CEO Diary

wE DON’T NEED a re-cap; there’s plenty scars and reminders of this last period that we can all see on a daily basis. Together I want to look forward and to create a plan of how we are going to build on our current position using the learnings from experiences had. What is it we need to do to be ready for the next big thing in our business lives? Here’s some of my thoughts on it all:

This has become an especially important part of our business lives. Yes, we all kind of dabbled in it prior to March 2020, but now, we are better prepared for the technological age. “Death by Zoom” is a common saying for your calendars and we have become quite competent in its operation. Common conversations when deciding to meet with someone involve things like what platform to use and the +’s or – ‘s of each one. I personally had never heard of “Zoom” before then and had seen the “Teams” icon but didn’t think it was for me. I was with a member the other day and they were showing me how they are transacting now at the counter and over the phone for bookings. Everything is electronic and although the big one page per day diary still sits on the counter, it was more a reminder to add items into the electronic calendar than it was for bookings. Customers signing on a tablet now get photographs of gear loaded onto the contract, delivery driver tablet showing them the best way to get to site and instant updates on pick ups popping up on their screen whilst they are out and about. Bloody clever, a long way from the dirt floor days and old notes on the back of a Winfield Red packet. If your business is not yet into the technological era, you are getting left behind. You need to seriously consider investing into this area of your company. It’s also not just capital outlay either, it requires constant improving and developing. Technology moves so much quicker these days; the ROI is exceedingly difficult to measure and achieve. You have to be constantly funding improvements or changes so that you don’t become out of touch. Have a chat with your accountant as there are ways to reduce tax and affects on the balance sheet with both capital and improvements.

Our supplier members have seen massive swings in the way their businesses operate. Previously, they would be out there working hard to find a sale for a stock item in order to clear room for the next consignment from the factory. Nowadays, they are taking orders for well into the future, with the issue now being not having the stock to meet the current demand. The economic boom is causing problems with factories only back to 80% of their Pre- Covid production capacity. And then there is the issues around international shipping affecting delays in delivery of that stock. It must be so hard to keep up with it all, especially when you are placing orders with overseas factories. By the time you receive it, the company has released a new model, superseding your current product. Then, let’s not even start on getting spares on some gear. All of this is affecting productivity and driving lost hire days through the roof. Your decision making on renewal or expansion of plant, needs to move further forward and in some cases into two financial periods in advance, not just your current one. I was working with a client once and we went though his plant list, looking at age/hours, productivity, R&M, and the future direction of his business. We sorted the list by replacement priority, then by change in direction. From there we were able to financially plan for the new capital expenditure and disposal options. That spreadsheet is still alive today and is constantly updated allowing the business owner to forecast where best to put his Capex to match his evolving business. This was a small drain laying company that had only been going 3 years and had got the wobbles. They are now in a far better position, growing sustainably and creating excellent returns. The same principles can/should be adopted into your hire business. Where is your marketing moving to? What are the trends developing? How long does it take to gear up for those changes, what’s it going to cost, how do you fund it and what’s the return going to be like?

I have always struggled with the mentality of staff being an expense. Yes, the cost of staff sits as an expense line item/s on your P&L, however, they are really a cost of a sale. They create the value of the sale to the client. They are as the trendy speakers and promoters of business improvement products say, “The biggest asset in your business.” Either way you look or perceive staff, they are an integral part of your company. This last period of time has shown us their greatest worth, risk, and consideration. Who would have thought for a moment that we would be paying staff NOT to come to work? Who would have ever believed the government would fund you to not have your staff at work? Bloody crazy. Here we are, looking at our businesses and saying, “When the business is open, I need the staff to be working.” Easier said than done at the best of times when you consider that they may need to occasionally isolate and may even leave which means you are always on the lookout for good replacements. Skilled or not. Don’t even get me started on the minimum wage now being $21.20! The pressures of having people to work with you in your business has never been greater. I know a lot of you are looking for ideas and support on this matter. HIANZ has just released a foundation training course for the Party and Events sector. It is an online course that gives a complete newbie to

marquee rigging, the basic understanding of what to expect. It covers H&S, what they need to bring with them to work each day, terminology, description of items and what to expect when helping erect a marquee. We are working on content for general hire staff induction and are building courses that will create a development pathway in the role of a “Hire Controller.” This is a term the UK are using, and Australia are starting to adopt the terminology also. The UK have got it across the line as a recognised qualification. Something to aspire to. Furthermore, we are partnering up with others on providing administrative, sales and management professional development courses. All of this is about helping you train and retain valuable team members. Training helps with retention as it shows you are willing to invest in their development and provide them with something more than just a few extra $$ in their pay packet. You win too as your team develops and adds extra value to every hire. I want to go even further on the training front. I want to see us put together an Owners Training programme. Something similar to the Institute of Directors courses but focussing on the hire industry. I see it helping existing members get a better understanding of their business, how to set some goals, plan for growth, succession and so on. This type of course would be great for not only those who are thinking of getting into the hire game but also as a first step for a staff member who may be looking at the opportunity of purchasing an existing business. Giving them the tools to understand ownership and the value of running a hire company would be a good starting point. I will be interested in your thoughts on this in the coming months. So, when I look back at what I have just written it is clear that we’re all basically trying to achieve the same things. As an association we have become technically much smarter with our websites, database management and webstore content. We are also carrying more stock, looking at other value-added supporting products and training to be better at what we do. For instance Kylene is currently doing a social media course, John is getting auditor development training and I, well I am getting coached on better speaking, lobbying, and getting our industry story heard and respected. All great stuff that adds value to your membership of the Association and provides support to your business. It shows we have adapted and are working to the new norm. In a nutshell that means being, flexible, to expect the unexpected and to lift our capabilities. In my mind this sets us up for a positive future and reduces the impacts of any risk. Hopefully, this finds you in the same mindset. ■