How to Store Inventory for Your Business

You want to "sell it all," but sometimes it seems you barely have the storage space for paper clips and a few reams of paper, much less stacks of inventory. If so, get creative and explore these ways of expanding your space to meet your storage needs.

Difficulty: Easy

Instructions

Things You'll Need:

• Shelving
• Bins
• Bins
• Organizers

1. Create space by using inexpensive plastic shelving, bins and organizers. If you don't have too much to store, you might be able to turn a junk closet or a small area of your office into the perfect spot for storing your inventory.

2. Make the most of your existing space by organizing and managing your inventory. Keep the most-requested items on hand and review your records on a regular basis so you can get rid of space-consuming products that don't sell.

3. Rent a storage space. Minimize the expense by renting the smallest space that suits your needs. You can always upgrade to a larger space if necessary.

4. Forget about storage space and use a "virtual warehouse." Arrange for your wholesalers or manufacturers to drop-ship orders directly to your customers. You'll save time, space and probably money by letting someone else take over the responsibility of shipping products to your customers.

Tips & Warnings

• Hold a "deep discount" sale to unload your most unpopular items. Or, if you're feeling generous, donate the items to charity. Make sure you keep records of any charitable contributions; you may be able to use the donation as an itemized deduction on your tax return.
• Pick a storage space facility that is convenient to your home or office and allows 24-hour access. Depending on the type of inventory, you might want to consider an air-conditioned space.
• Organize your rented storage space as you would a storage room in your home or office. Use plastic, stackable shelving to utilize vertical space and arrange your inventory so you can always find the items you need.
• Using suppliers that will drop-ship to your customers opens up endless opportunities for the types and number of products you can provide. However, establish clear, written service, return and damaged goods policies with any company that drop-ships orders for you before you direct any orders to them.

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on 11/22/2005 A small business (sole proprietorship) cannot deduct donations on Schedule C. Donations can only be deducted on Schedule A. If you do not itemize deductions, you lose the contribution deduction.