The late Mike Parham, former CEO of The Parham Group and president of Noah’s Ark Development, was honored with a prominent feature in the November 2014 edition of Mini-Storage Messenger. Noah’s Ark has been on the Top Operators list for the past 20+ years. In the feature, Parham shared his professional tips to help self storage owners learn and build their businesses.
Self Storage Trends
Pro tip: In today’s business world, it is imperative to be on the Internet.
Customers need to be able to make reservations and payments online if you want to be successful. This is how the world works today. In addition, Parham told the magazine that Internet and mobile advertising are crucial. Staying up to date with technology will be worth the time and money you put into it.
Pro tip: The best way to succeed in the self storage industry is to know how to adjust your business to move along with shifting markets.
The success of your business revolves around accommodating your customers. In an ever-changing market, industry must be able to keep up. You need to observe the area you are in and what kinds of accommodations are needed. For example, Parham advised that it makes sense to have smaller storage units if apartments surround your business. Pay attention to statistics involving the details of who is in your area. Demographics will tell you what kinds of families, sizes and incomes, are living among your industry. This can help you establish the right rental rates for a particular area. Parham also recommended establishing good relationships with your customers to keep them coming back time after time.
Pro tip: Having multiple facilities in one area is better than spreading them out.
Parham stated that having more than one facility in an area is more profitable. Keeping them in one area allows you to recommend the other facility when one fills up. They can also share in marketing costs, which is a large savings.
Don’t Be Quick to Sell
Pro tip: Even if people claim it is prime time to sell your facility, don’t do it.
People who have joined Parham on the Top Operators list are those who have committed to their investment for the long haul. “Ninety percent of successful companies are long-term players,” according to Parham. You will make a larger profit if you stick with your original plan, rather than selling out. If your business is growing financially, stay there. Selling will cost you in taxes and reduce your profit considerably.
Self Storage’s Future
Pro tip: The self storage industry is booming. Practice the skills to be successful.
Many people want in on this action. It is a prosperous industry and becoming more and more popular each year. Not everyone will follow the recommendations noted here. Not everyone will commit long term like the people who make the prestigious Top Operators list. These are tried and true practices. Learn from successful people. Follow the advice of Learn Self Storage.