Dan Kennedy (and others) say "Inventory is Evil".
Owning an inventory-based business, I have to agree.
#1 it's expensive to get started or grow - as you have to buy inventory before you can sell it
#2 it's a giant risk for not moving (requiring mark downs), getting stolen, going obsolete, etc
#3 long cash conversion cycle means lots of debt
Macy's has a 50+ day cash conversion cycle (how long it takes from when they pay for the goods until they collect money from their customers), while Apply has a NEGATIVE 50 day cash conversion cycle - meaning they GET PAID 50 days before they have to pay their vendors. You can't understand how huge this is unless you've run a business before, but this means Apple can grow their business interest-free.
What are your thoughts on inventory? How do you manage it?
PS: For many businesses inventory is a NECESSARY evil which can be used to create value, but it's still evil.
Owning an inventory-based business, I have to agree.
#1 it's expensive to get started or grow - as you have to buy inventory before you can sell it
#2 it's a giant risk for not moving (requiring mark downs), getting stolen, going obsolete, etc
#3 long cash conversion cycle means lots of debt
Macy's has a 50+ day cash conversion cycle (how long it takes from when they pay for the goods until they collect money from their customers), while Apply has a NEGATIVE 50 day cash conversion cycle - meaning they GET PAID 50 days before they have to pay their vendors. You can't understand how huge this is unless you've run a business before, but this means Apple can grow their business interest-free.
What are your thoughts on inventory? How do you manage it?
PS: For many businesses inventory is a NECESSARY evil which can be used to create value, but it's still evil.
Dislike ads? Become a Fastlane member:
Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)
Last edited:
Access Restricted: Unlock 1,000,000+ Posts
Stop Peeking Through the Keyhole.
Open the Door.
You hit a wall because the best advice isn't free—it's earned. Since 2007, MJ DeMarco has been active here daily (99.9% active rate), building a war room for entrepreneurs who refuse to settle for mediocrity.
- Active Daily: Life-changing content posted dozens of times every day. No dead threads.
- MJ's Inner Circle: Direct access to the author of The Millionaire Fastlane.
- Vetted Network: Connect with founders scaling to 7 and 8 figures.
- Proven Roadmaps: Strategy over motivation. Execution over "hustle porn."
"SCALED TO 6-FIGURE MONTHS"
"Tips and advice here saved me from huge mistakes, others allowed me to scale my business to 6-figure months."— User MitchC
"INSANE QUALITY OF PEOPLE"
"The number of high quality people I've met from this forum has been insane. All of it predicated on building real value."— User Richard Peck
"You are the average of the five people you surround yourself with."
Are you surrounding yourself with success?
