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Taipei Mini Storage
|Taipei Mini Storage wanted to boost its future sale potential Smith Lu currently runs two self-storage facilities in Taipei, Taiwan, under the brand name Taipei Mini Storage. He used Steel Storage Asia to build his second self-storage facility because of their in-depth knowledge of the Asian self-storage market, their capability for in-house architectural design, their high-quality products that are specifically designed for self-storage and their overall ability to help him boost the future sale potential of his business.||“What started out as a tiresome maintenance issue, made me realise that if I ever wanted to sell my business and get the best possible deal, I needed a better quality product. Steel Storage Asia provided that and much more.”
Smith Lu, Managing Director, Mini Storage Construction Management Company
“When people start a self-storage business, they may not immediately think of the sales potential it may have 5 to 10 years down the line”, says Jon Perrins, Executive Chairman at Steel Storage. “But there are many examples across the globe of self-storage owners becoming millionaires by thinking ahead and selling their company when the time was right. When these people built their self-storage facilities they would have picked the right location, bought building materials from a recognised self-storage manufacturer and over time they would have built a successful self-storage brand allowing them to sell at top dollar.”
“When I built my first self-storage facility, I did approach Steel Storage Asia but thought they were simply too expensive and as this was my first self-storage venture I needed to keep my cost down”, Smith Lu explains. “So I used a local supplier to build the walls and partitions needed to create the various storage spaces, and at first this was okay. Within the space of a year though, the wear and tear became visible and my maintenance costs started creeping up. It wasn’t just the maintenance cost that concerned me though, but customer perception”, he continues. “A clean, well-maintained, good-looking self-storage facility increases customer confidence and it also gives them a heightened perception of safety. And then it suddenly hit me… if I ever decided to sell, any potential buyer would look at my store in exactly the same way. These two things combined brought me back to Steel Storage Asia when I was ready to build my second facility.”
With more than 20 years of experience in the self-storage industry, Steel Storage Asia was well placed to help Taipei Mini Storage increase the value of their self-storage business. Their factory in Singapore supplies the majority of the Asian self-storage market. Their walls, partitions, doors and supplementary products have been specifically designed for constructing or fitting out self-storage facilities. This and the fact that they are a globally recognised supplier in the self-storage industry were the reasons Taipei Mini Storage contracted them to produce materials for their second store.
“The steel that Steel Storage Asia use to manufacture their walls and partitions doesn’t rust or scratch easily and has a 20-year guarantee. It requires virtually no maintenance other than making sure it is clean,” comments Lu. “I also love their recessed door lock. And as it is their patented product, no one else in the market can supply this and it makes the corridors in my facility look really smart because nothing sticks out into the corridor”, he enthuses. “I really don’t have to worry about customer perception anymore and it has also boosted my confidence about the sales potential of my business. It is certainly a case where the benefits outweigh the cost!”
Future sales potential
Any buyer of a self-storage business will go through a due-diligence process where they assess the value of the business. The two biggest physical assets they’ll evaluate are the building and the steel. The building, as with any real estate, will appreciate over time and a value can be attached. If they know the steel was provided by a recognised self-storage manufacturer it increases the value and won’t raise any questions on quality or longevity. Of course they’ll also look at occupancy, the brand value, the potential for future growth, but by making sure that you have the best self-storage product in place you reduce the risk of complications during the sale process and it just might be your chance to become a millionaire.
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