Comments (0)

If you have a forklift on your premises, you will need to consider the following points. If you truly answer any of them with “no”, you will want to consider the issue for the safety of your drivers and anyone entering the zone of the forklift travel.

1) Forklift operating area separated from pedestrians
2) Pedestrian access to forklift work areas restricted by barriers
3) Pedestrian walkways clearly marked and provided
4) Forklift in operation signs
5) Mirrors for drivers and pedestrians provided at all blind spots
6) Changes to workplace daily schedule communicated to ALL affected employees for forklift use
7) Forklift and tires suitable for use on all operating surfaces at this workplace
Seatbelt fitted to the forklift and used
9) Seat is in good shape
10) Forklift is on a regular maintenance schedule
11) Forklift is inspected and is certified each year
12) Forklift an appropriate size for the tasks
13) Forklift has a readable load chart
14) Operators understand the load chart
15) Load chart indicate the safe capacity for different attachments and is rated for each
16) Forklift fitted with correctly operating warning devices (horn works, turn signal and brake and reverse lights work, reversing beeper)
17) Forklift has a correctly operating speed control device fitted
18) Overhead cage is fitted on the forklift
19) Forklift operators hold an appropriate certificate for operation
20) Uncertified forklift operators are directly supervised in sight of an authorized person
21) Forklift operators observe speed limits and warning signs
22) Forklift operators receive appropriate training and instruction on all models of forklifts in operation and on workplace hazards and safe work procedures
23) Forklift operators understand the requirement to report any equipment damage and forklift incidents
24) Use a pre-test checklist at the beginning of each shift

If you have answered “yes” to these points, congratulations on a fine job on forklift safety. If you did answer “no” to a few, just make adjustments and introduce the policies to your employees and make sure if you do have visitors on the floor, to make sure everyone knows of the safety policies. Make everyone safe.

Comments (0)

Fair Isaac, the company that develops the formula to determine credit scores looks at the average statistics of consumers and factors that into your score, called a (FICO). According to Fair Isaac the average consumer will have:

One inquiry on their personal credit report in a given year
54% of credit holders carry a balance of less then $5,000 on all debts other then a mortgage
Have access to $12,190 on all credit cards combined

“Now are entrepreneurs, like you, the typical consumer?” I asked one of my clients (J.G.). “No.”, said J.G.. “You will see that as an entrepreneur, we have several more credit needs then the average consumer. So when the personal credit bureaus compare us to the average consumer, our credit consumption is not normal. Which is why your credit score lowered since starting your business.” “That’s not fair” said J.G. My reply, “If you don’t understand how the system works, you’re right.”

Let’s look at J.G.’s situation. He has applied several times with suppliers for various credit lines over the last year. Each inquiry will likely drop his credit score approximately 5-10 points. The credit bureaus as suppose to lump three together and only drop 5-10 for the three, we’ll see if it happens. He also has a $60,000 line of credit available and carries a balance of $42,000. Both the amount of credit and balance are more then the consumer average which can hurt his score as well. This is without looking at anything else in the business or his personal life.

If J.G. had just taken the time to develop a business credit profile and start establishing basic lines of credit in the business name and then slowly build the businesses credit over time, he may never have ended up without the ability to buy the home he and his family wanted.

This is why I have written books and developed products and services with our company, Business Credit Services, to provide an education to the entrepreneur on how to “become the typical consumer again” and “separate your personal and business life”.

Comments (0)

Being a retail consultant, there is a comment many business owners used. It is “I’m not giving away my inventory”. It is most common among store owners that business is in bad shape. It is too bad that most retail owners don’t understand about inventory. Inventory does two things. It eithers makes you money or costs you money.

You need to have sufficient inventory to be profitable. However, having too much inventory is a larger problem than too little inventory.

Too much inventory ties up critical cash for your business. It can also result in more damages to your merchandise. The key is to find the right price to move your merchandise. Slow moving items take up space and cash that could be used for more profitable items.

There are times you have to adjust your pricing strategy. For example, let’s assume your retail price is double your cost. In this example, you pay $10 and it retails for $20. If it is a slow mover or discontinued item, what should be the new price? I would take 20% off for 1-3 months, 50% off and then 75% off. If you have to sell at 75% off, you will sell below cost. Cost should never be a factored in marking down an item.

I can hear you yelling now. I’m not giving away my inventory. You are looking at your inventory from the wrong perspective. Your product is worth what a customer will pay for it.

Using my example, let’s say you sold your product at 75% off. How much did you make on that item?Your answer most likely was a loss of $5.This was based on a $10 cost and $5 retail. That answer is partially correct. The more correct answer is that you made $5.

You took an item that was producing zero and turned it into $5 cash. You can take that cash and space and use it for a profitable item. Many times a business does not have enough cash to buy the needed quantities of the best-selling products. If you take the cash from the poor sellers and use it for good sellers, you will more than make your money- back.

No matter how good a buyer you are, there will be items that don’t sell. The key is to realize this and react before it ties up too much cash and profit.

An added benefit of taking care of your problem inventory is increased sales. You will get customers who will shop your store regularly looking for your markdowns. Many of them will buy your high gross items also. If you take care of your problem inventory regularly, your markdowns dollars will be less.

Inventory is critical to your business success. The key is to take action on the slow moving and discontinued. This will make your bottom line better in the long run.