Reply To: Kia Ora,I own an existing online marketing business that is just pulling small amounts of residual income via Paypal after not operating it since the end of 2018.I have drawn up a business plan for a new business to service the rural community in NZ (mobile repairs, very low overheads etc).For this I am wondering if the best route to go is ($40k start up costs)1 – Register a whole new business, apply for MSD start up help and wage underwrite scheme as a new business and get the remaining finance ($30k) from bank or business lending.2 – Operate under the existing business, forget trying the MSD side of things and either using existing business to get a government backed loan and just go all in as a brand under that business.3 – Register a new business, try get MSD start up, get government backed loan on existing business and that business lend to the new one or become a shareholder in the new one (non controlling interest)At the moment the current position of the start up idea, we have more than enough guaranteed work to start with to easily cover my wages as a sole employee. The existing business will make a couple thousand dollars a month through other side projects over summer too however its cashflow has not been any more than $2k/m for the last 12 months so not the strongest records for it to go applying for finance either.Any advice or nudges in the right direction would be hugely appreciated :)Thank you.


What Andy said and, with regard to the structure options, in this situation I’d recommend having as few registrations and trading structures as possible, noting that MSD funding does not require you to have a new business registration to apply. You only need to be starting a new business, or seeking support for an existing business. These can be satisfied under your existing registration. So option 2 above, but do approach MSD. Other funding lines could also be explored but, as per Andy, you could defer draw down until you’ve got positive market validation. All the best.