Protect Your Supply Chain During a Pandemic by Using Automation

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StrategyDriven Tactical Execution Article |Supply chain|Protect Your Supply Chain During a Pandemic by Using AutomationIn 2004, there was a severe earthquake and subsequent tsunami that resulted in profound effects to several Asian countries, including India, Sri Lanka, Maldives, Thailand and Indonesia. These were followed by hurricanes Katrina and Rita in the U.S. as well as the Tohoku earthquake in Japan in 2011. All of these crises foreshadowed a reality that the global pandemic of 2020 confirmed: There are systemic weaknesses in most companies’ global supply chains that must be mitigated. Automation may be one of the most important solutions.

THE TRUTH REVEALED

Just what did these crises show? For one thing, they demonstrated that the just-in-time philosophy that many automobile and electronics manufacturers had adopted broke down in the face of these catastrophes. Because companies only possessed just enough parts and materials for their immediate needs, they were left high and dry when their suppliers had to close down.

Another flaw that came to the surface was lack of visibility. A manufacturer might have had a close working relationship with a STmicroelectronics product distributor, for example, yet they had only a foggy idea of the tertiary vendors who were affiliated with that company. Ultimately, this failure to undergo the long and expensive process of mapping led to greater costs and a loss of transparency when disaster struck.

THE PANDEMIC PRESENTS UNIQUE CHALLENGES

COVID-19 has changed virtually everything, including the way electronics manufacturers operate. Social distancing in a warehouse setting can be difficult, and there also may be COVID-related staff shortfalls that are causing bottlenecks. This is where technology can save the day.

AUTOMATION AND THE SUPPLY CHAIN

Automated assistants or robots never become ill, and they don’t need to adhere to physical distancing or other virus-related rules. A robot can deliver items between workers and can become a tireless assistant to an employee or team. Today’s mobile autonomous robotic cart (MARC) technology takes automation a step further. It operates simply and efficiently without the need for WiFi, yet its sophisticated inner workings enable it to take stock of its environment and easily move and manipulate items.

Artificial intelligence (AI) is another emerging innovation that can reduce disruptions and make it possible for electronics products to reach consumers and retailers in a timely fashion and in compliance with quality standards. For example, AI can be used for route planning and even for trouble-shooting and redirecting a shipment if an unforeseen event should arise. Furthermore, chatbots can communicate with suppliers, place purchasing requests, send routine correspondence to suppliers regarding regulation compliance, research and answer questions and receive and record invoices and payments. In addition, machine learning can be used to manage warehouses more efficiently.

When disaster strikes, there is no single solution or cure that will wipe it all away and restore full functionality. However, automation brings many different tools to the table that can help to prevent supply chain disruptions and mitigate the effects of the ones that do occur. As technology continues to advance, automation’s capabilities will only skyrocket.

How to Decide if Contractor Material Financing is Right for You

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StrategyDriven Managing Your Finances Article |Contractor Material Financing|How to Decide if Contractor Material Financing is Right for YouAs an entrepreneur in the construction industry, you might find yourself juggling a backlog of accounts payable, a stack of past-due invoices from suppliers and new projects in your pipeline that require even more equipment and materials ASAP. Though suppliers typically offer 30-day terms, any contractor knows it often takes much longer than that to get paid on completed work, leading to inconsistency in cash-flow.

While there are several contractor financing options available, credit card limits are many times too low on limits for your needs (especially for larger commercial projects) and traditional lenders are known to require blanket liens on your business just to work together. However, project-based financing for purchasing construction materials is an ideal option that’s growing in popularity with many savvier contractors today. In particular, contractor material financing can provide the flexibility you need to close the cash-flow gap, keep projects on schedule, bid on bigger projects and scale your business faster.

How Does Contractor Material Financing Work?

You obviously can’t begin a project without materials — but, chances are, you probably won’t get paid on your last project before the next one begins. That’s why materials are such a popular option for project-based contractor financing.

In this scenario, your business partners with a construction partner who gets to know your business and the types of projects you work on. Then, they pay your supplier directly with upfront cash so you can secure materials exactly when you need them. Finally, you repay the cost of the materials to your financing partner over an extended period of time, versus in one lump sum, in order to keep your projects running smoothly, allowing you to simultaneously bid on more projects.

And with material financing, you’ll enjoy:

  • Higher credit limits – funded to your needs and the project.
  • Faster funding – in many cases, as quickly as same-day.
  • Better supplier pricing – by paying in cash, take advantage of supplier cash discounts.
  • Lower monthly payments

Perhaps the greatest benefit is that, unlike the experience of working with a lender from a bank, you’ll gain a financing partner with construction industry expertise who understands the needs of your business.

But how do you know if contractor material financing is right for you? Here’s a helpful checklist:

1.Are You Trying to Grow Your Construction Business?

Contractor material financing is an optimal way to kickstart growth by helping you take on more projects at once, as well as larger, more ambitious projects.

Do you currently feel comfortable bidding on a project twice the size of your typical bid? Do you have a relationship with a lender who will extend the necessary credit on a project that large? Even if your supplier will extend terms, you’re likely going to end up coming out of pocket to purchase materials when you need them. But when you work with a material financing partner, you can confidently bid on a variety of projects knowing the material costs will be covered, with the flexibility to repay on a timeline that works for you.

2. Are You Striving to Innovate and Improve Your Business?

Even if you’re comfortable with your ability to pay suppliers through cash flow, utilizing material financing will give you the financial clout and strength necessary to enhance your business-growth initiatives, generate more revenue and compete more successfully with larger construction firms in your market.

Enjoying flexible payment terms on materials frees up cash to hire skilled marketing and sales talent, increase your advertising spend, or add more field workers to your team necessary to take on more projects. You’ll be amazed at the opportunities to innovate and grow when you’re no longer held back by inconsistent cash flow.

3. Do You Want to Move from Residential to Commercial Jobs?

If you’re making the move from residential to commercial construction, material financing is one of the best ways to lower your risk and support your success. The stakes, the budgets and the expectations are all much higher on commercial projects, so you can’t afford to let inconsistent cash flow stand in the way of meeting your objectives.

Timelines are especially crucial on commercial projects, where one hiccup from a subcontractor can slow down the entire train. If you fail to pay your supplier for materials by the time new material is needed, they may refuse to sell you more, forcing you to find a new supplier altogether and potentially slowing down the project. Needless to say, this is not a circumstance where you want to rely on funds from one project to pay for materials on another.

By working with a material financing partner, you’ll be poised to pay your suppliers upfront, complete your commercial construction projects on-time, and continue to build a great reputation with the GC.

To read more about tips for moving from residential to commercial construction, check out this article by Billd.

4. Would you Like to Minimize Everyday Business Stress?

Entrepreneurship is stressful enough as it is, without the added burden of erratic construction payment cycles. When the success of your business and the wellbeing of your employees is your responsibility, the pressures of being stretched too thin financially and unable to keep your projects moving forward on time can keep you up at night.

A significant benefit of working with a project-based financing partner is the pure relief that comes with the ability to pay your supplier upfront, without having to worry about when you’ll receive payment from your last project. With the freedom and flexibility of material financing, your supplier gets paid and you can stay focused on growing your business.

5. If Contractor Material Financing is Right For You, So Is Billd

Don’t let the construction cash-flow gap prevent your business from moving forward and achieving its full potential. With contractor material financing, you can free yourself up to accept a greater amount of projects, take on more ambitious projects, innovate in all areas of your business — and lower your stress along the way.

At Billd, we’re experienced construction professionals who understand the struggles of your payment cycles. While many banks are unable (or unwilling) to provide short-term funding to contractors for construction projects, we’ll work with you to provide a flexible financing solution that will free you up to achieve your business goals. If you’re ready to try material financing or just want to learn more, contact us today.

About the Author

StrategyDriven Expert Contributor | Jon KatzJon Katz is the Vice President of Marketing at Billd, a simple payment and finance solution for the construction industry. Jon oversees all marketing at Billd, including paid user acquisition, demand generation, email and owned channels, website, marketing budgets, brand, content creation, and more. Jon lives in Austin, TX, where Billd is headquartered, and he brings an entrepreneurial spirit, self-starter mentality, and passion for life-long learning to his role.

Health and safety essentials every office needs

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StrategyDriven Managing Your People Article |Health and Safety|Health and safety essentials every office needsAs workers slowly begin to return to offices across the country, now is the opportune moment to ensure your office has all the health and safety essentials it needs to not only comply with the law, but also to help create a positive workspace for employees.

Fire safety equipment

It doesn’t matter what sector or industry your business is in; you need a fire extinguisher. In an office setting, a 2kg Co2 fire extinguisher and a 6-liter water fire extinguisher will cover multiple fire risks. They should be positioned close to the main fire hazards and readily available and visible.

Similarly, fire alarms and smoke detectors can quite literally save lives by providing an early warning of a potential fire. By installing a fire alarm or smoke detector, you are allowing more time for an orderly evacuation and the opportunity to tackle the fire before it gets bigger and more dangerous.

First Aid equipment

First Aid kits are vital for any office, allowing for quick treatment of minor injuries by a trained First Aider. It’s important employees know where to find the First Aid kit, and that stock is regularly maintained. From having enough bandages and band-aids, to essential protective equipment like disposable gloves and antiseptic wipes, regular stock takes of the First Aid kit can provide peace of mind to all employees – and reduce the risk of litigation should the worse happen.

Ergonomic equipment

There are more and more studies that demonstrate increased and chronic back pain in office workers as a result of hours spent sitting at poorly positioned desks and screens. If you consider the length of time your employees spend working and sitting at their desks, then it’s obviously essential that where and how they work doesn’t cause them any discomfort or pain.

Investing in ergonomic equipment like chairs and movable desks will not only improve employee morale, but you’ll see an increase in productivity too.

General maintenance

Slips, trips, and falls account for the majority of workplace incidents and can easily be avoided. Slips occur when there is a lack of friction between a person’s feet and the floor they are standing and walking on. They are typically caused by spillages, wet floors, and unsecured floor mats. Reduce the risk of slips by using signage, non-slip floors, and ensuring any mats or carpets are secure.

Similarly, trips and falls occur because of trailing wires, objects left lying around, and misplaced footing. Ensuring items are tidied away and walkways are clear will reduce the possibility of trips, while well lit areas and marked stairs will limit falls.

What is a Trustee in Business?

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StrategyDriven Managing Your Finances Article |Trustee|What is a Trustee in Business?To understand what a trustee is within a business, one must have a conceptual understanding of what a trust is. A trust is a way of managing money on behalf of someone else. A trust usually has three people involved: A beneficiary, a settler, and the trustee. So basically, a trustee is a person who manages the trust for the beneficiary.

The settler is the person who puts the money in the trust. Once the settler sets aside the beneficiary’s money, they are also responsible for selecting a trustee to handle and administer the trust to the rightful beneficiaries. A trustee can be a person or a firm, and they are solely responsible for the money.

Trustees that are associated with charities differ in some ways. For starters, they have total control over the charity and are tasked with ensuring the charity does what it is intended to do. Being a trustee within a charity means that their decisions impact the lives of many people who depend on the charity organization.

Becoming A Trustee For A Charity

To become a trustee, you have to be at least 16 years of age. This applies if you are working for a charitable incorporated organization or a company. If it’s any other type of charity, you need to be at least 18 years old. You can also be disqualified as a trustee and prevented from trustee duties unless allowed for a number of reasons, including:

  • Being a registered sex offender
  • If you have an individual voluntary arrangement
  • Being bankrupt
  • Having a conviction record

Trustee for charities uses the expertise and skills to ensure the charity supports the right beneficiaries. Being a trustee for a charity is a great role, and it needs someone experienced, trustworthy, and credible. There are a number of rules and regulations that govern this position. You have to comply with them regardless of their difficulty or risk disqualification from trustee duties.

Trustees have a chance to act independently in regard to the trust, but they are allowed to consult with various advisers such as financial experts and lawyers. Sometimes, they may delegate the final decision to a third party, but the final decisions on matters concerning the trust are made by the trustee in most cases.

Duties Of Trustees

While executing their duties, trustees are not immune to errors. They must have a keen eye for detail lest they make an error resulting in money getting into the wrong hands. This is a loss for both the beneficiaries and the charity organization. Charity organizations are encouraged to get trustee indemnity insurance for charities to protect themselves from losses.

A trustee’s main duty is to the beneficiaries, and therefore they should act without a partial intention. They must exercise respect and consider all of the beneficiaries while making their decisions. They should also follow the wishes of the settler, as stated in terms of the trust while managing the trust for the beneficiaries.

Trustees must comply with the charity’s rules and regulations of operations from the governing document. As a trustee, one should make an effort to understand the legal and financial requirements, together with the guiding principles of the charity. They must also comply with the rules set by the Commission overseeing charitable organizations in terms of general conduct.

How to Start Your Own Small Business

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StrategyDriven Starting Your Business Article |Small Business|How to Start Your Own Small BusinessIf you have dreamed about being an entrepreneur and starting your own small business, the process may be easier than you imagined. Since you are not opening a large or medium business, the steps to create your business are much more manageable. You do not have to deal with stock, public trading, large demands for capital, or complex tax or legal issues. Here is what you need to know about taking on this endeavor.

Steps to Starting Your Own Small Business

You can quickly launch your business after completing these steps:

Business Planning

Every business should have a business plan. This is the foundation of your request for outside funding. However, even if you do not require funding from a bank or other financial institution, a business plan can be helpful in creating a roadmap on how to operate and grow your business.

Funding Your Business

You may need some initial capital to start your small business, such as to pay for inventory, equipment, staff, and other needs. You may have several options to fund your business, such as:

  • Using personal funds
  • Asking friends and family to invest
  • Using crowdfunding
  • Borrowing from a bank or other financial institution
  • Seeking out investors

You will want to consider the funds you need to initially start your business, as well as your capital needs for the future. You don’t want to make an initial ask for funds and then have to return to ask for more shortly later.

Pick a Business Location

The location you choose for your business can have a dramatic impact on the potential success – or lack thereof – of your business. The business location you choose can affect your revenue, legal requirements, and taxes. Additionally, if you choose a bad location that is associated with past problems or legal issues, this can negatively impact the community’s perception of your business.

Use appropriate tools to get an address report about locations that you are considering. This can help you to be informed about the location and any potential issues with it.

Select Your Business Structure

The legal structure you select for your business will impact important aspects of your business, including requirements on how to register your business, your potential personal liability, and the amount you pay in taxes. Common types of legal structures for small businesses include:

  • Sole proprietorship – This is the simplest structure to have and if you do not choose any other structure, this will be the default classification for your business. With a sole proprietorship, you do not have any protection from personal liability and your business income is taxed at your individual rate.
  • Partnership – A partnership involves two or more people who are in business together. It is possible to limit personal liability with certain types of partnerships.
  • Limited liability company – A limited liability company has the same types of legal protections as a corporation but provides tax benefits of a partnership.
  • Corporation – A corporation is a separate legal entity from the individual owners. It can own property, pay taxes, enter into contracts, assume liability, and make and defend against legal claims in its own name. Corporations provide protection against personal liability.

You will want to choose the business structure that best suits the needs of your business, now and in the future.

Register Your Business

You will want to register your business to make it legal and to establish a brand for it. You will likely need to register with the government, potentially with the federal, state, and local government. Corporations must file articles of incorporation that identify the business name, its purpose, the legal structure, and other pertinent information.

If you hire employees, you will need an Employer Identification Number.

Acquire Legal Permits and Licenses

You may also be required to obtain various legal permits and licenses to legally operate your business. These vary by your state, location, industry, and other factors. Some trades require you to maintain a professional license. You may also need a permit before you collect sales tax from customers.

Purchase Insurance

Keep yourself protected by purchasing a general business insurance policy. You may also inquire about other types of insurance that may be able to protect you, such as errors and omissions insurance. A competent insurance broker should be able to inform you of your options.

Seek Out Additional Resources

Fortunately, there are many places that you can turn to for assistance and information. The Small Business Administration offers a wealth of information, including many free resources. Many states also have other organizations that provide assistance to small businesses and can help with everything from market research to financial planning. You can also check with the agency where you must register your business for additional assistance.

Conclusion

By following the steps above, you can soon be on your way to starting your own small business and becoming your own boss. Good luck!

About the Author

StrategyDriven Expert Contributor | Ben HartwigBen is a Web Operations Executive at InfoTracer who takes a wide view from the whole system. He authors guides by sharing the best practices and does it the right way!