Since you want to try to deal direct, start by contacting the manufacturer of each product and asking them point blank if they will sell directly to you in small quantities. If they agree to do so, compare the price they will charge to cost you would pay a local distributor.
When manufacturers sell direct, it’s common for them to price products at the same rate as local suppliers. This ensures that the manufacturers don’t compete with the distributor, which is their main sales force.
If going direct to the manufacturer doesn’t lower the price of the product, get a list of suppliers in the area who sell the products you need. Then attempt to work with one of those suppliers who can provide you with numerous products. This way the supplier can lump your orders together, and the minimum quantity orders many give you a better per item cost.
If a supplier doesn’t have direct access to the products you want, ask if the supplier can purchase the products wholesale from larger distributors. This could save you some of the mark up charges.
If you can’t find a supplier who will provide small quantity orders, check into the club type stores such as Sam’s or Costco. Although the products may not be as inexpensive as you want, you pay less than what you’re paying now.
Q. What kinds of business insurance should I be looking at to protect my business and me as a business owner?
A. The primary issue to consider is what types of insurance you feel you need based on the specifics of your business. Considerations such as employees, a physical office location, types of product or services you sell, and many others will determine what types of insurance coverage you need.
You should certainly consider a general liability policy to protect against physical damages the general public might incur as a result of some action by you. Beyond that you may want to consider property and contents if you have a physical location and worker’s compensation if you have employees.
To get a better overview of what you need, meet with a business insurance agent who can make more specific suggestions. Check with your local chamber of commerce for two or three names of members who are business insurance agents.
When considering insurance you should evaluate two benefits insurance provides. The most obvious is to protect you against physical losses such as fire damage or injuries to a person. The second, and often forgotten, is to provide legal representation. If you are sued for an incident covered by insurance, the insurance company will provide legal representation to defend their interests. This doesn’t mean you are totally protected from needing an attorney, but it is an important consideration.
The following are some common types of insurances to consider.
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Homeowner’s (Renter’s) Insurance: If you have a home office consider a “home office” rider. This will cover fire and theft losses of office equipment as well as personal liability if a customer is injured while on your premises.
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Automobile Insurance: If you use your automobile for business, be sure your policy covers the vehicle while being used for business.
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Professional Liability / Errors and Omissions: If you provide personal services such as consulting, consider insurance that will protect you against claims arising from your professional acts.
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General Liability: This covers losses (property and personal injury) caused by you or your employees in the general course of conducting business.
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Property & Casualty: If your business is located in an office or storefront, P&C insurance will protect against fire or theft losses and accidental injury to any person while on your premises.
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Product Liability: If you’re a manufacturer, product liability protects you if someone is injured as a result of your product.
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Key Man Insurance: If you have partners, this coverage can prevent major problems should one of the partners die or become incapacitated.
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Umbrella Policy: This is a general policy with high limit coverage which goes into effect if damages exceed the limits of other individual policies.
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Mandated Insurances: Unemployment and worker’s compensation insurance may be mandated by your state, especially if you have employees.
The above insurances only reflect the most common. Other types may be necessary for your business. It’s important for every business owner to find a knowledgeable insurance agent who understands specific business needs. With today’s litigation problems, it only takes one incident to wipe out a business. Even if you can’t afford to fully insure your business, you need to be aware of potential risks. In today’s business world insurance ignorance is not bliss.
Q.
I have an employee who continually looses or damages
tools that I provide him to use. Can I start
withholding the cost of these tools from his paycheck
if he looses or damages them?
A.
The direct answer is that you probably cannot just
withhold money from his check. Although each state is
different, most have what is commonly referred to as a
“payday” law. In essence you must have written
permission to deduct anything from an employee’s
paycheck other than what is required by law (taxes,
court orders, etc.).
To
make the employee responsible, you should have him
sign an agreement that makes him responsible for the
tools and that authorizes you to withhold payments
from his paycheck for lost or broken tools. Be sure to
contact your state department of labor or other
governing body to determine just what you can and
cannot hold an employee responsible for.
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