6 Lessons on Starting Up From Norm Brodsky

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Exercise Sound Inventory Control

Novice business owners often find themselves spending their cash on building their inventory, which is a mistake, says Brodsky. The real problem isn't in the cash flow but the business model that requires you to have inventory in the first place. When you find yourself in this situation, Brodsky suggests selling off any excess inventory and using the cash to pay down debts. (Search "sell excess inventory" online, and you'll find a slew of services catering to that need.) Then, consider an on-demand business model. Sure, you might not be able to fill every order, but running out of a product from time to time isn't necessarily a bad thing. (For more, read "Are Your Credit Card Bills Out of Control?," April 2011.)