Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search


K’Road disruption a warning to small businesses everywhere

K’Road disruption a warning to small businesses everywhere

The current hurt experienced by small businesses in Karangahape Road – as council enhancements of one of Auckland’s iconic streets gets underway – is a timely reminder to all New Zealand businesses to expect, plan and prepare for disruption because it comes to every business.

Vinay Iswar , Partner Accounting and Advisory at Auckland-based accounting and business advisory firm OneHQ – a firm which has clients in K’Road – says that while many local businesses may be aggrieved because they feel they only had two months’ notice of works, in reality many of those businesses have only themselves to blame.

“Don’t expect councils, governments, customers, banks and anybody else to do you any favours. When you are in business, you are on your own. It is quite literally like being in command of a sailing vessel, there will be rough weather ahead.

“The truth is that Auckland Transport and the K’Road business association have gone to extraordinary lengths to ease some of the pain, and I really want to encourage business owners to take advantage of the help that is available – including the offer of free business mentoring for 12 months,” says Iswar.

The fact that not all businesses are affected at once because work will progress in incremental blocks of three months along the length of the K’Road for the duration of the project, gives those not yet impacted time to prepare.

The season, or time of year when a business is disrupted will be significant because the majority of businesses in K’Road are retail – clothing and craft stores, take-aways, restaurants and cafes – which depend on seasonal buying patterns.

“Part of the problem is that business owners don’t know the options are available to them, so they may be tempted to throw up their arms and quit the business just when better times are ahead of them.

“Cycleways, landscaping and other features are going to make K’Road an even better destination, which means more business for the majority of retailers in the area.”

Iswar says four strategies available to small business owners facing disruption are:

1. Taking out unsecured finance to help weather the storm
2. Using a business advisor or expert to help navigate through
3. Contacting your insurance company to find out if you qualify for business disruption insurance
4. Using the downtime to train staff or renovate

“Funding, particularly unsecured loans, is not easy to obtain. On the flipside there are options, particularly because short term borrowing would be best. Funding yourself to pay salaries and rent through the down period is better than shutting down.

“Bear in mind that improvements to K’Road will contribute to an increase in business, so this is a good time to borrow and prepare for growth. You may even be able to extend your overdraft at the bank.”

Iswar says that while some small business owners fear borrowing, they should question just how serious they are about being in business because borrowing for growth is a key business strategy.

“Get expert advice, draw up a good business plan and a cashflow forecast and take that to the bank. Give financiers a plan for growth – even consider renovations that you might not be able to do when times are busy – and you’ll get the support you need.

“Surround yourself with support; a mentor, your accountant, a coach, your banker – all of these people can help you manage through,” says Iswar.

Another option is to approach your insurance company to determine if you are covered for business disruption insurance, but they may want material evidence of disruption and may also only pay out after the fact.

“The council works in K’Road, as is often the case when businesses are disrupted, are beyond small business owners’ control, so they can take back some of that control by making an active choice to take action and doing something that makes the best of a bad situation,” says Iswar.

For more information: http://nexgen.nz/


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Pike River: Families Welcome Opening Of Drift

The group representing 29 of the Pike River Families - the Pike River Family Reference Group - has welcomed the unsealing of the mine at a private family event this morning...

“Watching those doors open and seeing the light enter that dark tunnel for the first time in years was incredibly emotional. We’ve known we are going back in for a year now, today it feels like it.

“This is the start of a journey that will end with truth and justice.” More>>


Shaw First Reading Speech: Climate Change Response Bill

Madam Speaker, today we begin the task of amending the Climate Change Response Act [2002], to fulfil the commitment that we have made, as a country, to limit global warming to no more than 1.5 degrees Celsius above pre-industrial levels. More>>


Report Released: Harmful Behaviour In Parliamentary Workplace

Rt Hon Trevor Mallard today released a report containing the findings and recommendations of the independent external review into harmful behaviour within the parliamentary workplace. More>>


Housing: More Unsold Kiwibuild Houses Bought By Govt

The Crown underwrite for unsold Kiwibuild homes has been triggered for a second time. Now lack of sales in Mike Greer's development in Canterbury and Auckland means the government has had to buy back seven more homes. More>>


camouflageGordon Campbell: Why We Shouldn’t Genuflect To Security

Reportedly most (and possibly all) of the Royal Commission investigation into the Christchurch mosque shootings will be closed to the general public and to the media… More>>

PM's Post-Cab: Pike, Bullying, Carbon...

Prime Minister Jacinda Ardern began her post-cabinet press conference by announcing that the zero carbon bill would have its first reading the Parliament this week. More>>

Budget Announcements: Family And Sexual Violence Response

The family and sexual violence package, which sits across eight portfolios, is the result of the first ever joint Budget bid from multiple government departments. More>>


Deals, Sanctions, Consultation: National's Foreign Policy Plan

“National will prioritise our relationship with the United States.. National will also further the strong and dynamic economic relationship with China." More>>


Taking Children Into State Care: Minister For Children On The Nation

Simon Shepherd: ... So, we’ve seen this jump in the number of newborn Maori babies being taken from their parents in the last three years. Is that because it’s a directive from Oranga Tamariki to get involved earlier? More>>





InfoPages News Channels