Did you know customer retention is faster and, on average, costs up to seven times less than customer acquisition? If you’re looking to improve your bottom line by turning your current customers into lifetime customers, here’s the best way to communicate with them. Communicate kindly Customer service is key, whether it’s in-person, on the phone,…
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Paid parental leave applications online
Now’s the time to let staff know applying for paid parental leave just got easier. As of March 2021, your staff can apply for paid parental leave via myIR on the Inland Revenue website. The site can now pre-populate information it already holds for customers, such as contact details, name of employer(s), and an estimate…
Six things you should know before filing your EOY Tax post COVID-19
New rules to keep cash flowing If money is a bit tight as the financial year draws to a close, here are four tax measures focused on providing and enabling cashflow that you might like to consider: 1. The tax loss carry-back rule, which means if you’re expecting a tax loss for the year ended…
Trusts Act 2019, What you need to know
Trusts Act 2019 As of 30 January 2021, there will be significant changes to New Zealand trust law. Therefore, 2020 is the year for trustees to review trust arrangements and to make any necessary changes, and to be ready to comply with the Trusts Act 2019. The Trusts Act 2019 is the first major rewrite…
Keeping you and your staff pain free in 2021
Whether you and your staff are sitting or standing at work, there are risks to physical and mental wellbeing that can be easily avoided. Here are some top tips from Erin Holland from Active+, who’s an experienced physiotherapist in occupational health. What are the key health and safety risks when you’re working in an office?…
Lead by example: be a mental health champion
Did you know the main reason people take time off work is due to poor mental health? So, it’s in your best interest to promote positive mental health at work. Plus, stats show investing in building and maintaining good mental wellbeing at work boosts productivity, sales, creativity, and customer satisfaction. Here are some straightforward, effective…
Implementing health and safety so it sticks
Have a health and safety policy and plan in place? Great! But how can you ensure everyone’s 100% on board? Here are four simple steps from Livewire HR to get your crew on the same page. Make it relatable. To engage staff in health and safety at work, they need to understand why health and…
Health and Safety: Do I need help getting it right?
Since the Health and Safety at Work Act 2015 came into place, specialised advisors and consultants have been popping up all over New Zealand. But how do you know who’s genuine? We talk to Rebecca Jenkins from Livewire HR, who says it’s all about doing your groundwork. What should businesses look for when seeking help?…
From Airbnb to boarders: What’s new for property owners?
Renting your home or bach online? If you rent a property for short periods, you need to know your tax commitments. New rules announced last May come into force this financial year. Here’s what you need to know: 2,500 If your tax due at end of year is more than $2,500, you’ll have to…
What’s new in 2020?
Partnership Law gets a makeover: The Partnership Law Act 2019, which governs business partnerships …
Are you a landlord? Keep up with the changes
With a third of New Zealanders renting homes, and some for a lifetime, it’s key to have clear, fair rules for tenancies. The Government’s tenancy law reforms announced late last year aim to improve tenants’ security and stability while protecting landlords’ interests. The Residential Tenancies Amendment Bill is now making its way through Parliament,…
Five steps to a healthy rental property
To boost the quality of rental properties in New Zealand, the Healthy Homes Guarantee Act was passed in 2017. If you’re a landlord, there are five actions you need to take to ensure your property meets the Healthy Homes Standards. By 1 July 2024, you need to provide: Fixed, efficient and healthy heating devices…
New kilometre rate for claiming motor vehicle expenses
Are you using your car for business purposes? It’s timely to outline the process for claiming tax on your work vehicle expenses. If you’re using a vehicle for business purposes, you can claim tax back on expenses. If you use the vehicle only for business, you can claim the full running costs. If you…
Four-week checklist to keep tax time low-stress
Week 1: First things first Talk to your accountant or bookkeeper. They’ll tell you what you need to do before 31 March including what you can claim for and what you can’t. Remember, tax time is busy for them too, so the more prepared you are, the smoother the process, and the better the…
Family Trusts
Introduction Family trusts have become a popular way of conducting small business operations in New Zealand. There are a number of persons who form and operate the trust. Settlor This is the person who establishes the trust and signs the trust document. They may transfer property other than the initial settlement to the trustee to…
Pricing and Profits
This guide contains the following topics: What is profit? How to increase profit Developing a profit improvement strategy Adding value What is profit? Profit is residual The important thing to note is that profit is ‘what’s left over’. In other words, profit is residual. It is the consequence of what happens in and to your…
Terms of Trade
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…
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,…