Balloon Inventory: The money in another form

It has been a year and a half since we started doing this balloon and party needs business and one of the things we noticed is the growing number of stocks, which we call as our balloon inventory. Regarded as sleeping money in a different form, this balloon inventory can possibly turn the business “profit” into a “loss”, if not regularly check and manage.

The problem with many businesses, not only in the party needs industry is that they keep on adding to the current inventory to accommodate rush orders and also purchase the new designs just to keep up with the big companies, even though it is not yet useful at the moment.

Raw Uninflated Balloons

Considered a big help during times of “same day bookings” or “next day bookings”, the Balloon Inventory is an essential part of the business if it is taken care very well. The problem with having a huge collection of resources is that it needs extra hours to account and look at to avoid spoilage, damages and becoming obsolete. Business owners think that the business is profitable because they can see their stocks growing but the problem is that the time will come that stocks get ruined or deteriorated because of humidity, insects, moisture, etc.

For a balloon shop to prosper, one of the things that must be look-at regularly is the stock-on-hand because eventually, these stocks will become old and useless. The best thing to do with regards to the balloon inventory is to follow the FIFO (First In, First Out) rule and make sure to stock only what is needed for the next 3-4 weeks. For bigger businesses or balloon shops, they have the ability to stock more because their risk tolerance is higher because of their money and regular orders from their customers. For smaller shops, the risk is higher because the resources do not move on a regular basis. Again, always think that the balloon inventory is sleeping money in a different form, the lesser you take care of it, the higher chances your business will break.