Oct 7, 2013 ... Current to December 12th, 2012 / look/ 5. For business owners, the. Christmas
rush can be either your best time of year, or an absolute ...
Ready or not, Christmas is coming The silly season is upon us, with Christmas less than 3 weeks away. Christmas parties are being planned, and the Christmas shopping frenzy has begun.
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customers. This is especially important if you are making online sales. You do not want to end up with disappointed customers because they could not take delivery of their purchases before Christmas.
or business owners, the Christmas rush can be either your best time of year, or an absolute nightmare. How can you prepare to ensure your business is well placed to come out on top after Christmas? Here are a few strategies to help you through.
Staffing
Stock Having enough of the right stock is a fine balancing act. You need to ensure your stock systems are up to date to be able to determine what’s selling and what’s not, and stock accordingly….. quickly. This could entail a day-by-day review of what’s sold and what’s not, and regular reordering from your suppliers of hot selling products. You do not want to be in a position where you run out of popular items and lose sales, but neither do you want to be holding a large amount of unsold stock that you need to sell after Christmas. If an item is not moving, then the faster you know this the better, so that you can counter by either returning slow moving stock
Carole Pedder, Partner Withers Tsang
items, review pricing or change the way the product is promoted to get buyers attention.
Delivery A lot of customers will be shopping just days before Christmas. Now is the time to review your delivery options and ensure that they are going to be able to meet the demands of your customers. Time frames and costs of delivery need to be clearly communicated with
Make sure you have enough staff on to be able to meet the extra demand of the Christmas rush, and maintain your current level of customer service. Staff that are stressed, or under pressure can sometimes “drop the ball” on customer service or deliver an unpleasant shopping experience for your customer. If you’re not sure that you have enough permanent staff, consider bringing in temping staff for the busy periods.
Cash flow and the Tax Man
Careful cash flow planning is also a must over the holiday period. Especially if after the Christmas build up your business closes for the holidays. Unfortunately just because you’re on holiday, does not mean that suppliers,
staff and of course the Inland Revue Department are happy to wait for payment. Remember that GST, PAYE and Provisional Tax are due to be filed and paid to the IRD on the 15th of January. If possible, meet with your accountant before Christmas to assist you with attending to the preparation, and filing of these returns ahead of time.
to suppliers will be due to be paid on the 20th of January. To plan for this, set funds aside and make use of your internet banking to schedule online bill payments before going away. That way, you can enjoy your holiday without those stomach lurching thoughts like… …”did I remember to put through the wages yesterday?”
In addition, December bill payments
New and Improved - Commercial Leasing
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f you are involved in commercial leasing then you will know the ADLS (Auckland District Law Society) deed of lease; there is now a new 6th edition lease.
In light of a changing insurance market and the events in Christchurch changes are made to insurance, access and termination rights. Landlords can now recover an excess of up to $2,000.00 per claim The ADLS lease from a tenant where is a favourite in the tenant’ s act Denise Marsden & Debra Dorrington commercial leasing or omission causes transactions. It the damage. The is well-known landlord has broader rights of access to and perceived as balanced between carry out repairs if they are needed. The the landlord and the tenant. The most tenant has a right to terminate the lease recent changes are no exception. if it cannot have access following an There is a new CPI rent review clause, emergency, e.g. such as the Christchurch as an alternative or to be used with the red zone. existing market rent review process. The repair and maintenance clauses have CPI clauses are commonly accepted, been modified with mixed effect. Case creating some rental growth in an law had made clear that tenants were objective manner, avoiding potential not responsible for inherent defects. disputes about what the market rent However the lease now states the tenant is. Tenants should be wary of CPI rent pays (through outgoings) for any repair review clauses which lock-in inflation carried out on inherent defects as well based growth. Particularly for longer as renewal or replacement of building leases tenants should consider a cap on services. The landlord now must pay CPI increases and/or market testing of to keep the premises weatherproof. the rent. Improvements rent has been removed
– no one really used this. The landlord keeps the right to terminate if a change in law means significant works are required e.g. this might include earthquake strengthening. The parties have an option to attach a condition statement to the lease. The purpose is to show the condition of the premises at lease commencement so that it is clear during the term and on expiry what the parties’ obligations are.
The condition statement could simply be photos taken of the premises as at the commencement so it need not be a significant expense. Where a lease has been assigned the ADLS lease now recognises that the new tenant can offer a bank guarantee instead of a personal guarantee. Typically the bank will charge a fee to provide a guarantee and will obtain security from the tenant. From a new
tenants point of view this could however be seen as a preferred option. There are a number of other changes which we will be discussing on our website www.alexanderdorrington.co.nz/ news over coming months. If you are involved in commercial leasing ensure you know which form you are using. We still see 3rd, 4th and 5th edition leases in practice and now there will be the 6th as well.
Lawyers who are property experts From straight forward conveyancing through to complicated leasing and major property development projects, we have the expertise to help you.
Thinking of bidding at auction? Get a pre-purchase check. Order online and receive a report within 24 hours. www.alexanderdorrington.co.nz Level 8 Forsyth Barr Tower, 55-65 Shortland Street, Auckland, Ph 375 2770
Contact Carole Pedder on
[email protected] 09 376 8864 for more information 24-26 Pollen St, Ponsonby | Ph 376 8860 | www.wt.co.nz
Current to December 12th, 2012 / look /
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