It’s time to be smart with your stock! Stock that doesn’t sell takes up space and unfortunately represents wasted cash.
Small business owners have to spend carefully and consider whether each purchase is going to be beneficial to the business and, ultimately, whether it’s going to make money. Here’s how to implement a cost-saving, customer-pleasing, streamlined machine. Yes!
Do a big audit of what you already have
If you’re looking for a more efficient way to manage your inventory, here’s how to start. It might sound obvious but you’ve got to try and find out what isn’t working for you, and those things which are working really well.
To get started, list everything you own, you could do this in Excel so that you can easily add to it and make amendments. Make columns for;
- The amount you have of each product, i.e. 11 black skinny jeans in size ‘M’.
- The cost of the item; what did you buy it for, and how much are you planning to sell it for?
- If you deal in perishable goods, make a list for the shelf life or ‘best before’ dates.
- Your best-sellers.
Once you’ve got this list, you should be able to work out what products need to be sold quickly before they go out of date, the items that are running low (if they’re on your best-seller list, it’s time to re-order!) and those products which you’ve got loads of (perfect opportunity for a sale!).
You’ll easily be able to identify the sales opportunities you might be missing out on.
Create a forecast
Now you’ve got all this helpful data, you can start building a more in-depth a plan for managing stock in the future. You’ll save a lot of money and time if you can accurately predict when you’ll need to restock a specific item, especially if you can cross reference this with cheap times to buy. You’ll always be one step ahead of your customers!
Seasonal changes are a great place to start. Make a precise record of when you sell more, when customers start preparing for Christmas or summer, and when spending slows down again. Every niche and sector is different, but most will follow a regular stock ordering pattern.
Invest in tech
Managing inventory is something you’ll always need to do. Thankfully, there are online tools that can analyse and create predictions for you. Seasonal fluctuations will always be there, and naturally this has an effect on the stock you use and need to re-order again.
Software is the key to organising this easily and quickly. It can automate all the maths you don’t want to do, predict when you’re going to run out of each item, and even automatically reorder stock for you.
You can raise from £5,000 to over £150,000 with Capify’s Small Business Loan to pay for a stock management software in the business. The manageable daily or weekly repayments help you protect your cash flow and keep payments affordable.
Find out how much cash you could raise in just 60 seconds! Get a quick quote.Get A Quote
Look at your relationship with suppliers and stockists
Clever stock management isn’t just down to you, your suppliers play a big role as well. Their prices, ordering processes, and customer service can make your system work seamlessly, or put problems and delays in your way.
As well as reviewing the physical stock on your shelves, talk to your suppliers about what they can do to make stock ordering easier and simpler for you. If they can’t accommodate you, it might be time to make a switch to someone who can.
Remember! Your suppliers want to keep you as a customer. Have a conversation with them and see what they can do for yo
If you’re keen to update your stock management system and get those boxes and shelves organised, or if you simply want to buy more inventory; Capify can help with the costs. The Capify Business Loan is fast, reliable and flexible. Get a quick quote to find out how much you could raise for your small business.