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TABLE OF CONTENTS Tips For Keeping Your Head Cool During Times Of Inflation
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Sandra Hinshelwood EDITOR
Business Partner Magazine is issued bi-monthly by Sandra Hinshelwood of Effective Website Marketing
A Business Is As Productive As The Team That Builds It
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How To Identify Economic Trends And Why This Is Useful
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Financial Fraud Detection and Prevention for Businesses
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Successful Serial Entrepreneur Donnie P. Explains How to Start a Business Without Any Money
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5 Tips for an Efficient Supply Chain Management
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Aljon Sampaga LAYOUT/DESIGN
Are Unpaid Invoices Piling Up? Here’s How to Get Clients to Pay
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MESSAGE FROM THE EDITOR Welcome to Issue 53. The year’s midpoint is an excellent time to reflect on your goals, processes, and strategies. Unfortunately, rapidly increasing prices and inflation have already forced many business owners to make changes. We all feel the pressure of inflation, but we mustn’t panic. Eventually, the economy will bounce back, but it is a matter of time. Just take the 2008 recession, for example. There is a lot of data available. So one way to gauge what will happen in the future is to look at this data along with the emerging patterns and trends. Then, listen to the experts and keep up to speed with what is happening in the economy. Use this information to make small changes where required. It doesn’t have to be drastic. Just be aware of what is going on around you. It would help if you also looked internally at what is going on in your business. Keep the cash flowing by chasing up outstanding invoices. Send timely reminders and make it easy for customers to pay. Another area of concern is financial fraud which is a growing problem. Conduct internal audits, review customer profiles and transactions, monitor employees, and ensure training is up to date. Be proactive, and always stay updated on the latest threats, technologies, and solutions that can help. The articles in this issue cover the above points in further detail. The hope is that you can take away a few tips to keep your business running smoothly. Until next time, take care, Sandra
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Tips For Keeping Your Head Cool During Times Of Inflation
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nflation is running rampant across the globe and is creating an economic instability that we have not experienced for years. Prices for food, fuel, and electricity are skyrocketing in Europe and the United States, and people are starting to worry about their future. In addition, inflation has already negatively impacted financial markets, pushing stock prices and the cryptocurrency market to record lows. In turn, this is creating turmoil in the investment and trading community, and people have started panic selling assets all over. We’re here to advise you not to panic and to focus on keeping your head cool. Even though the markets are looking extremely bleak at the moment, there will come
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a time when it bounces back. And in the following guide, we have outlined our best tips for acting smart during these uncertain times.
Focus On Your Long-Term Goals The number one thing to remember during times like this is your long-term investment goals. As an investor, you did not buy stocks or cryptocurrencies to make quick gains but to make a profit in years to come. Therefore, you need to stop looking at the day-to-day developments on the market and keep your eyes on the market potential down the road. Even though prices are falling at the
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moment, they will bounce back sooner or later, and your goal at the moment is to stay calm and collected.
than enough, but if you have long-term goals, a couple of times a week should be sufficient.
Don’t Panic Sell
Try To Make Use of the Bear Market
The worst thing you can do right now is to start panic-selling your assets. Firstly, the risk is high that you will make losses by selling without a strategy. Secondly, panic selling has a negative effect on the markets, making the problem even bigger.
Last but not least, instead of looking at the current situation with dismay and anxiety, try to see it as a possibility. There are many ways to make a profit from a bearish market and rampant inflation.
A better strategy is to re-evaluate your investments, make new analyses, and find new ways to invest with less risk. For example, many professional stock investors move their stock investments to gold and other more stable instruments in times like this.
For example, consider short-selling the markets that are struggling at the moment. You can check out this list of the best stock brokers in the UK to find reliable options where you can short trade stocks and other assets. Also, consider investing in still strong markets, such as the oil and energy industry.
Avoid Constantly Checking How the Market Develops
And don’t forget that a bearish market means you can strike deals that you otherwise couldn’t. By buying stocks and other instruments now when they are on “sale”, you can reap massive benefits in the future when the market starts to turn.
We know it’s easy to constantly check in on your investments to ensure and pray that the market will turn bullish soon. This is not recommended since it will only fuel your anxiety and make the situation even more unbearable. Therefore, we strongly advise you to only check your investments and the market development every now and then. Of course, for some people, once a day is more
Summary All things considered, your main objective at the moment is to try and stay calm. Our economic system is designed in a way that forces it to dip every once in a while, and there is nothing you can do to stop it. So instead of panicking, re-evaluate your strategy.
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A Business Is As Productive As The Team That Builds It
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business is only as productive as the team that builds it. This bold opening statement is supported by the fact that all companies of repute have excellent customer service, invest in product development and demonstrate that they understand the value that each team member brings to achieving the overall brand vision. All these powerful objectives are met through the input of people in the company plus the help of tools such as digital technology, high calibre machinery, etc. People require personal development to become even more effective in all aspects of their
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lives. They also respond differently to the situation or people they interact with. The different behavioural responses are purposely modified to accommodate other cultural normalities for appropriate conduct. In other words, we change to fit in with our environment, i.e., we experience cross-cultural code-switching. So how about in your business? Since people are your greatest resource and the right team is sine qua non for a powerful business, there is room for a specific brand of cross-cultural code-switching in dealing
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with both team members and product/ service branding. Let’s start with the team. If you are a sole trader, then there is value in bringing aspects of your heritage to your business. Ask questions of your parents, friends. Look at the trade history of your country and adapt any successful practices for use in the present day. Your ancestors survived many hardships that now form part of the deoxyribonucleic acid within your business structure. This ‘business DNA’ gives you a competitive edge because it uniquely manifests your ancestry. It worked before; it will work again. For instance, the bartering approach typical of market traders in the souks of Marrakech has been practised from time immemorial. The bartering continues until you physically decide to walk away. This can be applied in the present time to negotiate the lowest possible price before walking away from the deal. This example may appear simple, but that is the point. The simplicity of adaptation allows people to connect what you sell with what they decide to buy. Your brand logo/ message connects their desire to purchase with what you are offering because they relate to you and want to be associated with you. I saw a shirt a few weeks ago and thought it was ok until I saw the logo of a favourite brand, and my perception automatically changed from mild interest to compulsory purchase.
Final Tips Embrace the diversity and inclusion of your team. Connect your product or service with your customers. Adapt your thinking and approach in business to reflect the perspectives of those you are selling to. Some business code-switching is necessary to remain relevant right now. There is no benefit in the false pride of doing what you’ve always done, especially when it’s no longer good for business. Enjoy the transition.
About the Author Malik Muhammad was raised and educated in Jamaica and read law in London. He created The Empowerment Mastery System to influence, help and inspire businesses to cultivate their visions. Malik enjoys vegan cooking and quad biking. He is an after-dinner speaker, event host and convenes empowerment seminars internationally. His latest book COFFEE & CONTEMPLATION: a taste of empowerment is available on Amazon.
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How To Identify Economic Trends
And Why This Is Useful
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he events of the last two years have had a drastic, dramatic effect on economies around the world. Here in the UK, we’re feeling the crunch, with the rate of inflation a long way away from its 2% goal and predictions that a rise to 10% is on the cards. The forecast remains perilous across the board. The British Chambers of Commerce revisited its expectations for GDP growth this year from 4.2% to 3.6%. But what does knowing this information mean? How does identifying economic trends help businesses? And how can individuals make the most of seeing what’s coming?
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What are economic trends? Economic trends are patterns that form in the global financial landscape after influencing factors make an impact. These could be patterns that develop after a sudden rush to buy a certain commodity, such as the demand for lithium in Australia. Or it could be patterns that emerge after a huge event, like a global recession. Once the patterns that emerge are identified, a trend emerges. For instance,
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• • • •
Unemployment Economic growth and decline Gross domestic product Inflation
These are the key factors that affect the economy. How much our produce is worth, how high inflation rates and unemployment levels are, and major economic issues like a recession all have a significant impact on an economy. This is why a lot of the talks about trade after Brexit have centred on how the UK’s economy will be impacted. It’s also why the cost of living crisis centres around high inflation levels.
in a recession, there’s typically a downward trend before economies recover. If these things happen several times, it’s possible to predict how the economy will behave if these events happen again.
Why is analysing economic trends useful for individuals?
What are the influencing economic factors?
On an individual level, it can be difficult to work out how identifying the economic trends – and understanding the influences on the economy – can be useful. After all, these are huge factors that can feel a world away from the everyday.
We’ve already mentioned some examples of what the influencing economic factors could be, but here’s an overview of the ones you’re most likely to come across:
But there are industries and job roles that individuals work in that regularly rely on economic trends. For instance, people who trade on the markets will need to be across
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all the trends of the moment. They must predict what’s coming up in forex or commodities in order to make a profit, using things like CFD trading to see a return on investment by going short or long.
the figures and adjust what they expect based on the changing trends in the economy.
Why is analysing economic trends useful for businesses?
For instance, in the years following the 2008 recession, businesses had to look at how profitable they were. Some businesses reinvented themselves, others folded. There were restructures and changes in management in order to adapt to the downward economic trend.
Like individuals trading on the markets, businesses can make predictions that help to forecast profits. They can also estimate
So, whether you’re an individual or a business owner, it’s worth keeping up to speed on what’s happening in terms of the economy.
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Financial Fraud Detection and Prevention for Businesses
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t’s no secret that financial fraud is a growing problem, with banks and businesses going almost completely digital. It affects banks and financial institutions directly in terms of credit losses and reputation damage. It also affects businesses indirectly through fines and customer loss.
you can take to protect your customers and your business from financial crime, anti-money laundering (AML), and cyberattacks.
With the advanced technology used, we are seeing fewer examples of digital security’s limitations and some great steps towards improved security for the consumer. If you are a business owner, here are some steps
USING A MULTIPRONGED APPROACH
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Be Vigilant to Detect Fraud Early
Companies should conduct internal audits and review customer profiles and
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transactions. They should also monitor employee behavior, and use third-party monitoring services. This will help you monitor activity across all communication channels between customers and employees.
BE PROACTIVE Make sure all employees understand the importance of being vigilant about detecting fraud early. This will help them report any suspicious activity immediately.
ALWAYS STAY UPDATED You must always be prepared for the next step by staying informed about fintech threats, trends and prevention solutions. Networking and consulting with experts regarding financial fraud and financial crime risks are highly recommended, especially for understanding new regulations.
Automate Fraud Mitigation The digital world is growing at an incredible rate. It’s now estimated that almost half of all consumers use the internet daily. Fraudsters are taking advantage of this trend. They are creating fake websites that look like legitimate ones. This is used to collect personal information from
unsuspecting consumers. They then use this information to commit identity theft and financial fraud. Companies will need to automate their fraud mitigation processes to combat these activities. This includes automating the process of identifying fraudulent sites. This needs to be done before they can harm your brand or customers’ identities.
Develop a CounterFraud Strategy The number of fraudulent transactions increases every year. Unfortunately, this makes it harder for companies to detect these fraudulent transactions early enough. You can take several steps to develop a counter-fraud strategy. These include:
AUTOMATE AS MUCH AS POSSIBLE You can reduce the amount of human error involved in detecting and preventing digital fraud by automating as much as possible. This also helps reduce costs associated with labor and training. It will help your business stay competitive in the marketplace.
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DEVELOP AN EFFECTIVE MONITORING SYSTEM An effective monitoring system allows you to spot potential problems before they occur. It will help you fix them before too much damage has been done. This can also allow you to identify issues before they become bigger problems proactively.
USE ANALYTICS TOOLS Analytics tools can help detect trends within your data. This will help you use them predictively rather than reactively.
End-to-End Fraud Prevention Fraud detection and prevention should be an integral part of digital business practices. This includes prevention, detection, and investigation.
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NICE Actimize end-to-end fraud prevention tools are efficient. It can deliver the complete spectrum of data analytics capabilities across all industries. It helps uncover fraud due to its ability to combine machine learning (ML) with big data analytics. It also uses advanced behavioral analytics and user behavioral profiling.
Conclusion Looking ahead, for sure, we will continue to see the rise in data breaches, cyber-attacks, financial fraud and crimes around businesses. However, hopefully, with our technologies for detecting and preventing evolving as well, we will be able to implement some great steps towards improved security for the businesses, their owners and their customers.
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Successful Serial Entrepreneur Donnie P.
Explains How to Start a Business Without Any Money
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any people dream of becoming business owners. Perhaps they have a great idea or are exceptionally skilled at something that brings value to others. Whatever the impetus for starting a business, however, an initial lack of funds can be the nail that deflates the tire of the whole enterprise. Serial entrepreneur Donnie P. has over 20 years of experience in starting businesses and mentoring those who dream of entrepreneurship. His book, “How to Catch a Mouse with No Cheese,” addresses the conundrum of starting a business while strapped for cash, and his primary focus is helping uplift others, regardless of their economic status. Donnie is intimately familiar with the process of working through challenges to reach success and encourages aspiring founders to demonstrate grit. “Always stay disciplined, and keep the faith, even though your days will be challenging,” he advises.
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Still, the process of launching a business with little to no money can be as daunting as it is exciting. Donnie offers some actionable items for capital-starved entrepreneurs:
1. Identify Your Target Market According to Donnie, the first step when beginning any new venture is identifying who your client or customer is. After all, you cannot possibly know where to focus your efforts unless you know who the effort is meant to attract. Research your target audience, including demographic criteria like age, marital status, gender, income
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level, education, religion, and race, among others. ”The more research you do, the better off you’ll be,” Donnie says. So, where to start? If your business is already up and running, analyze your current customer base. Who are the majority of your customers? What are their predominant demographic characteristics? This will help you understand your existing strengths to build upon them. Next, Donnie suggests doing a competitive analysis, in which you analyze your competitors to improve your own profitability. Who are their base customers? What sets you apart from them? Is there a way to leverage or update your product to entice your rival’s customers to your business? When you understand your market, you can better develop strategic marketing plans, revise your public-facing content, and improve your product or service. In addition, your revenue will increase once you start reaching out to customers who would benefit from your business.
2. Make a List of Non-Monetary Assets Non-monetary assets include your skills, talents, credentials, and expertise and those of your team members. These assets
are essential to establishing a business’s credibility and prospects for longevity when you’re strapped for cash. In addition, family, friends, and community leaders are often your first stop on the marketing journey. When Donnie started his first business, he raided his dad’s former business space for basic supplies like printers, pens, and chairs. That helped keep his starting costs low. Then, he leaned on his friend who was good with technology, to help him set up his online accounting books. He also went out into the community to speak at local events to meet folks and better understand how he could reach potential clients.
3. Gain an Understanding of Business Structures Many new business owners wonder how they should structure their company. Should one be a sole proprietor or an LLC? What about S-Corps or C-Corps? What benefits or caveats does each of these different structures offer? Having a clear understanding of the different business structures available allows you to anticipate financial obligations, such as taxes and scale your business properly. For example, a sole proprietorship often works well for those who will run a business alone. But, perhaps the greatest advantage of this business structure is that it allows you to try out an idea without much risk.
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Another option is forming a partnership. “The great part about a partnership structure is that it reduces your financial risk. You’ve got someone or multiple people to help out,” says Donnie. “In addition, filing taxes is simple and requires very little paperwork.”
When writing these pieces, remember to stay audience-centered and offer value to the reader. It’s important to understand these articles are not a chance to advertise. Rather, they are an opportunity to showcase your expertise. This builds your credibility and can help drive new customers to your website or social media accounts organically.
Other business structures offer liability protection, capital starting funds, and extensive tax exemptions. Researching which choice would work best for your situation can help you be successful when you have limited funds.
“It takes a lot of time and effort to research, write, and pitch guest editorials, but the payoff can be huge. It’s all about building credibility and getting your name in front of potential customers,” says Donnie.
4. Seek Out Free Publicity
5. Keep Clients First
The good news for business owners who are low on funds is that there are free ways to promote your venture. Creating social media accounts, attending business networking events, and collaborating with like-minded brands are just a few of the ways you can spread the word.
To the entrepreneurs he mentors, Donnie stresses that the client is king. Businesses cannot get off the ground — much less survive — without clients and paying customers. Treating customers and clients like gold can lead to business growth even if you’re beginning a business with minimal finances.
Another targeted and effective way to spread the word about your business and build credibility in your field is to contribute guest articles or op-eds to publications. Research outlets that cover your industry and ask if they would be interested in a guest article or op-ed on a specific topic.
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If someone leaves a bad review or has a problem with your product, he advises addressing the issue head-on. Accept feedback and provide ways to make the customer happy. Perhaps sending them a new product or offering a different one
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would show that you stand behind your business and believe customers have a right to expect the best from you.
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“Customers notice when you try to make things right. It’s not always cost-effective in the short term, but going above and beyond can set you apart from the competition,” says Donnie. “That makes a difference in the long run.” Donnie makes no claims that beginning a business with little to no capital is easy. But he wants aspiring entrepreneurs to know that, with ingenuity and faith, it can be done successfully.
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5 Tips for an Efficient Supply Chain Management
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he ability to purchase is stronger than ever before with the ever more connected world of e-commerce. With millions of products sold daily, the demand to deliver amidst the pandemicinduced complexities of modern-day logistics poses an ultimate challenge to every business. The ability to excel financially doesn’t solely depend on the quality of the product. For the most part, it comes down to successfully optimizing the company’s supply chain. But, what would be a good place to start doing that?
Establish good communication The increasing challenges of global trade consist of data management, sourcing, manufacturing, and fluctuating consumer demand. However, the challenge that prevails by far is operational visibility. Nearly 62% percent of companies have an obscure vision while managing their supply chain, while only 15% have insight into production. Ensuring that all supply chain members have a clear understanding of the messages
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received can ameliorate this burning issue. Furthermore, since good communication is not a one-way street, it helps to encourage the good practice of forwarding messages and thus relegating duties successfully.
Embrace the use of modern technology The only sound solution to combating the complexities of modern-day trading in a digital world is to fully embrace the use of technology to optimize supply chain management. This can be done both by introducing Warehouse Management Systems (WMS), which can be fully automated and by keeping track of all the data, leaving out the guesswork. Another big problem could be that a business is struggling with the management of trade finance. This calls for a digital trade finance solution that allows for a multilingual cross-border system for managing finances while connecting with suppliers. Such a system ensures that a business has a premium custom-fit trading facility and builds firm partnerships and trust while
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being extremely flexible with extended repayment terms.
Focus on employee development While navigating through the toils of manufacturing and logistics in the grand scheme of things, it is easy to overlook the core element of every business, the employees. There is tremendous value in investing in the development of employees. This can be done by including quality assessment, creating training facilities, and prioritizing skills enhancement. In addition, this must be implemented at all levels throughout the company; for instance, top managers can be rotated on their job assignments, and other employees are given a chance for steady succession.
Build firm collaboration with your colleagues The bond that makes any business successful is creating a truthful relationship rich with clear and direct communication between suppliers and customers. It is frequently the case that suppliers can be threatened to be excluded from a partnership however this engenders a great deal of general mistrust and a bad reputation, definitely ensuring a bad long-term strategy for a business.
Favor quality control Due to the increased demand and diversion of focus towards planning, companies often forget to pay extra attention to one
of the most underlying principles of trust, selling, and maintaining a high-quality product. This is where quality control steps in. Whenever a purchasing agreement is made with a vendor, the crucial step is the inspection of the product, whereby the company can return the product if it doesn’t meet the standards outlined in the agreement. This is a fatal mistake for a business, especially if a big order is at stake. Not only does it create a financial loss, but it also costs delivery time and other supply chain management efforts. A good way to ensure quality is in place is to be more proactive when spotting counterfeit materials. For instance, it is estimated that 15% of all spare and replacement electronic parts purchased by The Pentagon are, in fact, counterfeit. The key to overcoming this major flaw in the trading world is implementing meticulous oversight and control. If implemented correctly, efficiency in supply chain management is a gift that keeps on giving. It ensures that good communication is achieved and everyone is on the same page. All of these can be done by successfully integrating technology into business enterprises, allowing for safer, more flexible, and carefree trade finance management. A successful business is truly worth as much as its employees, so developing their skills is crucial for turning them into the company’s strongest links. Keeping strong collaborative ties with the suppliers predicts good long-term success at the basis of which are things like ensuring good quality control.
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Are Unpaid Invoices Piling Up?
Here’s How to Get Clients to Pay
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oes it seem like only yesterday when you were thinking about starting a business?
You probably spent a lot of time defining your target audience and finding the best time to launch. Whatever led you to become an entrepreneur, the important thing is you’re here–the stage where you already have a client base.
Sending too late will make it seem like you’re okay with not receiving payment on time. Some customers could take advantage of this and not pay at all. Of course, some clients might just be forgetful. You can follow up on invoices by sending friendly payment reminders. Also, you can incentivize the process by giving customers discounts for early payment.
Now, at this point, you may have a different set of challenges to overcome, such as unpaid invoices. If you’re wondering how to get clients to pay on time, you’re in the right place. Here, we’ll talk about some of the best tips for getting clients to pay so you don’t always have to chase them.
However, don’t do this if you haven’t crunched the numbers, or you’ll hurt your cash flow.
Invoice ASAP
Believe it or not, you don’t need an elaborately designed invoice to set your business apart from the competition. It might even discourage clients from paying on time if they can’t find the information they need because of your invoice’s design and layout.
If you feel invoicing as soon as possible makes you look too eager, don’t worry. It’s a good practice for small businesses since you want your products or services to be top of mind with clients.
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Follow K.I.S.S. (Keep Invoices Simple and Straightforward)
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Your best bet is always a simple invoice design, which customers can scan fast, noting how much they need to pay and when it’s due.
Even the best customers may forget to pay on time sometimes. Your invoice could have been in their spam folder, or the person in charge of payments may be on vacation.
Now, if you need to update your invoices’ design, there are many invoice templates online that you can use as a guide.
Don’t lose your cool. Call your contact at the company and resend the invoice. Remember, you’re not only asking for payment but also cultivating business relationships.
Consider Recurring Billing Instead of googling how to follow up on an unpaid invoice, it’s better to find ways you can automate your invoicing system. Setting up recurring billing can help reduce forgotten payments, plus it makes it easier for clients to pay for your products and services. The best part is you only need reliable online billing software to make this work.
Be Professional When Reminding Clients About Unpaid Invoices
Now, if, after doing everything you can to get them to pay and they still ignore you, it may be time to establish late fees (if these are not included in the payment terms).
Do You Need More Tips on Minimizing Late Payments? If you’re still struggling with unpaid invoices, be sure to try the tips mentioned here. You may also want to check our other posts for more business advice. Did you like this article? If yes, feel free to browse our site for other interesting content.
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