EducationQ&A

How should a retailer plan for inventory of goods and supplies?

How much inventory do you need to have on hand to appropriately service the number of customers you have and the expected growth? You want to have the right amount to fill all the orders, but not too much that you are saddled with products you can’t sell. 

For example, if you know anyone that needs an iPhone 4 sublimation-ready case, I have a shelf full of them. I didn’t plan accordingly and ended up with too much product I could not sell. On the other side, though, if you are selling holiday ornaments, you don’t want to run out at the end of November and hope a supplier has them in stock. There is a good chance you are going to have to search far and wide and even possibly deal with an increased cost due to supply and demand. These are important decisions that need to be planned out. By using a budget as a tool, it helps you make the right decisions.

Read more about keeping your business on track

   —MontCo Consulting and 2 Regular Guys

Aaron Montgomery 2019

Aaron Montgomery

Aaron Montgomery is the co-founder of OurSuccessGroup.com. Its goal is to help 1,000+ businesses in 2020 reach their idea of success through training, community, and accountability. Aaron has 25+ years of experience with personalized products and small business development. You can also find Aaron co-hosting 2 Regular Guys podcast (www.2regularguys.com) He also has his own podcast channel and produces weekly live videos called Small Business Saturdays Series. New episodes are released smallbusinesssaturdayspodcast.com.

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