If you own a small retail business, the first few months or years will likely be filled with you trying to figure out what you’re doing and how to best manage everything that you have to take care of as a small business owner. One of the areas that you’re going to want to perfect as soon as possible is your inventory management.
Without proper inventory management, you could wind up with more inventory than you know what to do with and can’t sell or you could not have acquired enough inventory to meet the needs of your customers and may lose business because of it.
To help you in figuring this out and keeping track of all of your inventory needs, here are three tips for using technology to organize your inventory as a small business.
Don’t Over-Stock Your Inventory
One of the worst things you can do with your inventory is to have too much of it. If you have a large amount of items that you can’t or haven’t sold yet, not only is your cash flow now tied up in products that you’re not making money off of, but you’re also having to pay for space to house all the products as you wait for them to sell.
With this in mind, BusinessWomanGuide.org advises that you spend a lot of your time in the first few months or years of your business trying to find the ideal inventory level for each product you sell. By using technology like an inventory management system, you can gain invaluable insights about the items you stock to see how much of each product you’re moving each month and when you should be reordering to replenish your stores.
Consider An Inventory Management System
To help make keeping track of your inventory a little easier on you, you may want to consider getting an inventory management system that works well with the type of business that you’re running.
According to Meaghan Brophy, a contributor to Fit Small Business, an inventory management system will not only keep track of what you have in your inventory and inform you when you need to order more product, but it can also help you keep track of the inventory that you have, where it is, and where it’s going. So if you’re needing help with things like this, using the technology of an inventory management system could be the best option for you and help your business work smarter, not harder.
Name and Label Everything
If you don’t think you need an inventory management system yet, there are still ways that you can better manage and organize your inventory on your own.
To help you with this, Kimberlee Leonard, a contributor to Chron Small Business, recommends that you make sure that you name and label everything that comes into your inventory storage area. This includes both the individual items you have in your inventory as well as the storage spaces and locations where you’re placing your inventory. There are plenty of ways that you can make and print labels for your products, although doing this through the technology of an inventory management system may turn out to be the easiest option.
If you’re needing some help organizing and managing the inventory for your small business, consider using the tips mentioned above to use technology to help you with this task.