A Simple Inventory System for Small Businesses

Small businesses do not necessarily need complicated inventory software. The basics are simple: know what you have, where it is, how much is left and when to reorder.

If stock is starting to take over your office, home or shop, moving storage stock into a dedicated storage space can also help separate inventory from your working area.

1. Create a master inventory list

Start with a simple Excel or Google Sheets file containing:

• Product name
• SKU or product code
• Quantity on hand
• Storage location
• Date received
• Quantity taken out
• Reorder level

The system does not need to be complicated. Accuracy and regular updates matter more.

2. Give every item a location

Use simple location codes such as:

A01-01 = Category A / Shelf 1 / Position 1

Label boxes and shelves using the same codes as your inventory list. This makes it easier for staff to find items and reduces misplaced stock.

3. Separate fast-moving and slow-moving stock

Items that are picked frequently should be easy to reach.

Stock that is rarely needed can be kept further away from the main working area. For businesses with limited office space, storing slower-moving inventory separately can free up valuable workspace.

4. Set a reorder point

Do not wait until a product reaches zero before ordering more.

Set a minimum stock level for important products and consider how long it takes to order and receive new stock.

5. Count inventory regularly

You do not necessarily need to count everything every day.

For example:

• Fast-moving items: check frequently
• Regular items: check periodically
• Slow-moving items: check according to a set schedule

The goal is to keep your records reasonably close to the actual stock.

When should a small business consider external storage?

Consider external storage when inventory is taking over your workspace, when you have large quantities of stock that are not needed every day, or when you need additional space for seasonal inventory.

Before renting, consider how frequently you need access, how much space you actually need and whether the storage environment is suitable for your products.

In short: a good inventory system does not have to be complicated. Start with a clear list, organised locations and regular stock checks.