01 Sep Reactive or proactive?
Reactive or proactive?
It’s been a tough few years alright. So much so, it can be hard to know if you’re coming or going! Because of this, over recent years, we’ve seen many businesses become increasingly reactive. Understandable, but is it a good long-term plan? While being reactive means that you can be responsive as circumstances change – a proactive approach helps anticipate challenges and seize opportunities, instead of scrambling to react when trouble hits.
So far this year, we face rising costs, wavering consumer demand, tariff-driven trade distractions, inflation, and digital disruption – at least some of which could have been foreseen. Waiting until strikes usually means fewer options and tougher decisions. Instead, proactive planning such as thinking ahead, reviewing strategies regularly, and acting early, gives us breathing room to adapt and hopefully even thrive.
Expectations for NZ
Growth for New Zealand is projected at 2.4% in 2025, pushed on by lower interest rates and solid export returns. But there’s ongoing uncertainty: inflation remains elevated, unemployment is over 5%, trade tensions make headlines and so far, the increase export earnings aren’t ‘trickling down’. Many in the ‘smaller’ end of town are focused just on staying afloat. But the ones making gains aren’t just lucky – they’re proactive, seeking out ways to improve their financial position and customer base before problems snowball.
Practical Proactive Moves
- Review budgets and cash flow before costs pile up.
- Keep a pulse on market changes (watch for cost-of-living spikes or shifts in consumer habits).
- Plan for the next business season, not just the next week – Christmas will be here before you know it.
- Engage the people you trust to look at forward-looking strategies.
- Revisit your customer mix – sometimes, the “bad” customers aren’t worth the effort.
Why Now?
The old “hope for the best, react to the worst” playbook just isn’t cutting it, and it’s clear that any economic recovery won’t come quick. Proactive business planning helps safeguard business assets, supports growth, and puts owners in control – even when surprises crop up.
If you feel you’re stuck in a reactive loop and want to make a change, get in touch!
When do you want to retire?
A few months back we wrote about saving for retirement. The reason that we did this is because compared to our OECD peers, our savings rates is awful, which means that retirement is going to look a lot tougher for a lot of us. As a comparison, Australia has more than double our savings rate, and they are only middle of the pack – Denmark has over 6 times our savings rate, and Norway are 10 times better at saving than us!
This all matters because a) we are much more prone to financial shocks and b) if you’re a child of the 80’s (and maybe even the late 70’s) NZ Superannuation is likely to look very different by the time 65 rolls around. And to be clear, by different, we mean way worse for the recipients. NZ has an aging population and a reducing tax base – the unfortunate reality is that sooner or later, the nation will be unable to afford NZ Super in its current form.
Retirement and NZ Super have become political hot potatoes with both sides of the political aisle putting their head in the sand, even though it has been well forecast that the scheme is on borrowed time. So, time to do some adulting and make sure you’re on track for the retirement you expect.
A great place to start is with the Sorted Retirement Navigator. But if you need some help, please get in touch.
