CST Nexia Newsletter - Winter 2006
- Is today’s tough economy getting you down? We will show you how to beat the business blues!
- Check out our free business development workshops!
- Business plans - your blueprint to success. Find out why they're important and how easily you can develop one.
- Tax Update - A summary of the latest tax changes
- NZ’s next big name in motorsport – and we’re there!
- Movies, dinner, theatre - who said your relationship with your accountant had to be boring?!
Getting Tough in a Tough Economy
You don’t have to be beaten because the economy is depressed. You just have to get into fighting shape. Here are some exercises that will make you more fit to deal with tough times.
- Tighten up your cash flow muscles. Consider reducing credit periods for customers and if necessary, use all the credit your suppliers give you.
- Shed excess inventory. Excess slow selling inventory is unwanted fat. Analyse your inventory and put your money in the bank instead of on shelves.
- Measure your margins. If your product is selling fast, you may be under priced. Check to see if you are priced appropriately. Also use this opportunity to negotiate with suppliers for better prices.
- Monitor overhead costs. See if there are any areas that warrant cutting back and also check your standing orders and direct credits. You may be paying for things you no longer need.
- Promote, promote, promote. It seems the easiest and fastest way to reduce expenses, but cutting your marketing in tough times may not be wise.
- Don’t take the easy way out. The easiest ways to cut costs can end up costing you big time in the long run. Be creative in how you reduce your expenses, such as reducing employees to 4 day work weeks instead of creating redundancies. Offer employees a percentage of any savings that can create in purchasing and materials etc.
Research shows that people remember those who keep advertising though a recession, even if they don’t patronise the business immediately. And importantly, keep those principles in mind even when trading conditions improve.
Free Business Development Workshops for CST Nexia Clients
CST Nexia hosted the first of a series of free business workshops for clients on Thursday the 15th of June at HERA House in Manukau.
Clients attending the first workshop, entitled "Business Resilience – Profit from Riding the Economic Cycle”, learnt how to beat the economic downturn and develop profitable business growth. The workshop was presented by Dr Mike Ashby of the Entrepreneurs Success Program (ESP).
CST Nexia plans to run other business workshops from the program throughout the year. Other topics will include:
- Building a Great Business
- Accelerating Business Growth
- Finding and Keeping Great Staff
To register your interest in attending one of our free workshops, please contact Kelly McGillivray, Marketing Manager on 09 261 1691 or email kmcgillivray@cstnexia.co.nz or sign up on our website at www.cstnexia.co.nz.
Business Plans are the Blueprint for Success
Running a business without a business plan is like rock climbing blindfolded – your chances of making it to the top are slim and the process will surely be a death-defying one!
Contrary to popular practice, a business plan is not just a means to securing financing. Instead it is a step-by-step guide to running your business and creating a product or service that will make it in the marketplace. And like any other map, your plan will have to be adjusted according to your vision for the company, conditions and opportunities in the marketplace and your business’ current condition.
To read more, click here.
Things have been fairly busy in the world of tax in recent times. Most of the changes arise out of the Taxation (Depreciation, Payment Dates Alignment, FBT and Miscellaneous Provisions) Act 2006 which was finally enacted early in April 2006. This included items that stemmed from the budget of 19 May 2005.
Click here for a summary of changes to depreciation, FBT and other provisions of the Taxation Act.
Student Loans - Did you know they are now interest free from the 1st April 2006 if you are living in New Zealand? Interest will be charged but written off at year end. Contact us or visit the IRD website www.ird.govt.nz to find out more.
Family Assistance Thresholds - are you receiving your full entitlement? Click here to find out more.
CST Nexia Sponsors Next Big Name in Motorsport
You might not have heard of James Holder yet but it’s a name destined to reign up there with the likes of Greg Murphy and Possum Bourne as a legend in rallying.
CST Nexia is proud to sponsor James Holder Motorsport (JHM), the up and coming 2WD rally team, at this year's New Zealand Rally Championship (Kiwi 2 Class). The opportunity came about through our Tax Manager Tania Styles's association with the team (she's the team manager) and the South Auckland Car Club.
The James Holder Motorsport team is driver James Holder and co-driver, Richard Ellis. James and Richard, an engineer at Fisher & Pykel and a trainee winemaker respectively, are both 24 and earned their stripes last year in their first ever NZRC event finishing third overall.
The rally has 6 rounds, 2 in the South Island and 4 in the North Island, and runs between May and September. Check out the CST Nexia website for more from the team as we follow their progress through the events.
We are planning on hosting some client functions around the car in the next few months - so stay tuned for more details!
DaVinci Code Movie Evening and Other Upcoming Functions
We value all our clients’ business and to show our appreciation we regularly organise client functions throughout the year.
Recently we arranged a private screening of the DaVinci Code at the Village Gold Class cinemas in Queen Street in conjunction with the National Bank. A number of clients enjoyed an evening out with some of the CST Nexia team including a three-course dinner and luxury viewing of the film in the comfort of gold class armchairs!
We shall also be organising a theatre evening for clients towards the end of the year at Onehunga’s Dolphin Theatre. The play, “A Madman Sings to the Moon”, is a darkly comic tale set in Scotland about one human beings attempt to have a conversation with a world that’s left him completely alone. By turns hilarious and suspenseful, the play was a hit at the Edinburgh Festival when it was first released in 1989.
Look out for that in October!
And don't forget you can keep abreast of what's happening at CST Nexia by checking out the "Latest News" located right on our homepage www.cstnexia.co.nz
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