Turn Inventory to Cash

Advice for small businesses: keep a close eye on your inventory system and supply chain planning. Maintaining the delicate balance between having enough inventory to meet demand and not having too much that goes to waste is critical. If the stock isn’t managed correctly, it could trick you into believing that your assets are higher than what they are. A tip for small businesses is to develop a sales forecast. In your business plan, you need to determine how much you estimate you will be selling daily, weekly, monthly, or quarterly. Then plan your sourcing lead times to have enough inventory at the right time in the right place to meet demands without going over. Remember that you must try to buy the right amount of stock, for the right time, for the right customer, and have it at the right place and at the right time.