Get planning to crank up for bike fest

ADRENALIN RUSH: Crankworx action from last year's event. Photo / Scott Robarts

Extended hours, extra staff, more space, more equipment, more food ... just a few of the factors Rotorua businesses need to consider in cranking up services for Crankworx.

Business is expected to surge with Rotorua selected as the Southern Hemisphere venue for this major mountain biking event for the next three years - from March 25-29, 2015.

Are we ready? Skyline's on to it already, as reported in a recent Rotorua Daily Post article saying they're already looking to recruit up to 50 more staff just for Crankworx.

Do we have enough staff to cover all businesses?

In short, if you're not already doing so, now is the time to be hatching a plan in anticipation of the 750 riders expected to visit; more than 80 per cent hailing from overseas and likely to hang around a bit longer than the five-day festival.

At the same time, businesses need to plan for going back to "normal" when events are over. Here are some tips to ensure you can manage financially:

• Increasing assets - If you're increasing supplies and assets, do so gradually to take advantage of business expense tax thresholds and reduce impact on cash flow. Costs below $500 can be expensed immediately, therefore fully tax deductible - rather than buying 10 at once for $500 at which point 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 opt to make voluntary tax payments over a period of time or put money aside in your annual budget to account for the higher bill.

• Staff and training - Prioritise securing extra staff support well ahead of time and invest in customer service training. It's an opportunity to build a legacy of great service and your front-line people will make the strongest impression on these new visitors so should deliver consistently excellent service. Consider tapping into local staff resources such as hospitality and tourism students at Waiariki.

• Leasing vs buying - Consider leasing rather than buying extra equipment and/or space to maximise your capacity for this one-week event over the next three years. You'll avoid tying up cash in assets that may have limited value beyond the one-week event, and lease costs are 100 per cent tax deductible. But, get in early!

• Securing support services - Check your service providers such as plumbers and electricians will be available - and if not, arrange a back-up. Likewise, you may want to consider hiring a generator as a back-up in the instance of a power cut during peak demand.

• Stephen Graham is a business adviser and partner at BDO Rotorua.