Inventory is an aspect of small businesses that must be tended to. An article by Ted Hurlburt gave possible steps for small businesses to take when planning to reduce potential inventory problems. These steps include:
- Plan Sales
- Plan Inventories
- Plan Inventory Receipts
- Plan Markdowns
- Plan Dynamically
The article states that businesses often view compiling all of this information as time consuming and too expensive. However, this information can be utilized throughout the entire year as a way to reduce the amount of products leftover at the end and therefore decrease the necessary markdown in prices. Small businesses often face the issue of having too much or too little to ofter consumers. While it is beneficial for businesses to always have products in stock upon a customers request, it also poses a risk of potential loss in capital. Because of this, if companies can better predict and prepare for their year of sales ahead, they can reduce the risk of losing money which is vital for the success of small businesses.
