Wednesday, 28th September 2022 | Management

Tips for keeping your inventory secured and your brand trustworthy

Inventory management, the practice of having the right–and right amount–of products for sale, isn’t the sexiest part of running a small business but it is crucial. Failure to stay on top of your inventory can cost your company time and money.

Tips for keeping your inventory secured and your brand trustworthy

Inventory management, the practice of having the right–and right amount–of products for sale, isn’t the sexiest part of running a small business but it is crucial. Failure to stay on top of your inventory can cost your company time and money, but even more worryingly, it can destroy your reputation with your customers. Like supply chain management in general, inventory management is largely a matter of planning and organization. Read on for top tips on how to make sure you don’t have to tell your customers you’re sold out.

What is inventory management?

Your job as a small business owner is to meet the demand of your customers by supplying them with the products they want, when they want. It sounds simple enough, but businesses can’t just order as much as possible. There are costs associated with carrying excess inventory, and you can lose money if you have to sell off product at deep discounts. Foreseeing customer taste and demand is a key component of inventory management, and when done correctly, it will boost your business and help foster customer loyalty.

Why is inventory management important to your business? 

According to Software Path, only about 18% of small businesses use an inventory tool, and nearly half–43%--either don’t track inventory at all or they do so manually. This means that these businesses are making stocking decisions without the pertinent data. This can lead to having too much or too little stock, cash flow problems, and a disorganized budget. By regularly surveying your inventory, you can make informed business decisions to ensure you’ll continue to profit. 

Additionally (and importantly), a well-managed inventory will help ensure that you have the stock your customers want, when they want it. This directly affects sales, but it also demonstrates good business practices to your customers.

Top 4 inventory management tips for your business

Stay informed and be strategic

Prioritize taking stock of your…stock. Regularly assessing your inventory will enable you to make informed decisions about how much product you need–and how much you might need in the future. Include inventory management in your everyday operations to take the guesswork out of ordering.

Listen to your customers

If you and your staff aren’t paying attention to your customers’ requests, you’re leaving money on the table. Train your staff to note what your customers are asking for and to take these requests to management. Analyze your competition and see what they’re carrying. Be proactive in researching and analyzing the best products on the market.

Observe and anticipate seasonal trends 

Every business experiences ebbs and flows and your ordering behaviour should reflect that. Document sales data over time so you can predict peaks and valleys, and secure inventory accordingly. 

Use promotions strategically 

Even the most well-managed businesses end up with overstock from time to time. If you’ve got product you need to move, you can set up a promotion to entice buyers. Be strategic about the deals you're offering. Too deep a discount can lose you money so aim for the highest sale price that will move your product. 

If you want to compete in your marketplace, inventory management is key. By prioritizing regular assessments you can track your expenditures, purchase strategically, and keep your customers happy.

 

Read Also

5 Strategies for Growing your Business

What can I do to start developing a plan for growth?

Deciding to grow your business is a big step, so take a moment to congratulate yourself. Now, let’s get to work. The first thing to do is to develop a plan, and these five strategies can help.

1. Take care of your cash flow

Just for everyday operations, businesses need to have a steady flow of capital coming in and going out, but the importance of your cash flow intensifies when you’re planning to expand. 

Survey your income and expense reports to determine your current cash flow, and identify trends so you can estimate how much you’ll have in the future. Don’t stop there. Make sure that you return to this information regularly to ensure you remain on the right path. 

Should you find yourself in a cash flow crunch, you can consider a business line of credit so you can continue to take care of your responsibilities. Alternatively, you can take out a small business loan. 

2. Invest in marketing and sales

It’s common for sales and marketing costs to fall to the bottom of a small business’ priority list, but they’re an absolutely crucial investment, especially if you’re expanding. Bear in mind that marketing and sales strategies and tactics can be tailored to your business’ unique needs, so you’ve got a variety of options to choose from–all with different budgets. Consider your audience, sales goals, and business forecast to build regular (think monthly) marketing efforts into your long-term plan. Marketing your business is an investment in its success. 

3. Attend to your core audience while attracting new customers 

Expansion often involves courting new customers, weather from different market segments or simply additional regions. It’s important that during the growth process resources and attention aren’t stolen from your core customers. They’re the ones who got you here, after all. 

One way to give everyone the attention they deserve is to break your audience (and marketing dollars) into distinct segments and sell each according to their wants. Be open to different configurations. For example, depending on the situation you might want to serve everyone under a single brand, or develop distinct brands for different segments. 

4. Confirm your supply

Few things can turn customers away faster than hearing you don’t have the products or services they need. Supply chain issues and slow delivery since the pandemic have put an increasing number of businesses in a precarious position when it comes to meeting customer demands, so your expansion plans should include the establishment of relationships with multiple reliable suppliers. Your efforts in advance demonstrate good business practices and respect for your customers. Plus, positive relationships with multiple suppliers can help you with your expansion goals. 

5. Ensure quality and consistency 

It should go without saying, but the last thing you want to happen when you expand is to have your quality or customer experience decline. Plan against this by establishing production, operations, and customer service standards. .

You have a better chance of expanding successfully if you plan carefully in advance. Attend to your finances, marketing, suppliers, and customers in advance to make sure you’re growing on a solid foundation. 

 

Speak to an iCapital advisor about small business loans or lines of credit to ensure steady cash flow during your expansion process. 

Marketing ,Accounting ,Management

What Is Working Capital and Why It’s Important In Your Business

 

What Is Working Capital?

When your company needs products or services in the short-term, you use working capital to pay for it. Unlike cash flow, which refers to money going in and out of the company, working capital is a snapshot of a company’s financial health. You can figure out what your company’s working capital is by looking at the value of your company’s assets minus your liabilities. This is the amount of money you have on hand to meet immediate expenses–in other words, your working capital.

 

Why is it important?

It’s obvious that a company should have the working capital it needs to pay its employees and purchase inventory, but your available working capital is also a good measure of your company’s overall financial picture. If you have access to sufficient or even plentiful working capital, you can rest assured that you have the resources to manage your upcoming expenses. If your working capital is low, you can run into problems.

Additionally, working capital is essential in helping businesses maintain and grow their operations in the future. With enough working capital, a business can cover its expenses even if there are outstanding payments from customers. In the best-case scenarios, businesses can use extra working capital to reinvest in their operations by buying additional inventory, launching marketing and promotions, and hiring additional staff. 

Every business should strive to have ample working capital, but this can be a challenge, particularly in times of economic downturn.

 

4 Tips To Improve Your Working Capital

1.Get a Cash Flow Forecast

It’s easier to get where you want to be if you have a clear picture of where you are. A cash flow forecast is a financial projection that shows how much money your company can expect to receive and when. Make sure you look at revenue, expenses, and net cash. With this information, you can make better, informed decisions about spending. 

2.Automate Business Processes

Your working capital relies on receiving payment, so it makes good business sense to streamline the invoicing process. Using an automatic invoicing system, particularly one that’s tied to the delivery of your product or service, will free up time and, importantly, ensure your invoicing isn’t delayed due to busy employees or time constraints. The ability to track your invoices can make your working capital more predictable, which will allow you to make educated decisions about spending.

3.Incentivize Receivables

If you run a small- or medium-sized business, you’ve experienced late payment, or even worse, no payment at all. Following up with outstanding invoices is time-consuming and frustrating, so it’s smart to bake in incentives for customers, suppliers, and vendors who meet their obligations. Incentives could be monetary or symbolic in nature. The idea is to encourage good business practices while fostering positive relationships.

4.Improve Inventory Management & Avoid Stockpiling

Inventory management is the process of matching your company’s inventory to expected sales. The trick is to make sure you have enough–but not too much. Stockpiling inventory is expensive, and money tied up in overstock can’t be spent on more immediate needs. Consider investing in a digital solution.

Access to sufficient working capital is a great indicator that your business is healthy, and a healthy business is one that’s positioned to grow and take on new opportunities. 



 

Accounting ,Management

Marketing ideas for your business in the new year

As the end of the year approaches, it’s time to revisit your marketing strategy to meet current consumer expectations. Forecasting trends is tricky, but what’s clear is that in 2023, customers value privacy, inclusivity, transparency, and overall authenticity, and it’s your job to show them how your business practices meet these ideals. Read on for six steps you take right now to market your business in 2023.

Understand your changing audience

The first thing you need to do is revisit your market. Review your sales and marketing data to make sure you have a realistic grasp on the size, demographics, and character of your target market. Pay close attention to any changes in your ideal customer and use this updated intel to seek out new opportunities. For example, if your business has grown or taken a new direction in recent years, it might be attracting a new audience. Make sure you’re communicating with the most appropriate market segment.

Update your website

Your website is one of your most valuable marketing assets so it’s crucial that it be in good shape. Review your site to make sure all the content is correct and up-to-date. Check to make sure that it loads quickly and displays correctly across desktop, tablet, and mobile platforms. You probably look at your site regularly so consider getting someone with “fresh eyes” to take a look. Ensure that your site works intuitively and offers a seamless customer experience. A site that’s pleasant to use will help you convert new visitors and retain returning ones. 

Maximize the potential of social media 

With more than 4.7 billion people using social media, your business cannot afford to ignore it. If you’re just starting out on social platforms, now is the time to claim your presence. Set up accounts for your business on top platforms like Instagram, Facebook, and TikTok. Investigate which sites your ideal customers might be using and ensure you’re on them too. Post relevant content, regularly, and make sure that you keep your profiles fresh and current. Try running contests or promotions to boost engagement, and take advantage of the built-in shopping capabilities available on many platforms. You can communicate a lot about your brand values by aligning yourself with other local small businesses through collaborations or sponsorships. 

Leverage video content and live streaming

Video content has been a rising trend for the past several years, and is well-suited to businesses who want to increase awareness, improve lead generation and sales, and reduce support calls. Consider how video content might work for your business, keeping in mind that consumers appreciate being entertained. Live streaming is popular and an effective way to connect with your audience in real time. Engage your audience with quality storytelling. Inform them with a clear and concise script. Be creative. 

Get interactive with your audience 

When was the last time you did an online quiz or game? How about worked with an online calculator or map? Interactive content is engaging, which is why audiences–and marketers–love it. It’s low-cost and can help you increase brand loyalty, generate leads, and drive sales. Think about ways your business can use interactive content to grab your customers’ attention. 

Respect consumer privacy

More than ever, consumers are concerned about privacy. Demonstrate respect for your customers’ privacy by compliance with standards like GDPR, by properly acquiring and using user data, and by continually informing your customers of exactly how you’re handling their information.
 

If you want to stay ahead of your competitors in 2023, now is the time to fine-tune your marketing efforts to communicate your business’ authentic brand and values. Take an inclusive, transparent, privacy-first approach, to reach your target audience.

 

Marketing

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