Your growing small business may experience increases in sales during peak seasons or it has already sustained a certain number of regular customers. In such cases, you will need extra storage space for the additional inventory you will purchase to fulfill demand. Buying a warehouse might still be outside your budget. However, you might want to consider renting storage space instead.
Here are some of the advantages of having a warehouse for rent.
When you rent a warehouse, you only pay for the space you need. If your needs are seasonal or your customer demand is not yet at the level you want, you do not have to spend more. This is not the case when you purchase your own storage space. You can scale up or down, depending on the amount of inventory you ordered. This flexibility allows you to cut costs, save money, and maximise profit.
Additional Space for Inventory
As your small business grows, you will need more space for equipment, employees, and inventory. You can move some of your inventory to a warehouse for rent. The additional space this provides allows you to de-clutter your office to make room for a growing organisation. Renting also offers financial flexibility compared to buying a property outright. This enables your company to expand while reducing costs.
Your own warehouse gives you more control over delivery times and reduces possible supply chain mistakes. It is also easier to re-stock and send products to customers whenever they order online. You can send orders faster to meet the expectations of customers. A rented storage space reduces your delivery costs as well because of their proximity to your store and/or target customers.
You will need to maximise your finances to achieve your target growth goals. You can reduce your operational expenses by renting a warehouse. A rented storage space allows you to reach a wider audience outside your geographical location. This approach is cost-effective because you do not have to spend capital on buying property. You can rent for a certain length and up to a specific capacity. You only pay for what you need while simultaneously reaching more customers in other areas.
The logistics companies that often rent out warehouses have the equipment and system for smooth transactions with partners. This provides you access to such resources. You do not have to spend extra on equipment and systems that track and send your products to customers. You can use your logistics partner’s expertise and experience. Ask their staff about delivery schedules and lead times. They can also identify problems and provide solutions for any possible problems with orders.
Find a Warehouse for Rent
When looking for a warehouse for rent you should consider a few factors such as:
- The location is important. Its closeness to your stores or your target customers will make a difference in the costs of deliveries.
- Look for a warehouse that is within your budget.
- Look for a logistics provider that offers quality services along with the storage space they rent out.
- Find a warehouse that offers the space you need to store inventory.
A rented warehouse provides you with many advantages as stated above. You will need to update your accounting books to include it in your expenses. We at Robookkeeper can provide you with affordable bookkeeping services for small business owners.