A good way to do inventory is to use a system that uses tags to track what comes in and goes out. To start this system, get some kind of ledger or notebook and list the entire inventory. On each piece of inventory, put a sticker or tag with an inventory number on it (every number should be different), and write in the ledger the corresponding item to the number it is labeled with.

Whenever you sell something, remove the tag and put it next to the listing in the ledger. Periodically, check through all of your inventory and see if you have a tag in your ledger for anything that is missing.

The tag method is just one way to do inventory. There are other ways to keep track, like through a point-of-sale or barcode system (this is best for larger inventories and businesses) or through comparing delivery statements and sales receipts, There are also inventory tracking computer programs. Decide what type of system works best with the amount and type of merchandise you carry.

How to Invoice

Sending invoices is an important part of a running a home business. You can easily create an invoice template on any word processing program by putting some type of logo or company letterhead on it and including the following information:

• Your company's name, address, phone number, website, and fax
• The company or individual you are billing's name, address, phone number and other information. You can give this information a heading like `Sold to'. You can create another heading of `ship to' it is different than the other heading.
• A section that lists what was sold, how many, at what price, and any shipping costs. Allow some room for a description of what was sold, if necessary.
• In a top corner of the invoice, put some kind of number to for help with filing. Be sure to also date all invoices - both for your record and for the person you're sending it to (this is a good idea if you're setting a due date for payment - like a 10, 15, 30 day window).

If you don't want to create your own invoice template, there are a variety of invoices that can be downloaded off the Internet for free or for a minimal fee. There is no specific way to make an invoice, so feel free to make it work for whatever type of service or product you sell.

When sending an invoice, you need to really consider timing. You don't want to send the invoice too soon, so they don't feel rushed. On the other hand, you don't want to wait too long because the longer you wait, the harder it is to collect - either they don't have the money or they might just forget. Keep things positive and end on a good note.

Learning how to run the retail side of a home business takes some organization. But if you set up an inventory and invoicing system that works well with not only what you sell, but how you run your business, you will be able to be as productive as possible, while meeting your sales expectations with less stress.