When starting, many companies make the mistake of not paying attention to their working capital cycle. This can be detrimental as the business can quickly run out of cash, resulting in reliance on a line of credit which comes at a cost.

Inventory management is essential for all businesses. The biggest challenge that a business faces regarding inventory is balancing demand with adequate supply. If there is no inventory management strategy in place, the company runs the risk of running out of inventory, resulting in lost sales and customers or holding stock that does not sell. Hence no business can expect to run efficiently without a proper inventory management strategy in place.