New Year, Time to Review your Business

As we’re safely into 2024 and in a traditionally slower month, now is the perfect time to review your business. As experienced business advisers, we know the value of taking the time to ask yourself some questions about your business, and what you’d like to do differently this year. It’s the perfect time to pose a few questions and gauge where you’re at with your planning, strategy, financial goals, and business goals. We can hold both you and the business to account.

Here's the top 7 questions you need to be asking yourself as a business owner:

1. Why does a customer choose your brand over another?

It’s important to know what makes your product/service valuable to your customers so that you can market what you offer effectively. Why does your brand stand out, what do you do well, what do you need to work on, and do any opportunities or threats exist? Who is your ideal customer? Who are you selling to, what problem or issue are you solving for them, and how can you better target them? We can work with you to help you pinpoint the best customers to target.

2. Are your employees/contractors happy?

Your staff are a vital asset to your business, but if they’re unsatisfied or have disengaged, then that’s a risk to your business. How do you show your staff that they’re valuable and important? Are you paying at or above market wage? What benefits do you offer your staff? What makes working for you better than working for a competitor? What can you do to make your business and workplace more attractive to potential employees? We can help you review this and the benefits you’re offering your staff.

3. Are your cash flow goals right?

How is your cash flow and are you meeting your cash flow goals. Do you have any specific costs or inefficiencies that are preventing you from achieving a positive cash flow position? Are the financial management processes you have in place working for you or against you? Do a review to identify where you’re lacking and where you can tighten your cash process.

We can review your cash management and look for efficiencies and cost-saving opportunities.

4. Are there aspects of your business that keep you awake at night?

It can be stressful being the boss and there’s likely to be a lot playing on your mind. What areas of your business are concerning you? What business issues or unexpected pitfalls are a cause for concern? What can you do to help smooth these out? We can offer advice from our decades of experience, so whatever the issue, we can work together so you can get a better night’s sleep.

5. Have you implemented tech and AI?

How digital is your business? Technology moves fast, with AI solutions and digital systems now an integral part of many business models it can be tricky to keep up with the latest innovations. So, what tasks can you automate or streamline? There are a lot of apps, software tools, and digital solutions out there. A lot of them integrate with one another, so if there’s a pain point in your business, we can suggest apps, software tools, and digital solutions to boost your business.

6. Have you thought about where your business will be in five years?

Not all businesses are focused on growth, but outlining your key goals around growth is an essential part of your business strategy. When the business is busy, the temptation is to focus on the most pressing fires, but without a forward-looking focus, you’re unlikely to meet your business’ goals. Ask yourself where you want to be in five years, and how you plan to get there. We'll help you create a detailed five-year plan so that you’re getting what you want out of the business.

7. Do you have the figures you need at your fingertips?

Your data drives your business, so do you have key financial information easily accessible? Think about where you need detailed data and metrics, and how this could put you in better control of the business and upcoming decisions. We can help you expand your reporting and management information so that you have a better eye on performance, spending, cash flow, and targets.

Talk to us about running a health check for your business

If these questions have started you thinking about your business efficiency and growth plans, that’s a good thing. If you’d like to take this process further, book a meeting with us to talk through your goals, aspirations, challenges, and strategy, so we can help you take the next step in your journey to entrepreneurial success.

< Older Post Newer Post >

GST changes for online marketplaces and apps

25 Apr, 2024

From 1 April 2024 “Electronic Marketplace” transactions will be subject to GST in New Zealand, even if the person delivering the service, is not GST registered. This legislation was passed in 2023, and although National campaigned on repealing this law if they got into power, they confirmed in December 2023 that they will now leave the legislation in place. The new legislation covers more than just properties, it also covers Uber and Uber Eats, for example. But we are just focusing on the property implications and what it means if you own or rent out a room, bach, or an investment property. If you have booked a property for a work or family trip any time after 1 April 2024, you should also continue reading, as there are possibly implications for you too. So, what does the law say? That platforms like Airbnb, Booking.com, Expedia, Vrbo etc. are required to charge GST on all transactions and pay this GST over to Inland Revenue (IRD) where the owner of the property is: GST registered: Pay 15% to IRD. Report your income as zero-rated on your GST return. This ensures the income is declared and you do not pay the GST twice. It also means that you claim your GST on expenses, and will likely receive refunds each GST return. NOT GST registered: Pay 6.5% of the GST to IRD and pay the remaining 8.5% to the property owner. If you are not registered for GST there is nothing for you to do. You only qualify for an exemption if: your income from these activities is over $500,000 per year: or you had more than 2,000 nights booked in a year. This means that all these platforms are frantically updating their software to allow for the collection and payment of GST to IRD. Here’s what we do know: Expedia : They have NOT been able to update their software and will be removing ALL NZ listed properties from 1 April 2024, unless you qualify for the exemption above. If you have a property listed on Expedia, they possibly may remove it. There is no clear guidance as to what happens if you have bookings for the future but we suggest you contact your guests. Be careful how you do this though, as it’s against Expedia’s rules to make contact with guests outside of their system. If you are travelling and made a booking on Expedia, you may also have an issue - contact your host to work out what to do. Vrbo (ex Bookabach): While owned by Expedia, they have upgraded their software and will be able to cope with the new GST. But be aware, from 1 April they will automatically add 15% GST to all bookings. So, this will increase your nightly rate by 15% and make your property more expensive. You will have to manually update your rates to reflect this change. Airbnb: They, too, have decided they will add 15% GST to every booking from 1 April 2024. Their system says they are not yet set up to deal with NZ GST. Booking.com: They have not yet provided guidance on what they are planning to do. Will they be like Expedia and just stop supporting NZ properties or will they be like Airbnb and just add 15% to all bookings? So, a warning, if you are not GST registered, and you have not told your platform provider, it appears they will default to adding 15% GST to your property and pay this 15% to IRD. How you get your 8.5% back remains a mystery. If you are planning on booking accommodation, be wary of using Expedia or Booking.com, as a booking after 1 April 2024 could potentially cost you 15% more! In any event, landlords and holiday makers should revert to their booking platform for the latest information and policies. If you want to know more please reach out to us.

Five ways for better business efficiency

23 Apr, 2024

Everyone likes efficiency, the more efficient something is, the better - right? Especially with the economic climate still needing some work. If you’re wanting to save some time (and money), making your business processes more efficient is a good place to start. It also means that you can put more time into working ON your business, rather than in it. Here are five ways you can make your business a little more efficient. Better invoicing This sounds obvious, but the more efficient you are at invoicing, the less time you spend on it and the more time you save. And time is money. Develop a process that makes this more efficient – which is something that can vary by industry. Think about whether you can set up recurring invoices or have your staff invoice for the job on completion. Where can you reduce the headache of invoicing and make it more efficient? Streamline expense claims Develop a digital solution for your expense claims process. This way your team can submit their receipts and approve expenses online – which reduces mistakes, and not having everything you need to approve the expense. Utilise online/digital software Almost everything has a digital version, so it’s time to utilise it so you have business data wherever you are. No more going back to the office to check a number, getting back to clients with final details, or reworking quotes because the numbers were wrong. If it’s all available at your fingertips, this drives efficiency. Maintain lean(er) stock levels If your business sells inventory, lean inventory management could help you reduce unwanted costs, and become more efficient. The idea is you only produce or order in the stock you actually need. By optimising inventory levels, you can reduce carrying costs and align supply with customer demand, which means you won’t be falling over, or holding space for, excess stock. Review your overheads Another component of business efficiency is keeping costs down – like overheads. Have you checked if the costs from your suppliers, like rent, bills, and transport, are needed? Have you also looked for ways to reduce these costs?Consider whether you can achieve the same outcome for lower costs? Could alternative suppliers provide a quality service at lower cost? Are office supplies being stockpiled from habit rather than need? If you need tailored advice on how you can make your business model more efficient, get in touch with us.

How to write a recruitment advertisement that stands out

18 Apr, 2024

Finding the right staff for your business can be tough. Hiring can be challenging, but the right team can really support the growth of your business. Attracting the right staff starts with writing a recruitment ad that makes your role stand out in the crowd. Here are three ways you can make your job ad more appealing: Sell the role Rather than beginning the ad with the job description or a list of requirements, start with what makes the job most appealing. Is it the industry, location, pay, or perks? Be up front with the advantages so that it’ll grab people’s attention and encourage them to read further. Keep it short and sweet While it can be tempting to write a novel so that it paints your business in the best light, it’s better to keep your job ad short and sweet. Aim for a maximum of 700 words that are straightforward with readable language, and avoid adding unnecessary words or repetition. Avoid meaningless clichés Every job ad mentions their amazing team, or how the environment is fast paced. Everyone says they’re offering a ‘competitive salary’. All jobs are looking for self-starter’s or those who can hit the ground running. Rather than using the same phrases as everyone else, be different. What can you write that makes your business stand out from the crowd – you could provide the actual salary, for instance. Describe the job, the team, and the environment clearly and accurately. This helps the candidate get a genuine understanding of the role and that’s what piques their interest – not the same phrases that everyone else is using. Hiring Now that you’ve attracted the right person for your team, make sure you cover your bases when hiring (especially around trial periods). If you need help with employment contracts or other employment-related questions, let us know we’re here to help.