To be successful in anything, but especially self storage today, it is not a function of what you know.
Yes, you have to know a lot of things, but knowing them guarantees nothing. The colossal failures in life know quite a lot.
If you know nothing about self storage when you start but have the mindsets we are discussing in this series called What It Takes To Succeed In Self Storage Today, my money is on you.
Last week, we discussed the first mindset called the “Can Dot It” Mindset (Blog and Video). Today, let us look at the next way of being, or way of thinking I have seen people have who are successful at getting in self storage have today.
It involves the ability to take action.
In many cases, the ability to move forward, or speed of implementation is what creates a winner.
Reid Hoffman, founder of LinkedIn, once said, “If you aren’t embarrassed by the first version of your product, you shipped too late.”
In self storage, we are not shipping online products, but we do have to take action to control property because if we don’t, someone else will.
Overwhelm
I know there are a lot of spaces involved in putting a self storage project in service — a lot.
Here is what else I know, you don’t have to have everything figured out to take action.
Here is something else I know, even if you do have ‘everything figured out,’ it will go down differently than you planned.
Some other great mind once said, “The key to success is how well you implement plan B.”
Now I am not advocating reckless action, but what I see stops people is not that. It is more in the world of “I don’t have it all figured out yet…” mindset that stops people.
- My investors haven’t fully committed.
- I don’t have my loan lined up yet.
- I am not sure how I will inspect the property yet.
- I am waiting for a layout of the expansion to make sure I can get the extra square feet I need.
All spaces you need to address, but waiting to take action, in most cases, will ensure you are never in the self storage business.
Often it is a fear of making a mistake.
Guess what, mistakes are guaranteed. You will make mistakes. In some cases, lots of them.
The goal is not to make a fatal mistake.
The number one fatal mistake is not taking action.
Why Some People Can Take Action And Others Are Slow
If you go back to the previous episode, you can see that many people have or are developing a belief in themselves. A belief that creates a view of the world something like, “If someone else can get in the self storage business, so can I.”
“I don’t necessarily know all I need to know at this moment, but I know I can by when I need to.”
“I may not have all my investment raised at this moment, but I know I can if this turns out to be a good project.”
“I don’t have the construction budget complete, but I can estimate, and I know before the due diligence is over, I can find someone to finish it.”
Or most importantly, in many cases, “I am not sure if this will be a good project until all my numbers come in, but I know I can get out of it if it isn’t.”
I know there are many ways a project can fail and not be the right one.
But odds are it will work. If you have gotten to the point that a preliminary analysis looks good, you achieve your business plan, and you haven’t stretched numbers or made any pie in the sky assumptions, odds are it is a good deal.
Perhaps not a home run, but a deal that meets your objectives.
Take action and control the property, given you have a strategy to move towards completion.
You may not have all the pieces in place, but you have a strategy to get there.
This is where I see so many people stopped.
Take Action
In most cases, taking action at this point involves one or two more zeroes in a deal than people have ever done.
I know it can be scary. I am always nervous and scared.
But taking no action at the point after seeing a facility, even with having a favorable preliminary analysis, ensures you won’t be in the self storage business.
Most people I work with don’t have everything figured out when they write an LOI on a project or when the contract is signed.
I don’t usually have everything figured out at that point, either.
And I am very sure if you are not taking action in this part of your life, there are other areas of your life where this is also an issue.
When I am talking with someone to see if we are going to work together in a coaching relationship, mostly what I am listening for is this; “is this someone who takes action.”
I make mistakes in this sometimes, but developing this mindset is possible.
In my world, there is nothing to be ashamed of from walking away from a deal because you made a mistake, or the property didn’t turn out like you thought.
I remember once we had a portfolio under contract. In the due diligence period, we discovered there were massively more drainage issues and deferred maintenance than I had budgeted in the preliminary budget.
I had to tell the investors we were not going to close on the project after I spent a lot of time, energy, and money telling them why we should buy it.
I thought they would be upset and mad, but they were glad we could walk away from a deal that didn’t turn out to meet the assumptions.
They thanked us for not being people who rubber-stamp the deal they found.
I was floored. But they were right. Better to lose $20,000 or so in due diligence expense than 100’s of thousands in a deal that didn’t turn out.
But we would have never been there if we hadn’t taken action and controlled the project.
Out of the last ten deals we put under contract, we didn’t close on two of them. These are the same types of averages the people I work with have.
But everyone I have worked with who is now in the self storage business had one thing in common; they took action even when they didn’t have everything figured out.
In my opinion, if you do not develop this mindset, self storage will be something you almost got into.
Start Today
Today is the day to take some action to forward your goal of being in the self storage business.
If every day you are doing something to move the ball down the court, when the day comes to write that LOI or contract, it becomes easier because you are taking action every day.
Practice this in all areas of your life, and sooner than you think, you will be working towards the closing of your first or next self storage project.
More importantly, you will know yourself as someone who does what they set out to do. It is OK to be inspired by who you are.
I recommend it.
