1 00:00:00,120 --> 00:00:02,759 Speaker 1: More insight into the economy. You darted from MYRD shows 2 00:00:02,759 --> 00:00:05,000 Speaker 1: twenty percent of businesses operating at a loss. This is 3 00:00:05,000 --> 00:00:07,600 Speaker 1: in twenty twenty three. One hundred and seven thousand of 4 00:00:07,640 --> 00:00:09,400 Speaker 1: them can out of the four hundred and seventy five 5 00:00:09,440 --> 00:00:12,080 Speaker 1: thousand companies we have. By last year similar trend, another 6 00:00:12,080 --> 00:00:14,480 Speaker 1: one hundred and seven thousand companies still reporting losses, more 7 00:00:14,520 --> 00:00:16,800 Speaker 1: than forty percent of those businesses. By the way, in 8 00:00:16,880 --> 00:00:20,320 Speaker 1: accommodation and food, Chris Small, CEO at ABC Business Sales, 9 00:00:20,400 --> 00:00:22,160 Speaker 1: is back. Well this Chris, very good morning to you. 10 00:00:22,880 --> 00:00:24,200 Speaker 2: Okay, Mike Keey, you're doing very well. 11 00:00:24,200 --> 00:00:26,240 Speaker 1: Indeed, how many businesses run at a loss, will always 12 00:00:26,280 --> 00:00:27,920 Speaker 1: run at a loss? Are a bit useless and that's 13 00:00:27,960 --> 00:00:28,520 Speaker 1: just life. 14 00:00:29,560 --> 00:00:32,080 Speaker 2: Yeah, great point. So within those numbers is actually a 15 00:00:32,120 --> 00:00:35,200 Speaker 2: high proportion they actually have no staff, and they actually 16 00:00:35,200 --> 00:00:40,040 Speaker 2: include things like trusts and property owning companies. So i'd 17 00:00:40,080 --> 00:00:42,240 Speaker 2: say you're rejected. What there's a fear proportion as you 18 00:00:42,280 --> 00:00:45,000 Speaker 2: look at prevous years ninety nine thousand that I've actually 19 00:00:45,000 --> 00:00:47,920 Speaker 2: structured in a serisan way, which will always for text 20 00:00:47,920 --> 00:00:50,720 Speaker 2: efficiency reasons show a loss. So I think you spot 21 00:00:50,760 --> 00:00:51,519 Speaker 2: on there is there. 22 00:00:51,440 --> 00:00:54,800 Speaker 1: Are variation in sectors. I mean I highlighted accommodation and food. 23 00:00:54,840 --> 00:00:57,320 Speaker 1: Will some always struggle because of the number of people 24 00:00:57,400 --> 00:00:58,560 Speaker 1: in that sector. 25 00:01:00,840 --> 00:01:05,040 Speaker 2: Not necessarily, I mean it's at the moment you exactly right, retail, accommodation, 26 00:01:05,959 --> 00:01:09,240 Speaker 2: and hospitality, which all have a reliant on customer demand 27 00:01:09,319 --> 00:01:10,960 Speaker 2: or consisumer spending. As we all know, we're in a 28 00:01:11,000 --> 00:01:14,080 Speaker 2: cost of living crisis, so consumers are spending less. So 29 00:01:14,440 --> 00:01:17,959 Speaker 2: in particular those those are the seat does it getting 30 00:01:18,000 --> 00:01:19,800 Speaker 2: hit the hardest. But no, there's no reason why those 31 00:01:19,800 --> 00:01:22,880 Speaker 2: sectors can't make money. Well, I would say is certain 32 00:01:23,000 --> 00:01:26,520 Speaker 2: sectors US have tax efficiency structures, so when they come 33 00:01:26,520 --> 00:01:29,360 Speaker 2: and see us. For example, it's often that certain sectors 34 00:01:29,360 --> 00:01:31,880 Speaker 2: are showing a loss from a tax perspective, but when 35 00:01:31,920 --> 00:01:34,120 Speaker 2: you beck out certain private costs or other costs that 36 00:01:34,160 --> 00:01:36,480 Speaker 2: are in there, they actually are showing a profit. So 37 00:01:36,640 --> 00:01:38,160 Speaker 2: there's a few complexities within. 38 00:01:38,080 --> 00:01:41,480 Speaker 1: Those those losing money. How does that dovetail into sales 39 00:01:41,520 --> 00:01:43,560 Speaker 1: and demand for sales of businesses? 40 00:01:44,560 --> 00:01:46,360 Speaker 2: Yeah, good, good question. So I did a bit of 41 00:01:46,360 --> 00:01:49,880 Speaker 2: analysis before before I came on. So at the moment, 42 00:01:49,960 --> 00:01:52,760 Speaker 2: still ninety percent of people who are coming to see 43 00:01:52,800 --> 00:01:55,400 Speaker 2: us are making a profit. So it's approximately one in 44 00:01:55,440 --> 00:01:58,040 Speaker 2: ten are showing a paper loss. It's the sort of 45 00:01:58,280 --> 00:02:00,000 Speaker 2: ratio we're seeing the wright, which which is a good side. 46 00:02:00,160 --> 00:02:02,720 Speaker 2: So we've still got what we're seeing. Ninety percent of 47 00:02:02,760 --> 00:02:05,200 Speaker 2: small and medium sized enterprises than New Zealand are still 48 00:02:05,240 --> 00:02:06,840 Speaker 2: making a profit when they come and see us and 49 00:02:06,880 --> 00:02:08,359 Speaker 2: want to put their business on the market. 50 00:02:08,600 --> 00:02:12,600 Speaker 1: Good good insight. As always, Chris appreciated ABC Business Sales Boss. 51 00:02:12,600 --> 00:02:15,480 Speaker 1: For more from the Mic Asking Breakfast, listen live to 52 00:02:15,600 --> 00:02:18,680 Speaker 1: news talks it'd be from six am weekdays, or follow 53 00:02:18,720 --> 00:02:20,280 Speaker 1: the podcast on iHeartRadio.