Tips for Hiring a Third-Party Management Company for Your Self-Storage Business
The popularity of the self-storage industry has grown exponentially over the decades. People need storage space since they typically own too many things and the top self-storage companies offer flexible storage solutions. It is a perfect match made in heaven.
As the owner of a self-storage company, you probably need all the help you can get. If you want to operate your business efficiently and turn it into one of the largest self-storage companies in the US, you need to invest a lot of effort.
Sure, there is some self-storage who like to roll up their sleeves and work near the frontline. But this is not a feasible approach especially if you’re thinking of expanding your business.
You might be new to the industry, going through a growth plateau or simply have other roles to fulfil. But whatever the reason is, hiring a third-party management company can make your workload lighter. It can even help you keep up and even outrun your competitors.
So let’s explore some tips, benefits and drawbacks of hiring a third-party management company.
Here are Some Proven Tips for Hiring a Third-Party Management Company
1. Consider the Cost
While hiring a third-party management company, you need to consider the cost first. But don’t let it be a deciding factor.
Instead, you can further consider if you can bear the cost of not hiring them. This could mean missing out on the chance to be among the best storage companies in Henderson.
2. Do Your Research
You should also take time out to study the management company and its other projects. This will give you a good understanding of their management style and work culture.
Ultimately, you should look for a company that is proficient in sales, marketing, training, operations and customer service.
3. Hire One That Increases Your Value
You should also consider what the management company can provide that you can’t on your own. They should have the skills and strategies to increase your value as one of the best self-storage companies.
So make sure to pick a third-party company that increases your revenue and value. The results should be able to surpass what it cost you to hire them.
4. Pick One That Shares Your Goals
Do you want to be among the top self-storage companies? If yes, then you’ll need to establish a partnership with the management company where trust and respect are mutual.
So don’t forget to prioritise transparency and cooperation while looking for one. You should never have to wrestle with your new partner for control over your company.
Advantages and Disadvantages of Hiring a Third-Party Management Company
Advantages
Offers Many Services
The great thing about management companies is that they offer a full range of services. These include overseeing daily operations to formulating an entire management plan. You can leverage these to transform your business into one of the largest self-storage companies in US.
Gives You More Free Time
With the third-party managing your business, you are free to focus on your other ventures. It takes a lot of time, effort and experience to run a self-storage in USA. At the end of the day, you’ll get better results if you get a helping hand from the experts.
Brings Improved Results
Third-party management companies are dedicated to maximising your performance while lowering your expenses. By joining hands and handing over the management of your business, you can bring better results. In addition, the input from your side and theirs can bring tons of improvement to your company too.
Disadvantages
Initial Lack of Trust
Understandably, many self-storage owners will feel distrustful of handing over control. But this concern is often unwarranted. The management companies are fully aware that the owner is still in charge of the final decision-making. Plus you will get a voice and a platform to address any potential issues.
Doubts About the Cost
The cost of hiring a third-party management company is also another big concern for self-storage owners. They usually charge about 6 per cent of your gross revenue plus a starting fee. This might sound excessive at first but it still costs less than managing the company yourself.
Worries About the Fate of the Employees
Self-storage owners usually have a strong professional relationship with their long-time employees. So it’s natural to worry about what happens to them once the management takes over. Luckily, most management companies do their best to retain all of the employees as long as it’s beneficial for everyone. Plus they also offer training to ensure that everyone adapts to the new management system.
Also read: Norstrat: Overview & Guide to Consulting Company in Canada
Conclusion
Running a self-storage company can feel like a mammoth task at times. This is particularly true if you’re planning on expanding and opening more storage facilities in other locations.
And it doesn’t hurt to turn to third-party management companies when the workload gets too heavy. They work with the sole purpose of supporting your business and bringing in maximum profits.
So if you’ve been thinking of getting some help for your business, this is your sign. Remember our tips and benefits while you’re looking for a good management company. Don’t forget to consider the drawbacks too.
