To stay on top, businesses must scrutinize monthly expenses and perform an analysis to ensure each cost is being minimized in an effective and efficient way. Warehouse management is one place where companies can’t afford to ignore or avoid analyzing. Four easy ways to conduct this analysis are to calculate, compute, consider, and then compare as prescribed below:
According to Entrepreneur Magazine, the national average for commercial space per square foot is at a minimum of $20 per square foot. In the first part of your analysis, calculate the cost of square footage in your space. In your calculation, also include the cost of utilities, monthly fees (parking, property management, garbage removal, etc.), and any applicable taxes. If you are paying for onsite storage, consider reducing all associated costs by obtaining offsite storage to immediately reduce your cost per square foot.
Forbes business entrepreneurs encourage a minimum five-year plan. Your five-year plan should include your goals and expected increases in costs. If you need space to expand, reduce onsite business storage by obtaining a storage unit with a safe, reputable storage facility like Corona storage units. Offsite storage facilities are a good way to free up your current space to give your business room to grow and reduce the cost of expansion.
Moving your business from one location to another is a tedious and expensive process. If your business is likely to move in the next one to five years, consider putting as much as possible in an easily accessible, offsite storage facility. Moving costs can be minimized by being proactive and consolidating items in your business. Consider storing everything from business records to unused furniture because these items can be moved in small, manageable increments and placed in a safe, offsite storage facility.
The cost of commercial space continues to rise, and business owners need every advantage to minimize costs. Compare your overall square footage to the price you’d pay for storage and start mapping out the best storage facility. Storage units help with storing items and the price per square foot is generally half the average price of commercial square footage. This provides a secure way to store excess items.
The calculate, compute, consider, and compare analysis also helps business owners stay organized and appropriately plan ahead. Businesses must continually review opportunity costs to ensure they are investing every dollar wisely because every cent counts. This easy cost analysis provides a quick, comprehensive way to evaluate exactly how your business is making the most of business storage.