EXTENDED hours, extra staff, more space, more equipment, more food ... just a few of the factors Rotorua businesses ramping up services for the major sporting event of the year will be considering.
Now is certainly the time to be hatching a plan in anticipation of the extra business that
will hit Rotorua during the six-week rugby tournament starting in September, when 85,000-plus guests are expected to descend on New Zealand.
The only way to cater for the surge in customers - whether you're dealing directly with visitors in hospitality or tourism or providing support services to those sectors - is to plan for it. If you're in the café business, for example, you don't want to find yourself a month out suddenly needing to spend thousands on glassware and crockery or hunting out extra staff when demand is high and supply low.
Planning will ensure you can manage financially. Some simple tips:
Increasing assets
If increasing supplies and assets, do so gradually to take advantage of business expense tax thresholds and reduce impact on cash flow.
If you need extra chairs, buy two or three at a time over the next six months rather than 10 all at once. Costs below $500 can be expensed immediately and are, therefore, fully tax deductible. Buying 10 at once for $500, they become "assets" and are included in your depreciation schedule.
Extra income
In anticipation of earning extra income, consider planning for higher tax payments next year. You can make voluntary tax payments over a period to manage the extra tax bill or put money aside in your annual budget.
Staff and training
Make it a priority to organise extra support in your staffing pool well ahead of time and to invest in customer-service training.
Any major visitor event presents an opportunity to build a legacy of great service and happy customers. Your frontline people will be making the strongest impression on these new visitors and should be able to deliver consistently excellent service.
Consider tapping into local staff resources such as hospitality and tourism students at Waiariki Institute of Technology.
Leasing vs buying
Depending on the size and nature of your business, it's worth considering leasing rather than buying extra equipment or space to maximise your capacity for this one-off event.
Renting means you're not tying up valuable cash in assets with limited value beyond one major event and the lease costs are 100 per cent tax deductible.
Securing support services
If you are in the hospitality or tourism business, check your service providers such as plumbers and electricians will be available.
Consider hiring a power generator as a back-up in case of a power cut during peak demand.
- Stephen Graham is a partner at BDO Rotorua chartered accounting and advisory firm