Business milestones and how we can help
You’ll encounter highs, lows and speed bumps in business, whether you’re starting out or well established. Below are 20 milestones common to small business owners. Select “read full” for tips and tools to support you along the way.
Registering a business
You’ve done your research, made your decision and are taking an exciting (and possibly nervous) first step. Whether you’re making your unofficial business official or starting a new business and quitting the day job, this milestone is all about doing things properly, being seen as legitimate and feeling like a credible business owner.
For help, see:
- ONECheck
- Choose Business Structure tool(external link)
- 10-step guide to starting a business
- How much money do I need to start a business?
- Getting business planning advice
- Companies: an introduction(external link) — Companies Office
- ACC if you’re new to businesses(external link) — ACC
- ACC if you’re new to self-employment(external link) — ACC
- Pakihi Māori – Māori Enterprise(external link) — Te Puni Kōkiri
Buying a business
Rather than start from scratch, you’ve bought an existing business and are getting a handover from the previous owner. There’s a lot to learn about leases, chattels, customers, marketing and paperwork. Perhaps some of the romance has turned to reality, but you’re keen to get into it.
For help, see:
Check if a business owes money on its assets by searching the Personal Property Securities Register on the Companies Office website.
Personal Property Securities Register(external link) — Companies Office
Learn how ACC levies can change depending on a business’s claims history on the ACC website.
How your claims history affects your levy invoice(external link) — ACC
If intellectual property assets are included in the sale, make sure these are transferred to the new owner. The New Zealand Intellectual Property Office (IPONZ) website has advice on how to protect:
New business premises
Getting a home for your business feels like a big deal — and it is!
Retail spaces, workshops and offices are all needed to either get customers through the door or get work done. This means:
- dealing with leases and landlords – or real estate agents if you buy your new premises
- paying for insurance, fit-outs and utilities.
Having good cash flow is more important than it has been in the past. But, if you’ve done the sums properly. Make sure you cost the move in full, and also get a clear picture of the impact of future costs.
For help, see:
Getting a logo or website
Getting a logo, website or business card designed is a really fun step on your business journey. However, it often doesn’t go right the first time (and sometimes costs more than expected).
Before commissioning a designer, it’s a good idea to have a budget in mind. You’ll also want to write terms and conditions that ensure you own your brand — not your designer. This will make it easier and cheaper to change the designs, should you ever want to down the track.
For help, see:
- When to consider intellectual property
- Getting an online presence
- ONECheck — tool to check if your business name, web domain, trade mark and social media usernames are available
- Ways to protect your name, brand and ideas
- A guide to applying for a trade mark(external link) — Intellectual Property Office New Zealand (IPONZ)
- Protecting Māori cultural intellectual property(external link) — IPONZ
- Privacy statement generator(external link) — Privacy Commissioner
An unexpected event
Things go wrong, whether it’s an unreliable EFTPOS provider, a bird flying into your new shop window, or a computer server that just keeps crashing.
At these points you’ll need to get stuck in, solve problems and overcome unexpected challenges. This is what makes a successful business owner.
If you can keep a smile on your face at the same time, you’re doing great.
For help with unexpected disasters, see:
- Emergency and continuity planning
- Guide to supporting staff in a disaster (external link)— Resilient Organisations
- Tips, tactics & plans for managing your business through a crisis(external link) — Resilient Organisations
- Tool: How resilient is your business?(external link) — Resilient Organisations
For help with legal problems, see:
- Solving problems in and out of court(external link) — Ministry of Justice
- Dividing property when you separate or divorce(external link) — Ministry of Justice
For help if you or your employees are injured, see:
- How to make a claim when you're injured(external link) — ACC
- Managing employee injuries(external link) — ACC
For help with unexpected IT events and fraud, see:
- Avoiding scams and fraud
- Tools to help when you have a data breach(external link) — Privacy Commissioner
For help, see:
Some employment problems can also come out of the blue, eg misconduct, bullying or a medical event. The Employment New Zealand website has useful advice.
- Resolving problems(external link) — Employment New Zealand
First major sale, client or job
This is what it’s all about — your hard work, persistence and ingenuity are starting to pay off.
But no matter how good it’ll feel to have reached this point, successful small business owners don’t rest on their laurels.
Keep your sleeves rolled up, do outstanding work and make a good first impression. After all, repeat customers are the best customers. Plus they can give essential referrals.
Depending on the size and nature of this first big job, you might even have to take on staff, perhaps temporarily.
For help, see:
- Marketing and sales
- Tips on tendering for contracts
- When to hire staff
- Visual guide to employee types
- Understanding your value proposition(external link) — New Zealand Trade and Enterprise
- Understanding your market research requirements(external link) - New Zealand Trade and Enterprise
- Hiring(external link) — Employment New Zealand
- Starting employment(external link) — Employment New Zealand
Compliance intervention
If you skip this step, great job. If not, do your best to relax — it’s probably not as bad as you think.
Whether it’s missing a GST payment, or completely forgetting you have to pay income tax, sometimes the government will have to step in to remind you of your responsibilities.
The good news is that government agencies have seen it all before and most people get through a compliance intervention without too much drama. In fact, they often end up with better systems because of it — like stronger H&S policies or online accounting systems that’ll catch human error.
For help, see:
- How to fix tax mistakes
- Systems that can help at tax time
- Health and safety: Plans, tools and learning from incidents
- Filing your Companies Office annual return(external link) — Companies Office
- Director and shareholder responsibilities(external link) — Companies Office
- Complying with consumer laws(external link) — Consumer Protection
- ACC levy calculators(external link) — ACC
- Classification units to calculate businesses levies(external link) — ACC
- Compliance Matters — tool to search for laws that apply to your business
- Employment rights and responsibilities(external link) — Employment New Zealand
Wanting a better use of time
At some point you’ll likely find that doing different tasks at work are either more personally rewarding, or will be a better use of your time. This is great because it often shows your business is maturing and/or growing.
Common by-products of this milestone include investing in new equipment or getting extra help. For some, steps like these can feel daunting because they might also require a loan or — if new staff are involved — a feeling of lost control.
At the end of the day, remember you probably can’t run a bigger business all by yourself. So, if you’re at this milestone it's wise to do some due diligence. This could mean:
- negotiating rates with different banks
- getting multiple quotes for new assets
- checking references during recruitment.
For help, see:
- Systems that can help at tax time
- How to create a business plan
- Getting business planning advice
- Employee Cost Calculator(external link)
- Improving productivity and processes(external link) — Callaghan Innovation
- Pakihi Māori – Māori Enterprise(external link) — Te Puni Kōkiri
- Hiring(external link) — Employment New Zealand
- Contractor vs employee(external link) — Employment New Zealand
Realising lack of suitable help available
The thrill of advertising for an employee can be quickly tempered when you start receiving applications. It takes time to go through CVs and talk to candidates. You may feel it takes time away from running your business. But trying to rush the process can lead to hiring the wrong person.
Though it can seem hard, the best thing to do is to hold out for the right candidate. Ask anyone who has been there and they’ll tell you a bad hire will zap you of time, energy and resources. It’ll also leave you in a worse position than before you even advertised.
Trust us, there are plenty of fish out there. Eventually you’ll land the right one.
For help, see:
- When to employ staff
- Employee Cost Calculator(external link)
- Advertising and interviewing
- Trial periods and probations
- Employment Agreement Builder(external link)
- How to set up a new employee
For help with hiring staff from overseas, see:
- Hiring a candidate(external link) — Immigration New Zealand (INZ)
- SkillFinder(external link) — INZ tool to connect with skilled workers overseas
- Resources for hiring migrants(external link) — INZ
- Contractor vs employee(external link) — Employment New Zealand
Work and Income can help you find motivated candidates with a range of skills. For help, see:
Hiring the wrong person for the job
When business owners realise they’ve hired someone who is just not working out, they typically try to accommodate this by finding tasks they can trust them with. Before too long, this can seem like more work than it’s worth.
To varying degrees, owners are also fearful of what this bad hire will do to their business reputation. Then there’s the impact on other staff, plus the financial hit of paying someone who’s unsuitable for the role.
Common actions at this point are to put an underperforming employee on a performance management plan and, in the long term, changing the way you recruit and interview people.
For help, see:
- Handling poor performance
- Employee exit checklist
- Employment Agreement Builder: Ending employment(external link)
- Resolving problems(external link) — Employment New Zealand
The Employment New Zealand website has advice on preventing and resolving problems. For help, see:
A-ha moment
Looking back on it, a business owner’s a-ha moment can seem like a pretty obvious thing. But before it happens, it’s anything but.
Sometimes it’s a shift in business focus, eg a café emphasising its menu over cabinet food. Sometimes it’s tackling a problem, eg turning away from an unreliable supplier. These a-ha moments offer new ways forward, exciting opportunities or, maybe, sighs of relief.
You don’t need to look out for this milestone. It’ll find you.
For help, see:
- When business planning is right for you
- Test if you are ready to grow
- When to consider intellectual property
- What can I get government help with?
- Making the most of your intellectual property(external link) — Intellectual Property Office New Zealand
- Making your ideas happen(external link) — Callaghan Innovation
Getting investment
Unless you’re one of the lucky ones, launching, diversifying or expanding a business typically requires funding. This often means getting a loan from a bank, family member or getting an investor on board.
Getting a cash injection can be a mixed bag. You feel securer, more equipped and, possibly, more mature. On the other hand, it means you might no longer have the final say on how things are done. Some owners find this liberating because they’ve now got other people to bounce around ideas. Others can find it constraining because they’re no longer sole agents.
The important thing is to use this money wisely and spend it on things that will really pay off.
For help, see:
- Getting investors on board
- What can I get government help with?
- Keeping track of key numbers
- When to consider intellectual property
- Get investment-ready and raise capital(external link) — New Zealand Trade & Enterprise
- Get start-up support and funding(external link) — Callaghan Innovation
- IP business management(external link) — Intellectual Property Office New Zealand
Buying a major asset
Things like tractors, refrigeration devices, computers and warehouses all cost — but they can also help your business grow.
Taking time to consider if the asset will make long-term difference. Examples include:
- doing work faster or more easily
- freeing up time
- able to take on more jobs.
Also think about how you might pay for it, eg borrow money or use cash reserves.
Don’t forget that major investments also usually require extra insurance, maintenance and, possibly, new staff or staff training. Make sure you factor in all the variables before signing any dotted line. If it still looks good, go for it. It might just be the smartest business decision you ever make. Don’t believe us? Go ask the first Kiwi farmer who bought an automatic milking machine.
For help, see:
- Common business assets checklists
- Introduction to managing assets
- Keeping track of key metrics: Utilisation rate
- Depreciation
- Funding explorer tool(external link)
- Choosing the best commercial insurance(external link) — Resilient Organisations
- Hiring(external link) — Employment New Zealand
If something goes wrong, eg the goods are faulty or the seller misled you, find out about your rights on Faulty goods and services bought by businesses(external link) on the Consumer Protection website.
Expanding or diversifying
At some point in your business journey you might ask yourself “What’s next?”
Soon after, you could go in a new direction, introduce new products or services, or find new customers. This can feel a bit like starting out again — only this time you’re a lot more commercially savvy.
It’s common at this point to be keeping a closer eye on what’s earning and what’s costing. Scrutinize the numbers and you might be surprised. Maybe your catering service is actually earning more than the restaurant, or that old truck is costing you thousands a year in petrol and repairs.
Being attentive and opportunistic helps your business. It’s also worth reminding yourself that from little things, big things grow. So pay attention to the little details.
For help, see:
- When business planning is right for you
- Test if you are ready to grow
- Keeping track of key metrics
- When to consider intellectual property
- Intellectual property business management(external link) — Intellectual Property Office New Zealand
- Supporting Māori business(external link) — Ministry of Business, Innovation and Employment
- SkillFinder(external link) — Immigration New Zealand tool to connect with skilled workers overseas
- Understanding your capability and capacity(external link) — New Zealand Trade and Enterprise
10-step quick focus business plan template [PDF, 167 KB]
If you’re planning to expand your staff, Work and Income has advice for you on its website.
For help, see:
Business support for hiring new staff(external link) — Work and Income New Zealand
Opportunity to purchase
When opportunity knocks, take it — just make sure to look before you leap.
Common things happening at this milestone include when a competitor retires, a supporting business goes up for offer, or valuable real estate becomes available. These things can come out of the blue so you need to act quickly and professionally.
This means getting on the phone for financial discussions with your accountant or bank, or conversations with lawyers about business structures and important documents.
This is also often the time when a spouse or children might step into the family business.
For help, see:
- Getting financial advice
- Buying a business or franchise
- Employing your spouse or partner
- Choosing the right business structure
- Updating director details(external link) — Companies Office
- Intellectual property business management(external link) — Intellectual Property Office New Zealand (IPONZ)
- Making the most of your intellectual property(external link)— IPONZ
Hitting a growth milestone
Few things in business feel better than seeing your bank account grow. Not only do you feel encouraged and accomplished, it spurs you to further action.
What’s normal at this milestone is for owners to reinvest in the business — either through extra staff, equipment or training.
Once that’s done, make sure to set a new sales target so you’ve something to reach for. Now go out and get it.
For help, see:
- Test if you are ready to grow
- When business planning is right for you
- Finance tips to help your business
- Supporting Māori business(external link) — Ministry of Business, Innovation and Employment
- SkillFinder(external link) — Immigration New Zealand (INZ) tool to connect with skilled workers overseas
- Resources for hiring migrants(external link) — INZ
Doing business overseas
Doing business overseas doesn’t happen by accident. It takes a certain type of business owner to dream big, sit down, work out a strategy and execute it.
"Going overseas” typically happens through export, such as winning a tender to provide a service overseas. Going overseas is really fulfilling because you see your business grow into new and bigger markets.
But be careful. Things don’t always go right the first time. Ask experts for help, for example, sales agents, translators, intellectual property lawyers or customs brokers.
For help, see:
What you need to know about exporting
Getting export support from the government
Export Essentials: your best-practice guide to selling overseas(external link) — myNZTE
Restructure
There’s no two ways about it — going through a restructure isn’t fun. This is true for employees and for employers.
If you find yourself at this milestone, you should know that it’s common to worry about the legal process and how employees might react, and to feel bad if you have to let staff go.
What’s less commonly talked about is that restructures offer a real opportunity to get your people, cash flow and operations exactly right. Once it’s over, you’ll likely find yourself asking why you waited so long.
A typical outcome from this milestone is getting ongoing external HR support, which is a good idea if you can afford it.
For help, see:
- Team restructuring
- Keeping track of key metrics
- Employee protection provision(external link) - Employment Agreement Builder
- Updating directors’ details after a change(external link) — Companies Office
- Redundancy(external link) — Employment New Zealand
- Redundancy support(external link) — Work and Income
- Restructuring when a business is sold(external link) — Employment New Zealand
Selling or closing
Whether it’s due to new business opportunities, retirement, health reasons, or something else altogether, most businesses eventually either close down or get sold.
For those that sell, it can be a great sense of relief to the owner. Business sales and closures involve a lot of paperwork. It’s a good idea to get expert advice, eg from a lawyer or accountant. You will also need to tell the government agencies like Inland Revenue and the Companies Office.
It's important to make sure all paperwork is complete before handing over the keys.
For help, see:
- Selling your business
- Stepping back from your business
- Closing your business
- Simple steps to protect your intellectual property
If intellectual property assets are included in the sale, make sure these are transferred to the new owner. See the New Zealand Intellectual Property Office (IPONZ) website for tips on managing IP assets(external link) and advice on how to protect:
- trade marks(external link)
- patents(external link)
- designs(external link)
- plant variety types(external link)
You need to tell ACC If you sell or close a business. The ACC website has guidance on what you need to do:
Insolvency or bankruptcy
No one thinks about insolvency or bankruptcy before going into a business. This doesn’t change the unfortunate fact that it can happen.
For those that do go through this, it’s common to feel stressed and about the actual process involved. Typically you’ll be supported by a liquidator or official assignee.
Make sure you ask questions, especially if something seems unclear. Make sure you know:
- what money is available to you
- details of any debt repayment plan
- any commercial/ business restrictions on you.
The important thing here is to not assume too much. If you’re confused by something, be sure to ask and get clarification. You’ll want to know what money is available to you and make sure you really understand what commercial restrictions are placed upon you.
Bigger and better things might be just around the corner, so it’s good to know where you stand if you spot a suitable opportunity.
For help, see:
- Warning signs of trouble ahead
- Is closing your business the right choice?
- Insolvency and involuntary closure
- Is your business in difficulty?(external link) — Companies Office
- Summary Instalment Order calculator(external link) — Insolvency and Trustee Service
If someone takes you or your business to court, the Ministry of Justice website has guidance on what to do if you’re defending a:
- bankruptcy notice(external link)
- creditor’s application for adjudication(external link)
- company liquidation(external link)
If your business has been made insolvent or you’re bankrupt, contact ACC’s Business Service Centre(external link) to inform them.
If you face insolvency or bankruptcy and your business has staff, the Employment New Zealand website has advice about redundancies.
