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- This topic has 12 replies, 8 voices, and was last updated 7 months, 4 weeks ago by Charlotte-ts.
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November 11, 2019 at 4:44 am #999872Up::0
Hi All,
To support my business Pilgrim Packs, an online eco-friendly travel retail goods shop (via Shopify). I am completing business studies and developing a thorough business plan (used a short 2 pager to get up and running for now). So far I have recognised a few areas of high risk such as cashflow (I’m full-time running the business), manual handling (stock deliveries & storage) and potential reactions to skin care products (even though for now I am only reselling and not manufacturing & have insurance policies from my suppliers).
Low areas of risk are IT security and operational / logistical issues with payment and delivery of goods.
I have all my insurances and have moved from a sole trader to company. Are there other big risks to small business resellers like myself that I have totally missed that you are aware of or have experienced?Greatly appreciate any insights.
November 11, 2019 at 5:55 am #1221684November 11, 2019 at 6:10 am #1221685November 11, 2019 at 8:08 am #1221686Up::0Charlotte-ts, post: 267770, member: 114039 wrote:& have insurance policies from my suppliers).
.Love [USER=49676]@Dave – FS Concierge[/USER] suggestion.
But I am not sure about the statement that you have insurance policies from your suppliers. My understanding is that you need your own insurance policies as well, as you are the retailer, so you are in the firing line if something does go wrong, even if you are just reselling. Someone is welcome to correct me, but say I had major skin issues because of what you sell me, I will be knocking at your door, as the contract is between you and me, and not your supplier. I don’t care who pays and I will be taking you to court as well as potentially your supplier and [USER=49676]@Dave – FS Concierge[/USER] for potentially signing me up (LOL)
November 11, 2019 at 8:36 am #1221687Up::0bb1, post: 267779, member: 53375 wrote:My understanding is that you need your own insurance policies as well, as you are the retailer, so you are in the firing line if something does go wrong, even if you are just reselling. Someone is welcome to correct me, but say I had major skin issues because of what you sell me, I will be knocking at your door, as the contract is between you and me, and not your supplier. I don’t care who pays and I will be taking you to court as well as potentially your supplier and [USER=49676]@Dave – FS Concierge[/USER] for potentially signing me up (LOL)I believe you are correct but I am no lawyer.
My personal understanding is that even if I buy a phone from a retailer, the warranty and liability of the product lies with the manufacturer but always seek professional advice if you’re not sure.
Manufacturer liability for goods with safety defects
The liability provisions of the Australian Consumer Law (ACL) generally apply to a manufacturer that supplies consumer goods in trade or commerce. A manufacturer may be a company that:- makes or assembles the goods
- imports the goods (if the maker of the goods does not have an office in Australia)
- uses its own brand name in relation to the goods
- promotes itself to the public as the manufacturer of the goods
- permits another person to promote the goods as having been manufactured by the company.
https://www.productsafety.gov.au/product-safety-laws/legislation/product-liability
businesstrade.com.au - buy or sell a businessNovember 11, 2019 at 9:02 am #1221688Up::0Hi All, thank you again for your responses it is really appreciated. My apologies I was not clearer I have all my own indemnity insurances etc and worked with a recommended broker to make sure I’m covered. It is in addition to this I have been checking and requesting confirmation of insurance from suppliers. I would absolutely be the first point of call if heaven forbid any issues occur.
November 11, 2019 at 10:46 pm #1221689Up::0Great effort to map these things out systematically – you are already ahead of 90% of others.
My only input is that.the “risk management” process you are mapping out is essentially 2 of the 4 elements of a SWOT review (strengths, weaknesses, opportunities, threats). As per with SWOT, I would consider breaking the risk management down into the two elements being “weaknesses” (internal risk management) and threats (external risk management). They are both quite different – i think most of what you have listed is internal and its certainly a good place to start. Just be aware of the external risks or “threats” as well. Broader economic forces, competition etc. That’s why the SWOT is such a good simple process and it will give you a lot of insight in a very short period of time. Plenty of material on the web to help you. You don’t need an MBA to work through it either.
Best of luck
Helping build better businesses and better lives with expert financial and taxation advice. info@360partners.com.au www.360partners.com.au 03 9005 4900November 12, 2019 at 12:09 am #1221690Up::0JamesMillar, post: 267793, member: 5318 wrote:Great effort to map these things out systematically – you are already ahead of 90% of others.My only input is that.the “risk management” process you are mapping out is essentially 2 of the 4 elements of a SWOT review (strengths, weaknesses, opportunities, threats). As per with SWOT, I would consider breaking the risk management down into the two elements being “weaknesses” (internal risk management) and threats (external risk management). They are both quite different – i think most of what you have listed is internal and its certainly a good place to start. Just be aware of the external risks or “threats” as well. Broader economic forces, competition etc. That’s why the SWOT is such a good simple process and it will give you a lot of insight in a very short period of time. Plenty of material on the web to help you. You don’t need an MBA to work through it either.
Best of luck
Morning James,
Thank you. I have applied SWOT analysis to my marketing in the past and it makes great sense to also apply it here. I think while getting the stock in and website up I have been really focused on what is directly in front of me. Time to look and think bigger, but no need to make it overly complex!Appreciate the share of information and hope you have a great week.
November 12, 2019 at 12:11 am #1221691Up::0BusinessTrade, post: 267783, member: 113709 wrote:I believe you are correct but I am no lawyer.My personal understanding is that even if I buy a phone from a retailer, the warranty and liability of the product lies with the manufacturer but always seek professional advice if you’re not sure.
Manufacturer liability for goods with safety defects
The liability provisions of the Australian Consumer Law (ACL) generally apply to a manufacturer that supplies consumer goods in trade or commerce. A manufacturer may be a company that:- makes or assembles the goods
- imports the goods (if the maker of the goods does not have an office in Australia)
- uses its own brand name in relation to the goods
- promotes itself to the public as the manufacturer of the goods
- permits another person to promote the goods as having been manufactured by the company.
https://www.productsafety.gov.au/product-safety-laws/legislation/product-liability
Thanks for jumping in with additional info! Lesson learned is definitely check with professionals on something so important and to be honest with so much fine print
November 13, 2019 at 9:22 am #1221692Up::0Charlotte-ts, post: 267795, member: 114039 wrote:Thanks for jumping in with additional info! Lesson learned is definitely check with professionals on something so important and to be honest with so much fine printYou’re welcome, happy to help
businesstrade.com.au - buy or sell a businessNovember 30, 2022 at 2:34 pm #1241624Up::0While many business owners have a “gut feel” for strengths and weaknesses of their operation, gathering input from others and formalizing findings is a key component of understanding risk exposure.
Strengths and weaknesses (internal and controllable) may include business planning, succession planning, financial management, human resource practices, core competencies, financial or operational positioning. Opportunities and threats (external and out of management control) may include adverse weather, government regulation, marketplace volatility, shifts in consumer demand or a publicized event in the industry. Monitoring opportunities and threats regularly assures that contingency plans can be implemented quickly when the landscape changes. Think about the best management practices used in your industry as you evaluate your operation’s strengths and weaknesses
Source: SWOT Analysis Tool
- This reply was modified 1 year, 4 months ago by Lahiru Liyanage.
May 5, 2023 at 1:39 pm #1244473 -
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