Inventory for small businesses is a tangible asset composed of the goods, materials, supplies, and wares your business owns. This can include items that are for sale to customers, as well as raw materials and components used in the production of goods. It’s an integral part of every enterprise – from retail stores to tech startups – because it helps determine the cost of goods, secures future supplies, and affects significantly how successful your business will be. Having a sound inventory system in place forms the backbone of any secure business operation – allowing you to manage costs and resources, optimize inventory levels, prevent shortages or overstocks, and increase overall profitability.