HelenBeech

BusinessSeptember 8, 2017

How to run a tech business from a lifestyle block in Kawakawa

HelenBeech

She’s done customer support from the school pool, a kayak, the beach and the Twizel RSA. Rebecca Stevenson finds out how Helen Beech went from holding a tech golden ticket to hocking original art from the Bay of Islands.

Helen Beech is the unlikely face of a tech company.

Ducks, goats and the blue-hued paintings she posts to her social media accounts speak to an idyllic farm life. But behind the art and animals is a software business with a history that reads like the parable of the computer program; how a profitable superior product can be swamped by the inferior, and the free. Beech is not obviously the tech type. When called to chat about her businesses, her first mission is beating a hasty retreat from her 16 Pekin ducks in search of a quiet and sunny spot so she can speak without interruption.

Based in Kawakawa in the Bay of Islands, Beech presents like an earth mother. She grows vegetables, her hugely productive hens provide plenty of truly free range eggs, and while she’s not a “prepper” or survivalist, she aims to live off the land and provide for those living around the six acres she calls home. And yet, she came to be the Kiwi face of the music industry’s answer to Microsoft Word. The 45-year-old found herself grieving her dad, and thrust into running his Auckland-based music software company which held the highly-prized rights for music composition program Sibelius.

“Computer Music was my dad’s business,” she says, “I was sort of thrown the phone and they said ‘here you go’. I had seven kids. I was living on an organic farm… I didn’t even own a place.”

Released the same year as Adobe’s pervasive document management program Reader, music composition program Sibelius brought innovation and ease of use to making music in much the same way Adobe captured document control with one program. Developed by British twin brothers Ben and Jonathan Finn, Sibelius allows musicians to write, score and even play back, with realistic orchestral sound, their original compositions. It quickly became ‘the’ music program to have, and had a particular grip on the education industry after the brothers’ targeted Acorn Computers, widely used in UK schools at the time.

Beech says the program is “just like heaven” for musicians. It’s used by professional composers like James Horner who used the program to create the soundtrack for Hollywood blockbuster Avatar, but it’s equally at ease with the at-home musician. The company originally sold Sibelius plus instruments and computers, but over time Beech’s father had whittled the business down to its most profitable bit, Sibelius. And Beech, a trained teacher with a musical bent, took it on.

“My dad told me I would never make any money being a musician, which was funny because I ended up in the music business anyway.”

She sold Sibelius and was customer support from anywhere, including up a scaffold and from the local school pool. The Kiwi company mimicked the (English) Finn brothers’ business model, selling to schools across the country, with Beech running seminars and tutorials at schools around New Zealand. Even today Beech says Computer Music has retained a stronghold in the education sector in New Zealand, with about 90 per cent uptake from secondary schools.

The interface that started it all.

After a few years, she and her partner, Alan Fish, purchased the company from her mum. It wasn’t a software business many would recognise these days. Back then, Beech says, her partner was mostly in charge of logistics – ordering, shipping and organising the boxes of floppy disks that would come from Britain.

“I did the talking,” Beech says.

But the online software revolution was looming. And again, much like Adobe’s Reader, Sibelius faced intense competition from new programs and saw its status eroded by the arrival of online, and free, programs. The tech golden ticket the company held was downgraded to silver, as Sibelius started to be sold directly by its owner. A bricks and mortar retail store has also cut into Computer Music’s market.

But the company’s long relationships with its customers has seen it carve out a space in the modern music composition industry, but now instead of selling boxes of disks it sells code and farms clients for yearly subscriptions. Beech still mans the phone from her farm in the Bay of Islands, but the need to leave her plot of paradise for seminars are fewer these days. Now Computer Music has turnover of about $200,000 a year, but Beech says “we’re plenty tired at the end of the day”.

It’s not her only income. From her bit of land by the Kawkawa River inlet, Beech has now launched another small business based around another artistic endeavour; painting. Beech had joined a painting group in Helensville, unlocking a creative side of her that had fallen by the wayside as babies, and life in general, took over her time. Now she draws inspiration from her home, which she shares with the ducks, hens, one rooster and a few goats – with plans for some woolly mates to join her.

Beech’s acrylic paintings are priced “for everyday people”, and sell on TradeMe for between $300-$900. But how can you make more money from your art other than the original? An invitation to an incubator for Northland artists has seen Beech monetise her work in other forms. Beech’s paintings are now printed onto scarves, which she sells for $60, and she’s exploring other items that could leverage her creativity into cash. Sounds simple doesn’t it? You have a print, you put it on something, and you flog it. But it wasn’t, Beech says. Finding a material that gave a good result once the design was printed on it was a process of trial and error. Eventually, she settled on silk. Then a manufacturer had to be found. Beech says it was impossible to find a New Zealand company that could make them for her, quickly.

Shawl thing: Beech has sold about 150 scarves.

This was a disappointment, she says, as New Zealand made was her goal, but she’s made a pragmatic business decision after failing to find someone here, and the scarves are produced in China. Even finding an offshore manufacturer was fraught. It took months to find a company that could take the art image she supplied, print it onto silk, and get it shipped back to New Zealand within a short timeframe. In the end Beech ended up on the behemoth of buying, Alibaba.

After months banging up against language barriers attempting to source a supplier she was approached by a global silk scarf manufacturer, based in China. Now, Beech can create a scarf design from one of her paintings, and have it ordered, made and in New Zealand to sell in about three weeks. She has three designs for sale, and has had about 150 of them made. Selling them via social media leaves a nice fat profit margin for her. A relatively new e-commerce site has not done as well as she hoped. The mum of seven also sells her art on TradeMe, Beech surmises there’s something about the artificial deadline of an auction that brings out the buyers.

And it’s still a partnership with Fish. “Alan fabricates the boards I work on, which is fantastic and keeps costs down.”

Beech is going back to the artists’ incubator this year, but this time she’s talking about how the scarf sideline is going. “That’s made me realise how much my confidence has grown,” she says.

Challenges? There’s been a few, Beech says. It was her mum who inherited the business, not her, and she “worried” about it. A stint with a business mentor saw a clear succession plan drawn up, and in 2008, Beech and Fish officially took over. Being self-employed has also been a hassle. Her sons, when they were teens, went to live with their dad. Beech says working with the Inland Revenue Department to pay child support with a fluctuating income was stressful. But those days are in the past, with her youngest now 18. Her kids have helped out off-and-on with the business, but there’s been no succession planning for the next generation.

So what are the next steps for Beech? She has her first “big” solo art show coming, she’s working with an Australian author to illustrate a book, she has plans to make more products based on her artwork, and she has got to sort out that website. One thing she is certain of, is that she’s not missing out on anything being so far aware from the action of a city. Beech says all her business is done over the phone or online, and even claims the cell phone coverage is better in the Bay of Islands.

“Being here, and being away from Auckland, means we are way more laid back about everything, we are not so strung up.”

She is mostly on the farm now – and that suits her just fine.


The Spinoff’s business content is brought to you by our friends at Kiwibank. Kiwibank backs small to medium businesses, social enterprises and Kiwis who innovate to make good things happen.

Check out how Kiwibank can help your business take the next step.

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Iceberg business image

BusinessSeptember 8, 2017

Announcing the debut of The Spinoff Business

Iceberg business image

Following on from our hit Business is Boring podcast, The Spinoff is pumped to bring you its newest product, The Spinoff Business. Its editor, Rebecca Stevenson, explains what to expect.

Did you know 362,856 New Zealand businesses have zero employees? There’s an interesting wee one-page fact sheet available from the Ministry of Business, Innovation and Employment’s website. It’s a telling document, and its telling the story of New Zealand business. At its heart is a sentiment I’m sure you’ve heard before – that New Zealand business is the story of small business. But just how dominant small business is in the Kiwi context is glaringly apparent – the vast majority of Kiwi businesses are solo operations. One-man bands.

They are the majority of Kiwi companies, with an incredible 70 per cent of our businesses not even really small, but teeny-tiny. Add in businesses with a slightly bigger operation – one to five employees – and now we’re talking about well over 450,000 businesses out of the total 515,046 tallied up by MBIE in its latest NZ business update.

And yet the public perception of business seems resolutely wedded to the notion of Big Business. Mega Corp, FacelessCorporation.com – this is often how people think about business, but the perception is not the complete picture.

It’s hard to know where this perception comes from, but it’s quite likely from media coverage. Big business is pretty well covered in New Zealand, but business, to me, is like an iceberg. Its big, we can see when it’s doing good (business pays handsomely to promote its good work) and when it’s doing bad, because the business media is telling us. But underneath the water is where a lot of the action happens, mostly unseen. We will spend a lot of time below the water at The Spinoff Business, the new section we are launching today, which I’m very proud to be editing.

We want to talk about the mass of Kiwi business, the men and women who are making, selling and serving markets both home and away. Because while they may be small – or medium sized – their contribution to the Kiwi economy is not. How often do you hear how important agriculture is for New Zealand Inc? Well small business, MBIE says, is responsible for almost one-third of this country’s GDP.

How bout them apples? Part of small business is a primary produce story. Dig a little deeper into the stats and you find almost 70,000 small businesses are in the agriculture, forestry and fishing industries. Companies with less than 20 employees earned NZ $64 billion in 2014. Not bad eh? New Zealand business is eerily close to how New Zealand likes to think of, and portray itself, to the rest of the world. We may be small, but we are mighty, and we are independently minded – with statistics showing a swathe of our small businesses are beholden to no one, and no corporate owner.

Is being small an issue? The OECD seems to think so, pinpointing Kiwi companies’ lack of scale and ability to compete globally as holding back productivity growth, which would lead to greater wealth and wellbeing for all of us. It said in its Kiwi economic survey that while there has been a strong rate of job creation by new firms, meaning our businesses are relatively young, too many not very good businesses live for too long.

So we can’t miss out the ‘M’ in small-to-medium enterprises. We have to be more than small if we want to grow our economy, and we face some unique challenges here in terms of distance from markets. But as evidenced by cloud accounting software provider Xero, it is possible for a New Zealand company, helmed by a Kiwi entrepreneur, to become a legitimate player in a global context. The Spinoff Business is going to aggressively cover the coming economy and the tech industry, with a particular focus on science and research-backed businesses, and who is backing them. We want to see Kiwi companies change the world we live in, and understand how they did it so others can do it too.

Which is not to say we won’t talk about breaking big business stories, or follow what our corporates are up to; we will watch them with interest and when they’re making moves explain why it matters.

We’re not going to be a thoughtless cheerleader for business either – we want to delve into what’s working, and what isn’t. Both for those running business, and the rest of us who consume and rely on New Zealand companies to bring us the goods. For example, New Zealand’s easy company registration regime is often held up as kind of regulatory holy grail in the business world – but is it too easy for companies to start-up, take money and then go bust, leaving creditors out of pocket?

So why business? Here’s where I acknowledge those making it possible – the team at Kiwibank, the sponsors of our section. They work with tens of thousands of businesses too, and want to see how The Spinoff will cover the sector. We’ve worked with them before and loved it, and we’re happy to be doing it again in a long-term way.

Business is not a new frontier for The Spinoff, we’re just going to beef up how much we do. The Business is Boring podcast is regularly number one in the business podcast charts, and is one of our longest-running podcasts. And of course business is already covered here because it inevitably intersects with our lives in myriad ways, day-to-day down to how you watch TV. You can’t avoid it, even if you tried. But why would you?

I am all in for the challenge of producing business stories that reach the quality and insight of the excellent writers, meme-makers, video producers and podcasts already hosted on this site. I’ve always enjoyed trying to make my reporting on industry and business as common as muck – I don’t believe business is an unapproachable monolith. And the opportunities to do fun things with a business bent, like The Spinoff’s cool Policy tool, are extremely exciting.

At this point you may be thinking – OK it’s likely, you’re thinking – who is this chick waffling on about business? I started reading the Economist at age eight, not normal, but hopefully helpful. I’ve been a reporter for well over a decade, I realised recently, but I’ve always loved business. Working in Hawke’s Bay was when I was first really turned onto New Zealand business. Writing business stories, and hanging out with winemakers, was a sweet relief from reporting on the ins and outs of council and crime, although the council’s economic development manager had a sideline ginko biloba business, but that’s another story altogether.

Entrepreneurs are cool! People who make stuff are interesting. I learnt distance is no barrier to dominating a market, and that yep, it is possible to just have a cool idea, and make a business.

I’ve covered a lot of rounds for Fairfax Media’s national business bureau including small business, breaking business news and court cases like that of business bogeyman Mark Hotchin. Business collapses, a weekly personal finance column – I did it all. And I developed a few unhealthy obsessions, which led to some of my more high profile stories including exposés on New Zealand’s shoddy fire safety in high rises and how New Zealand’s charitable sector hides assets to look poor. I love trades, industry, technology and I am fascinated by mining, natural resources and how we balance economic growth with the health of our environment, and people.

But enough about me. This is about you, New Zealand business. I want to tell your stories. Feel free to email me on rebecca@thespinoff.co.nz. And read our first couple of stories, here and here.


The Spinoff’s business content is brought to you by our friends at Kiwibank. Kiwibank backs small to medium businesses, social enterprises and Kiwis who innovate to make good things happen.

Check out how Kiwibank can help your business take the next step.