One of the most overlooked parts of operating any POS based business is inventory management, and being able to control the flow of your inventory. Many times business owners don’t give this a second thought, until their inventory management system collapses. Needless to say, at that point it’s simply too late to consider alternatives and fixes. Your approach to inventory control then becomes reactive instead of proactive, which is never a good thing for your small business. Without the proper inventory management, your company can quickly run out of stock leading to lost sales and potential customers. After all your sales are directly linked to your inventory, and without being able to maintain and sell your product, you won’t have the income stream your investors so desperately care about. If you are considering switching systems and your inventory platform to a truly scalable and stable network, you should understand the 5 common mistakes that most business owners make. Being able to recognize these problems and avoid them can help you avoid the costly problems that can often accompany these inventory pitfalls.
1. Excessive Inventory
The right inventory management platform must be able to access not only what is on hand, but show you when you are over your limits. Being overstocked or having too much inventory can be just as bad as not having any. Too much inventory can cause loss of revenue and limit your ability to make changes or buy the right inventory that your business needs. Inventory that sits on the shelf isn’t just wasteful, but can potentially lead to loss of revenue due to obsolescence or depreciation. Without the right tools at your disposal, you can be facing a huge mountain of data to overcome when it comes to tracking your sales and your inventory on hand. If you cannot prioritize your inventory, there is little chance that you can lead a successful inventory management system. You need the ability to set and flag the products that are the fastest movers or best sellers, in order to optimize your revenue. Software like Excel or Lotus may seem like natural ways to track your inventory, but they can quickly become cumbersome and lack the functionality you need in a true inventory based management system. Not having a plan in place to backup your database and inventory count is not good business practice. Of course all of these issues can easily be handled with a truly comprehensive inventory management platform like the cloud based solution from weteak.com. Their total integration allows you to manage inventory, track sales and link payments through one hub, reducing your workload and optimizing your business. Many people think of bootstrapping as a means to an end when other choices do not exist. Even though research indicates that bootstrapping is a risky way of starting a business, there is a vast number of start-up businesses utilizing this technique. The survival of a bootstrapping entrepreneur depends on his or her ability to be highly adaptable and operate on a shoe string budget. Following these simple steps can result in your successful venture towards bootstrapping your business.2.Improper inventory tracking tools
3.Limited inventory controls
4.Legacy software
5. No Backups!