Author Archives: Damon Harvey

About Damon Harvey

Damon is the editor and publisher of The Profit. Damon has over 20 years experience as a journalist, content developer, marketer and public relations specialist. Damon is a huge advocate for Hawke's Bay businesses and The Profit was created as a platform to celebrate HB businesses and business people. Damon is also a director of Attn! marketing pr - www.attn.co.nz alongside wife Anna Lorck. He is also a Hastings District Councillor and chairman of Sport Hawke's Bay. In his spare time he loves surfing, mountain biking, crossfit and spending time with his family, which includes five girls! If you've got a great story contact Damon on 021 2886 772 or damon@theprofit.co.nz

Power change for Unison

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After 21 years leading the charge at Unison, Ken Sutherland is stepping down. As Ken looks to flick the switch off as chief executive of one of Hawke’s Bay’s largest companies, he took time out to reflect on what has been an incredibly successful tenure, building the community-owned business from a turnover of $33 million in 2002 to a turnover of $314 million in 2021/2022.

Ken initially planned to continue in the role until the company’s centenary celebrations in 2024 but has opted to call it a day after the next annual general meeting in July 2023. Unison started as the Hawke’s Bay Electric Power Board in 1924 and up until the early 2000s, the company was an electricity retailer as well as the network service provider.

When Ken came on board in 2002, the company was reinventing itself and starting to look for new ways of growth, following the government-regulated change that one company could not distribute and retail electricity. “The company was quite small back then, having just gone through the separation of retail and network. We had a small workforce that did faults repair, and we had contractors on the network providing capital construction for the business.”

The growth of the business commenced with being awarded a management service contract of Central Hawke’s Bay lines company Centralines Limited in October 2002, quickly followed
by acquiring the Taupo and Rotorua electricity distribution assets of United Networks Limited and Vector Limited.

The expansion out of Hawke’s Bay led to a change of name to Unison Networks Limited (trading as Unison) in 2003, becoming the fourth-largest electricity lines company in New Zealand.

“I think the board got me in to grow the business, and I had only just got my feet under the desk when the opportunity came about with Taupo and Rotorua, and that basically rewrote the strategy for the business going forward.”

By 2007, Ken had restructured the business, creating Unison Contracting Services, which would offer power, civil and vegetation services to its parent company, and then picking up a similar contract for services with Dunedin energy provider Aurora.

As Ken sits in his expansive office on the second floor of Unison’s headquarters in Omahu Road, he is quick to point out that it’s been a team effort, starting with a strong performing board well led by four chairs over his time – Forrie Miller, Bryan Martin, Kevin Atkinson and current chair Phil Hocquard – and some talented senior managers.

As well as Unison Contracting Services, Unison Group’s subsidiaries include fibre network business UnisonFibre; ETEL, which is New Zealand’s largest transformer manufacturing company specialising in the design and manufacture of distribution transformers; and specialist high-voltage business PBA Limited, which Unison bought in March 2022 from Australian owners. Unison Group now employs more than 1,000 people and has assets of $1 billion. “My view is there is a bit of a jigsaw puzzle you are trying to solve, and so a number of our acquisitions in recent times were the missing pieces that added to the capability of the entire group.

“We look to opportunities that run alongside what we do as a network business, so if it is relating to equipment or services that are related to electricity and networks, then we have an interest in those opportunities.

“Acquiring businesses has also developed and grown our talent and I take a lot of pride in the people we have working at Unison. I think we have a brilliant team and what distinguishes us from other lines businesses is actually our people, not the assets, and how we go about running the business.”

Ken says it has always been important to embrace the constant evolution within the energy sector, the most recent being sustainability and New Zealand’s transition to a zero-carbon future.

“Unison has a role to play in helping the country’s transition to a zero-carbon future in areas such as transport, industrial heating and housing.

“People still need energy to power their lives but how they get that energy and what they use it for is rapidly changing,” Ken says, pointing to the technologies of smart grid, solar, battery and electric vehicles.

“When we acquired ETEL it was at a time when we were looking at the transformation of the electricity network and we initiated a smart grid strategy, which was the beginning of moving the business away from a reactive way of asset management to a more predictive and dynamic asset management approach.

“We recognised we needed to have a smarter network to deal with the changes in use of an electricity network; this was a turning point for us and put as at the forefront of electricity networks in New Zealand, if not in Australasia.”

Being at the leading edge of sector innovations has brought with it a range of industry accolades – the most recent being in the sustainability space when Unison won the 2022 Low-Carbon Future Award at the New Zealand Energy Excellence Awards for its pioneering sustainability work on the recently operational Windsor Substation in Hastings.

As Ken prepares to hand over the reins, he says most Hawke’s Bay residents still think the company simply provides a service that “keeps their lights on” as well as returns them an annual dividend via the Hawke’s Bay Power Consumers’ Trust.

Ken is looking forward to the next stage of his life, which will involve spending more time with wife Debra, their four children and fifteen grandchildren while also exploring governance roles locally and nationally.

“Debs and I have been talking about there being more to life than being a chief executive. Debs has enabled me to dedicate 21 years to the job and it is now time for us to spend time together and with our large family.”

Sandtmann more than an Ad man

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Kurt Sandtmann is the kind of guy you’d like to see win Celebrity Treasure Island. He’s resourceful, determined, driven and outdoorsy. He’s also people focussed, funny, and easy to chat to.

We sat down recently to chat with Kurt about buying and managing Hawke’s Bay based Marketing Agency Tracta, and how he manages his workload to make sure he doesn’t miss the good surfing days.

So Kurt, tell us a bit about Tracta, what is it?
A – There’s a lot of ways to describe what Tracta does, basically we are a Marketing Growth Agency. We specialise in Customer Strategy, Marketing, Digital, and Communications to help Agribusinesses grow and sustain a competitive advantage. I started working in the company in 2015 and in 2021 the opportunity came up to purchase it. It’s been a fun but wild ride!

How have you found your transition into an Owner Manager position?
Becoming an Owner Manager can be one of the hardest, yet rewarding positions you can ever have. The day you become an Owner Manager is the day you put a mirror up and see what you were like as an employee. It can be pretty confronting. There’s a huge realisation moment there where you reflect on previous roles, managers you’ve liked, and managers who’ve taught you how not to lead. I have however thoroughly enjoyed the transition and learned a lot about myself, management and leadership along the way.

What’s your professional background before Tracta?
I studied a commerce degree at University of Victoria in Wellington. I was working in hospitality to pay the bills, which led me to form a hospitality venture straight out of university. Through hospitality I met a few heavy hitters in the film industry so I then had a few fun years working on The Hobbit trilogy for Peter Jacksons production company, 3Foot7. I moved on to client-side marketing roles for a few years and before deciding to sell the hospitality business and complete my Masters degree. Since graduating I’ve worked in marketing agencies – almost 10 years now.

How would you describe yourself as a leader?
I’d call myself a democratic leader. I’m a big believer in the ‘Radical Candor’ leadership framework and like to create a candid but collaborative work environment. I want the people around me to be able to tell me when I’m off track, just as much as I tell them . We run a very flat management structure at Tracta, there’s no egos, we place a lot of trust in our staff and ensure they have opportunities to contribute to our future direction. This works well for our team and our business.

Do you have any advice for 20 year old Kurt?
Plenty! Firstly to enjoy the ride more. Business is an infinite game and we’re not great in New Zealand at celebrating wins along the way. Our humble nature does sometimes put us at risk of thinking we are never as successful as we should be and we need to be better. SME owners in particular need to be careful not to let this lead to them burning out. Secondly I wish I recognised that the path to success doesn’t always go a certain way. I wish I trusted my gut, put my neck out more and didn’t let people keep me on the beaten path
so much. If I’d known then what I know now about how to use mess-ups as learnings I would have taken more risks. I recently did a course with The Icehouse which really helped to cement this for me.

Tell us more about The Icehouse?
I can’t rate it more highly. It just a wonderfully practical way of learning how to form a solid business path, and how to actually put ideas into motion. The biggest benefit of the Icehouse is also the people you meet throughout the course. Many of them are in similar positions and facing similar challenges. For SME owners in particular it’s a great opportunity to form a lifelong support network that will set you up for success. My staff have definitely benefitted from what I learned, at the centre of everything we do now is people. If I can keep my staff happy, they can produce excellent results for our clients, keeping them happy. It’s not always easy, or simple but it always works.

What are the best and worst parts of being your own boss?
The Worst? The continual juggling the business, you in the business and your personal life – the mental pressure particularly can be immense. Most SME owners work in the business and on it simultaneously and this can get challenging. I laugh nowadays when people tell me that they want to be their own boss, many end up going back to employment. The Best? The real satisfaction for watching people grow, giving people a platform from which to succeed. The rush – you’re only as good as your last job, so while you try and harness the energy you get from a big win for a client, maintaining that is where you really start to win. This far outweighs the negatives for me.

How does the future look for Tracta and you?
Yeah it’s a funny question isn’t it. I don’t think anyone has the ability to predict much anymore. What I do know is that we’re pumped. We’ve just had six months of unprecedented growth. We’ve done some incredible work this year, we’re at the moment onboarding five new staff and it feels like we are hitting the stage internationally where people come to us if they need to compete in the Australasian agribusiness market. We have big international clients pop into our inbox. It’s great to know our reputation is spreading and I think if we continue the way we are going, then we’ll be in a really strong position to deliver great work for our clients no matter what the future holds.

Hawke’s Bay looks to attract successful innovators, investors and entrepreneurs

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Jasmine Herlt and Doug Steiner Hawke’s Bay is set to attract successful innovators, investors and entrepreneurs from around the world keen to contribute to local businesses and community initiatives as part of the world-leading Aotearoa INZ immigration programme, the Edmund Hillary Fellowship.

Hastings District Council took the lead role in developing a compelling proposition focused on technology, food and beverage and the environment for this programme. Hastings District Council economic development manager Lee Neville said it was important to have a focus on international innovators, investors and entrepreneurs that could support local businesses keen to “go global” or establish their own business in these sectors.

A key part of the presentation was a 45 minute video with introductions on Technology by David France, Food & Beverage by Nicky Solomon and the Environment by Dominic Salmon of 3R Group. Having watched the video presentation, Canadian technology innovator and entrepreneur Doug Steiner an EHF Fellow and wife Jasmine Herlt, a human rights lawyer, shortlisted Hawke’s Bay for a visit this past October.

Doug, speaking from Toronto, said the couple will return for a closer look at Hawke’s Bay in February before making a final decision later in the year on where to settle. On their first visit they also spent time in the other regions on their shortlist – Auckland, Tauranga, Wellington, Nelson and Christchurch.

Lee will set up visits with local businesses which could benefit from Doug and Jasmine’s involvement. Other Edmund Hillary Fellows who are preparing to make a significant contributions are also being encouraged to come to Hawke’s Bay. INZ offered a three year Global Impact Visa as part of the EHF programme between 2016 and 2020. Fellows contribute to communities and the economy in New Zealand can earn points to become permanent residents.

COVID19 restricted the entry of many of the Fellows until this year. On their initial 3 month visit to Aotearoa, the couple also spent time in the other regions on their shortlist – Auckland, Tauranga, Wellington, Nelson and Christchurch. Doug says the couple’s decision criteria included weather, air travel frequency to Auckland and Wellington for connecting flights back to Canada and specialist medical provisions, along with a desire to support indigenous economic and social enterprises. “We are coming to New Zealand with the specific purpose to contribute to the economy and society. We’ve both done considerable work in our home country, and decided it was time for a change. We now need to decide what area can we contribute the most, as well as feel comfortable and connected to the community we intend to serve. “

Doug has varied expertise based on his work in Canada and the US. He has started, run, and sold a number of technology businesses, and has consulted in the use of behavioural economics to change consumer and business stakeholder behaviour. He has also advised firms in finance, government, media and technology in optimisation of business models using technology and researched methods that enhance decision methodologies. Doug already sees opportunities in technology and creating efficiencies within businesses and local government in Hawke’s Bay.

“My last two years in Canada were spent during Covid helping local Government design and implement economic growth and innovation strategies both to attract capital investment and help make local government more efficient. “They have been innovative solutions for civic problems I’d like to try and introduce in places like Hawkes Bay; such as crowd-sourcing solutions Doug Steiner and offering prizes for innovation. These have been very successful are inexpensive and promote civic engagement from citizens.

“I’d like to know what the big problems are in Hastings or Napier that you are dealing with and are complicated to solve. This is what excites me and is the best use of my problem solving skills. And I’m not unique, I am only one of more 528 innovators, investors and entrepreneurs from over 50 countries that are committed to New Zealand as a base camp for global impact within the EHF Fellowship.”

EHF was initially designed in partnership with the Edmund Hillary Institute and the New Zealand Immigration as a test to attract world-changing innovators. The idea was to get Fellows and Kiwis to collectively work on solving pressing issues facing humanity. EHF’s strategy has been to find and build solutions to our toughest challenges. Its intention is that New Zealand inspires global leadership and solutions for future generations, built on principles of Tangata Tiriti and values of Sir Edmund Hillary.

This year (and during the second half of 2023), the EHF has welcomed almost half of the Fellowship into New Zealand after two years of Covid-linked border closure. EHF has a focus on climate action (including sustainable housing, renewable energy and cleantech solutions), regenerative agriculture and food, aerospace and future transportation, consumer software and ICT, investment and venture capital, film/media/storytelling, education and youth leadership, and Māori and Pasifika led initiatives.

“ I’m a tech entrepreneur, but other Fellows have expertise in almost every industry; aerospace, agtech, regenerative farming, artificial intelligence, public transport systems- even micro issues such as solving bike theft and mineral rights on the Moon.

“The EHF Fellowship has the deepest talent and most dedicated members of any community I’ve ever been involved in.” Already some outcomes from the EHF Fellowship activation include the creation of over 120 new registered ventures in NZ, and over 200 high value jobs in areas such as waste to value; renewable energy; clean transportation and climate education.

As of 2021, Fellows have invested over $21 million directly into at least 91 NZ businesses, addressing a high-risk capital gap, as well as helping raise  $239 million in capital for Kiwi businesses. and helping startups to grow globally with at least three new venture funds directed towards Kiwi startups. Alongside these investments, Fellows contributed over 5,000 pro bono hours in providing mentorship and entrepreneurial advice, global market connections/insights and attraction of early stage capital.

The EHF presentation video can be viewed at www.hastingsdc.govt.nz/economic-development/the-hastings-opportunity/article/2454/showcasing-hawkes-bay-to-global-change-makers

More information on EHF and the Fellows Directory can be viewed at ehf.org.

Born to lead – Bayden Barber has big aspirations for iwi

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Bayden Barber was born to lead but as just the second chair of Ngati Kahungunu in 26 years, he will need to draw on all his leadership skills to navigate the iwi and its people to prosperity. In 2022 Bayden beat incumbent chair Ngahiwi Tomoana to become chair of the iwi that represents 60,000 people, more than 100 marae and more than 100 hapū.

When he was a youngster, Bayden (eldest of four) says leadership was an expectation within his whānau – led by his kuia Haumiaha Te Whaiti – and drawn from his whakapapa, which included being a descendent of Waimarama high chief Tiakitai.

“My grandmother was very influential in my early days in terms of encouraging me to look after our whakapapa and our obligations to marae and hapū. “Leadership had been instilled in me for a long time but I didn’t really pay too much attention to it as I was still young but looking back, there’s always been that expectation of leadership.”

After going off to study a Bachelor of Management Studies and Postgraduate Diploma in Strategic Management at Waikato University, Bayden returned to Hawke’s Bay. A leadership role as chair of Waimarama Marae, which is situated below his family homestead, would be the first on his leadership journey that would see him being elected as a two-term councillor with Hastings District Council from 2017–2022. He only stepped down at the end of his second term due to time commitments with the iwi as well as some other directorships such as Beef and Lamb New Zealand, Health Hawke’s Bay and Te Taiwhenua o Heretaunga.

“I had been asked by our own people to consider standing in previous elections, so there was a desire from our own kaumatua for a change at the helm of the iwi. However, at that time I had just come on to the council and I had those responsibilities in front of me, so the timing wasn’t great, but it planted a seed within me to keep an eye on that space.”

Bayden says the mix of governance roles has helped shape his leadership style.

“Marae and hapū politics is a bit like being thrown into the fire at a young age. You have to put in the hard yards. I was chair of my marae for six years and that’s a pretty tough role.

“You add new skills to your kete along the journey and local government taught me good governance practices as well as a deeper knowledge of the big issues such as water and housing.

“You can’t just expect to walk into an iwi leadership role. To get elected, people want to see you have done other roles and that you are able to move the kaupapa forward.”

At the prior Ngati Kahungunu election in 2017 Ngahiwi stated it would be his last, but he changed his mind in 2022. Bayden admits that although it’s a bigger challenge taking on an incumbent, Ngahiwi’s change of mind opened up the debate and gave members the opportunity to listen to each candidate’s ideas and make a more informed choice. “I don’t think you should wait for someone to retire.

If you want to be iwi chair then you have to be willing to take on the incumbent and if you win, it’s because the people see you as the future.” Bayden is already making an impact, some of which has been forced upon him due to the poor financial performance of the iwi’s Asset Holdings Company, mostly associated with its fisheries entity Takitimu Seafoods. The company has been hit by two years of poor financial performance, posting a $6.8 million loss in 2020/21, which forced a restructure and the loss of 40 jobs along with the closure of its Hastings retail outlet. In 2021/22 a further loss of $5,558, 334 was reported.

Bayden has since led an overhaul of the Asset Holdings Company board, adding three new professional directors – Ratahi Cross, Mike Devonshire and Alex Guilleux – who join Bayden, Trevor Moeke as chair, Heather Skipworth and Barry Wilson to try and right the waka.

Bayden says it’s vital assets such as Takitimu Seafoods, residential property company K3 (which hopes to build 130 houses by the end of 2024) and Tautane Station (a 3,500-hectare sheep and beef farm it leases in Herbertville) perform so as to deliver on the iwi’s cultural, social and environmental aspirations.

“We want to make sure that Ngati Kahungunu is excelling across the four wellbeing pillars. For the iwi to be successful, our people need to be thriving, they need good jobs, a good home and a good education, and they need to be engaged in their whakapapa and te reo.

“The economic aspirations of our iwi will enable us to support the social and cultural aspects and we want to be able to use our profits to fund scholarships and welfare systems.”

Bayden’s pretty clear on what he’ll be judged on as iwi chair – the 130 new homes hoped to be built, $120,000 in tertiary scholarships and a better financial return from its investment portfolio.

“But it’s more than that: it’s how many of our marae have potable drinking water; how many in our communities are connected to three water services; and how many whānau we can support directly or indirectly through relationships with the likes of Kainga Ora to get them into affordable rentals or home ownership.”

Soon after the election Bayden initiated a closer working relationship with the local post-settlement entities and Te Taiwhenua o Heretaunga on government reforms such as Three Waters as well as discussions on wider opportunities. A first-ever retreat was held in July 2022 with more planned.

“They all have their own autonomy and economic base to grow and we understand that, but if we had a vision where we could all come together for the betterment of our people that would be huge. “If you look at how people are doing business today it’s about partnerships. Collectively, up and down Ngati Kahungunu, you are talking about half-a-billion to a billion dollars’ worth of assets and cash, including the iwi, Te Taiwhenua o Heretaunga and other entities, as well as collectively having a much stronger political influence.”

 

The right ingredients for business success comes from adversity

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Running a business can’t be as tough as losing both your parents before the age of 18 years and taking on the care of one of your younger sisters. Shaleah Lawrence has faced the toughest of times and says that although she expects challenges on her journey to creating a successful business, she has the mental toughness to go all the way.

Her drive is to financially provide for her two younger sisters, to buy them a house and then finally have the freedom to enjoy some of the things most young adults take for granted, such as “going to a music festival”. Shaleah’s journey to business success is now well underway after unanimously impressing the three judges at the second annual Innovate Hawke’s Bay (a business accelerator programme), along with potential investors and business mentors, with her brand of natural skincare products, Earthwoven, inspired by her own skin conditions. The mature 23-year-old has had the most unconventional and tragic upbringing.

She lost her father to a brain tumor when she was three years old and in her teens, she and her two siblings were taken out of the care of their mother, who was suffering from postpartum depression following the birth of a sister, which tragically spiralled into her taking her own life.

“I watched my mum’s life spiral downhill. She had been unwell for a long time and it wasn’t unexpected (her passing) but it was still a shock.

“I then lived with a family friend for a little while before a very nice couple gave me the chance to rent a house, where I was then able to look after my youngest sister.”

Shaleah also walked away from mainstream schooling, having been homeschooled by her mother from Year 5 then going on to attend Napier Community High School, which provided individual tailored education that she is forever grateful to the small team of teachers for. Personal tragedy, growing up fast, having an unconventional education as well as battling her own mental health have given Shaleah the confidence to know that she can take on anything that is thrown her way in business.

“It’s why I didn’t even stumble when it came to creating the business. There are many businesspeople who give up before they get to market and I think I haven’t because I have already gone through the hardest things in my life. Everything I do from now on and no matter how difficult it may seem, it won’t be the hardest thing I have gone through – that was losing my mum.

“I struggled a lot in my teenage years, and it wasn’t until I was 19 that I woke up one day and said to myself, if anyone is going to change this then it’s me – stop the pity party.

“You have just lost your mum so you have to get up now and make something of yourself. It has been a big journey but I have had incredible support from my therapist, she saved my life, as well as my nana, who never gave up on me.”

Working two jobs wasn’t going to create any financial freedom so Shaleah started thinking of business ideas; as a sufferer of dermatitis and other sensitive skin issues who always struggled  to find effective natural-based skincare products, she decided to make her own.

In 2020 Shaleah started to turn her life around, spending hours researching natural ingredients that when combined could rejuvenate and protect her skin.

“I couldn’t find any products on the market that were natural, and all my research found that most skincare products included sulphates and parabens, harsh chemicals that eventually soak into your skin. “I also couldn’t find any active ingredients that could get to the root of my problem. There are some big brands that market themselves as natural but when you look at their ingredients, they’re not.”

Shaleah partnered with Auckland-based Shieling Laboratories, an industry leader in creating personal care products, toiletries and candles, and in skincare and cosmetic manufacturing. “I partnered with a senior formulator and briefed her on my ingredient must-haves as well as the claims I wanted to go with my products.”

‘Natural’ or ‘earth-based’ was at the top of the list and having already done a lot of research, Shaleah had already narrowed it down.

“I knew what I was looking for and so we started from there, creating four-to-six samples to trial before I was happy with the final formulation.”

The next step was to add a natural fragrance to the products and this was achieved with the help of another company called Flairoma. Shaleah worked through the night developing the design of her packaging, sourcing a packaging manufacturer in China, and placing an order for 15,000 recyclable containers while also building an online retail website. At the same time, she was still dealing with the loss of her mother, who had instilled in her a hard work ethic and fierce determination.

“The last two-to-three years of trying to establish a business has played a big part in my healing journey and has involved plenty of self-discovery.

“I would not be where I am today without the business – the staying up until 4 am trying to learn Mandarin because I didn’t know my way around Alibaba, and then just having to get up in the morning and keep going. No one is going to do it for me, and I hate failure. I have no choice but to succeed; no one’s coming to save me. While I my have also lost friends and family in the process, I have grown in myself. “I worked hard to learn website coding and design on my own, purely because I am a small business with no cash flow.”

To seed fund the business Shaleah got a Work and Income grant, a bank business loan and some funding support from the Regional Business Partner Network – a Ministry of Business, Innovation and Enterprise fund.

“There was a bit of bootstrapping involved, funding the business through my wages, and my nana also helped.”

By the time she heard about Innovate Hawke’s Bay, Shaleah was already making a profit based on great production margins, made even better by placing such a large quantity packaging order to meet the quantity of her first three product lines – a foaming cleanser, a spritz toner and a hydrating moisturiser. She wasn’t confident in being shortlisted and getting support to prepare for the final Dragon’s Den-like pitch to the Innovate Hawke’s Bay judges, thinking the business was already too far advanced.

However, Innovate Hawke’s Bay programme director Hal Josephson quickly saw the potential in the business as well as the energy and commitment Shaleah had already put into getting her business off the ground. “Shaleah is full of energy and is even ‘batting cleanup’ as the phrase goes.

“She has done everything from her home and in her spare time. Up until just before the final pitch, she was still working part-time to supplement her income. “The fact that she already had so many customers and had put in so much time and effort, I wasn’t surprised that she went all the way,” says Hal.

The six finalists met each week at Hastings HIVE to build their ideas into a validated business with tailored support from local mentors.

They also had access to the full mentor pool of The Factory, a Palmerston North-based business accelerator company. Using lean start-up methodologies, finalists learned about intellectual property and protection, cash flow and budgeting, validation and, most importantly, what it’s like to be an entrepreneur. Head judge Luke Irving said there was no doubt that Shaleah was the overall winner, securing the $5,000 cash prize money and access to the Manawatu Investment Group (MIG), as well as continuing to build out her next phase plan with mentors from The Factory.

“Shaleah showed a perfect balance of true entrepreneurship with a proven product, a great understanding of product market fit and total customer empathy. “She is executing well and has clearly made some brilliant strategic decisions to get to where she is now, not to mention her age and energy.

She is one to watch and we can’t wait to support her and the other finalists’ exciting growth.”

With the win under her belt, Shaleah is now looking at adding new products to her range and deciding whether to partner with investors to scale up the business or go it alone.

“I want to get distribution into pharmacies and specialty stores, and I genuinely want to help people. The skin issues I went through weren’t cool, so I really understand the challenges and have empathy for those who also struggle with their skin.” As the business grows Shaleah wants to support new mothers who also suffer from postpartum depression? and encourage

 

New chair at Napier Port – Blair O’Keeffe

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Blair O’Keeffe has replaced Alasdair MacLeod as Napier Port chair. Alasdair was a board member since 2014 and at the helm for 8 years, playing a significant role in helping navigate the port through COVID-19 while at the same time undertaking a major new wharf project to create new shipping opportunities for local businesses. Blair, born and bred in Hawke’s Bay has a senior executive background including being a chief executive of a major port. He has other governance roles including fellow NZ listed company Z Energy.

What is your connection to Hawke’s Bay?
I grew up in Hawke’s Bay, going to school in Napier. I had a great childhood, long summers, the beach, sports, fishing (including around the port when that was allowed…they were different times). After school and polytechnic (now EIT), I left to go to university and then developed my career around New Zealand and then offshore.

After 25 years as a senior executive and CEO, I made the decision to develop my governance career and then had the freedom to choose where to live. Hawke’s Bay became an obvious choice. My wife and I were keen to give our young son the kind of lifestyle Hawke’s Bay offers and most of my family is still based here. We’ve been back for nearly seven years now and can’t imagine being anywhere else.

What’s your interpretation of good governance?
It starts with direction. Ensuring there is a clear and robust strategy, supported by a good plan, with the right people, resources and monitoring systems, to deliver it in a constantly changing world around us. Strong values and a culture of care for the people, stakeholders and shareholders of the business are essential. As is diversity of thinking at the board and executive table.

As a former CE of a port, how do you ensure not to blur the line between governance and management?I like to keep things simple. The CEO runs the company. The Board is there to ensure they are successful doing that. That requires a strong, open relationship between the Board and CEO, built on trust, collaboration and respect. Good CEO’s operate at their best when they are given the space to be accountable and grow, under leadership that is there to guide, motivate, develop and challenge them when needed to get the best outcomes.

What is your chair/leadership style?
As a Chair my role is to get the best out of the board and CEO in service of the long-term performance of the business. I like to promote open and inclusive dialogue that leads to alignment of purpose and decisive action. Being a values-based leader, I take the reputation of the business and its people very seriously.

Who/what has been a big influence on your career?

There’s a Benjamin Franklin quote ‘An investment in knowledge pays the best interest’. I would say a willingness to learn from and connect with others has been the biggest influence on my career. I’ve been lucky enough to work around the world, in a number of industries, with some wonderfully interesting and talented people, including here in Hawke’s Bay, so I truly value different perspectives that arise from different people, cultures and industries and that there is always more to learn to get better at everything you do.

What can the port do more broadly to promote HB as a place to do business?
Napier Port plays a large part in Hawke’s Bay’s success and it is our day job to market the region to the world and the team is constantly working on this. We have recently invested $170m to add a new ‘gate’ to the world with our new Wharf and the team is busy promoting that to the international shipping lines. One thing we really need as a region is an integrated spatial plan for transport and infrastructure, industrial and productive land. Making sure our exporters, importers and transport operators have the tools, resources and frameworks to grow
(responsibly) and connect their cargo with the world whether by road, rail or sea. This is essential for the prosperity of the region and we have started some work supporting the five councils on advancing this.

What do you see as the issues that could impact on the port’s performance and what do you see as opportunities for growth at the port?
It looks likely that the economy may be a bit tougher in the short-term and that may impact on the region’s importers and exporters. Having said that, there is a lot of strength in our food and
fibre sectors in particular, which have continued to prove how durable they are. The growing world needs to eat and have shelter and our reginal primary sector excels at producing these commodities.  It’s great to see cruise return and that looks set to reach record levels. Our recent investments in wharf capacity and other infrastructure means we are well placed to serve the needs of the region and wider NZ, as some of the other ports struggle for capacity and look set to do so for some time. We’re now in a great position to release the pressure being felt across the supply chain, having the capacity to support further regional growth across container and bulk cargoes as well as growth in cruise. Overall, I am very optimistic about Napier Port’s ongoing performance.

What do you do in your spare time?
Like most people, I value spending time with family and friends. You’re likely to find me outdoors – I love tennis, the beach, mountain biking, doing work around the property and enjoying everything the region has to offer. I also enjoy travelling and seeing the wonders around us, both throughout New Zealand and internationally.

Apology – and correction

The headline of the print version of this article referred to Blair as the CEO, when I fact he is the chair. The CE is Todd Dawson. The Profit apologises to both Napier Port and our readers for the confusion and error. 

The 10 Biggest Mistakes of Selling a Business

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Selling a business is a totally different ball game from selling real estate according to Bayleys Business Broker, Rodger Howie.

 

While some business sales include bricks and mortar, others present tangible value from years of hard graft, building intellectual property, trading credentials and brand value from the ground up. Business owners have strong emotional attachments to their businesses because they have often sacrificed leisure time, relationships and ready money for future rewards. While passion is crucial to successfully growing a business,
it can also have downsides. Business owners need to put emotion aside and be aware of key pitfalls when selling up:

  1. Unrealistic business value.
    Emotional attachment can overinflate understanding of value. It is important to obtain a current market appraisal.
  2. Waiting too long before selling.
    Sell when the business is performing strongly as opposed to a forced sale due to external factors, like ill health.
  3. Thinking a business will sell straight away.
    If necessary, be prepared to play the long game and sit tight in order to get the right buyer.
  4. Being indispensable to the business is a mistake. Succession planning involves ensuring that the business can function well without the owner. How long can the business operate without the owner being there?
  5. Not seeking professional advice.
    Take advice from experienced accounting, legal, financial and business advisors.
  6. Not preparing the business for sale.
    Leverage good professional advice to examine the business objectively, from a buyer’s perspective. Engage a business sales advisor.
  7. Not processing all transactions through the business. Profit directly impacts the value of the business so it’s crucial to maximise all proof of profitability.
  8. No business plan, KPIs, or up-to-date financials.
    A lack of business structure undermines business value. Demonstrating that success was planned for rather than coincidental will pay off.
  9. Think ‘results’, not ‘opportunity’.
    Business value is based on historical results, not future opportunities.
  10. Emotion is an obstacle to a sale.
    Some owners think that they can sell a business on their own. We all know the term ‘false economy’. It’s particularly apt here – an experienced business broker brings business and marketing expertise, market knowledge, multiple buyers and ultimately the best price.

Recent portfolio of business sales

First Autoworks and RV
River Park Event Centre Hastings Laminate & Stone
Ash Ridge Wines and vineyards Mangatera Hotel and Bottle Store Hawke’s Bay Platform Hire Autopower Car Parts
Kolachi Eatery
Hertz Hawke’s Bay
Malo Restaurant
Browns Quality Lime

About Rodger

Hailing from Gisborne, Rodger is a former business owner with deep knowledge of sales, marketing and business administration. In 1999 Rodger started a waste collection company in central Auckland. Over 16 years he grew the business into a multi-million dollar company with 22 trucks, employing 60 staff. In 2015 Rodger sold the company and moved his young family to Hawke’s Bay. Since joining Bayleys Hawke’s Bay in 2016, Rodger has helped many business owners sell their businesses for the right price.

Start-up business leverages opportunities from the beginning

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Brothers Izaiah (25) and Shae Lange (33) (Ngāti Kahungunu) launched their Napier-based business TH!NK just over a year ago.

Izaiah had returned from playing cricket overseas because of the Covid-19 pandemic and the young entrepreneur saw an opportunity to start a business with his brother Shae, a talented tattoo artist providing the service and him managing the day-to-day operations of the business.

He explored options for upskilling and building his business skills and together they approached the Ministry of Social Development (MSD) to inquire what opportunities were available to them in the business start-up space.

MSD’s Flexi-Wage for Self-Employment product was identified as an option for the Langes. The process is thorough, recognising the investment of public funds and to ensure that businesses have the best chance of success. Locally the Flexi-Wage for Self-Employment was being under-utilised and strategically MSD wanted to see more Hawke’s Bay entrepreneurs access the funding, especially Māori. “One of the ways we could increase the number of Māori businesses completing the application process successfully was by working with providers who could provide culturally appropriate support for whānau.

One of those was Tipu Ake Tonu, through their Whanake Ake service,” says MSD’s Regional Commissioner Karen Bartlett.”

The Langes worked with Tipu Ake Tonu to access Flexi-Wage which provides a weekly income for 26 weeks as well as a grant; an agreed amount of capital funding based on the business plan applicants complete. Izaiah and Shae were able to secure their CBD premises through the grant and manage the start-up commitments and living costs with TH!NK, their tattoo and apparel
business being their main source of income.

It allowed us to focus on getting things off the ground straight away. We didn’t have to worry about wages or paying ourselves as we knew what was coming in. It 100 percent took the pressure off and allowed us to free flow,” explains Izaiah.

TH!NK has survived the tumult of the past year, after initially having to close just after opening due to Covid and theirs being a close contact business.

“Being open and staying open through a time like the last year and a half has been crazy. Our best business learning has been to persevere with what we know will work.”

Tattooing is a service that lends itself to social media marketing and word of mouth. There is often an emotional, sentimental, and expressive element to it and the brothers agree that there is no easily definable demographic that uses their services. They quickly included the addition of lifestyle apparel brands to their offering to diversify and complement their key product- Shae’s art and his ability to interpret what the customer wants.

They are excited about the next offering they are looking at bringing to market, tattoo removal. While it may seem ironic it is the market who have driven the service expansion. After a conversation with a friend they saw potential with a gap in the market, leveraging an opportunity to positively impact whānau and community.

“People’s situations change and one of the avenues for removals is for those people who are looking to reintegrate back into the community after rehabilitation or prison and want their tattoos removed.” Not only does it help give people a second chance, but it is also a savvy business move with early projections showing it could equate to around 25% of their turnover in the first year of service.

Without Flexi-Wage for Self-Employment TH!NK might not be in the position to expand their offering. Providing options in the start-up space aligns with the Ministry’s focus. Karen Bartlett said, “while MSD is known for our income, housing and employment services, we do offer a range of support for people and creating self-sufficiency and independence for whānau is always a priority.”

Sir Graeme Avery recognised for contribution to Hawke’s Bay

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Visionary sport, community and business leader Sir Graeme Avery has been acknowledged for his immense contribution to developing over $80 million in high performance and community facilities, tackling community health issues and supporting youth to reach their potential.

The newly completed 72 bed hostel, part of a campus of sport and health facilities at the regional sports park in Hastings will be officially known as the Sir Graeme S. Avery House.

The announcement was made by the Hawke’s Bay Community Fitness Centre Trust (HBCFCT) and Hon. Stuart Nash, the Minister for Economic and Regional Development at a special event to open the hostel. The hostel was funded by the Government through a $5m Provincial Growth Fund grant, managed by Kānoa, the Regional Economic Development and Investment Unit.

Sir Graeme’s vision is for the hostel to be used by sport organisations as well as to be used for the delivery of programmes that bring about positive social change and enhance job prospects for Hawke’s Bay’s most disadvantaged young people across Waipukurau, Flaxmere, Maraenui, and Wairoa.

Sir Graeme was the founding chair of HBCFCT, establishing the Trust alongside Bruce Mactaggart in 2016 to develop community sport, education and health facilities and programmes in Hawke’s Bay. Since then the Trust has built the EIT Institute of Sport and Health that boasts the Royston Health and Fitness Centre, the new $32 million Hawke’s Bay Regional Aquatic Centre and now the Sir Graeme Avery Hostel.

“I don’t do things (for the community) to receive recognition or even a gong from the Queen or King. Gaby and I do it to help people to be the best they can be in sport or individually with their health and wellbeing, that’s all the recognition I need.

“I was very reluctant to accept this honour but having talked to my family, especially my son Nigel, I agreed that it would be a fantastic legacy for the family, as well as continue to tell the story of our vision to create opportunities for youth in sport and in life generally, as well as combat some of the poor health statistics in Hawke’s Bay.

“I have to stick around at least another decade to see some of that happen. There’s been some early success with athletes representing New Zealand from here but some of the health programmes are research based and the fruits of those are 10 plus years away,” Sir Graeme Avery said.

Minister Stuart Nash congratulated Sir Graeme, Bruce Mactaggart and the Trust for completing an impressive campus that benefits all Hawke’s Bay residents.

“I’d like to congratulate everyone involved in bringing the vision for this hostel to life and creating such a valuable asset for Hawke’s Bay. This is a magnificent facility that is already supporting our young people to realise their potential, develop leadership skills and build self-esteem through sports and physical fitness,” he says.

“This well-designed accommodation also adds another crucial and unique element to the set of sporting facilities that are strengthening Hawke’s Bay’s reputation for delivering and hosting great sport events alongside ground-breaking support for youth wellbeing and development.

“I would also like to sincerely thank Sir Graeme Avery for his visionary leadership and support for this community and New Zealand over many years. The naming of this facility in his honour is a fitting tribute to his drive for showing what can be achieved when communities work together to help a region and its people realise their full potential.

“The future lies in our young people. It’s up to all of us to help them make the most of opportunities to be the best they can be, in the regions and places they call home. That is a legacy we can all be proud of supporting.”

“A force of nature” is how Sir Graeme Avery is described by fellow founding Hawke’s Bay Community Fitness Centre Trust Trustee Bruce Mactaggart.

Bruce recalls a casual coffee catch up with Sir Graeme Avery in 2015 that sparked the vision of creating a regional version of Auckland’s AUT Millennium Sport Institute and National High Performance Training Centre.

“As I often say Sir Graeme is a force of nature with boundless energy and can easily do the work of at least four people.

“He’s proven time and again that he can bring dreams and visions to reality, never taking no for answer.”

Sir Graeme was knighted in 2014 for service to business and sport, having been involved at the time in athletics locally, nationally and internationally for over 45 years and leading the fundraising and development of AUT Millennium.

Bruce says Graeme saw the potential of creating quality local facilities and programmes that would benefit up and coming athletes as well as all improving community health and well-being outcomes along with youth development programmes.

“Ultimately for Hawke’s Bay Sir Graeme is driven to provide young and old, able or disabled, advantaged and disadvantaged with access to world class facilities and programmes. For Graeme it’s not just about building fantastic facilities for elite athletes but just as important is improving community health outcomes and tackling issues like obesity as well as developing inspirational programmes to ensure youth reach their potential.”

Sir Graeme has stepped down as chair of HBCFCT but remains actively involved, whether it be setting up new sports to the region such as water polo, which now has a schools competition and also recently hosted the national masters event,  to sharing a coffee with Bruce, just like in 2015, and coming up with new ideas to improve sport opportunities and health and wellbeing outcomes.

New HBCFCT chair Iain Taylor said Hawke’s Bay wouldn’t have some of the best sport facilities in New Zealand if it wasn’t for Sir Graeme’s vision, commitment and energy.

“What makes it even more incredible is that in only six short years he and the Trust have created over $80 million in facilities that will benefit the health and well-being of Hawke’s Bay people of all ages, as well enabling athletes to be the best that they can be,” Iain said.

Hastings Mayor Sandra Hazlehurst says the people of Hastings and Hawke’s Bay are deeply indebted to the vision and commitment of Sir Graeme, backed by the support of wife Gaby and family, in creating facilities and programmes that will have a hugely positive impact for many years.

The facilities are on council land and have been instrumental in elevating the Sports Park to world class status and the envy of regions across New Zealand.

“Sir Graeme is a treasure for Hawke’s Bay and his contribution will create many future international sport stars, attract teams and events to compete, train and stay at the park as well as uplift our youth in the delivery of youth development programmes.”

Whirlwind two years for duo

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Ma mua ka kite a muri, ma muri ka ora a mua. Those who lead give sight to those who follow, those who follow give life to those who lead

Through their kaupapa to support others, working out of their Maraenui base, Tipu Ake Tonu directors Theresa Carter and Sally Crown know firsthand the power of the whakataukī (proverb) above. The business has had a whirlwind two years in operation and both agree that the outcomes and impact their services deliver keep them driven to succeed.

“The whānau and organisations we have worked with, their success literally gives our pakihi (business) life. That’s the reciprocal nature of not just business, but Te Ao Māori. There’s a natural balance.” says Sally.

Established out of the 2020 Covid rāhui (lockdown) the business is serving a range of whānau, funders and businesses who all resonate with their approach.

“The indigenous Te Ao Māori framework that we apply to our business support services, incorporating concepts such as atua (deities), whenua (land) and whakapapa (lineage) work for all people. It’s win-win,” explains Theresa.

And it is working here in Hawke’s Bay as well as across the motu (country). One of more than ten providers locally their Whanake Ake service designed to assist those looking to pursue business start-up through the Ministry of Social Development’s (MSD) Flexi-Wage for Self-Employment product was responsible for 42 percent of successful applications regionally in the 21/22 year. The service has been picked up by both Tāmaki (Auckland) and Te Whanganui-a-Tara (Wellington) regions too.

Helping applicants articulate their idea, research viability and present their case to vetters such as PwC, Tipu Ake Tonu have honed the process over the last 15 months. All the businesses they helped launch remain operational, with 12 of them now entirely independent of MSD assistance.

“For many of the whānau we work with it initially seems overwhelming. Whanake Ake is an intensive one-on-one service where we not only build their business capability but also their self-belief and resilience.”

Identifying ways to reduce barriers to start a business means Whanake Ake has provided a natural next-step for participants from their flagship business start-up programme Kurawaka that has been funded by Te Puni Kōkiri. The wāhine (women) focussed course continues to develop and has now delivered three cohorts. Sally says, “our 2022 cohort included a six-month mentoring component.

It’s a gap we continue to see in the market. Businesses get started with a bang but then what? Many just need someone to walk alongside them as they navigate the crucial first phase. We have been lucky to be able to build this into Kurawaka.”

The results of such support speak for themselves. Their 2022 cohort had a 100 percent completion rate, 40 percent of participants transitioned from being employees to full-time self-employment and all participants are operating in business. However, it is not just the success of the individual but also the ripple effect it has on the well-being of family and the wider community. Theresa adds, “one of our participants has now established two businesses, four of our wāhine are operating businesses with six-figure revenue and seven additional whānau have been employed in pakihi (businesses) established out of this cohort.”

Tis year they have also completed a covid related project working with 10 businesses to help them assess their current and future positions, with ongoing check-ins and recommendations all 10 are surviving despite a difficult couple of years. They also continue to work in business growth, community engagement and cultural capability, diversity and inclusion. “I had a client say the other day that I had said that when you authentically understand (Te Ao Māori) you will act differently; and now they are. It’s courageous and can be scary for some but once people get it, they just know it’s right,” says Sally.

The small team of contractors they work with are pivotal to their success and they are grateful to be connected to like-minded professionals who are one hundred percent committed to the kaupapa.

Sally praises their capabilities and work ethic, “we work in a perpetual state of change and innovation. Our team are flexible, knowledgeable and inspire us on the daily.” Collaboration and reciprocation are essential.

Theresa adds, “we couldn’t do this mahi on our own. Our partners and our team are key to the outcomes we are achieving. Mā whero, mā pango ka oti ai te mahi.” (With red and black the work will be complete.)

www.tipuaketonu.co.nz