New business series - experience and capability

Last week, our business strategist Barry Mosely covered some rather sobering statistics about the lifespan of New Zealand businesses, and included a short quiz to help people decide whether they had a solid foundation to build a business upon.


Barry Mosley Winstanley Kerridge Business Strategist

Last week, our business strategist Barry Mosely covered some rather sobering statistics about the lifespan of New Zealand businesses, and included a short quiz to help people decide whether they had a solid foundation to build a business upon.

Today, we’re talking about experience and capability.

People make the decision to run their own business for a variety of reasons. It may be prompted by redundancy, early retirement, the desire to deliver a better service or product, or sometimes they are simply disgruntled with their current position.

In many cases, the decision is driven by an interest in the industry or a perception that self-employment offers a better lifestyle.

Whatever the reason, the number one question that should be at the forefront of everyone’s minds is:

Do I have the experience to run a business of this nature?


Motel ownership is a good example of a business that people get into, for a lifestyle change.

It's important to ask yourself if you've thought through all the requirements of owning your own business.

I personally know a number of people who have retired, taken super pay-outs or redundancy and decided to buy a motel.

Rather than solely looking at the lifestyle advantages, I would recommend they look a little deeper into the everyday realities of owning such a business, and ask themselves:

1. Do I enjoy dealing with people?

2. What are the time commitments involved in this business? People purchasing motels generally accept they will live on site and may get calls after hours, however, they may not realise they can be at the beck and call of their guests 24/7.

3. Are we committed to the venture, and for what time frame?

Are you open to asking yourself - am I prepared?

Before buying a business, it’s important to thoroughly research the business you are considering and ensure you understand all the issues, before making any decisions.

Talk to others in the industry to get a full and honest picture of what you are getting into.

Once you’ve worked through this process, and can positively answer all the questions, you can be confident in moving forward with your investigation into the business.

In our next blog in this series we will look at the question of adequate capital.

 When you are considering going into business make sure you seek advice from professionals that can assist and guide you.