As I’ve worked with successful people who start a self storage business, I notice they all are “Effective at the Right Task.”
This is the second trait, habit, or way of navigating life that is required to be successful at getting into the self storage business.
Last week, we discussed the first habit. If you haven’t read that, please click here, and read the post or watch the video first.
It’s an easy thing to do, to stay busy and think we are making progress. But unless you are busy doing the right things, little progress is being made.
You must have the ability to see the entire process and then know where you are in the process. (“Begin With the End in Mind” – Seven Habits of Highly Effective People)
I have seen lots of people looking for the deals to buy before they have their business strategy, or even the ability to finance these deals. I try to slow them down and focus on what I see as the next step. But chasing the deals is way more fun.
Then they get a deal, lose it because they couldn’t get the financing or don’t have all their funds in place, and go back to flipping houses.
People who methodically go through the steps of starting a self storage business have the ability to focus on and put energy into the next right thing to do.
In general, here is the process for starting a self storage business:
- Design your business strategy:
- Answers who, what, where, WHY, and for about how long.
- Money (Equity Piece)
- My money or investor money
- If Investor money, what is the offering?
- Financing (Debt Piece)
- Best options depending on business strategy
- Can I get a loan or do I need partners?
- Analyzing Opportunities
- Can I analyze existing to new construction self storage opportunities?
- Deal Flow
- Do I have structures in place and relationships in place to see good deal flow?
- Negotiations
- Do I have a team in place of lawyers, engineers (if needed), storage fabricators, construction support needed, etc.?
- Due Diligence
- Inspectors?
- Lawyers?
- Construction support as needed?
- Closing
- Putting Project Into service
In general, these are the steps one goes through on their self storage journey. To be effective, it’s important to focus on the right thing at the right time.
What I have noticed in myself and others is that we tend to focus on what we are good at.
For many, it is figuring out the deal. But if you don’t have your money or financing strategy in place, when you control the deal, you can’t move fast enough to close.
Or you get your strategy in place, but think you are “bad with numbers.” Then you spend time doing everything but finding the “right deal” because you can’t see it when you find it. By the time you figure it out, the opportunity is under contract.
“Oh well, next time”.
It’s important to be only one or two steps ahead of where you are now.
I found myself at the last ISS (Inside Self Storage) Convention, hoping that some of the people I worked with were not going to hear about how to manage a facility. That that is four or five steps ahead of where they are, and they don’t need to learn that now.
If I saw them I would suggest they meet brokers and lenders now, and to focus on deal flow and financing.
There is a real art to seeing the whole, but focusing on the right part.
Perhaps it is easier for me to “Begin with the End in Mind” because I have lived with The Seven Habit of Highly Effective People most of my professional life as the “go-to” textbook.
Perhaps not.
I just know that my goal as a coach is to know where someone is in the process and keep their focus on the next few steps.
It is important, for example, to know how to analyze a deal so you can present one to investors and lenders.
These steps aren’t entirely independent of each other.
But if you need to be focused on how you are structuring a company to raise money for self storage, you don’t need to worry about who is going to do your inspections or construction.
Trying to figure out who will sign on the loan with you after you have the project under contract and in the due diligence period is a problem I most likely can’t help you solve.
To be effective at getting in the self storage business, it is critical to focus on the next right thing to do.
So how do you develop this skill?
Know the process, know where you are in the process, and work on no more than two to three chronological steps at a time.
Here are the steps, or phases, again of getting in the self storage business.
- Design your business strategy:
- Answers who, what, where, WHY, and for about how long.
- Money (Equity Piece)
- My money or investor money
- If Investor money, what is the offering?
- Financing (Debt Piece)
- Best options depending on business strategy
- Can I get a loan or do I need partners?
- Analyzing Opportunities
- Can I analyze existing to new construction self storage opportunities?
- Deal Flow
- Do I have structures in place and relationships in place to see good deal flow?
- Negotiations
- Do I have a team in place of lawyers, engineers (if needed), storage fabricators, construction support needed, etc.?
- Due Diligence
- Inspectors?
- Lawyers?
- Construction support as needed?
- Closing
- Putting Project Into service
Figure out where you are in the process now.
Next, look back and see what you may have skipped.
If there is a step you skipped, go back now and complete it.
Yes, that even means your business strategy.
“But I already have a facility under contract,” you may say.
OK, but much of how and what you do as you put the facility into service will be a function of your business strategy.
In my opinion, everything begins and ends with your strategy.
As I have said before, my life and self storage business transformed when I got clear on what my strategy was.
So here is your action step this week: Get clear on where you are in the process. If you missed or didn’t complete a step prior to where you are now, go back and complete it.
Next week we will take a look at the third habit, is that will serve you in getting in the self storage business: How To Generate Authentic Self Confidence.
Believe me please, these are more important than knowing what to do or how to analyze. I am convinced these habits are the key to success as you get in and grow your self storage business and create the “True Wealth” this business offers.
