Inventory Management Tips for Small Businesses

Whether you have been successfully running your business for several years now or started a business during the pandemic for some extra cash, storing inventory in the dining room or garage is perhaps less than ideal. But renting a larger office space is also something you cannot afford. So where do you go from here?

As your business grows, you will need to keep on top of inventory management. This is why we are sharing the best tips to help you stay tidy, efficient, and on track.

Clear out the old

Sure, it can be tempting to keep old stock on sale just in case, so that you can at least make back the money you paid for it. But the space being used by old stock could be taken up by new and exciting products you have got more chance of selling at full price.

Decluttering is the first step to inventory management and will reduce your bookkeeping workload in the future.

And it is not just stock that you can get rid of; old supplies like laptops, Wi-Fi hubs, and business cards can also be cleared out, recycled, or donated.

Once you have decluttered, do not forget to adjust your inventory as you go along.

Bestsellers take prime location

There is a general 80/20 rule for small business owners. 80% of sales will typically come from just 20% of your product line. These bestsellers are making up so much of your profit that they need to be kept center stage. This will help you when fulfilling orders, but also help you to keep tabs on inventory.

Reaching for a bestselling product to pack for one of your favorite customers, only to find you are out of stock will not look great for your brand…

For inventory management, you should make sure to prioritize your top 20%, and regularly update your inventory data so you always know what you have available.

Separate business and home life

As we all know, Steve Jobs started Apple in his garage. But as the business grew, they quickly upgraded to office space. If you are still cooped up at home but are feeling a little overwhelmed by stock and supplies creeping into your living space, why not consider taking the plunge?

Small business owners might not be able to afford a new office, but self-storage is a much more affordable option. Milwaukee Self Storage offers several sizes, depending on your needs at a price to suit your budget. In the unit, you can organize, store and manage inventory – making it easier to find things when you need them.

It will also help you regain your living space to achieve a better work-life balance.

Depending on the type of storage you go for, you may even be able to create a packing station, so that all fulfillment is done out of the house.

Inventory management apps

As your business grows, it might be worth considering an automated system or inventory management app to help. So, you have one less thing to keep up to on your never-ending list of things to do.