Short answer: The one habit Mark wishes he had started earlier is always keeping reserves: pay yourself first, rather than waiting until you “make enough” to save. In his storage businesses, setting aside a small amount per square foot every month meant capital repairs and insurance deductibles never had to come out of operating cash flow.
Reserves in practice #
At his facilities, Mark set aside a monthly reserve based on a small per-square-foot amount each year. He wishes he had been as disciplined in his other businesses and his personal finances.
Why it matters: a story Mark shares #
An owner Mark mentors had new climate-controlled buildings leak in the first big rain because the roofs weren’t installed to spec. While pursuing the contractor and installer, he used his reserves to repair the roofs right away, so the project wouldn’t lose time getting to market. Without reserves, he would have had to wait for the dispute to play out.
Reserves give you options when problems hit and let you act on opportunities. How much to hold depends on your own situation; talk with your financial advisor.
Related answers #
- What are the biggest mistakes Mark Helm has made in self-storage, and what did he learn?
- Why is self-storage considered resilient, and what challenges does it face now?
- How does mindset affect success in the self-storage business?
Source: Mark’s post The One Habit I Wish I Had Started Early in My Career
