HAMILTON

IRD Contract
Still Not Signed
By Sandy Turner, Hamilton Central Business Association
We have confirmation from the Commissioner of IRD Naomi Ferguson that no
contract has been signed for the new IRD premises in Hamilton. The current position
is IRD have decided on a preferred option and provider and have communicated
their decision to the parties involved. IRD will now enter into negotiations with
the preferred provider as the next stage of the procurement process. IRD expect to
complete commercial negotiations in June 2016.
We are extremely disappointed with the planned loss of 500 IRD workers from the
CBD after media reports on 15th April that the IRD are considering moving within 2
years to an alternative site located in Te Rapa. We are hopeful that the work we have
done to date is still under consideration and would like to update you on the situation.
We firstly held a public rally in Garden Place on the 23rd October 2015. We had 3
local MPs and the Mayor speak at the rally and over 483 people signed our petition
which was tabled in parliament on the 12th November.
On the 3rd November 2015 we sent our concerns to Hon Todd McClay as we believed
he had the final sign off as Minister of Revenue, however he replied that the decision
was an operational matter (which we dispute).
Following on from the petition we were then asked to submit a formal written
submission to Jo Elworthy Clerk of the Committee, Finance and Expenditure. The
submission was sent in February 2016.
We have confirmation that they received our submission and have had one further
update on the 15th April stating : Members of the committee are still considering the
petition, and submission so at this stage there is nothing further I can pass on to you
about it.
We are hopeful that while they are still considering the submission there may still be
the opportunity to persuade them to reconsider. We will continue to keep you updated
and assure you we have not given up yet.
For more details on the Hamilton Central Business Association: www.hamiltoncentral.
co.nz
By Colin Tasker, Principal - Audit
& Assurance, Business Advisory,
Crowe Horwath (NZ) Limited
Planning Ahead
– It’s Good For You And Your Business
With the 2016 financial year completed and the 2017 year now
underway, it is important that we turn our attention to planning
ahead, if we haven’t done so already.
For the medium to large businesses - those with 20 or more
employees - planning ahead would be considered ‘business as
usual’. However, for smaller businesses I am finding that it is
generally only the successful ones invest time in quality planning
and usually 2-3 months before balance date. Now is the time for
small businesses to understand the importance and discipline of
good planning.
Planning involves more than just preparing a 12 month forecast budget which is
often initiated by the banks. It spreads much wider than that covering different areas
of your business such as: marketing, human capital, research and development,
innovation (doing things better) and capital investment or divestment of less
profitable areas. It also considers risk, regulation, systems and processes. Planning
is essentially taking time to think about your business and the shape it is in. It is a
disciplined process of elevating yourself away from all the detail and focusing on the
elements that will both effect and drive the business over the next 12 months. Beyond
this, there are aspects of long-term planning which may encompass considering lease
terms, retirement, capital value improvements in preparation for a sale, mergers
and acquisitions with other similar or complementary businesses, succession and
dissolution.
To be effective with planning, you need to create the right environment. This means
looking closely at design and implementation processes, accountabilities and
documentation – whether that’s through attending a regular discussion group of
business peers or working with a board, executive team, business coach, mentor or
advisor. The common response I get from clients is: “This is a waste of time – my
priority is to look after clients’ needs first and foremost.” Certainly, this is important
but so too is planning which is often viewed as being an academic exercise. As a
result, the typical small business model evolves by default over time. What is required
is for business owners to step up and re-shape it.
SO, WHAT PRACTICAL STEPS
CAN BE APPLIED TO A GOOD
PLANNING PROCESS?
Certainly, there have been a lot of books written on the subject.
However, some of the things I see as being important are:
-Get into a good discussion group with your peers and a
professional advisor or mentor. A discussion group of similar
sized non-competing businesses that meet on a regular basis can
definitely help this process.
-Review your business over the past 12 months and be prepared
to discuss in the group or with your mentor the spectrum of
challenges and successes.
-Set action plans to implement changes. These may be only one or two minor changes
at little or no cost through to wide-sweeping changes that have a material fiscal
impact.
-Feedback to the group changes that you are looking to make and be called to
account for them.
-Take on a good business mentor or coach and be prepared to consider and act on
their advice. They can provide you with fresh thinking.
-When planning ahead, certainly consider the long-term (next 5 years) but focus more
on the next 12 months. Limiting your management decisions to a shorter timeframe
makes things more manageable and provides greater focus and opportunities for
implementation.
-I have assumed that your financial information systems are up-to-date and readily
reportable. Certainly, on-line cashbooks such as MYOB and Xero can provide this.
At Crowe Horwath’s Hamilton office, we are interested in getting small-sized
discussion groups underway involving 4-6 businesses. We envisage that the group
would meet every second month to discuss matters like those outlined above and
hear from guest speakers. Our Tauranga office has been running several groups for the
past two years and business feedback has been very positive. I welcome your calls on
027 419 9646 or email me at colin.tasker@crowehorwath.co.nz with your expression
of interest.
ISSUE 1 : BIZ HAMILTON : 17