Whangarei Accountants - Elevate CA - Tax, Xero, Business Development, Accounting

Whangarei Accountants serving Northland, Auckland and Whangarei Loving what we do: bringing fresh energy and innovative thinking to your business! Phone 09 430 0910.

Taking Great NZ Health Ideas to the World

New Zealand is a hotbed of innovation.  We have all heard that before.  The number 8 fecing wore mentality, punching above our weight in all sorts of areas from winning yacht design through to dairy farming techniques.   But why is it that this innovation translates into so few world beating businesses?

Numerous studies have been done on this question, and one of the factors which repeats itself is the lack of specific skills in taking these fantastic innovations to the world.  New Zealand Trade & Enterprise is well aware of this, and they have identified the Health sector as one area where we are rich in innovation but poor in taking these innovations global.

Hence the NZ Focus on Health innitiative, designed to take great Kiwi health ideas to the world – particularly the lucrative US market where annual health spend is a staggering US$2 Trillion.

Participants submit their health innovation ideas in the form of a robust executive summary – and will compete for $750,000 in prizes designed to help commercialise your great health related idea in the US market.

Up to Twenty semi-finalists will be selected by the Judges. The semi-finalists will be able to attend a “pitch” training workshop to prepare the semi-finalists for pitching their ideas to the Judges in Round Two.

If you operate in the health space, entering this competition really is a no-brainer. Our very own BrightMind LABS from Tutukaka will be there competing for the action, and we would encourage others to join us in getting involved. Entries close on 31 August. Check it out , and watch this space where we’ll keep you posted on progress.

Fraser Hurrell is one of three directors of Elevate CA Limited, Chartered Accountants & Business Advisors in Whangarei, New Zealand.

$1 Million Challenge

We have all heard the rhetoric time and time again.  As a nation, New Zealand lives beyond its means.  We spend more than we earn internationally, with the difference being funded by borrowings from rich foreigners.  It’s unsustainable – a bit like putting holidays and cars on the mortgage year in and year out.  Our booms in the past have been built on domestic consumption more than export earnings.  We have been hearing this for years.

But what’s to be done?  Elevate CA are very interested in the answers to this question, and this is a theme that will repeat in this blog over time.

So we are excited by the University of Auckland Business School Entrepreneurs’ Challenge which will provide finance to eligible growth oriented SMEs that are seeking funding for business growth – preferably internationally. Up to one million dollars annually will be made available for investment.  Entries close on 21 August, and the Challenge is open to GST registered NZ businesses that have a turnover of at least $1m per annum and have been in operation for at least two years.  Preferably they will be exporting or planning to export.  We will be encouraging our clients and others in this category to enter and get involved in this Challenge!  Check it out at http://www.entrepreneurschallenge.co.nz

This is an exciting offering from the Business School, and we’ll be watching this closely – and commenting here.  Watch this space.

Fraser Hurrell is one of three directors of Elevate CA Limited, Chartered Accountants & Business Advisors in Whangarei, New Zealand.

Lessons from MySpace

Silicon Valley is a long way from Whangarei, but there are certainly lessons to be learned from that hotbed of innovation.  The MySpace story demonstrates that dominance today doesn’t necessarily translate into success tomorrow.  Who remembers MySpace, the company destined for stardom that Rupert Murdoch purchased for US$580 million not so long ago?  Who now has a MySpace account?  And for those who do, who regularly uses it?  Exactly.

Now ask the same question of relative newcomers FaceBook, YouTube or Twitter?  The answer is very different – see my point.

Who could have forseen that MySpace would have been so unceremoneously dumped by tens of millions of users defecting to FaceBook, YouTube and Twitter?

What went wrong for MySpace?  Of course, there would have been an element of fickle consumers chasing the latest cool application.  But really it boils down to MySpace’s failure to remain relevant to its massive user base while the new competitors emerged with offerings that more exactly met those user’s needs.

So what?  Here we are in New Zealand – and a Kiwi venture is unlikely to emerge as the next Twitter, right?  Well that probably is true, but there are broader lessons which are encouraging for startups everywhere.  Even where there are encumbants who dominate your industry and appear to have a stranglehold on the market, there are likely to be opportunities for a disruptive newcomer who is prepared to listen to what the market actually needs and to tailor their offerings exactly to that need.

I would even argue that the more dominant and comfortable the existing players are, the greater the opportunity to enter the market and fill a niche that is currently being underserviced or ignored.

So how do you identify the opportunities?  Simple.  Talk to the market.  Make phonecalls, knock on doors, attend functions.  Talk to everyone you possibly can in that market and ask the questions.  What keeps them awake at night?  What are their frustrations with the current products or services on offer?  What could the incumbents do better or differently?  What might motivate them to change to a new product or service that better meets their needs?  What barriers might prevent them from changing suppliers?  Talk to hundreds of people if you can – before you spend a cent on developing your new offering.  Even if you THINK you know the industry inside out, the answers will probably surprise you.

Armed with this intelligence, you will be in a great position to plan an offering that will disrupt the comfortable dominant players.  And once you have planned your offering, talk to the market again.  Would they buy?  How much would they pay?  What’s wrong with your planned offering?

If you follow this process, with rigour, you’ll have a very good idea of whether you can successfully roll out an offering that will disrupt the “MySpace” which dominates your industry.

Fraser Hurrell is one of three directors of Elevate CA Limited, Chartered Accountants & Business Advisors in Whangarei, New Zealand.