If you're running a small business—whether it's a phone repair shop, local boutique, or even a small warehouse—keeping track of your inventory can quickly go from manageable to messy. The good news? You don't need a fancy enterprise-level system to get started.

This guide is for business owners with limited inventory (think 50–200 items) who want to:

• Organize their stock with barcodes
• Track parts, devices, or products more efficiently
• Avoid stock mix-ups and lost items
• Use what they already have (like Excel, a label printer, or a laser printer)

Let's break down exactly how to set up a simple, low-cost barcode inventory system—step-by-step.

Why Barcode Inventory Systems Matter (Even for Small Shops)

You might think barcodes are just for big retail stores, but they're incredibly useful for small businesses too. Here's why:

✅ Instant Identification

Each barcode is unique. With a quick scan, you know exactly what item you're looking at—no second-guessing.

✅ Reduced Errors

Say goodbye to manual entry mistakes. Barcode scans are fast, accurate, and clean.

✅ Time Efficiency

No more writing down serial numbers or checking handwritten logs. Barcodes cut inventory time drastically.

✅ Scalable Organization

Even if you only have 40–150 items, starting with a barcode system makes scaling way easier later.

What You'll Need to Get Started

Before diving into software, you'll want to make sure you've got the basic equipment:

1. Laser Printer or Inkjet Printer

Any standard printer can generate barcodes. You don't need a fancy setup—just one that prints clearly.

2. Label Printer (e.g., Brother Label Maker)

If you have a Brother or Dymo label printer, even better. These are great for printing small sticky labels for products.

3. Barcode Scanner (Optional)

Not required for setup, but highly recommended. You can find USB barcode scanners on Amazon for under $30. Or use a mobile app temporarily.

4. Excel or Google Sheets

This will be your main inventory hub. Use it to track:

• Item name
• SKU or barcode number
• Quantity
• Location
• Purchase date
• Supplier
• Notes or condition

Method 1: Using Excel for Barcode Inventory Management

Believe it or not, Excel is one of the best tools for managing small inventories. You can even generate scannable barcodes using special fonts.

🔧 Step-by-Step: Barcode Inventory with Excel

Step 1: Create a Spreadsheet

Set up columns for:

• Item ID / Barcode
• Product Name
• Category
• Stock Quantity
• Location
• Notes

Step 2: Generate Barcodes in Excel

Use a free barcode font like Code39 or Free3of9:

• Download and install the font
• In Excel, type your item code inside asterisks. Example: *A001*
• Change the font of that cell to Code39
• That's your scannable barcode!

Step 3: Print Labels

Use Avery label templates or compatible sheets for your printer. Print from Excel directly, or copy into Word using Avery's free template tool.

Step 4: Scan with a Reader or App

You can test your barcodes with a barcode scanner or mobile apps like:

• Barcode to PC
• Scan to Spreadsheet (Android/iOS)
• Inventory Droid (Android)

Each time you scan, it matches the code in your Excel sheet. Voilà—instant inventory updates.

Method 2: Use a Free or Low-Cost Barcode Inventory App

If Excel feels too manual, there are great tools designed for small businesses—many with free plans.

🔍 Top Barcode Inventory Tools (Free & Easy)

1. Sortly

• Free for small teams (100 entries/month)
• Visual inventory with barcode scanning
• iOS + Android + Web
• Great UI and tagging

2. Stockpile by Canvus

• 100% Free
• Web-based
• Designed for small shops
• Tracks items, vendors, locations, and users

3. inFlow Inventory

• Cloud & Windows version
• 14-day free trial, low-cost monthly plan
• Barcode generation, printing, and scanning
• Works well with Brother/Dymo label printers

4. Zoho Inventory

• Free plan for up to 50 orders/month
• Ideal for small eCommerce shops
• Integrates with Shopify, Etsy, Amazon

5. QR Inventory

• Mobile-first
• Ideal for field service or repair shops
• Free trial, low-cost pricing tiers
• Barcode and QR code support

Method 3: Full DIY Barcode Inventory System

Prefer to keep everything local, private, and offline? Here's how to roll your own system:

1. Create a numbered SKU system (e.g., P001, P002, etc.)
2. Use a barcode generator website like barcode.tec-it.com
3. Download barcodes as PNG or PDF
4. Print them using your Brother label printer
5. Track scanned SKUs in Excel or Google Sheets
6. Use a barcode scanner to update stock on check-in/out

This gives you full control—perfect for non-cloud or offline workflows.

Real-Life Example: Barcode Setup for a Phone Repair Shop

Let's walk through how a cell phone repair shop might use this.

Business:

• ~40 phones in repair
• ~100 parts (screens, batteries, cables)

Goal:

• Track each part and phone by barcode
• Know when items were used, restocked, or sold
• Reduce mix-ups during repairs

Setup:

• Laser printer or Brother QL-700 label printer
• Code39 barcode font installed
• Excel spreadsheet with SKUs: PH001, PT045, etc.
• Barcode printed on 1x2" labels
• Each item gets tagged
• Barcode scanner updates inventory in Excel with time stamps

Result: Real-time awareness of stock, less time spent checking, fewer repair mix-ups.

Tips for Label Printing (Brother & Avery)

If you're printing barcodes at home, here's how to make it easier:

🖨 Use Pre-Sized Templates

• For Brother: Use their P-touch Editor or Brother iPrint&Label mobile app.
• For Avery: Use Avery's free Design & Print tool online.

🧷 Best Label Sizes for Small Items:

• 1" x 2 5/8" – Avery 5160
• 1.1" x 3.5" – Brother 29mm x 90mm
• 1.4" x 3.5" – Dymo 30336

🧪 Test Print First

Always print a test page before doing a full run to make sure alignment and scan quality are correct.

Barcode Scanners: Worth the Upgrade?

You don't need to buy one immediately, but here's why you eventually should:

Benefits of a Dedicated Barcode Scanner:

• Faster scans than mobile apps
• No typing errors
• Plug-and-play with Excel or inventory tools

Recommended Scanners for Small Shops:

• NADAMOO Wireless Barcode Scanner – ~$30, plug and play
• TaoTronics USB Scanner – Budget-friendly, reliable
• Symbol LS2208 – A bit pricier, very durable

If you're scanning 20+ items a day, it's worth every penny.

Common Questions Answered

❓Can I use QR codes instead of barcodes?

Yes, some apps (like QR Inventory) support QR codes, which store more data and are easier to scan with phones.

❓Is this system good for retail?

For small-volume retail, yes. But if you're scaling fast, switch to something more robust like Shopify POS + inventory.

❓What if my inventory is mostly one-of-a-kind?

Still worth tracking! Use barcodes for repair orders, customer jobs, or return tracking—not just SKUs.

❓How do I update quantities?

Either scan and manually update Excel, or use a mobile app that automatically logs stock movement.

Final Thoughts: Keep It Simple, Track Everything

You don't need a giant warehouse to benefit from inventory tracking. Even for a single-location shop with 50 to 200 items, a good barcode system saves:

• Time (no more digging through bins)
• Money (no more duplicate orders)
• Stress (no more mix-ups)

Start with what you have. Your home printer and a spreadsheet can get you 80% of the way there. Once you grow, it's easy to upgrade.

Need help picking the right inventory app or scanner? Excel Label Generator makes it easy to create professional barcode labels from any Excel data—no technical knowledge required.