Module 6 of 6 · 4 minutes

Where the money sleeps

Point at something on your shelf that's been there more than a month.

Everyone can do this straight away. That's the problem.

Nothing you type here is sent anywhere.

The idea

Everything on your shelf is cash you can't use.

Fast movers turn back into money in days. Slow ones just sit there being expensive.

You didn't lose that money. It's still there. You just can't spend it, and you can't buy what actually sells with it.

The slow ones

What's sitting there?

Three or four is enough. What you paid for what's still on the shelf.

Asleep

Money you can't spend
Longest sitting

The bulk price was cheaper per unit

Cheaper per unit, more expensive per week, if half of it sits. Ask how long the carton lasts. Longer than a month and the discount is smaller than it looked.

Customers ask for it sometimes

Sometimes isn't a reason to hold stock. Order it when they ask, if you can.

I drive, I don't hold stock

Same idea, different shape. A spare you don't need yet is money that isn't in the engine fund. What have you got tied up that isn't earning this week?

The rule

Buy on last week's sales

Not on the discount. Name your five fastest: those are what you buy this week.

Buy from these

My fast movers
Asleep on the shelf

That's the six. Two tins. Three numbers. What it really costs. Full tin, empty shelf. The book. Where the money sleeps.

If you only keep one, keep the first. Everything else needs it.

Back to all six

Snap it. Send it. Sorted!