Poor stock control and over-investment in fixed assets can mean your capital is tied up unnecessarily.
Efficient stock control (inventory) will mean you have the right amount of stock in the right place at the right time. It ensures that capital is not tied up unnecessarily, and protects production when there are problems with the supply chain.
You need to put systems in place to keep close track of stock levels and values. Taking control will allow you to free up cash, while also having the right amount of stock on hand.
There are a number of ways you can approach stock control. You can:
See our guide on stock control and inventory.
In the early years of your new business, you need to limit drawing on your cash reserves unnecessarily. Over-investment in fixed assets, such as office furniture or computer equipment, can be a problem. Acquiring fixed assets outright gives you ownership straightaway, but you have to pay for the full cost upfront, which drains cash.
The alternatives include:
See our guide on how to decide whether to lease or buy assets.