northland chamber

ADVOCATE COLUMN 1st WEEK SEPTEMBER 2011
It seems that every day there are results from some new survey or another being released to enlighten us on the state of the economy and New Zealand business. All have their value and the quarterly Chamber of Commerce Business Confidence Survey is an example of a survey that can provide information as to the business owner’s perspective. Recently there have been two other surveys released that offer not only information but also some interpretation which can be used to the benefit of anyone involved in business.

The first of these is the ANZ Privately-Owned Business Barometer which provides an in-depth perspective benchmarked against previous year’s results that enable – among other things - the identification of long-term trends. The full details of this are available on the bank’s website, but in brief this survey found that business owners are both resilient and passionate about the success of their own business. While the majority expects positive growth in the next year, owners are stretched and are finding it harder to balance work and their personal life.

The second survey was one that has been undertaken on behalf of NZ CA Limited entitled “Growth Guide the business of growth small medium business 2011” of which local accounting firm Sudburys Limited are a partner. As the title suggests, this survey focuses on the growth ambitions of businesses surveyed, what those owners believe they need to concentrate on to achieve growth, what is likely to inhibit growth and how can they overcome these barriers. It also addresses what the respondents saw as important for them to do and whether in fact they were actually doing those things at present.

Interestingly much of the areas identified by the businesses as necessary for growth, were things over which the owner has control. It entailed gaining a better understanding of their market, their customers and their business. Equally important was seen as the need to have an understanding of where they wanted their business to be in the future. To this end the need to have a business plan was highlighted as critical to growth.

Companies with business plans were shown as significantly more likely to have enjoyed growth than those without. Both these surveys show that the information needs to be interpreted by the owner, tailored to their individual business and managed with the support of professionals such as banks, lawyers or accountants to create a plan that gives the best opportunity for growth.