“What brought you here won’t take you to where you’re going.”
Do you agree with that? Well, we for sure do.
Having experienced the ups and downs of entrepreneurship, we know for a fact that this line rings true. What brought your business to this point will not bring it to the next level. The systems, processes, and everything else that you once thought you’ve already mastered will start feeling inadequate and inefficient. Even the team you’re working with and the place you’re running your business in will begin to feel lacking.
That’s when you know that your business has outgrown itself (read more). The business that was once a startup has now grown roots and it’s becoming too big to contain in its old pot. If you are in this season of business, do not fear the change. After all, businesses are meant to evolve and when they do, you have to ride the changes yourself and seek your next level.
Apart from your own personal growth as an entrepreneur that is fueled by your business’s evolution, there’s also the growing operational demands of your business. If you’re currently struggling with fulfilling the market’s demands, then your supply chain must have hit its first ceiling.
At this point, you can either lose the incoming business or grow to meet the demand. And we both know what the right answer should be: expand your business.
If you’ve started fulfilling orders from your room, house, or garage, and now you can’t seem to make do with the limited space you have, then it’s probably time to invest in a bigger space to run your business, especially if you live in Woodbury, MN.
If you are at a point where there is overwhelming demand for the products you offer, the costs of a location upgrade can easily be offset by the increase of orders you can fulfill once you’ve transferred to the bigger space, like a small business warehouse.
And hey, your business is bound to hit that ceiling at some point so even if you refuse to upgrade now, you will still have to in the near future. The only difference is that you can seize more business opportunities if you make the decision now.
If you’re still not 100% sure about renting a small business warehouse, here are 5 straightforward reasons why you must:
Expand Your Inventory
One of the main reasons why businesses would rent a small warehouse in Woodbury, MN is to expand their inventory. As mentioned above, if your market demand is growing rapidly and your current production capacity cannot fulfill or meet the customers’ demands, then you might need a bigger location to handle the growing market. More space could mean more space to stock up inventory, which in turn, can help you fulfill more orders and increase your business’s reliability rating.
Grow Profit
This goes hand in hand with the previous point. If you’re able to grow your inventory and meet the growing demand of your market, your profit margins should significantly increase as well. If you believe that your projected profit increase far outweighs the additional costs of renting a small warehouse, then it’s high time that you lean towards business expansion.
You know what they say, if your business is not growing, it’s dying. So embrace the changes and evolve with the needs of the market for more opportunities await.
Organize Your Stocks Better
Another reason you should consider renting a small warehouse is you can organize your inventory better. Along with the expansion, you can also better plan your warehouse’s layout so that it’s able to house more products. Depending on the type of business you run, your new warehouse can also serve as a space for you to showcase your products to new clients or investors. Definitely better than running your entire business from your garage or home office.
Reduce Product Damages
Bigger location + better organization = reduced damages.
Another way to increase profit is to “plug” any money leaks in the business. Money leaks refer to certain areas in your business that might be draining money — such as product damage due to poor storage and safekeeping.
Renting a small warehouse can help you reduce such damage since you’ll have a bigger space to better organize your inventory. You can also put additional measures in place to avoid any unprecedented mishaps such as water or fire damage. Read more about revenue leakage here: https://www.forbes.com/sites/forbestechcouncil/2023/02/10/patching-the-leaks-how-to-spot-and-limit-revenue-leakage-in-2023/?sh=f11a8cc3fa8a.
Bring Your Business Closer To The Market
Last but not least, you can strategically relocate your business at a warehouse that is closer to your target market. This way, if you’re also offering your products for retail, your warehouse can also function as a pick-up location for customers.
Overall, there are many advantages to upgrading your business’s location. You just have to make sure that it actually makes sense for your business to expand at this point in time. Before making any big moves, you have to do your due diligence and make an objective assessment of your assets and liabilities. You must determine whether expanding right now would lead to a significant increase in profit. If the answer is yes, then, check out small warehouse rentals today.