Module 14

Inventory, cash and the year plan

9 lessons, 40 stepsOne instruction at a time, each with the result to expect. Tick steps as you go; Helix remembers.

Outcome: the right stock at the right time, a cash forecast you trust, and a plan for the year that ties sales, stock and marketing together.

Related SOP: 17 Inventory and cash planning

In plain words

Stage: Grow (keep more of every sale, then scale). Every lesson below is tagged with its stage; see Attract, Convert, Grow.

What it is: How to keep the right amount of stock and enough cash in the bank.

Why it matters: Running out of stock stops sales. Too much stock ties up cash you need for ads.

Do this:

Check how many weeks of stock you have for your best sellers.

Order before you drop below your safe level.

Keep a simple 13-week cash forecast and update it weekly.

Words to know:

Weeks of cover: How many weeks your stock will last at the current sales speed.

Cash forecast: A week-by-week list of money coming in and going out, so you can see tight weeks early.

All words are explained in the glossary.

Lesson 14.1: Range planningGrow

Why this matters

Your range is the set of products you sell. Planning it on purpose puts your cash into styles that earn, and lets you test new ideas small before committing.

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Choose the categories that earn the most and fit your brand, using last year's sales and margin by category.

Expected result

You have a short list of focus categories.

Lesson 14.2: The weekly stock snapshotGrow

Why this matters

A weekly stock check takes ten minutes and prevents the two expensive mistakes: selling out of a best seller and sitting on stock that will not move. SOP 17 has the full steps.

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Step 1 of 4

Open Suppliers & stock in Helix and update on-hand and on-order counts for each product.

Expected result

Counts are current for this week.

Open suppliers and stock

Lesson 14.3: Five cash leversGrow

Why this matters

Stock ties up cash, and cash is what lets you grow. Five levers free it up: buy cheaper, get better terms, pay later, lower the risk and sell faster.

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Read the five levers in the table below and pick the one easiest to pull this month.

Expected result

You have one lever chosen.

Good to know

Lever	Examples
Get it cheaper	Better prices on bigger orders, other suppliers, cheaper freight (sea instead of air), packaging changes
Get better terms from suppliers	Smaller deposits, production in stages, more time to pay, consignment (pay only when it sells)
Pay for it later	Trade finance, supplier credit, inventory loans. Always compare the true cost.
Lower the risk	Smaller first orders, preorders, extra safety stock only for A items
Sell it faster	Promote products with too much cover, bundles, clearance with gentle tools (gifts, bundles)

Lesson 14.4: Cash flow forecastGrow

Why this matters

A cash flow forecast shows how much cash you will have each month. Profit is not the same as cash in the bank, and stock deposits can drain the account months before the sales arrive.

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Make a spreadsheet with one column per month for the next 3 to 12 months.

Expected result

You have a blank forecast.

Lesson 14.5: The debt decisionGrow

Why this matters

Debt can speed up growth or sink a store. Borrow only when both tests below are true.

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Check the money will clearly earn more than it costs (for example stock for a product that already sells well, or extra stock for the busy season).

Expected result

You can name the return the money will make.

Lesson 14.6: Money mindset and finance helpGrow

Why this matters

Good money habits make the numbers easy to see and the business easy to run. Four habits cover most of it.

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Open a separate business bank account if you do not have one, and move all business income and costs to it.

Expected result

Personal and business money never mix.

Lesson 14.7: The year planGrow

Why this matters

The year plan ties sales, stock and marketing together. Working backwards from monthly targets tells you what to buy and spend, and when.

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Step 1 of 4

Find your growth rate by comparing the last 12 months of sales with the 12 months before (Dashboard, Year view).

Expected result

You have a growth percentage.

Open your growth dashboard

Lesson 14.8: Finding and vetting suppliersGrow

Why this matters

A good supplier makes a good product on time at a fair price, and tells you early when something goes wrong. Changing supplier mid-season is slow and risky, so vet carefully up front. Helix keeps suppliers, minimums, lead times and terms on the Suppliers & stock page.

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Write a one-page spec: materials, size, finish, packaging, certifications and your target landed cost.

Expected result

Every supplier can quote against the same spec.

Lesson 14.9: Reorder points, lead times and stock-outsGrow

Why this matters

Running out of a best seller loses sales and pauses your ads, while ordering too much ties up cash. A reorder point tells you exactly when to order, and Helix does the maths for every product.

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Step 1 of 6

Work out sales speed: average units a day over the last 4 to 8 weeks, leaving out stock-out days and big sale days.

Expected result

You have units per day for each product.

Good to know

Example: you sell 2 shirts a day, lead time is 50 days and you keep 14 safety days. The reorder point is 2 x 64 = 128 shirts. With 140 on hand and none on order, you have about 6 days before you must order.

Self-check

Name the five cash levers.
When is borrowing reasonable?
What is the reorder point for a product that sells 3 a day with a 40-day lead time and 14 safety days?

Answers

Get it cheaper, get better supplier terms, pay later, lower the risk, sell faster.
When the money clearly earns more than it costs and you could make repayments in a bad month. Usually for stock that already sells well.
3 × (40 + 14) = 162 units.

Words to know in this module

Cash forecast: A week-by-week list of money coming in and going out, so you can see tight weeks early.
Weeks of cover: How many weeks your stock will last at the current sales speed.
Margin: The share of each sale you keep after product cost. A $100 sale with $40 product cost is a 60% margin.
Safety stock: Extra stock (or days of stock) you keep in case sales jump or a shipment is late.
Flow: An email or text series that sends by itself when something happens, like a new sign-up.
Profit: What is left from sales after product cost, shipping, payment fees, discounts, refunds and ads. This is the number Helix cares about most.
Fixed costs: Bills that stay the same each month, like rent, software, staff and your own wage.
Theme: The design template for your Shopify store. It controls how every page looks.
Lead time: How long it takes from placing an order with your supplier to having stock ready to sell.
Landed cost: What one unit really costs once it reaches your warehouse: product, freight, duties and fees.
MOQ: Minimum order quantity: the smallest order a supplier will accept.
Product cost: What one item costs you to make or buy, including freight to your warehouse.
Reorder point: The stock level at which you should order more so you do not run out.

All words to know