacted - bank takes back your home, the car taken - or other such nasties?
  13. 13. employer). 3. Avoid penalties - Accurate records enable you to complete your tax calculations faster and more accurately, avoiding any possible penalties for underpaid taxes or incorrect returns. 4. Reduce time and stress - If you’re in business you can expect to be audited by us at some stage. The audit is likely to be much faster and less stressful if your records are well kept. You don’t want to be distracted from your core business activities by having to search for or explain missing records and documents. Better business management 5. Better control of your business - Good records show you whether your business is making enough money to meet its expenses and make a profit. They reveal what you’re spending money on and where this money is coming from. This will help you in budgeting and decision making. 6. Better business decisions - If you wait till the end of the year to find out if your business is making (or losing) money, it may be too late. Regularly updated records allow you to identify any problems and make timely corrections. 7. Manage your cash flow - You can track the flow of money in and out of your business. You know what’s coming in, and what commitments you must meet. You can plan for periods of low cash flows (such as seasonal downturns) and identify the right times to buy business assets. 8. Lower your accounting costs - If your books are in order, your accountant will spend less time preparing your accounts—time that you are paying for. You’ll be able to use the accountant’s services for more specialised tax and financial advice instead. Increased funding opportunities 9. Increase finance or funding chances - Good record keeping makes it easier for others to know whether to invest in your business or project. It’s much easier to put a good case together when applying for loans or grants if you’ve got accurate records to support your intentions. Keeping accurate records provides lenders with evidence that your business is being run professionally, which makes it a better prospect for investment. This is also true if you’re thinking of selling the business. Potential buyers can check your performance by looking at your records. They also know that it will much easier for them to take over a well-organised business. Two tips on record keeping  It is important the records should be easily readable and organised enough to allow you or anyone to work through them 240 Monowai Road, Tahekeroa info@queendomgardens.co.nz www.queendomgardens.co.nz An ideal venue for your next corporate function, strategic planning workshop, client meeting, team building event or social gathering www.queendomgardens.co.nz
  14. 14. quickly.  If storing records on a computer, be sure to keep back-up copies in case your system breaks down. Keep the back-ups elsewhere. ATEED (Auckland Tourism, Events and Economic Development) ATEED, Level 1, Building 1, 61 Constellation Drive, Rosedale, Ph: 09 354 0059 Email: north@aucklandnz.com Web: www.businessaucklandnz.com ATEED facilitates tourism, major events, business and industry sector development and activities to attract investment. The organisation is the guardian of the Auckland regional brand, responsible for marketing Auckland as a destination. The organisation carries out communications, marketing and strategy to support its activities. ATEED’s major functional units are Destination, Business and Sector Development, supported by our teams responsible for Planning and Performance as well as Marketing and Communications. TEN What is The Effective Network (TEN)? TEN run regular network meetings with the objectives to -  Assist with growth of local business, encouraging networking  To learn something new, meet new people and have fun  Showcase successful Rodney/Hibiscus businesses. Events for 2013 -  27 February - Silverdale  22 May - Matakana
  15. 15.  26 June (Breakfast) - Hibiscus Coast  21 August - West Auckland  23 October (Breakfast) - Orewa  20 November - Puhoi Events are 5:30pm to 7:30pm except breakfast meetings. For more information on each event visit our website FRANCHISES Some Basic Information Even if you are just new in business it is always important to keep your future in mind. Whilst your day to day concerns are currently getting the business off the ground and making a living as you do your regular reviews of your business you should be keeping in mind where you want it to go in the future. If there is a possibility you could consider franchising if you are very successful or have a unique idea then make sure these plans are reflected in your business plan. In the past decade or so, franchising has become one of the fastest-growing ways of doing business in New Zealand. Surveys suggest that even during the recent economic slow-down franchising achieved an annual growth rate of between 23-28%. But what is franchising? Is it a short-term fad or a long-term change in the way that we do business? Is it a license to print money for someone with a good idea? Is buying a franchise a safe way to go into business for yourself? Is franchising just pyramid selling under a different name? Is the franchisor the only person who makes money? These are just some of the many questions you could ask. Below are a few brief answers to some of these questions. What is Franchising? The basic principle behind franchising is that the initial creator (the franchisor) develops a business format and an operating system which has some advantages over other existing businesses in the market. The franchisor then replicates or clones his or her business in other geographic areas by granting the right to another (the franchisee) to operate the same business system under the same name. This right is usually granted for a fixed term. The franchisor gains his or her income from initial and ongoing fees paid by the franchisee. In return, he or she must provide a variety of services to encourage the continuing profitability and growth of the
  16. 16. franchisee's business. The franchisee receives their income from marketing a desirable product or service under a desirable brand name. This basic approach - which is called business format franchising has proved to be the most dynamic form of marketing and distribution in the world over the past fifty years. How does it work? Basically franchising is when a person - the franchisee - has purchased the rights to operate a business under the umbrella of an already established name. That person is then trained in all aspects of running the particular business and if they pass the training, they are then given the chance to go ahead. This is where money comes in. The first thing that they will spend their money on is the franchise fee - buying the rights to use the name above the door of their own premises and to use the franchise businesses operating system inside. The second thing that they will spend money on is setting up their premises. The franchisor will usually organise this, but all the bills will be paid by the franchisee. The third thing they will spend money on will be an ongoing fee - otherwise called a royalty - which is paid to the franchisor regularly. This money pays for the continuing right to use the name, and includes an element of profit for the franchisor. There will also often be an advertising fee - in most franchises, a set percentage of turnover - which is combined with the contributions of all the other franchisees to pay for the advertising which constantly appears say in the local papers or on your TV screens. So the person who buys the franchise ends up in business for themselves, but with the advantages of an already established brand and a system of support and back-up which should give them every chance of succeeding. Significant Advantages Franchising has also been recognised as offering significant advantages in three of the major areas identified by management gurus and future-watchers over the past twenty years. The first is reduced management structures. A franchise organisation is, by its very nature, almost as flat as it is possible to be. The 'branches' are self-contained business units to the extent that the franchisee reports to no- one save himself - not even the managing director of the franchisor company. There may be a field support person who is responsible for contact with the franchisee, but that person does not control them. The second area in which franchising is well- placed is in being suited to what are now becoming known as 'knowledge-based businesses'. Franchising is a way of capitalising upon both intellectual property - brands, trademarks and proprietary products or services - and upon other assets such as business systems, methods and practices. The ability to franchise such intellectual property offers enormous attractions to New Zealand companies, for whom geographical isolation need no longer be a barrier to successful exporting. The next KFC or Burger King could be created, grown and remain based in New Zealand just as easily as it could from the US (give or take some enthusiastic travelling).
  17. 17. The third area in which franchising is ahead of the trend is in the development of what the researchers are now calling 'Spider's Web' or 'Lattice' Organisations - dynamic networks of geographically-dispersed teams held together by common goals and operating systems. Franchising is probably the most dynamic and efficient form of doing business that has yet been invented. What is certain is that it has not yet achieved its full potential either in New Zealand or world-wide. The result is that franchising still has a great deal to offer both the individual and the corporation. For further details on franchising in New Zealand visit www.franchise.co.nz TEN REASONS WHY YOU NEED CONTENT MARKETING Content marketing is one of the best online and offline marketing strategies you could get. You may not see results immediately from your contents, however, you’ll gain more in the long run. Here are the 10 reasons why. Credibility - When you share your opinion regards to anything you could ever imagine, you are seen as an expert by your potential targeted audience in the topics you wrote. Try to stick around a niche industry topic so that it can increase your credibility in the market. It’s Free! The good thing about content marketing is that it is free. All you need to do is to contribute useful contents and keep on writing to let as many people know about what you are going to say. That’s it. Just write your opinions and publish them immediately, be prepared for a mixture of feedback on your articles. Be open-minded, not to be too defensive, accept the feedback and thanks your readers for reading them. Search Engine Friendly - If you want your article to be indexed on the first page of Google on a certain keyword that is relevant to your business, make sure to have that keyword on the title of your article. Depends on the popularity of your keyword, it might not be indexed on the first few pages of Google but don’t ever give up. Think of another creative and “search engine friendly title” and contents for your next article instead. Once it is on the first few pages of Google, you have somehow gained organic traffic to your articles and website. The more articles you write, the more unique website traffic you will gain as a result. And this will go on and on and on… forever. Brand Reputation - Brand reputation grows in the minds of your targeted customers. If the articles you written, are non-biased, objective, and able to solve much of the issues your potential clients are facing;
  18. 18. through giving them the information that they are looking for. You have somehow create that brand standing in your readers’ minds. Should they need to solve any particular issue in the future, they will first think of you instantly. Makes You Unique from Competition - Competition is unavoidable. You either win or be killed in the sea of competition. Hence, you have to stand out from the crowd no matter what. Okay? Content marketing is never a waste of time, the more you write, the more your perceived value as an expert among your competitors, will rise. Makes Selling Easier - Just like any marketing strategies, the purpose of marketing is to enhance the selling environment and thus, making selling easier. Content marketing enhances your brand value; hence, it’ll make people want to buy your brand more; therefore, your products and services will sell by themselves. Earned You Media - Content marketing open up your network to professionals in the writing and media industry. Sometimes, if you write good articles that are newsworthy enough to be heard to the masses, editors and publishers might pick up your articles and published them on their online or offline medias. Bloggers may also quote your articles and ping back to you, giving you the additional traffic from their blogs. Media earned is so much better and credible than paid media, so cherish the opportunity when it comes. More People Will Recognize You - The point that I want to put across here will be that you need to archive your articles. The more articles you write around your niche area, more people will come to recognize you. Even people that are outside of your niche industry will also come to know about you. So what you are going to do, is to start writing something and publish your articles in your Linkedin groups, online communities or any other social networking groups around your niche area; be willing to help people sincerely with what you know so that you’ll gain more in the years ahead. Ability to Lead or Change Your Market - Content marketing is so strong that you are able to influence your market with your writing. When you are perceived as an expert in your industry through countless writings and such; the words that you are trying to bring across will carry more weight than your average competitor. Hence, this gives you the ability to lead or change your market in your own way or another. Increase Your Professional Industry Value - Content marketing not just increase your company brand value, it’s also increases your individual industry value as someone that is able to stand out from most professionals in Insinc Products Ltd Eco-friendly, sustainable products for your home, office or school that are better for you and better for the environment. An extensive range of commercial strength environmentally friendly products PO Box 310 140, Red Beach Ph: 0508 467 462  Mob: 021 447 640 E: sales@insinc.co.nz  www.insinc.co.nz
  19. 19. your industry. Be prepared to be ‘headhunted’ by major competing brands in your industry and it might be the best reason for you to ask for a pay rise. Work on your content. It’s always easy to start something, however to win in content marketing, you will need to persevere by consistently sharing your opinions through your writings and reaching out to more readers around the world who are somewhere out there appreciating all the little things of what you have written. THE REVOLUTION IN TELECOMMUNICATIONS - VOIP VoIP (Voice Over Internet) simply means putting your phone calls over the Internet instead of over your landlines. VoIP will probably reduce standard current phone bills by 30-40% and there are far more features and flexibility with your phone system than you can have with a Landline. However the key to VoIP is doing it properly. When your provider makes sure you have the equipment, set up the right way, it works perfectly well. Myths about VoIP that are Holding NZ Businesses Back Why is the rest of the world embracing VoIP enmasse and we are not?  Myth 1: New Zealand’s Broadband is not fast enough. Nonsense. All you need is around 100 kbps upload per line, which most business have.  Myth 2: Call quality is bad. Nonsense. Any business that has had this experience has not been advised well, and has not had the right equipment set up the right way.  Myth 3: If there is a power outage, or an Internet outage, we’ll have no phones. Nonsense. So long as you are with a quality VoIP provider, with their system in the Cloud, (not a piece of equipment on your site), during any outage, calls can be routed to any and as many Mobiles as you choose. EIGHT TIPS FOR ADDING VALUE TO YOUR TELECOMMUNICATIONS Tip 1 = Avoid Contracts Calling rates, especially Mobile, are always falling, and if you sign a contract you will miss out on future price decreases. Tip 2 = Ask for an Unlocked Modem The big guys like Telecom are now giving their customers locked modems, which means if you want to change providers, you’ll have to buy another modem because the one you have is locked. In other words, it won’t work on other networks. Tip 3 = Buy Quad-Band Mobile Phones Quad-Band mobile phones work on all NZ networks which means you can freely change providers without having to buy a new phone. Telecom sells mainly quad-band mobiles so you are fine there. Be careful buying off Vodafone because they sell a lot of Tri-Band phones which has the same effect as locked modems.
  20. 20. Tip 4 = Tethering your Tablets and Ipads Ipads and Tablets come in two versions, 3G and Wireless Only. The 3G versions cost more, but you do not need them because you can connect those to your Mobile phone and use the data plan on there. Tip 5 = Pay as you use on Mobile Paying as you use saves you money ever y month because you avoid paying for minutes you don’t use, and you avoid paying penalty rates on the months you’ve used up your minutes. The trouble is, hardly any providers offer this at low calling rates. Tip 6 = Ask for lower rates Tell your provider you are thinking of leaving and you’ll be amazed at what “rabbit they will pull out of the hat” to keep you. That’s great for you, but should you have to threaten to leave before they bother to update your rates? Tip 7 = Make sure your calls are not being rounded up Per second charging is/should be standard now but many business owners are still having their calls rounded up. Tip 8 = Watch out for Capped Calls If 90% of your calls are less than the cap, which is 90% of businesses, then you are probably better off on a lower flat rate. HOW TO GET A MORTGAGE IF SELF-EMPLOYED Being Self Employed is great. You are pretty much in control of your own destiny and generally the ‘Boss’ (you) is in control and doesn’t need too much encouragement to get the job done. Going fishing during the week also has it’s appeal! On a serious note, although the Self Employed make up a huge percentage of the workplace, we are (I’m Self Employed) undoubtedly discriminated against when it comes to getting a mortgage. Just try asking the Bank for a mortgage when you’ve been trading for less than two years or have a ‘creative’ Accountant who just does their job. Until 2008 most Banks did ‘Lo Doc’ mortgages. That’s all changed and although a couple still promote these on their websites I’ve yet to see one go through without ‘ah yes, now we need six months bank statements, last four GST returns and your wife’s wedding ring’ as additional security. In other words they are not interested. WORD OF MOUTH IS YOUR BEST FORM OF ADVERTISING … JOIN US FOR LOCAL NETWORKING WITH LINKU2 AND WHAT IF… Date: Second Tuesday every second month from March 2013 Venue: JACs, The Plaza, Whangaparaoa Time: 6.00 pm to 8.00 pm Topic: Short talks on a variety of topics to help you grow in business Bring: Business cards, flyers and a great attitude! Spaces fill fast so don't miss out! Email sarah@linku2hibiscuscoast.co.nz for details of the next event
  21. 21. So if no Bank will offer you a mortgage what else is on offer? Up until recently there was no option apart from short term lending from one of the few finance companies left. Only problem was it meant at least a 40% deposit and a rate of double the Bank. Not good. There is currently one mortgage provider who offers a genuine ‘Lo Doc’ mortgage. ’Lo Doc’ simply means you state your income and within reason, it’s accepted without payslips, financials and the like. Even with financials I come across many Self Employed people who cannot get the mortgage they want. It’s all about risk and so the maximum loan is based on 75% of the value of the property. If it all ‘turns to custard’ the Lender knows it will get it’s money back. For lower LVR’s the rate drops too, so if you take the current Bank floating rate of 5.75% and you need a mortgage without proving income, the ‘Lo Doc’ rates start at 7.05%. Not bad when you consider that within a few years you should be able to verify all your income and so beat the Bank up to take you on. So only one Lender today. This is changing. I’ve been asked to help design mortgage products for a new Lender coming to New Zealand and it will be no surprise that I am championing the Self Employed as good payers and therefore a good risk. I live and work on the HBC and am usually around 8.30 to 8pm on 09 428 5333. We can do applications face to face or electronically, your choice. I am fully Qualified under the new regulations and fiercely independent. My customers come first, not the Bank! Jeff Royle - www.ilender.co.nz - Number 1 rated broker on Trade Me (jeffqv) ARE YOU SIGNED UP FOR MORE BUSINESS? A sign is your introduction or handshake with those passing by, identifying your business to existing and potential customers. You are judged on first impressions so ensure your sign is modern and matches your company Call Jeff Royle who has a wealth of experience built up over 15 years worldwide PO Box 889, Whangaparaoa jeff.royle@nztsl.co.nz - www.ilender.co.nz Ph: 0800 LENDER  Self Employed  Bank Mortgages  Non-Bank Lending  Debt Consolidation  No Proof of Income  Large Loans  Non residents and Migrants There are mortgages for all types of people so you need to choose the right one for you The mortgage experts
  22. 22. image. People will judge your business inside by how it looks on the outside. In Franchising it is even more important, as franchising is all about brand recognition and brand continuity. If your vehicle is signwritten whether it be a logo on the doors, company name on the tyre cover or fully wrapped (totally covered) it is a mobile billboard. Many a driver has been stopped and asked for a business card while out and about. Keith Browne of NZ Sign Solutions says “Signs are an effective, yet inexpensive form of advertising. They are always ‘on the job’ 24 hours a day, 365 days a year.” Which brings me to another often overlooked point – have your driven past your premises at night? Whether you’re open at night or not, your sign should be seen. At night it is more easily seen without the daylight distractions. Good lighting of your signage also prevents potential vandalism to your premises. Choose your type of lighting to enhance the image of your company, e.g. A toy store may want some novel colored lights and a jewellery shop may want more subtle fairy lights. Here are 5 simple steps to signs that attract customers: QUICK TIPS Step 1: Get signage that is readable – the subject of the business not the name of the business should be the largest letters. E.g. Hibiscus Fish & Chips should have the Fish & Chips in larger letters. Customers are looking for the takeaways not Hibiscus. Drive by your premises to see what a customer would see if they were looking for you. Optimise the position, your sign should be unavoidable to the passing viewer. Step 2: Signs Should Complement the Building they’re Advertising. Every building has character. The sign may need to blend in or spruce up the building. An experienced sign maker will be able to design a sign that will enhance the building it advertises or hide the faults of a building that needs help. Your sign could become a landmark. Step 3: Attract your customers Design is the crucial element here. Capture the essence of your business in a few words (3-5 words are optimal). It should be read and understood at a quick glance. Color, Logo or picture should be consistent with your company. Step 4: Durability - Use Sign Materials that
  23. 23. last. A sign is an investment - an investment that will serve its purpose for years if it is constructed of high quality, durable materials. Computer graphics make anything possible, but the materials the signwriter chooses is what will make your investment economic to survive harsh weather conditions. Step 5: Negative Space - Sometimes it’s What Is Not There that Counts. The negative space between words is also paramount to the effectiveness of the sign. If people driving by can’t read the sign because of the crowded letters and words, the sign is useless. Many businesses are mobile, so here are some examples of ways to make your signage portable. Mobile Signs Vehicle branding – Car, truck, vans, trailers machines; your business brand on wheels. Sponsorship - On race cars, yachts and powerboats. Banners – Weather resistant ‘welcome mats’ for Community Events, specials etc. Flanners – eye-catching flag banners trumpets your presence. Pavement signs – outside your worksite. Have one base with different inserts. Changeable Letter Signs - such as Harvey Norman, Stihl Shops and Hoyts Theatre, flexible and always current marketing offer. Pull-up Stands – For promotions, exhibitions and events. Static Signs Event Signage – Billboards. Window Graphics – frosting, tinting, signage. Shop Signage – Create instant recognition. Directional Signs – locating your business The more people recognise your business by sight, the more it will stay in their memories. Signs are the most cost-effective way to advertise and it lasts year after year. An effective sign requires expertise in graphic design and many other skills and trades. There’s more to designing a good sign than meets the eye. A good sign meets the eye. You will have noticed many of Keith’s creations locally; Shop Signage – Hollywood Cafe, Bayleys Real Estate, Orewa Medical Centre, Luvable Pets Changeable Letter Signs – Red Beach & Stanmore Bay Primary, Whangaparaoa College, Hoyts Billboards – Hibiscus Coast Athletics Club, Manly Sailing Club, Whangaparaoa Gala Branding - KingsWay School Flag & Banners – Pacific Cheerleaders, Hibiscus Singers Vehicles –AMX Computers, NZ Sailing Net, Draintech, Guttercare, Simpler Home Services, Yachts at Gulf Harbour, race cars, diggers, trucks - they’ve done the lot. About the Author Keith Browne is the Director of NZ Sign Solutions - they have a solution for every sign. Check out their website for the full range of portable signs. For vehicle and shop signage they have installers throughout NZ and portable signs can be shipped to you. Web: www.signsolutions.co.nz - Ph: 09 427 4402 - Email: print@signsolutions.co.nz
  24. 24. Disclaimer - This Disclaimer applies to all information made available by Linku2 Hibiscus Coast in this publication. The information provided, and subject to this Disclaimer is only intended to be general information to the public. Considerable effort has been made to ensure that the in- formation provided in this publication is accurate, up to date, and otherwise adequate in all re- spects. Nevertheless, this information is made available to users of this publication and all other persons and entities STRICTLY on the basis that Linku2 Hibiscus Coast and all other persons responsible for the publication, or associated with the compilation, writing, editing, approval or publication of, or any other kind of work in connection with, the information disclaim any and all responsibility for any inaccuracy, error, omission, lateness or any other kind of inadequacy, defi- ciency, or flaw in, or in relation to, the information; and without limiting as above, fully exclude any and all liability of any kind, on the part of any and all of them, to any person or entity (whether a user of this publication or not) that chooses to rely upon the information. For further information about services in this book contact the service direct or email: admin@linku2hibiscuscoast.co.nz For information on how to feature in this book contact Sarah on 428 0204 or email: admin@linku2hibiscuscoast.co.nz Advertising in this booklet is included in Linku2 Hibiscus Coast Business Web Plans or can be taken independently Linku2 take no responsibility for law changes or fees quoted in this publication. We would like to acknowledge www.business.govt.nz and www.ird.govt.nz from which much of this information has been sourced. Both sites and government departments hold a wealth of information and resources which all businesses should be aquainted with.

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