Disclaimer: This isn’t financial advice—just a reflection on what’s worked for me and what I’ve seen in the New Zealand market at the time of writing. Please seek professional advice tailored to your own situation. It can all seem a bit too hard sometimes—but don’t let that stop you. You’ve got this. Just watch out for the fish hooks.
🥳 First Sale? That’s Huge
Let’s start with this: congratulations! If you’ve made your first sale, that’s no small thing. Maybe it was a contract, a product launch, a market stall win or a creative gig—that moment is proof your idea has real-life value. Now the ball’s rolling, and everything that follows is momentum. This post is here to help you ride that wave with confidence.
⚡ First Things First: Timing Is Everything
In Aotearoa, the political winds can shift direction quicker than your inbox fills up after lunch. The current government is focused on supporting small businesses—but incentives like the Investment Boost or home office deductions might not stick around forever. So if something fits your setup, make the most of it now.
🛠️ Starting Out Solo? You’ve Got Options
Being a sole trader is refreshingly simple:
- Let IRD know you're in business (myIR)
- Register for GST if you're earning over $60K/year
- Set up a separate bank account — think oil and water: business and personal don’t mix
- Apply for an NZBN via nzbn.govt.nz — makes you easier to deal with
- Track income and expenses — your future accountant will high-five you
- ACC will find you — you’ll get your first bill about a year in, so budget early to avoid the surprise
You can trade under your own name or use something more Creative—it’s totally up to you.
💻 The Investment Boost: Real-World Example
From 22 May 2025 to 31 March 2027, the government is offering a 20% up-front tax deduction on qualifying business assets. Here’s how that plays out:
Laptop Example – $2,000 Spend
- Immediate 20% deduction = $400
- Remaining $1,600 depreciated over time
🧾 "Immediate" means the tax year you purchased it, not when you bought it—so hang onto that receipt.
💡 A few caveats:
- If you use it for both business and personal, you’ll need to apportion the claim
- If it’s under $1,000, you might already be able to fully expense it under standard rules—no need for the 20%
🚗 What About a Vehicle?
Yes—you can use the Investment Boost here too, but the rules are clear:
✅ Eligible:
- Brand-new vehicles bought in NZ
- Imported second-hand vehicles not yet used in NZ
🚫 Not eligible:
- Used vehicles already registered in NZ
- Cars bought second-hand from another Kiwi business or individual
And just like the laptop, if you’re also using the vehicle for personal errands or weekend surf trips, you’ll need to keep a logbook and only claim the business-use portion.
🏡 Claiming Home Office Expenses
If you’re self-employed and using part of your home for business, here’s what you can claim:
- Rent or mortgage interest
- Power, internet, and insurance
- Cleaning and maintenance
- Furniture or gear (depreciated if over $1,000)
🧮 Choose between:
- The square metre rate ($55.60/m² for 2024–25), or
- The actual cost method with % business use
👩💼 Employees working from home can’t usually claim unless they’re required to do so and not reimbursed—but employers can reimburse up to $20/week tax-free.
🌀 Hybrid Hustle? That Counts
Running a creative side gig from home—like Random Circuits—that earns income? Then:
- You can register as a sole trader
- Claim workspace and utility expenses
- Depreciate laptops, tablets, or creative gear
- Legitimize your brand’s work and intent
This is about seeing your creative output as a real business—because it is.
🎉 The Fish Hooks (Let’s Talk About That 20%)
Unpaid GST, missed tax payments, forgotten ACC—these are the tripwires.
Here’s the simple habit that I used that can save you from a bill shock:
Set aside 20% from every invoice in a separate account.
And just so we’re clear: this is not your spontaneous Fiji trip fund. It’s not for a Friday splurge or a rainy-day reward.
This is your looming-tax-bill vault. Lock it down. Label it. Keep your hands off. You’ll thank yourself come tax season.
🧙♂️ Your Accountant Can’t Do Spells
Even the best advisor can’t invent receipts or recall hazy transactions from six months ago. Keep your systems tidy and your documents backed up.
- Log purchases
- Label expenses
- Snap photos of paper receipts
You’re not being overly cautious—you’re being future-ready.
🤝 Mentorship: Where Is It?
If you’re looking for guidance, Business Mentors New Zealand is a solid place to start. For a one-off fee, they’ll match you with an experienced mentor for up to 12 months of tailored support. It’s confidential, practical, and built for small businesses—definitely worth a look.
But here’s the thing: for many first-time founders, what’s still missing is a more informal, been-there-last-week kind of support. The kind that’s:
- Peer-powered and low-barrier
- Grounded in community, not just commerce
- Less “thought leader,” more “just survived year one with receipts and a smile”
We’re not short on advisors—but there’s still a gap for local, story-driven mentorship that’s affordable, relatable, and tuned to the realities of starting out from scratch.
It’s not either/or—it’s and. Structured programmes like BMNZ are a great starting point. But there’s room for something more grassroots to grow alongside them. And if you’ve got ideas to help build that kind of support? Even better.
🌊 Scenario Spotlight: Creative Commons by the Coast
Imagine this:
- A studio by the sea for storytelling, digital art, and AI exhibitions
- A space for student-run markets and hands-on creative learning
- A couple of boutique stays for visiting creators
To make it commercially viable and tax-efficient:
- Separate the creative hub and accommodation legally
- Zone for mixed or commercial use
- Focus revenue on creative work, not short-term stays
- Operate under a strong brand—like Random Circuits Collective
🧰 If the core infrastructure—like VR gear, lighting rigs, or large-scale tools—is key to your business output, it may qualify for the 20% Investment Boost. Structure it right, and you’ve built more than a space—you’ve built a sustainable creative engine.
🌱 Final Word: You’re Doing It
Starting out is messy, and messy doesn’t mean you’re failing. With the right tools, smart systems, and maybe a little humour, you’ve got everything you need to thrive in New Zealand’s ever-evolving small business landscape.
Use the system. Respect the fish hooks. Keep the oil and water separate. And don’t wait for perfect—start now.
Let’s make it happen!
Exposure. The Great unknown.
These are the voyages of Random Circuits, boldly entering the arena of ideas that disrupt, challenge, and transform.
