Simple Tips For Business Protection

The world is an ugly beast that devours everyone who wanders unprepared. This is a lesson that most of us learn the hard way. The world is riddled with thieves no matter how big the crowd of good people are, and it has been true since time immemorial. It’s a matter of fact that there are people out there who will use all they know to prejudice others just to get what they want— from non-paying PUV passengers to fraudulent suppliers. To make matters worse, distinguishing them is as hard as finding a passable route in rush hour EDSA. Some of them are the ones neatly dressed, some are in authority—they come in all shapes and sizes! This also happens in the corporate setting. Every entrepreneur and business owner must know how to protect their businesses from fraud and deception. Here are some tips that can help prevent these cases:

Know who you are dealing with. The first step in making sure you don’t become a sad story for entrepreneur students is to know who you are dealing with in major transactions such as obtaining materials from suppliers (or supplying materials to clients) and engaging services with other business entities. Take your time in researching the other party. Are they trustworthy? Who have they transacted with before? How long have they been in the industry? Are they conducting a legal operation? You do not want to get involved with illegal operations; neither would you want to be inconvenienced.

Trust takes time, so it sometimes is better to spend a bit more with your previous and long-standing supplier than new and cheaper ones. At the very least, the former is someone who has proven that your company can rely on them.

Have contracts written. When things go wrong, who is the one to blame? How do you say that things went wrong? Were the items delivered really wrong, or do they technically comply with your agreements? It’s hard to rely on verbal agreements over the phone or even in person if it is not entirely jotted down in writing. This is where contracts come in. If you know that you will be asking for a lot of specifications, or will be receiving them, make sure that every detail is in writing. This is for your protection. If you are the party asking for specific details, then a contract will make sure that the other party complies. Contracts do not have to be formal. Just prepare a document that will at least indicate the necessary agreements involved in your business transaction as this will be your basis for possible future damages or failure to render agreements.

Post disclaimers. There are times when other people or ex-employees may make unauthorized claims or representations that may cost your company or damage its reputation. To prevent or minimize this kind of issue from happening, disclaimers can be posted in different marketing avenues for potential clients to see. There are even cases where companies even publish this in national newspapers. Examples of useful disclaimers are: “Company is not involved with any third-party representation. Any and all transactions involving the services or products of the company must be made within the indicated office address.” Or “The person is no longer connected with the company as of Dec 31, 2014. Any transactions with this person will not be honored beyond this date.” Disclaimers may also help your clients/potential clients understand the risks involved as well as the things that they must remember to have a clean transaction with your company.

You will be facing quite a number of devious people—this is a matter of fact for every business entity. You cannot be sure of those you transact with despite your best efforts to ascertain their character. Even written contracts may have loopholes in them that can be exploited by the unscrupulous but setting up safety measures will prevent or at least lessen these issues. Caution is something that can never be taken too lightly. Note that most of the tactics used try to exploit human weaknesses especially that of greed. It pays not to be too eager. Try to avoid shortcuts that may turn out to be traps for the unwary.

*Originally published by the Manila Bulletin. C-6, Sunday, September 20, 2015. Written by Ruben Anlacan, Jr. (President, BusinessCoach, Inc.) All rights reserved. May not be reproduced or copied without express written permission of the copyright holders.