Category: Growth Strategies

Preparing for your side hustle to be your full-time earner

Posted on by KWD

You love your side hustle and want to throw in your job and go full time. If you put the right things in place before you start, you will be more prepared for success. Read on for the 8 things we think you need to get right, before you throw in your job and scale your side business.

1. Cover your personal expenses

Your salary has always picked up the shortfall when your business isn’t making much money. When throwing in your salary, think about how you are going to look after your personal expenses (like rent/mortgage, food, transport, utilities etc) before you lose a secure income. Can your business sustain it? Have you got enough in savings to cover it if the business won’t?

2. Increased business costs

If you are scaling your business activities up, can you cover the extra costs until your sales start rolling in to pay for it? This is where a business loan may come in handy. Figure out what those expenses are with a cashflow forecast and take that plan to us and we will get the shortfall funded.

3. Is there a market?

You love what you do, but are you sure there is a market for the extra work you can put out when you go full time? This is called “demand”, is there demand for your offer?

4. Marketing plan

Where is this extra work going to come from? Do you have a plan for how you are going to bring in enough attention that turns into paying customers? And have you figured out if the cost of that will be profitable once you pay for everything that needs to be paid for?

5. Refined systems and processes

You need to make sure your systems and processes can handle extra workload. You might have been working from your home office or spare garage space, but is that going to still work when things blow up? What about the labour to get things done? Can they be more efficient so you can get more work done with the same resources? Or do you need to put things in place to handle that volume?

6. Pricing

When you’re earning a salary in conjunction with your business income, profit isn’t quite as urgent. Your salary can cover any shortfall and sometimes you can overlook the viability of your side hustle because it doesn’t hurt financially yet.

Well, if you’re going all in, you need to make sure your pricing is right so that all business costs are covered and that you are earning a profit you can live off.

7. Negotiate with suppliers

If you are increasing your business activity you may be a good candidate for better terms with your supplier. Now is a good time to get on better terms with them. Usually for low volume businesses, you have to pay cash on delivery, but for larger volume clients, pricing can be sharper and payment terms more favourable so in some cases you might sell the product before you have paid for it. This will make your cashflow perform better and keep your business thriving.

8. Surround yourself with the right people

If you are going all in, you need to live and breathe your purpose. No one understands that quite like someone else on the same journey. Make sure you are surrounded with others on the journey and people who build you up. Being self employed has its hard times, and quality people around you will help get you through.

We love all things business in New Zealand, and we want to see you do well. If you need help funding the next stage of your business journey, we would love to help. 0800 774 622

How To Save Thousands Every Month By Finding The Right Commercial Loan

Posted on by KWD

Succeeding in the business world takes money – but not everyone is fortunate enough to start their passion projects with the funding they need. So, what should you do if you are trying to build up your business but don’t have the money? The perfect answer for any smart, hard-working business owner is to apply for a commercial loan.

Some people may be wary of applying for loans because, naturally, they will need to pay the money back eventually. How do you smartly use your loan, and how do you get the best deal possible?

To up your chances and give your company a well-deserved boost, you should strongly consider working with an experienced loan broker. With their help, a good loan and smart business moves, you’ll see your company thrive.

How A Good Loan Can Save You Money

When you first hear, ‘a great business loan can save you money,’ you might be confused. You’ll have to pay back your loan with interest, so how is that saving you money?

In reality, getting the right commercial loan and working with smart loan brokers can absolutely save you a lot of money. Excellent loan brokers will be able to help you figure out how much money you should ask for and which lenders will be best for you. A fantastic benefit of working with a skilled broker is that they most likely already have some kind of relationship with the local lenders, so they’ll know the right way to speak with the lender that’s ideal for your situation.

If you try to get a loan on your own without the right knowledge and experience, you could make the wrong moves without realising it. People who do this often end up with loans that have far higher interest rates than they’d like, which means they’re losing money when they make that deal.

Working with good commercial loan brokers who have your best interests in mind will help you get a fantastic deal, which will save you money in interest payments over time. Of course, you’ll still need to pay back your loan with interest, but you’ll pay far less than an inexperienced person who doesn’t know what they’re doing.

How To Use A Loan To Boost Your Business

You know that the best way to save money and get a reasonable loan deal is to work with talented loan brokers, but that’s only part of the process; you still need to know how to use that loan once you get it. There are some steps you should take before you begin spending your money.

To smartly use your commercial loan, consider the following:

Plan Before You Spend. Always remember to take a good step back and view your business as a whole before you spend any money. Think about what your business needs the most, what will help you grow and if there are any problems that need fixing now. You may want to document your top priorities so you can get a full view of what you need to do and what is already done.

Proper planning and making smart moves are a big part of succeeding in any career. If you spend recklessly, you could find yourself burning through your loan at an alarming rate.

Use Your Money Smartly And Make Realistic Investments. It is only natural to want to go big and give your business the enhancements it needs, but remember to stay realistic. Your company might not be as big in real life as it is in your head yet – but if you make intelligent decisions, you’ll get there one day.

It’s recommended that you use your funds to do things that will improve your business and get you more customers. For example, you could buy new equipment that’ll boost your productivity, hire new workers, advertise your business and more.

Plan On How You Are Going To Repay Your Loan. Never forget that your commercial loan will need to be repaid. You may want to set aside a portion of your profits to pay back your lender as soon as possible while ensuring you save enough to keep your business growing.

How To Get An Excellent Loan For Your New Zealand Business

The very best way to ensure that you’re getting a good deal is to work with professionals who have experience, so why not boost your chances and work with our excellent team at Spinach? We have assisted many business owners like you, and we’d love to show you how beneficial we can be. Our services can help you get a good business loan that’ll save you money in interest payments and enhance your company.

Every business’s circumstances are different, and we look forward to hearing about what makes your company special. You can call us at 0800 774 622 for more information. Or, if you’re ready to apply now, check out our application page to get started.

With Spinach, you can help your business grow.

Little Known Commercial Loan Puts Cash in Your Hand For Any Reason Fast and Easy

Posted on by KWD

Starting and growing your own business is incredibly rewarding, but it can also be very challenging. Finding the help and funds to get your company off the ground isn’t always as easy as most would hope. While you should start slowly and build up your money over the years, you could also give yourself a well-deserved boost with an excellent commercial loan.

Business loans are a wonderful way for companies to get the help they need to grow their businesses. Starting from the bottom and diligently working your way up all on your own can be very stressful and incredibly time-consuming; why not help yourself by applying for a reasonable loan?

Why Should I Consider Getting A Loan For My Business?

As you can imagine, having more funds to work with is an excellent thing when you’re trying to run your own company successfully. But, a commercial loan isn’t simply someone handing you money and letting you off the hook – you will need to pay your lender back with a bit of interest.

This fact can easily make some people turn away from getting a loan. Some people may think that because they have to pay their loan back with interest, then they’ll save money by not getting a loan in the first place.

But, in actuality, getting a reasonable loan can help you make more money in the long run. A well-negotiated loan can offer you quite a few benefits, including:

You Can Grow Your Business Faster. Naturally, the most significant benefit of getting a commercial loan is using that money to grow your business. A big part of properly managing a company is working with your budget, profits and anything else that has to do with intelligently spending and saving your money. So, having a lot more money on your hands can be outstandingly helpful.

If you decide not to get a loan and instead try to save up your money, you may be waiting for profits to grow for months or even years. Managing your time well is just as important as managing your money well, so having an early boost is fantastic.

You Have Full Control Over Your New Funds. If you borrow money from friends, family, or investors, they might have set rules on spending the money they give you. But, with a commercial loan, you will have complete control over the money. You could use it on hiring new helpers, buying more inventory, replacing old equipment or anything else that you think would help you thrive.

You Don’t Need To Share Your Business’s Profits. Another downside of borrowing money from acquaintances or business investors is that they will usually expect you to pay off your loan and continue giving them money based on how successful you are. However, commercial lenders will not expect this from you. Once you have paid off your loan plus the interest you owe, all of your profits are yours.

How Do I Prepare To Ask For A Commercial Loan?

Getting a loan sounds fantastic, but it’s not as simple as filling out a form and getting all the money you want. It would be best to always prepare well before you apply for a loan because showing that you’re a serious and responsible business owner can help convince your prospective lender that you’re a reliable person.

So, some things you should do before you apply for any loan are:

Make A Business Plan. Before you ask anyone for money, you must have a plan for what you will use the money for. It would be best if you take some time to look at your company’s needs and determine how you could smartly use the money.

Check Your Credit Score. Potential commercial loan lenders will always look at your credit history to try and determine if you are a responsible person. So, knowing your credit score beforehand can help you better understand how to handle this subject.

Speak To A Professional Lending Broker. Working with an experienced broker can help you get the best deal possible. They can help you look through your options and find a loan that works best for you and your business. A good broker will also help you avoid common mistakes that can harm your business.

I’m Interested In Getting A Helpful Loan For My New Zealand Business, Who Can I Go To For Help?

If you want to get a commercial loan to help enhance your company, we encourage you to come talk to us at Spinach. We are New Zealand’s friendliest business loan broker, and we are thrilled to help business owners succeed and thrive. We have lots of experience with many different kinds of businesses, and we are confident that we can help you secure a good loan.

We make applying for a business loan simple and easy by helping you through the steps you need to take. Once you fill out our online application, we can start to assist you. For more information, you can also call us at 0800 774 622.

Give your business a well-deserved boost with help from us at Spinach!

10 Things Startups Should Know When Applying For A Small Business Loan

Posted on by KWD

Starting up your own business is thrilling and rewarding, but it’s also challenging. This is especially prominent if you do not have the funds to get your company off the ground. While you could slowly save up money and see your company grow in a few years, you could also get the help of an experienced business loan broker to help you get a small business loan.

But, applying for and getting a business loan is no easy task, and you should never go about it lightly. Whenever you apply for a loan, you should educate yourself to be prepared and responsible. When you deal with money, it would be best if you’re always smart about it.

What Should I Be Aware Of Before I Apply For A Business Loan?

A good business loan can be a fantastic way to boost your startup business. With the help of a business loan broker, you have a good chance of getting a loan, and then you can do what you need to do to grow your company. Then, when you see more profits, you can continue to thrive as you easily pay back your loan.

But, building up your company isn’t always that simple. If you want to do things right, there are a few things that you should know about before you start on any kind of application for lent money. If you are too hasty, you could end up in a bad situation that could even be costly.

Therefore, if you are considering getting a loan to help your business, keep these things in mind before you go to a business loan broker or lender:

1. You Need A Plan. To maximise your success, you should always have a plan. This includes planning out how your business will grow, what you will do with the money if you successfully get a loan, how you will pay the loan back and more. Your lender will probably also want to know how you plan on using the money, so you need to be prepared.

2. You Should Reflect On How Much Money You Need. Of course, when you’re asking for money, you should know how much you’ll need. When you’re determining this number, you should think about what you want the money for and how much that’ll cost.

3. You’ll Need To Have Your Business’s Financial Details Ready. Even if your company is new, you’ll need to have your details ready for your business loan broker and lender to see. This information will help them know more about you and where the loan’s money is going.

4. Your Business’ Credit Score Matters. A credit score is a great way to determine if a business is credible. Most lenders will always check your credit score when examining your details.

5. Your Personal Credit Score Matters As Well. Like your business’s credit score, your personal credit score also matters. This score will help lenders determine if you’re trustable with your money.

6. If You Put In Too Many Applications, Lenders Could See This As A Bad Sign. Some people may be tempted not to see a business loan broker and simply send in many applications to different lenders to get more money. But, this can be a red flag to lenders.

7. Not Ever Lender Is The Same. Every bank and lender is different and could offer good or bad deals. Because of this, you should never go with the first lender you find unless you really know they’re ideal.

8. There Are Different Kinds Of Loans. Like lenders, there are several different kinds of loans for various situations. It’s essential for you to understand what kind is best for your company.

9. Read Everything Thoroughly. Applying for a loan affects you and your business, so you don’t want to get caught off guard by the small print. Always read every document you get so you fully understand what you’re getting into.

10. An Experienced Business Loan Broker Can Make All The Difference. If this is your very first time applying for a loan, the process may seem confusing and complicated. So, seeking help from a professional loan broker can genuinely help you financially and mentally.

I Want To Apply For A Small Business Loan, Where Can I Find Help?

Dealing with loans can be very difficult and stressful – but a friendly and understanding loan broker can help you through each step. Our team at Spinach excels at assisting New Zealand businesses with loan applications, and we’re here for you if you need us.

Applying for a loan may seem difficult at first, and you may be tempted to not apply for one at all. However, a loan’s funding can be what you need to truly turn your startup into a success. For more information on how you can successfully get a loan, please visit our contact page to get in touch with our helpful team.

Give your startup the boost it deserves with assistance from our knowledgeable loan brokers at Spinach.

Commercialising your Intellectual Property

Posted on by KWD

Commercializing IP

Commercialization is the process of introducing a new product/service into the market. It means making an idea or concept into a real business opportunity. For example, you have a new business idea for a new tool to help with trades. In order to go through the commercialization process, you will need to undergo a process of market research, development, consultation, drawing up business, distributing, and marketing plans, prototyping, and protecting your intellectual property before you make it commercially available in the mass market.

Following are some general steps involved in the commercialization process:

1. Describing the Product or Service

A clear and concise description of the product/service is written in the first step. The description should be easily understood by a person who is unfamiliar with the concept and should demonstrate the benefits and features of the product/service.

2. Protecting Intellectual Property (IP)

Before you talk to others about your business idea, it is crucial that you protect it. You will need to find the method of IP protection that is the most suitable for your business and apply for it. It is important that you make sure that any third-party that is discussing your idea or product with you will not disclose confidential information.

3. Market Research

The next step is to research the market so that the market, competitors, and customers that the new product/service will face are identified. You will need to use a marketing plan to draw up your strategy so you can identify and reach your customers. It is also very important that you confirm that your product fills a need and has a competitive advantage. Furthermore, the product’s viability needs to be financially evaluated. You will need to include detailed financial projections and cost estimates in this plan. These estimates will be crucial as you look for money from banks or other sources to support the product/service production.

4. Identifying Commercialization Pathway

A plan for product development is also needed that includes how the product will be released to the public. Should the product technology be developed and produced by the technology owner, licensed to someone else, or sold to someone else to develop? You will have to make preliminary estimates of the market size as well as its willingness to accept the product. You will also need to determine the costs of the full development of the product. Your choice of licensing, assignment, manufacturing, or joint venture may have an impact on your future strategy. For instance, if you are thinking of using overseas manufacturers for your product’s production, you will need to identify the key issues such as freight and distribution, quality control, etc.

5. Refining the Product

Once your product is introduced for the first time, you may need to refine it. You will also want to protect the intellectual property involved in the development of the product, finalize its design, test the product, and add/improve any features to make the product more marketable.

6. Developing a Business Plan with a Commercialization Strategy

Additional resources may come in handy at this point in the commercialization process. You may need to consult a professional to acquire financing, develop company structure or business plan, or create a marketing plan for your product. You may determine that you need to finalize legal agreements and partnerships. Market and product testing are ongoing during this stage of the commercialization process.

7. Exploring Funding Options

Depending on the nature of your concept or product, key funding options that you may consider include:

  • Crowdfunding
  • Grants
  • Business loans
  • Other sources of financing such as investor groups.

8. Business Growth Opportunities

Assuming the product is well-accepted in the targeted market, you may want to develop your business to include the expansion or acquisition of manufacturing facilities, financial analysis, marketing and promotion, strategic partnerships and planning. You will need to reevaluate your resource needs and organizational structure. Assuming that your business is prospering and growing, it may be appropriate to pursue improved technology or new products. You may also need to add staff. As your business grows, you will need to continually evaluate what you need to take advantage of the opportunities you might encounter in the future.

Most of the things we take for granted nowadays begin at an inventor’s bench. Achieving such success is not easy but once an innovation yields desirable results on the market, it is well worth the effort required to get it there.

9 Ways To Get The Best From Your Staff

Posted on by KWD

Running a company is not just about sales and profits but also about proper human resource management. When it comes to successful organization there is no task more important than developing a solid employee structure. Your employees are your most valuable asset and an integral and vital part of your business. Therefore, you should know how to get the best out of them.

Your staff must be motivated to do what they are required to do. Following are some ways in which you can get the best out of your staff:

1. Communication

Good business owners will always make sure that the communication between them and their employees remain open. A manager/leader who talks to staff on regular basis will always be respected more as opposed to the one who rarely communicates with his staff. The relationship between an employee and a business owner needs to be developed and cultivated over time. Ensuring good communication is the way to become a better leader.

2. Criticism

While criticizing your employees openly in front of others may give you a feeling of power or authority, it won’t do nothing for the self-esteem and credibility of the employees. Criticism should be constructive and it should be delivered in private and in such a way that your employees have a chance to respond.

3. Respect

Respect for your employees means acknowledging their presence, disregarding their status or position, realizing their personal worth, and accepting their individuality. You and your employees are still human. If you expect your staff to be like robots in carrying out every task, then you will soon realize that it’s a very poor method of management. Treating your staff right will result in your employees respecting you in return and getting motivated to perform the required tasks more efficiently.

4. Empowerment

If you want your staff to perform well, then you must provide them with the expertise, training, tools, knowledge, and confidence so they can carry out the required work to a competent level. Employees who are not empowered to perform are likely to end up stressed out as there is no clear direction. As a result, their performance will suffer. As a business owner, it is your responsibility to make sure that all your employees are knowledgeable and confident to carry out their tasks.

5. Incentive

Every employee has deadlines or targets to meet. To get your staff to perform better, it is recommended that you put some incentives in place to reward effort and hard work. This will result in your employees exceeding the required targets.

6. Flexibility

When it comes to accommodating the needs of his staff, a good business owner should be flexible. Flexibility can become a great attribute which you can use to get the best out of your staff, as long as your employees do not abuse this.

Recognition

An employee must be recognized if he performs well, especially on a challenging or difficult task and where he has gone above and beyond what was expected of him. When consistent effort of an employee is not praised or recognized, it is discouraging and deflating for him. The employee will feel that there’s no point in putting more effort than his colleagues if the team leader is not going to acknowledge it.

8. Trust

A good leader/manager trusts his employees to carry out their duties without constant monitoring and supervision. As long as the staff does not betray this trust, the relationship between the employees and the manager will be productive. The staff must also trust the manager/team leader for their best interests and proactively find ways of further improving the relationship.

9. Care

The relationship between an employee and a manager should not be limited to just the working environment. It will not hurt to find out about your staff’s interests outside of work. You can use this to develop a personal connection with your employees. It will show that you are approachable and you care about your employees.

The Bottom Line

A motivated staff will be a productive staff. It is far better to have motivated, empowered, and happy employees than it is to have demoralized, unhappy, and bored employees. This goes far beyond how your staff perceives you. It encapsulates how they perform and how it will be perceived by people in general, both internally and externally.

Health and Safety in the Workplace

Posted on by KWD

The Health and Safety at Work Act (HSWA) 2015 is a complicated piece of legislation that applies to various different circumstances throughout New Zealand. The act and all its related regulations were introduced to ensure highest level of protection for workers and others from workplace health and safety risks. These include the risks to both physical and mental health. So far, the act is reasonably practicable.

 

Why Was HSWA Introduced?

The HSWA was introduced due to degrading workplace injury stats. At the time its regulations started being written, New Zealand was seeing 70+ people die at work every year. 600-900 workers were dying due to work-related incidents a year and a massive 10% of workers were harmed annually. The goal of Health and Safety at Work Act 2015 is to see a 25% drop in these figures by 2020.

 

Who Does HSWA Make Responsible?

The regulations and laws introduced in HSWA target any ‘person conducting a business or undertaking’ (PCBU). These may include:

  • School principles
  • Self-employed people
  • Company directors
  • Property managers or landlords

 

What Do You Need to Know?

Without going into the individual laws under this act, following are some key things you need to know as a PCBU:

 

PCBUs Can Be Held Responsible of Care for Employees

Unless you haven’t heard, you probably already know by now that persons conducting a business or undertaking can now be held personally responsible in the event of a workplace injury. It has been well-publicized that the penalties for not taking this act seriously are severe. Organizations can be fined up to $600,000 and individuals can receive up to 5 years of jail time.

 

“Primary Duty of Care” Covers a Wide Variety of Issues

This is another important regulation under the Health and Safety at Work Act 2015. According to this regulation, employers and individuals are responsible for:

  • Providing a safe work environment without any risk of physical or mental health and safety.
  • Allowing for safe use and storage of substances and plant.
  • Maintaining a safe plant, structures, equipment, and work systems.
  • Monitoring of the health of workers (both physical and mental).
  • Monitoring the conditions at the workplace to prevent illness or injury as a result of workplace activities.
  • Providing information and training necessary to protect against workplace health incidents.
  • Providing the facilities that are necessary for wellbeing of the staff.

 

There is other related stuff. You should read the legislation for more details.

 

Building a Safety Culture in Your Business is Now More Crucial Than Ever

Managing the health and safety of workplace shouldn’t just be the responsibility of a few team leaders. This is because if someone gets injured, it has a ripple effect. Not only does it affect the worker, but also their family, co-workers, and the business. “Safety Culture” is not just a slogan, it means encouraging everyone to take control of safety. Whether it is through technology, training, or reporting, if everyone is part of the subject then there will be maximum visibility and a much better time.