Strategies for Growing Your Inventory-Based Business the Right Way
Starting your very own small business is an incredibly exciting endeavor. It’s impossible to overstate the amazing feeling that can come along with being your own boss, finally taking command over your career, and doing something you truly love (and calling it work!) on a day-to-day basis.
All that being said, there are also few things that are as challenging as starting your own business, and you can anticipate some growing pains. Handling your inventory, in particular, poses a unique set of challenges to the small business owner, so knowing how to move forward can really save money, time, energy, and heartache in the long run.
Strategies for Ordering Extra Inventory
When it comes to selling products, Acumen explains there’s something known as the “80-20 rule.” It dictates that in most cases, about 80 percent of your revenue will wind up coming from about 20 percent of the products you sell. In other words, the best-sellers make you the vast majority of your money. Therefore, you want to stock accordingly, both in terms of numbers and location.
When the time comes to start moving part of your inventory into an off-site storage facility, it’s going to be best to start with some of the products that don’t sell quite as quickly. Since you don’t need to access these products as regularly as the hotter items, your business won’t suffer for having them off-site.
Upgrading Your Storage
When you’re starting out with off-site storage, consider starting small to save money. Self-storage facilities are a great way to keep your extra inventory safe when you’ve run out of room in your home, office, or garage. The vast majority of them are climate-controlled, so you can keep just about anything safe and in good condition while it’s waiting to be sold.
Self-storage units are relatively affordable. Using one to store your inventory in the early days of your business’s expansion will help you save money until the time comes to invest in a larger space like a warehouse.
When the time eventually does come to move some of your inventory into a warehouse for storage, you might need to hire some employees to help manage inventory.
In situations where you need to find laborers on the quick, it can be best to go with an on-demand labor service. These companies are usually more adept than traditional staffing agencies when it comes to providing skilled laborers on short notice. What’s more, you can often find temporary or permanent staff so you can shape your decisions to your situation.
Using Technology to Your Advantage
Your smartphone is your secret weapon when it comes to managing your inventory, as you can use powerful apps to keep track of everything. Check out an app like Inventory+ or Shyp for quick and easy inventory management, even when you’re on the go.
Of course, if you’re mobile and managing your inventory, you’ll want to make sure that you have a data plan that won’t cost you an arm and a leg. Check out some affordable and flexible unlimited data plans so that you don’t wind up paying overage fees at the end of each month.
Growing your inventory-based small business doesn’t have to be so daunting. Keep a close eye on how much room you have for storage, and only upgrade if and when you need to. And when you do, you’ll know how to utilize the right tools and the best people to your advantage.