Doing business in Northland against a backdrop of growth

09/08/2018

Doing business in Northland against a backdrop of growth. Part two of Stephen Sudbury article on intellectual property puts things into a local context.

As I put pen to paper on part two of identifying, realising and valuing the biggest asset not on your balance sheet, I am mindful of recent good news for the region which will drive growth, profitability and jobs:

  • 15,000km of fibre cable went live at Mangawhai helping Northland and New Zealand bridge the gap to world markets
  • Cruise ships are scheduled to dock at Marsden Point in 2021 in line with the opening of the Hundertwasser Art Centre and Wairau Maori Art Gallery in Whangarei
  • Developers announced a $200 million investment in a hotel and conference centre in Whangarei
  • A number of new factories are being built and clients are investing in production technology and people
  • Northland receiving long overdue regional growth funding to enhance the region eg. Kerikeri Airport and Hundertwasser

While there will be the odd grey cloud for businesses around wage pressure, fuel prices, international freight increases and skill shortages, the overall outlook looks promising for the Northland region.

Given doing business in Northland is becoming more attractive, the natural progression should be profitability for well managed businesses. So if being in business is less a labour of love and more an ‘own it to sell it’ scenario, how do you maximise the value of the hidden asset in the businesses intellectual property?

Take this example. In a recent sale of a business the team at Sudburys:

  • – Identified 2 ½ years prior to sale who a potential buyer was
  • – Put sales strategies in place to maximise sales
  • – Documented the business processes from production to client contact and human resources
  • – Moved financial and sales reporting to the Cloud as well as all IP type agreements such as sole distribution agencies
  • – Removed the owners from day to day management and produced high level management reports. Keep in mind that purchasers often look to drive down the sale price based on the business revolving around the owner

The above strategies added nothing to the balance sheet of the business until sale where a substantial premium was paid by the identified buyer.

How ready is your business for sale should you choose to sell it? Want to know more about how to maximise the value of your biggest asset? Contact Stephen Sudbury now.

Keeping good books not only means you’re complying with the law, it’s also good for your business (and a good night’s sleep).
Sound bookkeeping gives you the platform for strong business decision making and financial planning.

Accurate bookkeeping has many benefits some of which are:

  • – It’s easier to see what’s going on in your business.
  • – Your business will be worth more if you want to sell it.
  • – It makes it easier to get a loan.
  • – It’s much easier to keep your tax records.

There are a few basic rules for effective record keeping:

  • – Keep all records for at least seven years
  • – Electronic records are OK, but please remember to back up your information on a regular basis
  • – Keep receipts for all transactions, even those under $50
  • – Keep copies of any records that might fade like EFTPOS receipts
  • – Staple small receipts to an A4 sheet to avoid losing them
  • – All records must be in English (unless you have approval from the IRD to use a different language)
  • – If you haven’t already opened bank accounts for your business and another account where you deposit enough money for your tax payments you should do so now

At Sudburys we can provide you with full bookkeeping services or assist with your internal bookkeeping setup.
Find out what you can expect from Sudburys.

It’s tax season. Our Client Managers will soon be very busy getting tax letters sent out to you to advise when payments are due and how much you need to pay.

28 August: Provisional tax instalments, student loan interim payments, GST returns and payments due.
28 September: GST returns and payments due
30 September: Student loan repayments due for overseas-based borrowers.
28 October: Provisional tax payments for ratio option customers and GST returns and payments due.
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