Types of Inventory Reports you Should Know About

Posted on by Kaylyn Perry

It’s common knowledge that product-based businesses rely on inventory to generate revenue and meet customer demand. Regardless of a business’s size, keeping a close eye on your inventory enables you to fulfill client orders quickly and accurately. However, one thing to keep in mind is that inventory is rarely static. To successfully grow your business, you need to analyze and monitor inventory data and leverage it to make informed business decisions.

This is where inventory reports come in.

Maintaining precise knowledge of your inventory performance is key to helping your business grow, expand, and reach new heights. Through the use of inventory reports, you can have a holistic view of your operations and allow you to optimize your inventory levels where it can sufficiently meet demand without the risk of overstocking or stockouts. But before we dive deeper, let’s talk about inventory.

What is inventory?

Simply put, inventory refers to the products that a company plans to sell for profit. Inventory encompasses items that you have bought for resale as well as the raw materials you need to produce your goods. There are three main types of inventory: raw materials, work-in-progress, and finished goods.

  • Raw Materials – Raw materials are the items that a business needs in order to create its products. For instance, a business that sells footwear sources textiles, rubber, leather, synthetics, as well as dyes to be able to produce quality shoes.
  • Work-In-Progress (WIP) – Work-in-Progress items are partly-finished materials that are currently undergoing conversion into finished goods. More often than not, you can see these materials on the production floor where they are being assembled. For accounting purposes, WIP inventory also includes all the costs related to the production of goods such as raw materials, overhead, and labor.
  • Finished goods – As you may have guessed, finished goods are products that have completed production. These products have been sourced as raw materials and converted into finished goods that are ready to be sold. Typically, retailers consider finished goods as merchandise.

What is an inventory report?

Now that we got that out of the way, what exactly is an inventory report? An inventory report can be described as a comprehensive summary of a business’s existing stock. It helps businesses manage inventory, track its movement, and mitigate the risk of stockouts or overstocking. Essentially, an inventory report provides value to a company by giving insight on top-performing products as well as slow-moving ones.

Do inventory reports improve inventory management?

Excellent inventory reports include timely and relevant information that aids businesses in their inventory management practices. From better inventory accuracy to greater insights into stock control, inventory reporting ensures that businesses have the ability to make more profitable business decisions. Fortunately, there are several types of inventory management reports that businesses can use in order to help them increase efficiency and reduce costs. Check out some of them below!

What are the different inventory report types?

Reports provide useful insights for better inventory management especially in aspects such as inventory levels, spending, profits, and growth opportunities. Here are some of the most common types of inventory management reports:

1.) Inventory performance report

Put simply, an inventory report serves as an overview of a company’s inventory performance. It makes it easier for companies to gain insight into how profitable their products are while also ensuring that their stock is at an optimal level. An inventory report should also shed light on significant performance metrics regarding sales, operations, as well as storage and logistics.

2.) Inventory value report

An inventory value report, used mainly for inventory valuation, is a document that details the costs associated with inventory such as acquiring, transporting, and holding inventory. This type of inventory management report allows businesses to understand the cost of goods and evaluate the value of their goods accordingly to make sure that inventory remains profitable.

3.) Inventory profitability report

As the name implies, an inventory profitability report tracks inventory performance by looking at gross margins for a specified period. An inventory profitability report enables companies to determine worst-performing stock and make room for higher-performing items.

 4.) Inventory forecasting

Inventory forecasting is a great way for businesses to analyze past data and observe current trends to predict the amount of inventory to hold in the future. This type of inventory report empowers businesses to make informed inventory decisions and prepare them for busy shopping seasons. Most inventory forecasting methods involve the use of historical data, past sales trends, and expert opinion from industry experts.

5.) Stock level report

In inventory management, a stock level report shows the current stock level of all products in all storage facilities. A stock level report is useful when it comes to monitoring your reorder point and identifying the right quantity to reorder from your suppliers.

6.) Stock reorder report

Stock reorder reports are one of the most useful reports that businesses can use when managing their inventory. Essentially, reorder reports tell businesses when the best time is to restock their inventory based on past data. Determining your ideal reorder point is crucial to save holding costs and prevent lost sales.

7.) Sales report

Using sales reports is a great way to gain a better understanding of your cash balances and overall sales performance. This type of inventory report assists businesses in analyzing their sales activities through the use of various key performance indicators (KPIs). Sales reports may also uncover trends that may supplement your inventory forecasting methods.

What are the benefits of inventory reporting?

Perhaps the most obvious benefit of inventory reporting is that it fosters proper inventory management. It ensures that businesses have enough goods to be able to meet demand without creating excess inventory. Some of the other benefits of inventory reporting include:

  • More accurate inventory planning – Having an inventory reporting method in place prepares businesses in managing customer expectations through more accurate inventory planning. As a business’ most expensive asset, inventory reporting aids businesses in differentiating slow-moving products from the best-performing ones.
  • Better inventory tracking – Inventory reporting equips businesses with the necessary information to improve customer satisfaction. Through the use of data, businesses can improve the accuracy of inventory orders and avoid unnecessary costs. It also helps you figure out exactly how much stock you have at any given moment and determine the optimum time when to reorder goods. Inventory reporting also prevents product shortages and allows you to keep the right amount of items in your storage facility.
  • Improved financial planning – An inventory report should provide businesses with precise data to forecast the necessary capital needed to reinvest in inventory. Leaving inventory management to guesswork may put your business at risk due to inaccurate financial planning.

Ultimately, inventory reporting makes it easier for businesses to manage inventory more effectively and efficiently. Tracking stock regularly enables businesses to hold a sufficient amount of goods to be able to meet customer demand. Without inventory reporting, it is highly likely for your business to incur higher holding costs and miss out on sales opportunities.

Key Takeaway

Inventory management and reporting are crucial to a business’s success. Knowing which inventory reports to use and understanding their importance lets you track the performance of your products and mitigate the risks associated with holding too much or too little inventory. If your business is experiencing an increase in demand, an inventory report empowers you to fulfill customer orders regardless of your supply chain circumstances.

About Kickfurther

Kickfurther is the world’s first online inventory financing platform that enables companies to access funds that they are unable to acquire through traditional sources. We connect brands to a community of eager buyers who help fund a business’ inventory on consignment and give brands the flexibility to pay that back as they receive cash from their sales. This alleviates the cash-flow pinch that lenders can cause without customized repayment schedules, allowing your brand to scale quickly without impeding your ability to maintain inventory or financial flexibility.

How to Finance Your Company Expansion

Posted on by Kaylyn Perry

As your business starts to grow, you may find yourself in need of financing to support the growth. While revenues and profits are increasing with the growth, cash flow may be tight. If you operate a product-based business you will want to ensure that you have enough inventory on hand so that you keep growing without missing any sales. So what is the best way to finance business expansion? Keep reading to learn how to finance business expansion and what financing options for business expansion look like.

How to Finance Your Company Expansion for Growth

When you are considering an expansion of any size and you are hoping for growth, there are two main things you need to do. First, you need to prepare and plan for the expansion by creating a strategy and forecasting your finances. The second thing you need to do is to determine which method of financing is best for your business and then take the necessary steps to secure it. Let us take a look at the two main portions of the planning phase that should be completed before applying for any type of business financing. 

  • Create a strategy: One of the most important things to do before expanding your business and looking for financing to fund that expansion is to develop a strategic growth plan. A strategic growth plan is essentially a business plan that focuses on the strategies you need to implement and the goals you need to achieve in order to grow your business. Your goals should be realistic, specific, and time-sensitive. This strategy should also reinforce some of the basics of your company, for example, your business identity, the problem you are attempting to solve for consumers, how your business is the solution to this problem, who your customer is, and who your competitors are and how your business is different. From there you can identify your current market share, your current monthly revenues versus expenditures, etc. Based on your business identity and your current standings, what kind of goals do you want to create? Do you want to increase your market share? Facilitate a takeover of a competitor? Increase revenue by a certain percentage? These goals should also have deadlines. For example, a 15% increase of market share within 6-months and how the business plans to achieve this, might be something you may include in a strategic growth plan. 
  • Forecast your finances: A complete and thorough financial forecast may go a long way in convincing investors or lending institutions of your business’s viability. An accurate forecast will help you to identify how much financing you will need to fund your expansion goals. The forecast will also let lenders or investors know how you plan to allocate the funding once you have acquired it. This practice of showing where the money will go will not only be good to satisfy potential lenders or investors, but it may also help you manage your money better to get the most out of the influx of cash. 

Once you have a complete strategic growth plan and a detailed financial forecast, you can then begin to explore what types of financing may be best for your business and your situation. This is a crucial time to weigh all the options and to make sure you are making sound financial decisions. 

How to Fund Your Business

When you are ready to fund your business and its expansion, you may become a little overwhelmed with all the options available to you. There are traditional-style term business loans, SBA loans, venture capitalists, angel investors, financing from friends and family, and inventory financing through Kickfurther. Let us take a look at some of these options and more in greater detail. 

  • Traditional loans: You may want to consider a traditional-style term loan from a bank or an online lender if you want to get a small business loan that can be paid off through monthly payments. This may be a good option for you if your business already has a proven track record of successful operation and if your business has a good credit score. If your business does not have a credit score yet, you can still use your personal credit score to receive a loan. 
  • SBA-backed loans: SBA loans are loans that are backed by the federal government but issued through private lenders. You can apply for an SBA loan at most banks, credit unions, and online lenders. There are several types of SBA loans depending on your business structure and needs. There is the SBA 7(a) loan, the SBA Express loan, SBA 504 loan, SBA Microloan, and the SBA Disaster loan. There are also a few less common SBA loan types that only apply to very specific situations. SBA loans typically contain lower interest rates and longer payback periods than traditional term loans. 
  • Venture capitalists or angel investors: Seeking funding from a venture capitalist firm or an angel investor may be a wise decision for some companies looking to expand. It is important to fully understand the terms of any agreement entered into with a venture capitalist or angel investor as sometimes they can expect a larger share of the return or some control of the company in exchange for their upfront investment. 
  • Personal loan: Some small business owners start by using a personal loan to fund their startup at first. Depending on your credit score, personal loans may be an option to acquire up to $100,000 for up to 12-years. Be wary of using a personal loan to finance a startup because you may be able to find much better interest rates through an SBA loan or other financing options. However, they can be a good option to increase cash on hand. 
  • Equipment loans: Equipment loans may be an excellent option for someone who may be looking to make large investments in vehicles, machinery, or any other type of equipment that is deemed instrumental to the overall operation of your business. Equipment loans use the equipment being purchased as collateral to secure the loan which can sometimes make interest rates much lower than term loans. 
  • Invoice factoring: If you have large billings but need cash now, you could consider invoice factoring. Essentially you are selling your unpaid invoices to a 3rd party company who will then give you an upfront payment of somewhere between 70% and 90% of the total amount due. Once the invoice is paid in full, you get the remainder of the invoice amount minus the fees the company charges for their invoice factoring services. 
  • Friends and family: A common practice for some startups is for business owners to receive loans from friends or family when they are first starting off. Make sure you are honest and upfront about when you can start to make payments on the loan and be sure to incentivize the loan by paying them some interest in return. Be careful going with this route of financing because bad business dealings between friends and family can have long-lasting interpersonal effects. 
  • Small business grants: By doing a little research you can quickly discover that there are thousands of grants available through the federal government, private businesses, and non-profit organizations that are intended to help small business owners expand their operations or help them become established. Each grant may have its own specific requirements for qualifying and you may want to consider hiring a professional grant writer to help with drafting the grant proposals. 
  • Kickfurther (for inventory financing): Inventory financing is another great way to get the funds you need to make investments in inventory purchases or for launching a new product. 

Aside from this detailed list of small business financing options available, you should know that there still exist many options not mentioned here. When you have a strategic growth plan and a thorough financial forecast in hand, you are then ready to begin to review all the different financing options available to you to fund your business’s expansion. This is a critical step of the process and it is important to spend an adequate amount of time to ultimately determine which avenue is the best for you and your business. 

How Kickfurther can help

While we mentioned several ways above to fund your business, you might just need inventory financing. If this is the case, some of the options above may work but you may want a more affordable solution. For companies that need inventory financing, Kickfurther can help. Kickfurther is the world’s first online inventory financing platform that enables companies to access funds that they are unable to acquire through traditional sources. We connect brands to a community of eager buyers who help fund the inventory on consignment and give brands the flexibility to pay that back as they receive cash from their sales. This alleviates the cash-flow pinch that lenders can cause without customized repayment schedules, allowing your brand to scale quickly without impeding your ability to maintain inventory or financial flexibility.

Sell more inventory now and pay later. . . discover affordable inventory financing at Kickfurther!

 

Inventory Financing: Top Options Explained

Posted on by Kaylyn Perry

Inventory financing is needed by most businesses in order to ensure they have plenty of products to sell. With products going in and out, cash flow can be challenging. To overcome cash flow challenges and maintain a healthy supply of inventory, financing may be the answer you are searching for. Inventory financing can offer several advantages and disadvantages too.  If you have researched inventory financing  you may have found that it can be quite expensive. For affordable inventory financing solutions, keep reading to discover some of the best inventory financing companies.. 

What is inventory financing? 

In the most basic terms, inventory financing is a loan against some or all of your inventory currently in stock. A lender may evaluate your inventory and then make a loan offer for a certain percentage of the value of your inventory. When you do this type of financing, essentially you are using the inventory as collateral to secure the loan. If for any reason you go into default on the loan, the lender then can seize some or all of your inventory in an attempt to collect on the debt. Ultimately, you may be able to use the funds to pay for any number of business expenses, however, most businesses tend to use the financing to purchase additional inventory. Or, some business owners realize that most of their capital is tied up into inventory, so in order to create some cash flow to cover day-to-day expenses, taking a loan against that inventory is a great way to add some working capital to the ledger. As you sell off your existing inventory, you then pay back the loan to the lender plus interest. 

Additionally, if a business needs to stock up on additional product before a busy season like the holiday shopping season, or if their product is more popular during a certain time of the year, like an inflatable kayak that sells extremely well before the summer vacation season, then they can leverage their existing inventory to create the capital needed to fund the manufacturing of new inventory. The business then will make sure that they have enough inventory on-hand to cover the increase in demand during that time of the year. As they sell the new and old inventory, the business then will have more than enough revenue to pay off the loan. Examples of these types of businesses include retail stores and wholesalers who require enormous amounts of inventory in stock to meet the demands of their customers, whether that be retail customers or other retail businesses. 

What are the top options when it comes to inventory financing?

Inventory financing may be one of the most powerful tools for any business that deals in large quantities of product. It can be hard to see your cash reserves depleted as you make large purchases of inventory to meet holiday demand or to be a properly supplied wholesaler that is able to keep all of their retailers fully stocked. However, it may be the nature of how your business operates. That is why inventory financing is so important to fill that cash reserve void as you have all your value tied up into inventory. There are many different types of inventory financing. Some may work better than others when it comes to the structure and specifics of your business. Here is a quick breakdown of some of the inventory financing options that you may want to consider for your next loan. 

  • Inventory Loan: An inventory loan is the most basic type of inventory financing. A lender evaluates the value of your inventory and lets you use that value as collateral to secure a loan. You then can simply pay back the loan amount in installments, or you can agree to pay back the loan following the sale of the inventory. If you default on the loan, you then sacrifice the inventory to the lender who will then sell it in an attempt to collect on the debt. Typically, once the loan has been repaid and the inventory has been sold, you may need to take out another loan to pay for another batch of product. Ultimately, the only thing you are out on is the interest that you pay to the lender. That interest can be calculated directly into your profit margins, allowing you to set prices that are competitive, that make your business a profit, and that cover the interest on your inventory financing. 
  • Inventory line of credit: An inventory line of credit is a revolving line of credit that you can borrow against at any time. Once you enter into a funding partnership with a lender, the lender will allow you to borrow as much money as you need up to a debt ceiling. You continuously make payments and take loans out from the pool of money that the lender has appropriate to your inventory line of credit.  
  • Working capital loan: Working capital loans are designed to give businesses enough cash on hand to cover everyday expenses during periods of time when revenue may be lower. This is ideal for seasonal businesses that see a bulk of their revenue generated in only a few months of the year. When a business owner takes out a working capital loan, most often they are borrowing against their personal credit. 
  • Cash advances: If you operate a retail location and you accept credit cards, you may be able to qualify for a merchant cash advance which borrows against a certain percentage of your future credit card sales. You and your business are given an upfront lump sum of money, and in exchange, the lender gets access to a certain percentage of every credit card sale going forward. Usually paid out bi-weekly or monthly.
  • Kickfurther: Kickfurther is the world’s first online inventory financing platform that enables companies to access funds that they are unable to acquire through traditional sources. We connect brands to a community of eager buyers who help fund the inventory on consignment and give brands the flexibility to pay that back as they receive cash from their sales. This alleviates the cash-flow pinch that lenders can cause without customized repayment schedules, allowing your brand to scale quickly without impeding your ability to maintain inventory or financial flexibility.

Which option is best for financing your inventory?

There really is not one best type of inventory financing. The best type of inventory financing is the one that works best and makes the most sense for your business. Are you a seasonal business? Do you have times of the year where you need large quantities of inventory on hand, and then other times you do not. It may be in your best interest to research each type of inventory financing thoroughly before making a commitment to one type of inventory financing over another. 

How do I qualify for inventory financing?

Inventory financing can be a bit more complicated than other types of business financing. The reason being is that you are essentially using your inventory on hand as collateral to secure a loan from a lender. The lender wants to be sure that you are doing everything you can to accurately report the contents of your inventory, and to protect that inventory. Here are some requirements that a lender may ask of a small business looking for inventory financing.

  • A well-managed inventory: A lender will want to see that you have a trusted inventory management system that allows you to keep constant and up-to-date information on quantities, sales, returns, and basically any piece of information that has to do with the movement of inventory through your business. They may also require that you complete a full-audit before applying for the loan. Often an internal audit may not suffice. You may have to pay upfront for the services of a 3rd party auditing service. 
  • Protected inventory: If your inventory has a short shelf life, then getting inventory financing may prove more difficult. However, if your inventory can sit on shelves for a long time without issue, then lenders will be more happy to lend you money using your inventory as collateral as long as they see you have taken steps to protect the inventory from potential damage. 
  • Open door policy: If you are acquiring inventory financing you should always be prepared for a lender to show up unannounced for a surprise visit to ensure you are doing your best to protect the inventory. 
  • Accurate records: Lenders want to see a business that is doing well and that is selling their product. In order to demonstrate a certain level of sales, a business should have accurate sales records.

If you are looking to qualify for inventory financing, at a minimum, you should expect the above mentioned requirements from most lenders. Some lenders may actually have additional or more strict requirements for you to meet in order to receive financing.

How Kickfurther can help

Most small businesses need some type of inventory financing, regardless of how established they are. Inventory financing often sounds like an easy answer for stocking products but it can be costly. After searching hopelessly for affordable inventory financing, Kickfurther was founded by an entrepreneur just like yourself. Compared to other financing options, Kickfurther is up to 30% cheaper and allows business owners to pay back loans as inventory sells. 

Searching for affordable inventory financing? Visit Kickfurther today!

How to Better Market Yourself & Your Business

Posted on by Kaylyn Perry

Deciding how to market your business can be challenging. You will need to determine the best way to reach customers along with what fits in your budget. You will also need to determine how to market yourself and or your company. The internet helps companies expand their reach and effectively market products and services. Keep reading to learn how to market your small business online.

Best Strategies for Marketing Yourself

Marketing yourself can be one of the toughest things to do for an entrepreneur. However, a fundamental part of brand positioning is presenting yourself and making yourself available to your existing and potential customers.  You should want to build relationships with your customers to let them see the human side of your brand. The main issue then is how do you present yourself? What kind of content would people be interested in? How can you build a strong social media presence and not overwhelm your followers to the point of annoyance? Here are some basic strategies for marketing yourself in a safe, responsible, and effective way. 

  • Become an expert in your niche: When you are beginning to market yourself, you should do your homework and know what you are talking about. Anyone who consumes your content should be able to rely on you for accurate information, and if they happen to know anything about the subject matter, they will easily be able to tell when you are not fully educated on the subject. The result is, you will lose credibility and followers. That is why it is important to choose a niche and then become an expert in it. Identify who you are, what you represent, and figure out what makes you unique. Too many times people choose too broad of a subject and they can get lost in the endless sea of brands and personalities that fall within that subject. The first thing you may want to do is to research your subject and identify what areas are currently being underserved and unaddressed. Then you may want to consider whether or not the market or subject you have chosen is niche enough or if there are ways to get even more specific. The same goes for whether or not you are getting too specific and risk alienating large portions of the market. 

Once you have found the perfect niche that is not too general and not too specific, it is time to educate yourself to the point of expertise. Trust is extremely important when you are beginning to market yourself. If you give incorrect information, your reputation can become tarnished. You may want to set aside some time every day to read up on your niche. Additionally, if any certifications exist that are related to your chosen field, you may want to consider obtaining them. Other steps you can take may involve reading articles and/or market research about your industry, setting up conference calls and phone conversations with other experts in your field, and looking into attending industry conferences or events. You may even be so bold as to ask to speak at an industry conference or event. All of these steps work to help you build the established reputation of being an industry leader and expert in your market.

  • Build a social media following: The first key to building a large social media following is to know your audience and determine what platforms they are using. Is your audience a younger crowd that uses more of Instagram, Tik Tok, and WhatsApp? Or, are they a little older and have settled into using Facebook and Twitter more. Although most demographics use Facebook and Twitter, you may be able to target a younger demographic much easier with a platform like Tik Tok. Essentially, you want to know where your audience is based on the demographics you are trying to target. Once you create the social media accounts that will be the most effective for your goals, you then want to determine how you can make meaningful content and connections with your audience. Also, you can use your social media accounts to interact with potential customers and other experts in your industry. Make sure you are prompt when responding to customer inquiries. Finally, you want to edit your social media profiles to link directly to your landing page. 
  • Educate others: A fair exchange of knowledge between experts and inspiring experts is not only good for business, but it is also good for elevating the industry in general. It is important to remember that competition does exist, however, networking, even between competitors, can be a powerful tool. 
  • Look for speaking opportunities: One of the best ways to make a name for yourself in your industry is to participate in speaking opportunities or Q&A’s at industry conferences and events. When you finally get to book some speaking events, you want to keep in mind you are not selling your product, instead, you are marketing yourself as an expert in the industry. You can reference your product at the end of the speech, however, the main focus of the speech is to help your audience learn more about a particular subject. 
  • Seek recognition for your expertise: Acquiring certificates and participating at speaking events in your industry is most likely the most effective way of gaining recognition. Other ways may include effectively utilizing your social media and creating a YouTube channel that gives users informative information about your industry and your product. Again, the focus should be education rather than simply selling a product. 
  • Build relationships: Networking networking networking. Networking is so important that we mentioned it three times. Face-to-face contact can be difficult at times due to COVID and geographical restraints, however, face-to-face interaction is critical for developing long-term relationships that can flourish into unexpected and fruitful business possibilities. For example, if you participate in a speaking event, take time after your speech to talk to people and exchange contact information. Same thing if you are not necessarily the speaker, stick around after a speech from a keynote speaker to introduce yourself and also exchange contact information. Another way to build relationships is to identify important people in your industry and set up business meetings and/or lunches. Offering to buy lunch in exchange for some potentially game-changing knowledge is a cheap and effective way to learn valuable information, or to make an ally in the industry you can call upon in the future. 

Considerations When Marketing Yourself

The most important thing to remember when it comes to marketing yourself is that even though it can feel uncomfortable at times presenting yourself to strangers, it is critical for brand positioning and for doing your best to ensure the future of your business. Remember to always be an expert and to do the work necessary to maintain that expertise. Remember, social media and industry conferences or events are essential to marketing yourself to existing and potential customers or business partners. Remember to network and to build long lasting business relationships that have the potential to be mutually beneficial. There are many other things to consider when thinking about how to market yourself, however, there are some of the basic principles that you should always keep in mind. 

Conclusion

While you may know and believe how great your products and services are, you need to communicate and show others. Marketing is extremely powerful when done creatively. Startups or small businesses often struggle with marketing budgets as it can be expensive. However, it can help increase sales while in turn should improve profits and cash flow. As sales start to increase, you may need to find affordable inventory financing. At Kickfurther, companies can access the funds they need to finance inventory for up to 30% cheaper than other options. With over 800+ deals funded and a 99.5% success rate, Kickfurther is helping companies sell more inventory now while allowing them to pay later.

Discover affordable inventory financing. . . click here!

How to Launch a New Product on Social Media

Posted on by Kaylyn Perry

Launching a new product is exciting. As the creator you may know all it has to offer, but you will need to communicate that and excite consumers. Social media is a valuable platform that allows you to reinforce your brand, share messages, and launch new products. While some of us may only watch TV or listen to the radio an hour or so a day, most of us open our social media platforms several times a day. As a business owner, you will want to understand social media marketing and use it to grow sales. 

Why is launching a new product on social media important?

Any small or midsize business launching a new product should consider how properly utilizing social media can contribute to a widely successful product launch. Launching a new product can be a hectic time that requires many moving parts to come together to form a cohesive front to support the product launch. Some of those moving parts include the eCommerce website itself, the fulfillment team, customer service, marketing,  IT,  and management. All of these moving parts are responsible for their own contributions to a successful product launch. In the confusion and chaos, some businesses may overlook the importance that social media can play in a successful launch. Sometimes social media can be viewed as an afterthought. That is a mistake, and here is why. Here are the top reasons why social media is part of any successful product launch. 

  1. Social media allows you to reach your target audience: When you use social media platforms like Facebook or Instagram, for example, you can run targeted promotions to the exact demographic that you have identified as your target market. Leading up to a product launch, it may be extremely beneficial to run target promotions to the gender, age, location, and special interest demographics of the populations who are going to most enthusiastically respond to your new product or service. 
  2. Build hype around your product or service before the launch: Before you even launch your product, you can use social media to start to create hype around a new product by releasing product teasers. If a product teaser is done properly, you can grow an email list of potential customers before the product goes live. There are some key characteristics of an enticing product teaser. First, the teaser should provide a glimpse into the function and/or capabilities of the product without providing a full demonstration. Second, it should excite and make people curious about the product. Third, the teaser should be visually captivating. Last, the teaser should be 100% shareable across multiple social media platforms. 
  3. Social media allows you to interact with potential customers: Unlike radio and television, which is a one-way flow of communication, social media is an interactive form of communication between companies, and both their existing and potential customers. Once a product is launched, customers can create chatter on social media, ask questions, and continue to build hype around a product. A company needs to be proactive and respond to inquiries promptly and be an active and willing participant in the conversation. 

Social media can be extremely helpful to a successful launch of a new product. By building hype, targeting desired demographics, and engaging with existing and potential customers through social media, a company may exponentially increase the chances their product will be a success. 

How can social media help sell a new product?

Social media is a unique medium for advertising for many reasons. First, social media allows a company to match its social strategy and brand image to its intended customer. Through specific targeting tools used by ad platforms like Facebook Ads, for example, a company can target social media users by their gender, age range, location, and special interests. Second, companies can create original and thoughtful content and control how frequently their content is broadcast across the platform. The idea is to find the sweet spot between being loud enough to not get drowned out without posting too frequently the message becomes a nuisance to users. Third, a company can build its own community and network with existing and potential customers alike. 

Which social media platforms are best for launching a new product?

Before a company launches a new product, extensive market research should be conducted to determine who the target market is. This research also can be used to help determine which social media platforms would potentially produce the best results upon launch of the product. For example, for a product or service that is intended for a Gen Z audience, a social media platform like Tik Tok may produce better results than a platform like LinkedIn. Knowing your audience, and which social platforms that particular audience engages with the most, is instrumental to successfully launch a new product on social media.  

Tips to launching a new product on social media

Launching a new product can be an exciting yet overwhelming event for any company. By using social media, a company may be able to reach more people, but at the same time, reach people that are more likely to be interested in its product or service. When a company is ready to launch a new product, social media should be one of the most important tools in its arsenal. Here are some tips for launching a new product on social media. 

  • Identify your goals: Identifying your goals will help you create milestones that you can hold yourself accountable for accomplishing. Your goals should be specific enough that you and your team can develop creative strategies to achieve them. 
  • Set a timeline and dates around the product launch: Do some market research to help determine when the perfect launch time would be based on what kind of product or service you are launching. Once you have a launch date, that is your deadline. Working backward from that deadline, create a day-to-day schedule and hold yourself to that schedule. Allow yourself a little flexibility when creating the schedule to account for minor setbacks. 
  • Choose social media to promote on: Social media is not a one size fits all approach. You will need to do your research to determine which social media platforms would work best for your product or service and then focus your energy and resources on those platforms. 
  • Develop an influencer marketing strategy: Using a social media influencer marketing campaign may be a good way to help your brand reach a wider audience through a social media influencer who is trusted by their followers. They may be trusted by their followers to recommend products because the influencer is seen as an authoritative source in their specific niche. 
  • Develop campaign assets: Campaign assets refer to the media you will use in your social media marketing campaigns. Media like the photos, videos, graphics, and GIF files will need to be commissioned. You will also want to create photos and videos featuring your product. 
  • Launch your campaign: When you launch your campaign and product or service, you should have all your assets ready to be released in a strategic manner. Go ahead and launch your product at the predetermined time.
  • Monitor and track performance: Take note of what resonated well with your target audience and what did not. Also, take note of which social media platforms worked best and which you may be able to avoid in the future. Did you make the goals that you set before the launch of the product? If not, how can you adjust to better meet your goals on the next campaign? 

Grow your business with Kickfurther

Launching a new product can be expensive. Regardless of the cost, you will want to make sure the product is created and launched the right way. Of course, you will want to make sure your anticipated ROI is healthy before investing. Once you have projected sales goals and outlined a budget, you will need to find a way to make it happen. Kickfurther can help your business reach its goals by ensuring that you have the funding you need. Kickfurther was created by an entrepreneur who once struggled to qualify and find affordable inventory financing. After experiencing a real struggle, he created Kickfurther with the mission to provide affordable inventory financing for businesses. Kickfurther is up to 30% cheaper than other options. Business owners can secure the funding they need while taking advantage of flexible repayment plans. 

Grow your business with affordable inventory financing. . . visit Kickfurther today!

What Supply Chain Metrics Should You Be Tracking

Posted on by Kaylyn Perry

As a business owner, you may be tracking several metrics. Metrics help measure results in a quantifiable manner. Supply chains have several components, thus resulting in several components that can be tracked. When you drill down into the details of your business and supply chain you may be overwhelmed with how many metrics you can choose to track. You may be asking yourself, what supply chain metrics should you be tracking?

What are supply chain metrics?

Supply chain metrics are data sets that are used to quantify and evaluate key elements of a business’s supply chain. The key elements include supply chain performance, customer service, and supply chain leverage. An efficient and fully optimized supply chain is critical to increase profitability and to increase shareholder value by ensuring the business is competitive in the marketplace. Here is a breakdown of the different types of supply chain metrics that are available for each of the key elements mentioned above,

  • Supply chain leverage: Cost of inventory, cost of manufacturing, cost of materials, DSO, DPO, and several other tools. 
  • Supply chain performance: Accuracy of forecast demand, lead time and variability of replenishment, supplier performance. 
  • Customer service: Order fill rates, on-time delivery, and service levels.

The metrics supporting supply chain leverage (inventory, manufacturing, and material costs, DSO, DOP, etc.) help to lower the time it takes for cash-to-cash conversion cycles while adhering to projected customer service levels. The supply chain performance metrics help to improve demand visibility and forecast. These metrics drive continuous process improvement to create leverage further down the supply chain. The customer service metrics help to balance service levels with profitability. They monitor important metrics such as on-time delivery, which can be a large indicator of customer satisfaction. 

When supply chain leverage, supply chain performance, and customer service metrics are collected and analyzed properly, they can be used to measure progress against pre-established goals and to strive for continuous process improvement. 

What are the important supply chain metrics / KPIs?

When you are looking at defining your supply chain KPIs, you have to set the performance parameters that are required for tracking operations that give you insights into how well your supply chain is functioning. You can establish goals and track these operation metrics to reveal how effectively your supply chain is meeting those targets. KPIs can help your company improve order fulfillment, shipping operations, and warehouse management. KPIs can make shortcomings apparent, allowing you to leverage areas you are excelling to improve supply chain performance. If you are thinking about expanding your business, then KPIs will help you make informed decisions to help you scale your business appropriately. 

Top metrics every supply chain should track

Supply chains are comparable to circulatory systems. They must flow seamlessly and uninterrupted in order for production, transportation, customer service, and other operations to be aligned.While it may be a complex task to track supply chain metrics, you will be glad you invested the resources into tracking. Metics can help you identify areas of improvement, thus allowing your business to be more efficient and lower costs. Metics can also help businesses better meet customer demands. The more organized and aligned your organization is, the better customer service you can deliver. Here are some supply chain metrics that you should track.

Cash to cash time

Cash-to-cash (C2C) can also be called cash conversion. It’s a simple metric that measures the time between a company sending cash to a supplier and receiving cash from customers. Typically, three measurements are used to make up this compound metric. Those measurements are days of inventory, days of payables, and days of receivables. While benchmarks can vary from business to business, cash conversion cycles of less than one month are favorable. The cash conversion cycle can vary depending on the industry. A study reported that over 22,000 publicly traded companies had a direct correlation between a shorter C2C cycle and greater profitability in 75% of cases.

Cycle time

Cycle time helps indicate overall efficiency of a supply chain. This metric measures the time it would take to complete a customer’s order, assuming all inventory levels are at zero at the time the order was placed. It’s the sum of the longest possible lead times for every stage within the supply chain cycle. Shorter cycles indicate a more flexible and responsive process. Supply chain cycle time can help uncover existing or potential problems.

Fill rate

Demand satisfaction rate is often called fill rate. This metric is the amount of customer demand met through stock availability. It does not include backorders or lost sales. Tracking fill rates helps identify sales you can recover and or inventory performance. If you have better inventory performance you can provide better customer service. A key part of this metric is understanding access to inventory data. The more accurate and accessible inventory is, the more accurate shipping and orders can be. Maintaining a good relationship with suppliers can help improve fill rates.

Inventory turnover

Inventory turnover is a simple yet critical metric to track. In simplest terms, inventory turnover is the number of times inventory will sell out within a specific time period. Inventory turnover can provide a snapshot of the efficiency of your entire supply chain process. Benchmarks will vary depending on the company and the industry. A low inventory turnover rate usually indicates weak sales. What is considered low can depend on the industry.

Perfect order rate

A perfect order rate or index is a metric that shows the error-free rate of the entire supply chain process. Every stage of the process is evaluated to determine the overall performance indicator. In some cases, this can be a confusing metric. For example, if there are four stages being evaluated and each stage is performing at 99%, when multiplied together you will get a 96% error-free rate. While the metric may be confusing it’s important to drill down to determine issues and where they are coming from. The perfect order rate can help improve overall supply chain performance. 

Supply chain costs

Costs are an extremely important metric to pay attention to and carefully track. For the supply chain, relevant costs might include planning, sourcing, developing, and so forth. Costs can help determine how efficient various parts of your company are. It’s always important to increase profit without increasing costs. However, you want to avoid taking shortcuts or doing things the wrong way in order to cut costs. You also want to make sure you find the value in each cost. Investing in one area may indirectly improve another area of your business. It’s important to think broadly and have an open mind.

Grow your business with Kickfurther

Tracking metrics and growing supply chains requires investment. If you aren’t already tracking some of the metrics explained above, you should start now. As your business grows, you may need to secure financing. Metrics may help you understand that you need more inventory and or when you need more inventory. Maintaining proper inventory level is critical to ensure orders are on time and no sales are missed. As a small business, it may be hard to qualify for inventory financing. Or worse, it may be expensive to use inventory financing. Kickfurther offers businesses a better way to secure the funding they need for inventory. Kickfurther is up to 30% cheaper than other options. If you are trying to grow your business and improve your supply chain, you may be roadblocked by a lack of funds. Kickfurther can help you drift around roadblocks and keep your business growing. 

Discover affordable financing for your business. . . visit Kickfurther today!