Unfortunately, inventory has a funny way of consuming any available cash. The name of the game is turning inventory as quickly as possible at the best margins possible. Inventory is the critical cash-generating asset of any retailer. Typically, most small retailers’ assets are tied up in inventory, in some cases as much as 70% to 80% of those assets. The answer can usually be found on the Balance Sheet. Without question, cash flow is the most serious issue small retailers struggle with. They may describe it in different terms - their sales are flat, margins are off, expenses are up - but in the end what they’re talking about is cash flow. Whenever I get a call from a small retailer looking for help, they often are most concerned about cash flow. Here’s how to manage inventory so that cash flow doesn’t suffer.Ĭash flow is the most serious issue small retailers struggle with. If your retail business’s cash flow is not what you need it to be, chances are your inventory is to blame.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |