As a small business owner, you’ll experience various business milestones, including highs, lows, and speed bumps, regardless of whether you’re just starting out or have an established business. Here are 20 common business milestones that you might encounter.
You’ve conducted your research, reached a decision, and are taking an exciting (and perhaps nerve-wracking) initial step. Whether you are formalising your informal business or starting a new one while leaving your day job, this achievement is all about doing things the right way, appearing legitimate, and feeling like a trustworthy business owner.
For help, see:
- ONECheck
- Choose Business Structure tool
- 10-step guide to starting a business
- How much money do I need to start a business?
- Getting business planning advice
- Companies: an introduction — Companies Office
- ACC if you’re new to businesses — ACC
- ACC if you’re new to self-employment — ACC
- Pakihi Māori – Māori Enterprise — Te Puni Kōkiri
Start-up business planning template [DOCX, 210 KB]
Instead of starting from scratch, you’ve purchased an existing business and are receiving a handover from the previous owner. There’s a lot to learn about leases, chattels, customers, marketing, and paperwork. Maybe some of the excitement has turned into reality, but you’re eager to dive in.
For help, see:
You can find out if a business has any outstanding debts on its assets by searching the Personal Property Securities Register on the Companies Office website.
Personal Property Securities Register — Companies Office
Find out how ACC levies may vary based on a business’s claims history on the ACC website.
How your claims history affects your levy invoice — ACC
If the sale includes intellectual property assets, ensure they are transferred to the new owner. The New Zealand Intellectual Property Office (IPONZ) website provides guidance on how to safeguard:
Finding a space for your business can seem like a significant step, and it certainly is!
Retail spaces, workshops, and offices are all necessary to attract customers or carry out work, which involves:
- dealing with leases and landlords – or real estate agents if you’re purchasing new premises
- paying for insurance, fit-outs and utilities.
Maintaining good cash flow is more critical now than ever before. Therefore, it is crucial to ensure that you have calculated everything correctly. Ensure that you have accounted for the total cost of the move and have a clear understanding of the future expenses’ impact.
For help, see:
- Cash flow forecasting
- How to create a business plan
- Updating a company address — Companies Office
Designing a logo, website, or business card is an exciting stage in your business journey. However, it may not always go according to plan on the first try (and may sometimes cost more than anticipated).
Before hiring a designer, it is advisable to have a set budget in mind. You should also draft terms and conditions that safeguard the ownership of your brand and ensure that you, rather than the designer, own it. This will make it simpler and more cost-effective to make changes to the designs if you ever decide to do so down the line.
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 — Intellectual Property Office New Zealand (IPONZ)
- Protecting Māori cultural intellectual property — IPONZ
- Boost your digital know how — New Zealand Trade and Enterprise
- Privacy statement generator — Privacy Commissioner
Intellectual Property Checklist [PDF, 94 KB]
Intellectual Property Checklist [DOCX, 54 KB]
Mishaps happen, be it an unreliable EFTPOS provider, a bird flying into your newly installed shop window, or a repeatedly crashing computer server.
In these situations, you need to dive in, resolve problems, and overcome unexpected obstacles. This is what defines a successful business owner.
If you can handle everything with a positive attitude, you’re doing an excellent job.
For help with unexpected disasters, see:
- Emergency and continuity planning
- Guide to supporting staff in a disaster — Resilient Organisations
- Tips, tactics & plans for managing your business through a crisis — Resilient Organisations
- Tool: How resilient is your business? — Resilient Organisations
For help with legal problems, see:
- Solving problems in and out of court — Ministry of Justice
- Dividing property when you separate or divorce — Ministry of Justice
For help if you or your employees are injured, see:
For help with unexpected IT events and fraud, see:
- Avoiding scams and fraud
- Tools to help when you have a data breach — Privacy Commissioner
For help, see:
Occasionally, employment issues may arise unexpectedly, such as allegations of misconduct, bullying, or medical incidents. The Employment New Zealand website provides helpful guidance in these circumstances.
- Resolving problems — Employment New Zealand
This is the moment you’ve been working towards – your dedication, persistence, and creativity are beginning to bear fruit.
However, successful small business owners never become complacent, regardless of how accomplished they feel. Stay committed, deliver excellent results, and create a positive initial impression. After all, repeat business is the most valuable type of business, and satisfied customers can provide vital referrals.
Depending on the size and complexity of this initial significant project, you may need to hire additional staff, even if it’s just for a brief period.
For help, see:
- Marketing and sales
- Tips on tendering for contracts
- When to hire staff
- Visual guide to employee types
- Understanding your value proposition — New Zealand Trade and Enterprise
- Understanding your market research requirements – New Zealand Trade and Enterprise
- Hiring — Employment New Zealand
- Starting employment — Employment New Zealand
If you’ve managed to skip this step, good on you. If not, try to stay calm – it’s likely not as serious as you fear.
Whether it’s a missed GST payment or completely forgetting about income tax, there may be times when the government needs to remind you of your obligations.
The reassuring news is that government agencies have dealt with these situations before, and most people navigate a compliance intervention without major issues. In fact, some end up with improved systems, such as better H&S policies or online accounting tools that can prevent human errors.
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 — Companies Office
- Director and shareholder responsibilities — Companies Office
- Complying with consumer laws — Consumer Protection
- ACC levy calculators — ACC
- Classification units to calculate businesses levies — ACC
- Compliance Matters — tool to search for laws that apply to your business
- Employment rights and responsibilities — Employment New Zealand
At some stage, you’re likely to discover that certain tasks at work are a more fulfilling or better use of your time. This is a positive development as it usually signifies that your business is maturing and/or expanding.
Common outcomes of this stage include investing in new equipment or hiring additional assistance. For some, taking these steps can be daunting because they may require a loan or, if new staff are involved, a sense of relinquishing control.
At the end of the day, it’s important to remember that you can’t run a larger business entirely on your own. Therefore, if you’ve reached this milestone, it’s prudent to do some research. This could involve:
- negotiating interest rates with different banks
- getting multiple quotes for new assets
- conducting background checks on potential hires.
For help, see:
- Systems that can help at tax time
- How to create a business plan
- Getting business planning advice
- Employee Cost Calculator
- Improving productivity and processes— Callaghan Innovation
- Increase employee engagement — Callaghan Innovation
- Pakihi Māori – Māori Enterprise — Te Puni Kōkiri
- Hiring — Employment New Zealand
- Contractor vs employee — Employment New Zealand
The excitement of advertising for an employee can quickly fade when you start receiving applications. It takes time to go through CVs and interview candidates. It may feel like it takes away from running your business. However, rushing the process can lead to hiring the wrong person.
Although it can be difficult, it is best to hold out for the right candidate. Anyone who has been through this will tell you that a bad hire will waste your time, energy and resources. It will also leave you worse off than before you even advertised.
Believe us, there are plenty of suitable candidates out there. Eventually, you will find the right one.
For help, see:
- When to employ staff
- Employee Cost Calculator
- Advertising and interviewing
- Trial periods and probations
- Employment Agreement Builder
- How to set up a new employee
For help with hiring staff from overseas, see:
- Hiring a candidate — Immigration New Zealand (INZ)
- SkillFinder — INZ tool to connect with skilled workers overseas
- Resources for hiring migrants — INZ
- Contractor vs employee — Employment New Zealand
Work and Income can help you find motivated candidates with a range of skills. For help, see:
- Business support for hiring new staff
- Partnering with industry to meet industry labour shortages
- Wage subsidies
When small business owners realise they’ve hired someone who is not a good fit, they often try to find tasks that they can trust the employee with. However, this can become more trouble than it’s worth.
In addition to the extra work, owners may be concerned about how the bad hire will affect their business reputation. The impact on other staff and the financial cost of paying someone who’s unsuitable for the role can also be a concern.
At this point, owners commonly put underperforming employees on a performance management plan and may change the way they recruit and interview candidates in the long term.
For help, see:
- Handling poor performance
- Employee exit checklist
- Employment Agreement Builder: Ending employment
- Resolving problems — Employment New Zealand
The Employment New Zealand website has advice on preventing and resolving problems. For help, see:
In retrospect, the “a-ha” moment for a business owner can seem like a no-brainer. However, before it occurs, it’s often not so clear-cut.
It could be a change in business direction, such as a café putting more emphasis on their menu instead of cabinet food. Alternatively, it could be addressing a problem, like moving on from an unreliable supplier. These realisations provide fresh opportunities, exciting possibilities or even a sense of relief.
You don’t need to go searching for this milestone, it will present itself to 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 — Intellectual Property Office New Zealand
- Making your ideas happen — Callaghan Innovation
Unless you’re one of the fortunate ones, starting, diversifying, or expanding a business usually needs funding. This commonly entails getting a loan from a bank, a family member, or having an investor on board.
Getting a cash injection can have its ups and downs. You feel more secure, better equipped, and maybe more experienced. However, it also means you may no longer have the final say on how things are run. Some owners find this liberating because they now have other people to brainstorm with. Others may find it restrictive because they are no longer the sole decision-makers.
The important thing is to use this money wisely and spend it on things that will have a positive return.
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 — New Zealand Trade & Enterprise
- Get start-up support and funding — Callaghan Institute
- IP business management — Intellectual Property Office New Zealand
10-step quick focus business plan template [PDF, 203 KB]
Items like tractors, refrigeration units, computers, and warehouses all come with a price tag, but they can also contribute to the growth of your business.
Take the time to consider if acquiring an asset will have a long-term impact, such as:
- speeding up or simplifying work processes
- freeing up time
- allowing for more business opportunities.
Also, think about how you plan to pay for it, whether through borrowing money or using your cash reserves.
Bear in mind that significant investments also often require additional insurance, maintenance, and possibly new staff or staff training. Before signing any contracts, make sure you factor in all the variables. If it still appears to be a wise choice, go for it. It could turn out to be the most intelligent business decision you make.
For help, see:
- Common business assets checklists
- Introduction to managing assets
- Keeping track of key metrics: Utilisation rate
- Depreciation
- Funding explorer tool
- Choosing the best commercial insurance — Resilient Organisations
- Hiring — Employment New Zealand
If something goes wrong, such as receiving faulty goods or being misled by a seller, you should check your rights on the Consumer Protection website’s page on Faulty goods and services bought by businesses.
At some stage of your business journey, you might find yourself asking, “What’s next?”
Soon after, you may consider going in a new direction, introducing new products or services, or finding new customers. It can feel like starting over again, but this time you’re more experienced in the commercial world.
At this stage, it’s common to pay closer attention to what’s earning you profits and what’s costing you money. If you examine the numbers closely, you might be surprised to find that your catering service is earning more than your restaurant or that your old truck is costing you thousands of dollars each year in petrol and repairs.
Being observant and seizing opportunities can benefit your business. Remember that big things can grow from small beginnings, so don’t overlook 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 — Intellectual Property Office New Zealand
- Supporting Māori business — Ministry of Business, Innovation and Employment
- SkillFinder — Immigration New Zealand tool to connect with skilled workers overseas
- Understanding your capability and capacity — New Zealand Trade and Enterprise
10-step quick focus business plan template [PDF, 203 KB]
If you’re considering increasing your workforce, Work and Income provides guidance on its website.
For help, see:
Business support for hiring new staff — Work and Income New Zealand
When an opportunity arises, seize it, but make sure to assess it first.
This can happen when a competitor retires, a complementary business is put up for sale, or a valuable property becomes available. These opportunities may come unexpectedly, so it’s important to act swiftly and with professionalism.
This entails initiating financial discussions with your accountant or bank or consulting with lawyers regarding business structures and crucial documents.
This is also frequently the moment when a spouse or children might become involved in 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 — Companies Office
- Intellectual property business management — Intellectual Property Office New Zealand (IPONZ)
- Making the most of your intellectual property— IPONZ
10-step quick focus business plan template [PDF, 203 KB]
There are few things in business that feel better than seeing your bank account grow. Not only does it make you feel encouraged and accomplished, but it also motivates you to take further action.
At this point, it is common for business owners to reinvest in their business by hiring extra staff, purchasing new equipment, or providing training to current employees.
Once you have reinvested, set a new sales target to aim for. This will help keep you focused and motivated to achieve your goals. Now, go out there and make it happen!
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 — Ministry of Business, Innovation and Employment
- SkillFinder — Immigration New Zealand (INZ) tool to connect with skilled workers overseas
- Resources for hiring migrants — INZ
10-step quick focus business plan template [PDF, 203 KB]
Expanding your business overseas requires careful planning and execution. It takes a visionary business owner to dream big, create a strategy and work towards it.
Typically, businesses expand overseas through exports, such as winning tenders to provide services abroad. This can be incredibly rewarding as you see your business grow in new and larger markets.
However, it is important to be cautious. Things may not go smoothly at first. Seek help from experts such as sales agents, translators, intellectual property lawyers or customs brokers to ensure your business is successful overseas.
For help, see:
- What you need to know about exporting
- Create a good export plan
- Getting export support from the government
- Export Essentials: your best-practice guide to selling overseas — myNZTE
Going through a restructure can be a challenging experience for both employers and employees. If you reach this point, you may be concerned about the legal process, the potential reactions of your staff, and the guilt that comes with letting people go.
However, what is often overlooked is the chance to improve your business by refining your human resources, cash flow, and operations. Once the restructure is complete, you may even wonder why you didn’t do it sooner.
As a result of this milestone, many businesses opt for ongoing external HR support, which can be a worthwhile investment if it fits within your budget.
For help, see:
- Team restructuring
- Keeping track of key metrics
- Employee protection provision – Employment Agreement Builder
- Updating directors’ details after a change — Companies Office
- Redundancy — Employment New Zealand
- Redundancy support — Work and Income
- Restructuring when a business is sold — Employment New Zealand
At some point, businesses either shut down or get sold due to various reasons like new opportunities, retirement, or health issues.
For those who opt to sell their business, it can be a huge relief for the owner. However, it involves a lot of paperwork, so seeking expert advice from a lawyer or accountant is a wise move. Additionally, it’s crucial to inform government agencies such as Inland Revenue and the Companies Office.
To avoid any complications, ensure that all paperwork is completed before transferring ownership of the business.
For help, see:
- Selling your business
- Stepping back from your business
- Closing your business
- Simple steps to protect your intellectual property
If the sale includes intellectual property assets, it is important to transfer them to the new owner. You can find tips on managing IP assets and advice on how to protect them on the New Zealand Intellectual Property Office (IPONZ) website:
If you’re selling or closing your business, it’s important to notify ACC. You can find guidance on what steps to take on the ACC website:
Bankruptcy or insolvency is not something most people think about when starting a business. Nevertheless, it can happen. If you find yourself in this situation, it’s common to feel stressed about the process. Fortunately, you’ll typically receive support from a liquidator or official assignee.
To make the best of the situation, ask questions and seek clarification, especially if something seems unclear. You’ll want to know:
- what money is available to you
- details of any debt repayment plan
- any commercial/ business restrictions on you.
It’s important not to assume too much. If you’re confused about something, make sure to ask for clarification. Find out what money is available to you and understand any commercial restrictions that may be placed upon you.
Keep in mind that bigger and better things could be just around the corner. It’s good to know where you stand so that you’re prepared if a suitable opportunity arises.
For help, see:
- Warning signs of trouble ahead
- Is closing your business the right choice?
- Insolvency and involuntary closure
- Is your business in difficulty? — Companies Office
- Summary Instalment Order calculator — Insolvency and Trustee Service
If you or your business is taken to court, the Ministry of Justice website provides guidance on what to do if you need to defend:
If your business is insolvent or you have declared bankruptcy, it is important to inform ACC’s Business Service Centre.
If you have employees in your business and are facing insolvency or bankruptcy, the Employment New Zealand website offers advice on how to handle redundancies.
Are you struggling with accounting and business management for your business? We are here to help! Get in touch with us to discuss how our expert services can support your business’s success. Contact us today to schedule a free consultation and see how we can add value to your operations.
