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Things To Consider When Purchasing Your First Warehouse
Growing your business to the stage where you need to think about purchasing your first warehouse, is a fantastic achievement, but scaling to the next level is a big investment, and so it is one that you need to get right. If you’re on the hunt for your first storage facility, then here are a few things that you may need to consider.
How old is the building?
Generally, older buildings tend to be cheaper than new ones, but that’s because the older the building, the more likely that it has some flaws. To get the most for your money and to safeguard yourself against teething problems, opt for something that has a little bit of age to it but that has clearly been looked after.
Will it meet your needs in 12 months?
The perfect warehouse space for you right now, may not be suitable in six or twelve months time. To prevent you from needing to move again in the near future, try to take into consideration your projected growth and invest in somewhere that will serve you in the future. It can be difficult to know what kind of space you will need 12 months down the line, and it is a delicate balancing act between paying too much rent for what you need and finding yourself outgrowing the space before you’ve had time to settle in.
Is it designed to be a warehouse?
If you’ve found what appears to be the perfect space, but it isn’t technically a warehouse or storage facility, then take a moment to reconsider. Warehouses generally have high-quality resin floors that can withstand heavy use, sufficient security, and a layout that has the space you need for a modern flow. Old shop units, offices and barns, may appear suitable on the surface, but in reality, could pose problems later down the line.
Are you choosing to be central or remote?
A remote warehouse may cost substantially less than one in the middle of, or near to, a major city, but it could end up costing you elsewhere. You may struggle to find staff that can commute to a rural location, not to mention 20% of your costs usually end up being transportation, so you could save a lot of money by simplifying your logistics. Be sure to take into consideration the other costs of being rural before jumping on the first rural warehouse that you see, and similarly, don’t assume you need to be central if you could save money by being a little further out.
Do you need a warehouse management system?
Lastly, if you are unsure whether you are ready to take on the responsibility of running your own warehouse then don’t forget to look into warehouse management systems. A warehouse management system could help to improve your logistics and fulfilment, and depending on the package you go for, you may need to have very little involvement in the day-to-day running of your operations.
So there you have it – a few simple things that you may want to consider before buying your first warehouse. Have you owned a business storage facility before? Is there anything that you would add?