Add Inventory or Equipment
When your business model involves the sale of goods, you need inventory. After all, it just makes sense. How can you possibly make money selling something if you don’t have enough stock on hand?
More than likely, you already know the high cost of too little inventory. Your marketing plan may be top notch and attract more customers than you ever anticipated.
Of course, turning over inventory faster than expected means that you’re generating sales. That said, you don’t want to end up in a position where your shelves are bare, or your warehouse is empty.
Companies and people themselves often expect and sometimes even require instant gratification. If you can’t fulfill orders on a timely basis, you’ll lose business.
Blame it on the internet, if you must. A few keystrokes and your prospective buyers search out your competitors. The results could mean more than a one-time loss.
Many business owners learn the hard way that customer loyalty doesn’t necessarily exist. Your chances for future and repeat business diminish when you have fulfillment issues.
Inventory comes in all shapes, sizes, and types. For some retail vendors, inventory consists of specialized clothing lines. However, finished goods are not the only items offered for sale.
For example, your business might sell nails used for construction projects. Inventory consists of different types of merchandise, including raw materials used to complete finished products.
No question that inventory of any kind requires money. And, you’ll want to figure out the smartest way to ensure your inventory levels will enable you to make sales and increase revenue.