Upload
others
View
3
Download
0
Embed Size (px)
Citation preview
© 2011, MYOB Limited, all rights reserved
MYOB Business Monitor Special Report Canterbury Business Performance, Pressures & 2012 Outlook
1 November 2011 | Westpac Business Hub, Christchurch
© 2011, MYOB Limited, all rights reserved
Discussion areas
The make-up and “real motivations” of CHC businesses
MYOB Business Monitor | Key Insights – Business revenue growth in Canterbury
– Cantabrian business confidence
– Key Business Pressures
– Christchurch business voting & policy preferences
Business goals & plans for 2012 – Local & national
© 2011, MYOB Limited, all rights reserved
MYOB Business Monitor
MYOB Business Monitor |The voice of NZ business owners
Bi-annual survey 1000+ businesses, 0-200 employees Performance based: revenue & profit levels, cash flow, sales pipeline AU and NZ focus 128 Canterbury businesses surveyed (12.7% of sample)
© 2011, MYOB Limited, all rights reserved
The 3 Kiwi business owner profiles | NZ average
Lifestyle Seeker
48%
Business Builder
36%
Passionate Pursuer
17%
© 2011, MYOB Limited, all rights reserved
Cantabrian Business Owner Profiles
Lifestyle Seeker
45%
Business Builder
40%
Passionate Pursuer
14%
© 2011, MYOB Limited, all rights reserved
MYOB Business Monitor | Insight Summary
Slow, steady economic recovery. Confidence up on April 2011
— Sole trader confidence contracting
Annualised revenue growth highest levels since April 2010
Modest improvement in Q4 sales pipeline forecasts. Up 2% on Q2
Key pressures | fuel prices, pricing margins/profitability & interest rates
32% of businesses “online”
CHC business confidence in the economy almost halved in 12 months – but in line with NZ average
Significantly more revenue decreases than increases in the last year.
Significant improvement in Q4 sales pipeline vs Q4 2010. Up 10%
Key pressures | interest rates & competitive pressures, fuel prices
36% of businesses “online”
New Zealand Canterbury
© 2011, MYOB Limited, all rights reserved
How did business revenues cope during the year (Oct 2010 – Sept 2011)?
© 2011, MYOB Limited, all rights reserved
Business Revenue vs last year | Size Still more “decreases” than “increases”. Large business buoyant.
42%
30%
34%
28%
19%
29%
30%
24%
31%
31%
32%
38%
41%
31%
MEDIUM (20-199)
SMALL (5-19)
MICRO (1-4)
SOLE (0)
AU TOTAL
CHRISTCHURCH
NZ TOTAL
Increases Decreases
© 2011, MYOB Limited, all rights reserved
Business Revenue vs last year | Size Rural and very small employers performed best
15%
18%
27%
29%
31%
34%
39%
46%
47%
45%
48%
10%
44%
0%
44%
31%
42%
19%
CHC SME
CHC Suburban
CHC Startups
CHC Sole
CHC Medium *
CHC City
CHC Micro
CHC 2-5yrs
CHC Rural
Increases Decreases* Very small sample size
© 2011, MYOB Limited, all rights reserved
Business Revenue vs last year | Region Provincial NZ performing well. CHC beats WEL
31%
27%
29%
30%
19%
30%
28%
31%
41%
32%
38%
31%
Rest of NZ
Wellington
Christchurch
Auckland
AU Total
NZ Total
Increases Decreases
© 2011, MYOB Limited, all rights reserved
87%
41%
24%
28%
7%
13%
25%
0%
13%
35%
41%
57%
63%
75%
Agriculture, Forestry & Fishing
Construction & Trades
Finance & Insurance
Professional & Business Services
Manufacturing
Retail & Hospitality
Transport & Warehousing
More than usual Less than usual
CHC Business Revenue vs last year | Sector CHC Transport, Retail & Manufacturing hardest hit
NB: Small sample sizes
© 2011, MYOB Limited, all rights reserved
When do Kiwi & CHC business owners think the economy will improve?
© 2011, MYOB Limited, all rights reserved
When will the economy improve? Majority expect full recovery is more than 12 months away
3%
6%
16%
27%
19%
22%
7%
< 3 month
3-6 months
6-12 months
12-18 months
18-24 months
> 24 months
Don't know
© 2011, MYOB Limited, all rights reserved
Expectation of economic improvement in 12 mths.
Majority expect full recovery is more than 12 months away
REST OF NZ
CHRISTCHURCH
WELLINGTON
AUCKLAND
(AUSTRALIA)
NZ TOTAL
Sep 11 Apr11 Nov10 Apr10 Nov09
25% 23% 37% 49% 55% .
21% 35% 47% 54% 58%
28% 28% 39% 49% 61%
30% 19% 38% 57% 50%
.;
25% N/M 42% 39% 55%
.
22% 21% 32% 49% 50%
`
© 2011, MYOB Limited, all rights reserved
More confidence (< 12 mths)
Micro Businesses (1-4 FTEs)
CHC suburban based businesses
CHC businesses with rev between $75 - $199k
Businesses between 2-5 yrs & 10+ years old
CHC retail & hospitality sectors
Businesses banking with Westpac
Less confident (> 12 mths)
Women in business
Small businesses (5-19 FTEs)
CHC city based businesses
Agricultural & Manufacturing sectors
Construction & Transport sectors
When will the CHC economy improve?
© 2011, MYOB Limited, all rights reserved
How much work do NZ & CHC businesses have on in Q4, 2011?
© 2011, MYOB Limited, all rights reserved
Projected sales in Q4 pipeline for 2011 | Size CHC leads the way (again ).
50%
44%
35%
30%
29%
35%
33%
14%
16%
19%
23%
30%
19%
21%
MEDIUM (20-…
SMALL (5-19)
MICRO (1-4)
SOLE (0)
AU Total
CHRISTCHURCH
NZ Total
More than usual Less than usual
© 2011, MYOB Limited, all rights reserved
Projected sales in Q4 pipeline for 2011 | Region Wellington less buoyant.
29%
31%
32%
33%
33%
35%
21%
23%
21%
21%
21%
19%
Australia
Rest of NZ
Wellington
Auckland
New Zealand
Christchurch
More than usual Less than usual
© 2011, MYOB Limited, all rights reserved
Projected sales in Q4 pipeline for 2011 | Sector Smaller CHC businesses & “Online” businesses perform best
31%
31%
32%
36%
37%
37%
37%
39%
39%
41%
43%
43%
46%
15%
18%
20%
15%
18%
19%
26%
24%
17%
23%
25%
9%
25%
CHC "offline"
CHC sole trader
CHC city
CHC rural
CHC Micro
CHC suburban
CHC Retail
CHC Construction
CHC Westpac clients
CHC Manufacturing
CHC "online"
CHC MYOB clients
CHC Small
More than usual Less than usual
© 2011, MYOB Limited, all rights reserved
What revenues are expected this coming year (Sept 11 – Aug 12)?
© 2011, MYOB Limited, all rights reserved
Expected business revenues in 2012 | Region WEL & CHC most confident regions
32%
37%
41%
41%
46%
49%
20%
15%
11%
13%
6%
16%
Australia
Rest of NZ
Auckland
New Zealand
Christchurch
Wellington
Increases Decreases
© 2011, MYOB Limited, all rights reserved
Expected business revenues in 2012 | Size Very small CHC employers driving 2012 growth
27%
39%
41%
41%
42%
43%
51%
54%
56%
56%
60%
61%
61%
69%
71%
3%
12%
7%
5%
2%
9%
1%
12%
8%
4%
5%
15%
7%
0%
0%
CHC business women
CHC Small
CHC sole trader
CHC rural
CHC suburban
CHC "offline"
CHC "online"
CHC city
CHC business men
CHC MYOB clients
CHC Westpac clients
CHC Retail
CHC Manufacturing
CHC Micro
CHC Construction
Increases Decreases
© 2011, MYOB Limited, all rights reserved
More Growth
CHC “online” businesses
MYOB’s CHC based clients
Westpac’s CHC based clients
Construction, Manufacturing & Retail sectors
CHC micro businesses (1-4 FTEs)
CHC city based businesses
Less Growth
Women in business (v significant)
CHC small business (5-19 FTEs)
CHC sole traders
CHC suburban based businesses
CHC rural based businesses
CHC “offline” businesses
Expected business revenues in 2012
© 2011, MYOB Limited, all rights reserved
Effect of the Canterbury earthquake on business revenues
© 2011, MYOB Limited, all rights reserved
More affected
Business owners < 40 yrs (53%)
Female business owners (52%)
Larger businesses (59%)
Businesses in AKL (54%)
Retail sector ( 61%)
Manufacturers (65%)
Less affected
Businesses in provincial North Island
Rural businesses
50% of businesses expect an effect on
revenues over coming year due to earthquake
© 2011, MYOB Limited, all rights reserved
What’s putting Kiwi businesses under the most pressure at the moment?
© 2011, MYOB Limited, all rights reserved
25%
23%
35%
23%
26%
20%
24%
18%
15%
19%
15%
28%
25%
24%
22%
21%
20%
18%
17%
15%
11%
9%
Interest Rates
Competitive Activity
Fuel Prices
Cash Flow
Price Margins & Profitability
Other (than staff) business costs
Attracting new customers
Business finance / funding / overdrafts
Marketing & Customer Relationships
Exchange Rates
Timing of customer payments
NZ Average CHC
Main pressures on businesses this year In CHC: Interest rates, competition, fuel pricing & cash flow
© 2011, MYOB Limited, all rights reserved
Interest Rates – Business owners over 40 yrs
– Micro Business (1-4 FTE)
– CHC City based business
– CHC “Offline” business
– Professional Services, Transport & Retails sectors
Price Margins | Profitability – Business owners over 40 years
– Larger CHC employers (5+ FTEs)
– Manufacturing & Agriculture Sectors
Competitive Activity – All CHC based employers (v sig.)
– CHC “online” businesses
– Construction, Retail and Manufacturing sectors
Cash flow – Business owners under 40 yrs
– CHC business women
– All CHC based employers (v sig.)
– CHC “offline” businesses
– Construction, Retail, Manufacturing & Agriculture sectors
Main Pressures | Key Highlights
© 2011, MYOB Limited, all rights reserved
What are the main objectives for businesses this year?
© 2011, MYOB Limited, all rights reserved
Increase customers & revenue, 52%
Maintain customers & revenue, 29%
Minimise losses, 10%
Unsure, 10%
Main Business Objectives for 2011 Most NZ business see GROWTH as their primary objective. Up 4% since April 2011
Stronger Growth preferences
from:
– Men
– Business owners under 40
– Start-up businesses
– All employers (esp. < 19 FTEs)
– Retail, Manufacturing, Construction and Finance & Insurance sectors
– “Online” businesses
© 2011, MYOB Limited, all rights reserved
Increase customers & revenue, 51% Maintain
customers & revenue, 27%
Minimise losses, 10%
Unsure, 13%
Main Business Objectives for 2011 Most CHC businesses see GROWTH as their primary objective (But growth down 7% in 12 months, maintenance up 9% - Nov 2010)
Stronger Growth preferences
from:
– Men
– Business owners under 40
– Start-up businesses
– All employers (esp. < 19 FTEs)
– Professional services, Finance & Insurance, Construction Sectors
– CHC “Online” businesses
© 2011, MYOB Limited, all rights reserved
Specific Canterbury based Business strategies & plans for 2012
© 2011, MYOB Limited, all rights reserved
Planned CHC business initiatives for 2012 CHC business all about growth
20%
22%
27%
28%
30%
31%
32%
39%
40%
2%
6%
0%
2%
2%
2%
3%
1%
0%
Sales promotional activity
Marketing & advertisingoffline
The sale of products /services online
Offer new products &services
The sales of products /services offline
New market activity
Marketing & advertisingonline
Customer acquisitionstrategies
Customer retentionstrategies
Increase Decrease
© 2011, MYOB Limited, all rights reserved
Planned CHC business initiatives for 2012 CHC in line with NZ average
11%
16%
17%
17%
19%
21%
26%
2%
3%
1%
4%
2%
2%
1%
Full time staff
Staff coaching & Training
Part time staff
Applications for businessfinance
Staff Salaries & Wages
Working with a businessadviser
Investment in IT systems &processes
Increase Decrease
© 2011, MYOB Limited, all rights reserved
CHC Business & Political Preferences
© 2011, MYOB Limited, all rights reserved
Region Satisfied Dissatisfied
Wellington 21% 27%
Manawatu-Wanganui 13% 20%
Christchurch 15% 38%
Otago & Southland 10% 38%
Auckland 9% 43%
Bay of Plenty 6% 40%
Taranaki 13% 48%
Northland 11% 47%
Hawke’s Bay 6% 45%
Waikato 8% 48%
Local Govt Performance: Business satisfaction
© 2011, MYOB Limited, all rights reserved
0%
1%
1%
4%
5%
13%
20%
56%
Mana Party
Maori Party
NZ First Party
Green Party
ACT Party
Labour Party
Dont know at…
National Party
Political Party Preferences | CHC Businesses “Based on the party that would best support businesses like you,
which party gets your vote…”
© 2011, MYOB Limited, all rights reserved
1%
1%
1%
2%
2%
3%
7%
14%
69%
Tariana Turia
Metiria Turei
Dr Pita Sharples
Russell Norman
Hone Harawira
Don Brash
Other
Winston Peters
Phil Goff
Dont Know
John Key
Prime Minister Preferences | CHC Businesses Based on your own personal preference, which of the following
individuals would be your preferred Prime Minister in NZ…?
© 2011, MYOB Limited, all rights reserved
Initiatives & Policies important to Businesses Red tape reductions before tax cuts. Team well-being impt.
45%
47%
53%
53%
57%
61%
76%
18%
12%
9%
21%
6%
4%
3%
The creation of a single flat tax for personal tax &company tax
Mondayising public holidays that fall on aweekend
A “buy Kiwi made” policy for all central & local govt procurement where possible
The removal of GST on selected 'essential' goods& services (eg: fresh food, & doctors' visits).
More govt investment in transport infrastructurein our major cities
Increased govt funding for innovation, R&D byNZ businesses
Simplify Provisional tax processes
Vote For Vote Against
© 2011, MYOB Limited, all rights reserved
Policies least popular with Businesses Carbon & Capital Gains Taxes more unpopular than Asset Sales.
39%
41%
22%
29%
21%
10%
22%
24%
27%
38%
58%
62%
The introduction of a compulsory Kiwisaver forall NZ employees
The creation of a common currency & economiczone with Australia
More govt intervention in the value of the NZdollar
The partial sale of State Assets
The introduction of a capital gains tax
Introduction of a carbon tax
Vote For Vote Against
© 2011, MYOB Limited, all rights reserved
The proof behind “working smarter not harder”…
© 2011, MYOB Limited, all rights reserved
Early Adopter
18%
Mid Adopter
45%
Late Adopter
37%
Has Website
32%
No Website 68%
NZ Businesses are NOT early adopters of technology: CHC leads the way with 36% of businesses having websites
© 2011, MYOB Limited, all rights reserved
29%
28%
26%
28%
29%
31%
34%
32%
EARLY Adopters
MID Adopters
LATE Adopters
NZ Total
Increases Decreases
Business Revenue vs. last year Early adopters of technology generate higher revenues
© 2011, MYOB Limited, all rights reserved
CHC “Online Businesses” performed best in last 12 months.
– Revenue increased: 46% vs. 38%
CHC “Online Businesses” predict more revenue growth in 2012.
– Revenue increases: 51% vs. 43%
Q4 Sales pipeline higher for CHC “Online Businesses”.
– More work on: 43% vs. 31%
Businesses “Online” have higher revenues & are more confident.
© 2011, MYOB Limited, all rights reserved
20%
30%
40%
50%
60%
70%
80%
90%
100%
% of Businesses with a website | By Country Australia & NZ in bottom of OECD countries...
© 2011, MYOB Limited, all rights reserved
Where should business advisers focus their attention in Canterbury?
© 2011, MYOB Limited, all rights reserved
The key business pain your clients have now…
Cash flow
Pricing & profit Margins
Customer Acquisition
Interest Rates
Business financing / banking advice
Where businesses are looking for help…
Improved procurement processes
Access to an affordable business mentor
Improved bookkeeping/accounting systems
Improved banking / financing facilities
The KEY services an Adviser should provide…
© 2011, MYOB Limited, all rights reserved
What’s the #1 thing we can do to help CHC business recover & thrive…
© 2011, MYOB Limited, all rights reserved
“Make CHC the most online
business community in the
world…”
Get 20,500 businesses online...
© 2011, MYOB Limited, all rights reserved
MYOB serves 1 million businesses in Australia & New Zealand
• MYOB develops & delivers business solutions, service and support to around 150,000 Kiwi businesses 2,400+ accounting practices.
• 28,000+ businesses subscribe to our “cloud” solutions in Australia & NZ
• MYOB solutions pay over 25% of NZ’s workforce
• Around 60% of the NZ govt’s GST & PAYE revenue is facilitated by MYOB
• 2m+ tax returns are e-filed in NZ using an MYOB product each year
• MYOB is investing NZD$90m in online R&D in NZ & Australia over next 3 years
© 2011, MYOB Limited, all rights reserved
Questions?
© 2011, MYOB Limited, all rights reserved
For a copy of the slide desk SMS your email address to:
021 77 33 44 or
© 2011, MYOB Limited, all rights reserved
Additional Information:
All MYOB Business Monitor Reports can be found online:
– www.myob.co.nz | about us | industry research
For additional information, including advanced business segmentation analysis, contact:
– Samantha Goodwin