The forecast isn’t the best. So what can we do to prepare for 2023?
It's fair to say that many businesses, and Kiwis in general, are viewing this year with a little trepidation.
When the Reserve Bank Governor Adrian Orr told Kiwis in late November to have a “wonderful and sensibly-spending Christmas” they were tough words for those businesses already impacted by the turbulence of three Covid-affected years.
Orr’s key message was that controlling inflation required a reduction in spending levels, with a recession forecast to begin mid-2023 and stretch on into 2024. It’s hard not to get drawn into the doom and gloom. So how can we prepare for, and succeed, in uncertain times?
At Apogee Legal we work with a range of fantastic businesses. Here are some of the steps we‘ll be recommending to help our clients come out the other side of 2023 in a strong position.
1. Reach out to your professional advisors
Take time out from working “in” your business to work “on” it with someone who can take an outside view. Schedule a meeting with your accountant, your lawyer, your bank relationship manager, your insurance advisor. These are people that know you, know your business and want to help it succeed. From a legal perspective, taking a big picture view of your situation means we can ensure your personal and business assets are correctly structured and protected, and that your documentation is fit for purpose and supporting the goals of your business. If you’d like to discuss your options, please don’t hesitate to contact our team.
2. Check your Terms of Trade
Your Terms of Trade is an important document for maintaining a healthy financial position. This is a legal contract between you and your customers or clients which sets out each party’s rights and obligations when a customer uses your service or product. It can include payment terms, warranties/guarantees, extent of liability, and how any disputes will be handled.
3. Do a stocktake of your key documents
One thing we highly recommend to our business clients is to do a regular stocktake and review of their key legal documents such as commercial leases, supplier and contractor agreements, and other contracts. It’s important to ensure each document reflects your goals and current position, and are set up to best protect you and your business from bad debts or other financial pitfalls.
4. Review your structure
This could be a good time to check whether your business structure and ownership of assets is right for your stage in life and business. Is there sufficient protection for your personal assets? Does the structure of your business position it for growth or a future sale?
5. Don’t go it alone
There’s always something to learn from the experiences of others. Take the opportunity to connect with other like-minded businesses. It could be joining a Facebook Group, subscribing to industry newsletters, attending a conference, trade show, workshop, or finding a business mentor. Locally the Eastern Bay Chamber of Commerce offers opportunities to connect with our own business community every month through events like Lunch and Learn, Business After 5 or Women In Business.
Get in touch with us.
At Apogee Legal, we’re here to help you reach your personal and business goals - whatever they might be. If you’d like to discuss how best to protect, prepare or build your business in 2023, please get in touch with our experienced team.