So, here we are at the final Episode in a series which was a deep dive into an article I wrote for Inside Self-Storage earlier this year.
Today, it is a different world than it was five years or so before. Getting in the self-storage business requires some skill sets that were not required before.
Important Skill Sets To Have
If you want to successfully get in or grow a self-storage business, construction knowledge is now a part of it in a way it was not required before. This is because it is the best way to add value to a project, bringing on more rental square footage at a lower cost. The last skill I mentioned in the article was to Oversee and schedule subcontractors.
Now as stated before, it may not be you that develops and deploys this skill set, but it needs to be on your team. Up until this point, as we have been discussing the construction component, it has been rather academic. We have been talking numbers, spaces, and procedures. But like most things in life, including the self-storage business, your people skills and ability to connect and relate to real human beings it important. This business seems to attract many people who do not relate to themselves as “a people person”, myself included. I am rigorously coached by my wife to be more outgoing and connect with people, very rigorously at times (around the holidays). And as I dove head first into the world of construction, and began working directly with subcontractors, it was a whole new dimension in having to relate.
Pros and Cons of Self Storage
One of the main benefits of self-storage for us is the low cost of construction in relation to other types of buildings. One of the main drawbacks in working with contractors and subcontractors is the low cost of construction in relation to other types of buildings. I learned early on that it is important to be able to relate and be the job that a subcontractor will prioritize. If you are using a contractor or construction manager to handle the subcontractor relations and scheduling, I strongly recommend attending a meeting with them as they meet and review subcontractor proposals. We look for how well the construction manager relates to the people. Are they respectful? Can they talk and relate, or is it just strictly business?
Speed to market is critical, getting a good bid from each trade is critical, but so is having them show up in a timely manner and finish the job. If we beat the contractors or subcontractors up so much on the price, I have learned the hard way, our job gets a lower priority. Also paying them in a timely manner.
On one job we had, the draw process was formidable. It was like giving birth each month. I had an erector leave the job until we “finalized the draw”. They went to another job that was larger and more profitable. Our team either had to wait six weeks or get someone else. So, we hired another firm to finish, but the reality is, it took way longer than the six weeks. We ended up bringing that space on almost 6 months behind the time we thought it would start generating income.
Final Thoughts
My belief is that all business are people businesses. Your ability to be authentic, get where other people are coming from, the ability to put others needs before your own, are all an important part of being successful. Ultimately, your business only exists if it is in service of others. If you can satisfy a need people have better than your competitors, you can make a profit. The people skills it takes to do this are the same ones it takes to create your new or expanded facility.
No way around it.
If you are moving into your first expansion, make sure you or someone on your team accountable for the construction management and construction timeline realize this. You develop and deploy these skill sets today as you make the value-add plays as you take Mom & Pop facilities and bring them up to today’s standards, you will create real wealth and more importantly, experience fulfillment in the best business in the world.
