Sam Bowerman
Growing your plumbing business is exciting, but the demands you face can be burdensome. If you’re not careful, storage costs alone can ruin your business. Unfortunately, the cost of storage can become one of your biggest expenses as your company grows. Every time you add to your fleet, provide new plumbing services, or invest in new tools, you need additional space to keep up with your growing inventory.
If you currently store your plumbing company supplies in a van or garage, your expanding business may quickly outgrow your storage space and you may need to rent dedicated space for its needs.
pros and cons
Scaling to the point where additional storage is needed isn’t for every business. Large expansions are often risky ventures involving secured bank loans and other financing options due to the high costs of facility deposits, hiring and recruitment, inventory and supply. If growth fails and you default on your loan, you could lose the actual assets you pledged to your lender.
Growth may also reduce the amount of control over operations and quality of service. Handing over the keys can be very nerve-wracking if he doesn’t have 100% trust in the management team.
However, expansion is well worth the risk and can also be mitigated with smart expansion planning. Significant growth provides opportunities to enter new markets and further establish the company as a market leader. You can If demand for plumbing services is steadily increasing and profits are consistently rising, plan for growth now, than if you’re too busy to keep up with your own expansion, you have more time to create a strong foundation. It’s easier to do
How much space do you really need?
Rapid expansion is one of the most common mistakes for growing businesses. While some companies may need a large dedicated facility as the first upgrade, most plumbing businesses can benefit from incremental growth. Perhaps you can move from a van to a shed or self-storage unit and then rent a dedicated warehouse. This slow, steady storage growth helps businesses spend within their means, rather than wasting money hoping for higher returns later.
If you need a place to complete administrative tasks, consider using home office space and hiring remote workers. This is considerably cheaper than renting from a dedicated office park, giving you extra cash to cover storage costs. Here are some ways to declutter your home to create a functional office.
● Invest in a corner desk to fit your workspace into a tight angle
● Purchasing furniture with storage to keep the room neat and tidy
● Use a compact desk lamp to keep the light from taking up floor space
Identify essential amenities
No matter where you store your plumbing tools and supplies, you need storage space with all the features you need. For plumbers, one of the most important amenities to consider is security. If you store your essentials at home, a deadbolt-style lock can provide maximum security so you can avoid costly thefts that can lead to major business disruptions. For rentals, 24/7 monitoring is ideal.
Storage space should allow you to organize all your supplies. You can probably store them in neatly stacked and labeled storage bins.
Create a strategic growth plan
Before you start investing in growing your business, it’s important to have a plan in place to keep your expansion on track. First, you can create an org chart that shows the members of your team and what positions they should fill.
A strategic business growth plan should also include details about business finances. Create a budget that identifies expected expansion costs (including travel labor costs) and how those costs will be funded.
In addition, you need a logistics plan that plans the details of the expansion, such as how current supplies are moved from point A to point B, and who will end up working in warehouses or office facilities rather than at home.
create your ideal space
If you choose to grow your business until you need new employees and additional storage space, you have the chance to bring your thriving business into new and fresh markets. This can be a risky financial move as it often requires the use of secured loans and you lose control over the lower levels of the company.
However, large scale expansion is also incredibly rewarding. Slow and steady growth, including storage facilities, allows us to keep some of our biggest costs down while making room for new services, new customers, new tools and new employees.
Sam Bowman writes about people, technology, health and how they come together. He enjoys being able to use the internet for his community without actually leaving home. In his spare time, he likes running, reading, and a combination of the two to visit the local bookstore.
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