The Top 5 Inventory Secrets That Every Business Owner Should Remember

Small business owners often fall in love with making a product without giving much thought to inventory. This is commonly a part of the business that gets lost in the excitement of launching a new product line to the public. Many soon find out just how important inventory is to the success of the overall business.
The first question that usually comes to mind is, "How much to order?"
Many owners are absolutely clueless when it comes to estimating the amount of product they need on hand. This is particularly tricky for new merchandise. There may be different shapes, sizes, styles and colors of similar items. It is really easy to order too much in the hopes that there is a rush to buy all of this stuff. However, it is more prudent to order small lots until there is a higher demand.

Organize and Manage Inventory

costs are another issue that greatly affects profit margins. Every type of product that is used in running the business needs to be tracked. For instance, if a business manufactures products that require lots of bolts those costs can add up fast. By organizing the supply, the business could buy bolts in bulk and will be able to take advantage of the discounted price. Tracking every single item meticulously helps you to calculate how much money you spend on specific items.

Sell Everywhere

There's a bunch of inventory sitting on the shelves that need to be sold. It costs businesses way more money to store items if they are stored in a rental space. Therefore, find more than one way to sell products. Products can be sold at a brick and mortar location, via website, street fair, home party system, trade shows,
door-to-door and swap meets.

Bookkeeping

Invest in a good bookkeeping system like the quicken system. Set this system up in advance so that you are prepared to keep track of profit and losses on all inventory. Business owners need to know how much cash is on hand at any given time.

Effective Marketing

Advertise your products using guerrilla marketing methods such as flyers, door hangars and online video. Keeping advertising and marketing costs lower allows you to keep more profits from sales. Finding unique ways to market your company could even create more potential for overall sales.

Get Help

Do not try to manage everything on your own. Hire someone to manage the inventory while you focus on day to day operations. Finding people to handle trainable tasks frees up your time and creates an environment that allows you to focus on high priority situations.