Small Business Inventory Management

In the starting stages of your business it is ordinary for your small business inventory management to be unstable. Since you are just starting your business venture it is not unusual for you to be unsure of how much inventory you need. Though market research and analyzing your competition can give you an idea on product trends, you will not be 100% sure on how fast a product will sell until it is on your shelves. However it shouldn’t take long for you to get into the rhythm of how much inventory you need and how fast it sells. Keeping good records of what inventory is selling, how fast it is selling and what is not selling can help you better develop a productive small business inventory management system.

Managing Inventory Tips

• Avoid Items that take long to sell- When managing your small business inventory, your goal is to fill your shelves with fast selling products. You don’t want products that remain on the shelves for long periods of time since they take up valuable space. They are potentially taking up space of products that could be selling. Keep records of your inventory to compare your products and see how fast they sell. Keeping records will be a valuable tool in the management of your small business inventory.
• Be able to meet Demands- Another purpose for managing your small business inventory is to help ensure that you are able to meet demands. Being able to meet demands is an essential part of managing your inventory. If custumers go to your business in search of a product and you are out of stock, they will go elsewhere to find the product and you could loose that customer to your competition. Having a small business inventory management system can help you avoid having a product go out of stock.
• Be prepared for a late delivery- It is a good idea to have extra inventory stored (that you know will sell) in case your suppliers are late on a delivery.
• Keep up with trends- Keep an eye on your competition. Attend trade shows to uncover new trends in the market. Find out what are the year’s new hot products. Ensure you are meeting the needs and wants of your target market. Find out what appeals to them.

You can decide to purchase software that helps you manage your inventory or you can do it manually. By doing it manually each product is tagged. When the product sells the tags are removed and documented. By keeping records of your inventory you can find out which products are “hot” and which are not. Stocking your business with “hot” sellers can make all the difference to the success of your business.

Getting Small Business Supplies and Equipment

Once you have found a business location you will then need small business supplies and equipment to bring your business to life! As you bring in the equipment and supplies you will see your business start coming together and your business dream becoming a reality. Whether your business sells products such as a gift shop or services such as a spa, or even if you run a business from home you will need equipment and supplies to effectively operate your business. The supplies and equipment you need will depend on the demands of your business.

Below are some tips to get started.

Do I really need that?

Since supplies and equipment for your business can take up a big chunk of your capital, it is a good idea to analyze whether the purchase of a product for your business is necessary. Ask yourself, ”Will this equipment make my business more productive or efficient? Will the investment made in this equipment be worth it?” For example if you will rarely use a copy machine it will be more efficient for you to get copies at a printing store for 10 cents each then it would be for you to buy a brand new copy machine.

Buy New, Used or Lease It?

Once you have decided on what equipment you need to efficiently and productively run your business you now have to determine which method of attaining equipment will be the best for your business. You can choose to purchase new equipment, lease the equipment, or attain used equipment. For example instead of purchasing brand new office furniture you can examine cheaper alternatives such as buying used office furniture or leasing it. Analyze which method will work best for your business. For example some businesses who target wealthy individuals may need to have expensive looking office furniture. However research alternative ways of finding expensive looking furniture with out putting down the big bucks.

Who is your Target Market?

You should keep your target market and business brand in mind when getting supplies for your business. Is your business targeting high end consumers or is your business targeting the middle class and budget conscious consumers? Keep in mind that if you are trying to reach wealthy consumers, your products and services will naturally be more expensive but your products and services should also be of better quality. For example consumers expect to get more from a $200 watch then a $10 watch.

Finding a Wholesale Supplier

If your business sells products, finding a business supplier or manufacturer can be a straining process. However finding a good wholesale supplier who is willing to work with you to provide great quality products at a great price can be well worth it. It is often times difficult for small businesses to find suppliers. Suppliers often favor big companies who are able to make big quantity purchases. However don’t get discouraged, finding good suppliers is just a matter of researching, networking and creating relationships. It is essential that you keep good relationships with your suppliers as they are a vital aspect of your business.

Inventory Management

Inventory is the total amount of goods or products in your store. Developing a management system for your small business inventory is essential in order to keep track of what you need and when you need it. If your business sells products, your shelves should look full. You should offer a product in different colors and varieties to accommodate different tastes. Keep in mind just because you don’t like a product doesn’t mean other people won’t like them. Keep track of your inventory. Keep records of what is selling and what is not. Test new products to see if they sell. Conduct Market Research to discover new trends. Avoid items that take a long time to sell. That item could be potentially taking the space of a product that could be selling.

Pricing Products

When determining a price for your products there are many factors that should be considered. First of all you should keep your target market and small business brand in mind. You should also consider the prices of your competition. Review Pricing Strategies to learn more. Performing a break even analysis will help you get an idea of how much you need to sell in order to break even. This can help you when determining a pricing strategy.

More Resources

Saving on Small Business Supplies- Tips for saving money on small business supplies.