Bay of Plenty Business News this month celebrates seven years of publishing. We had a look through the archives to see what we’ve covered over the seven years – the results were surprising. We also invited a selection of other successful Bay businesses to talk to us about their growth paths ... see pages 6-10
www.bopbusinessnews.co.nz
CONTACT INFORMATION
PUBLISHER
Alan Neben, Ph: 021 733 536
Email: alan@bopbusinessnews.co.nz
EDITORIAL
Alan Neben, Ph: 021 733 536
Email: editor@bopbusinessnews.co.nz
PRODUCTION – Copy/Proofs/Graphic Design Times Media – Clare McGillivray
Bay of Plenty Business News has a circulation of 8000, distributed throughout Bay of Plenty between Waihi and Opotiki including Rotorua and Taupo, and to a subscription base. www.bopbusinessnews.co.nz
Bay of Plenty Business Publications
309/424 Maunganui Rd, Mt Maunganui, 3116 Bay of Plenty Business Publications specialises in business publishing, advertising, design, print and electronic media services.
THE PORTER REPORT
Going up in smoke
Apaean, or song of praise, for our large neighbour across the Tasman. Recently the Australian government decided enough was enough and introduced a range of new restrictions on vapes. Despite them already being illegal for many, under new legislation they would become available by prescription only.
But New Zealand, despite its generally good record of being at the forefront of health and social policy change, has so far declined to take effective action against vaping.
Vaping supporters have long argued that the e-cigarettes help people to quit smoking. And I have family members now who have switched to vapes to reduce their smoking and are pleased with their decisions.
The reality is cigarette sales have steadily gone down largely as a result of growing awareness of their health dangers, government restrictions, and negative reporting of the danger they pose.
But Australia’s government said evidence that e-cigarettes help smokers quit was insufficient for now. Instead, research showed it could push young vapers into taking up smoking later in life.
A key reason is that vapes usually contain a high percentage of nicotine, known to be a key addictive substance. As Philip Morris principal scientist WL Dunn said in 1972, “No one has ever become a cigarette smoker by smoking cigarettes without nicotine,” according to online site Truth Initiative.
Recovery efforts
To declare a personal interest: I am a recovered smoker and have managed to maintain that status for a few years by keeping in mind that I’m only a couple of cigarettes away from a return of the habit – as I proved to myself by many failed quitting attempts over previous years.
which list you read, and allowing for the fact that smugglers defeat many countries’ best intentions, as many as 40 or so countries worldwide have already banned vaping.
I have considerable sympathy for the hard-pressed small dairies of our towns, which are already in many cases trying to survive a flurry of ram raids by school-age offenders. Many shops have now maxed out on vaping products and reduced their sales of cigarettes. And I’m concerned at the considerable proliferation of vape specialty shops in our towns and cities.
Vapes, or e-cigarettes, are basically lithium battery-powered devices that have cartridges filled with liquids containing nicotine, artificial flavourings, and other chemicals. When the liquid is heated it gives off a vapour that is inhaled into the smoker’s lungs.
David Porter
in tobacco product sales, vaping took off from the mid2000s and there were some 81 million vapers worldwide in 2021, according to the Global State of Tobacco Harm Reduction group.
Accelerating the rise was the growing popularity of the flavoured vapes designed specifically to appeal to the young.
As is evident in the spate of media coverage on the issue, vapes are causing a problem as a result of their growing and overt usage in New Zealand schools.
In case you missed last month’s edition Scan to subscribe
As a result, ‘Big Tobacco’ – the major tobacco corporates – have increasingly switched to vapes with their attractive candy colours and appealing flavours to attract younger people who no longer wish to smoke cigarettes.
In my defence, I grew up in an era when members of my family smoked, public places were smoke-filled, and cafes and restaurants were replete with ashtrays piled with smouldering butts.
Still, all kudos to Australia. In fact worldwide, depending
As any observer knows, we are talking about a considerable volume of smoke. Even those of us who are not especially scientific, can conclude that the ingestion of that much smoke – however cutely flavoured – is unlikely to be beneficial to the health of users or bystanders.
Paralleling the slow decline
The various nicotine gums and other paraphernalia designed to help people quit smoking are not wildly successful. No surprise then that big tobacco – already a veteran of marketing, with worldwide manufacturing and retail distribution expertise – has ramped up production and distribution of its ‘fun’ electronic device. But please be aware that this could ultimately prove to encourage an even more addictive and potentially lethal habit than tobacco.
Making Quality IT, Simple and Secure
Activities mark start of indigenous New Year
Matariki, the Māori New Year, is being heralded a month earlier in the Coastal Bay of Plenty region, compared to other parts of the country, due to its eastern location and local traditions.
Master celestial navigator Jack Thatcher has been leading a series of free pre-dawn hikoi to the summit of the region’s most significant landmark, Mauao (Mount Maunganui), to view the appearance of the Matariki star cluster.
A 24-page guide has also been released, highlighting all the ways locals and visitors can celebrate this important annual occasion.
Foodie enthusiast Stacey Jones says kai (food) plays an important role in Matariki gatherings, as whanāu gather to remember loved ones who have passed away, whilst also celebrating the present and looking forward to the future.
The Experience Matariki guide, produced by Tourism Bay of Plenty, deliberately highlights food producers and local eatery dishes which have an indigenous link or focus.
“We’ve engaged well-known Māori culinary experts Kasey and Kārena Bird, who explain how to forage for essential ingredients like kawakawa, pūhā, and ureure, and who also share their delectable pickled tuatua on fried bread recipe,” Stacey says.
“The guide gives advice on how to spot the Matariki stars. It also showcases a range of nature-focused activity options, which families or friends can do in the day or at night.”
It’s the first time Tourism Bay of Plenty has created the Experience Matariki guide, and anyone who downloads the digital version from www.bayofplentynz.com can
The Experience Matariki guide can be viewed and downloaded from our website: www.bayofplentynz.com.
our inaugural Matariki guide,” says Tourism Bay of Plenty general manager Oscar Nathan.
“Matariki occurs at the coldest time of the year, traditionally once the harvest has been completed, so we want to encourage people to relax and prioritise spending their time with the people who are most important to them.
also enter a draw to win an enticing prize.
The winning package includes a two-night stay at Watercliff, a cultural experience with Mauao Adventures, and an Izakai Bar and Eatery dining voucher.
“Each of these businesses understands the ethos of Te Ao Māori and that’s why we’ve included them in
“It’s exciting to see how Matariki is now being more widely acknowledged and celebrated across the country and our destination management organisation is very keen to support this,” he says.
Kasey and Kārena Bird forage for kawakawa as they prepare to celebrate Matariki.
NZ’s largest free STEM festival returns
Since 2018 STEMFest has been nurturing our region’s next generation of problem-solvers, innovators and leaders and this year the interactive festival is set to break new ground when it launches in October. Founder Tia Lush says the festival has even bigger goals for 2023.
“Over the past six years we have been rapidly growing the festival with more and more offerings to inspire and engage our young people and their families. This year we are excited to be working on an even bigger festival that will showcase the opportunities and latest advancements in science, technology, engineering and mathematics.”
Tia says the festival plays a vital role in engaging young people in critical sectors of our economy and by doing so helps address the predicted future skills shortage.
“There is a global shortage of people becoming scientists, technologists, engineers, and mathematicians. This will ultimately result in a shortage of future problem solvers. STEMFest aims to address this by inspiring, empowering and nurturing a new generation of young people in these fields.”
With over 10,000 free tickets issued last year, STEMFest 2023 is looking forward to breaking new attendance records with the release, today, of tickets.
“Each year we have seen an increasing number of families from Auckland, Waikato and across the North and South Island come to attend STEMFest. This year, from the interest we have already had to date, we are excited. Ultimately our vision is to become the ‘Field days of STEM’ and in doing so really shine a light on vital career paths by engaging our future problem solvers in some amazing and fun hands-on experiments.”
Billed as a blockbuster interactive
FREE TICKETS for STEMFest are now available. Sign up on the website www.stemfest.nz to receive information and ticket release announcements.
event for all ages, STEMFest 2023 will take place on Sunday October 1st. With an already strong STEM knowledge base in the Bay of Plenty region, the festival will showcase this with an exciting line-up of exhibitors and interactive elements, including animal dissections, rockets, robotics, smoothie bikes, fossils, building activ-
Proudly providing expert advice and adding value to projects across the Bay of Plenty since 1940.
ities and much more!
With its aim to bolster the STEM sector, this year’s festival has also attracted some heavy-hitting support from headline sponsor Manawa Energy, alongside local business pillars Zespri, Ballance and Sharp Tudhope.
Communications and Commu-
nity Engagement Advisor at Manawa Energy, Annie Tangata, says it’s a natural and important fit for them to support STEMFest.
“You can’t be what you can’t see. For us at Manawa Energy, STEMFest is about showcasing some of the awesome opportunities out there in the world of STEM and renewable
energy. We’re stoked to be back again this year for the biggest STEMFest yet.”
Zespri has been a part of the festival since 2019, backing STEM Wana’s ambition to inspire the next generation of innovators and sharing delicious nutritious kiwifruit for a day’s learning, experimenting and discovery.
“It’s great to take part in such an engaging and educational community event and be involved in our local STEM community to sustain and grow its future, something that we can all benefit from.” says Assistant Innovation Specialist Brooke Maddison.
The event is also supported by Tourism Bay of Plenty, the University of Waikato and TECT who all see it as a vital event for the region.
Tia says STEMFest is purposefully scheduled for the second weekend of the October school holidays allowing out of town families to also attend.
“What a great way for families to combine a holiday break in our beautiful region with some engaging and highly interactive fun and learning at STEMFest. We can’t wait to gather New Zealand’s future problem solvers together for some hands-on experiments and a celebration of STEM.”
Prior to STEMFest the organisation continues to promote awareness of opportunities in STEM to young people and their families through community events, collaborations, and meaningful partnerships with STEM in the Community activations run by STEM Wana Trust, including an outreach programme for schools in the Bay of Plenty area.
Some tough calls to come in the city’s long-term plan
Last month we started to focus in earnest on the city’s draft 202434 long-term plan (LTP) and it’s already evident that there will be some tough calls for the Commission to make.
By ANNE TOLLEY, Tauranga Commission Chair
STo experience Cheal’s award winning service,
ince our last LTP, the cost of living has increased significantly and that puts even more pressure on us to keep rates costs affordable. From the Council’s perspective, increased construction costs, higher interest rates and the general impact of inflation on our activities mean that the cost of delivering the LTP adopted two years ago and maintaining our current levels of service has increased significantly. We still need to invest in the infrastructure our growing city needs, and increasingly, in our resilience against climate change impacts such as the extreme storms, flooding and storm surges we’re experiencing across the country. We also need to be realistic about what we can afford to do in the current economic situation. That will require a tough reassessment of our priorities, with a focus on delivering the key projects now underway, like the Cameron Road urban transformation project, the Papamoa East Interchange and the work to revitalise our city centre.
Some of our previously planned capital investment projects will need to be refined or delayed, because capital does have a direct effect on our operating costs. That means some things we had intended to do in the next decade may have to wait a bit longer than anticipated, with our capital programme honed down to a level we know we can afford and that we have the capacity to deliver. The likely spend will need to reduce to around $400 million a year for the next few
years, rather than the $500plus million that would be required to deliver on all of the city’s aspirations and growth needs.
Of course we also need to maintain our existing assets and deliver the quality services the city relies upon, and while that requires ‘business as usual’ to continue, we will be doing everything we can to do more with the resources we have.
We know that this is a hard time to talk about the investing in Tauranga when the cost of living is at the front of everyone’s minds, but the reality is that we will pay in other ways if we don’t proceed with the infrastructure and facility improvements the city needs to stay safe and functional and be the great place to live, learn, work and play.
This underlines the importance of our discussions with political parties leading up to the General Election. The rating model is simply inadequate for a rapidly growing city, and together with our fellow metro cities, we continue to press for partnerships with central Government to fund growth infrastructure.
In the meantime, we look forward to bringing together the draft long-term plan and to engaging with the community and business sector later this year to check whether you think we’ve got the priorities right.
We’re planning to start the formal LTP consultation process in November, with submission hearings in December. Deliberations and adoption of the final LTP would then take place by April 2024, so that we have a resilient and workable plan in place ready for the next elected council to take forward.
AnneTolley
The rise of toxic consistency:
ARE YOUR HABITS RUINING YOUR CAREER?
Consistency is key. Or so we are led to believe. But what if ‘consistency’ is just another LinkedIn buzzword for ‘timewasting’? It’s time to discover whether the phenomenon of ‘Toxic Consistency’ could trap you in a habit of missing out on what you deserve.
MINING BUSINESS WEALTH
>
BY FREDDIE BENNETT
Guinness World Record Holder, podcast host and bestselling author, Freddie is known as ‘The Profit Hunter’. He helps business owners enjoy more time, money and freedom by discovering and extracting hidden profits in their companies. Freddie@conqueryourmedia.com
‘Mr Consistent’. That’s what they called me.
• Consistently waking up at 4:30am. Consistently running 15km every day.
• Consistently answering my client’s requests.
• Consistently there for my kid’s activities.
• Consistently managing household chores.
• Consistently keeping on top of my inbox.
• Consistently collapsing on the couch with Netflix and a bottle of Shiraz every night.
• Consistently getting it done.
I knew what I was doing. After all, I’d read books like Atomic Habits and 7 Habits of Highly Effective People. I thought consistency would bring me success.
What did consistency actually bring me? Covid. Followed by burnout. Served with a side-order of sleeping pills for insomnia.
My consistent habits had delivered a toxic impact upon my life.
So-called experts (usually with a book on ‘habit forming’ to sell) love to shout about the supposed benefits of consistent habits.
But as I lay in bed, with that oh-so-familiar feeling of a nostril impaled by a RAT test cocktail stick, I started to doubt that ‘consistent habits’ were improving my life.
Perhaps we’re doing this all wrong.
In a world of chaos, who says consistency is the answer?
Consistency leads to rigidity
We all know the story of the drowning man who refused the lifeline, the lifeguard, then the rescue helicopter, because he was consistent in his belief that a higher power would come to save him. Daisy the Great White Shark would be the only winner in that scenario.
Developing strong habits can lead
to resistance when faced with change or adapting to new circumstances.
In a rapidly evolving business landscape, being overly tied to certain routines and habits can hinder flexibility and innovation. I don’t exactly have a crystal ball, but I’d wager that flexibility and innovation might come in handy over the next few years.
Consistency causes stagnation and lack of growth
Ask any bodybuilder what happens if they never increase the weight they lift. Ask any teacher what happens if they never give pupils more challenging puzzles.
Habits, by their nature, promote consistency and repetition. However, if these habits become stagnant and fail to evolve, they can limit personal and professional growth.
Without challenging our existing habits or exploring new approaches, we can become complacent and miss out on opportunities for advancing our careers and lives. If you’re determined to walk only one path every day, you’ll never have the opportunity to go in a totally different direction.
Consistency creates blind spots and resistance to feedback
The mindgurus love to talk about building tiny, consistent habits every day.
Every day I used to spark up a Marlboro on the way to work and surf the internet until 11am, without fail. It didn’t help my mental health, and my bosses weren’t best pleased either.
Just because you’re doggedly going through the motions every single day, doesn’t mean you’re doing the right things, or being open to learning new ways.
Established habits can create blind spots, making it difficult to recognise our shortcomings or areas in need of improvement. Being too wedded to habitual behaviours usually
results in resistance to feedback, and what I used to call ‘career limiting’ behaviours.
Consistency leads to inefficiency and ineffectiveness
There are few more dangerous phrases in the business world than: “But we’ve always done it this way.”
Obviously I would never point the finger at local government departments here. But let’s face it, doing things consistently slowly and inefficiently over a long period of time can be extremely lucrative.
While habits are often associated with efficiency, they can also lead to repetitive or unproductive actions. If certain habits are not aligned with the most effective approaches, they can result in wasted time and resources.
Imagine you had to carry a bucket around with you all day, yet you decided to consistently fill it with water…congratulations, you’ve created a new habit…and given yourself a painful load to bear.
Consistency breeds a lack of adaptability and resilience
The 5am workout club loves to boast about how mentally tough and resistant they are.
But if you disrupt that morning routine, you will destroy their entire day. You will witness the office Tough Guy (or Gal) become irritable, snappy and weakened because they can no longer have ‘their’ consistent habit ‘their’ way.
Overreliance on specific habits makes it challenging to adapt to new circumstances or overcome unexpected challenges. The inability to break away from established habits can hinder resilience and problem-solving abilities.
Don’t believe me? Try solving a problem if you’ve missed out on your morning coffee, or once you realise
Without challenging our existing habits or exploring new approaches, we can become complacent and miss out on opportunities for advancing our careers and lives. If you’re determined to walk only one path every day, you’ll never have the opportunity to go in a totally different direction .”
you’ve left your phone at home. You might think an innocent habit isn’t doing any harm. But it’s when you fail to adapt to life without it, that you do some real damage to your performance.
Consistency causes you to neglect strategic thinking
Habitual behaviour can be automatic and reactive. We fall into – or out of – habits when we are bored, angry, stressed or lonely.
By allowing ourselves to be led by these habits, we bypass our natural critical thinking and strategic decision-making abilities.
In a dynamic business environment, strategic thinking is crucial. An overemphasis on habitual responses may undermine the ability to devise innovative strategies.
Blockbuster, Kodak and Blackberry all thought they were untouchable because they believed ‘what worked then, will work now and forever’. Ironically, it was the fact that consumers DID allow their technology usage habits to change, that led to
these companies’ downfall.
It’s important to say that not all habits are created equal. Of course a 30-minute-per-day reading habit is going to be better for you than a 30-minute-per-day cake-eating habit. But the habit becomes a hindrance when we start blindly following the advice of so-called experts and doing things over and over without questioning WHY.
Humans did pretty well before they were ever told to stack, build, form or hack their habits. So get crystal clear on where you want to go, the actions you must take to get you there, and the behaviours that won’t help you achieve that particular goal. Try to do more of the stuff that works, and less of the stuff that doesn’t.
Success doesn’t come from doing everything consistently right. Success happens when you recognise you need to correct course, and make the required changes quickly, to the best of your ability.
Everyone’s allowed to make mistakes.
Just don’t make a habit of it.
THE REGION’S INCREDIBLE PROGRESS OVER SEVEN YEARS
Our lead story in the very first edition of Bay of Plenty Business News (BBN) was titled ‘Boom times in the Bay’. The introduction explained, “The region’s economy is vibrant, there are signs of growth and expansion everywhere and Tauranga and Rotorua have an unmistakable buzz about them.” What better time to launch a new business newspaper?
BY ALAN NEBEN
That was seven years ago: July 2016. Today, despite unprecedented challenges that have confronted businesses everywhere in the last few years, the Bay of Plenty remains vibrant.
We decided to look through the archives and trace our journey over the last seven years, recording the highs (and some lows) and cementing our place as ‘the voice of Bay of Plenty Business’.
We’ve covered significant milestones, reported on big events, interviewed famous people, eaten sausage rolls with community leaders and sipped chardonnay with business highflyers. We’ve photographed new buildings, participated in fundraisers, and dined with award winners.
I decided we should recap some of those things here. Obviously not all of them, or even most of them, but a few of the more significant ones. I began by trawling through the BBN archives. Any of you who have ever shifted house and decided to have a quick sort through your boxes of old photographs, you’ll appreciate just how distracting and ultimately timeconsuming a task like that can be. This was no different.
As I worked my way through the backissues I was constantly amazed at the scale of progress in the region over the seven years. I am also astonished at my ability to have completely forgotten about some of the big stories we broke over the years; the exercise of wading through the archives has been worth every minute as I realise just how significant many of those early stories have proven to be.
Some headlines, in hindsight, appear to have been prophetic, others even more prescient …
Despite the devastating effects on local business and residents of 2017’s Edgecumbe floods that resulted from backto-back cyclones Debbie and Cook, those names have this year been displaced in the public consciousness by more recent 2023 weather disasters.
A good example of that ‘significance’ was immediately apparent when I flicked to the second issue, August 2016 – headline: “Tauranga decides … Council told its planned headquarters ‘too expensive’” – some headlines seem to never really change.
While certainly not the fastest development project the region has seen, seven year’s later our July issue features several stories about progress in Tauranga City Council’s CBD developments as the plans become reality.
Human Resources columnist Kellie Hamlett has been advising BBN
advice (see page 15 for this month’s column).
readers since the first edition rolled off the press in July 2016. Her professional employment insights continue to provide BBN readers the highest quality
2017 began with a slew of headline stories about new projects across the region.
Headlines included: “Mussel farm key to Opotiki’s recovery”, “Plans finalised for Zespri’s new head office”, and “Lakefront
Throughout the life of BBN climate change has constantly been at the front of our reporting.
In September 2016 Business News reporter Richard Rennie outlined the then recently commenced half billion-dollar Waihi-Tauranga road corridor. Fast forward six years and Richard’s update on that same project featured as the Business News September 2022 cover lead. Given the frustrations caused by local roading infrastructure upgrades, we have always considered our role of keeping businesspeople informed a critical one.
spa a ‘game changer’ for Rotorua”. By June 2019 we were trumpeting Zespri’s staff moving into their new Mount Maunganui headquarters and by 2022 we were covering the commencement of
While Bay of Plenty businesspeople go about their day-to-day work, Business News has worked tirelessly to keep them abreast of progress on big developments across the region. Some great examples are the feature coverage of the opening of SCION’s new Rotorua headquarters in 2021, our in-depth reporting on the Port of Tauranga in 2022, coverage of the design and opening of the
new stages of Opotiki’s Mussel farming venture and imminent opening of Rotorua’s Wai Ariki Hot Springs and Spa, proving that things really can move fast in the Bay.
GONE BUT NOT FORGOTTEN
While we don’t want to dwell on it, Covid-19 hit BOP businesses hard (as it did the rest of NZ) –the BOP Business News response was to give our business community a morale boost.
As we head into the final half of 2023, despite the challenges of climatedriven weather events and economic uncertainty, we are excited about the year ahead. If the last seven years are anything to go by, there will be exciting milestones ahead – reassurance for those of us who choose to continue to live and work in the Bay.
Tauranga Airport in 2019 and the 2020
New Rotorua Airport’s Business Hub.
of
revamped
opening
the
THE LAW SHOP RESETS FOR BIG CHANGES
BY ALAN NEBEN
It’s difficult not to be swept up by the excitement in Paula Yakas’ voice as she explains the changes happening at The Law Shop.
“In some ways, it feels like we’re coming full circle,” she says.
“I bought The Law Shop on 1 September 2008. Fifteen years on, on 1 September 2023, we are moving to a new office in Rotorua.
“We’ve been in our existing offices for seven years, but we decided the time is right for a change now.
But there’s more behind the excitement than simply the new premises. Paula explains that their team is going through a major reset.
Having bought The Law Shop in 2008, she teamed up with fellow director Stephanie Northey in 2014 to expand The Law Shop’s service as the business grew.
Paula and Stephanie went on to buy a Tauranga law firm in 2017
and open an office in Tauranga.
Although they subsequently made the call to close the Greerton, Tauranga office in 2019, they retained the Tauranga clients with whom they had built strong relationships.
“We still work with our Tauranga clients daily and meet with them on a regular basis.”
While not always an effective substitute for face-to-face meetings, The Law Shop team are able to do a lot of their meetings on-line, often saving clients time and reducing stress.
“Along the way we’ve been confronted with an array of business and personal challenges, from babies and cancer to Covid lockdowns and an uncertain economic environment.
“I think overcoming those difficult challenges has given us empathy and an appreciation of what our clients have to deal with – I think the challenges have made us relatable.
“We’ve always adopted a nofuss approach to legal matters
and combined it with a friendly, open communication style,” says Paula.
Stephanie and Paula have a special working relationship.
“We’re like best friends, and that’s why I’m so excited for Stephanie’s upcoming change.
“Stephanie specialises in family law – an area of law she’s passionate about – and from July she’s moving on to another Rotorua firm where she will be continuing with family law but more importantly, moving into working on legal issues that affect Māori.
“We’re so excited that she’s taken this opportunity, even if it is tinged with a little sadness for us both.
“But it’s the right move for her – we 100% support her, and I know she 100% supports us at The Law Shop.”
Stephanie’s move is only one part of The Law Shop’s ‘reset’.
Paula says she’s excited about the on-going evolution of The Law Shop: her ‘property team’ is going back to ‘grass roots’.
“We are now well positioned to focus in particular back on property law; it’s a space we’re strong in and our team has a wealth of experience.”
They will still cover property conveyancing, business acquisition and sales, leases, wills, trusts, powers of attorney and estate administration as well as relationship property.
In terms of the ‘reset’, Paula
Expert legal advice that solidifies your business’ foundations
For over 30 years, The Law Shop been giving clear advice for a fair price to individuals, small and medium businesses in the Bay of Plenty. If your business needs advice on Trusts, Agreements, Buying, Selling, Terms of Trade,Structure and Succession Planning, Banking, Leasing, Debt Collection or Franchising, then we’re the team for you. Contact our friendly team to find out more today.
“It’s
Law Shop
Arawa
sees the shift to the new office in September as ‘the icing on the cake’: “We’ll be slightly out of the city in Rotorua, we’ll be easy to find, and there will be ample customer parking.
going to be great.”
Paula Yakas, Director, The Law Shop
15 YEARS OF ANGEL INVESTING
Recently Enterprise Angels has celebrated 15 years of angel investing. Tauranga-based, it has become one of New Zealand’s largest, most active, and best resourced Angel networks.
Enterprise Angels offers a unique model of early stage investing in New Zealand with a professional management team, 20+ partner organisations, 200+ Angel investors, and 150 wholesale investors. To date it has facilitated investment of more than $65m in 107 New Zealand startups across a variety of industries, supporting more than 1600 jobs.
FOUNDING OF ENTERPRISE ANGELS
Enterprise Angels was founded by Bill Murphy who launched the organisation in 2008, then named Western Bay of Plenty Investors’ Forum (a bit of a mouthful).
“I originally started Enterprise Angels to provide an avenue for startups to successfully raise capital and get more than just money. Back in the day, founders came to me due to my involvement with the local Economic Development Agency. I realised we had to get a better system in place; the only early-stage capital at the time was found by contacting a local rich guy… we’ve certainly come a long way. The growth path of a startup can be affected dramatically by having successful business angels as investors. They connect founders to potential clients, other investors, future staff and more. They help guide founders in areas that they have experience in either informally or as a director, and sometimes they just provide moral support.”
In 2019 Bill stepped down to lead the Purpose Capital Impact Fund, and Nina Le Lievre became the country’s first female angel network Chief Executive. Nina had been working alongside Bill at Enterprise Angels for six years prior to this. Bill continues to support Enterprise Angels in a part-time capacity as Executive Chair.
PORTFOLIO OVERVIEW
The existing portfolio is impressive with the majority of companies being in high-growth mode. A number of these portfolio companies are making a name
for themselves the world over, such as Fuel50, Spoke, Parrot Analytics, LawVu, UBCO, FileInvite and Datagate Innovation. Many have attracted significant further investment from later stage investors including both NZ and international venture capital and private equity firms. Understanding where and who the next stage funders are for the companies is a critical part of the equation. Companies often need more than angel money to be globally successful.
Most of the portfolio companies are software (39%), hardware (26%), or agtech (23%), with the majority being based in Auckland (41%), Bay of Plenty (18%) and Wellington (18%).
Since formation Enterprise Angels has had 32 exits. 15 companies have provided positive investment returns - 12 of these were acquired or listed. Investors have seen some very profitable returns from portfolio companies: GreenButton, SwipedOn, Volpara, Engender, Merlot Aero and more recently Moxion. The IRRs range from 24% with Merlot Aero to 194% with SwipedOn.
As expected with the high-risk nature of investing in startups, there have been negative returns too. 17 portfolio companies have failed for various reasons
or for founders. Enterprise Angels has used these failures as learning opportunities to detect potential problems earlier and better support founders to grow.
TRAVERSING TURBULENT TIMES
Periods of economic uncertainty haven’t stopped Enterprise Angels members investing. They may be more vigilant when undertaking due diligence, however risks and challenges create opportunities. Experience has shown that good founders will thrive in environments where mediocre ones fail. Recessions help clear the market of poor performers leaving more market share for the best companies. Many great companies have grown in uncertain times – think AirBNB, Uber, Slack, Square and Glassdoor.
With their strong member network Nina believes Enterprise Angels is well positioned to face the current economic downturn.
“We need to continue to look to the fundamentals and value proposition of the opportunities that we consider. We’ve honed this over the last few years and believe that there will be some very good opportunities in these challenging times. These companies (as well as existing portfolio companies) will continue to need our support to grow. It’s not just capital (although that does help a lot), but connections and expertise are increasingly important when navigating turbulent environments. “
FUTURE OPPORTUNITIES
Enterprise Angels success has come from combining the strengths of its Angel network (members’ breadth and depth of experience and expertise) with the strengths of a fund (coordinating and streamlining the investment decision process) to attract better deals and deliver a better result for investee companies
to provide this important funding option for entrepreneurs and investors with the recently launched EA Fund 4.
EA Fund 4 is like previous Enterprise Angels funds in many ways, but the key differentiator is that it is not a ‘side-car fund’, meaning it can invest independently of the angel group, undertaking due diligence and accessing deals from a broader range of sources providing greater diversification for investors and a more streamlined process for startups. The Fund’s managers are aiming to raise $5 million with a maximum of $10 million. Le Lievre has designed the fund to leverage the organisation’s years of experience in investing and to support the need for quality deals for the numerous Venture Capital funds that have formed in recent years subsequent to the Government’s $300m Fund of Funds programme to invest in high growth NZ companies as they grow to Series A and beyond.
“We’ve received strong support from those who know us best, members and existing limited partners, having achieved our ‘first close’ exceeding $2m. Almost a quarter of this investment has come from the EA GP Board and Investment Committee showing their strong belief and commitment in the new fund model,” said Le Lievre.
Despite the current economic uncertainty Le Lievre is confident now is good time to be investing in startups. “We are seeing good value investment opportunities into well performing companies at valuations that could only be dreamed of 12 months ago.”
Angel investing is risky, however EA Fund 4 provides an avenue for wholesale investors to greatly mitigate this risk by efficiently (time and money) building a portfolio of early-stage investments with a proven fund manager.
COPELAND ASHCROFT –SPECIALISTS IN WORKPLACE LAW
Copeland Ashcroft is a specialist national workplace law firm offering employment law, health and safety and immigration services.
Grown from a team of six around 15
Grown from four offices in Tauranga, Invercargill, Queenstown and Dunedin to seven, adding Auckland, Hawke’s Bay and Christchurch
Providing local support to a number of charitable organisations in the community
Certification with the Association of Workplace Investigators, the only internationally recognised course of its nature
Appointing two “CFOs” – Chief Fun Officers to support living our value of having fun in what we do
Appointing three new partners, including two internal promotions
Appointing a General Manager and Project Coordinator to help in delivering on the firm’s strategic goals
Partner Kate Ashcroft leads the North Island team from Tauranga, having joined forces with Invercargill based Managing Partner Janet Copeland in 2015. Kate was drawn back to the Bay of Plenty as “an incredibly special place to live and do business”.
Kate is passionate about serving businesses in the Bay in the increasingly complex workplace law space, wanting to provide a top quality service with support locally, including in person education on key topics which the firm delivers through its ongoing workshop and seminar series, including in conjunction with the Chamber of Commerce, as well as through its monthly InTouch newsletter and social media presence.
Kate says “We work hard to provide cost effective, efficient solutions for our clients and to establish good working relationships and we do not take these for granted. I’m proud of the service our clients receive and the team we’ve built to deliver this.”
Kate says the team look for practical and creative solutions to issues that arise, because “there is no “one size fits all” approach to workplace law – you’re dealing with people and it really is about relationships”.
Kate says “I was lucky to know I wanted to specialise in this area from the age of 16. I feel very fortunate to work in an area I’m passionate about, in a place I’m so passionate about, and to lead a team that I hope we provide better opportunities to than were available to me early in my career, especially in regional centres around New Zealand which are such drivers of our national economy.
We pride ourselves on living our firm values, which are fun, quality, agility and rewards. We build relationships with clients and each other, which are valuable and rewarding. We produce quality work, and we have fun while we are doing this. These values, along with strong and supportive leadership, have built a
Specialists in employment,
immigration
and health and safety law
Copeland Ashcroft Workplace Lawyers provide specialist advice, representation and support across employment, immigration and health and safety law, to businesses throughout New Zealand.
To receive invitations to our workshop and seminar series, and keep up to date with the latest on Employment, Health and Safety and Immigration law issues, visit www.copelandashcroft.co.nz and subscribe.
positive workplace, which encourages growth and development.
“It’s a real privilege to serve the Bay of Plenty community and to be close at hand to pop into the boardrooms of our clients here. I pinch myself that this is what we’ve created”.
To support the growing team, Christie McGregor joined the firm as a new Partner in Tauranga in 2022. She said “I am excited to be part of a female-led partnership that aligns with my values, and being in a specialist firm just made sense.”
Janet comments “Christie brings a wealth of experience and is a a real asset to the Tauranga team and our wider NZ business. Not only does she have substantial high level skill and experience, she adds tremendous benefit to our clients with her holistic approach to resolution of issues.”
Kate couldn’t agree more: “Christie is the whole package – an expert in her field and just a lovely person. We are very happy to have her in our team and to work closely together, especially after years of being on opposite sides in disputes.”
Christie says “We go to work every day
excited to deliver good solutions for our clients. We know that aside from knowing the law, you really have to have good practical application of it. We approach advice with holistic workplace law expertise in employment, immigration and health and safety, which sets us apart from our competitors. Whatever the workplace issue, we have the specialist skills to partner with the client and deal with it.”
“Our team is continually researching and anticipating the next issue that our employer clients will need to be equipped to deal with. For example, we are working on the issues created by growing use of AI and what this means in terms of privacy and employment obligations.”
“We are also very aware of the challenges of operating in today’s environment in terms of mental wellbeing for business leaders and employees alike and have developed and promoted a Mental Health and Wellbeing toolkit for this, which has been favourably received. This is also a key focus for our team – we aim to positively and proactively support their wellbeing and career progression.”
ABC BUSINESS SALES, LEADING FROM THE FRONT
Since 2007, the ABC Business Sales Tauranga office has been aiding the Bay of Plenty’s Business ecosystem to thrive by matching business owners looking to exit their businesses, with new investors hungry to get a piece of the region’s growth.
Having sold over 250 businesses across the Bay of Plenty, ABC Tauranga has seen first-hand the demand Local and Overseas investors have for quality businesses in our region.
ABC Tauranga’s Managing Partner, Linda Harley says, “A key part of our sales system is getting the right fit. The buyer is not just a transaction, they have to be right for the business, and the community.”
It’s this dedication to their clients and the community which earned ABC Tauranga the REINZ Small Business Brokerage Office of the Year in 2022, after
impact on population growth and the strength of our economy,” says Business Broker Warren Chamberlain.
The key to success for ABC over the last 16 years, has been understanding the diverse nature of the Bay of Plenty’s Business community and having specialist brokers with a deep industry knowledge.
With brokers specialising in childcare, logistics, hospitality and agriculture, the team of five hold extensive nationwide networks that aid their vendors in getting the best value for their business.
This has earned the Tauranga office ABC’s branch of the year for the last two
childcare businesses nationwide, is a prime example of the importance of industry expertise as she became the first woman to win the REINZ Business Broker Salesperson of the Year in 2021 and the following year, 2022.
“I’ve been a finalist in this category for several years so I’m also personally proud to be recognised for the dedication and
connect quality businesses with people looking to enjoy the financial benefits of being a business owner. Whether they are first-time buyers, professional investment groups, or trade players, there is always demand for quality businesses,” says Broker Murray Kidd.
The future for ABC Tauranga is bright as the region continues expanding and more
Time to sell up?
We have motivated buyers across the region searching for quality businesses.
If you’re thinking about selling or buying a business in the Bay of Plenty, get in touch with our team today.
The ABC Business Sales Tauranga team
Embracing workplace wellbeing through the winter blues
It’s getting to the time of the year when winter blues begin to set in. The temperatures have well and truly dropped, flu season is in full force, and the summer holidays feel a bit far out of reach.
AWORKPLACE WELLBEING
> BY BRIDGET SNELLING
Bridget Snelling, Xero New Zealand Country Manager.
gloomier atmosphere in the workplace can be normal this time of year, so it’s a good time for small businesses to check in with their staff and think about ways they can continue offering wellbeing support.
All workplaces play a central role in building people’s resilience and positive wellbeing, so they can better cope with setbacks, take advantage of opportunities, and be productive, contributing members to their families, communities and workplaces.
There’s no doubt the added pressure of high inflation, talent shortages, the Covid-19 pandemic, and uncertainty about the future have all created a tough working environment these last few years.
This is the backdrop for many small business owners when it comes to looking after wellbeing, both their own and their employees.
The reality is it can be really hard to know how to address it or get started.
It can also be hard to juggle with everything else. But focusing on wellbeing doesn’t require revamping your whole way of doing business. It also doesn’t mean living a life of yoga and meditation.
It can be about finding simple ways to build a culture of appreciation in your workplace. Or changing attitudes towards talking about wellbeing in your workplace and asking for help.
It doesn’t need to be a big change or cost huge amounts of time or money – but it is something Kiwi employees are yearning for.
Choosing to have walking meetings is a great way to get you and your employees out and about during the day to get some fresh air, some Vitamin D and a change of scenery.”
For example, supporting flexibility around sickness at this time of year in particular is a crucial part of creating a positive work environment.
Colds aren’t just being passed around the office at a rapid rate, they are rampant across schools and daycares, and parents are juggling a vicious cycle of frequent sickness at home. Where possible, giving staff the support to work from home so they can tend to sick children is one way of easing the burden.
Encouraging your staff to design their best work day by prioritising flexibility for exercise, and time outdoors is another way of creating a positive environment through the dreary days.
Choosing to have walking meetings is a great way to
get you and your employees out and about during the day to get some fresh air, some Vitamin D and a change of scenery.
Of course, ensuring your staff have access to tools to reach out for extra support when the going gets tough is another top priority.
The Xero Assistance Programme (XAP) gives Xero starter, standard, platinum or ultimate subscribers, their employees, and their families free access to confidential mental health counselling and resources.
Leading a wellbeing culture is something we can do every day, but at this time of the year don’t forget it’s important to show both your staff and yourself some extra TLC.
When it rains its good to have an umbrella
BFRANCHISING
> BY NATHAN BONNEY
Nathan Bonney is a director of Iridium Partners. He can be reached at nathan@iridium.net.nz or 0275-393-022
ack in October 2022
I discussed the merits or considerations of buying into or starting a franchise business whilst we were looking at the potential of a recession – https://bopbusinessnews.co.nz/franchising/ recession-storm-clouds-looming-is-now-a-good-time-topurchase-a-franchise/
The reality is economies do go through cycles and unless you operate a business for a very limited period, and are very lucky, you will at some stage be operating in a recession or economic downturn, a period of high inflation, tight labour markets or a combination of these factors.
Back to weather cliches, it’s not just raining, for many it’s pouring.
If you own an SME in New Zealand, it probably feels like it has both been raining for several months, both figuratively and literally. Yes, it’s official, the New Zealand economy is in recession.
Add this to an already tight labour market, high inflation and supply chain challenges and you may ask, “who would want to be in an SME business or a franchise?”
If it was a choice of independent SME or franchise, on rainy days there are three reasons why I would choose to be
under the umbrella of a franchise every time.
Marketing power
Individually owned and operated franchises have significant advantage over similar independent businesses when it comes to marketing which can help them outperform their non-branded cousins.
Firstly, they benefit from having a brand, and market awareness. A group of 20 retail stores will inevitably have a larger market presence than 20 individually named businesses. This can lead to greater foot or web traffic, more enquiry, and this can flow through to sales.
The second and significant benefit of being in a franchise is the power created by collective marketing.
The first thing that many businesses are inclined to do when times get tough is to cut their marketing spend. Unfortunately, as revenues drop, this is exactly the time that businesses need to be increasing their efforts to increase sales.
If a system of 20 franchises are contributing 5% of revenue to group marketing, each of the 20 franchised businesses are effectively benefiting from having spent 100% of their revenue on marketing.
Purchasing power and supply chain
The same principles apply to purchasing and supply chains, the collective power of a franchise system is significant. It can be in areas other than just pricing based on volume. Franchise systems can leverage their collective purchasing power by reducing transport costs, preferential supply arrangements (including access to limited stock) through to payments and terms of trade.
You are not alone
For many franchisees, during challenging economic times, as beneficial as brand awareness and marketing will be in driving sales through the door, and limiting costs of doing business and improving supply chain as part of group may be, it’s not these factors that top their list.
Good franchise systems may have best in class products, processes, and business practices, but they also harness the collective knowledge, experience and sense of community from being part of a group. And it’s often this ‘being in business for yourself, but not by yourself’ that get’s franchisees through rainy days.
Due diligence: How to prepare your business for scrutiny
Due diligence is one of the most important stages of the business sale process. Due diligence is the procedure by which prospective buyers thoroughly examine all aspects of your company, including financial records, legal documents, and operations. The purpose of due diligence is to verify the financial and legal status of the business and to ensure that the buyer understands the business and its potential risks before committing to the purchase.
As a seller, you should be ready for due diligence and understand what buyers will be looking for. Here are a few pointers to help you prepare your company for scrutiny:
Gather all necessary documents
Have all relevant documents and materials in an easily accessible format and ideally in a single location. Be sure to respond to requests in a timely manner. Failure to provide documents or information promptly can delay the sale process or even cause a potential buyer to walk away from the deal.
Review your financials
BUSINESS SALES
> BY STEVE CATLEY
Steve Catley is a Business Broker at LINK Business Brokers. He can be contacted at 021 341 117 and steve.catley@linkbusiness.co.nz
Ensure that the financial statements are accurate and up to date, and that they provide a clear and accurate picture of the financial performance of the business. This is critical because financial statements are one of the most important documents reviewed by buyers during the due diligence process.
Be ready to answer questions
Be prepared to answer questions about the company’s operations, finances, and legal issues. Buyers will almost certainly have a number of questions as they evaluate the
company to see if it’s a good fit for them. Being prepared to answer these questions can make the sale process go more smoothly and increase the chances of a deal closing.
Be transparent
Honesty is the best policy and transparency is essential when selling a business. It is critical to be open and honest about any issues or challenges that the company may be facing. This can include issues such as declining sales, high debt, or legal problems. Buyers will appreciate your candour, as it helps them understand the full scope of the business and make an informed decision.
Presentable premises
Remember that due diligence is also an opportunity for you to showcase your company and its potential to prospective buyers.”
Ensure that your premises are always presentable. While (depending on the nature of your operation) this can sometimes be challenging, it is a great way of creating a good impression.
Hire a professional
Hiring a professional to assist with the due diligence process can be a valuable asset when selling a business. Due diligence is an important step in the sale process because it involves an investigation of the business’s financial and legal status before the sale is completed.
Working with a professional such
as a LINK Business Broker can help ensure that the process runs smoothly, and that all necessary information is provided. We also have access to some of the best lawyers, accountants and financial advisors in the industry. This helps us be absolutely certain that your business is best prepared and presented to prospective buyers and their due diligence professionals. By following these tips, you can help ensure that the due diligence process goes smoothly and that you are able to close the deal on your business.
Remember that due diligence is also an opportunity for you to showcase your company and its potential to prospective buyers.
SHINING SPOTLIGHT ON RESIDENTIAL PROPERTY BRIGHT-LINE TEST
Sellers of residential property in the last year may have got a surprise when logging into MyIR to complete their 2023 tax returns by the 7 July deadline. If Inland Revenue held information suggesting that a property sale during the year might have been taxable under the bright-line rules, the owner’s tax return may have been pre-populated with the property information, including purchase and sale dates.
The bright-line test
The bright-line test was introduced in 2015 to target residential property speculation. It imposes income tax on gains made from selling qualifying residential properties within a specific timeframe (subject to some exceptions including for a person’s main home).
Initially the test covered properties sold within two years of acquisition, and in 2018 the government extended the period to five years.
Then in 2021 it was extended to ten years (or five years for qualifying new builds).
Property owners need to be familiar with these rules and understand which bright-line period applies to them in order to limit any unexpected tax liabilities.
Does the bright-line test apply to you?
Despite its ostensible simplicity – if you buy and sell residential property within the relevant bright-line period and no exemptions apply, the gain on disposal is taxable – the bright-line rules can be incredibly complicated to apply.
We have different bright-line periods and main home exemptions applying depending on when a property was bought, and there have also been recent changes to the rollover relief rules which can apply to allow some tax free transfers of land where these isn’t a change in economic
TAXATION
> BY ANDREA SCATCHARD
Andrea Scatchard is a Tax Partner at Deloitte, based in the Bay of Plenty. She can be contacted on ascatchard@deloitte.co.nz
ownership without resetting the bright-line period applying.
Inland Revenue is watching
The extension of the bright-line period from five to ten years means that more residential property transactions are potentially taxable than before.
Inland Revenue uses various measures to identify property sales that may be taxable and to ensure owners
1. Communication: Inland Revenue has been proactively communicating with taxpayers, providing guidance and information about the bright-line test and associated tax obligations.
2. Data Matching: Inland Revenue collects and analyses property transaction data from LINZ and compares it to income tax returns
filed. The land transfer tax statement completed by both parties to every property transaction includes the IRD numbers of the buyer and seller and requires both parties to indicate whether the property will be, or was, their main home. This data is being used to pre-populate income tax returns where suspected bright-line sale income has been derived. Around 22% of the 1.7 million land transfer tax statements completed since January
2020 indicated the property was the seller’s main home, leaving a large number of sales potentially subject to tax.
3. Auditing: Inland Revenue targets property transactions to ensure property owners are complying with their tax obligations. Inland Revenue has conducted over 6,500 property audits in the last 3.5 years and assessed additional tax of over $350 million. These measures are all aimed at helping property owners get it “right from the start” when it comes to paying tax on their property sales and to encourage voluntary compliance. It is important that you complete the land transfer tax statements accurately for any purchase or sale of property, and that you carefully review and update if required the details of any pre-populated property sales that Inland Revenue thinks might be taxable.
If you have made any taxable sales that Inland Revenue may not already have information for, these need to be manually added into your tax return. We may see future changes to the bright-line rules depending on who holds power after the election. In the meantime though, residential property owners need to understand the rules if they are considering buying or selling property.
If you need help determining whether the bright-line rules apply to you, it is recommended you seek professional advice from a tax specialist.
I hear there’s a new app called Sense of Humour – maybe you should download it?
CHAVE YOU EVER NOTICED?
> BY ALAN NEBEN
Alan Neben is a Mount Maunganui local and experienced New Zealand publisher. His columns provide a light-hearted perspective on social changes effecting New Zealanders.
hris Hipkins and sausage rolls – today I heard angry condemnation of Chris I’s supposed promotion of sausage rolls as a healthy eating choice … really? I suggest he’s not saying everyone in New Zealand should eat more sausage rolls, he was merely pointing out that, much like every Labour leader before him I’m sure, sausage rolls are unavoidable when doing the rounds New Zealand’s Country Women’s Institutes. And they actually taste quite nice. It’s life in New Zealand. Whether you vote red or blue, or green or beige, sausage rolls are unavoidable. Please give him a break on this one!
And the other Chris, Chris II, is not immune to the vicious barbs of humourless critics either – his off-the-cuff quip (in acknowledgement of the fact New Zealand’s population growth is no longer adequate for optimum economic growth) that the audience should ‘go ahead and have more babies’ was met with criticism that he was ‘outrageously dictating social policy and promoting anti-abortion policies’ – please people, it was a joke. Seriously, a joke. I know politicians twist the truth, obscure facts, avoid
answering the question, shamelessly criticise every aspect of opposition policy, kiss babies and pat dogs purely as a photo op’ (even if they hate kids and are allergic to pets), but they can still have a laugh … can’t they?
Perhaps the question should be, “Can ‘we’ still have a laugh?”
Are we now all so angry that we can’t take a joke? How dull. How utterly depressing.
We in the media must accept a large part of the responsibility for the de-humourising of our politicians. The media has trained the public to zero-in on missteps and characterised humour as a misstep.
On the other side the middlemen and middlewomen: the media minders, media trainers and press officers – the ones who baby-sit the politicians and tell them what to say, how to say it, when to say it, and what to definitely not say – have a lot to answer for. Most politicians have been trained to not to make a joke, to not use humour for fear it be misconstrued or worse, misappropriated and weaponised.
Unlike a good lawyer who advises his client to say nothing, the media man-
ager insists the politician say something, but just not the wrong thing. “Stay on message – and remember the message doesn’t include humour or satire. Don’t be sucked into answering the question, because the question is designed to make you look untrustworthy or stupid. Instead stay on message. Don’t worry if the message has no relationship whatsoever to the question.”
Maybe that’s why when a delusional buffoon like Trump finally comes along with the self-confidence to say, “I know better than anyone, one plus one equals three, and black is green,” a large portion of the constituency says, “Finally, a guy who doesn’t play the game scripted by manipulative political stage managers – he’s our guy because he’s authentic. We can trust him.”
Ironic.
My advice to political media managers: allow your clients to be authentic – some voters quite like it.
To the public: if politicians are funny, it’s okay to laugh at their jokes; if they make a mistake, consider the context and maybe cut them some slack, even if they are not on your team.
Food, glorious food… with a twist of IP
Food, glorious food! Hot sausage and mustard!
While we’re in the mood - Cold jelly and custard!
Peas, pudding and saveloys!
What next is the question?
SINTELLECTUAL PROPERTY ISSUES
> BY BEN CAIN
Ben Cain is a Senior Associate at James & Wells. He can be contacted at 07 928 4470 (Tauranga), 07 957 5660 (Hamilton), and ben.cain@jamesandwells.com
o sang Oliver and his fellow workhouse orphans in the timeless classic, Oliver!
The same or similar words may have been (but most likely were not) uttered more recently, in somewhat different circumstances, by attendees of Fine Food NZ 2023 in Auckland, where I had the privilege of presenting a seminar on using IP rights to maximise competitive advantage.
My seminar addressed three topics:
• How creative thinking from the start can get you ahead (a recipe for success);
• How ongoing creative thinking can keep you ahead (a recipe for continued success); and
• The dangers of ignoring the power of IP (a recipe for disaster).
In this issue’s article, I summarise my presentation on the first topic – how creative thinking from the start can get you ahead.
When it comes to food (and beverage) products, broadly speaking there are three drivers of creative thinking: customer needs – the needs of, for example, supermarkets; consumer needs – the need to meet, for example, changes in consumers’ palettes; and business needs – the need to survive and thrive in business.
In meeting all three needs, a well-crafted intellectual property strategy can help maximise
the potential of your business.
So what do you need to consider in crafting an IP strategy for a food (or beverages) business? My suggestion is to consider, from the outset:
• What IP assets (rights) might be available to you –in NZ and overseas if you plan to export – and how to acquire them; What registrable IP assets do you want to acquire;
• What registrable IP assets do you need to acquire; and
• When can, do or must you acquire your IP assets.
In my experience, the most common registered and unregistered IP assets that are available and are used by businesses in the food and beverage industry are trade marks (registered and unregistered), industrial copyright (unregistered), designs (registered), get-up (unregistered) and trade secrets (unregistered) (for example, recipes).
Of these, registered trade marks (more specifically, certain types of registered trade marks) and registered designs are currently significantly under-utilised in New Zealand.
In relation to registered trade marks, most, if not all, businesses will be aware that you can register words and logos as trade marks, but how many are aware they can register three-dimensional shapes, colours, smells and even tastes as trade marks and, more importantly, seek to do so?
Judging by the relatively small number of shape and colour trade marks on, and the complete absence of smell and taste trade marks from, the New Zealand Trade Marks Register, my guess is not many – which means a lack of awareness. Either that or the reason is a lack of willingness due to the potential cost of acquiring registration, which can be (but is not always) significant. My personal guess is the former. As for registered designs – which are available to protect the shape, configuration, pattern or ornamentation of physically manufactured items, these appear to be equally under-utilised by food and beverage businesses.
Again, the issue could be a lack of awareness or a lack of willingness, again perhaps due to cost. Registered designs do not cost very much to acquire, however, which suggests lack of awareness rather than cost is to blame.
Whether awareness or cost is the culprit, I encourage businesses in the food and beverage industries to make themselves aware of and engage with the opportunities to acquire registered IP assets that are available to and used by them – no matter how tricky it might be to acquire them. By doing so, they may acquire competitive advantages that will get them ahead, and aid them to stay head, of their competition.
Tauranga real estate: market in review
By ALAN NEBEN
Tremains Real Estate hosted a breakfast at their Tauranga offices on 21 June in conjunction with the Tauranga Business Chamber to talk about the state of the local real estate market.
Bay of Plenty Business News spoke to Tremains’ sales consultant Deborah Peake and managing director Anton Jones after the event. Deborah was the main presenter and was pleased at the turnout for the early morning breakfast.
“About 30 people attended and there was a good cross-section of professionals, from finance and banking executives to insurance companies and law firms.
“Having those interested parties
in the room meant there was a good energy,” she noted.
This year has seen the first significant dip in property prices in the Bay of Plenty in the last 14 years.
Huge growth of Tauranga, along with limited land supply, increased building costs and increased interest rates have made navigating the market seem like a bit of a mine field for buyers and sellers.
But Anton suggested it’s not all bad: “It’s a changing landscape and that change certainly has been dramatic in the last two years. As interest rates have risen we’ve all been bought down to earth. But that is only temporary, and median prices now are only back to January 2021 levels so there is certainly some cause for optimism.”
Deborah provided a general over-
view of the market’s growth, particularly over the last 5-8 years, which only really slowed briefly with the arrival of Covid, before picking up again quickly.
The current correction began 18 months ago, with the Credit Contracts and Consumer Finance Act (CCCFA) changes, rising interest rates and inflation, but Deborah was quick to point out that despite the correction, the house price index on the whole is still trending up when we look back to pre-Covid levels.
“When measured over the last couple decades, the house price trajectory is still moving upward – that’s a positive message I’m giving to those who may be feeling despondent,” she said.
According to Anton, “The govern-
ment’s removal of interest tax deductibility, then the implementation of healthy homes regulations effectively added significant cost for investors.
“Recent interest rate hikes have exacerbated that situation and in 2020-21 many started selling their rental investment properties, due to the lower return against higher values.
“On top of these pressures, first home buyers have also been daunted by increased interest rates in the last 18 months.
“Fortunately, we’re now seeing more first home buyers starting to enter the market again,” he noted cautiously.
Deborah pointed out that the tightening of the CCCFA lending rules at the end of 2021 didn’t help home buyers, but recent easing of those
requirements has provided more stimulus. She said interest in the first home buyer segment is strong at present.
Are we at the bottom of the market yet? “While some buyers are effectively speculating that we are and starting to buy again, we can’t say definitively that we’ve reached the bottom of the market until months after that point has been passed.
“That’s the conundrum we must all face,” concedes Anton.
“Although listings across the market are down right now, something we often see seasonally as winter kicks in, the election and the advent of spring will undoubtedly affect things later in the year meaning more of a plateauing of the market from here instead of large falls or rises.”
Art Gallery to be redeveloped as part of civic precinct project
Art Gallery Trust Chair Rosemary Protheroe has announced that the gallery is to be redeveloped as part of Tauranga’s future civic precinct, Te Manawataki o Te Papa. In time, this will contribute to the full richness and diversity of Tauranga arts, culture and heritage which will be able to be experienced on completion of the civic precinct.
Set to begin later this year, the redevelopment will see the orientation of the art gallery turn to face Masonic Park with a new entrance that will blur the boundaries between inside and out. It will create a more welcoming environment alongside a new café and expanded retail experience.
Tauranga Art Gallery Director Sonya Korohina says “how our artists exhibit and community connects with art has changed.
“This redevelopment is an exciting opportunity to take us into the future as both a great space to experience art programmes and a more social space too.”
Sonya says the interior layout will largely remain the same, with the edu-
cation room moving to the Wharf and Willow Street side, creating a separate entrance for the popular schools and art studio programmes.
“Many local children grow up coming through the art gallery’s education programmes.
“Today’s youth are already experts in visual culture. The creative tools they learn here hones their skills as young critical thinkers, innovators, and empathetic humans.”
To ensure the education programme is not interrupted by the build, a temporary pop-up space at 42-44 Devonport will open mid-July at the start of term 3.
The Pop-Up will include an exhibition and a multi-purpose events and education space. The Art Bus will
bring children to visit, as well as Tauranga Library across the road. It will remain open until the main building project is complete.
While closed, the art gallery will take the opportunity to upgrade lighting, air-conditioning and an interior fit-out. This will enable it to maintain international museum standards, a requirement to be able to loan artworks from institutions such as Te Papa. This will be the first time work has been undertaken since opening in 2007.
Tauranga City Council General Manager: City Development and Partnerships Gareth Wallis says the upgrade of the art gallery signals another step forward to breathing life back into our city’s heart through
what is expected to be one of the biggest investments our city will see, and a key cultural, heritage and economic driver for the region.
“As one of the first projects underway within the civic precinct, it’s fitting that the art gallery – which has held such a special place in our city centre for nearly two decades – will cement a home for art,” says Gareth.
“The developments for the art gallery have been planned to coincide with the upgrade of the neighbouring Masonic Park, that will see the park transformed into a place where people can stop by and dine and relax or go between Te Awanui Tauranga Harbour and the civic precinct.”
A total project budget of $3.38 million was approved by Council in
March and is being jointly funded by Tauranga City Council and Tauranga Art Gallery Foundation.
Foundation Chair Phillida Perry says “the Tauranga Art Gallery Foundation has been established to enable the long-term advancement of the gallery and is pleased to support the redevelopment, contributing to enriched art experiences for future generations”.
Further funds needed for costs associated with development and fitout will be raised by Tauranga Art Gallery Trust and the Tauranga Art Gallery Foundation.
For more information about Tauranga City Council’s plans for the civic precinct, head to http://www. tauranga.govt.nz/ourfuturecitycentre
At Bayleys, we believe relationships are what businesses are built on and how they succeed. We understand that to maximise the return on your property you need:
A business partner that understands your views and goals
Contact the Bayleys Tauranga Commercial Property Management team today.
Tamariki CreativeWorkshop,Tauranga Art Gallery,2023. Photo /Alan Gibson.
Tamariki PaintingWorkshop,Tauranga Art Gallery,2023. Photo /Alan Gibson.
Tauranga
Sonya Korohina and Rosemary Protheroe, TaurangaArt Gallery,2023. Photo /Alan Gibson.
MANAGING DURING A RECESSION
SCREDIT CONTROL
>BY NICK KERR
Nick Kerr is regional manager for Debt Free and director of International Private Investigations Ltd. He can be reached on 021 876 527 and nick.kerr@debtfree.net.nz
oits official: we are in a recession. Now what? During an economic downturn it is essential to practise both corporate and individual safe credit management to minimise the risk of financial losses and perhaps avoid turning a speedbump into a brick wall.
With the recent plague, huge material cost increases across many essential industries, massive changes to how we work, increased unemployment coupled with staff shortages (a strange dichotomy indeed) huge cost of living increases across-the-board the economy has clearly taken a hit and this has negatively impacted people and businesses alike.
However with safe credit management practices individuals and businesses can have a much better chance of keeping their finances in check during these tough times and therefore make recovery easier, cheaper and less stressful.
Here are some safe credit management practices to help you manage your finances during a recession:
Manage your cash flow
Cash flow management is crucial during an economic downturn. You should keep an eye
on your accounts receivables to ensure that your clients are paying on time. Late or unpaid receivables can cause cash flow problems, so it’s essential to follow up on overdue payments promptly.
Moreover, you should also manage your accounts payables by negotiating payment terms that suit your cash flow before any amounts are overdue. Often you can find some very good savings by simply going through your bank statement and culling unnecessary expenses.
I followed my own advice and found nearly $100 per month savings by cancelling the insurance on a car I haven’t owned for over a year, cancelling several subscriptions to software that I no longer use and deleting an old Netflix account as I get one free with my phone plan. Shop around for suppliers –savings are everywhere to be found, you just have to look.
Monitor and protect your credit score
Your credit score can significantly impact your ability to access credit during a recession. A good credit score will help you secure loans at more favourable rates while a poor credit score can lead to higher
rates or being denied credit altogether. It’s essential to monitor your credit score regularly to identify any discrepancies or errors that may be lowering your score. I have seen peoples credit score decimated for 5 years; this may have been the case needlessly if they had sought advice and had a more strategic way of thinking.
Prioritise your debts
During a recession it’s vital to prioritise debts to ensure that you can meet essential expenses. Prioritising your debts means focusing on paying off the most critical debts first such as your mortgage or rent utilities and food. Once you have taken care of the essentials you can then focus on your other debts. As always, communicate with creditors if there are relief provisions available (income insurance, hardship)
Build an emergency fund
Building an emergency fund is an effective way to manage your finances during a recession. An emergency fund can help you cover unexpected expenses or help you get through periods of reduced income. It’s essential to build an emergency fund even if you
have other savings or investments because those may not be easily accessible during times of crisis as we have seen in other countries, such as the Greek economic crisis.
Avoid new debt
During tough financial times it’s so easy to think that a temporary influx of cash is the answer, which may well be the case, unless you are borrowing from your future self. It’s best to avoid taking on new debt unless it’s absolutely necessary. Taking on new debt can add to your financial burden and make it even more challenging to manage your finances in later times. It’s bet-
ter to focus on paying off your existing debt using a “domino” debt payment schedule and building an emergency fund.
Often recovering from the choices made trying to get out of a situation is far more difficult than recovering from the situation itself.
Avoid opportunity vultures
During economic hardship the charlatans come out of the woodwork: the, “join my team and make thousands of dollars for almost no work a day!”
Of these “wealth building” multilevel marketing schemes (that may or may not resemble certain Egyptian monuments) very few ever make anyone
Workplace culture is key
Organisational work culture plays a pivotal role in shaping the success and well-being of a company and its employees. It’s something that we hear a lot about, but what actually defines a good culture vs a bad workplace culture?
While a good work culture fosters productivity, innovation and employee satisfaction, a bad work culture can have detrimental effects on morale, performance, and overall organisational health. Here I delve into the characteristics that distinguish a good work culture from a bad one.
A good work culture can be characterised by several key elements. Firstly, it promotes open communication and transparency, fostering an environment where employees feel comfortable expressing their ideas, concerns, and feedback.
Furthermore, a good work culture encourages collaboration and teamwork, fostering a sense of camaraderie and shared purpose. In such a culture, employees are empowered to take ownership of their work and are recognised for their contributions.
Additionally, a good work culture values work-life balance and prioritises employee well-being. Organisations with a positive culture offer flexible work arrangements, support personal growth and development, and provide resources to enhance physical and mental health.
Finally, a good work culture embraces diversity and inclusion, recognizing and respecting the unique perspectives and experi-
HUMAN RESOURCES
>BY KELLIE HAMLETT
Talent ID are Recruitment Specialists and can support you through your recruitment process. Please feel free to talk to us about this by calling 07 349 1081 or emailing kellie@talentid.co.nz
ences of employees. At the other end of the spectrum, a bad work culture exhibits distinct characteristics that hinder organisational success. One common trait of a bad work culture is poor communication, where information is withheld, feedback is ignored, and decision-making is opaque. This lack of transparency erodes trust and leads to frustration among employees.
Moreover, a toxic work culture often manifests in excessive competition and a lack of collaboration. Employees are pitted against each other, hindering teamwork and stifling innovation. In such environments, blame-shifting and finger-pointing become commonplace, leading to a toxic and unproductive work atmosphere.
A bad work culture also neglects employee well-being, emphasising long working hours, unrealistic expectations, and a lack of support. This approach leads to burnout, decreased motivation, and ulti-
mately, a higher employee turnover rate.
The difference between good and bad work cultures has a profound impact on both employees and organisations. In a good work culture, employees feel motivated, engaged, and supported. This translates into higher levels of productivity, increased creativity, and improved overall performance. Additionally, employees are more likely to stay with the organisation, reducing turnover and the associated costs of recruitment and training.
In contrast, a bad work culture takes a toll on employee morale and well-being. This often results in decreased productivity, reduced quality of work, and higher absenteeism rates. A toxic work environment fosters stress, anxiety, and dissatisfaction, leading to negative impacts on mental and physical health.
For organisations, a good work culture enhances their reputation
and employer brand, making them a more attractive option for top talent. It creates a positive feedback loop, with satisfied employees becoming advocates for the company, attracting further talent and customers. Conversely, a bad work culture tarnishes the organisation’s image, leading to difficulty in recruitment and potential damage to its brand reputation.
Transforming a toxic work culture requires commitment and effort from both leaders and employees. By fostering open communication, leading by example, setting clear expectations, promoting work-life balance, investing in professional development, celebrating diversity, and recognising achievements, organisations can make significant strides toward building a positive and thriving work culture. The resulting benefits include higher employee engagement, increased productivity, improved retention rates, and a stronger organisational reputation in the long run.
wealthy, other than those at the top. With any opportunity, research and due diligence are your best defences against potential loss.
In conclusion, safe personal credit management practices are essential for survival during a recession. Managing your cash flow, monitoring your credit score, prioritising your debts, building an emergency fund and avoiding new debt are essential practices that can help you navigate tough economic times.
By implementing these strategies, you can keep your finances in check and prepare yourself for any challenges that come your way. Just a thought.
NEW INDUSTRIAL BLOCK TO OPEN IN ROTORUA
Peka Lands Trust is pleased to announce that development of a 13ha block south of Rotorua will commence in 2023.
Located just south of Rotorua, the Peka block, comprises 633 hectares with over 2000 beneficiaries.
Plans for the Industrial Development were initiated in 2020 after the harvest of over 400ha of pine planted in the mid 1980’s. A masterplan for the development of the 13 hectares was completed with Council and Waka Kotahi involvement.
The opportunity to bring the start date of the development forward was presented by way of funding opportunities available on application through the Regional Strategic Partnership Fund, Peka Lands Trust applied and were successful in securing a loan of $6 million.
A ground-breaking ceremony took place in June, commencing stage one of the project. The Minister of Regional Development and Transport, Hon Kiritapu Allan, spoke at the ceremony.
Helen Beckett, chair of Peka Lands Trust, said the planning for the development has been nearly 40 years in the making.
“The trees were planted with the intention of providing opportunities to create future wealth for all beneficiaries of Peka Lands Trust – the job is now ours to see this to fruition”.
With no other industrial zones available in Rotorua, transitioning from harvested land to an industrial park has been supported by Rotorua Lakes Council and RotoruaNZ. RotoruaNZ chief executive Andrew Wilson said, “The development of Peka Block is great news for Rotorua. It will allow for more business expansion, create more jobs, and further contribute to the economic development in our city.”
Smart
software, savvy service
See what our smart business solutions bring to the table
