How to Set Up an Inventory Management System: The Guide for Founders
- Simon. P
- Oct 2
- 5 min read
Updated: Dec 1
Launching a product business without inventory management is like opening a store without knowing what’s on the shelves.
You can’t sell what you can’t track. You’ll over-order, run out of bestsellers, and leave customers waiting — or worse, walking away.
Inventory isn’t just what you sell—it’s your cash in another form. Managing it properly ensures you don’t overspend, undersell, or run into fulfilment chaos when demand spikes.
At the heart of every great business is trust — and trust is built through consistency.
When your inventory is reliable, your promises are too. That’s why a scalable inventory management system isn’t just a tool — it’s how you honour the trust your customers place in you.
What Is an Inventory Management System?
An inventory management system tracks the products you have, where they are, how many you’ve sold, and when you need to reorder.
It’s the foundation for:
Accurate stock levels
Smooth order fulfilment
Clear reporting and forecasting
Better cash flow and profit margins
Whether you're selling physical products, bundling offers, or dropshipping, an inventory system gives you clarity.
Mentor Tip:
Your inventory system is not just for today — it’s your springboard for scale.
Why it is Important?
A Brisbane-based skincare brand launched fast, with no real stock tracking system.
After a viral campaign, they sold out—but didn’t know which items were low, which were stuck in transit, or which suppliers had delays.
They lost 4 weeks of revenue, refunded 120+ orders, and lost long-term trust.After setting up a proper system, they rebuilt—this time with:
Smart reorder alerts
Bundling logic
Real-time inventory syncing with their website and POS
Sales rebounded—and customer satisfaction followed.
What You’ll Need to Get Started
Before choosing a tool or system, gather these essentials:
A full list of your SKUs or product variants
Reorder thresholds per item
Supplier details and lead times
Fulfillment methods (self, 3PL, dropship)
Where inventory lives (home, warehouse, store, multiple channels)
Founder Insight: Even a spreadsheet can work at the beginning—if it’s set up clearly.
How to Set Up Your Inventory System:
Step-by-Step
Step 1: Audit Your Existing Stock
Count what you currently have
Remove discontinued or dead stock
Clean up product naming and SKUs
Result: You start with clarity and eliminate costly clutter.
Step 2: Choose a Tool That Fits Your Size
Use tools like:
Spreadsheet (Google Sheets with formulas and colour coding)
Wix Inventory (perfect for integrated website sales)
Zoho Inventory, Cin7, or DEAR Systems (for multichannel or scaling businesses)
Result: You pick a tool that works today and grows with you tomorrow.
Step 3: Input Products & Categories
Use clear names, SKUs, pricing, and images
Group similar items under categories
Result: Your inventory becomes easy to search, filter, and manage.
Step 4: Add Reorder Points & Suppliers
Add stock level triggers for reordering
Include supplier lead times and costs
Result: You avoid stockouts and delays by knowing when to reorder.
Step 5: Connect to Sales Channels
Sync with your website, POS, and marketplaces
Enable low-stock alerts and auto-pause when out of stock
Result: Your stock updates in real time across every channel.
Step 6: Review Weekly
Reconcile sales with stock counts
Check for errors, shrinkage, or anomalies
Adjust reorder levels as needed
Result: You stay in control and avoid costly surprises.
Mentor Tip:
A spreadsheet is only helpful if it’s current. Review it weekly — or automate reporting so your inventory is always accurate.
Cost of Setting Up Inventory Management
1) Do-It-Yourself Setup
Time Investment: 6–10 hours setup + weekly checks
Tools: Google Sheets (free), Wix Inventory (included), Airtable (freemium)
2) Hiring a Specialist
Option | Cost Range |
Freelancer | $500 – $2,000 (setup) |
Consultant | $150 – $300/hour |
Software Subscription | $0 – $300/month depending on features |
Budget Tip: Start simple. Use built-in tools like Wix Inventory or Airtable before jumping to full ERPs.
Benefits of Hiring:
Saves hours of setup and mistake fixing
You can include training in your price
Builds scalable systems from day one
Avoids stockouts and overselling
Common Mistakes Founders Make
Not tracking stock across all sales channels
Selling on multiple platforms without syncing inventory leads to overselling, delays, and frustrated customers.
Overbuilding too early with expensive tools
Founders often invest in complex software before they’ve even nailed their basic processes. Start lean, scale smart.
No system for reordering or stock alerts
Running out of key items? It’s usually because you didn’t set thresholds or alerts to reorder in time.
Forgetting to reconcile physical vs digital counts
Your system says 12 in stock, the shelf says 8. Regular checks prevent costly surprises.
Holding on to dead stock for too long
If it’s not selling, it’s costing you — in cash flow, space, and missed opportunity.
Mentor Tip: Start with visibility. Then improve accuracy, automation, and forecasting as you grow.
What to Do Next
✅ Get the full StartUp Deck
Everything you need to build a real business — from idea to execution. Over 30 years of hard-won lessons packed into one system so you don’t waste time, money, or momentum. [Includes 6 months of ProDesk access — theStartUpDeck.com]
✅ Need help? Book with Noize
Business feels overwhelming when you try to do it all yourself. Noize gives business owners a faster path — with expert advice, done-for-you solutions, and zero guesswork.
[Contact the team at Noize.com.au]
COMING in 2026...
✅ Download StartUp Business Resources
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The Bottom Line
Inventory is just your cash wearing a different outfit. When you track it, you protect margin, keep promises, and unlock scale.
Don’t wait for a stockout to get disciplined—set up a simple system, review it weekly, and let alerts do the heavy lifting.
Reliable inventory builds reliable revenue. Start now; future-you (and your customers) will thank you.
FAQs
What is an inventory management system?
An inventory management system helps you track, organize, and manage your products across channels. It prevents stockouts, improves cash flow, and helps scale operations.
Is Wix good for inventory management?
Yes. Wix offers built-in inventory tracking tools that work well for startups, eCommerce sites, and small retailers. It syncs with your online store in real-time.
Do I need special software to manage stock?
Not at first. Many founders start with spreadsheets, but as you grow, switching to platforms like Zoho, Airtable, or Wix Inventory can save time and prevent costly errors.
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