Good Record-keeping Helps New Business Owners Avoid Tax-time Headaches
Options When Your Inventory Exceeds Your Business Space
Terra Fields
When you own and operate a small to mid-sized business, you may find yourself in a situation where the demand for your products or services grows exponentially. This is great news for your bottom line, but space-wise may create a dilemma as you need to increase your supply or product inventory on-hand to meet your sales demands. When your inventory exceeds your business space capacity, you may be wondering what you can and should do to find more space. Get to know some of your different options so that you can make the best possible choice for your business needs.
Rent a Self-Storage Space
One of the most cost effective options to store and keep your excess inventory is to rent a basic storage unit that is capable of holding your supplies or products. Self-storage units come in all different sizes and designs and are quite simple to work with.
Perhaps the biggest benefit of a storage unit is that it is rented on a month-to-month basis. You do not have to sign a long-term lease to rent a unit, and as long as you pay for your first month upfront, you can move your inventory in immediately. Storage units may be garage-style with no bells and whistles or can be indoor units with full climate control and secure entry.
Rent or Purchase a Warehouse
If you have a major inventory increase to deal with and are in need of a large amount of space, you may wish to lease or purchase a warehouse space. This will be the best option for you if you anticipate continued growth or for the demand for your products to remain steady.
Warehouses are useful in business because they are versatile spaces. You can use it simply for storage or you can also put your warehouse to use as a training facility for new employees, a staging area for new production work, or as office space for yourself or other company officials.
Purchase a Newer Business Location
Of course, the third option available to you for your excess inventory is to completely move your business to a newer and bigger business location. This can be beneficial if your customer volume is also greater than your business can comfortably maintain.
If your business is always crowded and there is just not enough space for employees and customers to navigate safely and happily, then that combined with your lack of inventory space is the perfect reason and opportunity to transition to another location. You could also take the opportunity to simply open a second business location.
With these options in mind, you will be able to find the right place for your excess business inventory.
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I have been a business owner for years, and I want to share some tips for success with new entrepreneurs out there who are struggling. I have had my share of business ups and downs, but there was one lesson that it took me way too long to learn: Good financial record-keeping year-long keeps tax time from being so stressful. During my first year in business, I kept most business expense receipts, but when tax time arrived, I found out that I needed to save much more than just those receipts. Thanks to technology, I was able to recover most of the documentation I needed, but it was a huge headache. I quickly invested in good record-keeping software and it made tax time much less stressful during the following years.