We dey talk about business growth, expansion, and all those big big things. But sometin wey dey happen behind the scene, wey many people no dey see, na im dey carry the business go far or drag am comot. Na inventory management wey we dey talk about.
Dis Inventory Management Wey You Dey Hear So, Wetin E Mean?
Understanding the Basics
Na simple tins. Inventory na all the goods wey your business dey keep, from raw materials wey you go use make something, to the finished products wey you dey ready to sell. Management side na how you go arrange am, track am, and make sure say you get di right amount for di right time.
Why E Choke For Business?
If you no manage your inventory well, e fit cause wahala. You fit get too much product wey nobody dey buy, so your money go just dey sleep for warehouse. Or you fit no get product at all when customer wan buy am, so dem go go dia neighbor shop. Both side na loss.
- Overstocking: This one na when you buy pass wetin you fit sell. Your money go stuck for goods wey no dey move. You go even spend more for storage and insurance.
- Understocking: This one na when you no get enough goods. Customers go vex, dem go carry dia money go elsewhere, and your business go lose potential sales.
- Spoilage and Obsolescence: Some products get expiry date. If you no sell am quick quick, e go spoil. Or sometimes, new models come out, and di old ones no dey valuable again.
How Inventory Management dey Build Small Small Business for Naija
Balancing Act: Demand and Supply
Di main thing for inventory management na to balance wetin people wan buy (demand) with wetin you get for stock (supply). For Nigeria, market fit dey change fast. One day, one product dey hot, next day, another one. So, you need to dey watch trends well well.
For example, if you dey sell phone accessories, you need to know when new phone models dey come out. You no wan get plenty cases for old phones wey nobody dey buy again, abi? You need to forecast demand based on market trends, customer feedback, and even seasonal demand like Christmas or Eid.
Di Cost of Holding Stock
Holding inventory no free o. You get warehouse rent, electricity for light and cooling, insurance, and even security. If you get too much stock, all these cost go increase, and e go chop your profit.
Imagine a small fashion boutique for Lagos. If dem fill dia whole shop with clothes wey no fit sell for rainy season, dem go suffer. Dem need to bring in clothes wey go sell quick, and dem need to manage di old stock by doing sales or promotions.
Inventory Management Tools Wey Fit Help You
No be say you need big big software wey cost plenty naira. Start small. Even good old Excel sheet fit help if you use am well.
- Spreadsheets: For small businesses, Excel or Google Sheets fit track sales, purchases, and current stock levels. You fit even use am to calculate reorder points.
- Inventory Management Software: As your business grow, you fit consider dedicated software. Some of dem dey affordable, and dem fit do automatic tracking, generate reports, and even alert you when stock dey low. Examples like Zoho Inventory or QuickBooks Inventory fit be good starting point.
- Point of Sale (POS) Systems: If you get physical store, POS system wey dey link to your inventory can be very useful. Every sale wey you make, e automatically reduce di stock for your inventory.
Common Mistakes and How to Avoid Them
The “I Go Buy Am Later” Mentality
Many small business owners for Nigeria dey wait until dem finish stock before dem go reorder. This one na big mistake. By then, customer don go. You need to set reorder points – minimum stock levels wey go trigger you to buy more.
For instance, if you dey sell recharge cards, you no wan wait until dem all finish before you go top up. You need to know how many cards you dey sell per day or week and set a reorder point, maybe when you dey left with 20 cards.
Mixing Business and Personal Finances
This one na common problem wey dey make small business fail. If you use your business money for personal things, you no go fit track your profit well. You go dey confused about how your business dey perform.
The Fix: Open separate bank account for your business. Track every kobo wey enter and every kobo wey come out. Use accounting apps like Pearmonie or dedicated inventory software wey dey link with finance.
Ignoring Data and Trends
The market dey change. If you no dey watch sales data, you no go know wetin dey sell and wetin no dey sell. You go just dey guess, and guessing no fit build a strong business.
How to Fix: Regularly review your sales records. Look for patterns. Which products dey sell fast? Which ones dey slow? Use this information to decide wetin to buy and wetin to sell. For example, if you notice say certain type of fabric dey sell more for certain months, stock up for dat time.
Conclusion: Making Inventory Your Ally
Inventory management no be luxury, e be necessity. E be like di backbone wey support di whole structure of your business. If e strong, your business go stand well. If e weak, e fit collapse.
By paying attention to how you manage your stock, forecasting demand, using the right tools, and avoiding common mistakes, you dey make sure say your business dey run smooth, dey make profit, and dey satisfy your customers. So, start dey see inventory management as your secret weapon for business success.
