Always in demand and offering great returns on investment, warehousing businesses are attractive to those looking to enter the commercial real estate market. At Northwood Mortgage™, we want to help you achieve your small business dreams. This article will break down everything you need to know before starting your own warehousing business, beginning with the most important.
You Will Need A Small Business Budget
Warehouses might not be as expensive to maintain as other industrial structures like restaurants or gas stations, but that doesn’t mean you should skip important financial preparations. On the contrary, you must ensure your budget is sufficient for the size and sophistication of the warehouse you intend to build or purchase.
As the owner and manager of a warehousing business, customers will be trusting you with the safekeeping of their private property. After all, your reputation and the success of your business are built on trust.
Your customers are also affected if your warehouse is in danger because you are behind on mortgage payments. Therefore, you must understand the financial commitments of running a warehousing business.
Typical warehouse businesses can cost anywhere between $10,000 and $50,000 to kickstart but may incur ongoing maintenance fees for which you will need to budget. In addition to these expenses, you will need to set aside savings or credit to pay for licenses and equipment.
These considerations bring us to our next requirement.
You Will Need Proper Equipment
A warehouse without proper equipment is hardly useful to anyone. Forklifts, shelves, storage units, and freezers: all these and more will be required as tools of your trade. As a warehouse operator, customers will expect that you have the equipment they need to safely and properly store their equipment. If you cannot provide these necessary components, the long-term viability of your business is in jeopardy.
You Will Need Commercial Insurance
As a small business owner, you can do everything right and still find yourself in hot water. You can buy the best equipment, get the right licenses, and budget with a solid five-year plan – but break-ins at your warehouse can still happen, and your customers’ goods can still be damaged or stolen.
No business is immune from setbacks like these. They can be particularly devastating for warehouse owners, who their customers have entrusted to store and protect valuables, materials, and other important items. The damages resulting from such incidents are costly and include potential civil suits, repayments, and other stresses.
However, with the right commercial insurance, you can gain adequate financial protections that will keep your business afloat.
You Need the Right Team
Finally, your warehouse business will need good, knowledgeable employees who can do the job right for a fair price.
At Northwood Mortgage, we know how important it is to have the right staff on hand. Our team of brokers is dedicated to helping you get the best rates for your commercial mortgages. When you speak with our team, you can be confident that we work hard to make your small business dreams a reality.