Starting a business is one thing. Starting a successful business? That’s a whole different ball game. Sure, New Zealand is the easiest place to start a business, but here’s the kicker: 80% of all Kiwi businesses fail in their first five years.
Before you dive headfirst into registering your business or locking down your perfect domain name, take a pause. Is your idea actually on the money? Ask yourself these crucial questions:
If you’re not genuinely passionate about what your business does, it’s going to show. A person-business fit is all about making sure you’re in it for the right reasons and actually love what you’re building.
The most successful businesses are steered by people who thrive on what they do, care deeply about their team, and are obsessed with making life better for their customers. Imagine trying to do all that when your heart’s not actually in it… sounds tough, right? That's why person-business fit matters.
Found that thing you’re passionate about? Epic. Now it’s time to dust off your shovel and dig deep into research. What are other businesses in the industry doing? Who are their customers? What prices are they charging? This is what we call market validation.
It’s not a quick sprint—this process can take a few months. But it’s all about really understanding the problem, the customers facing it, and how much they’d actually pay for a solution. Plus, you’ll need a solid grasp on what it’ll cost to run the business.
Here’s the golden rule: don’t skip market validation, and don’t fall in love with your solution before you’ve fallen in love with the problem.
Think about market validation as a four step journey:
After going through these steps (and probably a few rounds of trial and error), you should have a product so good that customers practically snatch it out of your hands.
But here’s the catch: market validation isn’t a one-and-done deal. Any seasoned founder will tell you it’s an ongoing process. You’ve got to stay on top of it, constantly refining to make sure you’re the best company out there solving that problem.
Businesses fall into two camps: demand pull and demand push. You want to be in the former - here’s why.
Demand pull businesses create products that customers immediately get. They see the value, know it solves their problem, and are happy to pay for it. Their demand practically pulls the product right out of your hands.
Demand push is trickier. This is where you’re constantly having to push your products onto customers. They either don't understand it, or don’t see the value. Sounds exhausting? Focus on creating something people can’t wait to get their hands on.
A great idea isn’t enough if the finances don’t stack up. Here’s what you need to know to make sure your business stays in the green:
When you’ve got a handle on these numbers, you’re not just running a business—you’re running a financially sustainable business.
You need to choose between two main structures: sole trader or company. Here’s how they work:
Sole Trader
Freelancers and one-person operations often stick as sole traders. They work solo, don’t subcontract, and handle everything themselves. The best part? No need to register anything. But it’s a good idea to register for a New Zealand Business Number (NZBN) and a business name to keep things professional.
Company Structure
If your business is a bit bigger—think startups, cafes, or anything with a team— the company structure is where it’s at. Unlike sole traders, companies can have directors and shareholders.
Setting up a company means ticking off a few key tasks:
You’ll also need to log your business idea with the Companies Office, as the NZ government keeps tabs on kiwi businesses in action. A bit of admin sets you up for long-term growth.
You might be a bright idea, big-picture thinker, eager to take the world by storm. But running a business means you actually spend plenty of time deep in the weeds of it. And if you’re not careful, the admin may swallow you and your business whole! Staying on top of these essentials at the very least is a must to keep yourself afloat:
It’s not glamorous, but these are things which keep the ship afloat. Keep your head in the game by keeping your admin in check!
What are the startup costs for a company in New Zealand?
If you’re doing it yourself, setting up a company costs around $200. But if you factor in the extras—like a website domain, social media accounts, and ecommerce solutions for online selling—the total can come to about $1,500.
What’s the minimum age to start a company in New Zealand?
You need to be at least 18 to start a company in NZ. And there’s no shortage of inspiring young entrepreneurs proving it’s possible! For example, Jamie Beaton, founder of Crimson Consulting, launched his business around the age of 18.
Can I get help from the New Zealand government to start my business?
Yes! Depending on your business type, you could get support from:
Are there specific business advisors for Māori?
Absolutely. Māori entrepreneurs can reach out to Te Puni Kōkiri, which offers tailored support. To qualify, your business must be majority Māori-owned, you’ll need a business plan, and you’ll need to have attended Inland Revenue’s “Introduction to Business” workshop. Te Puni Kōkiri is a great resource to help you get started.
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