Lara GuevaraSupply Chain expert (Product and Service)

Three Inventory Traps Killing Cash Flow

4 Mar 2026 · 1 min

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Founders kill cash flow with three mistakes: holding six months of safety stock out of fear, accepting supplier minimums of 5,000 units when they need 2,000, and expanding to 50 SKUs where most generate little revenue. Identify which trap you're in and fix it.

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3 inventory traps killing your cash flow. Most founders are stuck in at least one, and you probably don't even realize it because these traps feel like smart decisions. Now, trap number 1: just-in-case ordering. You're holding 6 months of safety stock because you're scared of stockouts. That's not planning, that's paranoia, and it's eating your cash alive. Trap number 2: MOQ traps. Your supplier says minimum order is 5K, so you buy 5K even though you only need 2K. You just bought yourself a cash problem to save a few pennies per unit. Trap number 3, SKU sprawl. You've got 50 SKUs because you kept launching new products, but 50 SKUs means 50 separate piles of trapped cash, and I guarantee half of them aren't pulling their weight. Be honest with yourself, which trap are you right now? Write it down. That's the first step. Now, which trap are you in? Comment below and I'll help you find a way out.