Latest / The SME Stream / SME Stream Weekly Wrap - 11th October

Transcript

SME Stream Weekly Wrap - 11th October · The SME Stream

• 0:03
  Speaker 1: Youna, and welcome to the very first SMEE Stream Weekly
• 0:06
  Speaker 1: wrap Up, brought to you by B and Z. My
• 0:08
  Speaker 1: name is Wilhelmetta Shrimpton, and every week I'll bring you
• 0:11
  Speaker 1: a short, sharp and very sweet summary of all of
• 0:14
  Speaker 1: the latest business news. Now, as most of us know,
• 0:17
  Speaker 1: when it comes to business, there's peaks, there's pets, and
• 0:20
  Speaker 1: there's everything in between. Often it's hard to keep up
• 0:23
  Speaker 1: with your own day to day, let alone what's happening
• 0:25
  Speaker 1: with the economy and how it affects you. So that's
• 0:28
  Speaker 1: where I come in, wrapping up everything you need to
• 0:30
  Speaker 1: know or may have missed over the past week. And
• 0:33
  Speaker 1: as a small business owner myself, I'll be on this journey.
• 0:36
  Speaker 2: With you too.
• 0:38
  Speaker 1: This week the three letters on everyone's lips oh c R.
• 0:42
  Speaker 1: I'll be talking business confidence. It's up, thank goodness. So
• 0:45
  Speaker 1: what's the mood of some of our top executives. We'll
• 0:48
  Speaker 1: unpack some money matters around accounting, finances, GST and all
• 0:53
  Speaker 1: of those sometimes very scary things, plus the value of
• 0:56
  Speaker 1: pr and publicity. It's easy to think it's been all
• 1:05
  Speaker 1: doom and gloom, and to be honest, it kind of has.
• 1:08
  Speaker 1: It's hard not to walk down the street and see
• 1:11
  Speaker 1: closed or for lease signs, empty shop spaces, or hear
• 1:15
  Speaker 1: about yet another friend or contact who's been caught up
• 1:18
  Speaker 1: in a closure or a restructure or a round of redundancies.
• 1:21
  Speaker 1: But on Wednesday, finally, finally, a glimmer of hope as
• 1:25
  Speaker 1: the Reserve Bank slashed the official cash rate.
• 1:28
  Speaker 3: And fantastic news about the official cash rate decision today.
• 1:33
  Speaker 3: Double whammy, double happy.
• 1:34
  Speaker 1: The double whammy because the usual twenty five basis point
• 1:38
  Speaker 1: cut was increased to fifty basis points, reducing the OCR
• 1:41
  Speaker 1: from five point to five percent to four point seven
• 1:44
  Speaker 1: five percent, the first time it's been under five since
• 1:48
  Speaker 1: March last year. Economists were fizzing, and so were mortgage
• 1:52
  Speaker 1: holders because a lower OCR means lower interest rates, and
• 1:55
  Speaker 1: that makes it cheaper to borrow money, and it boosts
• 1:59
  Speaker 1: and otherwise pretty low property market. According to al Jay
• 2:01
  Speaker 1: Hooker's Campbell de Noon, so the stock has been there,
• 2:05
  Speaker 1: We're just waiting for the buyers, and I think this
• 2:06
  Speaker 1: is just going to give them the nudgs just to participate.
• 2:09
  Speaker 1: But those lower interest rates aren't just helpful for those
• 2:13
  Speaker 1: with a mortgage or in property. Retailing Z is also
• 2:16
  Speaker 1: pretty excited by the news as well.
• 2:18
  Speaker 2: That's going to lock in some benefits for consumers, so
• 2:22
  Speaker 2: they'll feel that they've got a little more cash in
• 2:25
  Speaker 2: their pocket.
• 2:26
  Speaker 1: That's cash to spend with businesses, stores and restaurants that
• 2:29
  Speaker 1: have been doing it tough, just in time for the
• 2:32
  Speaker 1: crucial Christmas period. It is, of course, the boosts we
• 2:35
  Speaker 1: all desperately needed, and follows an increase in business confidence.
• 2:39
  Speaker 1: According to the New Zealand Institute of Economic Research Now
• 2:43
  Speaker 1: it found five percent of businesses expect general economic conditions
• 2:46
  Speaker 1: to deteriorate in the coming months. That's a significant improvement
• 2:50
  Speaker 1: on the whopping forty percent that we're feeling downbeat in
• 2:54
  Speaker 1: the June quarter, and these results actually came out just
• 2:57
  Speaker 1: before the latest OCR announcement. Surely, surely it can only
• 3:01
  Speaker 1: be up from here. But while the sentiment is positive
• 3:04
  Speaker 1: and the vibes are home, it can still take some
• 3:07
  Speaker 1: time to actually materialize. Those on floating interest rates will
• 3:11
  Speaker 1: see the benefits straight away, but others will need to
• 3:14
  Speaker 1: wait until they refix their mortgage to get their hands
• 3:17
  Speaker 1: on that much needed extra cash. Some of New Zealand's
• 3:21
  Speaker 1: topics X They were pragmatic at The Herald's mood at
• 3:23
  Speaker 1: the boardroom events about what these interest rate cuts mean
• 3:26
  Speaker 1: for the front line and of course the bottom line
• 3:29
  Speaker 1: as well.
• 3:30
  Speaker 4: I will definitely see more and it'll be helpful, but
• 3:32
  Speaker 4: it's going to take time.
• 3:34
  Speaker 1: I think it'll be really probably midnext calendar year before
• 3:37
  Speaker 1: the reality of the interest rate cuts really actually flows through.
• 3:40
  Speaker 5: It's tough work, doesn't matter which economy you're in. The
• 3:45
  Speaker 5: freight volumes aren't as strong as what you would expect,
• 3:48
  Speaker 5: although in the last three months we've seen some improvement.
• 3:53
  Speaker 5: New Zealand probably tougher than most of the other markets,
• 3:56
  Speaker 5: but certainly you can feel some optimism from the custom
• 4:00
  Speaker 5: them are.
• 4:00
  Speaker 1: Both now you can hear more of those insights from
• 4:02
  Speaker 1: the likes of Deloitte Main Freight, Auckland Airport and Genesis
• 4:06
  Speaker 1: Energy in the SMEA stream on markets with medicine now.
• 4:10
  Speaker 1: While there were cheers before bedtime this week around interest rates,
• 4:14
  Speaker 1: uncertainty remains for job seekers, with unemployment still increasing. According
• 4:19
  Speaker 1: to the Employers and Manufacturers Association, the Great Resignation Wave
• 4:23
  Speaker 1: of twenty twenty two is on the outs, with almost
• 4:27
  Speaker 1: two thirds of KIWI workers saying they're unlikely to leave
• 4:29
  Speaker 1: their job for the next twelve months now. That's due
• 4:32
  Speaker 1: to fears about job security and a lack of work opportunities.
• 4:38
  Speaker 2: And QE founders who make it to the US are
• 4:41
  Speaker 2: better than the top tier American founders because American founders
• 4:46
  Speaker 2: feel they have optionality right because they're like, hey, if
• 4:50
  Speaker 2: this doesn't work out, I'll go working big TAC, well,
• 4:52
  Speaker 2: I'll start something else and I know that credit's kind
• 4:54
  Speaker 2: of easy and I'll be fine, while a QWEY founder
• 4:57
  Speaker 2: who makes the US knows and believes the have one
• 5:00
  Speaker 2: shot and then they go all in.
• 5:03
  Speaker 1: That's the voice of venture capitalist Mahesh Moralda on the
• 5:06
  Speaker 1: Business of Tech podcasts. This week, he's the brains behind
• 5:09
  Speaker 1: Product and Growth Incubator Program Phase one. In a detailed
• 5:13
  Speaker 1: and really useful chat, he unpacks the deep pool of
• 5:17
  Speaker 1: opportunity for Kiwi businesses in the lucrative US market and
• 5:21
  Speaker 1: some of the things that might actually be holding them
• 5:23
  Speaker 1: back from going large. The main message to come out
• 5:26
  Speaker 1: of this think big.
• 5:27
  Speaker 2: You actually have to have a US from D one
• 5:30
  Speaker 2: customer approach because it's the largest homogeneous market that works.
• 5:35
  Speaker 2: And finally you have to build. You have to have
• 5:39
  Speaker 2: customer and problem obsession right because you're trying to build
• 5:43
  Speaker 2: a love product that scales the world.
• 5:46
  Speaker 1: You can catch the full episode with Mahesh in the
• 5:48
  Speaker 1: SMEE stream. Because all things accounting, GST and finance scare
• 5:53
  Speaker 1: the living daylights out of me as a sole trader
• 5:56
  Speaker 1: and small business owner in charge of my own accounts.
• 5:59
  Speaker 1: A delight for yarn with the lads from between Two
• 6:01
  Speaker 1: Bears and their new podcast, Business in Between caught my
• 6:04
  Speaker 1: eye this week.
• 6:05
  Speaker 4: Shamus and I are based, well not anymore, but we're
• 6:09
  Speaker 4: basically financially illiterate going into this. I think a conversation
• 6:15
  Speaker 4: we had with Sam Matthews and we asked you, like, okay,
• 6:17
  Speaker 4: explain to us GST. No no, no, no, explain to
• 6:22
  Speaker 4: us like we're ten. Explain to us like we're fives.
• 6:26
  Speaker 1: Completely relatable for so many business owners out there, myself included.
• 6:31
  Speaker 1: Now for many of us, we are not only founders
• 6:33
  Speaker 1: and entrepreneurs, we're also it HR and finance. And this
• 6:38
  Speaker 1: is where the fake it till you Make it mentality
• 6:41
  Speaker 1: definitely rings true. And the guys they unpack what it
• 6:44
  Speaker 1: was like to start a podcast and a business, trying
• 6:47
  Speaker 1: to fund it, market it, and everything in between.
• 6:49
  Speaker 4: We have more meetings with our accountant than anyone I know.
• 6:53
  Speaker 4: Like we're so precise with the money and the revenue
• 6:56
  Speaker 4: streams and where it's going and how much we need
• 6:58
  Speaker 4: and goal setting and all this sort of stuf which
• 7:00
  Speaker 4: I talk about this sort of learning curve that we're
• 7:03
  Speaker 4: both on in the last twelve months in particular, and
• 7:06
  Speaker 4: it's like that's a world I didn't know as an employee.
• 7:08
  Speaker 4: The money came in that I didn't need to know
• 7:11
  Speaker 4: all this stuff, and now it's everything.
• 7:14
  Speaker 1: Catch the full chat and of course a few hearty
• 7:16
  Speaker 1: laughs and business in between on the SMEA stream. Lastly,
• 7:20
  Speaker 1: as someone who lives and breathes media, a bonus board
• 7:23
  Speaker 1: to Boss, episode covers off something I wholeheartedly believe is
• 7:27
  Speaker 1: really important for everyone in business. Often seen as frills
• 7:31
  Speaker 1: all the nice to have, this episode unpacks the value
• 7:34
  Speaker 1: of PR and publicity.
• 7:35
  Speaker 3: You need to be looking to get PR when you've
• 7:38
  Speaker 3: got something new and fresh and exciting to say, So,
• 7:41
  Speaker 3: what's the most exciting thing launching a business? So I
• 7:44
  Speaker 3: would say you need to be thinking of it right
• 7:46
  Speaker 3: from word go.
• 7:46
  Speaker 1: Good PR is of course good, but how do you
• 7:49
  Speaker 1: also navigate the bad?
• 7:50
  Speaker 3: It's how you react with it when it is in
• 7:53
  Speaker 3: the media. So for example, if you have some bust up,
• 7:57
  Speaker 3: it's then how you go and change that narrative, How
• 8:00
  Speaker 3: you take responsibility for that narrative. I think if you're like, look,
• 8:03
  Speaker 3: I shouldn't have said that, I apologize, I take full
• 8:06
  Speaker 3: responsibility for my actions, you know, and and front foot
• 8:09
  Speaker 3: the bad things you've done. You can absolutely turn that
• 8:11
  Speaker 3: around and that could be used in a positive way.
• 8:15
  Speaker 1: Well, it was the ocr this week. Next week we'll
• 8:18
  Speaker 1: look at the all important inflation figures jew out as
• 8:21
  Speaker 1: well as highlighting the best business content on the SMEI stream.
• 8:25
  Speaker 1: That's it for the weekly Wrap. I'll be back with
• 8:27
  Speaker 1: more next Friday.