As a small business owner, you may be tempted to consider cutting corners and finding ways to save money. One place that you shouldn’t skimp on is your small business inventory management. In fact, as a small business owner, inventory control is almost more important than it is for large businesses.
You may be thinking that since your business is small, you don’t need to spend lots of time and money keeping track of my inventory. With the size of your business, you can just keep an eye on it yourself without needing to set up a special system.
This line of thinking could get you into trouble. Inventory management involves more than just counting your inventory. A good inventory management system also encompasses tracking inventory as it is shipped to customers. From proper inventory management, you can learn what products are selling well and which aren’t so you know what to stock more of and which items to consider putting on sale to move them. If you are able to predict what customers want, you can ensure that you have enough inventory on hand, branch out and offer similar products, reduce the amount of product that doesn’t sell well, and possibly improve margins by raising prices. All of this can not only drive revenue but reduce costs and improve margins.
Small business inventory management software can also help with cash management. By understanding which products sell and using this to control your purchasing behavior to just-in-time, you can reduce the cash conversion cycle for your business. Equally, by eliminating products and SKUs that don’t sell, you can reduce the amount of cash tied up in long cash conversion products. All of this is critical to small businesses. The question is not “do I need an inventory management system” but “how much money and time should I invest”. Then you also need to consider growth. Switching systems later can be very disruptive and painful. While free inventory management software is available for your small business, that may not be the best long-term strategy. Better to buy a service or product that can grow with you.
There are lots of different small business inventory management software options available online. A quick search can reveal lots of options. Do some research and see which ones match both your budget and your business needs. At Ordoro would love to help you with your inventory management. We offer a wide range of inventory and business management tools to help you better manage your online business.
Hopefully, now you’ve seen how important small business inventory management can be. By taking some time now to set up a successful system, you could be saving yourself a huge headache in the future. A proper inventory control system and good small business inventory software will help you run your business more efficiently and help you make important purchasing decisions quickly and with confidence.