A friend of mine was telling me about an experiment that was conducted in the 1950’s using rats the other day. I did some research and was absolutely fascinated from what I learned from it.
Let me share it with you and some of the takeaways I think may be applicable for us in the self storage business.
Dr. Curt Paul Richter’s Experiment
In the 1950’s, psychologist Dr. Curt Paul Richter conducted an experiment where rats were placed in jars of water to test how long they could swim before giving up.
I know this sounds sadistic, but it is a fascinating study. Richter placed rats in water. Most swam for only for about 15 minutes, before giving up and expiring.
Next, he introduced rescue and hope.
Richter repeated the experiment but right before the rats were about to expire, about 13 to 14 minutes later, he pulled them out. He dried them, held them for a moment, and allowed them to recover. He then repeated this about five or six times.
He created the expectations of being rescued.
Now (don’t read ahead), he put them back into the water, and didn’t rescue. How long do you think they could go before expiring? Write down your answer.
The Result
Most people I have asked indicate they think the rats could last longer than before. How much longer?
10%? 20% longer? How much longer once the expectations of rescue and hope are present?
I think you may be surprised to learn it was hours. Hours longer.
Many hours longer!
In some cases, over 60 hours. That is over 100% times longer than before.
What We In The Self Storage Business Can Learn From The Experiment
As you can see, expectations alter what is possible.
Your mindset is the most important asset you have for success in any business, but especially self-storage today.
Storage entrepreneurs often quit when construction costs rise, banks stall, or lease-up takes longer. Richter showed that having a reason to believe you will succeed dramatically increases your resilience.
Examples
Here are some examples of what specifically we in the self storage business today can take away from this experiment.
- The person who believes “I can solve this” outlasts the one who thinks “I’m drowning.”Application:
- Keep a visible scoreboard of wins, funding secured, unit mixes finalized, milestones met.
- Celebrate progress with your team; it builds belief and endurance through setbacks.
- The Right Environment Turns Panic Into Performance.Rats without structure expired quickly; the ones with predictable intervention endured.
Application:
Put structures in place so you and your team never feel like you’re “in the water alone.” That is exactly why the Inner Circle was created for example.
- Vision Is a Form of HopeRichter proved if a living being can imagine survival, they will fight longer. Entrepreneurs who hold a clear vision of the finish line push through the challenges.
Application:
- If you envision lease-up at 85% you can stick through the slow months better.
- If you see your projected NOI 18 months out then construction cost overruns are experienced as less devastating.
- If you imagine selling to a REIT you just may document and systemize your operations from day one.
Don’t Assume Your Current Limits Are Real
The rats physical ability didn’t change, only their belief did. Entrepreneurs vastly underestimate their true capacity when stressed.
Application:
Create the vision and expectations of…
- Raising capital even in a tight market
- You can develop a project even with
- You can lease up in a tough market with strong marketing.
- You can pivot to conversions or expansions instead of ground-up if needed
These are just some of my thoughts. I would be interested to know your takeaways from what you can see from the results of this experiment.
