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REMOVING THE BARRIERS TO UPSKILLING

Digital enablement is a key part of the puzzle when it comes to lifting New Zealand’s productivity. Research from Xero last year found the majority of small businesses in New Zealand want to increase productivity but feel that the cost of technology, the time it takes to implement and a lack of information about what to do is preventing them.

I’m stoked to see the Government’s Digital Boost initiative come to life to address these barriers to using cloud technology. The Digital Boost Skills Training and Support site includes hundreds of webinars, videos, learning modules, articles and resources to help small businesses learn more about using technology in their business. The initiative also provides a platform for small businesses themselves to share their experiences and share advice for others. 

The programme is free for any Kiwi small business, including their team members, no matter the size. All resources and courses are online to make it easy to learn where and when it suits you. There aren’t any big assessments at the end of modules, it’s purely designed to give business owners the freedom to discover the skills and resources that are going to be most useful to their business and their team. 

LIFTING THE NEW ZEALAND ECONOMY

If more small businesses around the country start using digital technology, the benefits don’t just stop with them. It has the potential to boost their local community, and ultimately benefit the entire economy. 

Research commissioned by Xero and conducted by the New Zealand Institute of Economic Research (NZIER) found that a 20% uptake in cloud-based technology would add up to $6.2 billion in annual GDP growth for New Zealand’s economy. That’s a lot of extra money that could be circulating round our economy. Lifting our country’s productivity could also give people more freedom and flexibility in their lives, having a positive impact on wellbeing.

HOW XERO IS SUPPORTING THE DIGITAL BOOST PROGRAMME

The Government’s Digital Boost programme is providing Kiwi small businesses with the means to upskill themselves and ultimately, improve their business in the long-term. Xero is getting behind the initiative with live webinars that offer useful tips and tricks for managing your business with Xero. You’ll also find a range of video content from Xero on the Digital Boost hub to help with all aspects of online accounting.

Starting with the fundamentals like bank reconciliation, invoicing and bill automation, to tips on how to stay on top of cash flow, stay cyber safe, and how to grow your online business. Xero wants to put the power back in small businesses hands, to educate them on the powerful online tools and features that will help save time and get paid faster. Helping them become more agile, and to grow and thrive.

I saw first-hand that the lockdown motivated quick thinking, fast innovation and made many Kiwis small businesses realise how rapidly they could change when they need to. But don’t take my word for it – have a look at the Digital Boost Spotlight series profiling businesses who have transformed digitally. Now I’d like to see what more we can do by harnessing this pace of change going forward. 

CONTRIBUTOR

Craig Hudson

Managing Director New Zealand & Pacific Islands

Xero

Kea member



HOW KEA CAN HELP YOUR BUSINESS GROW

Kea Connect

Kea Connect is a free service that will help your business grow offshore. We connect you personally with regional, sector-specific experts and peers.

READ MORE

Resources

Kea is here to help New Zealand businesses grow offshore. Be inspired and hear advice from businesses who have created their export path.

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Jobs Portal

Looking for the right talent for your team? Reach our global Kiwi community through the Kea international job portal. 

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Filed Under: Businesses growing at home Tagged With: Craig Hudson, Kea Connect, Small business, SME, Technology, Xero

Tell us about Mānuka Essentials and what drove you to launch the business?

Mānuka Essentials is a plant based personal care brand using renewable plant extracts, the key ingredient being East Cape mānuka oil. 

It all started when I was overseas backpacking around South East Asia. I somehow ended up going down a rabbit hole of scientific research papers on native plants. I discovered that mānuka essential oil which comes from the leaves, is much more powerful than the honey and has many health benefits. East Cape mānuka oil in particular, because of the environment that it has evolved with, provides a lot of benefits – antibacterial, anti-inflammatory, beats dandruff, among many others. This is in part because of a particular group of compounds called beta triketones.

I then discovered that mānuka plays a significant role environmentally. In New Zealand, mānuka is often the first plant to grow in a regenerating native forest (also known as a seral species). It helps other plants flourish, and it grows deep and flexible root systems that prevent erosion, binds hillsides, and helps to clean up our waterways. 

In my previous job working for the family company as a sales rep (selling flooring to shops), I regularly travelled around most of the country. I saw how much of our land was once forest. I also saw how much of it we chopped down. Throughout Aotearoa, we are experiencing land erosion, loss of biodiversity, and polluted waterways… So I thought, if we can make it more profitable for farmers to plant sustainably managed native forests than any other type of farming, then we’re going to see the country return, largely to native forest. 

And so I’ve made it my life’s mission, basically, to do this. 

What was your initial approach to funding? 

I had some savings – tried a range of ideas and ended up spending it all! 

From here, I have been working as a marketing consultant which has supported this venture. This consultancy work evolved into what is now Paste & Publish, a content marketing agency with a team of twelve.

I haven’t tried to get any external investment or funding, mostly because I don’t want the need for short term profits to get in the way of long-term impact. 

Where have you exported to, and what have been the key challenges throughout your export journey across these markets?

Australia was an easy start, and we have a few customers over there. Australia was good in terms of time zone, currency rates are similar, lead times are short, and regulations aren’t overly strict. One of the challenges has been regulatory compliance and understanding who to talk to. There’s a lot of contradictory information out there about regulations and compliance. Understanding cultural and consumption differences was really key as well. 

We considered Europe, however the deeper we dug the more regulatory issues we realised. Compliance was just too much of a challenge at that stage. You really need someone on the ground who holds full responsibility over the product. We saw the costs add up, and ended up putting this on hold. We plan to revisit export into Europe in the next year or so. 

Tell us about your experience with Kea Connect since reaching out in 2019?

It was actually Kea’s introduction that helped us to understand what the export journey to Europe would look like. Through Kea Connect, we were put in touch with a Brand and Industry Specialist with extensive experience across the UK and EU. As a result of his advice, we ended up holding off from exporting to the region and focused our attention on the local market instead. 

This advice highlights how some export markets, while appealing, are not always necessarily the right path right for all businesses. Kea helped us to see the reality we were facing and I was really appreciative of the connection and practical advice that determined our export plans. We also were connected with some initial legal advice, which brought useful considerations to mind. 

The team at Kea are open-minded, proactive, and well-connected. I can’t fault the service! 

How has Mānuka Essentials grown since 2019? 

COVID-19 put a damper on our growth, but in saying this we have expanded our range and offering, which is great. 

When we first engaged with Kea, we mainly produced beard and shaving oil. Since then, we have developed a range of oil blends across genders and skin-types, along with solid beard shampoo and shave soap bars. We have also launched a brand called Mānuka Sensations which focuses more on the aromatherapy side of things. 

Moving forward, we are focusing on creating an enterprise that builds the leading native plant brands of tomorrow. This involves development and operations management, marketing and distribution. Through this new structure, we are launching a wide range of exciting initiatives!

Are there any trends that you see from the entrepreneurs and businesses you’re working with day-to-day?

Going online is a big part. Through our content marketing agency, Paste & Publish, we can’t keep up with the amount of growth in terms of people wanting top notch content. Adoption of tech is massive. Initiatives like Digital Boost alludes to how Kiwi businesses are typically behind the curve on this front.

A larger trend I see is more conceptual, looking ahead 5-10 years. This is around access vs ownership of business processes. Back in the day, you would have your commercial building, your own machinery, equipment, trucks, etc. Back then, you had salaried staff as opposed to contractors or outsourced partners, and those staff would typically stay with you their whole career. Now we are moving towards a much more transient world.

A great example of this is Fulfilment by Amazon. If you want to sell overseas, you don’t need warehouses or space, or staff. Amazon brings the traffic to you, they store it, they ship it. Growth made easy.

So, with business, it’s more about partnering with what and who you really need, and contracting out business processes that aren’t your core area of expertise. In this way, the world is at your unique advantage. 

You have a few  other ventures on the go – can you briefly tell us about these, and what advice do you have for other entrepreneurs juggling many things at once!

Yes sure. As I mentioned before, the overall goal is to reforest Aotearoa. To do this, we need to create widespread consumer demand for native plant extracts so that there’s a market to justify farmers investing in making the shift. And to create this consumer demand, we need brands to tell the story and empower the change.

So we are building a brand incubator. There are three key pillars to any product based brand:

Development and operations – I have recently partnered up with Jess Elliot, the creative genius behind Boho Body Care, to develop what we are calling ‘Boho HQ’, a local business based in Tauranga that looks after product development, manufacturing, logistics and sourcing all under one roof. Basically, if you want to create your own personal care brand, we do all the work to bring your vision to life – from development to marketing and everything in between.

Marketing – through Paste & Publish, we look after all things marketing. Content (such as articles, guest blogs, strategic content planning etc.) is our core strength, but we also do design, web development, advertising, and much more.

Sales and distribution – we are assembling a nationwide network of distributors so that we can bring out new products, new brands, and new offerings, and have them represented in retail locations throughout the country. This project has just launched a few weeks ago, and our aim is to assemble an awesome team of distributors who own their own wholesale businesses supplying our products. You can find out more about becoming a distributor here.

Last but not least is The Reforestation Fund, a philanthropic fund that we are building to help accelerate the reforestation movement here in NZ. Through TRF, we are funding projects that result in native trees being planted, and our biodiversity to be cared for, by supporting local volunteer groups and the like. As part of our efforts, 50 cents from every Mānuka Essentials product sold is donated to this fund. We want to bring more ethical brands onboard, to help make a positive impact on the health of our ngahere (forests).

My advice to other entrepreneurs is that there will be a time where you go from being the business, to being part of the business. Learning when to let go is important, and so is finding the right people who share your vision, and empowering them for success.

One thing that set me well is understanding our core values and core purpose and making decisions from this basis. It ensures that we do things for the right reasons, and with our long term goals in mind.

If there are any returning Kiwi who want to start their own company, distributing native plant-based personal care products in their area, we would love to hear from them.  We are also always looking to partner with people who are passionate about reforestation and would like to get involved. All the details of our distributor programme can be found at www.manukaessentials.com/pages/become-a-distributor.

CONTRIBUTOR

Callum Armstrong

Managing Director

Manuka Essentials Limited

Kea member



HOW KEA CAN HELP YOUR BUSINESS GROW

Kea Connect

Kea Connect is a free service that will help your business grow offshore. We connect you personally with regional, sector-specific experts and peers.

READ MORE

Resources

Kea is here to help New Zealand businesses grow offshore. Be inspired and hear advice from businesses who have created their export path.

READ MORE

Jobs Portal

Looking for the right talent for your team? Reach our global Kiwi community through the Kea international job portal. 

READ MORE

Filed Under: Businesses going global, Businesses growing at home, Kea Connect success stories Tagged With: Callum Armstrong, Kea Connect, Manuka Essentials

The benefits don’t stop at the individual level. Building a culture of wellbeing in the workplace creates more resilient, productive and happy employees. It means as a team they can better cope with setbacks, take advantage of opportunities, and contribute more to the business.

I’ve always believed that business success and wellbeing are linked. Positive staff wellbeing creates a solid foundation to drive better business outcomes. To quantify just how much of an impact wellbeing has on a business, we’ve launched new research that shows investing in wellbeing is not just good for your people, it’s good for your bottom line. 

A return on investment for wellbeing

New research commissioned by Xero and conducted by the New Zealand Institute of Economic Research (NZIER) shows investing in employee wellbeing can actually make a business more profitable. The research reveals for every dollar a small business owner invests in company-wide wellbeing initiatives for their staff, they can expect to see a return of up to 12x within a year.

This return on investment was measured through productivity improvements across two key areas:

  1. Team wellbeing: Creating a wellbeing culture that supports the physical and mental health of your team. For example, wellbeing education programmes, fostering an environment that openly supports mental health, and organising activities designed to improve staff wellbeing. This approach has an ROI of 5:1, and up to 12:1.
  2. Employee Assistance Programmes (EAP): Offering reactive support with professional counselling to help individuals with their mental wellbeing. This approach has an ROI of 3.6:1, and up to 5:1.

Much of this return on investment comes from avoiding the negative impacts of having employees with poor wellbeing. By creating a culture of wellbeing, we can de-stigmatise and address employee mental health issues before it starts to impact productivity.

According to the NZIER, poor wellbeing negatively affects a person’s decision-making and productivity for an average of 13 weeks a year. That’s three months of the year where that person’s ability to do the job is impacted. 

We spend more time at work than anywhere else, which is why we must make it a place where people feel valued and supported. If we can support our people so that they feel better when they leave at the end of each day they come to work, think of the impact that has on their wellbeing. They become more connected to the business, more productive and motivated to do more. 

Take your business to the next level

Last year, NZIER concluded that a 20% increase in the uptake of cloud technology could add up to $6.2 billion to New Zealand’s annual GDP. We now know the financial benefits of investing in technology, and now we have the numbers to show the same for investing in wellbeing. 

Small business owners can’t afford to not invest in wellbeing. 

We’ve put together a guide for small businesses to find out how to get started with wellbeing in their workplace. It also includes industry-specific apps that can help your business become more efficient and more profitable. 

Nearly half of all small business owners work six or seven days to keep their business running. What’s more, 88% of them miss out on family time because they’re distracted by the business. Don’t leave money on the table, or spend your weekends working. Read the guide to take your business to the next level.

CONTRIBUTOR

Craig Hudson

Managing Director New Zealand & Pacific Islands

Xero

Kea member



HOW KEA CAN HELP YOUR BUSINESS GROW

Kea Connect

Kea Connect is a free service that will help your business grow offshore. We connect you personally with regional, sector-specific experts and peers.

READ MORE

Resources

Kea is here to help New Zealand businesses grow offshore. Be inspired and hear advice from businesses who have created their export path.

READ MORE

Jobs Portal

Looking for the right talent for your team? Reach our global Kiwi community through the Kea international job portal. 

READ MORE

Filed Under: Businesses growing at home Tagged With: Craig Hudson, Kea Connect, Small business, SME, Technology, Xero

Nearly half of all small business owners work six or seven days to keep their business running and 88% of them think they miss out on quality family time because they’re distracted by their business. 

According to the NZIER, poor mental wellbeing affects decision making and productivity for an average of 13 weeks. Happier, healthier employees are more productive and more profitable than their burned out, unsatisfied teammates. 

If you want to reset how your business runs and how much money it makes, new economic research shows investing in wellbeing and digitising business processes are key.  

Find out how to make beneficial changes to your business in The Next Level.

CONTRIBUTOR

Craig Hudson

Managing Director New Zealand & Pacific Islands

Xero

Kea member



HOW KEA CAN HELP YOUR BUSINESS GROW

Kea Connect

Kea Connect is a free service that will help your business grow offshore. We connect you personally with regional, sector-specific experts and peers.

READ MORE

Resources

Kea is here to help New Zealand businesses grow offshore. Be inspired and hear advice from businesses who have created their export path.

READ MORE

Jobs Portal

Looking for the right talent for your team? Reach our global Kiwi community through the Kea international job portal. 

READ MORE

Filed Under: Businesses growing at home Tagged With: Craig Hudson, Kea Connect, Mental Health, Productivity, Small business, SME, Technology, Wellbeing, Xero

If you’re a business looking to raise capital what’s the first thing you should do? PledgeMe founder and NZTE customer manager, Anna Guenther says first and foremost businesses need to think long and hard about why they are raising capital.

“Only raise money if you need to raise money. Be clear on why you are raising capital and make sure you can communicate your story to investors.”  

Knowing your story is something that resonates with BNZ’s Timothy Wixon, he says when BNZ meets with potential businesses, they want to understand the whole picture.

“Three key things we always look at are character, cash flow and collateral. We look at the people behind and around a business, including their character, approach and track record.  

Being able to articulate your story, past and future, and show key proof points you have achieved and are targeting, especially through a longer term lens, tends to get the best out of a bank and, in our observation, other investors too”

Panel from left-right: Anna Guenther, Timothy Wixon, Stuart McKenzie and Shaun Maloney

If a business does decide to raise investor capital Stuart McKenzie, CEO of ArcActive says it’s important, they realise how this could potentially change their business model.

 “External capital changes the game, someone else in your business now has influence, this investor is a key stakeholder and they need to be nurtured.”

Nurturing external stakeholder relationships can be complicated and Stuart says it is crucial business owners do their homework first and know both the investor and their motivations. He says this is something that should be done well ahead of raising any capital.

“From day one you should be building investor networks, that way when it comes to capital raising it’s a ten-minute job because you already have the networks.”

Executive Chairman of software provider company Seequent, Shaun Maloney says knowing your investors is critical for long term success.

“I’ve seen tech companies who have been so grateful that someone wants to offer them capital that they jump at the first opportunity and then live to regret it later. Companies need to do their research, to know the investor’s culture and way of doing business and know how they act when things don’t go well. Make sure any potential investors match your company values and goals and think about capital planning with a five to ten year lens not a five to ten month one.”

Once you have secured your investors, maintaining a good relationship is important and all our panel agreed that the way to do that was through transparency. Shaun says when it comes to investors there is no such thing as too much information.

“Transparency is key to sustaining these core relationships. There is no such thing as over-communicating. Have weekly meetings, keep them informed about all your decisions.”

While capital will always be an important part of doing business there are some things that are equally as valuable and Shaun says businesses should never be afraid to collaborate, and people should never hesitate to ask for advice.

“Talk to others about what worked for them and more importantly what didn’t. People’s biggest disasters often lead to their biggest learnings.  Be incredibly wise, and if you don’t have the right experience then put your pride in your pocket and get advice from others, how you start on day one is incredibly important.”

We would like to thank EPIC Centre for hosting this event. Epic Centre is a centre for innovation in Christchurch. They have hosted more than 1100 events since they opened in 2012. As a founding partner, BNZ are proud to be part of their story and continue supporting their innovation.

If you would like to learn more, or access Kea Connect – join Kea today



HOW KEA CAN HELP YOUR BUSINESS GROW

Kea Connect

Kea Connect is a free service that will help your business grow offshore. We connect you personally with regional, sector-specific experts and peers.

READ MORE

Resources

Kea is here to help New Zealand businesses grow offshore. Be inspired and hear advice from businesses who have created their export path.

READ MORE

Jobs Portal

Looking for the right talent for your team? Reach our global Kiwi community through the Kea international job portal. 

READ MORE

Filed Under: Kea Connect success stories Tagged With: BNZ, Capital Planning, Kea Connect, Raising capital, Raising money

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