How Much Inventory Should I Start With?
When you are starting a small business, it is tempting to order enough supplies to make your shop feel established. But every extra item uses cash before you know whether it will sell.
Start with a batch you can afford to test, make well and replenish.
Choose one product to test
Begin with one product or a few closely related options. Every additional size, scent or color can mean more supplies and more unsold stock.
Decide where you will sell and when you will review the results. Actual orders give you stronger evidence than likes or compliments.
Calculate what you must buy upfront
Your product cost and your shopping bill can be different.
In our fictional candle example, each item uses $6.27 in materials and packaging. Making 24 consumes $150.48 of supplies—but buying the required whole packs costs $176.
Add $40 in setup purchases and $10 in other launch spending, and the upfront total becomes $226.
Using the same example:
First batch | Total upfront cash |
12 items | $154 |
24 items | $226 |
48 items | $372 |
With a $250 budget, making 12 leaves $96 available. Making 24 leaves just $24. That breathing room may matter more than producing a larger batch.
Plan for some items to remain unsold
Ask yourself:
Can I afford this purchase if sales arrive slowly?
Do I have time and space to make and store the batch?
How quickly could I restock if it sells?
Review your results before ordering more. Track which items sell, what customers ask and how long fulfillment takes.
Use the First Product Pricing & Batch Planner to compare batch quantities and see the cash needed before buying your supplies.
Open the downloaded file in Excel and replace the highlighted example inputs with your own numbers.
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