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:
- 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.
- 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.
- 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.
- 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.
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.
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:
- 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.
- 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.
- 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.
- 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.
- 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.