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For the smaller inventory intensive businesses, management of the inventory is a most important task for the entrepreneur. Unfortunately, it is not always understood. In many retail businesses, inventory is the largest asset on the balance sheet. Today's technology allows even the smallest retailers to track their inventory and sales and to know what their customers are buying.


One of your most important activities is planning your inventory purchases. Too often Nike Air Max 97 Silver Saldi , little or no planning goes into inventory acquisition. Know what your customers are buying and what is not moving. If you don't know this, you can not plan your inventory. Don't buy yesterday's sales; buy tomorrow's sales. Use yesterday as a guide, adjusted by your experience, research in the marketplace and knowledge of your target audience. Forecast your sales as accurately as possible to insure your inventory matches those forecasts


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Knowing what is selling and adjusting your inventory accordingly should result in improved inventory turns. One of the best ways to improve financial performance is to increase the turnover, the number of times the value of your inventory sells each year. Revenue increases, without additional fixed costs Nike Air Max 97 2019 Saldi , results in increased cash income and profit.


Equally important is careful inventory management of seasonal items. Try not to have a stock room full of last year's inventory waiting for next season. Not only is the inventory of no value, it is incurring interest expense, storage expense and the risk of obselesence. Inventory planning is an important tool to prevent this.