New Zealand is the easiest country in the world to start a business
now that according to the 2016 World Bank doing Business Survey
you've got a great idea and want to start a business where do you start
how do you make your dream of a new business a reality
being in business for
yourself is one of the most exciting things you can do sure it can be
challenging it can be tough but the satisfaction of running and building a
successful business is immense the very first question you should ask yourself
is am i up to the challenge of running a business operating a business is not for
the faint-hearted you've got to give it a hundred percent for a business to
succeed an owner has got to be passionate focused resilient running
your own business can mean long unpredictable days with little respite
till you finally start to make a profit to be successful you've got to be
organized disciplined and not afraid to make decisions you need to be receptive
to new ideas and be able to remain calm under stress and take the
responsibility remember when you're the boss the buck stops with you
ok you've decided to start a business with the product or service you can feel
passionate about now if you see yourself as an owner-operator then you'll be
looking to start yourself a business similar to that of the job you'll be
very much hands-on working for an hourly rate and enjoying the benefits of being
your own boss and running a business
on the other hand if you're starting a
business it will more than likely need staff premises to require processes in
place which means it can operate without you being there all the time your time
will be spent working on the business rather than in the business
we have a lot of ground to cover and some points will need more explanation I'll have new
videos covering in depth the points following in a few weeks time
if you're watching this after that happens you'll see the playlist up here
either way hit that subscribe button so you don't miss any additional information
you will need to find out
if your idea will work as a business an idea that will be a commercial success
and a good idea well they're not always the same thing simple ideas are often the best
is there a gap in the market that you can fill with a new product or
service or can you adapt and improve an already existing idea you need to
consider the potential success of any new project before you leave your job
borrow money and put your family life on the line
successful businesses solve a problem or fill an unfulfilled need will your
new business do this if your answer is no forget it
start again come up with a new idea however if your answer is yes how big is
the scale of the need or the problem if it's a niche issue you might be struggling to
make sales grow the business and feed the family the need or problem you're
solving must provide something your potential customers cannot get elsewhere
or solve a major problem for them the size of the market is crucial in
defining whether you have a viable business that you can grow or a business
that will struggle to support you in the long term
sit down and write a business plan start at how you would like the business to
look when it's well-established and finished if you like and work backwards
from there now this will help you set goals for the business and plan how you
will reach those goals starting out your business plan should be as detailed as
you can make it if you know where you're going its much easier to get there
make sure you include in your plan your guarantee and your USP
USP is your unique selling point the reason your products or services stand out from
the rest that's your USP unless you're going to
sell something no one else has or provide a service never seen before
you'll be in a crowded market competing against other businesses and a guarantee
and a USP in that situation will encourage customers to use you and not
focus on what matters and thats making money most business failures come from
not concentrating on the money you will have a much easier path to success if
you're making money from day one ensure that you are profitable means all your
transactions have to be looked at you need a tight control on budgeting
purchasing and your general expenses
how much will you charge what a
customers willing to pay for your product and service and what are your
competitors charging do a simple test and measure by sampling a group of
potential customers now this can be done via Facebook groups surveys etc
are there accepted industry standards or price regulations for your type of service or
product how will your prices appear to customers now if you appear too cheap
you may be thought of as poor quality but can you charge more because you're
adding value you have better quality product or service a guarantee and maybe
just superior service
in the beginning it's all
about the cash flow you will have to understand your break-even point and
what that means in terms of monthly sales and revenue have you been
realistic in your budgeting with both revenue and costs if your cash flow
shows you're not making any money or won't make any money for a while do you
have the reserves you know the cash in the bank to get you
through to when your business is making a profit you'll have to decide if this
is an idea worth your effort your investment in time and money or should
you pursue another may be a better idea
before setting up especially if you are
renting premises check with your local council each local authority has its own
rules and regulations about what business activity is allowed and in what
areas for instance it's unlikely you'll be able to run an automotive repair
workshop in a residential neighborhood you will need a liquor license if you
intend to sell alcohol and meat food preparation standards if you are serving
or manufacturing food now some councils allow business to be run from home others do not
you will have to choose which legal business structure
that best suits you the most common are
each structure offers various benefits and considerations
depending on which you choose you may have to register with various government bodies
the three most common business structions in New Zealand are
a sole trader operates a business on their own they can employ
people but the trader controls manages and owns the business and is entitled to
all the profits usually a sole trader business can be
established without any paperwork
partnerships are most commonly used for professional people
lawyers accountants doctors people like that partnerships can be an effective
way to share business operational costs for example several people work out of maybe the same office
a limited liability company or an LLC is
a formal and legal entity in its own right
and it's separate from shareholders or owners shareholders liability for losses
is limited to their share of the ownership of the company the limited
liability company is New Zealand's most successful business structure
irrespective of which entity you choose if there is more
than one of you I cannot stress the importance of having a shareholders
agreement in place it should set out how the business will trade the roles
remunerations and expectations of the various shareholders and most
importantly how will that entity be dissolved at the end will it be closed
down sold partnership shareholder buyer and how will value be calculated that
agreement should be detailed and the process should be detailed for each of
these things please get it prepared by a lawyer experienced in these matters
what's that applying for a New Zealand business number NZBN
this is a unique identifying number for your business registration
number if you like if you're a company you'll automatically get an NZBN
sole traders self-employed people or partnerships can register for an NZBN online
if you've decided to structure your
business as a company then register your LLC and the name online with the company's office
you'll need to register for GST with
Inland Revenue you can register for GST at the same time you register your
company or at a later date talk to your accountant about the various thresholds and dates
there is a big difference between
professional advisers and there is plenty of choice available to you find
people who you can trust those who have walked the walk and contact them early
in your process tell them what you want to do and then listen to their comments
good professional advisors will give you the feedback needed to keep you on track
at the very minimum you'll need a lawyer and accountant and an insurance broker
and a banker or financier a good business coach or business mentor would
also be a great addition I've got a strong roster of professionals that my
clients have used in the past to help them with their businesses I'm happy to
put you in touch with any professional you might need just leave me a comment
down below bear in mind I'm an Auckland New Zealand and that's where these
professionals are based too we've spoken about a lot of things in this
video and some of the information will need to be far more detailed than what
I've given you so as a result I'll be making more videos covering many of the
points I've just talked about in much more detail now they'll be in a playlist
just here if I've already made them if I haven't made them you'll need to
subscribe to see them I'll have more information on leasing cashflow bank
lending and many of the other things you'll need to know to start a business
so don't forget to subscribe thank you again for watching if you want to know
more about starting a business and want tips on successfully improving your
business start right now hit that subscribe button if you liked the video
would like to leave me a comment maybe a thumbs up or if you want to ask a
question please do so I read and reply to every comment and I would love
to hear from you so until the next video see you again then