Stocktaking Tips for Small Businesses to Maximise Profit

As a small business owner, you have to perform multiple roles. From managing day-to-day operations to capitalising on marketing opportunities, the success of your venture hinges on the multifaceted responsibilities you take on every day. However, one of the most challenging and time-consuming jobs that needs your attention is stocktaking.

For a small business, catering to demand while maximising turnover can be difficult. The lack of dedicated staff makes it even more laborious. But fret not, there is light at the end of the tunnel.

By starting with the basics, utlising business tools, and strategic planning, you can conduct a successful stocktake by yourself. Employ these tips to make sure you are adequately stocked to meet demand without wasting money on excess inventory.

Stocktaking is essential to every company but challenging for a small business due to limited resources. Whether you run a cafe, a retail store, or any other kind of establishment, keeping up with your stocks is absolutely crucial to curtail unnecessary losses and improve profitability. Here are a few things you can do to make stocktakes  efficient.

Stocktaking: Small Business Tips

• Maintain Accurate Records

This may be obvious, but maintaining accurate records lays the foundation for stocktaking. Having up-to-date records will help you make informed decisions to prevent overstocking or understocking while keeping stocks that are in demand. To track stock levels with accuracy, invest in the right software that accounts for purchase orders, sales orders, stock transfers, receipts, and more.

• Count Stocks Regularly

Regular inventory counts will keep you informed regarding the stocks you have at any given time. Set a schedule for the stocktake, such as monthly or quarterly, and document results thoroughly. To keep a closer eye on your stocks and prevent discrepancies from growing into larger issues, you can also perform weekly or monthly stocktakes.

• Track Shelf Life

Expired items can diminish profits, which small businesses cannot afford. Keep track of the shelf life and expiration date of your stocks, especially if you are selling perishable items like food and beverages. Creating a system of reminders can also help you check expiry and restock accordingly.

• Leverage Technology

As a small business, technology is your best friend. There are many point-of-sale systems that can automate inventory counting after a sale. Automation will help you maintain accurate stock levels without time-consuming manual processes. Additionally, inventory management technology gives precious time to small business owners to focus on core areas while automating inventory control.

• Develop a Restocking Process

Having adequate stocks in hand is a major challenge for every business. Too many stocks can consume purchasing funds excessively and increase storage costs. On the other hand, if stock levels are low, sales and customer experience could take a hit. Therefore, creating a reliable restocking system is crucial. Create a system accounting for minimum order requirements and vendor lead times to have adequate stocks catering to the demand. Another wise practice is to create a method for tracking consumption so you can take the guesswork out of the equation and rely on hard data.

• Streamline Inventory Orders

Set up an automated ordering system that triggers an order to the supplier when stocks reach a certain level. Streamlining the ordering process with an automated system eliminates the need to manually check and enter data, saving you a tremendous amount of time.

• Forecast Demand

Predicting future demand for your goods is key to planning strategically in advance. Use forecasting tools to prevent overstocking or stockouts and handle inventory properly.

Conclusion

Stocktaking can be tricky, especially for low-volume operators. But, the right tools and strategies can enable you to run operations smoothly without incurring losses. If possible, you can also consider buying in bulk and rotating stocks before expiry. Utilise technologies like barcode scanners and automated inventory management systems for real-time stock counts and order tracking. Lastly, keep an eye out for slow-moving stocks to prevent spillage. These tips can help small businesses take control of their inventory without breaking the bank.

Or, you can let go of the hassle and focus on improving core competencies while entrusting stocktaking to the experts. At Hospitality Partners, we ensure accurate and reliable inventory counts so you can worry less about stocktaking and focus on growing your business. With our seasoned stocktakers, you can enjoy the peace of mind of knowing that your inventory is handled by the experts.