Storage Franchise – A Great Way to Increase Your Personal Wealth -

Details for Storage Franchise – A Great Way to Increase Your Personal Wealth

ID:	2261
Author:	Allan Smithz
Title:	Storage Franchise – A Great Way to Increase Your Personal Wealth
Article:	Investment in a business venture can be a risky and costly adventure; however, an investment in a storage franchise is a great way to increase an investor’s personal wealth because there is almost no needed inventory, limited associated customer relations, little risk of delinquent accounts, and almost no need for expensive advertising or marketing. All of these facts come together to create a situation in which most of the capital generated through the storage business is profit with little being diverted to recurring expenses. This type of business, unlike other commercial ventures or opportunities, does require a vast inventory. Inventories can consume a large portion of capital and be a financial stumbling block to a developing or struggling business. Some businesses, like restaurants, set aside as much forty percent of revenue in order to maintain their substantial inventories. This number can sky rocket to fifty, sixty, or even seventy percent for retail or automotive chains. Compare that with the average storage franchise which usually only demands a five to ten percent allotment of revenue. Inventory for this business is largely limited to packing supplies such as boxes, bubble wrap, and tape, and office supplies such as paper, pens, and folders. This type of investment opportunity also has built in risk elimination. Unlike other businesses where a client or customer may not pay their bill for the issued services, a self storage facility has the legal ability to sell items left in storage in order to cover the unpaid bill. This means that if a client or customer fails to pay his or her bill in a timely manner, then the owner of the storage unit becomes the legal owner of the items stored on his or her property. These items are usually auctioned off or sold to pawn shops for cash. While not always a reliable source of income (the acquired property may not be worth more than the overdue bill), the cash generated from the sale of the debtor’s property can exceed the amount of money past due. Therefore, there is little risk of frequent delinquent accounts. Making the ownership of a self storage business even easier is the limited amount of contact with customers. While this may seem to be a disadvantage when trying to offer a service in a competitive market, limited contact with customers means les wasted time dealing with customer issues, less money spent on rectifying those issues, and less money spent on hiring people to deal with those issues. Typically, in this kind of business venture, the owner of the property only meets with the paying clients when they open an account or when they close an account. This limited contact with the customer means less hassle while running your business and ultimately more money saved. This type of business also saves you money because there is little need to advertise or market the services offered. Other businesses dedicate huge amounts of capital to advertizing their services over their competitors. However, the self storage business is in such demand that there is a virtual endless line of potential customers. In fact, many units have no vacancies available to rent. With so many customers, there is no need to advertise for more. All these reasons make owning a self storage franchise a very profitable experience. About the author of this article: http://www.selfstorageinvesting.com/blog/self-storage-articles/storage-franchise-â€“-a-great-way-to-increase-your-personal-wealth/
Category:	Business
Date:	March 17, 2009 04:03:03 PM

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