A succession plan is the process where assets, knowledge and skills are transferred to the next generation. Succession planning is important for both your business’ and family’s future but isn’t often thought about until retirement.

We love celebrating our clients success stories, and were delighted to read about two of our clients, Miraka, and Central Transport Ltd (CTL) working in partnership with one another.

Workplace burnout is becoming the new norm for many businesses. Workloads are high, budgets are tight, technology keeps us busy 24/7 and finding balance is challenging.

Incorporated societies are the backbone of community-driven initiatives across New Zealand, from local sports clubs to advocacy groups and cultural organisations. Recently, these societies have faced a series of significant updates to the regulations that govern their operation. The Incorporated Societies Act 2022 (the 2022 Act) and Incorporated Societies Regulations 2023 (the Regulations) came into force on 5 October 2023. Together, these put in place a modern legal, governance and accountability framework for incorporated societies and those who run them. In this blog we take a look at the key changes, and how they might impact you. If you have any questions or need advice, please feel free to contact your BFA advisor. 

It would be prudent as a business owner, to protect your company and the reputation you have with your clients and suppliers… in which case you need to bother. 

Living in rural and remote areas often means people can feel socially isolated. This can contribute to stress, anxiety and depression which can have a detrimental effect on people's mental health and wellbeing. Those in rural areas seem to be less likely to seek help in comparison to their urban counterparts.

Going into a business where you have no control over what you earn has taught me that farmers should consider utilising hedging tools to minimise financial risk. While milk production is predictable (weather permitted), we have no control over the milk price or major farm costs such as feed and fertiliser. However, farmers do have a range of financial tools available to help you deal with changing market prices and costs. By locking in prices through financial tools like futures contracts, you can manage your farm's risks better. This approach can make your financial planning more effective and could even help you get loans easier, because banks like businesses that have steady money coming in. Income - Milk price in New Zealand I often see clients reluctant to fix milk price as it’s a newer concept. If you change your mindset to ‘we fix interest rates on loans and have been doing that for years’, then you will realise that we are dealing with the same concept when it comes to fixing milk price.  By setting a fixed milk price, you can shield yourself from the risk of unexpected price drops and stabilise your income. You accomplish this through futures contracts or options through Jarden (which requires capital to front up with to meet the calls), or if you are a Fonterra supplier, by using their Fixed Milk Price options. If you are a Fonterra supplier, you can lock in up to 50% of your estimated milk production using Fonterra’s fixed milk price options. When deciding whether to lock in your milk price you need to know what your break-even price (BEMP) is, and you need to create a hedging policy for your business. This enables you to remove the emotion and the ‘gaming’ aspect from this decision. You can calculate previous seasons BEMP by looking at your farm accounts or a benchmarking report such as DairyBase. Use your budget to calculate a forecast BEMP. Interest rate management: Managing your interest rates is important. You can use different financial tools to control how much you pay for loans. For example, you can fix your loan's interest rate to avoid paying more if rates go up, which can save you money on your farm's expenses and help you keep more profit. Also, you have access to tools like overdrafts and credit lines that can help you with cash when you need it for your day-to-day operations. Stock feed management: Managing your stock feed is key to controlling costs. You can save money by contracting your feed for the season or even partially contracting your feed. This makes one of your biggest expenses in farming—feed costs—more stable. It also helps you plan your budget and finances better, keeping feed costs predictable and under control all year round. If you fix your milk price, interest rates and stock feed, I’m not saying you’re going to be more profitable, as markets do change and it may not have been the best decision. However, when there is a downturn and you have locked prices on the key income and expense items, you not only feel good about your decisions, but your mind is at ease knowing you have some certainty of your profitability. Hedging mechanisms help you deal with the ups and downs of prices and costs, making your business stronger, and more likely to last. To make the most of these tools, you need to really understand the market and the different financial products you can choose from. We have the experts to help you with this – give us a call to discuss how we can help you.

If you own and rent out (on a short-term basis) a room in your home, the bach or an investment property, you need to understand the changes coming on 1 April 2024. If you have booked a property for a work or family trip, anytime after 1 April 2024, you should also continue reading, as there are possibly implications for you too. In 2023 legislation was passed to make all “Electronic Marketplace” transactions subject to GST in New Zealand, even if the person delivering the service, e.g. the home owner, is not GST registered. National campaigned on repealing this law if they got into power, but confirmed in December 2023 that they will now leave the legislation in place. This has meant that platforms like Airbnb, Booking.com, Expedia, Vrbo etc. are all having to frantically update their software to allow for the collection and payment of GST to Inland Revenue (IRD). Some of the team at BFA have properties listed on Airbnb, Vrbo and Booking.com and we have a vested interest in understanding what’s going on, and we admit, it’s pretty disappointing to be this close to 1 April 2024 and not have all the answers! This new legislation covers more than just properties, it also covers Uber and Uber Eats, for example. We are focusing on the property implications. So, what does the law say? That the platform is required to charge GST on all transactions and pay this GST over to IRD where the owner of the property:  is GST registered - to pay 15% to IRD IS NOT GST registered - to pay 6.5% of the GST to IRD and pay the remaining 8.5% to the property owner Where the property owner is GST registered, they now have to report their income as Zero rated on their GST return. This ensures the income is declared and you do not pay the GST twice. This means that you claim your GST on expenses, and will likely receive refunds each GST return. If you are not registered for GST there is nothing for you to do. You only qualify for an exemption if: your income from these activities is over $500,000 per year, or you had more than 2,000 nights booked in a year We have been made aware of the following: Expedia They have NOT been able to update their software and will be removing ALL NZ listed properties from 1 April 2024, unless you qualify for the exemption above. If you have a property listed on Expedia, they possibly may remove it. There is no clear guidance as to what happens if you have bookings for the future but we suggest you contact your guests. Be careful how you do this though, as it’s against Expedia’s rule to make contact with guests outside of their system. If you are travelling and made a booking on Expedia, you may have an issue. contact your host to work out what to do. Vrbo (ex Bookabach) While owned by Expedia, they have upgraded their software and will be able to cope with the new GST. But be aware, from 1 April they will automatically add 15% GST to all bookings. So, this will increase your nightly rate by 15% and make your property more expensive. You will have to manually update your rates should you wish to. Airbnb They too have decided they will add 15% GST to every booking from 1 April 2024. Their system says they are not yet set up to deal with NZ GST. Booking.com They have not yet provided guidance on what they are planning to do. Will they be like Expedia and just stop supporting NZ properties or will they be like Airbnb and just add 15% to all bookings? So, a warning, if you are not GST registered, and you have not told your platform provider, it appears they will default to adding 15% GST to your property and pay this 15% to IRD. How you get your 8.5% back remains a mystery. If you are planning on booking accommodation, be wary of using Expedia or Booking.com, potentially a booking after 1 April 2024 could cost you 15% more!. In any event landlords and holiday makers should revert to their booking platform for the latest information and policies. If you are wanting to know more please reach out to your Client Advisor.

Starting a trade business is an exciting adventure, but also a challenging one. You have to plan, market, hire, and more. And you have to do it all while climbing a steep mountain of growth. But don't worry, you can reach the top with some smart strategies and hard work. Whether you're new to the game or an old pro looking for a fresh update, here are some tips to help your trade business thrive. Choose your next team member Apprentices Hiring an apprentice is a big milestone in any company’s growth plans. But it’s not always as easy as it sounds – finding the perfect match for your business is hard enough without the trade labour shortage that’s being felt worldwide. Subcontractors Taking on new staff doesn’t have to be a permanent commitment. Hiring a subcontractor can help propel your business forward without the financial and administrative burden of long-term employment. Full-time employees Feel like you need an extra pair of hands to help tackle your workload? Employing full-time staff is a sure sign that your business is growing. If all goes to plan, having one or more full-time staff members should take a lot off your plate so you can focus on winning work and maximising profit. Review your financial situation Income and expenses Running a business requires a lot of financial management. You need to pay your staff, buy equipment, and cover operational costs. If you are having trouble with your finances, you should review your income and expenses. You can also hire an accountant to help you with this. Pricing strategy Setting the right price for your services is important for your growth. A good pricing strategy ensures that you are not losing money by charging too little, and you are not losing customers by charging too much. Streamline your administration tasks Save time and money on quoting and invoicing As a trade business owner, you don't want to waste 18 hours a week on paperwork. You want to focus on growing your business and delivering quality work. That's why you need a software solution that can help you create and send quotes and invoices quickly and easily. For example, Tradify. Manage your jobs efficiently More jobs mean more growth for your business. But, if you lose track of your jobs and miss deadlines, you'll lose customers and reputation. That's why you need a software solution that can help you monitor and manage all your jobs, giving you a clear overview of what's done, what's due, and what's next. Update your website Your website is often the first contact point for potential clients, so make sure it showcases your business in a positive way. Follow the basic principles of modern web design – keep it clean and professional, with clear information about your company and the services you provide. Photography is important. You don’t have to hire a professional photographer, just make sure your photos are good quality, in focus and showcasing the best of your business. Register with an online directory A strong online presence is vital for your trade business. You don't want to lose customers to your competitors because they can't find you on the web. There are lots of directories available specifically for tradies. Use free online tools You can market your trade business without breaking the bank. There are many free online tools to help you reach more customers. For example, MailChimp is a great tool to grow your business by sending newsletters, surveys, and special offers to your email list. You can use their basic plan for free, or upgrade to their premium service if you need more features. Another must-have tool is Google My Business. It helps you show up on Google Search and Google Maps, so people can find you easily. Use customer reviews According to Forbes, 84% of people trust online reviews as much as a personal recommendation, and 74% say that positive reviews make them more likely to trust a local business. Social media Social media is a powerful tool for digital marketing that you can use to grow your business and connect with your customers. Many tradespeople are already on social media, sharing their work, their stories and their tips. Here are some of the best practices for making the most of your social media presence: Be authentic . People want to see the real you, not a sales pitch. Show your personality, your passion and your values. Don't be afraid to be yourself and have some fun. Be responsive . When someone messages you on social media, they expect a quick reply. If you take too long, they might lose interest or contact someone else. Try to answer as soon as possible and show them that you care about their needs. Show your work . One of the best ways to attract new clients is to show them what you can do. Post photos and videos of your projects, before and after shots, testimonials and reviews. Let your work speak for itself and impress them with your skills. Be the expert . You have a lot of knowledge and experience in your trade, so why not share it with your audience? Post relevant articles, news, tips and tricks that can help them with their problems or questions. This will establish you as an authority in your field and build trust with your potential customers. Link to other platforms . Social media is fast-paced and dynamic, so you might not have time to update all your profiles every day. You can reuse content across different platforms and link them to your website where they can find more information about you and your services. Other marketing options Not everyone is online or on social media, so you need to reach out to them in other ways. Offline marketing can help you attract more customers and grow your business. Here are some tips: Advertise in print media. Newspapers and newsletters are still popular among some customers, especially the older ones or those who enjoy reading on weekends. They might notice your ad and contact you. If you have company vehicles , use them to display your logo and contact information. That way, people will see your business wherever you drive and may remember you when they need your services. Wearing uniforms or t-shirts with your business name and logo makes your staff look professional and united. It also helps people identify your business and trust you more. Word of mouth is a powerful marketing tool. You never know who might need your services or who might refer you to someone else. So, chat with your neighbours, friends, colleagues, and anyone else you meet. You can also join local business networks and make more connections. Review what you do and how you do it Things can change drastically over a few months. You can easily get swept into the motion of running a business and be doing things the same way 10 years on – and your business could be suffering because of it. It’s important to take an occasional step back to review how things are going, re-evaluate and refresh areas that need it. Review your finances, look at your cash flow, ask your staff for feedback on what is working well, not working well, and how they are feeling. To keep your business healthy, you need to step back occasionally and look at your business from the outside – and be prepared to make changes, even drastic ones, if that is what is needed. Work hard and see your business flourish You love your trade business, but you want to make it even better. To do that, you need to invest time, energy and persistence – and you need to have a plan for growth. The key areas to focus on are your marketing, finances and staff – these are the foundations of your success. If you put in the effort, your business will reach new levels of excellence.