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  • #999872
    Charlotte-ts
    Member
    • Total posts: 14

    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.

    #1221684
    Dave – FS Concierge
    Moderator
    • Total posts: 2,523

    Lack of customers :)

    #1221685
    Charlotte-ts
    Member
    • Total posts: 14

    Ahhhh yes simple, yet key, and currently my biggest problem!

    #1221686
    bb1
    Participant
    • Total posts: 4,472
    Charlotte-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)

    #1221687
    businesstrade
    Participant
    • Total posts: 210
    bb1, 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

    #1221688
    Charlotte-ts
    Member
    • Total posts: 14

    Hi 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.

    #1221689
    JamesMillar
    Participant
    • Total posts: 1,675

    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

    #1221690
    Charlotte-ts
    Member
    • Total posts: 14
    JamesMillar, 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.

    #1221691
    Charlotte-ts
    Member
    • Total posts: 14
    BusinessTrade, 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 :)

    #1221692
    businesstrade
    Participant
    • Total posts: 210
    Charlotte-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 print :)

    You’re welcome, happy to help :)

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