A cash-based approach to inventory management

07/29/2013 | Inc. online (free registration)

Laura Zander, co-founder and co-owner of Jimmy Beans Wool, buys only as much inventory as she can afford to pay for with cash. For her yarn business, Zander has found that the approach eliminates the hassle of keeping up with a pile of invoices and prevents cash-flow crunches during slower times. "The worst that can happen is that we end up spending too much one month, but can compensate by cutting back the amount we purchase following month," she writes.

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