Good to do business with you.
For the last few years, New Zealand has been branded the best country in the world for starting a business. The film set for Lord of the Rings is famous for its expanse of beautiful landscapes, indigenous Maori culture, and (annoyingly) its second-to-none rugby team.
Yet why does this picturesque duo of islands lend itself so fittingly to do business?
According to a survey carried out by Inc. you can start a business in New Zealand in just one day. This is made possible by such uncomplicated access to the things needed. All the necessary government agencies are available online, so licences etc. are readily available. This speedy inception means that businesses can be first off the mark, hitting the road running.
New Zealand’s business climate has remained relatively stable coming out of the recession; far better off than its Northern Hemisphere counterparts. For example, according to the World Bank, New Zealand was ranked 24th in World Bank rankings for gross domestic profit (GDP) per capita, whilst France was 23rd and the UK 25th. Yet, in the recession, unemployment rates rose by 3.0%, to 6.8%. This is equivocal to 1.2 percentage points, compared with the 2.0 percentage points in the UK. Whilst this is still significant, it is ones illustration of the stability of the NZ economy in comparison to our own, or the US (3.3 percentage points).
Obviously, this has it’s downsides for a foreigner trying to start up a business in the Land of the Long White Cloud, the NZ dollar has appreciated meaning you can get less for your money. However, to counteract this, the government over there have cut corporate tax, from a rate of 30%, to 28% hugely in the favour of investors. There is also no capital gains tax, and relatively low living costs helping to offset the challenge of raising local investment.
This is all well and good for a people over 11,420 miles away, but how is this relevant to us in the UK? I’m not suggesting that we go for a mass migration to NZ and how can we learn anything from Kiwi businesses when our economies are vastly different?
The chain of command within a business is generally much simpler. If, as a start-up, you are able to work hard without succumbing to stress and chaos you may be able to instigate a slight resemblance to the successful New Zealand businesses. One way of doing this is ensuring proper organisation is in place, so you are ready for the volume of work which will inevitably come your way. Wait a second, I think we know a piece of software that is good for that sort of thing...
6 degrees of separation is too many as a small business. Network. Get to know people who can be helped by your business. Get to know people who can help your business. Even get to know people who are direct competitors to your business. Forming a tight network around your business “is the single most powerful marketing tactic” (Adam Small), a catalyst for getting your brand out there. As much as we’d like to think it’s our pure brilliance that has brought us to where we are, interestingly enough it’s not just what we know, or even who we know, but also about who knows you.
Implementing these should help your business to flourish in the way, the world’s best start-up country. For help with organisation and management, contact us to see what we can do.
Having said that, maybe just move to New Zealand…
How could you say no?