How To Track Inventory In A Business Plan
Enloop's Business Plan Creator software automatically tracks your inventory within your business plan.
Understanding Inventory Levels in a Business Plan
Tracking your company's inventory properly in a business plan is a vital part of correctly forecasting your company's financials.
When you enter a product in your business plan, Enloop automatically populates the Inventory Added with the same number as you entered for Units Sold.
Any time you revise the Units Sold for any product, we check the Inventory Added to see if it still matches the Units Sold. If it doesn’t match, you might be buying too much inventory and tying up cash unnecessarily. Most businesses strive to keep enough inventory on hand to fill current orders, but not so much that they tie up cash in inventory that sits on a shelf.
Understanding the Math Behind Tracking Inventory Levels in a Business Plan
Enloop's Business Plan software does the math for you, automatically. The software multiplies Unit Sales by Cost of Goods to determine the Inventory. For example, if you enter that you plan to sell 1,000 units of a product and the Cost of Goods (how much that unit costs you to buy or manufacture) for each unit is $5.00, that creates $5,000 in Inventory.
Where Inventory Goes in a Business Plan Financial Forecast
Since Inventory is an asset of the company, you'll see the remaining (unsold) inventory on the Balance Sheet under 'Inventory'.