Inventory is perhaps the most important asset your company has and proper management is essential to the profitability of your business. Inventory can come in many forms depending on your business model. There are certain times of the year when items can be less expensive and having the capital to stock up on essential products during that time can significantly impact your bottom line. Additionally, having the room to store surplus inventory can help you save money and be prepared for any situation. It also enables you to offer competitive pricing as many large companies benefit from the ability to discount products because they are able to buy in bulk. Here we’ve outlined a few ways that you can use a merchant cash advance, MCA, to maximize the profit margins of your products and services.
Seasonal Opportunities
Many manufacturers will purge their surplus inventory during the slower winter months and it’s important that small business owners take advantage of this opportunity. While you may be loyal to your current suppliers it’s to your advantage to shop around for seasonal deals. This also presents a chance for you to try a new product line or different materials as you won’t be paying full price for them. This can open up new markets for your company and possibly reduce costs well into the future.
Increase Storage
Having the ability to store surplus inventory can significantly reduce costs and ensure you are prepared for any type of shortage. This could include an addition onto your current establishment or renting outside storage space. For those in the food industry an investment in a walk in freezer or additional refrigeration will allow you to stock up on items with longer shelf lives. You do want to make sure the investment will pay off in the end so you will want to compare the numbers carefully to ensure you’re making the right decision.
Management Software
Purchasing inventory management software will have a far reaching effect on your business. There are different products available for nearly every industry and these increased controls will help you keep track of your current inventory and alert you when stocks are getting low. They help to save time for your management team and will let you know of any discrepancies. Organizing your inventory will save time and money and ensure you don’t over purchase or run out of important items. Management software will help you keep your inventory at optimal levels and allow you to focus on growing your business.
Promotions
Having additional inventory can allow you to run promotions and sales without cutting into your bottom line. Purchasing in bulk whenever you have the opportunity will help you compete with larger businesses and keep your marketing budget in line. Giveaways and customer rewards programs can be expensive and difficult to account for but purchasing bulk inventory at a discounted rate will ensure you don’t negatively affect your revenue stream.
In many cases small business owners lack the credit or collateral to access the money needed to remain flexible. Quikstone Capital Solutions provides cash for businesses. A merchant cash advance from Quikstone Capital Solutions is a business loan alternative that can help your business thrive and prosper, whether you need cash to buy equipment, cash to renovate or expand, cash to purchase inventory, cash to advertise or cash for emergencies. Quikstone Capital Solutions can help. Contact us for a consultation today or simply click below.
Download this case study to find out how an MCA from Quikstone Capital Solutions helped this business get the extra invenotry it needed and stay afloat in a down economy.
