How to Enhance Your Trading Company’s Profits

There are several ways in which you can enhance your trading company’s profits. In today’s article, we will be focusing on those ways, in which you can grow your trading company’s profits. And without further ado, if you want to enhance your trading company’s profits, you need to:

  1. Minimize the operating costs: there are several ways in which this can be done. For instance, rather than fueling the company’s executives’ cars, you can have them cater for their own fuel costs. Or if you feel that you are paying your employees for hours they haven’t worked, you can opt to set up a ‘clocking in’ system, to ensure that you are able to track the employee’s hours well. The ‘clocking in’ system can then be linked to the payroll system, to ensure that the workers can see how their paychecks are arrived at. The said payroll system can in turn be linked to the employees portal. The portal in question would be modeled along the same lines as the Nordstrom employees website. What Nordstrom has is an arrangement where its employees can, at any given time (and from anywhere) go to the Nordstrom employees sign in page, log in, and view their paystubs – complete with the numbers of hours worked. You can have a similar system for your trading company employees. Other costs you can cut include those related to power consumption, those related to space/rent and those related to stationery… to name but a few.
  2. Improve your marketing: the objective here is to get new markets for your products, while also tightening your grip on the markets you already hold.
  3. Find cheaper sources of merchandise: if you can find cheaper sources of merchandise, while maintaining your old prices, it would (naturally) mean that you would be getting higher profits. But in your search for cheaper merchandise, you must not compromise on quality.
  4. Minimize the financing costs: trading companies are usually run using borrowed money. When you borrow money, you incur financing costs — because the borrowed money has to be repaid with interest. The most important thing here is to ensure that you minimize those financing costs. This a matter of building your credit profile, to ensure that you can be lent money at lower interest rates. It is also important to shop around, comparing the interest rates offered by various financiers.  You should ultimately settle for the financier offering the lowest financing costs.

How to Minimize Employee Fraud in a Trading Company

One of the main reasons as to why trading companies fail is employee fraud. Therefore, if you want your trading company to do well in the long run, you need to put in place measures to minimize employee fraud. Your goal should actually be that of eliminating employee fraud altogether. But if that sounds like too lofty a goal, you can opt to — at the very least — try to minimize employee fraud. And in that regard, if you want to minimize employee fraud in your trading company, you need to:

  1. Hire honest people: so this is a question of undertaking proper background checks, before hiring people. You need to ensure that you don’t hire folks who have a track record of being fraudsters. You can weed out such individuals through proper background checks.
  2. Educate your employees on the need for them to avoid fraud: so this is a question of getting them to see the bigger picture. Getting them, for instance, to appreciate that if they defraud the company, it will fail – and they will end up being jobless.
  3. Put in place deterrence measures: these would include proper accounting and audit systems, through which you can detect employee fraud. You can also have CCTV and other monitoring systems (including human ‘observers’), to further minimize the possibility of fraud in your trading company.
  4. Pay your people well: the objective here is to get reduce the incentives for fraud. For all other factors being held constant, well-paid employees are less prone to fraud than ill-paid employees. To ensure transparency in the way you pay your employees, you can set up a web-based portal (akin to Lowe’s portal, at www.myloweslife.com) through which your employees would be able to view the calculations that lead to their paychecks. You also need to consider paying bonuses to your employees so as to inculcate a sense of ownership in the trading company. This will further lower the possibility of them engaging in fraud.