Inventory is a critical component of any small business, as it can make all the difference between success and failure. It is defined as the goods or materials held for sale by a company or that are used in its production process. In other words, inventory is what your business acquires, stores, and uses in its operations. Managing your inventory properly ensures that you have enough stock on hand to meet customer demand while avoiding overstocking and associated carrying costs. By having an effective inventory strategy in place, small businesses can benefit from better cash flow, smoother operations, and higher profits.