2 Tips For Improving The Net Income Of Your Self-Storage Business Before Selling
Whenever people want to move they always look for a place to store their excess items. This is why a self-storage business can often be successful. Self storage businesses are also more enticing because the expected monthly income often remains the same from month to month. However, running a self-storage business may not be what you want to do for the rest of your life. If this happens, then the next best step may be to sell your self-storage business. Net income is what most buyers immediately look at when it comes time to sell. They want to know if your business is profitable and how profitable it is. The higher your income is after expenses and taxes are deducted the higher chance you have of selling your business quicker. As a first time seller, this may seem daunting. Fortunately, there are a few tips that can help you be successful.
Consider Increasing Rent Prices for Your Storage Units
Working on improving your bottom line a number of months before selling your self-storage business will give you the most success when it comes time to sell. Self-storage units typically have a max amount of rent they expected to receive each month because they only have a certain amount of units. Therefore, you should consider increasing the rent prices in your self-storage facility. However, the price should not be increased to some arbitrary number instead it should reflect what customers are willing to pay. If you increase prices without conducting research, then you may end up losing customers and income.
Focus on Retaining Existing Customers
In a self-storage business, it can be incredibly beneficial to retain existing customers because people often use these facilities as a long-term solution. Having customers that stay with your facility for an extended period of time avoids pouring unnecessary expenses into advertising. Take a look at the amount of money you spend advertising and marketing your business to new customers and use a fraction of that budget to keep the old ones. This can be done by offering discounts to customers who rent out a unit for a set number of consecutive months. Instead of increasing your marketing expenses each month, you can lower them from month to month by developing relationships with existing members. This will help to increase your net income as quickly as possible.
Selling your self-storage business may seem like a big step, but it can be incredibly rewarding. Therefore, use these tips to ensure that your business sells without any issues.