Seminars making the difference for small businesses

By KEVIN TAYLOR

If Bob Hamilton had his way every small business person would take a new course WestpacTrust is pitching at small and medium-sized businesses.

The bank launched its Beyond Survival seminars in June.

Hamilton, who runs a small Auckland company, said the seminar vindicated everything he had done during 17 years in business but he still learned new things.

In Australia the bank's parent, Westpac, has run the seminars for more than 3000 businesses since 2000.

The Beyond Survival seminars are designed to give business people enough financial knowledge to "make the difference between struggling and succeeding".

The success rate of New Zealand startups was 59 per cent after four years, but with better financial skills the bank believes the success rate could be improved.

Hamilton, an engineer and managing director of East Tamaki Galvanizing, said the seminars taught how to make a business grow - and highlighted pitfalls.

"I wish that people who have problems with their businesses would go on some of these courses." he said. "It seems that only successful people go on them."

The bank says many business failures stem from money issues at the top.

To help business people understand the warning signs, the seminars home in on the drivers of cashflow and profits, focusing on analysis of financial statements and how they interact.

The seminars involve practical exercises, anecdotes and examples covering balance sheets, costs, profits, margins, and asset-to-liability ratios.

Hamilton said the seminar was common sense.

"A lot of it I already do, but I haven't done the ratio calculations before.

"It gave me an insight into what banks are looking for, and how they work things out. It's better than finding out at the last minute that the bank won't give you a loan."

Hamilton said he saw an accountant only twice a year, but would now be asking more questions about the accounts.

He said the seminar was also good for meeting other business people and hearing their problems.

Beyond Survival was brought to New Zealand by Tim Buckett, who worked for Westpac in Australia and is now head of business marketing for WestpacTrust.

Westpac bought the licence to run the seminars from American financial educator Steve LeFever, an ex-banker.

Buckett said the intention was to take the seminars to regional centres as well as the main cities, subject to demand.

Beyond Survival dealt with simple concepts and misconceptions, he said.

"People that go into business are those that make something or sell something, and are not necessarily good at running the administration side."

The seminar had been welcomed by participants, he said.

"The overwhelming reaction from video interviews afterwards is 'I wish I'd seen this 20 years ago'."

He said while the bank wanted to take the seminars to most small businesses, it was a hard sell.

"Can you imagine a bank going to a customer and saying: 'Give us $800 and we think we have a two-day course that would do wonders for you'?"

Buckett said the small business end of the market was the one that would find most value in the courses.

The seminars cost $790 a head - but there is a no questions asked, money-back guarantee if participants are not satisfied.

* For more information about the seminars, call 0800 177-127.