Areas to include When drafting terms of trade for a standard seller of goods or services consider the following areas: Terms Notes The Parties Clearly identify the legal entity you are contracting with Goods and/or Services An exact description of the nature of the goods and/or services is essential Price Payment Including whether the…
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Debt Factoring
Introduction Factoring is not new, it originated in England in the 1300s. Today it is a common method of financing business transactions. The factoring company purchases a business’ debtors’ invoices for a fee. The benefit to the business is that it receives cash for a high percentage of its debtors’ invoices, virtually simultaneously with the…
Writing Position Descriptions
Introduction A position description is a final product of a process of thinking about what you really want from this position. Task Review Sometimes the tasks associated with the position you are recruiting to are very clear cut, such as a pastry chef, a machinist, a carpenter/joiner. However, in many businesses it is not…
Establishing the Key Performance Indicators in Your Business
Introduction A key performance indicator (KPI) is a measure designed to track critical success factors in a business. KPIs provide a statistical measure of how well an organisation is doing. To be effective, KPIs should be few in number and focus on vital areas in the business. KPIs differ by industry, business and even departments…
Customer Advisory Board
Introduction You can greatly improve your chances of succeeding in today’s marketplace if you focus your efforts on addressing the business issues that face your key customers. Consequently, it is more important than ever that you know ‘the voice of your customer’ and that you use this knowledge to create competitive solutions that deliver…
Marketing
Introduction Marketing is the art of ‘getting yourself out there’. It is the way you let your customers and prospective customers know what you do, how you do it and where you are. Marketing can be broken into three general areas: branding and promotion, advertising, and direct marketing. If done well, these steps will naturally…
Performance Management
Introduction When you have your employee’s employment confirmed as ongoing (after the trial or probation period) it is important to manage their performance. This should be delegated to the employee’s manager (eg customer service manager or business manager). This chapter contains the following topics: Feedback and Career Development Review Training your team Solving problems…
Key Traits of a Successful Business
Introduction What’s the secret to success in business? Here are 16 things to start you thinking. Contents This guide contains the following topics: Effective leadership Outstanding customer service Strong product and industry knowledge Strong management capability Effective staff performance management Tight working capital management Understanding the key drivers and therefore the key…
Succession planning
Introduction In New Zealand it is estimated 24% of small business owners are now over 60 years of age. A further 25% are between 50 and 60. A great question to ask yourself is ‘What if I were hit by a bus tomorrow?’ In other words, in the event of death or disablement how…
Family businesses
This guide contains the following topics: The eight fundamentals of family business Spouses in business Conflicts within family businesses Dispute resolution The eight fundamentals of family business Family involvement in any business has to be an integral part of the business’ successful future and therefore provided for in the business plan. Incoming family…
Should you be increasing your prices?
If you adopt a premium pricing strategy the following table shows the amount by which your sales would have to decline following a price increase before your gross profit is reduced below its present level. For example, at a 40% margin, a 10% increase in price could sustain a 20% reduction in sales volume. If…
Should you be discounting your price?
The following table indicates the increase in sales that are required to compensate for a price discounting policy. For example, if your gross margin is 30% and you reduce price by 10% you need sales volume to increase by 50% to maintain your profit. Rarely has such a strategy worked in the past and it’s…
Valuation of a Business
Introduction There is no topic about which greater differences of informed opinion may exist than the value of a business or shares in a private company. Contents This guide contains the following topics: Overview Valuation methods Developing the succession plan Valuing the business Valuation methods summarized Goodwill Overview Introduction The…
Direct Marketing
Introduction Direct marketing is contacting the seller personally to engage them in the sales process. This is generally done around a certain offer or event, as this type of marketing is not appropriate for general awareness marketing. Direct marketing is generally done by telephone, email or letter. Contents This guide contains the…
Computers in Small Business
Introduction Your computing needs will vary greatly depending on the type of business you run and how many team members you have. This guide will give you an idea of the basic options available. Contents This guide contains the following topics: Computer setup PC vs Mac Setting up a network Backing up…
Exporting Business
Introduction New Zealand relies heavily on exports to support its economy. Because of this, the New Zealand Government puts a lot of resource into its national economic development agency, New Zealand Trade and Enterprise (NZTE). Contents This guide contains the following topics: Setting up an export business Developing your intangible resources Going…
Customer service
Introduction Good customer service is easy. Once you have been through the hard work of attracting customers, and have successfully sold them something, you will want to encourage repeat business. It is far easier to sell more to your existing customers than it is to find new ones. One of the keys to attracting…
Surveys and Market Research
Introduction Running a survey or conducting market research is a great way to find out what customers and prospective customers want. By gathering some useable data, you can tailor your products and services to your clients’ needs. It’s also a great way to monitor the marketplace and find out how you are perceived. …
Motor Vehicle Deductions
For motor vehicles acquired on or after 1 April 2011 Introduction There are a number of different treatments in operation to obtain income tax deductions for motor vehicle expenses. It will depend on the type of business entity that operates the vehicle. This guide explains the fundamental rules surrounding motor vehicles and income…
Sales Guide
Introduction Sales is the process you enter into once a customer engages you. For example, once they enter your showroom or reception, or call or email an enquiry. The sales process can involve everything from simple retail selling, merchandising and cross-selling, to complex quotes and proposals and cold-calling. Contents This guide contains…
Software Applications in Small Business
Introduction One of the most important things for a small business is to have the right software in place. Buying software is no longer as simple as it used to be. As well as the standard option of simply purchasing a computer with the software pre-loaded, there are also many other software types available.…
Market Research Survey Planning
Introduction For a market research survey to be truly effective you will need to plan exactly what information you need and how you’re going to get it. Contents This guide contains the following topics: Planning your questions Writing your questions Choosing question types Question sequence Collection & Communication Analysing survey data …
Loyalty & Reward Systems
Overview Introduction Loyalty and rewards systems are a very real part of customer service in a modern business. Depending on the type of business you conduct, you may use one, or a combination of systems. Contents This guide contains the following topics: What is a loyalty system? Types of systems and rewards …
Managing Queries & Complaints
Introduction Queries and complaints are a reality in any business. A well handled query is a great step toward increasing business, just as a well handled complaint can prevent you from losing business. It costs five times as much to gain a new client as it does to retain an existing one. Professionalism and…
Legislative Requirements
Introduction Trading entities need to be aware of legislative environment, which imposes restrictions both on them in their individual capacities and on the entities they represent when promoting goods and services. Fair Trading Act The Fair Trading Act aims to ensure that the market for selling is an informed one. The Act…
Legal Remedies For Debt
Introduction The last resort for pursuing stubborn debtors is the legal system. It can be costly, time consuming and frustrating. And it takes you away from what you really want to be doing in your business. It’s much better to have a rigorous in-house debtor management system which still manages to preserve the customer…
Trial and Probation
Introduction Think about whether you wish to include provisions for a trial or probation period in the employment agreement for this position. The Employment Relations Act 2000 contains provisions for both ‘trial’ and ‘probationary’ periods for new employees. It is important that the employer and employee are clear about what provision applies to them.…
Insurances
Introduction While insurance requirements vary greatly from one business to another, the following is a guide to the most common types. Commercial Building Covers full replacement value including loss of rental income for 12-24 months minimum and landlord liability. Material Damage Covers the assets of your business such as buildings, stock, plant…
Planning Session
Preparation In advance of the session, try to gather the following data, where possible and appropriate: Industry research. You don’t need to be an expert, you simply need to show that you have an interest in what is happening in their business. This demonstrates your enthusiasm for their business and genuine care for them…
Induction
Introduction The purpose of good induction is so that the new employee starts to see how things work in the firm and where they fit in, meaning they are integrated well into your team. Sometimes firms make the mistake of not inducting new employees. In these instances, the employee may be left to their own…
Directors meetings — Facilitation
Introduction Our typical SME business clients can be largely unaware of the responsibilities and therefore risks of being a Company Director. In addition, these clients rarely receive any form of formal training in these areas and can be ignorant of the benefits of conducting effective monthly board meetings. Add to that the fact that many…
Interviewing
Introduction Interviews are best regarded as mutual exchanges of information rather than inquisitions. Remember that you are selling your firm to the potential employee as much as they are selling themselves to you. You need to find out whether the person would make a good addition to your team. They want to find out whether…
Sole Trader
Introduction There is nothing to stop you commencing business in your own name, e.g. John J Smith. The sole trader category is a suitable entity for small-scale business operations employing the personal talents of the proprietor. The owner of the business is personally liable for the debts of the business and all of the owner’s…
Placing an Ad
Introduction Once you have drafted the position description, you can draft your advertisement. Using colour can be very effective and will make your advertisement stand out from others. Writing your advertisement The following are some tips for writing your ad: Keep it short and sweet, don’t put the full job description in the advert,…
Dismissal Guidelines
Introduction To dismiss someone, employers must have a significant reason for the dismissal and also dismiss the worker using a fair and proper process. Even if you have a good reason for dismissing someone, if you do not follow the correct procedures, you may be found to have unjustifiably dismissed that employee. The employee may…
Skills Testing
Planning During the planning and preparation phase of your recruitment exercise, when you undertake a position analysis and identify the skills required to do the job, consider whether you will want to use skills testing at some stage of the recruitment process. Where it’s relevant to the position, we recommend that you carry out skills…
Companies
What is a Company? A company is a legal entity that is separate from the people who own it (the shareholders). Every company is registered at the New Zealand Companies Office. This is a business unit within the Ministry of Economic Development. Certain information regarding such things as ownership of a company is available to…
Client databases
Introduction A robust and detailed client database is an important tool for any business. There are many types of databases that a business may use depending on the type of business and the computer applications available. Contents This guide contains the following topics: Database basics Types of database What to record Maintenance…
Business Valuations
There is no topic about which greater differences of informed opinion may exist than the value of a business or shares in a private company. The value of a business is naturally influenced by the willingness of a vendor to sell and a purchaser to buy. It is usually assumed that fair value is a…
Business Systemisation
Introduction Good systems are key in the successful day-to-day operation of businesses. Having robust systems in place makes it easier for a business to expand or set up multiple locations. It also makes it easier for a business owner to work on, rather than in, their business. Contents This guide contains the…
Business Structures
Introduction Small businesses can be operated by the utilisation of a number of different entities. This guide contains the following topics: Sole Trader Partnership Family Trust Company If you intend to start a small business, discuss it with your chartered accountant and solicitor before business operations commence, prior to signing any contracts. It is…
Business appraisals preparation
Systematic Approach to a Business Appraisal 1. Assess What You Are Buying Goodwill Plant & Equipment Fixtures & Fittings Stock and Work in Progress Debtors Franchise Rights Training Licenses Liabilities Other Assets Business Structure 2. Financial Assessment Historical Accounts (3 years) Analysis of Significant Expenses Ratio Analysis Review Income Components Look Behind the…
Building an Employment Agreement
Legal status and requirements Under the Employment Relations Act (ERA) you must supply a written agreement to your new employee and they must sign it to indicate acceptance of your terms and conditions of employment. Until it is signed, it remains a draft Employment Agreement. The employer signs it before sending it out with a…
Branding & Promotions
Introduction Your branding and promotional efforts make up a large part of your marketing and are important to get right. This guide focuses on the subject of branding and promotional efforts which promote your business in general. Specific parts of your promotions such as advertising and direct marketing will be dealt with in further guides,…
Behavioural profiling
Introduction Behavioural profiling is a valuable tool, which has transformed individuals as well as businesses worldwide. It is a tool used to identify behavioural style by measuring attributes or qualities of a person and aspects of his or her personality. It can be used in many contexts, both in the workplace and elsewhere. Behavioural profiling…
Advertising
Introduction Advertising is the way you let the general public know about your business and your events. As well as general advertising to promote your business, it is highly likely you will need specialised advertising to let people know about specials, sales and events. Advertising is your call to action. Contents This guide contains…
ACC levies
Introduction ACC provides personal injury cover for all New Zealand citizens, residents and temporary visitors to New Zealand. ACC uses a risk-based classification system where business activities are grouped so the costs of work injuries are fairly distributed among similar businesses. ACC sets levies for each group by comparing costs of previous claims with total…
Writing a business plan
Why write a business plan? Writing the plan helps you think about what you are doing: The plan sets out your strategy and action plan over the next one to three years, or sometimes longer. As part of the process you set concrete objectives and plan how you will achieve them. Writing the plan helps…
What can I claim?
The Inland Revenue Department collects tax in accordance with several Acts including:- Income Tax Act GST Act It also collects and distributes Child Support. Sometimes you can “make a claim”, which is acceptable for one Act but not for another. e.g. The GST incurred in setting up a company can be claimed, but the cost…
Your Annual Accounts
The notes below have been prepared to assist you to minimise the cost of our work. Due to the complex nature of tax law and the penalties for mistakes, this firm will only accept responsibility for tax advice supplied by its principals. Business questionnaire Please ensure this is completed and signed. If you have…