Weekly Digest – 28 October 2020
Hello again – welcome to the latest edition of our Weekly Digest. Read on for the latest updates and some ideas that will help us all move forward.
NZ Exports Holding Up Despite COVID-19 Crisis
Latest figures by Stats NZ show a decline of $5.9 billion in imports and a $1.2 billion increase in exports for September 2020 compared to the same period last year. This resulted in an annual goods trade surplus of $1.7 billion, a reversal of its usual position.
Small Businesses Continue to Rebuild in September
The Xero Small Business Insights data for September showed that year-on-year revenue grew and the number of jobs rose in the small business sector.
Overall, small business revenue in New Zealand was up 3.4% in September compared to the same period in 2019. Meanwhile, the average number of small business jobs rose by 0.9% after declining by 1.4% in August. At present, small business employment is now at 1.8% below pre-crisis levels.
If you need help to bounce back stronger, drop us a message so we can share our small business expertise.
Job Numbers Up in September, Supported by Public Sector
The latest data from Stats NZ show job numbers rose in September 2020, largely due to an increase in filled jobs in public administration and safety.
Filled jobs increased by 7,266 to 2.2 million, after a similar rise in August. The public administration and safety industry had 4,558 more jobs compared with August. Meanwhile, the largest decline in filled jobs was seen from the agriculture, forestry, and fishing industry, which was down 2,633 jobs.
If you own a business which is still struggling to bounce back amid the COVID-19 crisis, get in touch with us so we can work out a plan.
NZ Dairy Farms Lure Local Workers With Free Meat, Milk, and Firewood
New Zealand farmers are offering unlimited supplies of free meat, milk, honey and firewood to tempt Kiwi workers onto remote properties.
The dairy industry contributes more than $15 billion in export dollars to the New Zealand economy and is the world’s largest exporter of dairy, producing 3% of milk.
If you own a farm and NZ and are struggling to fill urgent positions, contact us today for personalised business advice.
Financial Help For Small Māori-owned Businesses Extended
The $10 million Māori Trustee Top-Up Small Business Cashflow Loan Scheme, which has paid almost $1 million to Māori-owned small and medium-sized enterprises, has been extended until 31 December 2020.
Māori SMEs can apply if they have already received Inland Revenue’s Government Small Business Cashflow Loan. If they can prove Māori ownership and meet other criteria, they can apply for a further 50% of that loan amount from the Māori Trustee.
No repayments were required for the first two years, but the loan had to be repaid in full within five years.
If you need assistance with your application or would like to take advantage of other financial help you are eligible for, contact us today so we can guide you in considering your options.
Consumer Travel Reimbursement Scheme Opens to Travel Agencies and Wholesalers
Travel agents and wholesalers can apply for the Consumer Travel Reimbursement Scheme which was put in place to help Kiwis get back the money they are owed from cancelled international travel plans due to COVID-19.
The travel sector and the Ministry of Business, Innovation and Employment (MBIE) estimate around $690 million of New Zealanders’ money is locked up from cancelled travels, with around 85% related to overseas travel. Through this scheme, travel agents will be incentivised to recoup these funds for consumers.
Approximately $47.2 million will be allocated for this scheme, which involves paying NZ-based travel agents 7.5% of the value of all cash refunds they manage to recover for their customers and 5% of the value of all credits secured or rebooked for international travel.
Survey: Business Confidence is Improving
The latest Quarterly Survey of Business Opinion by the New Zealand Institute of Economic Research (NZIER) shows that business confidence has improved, showing an increase in demand over the September quarter.
A net 1% of businesses reported an increase in their trading activity, showing improvement from the net 37% reporting a decline in the past quarter. Companies are also more positive about hiring and investment. As demand increases, businesses are more optimistic about expansion and 16% are also looking to increase headcount in the next quarter.
If your business is still struggling, don’t hesitate to reach out to us so we can work out a plan for you to bounce back stronger.
Remind Your Customers to Use NZ COVID Tracer App
As a new COVID-19 case involving a marine engineer from Auckland who was believed to be infected through his work on a ship emerged in the community, businesses are urged to remind customers to use the NZ COVID Tracer App.
While this is not a silver bullet, the app is one of the tools that we can use for faster contact tracing and to prevent another wave of the virus.
As a business owner, you should take it as your responsibility to prompt your customers and remind them to scan the QR code displayed in your business premises.
Business Events Get Green Signal Across NZ
The confirmation of Auckland’s move to Alert Level 1 is awesome news for the business events industry. As Kiwis have been given the green light to meet, business events such as conferences, seminars, workshops, or team recognition events are now allowed.
In line with this, the Conventions and Incentives New Zealand has opened registrations for BE Reconnected, which is a free industry exhibition and networking day in Auckland on 1 December.
Free Expert Business Advice for Auckland Businesses
Auckland Tourism, Events and Economic Development (ATEED) has supported thousands of businesses affected by COVID-19 this year by giving them access to fully funded expert advice amounting to $10 million.
If you haven’t connected with them, now is the best time to get consultancy services in the following key areas:
- HR, employee relations and legal – including restructures, employment contracts, legal obligations and HR processes, and ownership structures
- Financial and cashflow management – including cashflow forecasting, business scenario forecasting, capital raising and debt restructuring
- Health and wellness – including health and safety plans, employee wellbeing plans and stress management coaching
- Business continuity planning – including crisis management, pivot strategies and business continuity plans or business resilience plans
- Marketing strategy – including plans for marketing, product launches, digital marketing and reaching new customers
- Digital enablement strategy – including social media strategy, ecommerce strategy, website optimisation, and digital customer journey mapping
- Business hibernation (for tourism businesses only) – including business debt hibernation processes and scenario planning
Those who haven’t previously accessed support from the Regional Business Partner have to register on the RBP website first. You would need your GST number and NZBN number to do this. Meanwhile, Auckland businesses already registered can email the ATEED Business Helpdesk for their application, even if initial support from the COVID-19 Business Advisory Fund has been accessed.
If you would like to chat about your business, please don’t hesitate to reach out to us. We can help you develop a plan for your specific situation.
How to Write a Business Proposal
So you’ve found a great opportunity to sell and you need to submit an impressive business proposal to convince your potential client to grant you the contract. It may seem overwhelming at first, but you can craft this document with a bit of a know-how and a good understanding of your business and what you can offer.
Below are the basic points to be included in your business proposal:
- Title page
This keeps your document tidy and gives a nice first impression of how you do business.
- Cover letter
Your cover letter should introduce your business and your proposal. It is recommended to keep it concise, friendly, and with a positive tone.
- Table of contents
It will let your potential client know right away what are the points included in the document.
- Executive summary
Present a high level overview of the problem you’re meaning to solve, overview of the solutions you will provide, the expected result, and a call-to-action.
Identify the gap and how you intend to fill this gap.
- Services and methodology
Go into the finer details of what products or services can get from you to address their needs. Provide a timeline to transform your proposal to reality and share a realistic delivery plan.
- Why hire us
Lay out what sets you apart from other players in the industry. Let your potential client know about your experience, expertise, relevant projects you’ve worked on, and case studies or testimonials from previous clients.
It is good to let the client know right on how much it will cost to execute what you proposed and what you expect the return to be.
- Terms and conditions
Outline what the client can expect from you and your business by agreeing to your proposal. Through the terms and conditions, you will also be able to set expectations regarding delivery dates and payments.
- Agreement and call to action
This section is where the client can formally agree to your business proposal. Add a gentle call to action to encourage them to sign.
In some cases, it is the client which provides the outline or template for the proposal. Regardless, when writing a business proposal, it is important to ensure that it shows your potential clients the value that you can add to their business. Be as detailed as possible regarding your plan and make it visually appealing for a positive first impression.
Get in touch
Contact us if you have any questions or want to discuss the next steps for your business.