Kartsport NZ

Attention Clubs & Business Partners:

KartSport New Zealand and all members sincerely appreciate our hard working trade partners, promoters and our wonderful club support, anything we can do to assist all parties to manage the COVID-19 challenge we will.

Feel free to message us in relation to any assistance matters:

Finance, Govt support packages: KartSport Finance: Treasurer and VP Brent Melhop,
Health & Safety: Executive & Risk Management Leader Shane Sampson,
IT & Systems Optimisation: Executive Dee Workman,
Competitions Manager: Warrick Parkes
Administration: Jeanette Smith Contact Details HERE
General Management, Marketing and Governance: President Graeme Moore

NOTE: Conditions, processes and policies are changing by the minute, information contained here is up to date to the best of our knowledge and work load.
KartSport Health & Safety and associated information is our number one priority

Income / Wage Support:
Going to be tough for us, all even our patron Scott McLaughlin is stuck at home using dinner plates as practice steering wheels and sim racing to keep himself sane!

The Government has provided a wages subsidy for people affected by COVID-19 and we suggest that you strongly consider applying if you have not already done so. The subsidy applies to Employers, Contractors, Sole Traders and the Self Employed and payments appear to be made within days.

The Eligibility is Simple

You are a NZ Business operating in NZ.
All your staff are legally employed in NZ.
Your business has already experienced at 30% drop in turnover or you are predicting a 30% drop in Turnover
Your turnover loss is attributable to COVID19

If the answer is yes to point 3 then Apply NOW

How to Apply:

You will need to Complete this Form and review the declaration before submission

https://services.workandincome.govt.nz/ess/employer_applications/new

To complete the very simple form you need

a. IRD Number of your business MAKE SURE APPLICATION IS 100% CORRECT. Apparently incorrect or wrong IRD numbers are a key reason for processing delays

b. Your NZBN number. If a company, search for your number on thIe link below

https://companies-register.companiesoffice.govt.nz )

c. Contact details and Bank Account number

d. For your staff (and remember if you are applying for staff, under the Privacy Law, you must get written notice from each employee that they agree to their details being provided to WINZ)

1) First and Last Name

2) Date of Birth

3) IRD Number

4) Employee type (See the drop down menu for less then or greater than 20 hours)

e) Be honest as at a later stage you may well be audited by IRD and or other government authorities

If you need any help please email Brent Melhop KartSport Treasurer at Brent@bkl.co.nz

COVID-19 Government Financial Support:
Most important everyone familiarises themselves with the significant COVID-19 support packages the Government is implementing to assist business and sporting bodies:

Wage subsidy scheme

Subsidy rates

Payment rates under the modified wage subsidy scheme are unchanged from the original COVID-19 leave and wage subsidy schemes. They are:
$585.80 (gross) per week for full-time employees, where full-time is 20 hours or more per week
$350 (gross) per week for part-time employees, where part-time is less than 20 hours per week.

Wage rates for employees _ Updated 27th March 6pm)

Employers are expected to pay their employees:
their usual wages or salary as per employment agreements, OR if this is not possible
If the wages or salary paid for the hours worked are below the amount of the subsidy provided for that employee, employers must pay the employee the full subsidy.
at least 80% of their usual wages or salary, where it is reasonably possible to do so, OR if this is not possible
pay the employee for every hour worked based on their usual wage rates or salary.
Business cash flow and tax measures
Leave and self-isolation support
Help with essential costs
Wider $12.1 billion package
Support for Māori communities and businesses
Government Helpline

Mortgage Assistance and Temporary Loans

The government has announced assistance packages seek help if you meet the criteria

Quick Fire Tax Changes:

Assets under $5,000 purchased after the 17th March 2020 can now be expensed
Depreciation can be claimed on non-residential building from 1st April 2020
IRD can wavier use of money interest on debts form 14th Feb 2020 onwards
In work tax credit minimum hours have been reduced to zero hours
No GST on wages subsidy payments

Landlord Rent Relief:
See the sample "letter to landlord" in the right hand column, a variation of which could be used to seek relief from creditors, suppliers, bank, etc

More Options To Get You Through.
There is absolutely no doubt every business no matter who or what we do will require massive change in our working practices, our people management, our customer offerings and business strategy so lets share some ideas here.

Communicate to staff and contractors:

Be fair but firm in your communications with staff, suppliers, and clients. Do not downplay the significance of the current environment but likewise don't panic. Consider all options from taking unpaid leave, 2-3-4 day weeks to complete stand downs for longer periods. Ensure you see quality HR advice and of course firstly seek the government wage subsidies. Do your best to maintain good staff, you will need them when business comes back. Visit: Work & Income Employer Support Application Details

Adopt Digital Communication Platforms:

Use whatever internet digital communications works best for your team and or customers. Zoom is one of the most cost effective at $30 fo up to 100 attendees.
Also facebook live, Whatsapp

Cut Costs:

Seems obvious but anything and everything you need cut back, cancel or put on hold and that includes any personal items that may have seemed essential but are now luxuries. Yes that’s everything from subscriptions to planned upgrades or enhancements to tools, products etc

Maintain Branding:

Sure cancel or reduce advertising etc but up the PR and social media around your brand values, your customer experiences. Moist of this you simply achieve on Social media with interesting stories and advice that customers can use pehaps even in the Lockdown. Set-up, Driver Traing videos. best to shy away from pushing product but your advice and knowlege can still be promoted.

Systems:

All the systems and processes you put up with or added on in the boom times might be time to be reviewed. Use the downtime to refresh and jejig them

Cash Flow:

Talk with your banker – before they call to talk to you!

Supply Chain:

Minimize orders BUT at the same time be aware of key components/products that may be difficult to source.

Price Product to sell (New or secondhand)

This is not the time to be greedy, best to keep stock moving, be free to arrange credit , time payment where possible to keep stock and services flowing.

Combine Premises & or Businesses:

This is not the time to be proud. Consider relocation if you can to cheaper premises or even joining with another business either operationally and or financially.

Trademe and other selling sites are your friend:

Any stock or plant you do not need, sell it! No matter what it is business or personal there will be those out there with cash and willing to buy but be clever and be realistic, now is not the time to be greedy:

Secret to a great sale: Take the best photos you can, Write fun, amusing copy and “pre answer” the inevitable questions e.g dimensions etc. Lastly, be honest about the item's condition! NOTE: Payment and settlement will be delayed, CHECK HERE

Hygiene & Headspace:

If we have.not got the hygiene and physical message by now we never will but if still unsure of anything please visit: https://www.covid19.govt.nz/ Also remember most of us have never been through a war like situation let alone against an enemy we cannot see so please do your research but only on trusted, reputable government, trade, and sporting sites.

Please refrain from constantly shareing random updates with family or colleagues unnecessarily (Facebook/emaail etc) rather just regularlyreview trusted sites i.e. covid19.govt.nz & KartSport's Health & Safety page

Look Out For Each Other & Stay In Touch:
KartSport is the most amazing of sports, OK we are a little biased but let’s face it not only do we build world champions, we build the most incredible young men and women,who go onto make careers often motorsport related, we provide an outstanding environment for our children to grow and develop with Mums, Dads, Grandparents and more all part of the team and we provide a place for all genders and walks of life to play and compete together as one big family.

Please look out for each other, stay in touch with each, share the love, we will be back on track before you know it.

Stay Safe
KartSport Executive & Management

Maybe Time To Sell Yourself (Your Brand) Digitally?:

Consider dragging a kart into your lounge and cutting your own vidoes, let's face it how many silly videos can you watch on Youtube?
Most kart shop owners and staff are absolute guru's on kart set up, driver skills, and maybe even some head games so why not see what you can do, you might just become a global karting superstar.

KartSport will share the cool and quirky on our Facebook page.with our 10,000 or so followers.

Sample Video HERE

Share your Secrets Online?:

Well not all of them but why not create and share fitness and diet programs, maybe even psychological tools and tricks to not just support your customers under COVID containment but grow your following? Videos don't have to be super slick, just clean and clear. Possinlyregular Facebook Live gym sessions, FB Live tech sessions with live Q&A, hundreds of clever marketing can be shared online.
Checkout Bas Lammers on Facebook and again KartSport will share the best with our 10,000 or so followers:

SAMPLE LANDLORD RENT RELIEF TEMPLATE

Similar wording could be used to seek relief from your creditors, bank etc

Dear (Enter landlord name)

Re: Lease (enter premise address) from (enter landlord business name)

We currently lease the above address from you company and have done so from (enter date). Our lease expires (enter date) and the current monthly rental is (Enter amount) plus gst.

As you are aware the rapidly escalating COVID-19 virus economic concerns and challenges to New Zealand are having a significant effect on many including those of us who make a living from the sports sector. With government and other agencies recent and ongoing decrees to reduce non-essential travel and or event gatherings virtually all sporting events have been cancelled until further notice including those permitted by KartSport New Zealand. Click HERE

This is seriously impacting on business that serves the karting public of New Zealand and we are experiencing an unprecedented drop in income. Drastic measures have been implemented by our company to manage this significant reduction in income and devastating effect on our cash flow including redundancies and numerous cost cutting measures. Our business will struggle to be sustainable unless we can seek supplier, creditor and landlord assistance.

We are now respectfully requesting your understanding and assistance at this critical time by considering extending one or more of the following facilities the following by kindly extending one or other of the following scenarios effective (Enter date i.e. 01 April 2020):

(TRADE Add or remove as you see fit bearing in mind your relationship with your landlord and a logical level of reasonableness)

Extending a 50% reduction until KartSport competition resumes
Extending a rent-free period for the next 6 months
Providing a rent abatement for the next 6 months with abatement to be loaded on monthly rent for the remainder of term
(Enter other options as desired)

We respectfully request your kind understanding and assistance at this critical time by considering extending one or more of the following facilities the following by kindly extending one or other of the following scenarios effective: (enter date i.e. 01 April 2020)

We have operated our business for (enter years), have a strong following and excellent reputation in the KartSport community and fully expect to bounce back with a vengeance in not too distant future and sincerely appreciate your urgent attention to this matter.

Kind regards,

Enter name, and title