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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How to Perfect Your Inventory Without Breaking the Bank
Maintain just enough inventory to fulfill expected orders plus a small buffer to cover unexpected demand surges without overstocking.
Calculate your average monthly or weekly sales and produce slightly more — for example, if you sell 30 units monthly, make 40 to have about a 33% buffer.
Use limited production runs with scarcity to spur urgency and manage inventory risk — selling out occasionally can increase customer interest.
Be mindful of product perishability if applicable, especially for skincare or food products, to avoid waste.
Inventory management is about being intentional and adaptable, balancing storage space, sales fluctuations, and customer satisfaction.
Inventory Management Needs Flexibility
- Inventory control is less about perfection and more about intentional, flexible management.
- Balancing stock avoids panic, missed sales, and inventory-related problems while maintaining peace of mind.
Consider Perishability and Seasonality
- Adapting inventory management to product perishability, like skincare shelf life, is crucial for small businesses.
- Seasonal variations and product lifespan should heavily influence stock decisions.