How can a small facility make and save more money?

A quote from Winston Churchill, victorious Prime Minister of Great Britain during World War II:
“It has been said that democracy is the worst form of government except all the others that have been tried.”

In other words, he was saying that democracy, whilst probably the best system of Government developed so far, has its problems. America is blessed with one of the best designed systems of democracy in the world.

There are some democratically elected Governments in this world that, apart from the right the public have to vote at election time, have no checks and balances in place throughout their term. In these countries, between elections and with the support of fellow parliamentarians, the elected politicians in office can pretty much do as they please. This means they can make un-popular decisions in relation to laws introduced. They may pay the price at the next election, but the un-wanted law is in place and usually stays.

Other countries have some checks and balances in place. For example, Switzerland has a system where, as long as there is sufficient public support, citizens can initiate a referendum on an issue and the Government has to listen.

In terms of a democratically elected Government, Americans have something very special and unique. The American Government is made up of three separate branches, each with its own authority, which is equal to that of the others, so that one does not become too powerful. The legislative branch makes the laws, the executive branch carries out the laws, and the judicial branch interprets laws and punishes law breakers. Having three branches of Government provides natural checks and balances for the American people, and allows for effective and productive Government.

Business is all about being effective and productive too. As such, certain checks and balances in business can mean the difference between bankruptcy and despair or wealth and happiness. We would suggest that, with profitable checks and balances in place, a business of any size, especially small ones, can dramatically improve profitability.

So, how does one introduce such checks and balances into their business? The answer is simple. Buy some good management software.

Let’s take late fees as a simple example.
Can a 1,000 unit operation afford to miss a $20.00 late fee? You might think it probably can. But you can bet the owner of that business does not agree. That is why they have management software to track and ensure all late fees are charged and collected.

$20.00 to a 1,000 unit facility charging an average rent of $100.00 per month is just 0.0002% of the maximum potential monthly chargeable income.

Can a 40 unit operation afford to miss a $20.00 late fee? No way! To a 40 unit facility charging an average rent of $100.00 per month, $20.00 is 0.005% of the maximum potential monthly chargeable income. Missing just one $20.00 late fee is far harder on the 40 unit operation than it is on the 1,000 unit operation. The 1,000 unit business won’t entertain the idea of missing out, so why should a 40 unit business?

A good management software package will, without undue effort or stress, ensure all late fees are charged. It makes it so simple to capture this extra profitability that it seems a shame for you not to have it.

Let’s take a month’s rent as a second example.
$100.00 to a 1,000 unit operation charging an average of $100.00 per unit is 0.001 of the maximum potential monthly chargeable income. $100.00 to a 40 unit operation charging an average of $100.00 per unit is 0.025% of the maximum potential monthly chargeable income.

A good management software package will ensure all rents are charged.

Let’s consider the value of having a systematic rate revue system in place.
By reviewing your rental rates on a daily basis our studies show that rental chargeable income can be expected to increase by as much as 14% over a year. For a 40 unit business, charging an average of $100.00 per month per unit, an extra 14% annual revenue chargeable income is $6,720.00. If you were the owner of a 40 unit facility, what would you do with you extra $6,720.00 per annum? And that is just for the first year. By extrapolating another 12 months income, the 14% “bonus” next year would be $7,660.80!

A good software package will possess an automatic rent revue system.

What about delinquent payers?
A good software package will integrate with your gate system so that delinquent payers cannot access their goods until they have paid their storage account. Usually a delinquent tenant will drive up to the keypad, key in their PIN, and have the system tell them they cannot gain access without reporting to the owner/Manager. The owner/Manager will explain that they cannot gain access to their stuff until their account is paid up, and that it is the system, not the owner/Manager themselves, that is preventing the access. In our vast experience, payment is rapidly forthcoming in this type of situation.

A good management software package will work to maintain the operation of your business as a storage revenue generator rather than a debt collection agency.

What about increasing time spent on production?
Can a single owner or Manager work 24 hours per day, 7 days per week? A good software package will allow online searches and reservations to be made 24 hours per day, seven days a week. Even if you, as an owner or Manager, are working 50 hours per week, your business could be toiling away attracting more business potential for a further 188 hours per week.

Even though these 188 hours are times when not as much business occurs anyway, even if these additional hours were only 5% as productive as the 50 hours you work, your business is keeping up with inflation. It is costing you a mere pittance and taking no effort on the part of the owner or Manager to keep the doors of the business open all night long.

A good management software package will integrate with other technologies (such as a web page) to increase your marketing success.

What about making it easy for your customers to pay you by facilitating on-line payments?
A good software management package will enable your customers to pay their storage account whilst the owner or Manager of the facility is asleep in bed.

see Part Two to follow...