The Real Reasons Suppliers Really Matter

Businesses have partnerships and relationships across the industry. Without customers and client, the company isn’t going to be successful. Probably the most important connection is with your suppliers. The reason is obvious, right? They provide you with the resources you need to keep up with demand. Without the right materials, the business would fall flat and have to close its doors. It’s about keeping the supply line open to fulfill company orders.

As true as this may be, it’s not the only reason suppliers matter. Below are four more factors which put them at the top of the food chain.

Risk Prevention

There are a whole host of risks which come with dealing with suppliers. The fact that some don’t keep their promises is one of the biggest ones. Yep, certain organizations will take the money and promise the world yet come up with the goods later. Also, there are unforeseen circumstances and regulatory compliance to factor in too. In short, the wrong supplier can impact the company’s efficiency which can harm output. A quality partner is a firm which understands the risks and has backup plans from A through to Z and beyond. You need a supplier that is accountable and proactive to be successful.

Cost-Cutting

Slashing the business’ expenses is an unavoidable thing. Whether you are in the red or the black, it’s the only thing you will think of for months. The unlucky ones have to focus on cutting costs for years. Suppliers hold power in the palm of their hands. A deal can be expensive if the firm needs packaging for fireworks or other hazardous materials. The majority of companies will charge a pretty penny, and it’s money you can’t afford to waste. The good news is most are open to negotiation. If you promise to buy a big shipment or use them for the long-term, they will reduce the price per unit. Also, being punctual takes away from the return and overhead costs.

Brand Association

People never used to care from where their products came as long as they arrived. Today, the culture is entirely different as green packaging and helping the planet matter to customers. In fact, this is true to the point that they will choose a business with the same ideals. To secure their custom, you have to prove your dedication to the cause, which isn’t too difficult. However, a bad supplier can ruin everything. If they are notorious for harming the planet, this reflects on your brand. Inevitably, customers will bounce.

Small World

The world seems huge yet there are only six degrees of separation between people. In business, it feels as if it isn’t as much as six. Everyone has contacts and aren’t afraid to use them to their advantage. Sadly, spiteful people will communicate with their “friends” to tarnish your reputation. As petty as it sounds, it has happened a million times before due to a bad relationship. Although tensions rise, you should be careful about bad mouthing a partner as they may do the same to their peers.

Can you see the importance of your suppliers now?

 

4 Money Mistakes Every Business Owner Makes

Being your own boss can be exhilarating, until the moment you realize it can all go horribly wrong at a moment’s notice.  Maybe this is because you haven’t managed your money, or maybe it is because you haven’t protected your family in the case that something happens to you.  Either way, money mistakes can come back to cause significant sorrow for business owners – especially if they are ignored.

Why does this happen?  For many business owners, they are too caught up with just trying to keep the lights on to even think about long-term planning.  For others, it is a false sense that things will always stay the same.  The reality is the downturns and accidents happen and if you haven’t prepared yourself and your family then you are doing both a disservice.

With that in mind, here are four money mistakes every business owner makes.

Mistake 1: No Insurance

While this might seem like an added expense, the reality is that when managed correctly, insurance is an excellent way to manage risks.  The key is to manage the cost of your premiums with the coverage you are getting.  Doing so help you maximize your coverage levels while minimizing how susceptible you and your business are risks.

Policies you should consider for your business include general liability insurance and ‘key man’ insurance.  The latter will cover the company and maybe your family in case of anything were to happen to you.  This is important as most small businesses rely so onheavily on the owner that it would be almost impossible to continue operating if something happened to them.

Another way this can help is that it will provide added security for your family as the insurance payout can help to cover some of the uncertainties that will pop up if you are no longer in the picture.  Not to be morose but this is something that all small business owners should think of, but few rarely do.

Mistake 2: No Budget

Let’s face it, money can go out the door much faster than it comes in the door.  Even when times are good it can feel like you are bleeding cash and for this reason, you need to set up a budget to help manage your business.

It doesn’t matter if your revenue and expenses are ‘predictable’ or not, the key is to start tracking your revenue sources and your expenses and then see how the two are related.  Not only will this help you to better manage your costs, it will help you to identify the relationship between your revenues and the expenses required to deliver to your customers.

Another benefit of having a budget in place is that it can help to improve how you do your pricing.  Gone are the days of picking a number out of thin air as you replace your pricing with data.

Mistake 3: Not Preparing for Emergencies

Just as with your personal finances, you need to prepare your business for emergencies as well.  This could be a sharp change in the economy or in your local market, a personal injury claim, or even a motorcycle accident while you are enjoying some free time.  In the case of the latter, you might want to reach out to a lawyer who specializes in such claims, such as https://westcoasttriallawyers.com/practices/motorcycle-accidents/.

But even if a lawyer helps you, the question should be whether you have helped your business?  The answer to this starts by being prepared for emergencies.  As mentioned, having insurance can help but it is not the only answer.

What can you do?  It starts by making sure your business is on the firm financial footing and then setting aside some of your profits for a rainy day.  Beyond this, you also want to establish a relationship with your bank as the reality is that it is very hard to get credit when you need it, so you are better off getting it in place when times are good.

Mistake 4: Failing to Reinvest

There was a time when the steel industry in the U.S. ruled the world. However, boards of these major corporations failed to reinvest at a time when their foreign competitors had no choice but to build new mills.  Fast forward 50 years and the domestic steel industry is a shadow of what it once was.

The lesson here is that you either reinvest in your business or you die.  Sure, you might not be running a steel mill worth hundreds of millions of dollars, but this is something you should take to heart for your business.

This is not to say that you need to keep pouring money into your company without a return.  Instead, invest in those priorities which will help your company grow.  Doing so will help to make sure your business is on a strong footing for the future.

 

Why Do You Need to Change Strategies – Forex Market

Trading experts usually look for a better edge and a better strategy to trade the market. They consider trading strategy as the main key to success. Why do you think they consider it? Basically, strategy provides a framework for successful trading. If the trader has a proper strategy he will be able to decide the money management techniques, entries, and analysis accordingly. The strategies are profitable only when the trader stays consistent with the rules. This is why traders must pick the right strategy and remain consistent with it. Anyway, if you commit to a less productive strategy you wouldn’t be able to reach your potential. Most of the time, changing and updating the strategy will offer better results. If you don’t see any changes you may have to change the strategy completely. So, when you should change the strategy?

Learn from your mistake

No one in this world is perfect. As a currency trader, you will always have to face losing trades. But this doesn’t mean you will become frustrated after losing a few trades. You need to focus on the long-term market trend and trade the market discipline. Try to maintain a trading journal so that you can learn from your mistakes. When it comes to spread betting profession, a small mistake can cause significant loss. So never risk more than 1% of your account balance even though you have the perfect the perfect trade setup. Managing your losing trades is the most difficult task in currency trading profession. Once you learn the proper way to manage your losing trades, you will never have to worry about your financial freedom.

If trading style and risk management contradict

The risk management methods differ from one trader to another based on the trading style. Some traders prefer higher risks whereas some others are risk-averse traders. Similarly, trading strategies differ according to the timeframes and markets. The risk management method will differ according to the individual’s financial goals and risk levels. The trader’s ability to take risks will have the direct relationship with the risk management. There are different strategies and risk associated differs from one strategy to another.  But the problem is related to risk intensity and trader’s style of trading. For example, there can be a trading strategy that’s perfect for risk-averse traders, but this wouldn’t suit for a trader who loves to take the risk. You should change your strategy if your style and trading strategy contradicts. To remain in the Forex market, having the perfect understanding of Forex strategies is important.

If it is an obsolete strategy

The market of Forex is always changing, you cannot expect the market to be in the place you want it to be. The trends can change or reveres, whatever happens, a successful trader will manage to stay in the market.  So in such instance, the strategies based on the market conditions can be treated as an obsolete strategy. So being a naïve trader you should identify the strategies that are unprofitable and don’t match the current market situation. But it can be pretty hard if you do not know the ways to find it. So in such case, you can check whether it is performing or not. If you can change a few things of strategy, you should do it but the impact on the profits can be high. If you don’t want to damage your profits make sure to study the historical data and other factors that support the strategy.

If it is a confusing strategy

If you pick a strategy that you don’t feel comfortable it may affect your trading journey heavily. You may have to deal with a lot of confusing. How can you manage trading if the trading strategy is itself confusing?  So if you don’t understand don’t think twice to change the strategy that you are currently using.