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.