how to start a small business in NZ: Guide, Ideas & more

Starting a successful business lets you become your own boss, escape the 9-to-5 grind, and build a lifelong legacy. But where does the would-be Kiwi entrepreneur begin?

Whether you’re planning an in-person brand or bootstrapping an online start-up, this post covers how to start a small business in New Zealand. We’ll outline paperwork, planning, strategising, and compliance requirements so you can kick-start your dream enterprise.

Table of contents
Small business ideas in New Zealand In-person Online Can you start a small business with no money? Guide on starting a small business in NZ Wise Business: One account for all your global currencies

Small business ideas in New Zealand

Not sure what to do? Here are some small business ideas for New Zealanders, both online and offline.

In-person business ideas in New Zealand

• Mobile car washing/detailing: Best for medium to upper-class suburbs.
• Trade services: High demand throughout New Zealand.
• Gardening: Kiwis love gardens and will happily invest in their upkeep.
• Pet sitting and walking: A dopamine-boosting side hustle for animal lovers.
• Food preparation: Sell your delicacies at markets or food trucks.
• Instruction: Teach fitness or yoga to health-conscious Kiwis.
• Massage and physio: Help customers through hands-on services.
• Airbnb: Rent out a spare room or an investment property.
• Campervan rentals: Rent your van to capitalise on our love of the outdoors.

Online business ideas for New Zealanders

• E-commerce store: Open an online shop selling Kiwi products abroad.
• Tutoring: Teach academic subjects like English, math, coding, and music.
• Freelancing: Offer services like programming, copywriting, and graphic design.
• Digital marketing: Help New Zealand businesses build a stronger web presence.
• Consulting: Share your industry expertise with growing businesses.
• Arts and crafts: Sell your creations on Etsy or Felt.co.nz.
• Digital products: Offer photos, e-books, templates, and art as a digital download.

Can you start a small business with no money?

It’s possible to start a business in New Zealand without investing a cent. But you will need to sacrifice some “sweat equity,” AKA “blood, sweat, and tears.”

Becoming a sole trader, for example, doesn’t require any fees or a formal registration process. Therefore, you could start offering services such as writing, tutoring, graphic design, and consulting on freelancing platforms or LinkedIn. Tradies can do odd jobs like gardening or gutter cleaning. However, more specialised professions, such as plumbers and electricians, must first invest in formal training.

Marketing with a $0 budget is tricky but not impossible. Free approaches include building a following on social media, creating a DIY website, and networking with your local community.

Starting a small business in New Zealand: A step-by-step guide

Eager to get the ball rolling. Here’s how to start a small business in New Zealand.

Do your market research

No point going to all this effort for a product nobody wants. Market research determines if there is viable demand. Evaluate customer demographics, including age, income, gender, occupation, location, and spending habits.

Google Maps and search can find similar in-person small businesses in your area and online competitors. Assess whether the market is saturated; if others are struggling, you may too. Analyse the competition’s strengths and weaknesses, and what your business can do better. Trade organisations, publicly traded companies, and Statistics New Zealand publish free industry-specific data that can guide your analysis.

Write a business plan

Even if you’re starting a small side hustle, it’s worth learning how to write a business plan. This fundamental document defines your offering, processes, objectives, and challenges; it’s like a blueprint for growth. You don’t need to pen a novel. Most start-ups draft a quick 1-pager or use free business plan templates.

What should you include? It depends on your circumstances. At the very least, you should clarify what your product is, where you’ll sell it, and how you’ll stand out. Subsections might include your value proposition, business objections, milestones, a SWOT analysis, budgeting, and financial forecasts.

👆Looking to draft your own business plan? Check out this guide on how to write a business plan

Create a marketing strategy

A small business has a small marketing budget, so start with the basics. Think about your customers’ needs, motivations, and pain points. Are they cost-conscious? Do they prefer personable services? This info will guide your messaging.

The best marketing strategies for small businesses depend on your industry, budget, and objectives. Online options include creating an SEO-optimised website, listing a Google Business Profile, and building a social media following. If your in-person business targets a small geographic region, you could throw in flyers, posters, and face-to-face networking.

Choose your business structure

Most small in-person and online businesses will use one of three structures.

• The sole trader is popular among single-person businesses, such as tradies or online freelancers.
• The partnership is a joint venture in which two or more entrepreneurs share profits and liabilities.
• The company is a more sophisticated set-up for small businesses that plan to scale.

All three structures must pay tax and can hire staff or export products overseas.¹ Switching structures can be complex, so get it right the first time. Seek advice from a certified lawyer or accountant and check out Business NZ's '“'Choose a Business Structure' tool.²

Register your business

Now you’ve settled on a structure, the next step is to get registered.

Good news for sole traders: New Zealand doesn’t have any formal registration requirements. The only thing you must do is inform the Inland Revenue Department (IRD) of your intentions to trade.³

Partnerships involve more paperwork. A joint venture requires registering a L.P. business name, providing physical, service, and postal addresses, certifying a partnership agreement, signing consent forms, obtaining a New Zealand Business Number (NZBN), and more. A small registration fee applies.⁴

Registering a business in New Zealand is somewhat challenging; you must also appoint directors and shareholders, file consent forms, and declare an ultimate holding company (UHC), among other tasks. Fees apply, and you’ll have 20 days to complete the process.⁵

Choose and register your business name

Brainstorm a business name that appeals to customers and casts your brand in a positive light. Catchy names are suitable for small, casual businesses, while those in more serious sectors, such as consulting or accounting, often prefer formal titles.

ChatGPT can provide ideas, though they often require tweaking. Ask friends for feedback to see which names resonate.

Use the NZ ONE Check Tool⁶ to see if your business name is available in New Zealand and if it clashes with existing web domains, trademarks, and social media accounts. Companies can register their name through the Companies Register.⁷

Get your taxes sorted

All businesses must pay taxes and register for GST as soon as they expect to generate a turnover of $60,000 or more in the next 12 months. ⁸ Other tax rates and requirements vary between structures.

If you’re running a business from home, you could possibly claim some expenses as a tax deduction. Common work-related write-offs include telephone and internet bills, electricity and water, and sometimes even rent.⁹ A certified accountant can navigate bewildering regulations and optimise your return. Getting a business account that integrates with bookkeeping software often helps simplify time spent on tax reconciliation.

Sign up for the Wise Business account! 🚀

Complying with legal obligations

Just because your business is small doesn’t mean you can skirt the rules. As a well-developed and heavily regulated nation, doing business in New Zealand requires compliance with a laundry list of laws.

Tradespeople may require licenses, white collar professionals might need qualifications, and home-based businesses must adhere to council rules. Anyone serving food or beverages for human consumption should understand New Zealand food safety legislation.

The Business NZ Compliance Tool¹⁰ provides helpful, industry-specific advice.

Setting up a business account

Setting up a business account allows you to separate personal and business expenses, establish credibility, and streamline tax returns. Many institutions allow you to open a business account online in a matter of minutes.

Choosing a suitable business bank account depends on your business needs and prioritizes. Small businesses dealing with cash might prioritise nearby ATMs and branches, while high-volume companies could benefit from solutions that offer a comprehensive array of features to help manage everyday finances effectively.

Wise Business: One account for all your global currencies

Starting a small business in New Zealand often involves international transactions, and Wise Business offers a cost-effective solution for globally operating companies. Unlike traditional money transfer services that rely on multiple intermediaries and poor exchange rates, Wise Business facilitate business transactions at the mid-market exchange rate with transparent fees and pricing.

A Wise Business account allows users to can send, receive, and hold in multiple currencies. Experience hassle-free global transactions by transacting like a local business. Here's what you get with a Wise Business account:

• Free to register — Hold and convert between 40+ currencies. Send to 140+ countries
• Debit cards for you and your team, which you can use in 150+ countries
• Multi-user access for team members, with ways to control and manage permissions
• Pay up to 1,000 recipients at once with the Wise batch payments feature
• Integrate with your favourite cloud accounting solutions like Xero, QuickBooks, and more
• Get account details to receive in 8+ currencies for a one-time fee of 40 NZD

Sign up for the Wise Business account! 🚀

This general advice does not take into account your objectives, financial circumstances or needs and you should consider if it is appropriate for you.

---

Sources:

1. Business Structure Overview
2. Choose a business structure tool
3. Becoming a sole trader
4. Registering a limited partnership
5. Starting a company
6. New Zealand ONECHECK tool
7. Companies Register
8. Basic tax types
9. Using your home for your business
10. Business NZ Compliance Check Tool