Newsletter - August 2024
Just a little over four months until we reach the end of the year and what a year it has been. The Olympics are over and New Zealand managed to pull off a spectacular showing, securing more gold medals than any other Olympic games in history. The Reserve Bank also dropped the official cash rate for the first time in over four years, to the surprise of at least 50 percent of all economists. Given the economic turbulence we have all been experiencing, the last eight months has felt a lot like the roller-coaster ride, you didn’t necessarily want to go on.
Meet the TH team in this Introduction Video.
However, with the daylight hours extending just that little bit extra each day, the promise of warmer weather on the horizon and the potential signs that inflation is easing and the Reserve Bank is relenting, there is cause for greater optimism. Whilst we aren’t off the roller-coaster just yet, it would seem that we have hopefully managed to get through that last, rather steep loop.
This month we have a variety of articles and news from the team, including details on how to be your own boss, and an update on our service offerings for clients, immigration updates from our specialist immigration team, as well as a plug for two very worthwhile charitable causes.
Be Your Own Boss
The following article was originally released on our website (as a shorter version) but due to its popularity, we thought we would add it to this month’s newsletter whilst also expanding on the key content.
Have you been dreaming of becoming your own boss?
Taking the leap from employee to business owner is an exciting venture, filled with the promise of autonomy, financial independence, and the opportunity to build something of your own. But with this transition comes a host of challenges and responsibilities that require careful consideration and planning. Whether you're contemplating starting your own business, acquiring an existing one, or expanding by purchasing a competitor, it's essential to approach this decision with a strategic mindset.
Top 5 Tips for Purchasing a Business in New Zealand
Be Your Own Boss
There are pros and cons to being your own boss but for many people, in the modern world, it has become a very solid choice.
1. Do Your Homework:
Before diving into business ownership, it's crucial to conduct thorough research. Begin by assessing your skills, interests, and financial capabilities—this will help you identify the type of business that suits you best. Beyond personal reflection, immerse yourself in understanding the business you’re considering, the industry it operates in, and the competitive landscape. Look for a business with a proven track record, robust customer base, and a market position that aligns with your long-term goals.
2. Seek Professional Help:
Buying a business involves navigating a complex web of legal, financial, and operational factors. From managing employee transitions and lease agreements to evaluating stock levels, the intricacies can be overwhelming. This is where professional advice becomes invaluable. Engage with a qualified lawyer and accountant who specialise in business transactions—they can help you identify potential risks and ensure the process goes smoothly. A business broker can also offer guidance during the search and negotiation phases, bringing their market knowledge and experience to the table.
3. Financials Are Key:
Understanding the financial health of the business is critical to making an informed decision. Scrutinise profitability, cash flow, and existing debt to get a clear picture of its current standing. Don’t overlook ongoing operational costs such as rent, utilities, wages, and inventory. This comprehensive financial analysis will provide insight into the true cost of running the business and its potential for future success.
4. Due Diligence Is Essential:
Never rely solely on the seller’s representations. Conducting thorough due diligence is non-negotiable. This means meticulously examining the business's financial records, legal documents, and its market position. Proper due diligence can help you uncover any hidden issues, such as pending legal disputes, undisclosed liabilities, or market challenges that could affect the business's value and future profitability.
5. Negotiate Effectively:
Negotiation is a critical skill when buying a business. Be prepared to discuss the purchase price and the terms of the sale in detail. Consider not only the current state of the business but also its future prospects when making your offer. An effective negotiation strategy includes securing the right settlement structure, ensuring lease agreements are favorable, and confirming that the existing staff are suitable for the roles they will continue to perform. The more thorough your preparation, the smoother the transition will be, allowing you to hit the ground running without any unwelcome surprises.
Get Expert Advice Today
If you're considering buying a business or need guidance on where to begin, our team of experts is here to help. Contact us today to ensure your journey into business ownership is a successful one.
Authored by Kate Chivers (Partner)
Online Payments - Update
In our recent customer survey we asked you (our clients) whether there were areas of our service that we could improve and for some of you (quite a few), one thing that stood out was the ability to settle payments online. Obviously with the vast majority of service providers offering an online payment solution we figured that we should follow suit.
However, we also appreciate that while paying for something online is quick and easy, it also has to be secure and so that is why we have spent a couple of months getting this process right.
Online Payments
We have made it simpler, easier and more secure for our clients to pay online, partnering with a trust NZ payment provider.
Earlier this month, we partnered with PayStation (a company operated by TradeMe) to set up an online payment solution for clients who would prefer to settle their account online and without having to hand over their credit card information.
Payments can be made via our website, and while Credit Card payments seem to be the most popular solution, we have also added the ability for clients to settle their accounts using a direct bank payment (using POLi).
The POLi system lets you use your own internet banking details as a way to settle your account, if you don’t have or would prefer not to use a Credit Card. Both systems are operated by secure, third-party services and your card or account details are never stored or held by us or the provider.
We understand that dealing with your lawyer can often happen during particularly stressful or challenging times and this new payment process is just one way of trying to make that process as smooth and as simple as possible. We are also investing in more efficient ways to secure information from our clients, access to better resources online and continuing to deliver the best service we can.
If you have any suggestions that you would like to send us, please email us directly (click here to email us).
Immigration Updates
Despite the fact that the Accredited Employer Work Visa (AEWV) scheme has been in place for a couple of years and there has been more media focus on this visa category than potentially any other in history, we are still continually surprised by how little it is understood by most employers and recruiters in this particular space.
The reality is that for many employers, the visa process is not a regular occurrence and is still shrouded in mystery and myth. Coupled with some pretty ad-hoc reporting on the process as well as some less than accurate timeframes being advertised by INZ, it is not hard to see how someone who doesn’t do this daily can easily misinterpret the process.
So maybe we can clear some of that up with the following tips and advice from our specialist Immigration team.
1. When you have a role on the Green List or a role that pays twice the median wage (or the annual salary equivalent) there is no need to advertise that role, before you submit the job check.
2. Job checks are taking longer, but again for Green List roles or those in the higher salary bracket, INZ affords priority to these requests and a well prepared job check shouldn't take more than a couple of weeks.
3. If you have a Green List role to fill and you find the right applicant, they can potentially apply for Residence, skipping out the Work Visa process entirely. Straight to Residence applications do not require a job check (just for the employer to be Accredited).
4. Straight to Residence applications are being allocated within a week (usually) and for the right client, who is document ready, approvals can be secured in five to six weeks.
5. Applicants for Work Visas or Straight to Residence are not "sponsored" and apart from the compliance requirements under Accreditation (which applies only to Work Visas), the relationship between employer and employee is no different to hiring a local candidate.
6. Costs are a factor, but for Straight to Residence, the application fees are usually worn by the applicant. For Work Visas, the costs for the job check are covered by the employer (they have to be) and applicants cover the Visa fees. However in the grand scheme of things, these are minor in terms of overall recruitment expense.
7. INZ might be chaotic, difficult to deal with and inconsistent, but they are not the troll under the bridge. A well prepared application supported by the right level of guidance (from an LIA) can be a relatively pain-free process for all concerned (expect maybe INZ).
8. Knowing what you don't know is really important. For many employers, the Visa process is either a one-off or very infrequent need, although can usually be a very crucial one (to get the right person). Trying to "fudge" your way through this, is going to cost you more, and take more time away from your core business. Approaching a good LIA (where Visas are part of their DNA) can be a far more cost-effective exercise.
Applicants & Employers
The Visa process can be just as confusing for employers as it is for applicants - thankfully we can assist with both.
Good employers often miss out on good candidates because of one, all, or a combination of the above issues and it doesn't have to be that way. Candidates are equally frustrated by the catch-22 of needing a job to get a Work Visa, but then being told they need the Work Visa to get the job.
When both parties understand the process, things tend to work a lot more smoothly. For employers, that involves understanding the restraints around the process, but also that it is not as complicated, onerous or as costly as it might first appear. If managed well a good migration recruitment program can supplement your workforce effectively and give you access to a far greater talent pool.
For applicants, it requires being “visa-ready” and able to apply when that offer comes along. After all, if employers are willing to engage in the process, it helps if you (as the applicant) are ready to do so as well.
Whether you are an employer trying to figure out how our visa system works (and can work for you) or you are an applicant battling ahead with the same process, trying to settle in New Zealand, our immigration team will be able to assist you.
Authored by Paul Janssen (Manager - Immigration)
Turner Hopkins in the Community
Our regular readers will be aware that we are proud supports of KidsCan and the amazing work that that they do to support New Zealand youth. For the last 19 years, KidsCan has been working to reduce child poverty with a range of very ambitious and worthy projects throughout the country.
We know that times are tough for a lot of people, but if you find yourself in a situation where you have something extra to spare, then KidsCan is a very worthy cause to donate to.
You can donate online and every contribution helps (big or small).
Our staff are also active participants in the community and in October, our very own Sue Williams-Warren will be foregoing her birthday weekend sleep-in to partake in the Pink Ribbon Walk.
Sue has set herself a fairly ambitious goal (not the walking as she will conquer that with ease) but in terms of the funds she would like to raise. You can support Sue’s goal and more importantly the Breast Cancer Foundation by donating online.
We will be backing Sue as she tackles the big walk on 13 October, whilst also raising valuable funds for such a worthy cause.
Lastly, a member of the Turner Hopkins team is currently in China, representing New Zealand as a coach to the under 19 national volleyball squad. Luis Paulo Santana De Mattos, has a long history with Volleyball New Zealand, having been appointed as a National Coach in 2017 and gradually making his way to Head Coach for the under 19 squad in 2024.
Luis fits all of this activity in, around his full time role as a solicitor with Turner Hopkins working within our civil litigation and debt recovery teams.
We wish Luis and the team all the very best for a successful competition, putting New Zealand volleyball on the international stage.
And to round off the end of the month, members of the team were given a styling makeover by Barbara Smith, an Auckland based personal stylist.
With plenty of accessories on offer, some good food and wine and a few good sports willing to dress up, it was a great evening’s entertainment.
Barbara offers her services across Auckland and can be contacted via email (click here). You can also reach her via her Instagram handle: @stylebybarbaranz
We are proud to support local small businesses, particularly those who can make us all look that little bit more polished.
That finishes off August with the Turner Hopkins team and starts the countdown to the end of the year - that’s right only 125 days to Christmas. Next month we will continue to follow the impacts of the OCR on the property market as all eyes are fixed on further rate reductions.
Our family law team will be bringing together another insightful and topical article and we will also hear from our private client team as well.
Remember if you have any suggestions for articles, news or stories you would like to see or information you would like the team to discuss, then email us with your thoughts.
Until next month!
The Team - Turner Hopkins
