Starting and Operating a Business in New Zealand

Star t ing and Operat ing 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: [email protected] 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

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

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.

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

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: [email protected] Web: www.lume.co.nz

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

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: [email protected] W: karenfranklin.harcourts.co.nz

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.

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.

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

[email protected]

www.eventdesigners.co.nz

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: [email protected] 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.

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: [email protected]

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?

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

[email protected]

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

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: [email protected]

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

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

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).

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;

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: [email protected] www.insinc.co.nz

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.

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 [email protected] for details of the next event

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

[email protected] - 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

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

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: [email protected]

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: [email protected]

For information on how to feature in this book contact Sarah on 428 0204

or email: [email protected]

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.