Organizing and tracking inventory takes a long time, but is an integral part of a successful business. These small business inventory management tips will help you keep the business running smoothly. Starting a small business is a great achievement knowing the many things that need to be done and considered before taking the big step.
In addition to running a business, many business owners must keep track of their work inventory, whether in the form of supply or finished product. Diligent, disorganized, unstructured inventory can quickly turn the accounting process into a nightmare.
Maintaining an accurate inventory is critical to the success of a small business. But if your capital and space are limited, you need to be creative in the way you store and track inventory as your business grows.
These tips and tools are specialized for small businesses and help you reduce inventory cost over time, create a harmonious work environment, and organize your inventory effectively.
Clean up old unused inventory
Reduce things by yourself by removing the ones you don’t use. After investing your money in a new company, you will be afraid to throw away anything in case you need to use it again. We understand that every penny you spend has to get the maximum benefit. However, with the consumables you no longer use and the products you no longer sell, you now need to clean up the complexity of your workspace. If you have office supplies such as computers that are subject to depreciation charges, such as taxes, inform your accountant that these items are no longer in service.
Small Business Inventory Management
Most small business owners adopt the 80/20 rule. 80% of sales volume occurs in only 20% of products. In other words, there are some items that make a lot of money for you and your small business.
When creating a manual inventory, it’s a good idea to start with the ones that change the most. Calculate the best seller and store the same amount in storage as you currently have on the shelves. When you reach the top 20% of your inventory, the rest is ordered much faster.
Keep the inventory Off-site and organized
Small business inventory management systems can be effective without being complex or costing a fortune. Most importantly, you only need to work for certain parts of the business. For example, a crafts store that sells unique items requires a much more professional management platform than a company that sells the same item multiple times.
If the office space is complicated by excess inventory, the work cannot be done efficiently. Moving these items out of the office to your own storage may be the easiest and most cost-effective solution. For most SMEs, storage unit is equivalent to their garage, which is not the ideal place to store your business inventory. A secure and climate controlled self-storage unit cannot be substituted with your garage and therefore, it is only wise to rent self-storage units to stock and replenish your inventory. Most of the storage space is much cheaper than commercial warehouse space.
Getting organized can help your business thrive and allow you to concentrate on work. Let us help you declutter and find the right storage unit for your business.