MYOB Business Monitor Special Report

Transcription

1 MYOB Business Monitor Special Report Canterbury Business Performance, Pressures & 2012 Outlook 1 November 2011 Westpac Business Hub, Christchurch

2 Discussion areas The make-up and real motivations of CHC businesses MYOB Business Monitor Key Insights Business revenue growth in Canterbury Cantabrian business confidence Key Business Pressures Christchurch business voting & policy preferences Business goals & plans for 2012 Local & national

3 MYOB Business Monitor MYOB Business Monitor The voice of NZ business owners Bi-annual survey businesses, employees Performance based: revenue & profit levels, cash flow, sales pipeline AU and NZ focus 128 Canterbury businesses surveyed (12.7% of sample)

4 The 3 Kiwi business owner profiles NZ average Lifestyle Seeker 48% Business Builder 36% Passionate Pursuer 17%

5 Cantabrian Business Owner Profiles Lifestyle Seeker 45% Business Builder 40% Passionate Pursuer 14%

6 MYOB Business Monitor Insight Summary New Zealand Slow, steady economic recovery. Confidence up on April 2011 Sole trader confidence contracting Annualised revenue growth highest levels since April 2010 Modest improvement in Q4 sales pipeline forecasts. Up 2% on Q2 Key pressures fuel prices, pricing margins/profitability & interest rates 32% of businesses online Canterbury CHC business confidence in the economy almost halved in 12 months but in line with NZ average Significantly more revenue decreases than increases in the last year. Significant improvement in Q4 sales pipeline vs Q Up 10% Key pressures interest rates & competitive pressures, fuel prices 36% of businesses online

7 How did business revenues cope during the year (Oct 2010 Sept 2011)?

8 Business Revenue vs last year Size Still more decreases than increases. Large business buoyant. NZ TOTAL CHRISTCHURCH 30% 29% 31% 41% AU TOTAL 19% 38% SOLE (0) MICRO (1-4) SMALL (5-19) MEDIUM (20-199) 28% 34% 30% 42% Increases 32% 31% 31% 24% Decreases

9 Business Revenue vs last year Size Rural and very small employers performed best CHC Rural 47% 19% CHC 2-5yrs 46% 42% CHC Micro CHC City 39% 34% 31% 44% CHC Medium * 31% 0% CHC Sole 29% 44% CHC Startups 27% 10% CHC Suburban 18% 48% CHC SME * Very small sample size 15% Increases 45% Decreases

10 Business Revenue vs last year Region Provincial NZ performing well. CHC beats WEL NZ Total 30% 31% AU Total 19% 38% Auckland 30% 32% Christchurch 29% 41% Wellington 27% 31% Rest of NZ 31% 28% Increases Decreases

11 CHC Business Revenue vs last year Sector CHC Transport, Retail & Manufacturing hardest hit Transport & Warehousing 25% 75% Retail & Hospitality 13% 63% Manufacturing 7% 57% Professional & Business Services Finance & Insurance Construction & Trades 28% 24% 41% 35% 41% 13% Agriculture, Forestry & Fishing 87% 0% NB: Small sample sizes More than usual Less than usual

12 When do Kiwi & CHC business owners think the economy will improve?

13 When will the economy improve? Majority expect full recovery is more than 12 months away Don't know 7% > 24 months months 19% 22% months 27% 6-12 months 16% 3-6 months 6% < 3 month 3%

14 Expectation of economic improvement in 12 mths. Majority expect full recovery is more than 12 months away Sep 11 Apr11 Nov10 Apr10 Nov09 NZ TOTAL 25% 23% 37% 49% 55% (AUSTRALIA) 21% 35% 47% 54% 58% AUCKLAND 28% 28% 39% 49% 61% WELLINGTON CHRISTCHURCH REST OF NZ `.; 30% 19% 38% 57% 50% 25% N/M 42% 39% 55%. 22% 21% 32% 49% 50%

15 When will the CHC economy improve? More confidence (< 12 mths) Micro Businesses (1-4 FTEs) CHC suburban based businesses CHC businesses with rev between $75 - $199k Businesses between 2-5 yrs & 10+ years old CHC retail & hospitality sectors Businesses banking with Westpac Less confident (> 12 mths) Women in business Small businesses (5-19 FTEs) CHC city based businesses Agricultural & Manufacturing sectors Construction & Transport sectors

16 How much work do NZ & CHC businesses have on in Q4, 2011?

17 Projected sales in Q4 pipeline for 2011 Size CHC leads the way (again ). NZ Total CHRISTCHURCH AU Total SOLE (0) MICRO (1-4) 33% 35% 29% 30% 35% 21% 19% 30% 23% 19% SMALL (5-19) 44% 16% MEDIUM (20-50% 14% More than usual Less than usual

18 Projected sales in Q4 pipeline for 2011 Region Wellington less buoyant. Christchurch 35% 19% New Zealand 33% 21% Auckland 33% 21% Wellington 32% 21% Rest of NZ 31% 23% Australia 29% 21% More than usual Less than usual

19 Projected sales in Q4 pipeline for 2011 Sector Smaller CHC businesses & Online businesses perform best CHC Small CHC MYOB clients CHC "online" CHC Manufacturing CHC Westpac clients CHC Construction CHC Retail CHC suburban CHC Micro CHC rural CHC city CHC sole trader CHC "offline" 46% 43% 43% 41% 39% 39% 37% 37% 37% 36% 32% 31% 31% More than usual 25% 9% 25% 23% 17% 24% 26% 19% 18% 15% 20% 18% 15% Less than usual

20 What revenues are expected this coming year (Sept 11 Aug 12)?

21 Expected business revenues in 2012 Region WEL & CHC most confident regions Wellington 49% 16% Christchurch 46% 6% New Zealand 41% 13% Auckland 41% 11% Rest of NZ 37% 15% Australia 32% Increases 20% Decreases

22 Expected business revenues in 2012 Size Very small CHC employers driving 2012 growth CHC Construction CHC Micro CHC Manufacturing CHC Retail CHC Westpac clients CHC MYOB clients CHC business men CHC city CHC "online" CHC "offline" CHC suburban CHC rural CHC sole trader CHC Small CHC business women 71% 69% 61% 61% 60% 56% 56% 54% 51% 43% 9% 42% 2% 41% 5% 41% 7% 39% 12% 27% 3% Increases Decreases 1% 0% 0% 7% 15% 5% 4% 8% 12%

23 Expected business revenues in 2012 More Growth CHC online businesses MYOB s CHC based clients Westpac s CHC based clients Construction, Manufacturing & Retail sectors CHC micro businesses (1-4 FTEs) CHC city based businesses Less Growth Women in business (v significant) CHC small business (5-19 FTEs) CHC sole traders CHC suburban based businesses CHC rural based businesses CHC offline businesses

24 Effect of the Canterbury earthquake on business revenues

25 50% of businesses expect an effect on revenues over coming year due to earthquake More affected Business owners < 40 yrs (53%) Female business owners (52%) Larger businesses (59%) Businesses in AKL (54%) Retail sector ( 61%) Manufacturers (65%) Less affected Businesses in provincial North Island Rural businesses

26 What s putting Kiwi businesses under the most pressure at the moment?

27 Main pressures on businesses this year In CHC: Interest rates, competition, fuel pricing & cash flow Interest Rates Competitive Activity Fuel Prices Cash Flow Price Margins & Profitability Other (than staff) business costs Attracting new customers Business finance / funding / overdrafts Marketing & Customer Relationships Exchange Rates Timing of customer payments 25% 28% 23% 25% 24% 23% 22% 26% 21% 20% 20% 24% 18% 18% 17% 15% 15% 19% 11% 15% 9% 35% NZ Average CHC

28 Main Pressures Key Highlights Interest Rates Business owners over 40 yrs Micro Business (1-4 FTE) CHC City based business CHC Offline business Professional Services, Transport & Retails sectors Price Margins Profitability Business owners over 40 years Larger CHC employers (5+ FTEs) Manufacturing & Agriculture Sectors Competitive Activity All CHC based employers (v sig.) CHC online businesses Construction, Retail and Manufacturing sectors Cash flow Business owners under 40 yrs CHC business women All CHC based employers (v sig.) CHC offline businesses Construction, Retail, Manufacturing & Agriculture sectors

29 What are the main objectives for businesses this year?

30 Main Business Objectives for 2011 Most NZ business see GROWTH as their primary objective. Up 4% since April 2011 Minimise losses, 10% Unsure, 10% Maintain customers & revenue, 29% Increase customers & revenue, 52% Stronger Growth preferences from: Men Business owners under 40 Start-up businesses All employers (esp. < 19 FTEs) Retail, Manufacturing, Construction and Finance & Insurance sectors Online businesses

31 Main Business Objectives for 2011 Most CHC businesses see GROWTH as their primary objective (But growth down 7% in 12 months, maintenance up 9% - Nov 2010) Minimise losses, 10% Unsure, 13% Maintain customers & revenue, 27% Increase customers & revenue, 51% Stronger Growth preferences from: Men Business owners under 40 Start-up businesses All employers (esp. < 19 FTEs) Professional services, Finance & Insurance, Construction Sectors CHC Online businesses

32 Specific Canterbury based Business strategies & plans for 2012

33 Planned CHC business initiatives for 2012 CHC business all about growth Customer retention strategies Customer acquisition strategies Marketing & advertising online 32% 40% 39% 3% 0% 1% New market activity 31% 2% The sales of products / services offline Offer new products & services The sale of products / services online Marketing & advertising offline 30% 28% 27% 22% 2% 2% 0% 6% Sales promotional activity 20% 2% Increase Decrease

34 Planned CHC business initiatives for 2012 CHC in line with NZ average Investment in IT systems & processes 26% 1% Working with a business adviser 21% 2% Staff Salaries & Wages 19% 2% Applications for business finance 17% 4% Part time staff 17% 1% Staff coaching & Training 16% 3% Full time staff 11% 2% Increase Decrease

35 CHC Business & Political Preferences

36 Local Govt Performance: Business satisfaction Region Satisfied Dissatisfied Wellington 21% 27% Manawatu-Wanganui 13% 20% Christchurch 15% 38% Otago & Southland 10% 38% Auckland 9% 43% Bay of Plenty 6% 40% Taranaki 13% 48% Northland 11% 47% Hawke s Bay 6% 45% Waikato 8% 48%

37 Political Party Preferences CHC Businesses Based on the party that would best support businesses like you, which party gets your vote National Party 56% Dont know at Labour Party 13% 20% ACT Party Green Party NZ First Party Maori Party Mana Party 5% 4% 1% 1% 0%

38 Prime Minister Preferences CHC Businesses Based on your own personal preference, which of the following individuals would be your preferred Prime Minister in NZ? John Key 69% Dont Know Phil Goff Winston Peters Other Don Brash Hone Harawira Russell Norman Dr Pita Sharples 14% 7% 3% 2% 2% 1% 1% 1% Metiria Turei Tariana Turia

39 Initiatives & Policies important to Businesses Red tape reductions before tax cuts. Team well-being impt. Simplify Provisional tax processes 76% 3% Increased govt funding for innovation, R&D by NZ businesses 61% 4% More govt investment in transport infrastructure in our major cities The removal of GST on selected 'essential' goods & services (eg: fresh food, & doctors' visits). A buy Kiwi made policy for all central & local govt procurement where possible Mondayising public holidays that fall on a weekend 57% 53% 53% 47% 6% 21% 9% 12% The creation of a single flat tax for personal tax & company tax Vote For 45% Vote Against 18%

40 Policies least popular with Businesses Carbon & Capital Gains Taxes more unpopular than Asset Sales. Introduction of a carbon tax 10% 62% The introduction of a capital gains tax 21% 58% The partial sale of State Assets 29% 38% More govt intervention in the value of the NZ dollar 22% 27% The creation of a common currency & economic zone with Australia 41% 24% The introduction of a compulsory Kiwisaver for all NZ employees 39% 22% Vote For Vote Against

41 The proof behind working smarter not harder

42 NZ Businesses are NOT early adopters of technology: CHC leads the way with 36% of businesses having websites Late Adopter 37% Early Adopter 18% Has Website 32% Mid Adopter 45% No Website 68%

43 Business Revenue vs. last year Early adopters of technology generate higher revenues NZ Total 28% 32% LATE Adopters 26% 34% MID Adopters 28% 31% EARLY Adopters 29% 29% Increases Decreases

44 Businesses Online have higher revenues & are more confident. CHC Online Businesses performed best in last 12 months. Revenue increased: 46% vs. 38% CHC Online Businesses predict more revenue growth in Revenue increases: 51% vs. 43% Q4 Sales pipeline higher for CHC Online Businesses. More work on: 43% vs. 31%

45 100% 90% 80% 70% 60% 50% 40% 30% 20% % of Businesses with a website By Country Australia & NZ in bottom of OECD countries...

46 Where should business advisers focus their attention in Canterbury?

47 The KEY services an Adviser should provide The key business pain your clients have now Cash flow Pricing & profit Margins Customer Acquisition Interest Rates Business financing / banking advice Where businesses are looking for help Improved procurement processes Access to an affordable business mentor Improved bookkeeping/accounting systems Improved banking / financing facilities

48 What s the #1 thing we can do to help CHC business recover & thrive

49 Make CHC the most online business community in the world Get 20,500 businesses online...

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51 MYOB serves 1 million businesses in Australia & New Zealand MYOB develops & delivers business solutions, service and support to around 150,000 Kiwi businesses 2,400+ accounting practices. 28,000+ businesses subscribe to our cloud solutions in Australia & NZ MYOB solutions pay over 25% of NZ s workforce Around 60% of the NZ govt s GST & PAYE revenue is facilitated by MYOB 2m+ tax returns are e-filed in NZ using an MYOB product each year MYOB is investing NZD$90m in online R&D in NZ & Australia over next 3 years

52 Questions?

53 For a copy of the slide desk SMS your address to: or

54 Additional Information: All MYOB Business Monitor Reports can be found online: about us industry research For additional information, including advanced business segmentation analysis, contact: Samantha Goodwin

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