To quickly get a product to a customer, you generally need a robust inventory. But it can be tricky to predict your inventory needs before orders start coming in. And once they do and demand starts to grow, your inventory should evolve, too. It can be a lot to manage!
The following will focus on three ways to grow your inventory to help drive your business to an optimum level.
Improve Inventory Management
First you have to efficiently manage your inventory in order for it to grow. If inventory management is not done efficiently, you may have too much of a low-selling product taking up space and not enough room for the best-selling product.
Inventory management will help you grow your inventory efficiently while maximizing your space. Here are some ways to improve the way you manage your inventory:
1. Regular Cycle Counts
Doing physical counts of your inventory twice or more a year will catch discrepancies that could turn into big problems if not noticed. Usually, this is done with best-selling or seasonal products so you don’t find yourself shorthanded, which could be disruptive for business and disappointing for your customers.
2. Organize the Storage Space With Labels
Marking your space and items with labels helps visibly indicate which products are running low. This visual reminder makes it easier to track how often items need replacing in order to keep up with customer demand.
3. Automate Inventory Tracking and Management
Inventory control software automates inventory tracking and management and tells you how often you have to order a specific product in real-time. The results may suggest that you have to order more of a particular product the next time to ensure enough supply to meet demand.
Acquire More Storage Space
If demand for your product continues to grow, you may have to find more storage space. Consider these questions when looking at your options:
- Do your products require special storage conditions, such as size or extra security?
- Do your products require a climate-controlled storage area?
If a warehouse is not in the budget, consider a self-storage unit. They can usually offer extra security and climate-controlled space if needed.
Look for Financial Alternatives
Perhaps, your inventory management results tell you that you need to order more products to sell. Or, you need a bigger space to accommodate your growing inventory. Maybe, you need to acquire inventory automation software to show you how you need to grow your inventory. However, there seems to be not enough money in the budget.
Here are some financial alternatives to help with growing inventory needs.
- Small Business Loans: Some companies specializing in funding business operation and growth can qualify business owners for a small business loan of up to $250,000 in 24 hours. If you need to grow your inventory quickly, you may want to consider this financial alternative. These are especially helpful loans for businesses with no credit.
- Merchant Cash Advances (MCA): Once you receive a cash advance to finance your growing inventory, the advance is paid back according to the level of your sales. A variable, percentage-based withdrawal is made from credit card receipts through credit card processing companies.
Inventory management is a crucial component of a business’s profitability. Finding the sweet spot and avoiding extremes — such as having way too much or too little product — is key. Improving inventory management, increasing storage space, and looking for financial alternatives can expand your inventory to meet demand with confidence. Good luck!
