Month: March 2015

How a Business Can Increase Product Safety and Minimize Recalls

How a Business Can Increase Product Safety and Minimize Recalls

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The subject of corporate accountability associated with product recalls affects businesses from small, family-owned operations to the most well-known and recognized corporate entities. A manufacturing error, a failure to warn consumers of a potential danger in the use of a product, a tainted food product, or a faulty design can lead to a product recall and many product liability claims. A safety recall is not only expensive for a business, it can significantly damage the business’s reputation. What can business owners do to increase productivity and minimize the chance of recalls?

Every business enterprise is unique in the products or services it sells consumers, but there are certain basics that all business owners should focus upon at every stage of conducting business, both to protect the consumer and the bottom line of the enterprise. The last thing you want your business to be known for is causing illness, injury or loss of life.

The Basics of Product Safety

Have a Recall Readiness Strategy in Place

Any business can unexpectedly face a product recall. If one of your products has been recalled, or your business recalls it voluntarily, a skilled management of the process will have much to do with the final impact on the bottom line, as well as your business reputation. Many businesses fail to put a recall strategy in place, such as planning the reverse logistics involved in getting the product off the market. Get a recall readiness strategy in place, with the management team named and trained up for the processes involved.

Maintain Strict Quality Control Standards

Rigorous and ongoing quality control of your product is essential to avoiding a recall. Faulty products that are manufactured overseas can slip through and your business will be forced pay the price if a consumer is injured. Don’t assume that the product is safe, but inspect, inspect, inspect. Manufacturers can change processes, product components, ingredients and other alterations without informing you. Your business is responsible for the safety of your product. Test all current and newly developed and released products on a regular basis.

Inspect Your Factories or Farms

Don’t assume that the factory or farm that is producing your product is maintaining the standards set for your product, or consumer safety standards set by federal or state agencies. Engage the services of industry professionals and safety experts to do on-site inspections on a regular basis, and make changes if there are safety issues that could affect consumers and potentially lead to a recall. A first inspection of a factory or farm is not enough – these inspections must be ongoing.

Make Consumer Safety a Priority in Product Development

If new products in development have consumer safety as a focus during all stages you can avoid future problems. It is easier and less expensive to develop a product that is safe for consumers than being forced to fix a design flaw once the product has been released onto the market.

Develop Manuals for Product Safety and Product Recall Processes

Your business should develop manuals to maintain product safety, as well as manuals that address every detail of the recall process. One of the most dangerous corporate errors is to deny that a product is dangerous, or to remain silent. Businesses that take accountability seriously will quickly manage any danger to consumers, admit fault, and have processes in place that allow them to immediately inform all stakeholders – from governmental agencies down to the end-user – of the safety issue and what is being done about it. Honesty and transparency is far more effective. Rather than damaging your business reputation, there can be a positive response by consumers and stockholders when a recall is managed professionally.

Can a Business Owner Be Held Liable When a Customer’s Mess Causes an Injury?

Can a Business Owner Be Held Liable When a Customer’s Mess Causes an Injury?

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Business owners have a legal responsibility when it comes to maintaining a safe environment for its customers, visitors and invited guests. When a business owner fails in that responsibility, and a person is injured on the property, the owner or property manager can be held financially liable. If you are injured in a slip and fall accident at another person’s business or on their property, you must be able to prove negligence on the part of the owner before you will be able to file any type of premises liability claim. What about when a customer’s mess is what causes the injury?

Liability in a Personal Injury Accident on a Business Site

Fault in a slip and fall or injury accident at a store, restaurant, office building, theatre or other place of business does not automatically fall with the business owner. In some instances, an accident can simply be just that, an accident. If one customer leaves a mess which causes another customer to be injured, who is liable? Is it the business owner? Is it the other customer?

While the customer’s mess in this scenario may have been responsible for causing another customer injury, liability has still must be investigated. If the business owner had no knowledge of the potential hazard, or no reasonable expectation that he or she should have been aware of the danger, then the injured party has no grounds to file a lawsuit or claim against the business. If the customer who left the mess had no ill-intent behind doing so, it is unlikely that party could be held liable.

Elements Which Must Be Proven in a Premises Liability Claim

To file a premises liability claim against a negligent business owner, you must have proof of each of the following:

  • The business owner owed a duty of care to you, the injured customer
  • A breach of that duty occurred, and
  • Your injury was directly caused by the breach.

Even if you are able to prove the business owner owed a duty of care to you, and that he or she failed to fulfill that duty, you are unlikely to win your case if it is necessary to prove that the injuries were a direct result of this breach. In the case of another customer’s mess causing your injury, it would be necessary to prove that the property owner was aware of the hazard and failed to remedy it.

What to Do If You Sustained Injury at a Place of Business

The first thing to do after sustaining injury at a place of business is report the accident to the business owner or manager. Do not lay blame or admit fault, simply report the facts. If you did not receive emergency medical care at the scene of your accident, go see your doctor right away for a medical evaluation and to be treated for your injuries.

You should also hire a skilled premises liability lawyer who can answer any questions you may have, advise you of your legal rights, determine whether you have a valid premises liability claim and if so, help you seek maximum compensation for your injuries and losses.

Things One Should Look Out For When They’re Starting Up A Business

Things One Should Look Out For When They’re Starting Up A Business

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Entrepreneurs are endlessly creative, and a driving force in the U.S. economy. If you are considering starting up a business, there are several things to look out for prior to investing your time and/or money. A new idea, product or service has the potential for success, but a review of certain facts can help you come to the right decision before you commit.

One: Is There a Market for your Product?

If you are looking for an investor, realize that investors generally prefer to put their money into projects in a growing industry, rather than something new and untried. Niche businesses are less likely to attract investors, but also have the potential of exploding under the right conditions. You may need to put your own money into the project to get it off the ground, and show significant sales before you can attract an investor. If you are committed to proceeding with your idea, your first step is to evaluate the market, and take a long, hard look at the competition. The advantage of a startup in a competitive field is that you don’t have to reinvent the wheel with regard to marketing the product, and can learn from what other companies are doing. The downside is that you are dealing with competition, and any newcomer must have a brilliant marketing strategy to gain a market segment.

Two: Your Organization Chart

The business model can prove to be a make/break for a startup. If your product is still in development, the cost of development should be realistically evaluated before you jump in. If the product exists, and only needs to be released onto the market, your most critical issue is sales. Don’t form a “top-heavy” new business. The owner of a business ideally has the ability to sell the product, as the knowledge of the product and how to interest buyers is pivotal in the success of the enterprise. Hiring the right sales people to get your product sold the most crucial issue at this point in the game. On the back end, on-time delivery of the product or service is equally important for building a customer base. You essentially have just three sections in a new organization: sales, delivery and finances. Focus your attention on developing a sales plan and collateral marketing materials that meet the needs of the market you are entering. As your sales increase, you will need to hire on others, including sales managers (who should be top salespeople themselves, as well as having the right “people skills” to handle sales personnel, as well as motivate and inspire). Focus on what is important in making your organization flourish when you craft your organizing chart. Initially, man up only the most critical jobs, and add more personnel later. Payroll is often the biggest expense, and your organization should be lean and mean.

Three: Publicity

Getting your product reviewed and creating a buzz may appear to be difficult. Start at a local level. Your local media outlets are always searching for content, and if you present a compelling story, they will present it. Get as much media attention as you can, including online reviews, reviews by influential bloggers in your industry, and maintain a flourishing online presence with a website that is kept current, industry blogs that present your company as an industry leader. You can move ahead much faster if you put your “beans” into online marketing campaigns as a priority, and many of these actions are far cheaper than traditional marketing campaigns. As sales increase, you will be able to pay for more expensive forms of advertising. Get your team to participate in local activities, charities and other similar events, raising your profile in the community.

Four: The Right Team

Build a team that can work together. Avoid people who are egotists, arrogant, critical or difficult to deal with. You could end up spending your time resolving intercompany conflicts, and losing the best employees if you choose the wrong people. Your choices when hiring must extend beyond a resume or former achievements. Evaluate the person in front of you as a potential team member – as a human being – as part of your decision. A less experienced person with better people skills may be the best choice. Watch out for any person who comes to you with critical remarks about an earlier employer, or has an unstable work history, moving from job to job, as this usually spells trouble for you in the future. Looking for a partner? Many new businesses fail because the partners get into conflicts. You can avoid this problem by being extremely careful when you choose any business partner – or investment partner. The right team will mean success. Just one “toxic personality” can destroy the entire operation. Get the right team from the start. It is worth taking time to find exactly the right personnel for your team if you want to grow.

Setting Up Your Startup for Success

Setting Up Your Startup for Success

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Starting a new enterprise? It is an exciting time, and nothing makes the entrepreneurial blood pump faster than a new product. You can increase your chances of success if you employ a strategic approach – from the beginning.

Do Your Market Research First

Market research does not have to be a grueling or complex task, but is crucial for understanding the industry in which you plan to get involved. Online research can reveal facts that can guide a successful strategy. Research your competition thoroughly with regard to sales, industry presence, the years in business, number of employees, and other information prior to investing your time and money into a new enterprise.

A Business Plan is a Must

You will never get an investor in your project without a quality business plan. You either need an investor or a strategic partner to help you launch your product or service. Without a business plan, you will be dead in the water. A professionally written plan can be pricey, but there are examples you can find if you are capable of producing the plan yourself. Use a standard format, and ensure that you have all of the elements included in you plan. If you have the funds, invest in a professionally written business plan that includes realistic projections, and information about the competition.

Marketing Your Product

An analysis of your competition is important. You may not have to reinvent the wheel to get sales moving. Large, established firms pay ad agencies top dollar for advertising concepts and strategies, and you can take advantage of their work by analyzing what they are doing. Online marketing is generally less costly than traditional marketing, and is a good starting point for any new enterprise. Your salespeople will need some type of sales collateral that must be available in both soft and hard copies.

Choose Your Target Market

You have an ideal customer or client. Avoid any feeling of desperation, or an inclination to make losing deals just to get a sale. Your product or service is valuable, and if you make shaky deals it can become more and more difficult to deliver. You need the income flowing in the door, but set your price and stick to it rather than giving price cuts.

Don’t Assume You All

You may think you know what your potential customers want, but only surveying them will reveal the actual answers. Take the time to survey your target market and find out what they like/don’t like. This data opens the door to clever marketing strategies that actually work. The results of a survey often come as a shock, and your assumptions may have been completely off the mark. You won’t know until you ask. Don’t assume you know.

Keep Your Overhead Down

Investing in an office space, equipment and hiring personnel will eat up your investment funds faster than you can imagine. Keep the number of employees at the lowest possible minimum as long as possible. Stay lean and mean through the early stages and beyond. Any area where you can cut costs – do it. Any new enterprise generally costs much more than predicted to get off the ground, and if you manage your costs correctly, you can make it through the birth process without having to fold – which many startups do when investment funds run out.

Safety First

You need to protect your employees from harm, as any legal threat puts the whole enterprise in jeopardy. Study up on the safety requirements for your industry. One premises liability claim can put you out of business before you get your enterprise off the ground. If your business involves driving, delivery trucks or other types of transportation, make sure any company vehicles are in good repair and all systems are maintained and repaired if needed. Train all new personnel on issues such as sexual harassment and discriminatory behavior – these can be expensive legal cases.

Sketch it Out

Put your workflow process in writing. Many new enterprises fail when they get through the initial launch and are then unable to deliver the product. The manufacture of any product can be complex, particularly when working with overseas companies. Map it out, and don’t sell more than you can produce. Your service and delivery are the most critical point in whether you will have a repeat customer. Take the time to sketch out your workflow process with every potential glitch, bug or slowdown area identified in advance and processes put in place to resolve issues such as late delivery of components or customers that cancel orders. Expect the unexpected and you’ll deal with these events better.