If you want to start a business, you need to do a lot more than just think about it. Your passion should fuel you to do everything you need to do to make sure your business is successful. Merely chasing profits isn’t going to cut it if you want to survive in the long run.
New Zealand is one such hotspot for aspiring entrepreneurs because of the ease of setting up and operating your small business in New Zealand. According to the Doing Business Report of the World Bank, you can start your small business in NZ in just half a day.
Financing is also an advantage with small businesses in NZ. 86% of the requests for debt financing and 76% of the requests for equity finance were approved, according to the same report. Small businesses also seem to have the highest share in real estate, property rental, and hiring. However, according to the same report, only 50% of small businesses in New Zealand are still operating after 10 years.
You can be the one to change that last statistic and it all begins by starting out right.
Think of your business idea
Any successful business needs to be based on an idea. What is your business offering? Does your product or service overcome a problem consumers currently face? The idea should come from a careful evaluation of market needs.
Develop a plan
You don’t have to have it all figured out as soon as you think of a business idea, but you need to have a business plan ready. What are you offering and why should people buy it? What is the target market for the product or service your business is offering? What is your goal and what will be your key performance indicators?
Check out your competition and the market environment so that you can develop a realistic business plan.
Select a business structure
You can choose to operate your business as a sole trader, a partnership, or a limited liability company. 70% of small businesses in New Zealand actually function as sole proprietorships. That may or may not be the best option for you. You need to decide which is the option most suited for your business after carefully assessing the pros and cons of each type of business structure. Remember, the guidelines will differ based on the business structure you choose so make sure you have a thorough understanding of what you’re getting yourself into before you decide on the business structure.
Choose a business and domain name
What would you like your business name to be? Spend some time thinking about this. Customers are going to know you by your business name. It’s going to become your business identity. You want it to be a name that customers can resonate with. Keep it simple and don’t try to copy your competition. You should also pick a name that’s scalable so that expanding your business in the future won’t create any problems.
Once you have decided on a name, check the New Zealand government tool ONECheck to see if the name is already in use. You’ll also get access to information about business names, trademark, domain names, and social media usernames here. Choosing a domain name extension like .co.nz will more easily appear in local searches compared to .com. It’s the better option for your small business in New Zealand, unless you plan to trade overseas later that is.
Register your business and domain name
Registration is easy and quick. Where you need to register will depend on the business structure you’ve chosen and what you need to register in the first place. The New Zealand Companies Office is where you need to register a company. If you plan to start a sole proprietorship or partnership, register your business with the New Zealand Business Number (NZBN).
You will be given a unique identifier that will include your phone number, email address, and trading name. Your domain name should be registered with authorized registrars.
Go through and understand legal regulations
There are certain legal regulations you need to be aware of when it comes to starting and operating your small business in NZ. These specifically relate to:
· Fair Trading Act
· Consumer Guarantees Act
· Health and safety
· Food preparation standards
· Privacy
You can read the regulations applicable to your industry at the New Zealand government’s Compliance Matters section.
Register your trademark
Before you can register your trademark, you need to apply for a search and preliminary advice report (SPA report) on the Intellectual Property Office (IPONZ) website. Do this after creating a RealMe log in for yourself.
You can register your trademark with the New Zealand Intellectual Property Office (IPONZ) after getting the SPA report. This is necessary to ensure protection of your business.
Secure your business
Besides registering your business and trademark, you need to invest in a good small business insurance policy to secure your business. The right insurance for small business will ensure smooth operations even in cases where contingencies arise.
Keep tax obligations in mind
You must also register your business for GST and comply with tax regulations as prescribed for your business structure and industry. You will find these on Inland Revenue.
Conclusion
Set up your small business in New Zealand with these steps and watch it grow to be a prosperous one. Make sure to protect that business with Small business insurance!