creating a business plan nz

How to write a business plan in 12 steps (2024 edition)

Updated 18 April 2024 • 12 min read

This guide breaks down how to write a business plan, step-by-step, detailing what your document needs to include and what you need to think about to make your business plan as persuasive as possible.

What is a business plan?

A business plan is an essential document that can provide immense value for new and existing companies of all sizes. It is an overview that includes an outline of your business, its key objectives and plan for achieving important goals.

This information can be used to communicate strategic actions to internal teams and also attract interest from potential partners and investors. However, writing a business plan can be a lengthy and involved process. For many, using a business plan template can be a good way to get started.

For best results, you’ll need to do a lot of thinking and planning before you start writing your business plan. This way you have all the information and resources you need at your fingertips and won’t be under time pressure to come up with something at the last minute. After all, a well-thought-out business plan can help you avoid generic information and set your company up for success.

Download your free business plan template .

Why write a business plan?

Writing your business plan helps to get your strategy nailed down and onto the page. A plan that stays in your head is probably going to be full of unrealistic assumptions and biases, whereas a strategically thought-out and organised approach forces you to notice your blind spots and find a way forward.

If you’re looking for financing, a bank or investor needs to be persuaded by your business proposal and the opportunity to work with you. Therefore, a well-written business plan can help provide potential financial partners with the confidence that your business can become profitable. Your business plan gives them a comprehensive view of all aspects of your business and details your strategy for achieving your goals.

What are the main sections of a business plan?

Whatever your line of work, your business plan will generally need to provide the following:

An executive summary

A business overview

The market opportunity

Your products/services

Frequently asked questions about writing a business plan:

When to write a business plan.

Typically, entrepreneurs write their business plans within the first year of operations. A business plan is a tool that helps business owners refine their strategy, attract partners and financiers, and grow their business.

If a business plan is written too soon, it may lack the substance that comes with time in the market. However, it’s important to note that a business plan is not a static document - it can and should change as the business evolves.

How long should your business plan be?

There are no hard and fast rules around how long your business plan should be - it just needs to include all the relevant information. Aim for clear, concise sections and build a business plan that is as easy to read and navigate as possible.

Using a business plan template can help you make sure you have everything covered off, while also having a document that looks as professional as possible. Make sure you run a spelling and grammar check too - any sloppy errors can undermine your credibility.

What’s a business plan on a page?

It’s important to write your business plan as it helps to embed your strategy - as well as communicate what you’re about to potential partners or investors. When you have a comprehensive business plan you can easily adapt it to suit different audiences. For example, a full business plan is essential for raising capital but a business plan on a page may be enough for potential partners or employees.

What do venture capitalists look for in a business plan?

Venture capitalists invest money into businesses with the goal of achieving a return on their investment within the short to medium term. As a result, they’re looking for an attractive market opportunity, a clear point of differentiation, a strong management team, a proven track record, solid financials and, importantly, an exit opportunity.

How to write a business plan

Make sure you cover off each of the following steps when preparing your document:

1. Write an executive summary

This section of your business plan should be 1–2 pages in length and enables potential financiers or partners to get an overview of what your business does and – most importantly — what the opportunity is for them. If they’re interested in the opportunity, they’ll conduct their own due diligence - and this will start with going through your business plan and financials.

It’s a good idea to write your executive summary last, when you’ve clarified your thinking around every section of the document. As an overview section, you don’t want to add any new content that isn’t in your business plan. Aim to keep this summary succinct and engaging by using simple, plain language, as this is much more persuasive than complicated or academic wording.

Use sub-headings and bullet points to help your most important information stand out, especially as busy executives may simply scan your executive summary and use this to decide whether they want to find out more.

What to include in an executive summary?

Make sure you include details on:

What your business does

What the opportunity is

What your unique selling points / differentiators are

How much funding you’re looking for

What the funding will be used for

How you'll succeed

Remember, you’re providing the big picture overview of your business - the detail is in the rest of the document and in the appendices.

2. Write your business overview

This section of your business plan needs to be more than just a list of what your business does. Its purpose is to excite those you’re hoping will work with you or help to fund your business.

Information to address includes:

What's the purpose of your business?

What problem does your business’ product or service solve?

What niche could it fill?

What’s different about your offering?

How are you better than anyone else at what you do?

Consider what your customer value proposition is by deciding what you want to achieve and what your number 1 benefit is for your customer.

3. Identify your USP

Think about what your unique selling points (USP) or differentiators are, and what proof-points you can provide to back them up. For example, you can use terms like “market-leading” but if you don’t provide any evidence to back up your claims, your reader will take them with a big pinch of salt!

You should certainly reference any awards or endorsements that position you as the best person to provide your product or service, as well as any client testimonials. Make sure you include any education or experience that makes you an expert in your field as well.

4. Describe the market opportunity

Show you understand your industry, market and where you fit in it. While no-one can predict the future, offer up where you think the opportunity is for your business and make sales projections based on that. 

For example, imagine your business is selling personalised cookies - there's little competition in your area and you see your market opportunity to create designs for all calendar and holiday events. You expect to increase sales by 30% in one year and 50% in three years, driven primarily by word-of-mouth referrals.

Make sure you also consider macro trends that may create opportunities for you, such as social, environmental, or technological changes that may affect buying behaviour.

5. Include a SWOT analysis

Whatever your business strengths or opportunities, they’ll always be known and unknown weaknesses and threats; there’s no such thing as certainty in business or in life! However, you can demonstrate that you’ve examined your business through different lenses and have a thorough understanding of it by doing a SWOT (strengths, weaknesses, opportunities, threats) analysis.

Don’t worry about drawing attention to your business’ shortcomings - every opportunity has them and it’ll give investors and partners confidence in you that you won't bury your head in the sand. Naturally, it's important that you specify what you’re going to do to address these weaknesses and counter these threats.

Here are some areas you can think about to get started: reputation, technology, location, experience, staff, overheads, competition, suppliers and price.

6. Present a competitor analysis

Let’s face it, no matter what industry you’re in, or what you’re selling, there’s going to be other businesses offering the same thing. But instead of worrying about the competition, use this as a positive opportunity to up your game and work out the unique advantages you have that will keep you competitive.

Identify your top 3 competitors and analyse what they're doing well and where they’re coming up short. Try to be as objective as possible and identify how to differentiate yourself from them. You should also look into who the industry leaders are and what the benchmarks are for your industry so that you can set yourself targets for continuous improvement.

7. Create a customer persona

A customer persona is a fictional person who represents your company's ideal customer. Naturally, the persona can be based on a real person - the more you get to know your ideal customer, the more targeted and successful your marketing efforts will be.

To create a customer persona, you need to conduct research into your ideal customer’s age, sex, income, employment, daily activities, interests and hobbies. If you’re feeling unsure about your customer persona, you may need to give your ideal customer further thought and download the customer persona template to get started.

8. Write your marketing strategy

When you’ve created your customer persona, you need to work out how you’re going to reach them. Do they hang out on social media apps, like Facebook, Instagram, Pinterest, Twitter or LinkedIn? Or are they more used to local, traditional marketing like free local papers or high foot traffic areas?

Once you’ve figured where your audience is likely to hang out, you can outline your strategies for promoting and advertising your products or services in the next 12 months. Make a list of the marketing channels you’ll use to achieve your advertising strategy and be sure to include your budget. How much can you set aside for advertising? And where are you most likely to see a return on your efforts? Paid ads on Facebook? Half or full paid spreads in an industry magazine? Or even a direct mail out? 

For more structured help around this, check out free course: Business 101 | Get social with your business on Facebook.  

9. Design your customer retention strategy

Business success relies heavily on the relationship you’re able to build with your customers. What techniques will you use to keep them coming back? Consider the following:

What can your business do to increase the number of repeat customers? 

Does your business have a referral or loyalty program? 

Do you have a post-purchase follow up in place?

Will you use surveys to track customer satisfaction?

What ways can you continue delivering outstanding service?

Is there a way to continue educating and adding value to your customers?

10. Present your financials

Most people who are looking at investing their time and/or money in your business will want to see your financial statements - your performance to date and your projections over the short and medium term. They'll also want to know how much you’ve received in funding to date and what these other sources of funding are - including your own investment.

Current finances

You need to show how your business has performed financially over the last year, highlighting metrics such as positive cashflow, net profit and assets.

Financial forecasts

You should also provide a balance forecast projecting total assets, total liabilities and net assets over 1, 2 and 3 years, and a profit and loss forecast for the same periods detailing gross profit/net sales, total expenses and net profit/loss. Finally, you should also provide a cashflow forecast month by month over the next year.

It’s also a good idea to speak to an expert like an accountant or bookkeeper about your finances and get advice on how best to present them in this all-important section of your business plan.

11. Detail how much funding is needed

Naturally, you also need to be very clear about how much money you’re looking for and what you plan to do with it. If you’re looking for a loan, you need to detail what it’s for, over what period it’ll be repaid, and what collateral you have to secure it.

12. Propose an exit strategy

Any financial stakeholder in your business will want a return on investment. If you’re pursuing this type of funding, you should include some detail on your proposed exit strategy. For example, do you want to sell the company at some point or go public?

Similarly, you should outline your succession plan so the business can continue to operate if you decide to step away from it. Likewise, you need a plan for what happens if the business loses money and can’t sustain itself. Documenting this means that everyone is on the same page and potential investors have this information upfront.

Where to go for help or more information?

There are many great resources out there to help you fine-tune your business strategy and write your business plan. The New Zealand Government has a comprehensive website dedicated to supporting businesses at all stages of their journey.

You can also get help from Business Enterprise Centres, business advisors, accountants and fellow business owners. MYOB also has a list of business advisors who can give you feedback on your business plan, so your venture has the very best chance of success. 

Related Guides

How to define key performance indicators (kpis) for employees arrow right, how to perform a business gap analysis arrow right, buying a business: due diligence checklist arrow right.

How to create the perfect business plan in 10 steps

Every business needs a plan. But how do you write one? Here are 10 steps to help you get it right.

What is a business plan?

A business plan is the roadmap for a business and shows the overall strategy, goals and vision for success. It shows how a business operates and how it will make money.

It’s different from a business proposal which is a pitch to sell a product or service to a prospective customer.

Why do you need a business plan?

You may be wondering why you need a plan in the first place. After all, you have a clear idea in your mind about what you want to achieve. You know the market, you have the necessary skills. So why do you need a plan?

There are many good reasons. Here are just a few of them:

• To clarify your ideas: Writing something down gives it structure and substance. Your ideas will be clearer on paper than in your head.
• To discover and solve problems: The business idea you have in mind may have some holes – you might not have covered everything. This will become much more apparent when your words are on the page.
• To get feedback from others: A properly written business plan can be shared with trusted people to get their advice.
• As a formal document: Banks, investors, accountants and lawyers will want proof that you’re serious about your business. A written plan will provide that proof.
• To guide you as your business grows: A good business plan will keep you on track and focused, even as day-to-day work becomes a distraction.

If you’ve never written a business plan before, it can be a daunting prospect. But these 10 steps will help you create the perfect business plan.

1. The executive summary

This is where you describe your company and the product or service that it will sell. This must be brief, to catch and hold people’s attention.

Try to describe the goal and mission of your business in just a couple of sentences. Work hard at this and try to make it memorable.

Treat this section as an elevator pitch document – it should be succinct and easy to remember.

You can read more about how to create the executive summary in our guide What is an Executive Summary in a Business Plan?

2. Who are your customers?

Do you have a clear idea of the type of people (or businesses) who will buy your product or service? If not, think carefully until you do.

This is one of the first questions any investor will ask you about your business plan. Have your answers ready.

• Know whether your customers will be consumers or businesses. If they are businesses, who will you target within those companies? Maybe it’s the salesperson, or perhaps it’s the CEO?
• Determine whether you'll have regular clients or one-off buyers.
• Make sure you’ve actually spoken to some of your potential customers.

3. Evaluate the target audience

There’s no room for guessing here. You need to identify the people or businesses who will buy from you. Think about the following:

• Demographics – such as age, gender and social status
• Firmographics – includes size of the company, revenue of the company and services or products of the company
• Location – perhaps a specific area, town, or even country
• Profession – maybe you’re targeting accountants, police or lawyers, for example
• Groups – such as people with shared interests or habits

The better you evaluate your target audience, the more comprehensive your business plan will be.

4. What are your opportunities?

Successful businesses think big. You might be starting small, but you don’t have to stay that way. So write down the possible opportunities for your business as it grows.

For example, perhaps you’re planning to start by selling over the internet. That’s great, but how will you get traffic to your site? How will people find you online? Will you need salespeople? If not, how will you convince people to buy from you?

As the business grows, is there scope for a bricks-and-mortar retail outlet? What other opportunities will you have if your business grows as planned?

5. Understand the competition

Every business has competition. If you don’t mention yours, investors will think you’re unprofessional – or just plain naive. Be thorough, and list all your existing and potential competitors:

• Who are your direct competitors – those selling the same products as you?
• Who are your indirect competitors – those whose market overlaps yours?
• What will prevent other companies competing with you – what are the barriers to entry?
• What is your USP (unique selling proposition)? In other words, what’s your point of difference that makes you different from your competitors?

That last point is important. You need to explain how your business will differentiate itself from all the others. That might be based on price, service, quality, range or value. Make sure you spell it out.

6. Build a simple financial plan

All business plans should contain some financial information. This should include the overall costs of setting up your business. For example:

• Cost to make or buy products
• Costs for labour and manufacture, including raw materials
• Employee costs, especially for service businesses
• Distribution and marketing costs
• Fixed and variable overheads

Good accounting software will help you create a draft financial model. We’ll look into this in more detail in a future guide. For now, talk to your accountant or bookkeeper for help and advice.

7. Include an outline marketing plan

For this section of your business plan, you need to think about the five ‘Ps’:

• Pricing – how will you price the end product?
• Positioning – how does your product or service fit into the market?
• Promotion – what channels will you use to attract and communicate with customers?
• Profit – how much do you expect to make per item sold?
• Place – what are your sales outlets?

8. Plan your operations

Put your vision to one side for a moment. What are the daily tasks that need to be done when running the business? Include all business processes such as manufacturing and packaging. Try to cover all departments too, including sales and customer service.

9. Get the right people

This is one of the most important factors. Think about who you want to hire . How will you find people whose skills complement yours? And how will you convince them to work for you?

Also think about who you want as your business advisors. You'll need people you can trust, to guide and mentor you at times when you need it.

10. Simplicity is the key

Keep it simple. Complex and long documents won’t be read – either by you or by potential investors. A business plan should be brief, relevant and focused (you can use our free business plan template ).

If you find yourself getting carried away while writing, stop and take a break. Then go back and edit what you’ve written. Shorter is better. The core of a good business plan should be just a few pages long.

Plan your business around your strengths

As you write your business plan , keep in mind your strengths – and also any areas for improvement. This will help you construct a plan that makes the most of your abilities, while still being realistic. That's more likely to convince investors that you're serious.

Your business plan is a roadmap for your business – but it's not set in stone. Review it at least once a year and make changes if necessary.

Above all, keep getting feedback from your advisors – official and unofficial ones. With their help, you'll create the perfect business plan that takes you where you want to go.

Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided.

Download the business plan template

Fill in the form to get a free business plan template as an editable PDF. We’ll send a one-pager and a multi-pager to choose from.

Privacy notice .

Start using Xero for free

Access Xero features for 30 days, then decide which plan best suits your business.

• Included Safe and secure
• Included Cancel any time
• Included 24/7 online support

Or compare all plans

The ASB website functions best with JavaScript enabled.

How to write a business plan.

A good business plan is essential when thinking about starting a new venture. It will help you apply for business finance and keep your vision on track once things are up and running. Here are four steps to help you create and implement an effective business plan.

1. Set out your strategic vision

Ask yourself what your company stands for. Think of everything you'd want a potential investor, partner, employee or customer to know about it. This includes:

• Vision statement: Should be brief and aspirational, yet achievable. Take the time to get it right. Try to sum up in one sentence what your business is all about, where you want it to go and how you'll get there
• Unique selling proposition (USP): Sets out why you believe customers will come to you rather than a competitor. What makes your business unique?
• Target market identification: While you don't want to limit your customer base, the clearer picture you have of your target market, the easier it will be to communicate with them. You may initially have to assume who you think your customers are, but once your business is live you should be able to update this using real sales data
• Explanation of products and services: Should be designed in line with your USP and meet the needs of your target market
• Key goals: Must be measurable, achievable and consistent with the financial plan
• Capital requirements: How much will you need to start and run the business and where will you get the funding? Amounts should be supported by calculations in the financial plan

2. Set out the details

Now it's time to see how your vision will work. Who will help you bring it to life? What business structure are you considering? Here are some other things to include:

History and structure

Outline your business' background and introduce key people like employees, managers, partners and investors.

Goals and milestones

Set out major business goals for the period covered by the plan, plus various milestones you want to reach along the way. Make these goals specific and measurable, so you can see your progress further down the track.

Competitors

Do a detailed analysis of the competitive landscape, including:

• Information on the industry
• Size and characteristics of the target market
• Your competitors' strengths and weaknesses

SWOT analysis

Put your business model to the test by identifying the strengths and weaknesses of your idea and potential opportunities and threats in the market you will be operating in.

Strengths What does, or will, your business do well? What makes you better than the competition?

Weaknesses What doesn't your business do well at the moment and how will you improve this?

Opportunities Where are the areas for growth, both within and outside of the business?

Threats What are the external factors that could change or threaten your business?

Business assets

Identify what you have already and what you need, including:

• Plant and equipment
• Information systems
• Intellectual property

Business strategy considerations

Sales & Marketing

• What's the best way to reach your customers?
• What is your budget for sales and marketing? How will you get repeat business?
• How can you collect useful data on your customers? For example, loyalty programmes, customer relationship management systems, online sales channels.
• How will you use this data to create targeted and relevant messages?
• Where will you be located?
• Can you work from home initially? This may help to keep your costs down early on.
• Do you need resource consent for your premises or operations?
• What IT infrastructure will you need?
• How will you get your product to market?
• What about insurance?
• Have you thought about your supply network?
• What is your business continuity plan? If disaster strikes, it's important to have contingency plans in place to ensure your business can trade afterwards.
• List your start-up costs and capital requirements as well as your projected cash flow, profit and loss and balance sheet forecasts and a break-even analysis.
• Budgets showing costs, income and cash flow are particularly important for seasonal businesses.
• As a rule of thumb, when it comes to finances and forecasting, be conservative; double your expenditure and halve your sales forecasts.
• Do you have enough money to get up and running as well as cover costs in the short term?
• When will your business turn over enough money to be profitable?

3. Make necessary changes

Writing your business plan may bring up questions about your business, and once you reach the end you may not be happy with certain parts of your plan or your prospective day-to-day operations. Before finishing, ask yourself:

• How can I counter the strengths of my competitors?
• How can I overcome the weak points in my business plan?
• Do the assumptions I’ve made based on various financial projections make sense?

Also, you might consider sharing your plan with others to sense check it.

4. Put the plan to work

Once it's ready, treat your business plan as a guide to running your business. Remember that it's a working document, so if your goals and circumstances change, update the plan. The business.govt.nz website has some great tools and templates to help get your business started.

Keep reading

Five things you need to do before starting a business, how to write a financial plan, naming your business, what's next, small business banking.

Every business is different and has unique banking needs, discover your options.

Find out more

This page is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and should not be relied on. This information has been prepared without considering your objectives, financial situation or needs. We recommend you seek independent professional advice and contact Inland Revenue before acting on this information.

Did you mean: ?

What are you looking for?

Made for every small business

Switch and Save

Competitor Comparison

Compare accounting software solutions

Data Migration

Easily to move from your existing accounting system to Reckon

Business Solutions

Explore business types that Reckon supports

Case Studies

Discover success stories of using Reckon One

• Reckon Cloud POS
• Reckon Accounts Hosted
• Desktop Members
• Reckon Insights

We’re here to help

Small Business Resources

Learn the important aspects of running a small business

Free resources to get started with your business

Explore resources and articles

Support Hub

Find answers to all of your questions

Find an advisor

Browse certified Reckon product users

Customer service, technical support, and more

All your business needs sorted

Monitor your accounting needs

Create and send professional online invoices

Track and monitor your business performance

• Accounting Basics
• Invoices & Billing
• Bank Reconciliation
• Employee Expenses
• Jobs & Projects

Other Solutions

• Business Loans
• Accounts Hosted
• Financial Reporting

Grow your practice with Reckon

Become a Partner

Choose a partner program that suits your business

Partner Login

Access resources and benefits available on Reckon member site

Free business plan template for small business

Create a professional business plan with our our easy-to-use business plan template., the importance of a business plan.

Writing a business plan gives your business the best chance of success helping you to flesh out your business proposal, outline key business processes and gives an action plan of what you want to achieve over time. While it can seem overwhelming, the time and effort you put in is worth it for your long-term success. Use our free business plan template below to get you started!

Get your free business plan template

• Name * First Last
• What industry are you in? * Trades & Construction Retail Medical & Healthcare Non-profits Farming, Agriculture & Mining Arts & Creatives Professional services Hospitality E-commerce Manufacturing Education & training Other
• Email This field is for validation purposes and should be left unchanged.

Take control of your finances with Reckon

Up your accounting game with Reckon’s accounting software for just $12/month.

Monitor cash flow

Gain immediate clarity over your net business. Take control by keeping track of receipts, payments, and expenses and watch your net position change in real-time. 

Import bank transactions

Manually import your bank statements into  Reckon One . Then categorise unlimited transactions, helping you to keep track of the money coming in and out of your business.

Financial reporting

Create 20+ impressive reports, and use powerful tools to gain insights. The dashboard is customisable according to the needs of your business.

Business plan template FAQs

What should a business plan include.

A business plan consists of a single document with different sections that represent different aspects of your business. Most business plans include the following:

• Business overview
• Executive summary
• Team & Management
• Product & Services
• Market Analysis
• Competitor Analysis
• Marketing & Promotions
• Financial Analysis
• Future & Goals

How do you write a business plan?

Writing a multi page business plan when you are just starting out can seem overwhelming. The key to getting started is to keep it simple and add to it as you grow. Start with key headings (or use our template) and some bullet points mapping out your business overview, vision, market analysis and financial forecasts.

Tips for writing a business plan?

Check out this blog article for more information

7 Tips for writing a Business Plan >

Try Reckon accounting today!

30 days free. Cancel anytime

• Agribusiness
• Institutional

Creating a business plan.

A thorough business plan is priceless for any business - if you're trying to grow your business in a crowded marketplace, it could be your biggest asset.

Current state vs future goals.

Think about where your business is now and where you want it to be in five years' time. You should make note of this in an executive summary that introduces your business plan. It's best to write the summary after you finish writing the plan itself.

The purpose of your business.

The first part of your business plan should detail the reason for your business - its purpose. Detail your business structure, the number of staff you have, your physical address and region where you're based. You may have locations spread out across New Zealand or the world if you export.

Explain how your business is different from your competition, the products or services you've developed, and define your competitive advantage. Consider:

• Where the opportunities are for your business - are there gaps in the market that you can exploit with a new product or service?
• Your strengths and weaknesses - what does your business do well and where is there space for improvement? For example, do you have outstanding customer service?
• Any threats to your business on the horizon - are you aware of any new competitors or marketing campaigns from your rivals that could impact heavily on your bottom line?

Formulate a SWOT analysis

Have a brainstorming session with your staff to identify your business's strengths, weaknesses, opportunities and threats. You can even ask your loyal customers for their opinions.

A SWOT analysis helps you pinpoint the positives and negatives of your business, both internally and in your control (strengths and weaknesses), and externally and outside of your control (opportunities and threats).

Free business plan template

There's a handy business plan template available on the Business.govt.nz website.

Your competitive advantage.

A competitive advantage is simply what you do better than anyone else. It's important to be specific about why consumers choose your business over your competitors' businesses. What exactly is it about your operation that is an advantage?

• Prime location - say you have a burger joint that's in a prime location, on the main street with huge foot traffic. Your competitors are off the main street, giving you a key competitive advantage over them
• Regular cut-price discounts - perhaps you sell electronics and are well known for having sales competitors can't match every two weeks. This would mean your sales can be marketed as a main advantage
• Personalised after-sales service - perhaps you have a business that sells and installs ovens, and sends staff to people's homes one month after each sale. If competitors aren't offering similar after-sales service, this is a crucial competitive advantage.

The smarter you can be about developing and promoting your competitive advantage, the better placed your business will be to succeed. Be careful not to generalise with words like 'price' or 'quality' - you have to be more specific.

Scope out your competitors.

When building your business plan, describe your main competitors. Consider all possibilities - you may have competitors on the same street, elsewhere in your town or city, throughout the country, worldwide and on the Internet. As soon as new competitors enter the market, you'll want to know about them too.

There may be competitors who aren't in your precise sector of business, but you may still be competing with them for the same consumer dollar.

It's a good idea to also do a SWOT analysis on each of your main competitors. Then make use of this information by assessing how your business could reduce your competitors' strengths and opportunities, while taking advantage of their weaknesses and threats.

No market without marketing.

How you'll position your business in the marketplace and how you'll continue to trade in the long-term should be answered with an intelligent marketing strategy. Plan your marketing budget and how you'll use it to help return a profit.

Market research will enable you to focus your marketing budget on targeted consumers, rather than just sporadic advertising. Detail how you're going to get the information you need to target potential consumers with channels such as print, TV, radio, social media, paid search, online display or email.

Position your product or service

Take into account the four Ps of marketing when coming up with your strategy. They are:

• Product - having products (or services) that are right for the market you're promoting to
• Price - ensure your products or services are selling for a price that will make your target customers feel like they received value for money
• Promotion - explore the numerous opportunities to promote your offerings. Some examples include magazine ads, flyers, Facebook posts and press releases
• Place - think about where and how you'll get your products or services to your customers. They have to be able to easily access them.

Creating a business plan is a process of thinking through all the variables that are going to affect your sales. 

Things you should know.

The material on this webpage is provided for information purposes only and is not a recommendation or opinion.

The material on this webpage does not take your particular financial situation or goal into account. We recommend you seek independent legal, financial and/or tax advice.

Links to other sites are provided for convenience only and Westpac accepts no responsibility for the availability or content of such websites.

• Start your business
• Scale your business
• Set Up Pricing
• Scale Up Pricing
• Calculators

Learning hub

The learning space for people running their own small business.

• Starting a business
• Money & tax
• Brand & marketing
• Getting online
• Risk & Insurance

How to create a simple business plan for your small business

A business plan is a document created to provide a clear road map for your business. It outlines the fundamentals of your business: the services or products you will offer, the financial plans, marketing strategies, and your business structure. By laying out these elements in a written document, you gain a clear understanding of your vision.

What exactly is a business plan?

A business plan is a roadmap that you create for your business. It details the fundamental principles of your business and how you will go about generating revenue and ultimately a profit. This may cover the different strategies that you are going to use, your organisational structure and the products or services that you are going to market.

By putting everything down on paper, you are committing your thoughts to a workable plan.

Why have a business plan?

Going through the process of writing a business plan forces you to think strategically about your business. If you are presenting to potential partners or investors, they will want to know that you have detailed the opportunity, the risks, your product or service and have a good understand of your marketplace.

Gain clarity in processes

Business plans help to give you clarity about the processes that you are going to follow. A plan puts a timeframe on your goals, which can tune your dreams into actions. A business plan is not about having a day-to-day schedule of what you’re going to do; it is about developing your long-term roadmap and vision.

Define you unique selling points

If you’re starting your own business, you’re probably already thinking about what sets you apart from competitors. Coming up with your unique value proposition (UVP) or unique selling proposition (USP) creates a strong foundation for all your marketing messages and strategies for engaging and acquiring new customers.

Defining your target customers

You need to figure out who your ideal customers are. Your target market or target customers are a group of consumers or organisations that are most likely to buy your products or services. Marketing to these buyers is the most effective and efficient approach. The alternative – marketing to everyone – can be both inefficient and expensive.

Defining your focus

The day-to-day of running a business can be overwhelming. It’s easy to get sidetracked by a multitude of things that aren’t necessarily the most valuable thing you can do for your business.

By having a business plan, you can continually revert to the roadmap and understand which activities are going to drive you towards your goals

What should go into your business plan?

A business plan will usually include an executive summary, a description of the business, your goals and objectives, details about the product and or service, marketing direction and strategies, how the business will be managed and operated, and the financial plan for your business. The below bullet points may be helpful in structuring your document.

Don’t obsess over every detail to start with. That will make the plan long and hard to change and adapt as you go. Keep it short and concise initially.

Executive summary

• Target Market
• Customer Descriptions
• The Opportunity
• Competitor Analysis
• Financial Plan
• Operating Plan

Although this should be the first section in your plan, it’s often easier to write it last. It’s one of the hardest sections to write well, as it needs to be concise but capture the main points. You have to answer the question “what do you do?” in as few words as you can, while making sure it’s interesting and memorable. This summary is sometimes called an elevator pitch. Try to imagine you’re riding a few floors with a potential investor, adviser, employee, or customer.

Your elevator pitch could be something like: “I run a business called (name) that provides (product/service category) mainly for (target market). We provide (unique customer benefit/business purpose) by (how you achieve that). It’s something we believe in and do really well.”

Target market

If you try to sell your products or services to everyone, it’ll be almost impossible to outdo your various competitors. You’ll also risk wasting time and money on people who don’t need or value what you sell. That could mean disappointing a lot of people, who then have a less-than-positive story to share about you.

To define your target market, begin with the big picture then speak with some potential customers and trusted advisers to see if your assumptions are correct. Gradually refine your market definition as you continue testing your ideas. Here are some thoughts to get you started.

• Will you sell to businesses or consumers?
• Will you make isolated sales to customers or develop an ongoing relationship with regular clients?
• If you’re selling to businesses, describe the size, turnover, and sectors you have in mind.
• What business roles will benefit from your product or service, and who is likely to make the purchase decision – CEO, sales manager, HR director, marketing manager, property manager, etc.
• Their age group, gender identity, socio-economic attributes
• Where they’re located
• Particular employment, profession or interest groups you might be targeting

Customer descriptions

Once you’ve tested and defined your target market, it can help to create a few specific customer descriptions. These are sometimes called customer personas. They describe fictional individuals who represent your main customer groups, as though you know them personally. Business customer personas contain more about the individual and their work. Consumer personas focus more on their life away from work.

While often used for marketing purposes, personas can also help you, your employees, and your advisers to make better decisions based on customer needs. You can even use an image library picture of someone the persona would typically look like. Before long you’ll be referring to them by name, and whether a business decision will benefit so-and-so or which option they’d prefer.

Here’s an example for a Christchurch-based expert gardening service designed for older people.

Mary has been a keen gardener for as long as she can remember. She knows a lot about plants and takes great pride in her garden. She likes the exercise and being out in the fresh air. Mary is straight up and direct. She enjoys a good laugh but doesn’t have much time for pretenders. Now in her 80s and still reasonably well off, she’s living alone in the family home in Fendalton but finds it increasingly difficult to keep things in order. Many of her friends have moved into retirement villages and they seem to visit less and less often. Sometimes she feels a bit lonely. Her daughter has suggested hiring a gardener, but Mary says it would have to be someone trustworthy who knows what they’re doing and can work alongside her. It would also be handy if they could get supplies for her from the local garden centre. And maybe stay for a cuppa from time to time. As with many things these days, her daughter says she’ll see what she can find and then they can talk it over.

The opportunity

In this section you can describe your assessment of the immediate market potential, but also demonstrate your understanding of how the business can grow. What is the wider potential, how will you reach that market and scale up to meet the demand? Can you sell your products or services online? Will you have to hire more people? Are physical premises required in new locations? How will you ensure you retain your point of difference and service standards? What new opportunities will expansion bring?

Competitor analysis

Ignoring the competition will only lead to problems and it’s a sure sign you’re not very business-savvy at all. Although it may be hard to focus on what could undermine your business, it’s an essential part of planning for success. Here are some ideas for this section.

• List all direct competitors – the ones that are primarily focused on selling the same service or products as you, particularly if it’s to the same market segments.
• List your indirect competitors – the ones that cross over with your business, but their focus isn’t the same as yours.
• Write down the challenges or barriers that will help to prevent more competitors appearing in the market.
• Describe what sets you apart from competitors, your unique selling proposition (USP) and why it’s likely to remain unique to your business. For example, if you sell products, you might have a way to differentiate your business based on quality, service, price, or range. This needs to be believable, so stick to facts not wishful thinking.

Financial plan

Include high-level financial information about your set-up costs, ongoing expenditure and projected income. An accountant or some types of business software can help you create a draft cash flow forecast that shows how your business will survive. A summary is all you need to include here.

Marketing plan

Most marketing plans address what are known as the five Ps. Just remember to keep things brief and stick to the facts.

• Product: What are you selling? What need or issue does it address? What are its unique benefits? How will it be packaged/delivered? Is there a warranty? And so on.
• Price: What will you charge? How does this cover your expenses? How do you know your customers are willing to pay this amount? Does it fit with your brand? How does it compare to your competitors’ charges? What is your expected profit per item?
• Place: Where will you sell your product/service? How does this make it easy to reach your target customers or meet their expectations? How will this change as you expand? Will you have temporary variations for things like events or seasonal changes?
• Promotion: How will you promote your product or service? How does this align with your target customer groups? How have you worked out which methods will provide the best return on investment?
• People: How will you attract the best employees? Collaborate with others? Build strong connections with customers? Make it easy for people to become your social promoters or ‘brand evangelists’?

Operating plan

Focusing on the present or immediate future, describe the day-to-day tasks required to make your business successful. Like a project plan, this section needs to include what needs to be done, who does each task and when does it have to be done by. It should cover all aspects of the business at a high level. It basically shows in a simplified form that you’ve thought all your processes through, including the points at which they depend on inputs and outputs from each other.

What skills and experience does your business need to succeed and where will they come from? What people will you need to employ? What skills and experience can you tap into as required, through the likes of contractors, advisers, and business professionals? How will you identify, attract, and retain the best you can afford and those you can trust?

More From The Learning Hub

• Creating Smart Goals For Your Small Business
• Markup & Margin Calculator
• Creating An Online Presence For Your Small Business
• How To Choose And Register A Business Name In NZ
• Create a logo, register a domain name and build a website with our Marketing Toolkit
• Power Up Your Business with A Free Afirmo Account

Want a FREE Income Tax return?

Related articles.

Do you need a ‎Cofounder in your new business?

Surviving the tough times in business

Learning hub - keep me informed.

Planning your business

How to plan for a new business

Many of us have a vision of owning our own business – but getting into business takes a lot of planning. Use this guide to help you turn that desire to start your own business into a gratifying reality.

In this article

Why planning is important for a new business.

When starting a business, smart entrepreneurs take several cast-iron steps to minimise risk, including researching their idea, writing a business plan, and double-checking all their findings. At the end of the day, you have to do your homework to establish the feasibility and bankability of your business before you go any further. If you invest time upfront planning your business, you’re likely to reap the rewards in the long run. 

Below are some key questions, tips, and considerations to help you get your business off to a flying start.

Is owning a business right for you?

If you’re looking to start a business, then chances are you’ll be investing a huge amount of your time, money (or maybe someone else’s money), reputation, and energy. Before you take the leap, do a self-assessment to make sure it’s something you absolutely want to do.

Running a successful business requires juggling everything from accounting, admin, and tax to sales and customer service – so it’s important to be the kind of person that thrives on challenges, is resilient in the face of setbacks, and is prepared to take risks. If you’re not that person, question whether owning your own business is really right for you. 

It’s a good idea to talk to someone who’s started their own business to get an insight into the challenges.

Start from scratch, buy, or franchise?

Building a business from scratch.

Building a business from the ground up is hard work – but if you’re prepared to work hard enough to make it happen, the end result can be incredibly rewarding. To give your business the best shot at success, you’ll need to consider the feasibility of your idea and conduct robust market research before taking the plunge.

Buying an existing business

Buying a business that already exists can be a great way to gain immediate cash flow, a proven track record, market credibility, and an established customer base. It’s important to thoroughly investigate all aspects of the business – from financial performance to legal and tax compliance – to identify any potential problems. This ensures you know exactly what you’re buying and will help you assess the value of a business and the risks associated with buying it.

Franchising

A franchise is a business that’s part of a group, usually with an established brand. They provide training and a support network, but there are rules to follow (such as prices to charge and where you buy supplies from). The benefits are a (hopefully) proven system that’s been tested and set up by others so you’re not alone.

Determine market demand

Regardless of what type of business you’re buying or building, you’ll need to establish that there’s a market for the type of product or service you’re selling. This should be done before you go too far down the track of developing your business.

You also need to work out your competitive advantage – why will people buy that product or service from you rather than one of your competitors?

Understanding your market, your customer, your competition, and what makes your product or service offering unique, is what will help you determine whether your business has a real shot at being successful.

The most compelling evidence is often established demand, for example:

• Do you have any orders in advance, or have you secured any contracts? 
• Have you trial-marketed your product or service on a small scale to determine its wider demand and acceptability? 
• Are there existing businesses in the industry that you can use as market evidence?

Conduct market research

There are lots of ways you can do research into your market. By far the most common (and realistic) approach is to simply get out and talk to as many potential customers as possible about your idea. 

Other cost-effective ways to conduct market research include getting in touch with an experienced business owner within your industry, looking at similar products or services in other parts of New Zealand, and joining an industry association that produces research and insights.

Create a business plan

Writing a business plan helps you plan where you want to go. At any time, a quick glance at your business plan lets you determine if you’re on track to achieve your goals, or whether you might have to steer the boat back on course.

A business plan will also help when you speak to the bank, other lenders or investors, and your accountant, lawyer, and advisers. The plan builds confidence by showing you’ve thought through your ideas and translated them into achievable steps.

Calculate your sales targets and running costs

Before you progress further with your idea, you’ll need to crunch the numbers and find out if your idea is profitable. Even if you’ve never made a sale, you can predict the future financial outlook of your business by completing a break-even point forecast, profit and loss statement and cash flow forecast. Our business calculators can help you complete these important steps.

Break-even point forecast

It’s important to know what your break-even point will be when you start up a business. This is where your costs equal your income so you neither make a profit or a loss.

Projected profit and loss statement

A profit forecast tests the viability and sustainability of your business idea, by establishing the volume of sales that the business needs to generate to cover its costs before generating a profit. In other words, your profit and loss statement shows your predicted profit for the year – not necessarily the cash in and out of the business.

Cash flow forecast

This is your predicted cash flow – actual cash in and out of your business, usually for the period of a year.

Work out how much money you need

To work out how much money you’ll need to start your business, you need to calculate two things – your start-up costs (your one-off, set-up costs such as equipment, legal fees, and initial stock) and your working capital requirements (your regular ongoing costs such as raw materials and wages).

If the cash you have available is less than the total funds required to start your business, then you may need to borrow the shortfall. 

There is a range of different finance options for your business and it’s likely that you’ll require a combination of finance options to meet your short-term and long-term funding requirements.

Set up your banking

You’ve identified that you have the skills and necessary drive to be self-employed; you’re satisfied that your business idea is feasible and a demand exists; and you’ve sorted the necessary finance. Now it’s time to start getting ready and setting up the facilities you may need for your business – for example, debit and credit-card processing facilities, business credit cards, and day-to-day banking accounts. You’ll also want to look into insurance and make sure that your business, and the people in it, are sufficiently protected.

Determine your business structure and business name

Business structure.

The most popular business structures in New Zealand are sole traders, companies, and partnerships. Your lawyer and accountant can advise you on the best structure for your business.

Business name

You can check to see if the business name you have in mind is available as a company name, domain name for your website and a possible trademark, all at once. Go to business.govt.nz/onecheck , a free online tool that allows you to enter your proposed business name and the tool searches all three databases at once.

Tax and GST

You’ll be doing your business a great favour if you get on top of taxation issues right from the start. In a well-managed business, there should never be an ‘unexpected’ tax shock because most taxation is predictable and therefore can be planned for – especially if you consult your accountant and take advantage of free training on offer.

You can apply for the new company’s tax number from Inland Revenue through the Companies Register on the New Zealand Companies Office website at the same time that you form your company.

Because everybody’s individual circumstances are different, it’s important that you get professional advice specific to you and your business. Inland Revenue offers a free business tax information service for businesses that are starting up or changing the way they operate. More about these services and other resources are available from the Inland Revenue website.

Set up your accounting systems

Setting up good accounting and record-keeping systems is essential to running an efficient and successful business. Having good systems will help you to determine whether your business is making enough money to meet its expenses, make sure you have enough money to pay taxes, and demonstrate to investors and bankers that your business is sound.

Remember, you must keep your business records for at least seven years, as they’re key evidence that Inland Revenue will use if they audit your business.

You can start off with a manual cashbook or keep track of your sales and outgoings on an Excel spreadsheet. But if you’re serious about being in business you should consider using an accounting software to manage and track your business finances.

Launch the business

Gain awareness.

The most exciting part of starting a business is the actual launch. You’re telling the world that you are now open for business and as you usually only have one launch, it’s important to take advantage of the possible free press or coverage you might get.

Create a marketing plan

At this point, you’ll want to create a marketing plan to identify, locate, and sell to your customer groups. Allocate a budget and calculate what sales you need to recover the cost of the campaign and make a profit. Then measure the results, taking note of what works and what doesn’t.

Plan your pitch

Start investigating how you can get ‘in the door’ to pitch your product or service if you sell to other businesses. Learn as much as possible about the target’s structure, organisational chart, and its focus and plans. Then construct the perfect elevator pitch to wow your audience.

Build an online presence

There’s a very good chance customers will either find you, or search for you, online. Build an online presence, with dedicated social media pages and a basic website, to get the word out and grow a loyal community.

Employing staff for the first time

Once you start your business, you’ll eventually need employees to assist you if you want it to grow. Regardless of when you need to hire, there are certain steps you should take to make it easier to get them on board and up to speed with your requirements.

Write a job description

Spend time thinking about your requirements and deciding what your new employee will be required to do. For example:

• A person profile and the technical, physical, or personal requirements needed
• The problem you’re trying to address
• The key tasks for the role, from the day-to-day tasks to likely one-off jobs and special requirements
• Likely salary expectations so you can determine if you can afford them
• How many hours will the role require? This includes whether the role will be a part-time or full-time position, permanent or fixed term
• How much responsibility is required?

Employer responsibilities

Once you become an employer then there are a new set of obligations you will face, from being a responsible employer to filing accurate PAYE forms and payments.

Every employee will require an employment agreement. You can build your own using the Employment Agreement Builder on the business.govt.nz website .

Employers are generally required to contribute 3% of an employee’s before-tax pay if the employee is contributing to a KiwiSaver scheme from their pay. This may change in future if legislation changes.

An online payroll solution can help make managing staff payments, PAYE, and IRD returns easier.

How to create an effective business plan

Create a simple, yet effective business plan: from setting SMART objectives to conducting a SWOT analysis, understanding your customers to marketing strategies.

Popular planning your business articles

Why you need a business plan, how to gain awareness for a new business, essential tips for business goal setting, how to write a simple business plan, business plan template, how to write your business elevator pitch, important information.

We’ve provided this material as a complimentary service. It is prepared based on information and sources ANZ believes to be reliable. ANZ cannot warrant its accuracy, completeness or suitability for your intended use. The content is information only, is subject to change, and isn’t a substitute for commercial judgement or professional advice, which you should seek before relying on it. To the extent the law allows, ANZ doesn’t accept any responsibility or liability for any direct or indirect loss or damage arising from any act or omissions by any person relying on this material.

Please talk to us if you need financial advice about a product or service. See our financial advice provider disclosure at anz.co.nz/fapdisclosure

Was this content helpful?

How to Start a Business in New Zealand

By Dan Kim Associate

Updated on August 15, 2022 Reading time: 5 minutes

This article meets our strict editorial principles. Our lawyers, experienced writers and legally trained editorial team put every effort into ensuring the information published on our website is accurate. We encourage you to seek independent legal advice. Learn more .

Test Your Business Idea

Choose a name and protect it.

• Choose a Business Structure 

Register Your Business

• Consider Regulations and Tax Implications   

Get Your Key Legal Business Documents In Place

Key takeaways, frequently asked questions.

Before you start a new business in New Zealand, it is crucial to research your market and size up your competition, as well as develop your unique selling proposition. If you can solve a problem or address a gap in the market for your potential customers, you are more likely to convince people to fund your venture or buy your products or services. 

Trying to commercialise a business idea can be daunting. However, New Zealand is an excellent environment to user-test the viability of your idea. It is a small market with an educated population that is receptive to technology and well-connected.

This article will discuss:

• the various steps you need to take to start a business in New Zealand;
• some of your legal and tax obligations; and
• how to access free resources to help you get things off the ground.

If you have not started already, drafting a business plan can help you decide if your idea is viable or not. As part of this process, you will: 

• analyse the market and your competition; 
• define your unique selling point; and
• crunch the numbers.

When it comes to creating your business plan, there is no one-size-fits-all formula. You can use a document or a business canvas for a more visual representation. 

A SWOT analysis can help you identify the internal and external factors affecting your business. SWOT stands for your:

• weaknesses;
• opportunities; and

You can also access useful tools and statistics for your research on the Data for Business website developed by Stats NZ . 

There is plenty of help available to entrepreneurs looking to start a new venture in New Zealand, including:

• free advice;
• mentors; and

An experienced business advisor or a mentor can help you review your business plan and offer feedback and recommendations to improve it.

To access these resources, start by registering with your local Regional Business Partner Network . A local business advisor can explain what types of assistance you might be eligible for and introduce you to valuable business networks.

Choosing a name for your business can be an important decision, especially if you are planning to build your brand around it. The key to selecting a successful name is to: 

• keep it simple and clear;
• allow you to stand out from the crowd; and
• explain what you do as a business.

Once you have chosen a name, test it with other people and check whether it is available before you settle on it. You can do this with a quick search on ONECheck . This free service also allows you to reserve your:

• web domain;
• trademark; and 
• social media usernames if they are available.

Your name (and brand) are valuable assets for your business, so it is a good idea to protect them, especially if you have plans to expand your operations in the future. You can do this by registering a trade mark with IPONZ .  With registration, you can:

• protect your words, logos, shapes, colours, sounds, smells, or any combination of these;
•  protect your trade mark for ten years (at which point you would need to renew);  however, note that
• it is a fairly lengthy process (it takes a minimum of six months).

When you incorporate a company, your name will be protected to a certain extent when you register it with the Companies Office. As soon as you have reserved your company name (being the first step required for incorporating your company), no other companies can use the same or similar name to yours. However, doing this does not grant your business name automatic trade mark rights.

Before applying for a trade mark, it is a good idea to get a search and preliminary advice (SPA) report on the IPONZ website.

Choose a Business Structure 

While there are many available business structures, Kiwis typically structure their businesses as:

• sole traders;
• partnerships; or 
• companies.  

As a sole trader, you are flying solo. This is the easiest and cheapest structure to set up, which appeals to many small business owners who:

• run a trade;
• consultancy business; or 
• want to turn their passion into a financially viable operation.

However, it also has some disadvantages , so make sure you also consider these before landing on this as your preferred option.

Unlike sole traders, partners in a partnership share the responsibilities and costs of owning and running the partnership. When you have a business partner, you can share the load of managing the day-to-day operations and decision-making. This structure often appeals to businesses in industries such as:

• legal; 
• financial services; and 
• farming. 

In a company structure, your business is a ‘legal person,’ separate from its shareholders (you). This means, among other things, that the company owns the assets and liabilities of the business and is responsible for any debts. Companies are the most common structure. This is because the cost of setting up a company is relatively minor compared to the benefit of business risks (or liability) being limited to the company.

Conceptually, it is also much easier for people to separate their business affairs into company accounts rather than trading from their personal accounts (as you would in the case of a sole trader).

If you decide to operate as a sole trader or partnership, you can register your business and get a New Zealand Business Number (NZBN) for free on the NZBN website. This unique identifier for your business will allow you to interact more seamlessly with other businesses and government agencies.

When you incorporate a new company in New Zealand, you need to register with the Companies Office . There are costs associated with this. Companies get assigned an NZBN automatically as part of their registration process. 

Consider Regulations and Tax Implications   

There are different ways to set up your business, each with varying tax obligations and subject to specific regulations depending on the industry. Before deciding how to structure your business, it is a good idea to consult a business structuring lawyer and accountant to help you weigh up the advantages and disadvantages of each option. 

Some of your essential tax responsibilities may include: 

• getting an IRD number;
• completing financial accounts and various tax returns each year;
• making certain deductions from your employees’ salaries such as PAYE, student loan, and KiwiSaver, then paying these to IRD; 
• working out whether you have to pay provisional tax during the year; and
• having to register for GST if your turnover is over $60,000.

There are other industry-specific regulations that you may need to get familiar with as part of setting up your new business in New Zealand. These include your obligations around:

• fair trading;
• privacy; and
• health and safety.

You can use business.govt.nz’s Compliance Matters tool to search for central government regulations that may apply to your business or industry.

As your business starts expanding and bringing in more revenue, it is vital to have legal documents in place which reflect the way you do business with your customers. Client or service contracts are essential for service-based businesses as they specify what services you provide to your clients and how payments are to be made. For businesses selling goods, it is important to have terms and conditions of trade, as well as internal company policies which address returns and refunds for faulty goods. 

If there are disputes with your customers, these documents are crucial for determining where both parties stand and what rules apply. If drawn up correctly, these documents will find the right balance of minimising the risks your business takes on while also providing certainty for your customers.

This way, your customers know that the products you sell comply with New Zealand consumer laws.

Additionally, if you operate a website, it is also important to have a website terms of use and a privacy policy . A privacy policy lets your customers know what data is collected and how it is managed by your business. Furthermore, when dealing with other key commercial matters, you should draft documents that reflect these commercial arrangements. Such matters may include:

• leases; 
• financing; 
• investors; 
• use of intellectual property; and 
• relationships with manufacturers, distributors, or suppliers.  

Essential reading for anyone building their startup. This free guide includes practical advice and seven real-life case studies.

From testing your idea to protecting your IP, there are several things to do when you start a business in New Zealand. These include: 

• creating a business plan to help you validate your business idea; 
• conducting a thorough check before settling on a name for your business; 
• protecting your name and brand by registering your trade mark;
• deciding on a business structure and registering your business;
• getting an IRD number for your business;
• putting key contracts into place for your business; and
• researching whether you need to comply with other industry-specific regulations. 

If you need help with the legalities of getting your business off the ground, our experienced business lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0800 005 570 or visit our membership page .

To start your own business from scratch, you need to conduct some market research and create a business plan. You then have to choose your business name and legal structure. This step requires careful consideration as it determines some of your legal and tax obligations. If you make over $60,000, you need to register for GST, and if you are planning to hire staff, you need to register as an employer with Inland Revenue. You should work with a lawyer and (or) accountant in the initial stages of setting up your business, as they can help you understand your legal and tax obligations to make sure you do not miss anything.

There is a first time for everything, including starting your own business. The success of your business does not necessarily depend on your entrepreneurial experience but rather on having a strong business plan and support network you have around you to help you implement your strategy. You may want to sign up with your local Regional Business Partner Network to find out if you are eligible for free mentoring and government grants.

A business plan typically includes an analysis of your target market and competition, and it defines your value proposition. It explains your strategy and how to implement it and includes a financial analysis to demonstrate the profitability of your idea. You can write a business plan using a canvas or document. The New Zealand government offers free templates for download on the business.govt.nz website .

We appreciate your feedback – your submission has been successfully received.

Register for our free webinars

Tips for navigating a business dispute, contact us now.

Fill out the form and we will contact you within one business day

Related articles

10 Privacy Tips for Startups in NZ

3 Documents Sole Traders Need to Start an Online Business

3 Key Considerations When Starting a Company

3 Steps to Starting a New Partnership in New Zealand

We’re an award-winning law firm

2022 Law Firm of the Year - Australasian Law Awards

2021 Law Firm of the Year - Australasian Law Awards

2021 Fastest Growing Law Firm in APAC - Financial Times

2020 Excellence in Technology & Innovation Finalist - Australasian Law Awards

2020 Employer of Choice Winner - Australasian Lawyer

Go to homepage business.govt.nz business.govt.nz

Business.govt.nz, in association with, getting business planning advice.

When you’re deep in the day-to-day running of your business it can be hard to see things with fresh eyes.

An advisor can provide an experienced, unbiased perspective to help you understand and plan to get where you want your business to go.

How advisors can help

Advisors can help you:

• build, review and monitor your business plan
• identify business problems and opportunities
• prioritise the way you use your resources
• navigate difficulties as they come up
• get funding to support your business
• connect you with their networks.

When to consider getting advice

Advice can be useful at all times, but consider getting help with your business planning when you’re:.

• starting a business
• looking for funding or investment
• not meeting your current business plan
• encountering unforeseen changes in your industry that may impact your business, eg new technology
• looking to expand your business
• considering exporting your product
• looking to commercialise an idea that may require research and development (R&D).

Getting out of a pickle

Julia makes premium relishes that she sells at local markets, to supermarkets and from her online store. After checking her monthly results, Julia finds she’s not meeting the profit targets set out in her business plan.

One option is to increase her marketing budget but, being relatively new to business, Julia goes to a business advisor to explore how to get her business back on track.

Together they identify that slow sales are not to blame – it’s because margins on her products are too low. Spending more on marketing will simply mean losing more money.

They work together to find a price tag that won’t put off customers but will make the profit Julia needs. 

Where to get advice

Depending on the advice you need, you can get help from:

your accountant

business mentors

investment advisors

business incubators

Regional Business Partner Network (external link)

Callaghan Innovation (external link)

If you’re unsure you’ll get the advice you need from those above, ring them first to discuss what you hope to get out of it.

Tips on when business planning is right for your business.

Good questions to ask before getting advice

To make sure you get the most out of your meeting, it’s good to think about:

• What are your business goals, eg money, expansion or work-life balance?
• What’s important to your business?
• What decisions are you trying to make?
• What do you need help with?
• What questions do you have?
• What type of advice do you need?

Before your first meeting

Make sure you can clearly explain:

• what your business does, or what you’re looking to do
• who your customers are and why they would buy your product
• who your competitors are – what your customers buy or use instead of you
• the opportunities or problems your business is facing
• your short and long term goals
• your finances – bring along what you have
• your existing business plan – if you have one bring it along
• what you’d like help with, eg a set project or ongoing support and advice.

If you don’t have all of this information, use any gaps to prompt your conversation with your advisor.

Common mistakes.

Avoid these common pitfalls:

• Not getting help when you need it.
• Only seeking help when you’re looking for funding.
• Getting too emotionally connected to your business to process and take on feedback from an advisor.
• Not regularly reviewing your business plan.

How helpful was this information?

"Rate this" is required

You must enable JavaScript to submit this form

Related content

Who to talk to and when, start-up business plan.

Use this template to help write a great plan for your new business.

Preparing for H&S advice

Useful if the risks you need to manage are complex and technical.

Test if you’re ready to grow

Are you and your business ripe to expand? Take our self-assessment test and find out.

10-step business plan

Quick-focus planning to make sure you work on the right things for your growing business — every day.