How Businesses can Deal with Inventory Supply Shortages

Inventory supply shortages will happen. Sometimes, it’s due to overwhelming consumer demand, leaving businesses unable to keep stock. Other times, like now, inventory supply shortages occur as a result of material shortages and/or manufacturing issues. At this time, lumber and other essential construction materials are in short supply. Likewise, computer processing chips are also limited in supply. So, if this happens to your business, you need to be prepared.

Inventory Shortages are Inevitable

There’s no such thing as unlimited supply when it comes to material inventory. Whether it’s a disruption in the supply chain or sudden and unexpected limit of raw materials, the end result is the same — businesses can’t keep their shelves stocked. When put in this precarious situation, sales are inevitably affected, usually negatively.
COVID-19 has had a disruptive effect on the global supply chain, and small businesses are not immune. An average of more than 30% of American small business owners across sectors still reported a disruption to their supply chain in June 2020 data, months into the pandemic. Supply-chain disruptions can affect small businesses in many ways: They can reduce revenue, inflate costs, cut into market share, or cause issues with production—all of which can damage a company’s bottom line. —The Balance Small Business
Of course, a drop off in sales can be temporary and inflict minimal damage. But, a prolonged shortage will certainly cause a lot of monetary damage. If there’s enough inventory missing for a long enough period of time, it can spell the end of a business altogether.

Ways Businesses can Deal with Inventory Supply Shortages

When inventory supply shortages occur, it’s only prudent to react with strategic means. Business owners must act immediately, particularly if there’s a sense the shortage will go on for a lengthy period of time. Here are four ways businesses can deal with an inventory supply shortage:
  • Explore alternative vendors. Fortunately, there are usually a few or more vendors who supply businesses with the same types of inventory. Even a source that’s a bit more expensive can be worthwhile if it keeps customers coming through the door. (And, better still, if competitors aren’t willing to pay a higher sourcing price.)
  • Clearly communicate with customers. There’s simply nothing good that can come from not being totally up-front with your customers. In fact, there’s hardly more that is counterproductive. If you experience an inventory supply shortage, let your customers know what’s going on — especially if it’s expected to last for a significant amount of time.
  • Tap into super-sized, large bulk orders. Much like the first suggestion, you might find inventory for products in short supply in larger bulk orders. Obviously, you’ll have to run the numbers to determine if it’s financially viable and doesn’t present too much a risk.
  • Identify problems with inventory management. There are times when businesses have inventory issues that are caused by their own ordering and selling practices. Go over your procedures to identify any problems and then apply sensible solutions.
What other suggestions do you have? Please take a few moments to share your thoughts and experiences so others can benefit from your unique perspective! Your input could really help someone out! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Like this article?

Share on Facebook
Share on Twitter
Share on Linkdin
Share on Pinterest

Related Posts

Gift illustration

No, It’s Not Too Late to Cash In on the Holiday Shopping Spree, but You’ve Got to Act Fast

No, It’s Not Too Late to Cash In on the Holiday Shopping Spree, but You’ve Got to Act Fast The holiday season is a magical time for businesses, both large and small. While you might think you’ve missed the boat, it’s not too late to dive into the holiday shopping spree. In fact, with some strategic planning and swift action, small business owners can maximize their profits and make a significant impact during this festive period. Ways Small Businesses Can Take Advantage of Holiday Shopping The holiday shopping season is already underway, and small business owners know what that means: a chance to make a big chunk of their annual revenue. But with so many businesses competing for customers’ attention, it can be tough to stand out. If you’re worried that you’ve missed the boat on the holiday shopping spree, don’t despair. There are still plenty of things you can do to attract customers and boost sales this season. Here are a few tips: Make sure your website is up-to-date and ready for holiday shoppers. This means having a festive design, a user-friendly interface, and a secure checkout process. You should also ensure that your website is mobile-friendly, as more and more people are shopping on their smartphones and tablets. Offer holiday promotions and discounts. This is a great way to attract new customers and encourage existing customers to spend more money. You can offer discounts on specific products or services, or you can offer free shipping or other incentives. Run social media contests and giveaways. This is another great way to attract new customers and generate excitement about your brand. You can offer prizes such as gift cards, free products, or even a trip to your store. Partner with other local businesses. This could involve cross-promoting each other’s products or services, or hosting a joint event. Partnering with other businesses is a great way to reach a new audience and increase your visibility. Get involved in your community. Sponsor local events, donate to charities, or simply volunteer your time. Getting involved in your community is a great way to build goodwill and show potential customers that you care about more than just making money. If you follow these tips, you’ll be well on your way to a successful holiday shopping season. But remember, you need to act fast. The holiday shopping season is short, so it’s important to start planning and implementing your marketing strategies now. More Strategies Small Businesses Can Use to Promote Their Products and Services During the Holidays While the above advice will certainly help, if you’ve already got most or all of those bases covered, there are still other things you can do. So, here are a few additional tips for small businesses to cash in on the holiday shopping spree: Focus on your best-selling products and services. Don’t try to sell everything to everyone. Instead, focus on the products and services that you’re best at selling and that your customers love. Make it easy for people to shop with you. Offer a variety of payment options and make sure your checkout process is quick and easy. You should also offer free shipping or low shipping rates. Personalize your shopping experience. Send personalized emails to your customers with recommendations and special offers. You can also offer gift wrapping and gift notes. Provide excellent customer service. This is especially important during the busy holiday shopping season. Be responsive to customer inquiries and go the extra mile to make sure your customers have a positive experience. While it may be a little late in the game, small business owners can still cash in on the holiday shopping spree by acting swiftly and strategically. Understand the mindset of last-minute shoppers, optimize your online presence, leverage social media, offer irresistible deals, collaborate with local businesses, and maximize customer experience. Do you want to grow your company in 2024 but you are not sure what’s required to make that growth happen? Attend our “Planning for Growth” half-day workshop where you will get amazing details specific to your business for what’s needed from your marketing, your sales team, your production team, and your financial performance to enter 2024 with confidence you can indeed grow as planned. You will have the clarity you’ve always wanted but didn’t know how to create. It’s a $1495 value we are offering in November for only $99. Contact us for dates and times. We offer a 100% money-back guarantee if you don’t leave the workshop confident that you know what to do to grow your company in 2024. So, go ahead and contact us by phone or email! By phone 602-435-5474 By email: SteveM@WatersBusinessConsulting.com

Read More »
Social network illustration

Here’s the Big Lesson from the Mark Zuckerberg Apology Tour

Mark Zuckerberg is generating a lot of headlines. It’s too early yet to know if the old cliché “there’s no such thing as bad publicity” will eventually apply. But, what we definitely know is this is a company with too much going on at one time. Now, the merits of the scandal are in hot debate. On one hand, it’s a new practice but some marketers have come forward to explain this is just business-as-usual. Regardless, it’s started a conversation about privacy, advertising practices, and personal information security. However, this only touches the surface of the real problem — Facebook is too big. The Facebook-Google Duopoly Example Over the past few years, there’s been a lot of talk about the Google-Facebook duopoly. Now, it’s more apparent than ever these two companies are the center of the internet. Even more important is what this teaches us. Both companies are currently under heavy scrutiny — a result of their massive scales. Each company is far more than their core missions. Google is part of Alphabet, a huge conglomerate. As for Facebook, it owns Instagram, WhatsApp, Oculus, and more. Getting bigger means that you need to get more organized. Working fast and loose may have been fine for your small team of superstars, but it won’t work as well with a bigger group. As your ranks grow and positions that were filled by individuals transform into teams of people, the need to stay organized becomes amplified. —Inc.com The point here is Google is not just a search engine. Nor is Facebook only a social media network. Both are a lot more. Now, let’s distill this down to the world of small business. It’s only natural to grow and expand into new territory. The question is, when does that compromise the company’s core? In other words, growth isn’t always a good thing. How to Get Back to Business Basics One critical lesson here is the fact that when a business grows, does it grow to meet the needs of its customers? Or, does it expand to other areas for the sake of chasing profit. Of course, there’s nothing wrong with adding new revenue streams. But, there is something very wrong about letting it harm core competency. Here’s a few suggestions for how to get back to business basics: Listen to your customers. More customers are one sign that your business is growing. As your customer base increases, it becomes more and more difficult to stay in-touch. So, start listening in earnest again. There are several ways to do this beyond personal interaction, if necessary. Surveys, email, and more are valuable resources. Give your team a real voice. Just because your business is larger doesn’t mean that you need to only rely on a few key people. Chances are excellent, there are team members under management who have valuable input. Solicit from them periodically and take their insight to heart. Purge all the extra stuff. When a company grows beyond its initial offerings, it breaks its old parameters. Which means often journeying out to untested waters. Problems inevitably ensue. So, stop trying to force what’s not working and let it go. Get an outside perspective. Companies can easily lose sight of their identity. If a random person can’t immediately identify what your company does, or names off a bunch of things confusingly, that’s a bad sign. Bring in an experienced business coach to give you that much-needed outside perspective. Have you experienced a time when you needed to get back to basics? What other advice would you offer? Please share your thoughts and experiences by joining the conversation! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Read More »
Waters Business Consulting graphic

The Back-to-School Startups Poised to Cash In When the Bell Rings

With every new school year comes new business opportunities. While these windows are narrow, they nonetheless offer particularly profitable prospects, especially to entrepreneurs willing to move quickly and with purpose. However, it’s not necessarily easy to come up with good ideas, products and services that have real demand from local families. So, let’s take a look at some of the best startups to offer solid solutions for common problems as the school year begins. Practical Startup Ideas for the Busy School Year Launch The first day of school is pure chaos for parents—and pure opportunity for entrepreneurs who see past the backpacks and lunchboxes. Every August and September, millions of families scramble. Schedules reset. Budgets stretch. Stress spikes. Smart founders who understand this annual frenzy can launch lean, high-demand businesses that solve real problems right when people are most willing to pay for relief. Here are five of the strongest startup opportunities timed to the K-12 school-year launch. 1. Hyper-Local Tutoring and Homework Rescue Parents will pay for peace of mind the moment report cards and progress reports start arriving. A focused tutoring service—virtual or in-person—targeting specific grade bands or subjects (elementary reading, middle-school algebra, high-school STEM) can scale quickly with independent contractors. The best models combine short diagnostic assessments with flexible evening and weekend slots. Add group “homework clubs” or test-prep intensives and the margins improve further. 2. Ready-to-Go School Supply and Uniform Kits Big-box stores still leave parents hunting for the exact brand of glue sticks or the right shade of navy polo. Curated, school-specific supply kits delivered to the door remove that friction. Partner with local PTAs or school secretaries for accurate lists, offer customization options, and sell both standard and premium versions. The same model works for uniform packages, gym clothes, and even first-week lunchbox essentials. 3. After-School Enrichment Micro-Programs Traditional daycare fills up fast and often feels like warehousing. Parents increasingly want short, skill-focused programs—coding clubs, debate practice, sports skills, art intensives, or outdoor adventure groups—that run two to four days a week right after the final bell. These can operate out of rented church rooms, community centers, or even underutilized school spaces. Low overhead, high perceived value, and strong word-of-mouth potential. 4. Meal Solutions Built for School Nights The 5 p.m. scramble is real. Subscription meal kits designed specifically for school-week dinners, grab-and-go breakfast packs, or healthy packed-lunch services solve a daily pain point. Focus on kid-friendly nutrition, allergy awareness, and packaging that survives backpacks. Local delivery or school-pickup options increase convenience and justify premium pricing during the school year. 5. Parent Logistics and Coordination Platforms Carpool coordination, extracurricular schedule syncing, last-minute sitter networks, and even simple “who’s bringing the snacks” tools remain surprisingly fragmented. A clean, mobile-first platform that connects parents within the same school or neighborhood can generate recurring revenue through subscriptions or transaction fees. Start narrow—one school district or one activity type—and expand once the network effect kicks in. Why Timing Matters These ideas succeed because demand is concentrated and predictable. Marketing can be laser-focused on the six-to-eight weeks surrounding the start of school. Social media ads, partnerships with pediatricians and realtors, and booths at back-to-school events deliver efficient customer acquisition. Many of these businesses also enjoy natural expansion into the rest of the academic year once trust is established. Execution Notes for New Founders Keep the first version simple. Validate demand with pre-orders or waitlists before investing heavily in inventory or space. Prioritize reliability—parents will forgive higher prices far more readily than they will forgive chaos or no-shows. Collect feedback aggressively in the first month and adjust offerings accordingly. Finally, design the business so it can breathe during summer and holiday breaks rather than fighting the calendar. The school year resets every fall. The families who dread that reset are looking for help. Entrepreneurs who show up with practical solutions at exactly the right moment can build something both profitable and genuinely useful—right as the first bells ring. Want to Accomplish More for Your Business? Do you want your company to grow faster and earn more while spending more time with your family doing everything you started your business to do? We can make that dream a reality. Give us 30 minutes, and we will show you how to get your life back. Skeptical? Good! Put us to the test. You can call us for your free appointment at 480-636-1720, or, if you prefer, <a href = "mailto:info@watersbusinessconsulting.com”>send us an email. You can also visit us at Waters Business Consulting Group to learn more about us and the services we offer.

Read More »

Imagine Selling Your Business…

How Would Your Life Change?

You didn’t start your business just to stay busy—you built it to create freedom, security, and options for yourself and your family. Selling your business can be life-changing, but the real question is whether you’re intentionally building toward that outcome or simply leaving it to chance.

Sign up below for a free consultative session to learn what your business could be worth today and in the future! 

Thank you for your interest in learning what your business is worth. We will be in touch shortly.