Inventory may appear as an asset on the balance sheet, but when products sit unsold, they can quietly drain the cash a business needs to operate and grow.

In this episode of It’s The Bottom Line That Matters, Jennifer R. Glass and Patricia Reszetylo examine the financial and operational consequences of carrying too much inventory, purchasing too little, or misjudging what customers will actually buy.

They discuss how excess inventory traps working capital, while stockouts can lead to missed sales and frustrated customers. Through examples involving restaurants, retail products, handmade jewelry, books, dropshipping, and print-on-demand, Jennifer and Patricia explore how business owners can make more informed purchasing and demand-planning decisions.

The conversation also covers:

• How reservations, seasonality, weather, and customer behavior can help forecast demand

• Why inventory decisions should be based on market demand rather than personal preference

• How pricing can influence perceived value and purchasing behavior

• Options for moving products that are not selling as expected

• The financial risk created when anticipated revenue never arrives

Whether you operate a restaurant, retail store, online business, or product-based company, this episode will help you think more carefully about how much cash is tied up in inventory, how long it remains there, and whether that inventory is truly supporting your bottom line.