After returning from the recent ISS 2022 Expo in Las Vegas, I am more convinced that effective self storage company leaders who are moving the needle in their companies and the industry are great storytellers.
I know with every fiber in my being that it does not matter how sophisticated someone is or thinks they are; they will take no action you suggest unless they can visualize themselves inside a story of why they should.
Great leaders know that.
Effective leaders know that.
It does not matter at what level of a company we are discussing. Whether it’s hiring employees, finding investors, or getting a loan for a self storage project, at any level, your success in motivating people to take action is a direct function of how well you can tell a story.
I think as a species, we evolved in small communities. Tribes, if you will. I can see our ancient ancestors sitting around campfires at night, weaving stories and myths to explain the world they found themselves in and creating hope for a safer and more prosperous future.
Today, the ancestors of those tribes sit around conference tables or use cell phones or Zoom calls doing the same thing. The language is different, the stories are different, but the goal is the same, to create relatedness, explain someone’s vision, and generate a call to action.
How effective you are at this skill will determine how fast and how far you can go, in my opinion.
What Makes A Compelling Story?
At the end of the day, what I think makes a compelling story, a story that has people take action, is the ability of the storyteller to inspire.
So, as a Leader, you are always Beginning With The End in Mind, and the end or goal of all “stories” in business, is to inspire people to take action.
Let’s talk about how to get there.
Purpose
Every story has a purpose.
Know what that purpose is. In essence, you are taking a piece of your, someone else, or some situation in the past and re-contextualizing it to emphasize a point.
Do not add any additional information that is not relevant to the point you are trying to emphasize. In other words, don’t go down any irrelevant rabbit holes.
For example, when I raise money with individual investors, I in essence, tell four stories.
- The self storage story.
- My story in the self storage story.
- The story of the deal in front of the investor.
- The investor’s potential story in this deal.
I have a basic outline of where each story starts and ends, but I adjust it according to the audience. For example, if the investor I am talking to does not know much about the self storage industry, I will not leave story one until I see they get it.
I may talk about the benefits of self storage over all other asset classes, the history, how self storage did during the recession, etc. But once I get the person is saying something to themselves like, “wow, I wonder why I didn’t know about this before,” I stop and move to the next space or story in the presentation.
So, in essence, the purpose of the story about self storage is to have the person I am talking to get self storage is the absolute best investment vehicle there is. Once that is reached, I shut up about it.
The other skill that is very much needed is not making any story about yourself, which can be hard for us. We tend to want to be liked, so we make stories about ourselves so people will like us. Skilled storytellers will use themselves in a story only enough to create a space where the audience can relate to what you are saying and say either “me too” or “I want what he or she has.”
You do not want to be above the audience or less than the audience. Yes, you may have more knowledge about something, but they know more about other things than you. You want them to identify and either want what you have (and believe it is attainable for them), or say I am just like that guy.
If you are in stories, they are not about you. Just enough you to fulfill on the purpose of the story.
Pain or Lack
Your story, or your combined stories weaved together, are designed to have the audience at some point in the presentation get either what is missing in their lives that would help them or have them experience some pain or lack that is present for them.
Let’s take working with investors because I have done so much of it. During the second story, and before I get to the deal, the audience will get that it is not easy finding safe assets in real estate that offer above-market potential returns with the least chance of something interrupting their cash flow.
I will weave in the stories facts about how self storage is the lowest foreclosed on asset class there is, and how there are few capital improvements are needed. How we spent $60,000 on a sign one month at a facility, and because there are so few capital improvements in self storage, our .14 cent per square foot per year reserve fund paid our portion of the sign, and the investors in that deal didn’t miss a cent in distributions.
Stories within stories address the fears or pain the audience is experiencing or could experience (no matter if they are aware of it or not).
Feature or Fact, Then Story
A good storyteller will state a fact, then immediately follow it with a story or example of how that fact or feature will benefit the audience.
Like the above story of how there are few capital expenses in the business and a small reserve fund usually covers them.
Feature .. story.
Inspiring Future
All good storytellers will create a future in their stories, a future that inspires the audience and will want to make them participate in that future.
So when I am talking to a lender, I will go to whatever degree I need. I go through the same spaces as I outlined above with investors.
The purpose is different. The stories may vary somewhat. But, in essence, they are the same.
Purpose of story a) – Self storage is a safe asset class to loan on.
Purpose of story b) – Our team and I are knowledgeable, experienced, trustworthy sponsors.
Purpose of story c) – This deal has a strategy, is thought out, and meets your institution’s benchmark thresholds like debt coverage ratios, etc.
Purpose of story d) – See your institution as our partners in this transaction.
A different context and hard to compare to talking to a lender, but Martin Luther King’s I Have a Dream speech is the best example of an inspiring future call us forth I have ever heard. Whenever I listen to it, I see myself in that future and am motivated to work towards it.
When creating a story in my business life, I want the same thing. The audience to see a compelling future with the game I am up to and want to play with me in that future.
One last thing, be specific about what the action is. With an investor, here is how we collect the funds. With a lender, here is the interest rate and terms we are requesting. With a website, click the red button below and register.
Become a great storyteller and be inspiring, and you will create a great future in this business where all kinds of people will want to participate with you.
