Starting a business Te tīmata i tētahi pakihi

Whatever path you take, these questions can help you decide if going into business is right for you. They’ll also highlight what’s worth thinking through before you take the next step.

1. Do I have what it takes? You’ll need passion, persistence and a willingness to take risks.
2. Am I willing to learn and be flexible? You’ll have to do a bit of everything at the start, from bookkeeping to marketing.
3. Will I solve a problem or fill a need? A business will need to do one of these things to survive and thrive.
4. Who will I be competing with? A business needs to offer something different (a unique selling point, or USP). How will you stand out if you’re one of many businesses?
5. Can I charge a price that covers my costs? You’ll need to know what people will pay, and how much your time and materials will cost. 

Start your own business

If you want full control over how your business looks, feels and runs, starting from scratch could be the right choice. You’ll make all the key decisions and shape everything from your brand to your pricing and operations. But it also means more work upfront and more personal risk. These are some things to keep in mind:

• Expect to wear many hats, especially at the start.
• Be patient and make sure you know why your business matters. Success takes time, persistence and a clear sense of purpose.
• Be prepared to work hard, as you’ll need to build everything from the ground up.

Buy a business

If you’d prefer not to set everything up from scratch, you could buy an existing business. You’ll get customers, premises, existing contracts and staff. These are some things to consider when buying a business:

• Research the business. Understand the suppliers, market and industry.
• Contact the person managing the sale and register your interest.
• Get a lawyer or accountant to check the details and represent you.
• Ask the owner why they’re selling. Compare their answer to the sales documents.

Buy a franchise 

A franchise is a branch of an existing business brand. Buying a franchise means you benefit from:

• proven strategies and processes
• an established brand
• support and advice from a franchisor.

Buying a franchise means following someone else’s system, so you won’t always be free to do things your own way. 

Prepare a business plan to systematically think through how to make your business a success. You’ll get clear about what’s important for your business, and what you still need to find out.

Three main ways of funding your business are:

1. use your own money — also known as bootstrapping
2. borrow — from people around you or from a bank
3. give investors a share of your business.

The best option for you will depend on things like how much you need, what industry you’re in, and how much you can appeal to investors.

Choose funding that fits your goals, whether it’s covering short-term costs or growing your business long-term.

What taxes apply depends on your business, but the main ones are:

• income tax — everyone who earns money in New Zealand has to pay income tax
• GST — you pay goods and services tax (GST) when you earn more than $60,000 in 12 months, or if you have certain business structures
• ACC levies
• employee-related taxes — like PAYE (pay as you earn).

You’ll need to register with several government agencies to use their services, and to meet your legal and tax obligations.

• Get a RealMe® login to access government services.
• Get a New Zealand Business Number (NZBN) to identify your business.
• Set up your myIR account to manage your taxes and register for GST.
• Register your company name if you’re setting up a company.
• Protect your intellectual property to safeguard your brand and ideas. 

Talk to people who can guide you as you set up and grow your business, such as accountants, business mentors, and those connected to your industry.