A word from Poutama CEO, Richard Jones

	Richard Jones

Welcome to our revised newsletter which has been in abeyance for some time and has now been resurrected Poutama aims to get this newsletter out on a monthly basis so please feel free to provide us with stories and updates on your business activities we would love to hear from you.

I recently pondered the fact that just about every time you read the paper or watch television news there is so much doom and gloom around the current recession, demand for products and services is slowing, businesses are closing down and people are becoming unemployed. As I get around the countryside and talk to Maori businesses they all know that something is going on but generally they are positive about their business operations. Sure they seem to feel that at some stage they may be effected but it’s good to hear they are taking measures to ride the economic storm out. Some of these measures include; increasing their marketing, spending on research and development and most importantly getting closer to their customers.

The key issue though for many of these businesses is in keeping the lifeblood of a business, CASHFLOW, going. CASH is KING if you’ve got cash your still in business if its flow is slowing then you need to start thinking how you are going to handle this situation. It may mean delaying expansion projects, focusing on monitoring costs and expenditure, reviewing your pricing, chasing up slow payers and even considering reducing hours rather than laying people off, and once again getting closer to your customers. Opportunity also abounds during such times so you need to think not only about surviving but also about thriving.

Being in business at times can be lonely so I urge you to keep networking with other businesses and to take advantage of the free business advice and information that is available from the likes of the Te Puni Kokiri Business Facilitation Service http://www.tpk.govt.nz/en/services/business/   your local Economic Development Agency http://www.edanz.org.nz/  , NZ Trade & Enterprise http://www.nzte.govt.nz/section/11733.aspx  , Business NZ http://www.businessnz.org.nz/  , the Employers & Manufacturers Association http://www.ema.co.nz/ .

Planning, training and networking take on even more importance in the current economic environment, having people to confide in and share ideas and experiences with can certainly help you in such difficult times. Poutama is currently in discussions with service provider Business101 www.business101.co.nz to support Maori businesses to take part in their business coaching, mentoring and planning programme. At $49 per week the programme offers good value. The Business101 programme is currently only available in the Wellington region in due course though they plan to roll it out to other parts of the country.

Access to finance continues to be an issue for businesses with banks now tightening up their credit criteria so it was good to see the recently announced ASB Bank lending initiative whereby they will establish an NZ$1 billion loan fund at below market rates http://www.sharechat.co.nz/news/scnews/article.php/fc4d0fc1 let’s hope other financial institutions follow suit. Speaking of such initiatives Poutama is working on a partnership arrangement with Kiwibank in helping to facilitate access to their loan products, more on this will be announced soon.

Remember no matter what is currently happening it’s important to keep in mind that this is a cycle good times will return, being aware of what is going on around you, managing for change, planning and preparation will go a long way towards helping you can come out of this recession stronger and ready for the upside!!

Smart - Adrienne Pierce

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Adrienne Pierce

Iwi - Ngati Maniapoto
Hapu – Ngati Rora
Marae - Te Kohanganui - Te Kuiti

Adrienne Pierce makes a simple observation summing up the drive behind the third in a trio of highly successful businesses she’s started from scratch.

“There are 300,000 businesses in New Zealand who employ between zero and 10 people and we want to be the admin solution for only 10,000 of them -  how hard can that be?”

It’s that resolute conviction, self-belief, complete faith in her team and dogged determination that sets this Ngati Maniapoto business builder apart.

She’s talking about Smart, a franchise she co-founded with her sister striving to save business owners time and money by providing phone, administration, financial and payroll services or day-to-day office support.

Even in today’s tough economic climate her optimism is relentless. She wants Smart to be a shining example of the theory that a recession can create amazing opportunities for the right types of business.

We are quietly optimistic in the present climate because our business can provide cost effective solutions to businesses, more than a fifty percent saving on employees delivering administration on site, she said.

“This may mean the business owner will restructure their admin team to outsource which is unfortunate but this is where some businesses will survive and a lot will fail. Tough calls need to be made and fast. It’s not rocket science and never has been - cut overheads and keep cash flow positive.”

She said Smart’s services would have been invaluable in getting both her previous companies off the ground.

The idea for Smart came about when she noticed a tradesman take more than 19 calls in one afternoon while working on her house. She thought it was such a waste of his earning potential and set out to find a better way.

Established in 2003 she says Smart has already developed and grown but was still very, very young in business terms granting seven territories throughout New Zealand but aiming for 35.

No stranger setting and exceeding such ambitious goals Adrienne is well known as a ground-breaker and outstanding performer in the franchising industry in New Zealand.

A former nurse, Adrienne founded Bay Nursing Network in the early 1990s and followed it by co-founding the PORSE Network group of companies in early childhood education programmes and early childcare education training and childcare services.

At the time she was the mother of sons aged eight and nine and as a single parent it was pretty momentous time for her.

“Self employment seemed to me to be the only option to give me the income and the freedom I needed to raise my children.”

With a background in nursing it made sense to be involved in a business in which she had sound knowledge.

Smart was established in 2003 following her selling her 45 per cent shareholding in PORSE.

She and her sister, Sue Sarich, were initially really unsure whether they had a product or service or if anyone would want to buy it but from day one Smart was set up to franchise.

”My last business expanded and grew its brand by franchising. Other people buying into the dream - your dream became theirs so I was blown away by the power of that belief I suppose,” says Adrienne.

What she especially enjoys about franchising is that people who would not necessarily be able to start their own business or be able to develop something from a blank page, can have that opportunity.

Adrienne has an extensive knowledge of the establishment and operation of a successful franchise business.

“I am a great believer in franchising, having seen the benefits for both the franchisor and franchise owner first hand,” she says, “In my experience, franchising is the most efficient, effective way to build a business.”

She has been a key driver in taking both these Hawkes Bay franchise companies from an idea, or a blank page, to the sale of franchises and establishment of their nationwide franchise network.

She has been a member of the Franchise Association of New Zealand for nine years and a Board Member since 2003.

She has never bought existing businesses, copied other businesses, bought franchises that had recipes developed or inherited piles of money or family businesses.

“Some days I feel different, other days righteous but often stupid with a capital s. You have to keep the faith and some days that can be tough.”

According to Adrienne employing people has been one of the most rewarding aspects of her 17-year journey of self- employment, while also offering up the most challenges.

She has employed in the vicinity of 200 people and is proud of the fact she has not encountered one personal grievance.

Although she jokes she did have one employee who could have sued her for stress.

“The payroll at PORSE when she started was at a few hundred thousand dollars and exploded over five years to a $9 million dollar payroll – she does still talk to me and so does her husband which is nice.”

She also talks about the importance of surrounding yourself with the right people at the right time.

“I think I have done that quite successfully in my businesses, often head hunting the right people. You know – what do we need, who’s best in the country, right I’ll give them a call.”

Glenice Hibbard, one of the country’s most experienced franchise executives, is one of those people and the franchise manager for Smart since April 2006.

She and her partner moved to Hawkes Bay from Auckland to work with Adrienne for which she is forever grateful.

“She took a huge leap of faith.”

Having the right professionals behind you is paramount, says Adrienne. Her husband Alan, while being her biggest supporter, is a lawyer specialising in commercial and franchising law.

He along with Adrienne, Glenice and former Farmlands Chief Executive Officer John Newland as advisory board member, make up Smart’s board.

Find more information about Smart at www.asmartbusiness.co.nz

 

Tiwi Islands Visit

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Complete respect, professionalism and admiration were words used by elders from Australia’s Tiwi Islands to describe Maori business saying they were “blown away” during their recent three week New Zealand visit.

The group, hosted by Poutama, was lead by Tiwi Land Council (TLC) chairman Robert Tipungwuti and included managers Cyril Kalippa and Matthew Wonaeamirri, marine ranger Andrew Tipungwuti, executive secretary John Hicks, Bernard Tipiloura, Gibson Farmer, land and resources secretary Kate Hadden and Carla Hicks who was documenting the trip.

Their trip included visiting Waitangi on Waitangi Day, businesses such as Aotearoa Fisheries, Te Awanui Huka Pak, Te Puia, Wakatu Incorporation, Huia Publishing, Whalewatch Kaikoura, Tamaki Heritage Experience and Okains Bay Seafoods Ltd. They met with the Ministry of Maori Development, Te Ohu Kaimoana, the Federation of Maori Authorities and Crown Forestry Rental Trust. They went on a riverboat cruise, visited farms and orchards and went whale watching in Kaikoura.

Speaking from Kaikoura Andrew Tipungwuti said the group was completely inspired by the Maori businesses they saw and they could not wait to return home to share what they had seen and taken part in.

“We saw five whales out whale watching. Their average is usually two. It was magnificent. We’ve never seen anything like it. The professionalism, the whole thing has just blown us away.”

Some of a group of nine Tiwi Islands council members out whale watching in Kaikoura during a recent three week visit hosted by Poutama.

He hoped the group’s experiences would inspire the people of the Tiwi Islands.

“Once they have seen the vision of what has been achieved by Maori in New Zealand we hope it will inspire them to take on that broader perspective, inspire change.”

He said currently Tiwi people were focusing on today rather than thinking of sustaining a future.

“What we’ve heard as we’ve travelled throughout this country is that it is not easy, Maori have struggled but now businesses are prospering and investing for future generations.”

Mr Tipungwuti said in tourism, for instance, his people were masters in arts and crafts but now it was time to market that skill in a significant scale, like Maori.

They were also experienced in forestry with more than 30,000 hectares planted throughout the islands. They were skilled in mining and planned to revive an aquaculture industry based on sea-caged barramundi and they wanted to venture further into the tourism industry. Education had been identified as the management tool needed to manage these industries, to ensure the Tiwi would be effective business partners in these commercial ventures in future.

Mr Tipungwuti said under a land reform package being negotiated with the Federal Government, the Tiwis would be the first indigenous people in Australia to own their own homes on traditional land.

He said he hoped through the group’s visit to New Zealand the indigenous people of Australia would be able to see people with a vision, succeeding.

“We want them to think like Maori have, that financial benefit should not go towards personal gain, that it should benefit an entire group. We hope, with the persuasion of our leaders, our people will think like that.”

Mr Tipungwuti acknowledged the struggle of Maori.

“We’ve spoken to a number of organisations across NZ and they all tell us it’s been a struggle but they’re moving forward and investing for future generations. We have to do the same thing.”

They planned to show people verbally and on DVD the possibilities of what could be achieved and how it could be achieved.

He said the population was increasing in the Tiwi Islands and with that growth there was a great demand for jobs and training and a better lifestyle. The group hoped with everything they had seen, from the celebrations of Waitangi Day at Waitangi to whale watching in Kaikoura, people at home would be as inspired as them.

“Carla has documented our entire experience so we’ll create a DVD and not only verbalise our experiences, but show them what we’ve seen, how decisions have been made by Maori in New Zealand and under what circumstances.” said Mr Tipungwuti

Under the guidance of the TLC, education and economic development had been targeted as the drivers of the Tiwi Society into the 21st Century.

Made up of Melville and Bathurst Islands based north of Darwin in the Northern Territory, the council was determined to replace the welfare and work for the dole lifestyle, so depressingly common across indigenous Australia with a real economy based on resource development, land reforms and jobs.

As their tour was ending, Mr Tipungwuti said he was reflective and grateful.

He thanked all the businesses and professionals they had met along the way but smiled as he thought of his return to the Tiwi Islands.

As the island’s marine ranger, he joked he’d been feeling a bit anxious while he was away.

“Those recreational fisherman will be having a field day, but they better watch out, I’ll be home very soon,” he said.

Tourism Sector View
– from Poutama Trust Advisor Oscar Nathan

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What a difference a year makes.  While many of us were busy going about our business last year; across the globe big corporates, banks and money markets were driving us (and the rest of the world) towards a global pile-up.  Fuelled by over-inflated values and generally dodgy sub-prime and zero interest mortgage rates; the shocks are now rippling around the world’s leading economies, and unfortunately for the New Zealand tourism industry it clearly indicates a non-business as usual environment for 2009.

Today we find ourselves in this awkward situation, a place many of us have been before, yet few care to remember.  A time when unemployment is on the up, consumer confidence and spending down, assets spent a lifetime acquiring on the slide and if that’s not bad enough, the more we try to work out what’s likely to happen in the months ahead, the more uncertain it all becomes.  Unfortunately, the issue of most concern is the fact that many of the key economies in decline also represent our top visitor source markets; Australia, US, UK, Germany, Japan and China.

For a quick trip around these key markets we acknowledge Tourism New Zealand input into the following;

Arrivals up 1% December
Total arrivals for the year down 1.7% to 212,410

The US, the first into the recession and the centre of banking collapses, has been in recession for a year but during that time a new President has brought in a ray of hope. Billions of dollars have been poured into failing banks, the car industry and “shovel ready” projects – Government funding for infrastructure projects aimed at keeping unemployment down and the economy moving.

The US is still in the midst of recession and concerns about job security are widespread.  However, there are also people still working and looking to travel.  A weaker New Zealand dollar and discounted airfares are making New Zealand a more affordable place to visit for the first time in years.  New Zealand was recently listed in a US magazine as one of the world’s top 10 affordable places to visit.  But the effects of the economic downturn on overseas travel are becoming obvious. After five years of 5% plus growth in long haul outbound travel, departures from the US were static during the first nine months of last year when compared to the same period a year earlier. Inbound to New Zealand in 2008 dropped by 1.7% compared to 2007.

As New Zealand’s second-largest long-haul market for arrivals, the potential of the US market has yet to be fully realised and the slowdown could provide that opportunity for New Zealand to rebuild a stronger market presence.  Tourism New Zealand has just launched a new $3 million US campaign – giving Americans ‘The New Zealand Lifeback Promise’.  Discovery Channel presenter Dhani Jones will spend nine days in New Zealand in February filming a series of short documentaries, which will showcase the revitalising experiences North American travellers can expect from a New Zealand holiday.

UK arrivals down 4.5% December
Total arrivals for the year down 2.6% to 285,094
Germany arrivals up 8.8%
Total arrivals for the year up 4.2% to 62,300

In the UK, the ‘What Do You Say, UK?’ campaign launched in September has gone well and helped hold the overall decline in visitor numbers to 4.9% between September and December in 2008 compared to same period in 2007; holiday arrivals fell 4.4% over the same period.  Air New Zealand recorded its strongest global sales week in the second week of January 14, helped by ticket sales from the US and UK. However, the outlook for the UK is increasingly bleak with recession formally declared at the end of January and thousands of job losses in the past few months.  TNZ are not positive about the UK and the feedback from their UK office and the industry here is that arrivals will fall off dramatically after March. It is hoped the new campaign will be able to hold that decline to a drop of between 5 and 10% in the three months to March.

The same picture is not being repeated across Europe and many markets have not yet been affected, partly because they pre-booked their trips, but a fall in forward demand is emerging.  Overall, Germany’s economy is seen as being better able to withstand the financial shock and Tourism New Zealand is looking at ways to maximise the opportunities from that, and other European markets.

Arrivals down 14.4 % December
Total arrivals down 15.8% for the year to 102,482

Japan continues to disappoint and the economic situation there had deteriorated. Japan entered recession – two quarters of negative economic growth – in mid November and the country’s reliance on exports has lead to a serious slow down and job losses.  Tourism New Zealand continues to work with the trade, particularly Japan’s largest travel agency JTB, to develop better high-end product.

Arrivals up 1.8% December
Total arrivals down 7% for the year to 112,398

China’s economy has slowed from 13% in 2007 to 6.8% last year, but Shanghai, the centre of Tourism New Zealand’s campaign work, continues to show confidence. The 100% Pure New Zealand campaign has been running again since February.  Since August, the growth in arrivals had been slowing, but an upswing started in September. However, the lucrative business sector has dropped off by 59.4% since June 2008 compared to June-Dec 2007, when business travel was suspended by the Government, and there is little chance it will recover in the near future.

Arrivals up 5.6% December
Total arrivals up 2.7% for the year to 976,200

Tourism New Zealand is looking to its closest market, Australia, to help weather the immediate storm. The Australian dollar is weak against most major currencies, aside from those of New Zealand and Canada. There is plenty of air capacity and fares are low and the new Australian campaign has been going well over summer. Behind the scenes, Auckland Airport has been working hard to encourage more airlines to add Auckland to their flight schedules. Tourism New Zealand's new campaign marks a significant shift in focusing on the experiences people can have – invigoration, luxury, family and skiing – rather than the seasons, which had formed the centre piece of the campaign in previous years.  Overall, arrivals from Australia have been up 3.1% over the three months to December – holiday arrivals were up 1.9% and those visiting friends and family up 8.1%. Work is now being done to see if there is anything further that can be done to stimulate Australian demand for trips through to Easter, in April. An early-bird ski ad is ready to launch on February 9.

No reira - if there is only one thing we know for certain about the year ahead, it’s simply that it will be unlike any, for many of our Maori tourism businesses.  Those fortunate to look back on this period with success are those that learn to innovate, to provide exceptional service, to do more with less and to continue to deliver quality and provide competitive value – no small feat. 

Definitely a time to let that Maori entrepreneurial juice flow.

Rebecca Cass - Baby Angel

 

	Rebecca Cass

Iwi – Rangitane
Hapu – Rangitane
Marae – Omaka

If you can grow a business in a recession, you have the opportunity to focus on the fundamentals of your operation and build and a solid base that will allow your business to fly when the recession is over, says Rebecca Cass of Baby Angel.

A busy mum and former nurse, she said like everyone she’s had to make changes, but a summer holiday and time out to revaluate her goals has lead to 2009 beginning with her best months ever.

“Keeping overheads low, doing a bit more myself and being more clever with marketing will be key for us this year.”

She said it also appeared in a time of recession people were looking for more tangible gifts to give parents of new babies. Which works with Baby Angel as its services are completely unique, offering fresh meal hampers delivered nation wide, and packages of home help.

Experienced in paediatric, neonatal, and obstetric nursing, Rebecca established Baby Angel in March 2007 when she saw a real need for a service that provided all the extra care and support missing for new parents. Many mums were sent home within days, or often hours, after delivery, she said.

Being a mum herself she knew what it was like to go home exhausted with all the responsibilities of a new baby and thought about what new mums needed.

“They need meals cooked, help around the house and help with their newborn babies. It’s the care and support your whanau would provide however not all of us have that at hand when a new baby arrives.”

Two years on Baby Angel has helped a hundreds of parents with those first few weeks at home, including helping new mums and dads settle and understand their babies, regular daily home help for a few weeks, or delivering meal hampers all over New Zealand.  

She said experienced mums shared the art of mother craft, nurses visited and taught parents all the tricks to having a settled and contented babies and a team at the boutique restaurant ensured each individual family meal was made with the freshest premium ingredients available locally. 

Baby Angel is now delivering meal hampers across the country on a daily basis and fielding inquiries from all over the world.

She said last year two things became obvious. The majority of her customers were gift givers wanting to send a unique gift to their loved ones and they needed to be able to purchase online.

This lead to the development of a new Baby Angel website and online ordering system where clients could book and pay online. The website was launched in September last year. Since the launch of the website baby angel has experienced 300 per cent growth.

Rebecca said it was important to be adaptable in a changing market and Baby Angel tweaked its offerings to meet the market.

The introduction of gifts at lower price points was as example of that. Baby Angel now offered gift boxes of cupcakes and slices at less than $40 and they had been hugely popular, she said.

“Our entry level food hamper, a family dinner and dessert parcel, is $80 but now we can offer a $40 gift which is a lot more affordable and still less than a bunch of flowers.”

There had been many challenges along the way, said Rebecca.

Her business started from humble beginnings including a simple brochure in her local café and her doing almost everything.

Rebecca Cass - Baby Angel

“ I’d be dropping my kids off at school with vacuum cleaners, buckets and mops spilling out of my car, I’d be off to scrub someone’s floor or clean someone else’s bathroom.”

Now she has five ladies who she contracts to do the home help, one of whom she is setting up her first pilot franchise with.

Other challenges she faced as her business grew included how to transport perishable food around the country.

The company worked with a number of suppliers and contractors and growing the business from scratch had given her the opportunity to make sure every link in the chain was strong.

“We have a number of logistics that are essential in our business model. From the suppliers of our various food items to the packaging and courier services we use for the meal hampers.”

She said having a close eye on all aspects of the business from the beginning allowed was paramount in building those relationships.

“My suppliers understand how special Baby Angel is and through my close relationship with them  they go  the extra mile and feel like they are helping someone and doing something good.”

Her focus is now on growing the business, and letting people know that when a new baby is born the most precious and valuable gift is time and care - if you can't be their to give it  - baby angel can. She wants to deliver a service that truly makes a difference in the lives of families – and that’s Baby Angel’s aim.

For more information - www.babyangel.co.nz

Poutama Calendar of Events / Regional visits for March 2009

In each edition of Poutama’s monthly newsletter staff will publicise scheduled road trips and any networking events they will be attending in this calendar. They encourage you to contact them in advance if you would like to meet with them while they are visiting or attending events in your area.  The calendar also highlights upcoming events featuring a range of industry and Maori business activities so please contact us if you have an event you would like us to add to the calendar by emailing kylie@primal.org.nz

Richard Jones

March 1 – Cromwell, Southern Maori Business Networking event
March 2 – Queenstown/Christchurch
March 3 – Waikato/Hamilton
March 6 – Wellington, Hui Taumata – Maori Initiatives in Changing World Hui
March 10/11 – Rotorua, Bay of Plenty
March 23/24 – Offshore, Sydney
March 26 – Wellington March 30/31 –Auckland

Oscar Nathan

March 3/4 – Tauranga
March 6 - Wellington, Hui Taumata – Maori Initiatives in Changing World Hui March 16/31 – Offshore – France & Italy
April 1/10 - Offshore - UAE, Abu Dhabi & Dubai

Vonese Maxwell

March 2 – Gisborne
March 6 - Wellington, Hui Taumata – Maori Initiatives in Changing World Hui
March 12 – Tauranga
March 18/19 – Auckland
March 25/26 – Kaitaia / Bay of Islands / Kawakawa/Whangarei

Tom Manaena

March 6 - Wellington, Hui Taumata – Maori Initiatives in Changing World Hui
March 11 - Dunedin - Fashion Week
March 12 - Invercargill
March 25 - Whanganui

Contact Us

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Tom Manaena, Commercial Manager ( 021 538 838 or 04 495 1132) – Tom is responsible for the finance, investment and accounting side of the business and also spends a lot of time out on the road covering the lower North Island, Auckland, Hawkes Bay, Central and Upper South Island regions. He also deals with clients at all levels and in all sectors.

Oscar Nathan, Business Adviser (  021 801 559 or 07 348 8903) – Oscar covers the wider Bay of Plenty and East Coast regions and deals with clients at all levels and in all sectors.

Vonese Maxwell, Information Manager ( 021 683 681) - Vonese covers the Auckland and lower North Island regions. On occasion she also goes into the Taitokerau region. She deals with clients at all levels and in all sectors.

Gail Maxwell, Office Manager ( 021 375 090 or 04 473 2652) – Gail is often the first point of contact for Poutama clients. She also supports Tom with the accounting function and provides back up to all of the team.

Kylie Stafford - Primal Ltd, Communications, ( (021) 494 977 or (03) 570 5333) – Kylie is responsible for Poutama’s newsletter and communications. Feel free to make contact with her with any relevant information or networking events for publication in the newsletter

Richard Jones, CEO ( 021 619 075 or Skype richtj) – Richard looks after the national and international stuff, strategic issues/relationships/development and also deals with clients at all levels and in all sectors.

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