1. No Proper Stock Records
You do not know exactly how much stock you have in your shop or godown. Entries are missed, or records are kept only in notebooks or in memory. Because of this, the physical stock and the book stock never match. You cannot take good decisions without correct numbers.
2. Wrong Buying and No Demand Planning
You buy stock on guesswork, discounts from suppliers, or personal liking. You do not check what customers actually want or what sells fast. This leads to too much of some items and shortage of others. Your money gets locked in the wrong products.
3. No Control on Fast and Slow Moving Items
You treat all items the same and never check which products sell quickly and which are lying unsold. Slow items keep piling up and become old, damaged, or out of date. Fast items run out and customers go to your competitor. This hurts both sales and profit.
4. Poor Storage and No Security
Stock is kept in a messy way, so it is hard to find items quickly. Goods get damaged by water, rats, heat, or poor handling. Without proper checks, theft and pilferage by staff or outsiders also go unnoticed. Small daily losses slowly become a big loss.
5. No Regular Stock Checking and Clear Responsibility
Nobody is made responsible for stock, and physical verification is done rarely or never. Mistakes, theft, and dead stock stay hidden for months. Owners find the real problem only when cash is already short. A regular stock audit can stop this early.
Simple Rule: Stock is money lying on the shelf. If you do not manage it, you lose money silently.
CA Sukhvinder Singh
Business Coach
Growth Mindset Coach
Mob- 9811518762