Have you ever felt like you’re buying inventory… selling it… then buying more… and somehow, you’re not actually getting ahead? breaking the Cycle starts here.
Friend, I’ve been there. You’re not imagining it, and you’re definitely not alone.
A smart retailer named Amanda asked a question in our Richer Retailer Facebook group that hit me right in the heart. She said:
“How do you get out of the never-ending cycle of purchasing, selling, and turning around to spend the profit right back on inventory?”
Whew. Can you feel that? That question is rooted in exhaustion and hope all at once.
This is what I call the buy-sell-broke inventory cycle, and I want to help you break free from it because profit is possible.
Listen to the full episode here:
Why Inventory Alone Doesn’t Grow a Retail Business
When I first started out, I thought more sales meant I was doing great. But the truth is, sales alone don’t build profit and neither does inventory.
Here’s what changed everything for me: Inventory doesn’t pay you, profit does.
That’s the mindset shift that turned my retail business around and it’s the foundation of the business strategy I now teach to store owners everywhere who are focused on breaking the cycle of buying and selling without growing their profit.
Let me walk you through the four key steps that can help you turn your sales into profit, not just more inventory and finally start Breaking the Cycle for good.
Step 1: Build an Inventory Management Plan That Works
If you’re buying based on instinct or emotion, you’re likely overstocking or missing key timing windows.
That’s why I say an Open to Buy Plan isn’t just a recommendation, it’s a non-negotiable! It’s the tool that creates a retail inventory budget aligned with your sales goals and helps you in breaking the cycle of overspending.
Your inventory should rise before a sales peak and drop as the season ends. Instead of asking yourself, “What do I want to buy?” shift to: “What do I need to sell and what inventory supports that?”
This small mindset shift is your first step toward breaking the cycle and reclaiming your profit.
Step 2: Use Profit First to Pay Yourself First
I love the Profit First method because it’s simple and powerful. It’s helped me and so many of our clients stop the paycheck-to-paycheck trap.
Here’s how I recommend starting:
- 50% of your revenue → inventory
- 10% → owner’s pay (yes, you!)
- 1%+ → profit (to start! Set up a separate account)
- The rest → operating expenses + taxes
Even if you can only start with 1% profit, do it. That small act signals that you are building a sustainable, profitable retail business.
Step 3: Stop Reordering on Autopilot
This one’s big.
Just because something sold once doesn’t mean it’s worth restocking. Ask:
- Did it have a healthy margin?
- Is it a seasonal trend or an evergreen performer?
- Is it actually driving profit, or just sales?
Your sales strategy should prioritize items that move the needle, not just the ones that move fast.
Step 4: Know Your “Never-Out-Of” Items
Your Never-Out-Ofs are your top 20 products by both units sold and revenue. These items are your profit drivers.
Track how many you sold last month and make sure you always keep that amount (or more during busy seasons) on hand.
Doing this can boost your sales by up to 13% with zero extra marketing. Now that’s smart inventory management.
Watch the full episode in YouTube:
Your Millie Moment:
- Pause for a second and ask yourself: “Why did I open my store?”
- Take 5 quiet minutes today and ask yourself: “Is my store supporting my life or draining it?”
- Reconnect with your “why.”
Let that answer lead your next move.Whether it’s reworking your inventory strategy, rethinking your sales plan, or finally choosing profit first you deserve to run a business that gives more than it takes. Because profit isn’t just about money. It’s about building a business that supports your life, not one that steals from it.
Want to break the buy-sell-broke cycle once and for all?
- Tired of feeling like every dollar just disappears into more inventory? Apply for your free Gameplan Call, we’ll look at what’s working, what’s not, and map out your most profitable next step. You’ll walk away with a clear plan to break the cycle, pay yourself more, and finally grow a business that supports your goals (not just your vendors).
- Want a behind-the-scenes look at how our top clients grow profit without burning out? Our free training, Beyond Busy: 3 Shifts to Reclaim Your Time and Boost Store Income, walks you through the exact Profit Roadmap we use in Profit Club, focusing on your role as CEO, CIO, and CFO to grow a business that’s both profitable and sustainable.
Don’t forget to join us in our Facebook community: Richer Retailer Facebook Group.
💚 Remember: You didn’t open your store just to survive the next season you opened it to thrive. You were made for joy, abundance, and impact. Profit is how you get there. And you absolutely can.
