8 Considerations Before Starting a Business in NZ 2023

Starting a business in New Zealand can be an exciting and challenging journey.

It’s an opportunity to turn your entrepreneurial vision into a reality and make a positive impact in your community, your country and possibly even the world.

Whether you’re starting a small entrepreneur, home-based business or a larger venture, it’s important to understand the key considerations and steps involved in launching and running a successful business.

To give you some direction, we’ve outlined 8 things to consider before starting a business in NZ in 2023.

Take these on board and you’ll be well on your way running a profitable and sustainable enterprise.

1. Decide upon what business will you run

Determining the type of business you want to launch is an important step in the start-up process.

To work out what type of business will best suit your requirements and goals, you need to consider various factors such as your skills, interests, experience, and financial resources.

You can start by researching different business models, such as service-based, product-based, e-commerce, and franchise businesses. It is also worth evaluating the pros and cons of each model and identifying which one aligns with your strengths and interests. 

During this process, you should also consider your personal values and goals, such as work-life balance, location independence, and social impact.

Once you have an idea of what you want to sell, market research can help you identify the demand for your product or service and determine if there is a gap in the market that your business can fill. 

If you do this, you should derive a clear understanding of your skills, interests, values, and market demand. This will help you make an informed decision on the type of business that is right for you.

2. Devise a solid a business plan 

A business plan is a critical tool for any business that wants to succeed in today’s competitive marketplace.

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The purpose of a business plan is to outline the company’s strategy and help align everyone on the same page.

It does this by defining the company’s goals and objectives, identifying target markets and competitors, and outlining the steps required to achieve success. 

A well-structured business plan serves as a roadmap for the company and serves as a reference point for decision-making. It can also be used to secure funding from investors or lenders.

It can also help the company stay on track, measure progress, and make necessary adjustments to reach its goals. 

As excited as you might be to launch your new venture, you should take the time to draw up a detailed and well thought out business plan.

If you are struggling to do this there are several online business plan templates you can use. Alternatively consider hiring an experienced professional to help you.

 3. Officially register your business

Once you have completed your business plan and are ready to launch you should inform the New Zealand government. 

To register a business, you will first need to choose a business name and check its availability through the Companies Register.

Once you have settled on the name you will need to then decide on the type of business structure you want to adopt. Typically, this might be a sole trader, partnership, or limited liability company. Having done that, you can then register the business either online or by mail with the Companies Office.

Once registered, you should then obtain an Inland Revenue Department number and register for Goods and Services Tax if you anticipate your turnover to be over $60,000.

You will also need to open a business bank account under the company name and obtain any necessary licences or permits, such as building or food safety permits. You might want to register a domain name for your website, if you intend to have one.

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To ensure compliance and help you meet all legal requirements, it is worth seeking professional advice from a lawyer or accountant.

4. Secure finance 

Unless you have a significant amount of personal savings you are going to have to secure finance if you want to get your business off the ground.

There are several ways to fund a business in New Zealand. These include obtaining loans and lines of credit from financial institutions, crowdfunding, receiving grants and subsidies from the government.

You could also try to secure investment from angel investors and venture capital firms or form strategic partnerships and joint ventures with other businesses or entrepreneurs. 

To choose the best funding solution for your business you should consider your needs, growth prospects, and overall financial situation. It is also advisable to seek the advice of a financial advisor or accountant to fully understand the pros and cons of each available funding option.

5. Get the word out

With funding secured you can start trading. More importantly you can start to promote your product or services to let customers know your business is now live.

This can be done through a combination of traditional and digital marketing strategies including launching a website and social channels, advertising, networking, content marketing, referral marketing and public relations.

It’s important to find a marketing mix that works best for your business and to track your results to ensure that your efforts are paying off.

If you are new to business, you should consider working with a marketing professional to develop and implement a comprehensive marketing strategy for your business.

6. Accept payments

If you are going to sell a product or offer a service, you will need to accept payments for it.

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Prior to launching you will need to determine the best methods for you. This could include one, or a mix of cash, EFT, cheque or electronic payments.

For sheer convenience and to help with their cash flow, many businesses choose to work with an EFTPOS machine provider like Smartpay.

7. Run a soft opening

A soft opening is a preview or trial launch of a new business, product, or service before the official grand opening. 

It is often a very useful thing to do if you run a retail business because it enables you to test out your operation and identify any teething issues. It also allows you to get constructive feedback from customers, train your staff in a less pressured situation and even helps you to build a buzz.

In business it is always worth learning to walk before you can run, and a soft launch can help you do just that.

8. Get your work and life balance right

Running your own business is very hard work and often involves you working early mornings or late into the night, especially during the start-up stage.

Unfortunately, this is not sustainable, nor fun. So, it is important to maintain a good work/life balance.

Granted it can be challenging when your focus is on building a successful business, but there are several things you can do to help you achieve it.

This includes prioritising your time, setting boundaries, taking regular breaks and being very organised.

It is also crucial to build a good support network and practise self-care. So, make sure you go out with your friends, go for those walks on the beach and most importantly spend some quality time with your partner, kids, loved ones and friends.

 

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