Diversifying your income stream and protecting your Business

Diversification isn’t possible if you don’t protect your assets and income earning base first. Having sound, real-time, relevant information is number one in protecting those assets. This is where we come in.

Cashflow

It’s difficult to protect your business after you have run out of cash. It is much easier to address if you know the cash crunch is coming. Knowing immediately, and at all times, what your cash flow is, or will look like now, and in 30 days, 90 days or one year from now, is critical to ensure your survival.

Profitability

The next area you should look at is profitability. Are you making profits from your business. Is it run efficiently? Here at Gunson McLean we suggest there are a number of questions you need to ask yourself about your business, which include:

• are your costs monitored

• is productivity of the team where it should be?

• is income maximized and billed per the contract

If you answer these questions honestly the answers may be a stark reminder that your business is not where you wish it to be.

Pricing

You should regularly look at your pricing model. It is extremely important that your debtors and creditors are monitored, and that you don’t let overdue invoices - either to you or from you - slip through the cracks and blow up your budget. What is your debt level – do you have too much debt, or maybe too little. The same goes for inventory, if you have it – you should maintain strict controls on what is coming in and going out each month.

Once you have all this information and your business is running smoothly, there are others areas you then should also look at such as:

Is your business structure effective - should you set up a company, create a partnership, limited partnership or a trust?
What are the tax effects of your structure – can you do better?
We have experts who can help you decide what is best for your circumstances.

Your Team

Are you doing your best to protect your biggest asset, your team? Your business cannot succeed without your team and their health and safety must always be at the front of your mind. Every worker deserves to go home safely to their family every night! How often do you review your insurance, does it cover everything and at the correct replacement values?

Only once all of these areas of your business are set and functioning well can you look to diversify your opportunities.

Diversifying within your industry is good, as you know that industry. However, you can end up putting too many eggs in the one basket. Diversification outside of your industry into well understood, long term investments helps to supplement any savings you may have. Personal preference and risk profile dictates where that diversification could be – shares, funds, other non-related businesses, property, carbon – to name a few. Regardless, getting money out of your main business into non-related investments helps to protect overall wealth.

Gunson McLean can assist you with business purchases, business planning, cash flow planning, property purchases and business structures. If you’re thinking about diversifying your assets, get in touch with us.

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How to prepare for the end of financial year

20 February 2025

The end of the financial year is fast approaching, so if you’re balance date/end of financial year is 31 March, there are a few things you need to do to help us prepare your financials. Take a stocktake If your business sells products or has stock, you’ll need to do a stocktake on 31 March. If you’re a business that sells products, then you need to take a stocktake of your physical inventory. If you’re a farmer, then you need to take a physical livestock tally. Send in your EOY papers Compile a folder (digital or hard copy) with a copy of the following documents: Bank statement that shows the balance on 31 March 2025 for all your bank accounts and loans. Insurance invoices. ACC invoices. Loan statements for the year (if applicable). Any new loans or refinancing documents. Invoices for assets purchased and sold. GST workings and reports. Submit the online questionnaire You’ll also need to fill out and submit the online questionnaire. You should receive an email from us in April/May, with a link to fill out and submit the questionnaire. If you haven’t received an email with the link by the end of May, let us know.

Supporting the Heart of Dargaville and Whangārei Communities

17 February 2025

At Gunson McLean we are more than just a business offering financial expertise we also support our communities in Dargaville and Whangārei. By partnering with various local organisations, we help sustain and strengthen sports, recreation, and community initiatives in the region. Empowering Local Sports Clubs We understand the role sports play in bringing people together, promoting teamwork, and supporting youth development. We are proud to sponsor the Old Boys Marist Rugby & Sports Club, Hikurangi Rugby Football Club Inc, Maungakaramea Hockey Club, Maungakaramea Bowling Club, Mid Western Rugby Squash Club, Kamo Rugby & Squash Club, New Zealand Vikings Rugby Football Club Inc., and the Cobham Cricket Club. Promoting Outdoor Education We also believe that outdoor education is essential for youth development and are proud to work with the charitable trust, Pātaua Outdoor Education & Recreation Trust (POERT). We have been closely involved in the Trust’s activities for the past 8 years – handlings its financial matters – and Craig Gunson is the current Treasurer. Backing Community Halls & Facilities We’re proud to support the Whareora Hall Society and Whareora Cemetery Board as well as local cycling and motorcycling groups Marsden Wheelers Cycling Club Inc., and the Whangārei Motorcycle Club. We are passionate about the causes we support, and the opportunities and growth this enables in our Dargaville and Whangārei communities.

Optimise your business by taking care of your employees

7 February 2025

Most people agree that optimising your business is a good idea and spend hours looking at optimising the supply chain, storage, overheads etc. However, they forget that people are one of the most critical elements in your business. By providing a caring, supportive workplace for employees you also drive the success of your business. Studies show happy workers are productive workers and, as an employer, it’s a no-brainer to provide a workplace where employees feel valued, and where they can flourish. Here are five key ways to build employee relationships, nurture your team, and create a great workplace for your employees: 1. Invest in your employees This doesn’t mean ‘casual Friday’s’ or a pizza night once a month. This is about offering your employees access to training programmes, workshops, conferences, and mentorship programmes. It’s about the professional growth of your employee and how you can enhance their skills and make them feel truly valued as team members. 2. Create a positive work environment Creating a positive work environment is about cultivating a workplace culture that feels positive and supportive of your employees. Be open and transparent with your employees, listen to their feedback and have a strong focus on employee wellbeing. This could include offering flexible working arrangements, benefits such as health insurance, and other perks. 3. Recognise and reward your employees When an employee goes above and beyond, make sure your recognise and reward them. This could by through a performance bonus, employee-of-the-month programmes or even extra time off in lieu. Feeling valued comes partially from feeling rewarded and can be an amazing motivator. 4. Give employees autonomy One of the key ways employees feel trust, is by being given autonomy. Being trusted to come up with their own solutions, processes, and ideas is key to making people feel as if they ‘own’ their role. This helps employees feel fully involved and also brings new ideas, solutions, processes, and efficiencies to the table. 5. Put wellbeing at the heart of your culture Life is stressful. And work-life can be stressful. A well though out wellbeing programme can help your employees manage stress and, in turn, benefits your business. A wellbeing programme is different for each business but some ideas could be checking in with team members, creating a ‘ask for help’ culture, flexible working arrangements including work-from-home days, and offering mental health support. Making sure you’re a caring and supportive employer is vital to your business strategy. With a team who feel valued, nurtured, and encouraged, you’ll all be happier and more productive.