Side Hustle School Ep. 3115 - Q&A: “How much inventory should I keep on hand?”
Jul 12, 2025
Discover the art of inventory management in small businesses, especially when resources are tight. Learn how to strike the perfect balance between having too much and not enough stock. The discussion includes practical strategies for sales forecasting and managing limited product runs, particularly for perishable items. Entrepreneurs will pick up tips to navigate these crucial challenges while fostering growth and efficiency.
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Maintain Balanced Inventory Levels
- Keep inventory to cover expected orders plus a small buffer, tailored to your average sales period.
- Avoid holding more stock than you can sell or store within a short timeframe to conserve cash and space.
Use Sales Data to Forecast Inventory
- Use past sales data to calculate an average monthly or weekly sales figure to guide production.
- Adjust production quantities with a 33% buffer to handle demand surges without excess stock.
Implement Limited Runs to Drive Urgency
- Try limited production runs to create urgency and avoid overproduction.
- Selling out occasionally can stimulate demand and encourage quicker purchases.