Running a small business in South Africa can be a difficult thing with so many different types of risk out there.
While some of these potential hazards can complicate things, Santam understands that the more a business owner knows the better for his or her business.
At Santam we understand that the world of risks can be confusing. That is why we've identified some of forms of risk facing South African small businesses specifically as well as some practical tips to help you manage those risks.
How to manage your business' physical risk
Buildings (or your business premises) often constitute the most common type of physical risk. According to Santam's claims records over the past three years, claims as a result of wind, fire water, hail and snow damage are the most common types of claims for businesses.
As a business owner, you can manage physical risk properly by ensuring that the gutters on your premises has been cleaned (especially in winter) and that hazardous materials (such as acid, gas, flammable or poisonous materials) are stored far away from areas where it could cause damage. You can also make sure that your employees receive adequate training to handle these materials properly.
How to manage risks related to your business' location
It's always a good idea to know exactly what risks your business faces as a result of its location. You can make china company verification online if you need.
If, for example, your business is located in an area where a number of buildings have been erected in a flood-plain, you must consider the risk associated with it and ensure you get the appropriate insurance cover for your business.
Enforcing the safety of your business premises by ensuring you have proper railings, slip-proof floors, an alarm and other anti-crime measures, can help reduce your business insurance premium, regardless of where you are located.
Some technological risks to consider
According to Santam's audit and forensics team, technological risks are becoming the common cold of today's business world. Technological risks can include anything from losing your customer data to data fraud and theft of information.
As a business owner, you have a responsibility to protect your business' technology infrastructure as well your clients' contact details and personal information. You can ensure that you have a back-up of all your computerised information by making sure your employees have been trained to back up your business' data on a separate device such as a CD, DVD or hard drive.
If, for example you lost internet access for the day, would your business grind to a halt? Make sure you have an information technology specialist on standby to assist you in the event of temporary setbacks like these.
While risk is always going to be a factor in your life as a business owner, being aware of the risks facing your business can go a long way in helping you to protect your livelihood. We hope that these practical tips will help you as a business owner reduce your exposure and minimize the impact of unforeseen events.
In an earlier video, we talked about how to narrow down a list of potential suppliers to a select group of highly qualified candidates.
Now go ahead and contact this short list. This starts the RFQ (request for quotation) phase. The feedback from this initial contact should allow you to further narrow down the list to the top 2 or 3 based on pricing and non-price attributes.
The next step is to validate if the suppliers are legit. In my opinion there are two essential types of verification.
Type One is the Factory Audit. This is to verify that the supplier has a quality control system in place and they have the production experience to supply you with the goods they say they can make for you.
Type Two is an Operational Audit or Due Diligence. This is to confirm that the supplier has a good reputation and is financially strong enough to stay in business long enough to complete your order. In other words, they are not likely to disappear with your initial payment.
There are professional service providers available who conduct these types of verification at very reasonable prices. I highly recommend you engage professional support if you don't have the skill set in-house to audit factories in China on your own. Contact me and I would be happy to recommend the 3rd parties I use for verification. But for your reference, here are some other tools you can use on your own or in conjunction with those 3rd parties.
It doesn't cost you anything to ask for references. If a supplier can't give you a few happy clients to visit with…this is a big red flag.
Confirm that you have the right to visit the production line and check on your order. If they come up with a bunch of excuses why you can't visit, it either means they don't have the ability to produce your product and are scared that you won't like what you see if you visit or it could be as simple as that they are a trading company and worried you will cut them out of the supply chain once you realize they provide little value. Speaking of trading companies, sometimes, especially if your order is small, it makes sense to use them, but I hate trading companies that say they are the factory when really they are just brokers.
Ask to see the suppliers Quality Control Manual. If they don't have an ISO compliant, written quality management system…run away. If you want to see what a Product Quality Manual looks like, you can check out china company verification at the link below:http://www.cnbizsearch.com/search/cc/
Having verified that your suppliers are legit, the next step, and our next video, deals with negotiating the price and then moving into production.On that note, as always, I sign off-wishing you successful sourcing in China! And if you found the information in this video useful, consider returning the favor: subscribe to my YouTube channel, hit the "like it" button and post some comments. Or check out my blogs and monthly newsletter. If you have any questions, feel free to reach out via Linkedin, find me at the China Sourcing Academy or visit my company's website.
Credit risk in China means the country will find it very hard to grow. Global credit ratings agency Fitch Ratings has warned that the extent of china credit could make it very difficult for the country to grow its way out of excesses as it has in the past. The comments suggest tougher times ahead, which could impact on businesses.
Over the last decade China has grown at an impressive rate making it an attractive prospect for firms worldwide. However, the report from Fitch Ratings found that the ratio of credit to GDP now stands at 200 per cent, leading to the agency predicting muted growth.
Speaking to the Telegraph, Charlene Chu, Fitch Rating's senior director in Beijing, said, "The credit-driven growth model is clearly falling apart. This could feed into a massive over-capacity problem, and potentially into a Japanese-style deflation.
"There is no transparency in the shadow banking system, and systemic risk is rising. We have no idea who the borrowers are, who the lenders are, and what the quality of assets is, and this undermines signalling."
China's credit bubble could affect British businesses operating in the region. Ensuring that suppliers and customers are regularly checked for stability and creditworthiness is key for maintaining a strong supply chain.
Graydon's International Credit Risk Assessment Monitoring services enables businesses to keep up to date with trading partners'current situations. The latest credit information is automatically added to a client’s database allowing them to monitor critical events and rating changes. Additionally, email alerts are sent the second new occurs so businesses can rest assured they will be well informed should risk emerge.
Many UK businesses have offset European losses due to increasing demand in China and other fast-growth nations but it is vital for them to remain cautious and alert for changing market conditions.
Looking for an electric scooter in china? Apart from the obvious size of an electric scooter vs. electric bike, did you know that there are big differences between these two travel devices?
Electric scooter china. Let us break it down for you. Electric scooters are not allowed on city bike paths. On average, electric scooters weigh more than 200 lbs, while electric bikes are between 40 lbs – 55 lbs depending on the brand and battery size. This might not seem like a big deal to you, but also consider this. Say you travel 30 km away from your home and murphy's law hits and your electric scooter battery goes dead. Now what? You can't pedal an electric scooter home. In fact, you'd be hard pressed to pedal it to the end of the street. Pedals are installed as a technicality so the manufacturer can have his electric scooter skirt around the "electric bike" bylaws. Don't believe us?
Ask any e scooter china manufacturer why do they include pedals when you can't pedal their electric scooter any distance, let alone back to your home. Electric bikes on the other hand are very different. If the battery goes dead for whatever reason, you'll be able to pedal home, just like a regular bike. Electric bikes are really a three-in-one bike: you can pedal them like a regular bike, or have assisted pedal power or just turn the throttle and go, without any pedaling. Also, were you aware that the majority of electric scooters have batteries that are very hard to remove and recharge inside your house or garage? Yup. You'll likely end up running an extension cord to juice up the electric scooter nightly. Electric bikes on the other hand have portable batteries that can be easily removed and carried into your residence with one hand. Simply plug the battery in and 4-6 hours later, it's fully recharged and ready to go!
Interested in trying an electric bike for a day? We think like the rest of people that have tried an electric bike for a day, we think you'll be pleasantly surprised too and discover a new thrill of excitement for an electric bike vs. an electric scooter.
