Just few weeks ago I didn’t know the importance of forecasting until recently I learned how important it is to forecast in any business. I never thought of inventory as being cash I just thought of it as a bunch of stuff, and materials. I found this article in Forbes magazine that talks about how inventory is your cash. It discuses how you are supposed to treat your inventory, and how you are supposed to track all your inventory so that you can gain more cash then losing cash and better business that will make your consumers happy.
Having a business is not just about buying and selling you have to pay attention to what’s coming in and what’s going out and in order to do that you have to track everything. My family has a business and when they are doing their orders they do forecast everything. First time I saw them I didn’t know what they were doing until recently when I learned about it more. It’s not about having a lot of inventory in your business you have to see how much was sold, how much you have in hands, and how much you think will sell that’s what you bring in. By tracking and forecasting your inventory it will save you a lot of money because you don’t extra inventory sitting in stock that will not sell. The bigger the business you have the harder it gets to keep track of your inventory so that’s why everything has to be monitored so save you money.
As a business owner you might think you are keeping costs down, but without using the right steps it will get very difficult so you must track the entire inventory to make the business grow. For example, if you own a business that sells fresh products you want to make sure that you get new products in everyday you don’t want to order to much and it will stay there consumers won’t be interested in shopping there anymore because they don’t see fresh products. By forecasting and mentoring everything that’s coming in and going out will help you get fresh products everyday and will help your sells grow and be a successful business. This will also help you with product life cycle if a product was selling a lot and then it slows down you don’t want to keep ordering it for your inventory and it won’t sell. There are many systems to help a businessperson to track and forecast their products. There are special computers that will help just putting the information into the system and it will automatically tell you everything that you have and need in your inventory.
What do you think about inventory equaling cash? Do you think forecasting will help in having better successful business?