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.

Creating a Business Plan for a Trading Company

There are two key things you need to focus on, while creating a business plan for a trading company.

The operational aspect

Firstly, while creating a business plan for a trading company, you need to focus on the operational aspect. Here, you need to deal with questions like the one as to where you plan to be procuring the merchandise for sale, and how you plan to be selling the merchandise. While dealing with operational matters, you will also need to deal with the question as to how many employees you will need for the trading company, and the basis on which you will be engaging them. While dealing with these operational issues, you will also find yourself having to tackle the ultimate question — as to whether the trading company you have in mind is viable or not.

The financial aspect

Secondly, while creating a business plan for a trading company, you need to focus on the financial aspect. Here, you need to deal with questions like the one as to how much money you will need to establish the trading company, and how exactly you will be deploying the capital. It is also while dealing with the financial aspect that you will have to tackle questions like the one as to how much money exactly you hope to make from the company. Further still, while grappling with the financial aspect, you will need to deal with the question as to how exactly you plan to get the required capital. Can you, for instance, finance the business using your own resources? If, for instance, you work for a company like Walmart, you can make reference to your Walmartone pay stub to see whether you can finance the company using your salary savings. So you just go to the Walmartone sign in screen, log in, and peruse through your paystubs, to see whether the money in them is enough to finance the trading company you have in mind. Further, while dealing with the financial aspect, you will get to confront questions like the one as to how long it will take for the trading company to break even, and how much profit you hope to make from the company once it matures.

Importing Merchandise for Your Trading Company

In the course of running your trading company, you may find yourself having to import merchandise from time to time. If the merchandise you need for sale in your trading company is not locally available, you’d have no choice but to import it. But as we will see shortly, importing merchandise for sale through your trading company is likely to be a long-drawn undertaking.

You have to initiate the process of importing merchandise by identifying the suppliers from whom you would be importing.

Having identified the suppliers from whom you’d be importing, the next step would be to contact them, and get a quotation from them.

After obtaining a quotation from the suppliers, you can proceed to obtain the funds you would need to finance the deal.

The next step would be that of sending an order to the suppliers, for them to ship the required merchandise to you. It is also here that may be required to transfer the money to the suppliers. Or if there are ‘trust issues’ you can have the money held in an escrow account: from where it would be transferred to the suppliers when you receive the merchandise. Again, it is at this stage that you’d be required to specify the method through which you want the merchandise to be shipped. You can contract a shipping company like UPS or DHL, to handle the shipping aspect for you. UPS, whose staff portal is www.upsers.com is known to be reasonably efficient in handling these sorts of shipments. The company’s staff, who regularly go through the UPSers registration are known to put in quite a bit of effort, to ensure that shipments are delivered on time.

Having made an order for the merchandise to be shipped to you, the next step would be where you bid your time, as you wait for the merchandise to be shipped to your trading company’s premises. Depending on the chosen shipment method, and the distance between you and the supplier you are importing from, the shipment may take days, weeks or even months.

How to Get Reliable Employees for Your Trading Company

Employees play a major role in determining the success of a trading company. It is hard for a trading company to be successful, if it doesn’t have reliable employees. This, in other words, is to say that you have to get reliable employees, if your trading company is to have any chance of success. A good number of trading companies that fail do so on account of employee unreliability. Thus, the question of getting reliable employees for your trading company is not one that you should take lightly. In order to get reliable employees for your trading company, you need to:

  1. Conduct thorough interviews: you need to set aside enough time to conduct interviews, whenever you wish to hire employees for your trading company. The interviews shouldn’t be hurried. The interviews need to be carried out in such a way that, through them, you are able to gauge the applicants’ reliability levels, and ultimately pick the applicants who demonstrate the highest levels of reliability. You need to be sure of someone’s reliability, before putting him on your payroll. If, for instance, you use the Securitas Epaytalx paperless payroll system, which is designed to be accessed online at Securitasepay.com, you need to be fully assured of a person’s reliability, before putting him on that payroll.
  2. Subject applicants to background checks: if you carry out proper background checks, you may be able to weed out the applicants who are obviously unreliable at the preliminary stages.
  3. Subject applicants to aptitude tests: the objective here is to ensure that you only hire folks who have the aptitude to perform the tasks you will be hiring them for. Aptitude is one of the predictors for reliability: given the fact that one is obviously unlikely to be reliable at performing a task that he has no aptitude for.
  4. Use an objective system to rate applicants: this is where you can award the applicants points based on a certain objective criterion. Then, those with the most points would be the ones to be hired. Objective systems tend to be more reliable than subjective systems.
  5. Ask applicants for references: ideally, you should be able to speak to the applicants’ prior employers, to get a clearer picture on their reliability levels.

How to Ensure That Your Trading Company Doesn’t Fail

Statistics tell us that a good number of the trading companies that are started fail within the first two years. As a person who is considering setting up a trading company, you will obviously be keen on seeing to it that your company doesn’t suffer that fate (of failing within the first 2 years). You will therefore be keen on knowing what you can do, to ensure that your new trading company doesn’t fail. That is the concern we will be addressing in today’s article: by highlighting some of the things you can do to avoid failure.

Get adequate capital to start out with

One of the main reasons as to why new trading companies fail is due to financing difficulties. A new business is unlikely to survive cashflow challenges. By getting adequate capital to start out with, you greatly increase the chances of your new trading company surviving past its second birthday. And getting adequate capital shouldn’t be too hard, if you have a solid business idea, and if you are creditworthy. In that case, getting capital may be as simple as going to a financial site – like mypremiercreditcard.com and applying for a loan there.

Get the best possible human resource

Your new trading company is likely to do well if it is staffed by competent people. You therefore need to take the trouble of recruiting the best possible people. To this end, you may need to advertise the positions publicly. Then you may need to go through an objective shortlisting process. Finally, you may need to undertake thorough interviews, to get the very best possible people. Then, having gotten good workers, you may need to train them well, and treat them well, in order to retain them.

Work with reliable suppliers

A trading company can be brought down by unreliable suppliers. You therefore need to do everything in your power to ensure that you work with reliable suppliers. And having gotten reliable suppliers, you need to treat them well, to ensure that they stick with you on a long term basis to ensure the success of your trading company.

Take good care of your customers

Obviously, a trading company is unlikely to survive in the long run if it is unable to take good care of its customers. You therefore need to inculcate a customer-centric culture in your trading company right from the outset, to ensure its long-term survival and success.

Create good operating systems for the trading company

The success of a trading company ultimately depends on the systems it is run on. You therefore need to create good systems right from the outset, and ensure that all things in the company are done as per the systems. With good systems, you won’t even need to manage the company personally. The systems will run the company for you!

How to Identify Reliable Suppliers for a Trading Company

If a trading company is to be successful, it needs to have reliable suppliers. You therefore need to put in a lot of effort, when identifying the suppliers to work with in your trading company. If you end up with unreliable suppliers, your business will suffer terribly. You will soon find yourself being unable to fill your customers’ orders in a timely manner. You will then start losing customers. The trading company will start making losses. Soon it may have to go out of business: all due to lack of reliable suppliers.

One of the most important things to pay close attention to, when trying to identify reliable suppliers for a trading company, is the track record. You are better off working with suppliers who have a track record of reliability. If a given supplier has been reliable in the past, there is a good possibility that he will be reliable in the future too. On the other hand, it is unreasonable to expect a supplier who has always been known to be unreliable to suddenly become reliable upon getting your contract.

Another important thing to pay close attention to, when trying to identify reliable suppliers for a trading company is capacity. So you need to work with suppliers who have capacity to meet your orders. Sometimes you may find a supplier who is indeed very reliable but who, unfortunately, lacks the capacity to do big business. So capacity is an important consideration here. The whole thing is akin to what we see with the double your line customer service — where the company aspires to build capacity to serve all its clients. That is on top of being reliable. So capacity is an important factor here.

Of course, if you come across a very reliable supplier who, unfortunately lacks capacity, you can opt to work with him in building capacity. It may be just a question of arranging for extra financing, and within weeks, the supplier ends up with enough capacity to meet your orders.

Ultimately, it is a good idea to assess the various suppliers objectively, rate them, and in the end be in a position to pick the most reliable ones. In other words, you need to undertake the supplier selection exercise in an objective (rather than subjective) way.

5 Things You Need to Have When Setting Up a Trading Company

A budding entrepreneur recently asked me an interesting question. He wanted me to tell him the one single most important thing you need to have, when setting up a trading company. Surprisingly, I found myself unable to give a straight answer to that question. That is because I know the things you need to have, when setting up a trading company. However, I am unable to pick out one, and elevate it to the status of being ‘the most important thing’. To my mind, all these are things you need to have, and you can’t be able to set up a proper trading company in the absence of any of these things. So I ended up giving him an exposition on all the 5 things you need to have, when setting up a trading company. For the benefit of my readers, I repeat them here.

Firstly, when setting up a trading company, you need to have adequate capital. A poorly-funded trading company will have problems, and it may end up failing prematurely. Capital is one of the key factors of production in these sorts of ventures.

Secondly, when establishing a trading company, you need to find good premises to house the business. You need to figure out how much space you will need, for the trading company. Then you will need to buy, rent or lease such space, to get the business going.

Thirdly, when starting a trading company, you need to have good staff to help you run the business. Don’t ignore this: the success of your business could ultimately hinge on the quality of the human resource you have.

Fourthly, when starting a trading company, you need to have reliable suppliers. So you have to study, to understand how the supply chains work. Then you need to position yourself properly, knowing that the success of your trading company will also depend greatly on the reliability of your suppliers.

Fifthly, when setting up a trading company, you need to have a well thought out business plan. You need to have figured out how the trading company is to operate, how it is to beat the competition, how it is to make its profits… and so on.