Course: Getting strategic with cash flow

Get strategic with inventory

Inventory is a delicate balance. Too much drains your capital. Not enough limits your revenue. 

That’s what happened to Bianca Nguyen, owner of Brighten Up Candles. After a large inventory purchase and slow sales, Bianca had more and more of her cash tied up in inventory.

Nguyen had to get strategic to keep her inventory moving — and cash flowing. She decided to have a “Spring Cleaning” sale to encourage customers to buy candles that had been sitting for months. 

She used the cash from that sale to place a small order of new seasonal candles and restock popular scents. By setting limits on the number of an item she would carry and focusing on bestsellers, Nguyen reduced her cash spending and improved her profitability.