Businesses should make it a point to store only that inventory which is necessary for the business. There is no use storing too much inventory as it would not serve any purpose. It would simply block funds which could have been put to other fruitful uses. Other expenses greatly increase in the presence of an inventory. These expenses include transportation, security and storage. All these additional expenses have an influence on the overall profitability and success of a business.
Businesses of any variety cannot taste success without perfect financial management. Effective financial management ensures that the raw materials are availed within deadlines, inventory is not very high and the funds are properly allocated to varied business requirements. Following good procedures of managing finances can help in making a difference between a business being unsuccessful and successful.
A successful business cannot be run in the absence of proper ethics. Businesses should have the best ethical practices in perfect place for surviving on a long term. Business ethics involve the way businesses are conducted; the way the company handles sensitive issues; the way it handles its employers and corporate social responsibility. These are some of the biggest factors that have an important role to play in ensuring business success.