4
Definition The Ministry of Business, Innovation and Employment defines a small business as one employing fewer than 20 employees. Living the self-employment dream Small businesses form the backbone of the NZ economy, representing 97 per cent of all business enterprises and employing 30 per cent of all Kiwi workers. But as anyone who has started or bought a business knows, it is not for the faint-hearted. The self- employment dream can quickly turn to a nightmare when long hours are only rewarded with escalating bills and little sign that a healthy work-life balance will ever be achieved. According to Statistics NZ, of the enterprises that started in February 2014, 85 per cent survived their first 12 months. However, in the longer term, only around 27 per cent of enterprises survived to celebrate their first decade. The 10-year survival rate varied significantly across industries – 36 per cent for financial and insurance services at the higher end, and 18 per cent for information media and telecommunications at the lower end. The sectors employing the most people are retail trade, health and professional services – combined, they employ 27 per cent of all workers. In a snapshot from Statistics NZ taken in February last year, for every 100 enterprises in New Zealand, there were 12 start-ups (births) and 11 closures (deaths). Sole traders (with zero employees) reported the best work/life balance, with a 55 per cent satisfaction rate. On the following pages, we’ve talked to some local entrepreneurs to see how they have travelled through their first five years in business. Resources at your fingertips There is a wealth of information online to support small business owners. Here’s a few to start with: business.govt.nz This is a great site for employers who want to check that they are meeting their HR responsibilities. There is also information on what a new business is required to do by law, as well as tax and finance tips. nzentrepreneur.co.nz/resources This site provides an index to a range of information and content, from around NZ and overseas. cab.org.nz The Citizens Advice Bureau does a great job of giving people advice on a whole host of issues, including what financial assistance a small business may be entitled to and where to go to find out more. businessfeature 26 Mahurangimatters April 20, 2016 Five years in business bizbuzz.co.nz Who better to give advice on small business than small business owners? This site curates information, resources and tools from Kiwi business owners. theshapeofmoney.co.nz Again, this site is a helpful directory of where to go to find what you are looking for, with an emphasis on the financial side of running a business. ird.govt.nz There is no avoiding tax so you may as well be well informed on what your responsibilities are. There’s a dedicated section for businesses and employers which covers receiving income, GST, employing staff and doing business overseas. Small enterprises need good HR systems By Joy Paxton Being small is no excuse to be sloppy, shabby or unprofessional. I regularly see business owners at the five-year point either enjoying growth with outstanding performance and results, or struggling to grow the business and not really enjoying their work. With this latter group, there are some common themes in their systems and processes. Often they have one or all of the following: • No human resources (HR) plan to sit alongside the business plan • Poor hiring and termination processes • An inability to deal with low and poor performance quickly • Poor communication systems with employees, suppliers and customers • Find legal compliance an obstacle to getting the business done This clearly wastes a huge amount of time and money, but fortunately, it does not take huge amounts of time and money to change the way these practices are managed. Just as every big business started out small, and grew through their management, development and implementation of systems and processes, a small business can easily achieve this growth and success by adopting this approach. A professional look and feel to the business is paramount. Successful big businesses look and feel professional and if your business is not professional, perhaps it is amateur? Let’s remind ourselves that professionals are paid handsomely and amateurs are not. Time restraints are a real drain on small business and as the business grows, owners need to plan for a future that frees up their time. This could involve accessing outside advisers. Joy Paxton provides a wide range of human resource services to growing and successful local business owners. This is her ninth year in business locally. • HR planning & policy • Recruitment & redundancy • Business growth or downsizing • Employee conflict & resolution • Employee retainment • Wage & salary guidance • Training & development • Health & Safety programs/audits A professional and commercial approach to providing human resource knowledge and expertise. Call Joy Paxton of People + People for help with: Contact Joy Paxton on 425 6459 or 0274 815 155 [email protected] www.peoplepluspeople.co.nz

Mahurangi Matters, 20 April, 2016, Five years in business

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Page 1: Mahurangi Matters, 20 April, 2016, Five years in business

DefinitionThe Ministry of Business, Innovation and Employment defines a small business as one employing fewer than 20 employees.

Living the self-employment dreamSmall businesses form the backbone of the NZ economy, representing 97 per cent of all business enterprises and employing 30 per cent of all Kiwi workers.But as anyone who has started or bought a business knows, it is not for the faint-hearted. The self-employment dream can quickly turn to a nightmare when long hours are only rewarded with escalating bills and little sign that a healthy work-life balance will ever be achieved.According to Statistics NZ, of the enterprises that started in February 2014, 85 per cent survived their first 12 months. However, in the longer term, only around 27 per cent of enterprises survived to celebrate their first decade. The 10-year survival rate varied significantly across industries – 36 per cent for financial and insurance services at the higher end, and 18 per cent for information media and telecommunications at the lower end.The sectors employing the most people are retail trade, health and professional services – combined, they

employ 27 per cent of all workers.In a snapshot from Statistics NZ taken in February last year, for every 100 enterprises in New Zealand, there were 12 start-ups (births) and 11 closures (deaths).Sole traders (with zero employees) reported the best work/life balance, with a 55 per cent satisfaction rate.On the following pages, we’ve talked to some local entrepreneurs to see how they have travelled through their first five years in business.

Resources at your fingertipsThere is a wealth of information online to support small business owners. Here’s a few to start with:business.govt.nzThis is a great site for employers who want to check that they are meeting their HR responsibilities. There is also information on what a new business is required to do by law, as well as tax and finance tips.nzentrepreneur.co.nz/resourcesThis site provides an index to a range of information and content, from around NZ and overseas.cab.org.nzThe Citizens Advice Bureau does a great job of giving people advice on a whole host of issues, including what financial assistance a small business may be entitled to and where to go to find out more.

businessfeature26 Mahurangimatters April 20, 2016

Five years in businessbizbuzz.co.nzWho better to give advice on small business than small business owners? This site curates information, resources and tools from Kiwi business owners.theshapeofmoney.co.nzAgain, this site is a helpful directory of where to go to find what you are looking for, with an emphasis on the

financial side of running a business.ird.govt.nzThere is no avoiding tax so you may as well be well informed on what your responsibilities are. There’s a dedicated section for businesses and employers which covers receiving income, GST, employing staff and doing business overseas.

Small enterprises need good HR systems By Joy PaxtonBeing small is no excuse to be sloppy, shabby or unprofessional. I regularly see business owners at the five-year point either enjoying growth with outstanding performance and results, or struggling to grow the business and not really enjoying their work. With this latter group, there are some common themes in their systems and processes. Often they have one or all of the following:• No human resources (HR) plan to sit

alongside the business plan • Poor hiring and termination processes• An inability to deal with low and poor

performance quickly• Poor communication systems with

employees, suppliers and customers • Find legal compliance an obstacle to

getting the business doneThis clearly wastes a huge amount of time and money, but fortunately, it does not take huge amounts of time and

money to change the way these practices are managed.Just as every big business started out small, and grew through their management, development and implementation of systems and processes, a small business can easily achieve this growth and success by adopting this approach. A professional look and feel to the business is paramount. Successful big businesses look and feel professional and if your business is not professional, perhaps it is amateur? Let’s remind ourselves that professionals are paid handsomely and amateurs are not.Time restraints are a real drain on small business and as the business grows, owners need to plan for a future that frees up their time. This could involve accessing outside advisers.Joy Paxton provides a wide range of human resource services to growing and successful local business owners. This is her ninth year in business locally.

• HR planning & policy • Recruitment & redundancy• Business growth or downsizing • Employee confl ict & resolution• Employee retainment • Wage & salary guidance• Training & development • Health & Safety programs/audits

A professional and commercial approach to providing human resource knowledge and expertise.

Call Joy Paxton of People + People for help with:

Contact Joy Paxton on 425 6459 or 0274 815 [email protected] • www.peoplepluspeople.co.nz

Page 2: Mahurangi Matters, 20 April, 2016, Five years in business

businessfeature 27MahurangimattersApril 20, 2016

Café Q Warkworth

Neil Taylor Cabinetmaker & Design, Warkworth

True West Horsemanship, Warkworth

Peter Quinn and his wife Trisha opened Café Q in Riverside Arcade on March 30 2010 after three weeks of renovating. They currently employ four people but there can be up to six when needed. Peter works around 65 hours a week, then does the paper work when he gets home.

How has business been? Business has been steadily increasing each year, with a customer base continually growing. We have been really lucky to see the growth in the business each year. It’s great to see customers appreciate all the effort and time you put in.

Would you have done anything differently? No, we are really happy with how things have run from day one! The size of the business has stayed the same, the premises are too small to expand. In terms of future expansion, there may be something in the pipeline.

What keeps you motivated? Happy returning customers, as it often isn’t easy getting up at 4.15am every day! A love of cooking also helps, as well as working in a small staff team. Being a chef, you are always striving to send out the perfect meal, whether it be perfect poached eggs or a steak sandwich, you just want it to be the best. In 10 years time I would like to think the business will still be going strong under

new ownership!

What have been the biggest challenges? Each business is different but I have found trying to attract skilled staff has been a challenge. I have been lucky that I often can keep good staff in the job once they start working for me. There have been times when I have been advertising and no-one has applied for the role. That can be both challenging and stressful!

What advice would you give to someone starting a business? If you are looking at starting up or buying into a café, you should do your homework and research first so you can see what you can add to the market. I also think business owners need to be prepared to change and adapt when necessary.

It’s great being part of a small business community. We have been extremely lucky to have such loyal supportive customers, family and friends.

Neil Taylor opened his business in Glenmore Drive in May 2011. He now employs five staff and works around 60 hours a week.

How has business been over the past five years? Business has been good with our name and brand getting better known.

Have you expanded? We have been growing/expanding at a steady and controllable rate. I think we could be bigger than we are now but I like the size we are because it means we can easily control the standard of work that goes out the door and it gives the clients a more personal touch. Over the last five years, we have been upgrading our machines to larger and newer technology as needed.

What keeps you motivated? Client satisfaction and the variety of work we do. I really enjoy putting ideas on paper with a client and then turning these into reality. It’s great bumping into past clients down the track and hearing how happy they are with

the work we did for them. We take customers from design to installation on all their interior cabinetry needs, and we pride ourselves on our attention to detail and client satisfaction.

Where do you see your business in 10 years time? I see a bigger team and I see us showcasing more of our products and services in a larger showroom, while still producing great quality cabinetry.

Any advice for a new business owner? My advice for someone thinking of starting out would be to make sure there is a need for what you propose to sell and go for it. It’s not always easy, but it will be rewarding. Looking back at what you have achieved over the years is a great feeling.

True West Horsemanship opened in February 2011. It is owned by Ben and Natalie Longwell. Ben was originally from Colorado, while Natalie was born and raised in Matakana. Ben and Natalie employ a horsemanship apprentice. They normally work around 50 hours a week but have learnt when it is time to ‘shut off’. They have three children under five so put value and priority on family time and try to not have work cross over into this time.

How has business been over the past five years? Steadily growing and expanding. When we started Ben just did horse training (breaking in and problem solving) and training clinics (teaching people how to communicate with their horses). We now do clinics all over NZ, import high quality Western and Vaquero horse tack, and take an escorted ranch tour each year, where we take a group of Kiwis to experience life on a working cattle ranch in the US.

Would you have done anything differently? I am sure there are little things we would change, but you are always learning from your experiences and we believe you shouldn’t live life looking back with regret but learn from your mistakes and move forward with greater knowledge.

What keeps you motivated? Passion for what we do in teaching both horses and people. It is more than just a job – the horsemanship and being a cowboy is a way of life.

What do you believe are the biggest challenges for Mahurangi businesses? The government rules – the new, huge health & safety law could be crushing for a lot of small businesses if they start doing random inspections and fining people. Also, the taxes are quite high for people starting off in business – they don’t make it easy and helpful for people to start their own business.

What advice would you give to someone who might be thinking of starting their own business? Research all the pros and cons and the market you want to enter. Find a great mentor who you respect and can learn from. Be prepared to work hard.

Riverside Arcade, Warkworth | 425 7034

[email protected] | 425 7071

[email protected] | 021 178 2891True WestHorsemanship

Authentic Trust Based Horse Training & Clinics

• Horse Training • Colt Starting (breaking in)• Training Clinics • Private Lessons• Problem Solving • Leadership Correlations www.truewesthorsemanship.com

Ben Longwell: 021 178 2891 or 09 422 5030

Training and lessons at our facilityjust 10min west of Warkworth

“The horse knows...he knows if you know...he also knows if you don’t know.”

- Ray HuntOur business is not just about educating

horses, it’s about educating people as well. We run different Horsemanship Clinics across NZ and also have private lessons

available for horse & owner at our training facility. We owe it to our horses to always be upskilling and learning a better way to

communicate!

Page 3: Mahurangi Matters, 20 April, 2016, Five years in business

28 Mahurangimatters April 20, 2016 businessfeature

ECM Signs, WarkworthLeigh Sheehan opened his doors for business around the end of 2010. He normally works around 59 hours a week and employs one part-timer.

How has business been over the past five years? It’s had its up and down for sure, but I’ve just worked through it.

In hindsight, would you have done anything differently? I would have just worked harder. I’ve expanded and I am planning further expansion which will involve more staff, a bigger place and more in-house production.

What keeps you motivated? Happy customers and doing the best I can.

What have been the biggest challenges? Keeping the small community feel in this

ever growing place. Provide friendly service is the best advice I can give.

Where do you see your business in 10 years time? I see myself growing bigger with more staff and providing the best service we can offer to make it the best experience there is.

Do you have any advice for someone else starting a business? Trust yourself, don’t be afraid to fail, don’t listen to negativity, give back and work your ass off.

[email protected] | 021 466 692

Fresh Café, Warkworth

Beaurepaires, Warkworth

Gaye Rowland bought Fresh Café in Warkworth in July 2011 and carried on with the wide range of food the previous owner had been offering. She employs a cook, Leona, plus three after school students who help close up. Extra part-timers are taken on over summer. Gaye estimates she works about 55 hours a week in the shop, doing book work and other administration work at night or on weekends.

How has business been over the past five years? Business has shown steady growth over the years.

What have your learnt? It’s hard work, very tiring but very rewarding when customers return saying thank you.

In hindsight, would you have done anything differently? No, not really. We’ve adapted as we’ve gone along. When we started, my husband didn’t see the sense of offering gluten free, but just as well we did because it’s huge. Leona regularly changes the menu options and what’s on offer in the cabinet and on the specials board, and that’s important. Everything is homemade and we cater for all tastes and every appetite, small to large. We’ve made a point of keeping the price competitive.

What keeps you motivated? Our customers keep us motivated. It’s great to hear their feedback when Leona tries a new recipe and many of these have become favourites. We’re lucky to live and work in such a great community.

What do local businesses need to do to prosper? Parking and traffic are two of the main issues that spring to mind. Council is talking about a population in Warkworth of 20,000 but the roads are already choked. We have one loading bay in front of the shop but it is constantly being used by shoppers.

Any advice for someone starting a business? Do your homework, talk to people in the know and don’t start another café! Warkworth needs diversification. There are lots of things missing such as a good men’s shoe shop or a baby and children’s wear shop.

We just want to say a huge thank you to our regulars who continue to support us throughout the year. If you haven’t been in yet, come in and say “hi” and have a browse.

Brendan and Michelle Woolley opened their tyre repair workshop in Mill Lane in November 2011. They both work in the business and employ four staff. Brendan works 10 hours a day during the week and around four hours on Saturday.

How has business been over the past five years? Ridiculously busy. There was only one guy working in the business when we bought it and it was pretty rundown. We’ve doubled our turnover every year. It’s been phenomenal. When we took over we changed the shop around, replaced a lot of the gear and put in a waiting room.

Why do you think you have been successful? I’m a real stickler for quality and we really care about people’s safety so we make that extra effort to help people. You also have to make sure your prices are competitive.

What keeps you motivated? I’m probably a pretty motivated person naturally. I believe in doing things right and getting things right. I guess you’d say I’m fussy and I like to do a good job. I like being hands-on in the business and it really bothers me when perhaps we don’t get things quite right. I think the fact that the owner is there to take responsibility for what’s happened is where small business

has it over large corporates.

Are you planning to expand? I don’t want to talk too much about that yet, but it is increasingly difficult to logistically manoeuvre big trucks into our workshop because we’re sandwiched between two of the worst intersections in Warkworth. So we’re looking at this, but we’re also aware that being in central Warkworth works for us. It’s very convenient for customers to be able to drop their cars off and go shopping.

Any advice for someone starting a business? Get your systems right and try to get the right people. We have struggled at times to attract good staff and it’s only getting harder as house rental prices rise. As you get older, you cope better with the ups and downs of business because you know not to panic when things don’t go quite according to plan.

Argyll Angle, Warkworth | 021 173 3822

14 Mill Lane, Warkworth | 0800 489 737

Page 4: Mahurangi Matters, 20 April, 2016, Five years in business

29MahurangimattersApril 20, 2016businessfeature

Andrew Steens and Angela Wain were one of the original five franchisees to sign with the Mike Pero brand in June 2011. Their office was the first in the country, opening in November of that year. They both work in the business and now have nine licensed salespeople plus four administration staff, two of which are also licensed. Angela normally works 60-70 hours, while Andrew does about 50-60 hours.

How has business been over the past five years? Outstanding, it’s just gone from strength to strength. We started as the smallest and newest agency in town, and now we are the leading agency by number of properties sold each month.

Knowing what you know now, would you have done anything differently? I think we could have opened the Warkworth office a bit sooner, but we were a bit hesitant about expanding so fast. Otherwise, it’s all gone to plan. We have had a fast and continuous growth rate going from one little office in Point Wells and adding offices in Warkworth, Wellsford and Mangawhai. We now expect the business to mature and the growth rate to slow down. We are currently looking at opening one more office and that will probably be it. We recently sold our Mangawhai office to one of our staff (Alan Corkin), which was a satisfying experience and they are doing well also.

What keeps you motivated? For Angela, it’s providing absolute top class service and results for our clients. For me, it’s all about marketing, strategy and competition. Fortunately, our different roles in the business match these different motivations.

What do local businesses need to do to prosper? It’s about service, service, service! Being so close to a major city there is a lot of competition from other

businesses within and outside the area, so unless the service you provide is the best in the business, you’re going to get sidelined by someone better.

Where do you see your business in 10 years time? We’re not getting any younger and these days real estate needs people who are seriously tech savvy, energetic and focused, so over the coming years we’ll gradually sell the other offices and wind back to just Point Wells again so we get some quality of life back.

Any advice for someone starting a business? Just go for it! Seriously, make sure you have enough capital to keep yourself afloat for at least 12 months. Then as quickly as you can, hire or contract people that make up for your weaknesses. We love doing business in the best part of the country, in the best country in the world!

Bill Holden started as a landscape contractor in Ellerslie, in 1987. He moved to Rotorua in 1998 and then Snells Beach in 2010 where he has operated as a landscape designer and project manager. He has employed up to 12 people, but now sub-contracts and passes work on to other landscaping businesses for implementation. He works an average of 30 hours a week, plus about 12 to 15 hours administration and travelling time.

How has business been over the past five years? I have seen steady growth in my turnover, which at the close of the 2016 tax year, has almost doubled since 2011.

I have adapted modern marketing techniques, (excluding Facebook and Twitter), by establishing a good website and maximising search engine opportunities. Belonging to reputable organisations such as LIANZ and the GDSNZ, and utilising Linked In and Google Adwords through Yellow, has made a significant difference to my exposure over the internet.

Would you have done anything differently? I have found in the past that size did not work for me as a landscape designer. I can deliver much better personal

service and a better product by keeping my business small. In the early 90’s I engaged two excellent designers to handle and increase turnover, but I spent more time ‘putting out fires’ than enjoying the process of creating good landscaping.

What keeps you motivated? I am motivated by sharing my clients’ pleasure,

while helping them realise the potential of their living spaces – and being paid for it! The biggest challenge for Mahurangi businesses is finding the best ways to capitalise on the current growth in the region. Ensuring delivery of high quality service and product, as well as keeping up with modern marketing techniques will always assist a business to prosper and thrive. There is nothing more satisfying than visiting a garden that has reached maturity, knowing we had a hand in creating it. But a good garden will always need some level of maintenance, and even then, will never last forever. We like to think that our clients will be back for repeat business when the time comes.

Where do you see your business in 10 years time? I see my business pretty much where it is now – assisting people by creating great landscaping solutions for their properties.

Any advice for someone starting a business? Starting a business requires knowing your product, assessing your market and your competition, and having a good accountant.

Mike Pero, Mahurangi

Bill Holden Design and Landscape, Snells Beach

warkworth.mikepero.com | 425 8935

[email protected] | 425 4009