Starting a business
Many of us dream of owning our own business — no boss to answer to, hours to suit us, holidays whenever we like — but it can be a lot of hard work, especially early on.
Helpful tools and sites
Guide to Launching a Successful Business (PDF 654 KB)- Businesses and employers — IRD website
- Tool for business — IRD website
- Starting or buying a business — business.govt.nz
Getting started
It's a good idea to ask the hard questions at the start. Be clear about why you're going into business — having clear goals will help you stay motivated.
Research the market to see if your idea is viable. Consider things like:
- is there enough demand to sustain your business in the long term?
- who are your potential customers and how much are they likely to spend on your product or service?
- who are your competitors and what can you offer that they don't?
If your idea still stacks up, you'll need to develop a business plan — an outline of your goals and how your business will operate.
- Guide to Launching a Successful Business (PDF 654 KB)
- Your business plan — business.govt.nz
Can you afford to set up a business?
Start-up costs can include things like rent, buying furniture and office equipment, and installing machinery and technology. Don't forget to factor in costs like marketing, website development, insurance premiums, and legal and accounting advice.
Work out how much money you'll need to survive until you start breaking even. If you need to borrow money, talk to a Kiwibank business banking specialist. They'll help you figure it all out, and they'll continue to work with you as your business grows.
Banking and accounting
To get going, you’ll need some bank accounts. We also recommend seeking advice from someone like an accountant — and you might want to consider using an accounting system to help keep you on track.
You might want to open:
- a transaction account to collect money into and make payments from
- a savings account like a Business Online Call account — somewhere to put your tax payments aside as you go, so you’re not hit with any surprises at tax time
- a business credit card for any expenses that might crop up
- a foreign currency account if you’ll be trading overseas.
You’ll also need a bookkeeping system and someone to help you keep your records:
KiwiSaver
If you’re self-employed, you’ll need to sign up with a KiwiSaver provider directly. If you join the Gareth Morgan Kiwisaver Scheme (which Kiwibank distributes), you won’t be required to make KiwiSaver contributions, but there are a number of ways you can contribute voluntarily.
If you employ staff, you’ll need to enroll them in KiwiSaver and make contributions on their behalf.
Note: If you’re self-employed but you pay yourself a wage (so your income is subject to PAYE), you’ll be considered an employee and your contributions will be deducted from your gross salary or wage.
Tax, legislation and compliance
Whether your business is set up as a company, sole trader or a partnership, there are a number of legal and tax requirements you must comply with. This is a potentially complicated area — expert advice is well worth it.
Talk to your accountant about your obligations with Inland Revenue, Occupational Safety and Health, and Accident Compensation.
You may also need to protect your brand with copyright, or apply for resource consent for building developments.
- Intellectual Property Office website
- Copyright Council of New Zealand website
- Businesses and employers — Inland Revenue website
- Consumer Affairs website
- Ministry of Economic Development website
Managing risk
It’s important to get the right insurance to protect your business — and yourself. Your bank or financiers should know what risks you’ve got covered — and sometimes they may insist on certain types of insurance, depending on what your business does. We can help you work through what you might need.
Talk to us
Call our business banking team on 0800 601 601
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Gareth Morgan KiwiSaver Limited is the Issuer and Manager of the Gareth Morgan KiwiSaver Scheme (GMK) and is a related company of Kiwibank. Public Trust is the Trustee of GMK. Kiwibank is a distributor but is not an issuer or promoter of GMK. Investments made in GMK do not represent bank deposits or other liabilities of Kiwibank Limited, New Zealand Post Limited or any other member of the New Zealand Post Group. Download the Investment Statement for the Gareth Morgan KiwiSaver Scheme (PDF 684 KB) or pick up a copy from your local Kiwibank. Download Kiwibank Limited’s Disclosure Statement (PDF 1.7 MB) or pick up a copy from your local Kiwibank. Important terms, conditions and exclusions are set out in the policy wording. Business Insurance is arranged by our insurance brokerage partner, Marsh Limited.