Optimal Work Daily - Career, Productivity and Entrepreneurship 1934: [Part 1] Inventory Management And How To Handle Cash Flow For An Online Store by Steve Chou of MyWifeQuitHerJob
Jan 16, 2026
Learn how managing inventory and cash flow can make or break an online store. Discover why strong paper profits don't always mean cash in hand. Explore the challenges of reinvesting profits to keep items in stock and the tax implications that can lead to unexpected shortfalls. Scaling your business requires large inventory buys, but it also demands careful planning to avoid financial pitfalls. This discussion sheds light on the realities of e-commerce and the importance of balancing growth with cash reserves.
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Stress Of Moving An Inventory Business
- Dan describes moving Bumblebee Linens into a larger facility while fulfilling orders and managing four employees amid chaos.
- The move was forced by lease expiration and a 20-foot container arriving, illustrating real operational stress.
Paper Profits Can Mask Cash Problems
- Steve explains you can look profitable on paper while being cash-poor because inventory ties up capital.
- He emphasizes buying in bulk to get best prices forces large cash investments even when margins look strong.
Writing Six-Figure Checks For Inventory
- Dan shares Bumblebee Linens routinely writes large checks and recently spent six figures on holiday inventory.
- They accept the short-term cash strain because they expect sales to convert that inventory into revenue.