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Chamber of Commerce SouthlandBusiness CentreCorner Leven and Esk StreetsP.O. Box 856, Invercargill

Phone: 03 218 7188Fax: 03 218 7927Email: office@commercesouth.comWeb: www.commercesouth.com

Designed and Collated by:Market South Level 4, 5 The Crescent, Invercargill Ph: 03 214 4455 | Web: www.marketsouth.co.nz

In This b2b:

The Pitter Patter of those Big Red Shoes 9Ronald McDonald House is headed south

Top Tips for Cash Flow 11BNZ Partners look at the essentials

Facebook for Business 16 Market South share their top tips for using the world’s most popular social networking site to promote your company

We look at the 2012 UCI Juniors Track Cycling World Champs – coming to Southland in August

THE WORLD IS COMING - TO RIDE

BALANCING THE TRADITIONAL WITH THE NEW

$4.95

GDC Mayor Tracy Hicks looks at the challenges for Southland

BUSINESS 2 BUSINESSEdition 3, 2012

Chartered Accountants and Business Advisors

Phone 0800 10 30 10www.mdp.co.nz

Our partners will provide your business with straightforward answers and a clear direction to grow your business to its full potential.

Speak to one of our Business Advisors now for a better business vision

McIntyre Dick & Partners Limited - Business Expertise

YOUR BUSINESS ADVISORS

A RECIPE FOR GROWTH

Jimmy’s Pies started life as a small family business in Central Otago back in 1960.

From an original bakery and retail site, word soon spread about these great tasting pies and over the years a distribution network was developed and grew throughout the deep south.

Many competitors opened up over the past 50 years to meet the demand created from New Zealanders’ love of pies. Most of these have now gone by the wayside. But Jimmy’s has grown, even in tough times, because they have stayed focused on doing what they are really good at. In fact, recent growth is averaging 30 percent per annum!

So what is going on at Jimmy’s Pies? Like all good recipes, there are a couple of key ingredients to Jimmy’s success. Here is what owner Dennis Kirkpatrick suggests.

1. Develop a great product and once you have this, deliver it with total consistency – Jimmy’s Pies still bake to that recipe developed in 1960.

2. Serve customers – big or small – as if the business depends on them to survive – because in the end, it does!

What lessons can we take from Jimmy’s? Business growth is often about sticking to your core business. So when the pressure goes on, increase your focus on what you are great at, rather than being diverted by short term distractions.

To get your business growing, talk to McIntyre Dick & Partners, phone 0800 10 30 10 Article sourced from the Growth Guide, an NZ CA Ltd publication. While every effort is made at the time of publication to ensure the information contained here is correct, we urge you to not rely on this information or part thereof in making any business decisions without seeking further consultation from appropriate sources. The information relayed here is intended as a guide and MDP or B2B Magazine will not accept any liability for any loss or damages that may arise by not taking heed of this disclaimer.

“ Business growth is often about sticking to the basics…

Images: Otago Daily Times/ Otago Images

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Tracy HicksGore District Mayor

VIEWPOINT - BALANCING GROWTH

From the very first days of John Key wresting the mantle of power from Helen Clark a question he has regularly posed has been ‘how can we make the boat go faster?' Meaning how can we boost the New Zealand economy? Of course there are many answers to that question and it’s not my intention to attempt to address them all in this column. However, I would like to focus a little on a particular sector that has often been cited as a barrier; local government.

While I believe we in local government can do better, there have been some classic examples of councils actually being an enabler as opposed to being a barrier.

Consenting is usually the first item raised when barriers are talked about.

The Gore District has long had a reputation for getting the job done quickly and efficiently when it comes to resource consenting. One doesn’t have to look any further than the consent issued for the Kaiwera Downs wind farm to illustrate this. It is one of the few, if not one of the only, wind farm consent applications in New Zealand not to get clogged up in the bowels of the Environment Court.

Like most things in life, in the end it comes down to having the right people in the right place at the right time. I believe that on the consenting front we stack up very well, from a building consent perspective as well as resource

TRAININGSEMINARS&fit

JULY 2012

Warnings | Lunchbox SeriesCategory: Employment Law & Human Resources16 July | 12.00am – 1.30pm

The Basics of People Leadership

Category: Management & Leadership18 July | 9.00am – 4.00pm

AUGUST 2012

Small Business Promotion (For Women)Category: Her Business02 August | 1.00am – 4.00pm

Performance, Discipline & Procedural FairnessCategory: Employment Law & Human Resources15 August | 9.00am – 4.00pm

Implementing & Running Effective Safety CommitteesCategory: Health & Safety21 August | 12.30am – 4.30pm

Introduction to Sales: Part 1 - The Essential SkillsCategory: Sales & Marketing28 August | 9.00am – 12.30pm

SEPTEMBER 2012

Social Media TrainingCategory: Personal Development & Communication04 September | 9.00am – 4.00pm

Employment Relations ToolboxCategory: Employment Law & Human Resources05 September | 1.00pm – 4.30pm

Public Speaking SkillsCategory: Personal Development & Communication06 September | 9.00am – 4.00pm

Health & Safety Representative Training - Stage 1Category: Health & Safety17-18 September | 8.30am – 4.30pm

For more information and costs of these courses contact the Southland Chamber of Commerce.

03 218 7188 www.commercesouth.com > Training

Key wresting the mantle of power from Helen Clark a question he has regularly posed has been ‘how can we make the boat go faster?' Meaning how can we boost the New Zealand economy?

Of course there are many answers to that question and it’s not my intention to attempt to address them all in this column. However, I would like to focus a little on a particular sector that has often been cited as a barrier; local government.

While I believe we in local government can do better, there have been some classic examples of councils actually being an enabler as opposed to being a barrier.

Consenting is usually the first item raised when barriers are talked about.

The Gore District has long had a reputation for getting the job done quickly and efficiently when it comes to resource consenting. One doesn’t have to look any further than the consent issued for the Kaiwera Downs wind farm to illustrate this. It is one of the few, if not one of the only, wind farm consent applications in New Zealand not to get clogged up in the bowels of the Environment Court.

Like most things in life, in the end it comes down to having the right people in the right place at the right time. I believe that on the consenting front we stack up very well, from a building consent perspective as well as resource consenting.

However, I am sure there are many ways that we as a council and as part of the local government sector can improve the way we connect with the business community and I would be very keen to listen to any ideas the Chamber of Commerce or individual members may suggest.

Southland has long been known as a leader in the agricultural field and a quick glance to the future would suggest that very little is going to change on that front.

The real question we as a province face now is how to ensure that farming practices

remain sustainable, not only in reality but also from the perspective of customer perception. Water is the new gold and if we are able get great quality alongside quantity assurance then the sky is the limit, production wise.

A protein hungry world will mean that Southland will be seen as a very desirable place to invest for a long time to come. Again, local government plays a big role in making sure the balance between production and sustainability is maintained. While it is, at times, an uncomfortable place to sit, to me, having locally elected people in a position to get to that point of balance is the best option available. The idea of government-appointed commissioners making decisions on behalf of Southlanders has little appeal to me. Hopefully we don’t have to face that stark prospect.

The unusual situation we face at present is that not only do we have agriculture gathering a real head of steam but on the horizon are some huge industrial projects which we have never seen the likes of in New Zealand before. These have the potential, should they go ahead, to significantly alter both the population settlement patterns of the province and the physical landscape.

Any development of the vast lignite resource in Eastern Southland to produce urea as a fertilizer and diesel as a transport fuel would most likely have significant economic spinoffs. However, like most things in life there is always a potential downside, which in this case may be in the form of challenges presented in terms of environmental management.

The challenge of making the boat go faster must be measured against any sacrifice made from a lifestyle perspective although it seems to me that thus far, in the south, we have got the balance largely right. There will always be people at either end of the spectrum unhappy at the outcome for a variety of reasons but generally the organisation making the call as to the wisdom of proceeding in a particular direction or not, is a unit of local government.

The Chamber of Commerce has an important role to play in advocating for and on behalf of business, both small and large, and from my experience I know that local government appreciates the part it plays in shaping the society we live in.

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WHEN THE WORLD COMES TO RIDE

250 competitors - 750 team personnel and supporters. 30 countries - 10-15 days average stay. $650,000 budget - $3.2 million predicted economic impact.

In a little under four months, the eyes of the cycling world will be trained on Invercargill.

The UCI Juniors Track World Championships is obviously a major date on the sport's calendar, with 250 of the planet's best young riders expected to show their talents at the Stadium Southland Velodrome from August 22 to 26.

National funding has been confirmed via New Zealand Major Events – Sport New Zealand and BikeNZ.

There has also been huge support shown by local funders including Invercargill Licensing Trust, Invercargill City Council, Southland District Council, Venture Southland and the Community Trust of Southland.

Recently the Southern Institute of Technology (SIT) were announced as the main sponsor for the event. SIT Chief Financial Officer Bharat Guha said it was a positive and beneficial alliance for all parties involved.

"This is an exciting new partnership for both SIT and Cycling Southland and we know it is the beginning of a long-term relationship. Because SIT is community driven and industry focused, it is a huge bonus through this partnership to have the opportunity for SIT students to gain work experience in a world-class event. This is an ultimate outcome from the partnership that will benefit event organisers and our students alike."

Organisers have been promoting the event as a ‘trip of a lifetime’, encouraging riders and their families to extend their visits to New Zealand to include the likes of Queenstown, Fiordland, Stewart Island and the Catlins.

Invercargill Junior World Cycling 2012 Ltd Chairman Steve Canny said the international element meant there were fantastic opportunities for marketing the south as New Zealand's premier home of cycling, as well as tourist attractions.

As many as a 1,000 people could come to Invercargill as part of the championship. Cycling Southland Chief Executive Nick Jeffrey said the good thing about Junior Worlds is that you get a rent-a-crowd as family and teams support their travelling competitors.

"Our promotion has all centred around the trip of a lifetime. I know it sounds a bit clichéd but when people are travelling all the way from Europe we are saying make the most of it, tag ten days onto the end of it and enjoy all the things the region has to offer. We are getting some good enquiries in that regard."

Organisers have deliberately been conservative regarding the economic impact of the Junior Worlds but believed it could pump $3.2 million into the local economy.

Promotion for the event has been going for some time with International commissaire and local cycling identity Graham Sycamore attending the 2009 Junior Worlds in Italy and the 2010 event in Moscow.

“Graham has been a fantastic ambassador for our event in Invercargill and is well known in International circles,” Jeffrey said.

Countries such as Belgium, Australia and Malaysia are already planning an early arrival in the city for additional training camps prior to the championships.

Event Director Sue Clarke said that organisers had hoped to run a large-scale event from the time the Velodrome was built and the past six years had been spent building up the club's finances and human resources to the point where it was capable of doing that.

"The risks of the event don't exist in terms of our ability to deliver, because to be honest we deliver as big events logistically now. This is on an international scale, but we know we've got the personnel and the experience to deliver a great event,” Clarke said.

The 2012 Juniors World Track Cycling Championships, 22-26 August 2012. Be part of the action when the world comes to ride.

Full event details at www.juniorworlds2012.com General enquires: office@juniorworlds2012.com Event Director Sue Clarke: director@juniorworlds2012.com

RSVP: Chamber of Commerce: office@commercesouth.com

When: July 6 - 12.15pm Sharp

Where: BNZ Business Centre

Speaker: Joanne O'Connor- from New Zealand Institute of Management

Topic: How will NZIM benefit your business?

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The IRD recently clarified the Fringe Benefit Tax (FBT) issues in relation to the availability. The issue is if an employer makes a good or service available to an employee, will the mere availability of the good or service be a fringe benefit?

Inland Revenue's answer to the above question is ‘no’. They stated that fringe benefits arise when a benefit is provided by an employer to an employee in connection with their employment.

Ordinarily, if a company provides a benefit to an employee it will be a fringe benefit irrespective of whether it has been used or not. However, the IRD has clarified that if the employee has a “mere availability” of goods or services which has not been

IRD CLARIFIES FRINGE BENEFIT TAX

Jay ChanglaniManager - TaxationConsulting

provided to an employee will not have FBT consequences.

There are exceptions to this such as motor vehicles. Where a motor vehicle is made available for private use, this gives rise to a fringe benefit.

Is the availability for private use of a business tool (which by definition has been provided to an employee) is a fringe benefit? The answer is ‘it depends’ on whether it falls within the exclusions in the Act.

While the provision of benefits may be an effective way to remunerate employers, the taxable nature of any benefit provided will differ depending on the nature of the benefit provided. As such, careful consideration should be given when offering benefits and we recommend obtaining specialist tax advice prior to implementing to ensure that the full cost of any benefit provide can be measured.

Contact Jay Changlani on 03 211 33 55 or Jay.Changlani@whk.co.nz

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FOUR REASONS TO CONTACT BDO

BDO Invercargill Lexicon House, 123 Spey Street T: 03 218 2959. E: invercargill@bdo.co.nz W: www.bdo.co.nz

▶ Dave Mitchell▶ Greg Thomas▶ Diane Thornbury▶ Tim Ward

AUDIT • TAX • ADVISORY

technology group

HOW SAFE ARE YOUR PASSWORDS?

In today’s internet age everything needs a password and there are seem to be a million ‘everythings’!

Should you use a simple, short password for your Google Mail, Online Banking, Dropbox and App Store account?

If it’s short and simple it may be really easy for you to remember but unfortunately it can also make it easy for the ‘less-than desirables’ to access your account.

A large portion of the world’s spam comes from Webmail accounts with poor passwords.

PCMag.com reports that at one time 35.2 percent of the world’s Spam was coming from compromised Hotmail accounts and that 62 percent of those with compromised accounts had no idea it was happening.

Imagine if that nice Nigerian man that emailed you happened to guess that your email password was the same as your Internet Banking account!

So, what constitutes a strong password?

For a start it does not have to be a single word, why not use a short sentence? For example, ‘mydogisbad’ is a good start and easy enough to remember.

You can then ramp it up again, by adding for example, your dog’s age, or the year - ‘mydogisbad12’ is a strong password.

Then, when you need to change your password (and make sure you do this regularly), you can turn it into question, ‘ismydogbad’, or add punctuation or capital

letters, ‘mydog’sbad12’ or ‘Mydog’sbad12’. These passwords would all be hard to ‘crack’ and you could consider yourself well protected.

Along with using a sentence and adding punctuation and capital letters, another good tip is substituting certain letters for numbers, for example A = 4, E = 3, S = 5. How would you remember that? Use it, use it, use it!

Repetition is a proven method of learning. If you change your computer password, do it in the morning and lock your computer when go to the printer and unlock it again when you get back or reboot and login a couple of times during the day.

Organisational policies can be set up in some instances to enforce regular password changes. Talk to your IT provider about these options and as always, when in doubt - talk to the professionals!

We’ll

take care

of your

technology.

So you can get

on with running

your business.

leave it to us

P: 03 211 0099W: www.focus.net.nz

a: 176 Spey Street, Invercargill

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Warren Buffett is one of the world’s most successful investors. His investment company, Berkshire Hathaway is worth about US$200 billion and has posted a return of 19.8 per cent per annum since 1965. This is a remarkable track record which far exceeds the 9.2 per cent that the US share market has delivered over the same period.

Every year he pens a letter to shareholders, and this year’s edition contained, as always, some very interesting messages. The thoughts and comments that are most interesting come at the end of the letter. Buffet breaks down the three basic investment choices people have and outlines his view on each.

The first is currency or money-based investments, including fixed interest and bank deposits. Generally considered the safest, Buffet believes these can be among the most dangerous of assets.

While investors receive timely payments of interest and the repayment of their principal, the purchasing power of these investments often falls significantly over the long-term because the “invisible tax” of inflation eats away most, if not all, of the return. Buffet admits that at times, high interest rates compensate investors for this risk. But at present, he believes interest rates do not even come close to offsetting these risks to purchasing power. He believes that “right now bonds should come with a warning label”.

The second category contains those assets that will never actually produce anything, but are purchased in the hope that someone else will be willing to buy them in the future, such as gold. Gold is the investment of choice for people that fear other assets, especially traditional currency, which can be undermined by money printing and inflation.

While Buffet agrees that investors should be cautious of currency-based investments, he doesn’t think gold is the solution. He believes that while it has some industrial and decorative use, this is limited and it will remain forever unproductive.

The third option, and his clear preference, is to invest in productive assets including businesses, farms or property. In selecting these, the key attribute he looks for is the ability to produce or deliver an output that will retain its purchasing power. He believes that farms, property and good quality companies like Coca-Cola and IBM meet this requirement.

Buffet argues that it doesn’t matter whether a currency is based on the paper money we use today, gold or something else. If investments produce something useful, people will be forever willing to exchange what they themselves produce or earn in exchange for it. Because of this, investments in this third category will always be superior to non-productive or currency-based assets. He notes that more importantly, he believes that over any extended period of time it will be by far the safest.

To speak with an Investment Adviser please contact Craigs Investment Partners Invercargill branch on 03 214 9939 or our Gore branch on 03 208 9310 or visit www.craigsip.com for more information.

This column is written by Mark Lister, Head of Private Wealth Research at Craigs Investment Partners. His disclosure statement is available free of charge under his profile on www.craigsip.com. This column is general in nature and should not be regarded as specific investment advice.

SOME INVESTING TIPS FROM THE 'SMART MONEY'

Invercargill Branch49 Kelvin Street / 03 214 9939 / invercargill@craigsip.com

Gore Branch120 Main Street / 03 208 9310 / gore@craigsip.com

Craigs Investment Partners is a NZX Participant firm. A Disclosure Statement is freely available on request. Please visit www.craigsip.com for more information.

Craigs Investment Partners offer those new to investing, the opportunity to develop an understanding of investing

fundamentals through our education program; Investor Basics.

Register now to attend one of our workshops or to download an education booklet - visit www.craigsip.com

New to Investing?

www.craigsip.com

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WHEN COMPLIANCE CAN MEAN SAVINGS... REALLY

At McIntyre Dick & Partners we offer an ACC Administration and Review Service to clients which has resulted in ACC refunds or amended ACC cover for two thirds of our clients utilising the service.

ACC generally sends levy invoices directly to clients. These invoices can contain errors that result in clients overpaying their ACC liabilities. In many cases the ACC invoices are not provided to us so the errors go undetected. However, by using our ACC Administration and Review Service these errors will be detected and this can result in refunds.

As clients do not deal with ACC very often they do not always take the opportunities offered by the ACC legislation to either reduce their levies or maximise their level of cover. Again we will look at this when reviewing a client’s position.

ACC Review Service: The practical aspects

McIntyre Dick & Partners offers our clients an ACC Administration and Review Service. This involves us acting as our client’s agent for all their ACC related matters. The advantages to our clients are:

All ACC related information comes to us

We review the invoices and ensure they are correct

We advise the client immediately of payments due and payment options

Clients can rest assured in the knowledge that their levies are correct and have been minimised

We advise clients on the best options available for their ACC cover, such as ACC CoverPlus Extra

We keep clients up to date with any changes in ACC legislation that may affect them

We can guide clients through the claims process if they have to make an ACC claim, thereby making it less stressful on them

We can liaise with client’s insurance providers to assist in providing the most effective combination of ACC and private insurance for their needs.

If you wish to have your ACC circumstances reviewed or have any other questions regarding ACC please contact Chris McDonald on 03 211 3775. While every effort is made at the time of publication to ensure the information contained here is correct, we urge you to not rely on this information or part thereof in making any business decisions without seeking further consultation from appropriate sources. The information relayed here is intended as a guide and MDP or B2B Magazine will not accept any liability for any loss or damages that may arise by not taking heed of this disclaimer.

Chartered Accountants and Business Advisors • Phone 0800 10 30 10 • www.mdp.co.nz

Chris McDonald will make sure your ACC matters are correctAs many of you know keeping up with the play running ACC can be a costly tiresome exercise. At MDP, Chris can make sure your ACC commitments are fair and correct

Speak to Chris our Business Advisor now - for better ACC outcomes

McIntyre Dick & Partners Limited - Business Expertise

YOUR BUSINESS ADVISORS

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An onsite haven for families with sick children at Southland Hospital is soon to be established in an exciting new partnership that will hugely benefit the local community.

Southern District Health Board (Southern DHB) has given the green light for a Ronald McDonald Family Room to be constructed inside the hospital, which will be funded by Ronald McDonald House (RMH) South Island Trust.

The facility is designed so parents can step away from the traditional hospital environment, and achieve some much-needed respite and once established, Southern DHB and RMH South Island Trust will share some of the running costs.

Design and specifications of the facility are still to be confirmed, but featuring four overnight bedrooms, ensuite bathrooms and living, kitchen and dining facilities, the Family Room will provide an area of rest and relaxation for parents a short walk away from their sick child’s bedside.

RMH South Island Trust General Manager Emma Jones believes the facility will provide invaluable support to the community and will provide families with a place to gain strength and focus on their child’s recovery.

“Having a child in hospital is enormously draining and stressful, both physically and emotionally. The Ronald McDonald Family Room will allow parents to take a shower, grab some sleep, make a meal or simply take some time out away from the ward,” she said.

Ronald McDonald Family Rooms are established in Auckland’s Starship Hospital and Wellington Hospital and there are currently 180 in 19 countries and regions worldwide.

RMH South Island Trust also operates Ronald McDonald House South Island, which provides free accommodation and support to families that need to travel to Christchurch for their child’s hospital treatment. Since opening in 2003, the Trust has provided over 75,000 nights of accommodation to more than 3,000 families from all over New Zealand.

Find out more about the RMH South Island Trust at www.rmhsi.org.nz

RONALD MCDONALD FAMILY ROOM APPROVED FOR INVERCARGILL’S SOUTHLAND HOSPITAL

Preston Russell Law Winter SeriesPreston Russell Law invites you to attend their free business seminar series. Preston Russell is a full service firm that is committed to supporting business in the South.

24 May - Negotiation Techniques

20 June - Regulatory RisksResource Management, Health & Safety and other regulations

25 July - Charities - Your Role on the Board

23 August - Corporate GovernanceDirector Duties / Advisory Boards / Good Governance / Internal Controls

26 September - Contracts 2Leases / Guarantees / Tenders / Confidential Agreements and other contracts you should read but probably don’t

All seminars will be held at Preston Russell Law, 92 Spey Street, Invercargill.

RSVP to christine.mcleod@prlaw.co.nz or 03 211 0080.

Need legal advice for your business? Contact Sean Woodward, Partner - 211 0080

“ Having a child in hospital is enormously draining and stressful, both physically and emotionally. The Ronald McDonald Family Room will allow parents to take a shower, grab some sleep, make a meal or simply take some time out away from the ward.

10

EMPLOYMENT AGREEMENTS

Practice ManagerKelly Tagg

Business Card - Photography Concept (Lady Staff)

151 Spey Street, PO Box 1207Invercargill 9840

New ZealandTelephone +64 3 211 1370

Fax +64 3 214 4122Freephone 0800 100 151

Website: www.awslegal.com

DDI: +64 3 214 5423Mobile +64 21 234 456Email kelly.tagg@awslegal.com

Local, just like youWe’ve launched a brand new face-to-face service created for local businesses in Southland.

Our job is to get to know your business inside out and recommend the right landline and calling plans, broadband and mobile solutions to keep your business connected and give you the competitive advantage.

And what’s more our advice to you is FREE.

Find out more 0800 784 482 info@hubsouthland.co.nz

business hubSouthland

3-0 02345 BUS Biz Hub Southland Chamber of Commerce Ad 210x99.indd 1 17/08/11 2:30 PM

rumpcardRewarding Loyalty and Fundraising

www.trumpcard.co.nz

10,000 Southland

Cardholders are looking for places to shop

Do you have a great business that delivers value and supports the local community? Then differentiate yourself and join the Trumpcard network.

Contact the Trumpcard team on (03) 214 6416 or info@trumpcard.co.nz

Damien PinePartner

I am still constantly surprised to discover that many employers do not have written employment agreements with their staff. Not only will it put the employer on the back foot should any employment dispute arise, it is also illegal!

Section 65 of the Employment Relations Act 2000 (“the Act”) specifies the terms and conditions of employment when no collective agreement applies. An employment agreement must be in writing and may contain such terms and conditions as the employer and employee think fit.

The employment agreement has to include a number of compulsory elements under the Act, for example, salary or wage details, where and when work is to be performed, an Employee Protection Provision and it must not contain anything contrary to law or inconsistent with the Act.

From 1 July 2011 employers must keep a signed copy of the employment agreement or the current terms and conditions of employment for all employees. This includes casual and fixed term employees. If an employee has not signed or agreed to any of the terms and conditions specified, employers must retain the ‘intended agreement’. It is important to realise that the unsigned employment agreement will not comprise an employee’s terms and conditions.

An employee has the right to request a copy of their individual employment agreement or terms and conditions and their employer must, as soon as reasonably practical, provide the employee with the same.

Any employer in breach of these requirements may be liable to a penalty imposed by the Employment Relations Authority. The maximum penalties for failure to comply with the Act are $10,000 for individuals and $20,000 for companies.

Given the potential penalties, it is probably a good time to review your employee files to ensure you comply with the legislation. We have a specialised employment team at AWS Legal who can assist you in ensuring you comply with the Act.

We are one firm, full service, delivered exceptionally.

We welcome your comments: damien.pine@awslegal.com

Please remember, this information is provided as a guide only and should not replace the advice of your legal professional.

11

During the lifecycle of a business you will meet many challenges in building it up to ensure you enjoy a long-term sustainable business and personal income while trading.

It takes positive cash flow and access to cash when required to succeed long-term. The need for cash never stops from start up, through growth stages, to taking dividends, to maybe eventually readying your business for sale.

During these changes and in times of a ‘tight’ economy, your business balance sheet or personal assets can sometimes be inadequate to fund your cash flow requirements of the day.

There is value in getting back to the basics to speed up the flow of cash into your business.

KEEPING THE CASH FLOWING

Kirsty McNeillBusiness Partner

5 Top Tips for Cash Flow

Have clear and concise Terms of Trade documentation in place for your business. Include a formal credit policy and review this regularly. Apply terms appropriately with your customers. The Terms of Trade for your business should be reviewed regularly and duly applied.

Challenge and maximise supplier terms. Negotiate better credit terms by actively building relationships with selected suppliers. Can you get a discount for prompt payment? How would this impact the working capital funding lines your business currently has? Talk to your bank about how they can help.

Stock is effectively cash tied up in a non-cash form. Understand the true costs in bulk purchase orders or special deals. Stocktake regularly and make sure stock is moving at an appropriate speed.

Forecast your cash flow. As a business owner/operator you must make important decisions that hinge on uncertain future events. It is vital to have a direction and know where you are going in order to interpret any likely impacts of actions or sales. Good forecasting will give you confidence to operate your business effectively with growth in mind.

Remember, the cash flow of your business is likely to change frequently and so will the cash flow for your customers. Recognise the signs of cash flow stress in the businesses you deal with and don’t be afraid to amend your Terms of Trade accordingly. Most businesses face the same cash flow issues as you.

Cash flow management is critical to your business and worth constant review. For assistance, see your trusted advisors.

Phone Kirsty on 03 2146732 or email kirsty_mcneill@bnz.co.nz

This article is intended as a general discussion only. The views expressed are the writer's own and do not necessarily represent those of Bank of New Zealand or its related entities.

12

Barnardos Southland is looking for local businesses and dads to play a key role in a new parenting initiative, PRIDE (Providing Resources and Information to Dads Effectively).

Paul Ereckson from Barnardos says the programme is all about helping dads become proud, confident parents.

Local dads who are passionate about children and parenting are needed to volunteer to help organise events and workshops around positive parenting within the Southland community.

Project Coordinator Rhonda Hoffman says, “We need our local dads to jump on board to help other local dads, it’s about ensuring all parents have access to information and opportunities.”

Local businesses are also being encouraged to get involved. Paul explains, “employers can support and encourage dads to spend time with their children at home. This helps parents maintain a good work and family life balance, which is also good for workplace productivity.”

Businesses that become involved in PRIDE will receive a range of great parenting resources to have available for their employees.

PRIDE has been developed in response to a 2011 Southland parenting survey by Otago University, which identified the need for more parenting information for dads. The project is being funded by S.K.I.P (Strategies for Kids and Information for Parents).

If your organisation is interested in becoming involved with PRIDE or you are interested in being a ‘champion dad,’ please call Rhonda on 214 7867 or Paul on 214 7866. To sign up for regular updates about upcoming Barnardos events, contact Rhonda or keep an eye out in your local paper.

'PRIDE' - NEW PARENTING INITIATIVE

A� ordable, QualityEmployment Law SolutionsFor HR advice, employment problems, disputes & personal grievances, Holidays Act, employment agreements, restructuring and redundancy.

For advice or an appointment contact Helen on:tollfree 0508 656 757 or mobile 021 756 809email helen@osea.org.nz

Full Access to Information and Business Services

Cre

8ive

504

9

Helen Young

Otago Southland Employers’ Association IncorporatedInvercargill O� ce, Cr Esk St & Leven St, PO Box 856, Invercargill 9840

Dunedin O� ce, 16 McBride St, PO Box 473, South Dunedin 9054tollfree 0508 656 757 • www.osea.org.nz

Specialist Employment Lawyer

“ We want parenting information and support to be easily accessible to Southland dads. There is no better place to start than the working and recreational environments.

Paul Ereckson is the Service Manager of Child & Family Services, Barnados Southland

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BUSINESS BRIEFS

Get Yourself on the Map

Google maps along with smart phone/iPhone applications (apps) like Google’s Places and Latitude are great tools for people to find local businesses and attractions.

These tools are especially useful for people who do not know the area or are new to town. All they need to do is quickly check their location on their smart phone and a list of businesses nearby will be generated. The listing may also include photos, logos, contact phone numbers, email and directions.

To make the most of this, businesses first need to register their location and contact details with Google. This is free and a simple process, each step will only take a couple of minutes. You will need to have a Google account but again this is free.

Once you have logged into Google you will need to enter your business details and make sure the location sign is placed correctly on the map, this is mostly automatic as it is selected as you enter your address. To confirm the address is correct, Google send you a postcard (about two weeks later) with a code to enter into their site.

Once this is completed and reviewed by Google your business will be visible on Google maps and the apps that draw on that information.

To get started go to www.google.com/places and follow the instructions.

Jobseekers: More Choosy

Today’s jobseekers are becoming increasingly selective, according to Hays Recruiting. In general, people are looking for roles that offer a good work/life balance, project or workload security, a stable team and opportunities for training and development.

The reasons for this choosiness are rising workloads, unfulfilled career development, the instability of some organisations and a lack of appropriate recognition since the global financial crisis.

According to a Kelly survey 68 percent of NZ employees are likely to be looking for a new job over the next 12 months (compared to an international average of 66 percent). Restlessness is due to employees having to cope with greater demands with fewer staff, lower wage growth and fewer opportunities for promotion. Other findings are that baby boomers were most likely to switch jobs over

the next 12 months and the main motivation for wanting to change jobs is not for more money, but for personal fulfilment and growth/advancement.

Mobile Wallet Trials

In Wellington customers of 2degrees are trialling tagging on and off buses using the latest smartphones and making some purchases with them. In Auckland, Telecom, Auckland Transport, and Westpac are starting a trial enabling people to use a mobile phone to make payments to access public transport (buses, trains, and ferries) in Auckland, and make purchases at a small selection of retailers.

Mobile wallets are one part of a global revolution in the world of retail. For consumers, the very act of navigating to a website, locating and then buying a specific product is giving way to a world where (e)commerce is always just a click - or a point, tap, swipe - away. Indeed, e-commerce is rapidly being joined by ‘m-’ and ‘t-’ commerce (via mobile, tablet and TV).

For a recent overview of this trend, go to www.trendwatching.com/briefing, and look at the May 2012 briefing.

Businesses are paying bills faster

According to Dun & Bradstreet’s (D&B) latest Trade Payments Analysis, New Zealand businesses have dropped nearly four days off the time taken to settle their accounts over the past three years, paying their bills within 45 days during the March quarter 2012. Note though, that this is against the standard 30-day repayment period.

The improvement was especially evident in the retail and manufacturing sectors. Conversely, the communications sector, the public administration sector and the construction industry took longer to pay their bills.

More Wind Power for NZ

It is predicted there will be a 6-fold increase of wind generation in New Zealand, so it is producing 20 percent of the country's electricity by 2030, according to a report from the NZ Wind Energy Association. Currently, 5 percent of New Zealand’s electricity is generated by wind. Copies of the report findings, summary and full documents are available at www.windenergy.org.nz.

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WELL DONE TO THE TRUMPCARD NETWORK! rumpcard

Last month Trumpcard Outlets reached the highest total Trumpcard sales yet, a sure sign that people are embracing the programme and making it work for them.

Trumpcard CEO Neil Selman is pleased the growth is happening naturally, with Cardholders, Fundraisers and Outlets beginning to reap rewards from the programme.

“Trumpcard benefits all parties, with Cardholders receiving loyalty rewards, Fundraisers receiving donations and participating Outlets receiving new and repeat business in addition to being

positioned as good corporate citizens that support local community groups, fundraisers and charities,” Mr Selman said.

Trumpcard recently presented their first big cheques to ecstatic Fundraisers, a milestone Mr Selman says demonstrated perfectly how the programme really works.

“The cheques will keep rolling in to the Fundraisers as long as their supporters keep shopping at participating Outlets and swiping their Trumpcards,” he said.

Now, after 12 months of operation Trumpcard has evolved from the domain of early adopters to be embraced by the wider community. Trumpcard has 5,000 Netball Southland and 5,000 Rugby Southland cards entering the Southland market later this month and the company is also underway with their planned Otago launch which will be followed by a nationwide rollout.

Contact the Trumpcard team on (03) 214 6416 or info@trumpcard.co.nz

“ The cheques will keep rolling in to the Fundraisers as long as their supporters keep shopping at participating Outlets and swiping their Trumpcards.

Trumpcard’s Natalie Lawson presents SPCA Southland Manager Mary Bradley with a cheque for funds raised through the Trumpcard network.

Trumpcard’s Natalie Lawson presents Hospice Southland CEO Nicki Kitson and Promotions Officer Melanie Luke with a cheque for funds raised through the Trumpcard network.

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Over half of fund managers overweight Greater China equities. Positive outlook on Asian bonds and global emerging markets/high yield bonds.

Global fund managers are most optimistic about Greater China equities with 56 percent holding an overweight view in the first quarter of 2012 as they look to move away from cash to equities and bonds this quarter, according to HSBC’s latest Fund Managers’ Survey.

Over a tenth of fund managers shifted from neutral to overweight views towards Greater China equities in 1Q2012, one of the worst performing asset classes last year that started to turn around in 4Q2011. MSCI China and Hang Seng Index fell 18.2 percent and 17.3 percent in 2011, versus a 2.1 percent gain for Standard & Poor’s 500 in the US and a 10.5 percent drop for MSCI Europe. The performance reversed in the last quarter as Chinese equities recovered by 8.1 percent.

Head of Wealth at HSBC New Zealand, Glen Tonks says: “Greater China equities are currently trading at a price-to-earnings ratio of nearly 10 times. With an attractive valuation, Greater China equities may offer potential wealth opportunities and diversification for New Zealand growth orientated investors. China’s recent monetary easing measures such as cutting the reserve ratio requirement also improved market sentiment.”

1Q 2012 asset allocation strategies

As equity markets rebound, fund managers are less bearish on equities with 50 percent and 30 percent of respondents holding neutral and overweight views, respectively (vs 20 percent and 30 percent in 4Q2011). Only 20 percent of respondents hold an underweight view in 1Q2012, dropping significantly from 50 percent in the previous quarter. Apart from Greater China equities, an increasing number of fund managers favour emerging markets equities (55 percent) and Asia Pacific ex Japan equities (40 percent) this quarter, compared with 27 percent and 20 percent respectively in 4Q2011.

Over 44 percent of fund managers favour bonds as an asset class vs. 22 percent in 4Q2011.

As many companies have solid fundamentals and are supported by relatively strong Asian economies, the majority of respondents are bullish on Asian bonds (88 percent) and global emerging markets/high yield bonds (78 percent) while bearish on European bonds (89 percent).

More fund managers are underweight towards cash (44 percent this quarter, compared with 22 percent in 4Q2011).

“While the survey shows a continued and increasing preference for bonds as investors look for yield in a prolonged low interest environment, fund managers are looking at riskier assets again on the back of improving economies, resilient corporate earnings and attractive valuations,” says Mr Tonks.

4Q2011 global fund flows

Funds under management (FUM) across 13 of the world’s leading fund management houses polled reached US$3.81 trillion at the end of 4Q 2011, up by 3.7 percent from the previous quarter. Reflecting investors’ conservative outlook amidst a volatile market, money market funds contributed 36.2 percent of the increase in FUM.

The survey recorded a net outflow of USD42.2 billion for equity funds in 4Q2011 as investor sentiment was dampened by the

European debt crisis. As investors continued to search for safe havens, bond funds recorded a net inflow of USD19.7 billion last quarter, particularly US bonds.

Market performance 4Q2011 vs 3Q2011

The majority of equity and bond funds recorded positive returns in Q42011. Greater China equities posted one of the largest rebound, becoming the second best performer in Q42011 (+8.1 percent) from being the worst performer (-25.2 percent) in Q32011. Emerging markets equities and Europe including UK equities also showed a strong turnaround from -22.6 percent to +4.4 percent and from -22.6 percent to +5.1 percent in Q32011 and Q42011 respectively.

“This quarter, there are signs of improved investor outlook, with selective prospects in equities and bonds. New Zealand growth investors should consider opportunities in emerging markets, which are likely to be the prime beneficiaries coming out of the economic crisis. One good reason to invest in emerging markets is the exposure to rising domestic consumption. Emerging economies such as Brazil, Russia, India and China (BRIC nations) are among the fastest growing economies today and are increasingly being driven by domestic demand as exports as percentage of GDP falls," adds Mr Tonks.

FUND MANAGERS TURN POSITIVE ON GREATER CHINA EQUITIES

Asset class End 4Q2011 End 3Q2011US bonds +4.6% -3.9%Japan equities +3.1% -4.4%Emerging markets/High yield bonds +2.8% -3.6%Europe including UK bonds +2.7% -3.7%Global bonds +2.6% -4.4%Asian bonds +0.5% +4.7%Emerging markets equities -1.8% -4.2%Asia-Pacific ex-Japan equities -2.0% -6.4%Europe including UK equities -2.4% +2.9%North American equities -2.8% -2.7%Greater China equities -5.5% +5.5%Global equities -6.1% -2.9%

markets/high yield

Underweight Neutral Overweight 1Q2012 4Q2011 1Q2012 4Q2011 1Q2012 4Q2011Equities 20% 50% 50% 20% 30% 30%- Greater China 11% 11% 33% 44% 56% 44%- Emerging markets 18% 18% 27% 55% 55% 27%- Asia Pacific ex. Japan 30% 30% 30% 50% 40% 20%Bonds 22% 22% 33% 56% 44% 22%- Asian 0% 0% 13% 38% 88% 63%- Global emerging 0% 11% 22% 11% 78% 78%

- European 89% 89% 11% 11% 0% 0%Cash 44% 22% 33% 33% 22% 44%

Asset class allocation strategy

Asset class End 4Q2011 End 3Q2011US bonds +4.6% -3.9%Japan equities +3.1% -4.4%Emerging markets/High yield bonds +2.8% -3.6%Europe including UK bonds +2.7% -3.7%Global bonds +2.6% -4.4%Asian bonds +0.5% +4.7%Emerging markets equities -1.8% -4.2%Asia-Pacific ex-Japan equities -2.0% -6.4%Europe including UK equities -2.4% +2.9%North American equities -2.8% -2.7%Greater China equities -5.5% +5.5%Global equities -6.1% -2.9%

markets/high yield

Underweight Neutral Overweight 1Q2012 4Q2011 1Q2012 4Q2011 1Q2012 4Q2011Equities 20% 50% 50% 20% 30% 30%- Greater China 11% 11% 33% 44% 56% 44%- Emerging markets 18% 18% 27% 55% 55% 27%- Asia Pacific ex. Japan 30% 30% 30% 50% 40% 20%Bonds 22% 22% 33% 56% 44% 22%- Asian 0% 0% 13% 38% 88% 63%- Global emerging 0% 11% 22% 11% 78% 78%

- European 89% 89% 11% 11% 0% 0%Cash 44% 22% 33% 33% 22% 44%

Net fund flows4 (as a percentage of FUM):

Letting others speak for your brand is one of the most powerful forms of marketing. A new study from Nielsen Holdings shows 92 percent of consumers trust ‘earned’ media, such as recommendations from friends and family, over all other forms of advertising.

This is good news for businesses with Facebook, as with more than half of New Zealanders on Facebook, it is almost impossible to ignore the ‘word of mouth’ marketing opportunities this social networking giant presents.

As a business owner, your only investment in Facebook is time but it can be hard to know when and what to post, so here are a few tips to ensure your getting the most out of what you put in.

First of all you need to identify your company’s goals and create a strategy. Decide what you want to get out of it, who you want to ‘like’ your page, what ‘likers’ want to know and how you can help them.

People go online for one or more of the 5 ‘L’s – to Look, Learn, Laugh, Labour and Lounge (be social). Decide where you sit, what your areas of expertise are and add a personal flavour. Everything you do on Facebook reflects your brand and your reputation, so you need make clear guidelines and ensure you present the right balance between casual and professional for your business.

If you don’t have many followers, or ‘likers’ yet, start with getting everyone in

your business to suggest the page to their friends and family. You should also promote your Facebook on your website, email signature, in other advertising and make sure your current customers know you have a Facebook page. Be persistent but patient and remember ‘it won’t happen over night, but it will happen’.

Try to set aside 10-15mins per day manage your page. How often you post updates is up to you, but we suggest making one or two relevant, interesting posts a week, and just you wouldn’t leave a customer waiting at the counter, don’t leave any queries or comments unanswered on your Facebook.

Also think about what the best time is to post for your audience, for example, people at a desk job might check their Facebook in at morning or afternoon tea, so 10am or 3pm would be the best time to reach them, however students might check their page in the morning before school or when they get home.

Some of the main things people want in life include security, piece of mind, convenience, new knowledge and to be socially accepted. If your product or service can provide one

or more of these things, try to reflect this in your Facebook updates – ask yourself what is it that our customers need or want?

Education is read more than promotion, so if you sold vacuum cleaners for example, your customers want clean floors, so why not teach your Facebook friends the best ways to remove stains from carpet. By sharing your top industry tips and tricks, without any jargon so everyone can understand it, you will be perceived as the expert, making you credible and earning trust and loyalty.

Equally as important as having people ‘Like’ your page, to expand your reach you should also ‘Like’ and interact with other relevant Facebook pages. These could be your customers, industry leaders, hot spots about town, suppliers, publications you read or other pages that have a similar audience to you.

If you post interesting comments or updates people want to share with their friends, you should find that over time your reach will naturally grow. Some ideas for posts that are often shared or liked include interesting articles, news, tips, humorous photos or videos and competitions.

By setting some time aside now to add strategy to your social networking, your Facebook presence will continue to grow and the ‘word of mouth’ marketing you deserve will soon come.

If you would like expert advice on your online social strategy or need help setting up and maintaining your social networking pages, Market South can help - contact us on 214 4455 or info@marketsouth.co.nz

TOP TIPS FOR USING FACEBOOK TO PROMOTE YOUR BUSINESS

“ One of the biggest mistakes businesses make with social media is they think of it as a vehicle for promotion, when it should be used to engage with and educate people about your business.

marketsouth.co.nzLevel 4, 5 The Crescent, Invercargill | 03 214 4455 | info@marketsouth.co.nz | facebook.co.nz/marketsouth

Harnessthe power of

socialmedia

Talk to us about developing a social media strategy for your business.