By Morris Bocian
The amount of inventory your company carries can significantly impact a new business’ start up budget, as well as the cash requirements needed to operate a business. Below are two examples that should help you understand the impact of carrying too much inventory, or slow moving inventory. Although the examples may be simplistic, it is a reasonable representation as to utilization of cash. Remember, the cash that is locked up in excess inventory could have been used to drive business or for some other reason that would enable you to be more profitable.
