What Should We Stock, When Should We Buy It, and How Do We Finance It?
- Jacob Curtis
- Oct 27
- 5 min read
Inventory and Cash Planning for Outdoor Brands
Running an outdoor gear brand isn’t for the faint of heart. The same seasonality that drives your biggest sales surges can also bring your toughest cash flow dips. Many Shopify-based brands hit a wall every year — they overstock too early, underfund their peaks, or borrow heavily to keep up.
But financial stress isn’t inevitable. With clear forecasting, disciplined inventory planning, and stewardship-based financial systems, your brand can build profit instead of panic.
This guide walks you through how to:
Decide what and when to stock for each season,
Align purchases with your cash flow forecast, and
Finance growth using Profit First–style cash management to stay clear and confident.
The Real CFO Question: It’s Not “What Should We Stock?” — It’s “How Do We Keep Cash Moving?”
Every inventory decision is a cash decision. What you buy — and when — affects how long your money is tied up before it comes back through sales.
Financial pros call this the Cash Conversion Cycle (CCC) — the time between when you pay a supplier and when your customer pays you. A short cycle keeps cash flowing. A long one traps it on your shelves.
Most outdoor gear stores that fail don’t run out of sales; they run out of cash movement.
When you buy too early or too much, your “profit” gets stuck in a warehouse instead of your bank account.
Forecasting Isn’t Fortune-Telling — It’s Faithful Stewardship
Forecasting doesn’t need to be complex or intimidating. It’s simply paying attention to patterns — and preparing accordingly.
Look back at your last 12 months of sales. Notice when things spike (spring, summer, holidays) and when they slow down. Multiply your slow months by your average growth rate to estimate future sales. Then line up your purchases with that rhythm.
This isn’t guesswork — it’s stewardship. You’re aligning your spending with your mission and your cash flow, not reacting to fear or hype.
For more step-by-step guidance, see our Profit First Starting Guide.
Your Inventory Turns Are Your Oxygen
Healthy outdoor gear businesses aim for 4–6 inventory turns per year — meaning each product sells through completely four to six times annually.
If your inventory turns slower, your business starts to suffocate. Your shelves might look full, but your bank account feels empty.
Example:One outdoor gear retailer (let’s call them SummitCo) carried high-ticket tents and kayaks. Every spring, they loaded up on $80K of stock — months before peak season. By the time sales hit, their cash was already gone, and supplier payments loomed.
After we helped them track turns and align ordering with cash inflows, they reduced inventory by 25%, cut carrying costs, and started paying themselves consistently again.
When cash flows like oxygen, your team breathes easier — and your brand can thrive year-round.
The Right Buying Rhythm: Timing Your Purchases with Purpose
Instead of reacting to fear — “What if we run out?” — plan purchases around cash clarity:
Use your cash flow forecast as your stoplight. If your forecast shows a dip, slow buying. If you’re approaching a revenue peak, time purchases just before the upswing.
Skim off 10–15% of your peak-season revenue into a “Seasonal Reserve Account.” This buffer lets you buy inventory during off-peak months without panic.
Avoid “fear-based” bulk orders. Discount-driven buying often traps cash and forces markdowns later — a major mistake highlighted in 7 Financial Mistakes That Put Outdoor Gear Sellers Out of Business.
Negotiate supplier terms where possible. Even an extra 15 days to pay can dramatically shorten your cash conversion cycle.
When you plan purchases this way, you’re not reacting to cash strain — you’re stewarding it.
Financing Growth the Faithful Way
When your business grows, your need for cash grows too — but debt isn’t the only answer.
In the Profit First system, every sale funds tomorrow’s inventory, not today’s stress. By
setting up an Inventory Account, you allocate a small percentage of every sale toward future purchasing needs.
Here’s how it works:
Deposit 100% of revenue into your Income Account.
Transfer a set percentage (often 40–50%) into your Inventory Account each allocation period.
Use that fund exclusively for purchasing inventory.
This ensures your next order is already funded — without credit cards or panic borrowing.
To learn how to structure these accounts step-by-step, see our Profit First Starting Guide.
Cash Conversion Cycle: Shorten the Distance Between Buying and Banking
If you pay suppliers in 30 days but customers pay you in 60, you’re funding a 30-day gap. The goal is to close that gap.
Here’s how:
Negotiate better supplier terms (e.g., Net 45 instead of Net 30).
Offer small incentives for early customer payments.
Automate restocks through Shopify or TradeGecko to prevent overordering.
Use your data — not your gut — to determine reorder points.
Each day you shorten your cycle puts real dollars back into your cash flow.
For more tips, check out our Cash Flow Survival Kit for Outdoor Gear Sellers.
Faith + Forecast = Freedom
At Curtis Accounting Solutions, we teach that financial peace doesn’t come from guessing — it comes from preparation with trust.
You don’t need to know the future; you just need to plan for the patterns that are already there. Every forecast, reserve, and account allocation is an act of faithful preparation — a way of aligning your work with wisdom.
When you plan with purpose, peace follows preparation.
Your Inventory & Cash Stewardship Checklist
Here’s a quick recap you can implement this quarter:
✅ 1. Review your past 12 months of sales. Identify clear seasonal patterns.
✅ 2. Set inventory turn goals. Aim for 4–6 turns per year per category.
✅ 3. Create a cash flow forecast. Use it as your stoplight for buying decisions.
✅ 4. Open a Profit First Inventory Account. Allocate funds from every sale.
✅ 5. Build a Seasonal Reserve. Save 10–15% of revenue during peak months.
✅ 6. Negotiate better supplier terms. Even a few extra days matter.
✅ 7. Audit your open-to-buy plan monthly. Stay aligned with cash inflows.
Follow these seven steps, and you’ll transform your buying process from stressful guesswork into confident stewardship.
FAQs
How often should I forecast my inventory and cash flow?
Monthly. For seasonal brands, monthly forecasting ensures you catch shifts early and adjust before problems arise.
What’s a good benchmark for inventory turns in outdoor gear retail?
Most outdoor gear and apparel brands aim for 4–6 turns annually, depending on product type and shelf life.
How does Profit First fit into inventory planning?
Profit First creates cash clarity. By using dedicated bank accounts — including one for inventory — you pre-fund your next orders and avoid overextending credit.
How much should I keep in a Seasonal Reserve?
Start with 10–15% of your gross revenue during peak seasons. Adjust as your forecast accuracy improves.
What if my brand already struggles with cash flow?
Begin by assessing your cash position and cutting unnecessary expenses. The PURMS Action Guide and 7 Financial Mistakes resources can help you identify where to trim without harming operations.
Ready to Plan Your Seasonal Inventory with
Confidence?
If your business feels like it’s always one season behind your cash flow, it’s time for a smarter system.
At Curtis Accounting Solutions, we help Shopify-based outdoor brands align their inventory cycles, cash forecasts, and Profit First allocations — so you can finally breathe easy and grow with clarity.
You’ll leave with a clear, actionable plan to balance your stock, fund your growth, and protect your profit — no panic required.
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