As a small business owner or manager, you likely have a lot on your plate already. However, one area you can’t afford to take chances with from a business standpoint is in regards to your inventory.
If your inventory isn’t properly managed and accounted for, you could have innumerable problems within your business. From losing money to losing customers, inventory issues can really set you back.
To help you avoid running into problems with insufficient inventory management, here are three tips for better managing your inventory as a small business.
Have the Right Storage Space
Depending on the type of business you’re running, you’re going to want to have a set amount of your product stocked and ready to go when a sale comes in. Because this amount of product will vary based on your market and industry, the amount of space you should have for storage will also vary. However, it is vital that you have the right amount of storage space so you’re not overloaded with inventory you can’t move or running out of stock because you can’t store your excess.
Consider tracking how your inventory moves throughout the year to help your business decide if you simply need a small room to house your inventory needs or if you should construct a larger space like a pole barn or other storage option.
Pick An Inventory Management System That Works for You
Knowing how you inventory is moving will be a huge help for understanding the health of your business. In order to best track and analyze your inventory, most businesses will find that an inventory management system will be the most beneficial option. However, according to Andrea Hayden, a contributor to QuickBooks, there are a plethora of inventory management systems. Some are better at tracking specific items while others function more as an assistant for procedures and information.
To know which inventory management system you should pick, spend the time necessary to research systems within your price range and pick the one that best matches what you need from an inventory management system.
Do Regular Inventory Audits
In order to always have the best handle on your inventory, regular inventory audits should be a part of your monthly or quarterly assessments. These audits should include more than what you would do on a regular basis to make sure everything’s running smoothly. To help with this, Katy Lewis, a contributor to Chron Small Business, recommends for business owners to have a checklist of items they go over each and every time they conduct an inventory audit. This checklist should include things like counting and examining specific inventory items, safety procedures and more.
By using the tips mentioned above when handling your business’s inventory, you should be able to better track and control your products in order to have an easier time managing this aspect of your business. Consider employing any or all of these tips if your small business is currently struggling with inventory issues.