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Setting goals for you and your business in 2024

The new year is a new beginning. If you are a business owner, this is often the time of year when you reflect on where you are at and think about your business goals for the year ahead.Setting goals is an essential part of personal and professional growth. These could be lofty goals, or even setting out a plan to achieve some more mundane (but equally important) projects. Whether that is getting paid faster, reassessing expenses or bigger things like automation of processes and new markets. You ...

Good practice for worker engagement, participation and representation

Worker participation is essential to keep workplaces healthy and safe. The best health and safety outcomes are achieved when a PCBU and its workers work together.All PCBUs must have worker engagement and participation practices, regardless of their size, level of risk or the type of work they carry out.PCBUs must engage with workers on health and safety matters that will – or are likely to – affect them and provide reasonable opportunities for workers to participate effectively in improving ...

The repeal of Fair Pay Agreements legislation

The Fair Pay Agreements (FPA) Act has been repealed with effect from 20 December 2023. Your rights and obligations under other employment legislation still apply.There are existing ways for employees, and unions representing their members, to bargain with employers for terms and conditions. These include:If a union represents employees in a workplace, a collective agreement can be negotiated.Employees, employers and unions must deal with each other at all times in good faith.A collective agreeme...

Law change round-up

90-day trial periodsWhen: From 23 December 2023What: All employers in New Zealand, no matter their size, are now able to use 90-day trial periods. Previously, they only applied to employers with fewer than 20 employees. The trial periods are now available to all employers.Why: Provides employers with greater confidence when hiring new employees.What you need to do: A trial period must be agreed to by the employer and the employee in writing, and in good faith, before the empl...

Mentally Healthy Work

New Zealand’s awareness and desire to address mental health challenges is increasing. WorkSafe will support businesses and organisations to address and support mental health in the workplace.This includes what can be done to support and maintain good mental health as well as how to avoid work which is harmful to mental health.Mental health is an important part of the working environment, and organisations have a responsibility under the Health and Safety at Work Act 2015 to ensure they are pro...

Employees working shifts or on call

Public holidays for employees working shifts or on call.It can be difficult to work out public holiday entitlements for employees who work shifts or are on call.Employees working shiftsEmployees who work shifts and:take a public holiday as a day off work, get no less than their relevant daily pay (or average daily pay if applicable) for their normal rostered shiftwork on the public holiday get:the greater of time and a half or relevant daily pay including penal rates in their employment agreemen...

Working overtime over the summer?

An employee’s hours of work must be agreed to by the employer and employee in a written employment agreement.Hours of work in the employment agreement may include:the number of hoursthe start and finish times, orthe days of the week the employee will work.Maximum number of hoursEmployment agreements must fix the maximum number of hours to be worked by the employee at no more than 40 per week (not including overtime) unless the employer and employee agree otherwise.If the maximum number of hour...

Hiring summer staff: Tips for employers

Over summer you may be expanding your workforce, whether it be with pickers and packers to help you on your orchard, or workers for your café or restaurant.You may be hiring part-time or casual workers and people from overseas. Before you do, it’s a good time to understand the different types of employees and your legal obligations.Understand the difference between casual, fixed-term and part-time employees‘Casual’ workers and fixed-term employees are both different to part-time workers, ...

Our guide to business credit scores

Do you know what your business credit score is, and how it can impact your finances?Your business credit score is a numerical representation of the company's creditworthiness. In other words, how financially reliable the big credit agencies believe your company to be.In essence your credit score is a measure of your risk to lenders. It's calculated based on your company’s credit history, payment patterns, outstanding debts and other financial data. A higher business credit score indicates lowe...

Your action plan for market readiness

If you plan to sell your business, give yourself a reasonable timeframe to bring your business into full market readiness. Set targets to improve performance and minimise risk.Financial: go beyond asking do the numbers add up. Where do revenues, costs and profit need to be to present the best buyer opportunity?Strategic: potential buyers look for a compelling business model, sound management systems, streamlined processes.Human: be upfront with your team. Work through potential HR issues before ...

Plain English guide to profit and loss

Here's our Plain English guide to profit and loss and what this report reveals about your finances.What is profit and loss?Your profit and loss statement is commonly called your ‘P&L’. It’s also sometimes referred to as your income statement or statement of earnings.Your P&L is a breakdown of your company’s revenue (money coming into the company as sales and other income) and your expenditure (direct costs, overheads, expenses and other costs).As a business, you obviously want to...

A business budget will help with your financial decision making

Budgeting is about estimating your revenues, projecting your expenses and detailing the allocation of funds, so you stick to (and don’t overrun) your agreed budget ceiling.How does budgeting affect your business?Having a clear, agreed budget gives you a structured framework for your financial decision-making. It’s a practical way to control your costs, monitor performance and adapt your strategic and financial decisions to meet changing economic conditions.Using budgeting helps your business...

How to handle annual close-downs

Many New Zealand businesses temporarily close down at some point during the year, commonly over the Christmas-New Year period. With a bit of preparation and know-how, employers can handle the annual close-down seamlessly and lawfully.Here are some key considerations if you are planning to shut the business for a short time:Decide if there will be a close-down - NZ employment law allows employers to implement one close-down each year.Set the dates - close-downs usually happen over summer, but you...

Paying your employees for leave

Working out what you need to pay employees when they’re taking leave can be complicated — but with the right systems and processes in place, it doesn’t have to be difficult.Paid leave — your employees’ entitlementsAll employees are entitled to paid days off for:annual leavepublic holidayssick leavefamily violence leavebereavement leaveparental leavealternative holidays.Holidays and leave entitlementsPayment for annual leaveAnnual leave is calculated differently to all other types of le...

Test your knowledge: Claiming expenses

Expenses are the costs you incur in the day-to-day running of your business. At tax time, your total profit (the amount you need to pay tax on) is your taxable income minus the expenses you can claim — so the more you can claim, the less tax you have to pay.But what can you claim?Test your knowledge ...

Making the most of your NZBN as a small business

NZBN is where you take control of your business information. Your NZBN is linked to the primary business data that businesses are most often asked to share with other businesses and government agencies they work with.Business Insights - Benefits of updating your NZBNKeep your core business information up-to-dateYour core business information, or primary business data, is a valuable business asset, and it’s important you keep it up-to-date. This ensures that other businesses you deal with ...

Legislation Updates

WorkSafe has recently refined its guidelines on worker engagement, participation, and representation. This is in tune with the legislative changes made earlier this year.The changes include:If a worker asks for a Health and Safety Representative, the business must initiate an election. Previously, smaller businesses in sectors that were not prescribed high-risk could decline these requests.If a Health and Safety Representative, or five or more workers, ask for a Health and Safety Committee, the ...

Boost your Trade Business's online presence with Google

Google Business profiles can help potential customers find your business on Google Maps, drive leads, and showcase your services. In an article from Tradify, they provide step-by-step guidance for trade businesses on setting up a Business Profile, optimising it with smart tips, and harnessing reviews to build credibility.From improving your business's discoverability to establishing trust and charging what you're worth, Google Business has the potential to transform your online presence.Ready to...

What to look out for when buying a business

Buying an established business is a great way to enter into the business world, or to expand your existing business empire. But purchasing a company isn’t something to enter into lightly.Becoming the prospective owner of a new business means doing your homework, researching the business you plan to acquire and working closely with a team of advisers.Here are five key questions to ask yourself, before entering into a deal.Why are they selling the business?It’s vital that you know WHY the curr...

Preparing your business for a sale

Selling your business is a big move for any owner. You’ve built this company up, scaled it and put years of hard work into making the business a success story. So, when the time comes to sell, you’ll want to know that you’re getting the best price, and the best future for your legacy.We’ve outlined five ways to maximise the value of your business, with practical steps for making your company the most attractive prospect on the market.5 steps to prepare you for a saleThe first thing to un...

Writing a business plan? Read our guide

Your business plan is the sat-nav that keeps the company moving in the right direction.Having that guidance can be a massive benefit to your success as a business. But what elements should you include, and what are the main considerations to think about?A detailed business plan will generally includeA clear direction for the business – a well-crafted business plan gives you a defined path to follow, outlining the company’s purpose, goals and strategies. This helps everyone understand th...

How to set the right price

Use pricing strategy to give everyone good valueA pricing strategy is a plan you use to set prices for your products or services so you, your customers, and your suppliers get the best value.Pricing is easier to change than other parts of your approach to marketing. But it’s important to get it right. You’ll need to:research your customers and what they’re willing to payresearch your competitorsunderstand the value you offer to suppliers and customers.Your pricing strategy needs to help yo...

Markup vs Margin: Understanding Profit Metrics for Success

One of the worst mistakes you can make with your business is not understanding your cash flow. What are your inventory and labour costs? How much is your gross and net revenue? Basically, where is your money going? Two key metrics for determining your business's health are markup and margin. These are used to answer those questions and determine how much money you're spending versus what you're bringing in.If you're confused about the difference between markup vs. margin. You're not alone. In th...

Should you buy a building for your business?

Tired of paying rent for your commercial premises and considering buying a premises for your business?Owning a building works best if your business is well-established, you have money to invest, and you’re taking a long-term approach – it can take many years for this decision to pay for itself.The advantages of owning a commercial propertyYou no longer need to worry about dealing with a landlord. You’re the landlord now, so your lease won’t end and you get to make all the decisions about...

How much should you pay yourself?

Being the boss means you get to make all the big decisions about your business – including how much to pay yourself in wages, salary or drawings.As the owner, you might need to underpay yourself in the early stages of building your business, so you can reinvest the profits. But your time is valuable – and you need enough money to pay the bills. So how can you find the right level of pay? It has to be enough to keep the mortgage paid, while also building a thriving business.If you’re trying...