Two Situations Where Rented Storage Space Might Be Cheaper Than Alternatives
Running a small business is tough. There are lots of financial concerns that you have to manage. You might think that unnecessary expenses should be avoided. While you shouldn’t want to wast money, expenses aren’t always bad. It’s more a question of how those expenses help your business either save or make money. In that case, there are situations when renting storage space might help a small business. According to Vernon Storage, a self-storage company in Summit County, Utah, these are some business clients they’ve had who’ve benefited from their services.
Before we start this off, I wish to stress that even the examples provided are not absolute benefits. All these are highly circumstantial cases. Whether or not storage rental is a good choice for your business depends on many factors. Largely, it’s a question of whether the rented storage is less expensive than alternatives. Depending on the storage companies in your area and the other options you may have at your disposal, these may or may not work for you. It is, however, worth knowing as an option to check out. If it does work better, it’s definitely worth going for it.
Rented Storage for Inventory Management
Retail space comes at premium prices. Whether it’s taxes for owning the land, or rent for leasing a building from a landlord, you’ll be paying a lot of money for your retail space. How much space can you afford to have? If you’re a small business, it might not be that much. Maybe you’re just owning a small shop in a mall with a tiny back room. Where then do you keep your inventory?
Depending on the cost of retail space, it might be more affordable to rent storage space from a self-storage company rather than rent a larger building for your business. The example Vernon Storage shared with us was a local Hallmark card store keeping its inventory in their facility. Their shop was tiny and the retail space was too expensive to expand it for storing their inventory. Renting from them was cheaper, both in the short term and the long term. It allowed them to keep a decent amount of stock on hand for when they needed it without having to buy a bigger, more expensive shop.
Rented Storage For Equipment
All companies need some kind of equipment for their business. A painting company needs ladders and lifts. A construction company will need tools, scaffolding, and machinery. And so on. In this case, our example comes from CV Lawn King, a landscaping company in Cache Valley. When they first started out, they had to rent their lawn maintenance equipment, but equipment rentals were expensive, sometimes a hundred dollars a day or more. While this was still cheaper than buying the equipment, the constant rental fees made getting ahead difficult. What they found out quickly was that it was easier to take out a small loan to buy the equipment and then rent storage space for it.
The storage rental was much cheaper than the equipment rentals, even after combining it with the monthly payments on the loan. Since they were buying the equipment, every dollar they saved on the rentals allowed them to more quickly pay off the bank loan, letting them own the equipment faster. Renting the storage space meant they didn’t have to expand their home or business building, so they could get right to buying the equipment without waiting. It cost a little bit more up front, but in the long run, it saved them thousands of dollars by allowing them to own their equipment sooner.
Be Sure To Research Your Options
These are two examples when renting storage space might be a much more affordable choice than alternatives, but that’s not always the case. It all comes down to what your options cost you. Renting storage space for inventory or equipment might be more valuable than buying more space to your business, or renting the equipment. There might even be other situations where renting storage space can help you out. It can be a step to better control over your business, letting you own your equipment sooner, or keep more inventory at a cheaper price. It’s an option to consider, but be sure to research your options first. Running a business is about making smart decisions, so you need to know what choices you can make. Renting storage might not be the best choice for your small business, but then again, it might be. Take some time to see what is on offer and find out if it’s a good choice for you.