When you’re building your business upwards and outwards, you might consider outsourcing some key components so you can focus on the company from an internal perspective, but you also need to think about accommodating more obvious components on site, or just finding extra space so things can be physically stored. A warehouse is one of those things that can be an absolute lifesaver, but for those businesses that have started in modest surroundings, it can raise a few questions, such as if it is necessary right now, but also, what can you do to help your business?
Is It Appropriate For Expansion?
Every business has their own reasons for expanding, and when you are looking to boost the brand value, or you want to get to a new market, or just offer a wider range of products, a warehouse can prove to be a very useful component. But with this, depending on what you need, it could throw up a multitude of options. It all depends on two things, what you want, and how much money you have in the bank. For those businesses that are small in stature, it’s far more cost effective to have the warehouse close in proximity. When you hire a warehouse that’s far away, it can be useful for storage, but that’s only if you are expansive in your operation.
Is It Practical?
It’s not just the location, or even the storage facility, but it’s about the manpower and the facilities on-site. Choosing the right components, whether it is pallet rack storage facilities, various forklifts or transportation vehicles, they all need to come from a place of practicality. Naturally, this goes hand in hand with the objectives and the budget. But if you are looking to establish a new base somewhere, the warehouse can be the first thing to set up, so if you get the staff on board, and get the ball rolling before you start trading in this new area, it can mean you hit the ground running. But also, depending on the labor skills in this new location, you may find you have to pay a bit more money to get the right people. Think about the practicalities.
What Are Your Warehouse Options?
It depends on your budget and your overall goals, but the options consist of three main ones. You can get a private warehouse, and this will be built for the storage of your products. The great thing about these warehouses is that they can be altered according to the products stored inside. For example, if you specialize in foods, this space can be accommodated to refrigerate these products.
A public warehouse is licensed by the state, and comes with a storage fee. Ultimately, for a fee, you have this storage space, but it’s dependent on the regulations of the state, but as a major positive they are set up by convenient transport routes, like railways and main roads.
A bonded warehouse is a more beneficial approach for those who import goods because only duty is required as far as payment is concerned.
A warehouse can be an excellent addition to an expanding business. But it’s all about picking the right components and making it work with your business.
FREE related content from StrategyDriven