Get the best out of your business

With more than 90 percent of businesses in New Zealand categorised as small to medium enterprises (SMEs), Jayson Hayde, Bayleys’ national director business sales, said the sector can take a bow for the fortitude displayed during the pandemic’s path.

“For the most part, SMEs have weathered the onslaughts and I am humbled by the grit displayed by the business community as they’ve navigated the last two years.”

In partnership with business advisory entity The Alternative Board, Bayleys has released the Summer Pulse Check based on survey responses from 3,520 small to medium-sized New Zealand-operated businesses.

While there has been an uptick in sentiment since the earlier spring survey when business owners were at their lowest ebb, there are still some compelling challenges ahead.

“Respondents indicated that vaccination mandates have not had a huge impact on workforces or businesses per se, but three quarters of business owners surveyed report they are having to manage significant labour issues,” Hayde said.

“This includes skills shortages, juggling staff absences and retaining key staff through the Omicron outbreak.

“Aside from staffing, the main stressors seen now are rising input prices and lack of sales – with supply chain woes not far behind.”

Respondents also confirmed that some SMEs need more financial support packages, working capital and customer relationships are holding steady for now and it’s too early to know how new business lending frameworks will ultimately play out.

“The learnings that have come out of the last couple of years will strengthen business operational models should we ever face such disruption in the future, but the lessons have been hard won,” said Hayde.

“Taking emotion out of the business equation has been necessary for survival, but the question ‘what is best for my business?’ has often been very confronting.

“The Government has expected a lot from businesses under the COVID-19 protection framework and SMEs have responded by doing the right thing for the greater community good.

“Business support payments have not gone far enough to address the continuing challenges in the marketplace resulting from COVID limitations.”

Hayde acknowledged the big hit taken by the hospitality sector, but applauded the “shop local” response as people got behind local businesses in their communities to keep trade alive.

He said certain businesses have actually thrived through the pandemic and believes some exciting new business models will emerge from the economic and social reset.

“Innovative opportunities and pathways will be identified and given that the Kiwi number eight wire philosophy is embedded in small business DNA , I expect to see some cool ideas emerge.

“In another upside, stakeholders have seen the importance of teamwork throughout this pandemic with landlords, bankers, business owners and staff all having to pull together and work for a sustainable outcome as the goalposts continually shifted.”

With borders reopening, and commerce wheels starting to turn again, Hayde is optimistic that the SME segment of New Zealand’s economy will once again thrive.

“We have the advantage of being able to look and learn from those countries ahead of us in the pandemic cycle and New Zealand’s comparatively successful record in keeping a lid on the virus’s spread will no doubt enhance our reputation as a safe haven.”

The Alternative Board supports small to medium sized businesses and their owners through advisory boards consisting of other local business owners, expert one-on-one coaching, a suite of business planning tools, and business mentoring.

Bayleys and the Alternative Board have entered a partnership to work alongside and support New Zealand’s SME community with real-time, up-to-date data and insights.

If you are keen to explore options for your business strategies, or create a robust business plan, contact Jayson Hayde - National Director of Business Sales today.

* The Alternative Board’s Summer Pulse Check surveyed 3,520 of its members and associates between 18 – 24 February. Results have a confidence level of 90% and a 5% margin of error. The full results can be seen here.