Inventory, the root component of every business. Whether it’s a small business or a full-scale one, inventory management should not be looked down upon. Skipping this part will affect your business in a major way. The most common issues associated with inventory are; understocking or overstocking. We need a healthy money mindset to understand the value of inventory. In detail, understocking when any business, keep low varieties, and lesser inventory stock will result in driving away from the potential customer base to either another business ( your competitors) or to someone who has much better options than you. Whereas, In overstocking, business owners have a false sense to keep more than they will ever need, ” just in case customers ask for it “, due to this they end up overburdening their inventory and end up bleeding a lot of their money in their business. Also, this increases the running cost and also floats the business cost.
So, to avoid these undesirable situations and many others related to poor inventory management, a well thought, and structured inventory management is a must to save you money and to make your enterprise more efficient. For better understanding, one must either talk to people who have a successful financial background or read good financial books such as Mind Your Money to develop a rich money mindset.
Lack of inventory management as stated above also will hinder your budget and you will have less control of it because you don’t know what exactly and how vastly you need those goods in your stocks. So, you’ll end up either with more than needed stocks or lesser stocks.
This can also lead to you losing your money, thereby developing a money scarcity mindset which will further lead to bankruptcy and failure of the business in extreme conditions.
Major Points to keep in your mind while managing inventory:
- Prioritize inventory accordingly.
- List all product information in detail.
- Analyze Supplier Performance
- Track Sales and restock yourself.
- Always keep buffer stock
One must understand the financial industry, the business market and build strategic schemes to get the best of their investment with the help of a money mindset makeover.
Plus, to save your funds and to organize your inventory, you can also take the help of many apps which are available in the market to handle it more effectively, some of them know apps are; TradeGecko, Oddo, Fishbowl, etc. You can try for yourself and see which one of them works great for you based on their features and user experience.
Apart from the apps that are easy to use, but which do not suffice all your problems as they do not give you proper examples and help you understand the market base, you need to read it in the books with an abundance of knowledge to be shared.
One must learn to develop a rich and wealthy money mindset in order to take over the falls in the business and rise better with innovative marketing and business strategies.