New Zealand is a weird shaped country on the edge of the earth with only 4 million people.
If we were shaped like Singapore (a circle) and still geographically positioned we’d be better off in terms of internal logistics and transport costs. If we were our current shape but located in Asia, Europe or the Middle East we’d be fine because we’d have easy access to significantly larger markets.
But we are here – which is wonderful for many reasons including business ownership but it comes with unique challenges. We believe that, since the Global Financial Crisis (GFC), New Zealand is well positioned economically and socially for growth – providing we understand how to adapt to the challenges of the modern world and make the new environment work for us domestically and internationally.
The shifting economic powerbase from the US and Europe to Asia has been accelerated by the GFC which has impacted on New Zealand’s major export markets and affected revenues of both exporters and domestic businesses.
However reports by banks and major accounting firms are now showing positive business behaviors resulting from these challenges. Specifically, many SME businesses are actively communicating to and engaging with customers. While this may seem obvious, it is challenging for many, requires specific skill-sets and can be very costly if it doesn’t work. Similarly, active management of accounts (debtors, cash flow and related costs) often slides in busy periods and usually captures a lot of value.
We encourage you to re-focus on these disciplines as it should positively impact on profits. Please call us to talk through these issues including the positioning of your company for future growth as the market lifts.