The goWholesale Blog

Ahhh the Almighty Company Card….

December 28th, 2007

"With great power comes great responsibility," a great man once said… that great man was none other than Spiderman’s Uncle Ben. My apologies for using the word "great" 4 (count ‘em) times in that sentence. Regardless, the statement is true and applies in business as much as anything else.

Many businesses will have a company credit card (or two or three or….) that is designed to be used for business related expenses. Now, what your business constitutes as a "business related expense" is clearly up to whomever is responsible for those cards. In general, employees should be able to use their best judgment when using the card but it would be wise to have in place a written policy on what acceptable use of the card is and what is not. Far too often employees get themselves into trouble by using the company card for personal expenses but the businesses get themselves in trouble by not clearly drawing the line. So by having the rules in place and easily accessible, you should be able to avoid any messy situations.

Here are some things to think about:

Come up with a clear definition of "business related expense/purchase."
Authorize only those who absolutely need to use it.
Keep accurate records of expenditures by examining the monthly bills–if anything seems suspicious, address it immediately.
If you allow things such as "business lunches" to count, and you find your employees are abusing this, place restrictions on the number of lunches per month or perhaps the types of restaurants these lunches can take place.

We’d all like to believe our employees are perfect little angels but the truth is that no matter how nice and honest they are, it is a part of human nature to push the limits and perhaps abuse privileges. So take a moment to make sure your company credit card is in good hands (or at least is protected from the bad ones) and you will save yourself a lot of time and money in the future.

Posted in Finance and Accounting | No Comments »

Ways to earn extra cash for your business

December 19th, 2007

If you are a business owner you are probably always keeping your eyes open for ways to make an extra buck. Here are a few ideas you may not have considered.

1. Enter contests for businesses: Sounds a bit strange right? But it is actually a viable way to get some cash for your business. Many large companies are now looking for "the next big thing", and run numerous contests to find it. For example, Richard Branson (owner of Virgin Atlantic Airways) has given large sums of prize money to the Best Entrepreneurs in the past.

Additionally, if your business is chosen as a winner of one of these competitions, you might even find that the sponsor gives you a manufacturing deal, or similar incentive. For more details and examples, just do a quick search on Google or similar for "business competitions".

2. Get Sponsored: This may seem difficult at first glance but the rewards are worth the effort. Traditional advertising can be expensive so more and more businesses are taking this route. Corporate sponsorship involves advertising a company’s services in return for payment. This can come in a variety of ways for example, if your business is a bathroom accessory supplier and your website is getting a lot of traffic, you might find that a tiling company wants to pay to advertise on your website. Or if you manufacture flowerpots for gardens, you could advertise a certain brand’s fertilizer or similar. There’s a host of options available here, so look at what business complements yours, and consider sponsorship or even an affiliate partnership.

3. Establish a line (or lines) of credit: By establishing a line of credit with suppliers and banks you will be able to free up some extra cash. Lines of credit allow you to make smaller payments over a longer period of time and if you are responsible with them, will also earn you the trust of your suppliers and/or banks.

Finally, you could also have a clearance sale of old stock, or offer family members shares in the company for investment. Take the time to make some inquiries, or speak to your financial adviser and brainstorm some more ideas.

Posted in Finance and Accounting | No Comments »

How to Save Money on Shipping Rates (It’s Easier Than You Think!)

December 18th, 2007

There’s no doubt that for online retailers, shipping costs are one of the biggest expenses. And with oil prices rising, they’re not getting any cheaper. But that doesn’t mean there isn’t money for you to save. You just need to be a little creative! Cutting costs on shipping rates is more than just the price you’re paying to UPS or FedEx. There are plenty of other factors involved, and every part of the shipping process should be looked at carefully.

Ways to cut costs

Shipping containers - Could you be using lighter, smaller boxes, or for smaller items, padded envelopes instead of boxes? Heavy boxes add weight and weight adds cost. Many times, switching boxes is just enough to lower your rate down to the next level! Also, shop around for prices on shipping containers to see if you are getting the best rate possible. If you haven’t compared costs in a while, chances are you’re paying too much!

Reshipper boxes - Are some of the products in your inventory already packaged in reshippable boxes? If so, then they don’t need an outer box to ship in - unless a customer ordered multiple items. Over time, that alone could save you a substantial amount of money - both in materials and shipping costs!

Packing materials - Is your warehouse staff stuffing every order with packing materials - whether or not the items are fragile or breakable? There have been plenty of stories of customers receiving T-shirts or pillows packed in a box full of packing peanuts. If that’s the case, then you’re throwing money away. Only delicate or easily damaged items need packing material. You should have your inventory broken down into what needs packing material when shipped and what doesn’t. Doing that could prove to be a big money saver!

Shipping rates - It’s possible that just a quick call to UPS, FedEx or DHL could lower your shipping rates significantly. Give each of them a call to see if you can negotiate better rates! Be sure to match their rates against the USPS to see what works best for your company. You might decide to use different shippers, depending on which region a customer is in. It might just save you a considerable amount of money!

Inventory - Making sure you are always in stock means never having to split up an order and take the hit on two shipments. Having an up-to-date inventory system should do the trick. They’re easy to find and inexpensive too!

Be on top of your expenses

It pays to be aware of your shipping rates and shipments. Otherwise, you might unknowingly be paying several dollars extra for a shipment - each and every time! Make a spreadsheet that divides up the different shipping companies with the different regions of the U.S. and the other countries you ship to. Price out your average shipments to each of the regions. Most companies are surprised to see the difference in prices from shipper to shipper, region to region. You might decide to use different shippers for different regions, or ask one shipper to match another’s rates.

Posted in Finance and Accounting, Starting a Business | No Comments »

If You Want To Keep More Profits, Then Keep Good Records

December 17th, 2007

It should go without saying but surprisingly, many business owners become slack about keeping accurate records. This article just serves as a reminder!

If You Want To Keep More Profits, Then Keep Good Records

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Accounting Software

December 14th, 2007

Accounting is an extremely important aspect of any business. If you are a small business and looking to cut costs, accounting software is the way to go. This article shares how to choose the right program for you.

Choosing Accounting Software For Your Business

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The sales tax riddle…

December 10th, 2007

Regardless of what trade your business is in, one of the hardest things to get right is determining what sales tax you’re going to charge your customers. After all, you don’t want to charge too much sales tax and scare them away; yet at the same time, you can’t afford to charge them too little. Here are a few clues to help you get it right.

How to Determine Your Sales Tax Charges

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What’s all this about “bootstrapping?”

December 10th, 2007

Have you heard the term "bootstrapping" and always wondered what it was or how to do it? This article explains it all!

Bootstrapping Your Small Business

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Here’s One For the Holidays!

December 7th, 2007

As the holiday season is one of the busiest for all retailers, it is also during this season (and particularly in the first few days after the holidays are over) that the risk of return fraud runs the highest. So how can your business avoid return fraud this holiday season? We’ve compiled a list that will help, whether your business is an online one or brick and mortar.

4 Easy Steps to Avoid Return Fraud This Holiday Season

Posted in Articles, E-Commerce and E-Business, Finance and Accounting, Generating More Sales | No Comments »