Before Getting A Business Loan, Make Sure You Can Afford It

Before Getting A Business Loan, Make Sure You Can Afford It

If you’re running a small business that’s showing promise for growth and expansion (but you lack the needed funding to move it forward), a business loan may be what you were looking for.

Before deciding on applying for one, though, you will need to determine whether or not you can afford the costs involved.

Knowing the extra costs they usually involve and understanding how repayment commitments could impact your finances is what you need to get rid of whatever apprehensive or dreadful feelings that sometimes come with borrowing money.

If you want to know everything (cost related) beforehand, a business loan calculator can help you big time.

A business loan calculator is as easy as first grade math

A business loan calculator is a simple online device that will provide you information regarding the calculated costs of a loan, the amount of your monthly payments and other critical data.

The steps are simple to follow:

  1. Enter the amount of the loan you’re planning to take.
  2. Enter the number of monthly payments you prefer, choosing from a range of 24-60 months.
  3. Enter the interest rate.
  4. Click CALCULATE. The results from this business loan calculator will show you how much you need to pay monthly and the total cost of the loan (this covers total interest cost you shall have paid at the end of the loan term) with possible some minor documentation fees.

Should the numbers shown by the tool not align to what you have in mind (or should they tell you that you can’t afford the loan), simply click RESET CALCULATOR then put in new, revised entries (perhaps entering a longer term or lowering the loan amount) and repeat the process.

You can revisit your entries as many times as you need until it reflects the numbers you’ll be comfortable with, clearly letting you know you can afford the loan.

Knowing how interest charges work is essential

Interest is the price you pay for using a loan provider’s money. All loans come with it, more popularly referred to as APR (Annual Percentage Rate). Essentially, a lending institution takes the balance of your loan and multiplies it by your APR to calculate the interest cost for each monthly  payment.

Let’s say you take out a loan for $100,000. If your interest rate is 4.01%, it means you will be paying $4.01 per year for every $100 you owe.

However, because your balance decreases over the course of the year, you won’t be paying 4.01% of $100,000 but a slightly lower amount because interest is charged based on the principal’s balance each month.

There’s the yearly interest rate, but how to calculate it per month?

You’d like to know your interest rate per month?

Using the above example, simply divide 4.01% by 12. You’ll then have a monthly interest rate of 0.0033416 or, $334.16 on the $100,000 loan. If your monthly payment is $500, the $334.16 goes towards interest payment and the $165.84 goes to paying the principal.

As the principal balance goes down, so will your monthly interest payments.

What does all this mean? It means that if you can work out a lower interest rate on your loan, you’d be ahead of the game.

3 easy tips to get a lower interest rate

  1. Work towards getting a good credit rating by paying your other debts promptly.
  2. Make extra payments on your loan.
  3. If your credit rating is good, it’ll be smart to negotiate a lower interest rate with the lending outfit. They tend to look favorably on borrowers with high credit scores.

Getting a business loan could well be one of the toughest decisions you’ll have to make as a business owner, but if you do your math (and of course with the help of the business loan calculator), you should be able to determine if, in fact, you can or cannot afford a loan. 

So, why wait? Start planning how to grow your business.

6 Expert Tips for New Entrepreneurs for Buying Business Insurance

6 Expert Tips for New Entrepreneurs for Buying Business Insurance

business insurance

Most new business owners make the mistake of getting the least expensive business insurance they can find online. While a high premium cost doesn’t make sense for budding businesses, getting insurance that provides little to no protection is also not a smart move. To avoid overpaying for insurance you don’t need, the following are 6 expert tips for new business owners when it comes to buying business insurance.

Identify the Risks in Your Industry

Before you call in an insurance agent or start looking for business insurance plans online, you need to know the risks. Insurance companies will check your business independently to evaluate the relevant risk factors. This risk evaluation by insurance companies is referred to as underwriting and it determines whether a business gets approved for business insurance or not. Apart from the underwriting process, which is mandatory, we suggest doing an independent risk assessment to pinpoint assets that need extra protection.

It’s Better to Overestimate Than to Underestimate the Coverage Need

Opting for the minimum insurance coverage can leave you in a false sense of security and can catch you off guard during eventualities. Litigations against businesses can be brutal and can end up costing thousands of dollars in legal fees. Without proper liability coverage, this can take a bite out of the profit. Long story short, it’s better to pay more premium and get adequate coverage than to underestimate the coverage needs and risking your business.

Compare Insurance Prices Online

One of the things you should do before discussing anything with the insurance agents is to compare business insurance quotes online. This will help you zero in on value-for-money deals and smell a bad insurance offer from a mile away.

Consider Getting a Business Owner’s Policy for a Blanket Protection

BOP or Business Owner’s Policy is an insurance plan that includes several different types of coverages. These are perfect if you don’t know the types of risks you need coverage for. The BOP is cost effective as it’s cheaper than getting the coverages individually. Your business also gets coverage from all sorts of eventualities from fire and natural disasters to liability coverage. For most small businesses getting a BOP is enough, others may need to supplement these policies with specific insurance plans based on the nature of their businesses.

Minimize Risks to Reduce Insurance Premiums

Safety initiatives go a long way in reducing insurance premiums. During the underwriting process, the insurance evaluator takes note of all the safety measures employed by the company. A safety measure or lack thereof heavily influence the insurance cost. For example, a high-tech security system may earn you a lower premium rate for plans that cover theft.

Judge a Policy by What it Does Not Cover

While insurance agents often dwell on the benefits of a particular insurance plan they almost never spend enough time explaining the exclusions. All insurance plans have exclusions, these are specific scenarios, that the plan does not cover. The more exclusions a plan has, the more loopholes the insurance companies get to not pay a claim.

Dos and Don’ts of Printing Checks In-House

Inhouse checks

Even with multiple alternative payment methods available, there are many reasons why people still choose to use checks for payments. Businesses set up check printing systems to make the check payment process simpler. However, before you start setting up your printing system, you need to keep a few dos and don’ts in mind.


Buy Checks Online

Many online vendors offer check printing services. From blank checks to QuickBooks compatible checks, the online check printing service can satisfy every check variety need.

Compare Prices of Check Vendors

Since multiple vendors offer similar services online, the price offered for their services are highly competitive. Compare the prices of online check printing service before ordering your check. Look for websites that claim to offer “lowest price.”

Buy Blank Check Paper

You can save money on checks by choosing to buy blank checks instead of printed checks. Online check printing service costs extra, so it is cheaper to buy blank checks and magnetic ink to reduce the printing cost.

Use Software

The process of printing a check is made simpler by using software like QuickBooks. QuickBooks keeps track of all the payments and allows you to print checks in a few easy steps.

Have an Endorsement Stamp

Checks are just pieces of paper if they are not endorsed. To make the process of endorsing a check faster endorsement stamps can be used. You can buy endorsement stamps from check printing vendors.

Set Up the Right Printer

Online check printing service can supply you with checks that need to have the payee details printed onto them. With blank check papers, you will need to print your bank details along with the payee details. To print checks, you do not need to have a special printer, any inkjet printer can serve the purpose.

Buy Magnetic Ink

If you avail online check printing service to purchase printed checks, then you will get checks with MICR code printed on. However, to print the MICR code onto a blank check paper, you will need to have magnetic ink.


Order Checks from Banks

Banks offer extra check sheets at a hiked price. Banks avail the services of check printing vendors but charge much higher rates. So, cut out the middleman by avoiding banks and opting for online check printing service.

Hand Over Checks Without Reviewing

Once you have printed your check, you should review it before endorsing it. The endorsed stamp can be cashed, so always double check the information printed before endorsing and handing over the paper.

Use Improper Paper and Ink

Without magnetic ink, MICR code will not be printed onto the check. With the MICR code cannot be read the check remains invalid. Having the MICR code and bank information on any piece of paper is enough for the paper to be accepted as a check. However, your payee may not accept the check if the check is not printed on check paper.

Use a Common Printer

Using a common printer for all office work makes the check printing process long drawn. By having a dedicated printer for check printing, you can leave your check paper inserted and print the checks at your leisure.

Give Access to All Your Employees

Check to print in your office can be a way of having forged checks cashed. To keep your checks safe from being forged keep the check papers, printer and endorsement stamp out of reach of unauthorized employees.

You can easily set up and in-house check printing system with these dos and don’ts in mind.

5 Common Mistakes with Business Loans

For most businesses, at some point in their growth they will need to take out a business loan. Whether you are a startup looking for cash to get your business off the ground, or a company who has been around for years, we could all use a helping hand in the form of money.

When deciding if a business loan is the best for your company, you need to think about every aspect of how it will work. This includes keeping in mind all of the things that could go wrong. Here is a list of the most common mistakes made with business loans and how you can avoid them.

Not Having a Successful Business Plan

When planning to take out a loan it is essential to understand what you will use your business loan for and then plan for how you will pay it back. Without a proper plan on how you will utilize these funds you could suffer from irresponsible or even accidental overspending.

Not only can the lack of a good plan send you into debt it can prevent you from getting approved for the loan in the first place. Lenders look well thought out plans that provide them peace of mind to hand over their money. Walking into a bank without a good plan will most likely lead to you walking back out with a frown and rejection in hand.Prevent drawing the loan approval process out by formulating a solid plan before reaching out to lenders.

Waiting for Emergency Expenses

Business loans are not just for covering urgent or emergency expenses, such as a seasonal shortfall, or covering building or vehicle repairs. The most successful businesses use business loans to make timely investment in new technology, new locations, new people, and more.

Waiting until you desperately need cash can lead to a rushed planning process. Planning for your business loan should take time as there are a multitude of factors you will need to consider. If you attempt to throw together a plan you risk the bank denying you. As stated before they need to feel comfortable giving you their capital.

Even if a lender does approve your loan on your rushed plan, you may have accidentally developed a plan that is set on course for disaster. Keeping an eye on your finances and doing yearly sales projections should help you see far in advance if you will need to apply for a loan. Begin your plan as soon as the idea of a loan comes up so you are sure you have enough time to create it, and so can be checked over.

Failing to Shop Around

Just as a bad credit score can cost you, taking the first loan offer that comes your way can make your loan unnecessarily more expensive. You can start with your bank or credit union, but then look at nearby competitors. Don’t forget to look at offers online, too. Shopping around can also give you a second chance if you are rejected on your first application.

Make sure to look at the fees associated with the loan, as well. Some lenders charge origination fees that can range from 1% to 6% of the loan. These fees are typically deducted from the loan amount, meaning you won’t actually receive $10,000 when you apply for a $10,000 loan. Each lender will have loans that range in interest rates as well.

Keep in mind your plan for your business loan pay back and see how the interest on each loan will affect it. Every lender and loan is different so be sure to inquire on the details of each one you can.

Not Thinking About How Much Money you Actually Need

Before you apply for a business loan, you should narrow down the amount of money you actually need and stick to it throughout the loan process. Business Loans can help in every facet of your business from inventory to payroll and even helping your business with its prior debt. When calculating how large of a loan you will need take into consideration every cost you need to cover.

Keep these costs in mind:

  • Business Expansion
  • Marketing
  • Paying Employees
  • Purchasing inventory
  • Purchasing equipment

Some less than ethical lenders will encourage you to borrow more money than you need because they are looking to make a bigger profit. When you borrow more money than you need, it can be more difficult to pay back, plus you’ll have “dead money” sitting in your bank account which isn’t being helped by inflation. Finding a balance between borrowing too much and borrowing just enough is a balancing act. Don’t be afraid to reach out for help.

Using Loans Irresponsibly

This mistake is one that comes not necessarily from poor planning, but from poor decision making. You may have made a great plan that broke down what you would use your business loan for, but if you veer from your plan it is imperative to readdress your plan. Life can throw changes at you and mistakes can happen but you need to be careful when using money that is borrowed.

Keep your loan plan handy and take notes with every purchase you spend your business loan on. Compare you initial plan with the money you have spent and adjust the rest of your plan accordingly. Just like with a personal budget, your need to stick with a business loan budget or you can risk running out o the money before you expected.


Fearful of falling into these business loan mistakes? With proper planning and a strict discipline you can avoid these issues and have a smooth business loan process. Companies like Get Out of Debt are here to help. With free blogs to help you understand your loans and plans to pay them off, They also have plenty of information on personal finances, should you need some assistance there.

If you have any experience with using business loans, leave a comment and share your most helpful advice in the section below.

The Basics of Personal Loans

In case you need money on the spot and you cannot simply find urgent cash anywhere, you might think of getting a personal loan. These are one of the most widely chosen options and people do not hesitate to get involved with an online lender or a bank in order for their money to enter their bank account fast and easily. What most people do not know, however, is that personal loans must be taken seriously and with much responsibility. Here are the basics of this type of loan that every potential borrower should know before getting one.

What Are Personal Loans?

Personal loans are credits given to each borrower who needs money quick for a personal event, such as weddings, holidays, anniversaries or other personal expenses. Because they are usually unsecured, they are based on the borrower’s ability to pay and integrity.

Regarding the interest rates of this type of loans, you must know that they come in many shapes, according to the borrower’s needs. They can be offered at a fixed rate, floating rate or flat rate. These are based on your credit repayment ability and history and can be anywhere between 14% and 25%.

Unlike long-term loans, these can be repaid in up to 5 years and therefore, you can negotiate the monthly fee you are able to offer each month, depending on your income. This is one of the advantages of personal loans and this is the reason so many people find it convenient.

Who Is Eligible for a Personal Loan?

Depending on the lender you choose to borrow this sum from, you should know that you must meet the eligibility criteria set by that specific institution. Usually, nearly all banks will accept salaried individuals, self-employed individuals, and self-employed professionals and will provide the right offer, depending on the monthly income and the ability to repay the sum. Nevertheless, there are some other factors that will make your application successful:

  • Age
  • Residence
  • Work experience
  • Repayment capacity
  • Past obligation
  • Credit history
  • Place of work

This means that you must provide the right documentation in order for the process to go as smoothly as possible. From your personal documents to your bank statements, you need to be prepared to prove that you are responsible enough to get the sum you need in order to solve your problems.

These are the basic information you need to know before applying for a personal loan. Whether you choose to do it online, on sites like, or at your local bank, you should know that this type of loan is a responsibility you need to take seriously, as it may turn into a financial struggle later and destabilize your financial situation even more.

If all the things above are considered and you opt for this type of loan, you must know that this is a rather simple solution to obtain money easily and without waiting too much in order for your application to be successful.

What are the Best Places for Office Space

Founding a business is a risky yet exciting endeavor, as many people who start a business are following their dreams. Before starting a business, you have to take many things into consideration. One of which is the practicality of launching a business in a particular area at a particular time, as well as how likely that business is to survive.

Looking at these statistics can prepare you for the reality of opening your business.

What do the statistics tell us?

In London, an increasing number of business are being established, with over 400,000 having been established in 2016 alone. The majority of businesses being established fall within the business administration and support services sector, the transportation and storage industry, and in education.

However, the businesses with the highest survivability rates, which means those that last the longest, are in healthcare, property, and information and communications.

Just as businesses are born each day, many are closed every day too. The majority of those businesses that die each day fall into the realm of finance and insurance, business administrations and support services and property.

Although property falls into the highest death rate and the highest survival rate, the survival rate of the property industry outnumbers its death rate by at least 35%, so it is still a feasible business venture.

It is also important to note that the accommodation and food services industry has the lowest rate of longevity. Many who open these types of establishments do not see continued success.

Although many businesses shut down, the number of businesses established each year continues to outnumber those that are closed. This means that finding space for all of these businesses will eventually become more challenging.

Where are the best places to open a business?

As far as location is concerned, London has both the highest birth and highest death rates for businesses, but only by about 2-3%.

Unfortunately, London also has the lowest survival rate at almost 42%. The locations with the longest survival rates, which would be the best places to open a business, include the Southwest, Northern Ireland, and the Southeast.

What is a Flexible Workspace?

One of the latest trends in business is flexible workspace. Exact definitions of this word will vary depending on who you ask, but the general underlying concept is still there.

A flexible workspace is a workspace that can be used by different people or businesses at different times and for different purposes. The idea is that a property manager owns a building that has a variety of office space options that are rented out monthly, daily, or even hourly.

For example, a small startup that doesn’t have a conference room setup available could rent a conference room from a flexible workplace location.

This way, the small business can host a professional-looking meeting without the cost of renting or leasing a large property for an extended period of time.

Why do we need it?

Running a business successfully requires income coming in to the business to exceed the amount of money going out of the business. If businesses are spending a large amount of money leasing or renting a property that is too large for their everyday operations, they are essentially wasting money. They end up paying to rent space they do not utilize every day.

Flexible workspacesare a great way for businesses to save money. Another benefit of flexible workspace is that businesses that share the workspace will also have an opportunity to collaborate and share ideas. This could create competition between businesses, which could be good in that it could drive up productivity. It could also result in the birth of new ideas.

London is home to the largest number of flexible workspaces, with around 10% of the London market being comprised of this type of office space. Finding an affordable location to do business in London shouldn’t be a problem for you.


No matter the location or the industry, opening a business is always going to be a risk that you take. However, doing some research and looking at the numbers can serve as a guide for you as you begin the process.
Don’t forget to take into consideration the possibility of utilizing flexible workspace as an alternative to renting or leasing space that you just don’t need right away.

Grow Your Business with Automation

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You could grow your business by stretching your finances and investing more money into it – that’s what so many business owners do – or you could be smart and grow your business by using automation to increase your company’s productivity, and therefore your profits.

Did you know that you can typically automate up to 45 percent of your business? That’s a lot, right But, if you still aren’t sold on automation, here are some compelling reasons that are sure to change your mind…

Automation is Cost Efficient

Perhaps the most compelling reason to use automation to grow your business is the fact that it is likely to have a positive impact on your finances. You see, with automation, you can use tools like Intelligent Information Management and even basic email templates, to cut the amount of time that you and your employees spend doing simple and complex tasks that take up time. The more time you free up, the more productive your business can be and the less money you will need to spend on staff – it makes perfect sense.

Automation Can Consolidate All Areas of Your Business

Using the various automation tools at your disposal will allow you to connect up various different aspects of the business, which can improve productivity significantly. For example, you can use digital asset management to ensure that all members of staff can collaborate and access documents via various different applications, which means they can work together more easily, or you could use a CRM system like Infusionsoft to not only deal with customer subscription sign-ups, but to also let customers know about new products and services, or even special offers you’re running. That means you can make many more sales without any effort whatsoever, which can only be a good thing for your company’s finances.

Automation Can Free Up Your Time

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If you automate everything from your calendar to your social media updates. That will free up a lot of your time, and as the owner of the business, this is very important. Why? Because you are the person who should be schmoozing clients t get more business, scouting out the best talent to help your business grow, and a million other things that triviality such as booking appointments and doing the books gets in the way of doing that and bosting your finances as a result. By automating this stuff, you ate allowing yourself to work on high-value tasks that lose your full potential and help your business to thrive and grow, it really is that simple.

Automation Can Do Your Marketing

Whether you’re using Hootsuite to schedule your social media posts for the week or Infusionsoft to push your content to a range of platforms where your customers can see them, automation can do the bulk f your marketing for you.

Automation Can Get Rid of Human Error

Human error can cost businesses hundreds of thousands of dollars and set them back when they should be pursuing growth. The great things about automation are that providing you set it in motion correctly, it will run and run without experiencing any problems. In fact, it is estimated that it can eliminate as much as 80 percent of human error in industries such as manufacturing and engineering alone.

Automation is the way forward, especially if you want to increase productivity, boost profits and see your business grow.


Ways to Raise Capital Funds for a Start-up

Starting a business involves a number challenges for a young entrepreneur. One of the toughest challenges involves capital funding as you come across very few investors in the market. It’s not impossible to find an investor, but you may resort to a few alternative options in order to enjoy the financial success. Identifying the right source for capital funding often leads an entrepreneur through some misconceptions.

One of the most common misconceptions pertaining to capital accumulation is about acquiring debt from unreliable sources. Business owners are scared of jeopardizing their financial situation when the loan interests reflect a sharp rate hike. If you haven’t been careful initially, you must brace yourself for the worst. It really helps when you come across a few quality resources online.

Few good tips on capital funding to help a business flourish in no time:

1. Check out your wallet at the beginning. All of your retirement, home equity, and savings accounts need to be

tapped. Till the time you invest your own hard-earned money, you can’t expect others to put your money at stake. Investors possessing profound knowledge tend to support founders that have more confidence in their activities. Most investors prefer to go with entrepreneurs that have more than just “sweat” to spare in times of need.

2. Resort to bootstrapping. In your attempt to stretch the financial resources of your business, you must consider each dime as if it’s a dollar. You’ll learn to manage your finances better when you continue to make necessary payments in time. Meet all of your business expenses out of your revenue every month as you proceed. You might fall short of cash during the initial phases. However, your path to raise capital gets more flexible when you start bootstrapping for securing a good validation in the market.

3. Consider funds that are not dilutive. Solicitations and grants are not always the best option for a start-up business. But you ought to check them out before you turn down such offers. You’ll only need to bear a much lower rate of interest when you opt for loans or grants just to ensure a fast growth of your business. Such sources of capital accumulation often provide your startup with huge sums of money. That’s why you ought to plan your strategies and operate freely.

4. Acquire capital based on milestones. Falling short of capital is equally bad to that of accumulating excess capital. You won’t need to give up on equity be it about reaching milestones or meeting your capital requirements.

5. Develop your line of credit. Bankers tend to vet you when their lending competitors have already done so. They are more likely to return your calls when you adopt the right funding strategy. Sourcing funds through the initial stages don’t draw any silver bullet. Keep yourself from committing a suicide by laying more emphasis on bootstrapping and by following the right funding strategies.

The need to accumulate a huge amount of capital up-front for achieving quick success constitutes a popular entrepreneurial misconception. A move like this could ruin the prospect of dropping a successful anchor right at the beginning. Follow the tips mentioned above if you don’t want to give up equity early on. There’s no need for you to raise more of investment capital unnecessarily.

Finding A Career That Gives You Financial Stability And Happines

Financial Stability

The trickiest part of career-hunting is finding a job that gives you the perfect balance between financial stability and happiness. Of course, many people think that you have to settle for one or the other, but there are often more options out there for you than you might realize. You might just need to widen your job search a little further. You need to consider your personality, interests, academic abilities, and general skillset. Once you’ve done that, you’ll have an idea of the perfect career for you. If you need some assistance then here are some ideas for careers that will give you both financial stability and happiness (depending on your preferences in terms of industries and types of jobs).

Careers for organized and analytical people.

If you find joy in a structured and organized life then you should search for a job that lets you channel this mindset. After all, you won’t be able to function in a job if you feel like it’s a messy and unstructured role. Luckily, there are plenty of careers out there for organized people that come with a decent salary. If you’re technologically-minded then you might want to look at job opportunities in web development. They’re well-paid careers that offer you the opportunity to analyze information and work in a structured environment. Coding is very analytical, structured, and straightforward (of course, it can be a bit of a headache to learn).

You could also look into career paths as an assistant or a secretary for companies. They often come with fair salaries and decent company perks. You’d have the chance to schedule appointments, make travel arrangements for your employer or their clients, and deal with all manner of people on the phone. It’s the perfect type of job for somebody who thrives on organizing things. You might even want to consider a career as a virtual assistant if you’d want to do the same kind of work from home. Whether you’re an introverted or extroverted individual, there are plenty of job opportunities out there for people with an organized mindset. In all industries, there are businesses that need professional help to keep their information and appointments well-organized and structured.

Careers for sociable and outgoing people.

If you’re an outgoing person then you probably want a career that lets you get out there, meet people, and do things in the real world. You probably don’t want to be cooped up in an office cubicle with very little human interaction. Fortunately, there are many sociable career opportunities out there that come with a stable income. You might want to consider a job as a recruiter for a company. That heavily involves socializing with candidates who might be able to potentially fill a role for a business. It also comes with a very nice wage.

Perhaps you’re an avid traveler, so you might have found yourself looking for jobs that offer a lot of paid leave (that gives you time to travel). But you could simply look for a job that involves traveling. There are plenty of well-paid careers that fit this description. You could work on a cruise ship and have fun sailing around the world and stopping at different destinations. It might not be the biggest salary in the world, but it pays in the fact that you’re visiting different destinations as part of the job (it’s technically “free travel”). Of course, there are other career options in the travel industry. You could work for an airline, as an example. You might even want to look into different aviation colleges if you’d consider working as a pilot. It requires real studying, but it’s worth the hard work. It’s a career that pays very well, and it’ll perfectly suit somebody who wants to see the world.

Careers for ambitious people.

If you’re a business-driven individual then you should be searching for a career that allows you to progress through the ranks of a company, depending on the type of industry that interests you. Of course, there are many career paths for ambitious individuals that apply to all industries. If you like charming clients then you might want to consider pursuing a career as a client success director. Again, you might have to climb the ranks to reach that point, but it’s a job role that provides a decent salary. A career in sales is another option that suits ambitious people. Career progression all depends on your ability to live up to expectations to sell goods and services. If you’re ambitious then you’ll quickly progress, and it can be a very well-paid career when you account for bonuses such as commission.

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Hacks for inventory management – A guide for the small manufacturers

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Do you think that managing inventory is more like a piece of cake? Since your business keeps booming and there is skyrocketing demand for your products, you will soon find yourself being subject to growing issues. You may not be aware of the fact that there are several companies which have lost billions and even went to the extent of closing their stores due to poor inventory management. For instance, Walmart burnt $3 billion due to its stock issue or even the company called H&M which struggles to unload more than $4 billion in surplus store inventory. Before you move into the details, you need to know what inventory management is.

Inventory management – What is it?

Inventory management is the science and art of dealing with tracking, storing, managing and ordering inventory from the supplier to the retail outlets. You can start off with the moment you ordered the raw materials till the product is given to the hands of the customers. When there is too much money tied to a business, you’ll require utilizing plethora of tools to manage the feat. You can this way avert certain logistics and production issues like:

? Soaring storage costs
? Dead stock that is unsellable keeps increasing
? Products which are spoiled or which cross the expiration date
? Huge cancellations of order
? Delayed turnover and missed deliveries

In case you wish to avoid all these unnecessary expenses and boost your cash flow, the key is inventory management.
Best inventory management hacks

1. Track your demand and supple balance real time

It is vital to keep an updated stock level and have the real time records of each item. This includes checking the locations of the product. When you can manage the inventory real-time, this can let you manage the availability of the present stock and customer demand so that you can backlash from customers and other fulfillment issues.

2. Have ready a buffer stock for reordering the products which are popular

Even though you track orders accurately, you will still come across issues in fulfilling the sales orders of the customers when the demand for the product increases due to unpredicted demand. When you have a safety or buffer stock, it lets you sell the best products like hotcakes during periods of delays in production and raw material issues. One of the best ways is to seek benefit of the automated inventory alerts.

3. Have a plan B for emergencies

The secret to perfect inventory management is to plan for the emergency situations and keeping an open mind for the changes which occur. There will arise situations when the demand will surpass the supply on hand and sales will spike naturally. Seasonal demand will trigger the requirement for bigger space for storing goods. You should have all sorts of plans ready for emergencies.

Therefore, when you’re wondering about the ways in which you can manage your stock inventory, you can take into account the above mentioned strategies and techniques.

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