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Basic Stock

Make sure you have the appropriate amount of stock to fulfill customer needs.

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Your basic stock should provide you with enough products and/or raw materials to fulfill orders from customers. To accurately calculate basic stock, you must review actual sales during an appropriate time period, such as a full year of business. Because you will have no previous sales and stocking figures to guide you during start-up, you must project your first year's sales based on your business plan and maintain your stock accordingly.

Excerpted from Starting a Home-based Business