One of the most expensive resources to acquire for any business is land. If you are looking for a huge complex or plot for your business, you will not only have to spend hundreds of thousands of dollars for acquiring it but will also have to spend more to develop and tailor it to your needs. The running cost is also high which means that your profit is decreased to a bare minimum level. These high costs are what discourage many small business owners from expanding their business.
Warehouses are important as developing your own will take hundreds and thousands of dollars and renting space is equally difficult if you do not have ample experience. Let us look at the three most important things that you must keep in mind before getting any warehouse space.
Access Your Needs
The most important thing is to consider the business risk. Ask what you’re going to do with the warehouse space. Are you sure that you need a lot of space for many years? If the answer is no or you are not sure, then do not make the mistake of renting a large piece of land and developing it to be a warehouse. This will not only take a lot of time and resources but will also incur a lot of running costs. It is recommended that small business owners always rent space with existing warehouses so they can start bringing their cargo in the next day. Also visit the warehouse in person and see if it is suitable for your cargo. For example if you’re going to store something that is sensitive to certain level of humidity or needs a certain storage temperature, choosing the wrong space can cause you a loss that might run in millions. Also check for factors like sun light, water penetration and ventilation of the warehouse.
Fixed Storage vs. Flexible Storage
With fixed storage, you rent a fixed area of warehouse space, regardless of whether or not you choose to fully utilize it. On the other hand, flexible storage allows you to expand or contract your storage area at any time. The latter option is always more suitable for small businesses as you never know when you might strike gold and need thousands of additional square feet of storage space, or have a downturn which results in an unforeseen reduction in required storage space. This always saves money in the long run because you focus on actual problems rather than thinking about the money you’re paying for an empty lot.
Nationwide Storage and Delivery Network
If you have a small business and you plan to scale it, it is better that you choose a warehouse company with a nationwide network and also handles delivery and transfer of cargo. By choosing such a provider, you will not have to worry about expanding and finding a new provider at the new location. Moreover, warehouse companies that have delivery services generally tend to be more efficient as you can avoid various permits to get your personal loading vehicles and trucks inside the warehouse for handling cargo.
These three pointers are of prime importance and must be kept it mind whenever you are planning to get a warehouse space for your small business.
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