N Z Small Business Owners Handbook

By Richard Rowley

The N Z Small Business Owners Handbook is an essential guide for the over 500,000 small business owners in New Zealand. This practical and comprehensive book offers clear and actionable insights that every owner and stakeholder needs to understand in order to succeed.

While many small business owners are skilled at working in their business, they often neglect the crucial task of working on their business due to their busy schedules. This can lead to exponentially increased risks and missed opportunities. Simply working harder is not the answer - knowing how to work on your business is critical.

This book offers an easy-to-understand solution, using the analogy of the popular game ‘snakes and ladders.’ Just like in the game, business life can be full of ups and downs. This handbook provides a clear roadmap to help navigate the challenges and capitalize on the opportunities that arise.

Whether you are an established business owner or just starting out, this handbook is an indispensable resource for anyone seeking to thrive in the dynamic and ever-changing world of small business. With practical advice, real-world examples, and clear action steps, the N Z Small Business Owners Handbook is the ultimate guide to achieving success and realizing your business dreams.

• Language: English
• Publisher: Austin Macauley Publishers
• Release date: Jul 21, 2023
• ISBN: 9781398469921

Richard Rowley

Richard is now retired and living in Auckland, New Zealand. Born to a sheep-farming family in Central Otago, he boarded at Timaru Boys’ High School and then went to university at Dunedin where he read law. After graduating he lived in Oamaru for twenty-three years, then moved to Wellington and subsequently to Auckland and Hamilton. He has been focused on small business but also has had appointments to boards of directors for several companies, including being a director of the Broadcasting Corporation of New Zealand. He was the first chairman of Radio New Zealand when it was made into an SOE. Later in his career he was managing partner, chairman of partners, executive director, and chief executive, respectively of several different law firm businesses across Australasia. This life of business experience has culminated in a desire to see growth and better management within the business community generally. He tries to help owners of these businesses thrive and understand how they can improve.

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About the Author

Richard is now retired and living in Auckland, New Zealand.

Born to a sheep-farming family in Central Otago, he boarded at Timaru Boys’ High School and then went to university at Dunedin where he read law. After graduating he lived in Oamaru for twenty-three years, then moved to Wellington and subsequently to Auckland and Hamilton.

He has been focused on small business but also has had appointments to boards of directors for several companies, including being a director of the Broadcasting Corporation of New Zealand. He was the first chairman of Radio New Zealand when it was made into an SOE.

Later in his career he was managing partner, chairman of partners, executive director, and chief executive, respectively of several different law firm businesses across Australasia.

This life of business experience has culminated in a desire to see growth and better management within the business community generally. He tries to help owners of these businesses thrive and understand how they can improve.

Copyright Information ©

Richard Rowley 2023

The right of Richard Rowley to be identified as author of this work has been asserted by the author in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988.

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior permission of the publishers.

Any person who commits any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages.

A CIP catalogue record for this title is available from the British Library.

ISBN 9781398469914 (Paperback)

ISBN 9781398469921 (ePub e-book)

www.austinmacauley.com

First Published 2023

Austin Macauley Publishers Ltd ®

1 Canada Square

Canary Wharf

London

E14 5AA

Acknowledgement

I record my thanks to Geoff Balme, accountant in Whitianga, whose support has been very timely.

To many clients, staff and business owners who have allowed me to participate in their lives in business. I realise my learnings have all been improved with your sharing. Thank you.

Chapter One

Good Enterprises Need a Sound Foundation.

The foundations of a house are critical before you can start building. They need to be strong enough to withstand external forces and of a size that will house the family you plan on having.

Similarly in your business. The investment needed to set up the right structure for operating your business must be determined. It may change as the business grows but it needs to be a first step. Will you trade as a partnership, a company, a trust or as an individual sole trader? Seek professional advice and understand the risks and benefits before you choose. If you are already trading but not sure if you are on the right course, seek advice. It doesn’t matter that you are already trading as an individual, you can change.

Some travellers met an old farmer in Scotland as they were driving through the countryside. They were lost. They asked him the best way to get to Edinburgh. If I were you, I wouldn’t be starting here, was his response. But for most of us, we have to start from where we are now!

Given that you may already be in premises and may have a lease, you have to start there. However, if you are able to determine what you need and start with that plan, it is important to check out all the criteria needed. It won’t be perfect, but it needs to be fit for purpose!

Your Premises:

How much space do you need and where? How many owners are there? Are they all working in the business? How many employees are there and how many will you hope to have over the next five years? What is the term of the lease?

What equipment will you need and what environment will you want to work in? Will you store food or chemicals? Will your staff be climate comfortable?

Where is the best location for your all stakeholders? Can you place your work environment to meet your customer’s needs (accessibility, car parking, transport, couriers,) as well as in relation to cost effective necessary services like water and energy, and perhaps just as importantly, will there be employees readily available at that location?

Location and the suitability of premises are critical.

What Is Your Fundamental Business Service:

Research:

Do you rely on bulk turnover of goods with multiple transactions at a lower margin, or will you focus on lower quantity but top quality and therefore top price? What is the competition and how large is the market? Have you done the research? Are you prepared to move your family to a new location? Can you compete? Will you compete on price, service, and/or quality?

Are you specialised? Do you try to sell almost everything, or do you focus on one area that is core to your business? Jumping from one idea to another can be costly. Have you trained for some years and worked for other businesses before setting up on your own? Do you have a customer/client base already? Can they afford your services? How long will it take to achieve a breakeven budget?

The Japanese car manufacturers determined how much a family would pay for a car first and then they designed and built the car to meet that market. The English meanwhile just kept making their cars more expensive because it was costing more to manufacture and deliver them. Many of them ran out of a customer base that could afford their cars.

I know a small manufacturing business that uses state of the art pumps and assembly materials so they can guarantee their product. This comes at a premium price that the market currently affords. However, the market might change and prove the need for them to change with it. Can they deliver the equipment at a price their market will pay? That is a challenge they must continually manage.

If you are a professional services firm, you might be general and undertake initial consultations but then have to refer the more complex issues to specialists. That model works so long as you stick to the promise to refer the work when