MARLBOROUGH CHAMBER OF COMMERCE VOICE€¦ · PERFORMANCE P18 • TRUE STORY - INTERNET TAMES...

VOICEOF BUSINESS IN MARLBOROUGH

MarchAprilMay 2015

MARLBOROUGH CHAMBER OF COMMERCE

INSIDE

Westpac Marlborough Chamber of Commerce Business Awards The Importance of having a good back up The changing face of retail Five things you can do in 2015 ..........

PA G E 2 Voice

Advertising: Voice is published quarterly, and posted to members and delivered to various business service providers. For advertising rates, deadlines and details contact the Chamber office on 03 577 9575 or [email protected]

Disclaimer:Views expressed by contributors to Voice are not necessarily those of the Marlborough Chamber of Commerce.

Voice

Marlborough Chamber of CommercePO Box 658, BlenheimPhone 03 577 [email protected] | www.mcoc.org.nz

Publisher: Deborah Carter8 Penny Street, BlenheimPhone 027 848 [email protected]

HAMISH MACFARLANE GENERAL MANAGERMARLBOROUGH CHAMBER OF COMMERCE

Chamber UpdateContents• CHAMBER UPDATE P2

• BUSINESS AWARDS P3

• STUART SMITH MP P5

• THE IMPORTANCE OF HAVING A GOOD BACK-UP P6

• ROMALPA CLAUSES P8

• ASK THE ACCOUNTANT P11

• CHAMBER CALENDAR P12

• THE CHANGING FACE OF RETAIL P16

• FLIGHT 2015 - FINAL BOARDING CALL P17

• FIVE THINGS YOU CAN DO IN 2015 TO GROW YOUR BUSINESS PERFORMANCE P18

• TRUE STORY - INTERNET TAMES MOTHER NATURE’S FURY P19

• THE BUSINESS OPPORTUNITIES IN DOING GOOD P21

• DO I REALLY NEED SOCIAL MEDIA? P22

• MEMBER PROFILES P23

FRONT COVER : PHOTO BY RICHARD BRIGGS

WWW.RICHARDBRIGGSPHOTOGRAPHY.CO.NZ

[email protected]

Official members’ publication of the Marlborough ChamberOf Commerce

2015, lets pick a winner or twoHaving listened to our new MP Stuart Smith speak at the last BNZ lunch it was interesting to hear that a few of his wishes for Marlborough are the similar to the Chambers these being income generators.

Cycle and walk waysLast year the Link Pathway running from Picton to Havelock got the attention and funding it deserved from Council to enable completion, well done Council.

Having seen what a good cycle way like the Otago Rail Trail generates it begs the question what can we do to get a share of the pie.A well-researched proposal has been put forward that a new three day cycle trail be built running from Blenheim to the Clarence River. This will follow side roads such as the Redwood Pass as well as having some purpose built tracks.

Internet speed and regional coverage To remain competitive with other regions we need to keep improving speed and coverage. The Chamber has prepared a business model of “how to” with outcomes for Central Government and Council to consider.

Who pays? Well one way or another Central and Local Government are financed by business so it is a fair and natural expectation that they get support back when needed.

Funding aside it will need a collaborative effort from all those who can effect change.

How does Marlborough compare to the rest of NZ - At a glanceMarlborough’s economy over the last ten years grew at 1.9% while the rest of the country grew at 1.8%. In 2014 our GDP grew by 4.4% while the rest of NZ grew at 2.5%. That along with high employment is a sound result.

Population growthOr lack of it and the implications that go with this are a concern. Ten year average for population growth in Marlborough is 0.5% while the rest of the country is 1%. Our aged population which is at 20.9% over 65 is way higher than the national average of 14.4%

Standard of living Wages are lower than the national average but this is offset by fuller employment and the lower cost of housing. Average house price in Marlborough is $306,775 as opposed to $454,275 for the rest of NZ. Data from infometrics

Business AwardsWhat a fantastic night on Friday at the Marlborough Convention Centre. Massive congratulations to all our winners, especially Focus Labour Solutions who took out the title of Westpac Supreme Award Winner, as well as the Wallace Diack Chartered Accontants Titan Business Award and Southern Water Engineering Investing in People & Skills Awards. Take a look at the photos and all the other winners over the next couple of pages.

Thank you to all our sponsors - we couldn’t do it without you. Westpac, Marlborough Express, Forté Management, Wallace Diack Chartered Accountants, NZME., Marlborough Lines, Trustpower, New Zealand King Salmon, pcMedia, Fuji Xerox, Steamcleanz, Richard Briggs Photography, Marlborough Convention Centre, Crombie Lockwood, Scenic Hotel Marlborough, Saint Clair Family Estate, Marlborough Light & Sound, Southern Water Engineering, McCormick & Co and our fabulous wine sponsors, Wither Hills, Cloudy Bay, Spy Valley, Johanneshof, Clark Estate, Clos Henri and Hunters. Thanks also goes to all members who kindly gave prizes Marlborough Tour Company, Dodson Street, The Honey Collection, The Yard Bar, Makana, Bartercard, WitherHills and La Vosh.

Voice PA G E 3

HAMISH MACFARLANE GENERAL MANAGERMARLBOROUGH CHAMBER OF COMMERCE

FOCUS LABOUR SOLUTIONS

WINNER Westpac Supreme Award

WINNER Wallace Diack Chartered Accountants Titan Business Award

WINNER Southern Water Engineering Investing in People & Skills Award

Barbara Mortensen and Craig Mills

GIBB’S ON GODFREY

WINNER Marlborough Express Emerging Business Award

Liz Buttimore with Steve Mason (MEX)

CLOUDY BAY CLAMS

WINNER Marlborough Lines Adding Value to Marlborough AwardWINNER PC Media Innovation Award 2nd Place Wallace Diack Chartered Accountants Titan Business Award

Isaac Piper with Kelvin Deaker (Marl Lines)and NicolenePedersen (MCOC)

WILKES RESOURCE MANAGEMENT SOLUTIONS

WINNER Forté Management Powerhouse Business Award

Steve Wilkes with Tony& Helen Smale (Forté)

JULIA’S HERBAL HEALTH

WINNER New Zealand King Salmon Environmental Award

Julia Davidson with Grant Rosewarne (NZKS) & Nicolene Pedersen (MCOC)

MEATERS OF MARLBOROUGH

WINNER Trustpower Customer Service Award

Mike Newman & Karen Morris

Prosper2nd Place Forté Management Powerhouse Business AwardHighly Commended Trustpower Customer Service Award

G&S Foods 2nd Place Marlborough Lines Adding Value to Marlborough Award2nd Place New Zealand King Salmon Environmental Award 2nd Place PC Media Innovation Award

AvantiPlus Blenheim2nd Place Southern Water Engineering Investing in People & Skills Award

SPCA Highly Commended Trustpower Customer Service Award

Edwin FoxHighly Commended Marlborough Lines Adding Value to Marlborough Award

Asset InsuranceHighly Commended Marlborough Lines Adding Value to Marlborough Award

PA G E 4 Voice

Westpac Marlborough Chamber of Commerce Business Awards 2015

All photos by Richard Briggs

Voice PA G E 5

For over a quarter of a century Nike have used the words ‘Just do it’ as their tagline. Now is the time for all of the interest groups in Marlborough to do the same if we are to achieve a genuinely connected community.

Recently I had the privilege of being a guest speaker at a Chamber BNZ Speaker Series lunch and in that speech I outlined three projects I wanted to see progress in my first term as your representative in parliament. These were the creation of an Intelligent Smart and Connected Community, to make progress on coastal shipping out of Picton and to see the expansion of the national cycleway initiative.

The above will be of direct benefit to all sectors, social and economic, in the region.

I read recently that the most connected community in Europe is possibly a small rural area in Lancashire, England. The article said that most commercial ISPs talk about ‘superfast broadband’ but this community was ‘hyperfast broadband enabled’, running at gigabit speed. What was really interesting was that the community didn’t wait around for it to happen, they recognised the need and achieved this outcome for themselves by working together as a community.1

I applaud the MDC’s vision statement re our region being smart and connected. An integrated and transparent approach to this, coupled with government assistance will help make the dream become a reality.

The benefits of high speed connectivity are well documented. There is a strong correlation between broadband penetration and growth in GDP. In a region like Marlborough, we are well placed to benefit from expansion of fibre, wireless and improved connectivity via network upgrades and other improvements.

The Hon Amy Adams, Minister for Communications, recently announced an extension to the Rural Broadband Initiative (RBI). This will focus on enhancing connectivity for areas that fall outside the UFB extension. She asked that local governments, like Marlborough, begin thinking about ways to demonstrate how broadband infrastructure will benefit their communities in terms of economic and social development.

The Ministry of Business, Innovation and Employment will be leading the consultation process with local government. Whilst details of the actual policy have yet to be finalised, now is the time for Marlborough to develop a strategy to ensure that our voice is heard and that a plan is acted upon.

I am keen to see this happen and to act as a facilitator to get the parties together to make a submission to government. It makes sense to see the Chamber of Commerce, the Marlborough District Council, the DHB, Marlborough Lines and other interest groups working together on this.

Many businesses also require good transport and communication links. It is for this reason that I want to see progress made re the development of Picton as a coastal feeder service to places like Tauranga and Auckland. This kind of service is likely to provide transportation of freight at a reasonable cost. I hope to talk more on this subject in my next column.

Tourism is also important to our economy. The New Zealand Cycle Trail is now well established as a series of interesting and enjoyable cycle routes for national and international travellers. The Central Otago Rail Trail and Queen Charlotte Track are on the ‘bucket list’ of many. I am keen to see the extension of cycle ways in Marlborough to capitalise on this form of high value tourism.

Let’s do it!

Contact: Stuart Smith MPE [email protected] Ph 03 579 3204

1. http://www.forbes.com/sites/alisoncoleman/2014/02/06/europes-fastest-rural-broadband-network-british-farmers-are-digging-it/

STUART SMITH MP

Authorised by Stuart Smith MP

Connected Community

PA G E 6 Voice

The importance of having a good back-up

When selecting a back-up product there are many questions you need to ask. The old days of purchasing a tape drive where all you had to worry about was getting the right capacity have gone. Now the world of Cloud computing offers a range of new and advanced solutions. So how do you make sure you get the right one, and what are the key questions you should ask? pcMedia have been offering Cloud based back-ups for nearly five years and have a full range of products and solutions to meet every business requirement.

Who needs a back-up?A back-up is a basic form of business insurance and with many businesses being unable to operate without their IT, back-ups need careful consideration. Many of pcMedia’s Cloud based IT solutions have back-ups included as part of it. Many of these are based around Microsoft’s Office 365 platform and this is included in the cost. For small businesses without a server, often a move to these services are extremely cost effective and solves the back-up problem. For businesses who have on-site storage of data (e.g. have a physical server on-site) then a back-up is essential.

Where is the back-up stored?Where the data is stored and the security wrapped around that data is key. You need to consider the location of the back-up and why you have it. Most businesses with an off-site Cloud back-up have a copy of their data locally on-site, this is for fast on-site retrieval of deleted files. However in the event of a disaster, where should the back-up be? A localised disaster (for example a fire in your premises) is significantly different from a regional disaster (e.g. earthquake) where having your Cloud back-up stored in the same town is probably pointless. A regional disaster is likely to knock out local power and connectivity so having your data in the same town doesn’t offer much in the way of security or redundancy.

This is why pcMedia offers a range of locations, from local Blenheim based storage, to locations in Nelson and Palmerston North, as well as Australian centres in Sydney and Melbourne.

Most businesses in the region use either the Nelson or Palmerston North centres (or both). The biggest requirement for Blenheim based storage comes from business outside the region looking to store their back-ups in New Zealand away from their location.

How can you access the back-up?It’s great having a back-up, but now what? How do you access the files to get yourself back up and running? All our data locations provide us with the option to restore your back-up as a full Cloud server, this means in a matter of hours we can have your server (or desktop PC) back up and running and securely accessible from anywhere with an internet connection. Just having the files able to download is great, but in the event of a disaster what are you going to download them to and how long is that going to take?

How secure is the back-up?Security of back-ups are something often forgotten or overlooked. We ensure our back-ups are all fully encrypted so no one can access them, and they are stored in secure data centres which restricts access to them and are monitored 24 x 7.

Does it work?The proof in the pudding of any back-up is, does it work? All our Cloud back-ups are software monitored to make sure they are operating. However, as an extra level of protection, one of our technicians manually checks each back-up weekly to check that files can actually be restored.

How much does it cost?Cloud back-ups are becoming more cost effective. We have a relationship with a range of ISP’s (Internet providers) who allow free data to and from our centres (an average server back-up can use 500GB of data each month which can be costly) which makes them extremely cost effective. With prices starting from $95 per month, can your business afford not to?

Voice PA G E 7

Ask the Accountant

DISCLAIMEREvery care has been taken in the preparation of answers provided and in the preparation of the general information. However, the Q&A service is intended to provide basic guidelines and information based on given fact scenarios and is not intended to constitute accounting, tax, legal, investment, consulting or other professional advice or service.

BY MICHELLE GAMMIE-CATTERICK ACA

Question:A company that we sell our products to under the normal terms of trade was recently placed into receivership owing us money. The receiver has advised that unsecured creditors are likely to receive a pay-out. We are an unsecured creditor.

Can my company claim a deduction for the invoices that remain unpaid? If so how do we go about writing-off the bad debt?

Answer:The debt has arisen from the sale and purchase of goods under the normal terms of trade. It appears that it is a short term agreement for sale and purchase and is an excepted financial arrangement. Therefore under section DB 31 a deduction is permitted to the extent that the debt is written-off as bad in the income year. Yes, you should be able to write the bad debt off.

When is a debt bad?A debt is considered bad when a reasonably prudent person would determine there is no reasonable likelihood that the debt will be paid at the time of writing-off the debt. The requirement is that the debt must be more than doubtful. There is no requirement for you to take steps to recover the debt; however a prudent business person would take steps to recover the debt. In your case it appears very unlikely that the debt will be recovered as there is insufficient cash to pay the unsecured creditors.

What your company must do to write-off the debtThe debt must be written off in your accounting system. There must be written evidence of the debt having been written-off. The year in which the debt is written-off determines the year in which you will be entitled to a tax deduction. You should look to write-off the debt in your system by 31 March 2015 to obtain a deduction in the current year.

For completeness, if your company receives a payment from the receiver after the write-off, this will be taxable income to your company.

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PA G E 8 Voice

Romalpa ClausesBY JENNY MARREN

Jenny Marren, a staff solicitor with Gascoigne Wicks e: [email protected]

GOODS TODAY, PAY TOMORROW – HOW CAN YOU PROTECT YOUR GOODS PENDING PAYMENT?

Consumers want to walk away with goods on the promise to pay later. Are you offering your customers that luxury?

If so, you may be at risk of non-payment for those goods, in addition to the loss of those goods.

For example; in Blenheim, a shipment of wine is sent to a purchaser in Auckland on the basis that payment is to be made later. When those goods arrive the purchaser is declared bankrupt. Those goods are now in the possession of the receiver and go into the general asset pool of the purchaser to be divided among creditors. You know you aren’t the first in the creditor queue and it is likely you will have to walk away from the goods and absorb the loss.

The question then is how do you protect yourself when goods have been supplied but not paid for?

Reserving title in goodsHaving terms of trade for the sale of goods is important. A “Romalpa” or reservation of title clause in your terms of trade can provide a seller with a safeguard for goods that have been provided to a debtor who has not paid for those goods in full. Under a Romalpa clause the seller retains ownership of the goods until they are paid for in full, but the buyer is allowed to take delivery of the goods.

Applying this to the above example, on arrival the shipment of goods would still be owned by you and, other relevant aspects of creditor law aside, would be required to be returned to you if payment could not be made.

The addition of a Romalpa clause to your Terms of Trade may be a relatively low cost solution to a big problem.

Some of the provisions of the Consumer Guarantees Act 1993 cannot be contracted out. Those mandatory obligations may limit the effectiveness of a Romalpa clause in some situations. You should discuss this with your solicitor to see whether a Romalpa clause is suitable for your business terms of trade.

Voice PA G E 9

Romalpa clauses and the PPSAThe Personal Property Securities Act 1999 (“PPSA”) offers protection and enforceability for creditors who have an interest in personal property, which is created to secure an obligation. This is a “security interest”.

A Romalpa clause is recognised as a security interest. Using the above example, the seller has a security interest in the shipped goods.

A Romalpa clause has limited effect against other creditors.

In order to benefit from the retention of title and gain priority over other creditors, the seller needs to register his/her interest on the Personal Property Securities Register (“PPSR”). As a general rule, registered security interests gain priority over unregistered interests. Priority between registered interests is usually determined chronologically, with the first registered interest gaining priority.

You have a registered Security Interest, what next?

1. Attachment - You need to ensure that the security interest has “attached” to the purchaser’s personal property (“collateral”). Attachment occurs when value has been given by the seller (“the secured party”), the debtor/purchaser has rights in the collateral, and the security agreement between the parties is enforceable against a third party (a standard set out in the PPSA which encompasses the enforceability points set out above). Where there is a Romalpa clause, attachment occurs no later than when the debtor/purchaser obtains possession of the goods.

2. Perfection – Perfection of a security interest requires the security interest to be attached (as above) and either a financing statement has been registered on the PPSR or the secured party has possession of the collateral. In the above example, the wine has left the seller’s winery so the seller does not have possession. Registration of the security interest on the PPSR is essential.

Note that there is an exception for goods under $2,000.

3. Priority? If there is no other way of determining priority of security interests in the same collateral the PPSA sets out basic priority rules. In summary:

• A perfected security interest has priority over an unperfected security interest.

• Priority between perfected security interests will be given to the first secured party who had either registered a financing statement, taken possession of the collateral or had achieved temporary perfection.

• Priority between unperfected security interests will be determined by the order of attachment of the security interests.

4. But what about the Bank?A customer’s bank may have a registered financing statement over all of a customer’s present and after-acquired property. This could be called a “general security”.

Does the bank’s general security interest trump other security interests? Not always.

Under the PPSA a Purchase Money Security Interest (“PMSI”), may have priority over other registered security holders.

A PMSI is a security interest taken in collateral by a seller to the extent that it secures the obligation to pay all or part of the collateral’s purchase price. For example if credit is provided to the debtor so they can purchase the item, as is the case in our example.

A PMSI has priority over a non-purchase money security interest in the same collateral if the PMSI is perfected not later than 10 days after the day on which the debtor, or another person at the request of the debtor, obtained possession of the collateral.

In our example, the purchaser’s bank has a general security over all of his/her present and after-acquired property. The purchaser bought his/her wine from you on credit. If you have registered a financing statement in the right time frames, your security interest in the wine has priority over the Bank’s security interest and you can recover your shipment of wine.

A PMSI offers you, as creditor, the greatest protection.

On reflection: • Are your terms of trade up to date? • Do you register financing statements against debtors

who have possession of goods they haven’t paid for? • Are you giving yourself the most protection possible

against other creditors?

If the answer is “no”, or “I don’t know”, contact one of your Lawlink solicitors today.

PA G E 1 0 Voice

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Voice PA G E 1 1

Local Cloud Backup Service from MCN

Managed Computer Networks have just launched a new service to their clients: a local cloud-based offsite backup service that gives their clients control and security over the total backup spectrum at an affordable price.

Why is being able to see this backup spectrum important?

“In the past, we were only able to see one end, which was where the backups were being generated; we couldn’t actually see where it was going to (in the cloud) and in what state it was arriving,” says Azher Mir, MCN’s Managing Director. Through providing a local cloud, MCN can ensure that clients’ information has arrived to their data centre correctly, and that it has reconstructed the information in its entirety.

So if it’s good that the cloud is ‘local’, where is it otherwise and why is that not ideal?

“The perception is that the cloud is a secure location and that because we don’t know where it is, then nobody should know where it is. That is completely the wrong way around,” explains Azher. “The cloud is in a piece of hardware sitting somewhere in the world with traffic going from one place to another via any number of different computers. And any one of those computers could be monitoring what’s going through it.”

MCN’s cloud, on the other hand, is located in the Marlborough region and to address the security issue, MCN encrypt the information at both ends of the highway, requiring a password to deconstruct and reconstruct the information held within a file. “In this way, even though the information may travel across all sorts of different places, we know that nobody else can get into it; it’s your personal cloud and we know where it is,” says Azher.

MCN’s local backup system also enables easier compliance with IRD record keeping obligations, which can be tricky when financial information is stored outside New Zealand.The time taken to fix issues is also impressively truncated from the 3-6 days it typically took to receive a ‘seed backup’ from a data centre located in Auckland or Sydney, to a mere day because the data centre is local. This means there is less opportunity for something to go wrong (through backups not occurring).

How much does this new, local, secure backup system cost compared to the cloud services that are currently available?

“We charge one fee - $95.00 plus GST per server per month; the amount of data consumed is irrelevant,” says Azher. “Knowing how much it’s going to cost for your backup helps with budgeting.”

With the explosion in popularity of mobile devices and our insatiable thirst for information anywhere anytime, demand for cloud-based storage has soared in recent years. It’s also true that data usage will only increase. “We wanted to offer our clients no data cap and a fixed fee so that they don’t have to worry about IT budget blow-outs”, says Azher. That’s peace of mind.

LOCAL CLOUD BACKUP SERVICE

No data cap! No hidden costs Known costs for easy budgeting Local control of data backup Encryption for security One fee per server

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: www.mcn.co.nz

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PA G E 1 2 Voice

March 2015Monday Tuesday Wednesday Thursday Friday Saturday Sunday

1

2 3APM 1 - Forte Management

4Part 2 - Forte Supervisors

5BNZ Speaker Lunch - Tony Alexander

6Westpac MCOC Business Awards Gala Dinner

7 8

9 10 11 12BNZ WIB at Cinammon House

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MCOC Events Calender

Voice PA G E 1 3

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PA G E 1 4 Voice

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Voice PA G E 1 5

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PA G E 1 6 Voice

Local Cloud Backup Service from MCN Managed Computer Networks have just launched a new service to their clients: a local cloud-based offsite backup service that gives their clients control and security over the total backup spectrum at an affordable price.

Why is being able to see this backup spectrum important?“In the past, we were only able to see one end, which was where the backups were being generated; we couldn’t actually see where it was going to (in the cloud) and in what state it was arriving,” says Azher Mir, MCN’s Managing Director. Through providing a local cloud, MCN can ensure that clients’ information has arrived to their data centre correctly, and that it has reconstructed the information in its entirety.

So if it’s good that the cloud is ‘local’, where is it otherwise and why is that not ideal?“The perception is that the cloud is a secure location and that because we don’t know where it is, then nobody should know where it is. That is completely the wrong way around,” explains Azher. “The cloud is in a piece of hardware sitting somewhere in the world with traffic going from one place to another via any number of different computers. And any one of those computers could be monitoring what’s going through it.”

MCN’s cloud, on the other hand, is located in the Marlborough region and to address the security issue, MCN encrypt the information at both ends of the highway, requiring a password to deconstruct and reconstruct the information held within a file. “In this way, even though the information may travel across all sorts of different places, we know that nobody else can get into it; it’s your personal cloud and we know where it is,” says Azher.

MCN’s local backup system also enables easier compliance with IRD record keeping obligations, which can be tricky when financial information is stored outside New Zealand.

The time taken to fix issues is also impressively truncated from the 3-6 days it typically took to receive a ‘seed backup’ from a data centre located in Auckland or Sydney, to a mere day because the data centre is local.

This means there is less opportunity for something to go wrong (through backups not occurring).

How much does this new, local, secure backup system cost compared to the cloud services that are currently available?“We charge one fee - $95.00 plus GST per server per month; the amount of data consumed is irrelevant,” says Azher. “Knowing how much it’s going to cost for your backup helps with budgeting.”

With the explosion in popularity of mobile devices and our insatiable thirst for information anywhere anytime, demand for cloud-based storage has soared in recent years. It’s also true that data usage will only increase. “We wanted to offer our clients no data cap and a fixed fee so that they don’t have to worry about IT budget blow-outs,” says Azher. That’s peace of mind.

LOCAL CLOUD BACKUP SERVICE

No data cap! No hidden costs Known costs for easy budgeting Local control of data backup Encryption for security One fee per server

Call us today for your personal cloud backup 0800 626448

64-66 High Street, Blenheim P: 0800 MCN 4 IT (0800 626 448) Technical Support: [email protected] Accounts: [email protected]

Data security Data limits or Budget blow-outs

: www.mcn.co.nz

No more concerns about

JUST $95 PER SERVER PER MONTH

0800 626 448

The changing face of retailBY HUGH STEADMAN

Looked at decade by decade, the rate of change in the retail sector appears to be accelerating. At the end of WWII, the small shop and open-air markets, together with the odd department store in the big cities, totally dominated the scene. Other than the occasional door-knocking salesman selling brushes etc. and the butcher’s van visiting outlying villages, the direct-selling sector was almost non-existent.

In the decades following the war, chain stores expanded their reach into every urban centre and small food retailers came under increasing pressure from supermarkets and then, from hyper-markets. The mass market developed and with it came an increasing depersonalisation of the cross-counter relationship between the seller and the buyer. To move their goods, manufacturers had increasingly to rely on brand establishment through mass media advertising. This was the hey-day of the advertising agencies. The price manufacturers paid for their services, added substantially to the cost of each item on the store shelf.

In the USA, at the fore in all retail innovation, manufacturers started to experiment with alternative retail models that could by-pass the expense of media advertisement and the overhead tied up in retail premises. Over this period, direct selling, through catalogues (now largely supplanted by the Internet, at least for durable goods) and party plan, became a favoured route to market for many manufacturers. The money saved could be recycled in enhanced R & D, leading to better quality products and in rewarding a workforce, who could work from home and whose income was directly related to the sales they achieved.

With the increasing deployment of computers around the 1970s, new possibilities arose, allowing complex reward calculations to be made. These could recognise the sales agent, not only for personal sales made, but also for sales made by other agents that they had recruited. Hence came into existence the retail system known as Multi-Level-Marketing (MLM.) Typically, a modern MLM structure, using state of the art software, will reward sales agents down to eight generations. Each agent in turn recruits other agents (their “down-line”) and establishes a “network” of agents, for whose training they are responsible and on whose sales, they earn a commission. The terms “Network Marketing” and “Referral Marketing” are now every bit as common as “Multi-Level Marketing” and refer to the same retail system.

As in any developing new frontier, among the early adventurers into the field, could be found the reckless and the greedy, who took the opportunity to scam a naïve public, which was unfamiliar with this novel retail sector. Some of these early networking companies would charge several thousands of dollars for the privilege of becoming one of their agents and insist on the purchase of massive quantities of retail goods, which no single individual could consume. The individual agent was therefore left to add a mark-up and on-sell to the next person down the line – and so on until someone ended up with a garage full of inconsumable and unsaleable goods. This type of retail racketeering soon earned the embryonic MLM industry the bad name of “pyramid” selling. Today, all advanced countries have strict regulation in place to prevent such pyramid-type scams.

Referral marketing, though still rather under-developed in New Zealand, is now a global phenomenon, which last year turned over in excess of US$100 billion. The modern referral marketing company charges a very modest joining fee, pays no reward to an agent who recruits a new agent and makes its profit through selling readily consumable goods, at modest prices, in small quantities, every month to an exponentially growing number of consumers.

Working from home and taking advantage of social media and modern IT, the successful agent who recruits and trains five other agents, who, in turn, each do the same down to eight generations, is soon earning a six figure monthly pay-cheque. North America and its cruise ships are full of millionaires, who have made their money through the referral system.

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Voice PA G E 1 7

Welcome aboard flight 2015—your aircraft is cleared for take-off. You are the pilot, you own the aircraft that is your business, the aircraft crew are your staff, and the passengers are your customers. This flight will be leaving on time regardless of whether your aircraft is prepared and airworthy, and you and your team are ready. Your destination is 31 December 2015. All your passengers are ready for an enjoyable flight. Your passengers aren’t looking for a bumpy flight—so, please, no airsick bags! Here’s how to delight your passengers for the flight experience of the year. You are the airline owner and priority one is making sure the aircraft is still in one piece at the end of the journey. Make sure the ground crew have carried out the required maintenance and any repairs. As the owner, it is your responsibility to make sure these are carried out properly. Cutting corners can save you money in the short term, but can wreck the plane, costing much more than you could possibly hope to save. It can also wreck your reputation, which means that your business may never recover.

You are the captain, the pilot and the buck stops with you. It is your responsibility to get the aircraft to its destination on time, in one piece, and avoiding as much turbulence as possible. Begin with the pre-flight checks. Does your aircraft have its airworthiness certificate? Look around you - is all your equipment in place and working properly?

Where are the crew—have they all turned up? Are they properly trained and know their jobs? Do they know how to deal with awkward and unruly passengers? Does everyone know how to use the equipment? Do they have the necessary equipment to do their jobs

properly? As the airline owner, make sure you have the right people in the right seats doing the right things, right.

Most importantly, where are the passengers? Have your passengers been assigned the right seats? Your best customers should be sipping champagne in leather seats listening to restful music in first class. No one should be languishing in row 70 of cattle class. So how do you know who your best customers are? You should know how much your customers are spending with you, how frequently they purchase and how often they advocate to friends and family for your business. Apply Pareto’s rule—the old 80/20 rule. 80% of your income will come from the top 20% of your customers—make sure you know who they are.

Assigning special perks to your frequent flyers like Air New Zealand is a good way to ensure customers know they are special to you. Remember to avoid bronze – no one likes to be a third category customer - choose something appropriate – gain inspiration from Air New Zealand’s Jade, Silver, Gold and Elite status. The more valuable perks and benefits should be assigned to your most loyal customers.

Finally, recheck your baggage from 2014 – ditch any tragic mistakes and low moments in the bins before check in, along with any excess baggage. You are now ready to enjoy the ride so sit down, strap in and turn on EVERYTHING you’ve got.

Susan PiketBarbican Training Centrewww.barbicantc.comT: 03 547 6138

Flight 2015 .... final boarding call

BY SUSAN PIKET

Susan Piket Jane Butler

Want more... Customers? Time? Money?

NO FEE real world training and coaching in Blenheim for businesses serious about getting ahead with Susan and Jane

03-547 6138 [email protected] www.barbicantc.com

PA G E 1 8 Voice

Five things you can do in 2015 to grow your business performance (and get some of your life back too)

Conventional wisdom taught us that productivity lay in the hands of the “workers”. Managers often felt and still do feel powerless to grow performance and productivity. Now there is irrefutable evidence that in today’s multi-cultural, multi-generational cross disciplinary fast evolving world of business, performance is actually a product of the culture that managers create and the web of relationships and trust that they build. That requires a change of mindset for managers and acquisition of new skills. Helping them do that is exactly what Forté Management specialises in. Drawing on research and our own experience working with hundreds of business people, here are five things we believe will help managers address their leverage and friction points:

1. Culture: In today’s multi-cultural, multi-generational cross disciplinary fast evolving world of business, managers need to be more intentional in the creation of organisational culture – more mindful of the impact of national culture on creativity, innovation and job performance. When culture and strategy come into conflict – culture wins EVERY TIME. Start by recognising that your business has a culture and that IT IS IMPACTING PERFORMANCE whether you’ve designed it or it has developed organically. Even then, as your business grows and develops your culture has to evolve in parallel. Strong positive cultures are at the heart of sustainable competitive advantage.

2. Communication: Why is it that when it comes to external communications, businesses have dedicated departments, agencies and consultants – yet internally far less attention is paid? Managers need to practice communicating internally with the same care and attention they apply to their external communications. In particular considerably more attention than is common needs to be applied to setting clear expectations and painting a vivid picture of what good performance looks like.

3. Actively manage staff performance: The structure of business plans hasn’t evolved much over time. (Maybe that’s why businesses

frequently look nothing like their business plans). In the meantime people have grown and grown in importance as we have moved from an industrial to knowledge economy. We think that staff performance is now so important that businesses should have a specific people performance plan. Here is the most important thing to understand when it comes to managing employee performance. The context and relationships that supervisors and managers create is the single most influential thing determining staff performance. This is not a “warm and fuzzy” – it is about hard cold business economics.

4. Learn to spot and manage conflict. We are astonished at the negative impact of poorly managed conflict in today’s workplace, how reluctant most managers are to intervene and the extreme discomfort that it causes so many. Perhaps it’s just that they haven’t got time to be proactive but whatever the reason there seems to be an increasing cost. Unresolved conflict, even when relatively minor has widespread negative impacts across entire teams and can spread like a wildfire throughout entire organisations.

5. Coaching for and by managers: Coaching is a management tool in tune with the 21st century. It is a facilitated process designed to help people explore and develop their full potential. It encourages staff to take responsibility for their own development and learning. It facilitates staff achieving levels of performance that may not have been possible if left to their own endeavours or conventional management approaches.

Written by Tony Smale, Consultant at Forté Management | Business Consulting Coaching & TrainingPhone 579 1010 or email tony@ forte-management.co.nz, www.forte-management.co.nz.

Tony is New Zealand’s specialist in the impact of national culture on creativity, innovation and overall business performance. That knowledge permeates all of the Practice’s consulting, coaching and training.

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BY TONY SMALE

Voice PA G E 1 9

BY DAHLIAN LAMYCO-FOUNDER / CTO

TRUE STORY: Internet Tames Mother Nature’s Fury

My fellow business owner, if your business is doing well right now AND you have a GUARANTEE from the Universe that things will stay that way, this article is not for you.

For the rest who understand that the only constant is change, read on...

The year was 2010. The setting - the bustling city of Christchurch, New Zealand. An ambitious and hardworking woman was looking forward to closing a half-a-million dollar deal with some foreign investors for a business that she had built from the ground up in three short years.

Negotiations had come and gone. Decisions had been made. All parties were happy with the terms. A date was set for the signing. From that vantage point, the woman envisioned the beginning of a future of financial stability for herself and her family.

Then, an unforeseen, unexpected, and utterly tragic incident occurred! Unbeknown to the woman, Mother Nature had other plans. The building housing the woman’s business was completely destroyed.

A large portion of her products were now gone. Employees had to be let go. In an instant, the rug was pulled from under her feet.

The future she had envisioned was floating away like a puff of smoke.

Fortunately, prior to this devastating blow, the woman had begun to take notice of the Internet as a means of extending the reach of her business.

She had had a simple brochure-style website created and linked to a memorable domain name. Now, with her brick and mortar storefront gone, this website became her lifeline in those desperate times.

With her limited resources and the help of a family friend, she converted the brochure-style website into an e-commerce one so that she could start selling her products online.

Slowly, ...quite slowly at first, the woman began to see some silver linings in the clouds of despair. The light at the end of the tunnel was getting brighter. The woman had a newfound respect for the Internet and its potential and was duly rewarded.

The Internet brought her the man of her dreams. Someone who would love her kids as his own. Someone who shared her ambition and her values.

Together they are building a business with far greater potential than the one that Mother Nature took away. A business with the Internet at its heart and a driving force to help other business owners experience the true value of having a branded web presence.

Happy are those with eyes to see the moral of this true story and to take action, for they shall not get left behind!

PA G E 2 0 Voice

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Voice PA G E 2 1

We live in a rapidly changing world. Here in Marlborough the pace of change may seem modest, but in many parts of the world it is a different story. Here we have a stable to declining population. Other regions, particularly in developing countries, have rapidly growing populations. There is a huge movement of people from rural towns & villages into the cities as they search for employment, education and a better life. Globally the demand for housing, basic infrastructure and services, energy, water and food is rocketing, as are the resulting waste streams.

In the developed regions of the world there is an increasing move away from carbon energy sources. Then we have the ‘Internet of Things’ which is joining things together making the world more “Smart and Connected.”

The scale of change needed is mind boggling and pressure is building to go up at least two gears. There are huge opportunities to grab some of the action – securing valuable new business while doing good for people and the planet. In their 2012 report ‘Expect the Unexpected: Building business value in a changing world’ The global business consultants KPMG state “The central challenge of our age – decoupling human progress from resource use and environmental decline – can also be one of the biggest sources of future success for business.” They estimate the opportunities run to many trillions of US dollars.

Others are seeing these opportunities and taking advantage of them. Dutch engineers are in demand worldwide to give advice on how to hold back rising sea levels. The Danish can’t make windmills fast enough to meet demand. The Swiss are wanted to help run efficient city infrastructure systems such as public transport & recycling. The Germans are often the preferred choice for the equipment and machinery needed. None of these countries could be thought of as low cost, so price is not a barrier, but value for money is increasingly the winner.

Here in New Zealand we are good at harvesting the land and oceans to efficiently produce high quality food & beverages, timber, salt, wool etc. We are good at thinking creatively to develop innovative solutions to new problems - including designing buildings and infrastructure which are tough and resilient against wild weathers, battering oceans and shaky grounds. We are good at educating our young people too. Do you think there is a demand for these things in other regions of the world? You bet there is!

What about Marlborough? I’m new in town, but I’ve already seen some great examples of niche expertise that I believe could be sold very well in other markets.

The Marlborough District Council’s “Smart Maps” information portal is world class and many local governments around the world would dream of having such a system. I’m sure they would also pay well to have such a system installed for them.

Blenheim businesses Flight Timber and Smart Alliances teamed up some years ago to design holiday resort building structures that are pre-cut here from sustainable timber and shipped out ready for local assembly in places like the Maldives. Apply this thinking to small simple housing units, add on some cladding, flooring and roofing and the possibilities increase significantly.

Cuddon Engineering manufactures world class freeze driers and aquaculture equipment. Recently they also made and installed innovative joints for an earthquake damaged structure in Christchurch.

I’m sure there are other examples here that are flying under the radar. Maybe the people involved haven’t thought there might be others willing to pay for these ideas/products/services. The world is changing and there is a big world of opportunity out there to generate new business by doing good. Let’s get amongst it Marlborough!

The Business Opportunities in doing goodBY NICK MEETEN

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PA G E 2 2 Voice

Do I really need Social Media?

‘I don’t have time.’ ‘I don’t know how.’ ‘Why is it important for me?’ ‘What about negative comments?’ ‘That’s okay I have x relative to help me out.’ These are some of the comments and questions I get about Social Media for business.

With 65% of Kiwis researching a business online before making a purchase, and 92% of people trusting recommendations from their peers, can you afford not to have an online presence? Whilst your website is a very important tool for your business, you also need to get your brand in front of people, make sure they are thinking about you and are able to find you, and the best way to do this is through Social Media. In New Zealand 63% of us are active on some kind of social media, this covers all age groups (with over 58% of people over 70 using social media) so your target audience will be there, and you need to be where your customers are.

Social Media is not just about socialising it is about people being social, for business this is about creating a community of followers, as Craig Davis, Chief Creative Officer of J. Walter Thompson puts it, “We need to stop interrupting what people are interested in and be what people are interested in.” This is particularly relevant with Social Media when people are bombarded with a lot of information, your brand needs to stand out. People are social beings, and companies are made up of people, so Social Media is definitely relevant for businesses, and will continue to be so for the foreseeable future.

If you are worried about opening up your business to the world of Social Media and comment, remember that people are already talking, and likely they are talking about you on Social Media – there may be mentions, comments, or reviews you don’t know about.

You want to be the one to monitor your brand and be in control of it. Not only will you know what is being said, but you will have the opportunity to respond in an appropriate manner.

When it comes to posting on Social Media, you need to fully trust the person, it is the same as talking to the press or to potential customers. While your cousin’s son’s girlfriend’s brother might be great at technology, do you really want him being the voice of your business? Would you trust that person to work on your company car, just because they know something about cars? Keep this in mind when you are working on your Social Media presence.

Brian Solis, a digital marketing analyst, speaker, and author, said “Social Media is about sociology and psychology more than technology”. We need to remember that each post is talking to our customers. Having a degree in psychology, as well as being proficient with technology, I have a unique set of skills to assist your business in becoming the best it can be on social media.

The first step to success in Social Media is know where your customers are, which social media channels are going to work for you. Then you need to know how can you best use them, what do your customers want to see, and how do you find things to post. These can be confusing questions, especially if you don’t have the technical experience to help you make that decision, which is where Button Help can become your business’ Help Button.

We offer Social Media introductory workshops, one platform focus workshops, advanced workshops, one-on-one consultations and individual training – chose what suits your business, then we’ll help you get to where your customers are.

BY BETH BARNES

Voice PA G E 2 3

Seng Engineering / ConsultancyKhalid SuleimanCivil Engineer

Marlborough is an area of varying environments, from the steep, high rainfall areas of the Marlborough Sounds to the flat and dry plains of the Wairau Valley. The area provides unique challenges for engineers.

With over 15 years experience, largely throughout Marlborough and in the Marlborough Sounds I have worked on projects from Kaikoura to the tip of D’Urville Island. I understand the Marlborough environment and ensure my engineering is both practical and economical.

It is essential to have a strong, collaborative working relationship with all parties involved in a project

Dealing only in consulting engineering, Seng Engineering Consultancy can provide you with a focused approach to ensure you get the best outcome. Contact me today to discuss your next project.

p: 03 577 5604m: 021 281 8889

e. [email protected]

Wilkes Resource Management Steve Wilkes

Steve is the Managing Director of Wilkes Resource Management Solutions Ltd, a Marlborough (New Zealand) based resource management consultancy.

Steve is a senior resource management professional who specialise in resource management planning, community consultation, policy development, water resources and sustainable land management. Steve has undertaken Assessment of Effects on the Environment, expert hearing evidence, expert Environment Court evidence and expert High Court evidence for a wide range of projects including irrigation schemes, marine farms and water abstractions, and as part of regional planning processes under the

Resource Management Act.

Steve has worked closely with numerous international and national wine companies to steer them through the many and varied resource management planning issues that arise.

In addition Steve provides resource management to advice to the pastoral farmers, marine farmers and foresters.

p. 021 668 477e. [email protected]

Member Profiles

Port Marlborough PavilionDale Ashworth

The Port Marlborough Pavilion at Endeavour Park is a brand new facility set amongst the green, bush-clad hills of Picton.

The pavilion opened in June 2013 and is focused on engaging the community in activity and providing a top quality, financially sustainable facility.

With a capacity for 220 guests comfortably banquet style, 500 cocktail style, and only two minutes from the stunning Marlborough Sounds, it is the perfect place to hold weddings, events and impress conference delegates.

The pavilion has been equipped with a full commercial kitchen, bar and the latest technology audio and visual equipment, including a custom designed roof for premium acoustics.

For further information you can contact the Pavilion Manager, Dale Ashworth.

a. 181 Waikawa Road, Pictonp. 027 2236 900

e. [email protected]

PainshiftErena Oliver A medical background in nursing with years of experience

working with the body’s energies enable me to offer client led/client focused sessions for healing priority, addressing the core causes of pain; physical, mental or emotional.

My passion stems from my own experience of overcoming pain, physical, emotional & mental. These practices were my salvation when conventional methods had failed to heal pain resulting from: Major surgery, Loss, Depression, Weight challenges, Relationship challenges, abuse and more.

In conventional medicine, doctors diagnose then treat illness, often with medications or surgery – masking symptoms not dealing with root cause. I assess your body’s resources, such as blood, lymph, and nerve supply correcting energy disturbances. Addressing root causes of stress or issues through balancing vital resources, shifting or clearing distorted beliefs and perceptions aids quicker recovery of health, greater wellness and a renewed joy for life.

p. 021 459 525 e. [email protected]

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MARLBOROUGH CHAMBER OF COMMERCE VOICE€¦ · PERFORMANCE P18 • TRUE STORY - INTERNET TAMES...

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Transcript of MARLBOROUGH CHAMBER OF COMMERCE VOICE€¦ · PERFORMANCE P18 • TRUE STORY - INTERNET TAMES...