Summary of 10 Crucial Tips When Running a Self Storage Business
Main Financial Strategies and Business Trends:
- Occupancy and Revenue Focus:
- Prioritize both occupancy and revenue, but recognize that revenue can be more important once a certain occupancy level is reached.
- Avoid sacrificing revenue for the sake of occupancy; adjust rates as occupancy increases to maximize income.
- Revenue Management:
- Focus on driving revenue rather than merely cutting expenses. Pulling the revenue lever is emphasized as a more effective strategy for growth.
- Continuous Improvement:
- Maintain urgency and continue to push for growth, regardless of market conditions. Use prosperous times to double down on efforts.
- Data-Driven Decisions:
- Make informed decisions based on data rather than assumptions to ensure effective management and operations.
- Inverted Thinking Framework:
- Utilize inverted thinking to identify potential pitfalls in business strategies by considering what actions could lead to failure and then inverting those ideas to find successful strategies.
- Maximize Existing Strengths:
- Instead of always seeking new initiatives, focus on enhancing what is already working well within the business.
- Operational Improvements:
- Prioritize improving processes and procedures over immediate physical upgrades to facilities. Focus on operational efficiency first to generate revenue for later enhancements.
- Employee Management:
- Regularly communicate expectations and track performance metrics. Understand that employees may forget or overlook priorities, so consistent oversight is necessary.
- Risk Management:
- Avoid single points of failure in operations by employing a planning framework (PACE: Primary, Alternate, Contingency, Emergency) to prepare for various scenarios.
- Networking and Collaboration:
- Emphasize the importance of connecting with other industry professionals for knowledge sharing and support. Building a network can provide reassurance and insights into market trends.
Methodology or Step-by-Step Guide:
- Revenue Management Steps:
- Monitor occupancy rates and adjust pricing accordingly.
- Focus on driving revenues rather than just cutting costs.
- Inverted Thinking Framework:
- Identify actions that could lead to business failure.
- Invert these actions to discover strategies for success.
- PACE Planning Framework:
- Define the primary course of action.
- Outline alternate and contingency plans.
- Prepare an emergency action plan.
Presenters/Sources:
- Connor and AJ (hosts of the Self Storage Income podcast)
- Munger and Hormozi (industry professionals for frameworks and strategies discussed)
Notable Quotes
— 00:05 — « When things are great don't let off the gas, pedal to the metal, all the fuel on the fire, keep the urgency, keep the hunger and keep pushing forward. »
— 01:50 — « There are very rarely absolutes in business. »
— 07:39 — « When times are great, it's time to double down. »
— 19:51 — « What's not being managed or what's not being tracked isn't getting done. »
— 23:52 — « Do not be getting bottlenecked; don't have single points of failure. They are the worst thing in the world and they will destroy you and your company in a snap of a finger. »
Category
Business and Finance