Small businesses are facing more challenges than ever. High commercial real estate rates, explosive and unpredictable inventory growth, and the need to store products and equipment that are not worth leasing a full warehouse for to store, all present unique challenges to today’s small business owner. Already stretched thin with limited resources, the small business owner must weigh the expense of extra square feet against the value of less-than-ideal space.
With increasing numbers of companies choosing flexible storage to alleviate pressures without incurring the fixed costs of a long-term let of commercial premises, Store and Secure continues to expand its operations.
The economics behind the shift
With the cost of commercial lease rates in regional centres on the rise, businesses are turning to alternative storage solutions on a short-term basis. This could be for a season or for a particular project where tools or equipment need to be stored. Small businesses are not keen to get into a 12-month lease on a property they will only be using occasionally.
For the e-commerce merchant, finding storage space for seasonal goods such as holiday items that would otherwise sit idle for 11 months of the year can be a welcome boon.
Commercial leases are typically written under the assumption that your use of a space will remain constant and unchanging. In addition to the rental cost, the tenant typically is responsible for the cost of utilities, insurance and maintenance of the space. This can add up quickly.
Unlike traditional storage space you only pay for it as you require it. So whether you need more space for a few days or a few months you only pay for it as you require it and there are no capital charges whatsoever. We think this is far more realistic than traditional commercial leases that require you to pay a deposit or bond. Small businesses do not want to invest money in security guards as they can utilise their investment elsewhere in the business.
How different business types are adapting
Tradies have been among the early adopters of our storage solutions for their tradie sheds, workshop organisation and seasonal material storage. Instead of paying to keep a large workshop open all seasons of the year, they store less frequently used tools and materials in a high capacity storage in a smaller, flexible space.
This option is useful for bulk equipment which is not appropriate for fixed storage in a cabinet or housing due to cost. An example might be the storage of scaffolding boards and a plasterer’s mixing kit in a domestic garage or a garden store between residential projects. Another example would be the storage of electrician’s cable reels and equipment for domestic work in a secure lockup between commercial jobs.
While e-commerce businesses face somewhat different challenges to traditional retailers, many of the solutions are similar. Online retailers tend to start life at home, gradually filling the available space, before outgrowing the home and moving on to more spacious rental premises. While such commercial accommodation is still often the first choice, in recent years rental storage facilities, particularly those offering business storage in Bunbury, have emerged as a cost-effective intermediate solution.
There are a large number of document-heavy businesses that have used our self storage facilities for storage of documents and materials. For example, accountancy practices, law firms, management consultancies, and surveying practices who generate high volumes of paper documents which are required to be stored for future reference but are rarely if ever retrieved. Professional service firms that require storage of client related documents, materials, samples, or equipment which is required occasionally. By storing documentation, files and equipment off site with us, businesses are able to maximise the use of their premises and workspaces for generating income rather than storing unnecessary items.
See also: The Role of Technology in Business Growth
The operational advantages
It is true that the initial cost of a store is a consideration; however the flexibility offered by storage space means that you can access your storage hours a day i.e. outside of the usual commercial building hours. This makes storage particularly suitable for businesses operating at all times of the day or night, or even those operating in different time zones.
security facilities will be located in purpose built storage facilities, which are likely to be state of the art and monitored 24/7 with restricted access as appropriate. These facilities are likely to be better than many business premises and for small businesses it is likely that their valuable goods and talking points would be safer with us than they would be in their own premises.
We take care of everything so that you don’t have to worry about the day to day administrative tasks associated with owning a building. Gone are the days of property management, liaising with utilities companies and chasing after maintenance staff to ensure capital works are completed on time. We give you back control over your business by streamlining all of your capital works requirements and ensuring that administrative time is used more productively.
Making the transition work
It is important to consider how you will store your flexibile storage displays before you purchase them. Having a good labelling and storage system in place is key to making sure that your storage system does not become useless. Having your goods stored away properly is no help if they cannot be located quickly enough to prevent unnecessary retrieval costs.
When choosing where to store your dry bulk storage goods, the location will depend on several factors. If you have stored goods that you frequently use in your production process, proximity to your point of use will be critical. Goods that are stored seasonally or for long term archives can be stored in a location that is further away.
Looking at the broader picture
Traditionally, small businesses have opted for bulk storage shelves or metal shelving for their storage needs. However, an increase in the use of flexible storage means that the way storage is referred to is not the only thing that is changing. There is a shift in the way that small businesses are doing business and these changes to operations, including how inventory is managed, how space is used and the overall workflow of a business, are what are driving the use of this type of storage.
As the cost of commercial property continues to rise and businesses become more flexible, this trend is set to intensify. By optimising their property operations today, businesses can reap far more than savings – we explain all.
