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NORTH HARBOUR BUSINESS ASSOCIATION MEMBER NEWS AND INFORMATION

HOW 2014 Business Expo: Register now PG 18 NHBA welcomes gold sponsors PG 22

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Northern Corridor Roadworks start PG 8

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Auckland Unitary Plan: What it means for you PG 10 www.nhba.org.nz


He just hacked your computer system and he’s ready to party ... at your expense! Can you imagine his kind let loose in your system? Hack attacks on businesses are growing at an alarming rate. It’s not a matter of ‘if’ but when. There are ten reasons why you should have cyber liability insurance and here are two of them: 1. Data is one of your most important assets yet it is not covered by standard property insurance policies. Most businesses would agree that data or information is one of their most important assets. A cyber policy can provide comprehensive cover for data restoration and rectification in the event of a loss no matter how it was caused and up to the full policy limits. 10. It’s not just big businesses being targeted by hackers, but lots of small ones too. Cyber attacks are quickly becoming one of the greatest risks faced by smaller companies, making cyber liability insurance a must. It can help protect smaller companies against the potentially crippling financial effects of a privacy breach or data loss.

IUA 1017

Call your broker now for the other eight and ask for IUA Cyber Liability Insurance.

*IUA does not provide financial advice, is not a broker and as such is not registered on the Financial Service Provider’s Register. IUA is not a member of a dispute resolution scheme. IUA acts as an agent for certain insurers and Lloyd’s underwriters. IUA is not an insurer and no name, title, trade mark, style, designation or description on this advertisement or in any documentation should be taken as representing or implying that IUA is acting as a licensed insurer.


FROM THE CHAIR

From the Chair

W

elcome to our first FYI for 2014. So far, it’s been a positive start to the year. There are many signs of growth in the local and wider New Zealand economy driven by continuing strong commodity pricing in the dairy sector and ongoing demand in the Auckland and Christchurch construction markets. Commercial property vacancy rates in the local area continue at very low levels. And with the limited availability of commercial land we are likely to see ongoing development of quality new commercial properties aligned to the provisions of the Council’s new Unitary Plan. (For more on the proposed plan and our associated event for members turn to pages ten and then six of this issue.) Meanwhile, commentators are flagging the potential for increases in interest rates over the next two years. Many small to medium sized businesses have secured funding

over residential property, so we suggest members review their current arrangements. Also on the horizon in 2014 are a range of new business compliance requirements and the first stages of regulation surrounding new venture financing options such as crowd funding. Further information on these developments will be available in time. This year we look forward to enhancing our current programmes and bringing you expanded major events such as the Business Expo and One Day Sale. We will also be developing new special interest groups and implementing our Business Capability Programme. Our thanks for your ongoing support and best wishes for the year ahead. Yours sincerely, Warren Kitchin CA Dip NZIM Chairman

IN THIS ISSUE

20 Crime Prevention 22 Gold Sponsors

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BUSIN YOUR ES

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27 Parkhead Reserve

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28 Marketing 30 Associate Members & Wine Club

Northern Corridor Roadworks start PG 8 2014 Business Expo: Register now PG 18 NHBA welcomes gold sponsors PG 22

24 Finance

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10 Proposed Unitary Plan

18 Business Expo

FEBRUARY 2014

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8 Transport

26 Legal

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7 Signage Bylaws

16 Business Growth

NORTH HARBOUR BUSINESS ASSOCIATION MEMBER NEWS AND INFORMATION

25 Property

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4 In Brief

14 Business Capability Programme

HOW

3 From The Chair

Cover Story PG 16

Auckland Unitary Plan: What it means for you PG 10 www.nhba.org.nz

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NHBA GOLD SPONSORS 2014 – 2015 trade colour print

Contact FYI Magazine General Manager - NHBA Janine Brinsdon janine.brinsdon@nhba.org.nz

Editor Ruth Le Pla ruth.lepla@xtra.co.nz

Editorial contact Elizabeth Devlin elizabeth.devlin@nhba.org.nz

Design Lewis Hurst lewis@hcreative.co.nz

Printer Trade Colour Print tradecolour@orcon.net.nz

North Harbour Business Association F4, 27-29 William Pickering Drive, Albany. PO Box 303 126, North Harbour 0751 Office 09 968 2222 Web www.nhba.org.nz The opinions expressed in this publication are not necessarily the views of the publishers.The publisher does not  endorse any person, company or organisation that advertises in this publication.

WWW.NHBA.ORG.NZ FYI FEBRUARY 2014 3


IN BRIEF

JOIN ECOFEST NORTH, 15 MARCH – 13 APRIL 2014 Show off your green credentials by becoming a supporter of Ecofest North. The month-long celebration of all things environmentally good is a great opportunity to get behind local events and community organisations on the Shore. Supported by Auckland Council, and co-ordinated by Kaipatiki Project Environment Centre, Ecofest North features workshops, swaps, walks, talks, movies, races and shows. Exploring themes like discover, make, regenerate and learn, this rich collection of events allows people to experience and embrace fresh ideas, harness new skills, pick up tips and advice, or simply enjoy meeting the folk in their neighbourhood who are making a difference. Kaipatiki Project is looking for donations of time, goods or services. It’s also after help with networking and promotion, and good old-fashioned cash. So if you’re green and keen please contact Louisa Chase, Ecofest North Manager on festival@kaipatiki.org.nz

Leanne (Owner - Urban Dogs) and Chiara (Marketing Manager - Albany Toyota) with Leo and Snoop (foster puppies from HURRAH charity). Just some of the dogs who benefited from the donations.

Puppy love Congratulations to NHBA members Urban Dogs Day Care and Albany Toyota who recently teamed up for a dog food drive in support of canine charity HURRAH. The team approached local businesses, dog food suppliers and members of the public for enough dog food donations to fill a Toyota Hilux Ute. “We managed to fill the Hilux and HURRAH was over the moon with the donations. We actually had so much we split it between three dog rescue groups,” said Urban Dogs Director Leanne Coste. HURRAH (Humane Rescue, Rehabilitation and Rehoming Charitable Trust) is an independent Auckland based dog rescue charity run solely by volunteers. It aims to:

&

Fit fab

If your New Year’s resolutions included getting fit (and whose didn’t?) check out the NHBA website business directory for a list of gyms near you. nhba.org.nz/directory Now you have no excuses.

• rescue dogs with a proven temperament from euthanasia at council and privatelyoperated pounds;

• prevent unwanted pregnancies through de-sexing incentives; and

• educate owners on the importance of removing their pets from a life on the chain. Foster families take HURRAH dogs into their homes and rehabilitate them with love, training and socialisation. At the end of their rehabilitation period, the dogs are assessed for their suitability to be placed up for adoption. 4 FEBRUARY 2014 FYI WWW.NHBA.ORG.NZ

RUGBY LEAGUE: PRE-SEASON TRIALS North Harbour Stadium plays host to the Vodafone Warriors and the Gold Coast Titans as Rugby League kicks off for 2014 on Sunday 9 February. The only trial to be played in Auckland ahead of the 2014 season, this will be your first chance to see some of the new signings. This year there are two action-packed games with 2013 Holden Cup runners-up the Vodafone Junior Warriors also taking the field. Gates open: 1.30pm Game 1: Kickoff 2.00pm - Vodafone Junior Warriors v Point Chevalier Pirates Game 2: Kickoff 4.00pm - Vodafone Warriors v Gold Coast Titans Tickets from ticketek.co.nz


IN BRIEF

major Strategic Review. He was the Party’s first General Manager, and led it through to, and then managed, the 2005 election campaign. The minister chaired the National Party’s successful 2008 national election campaign and was also elected as a list MP at the same election. He was then appointed as a minister in the new Cabinet. Steven Joyce has a reputation as an excellent speaker so this luncheon will prove to be very popular. We encourage you to RSVP early via our website to avoid missing out. NHBA thanks BNZ Partners for its sponsorship of this keynote event.

NHBA BUSINESS LUNCHEON

Steven Joyce Business Luncheon

Join us to hear the Hon. Steven Joyce, Minister for Economic Development, who will be the guest speaker at NHBA’s next Business Luncheon. As Minister for Economic Development, Steven Joyce will share the government’s plans to support and encourage business growth, and the expectations from business in return. We have also invited the minister to share some of the strategies he employs as the government’s ‘Mr Fix-It’ man. This luncheon is a great opportunity for corporate entertainment. So treat your customers by hosting them at this high-calibre business event. There will be a Q&A session at the end of the minister’s presentation. Questions will be

taken from the floor but please also feel free to submit your questions ahead of time by emailing elizabeth.devlin@nhba.org.nz A high profile and influential member of the business community, Joyce is also Minister of Science and Innovation; Minister for Tertiary Education, Skills and Employment; and Associate Minister of Finance. After completing a zoology degree at Massey University, Joyce started the Energy FM radio station, and then with two business partners built up RadioWorks over 17 years. He chaired the National Party’s Campaign Review after the 2002 election, and then its

SAVE THE DATE When: 1-3pm, Friday 21 February Where: North Harbour Stadium To book your seat: nhba.org.nz/events Costs: One complimentary ticket per NHBA member. Additional member guests are welcome - $40 +GST. Non-NHBA members are welcome - $55 + GST. To book a corporate table: Phone Elizabeth Devlin on 09 968 2222


IN BRIEF

BY THE NUMBERS 21,170 kilometres travelled per year by NHBA proactive security patrols

Dates for your Diary February 9

24 percent of New Zealand residents are born overseas (Statistics New Zealand 2013 Census)

24,380 people employed in the North Harbour Business Improvement District (Statistics New Zealand 2012 Business Census)

15 the number of months the NZTA will be working on the SH1 Northern Corridor improvements

196,000 people asked for help from Netsafe in 2013

21 years since the Massey University Albany campus was established

40 the percentage increase in bus users over the past 12 months 6 FEBRUARY 2014 FYI WWW.NHBA.ORG.NZ

NRL Pre-Season Game

NORTH HARBOUR STADIUM, STADIUM DRIVE, ALBANY

See the Vodafone Warriors take on the Gold Coast Titans in a pre-season hit out at the North Harbour Stadium. Gates open at 1.30pm and kick off for the main game is at 4pm. Tickets from www.ticketek.co.nz

10-16 Heart Foundation Heart Week Appeal Every 90 minutes one New Zealander dies from heart disease. The Heart Foundation is the charity fighting this disease. Look for collectors on the streets Friday 14th and Saturday 15th Feb. To donate call 0800 831 100, txt ‘donate’ to 849 to donate $3, or go online at www.heartfoundation.org.nz

11

Business After Five hosted by Upper Harbour Local Board

KRISTIN SCHOOL – DOVE THEATRE, ALBANY

Learn about the Proposed Auckland Unitary Plan and what it could mean for you. www.nhba.org.nz/events

20

Hospice North Shore Golf Day

March 2

Sport Expo

PINEHURST SCHOOL, 75 BUSH ROAD, ALBANY

A great family fun day out where you can try over 50 types of sports and meet some of New Zealand’s top sporting personalities. www.sportexpo.co.nz

3-9

Plunket Bear Hug Appeal

The annual Plunket Bear Hug Appeal raises much needed funds to assist the vital support Plunket provides to our community. Get involved by volunteering as a street collector, organising a workplace fundraising initiative or by donating today. Call Gwenda on 027 344 5953 or email gwenda.dowler@plunket.org.nz www.plunket.org.nz

4

Business Women’s Event

NORTH SHORE GOLF CLUB, APPLEBY ROAD, ALBANY

AUT MILLENNIUM INSTITUTE, 17 ANTARES PLACE

Enjoy a round of golf with your clients, colleagues or friends while raising money for this vital community organisation. Moira 09 485 3576, events@hospicenorthshore.org.nz or www.hospicenorthshore.org.nz

Learn expert tips on making the most out of networking opportunities. Never feel uncomfortable walking into a room of strangers again. www.nhba.org.nz/events

21

Business Luncheon with Hon. Steven Joyce

NORTH HARBOUR STADIUM, STADIUM DRIVE, ALBANY

Hear from the Hon. Steven Joyce on the Government’s plans to support and encourage business growth. www.nhba.org.nz/events

5

Business Edge

TRUSTS STADIUM, CENTRAL PARK DRIVE, HENDERSON

A business improvement programme consisting of four master classes and a one-on-one coaching session over a six-week period. www.business-edge.co.nz

To keep up to date with what’s on please see www.nhba.org.nz/events If you’d like to feature your events in future editions of the FYI Magazine please contact elizabeth.devlin@nhba.org.nz


SIGNAGE BYLAWS

A

uckland Council and Auckland Transport are this year reviewing the rules that regulate signage in Auckland. At the moment there are 23 different sets of rules that the council and Auckland Transport have to manage that were inherited from Auckland’s former local authorities. Some of these are included in bylaws while others are in district plans or regional rules. The new Auckland Council has a statutory requirement to review its bylaws and rules by the 31st of October 2015 and the review of the signage rules are part of that. The aim of the review is to produce bylaws with a consistent set of regulations for signage across Auckland. Through the review process the council and Auckland Transport are conducting research and consulting with a range of stakeholders including industry, business, iwi and the disability community, before the bylaw is drafted.

Information gathered so far recognises that signage is an integral part of the environment, providing direction and information, and advertising services and products. It is also noted signage performs a valuable social and economic function and is valued by commercial enterprises. It has also been identified that poor signage can cause safety issues and create visual clutter. Some of the specific issues identified relate to the following:

• Too many signs or those inappropriately placed on a public footpath can cause problems for pedestrians – especially those with disabilities. They can also make the street look untidy and unmanaged roadside advertising can impact on traffic safety.

• The impact signage has on visual amenity and the character of an area.

• The role signage has for properties with no direct street frontage or above ground floor businesses. This information will be considered during the drafting of a bylaw, which is currently being undertaken. It’s expected a proposed bylaw and supporting documents will be ready by mid to late 2014 and these will then be made available for submissions from the public. This will be followed by public hearings where a panel will consider all submissions before a final bylaw is adopted. If you would like to provide any comments on the bylaw review or current signage regulations please send those through to Janine Brinsdon at the NHBA. Phone 09 968 2222 or email janine.brinsdon@nhba.org.nz

NHBA Women's Event Series

Network with Confidence If you've ever felt embarrassed walking into a crowded room or struggled to introduce yourself at business functions, this event is for you. 10.30am Tuesday 4 March AUT Millennium Institute, Antares Place, Mairangi Bay The NHBA is delighted to present Network with Confidence, the second event in our Women's Series. The confidence to successfully work a room is something many of us envy. Please join us to learn tips and techniques to help you develop your networking skills. The workshop will be led by professional business facilitator and connector, Sue Sinclair.

For more information and to RSVP go to www.nhba.org.nz/events


TRANSPORT

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Partially signalised roundabout including bus priority Providing additional facilities for public transport and safer access for pedestrians and cyclists

New 3 metre shared walking and cycling path Creating better walking and cycling links in the area

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Reducing congestion and improving capacity

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NZTA says “stop-go” traffic management will be used when road use is light so work can be completed as quickly as possible with minimal disruption to peak-hour traffic. At the Greville Road/ Tawa Drive/ Albany Expressway roundabout lane widths will be reduced on approaches

According to NZTA, most of this work will be done in the evenings when traffic flows are lighter. to the roundabout. A 50km per hour temporary speed limit will be in place while work to install a fully signalised system begins. According to NZTA, most of this work will be done in the evenings when traffic flows are lighter. Expect to find reduced lane widths and a 50km per hour temporary speed

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Converting the Greville Rd/ Tawa Dve/ Albany Expressway roundabout into a fully signalised intersection crossing facilities for pedestrians and cyclists

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Your supply chain arrangements, customers and staff may all be affected by roadworks in the area that are just starting and are expected to run for many months to come.

HBA will post regular updates on any work on the Northern Corridor motorway system that may affect you. For more information refer to the transport section of NHBA’s website. The NZ Transport Agency (NZTA) asks people to take extra care while moving through the area. Work has already started at the Greville Road interchange and northbound on State Highway 1 between the Upper Harbour Highway and the interchange (see story “Prime Minister turns first sod”). NZTA says existing lane widths will be reduced as piling is put in place and retaining walls are being built. There is a temporary speed limit on the northbound lanes of 70km per hour. The Rosedale Road Bridge is being widened. While work is being done on retaining walls, walkers and cyclists will be directed to use one side of Rosedale Road.

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NORTHERN CORRIDOR ROADWORKS NOW UNDERWAY

Widening Albany Expressway from 1 to 2 lanes southbound

limit while construction starts on a new southbound lane on the Albany Expressway between Mecari Way and Greville Road. You may also notice new stick-on orange road markings in some places instead of white paint. NZTA says these new markings can easily be removed once the final layout of a project is finished. This saves time and money as road resurfacing won’t be necessary. All the current projects in our area are part of the Government’s plan to create a motorway-to-motorway connection between the Northern Motorway (SH1), Upper Harbour Highway (SH18) and the Western Ring Route (SH16). They are designed to ease congestion, improve links to and from North Auckland and beyond, and support economic productivity.


Widening the Greville Road southbound onramp at the T2 (priority lane for vehicles with two or more passengers)

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Making it easier for buses to move from the T2 lane to the motorway’s bus shoulder lane

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Easing congestion at this bottleneck location

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Reducing congestion and making it easier to move from the motorway to the local roads

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rime Minister John Key officiated at the formal launch of work on our local stretch of the Northern Motorway in a groundbreaking ceremony late last year. Work has now started on upgrading the Greville Road interchange and widening the northbound SH1 motorway to three lanes between the Upper Harbour Highway and the interchange. The improvements aim to ease the traffic bottleneck on this stretch of State Highway 1. They are expected to be completed by mid-2015. NZ Transport Agency Highways Manager Tommy Parker says this section of the motorway network requires immediate attention. “Already an average of 36,000 vehicles use this section of our

network daily in an area facing rapid commercial and residential growth. “It is also essential to give people more travel choices by making this area safer for cycling and walking, and to improve connections to and from local roads and the motorway.” Auckland-based infrastructure company HEB Construction is delivering the $19.5 million project. Parker says the work may seem like a small start. “But the Upper Harbour Highway to Greville Road three-laning project marks a significant step for the Transport Agency to accelerate the Government’s next generation of transport projects in Auckland.” He says drivers in Auckland and the rest of New Zealand will benefit from the better and safer connections. WWW.NHBA.ORG.NZ FYI FEBRUARY 2014 9


UNITARY PLAN

Council’s Proposed Auckland Unitary Plan

What it means for you

How will proposed changes under the Auckland Unitary Plan affect you as a commercial property owner, developer or tenant? We want to ensure all NHBA members understand how the plan will shape Auckland and the economic implications at a local level in terms of regulatory environment and economic opportunities.

The challenge

Smarter tools, simpler rules

The challenge, as set out in the Auckland Plan, is to accommodate over the next 30 years:

Many of the 14 existing district and regional plans that the Unitary Plan will eventually

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The PAUP sets the rules to help Auckland meet this growth challenge, while enabling the vision and achievement of the priorities set out by the EDS.

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Auckland’s physical growth is governed by the Proposed Auckland Unitary Plan (PAUP). This is a statutory enabling document which sets the objectives, policies and planning rules. It enables the setting for growth and therefore works alongside a range of other council policies and strategies. The Unitary Plan does not cover the full breadth of business engagement activities and actions proposed in the Economic Development Strategy (EDS). Nor does it set out council investment plans – those are in the Long-term Plan.

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Overview

HBA has invited Penny Pirrit, Auckland Council’s Manager Regional and Local Planning, to present the Unitary Plan to our members on 11 February at the Dove Theatre, Kristin School. This is your chance to view the plan in detail and have your questions answered. For more information on this event see “Dates for your diary” on page six of this issue of FYI. There has been much discussion in the media over the past 12 months on the council’s introduction of the Unitary Plan. Here’s a summary of some of the top-line items for your consideration. Much of the text is drawn from the recentlyreleased report “Shaping a business-friendly city: The Proposed Auckland Unitary Plan”. To download a copy go to http://tiny.cc/cp6cax

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UNITARY PLAN

replace are already more than a decade old. The PAUP consolidates the many different zones that exist in the current, operative plans into a smaller set of zones, overlays and precincts. For example, it reduces the current set of 99 residential zones to six, and 44 business zones to 10. It also proposes much greater certainty on issues such as notification and density controls.

Shaping Auckland for growth The PAUP needs to deliver on the Auckland Plan principles for economic growth. These include strengthening Auckland’s network of neighbourhood centres and using parking standards and innovative parking mechanisms to help achieve the compact city goal. They also include ensuring these centres are the primary focus for retail and other commercial activity. There are plans to develop and manage business areas to complement centres and to provide for a diversity of opportunities for business and employment growth. A vibrant, efficient and attractive Auckland will:

• Be a place where talented young people choose to stay, live and work.

• Have businesses closer or more accessible to their customers and employees.

• Safeguard existing business land and open up new areas.

• Have centres and business areas that attract new and continued investment.

Space to grow At current growth rates we face a shortage of business-zoned land, which is a problem for land-extensive industries, such as manufacturing, transport and storage, construction and wholesale trade. These activities face pressure from higher value activities including retail, service sectors and, in some places, residential growth.

Investing for growth

within general business and light industry Auckland Council has set out plans for the base zones. greatest investment in infrastructure the Permitted activities range from light city has ever seen. It is double the levels industrial or industrial which does not seen in the last few years of the former generate objectionable odour, dust or noise legacy councils. emissions through to limited office and large These are being funded through efficiency format retail activities. (Refer to the Business savings of the business (about $145 million Centres Fact Sheet for more information on a year so far) and borrowing for long-term http://tiny.cc/cp6cax) capital projects. Little has changed across NHBID, apart As part of the central government’s “Better from the inclusion of an Albany.2 precinct. Local Government” reforms, a new requirement The purpose of this precinct is to provide for a 30-year infrastructure strategy is being for small stand-alone office activities which introduced in time for the are not usually located within light indus2015 Long-term Plan. trial zones. The PAUP will restrict office The result is a activities exceeding 500m2 per site if rapidly growing set of stand-alone. However as this restriction is opportunities across activity based, if the office is an the city. Areas that accessory to an indusare considered less trial activity – i.e. the market-attractive now office is attached to a could quickly change as distribution warehouse – new and better transthe overall building is not port facilities, improved restricted to just 500m2. public and open spaces, Outside of the Albany.2 and higher-quality precinct, the rules for the social amenities are light industry base zone developed. Over the apply. For example, Light Industrial 30-year horizon of providing the office General Business Up to 20m the Auckland Plan, activity is an accesUp to four storeys the changes will sory to the main be dramatic. industrial activity, the office The challenge for the PAUP is to enable component can occupy up to 30 percent of all business and housing growth to make the buildings on the site – or 100m2. most of the opportunities that this investment These are just two examples. For further provides; in turn this makes the investment details please refer to the NHBA website for more viable, by ensuring that more people and the Business Zone Activities Tables: http:// businesses are able to benefit from it. tiny.cc/cp6cax. This needs to be a partnership. Market perceptions and activity will shift through a Building height combination of well-designed quality develop- Light industrial zones ment by the private sector and co-ordinated – up to 20m is provided for. place-based investment by the public sector. General business zones  – up to four storeys.

Possible implications for you

You may be affected by the PAUP within the North Harbour Business Improvement District (NHBID). As previously mentioned, business activities are being divided across 10 base zones. The majority of North Harbour BID falls

Both zones have expectations around a good standard of design with a positive contribution to street and public open spaces. Larger scale buildings (5000m2 gross floor area) will need to meet sustainable design requirements.

AT A GLANCE For most NHBA members, the Proposed Auckland Unitary Plan will not necessitate any change to their physical environment because the North Harbour area is a relatively new development. Regulatory changes will generally only affect remaining greenfield sites or a significant change of use. Please bear in mind that the PAUP does not restrict activities outside of the scope of the base zones (i.e. general business zone). It defines what you can do without expensive legal applications and applies this consistently across Auckland. Auckland Council has developed an e-map which graphically displays the impact of every broad type of compliance for every property in the city. This can be viewed at http://tiny.cc/ulbbax The map is reasonably intuitive. We encourage you to view the details relating to your business and residential physical environment.

WWW.NHBA.ORG.NZ FYI FEBRUARY 2014 11


UNITARY PLAN

Transport The Unitary Plan focuses intensification in areas around train stations or within walking distance of frequent public transport. The impact of this intensification has resulted in an Auckland-wide traffic generation rule. North Harbour BID members who will be affected by this rule are: education facilities with more than 100 students, office facilities > 1250m2 gross floor area (GFA), retail > 500m2 GFA, warehousing and storage > 5000m2 GFA, other industrial activities > 2500m2. These measures relate to total development and include new and existing development. Owners may be required to mitigate their traffic generation through staging development to match improvements to the transport networks, working through a plan to reduce the need for vehicle use, through to investment to the local network. High trafficgenerating activities will require integrated transport assessments. (For details refer to the Traffic Generation Control Fact Sheet: http://tiny.cc/cp6cax) There is now broad agreement on the key transport projects needed to enable Auckland’s growth. These include an additional Harbour Crossing and improving the Northern Busway.

Submissions on the PAUP Auckland Unitary Plan are open until 28 February 2014. NHBA is urging businesses to have their say on the parts of the plan they support as well as those they want to change. Please contact Janine Brinsdon with your comments for inclusion in NHBA's collective submission no later than 24 February 2014. Email janine.brinsdon@nhba.org.nz or 09 968 2222

Parking Changes to parking provisions have implications for business tenants and property owners. The PAUP will apply a minimum parking requirement within general business and light industry zones – which is in most cases less than under North Shore City Council. For example in the general business zone, developments on the same site, require 1 park for every 50m2 GFA, or 0.7 parking spaces for

every full-time equivalent (FTE) employee – whichever is lesser. NHBA recommends you refer to the Accessory Parking Fact Sheet for a full industry requirement breakdown: http://tiny.cc/cp6cax Disclaimer: This article uses selected examples to illustrate some of the main implications of the Proposed Auckland Unitary Plan. It is the responsibility of each business owner, property manager or property owner to get the detail they need to be secure in their understanding.

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BUSINESS CAPABILITY PROGRAMME

New programme to help lift economic growth

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HBA is launching a major new Business NHBA General Manager Janine Brinsdon Capability Programme in coming months describes the Business Capability Programme and is asking members to spend 10 as a significant commitment by NHBA minutes on an online survey to help match the to supporting economic growth within final programme to their business needs. (See its members. “Have your say” for details.) “With NHBA’s Crime Prevention, Transport The Business Capability Programme Management, Business Development and contains three tiers tailored to the diverse Advocacy programmes well embedded, we needs of NHBA members. have capacity to add additional services for The first tier will provide a consolidated our business owners and their staff,” she says. guide to current training options and providers. The development of the new programme The second level will provide workshop/ follows research conducted in 2012/2013 seminar formatted training: a preferred across the North Harbour area which highlearning method identified in an earlier lighted interest from business owners in NHBA survey. accessing additional support for core training, The third tier will be for those members who knowledge and competency training amongst are prepared to make a significant commit- their teams. ment to improving their capability and support The survey sample for that research a more formalised training programme. included a range of businesses with less than Details of the programme will be promoted five employees through to 100+ employees. through the NHBA Events calendar (nhba. It sought feedback on subjects ranging from org.nz/events), FYI Online e-newsletter, at short- to long-term financial management, HR, theClickHD NHBA NHBA Business Expo Proof.pdf (May 2014)1 and via marketing, customer relations, competitive FYI Advert 22/01/14 3:55 pm this magazine. positioning and industry sector forecasts.

NHBA also asked respondents how they prefer to learn, how much time they would commit and what monetary value they would attach to training. The development of the Business Capability Programme also follows the inclusion of a significant number of additional businesses in the NHBA area since the expansion of the North Harbour Business Improvement District in July last year.

Have your say We’re mindful the business environment is changing constantly. So please take 10 minutes to complete our survey and help ensure the new NHBA Business Capability Programme reflects your interests. http://tiny.cc/qyidax

Do you market online? Is your website important for generating new business ? If yes, then you should be using video. Video is the fastest growing advertising medium in history and can be more effective at generating website enquiries than photos and text alone.

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g discount durin BA H N r February fo te o members – qu this advert

It is also a great way to engender the ‘KNOW, LIKE AND TRUST’ factors that are so important when promoting your business online. Video does not have to be expensive. We will work with you to develop a cost effective video that will give your business an online boost. Contact ClickHD now and we’ll be happy to discuss how video can help promote your business.

CALL NOW ON 09 475 6460 www.clickhd.co.nz info@clickhd.co.nz


BUSINESS GROWTH

How to manage your business growth What’s the best way to handle a growing business? We ask a recruitment expert what managers need to consider. Plus, two local businesses share their learnings.

16 FEBRUARY 2014 FYI WWW.NHBA.ORG.NZ


BUSINESS GROWTH

Good news in a nutshell

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f recent economic forecasts prove to be correct, many New Zealand businesses are finally on the cusp of much better times. After years of gloomy statistics, 2014 has kickstarted with a raft of positive predictions. Shamubeel Eaqub, Principal Economist at the New Zealand Institute of Economic Research (NZIER), says businesses are the most optimistic they’ve been for 20 years and economic activity is strong. This is resulting in better profits, higher investment and more jobs, he says. (For more facts and figures see the box story “Good news in a nutshell”.)

ECLIPSE RECRUITMENT Eclipse Recruitment Managing Director Lisa Hill says she has been seeing evidence of an upturn for some time now. She suggests businesses in growth mode need to plan ahead so they can find the best candidates to fill the needs identified in their business plans. She urges managers to take into account that it will take longer to find the right person if they’ve got strict criteria around the role, required industry experience and how a person must fit into a company’s culture. Flexibility with some of these criteria will enable managers to fast-track recruiting. Hill says growing businesses can sometimes keep their small-company culture while adopting the best types of structures and processes usually employed by larger companies. “This can ease the pain of growth.” She also recommends businesses provide robust induction and training programmes. “Make sure your people are well trained, and that they understand your business, its goals and how they fit into the business’ plan. They need to know what the expectations are of their role and how they contribute to the big picture.”

TOMFIT Since setting up his TOMFIT personal training studios at the end of 2009, Tommy Bellman has grown his business so much that he now has to move to larger premises. From April this year TOMFIT will shift from its 114m2 studios in Antares Place, Rosedale, to a new 500m2 site in Albany. Bellman is investing more than a quarter million dollars in equipment, launching new programmes and taking on more personal trainers to join his current group of 10. Bellman says his business has been growing steadily for some time now. The company was running about 100 personal training sessions a week at the end of 2010. That has now reached 250 sessions a week. “We could probably have made a move to new premises a bit earlier,” he says.

• In December 2013, businesses were the most optimistic since June 1994

• Domestic trading activity strengthened to the highest level since March 2005 (net 15 percent of firms reported increasing activity, up from 12 percent in September).

• Reported hiring rose to the highest level since December 2006. • Firms expect to hire more staff at the start of 2014. Source: New Zealand Institute of Economic Research (NZIER), January 2014 Quarterly Survey of Business Opinion

ACCORDO GROUP Software asset management company Accordo Group has recently won significant contracts with two of the world’s top five software vendors. That resulted in Accordo setting up offices on Constellation Drive, Albany, and taking on an additional 70 people within the past 18 months. Chief Executive Chris Moxon says the North Shore is a good place for recruiting staff for the company’s outbound call centre. Overseas customers like the New Zealand accent, he

says. “So when we call them we get a very friendly reception.” He also says North Auckland has a “tremendous pool” of people who are multi-lingual. “We deal in just over 40 countries around the world and we’ve been very pleasantly surprised with our ability to attract people who can speak French, German, Thai, Chinese dialects ... all sorts of different languages.” Accordo’s total headcount is now 150, he says. “And our future growing will be on the North Shore.”

What advice would you give to businesses starting, or continuing, to grow in 2014?

LISA HILL ECLIPSE RECRUITMENT

TOMMY BELLMAN TOMFIT

CHRIS MOXON ACCORDO GROUP

It’s important to get the right people on board to fill the gaps that you’ve got in achieving your growth goal. So try to really understand what the growth is that you’re looking for and then find the right people to match that. If you’re looking to increase your sales, for example, do you need to take on more sales people or do you actually need to provide some extra support? Maybe what you really need is to improve your sales processes. If so, is there a contract opportunity for someone to come in and shake things up a bit? Is that going to be the most cost-effective way of achieving some of your goals?

Stick to what you’re really passionate about and good at, and find a way to help as many other people as you can. The dollars will follow. Our whole new facility is based on the fact that we want to help our clients become fitter, healthier and stronger. We want more people to say their quality of life has improved because they came down to train at our studio. Whether their definition is their jeans fit better or they’ve lost weight or they just feel better about themselves or they’ve gained self-confidence ... it doesn’t matter ... we just want to take that to more people. Also, don’t take work too seriously. If you’re not having fun you’re probably doing the wrong thing.

Focus on the quality of your employees, especially if you are trying to grow your business quickly. We’ve been pleasantly surprised with the quality of the North Shore-based candidates who’ve been applying for roles with us. When hiring a lot of people over a short time frame, consider recruiting them in groups rather than one at a time. This is effective as it makes induction and training much easier. We’re now on our fifth or sixth group of eight to ten new recruits. We put them through our three week boot camp where they get intense training together. It’s got multiple benefits in that they get a feeling of camaraderie as a group as well as being able to help each other out.

WWW.NHBA.ORG.NZ FYI FEBRUARY 2014 17


2014 NHBA BUSINESS EXPO

Register now for the

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egistrations are now open for the fourth annual NHBA Business Expo. North Harbour businesses are advised to book early as exhibition space will be in high demand, particularly as the event sold out in 2012 and 2013. The expo – which will be held on Thursday 15 May at North Harbour Stadium, Stadium Road, Albany – showcases the best of North Harbour business. If you are a leader in your field, exhibiting is a must. Now in its fourth year, this is an event that consistently delivers tangible value to participants. The number of repeat and forward bookings is evidence of this. These bookings are also a testament to the strength of the relationships formed and business development opportunities created. The NHBA is committed to this event in support of economic development across the business improvement district. NHBA General Manager Janine Brinsdon says the Business Expo gives businesses the opportunity to form significant strategic, sustainable relationships.

If you are a leader in your field, exhibiting is a must.

The event provides a forum whereby local connections are made and businesses are aligned. By doing business locally, not only are we building the effectiveness of the North Harbour as a whole but individually we can gain from leveraging these local relationships. Efficiencies gained by acting locally ultimately drive increased profitability. It is anticipated that this year’s event will draw in excess of 750 visitors attracted by the opportunity to seek new supplier relationships 18 FEBRUARY 2014 FYI WWW.NHBA.ORG.NZ

across a range of industries. Visitors will be looking to identify best in class products and services. The expo provides you with a platform to market your business alongside the best of the best. In addition to the showcase of exhibitors, visitors will also be treated to a number of keynote speakers in the expo seminar rooms. The event will be marketed through North Shore magazines and newspapers, street signage, direct and digital marketing including social media, and for the first time we will be engaging leading national business publications. This will increase the pool of visitors to the expo and your stand.

To ensure a diversity of exhibitors, industry sector limits will apply. And with the North Harbour Stadium committing all available space to the 2014 expo, businesses are encouraged to book early. This event will sell out.

SAVE THE DATE NHBA Business Expo 2014

When: Thursday 15 May Where: North Harbour Stadium, Stadium Road, Albany To book your stand & for more information: www.nhba.org.nz/expo2014


2014 NHBA BUSINESS EXPO

“I found the expo invaluable and want to register my interest in being an exhibitor at next year’s event. Thank you for organising this.” Bill Maucer, Rise Accountants

“We were blown away by the energy and attendance numbers. It far exceeded our expectations and we definitely want to be there next year.” Dr Mac, Chiropractor

What some of last year’s exhibitors had to say “Thank you for an awesome expo. Hope it was as successful for you as it was for us.” Greg Frittelli, ILG

WWW.NHBA.ORG.NZ FYI FEBRUARY 2014 19


CRIME PREVENTION

Working together

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new NHBA crime preventions and time constraints that tion project will support this brings. and engage Chinese and The partners involved with Korean business people in the NHBA include Professor Paul North Harbour Business ImproveSpoonley from Massey University, ment District (NHBID). Auckland Council Diversity Officer A number of expert parties are Kim Austin and Rosa Chow developing the North Harbour from the Asian Council for the Asian Business Communication Prevention of Crime. Development Project. The project They also include Josh Kim aims to provide a communication and Romana Isaia from the channel between Chinese and Korean Chamber of Commerce Korean business owners, North and Industry Association of NZ, Shore Police and the NHBA. and NZ Police including Commu“By working together we nity Constables Tane Dyer and can improve the safety of our Troy Williamson. business and community environ“The North Shore Police are excited ment,” says NHBA to be a part of the North Harbour Crime Prevention ABCD Project. We look forward to Programme Manager the increased level of engagement Anna Crane. with Asian business.” People of Chinese  Community Constable Troy Williamson. or Korean ethnic “노스쇼어 경찰은 노스하버 ABCD backgrounds own 프로젝트에 참여 하게 되어 기쁘게 and manage a 생각하며 아시안 비즈니스와 긴밀한 significant number 협조 관계가 되기를 기대합니다.” of businesses in the  지역경찰 트로이 윌리암슨 Troy Williamson. North Harbour BID. Many Korean “北岸警察局很高兴参与北港ABCD项目。 businesses are 我们期待着与亚裔商家的紧密联系, concentrated around 提升至更高水平。” the Rosedale area,  社区警官Troy Williamson. while a considerable number of Chineseowned and run companies are spread more The emphasis is on increasing widely throughout the North communication and underHarbour area. standing, beginning with a focus It is estimated that 10 to 15 on crime prevention.  percent of NHBA members are NHBA’s existing Crime from China or Korea.  Prevention Programme already The Chinese and Korean has a strong education communities bring great diversity component, with an emphasis and opportunities to the North on members being willing to Harbour BID, and the NHBA share information with our Crime recognises that it is important to Prevention Programme Manager ensure they are linked into the and with North Shore Police.  wider community for the benefit The programme allows of all.  businesses to concentrate on The project also recognises their core activities while NHBA that language and cultural differfocuses on crime prevention. ences can make integration into We look forward to the opporanother community difficult. This tunity for NHBA members of all difficultly can be amplified for backgrounds to learn more about NHBA members of other ethniceach other, increase underities as they are often involved standing and communication, in running, or setting up new, and work together to ensure our businesses with all the complicacommunity remains safe. 

20 FEBRUARY 2014 FYI WWW.NHBA.ORG.NZ

HELP TACKLE CYBER CRIME Be in to win a portable hard drive by completing NHBA’s survey on cyber security. The responses, which will be treated as confidential, will help NHBA develop a tailored educational programme for members wanting to increase their online security. Cyber security is an increasing issue for NHBA members and carries significant business risk. We are aware that some have already fallen victim to cyber scams, with several having lost around $15,000 to $25,000. (For more information also see the “Cyber scams” article on page 23 of the November 2013 issue of FYI.) As a result, we are looking to create a bespoke educational programme for business. To be successful, this programme has to be valued by our members. It must supply relevant information and opportunities to increase the security of individual businesses.    NHBA’s Cyber Security Programme will help increase companies’ knowledge and ability to protect their data and systems from cyber security threats. It will largely focus on educational opportunities and information sharing.  The programme’s content will be tiered so that businesses can work at whichever level suits their knowledge and understanding of IT issues. We want to be able to take into account the wide variety of businesses that are NHBA members and their different needs. In developing this programme so far, NHBA has accessed support from a wide range of people and organisations with specialist cyber security knowledge. This includes the New Zealand Internet Task Force nzitf.org.nz, a non-profit incorporated society dedicated to lifting the cyber security posture of New Zealand. The National Cyber Policy Office has also expressed interest in this project as it complements the aims  of the New Zealand Cyber Security Strategy (June 2011). The independent non-profit internet safety group NetSafe is also happy to support the project. We will continue to identify contacts that can offer value to the programme. NHBA’s Crime Prevention Programme Manager Anna Crane says she is really excited about this ground-breaking project. As far as she is aware, no other New Zealand business association provides independent IT and cyber security seminars and training modules specifically tailored to members’ needs.

What you can do 1 Go to www.nhba.org.nz/webform/cyber-security-survey

2 Spend just five minutes Tell us about your interest in, and knowledge of, cyber security.

3 Relax Your answers are confidential.

4 Be in to win A Seagate Backup Plus 1TB Portable Hard Drive USB 3.0.


CRIME PREVENTION

Secure your valuable items

Rosedale Park alert NHBA members are advised to exercise caution when using Rosedale Park North as it is also being used for inappropriate sexual behaviour. The area of greatest concern is around the old toilet block near the soccer club where peeping toms are known to be active. As there is also a children’s playground in the proximity of these toilets, parents are urged to be extra vigilant. The issues with the park were addressed at a recent BIZwatch meeting. As a result, the Auckland Council has undertaken an assessment of the area. Consequently, the Parks Department has pruned a number of trees and undergrowth has been thinned-out or removed. This has greatly reduced the opportunity for people to hide or conduct unwanted behaviour in this area. The Auckland Council is also conducting regular inspections of the toilet block, ensuring that any damage is fixed in a timely manner. In addition, Police have increased their focus on the area with the prevention team assisting the Community Constables and frontline staff to patrol the park on a regular basis. They are also speaking with people in the area, noting any unwanted and possibly criminal behaviour.  BIZwatch will continue to assess activity in the park over the coming months and further action will be taken as required. NHBA Crime Prevention Programme Manager Anna Crane encourages people to continue

enjoying Rosedale Park which she describes as a wonderful community resource. “It’s well equipped with a range of facilities suited to everyone from picnickers, family groups, sports people and casual walkers,” she says. “But, as always, exercise caution when using shared public spaces.”

What is BIZwatch?

BIZwatch is a formalised group of key stakeholders from North Shore Police, Auckland Council and NHBA. They meet regularly to address issues affecting the North Harbour Business Improvement District. By getting together around a table they can communicate more effectively and tackle common issues fast and efficiently. More information on www.nhba.org.nz

Please report any suspicious behaviour to the Police by calling 111 or 09 477 5000, or notify Anna Crane at NHBA on 09 968 2222.

Burglaries and overall crime rates continue to drop in the North Shore. However we are still having problems with motor vehicles being stolen, thefts from vehicles and also licence number plate thefts. It is important that we all secure our valuables. This is easy to do by making sure we do not leave anything of value in our cars or, if we have to leave things, by ensuring they are out of sight. This one simple act will significantly reduce the chances of your vehicle being broken into. For business vehicles that have to transport items, reducing the visibility through your rear windows can be very effective. Please make sure you also always lock your vehicle. Police have been undertaking checks on vehicles parked throughout the North Shore. Unfortunately they have found a number of vehicles with significant items of value in full view, including handbags, wallets stuffed with cash, and electronic items such as mobile phones and PlayStations. North Shore police have also been undertaking an operation where we apply number plate security screws to owners of vehicles in the Glenfield and Albany Westfield Malls. These screws make it very difficult for thieves to remove the licence plates from your car. Stolen number plates are used to commit crimes throughout New Zealand, from theft of petrol to aggravated robberies. They can cause you – the owner of the vehicle – considerable stress with police contacting you and the effort of reporting the matter, then arranging for replacement number plates. NHBA will also be supplying these screws to its members free of charge. Please take up this opportunity to have these placed on your private and businesses vehicles. It will make a difference. Senior Sergeant Andy King, Youth and Communities Prevention Manager, North Shore | Waitemata District | New Zealand Police. Safer Communities Together. To contact North Shore Police call 09 477 5000. WWW.NHBA.ORG.NZ FYI FEBRUARY 2014 21


NHBA GOLD SPONSORS 2014 – 2015

NHBA welcomes Gold S We are delighted to announce a fantastic line-up of sponsors for the coming 18 months. These companies have been chosen to provide a wide range of products and services to the local business community. Please refer to www.nhba.org.nz/sponsors for the special incentives and discounts these sponsors offer to all NHBA members.

Thank you to the following sponsors who are renewing their support

BNZ Partners

BNZ Partners brings a fresh approach to business banking. It’s built around your need for a consistent financial relationship with someone that listens and understands, then supports you and your business success. Our team at Constellation Drive covers a range of specialised areas, is empowered to make quick decisions and has on-the-ground understanding of the local market. Whether it is franchise, real estate or everyday financial advice, BNZ Partners makes the effort to understand clients’ financial requirements firsthand. The Partners Centre is a unique approach to business banking, unrivalled on the Shore and around the country.

Labyrinth Solutions

At Labyrinth Solutions we provide a premium service that gives marketers and business owners a world-class website, backed by highlevel web strategy and support. It’s not a cookie-cutter solution. We work with you to create a specific future-proof website solution that easily grows and changes with your business needs and goals. Our range of professional services ensures that we’re constantly thinking of you – offering high-level strategic guidance, online marketing advice and content management training to make your website more successful.

Speedy Signs Albany

At Speedy Signs Albany we use the latest technology and highest quality products to produce custom signage for your business. We can make the perfect signs to advertise your products or inform your customers, while keeping the image of your company in mind. We can custom make any type of sign for your business. We offer free quotes on all jobs, and can come to your location and help you with your signage questions. www.speedysigns.co.nz/Albany

www.website.co.nz

www.bnz.co.nz

Global Security Solutions Ltd We are proud to renew our commitment to North Harbour through continuing our gold sponsorship of the NHBA. Local business and property owners’ needs are unique, and so should be your security solution. At Global Security Solutions, we believe in intelligent protection. Ours is a flexible and dynamic approach that brings together the right systems, solutions and response plans to ensure you get what you need. Global can offer a full security solution through a combination of electronic security and guard services. www.globalsecurity.co.nz

Pinehurst School

Located in the heart of Albany, Pinehurst School is a world-class independent co-education school offering the University of Cambridge International Examinations (CIE) curriculum from Primary through to Senior College. At Pinehurst the journey to academic and personal excellence is sustained by a passion for learning, and the relationship between student, teacher and parent is paramount. Our students regularly achieve top marks in New Zealand and the world in Cambridge examinations. We recognise that a successful education is more than academic achievement; it is about providing the right environment where a child can excel personally, culturally, academically and in sport. Pinehurst welcomes NHBA members to take a personal tour of the school. www.pinehurst.school.nz

22 FEBRUARY 2014 FYI WWW.NHBA.ORG.NZ

Telecom Business Hub North Shore The North Shore Business Hub has been set up to service business customers at a local level. Staffed by business telecommunications experts, our job is to further understand customers’ business needs and ensure you are getting more value for money from your telecommunications services. The Telecom Business Hub community is an energetic group of like-minded Kiwi businesses passionate about realising their ambitions and sharing successes. It is our job to understand your business and how we can tailor the right telecommunications tools to help you succeed. www.telecom.co.nz/business/businesshubs/ northshore/


NHBA GOLD SPONSORS 2014 – 2015

Sponsors 2014 – 2015 trade colour print

Trade Colour Print (TCP)

Vision Accounting Solutions Ltd

General printers based in Albany, Trade Colour Print is your one stop shop for on-demand, short-run, offset and digital printing. We will print anything on paper ranging from books, signage, business cards and flyers: anything and everything you need to promote and market your company.

We pride ourselves on our ability to provide real accounting for all businesses, being approachable and communicating as real people rather than number crunchers or bean counters. We can assist you to grow and protect your asset base, and help you gain the maximum result from your business both in income and lifestyle. As a successful New Zealand-owned business we understand the challenges you face, from making effective business decisions to maximising your net worth. Vision Accounting Solutions Ltd has been helping businesses like yours navigate and chart the complex waters of business for more than ten years.

www.tradecolour.co.nz

NHBA also wishes to thank Insurance and Lending Group (ILG), The Caterers and Manpower for their Gold Sponsorship in 2013.  

www.visionaccounting.co.nz

We welcome our new sponsors for 2014 -2015

AUT Millennium

AUT Millennium is a charitable trust committed to providing a world-class environment for high performance and community sport, health, wellbeing and research. With funding from NZ Government, Auckland Council, ASB Community Trust, Lion Foundation and generous donors, we have added a new generation of facilities and services to the community including a High Performance Sport NZ National Training Centre, Human Performance Centre, Human Potential Centre and the Sir Owen G Glenn National Aquatics Centre which is due for completion mid-2015. Onsite community services include a gym, swim school, lodge, athlete development academy, conference facilities, clinics, school initiatives and a holiday programme. AUT Millennium is proud to support the NHBA.

Eclipse Recruitment

A full service recruitment agency, Eclipse Recruitment has a well-earned reputation for excellence in administration, accounting, sales and marketing, and executive recruitment. We are proud to be approaching our 10th anniversary supporting the recruitment needs of businesses on the North Shore and throughout Auckland. Our recruitment services include permanent, fixed-term contract and temporary placements, as well as skill and psychometric assessments. We bring true expertise to the recruitment process by gaining a thorough understanding of clients’ needs in terms of three vital factors – your role, industry and culture fit.

Plan B

Plan B is a leading provider of end-to-end business continuity services. We offer data backup and protection services through to complex and integrated data backup, standby office and system infrastructure, recovery testing and assurance services. In a business climate in which more data is being created, analysed and shared every minute, data protection and recovery schemes remain core elements of a resilient business. Our cost-effective data backup and recovery solutions ensure your critical business data is available anytime, anywhere, under any circumstances. This leaves you focused on your day-to-day business. Plan B has two locations on the North Shore.

www.eclipserecruitment.co.nz www.planb.co.nz

www.autmillennium.org.nz WWW.NHBA.ORG.NZ FYI FEBRUARY 2014 23


PROFESSIONAL DEVELOPMENT_FINANCE

Mind the gap Many owners are eager to grow their business but struggle to speed up their working capital cycle and shake off their cash flow restrictions. Mike Atkinson explains what’s happening and what to do about it.

T

he cash gap (the time between cash going out and cash coming in) can turn a profitable job or project into a financial mess. Nearly every business experiences this: money flows out before it starts to flow in. For example, let’s assume we run a business with stock (although the same principals apply to service businesses). We buy our stock on day 0. Let’s assume that our stock sits on the shelves for 60 days before it is sold. Unfortunately the stock that we purchased has to be paid for and was on terms of 30 days. The stock finally sells on the 60th day, but our terms of trade entitle the customer 30 days to pay. However, times are tough and they pay late by another 20 days, pushing our total accounts receivables period to 50 days. The final bar (in red in the chart “The cash gap explained”) represents our cash gap. It is the numbers of days between when you paid cash and when you received cash, in this case 110 days minus 30 days, which is 80 days.

BOOST

your local business

Customers

The 80 day cash gap in the example above has to be funded somehow. Typically this is done via a bank overdraft or by injecting shareholder funds. Let’s take our example a step further and assume that we have a business which has annual sales of $3m. Therefore our daily sales are $8,219 ($3m/365 days). If we generate a gross profit margin of, say, 25 percent this would imply that our costs of sales are 75 percent of sales. On a daily basis our cost of sales would therefore be $6,164. Now here is the kicker. With a cash gap of 80 days, we need to fund 80 times $6,164. This implies that our working capital requirements would be $493,150, which could be a problem if our bank overdraft is only $300,000. Extending your loan or requesting an overdraft only works for so long. The business owners can pay themselves a salary, pay back some supplier debt and look to grow the business again … until it once again reaches a

nhba.org.nz

With over 1000 local businesses listed make sure your business is included.

North Harbour area.

Listing is FREE nhba.org.nz/directory PHONE 09 968 2222 ADDRESS F4, 27-29 William Pickering Drive, North Harbour, Auckland

point where the funds available are not enough and they run out of cash again. This is because as a business grows, the working capital required to operate the business at the new level also grows. So how do we control the cash gap? A business may increase the time it takes to pay creditors, but this is often only a short term solution and can negatively impact on potential discounts or favourable terms offered by a supplier. We would suggest that a business should first focus on shortening the time it takes to collect cash from debtors and restructure inventory turnover.

To find out more ways to control the cash gap, plus strategies that can help rein in yours, contact Mike Atkinson from Bellingham Wallace. mikea@bellinghamwallace.co.nz

ffer.


PROPERTY

The Value of Maintenance The importance of keeping a property maintained cannot be under-estimated. Not only does maintenance keep the property attractive to tenants, customers and clients, but also ensures property values are retained and reduces long-term costs. Over the years I have dealt with many owners who have divergent views on the benefits of regular maintenance of their building. What I have seen, however, is that owners with properties who have scheduled servicing such as window cleaning, roof inspections, building washes, replanting and repainting have been quicker to lease their units and attract a Major works such as roof greater return on investment. replacement are often very high I have also seen that regular cost and any opportunity to maintenance has extended the life extend the useful life of such of items such as roofs, driveways items through maintenance pays and painted surfaces. An example off in the longer term by spreading where this did not occur was a these costs over a greater period. roof which rusted and leaked due For Unit Titled properties the to screws being left on the roof introduction of the Unit Titles Act following the installation of some 2010 requirement to obtain a TC FYI.pdf 1 23/01/14 2:59 PM air conditioning units. Long Term Maintenance Plan has

given owners the ability to understand the real costs of maintenance over the longer period. This allows for forward planning on how best to meet future costs and when items may need to be replaced. This is not something that has always been readily available in the past. With the increased demand for such plans the cost to obtain one has reduced and will

hopefully encourage freehold property owners to get one as well. On a final point, using good contractors who are reliable and competent is critical to ensuring proper maintenance. Such contractors are often identified through word of mouth. They are not always going to be at the lowest price, but it is much better to pay a bit more and get the job done right the first time. Good contractors will be able communicators who let you know if there are other issues you should be aware of – even if it is not directly related to what they are contracted to do. By Steve Plummer, Centurion Management Services Ltd


PROFESSIONAL DEVELOPMENT_LEGAL

Managing investment in startups

Is your company in growth mode? Jenny Watson from Clendons North Shore explains the importance of strong legal contracts.

B

ruce is a talented engineer who came up with a fantastic new invention that he figured could make him millions. He was so excited about his product that he quit his full-time job and put all of his time and money into developing his invention for market. But he hit a speed-bump when he started to run out of cash. Enter Fred, Bruce’s brother-in-law, who had some cash in the bank and who agreed that Bruce’s invention had profit-making potential written all over it. Fred agreed to invest in the project in return for shares in the company that Bruce had set up to develop and sell the product. So Fred put a chunk of money into the company’s bank account, and six months rolled by with Bruce continuing to perfect his invention while drawing down funds from the company account. Once the funds got low he approached Fred for more funding, promising that the invention was very close to being ready for market. Fred was willing to provide more investment funds, but he thought he’d better talk to his lawyer first. His lawyer found that the Companies Office register showed Bruce as the sole director and shareholder of the company, and questioned what the intended structure of the investment was. Was it meant to be treated as an advance to the company or was Fred expecting to buy shares from Bruce or be issued shares in the company (or a combination of these)? Fred said he was expecting shares to be issued to him by the company. Unfortunately Bruce disagreed and said that Fred had agreed to purchase shares from Bruce and that the investment should be

26 FEBRUARY 2014 FYI WWW.NHBA.ORG.NZ

treated as a payment to Bruce. Bruce said he had then advanced that money to the company so that the company owed him a debt. He also indicated that he intended to license to the company the right to use the invention. Fred was appalled. Didn’t the company own the invention? He knew the company wouldn’t be worth much yet as it wasn’t trading, but he hadn’t realised that on the books it owed money to Bruce. Bruce had been drawing down funds from the company bank account, so would those payments be classed as repayments of Bruce’s shareholder current account or were they director’s drawings?

Discussing a detailed shareholders’ agreement will often put parties’ minds to matters they have not previously considered.

Fred and Bruce could have avoided this headache if they had put more care into the structure of the business from the start. For any new business it is important to consider whether the legal structure is appropriate (from both a legal and accounting/tax perspective), how any intellectual property should be protected and whether there are employment or IT issues to address. Clearly, a key issue here is the ownership of the invention, as Fred had assumed it was an asset of the business. If the company doesn’t own the invention outright then the licence agreement becomes of vital importance in maintaining the value of the company once it is trading.

An employment agreement between the company and Bruce would have clarified his salary entitlements and should include provisions to protect the company’s intellectual property in the invention – ie that all improvements to the invention or new intellectual property created by Bruce in the course of his employment will belong to the company. A shareholders’ agreement between the parties would cover a number of issues, including the potential directorship of Fred, the funding model for the company, how shareholder advances should be treated, matters of confidentiality and the protection of the company’s intellectual property. Discussing a detailed shareholders’ agreement will often put parties’ minds to matters they have not previously considered, and addressing these issues and reaching agreement as to what should happen in certain situations can avoid messy disputes later. Taking appropriate legal and accounting advice when setting up a business is a bit like taking insurance – the cost of such advice may be a lot less than sorting out complications down the track. If you have any questions on the matters discussed in this article you can contact senior solicitor Jenny Watson at Clendons North Shore at jenny.watson@clendons-ns.co.nz www.clendonsnorthshore.co.nz The contents of this article are general in nature and are not intended to serve as a substitute for legal advice on a specific matter. In the absence of such advice no responsibility is accepted by Clendons North Shore for reliance on any of the information provided in this publication.


ADVOCACY

Parkhead Reserve improvements

A

ction is being taken to address safety concerns caused by pedestrians shortcutting through business premises around Parkhead Reserve. Forklifts and trucks regularly move about the forecourts of premises bordering the reserve between Albany Drive, Parkhead Place and Rothwell Avenue. In a related move, Unitec is removing old couches and other items placed without its knowledge beneath its northern campus building backing on to Parkhead Reserve. The sheltered area had been turned into an unofficial ‘hangout’ area. Unitec says it will also tidy up and fence off this area to prevent it being used in this way again. It is thought these actions will significantly reduce the foot traffic that is causing issues to machinery and trucks in Parkhead Place.

t e e M rt Spo rs Sta

NHBA has been helping co-ordinate solutions through the BizWatch forum and Auckland Transport relationships.

NHBA has been helping co-ordinate solutions through the BizWatch forum after local businesses including Gubba and Clariant shared their concerns. Representatives from Auckland Council and the Police

recently met on site to assess the problems. Auckland Council has arranged for a Crime Prevention Through Environmental Design (CPTED) assessment to be completed. The report will be

FRE E

ENT RY

Family Fun Day All Welcome

Sunday 2 March, 11am - 3pm Pinehurst School 75 Bush Road - Albany

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supplied to the parks department for its consideration. Parties involved are now discussing placing a fence along the pathway leading into Parkhead Place to prevent people from taking short cuts. NHBA understands that as part of the planned upgrade to the Albany Highway there is a proposal to build a formal pathway from Albany Highway to Parkhead Place. We will share details on this as we get them. The Parkhead Reserve green space park could also benefit from a general tidy up to remove litter, graffiti and a number of dumped items.


PROFESSIONAL DEVELOPMENT_MARKETING

Nine tips for effective marketing campaigns Want to super-charge your local marketing? CaféMedia shares nine ideas that will help you drive retention, engagement and conversion.

2 5

Be the solution Your brand shapes what current and potential customers are saying about you when your back is turned. To create an effective brand, it is important to distinguish your company from other similar businesses. Ask yourself – why are you the solution? How can you be the solution? These questions will point you to your unique selling proposition. This will help you and your customers identify what separates your business from the rest.

Mention benefits not features Your customers are always concerned with benefits. They are not interested in your products or services aside from the benefits they will derive from them. So mentioning features will not go a long way if they are not benefit-driven.

6

4

7

1

Research your target customer profile You have created your product or service with a specific audience in mind. Think about these people and why you chose them in the first place. This will help you determine what their needs are. Make this your driving factor.

3

A good format for an advert is to first demonstrate the problem or need of your target customers, and then provide a general answer to the problem without mentioning your product or service. Finally, explain why your product or service is a better solution than your competition’s. This helps cover all grounds especially the important touch points that make local people connect with your brand.

The call to action must be compelling enough to drive your potential customer to take action whether it is to call you or to buy from you. Make sure it includes essential components such as a sense of urgency (i.e. for a limited time) or provide greater value (i.e. an add-on service or free product).

One of the most powerful words scientifically proven to get a customer’s attention is “you”. It is a substitute for one’s name. It stimulates a person’s brain because it refers to the person of interest, your customer. So use power words when creating your advert. Avoid generic terms that do not specifically address their needs.

If you have identified several pain points that your product or service can address for your target customer it is vital to identify the most important one. Adverts focused on one need create higher impact on local viewers than those that address several.

Follow a distinct story format

Add a compelling call to action

Avoid generic terms and use power words

Focus on one need

9

8

Be generous with giveaways Surprise your customers with added value. This drives them to reciprocate and stay loyal to your brand. It is also a form of upselling because if they love what you have added they will most likely come back for more.

Make it easy for people to connect with you Potential customers who cannot connect with your business in the easiest and fastest possible way will most likely go to your competition as they may provide better customer service. If you can, use SMS messaging or web contact forms. Use means and channels that are quick to access especially for consumers-on-the-go.

CaféMedia’s high impact digital advertising helps local businesses connect with local customers. For more information text BSEEN to 226 or call 0800 422 338. 28 FEBRUARY 2014 FYI WWW.NHBA.ORG.NZ


BUSINESS LUNCHEON Guest Speaker:

HON STEVEN JOYCE Member of Parliament

FRI 21 FEBRUARY 1.00 – 3.00PM

NORTH HARBOUR STADIUM

RSVP NOW!

www.nhba.org.nz/events

NHBA BUSINESS AFTER FIVE

NHBA Women's Event Series

Network with Confidence If you've ever felt embarrassed walking into a crowded room or struggled to introduce yourself at business functions, this event is for you.

UNITARY PLAN EXPLAINED TUES 11 FEBRUARY, 5PM Dove Theatre, Kristin School RSVP NOW!

www.nhba.org.nz/events

10.30am Tuesday 4 March AUT Millennium Institute, Antares Place, Mairangi Bay The NHBA is delighted to present Network with Confidence, the second event in our Women's Series. The confidence to successfully work a room is something many of us envy. Please join us to learn tips and techniques to help you develop your networking skills. The workshop will be led by professional business facilitator and connector, Sue Sinclair.

For more information and to RSVP go to www.nhba.org.nz/events


MEMBERSHIP

New Associate Members Welcome to our new Associate Members who have joined us since the previous issue of FYI magazine.

Bellingham Wallace

In starting Bellingham Wallace, we knew good enough wasn’t even close to what we wanted to be for our clients. Yes, we bring best practice accountancy to the table. But our greatest ambition is to add more to the business of accounting through fresh thinking, expansive strategies and the insight to make a positive difference. It is this non-conventional approach and our ability to get results which is valued by The Icehouse. Bellingham Wallace is also behind Business Edge, the leading business improvement programme endorsed by Westpac (www.business-edge.co.nz). Our PLUS magazine, which tackles prominent societal and business issues, has also received a surge of positive feedback from the business community. To receive a copy and subscribe contact damianb@bellinghamwallace.co.nz. Enjoy Bellingham Wallace’s exacting standards across:

• Accounting and Tax   • Business Advice    • Strategy and Growth    • Good Governance    

NZPICS

NZPICS is the organisation for New Zealand supply chain professionals. We provide education courses, member events and more. Study with NZPICS to improve your skills and your organisation’s bottom line results. NZPICS is a not for profit (and not for loss) membership organisation offering APICS Certification programmes for supply chain and operations management professionals within New Zealand. As an NZQA Education Provider, NZPICS is certified as reaching the required standards of NZQA. In 2013 NZQA carried out an External Evaluation and Review. NZQA gave NZPICS the rating of:

• Confident in Education Performance; and • Confident in Self-Assessment. As the New Zealand International Premier Channel Partner of APICS, NZPICS is the provider of the APICS Certification Courses in Auckland and across New Zealand. Our members, employers and students consider NZPICS a great organisation to learn with. Phone: 09 525 1525 Email: enquiries@nzpics.org.nz Web: www.nzpics.org.nz

Phone: 09 309 7851 Email: info@bellinghamwallace.co.nz Web: www.bellinghamwallace.co.nz

NHBA Wine Club JOHNER ESTATE 2013 PINOT NOIR ROSÉ WAIRARAPA

SMUGGLERS COVE 2009 CHARDONNAY HAWKES BAY

Lovely strawberry flavours, watermelon and ripe cranberry aromas. Nicely balanced with a long intense aftertaste. RRP $20.00 NHBAWC $15.00

This wine has full mouth feel, with flavours of apricot and pink grapefruit, 15 percent barrel fermented, with a long persistent finish. RRP $25.00 NHBAWC $15.00

SMUGGLERS COVE 2013 SAUVIGNON BLANC MARLBOROUGH Immediate appeal with its intense aromas of red and green pepper and fresh gooseberry. The palate is well weighted with full fresh passionfruit flavours accompanied by crisp acidity and notes of green apple. RRP $20.00 NHBAWC $13.50

PICK & SHOVEL 2011 PINOT NOIR CENTRAL A classic Central Otago Pinot Noir from the stable of Dry Gully, Alexandra, Central Otago. Vanilla and spicy blackcurrant with wild herbs and red fruit aromatics. RRP $27.00 NHBAWC $17.50 30 FEBRUARY 2014 FYI WWW.NHBA.ORG.NZ

Minimum purchase six bottles – can be one wine or a mix. Offer available while stock lasts. To order, email david@wineandmore.co.nz, ph 09 415 3568 or call in to our store at the corner of William Pickering Drive and Rosedale Rd. Please quote NHBAWC when ordering to ensure pricing. These wines are exclusive to NHBAWC and are not available through supermarkets or other retail outlets.

SAVE THE DATE Wine tasting

Please join us on Thursday 27 March for the inaugural NHBA Wine Club (NHBAWC) tasting event. This is an opportunity to taste the wines on offer through the NHBAWC. See www.nhba.org.nz/events for further information.


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FYI February 2014  

The magazine of the North Harbour Business Association

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