The value of your “facility” is what a ready, willing, and able buyer will pay for the income stream.
The value of your “company” is a function of how easy it is for a new owner to step into your position and run and grow your business.
The easiest way for this to happen is to create a position called Chief Operating Officer (COO), and document every aspect involved in the operations of your facilities and your company.
As I am exploring having all the structures in place for the anticipated growth we are getting ready for starting fourth quarter of 2015, we are exploring all the roles and accountabilities of a self-storage company. Every company has three main roles that have to be accounted for, (1) Financial Role, (2) marketing role, and (3) operations. Having an effective handle on operations has many benefits beyond just adding value to your company.
I suggest that if you document every aspect of your facility operations, from opening, to closing, to auctions and everything in between, you achieve the following:
1. You become a systems oriented company rather than a people oriented company.
• I love people. I love our employees. They are awesome. However, as a business owner, if you become too dependent on a person, a manager, you are in a dangerous position. I know, I have done that before. If how well your company or facility does is dependent on one person, or even a team, you are in trouble. What happens when they quite, they retire, they just don’t feel up to par?
• Create structures and systems that are documented so anyone can step into that role and know exactly what to do. This does not take away from the quality and important role your employees make, in fact, it now makes it easier for them because they know what is expected. They now can also train anyone as to what is expected and how the job is done.
2. Hiring the right people at the facility level.
• If every, and I mean every aspect of running a facility is documented in an Operations Manual, and the Chief Operating Officer is, or is coordinating with the CEO in creating a culture; the odds of the right person being hired that is a fit the needed skill sets and a culture match, increase dramatically.
• If your focus is on “customer service” that will be documented in your operations manual and systems will be there to help every employee provide it. No matter what the focus, this will insure everyone’s eye is on it, and you hire into it.
3. Improve the quality of your customer service.
• What do customers want? Why do you go to a franchised restaurant in a new city? Consistency. You know what to expect. Approaching the operations side of your business form this angle creates consistency from employee to employee and facility to facility. Customers love that and will repay you with continued business and referrals.
All of the above increases the value of your company. So if it is you functioning as the COO, or if you are hiring someone else to fill that role, make sure the first order of business is to document every aspect of running your business. That will be the blueprint for your self-storage growth. Your future employees and customers will thank you.
