Taking control of your stock is a core component of running a successful business.
Taking control of your stock is a core component of running a successful business. It aims to have the right stock available at the right time and place and in required quantities. The practice of stock-taking should become a standard business control procedure and here are some of the key reasons why:-
Keeps tabs on your profitability
Profit is the main goal of running a business. In this era of ever-growing business expenses and operations costs, running a successful business greatly relies on factors such as keeping tabs on your gross profit and losses since the only way to gauge the performance of your business is knowing how much you are making from goods sold. Regular stock-taking helps you identify slow-moving stock and fast-moving stock hence you can make better decisions on what items you do need to keep restocking that consequently increasing business profitability
Safeguards Your Business Against Theft and Fraud
Regular stocktaking goes a long way to ensure you are keeping track of all stock that comes in, what has been sold and what items are spoilt. This help you to catch discrepancies in your stock such as missing items that might be a sign that there is some theft or fraud that might be going on.
Get Accurate Stock Level Reports
If your stock levels are inaccurate you will be prone to over or under stocking at your store and not selling stock that you do not have .This can adversely impact business performance and customer
Regular Stocktaking will help you to gauge if your stock levels are accurate which will ensure you avoid over-stocking, identify any damaged stock or misplaced returns, alert you to theft or bad habits. Knowing your stock levels are correct ensures that you can plan with confidence, maximize your profits, provide better customer service and ultimately strengthen your competitive position in the market place.
Having accurate stock level reports also goes along way when seeking for business loans from financial institutions when you are looking to get financial assistance that can boost your business.
Review Pricing Strategy
By carrying out regular stock takes you can monitor your purchase prices at the time of stocktaking against the latest purchase prices as you will be able to monitor and track changes in the market and how it will impact your margins. Times when the purchase prices rises you will be able to make a calculated price change based on your sales report generated from the stock take.
If regular stock takes do not take place, you will naturally assume all your stock is in sealable condition ,so when you go to retrieve an item for sale or in case of a customer’s order ,you might be shocked to discover at the last moment that the product is not available therefore and this can adversely impact business performance and customer service.
Don’t be too comfortable operating your business based on assumptions ,doing regular stock takes for your business is paramount whether you’re running a small business enterprise or a relatively big business enterprise as you need to have a clear picture of where your business is heading to.
Doing regular stock takes for your business is paramount.
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