Inventory is a double edge sword. Too much and the costs consume the business (figure the inventory costs at 40% of inventory annually, so a $100,000 inventory will cost $40,000 a year to keep on hand) and too little and the shop can't produce the gross profits to cover expenses. The smaller shops that appear to do well seem to have found a balance between these two inventory issues. Of course there is more to it (such as having the higher gross margin items in stock) but StevieJ is correct. A $5,000 inventory for a retail shop is likely certain death unless there are some very unusual sales metrics.




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buying that has store fronts with lines out the door. While it's a death knell for the small business owner. Thankfully there's not 1-2 more left of center HRC appointed SCOTUS on the bench

