5 Questions with Inventora Co-Founder Dianna Allen

This fall, we had the pleasure of meeting Dianna Allen, the visionary founder of Terra and co-founder of Inventora. In 2019, Dianna launched her home fragrance company, Terra. But as her business flourished, the need for a reliable inventory system became apparent. Dissatisfied with the existing options that failed to cater to small businesses like hers, Dianna took matters into her own hands. With the support of her software engineer husband, she embarked on a mission to develop a custom inventory system tailored to the needs of artisan entrepreneurs. Here’s what she had to say:

So, tell me a little bit about your journey. How did you come to co-found Inventora?

I started my home fragrance company, Terra, at the end of 2019. Not long after that, I started to look into tools and systems to prepare myself for being a solo entrepreneur. Inventory was one of those things I wanted to tackle because, as my business grew, I started to have more revenue, more products, and more materials. My apartment was filled with boxes and I wanted a way to know what I had without having to dig through everything. So, I searched for an inventory system to help me manage my materials. 

All the affordable options I found seemed so outdated, so, that's when I tried to make it work on my own. I created excel spreadsheets, but I wanted them to talk to each other. I wanted it automatic so that when I made 50 candles it would automatically deduct the materials used to create all 50. 

Thankfully, my husband is a software engineer. When I told him about this problem and how I just wanted the spreadsheets to talk. He concluded that it would be easier if he made me a system that did exactly what I wanted. So that was the birth of Inventora. 

How did you know that you needed to start building something new to fix this problem?

When we initially made the system, we made it for me. At that point, it only did automated deductions for when I created products because I just wanted to know what raw materials I had around me without going through boxes. But then I kept finding more things that I wanted it to do. I was like, “let’s refine this.” 

The aha moment came when people started reaching out and asking me about my inventory system. In one day, I collected a list of 30 people who wanted to use it. I remember taking that list to my husband and saying, “look at all these people who need inventory systems. Can you imagine?” That was the aha moment: when I talked about it publicly and all those people came to express that they had the same problem.

What are the most common mistakes that you see new artisans make when they start their businesses?

Not buying enough inventory. When I started I had a hard time keeping products in stock and it was because I never really knew how many materials I had. I see others make this same mistake, but if you have an inventory system that tells you how much you sell on average, you know how much you go through and how you could increase that and feel safe buying more.

Also, during my first year of business I didn't know what tax season entailed and that inventory is a deciding factor in taxes. You need to know the difference between your inventory at the beginning and end of the year. If you want accurate numbers, an inventory system will definitely help.

What are the most common inventory challenges that you see more established businesses facing?

Some people get caught up in selling just to sell when they need to take a step back and forecast upcoming quarters. Analyze your data from last year, see where things need to change. Think about what you can do with your marketing. What events can you take part in? Things like that help set goals and forecast your sales for the next period. 

In contrast to not buying enough inventory when you're starting, some people make the mistake of over-buying inventory that doesn't have enough sales data around it. So, for example, they want to release a limited-edition candle for the holiday season and they've never done this scent before but they're certain it’s going to sell. Sometimes that doesn’t work out and when you over-buy there's a lot of money that can get tied up in your inventory if it's not moving. 

Is there any parting advice that you can give from your inventory expertise? 

It's important to take account of all the cogs of your business when you’re established. Don't just set your pricing from the beginning and go from there. Once a year, sit down and take a look at if it's changed at all. I've been able to buy more materials in bulk each year as I grow. As I buy in bulk it cuts my material costs, making my profit margin larger. You could also analyze what is going on in the world. Is it time to raise prices? Does shipping cost too much? Have material prices gone up since you started out? Established businesses can feel safe because they're growing, but sometimes they also need to look at themselves from square one and reevaluate their status quo.

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