Small Business Is Going To Have A Happy New Year
Why NZ Small Business Is Going To Have A Happy New Year
Media Release From Hayes Knight NZ
NEW ZEALAND.,/December 21, 2000/MediaNet International-AsiaNet/-- Christmas may come more than once a year for small business in New Zealand according to small business accounting and business advisory group Hayes Knight.
"Our assessment is that small business will start to see a real difference in 2001 with more customers coming through the doors and more money being spent," Matthew Bellingham, Partner of Hayes Knight NZ said today.
"The strategy to date for many businesses has been to hold off major expenses and see what happens. This is all starting to change and the effects should be felt through the small business sector in 2001."
Mr Bellingham said that there are a number of factors, from current economic and business information and anecdotal evidence that indicates a change.
The recent National Bank business confidence survey shows that a net 19% of surveyed firms expect general business conditions to improve next year.
According to the same survey, consumer confidence has also increased which should flow through to higher spending levels in the domestic economy.
The dollar has strengthened which will help importers and keep the cost of our imported goods down, but it is still at a level where exports will continue to boom.
The strong growth in the agricultural sector is starting to flow through into the domestic economy. This in turn should flow through to the SME market.
Interest rates have held, although there is a prospect of an increase of perhaps 0.75% early next year that may dampen consumer and business sentiment.
But Mr Bellingham said the gains would be made by businesses that react swiftly to the changes in the market and make the most of them. While greater economic confidence will go some way, the real winners will be those that assess where the opportunities lie. The keys are to:
*Identify niche markets
*Differentiate instead of reducing prices to compete
*Value add products
.*Create packages or suites of products to entice and create a
sense of value for the customer.
*Remove the purchasing risk for customers by creating
*Don't recreate the wheel - Form strategic alliances with
business partners that add what you can't.
Bellingham, Partner, Hayes Knight NZ
09 414 5444 (office), 021 676793 (mob).