Make sure you have the appropriate amount of stock to fulfill customer needs.
Your basic stock should provide you with enough products and/orraw materials to fulfill orders from customers. To accuratelycalculate basic stock, you must review actual sales during anappropriate time period, such as a full year of business. Becauseyou will have no previous sales and stocking figures to guide youduring start-up, you must project your first year's sales basedon your business plan and maintain your stock accordingly.
Excerpted from Starting a Home-based Business