Responding to negative feedback

The internet and social media have made it all too easy for customers to relay their feedback to businesses. This can be a great thing because it shows other customers or potential customers why they should choose your business. 

However, this also means that if a customer has a negative experience, then their public feedback has the scope of preventing future customers. Hearing what these reviews have to say to implement change can benefit your business and responding sensitively to the reviews will help with damage control. 

Follow these steps to construct an appropriate response:

• Address the customer by name: Rather than using Sir/Madam, refer to the client by name so that they know their feedback is valued and not simply a scripted and automatic response.
• Sympathise with the customer’s problem: Try to understand what happened from the perspective of the customer to find out why they might have had a bad experience. Apologising will also let the customer know that regardless of whether you agree with their review, you sympathise with their negative experience.
• Let them know you are solving the problem: Acknowledge their problem and let them know that you will be addressing it. This will let future customers know that the negative review may no longer apply so that they are not immediately driven away.

Make sure you do not ignore negative reviews and feedback. Either the review is specific to the customer or they are making a valuable contribution towards how the business can be improved. In order to identify which it is, you should listen to what the customer has to say.

Growing your super fund

Your super is often the money you rely upon during your retirement. Therefore, if you feel that you have enough funds for day to day life, you may want to grow your super. There are many ways to do this: 

• Employee contributions: Contribute to your super through your pay, or discuss with a scheme provider
• Employer contributions: If you contribute to KiwiSaver then your employer must also do so. 
• Getting the KiwiSaver government contributions: The maximum amount the government will contribute is $521.43. However, to receive this you must contribute at least $1042.86 between 1 July and 30 June each year.
• Make payments directly to the KiwiSaver account: You can always make voluntary contributions directly to the KiwiSaver at any time. 
• The contributions made to the KiwiSaver are used to invest in investments of differing risk. These investments depend on what type of fund you choose and thus the growth of your fund. 

Collaboration to grow business

Businesses can gain a lot from collaboration, regardless of the industry they are in. The following are some reasons why businesses should care about collaboration.

Get inspired

As a business, it is important to build a routine and figure out day-to-day operations. However, this might mean that you stop trying different techniques which could be more efficient. Collaboration could give you a fresh perspective and encourage new ideas and methods you could apply at the workplace. 

Grow your network

Initiating collaboration will help you meet people who share common interests and goals. Building connections will benefit your business and could result in partnerships down the line. 

Educate yourself

Collaboration opens up opportunities to learn from those outside your immediate circle. This can provide you with valuable information that may be helpful for your business which is not otherwise accessible to you. 

Solve problems

Two heads are better than one. Therefore, with collaboration, you may be able to solve problems that were otherwise difficult to solve. This is because collaboration allows people with different expertise and backgrounds to contribute ideas. 

What are tax codes?

Tax codes assist your employer in calculating how much tax should be deducted from your pay, benefit or pension. 

It is important to calculate your code and inform your employer as failing to inform them will result in getting tax at the non-declaration rate of 45%. You should also be updating your employer if your tax code changes at any point. 

Your tax code is influenced by the following factors:

• Your main income
• Your secondary income
• Whether you have a student loan
• Whether you are receiving schedular payments
• Whether you are a casual agricultural worker
• Whether you are a recognised seasonal worker
• Whether you are helping with election day work

The government might change your code if they believe you are using the wrong one. This is to avoid excessive taxation or to prevent you from receiving a bill to pay remaining taxes at the end of the year. You are able to inquire about why changes were made if you disagree. 

The skills necessary to be a business owner

As a business owner, you need to continually update various different skills. Improving these skills will enable you to improve all aspects of business operations. 

Financial skills

Being an owner means being able to manage finances. You should be able to effectively forecast your cash flow, monitor profit and loss, create budgets and make financial decisions which reflect all of these factors. 

Marketing and Sales

You should understand how the promotion of your products and services will take place. Marketing strategies are always changing and updating with technology, so make sure you keep up with these changes to ensure you are increasing your chances of sales.

Communication and negotiation

Building relationships with your suppliers, potential investors, customers and employees is essential. Effective communication and negotiation skills are the cornerstones of success in this area – so make sure you cultivate these skills. 

Leadership, project management and planning

Having an understanding of each aspect of your business will allow you to plan your projects and lead your team members. Keep yourself updated with different management styles, develop policies and procedures that will help your team members and manage resources to achieve your business goals. 

While you may be able to hire advisors, marketing directors, and managers, this does not absolve you from the responsibility of overseeing your business. This is why it is integral to continually update your skills and knowledge so you can understand the decisions being made about your business. 

Withdrawing from your KiwiSaver

The KiwiSaver scheme allows you to voluntarily save up so that when you retire, you are financially secure. However, situations can arise during which you find yourself needing the support of your KiwiSaver before retirement. 

If you find yourself in one of the following situations, you are permitted to withdraw money from the KiwiSaver:

• Permanent emigration: If you have lived in another country for more than 12 months, then you can complete a permanent emigration withdrawal form which allows you to either withdraw your savings or transfer them to an approved superannuation scheme. There are some further considerations if you have emigrated to Australia.
• Serious illness withdrawal: If you experience a serious injury, illness or disability, and you are unable to part-take in work which is relevant to your experience and education, then you may withdraw money from your KiwiSaver
• Significant financial hardship withdrawal: If you are experiencing financial hardship, then you may be able to withdraw from your KiwiSaver once you finish a hardship withdrawal form. But, there are some eligibility requirements that you need to meet which are listed on the KiwiSaver website.
• First home withdrawal: As long as you meet certain eligibility requirements, you are permitted to withdraw funds from your KiwiSaver when buying your first home. 

These provisions allow you to access your KiwiSaver prior to retirement when you might need them the most. 

Sustainable practices for your business

Adopting sustainable practices for your business is a great way to contribute positively to the environment. These changes won’t significantly impact business operations, but will effectively reduce the carbon footprint of your business.

• Office location: This is relevant if you are moving to a new location or are newly starting your business. Choose a location which is convenient via public transport or accessible to bike lanes. This will help employees avoid driving to work which contributes significantly more to the carbon footprint than public transport.
• Reduce the use of single-use products: There are lots of disposable products such as cups, spoons, and coffee pods regularly used in the office which cause excess waste that can be easily avoided. Instead, opt for reusable items and also put in recycling bins around the office so that if single-use products are used, they can be disposed of appropriately. 
• Reduce water usage: Conserving water usage can be very simple. Install a dishwasher to efficiently wash the reusable utensils you have bought for the office. Ensuring that there are no leaking taps and the office uses low-flow toilets and faucets will also contribute to reducing waste. 
• Recycle electronics: Whenever you are replacing your electronics (such as monitors, smartphones, printers, etc.) to update your technology and find that they are still working well, consider donating them to charities or schools who will be more than willing to put them to good use. If the electronics are not working, then there are technology recycling programs that you can use.
• Sustainable partnerships: Building sustainable partnerships with like-minded businesses benefits the environment and makes it easier for businesses to make more environmentally conscious decisions. 

Making these changes isn’t particularly difficult for businesses but will significantly impact the carbon footprint businesses leave.

Paying taxes when self-employed

Self-employed individuals have to carry out all aspects of their business on their own. This includes anyone who owns a small business, works as a sole trader, or provides contracting services. In most cases, individuals are able to start a business without setting up any legal provisions. 

If you are self-employed, you can use your individual IRD number to pay tax. The amount of tax you pay will depend on the net profit of your business and you can pay by filling out an individual income return. Once you start making $60,000 you need to register for GST. 

Due to COVID-19, there have been a lot of financial difficulties and uncertainties that individuals and businesses have experienced. Therefore, the government has created subsidies which may assist individuals through this period. It may be worth looking into these provisions as the tax requirements might have changed some of the usual processes.

The risks involved in debt consolidation

Debt consolidation is a form of refinancing which involves taking one larger loan out to pay off multiple small ones. Although this might make managing repayments easier, you may end up paying more money interest rate or fees. 

There will be companies that make offers which are too good to be true. If you feel that an offer is unrealistic and the company is promising that they can get you out of debt no matter what your situation is, you should reevaluate using their services. Don’t trust companies that: 

• Are not licensed
• Ask you to sign blank documents
• Refuse to discuss repayments
• Rush the translation process
• Won’t put all loan costs and interest rates in writing before you sign
• Arrange a business loan when you only need a consumer loan

The goal behind the consolidation is to manage your payments, not create more fees and interest for you. Therefore, before signing onto an agreement, check how consolidation compares with your current fees and interest rates altogether. Also, take into account expenses and penalties associated with your existing loans and whether you will have to pay more money for paying off your loan early. If the expenses work out to be more, it might not be worth going through this entire process. 

Debt consolidation isn’t the only option if you’re struggling with repayments. Other options may be available which are more suited to you. You should discuss with your mortgage provider, credit provider or financial advisors to determine if there is anything that can be done. 

Why company culture is important

Company culture has become an important part of how businesses are perceived. Businesses with a positive culture are more likely to attract clients and customers. Statistics also show that over 50% of executives believe that having a good culture can influence productivity, creativity, profitability, firm value and growth rates. 

However, while it can be easier to describe and quantify a company’s products and services, defining culture is a lot more difficult. It requires capturing the company environment, values and relationships. 

Identifying what your company culture is, or what you want it to be, will determine your work processes, hire new people into your team, and how you and your employees interact with clients. 

The first thing to do is to identify key traits that describe your culture. Bring together a diverse group of people from across your company and brainstorm words and qualities which describe the culture. Collate the words which you hear the most so that you end up with a list which is representative of the culture that employees most relate to. 

The next thing you need to do is distil this list down to the core values you can see in it. You can conduct surveys (if you have a large company) or talk to your employees (if the company is small) and ask them whether the values you have chosen resonate with them, and if not, which ones do. At this point, you should aim to have around 5 values, but this is a flexible number. 

Last of all, once the core values have been established, share them throughout the company. Employees should relate to these values and they should also feel motivated to embody them. Communicate with your employees about why these values may or may not be working/suitable. 

Remember that this is a process. You may not get it right the first time, which is why it is important to be receptive to feedback from all members of the company.