BETTER BUSINESS
Issue Eight, May 2006

 

In this months issue:

Buying or Leasing
www.businessmentor.org.nz
Influencing skills

 

BUYING OR LEASING

This is an age-old question for business owners with the best answer dependent on your circumstances and preferences. Leasing and buying are of course just two methods of asset financing, each with its own benefits and drawbacks. You must not only look at the financial comparisons but also at your own personal priorities — what's important to you: -

• Is having a new asset every two or three years with no major repair risks more important than long-term cost (this is particularly useful for technological assets) – you should lease/hire.
• Are long term cost savings more important than lower monthly payments – you should buy/own.
• Is ownership more important than lower monthly payments and no deposit payment – you should buy/own.

Buying is like putting money into a savings account as at the end of the finance arrangement you have an asset to show for it, i.e. it builds equity. With leasing, instalments are usually much lower and this means the money saved can be used in other areas of your business, however, at the end of the term you do not own the asset.

Tax treatments between the two methods also differ greatly with financing charges (not the entire loan repayment) and depreciation being deductible on owned assets. With lease/hire, each monthly payment is 100% tax deductible providing it meets the standard IRD deductibility tests.

www.businessmentor.org.nz

This recently released programme makes available, at no cost, the skills and experience of successful business people. To be eligible for the program you need to have less than 25 employees and have been in business for at least six months. The mentor program offers expertise in all areas of business management, helping give clients confidence in meeting new challenges and learn the skills necessary for achieving results. A business mentor is a coach, not a consultant, so they will not do the work for you but will work in conjunction with your existing professional advisors. Business mentors are a sounding board, offering support and assisting in developing, stimulating and challenging their clients.

 

If you qualify and would like to apply for a business mentor, this can be done via the website address: http://www.businessmentor.org.nz/clients/apply1.php

INFLUENCING SKILLS

There is no one particular method to influence others - everything is a factor when influencing people. Whether you realise it or not, your job or business position will require you to influence people nearly all of the time. Being an excellent influencer will make your job easier and people will like being around you if you are successful with this skill.

 

Excellent influencing skills require adapting and modifying your personal style when you become aware of the affect you are having on other people. You may try to exert your influence through coercion which might even succeed in getting things done; but that isn't really influencing as coercion and force will not succeed in winning support. People are far more willing to meet someone at least halfway if they feel acknowledged, understood and appreciated.

 

Influencing is about being able to move things forward, without pushing, forcing or telling others what to do. Whatever the arena you work in influencing others is about having the confidence and willingness to use yourself to make things happen.

 

Up coming events at HWI...

FREE seminar: Better business management & characteristics of a well run business.  Wednesday 14th June 2006 at 9am, email Mark at maldridge@hwi.co.nz or book online .

Disclaimer Information contained within this document is of a general nature and does not constitute advice. Readers are cautioned not to act or rely on it without first seeking professional advice.