Like any smart shopper, take your time, do your homework and dont give into high-pressure sales tactics. This is ever-so true in the software venue. The last thing you want is to begin a relationship with a software company that will only cause you frustration in the future.

Sit down and evaluate what you want to accomplish. Make a list and prioritize your goals. I know this sounds silly, but do yourself a favor and get out a pad and pencil. Talk to all those in your organization who have direct or indirect experience in tasks currently handled, and include anyone who will be working with the new software.

Is billing and accounts receivable your main objective? Do you need to incorporate a gate system, security, automated credit-card processing? Once you have your list, highlight the top-three to -five itemsand dont ever forget them during your research.

Just about all software packages available to self-storage are going to cover basic processes such recording customers names and addresses, and automating regular billing, late charges and aging reports. Just like Chevy and Ford trucks, each will have similarities and differences. Nevertheless, packages will have varying features and prices.

On the Money

When evaluating software packages, you will find prices that run the gamut from inexpensive to cost prohibitive. One of the biggest determining factors is going to be what you can or are willing to afford. If you have a small 100-unit operation, its unlikely you could realistically justify spending $2,000 to $5,000. By the same token, if you have multiple 1,000-unit locations, $5,000 is not necessarily a large amount if the software resolves your issues.

Be aware of the myth price equals quality because its not necessarily true with software. When evaluating price, you should always be aware that price may not be an indicator of quality or features. I have personally seen $2,000 to $3,000 programs that have fewer features and are harder to learn and use than some programs under $1,000. I have also seen a number of less-than-$1,000 packages so limited or difficult to use they actually become a hindrance to business operations.

Another bit of advice: Some software companies have a full version and a lite or junior version, with prices set accordingly. Make sure you know which features you are giving up with the lite version. Dont buy based on price only to find you have to upgrade to the full version (at the full-version price) just to accomplish what you need to do.

Some software is sold based on the number of units housed at the facility. For example, many junior versions are limited to 100 units and priced very affordably. Inquire how many units and customers a software system is designed to handle adequately and evaluate the price. If you plan to expand your operation, take this into consideration.

Generic accounting programs like Quicken and Quick-books are affordable and may be an option for facilities with fewer than 100 units. Just understand these programs are typically generic and wont handle some processes such as automatic recurring billing. Also, with generic software, if you have 100 units, you will have to individually post 100 customers every month. Many of these software providers subcontract customer-support services internationally. If you have a question about programming, it shouldnt come as a surprise that your toll-free support center is based in India. Have you ever experienced the frustration of support from overseas? Furthermore, these generic programs are updated every year and users must change with them.

Networking

Computer networks are becoming very commonplace in small businesses and the home, allowing resources like printers, high-speed Internet and storage space to be shared. In the past, most networks were hardwired, which means a physical wire ran between each computer. Todays wireless networks, though, are becoming very popular since they can be easily set up anywhere. Plus, theyre less expensive to set up when you consider the cost of labor and wiring.

Many programs are network-aware and/or multi-user. Know the difference. Network-aware means the computer can access network resources (printer or hard disk); it does not mean it is also multi-user. Multi-user means two or more people on different computers can access the same data at the same time, which means it is also network-aware.

For example, Lillian can be on her computer entering payments, while Devin is on his computer entering a new customer, at the same time that Lauren is editing a customers address. If you are considering this type of arrangement, or think you may in the future, be sure to ask each software company if its programs are multi-user, as well as what the cost will be for each additional computer. If you have multiple locations and want the same program in each, ask about additional location costs. Do you also want the program on your laptop you take home or take on business trips? Be sure to ask how much the added service will cost.

The Learning Curve

A couple of the least-understood costs related to buying software are training and ongoing-support issues. Some people need more help than others when learning a new program or dealing with problems after the training is complete. When you choose to computerize part of your business, you should have an ongoing relationship with the software company. Trust me, everyoneeven the most computer-savvy customerswill have some problem crop up after the program is installed. Thats when a customer-support program becomes vital.

Is your software provider going to be around when you need customer service the most? Think about it: Not having access to your financial data can be a real inconvenience at a minimum, and a disaster in the worst case. If you are trying to get your customers bills in the mail and are having problems, you need help right away, not a week later.

Do your research. Find out how long software companies has been around; how many customers they have; what their hours of operation are. Does the company answer support calls in-house, or will your call be forwarded to a support team in India? Can you talk to a live person or is support only via e-mail? Can you speak with a person immediately, or do you have to wait on hold forever or leave a message in a voicemail system? When you have a problem, you need help, not frustration.

Has the company weathered some slow times in the past, but bounced back? If it is a relatively new company or has a limited number of customers, consider that it may not be around in a couple years. Remember the old Y2K problem? A lot of companies were deserted by software providers that had dissolved, and they had to scramble at the last minute to find, install, convert data and learn a whole new program.

Price Points

All of the significant, legitimate software companies charge for help. Free help is a thing of the past. Ever hear the saying, you get what you pay for? Some companies will include a certain amount of time/calls that will be included in the purchase of the software, while others will charge separately. Not all will tell you the policies and pricing for support up front, so its your responsibility to ask. Many have moved to an annual fee that is all-inclusive for support, maintenance releases, discounts on updates, etc.

This all-inclusive annual fee has been the standard in major company computing since the 1950s and is becoming the standard in small computing. Even Microsoft has moved to annual fees for some customers and will likely do the same for all customers in the very near future. Expect this to become the standard in the coming years, similar to the way the cell-phone industry has moved to fixed-monthly fees with free long distance, roaming, etc.

Final Notes

The single-most important issue is to do your homework; you are the one spending the money and having to live with the decision. Make your hit list. Ask questions. Take notes. Remember, no matter which program you pick, there are going to be things you will have to change in order to adapt to the package, so be flexible. Dont forget your budget, either. Most of us would love to have a Ferrari, but we settle for less-expensive reputable vehicles. And dont get carried away with features that youll never need but will pay dearly to own.

Finally, play detective and find out everything you can about the software company. Find a provider that has a software program that suits your needs and a customer-support system that promises to keep you afloat in desperate times. Dont rely too heavily on customer testimonials. After all, would you give out the name of someone unhappy with your product? Probably not. With a little sleuthing and some good common sense, your software purchasing decisions should be as solid as a rock. 

Michael Kelley is president of Dilloware Inc. and a partner in MiccaSoft, positions he has held since their inceptions more than 25 years ago. Dillowares premium software package, The Billing Clerk, provides recurring billing and accounting software to the self-storage industry. For more information, call 800.880.0887.

This doesnt mean you need the perfect building and an exceptional layout. You need to be ready for whatever happens, knowing unanticipated events often kill businesses. By focusing on how building design influences business operations, you can plan accordingly.

The Main Attraction

Looks are the most important aspect of your building. Does your facility draw prospective customers just because it looks good? An attractive facility can help close a sale more than 80 percent of the time. A clean, nice-looking building makes a statement and sales pitch more powerfully than any salesperson or advertising collateral.

Ask yourself, Does the care and attention given my facility send the message Im serious about serving clients? A buildings age and ceiling heights are not as important as cleanliness, neatness, security or sprinkler systems designed for records storage.

Prospective customers look for all of the above. Make sure you provide all of them, especially if the competition does. Take a look at other facilities and make sure your building sparkles in comparison.

Price to Pay

The cost of storage is what you are paying in rent per number of revenue-generating cubic feet of storage. While some refer to storage in numbers of boxes, I prefer to use cubic feet, reducing all sizes of boxes to a common denominator. Todays market pricing and ingenuity allow you to compete without focusing primarily on building efficiencies. Its appropriate, however, to understand the economics of 70-foot catwalk and 40-foot order-picker facilities so there are no surprises down the road.

A primary cost is labor, particularly when business grows to the point that youll need more than one warehouseman. Labor needs fluctuate depending on the nature of your customer base. For instance, medical-records storage demands more service than manufacturing, which will be far less active.

Generally, it takes one warehouse employee for every 100,000 cubic feet of storage. Low-ceiling, large-footprint buildings need more labor than high-ceiling, small-footprint buildings. Catwalk systems typically require more labor than order-picker systems. Its also more difficult to manage in a large square-foot, low-ceiling building compared to a small-footprint, high-ceiling facility. Its important to understand and evaluate these costs before you jump in, but they are not the only concerns.

Even your basic operating costs are determined by your building. Your geographical location, the buildings design and market demands drive decisions involving heating and air conditioning. If the market demands that your facility be heated and air-conditioned, then your buildings design and its insulation will affect utility costs. Further, if the sprinkler system is wet you will be forced to keep the facility above freezing; if its a warm climate, AC may be necessary for comfort as well as preservation of the records.

Insurance

The ability to secure insurance and its cost is often driven by the buildings design, and one of the most important features is how the sprinkler system is laid out. Youll want to know, for example, what the added liability may be if your sprinkler system isnt adequate or designed for the purpose of records storage.

Ill never forget the first time a customer audited our facility, a brand-new rental property with 22-foot ceilings. The sprinkler system extended from the ceiling to every row of storage racks. The entire 20,000-foot facility was spotless and ready for the white-glove treatmentor so we thought. When the client arrived, we proudly escorted him through the facility with smiles on our faces. As he quietly took notes, we asked if everything had checked out OK. He said would send us a report after reviewing his notes.

When the report arrived, it indicated our sprinkler system was not designed for the purpose of records storage. We had previously believed it was more than adequate and hadnt taken any actions or precautions to accommodate or reduce the risk. The report took us by surprise. In the end, we were able to keep the customer by telling him we would accommodate his needs in our new facility, which was already blueprinted with a sprinkler system designed for records storage. We learned that having a hydraulic engineer inspect and evaluate a sprinkler system is a good idea. For your site, be prepared by knowing requirements, liability and insurability issues before you start.

Sales and Acquisitions

While every successful business has its eye on long- and short-term profits, and how the facility will help to drive (or reduce) those profits, an area that is often overlooked is the role the facility plays in a potential business sale or acquisition. A component value of any commercial records center is efficiency.

Prospective buyers will often adjust their offers based on the cost of moving the inventory from a low- to high-efficiency facility. High-efficiency facilities equate to lower operating costs, higher profits and better EBITA numbers. As a separate note, having available expansion space is a positive factor when selling a business, while a full facility may reduce the selling price.

Any building that meets the needs of the industry, allows you to compete in your market and provides an acceptable level of owner risk is a strong candidate for successful records-storage operation. Reduce the surprises by knowing the factors that control your long-term success before you sign the lease. Some well-seasoned veterans of the industry might see this frank and open discussion as a deterrent to entering the market. Quite the contrary: Well-informed operators are an asset to any market or industry. 

Lee A. Miller is president and CEO of Andrews Software Inc. (ASI) and Andrews Consulting Services (ACS). ASI provides a suite of software products for commercial records centers, document-destruction companies and media vaults. ACS specializes in RIM consulting services for managing information assets. During his 20-plus years in the records-storage business, Mr. Miller designed and managed the construction of four facilities totaling nearly 300,000 square feet. For more information, call 800.807.2093; visit www.andrewssoftware.com. 

The first step in starting a business is developing the plan, the cornerstone of which is the business model. Just as self-storage ranges from mom-and-pop operations to multimillion-dollar chains, records storage centers vary in type and style. Your business model needs to reflect the individuality of your organization.

A business model describes how an organization functionsa general template of major activities. It identifies the companys products, services and customers. It also provides information about how a company is organized and generates revenue and profits. Business models combined with strategy should guide major decisions.

The Components

The records-storage business model includes the following components.

1. Profit Model:

Profitability is determined before you begin business. Under capitalism, methods of calculation differ. Often, it is the difference between sales price and the costs of products or services. The term also refers to the value added after production factors have been credited.

2. Pro Forma Model:

This projects the revenue and expenses along with sales goals. A pro-forma document is provided prior to business activity as a model for the actual transaction.

3. Facility Model:

There are more than 100 ways to design a facility. Your goal is to optimize storage and work areas to make the most money.

4. Technology Model:

Technology is used to improve margins (value to the customer) and decrease cost (to your business). Include it only if it does both.

5. Services Model:

Services define your business. A service is the non-material equivalent of goods. Service provision has been defined as an economic activity that creates benefits by facilitating either a change in method, a change in process, or a change in an intangible asset.

6. Pricing Model:

Pricing is based on cost plus margin for any service and is one of the four aspects of marketing. It is the manual or automatic process of applying the fee for purchase and sales orders, based on factors such as: fixed amount, quantity break, promotion or sales campaign, specific vendor quote, price prevailing on entry, shipment or invoice date, combination of multiple orders or lines, and many others.

7. Marketing Model:

What do you do to get in front of prospects? Marketing is the process of moving people closer to making a decision to purchase. If it doesnt facilitate a sale, its not marketing.

8. Sales Model:

This is anything you do to close new business. Mastering sales is considered by many as the art of persuasion. Others define it as a systematic process of repetitive and measurable milestones, by which a salesperson relates his offering, enabling the buyer to visualize how to achieve his goal in an economic way. Several types of sales exist including direct, consultative and complex sales. Complex sales vary from other types in that the customer plays a more proactive role, often requiring a response to a request for proposal.

9. Operating Model:

This determines how you will provide your services. Business operations are all activities that produce value for the stakeholders, owners, employees and customers. Business operations encompass three fundamental management imperatives that collectively aim to maximize value from business assets: generating recurring income, increasing value, and securing income and value.

10. Finance Model:

Finance addresses ways to raise, allocate and use monetary resources over time, taking into account the risks entailed in projects. Finance measures success and profitability and may incorporate the study of money and other assets; the management and control of those assets; and managing the risks.

11. Sales Compensation Model:

Compensation is the remuneration received by employees, or the pay structures within sales organizations. Some of the main issues deal with how to attract, retain and motivate employees. It addresses pay structure, variable rewards, benefits, stock options or bonusesall of which can be allocated in such a way to retain top salespeople.

12. Exit Strategy Model:

The final step is to plan for the ultimate sale of the business to maximize stakeholders wealth. An exit strategy, exit plan or strategic withdrawal identifies ways to terminate company ownership or the operation of some part of the company. Entrepreneurs and investors devise ways of maximizing their wealth and the capital they have invested in a company. The most common strategy is to sell the equity position to someone else at a predetermined value, which is identified at the beginning of the venture. 

Cary F. McGovern is the principal of FileMan Records Management, which offers full-service assistance for commercial records-storage startups and sales training in commercial records-management operations. For help with feasibility determination, operational implementation or marketing support, call 877.FILEMAN; e-mail [email protected]; visit www.fileman.com.

Internet-based programs aim to integrate all areas of your storage operations, allowing different users to share data more easily and providing an interface with your website. With this accessibility, potential customers can check unit pricing and availability; existing clients can review their rental histories, check their accounts and make payments. Web-based systems receive move-ins and payments from your website in real time.

Web systems have other office-related benefits. For example, if you use call centers to answer phones when your office is closed or managers are busy, the center may access data via the web, look up clients, take payments or rent units. Web-based systems also integrate with kiosks or automated attendants similar to those used at airport check-in. All transactions, no matter where they are made, update your web-based system in real time.

The flexibility of this system allows owners, accountants and managers to stay abreast of all operations anytime, anywhere. They can monitor financials and occupancy, or change parameterssuch as unit pricingfor maximizing rental revenue. The process of enabling software to adjust rental rates for vacant units based on demand or occupancy is a proven method in the airline and hotel industry. Maybe its time to use this practice in self-storage as well.

Web-based systems also provide consolidated reporting systems. Users can collect reports from individual stores, combine them into summary documents, and have the ability to better analyze trends at multiple facilities. Accountants can easily tie one or multiple stores transactions into accounting systems from anywhere. This is a huge advantage.

Design Concepts

A variety of Internet-based programs are available and, while they all offer remote access, they all have differences in design. Common software concepts using the web are either thin-client, terminal-services or smart-client programs.

With a thin-client program, a facilitys computer no longer holds data, but the entire database is stored on a central server. Websites and remote users can tie into a database in real time, and its possible for authorized users to view up-to-date reports and transactions from anywhere.

At the site level, users have to constantly download every document, screen or report from the central server to view, print and work with data. Users no longer have a Windows-style interface but use a web browser, which doesnt always support Windows-typical functions such as drag and drop, undo and redo, copy and paste, or on-screen help.

When considering thin-client programs, pay special attention to the amount of data passed back and forth between the self-storage site and the central server. Checking balances or browsing through lists of charges, units or customers histories involves huge amounts of data. Sending information from the server to the self-storage office is often slower than recalling it from a Windows program. Even with broadband Internet access, operators may notice the system slows as the database grows.

Printing leases and receipts, and generating hundreds of invoices that must be sent from the server to the self-storage office may take longer than it used to with your previous software program. This is a definite drawback for businesses that input mountains of data and access records constantly. Further, if Internet connections are temporarily out of service, accessing the central database comes to a halt.

Terminal Services

Terminal services access records on a central server much like a thin-client system. They often rely on SQL databases, which are safe and less expensive than Oracle databases. Managers dont have to connect to the server via a web browser. Instead, terminal services give users an interface similar to Windows-programs and typical tools such as on-screen help.

Like a thin-client program, terminal services rely on the Internet connection to access data and, because files are downloaded from the server, it can be a slow process. Additionally, terminal-services architecture offers software developers limited scalability, resulting in potential problems of speed and data integration. On the upside, it can deploy websites for online payment and account management while running the application at multiple sites. This gives call centers real-time access and reporting to larger numbers of off-site users.

An important point before moving on: Thin clients or terminal services require a sizable investment in expensive servers because servers handle all transactions. None of the workload is pushed to computers at the self-storage facility.

Smart Client

Another approach to designing web-based systems is Microsofts .NET concept, a language and standard for tying applications together via the web using Microsofts user-friendly design. Programs written in .NET eliminate sluggish speeds and continue to operate even when Internet connections are down.

At the site level, .NET is considered a smart client because an identical copy of the database resides on the central server and the facilitys office computer, giving managers instant accessibility to all operational functions. They can review tenant records and unit availability or print any number of documents quicklywithout enduring long download times.

With .NET, programs run as fast as Windows systems and require fewer server resources than thin clients or terminal services applications. Changes such as move-ins or payments are saved to the central office and on-site computers immediately. Changes to rental rates or other adjustments at the central office translate to facilities in real time. When Internet service is down, central office and storage computers have access to all data and continue operating, syncing up when the Internet connection returns.

Microsofts .NET provides reliable, cost-effective SQL Server databases, meaning self-storage operators who prefer to control their own data no longer have to rely on software companies to host them.

Round-up

Internet-based systems use cost-effective technology and give self-storage operators control over their extensive information. Off-site operators have better, faster access to facilities data. New programs using the web can tie together operational components such as websites and accounting programs, and provide better access to timely reports.

While technology has changed since the DOS days, the need for outstanding customer service and support has not. If you decide to migrate to a web-based system, make sure you find a provider who has designed an efficient program and operates a quality customer-support center that answers calls immediately. Your self-storage business deserves no less. 

Markus Hecker is marketing director for SMD Software, maker of SiteLink and SiteLink Web Edition for self-storage and mobile-storage operations. For more information, call 919.865.0781; visit www.smdsoftware.com. 

The Inside Self-Storage Scholarship Program encourages educational pursuits and rewards the hard work of students closely affiliated with self-storage. Entrants are required to work in the industry or have immediate family members employed by self-storage or related companies. Dozens of qualified candidates applied, including high school students and seasoned professionals. This years scholarship winners demonstrated an outstanding commitment to completing higher studies and a determination to succeed.

In January, Inside Self-Storage awarded five $2,000 scholarships to:

Andrea L. Hart

Store America 
Melissa Ann HoehlerS&A Services LLC 
Chad PlunkettCapco Steel Inc.
Nicholas WalkerKiwi II Construction Inc.
Dana Waterman

Andrea L. Hart
Age:

17 
Major/Field of Study: Elementary Education 
College/University: State University of New York, Oneonta 

When she was young, Hart wanted to become a babysitter. Her goal has evolved since then but still involves childrenshe intends to be a teacher. Following graduation from Canastota (N.Y.) High School, she plans to enter State University of New York Oneonta for a degree in elementary education.

An honor roll student, Hart is also captain of the varsity cheerleading squad, president of the art club, a member of the Teen Aids Task Force and New Ventures Program, and last year was voted into the junior prom and homecoming court. During the summer, she volunteers at a vacation Bible school and is a buddy at the local Special Olympics. She also finds time to participate in the Reading With Partners program.

Hart, who comes from a family of six, has worked since she was 15 to save enough money to buy a car, she says. Her jobs, in keeping with her first love, involve children. She has worked at the Canastota Childrens Council Summer Enrichment Program and in the Child Watch Room at the YMCA. She was a kindergarten intern and a volunteer for the Homework Club at the local elementary school. In her sophomore year, she was lauded by the Lions Club with its Young Leaders in Service Award.

I have been very lucky to have always worked with children, she says. This generous scholarship will help me avoid the pressures of financial hardship while keeping up my studies.

Melissa Ann Hoehler
Age: 22 
Major/Field of Study: Elementary Education 
College/University: University of Oklahoma 

Educating the young is firmly in Hoehlers sights. A sophomore at the University of Oklahoma, she has aspired to teaching since she was a child. The oldest of five children, she is the sole provider for her tuition and livelihood. Initially, she chose business as her major, believing it a practical investment in her future. After a stint of business classes, she was convinced to follow her first loveelementary education. I realized its not about the money, she says. Due to her class load and volunteer commitments, she can only work on weekends while attending school.

Hoehler is a member of Chi Alpha, an on-campus ministry that performs charity work. She has served meals to families before football games and assisted residents of a veterans living center with meals and laundry. In addition to her academics, Hoehler is committed to 68 hours of non-credited field experience that includes 30 hours a week tutoring. She devotes another eight hours weekly tutoring a first-grader. In her volunteer work at a shelter for at-risk youth, she works with children ranging from infancy to 18.

I have established a relationship with many of these children and they feel comfortable opening up to me, she says. I have a passion for working with children and dream of making a positive impact on the lives of many.

Chad Plunkett
Age:

19 
Major/Field of Study: Film 
College/University: San Antonio College 

Plunkett sums up his early life with one word: survivor. His parents divorced when he was 6 and, while in the custody of his mother, growing up wasnt easy. Movies were my only escape from the harsh realities of my life, he says. At 13, he moved to Texas to live with his father, developing hobbies such as snowboarding, hunting and fishing. He discovered travel, which enhanced his interest in history.

In eighth-grade, Plunkett began playing football and continued the sport through high school. The discipline and being part of the team showed me how to work well with others, set goals and keep striving for excellence, he says. He also assisted the high school theater department.

Plunkett decided in his senior year to follow his passion for filmmaking. Now a freshman at San Antonio College, he is studying radio and TV film. He participates in the college film club and is making a film on the effects of Hurricane Katrina.

Studying film in England for a semester is one of Plunketts goals. He hopes to continue his education at the University of Southern California. He has already made a start on his lifes ambition by making a marketing film, which was shown at the Self Storage Association and Texas Mini Storage Association tradeshows. Part of the film showed the step-by-step construction of a five-story building.

Seeing the hard work his father applies to his life helps Plunkett strive to meet his own goals. Being the son of a self-made entrepreneur has shown me anything is possible in life, he says.

Nicholas Walker
Age:

19 
Major/Field of Study: Business 
College/University: University of San Diego 

Walker grew up around self-storage. Since he was 3 years old, his parents have taken him to storage expos and tradeshows. His father is co-owner of Kiwi II Construction, Murrieta, Calif., which supplies steel components to the industry.

Walker graduated from Hemet (Calif.) High School with highest honors. He was involved in the student council and served as class secretary. During his last two years of school, he assisted his legally blind grandfather with day-to-day living and online stock trading.

Before entering the University of San Diego (USD), Walker interned with Kiwi, estimating projects with the companys new computerized program. The experience exposed him to the competitive practices of the business world.

Since entering USD, Walker has devoted his time to his studies, resulting in a 4.0 GPA freshman year. After I graduate from college, I hope to bring new knowledge and different ideas to the self-storage business, Walker says. My role model is my father. He has shown me it is always possible to overcome any situation no matter how much the odds are stacked against you.

Dana Waterman
Age:

21 
Major/Field of Study: Child/Adolescent Psychology 
College/University: State of New York, Stony Brook University 

Waterman will be the first member of her family to receive a college degree when she graduates from State of New York, Stony Brook University. She is in her third year majoring in adult and child psychology. Although most of her time is dedicated to working and school, she helps raise money for cancer awareness and participates in a school-supplies program for Iraqi children. She also finds time for hobbies that include crafts and photography. Persistence, hard work and ambition are the reasons she has achieved an honors-level GPA, she says.

Watermans job at a storage facility taught her to provide customers with trust and reassurance. Her responsibility for maintaining the upkeep of the store has given her self-reliance and confidence in many areas including academics.

The prospect of helping others with her psychology degree drives her to achieve excellent grades. Waterman enjoys communicating with children, and her ambition is to give each child the time needed to improve and to overcome challenges.

Watermans decision to enter the psychology field was also fueled by a long-time family friend, Wayne Rothwell, a psychologist for more than 30 years. He inspired her to enter the field of mental health, she says. If not for his advice and support, I know I would not be where I am todayready to start a future, ready to impact other lives. 

Data entered into the wrong field is the perfect setup for big problems. For example, if someone mistakenly enters order information in the field designated for ZIP codes, the ZIP code report will obviously be inaccurate.

Same goes for unit numbers. First, let me ask, Do we really need strange and difficult unit numbering systems? Some facilities have very elaborate unit-numbering systems that will disrupt most gate systems and create havoc on reports. As an example, a facility may have a unit labelled 45AC30 (unit 45, corridor A, unit type C, 30 feet deep). Unfortunately, all this information can clog up even the best software. Often, facilities take unit numbering to the extreme then never run reports to itemize all the categories.

Instead of creating a convoluted numbering system, it would be far easier to use descriptions in the software. A system using multiple numbers and letters for units confuses customers as well as the software and gate systems. Keeping data simple is one of the best ways to assure smooth operations.

Due Diligence and Demographics

When it comes to selling a property, part of due diligence is to check a facilitys management-software reports. How does the auditor know all rents have been billed correctly? How does he know if all customers are billed the correct price? The audit program in the software should answer many of these questions. If data entry is haphazard, and mistakes are found, it can be costly for the seller. Looking at it from another perspective: At a cap rate of 8 percent, every dollar you throw away because of data-entry mistakes costs a $12.50 reduction on the sales price!

In another example, about a year ago I was asked to assist a self-storage facility with the planning of a new site. The owner had purchased a lot about two miles from the original facility. This decision, he said, was determined by his customer base. After running a report from his management software, we realized he was completely wrong. In fact, 77 percent of his customers came from a completely different ZIP code. He was basing his building decision entirely on anecdotal evidence and hearsay, which were flawed. The simple ZIP code report saved him from making a costly mistake.

More often than not, the evidence locked up in your data may prove to be very interestingonce analyzed. Business vs. residential, length of stay, male or female, previous addresses, reasons for storing, alternate details, license numbersthese all change over time and analysis of the change may uncover fundamental shifts in demographics. But, you cant analyze any of these trends if you dont capture the data accurately in the first place.

On Training

Be sure your employees know how to use the software and what data must be entered when renting to a new tenant or making changes to an existing file. Train staff to be very specific, concise and careful. A good philosophy is to tell everyone, Enter the data and information as though you will not be here tomorrow. Although it sounds strange, it reminds those on duty that communication must be succinct and understandable, or its worthless. For important time-sensitive communication, train employees to use the alert message function of management software.

Matters of Security

The importance of diligent data entry cant be overstated when it comes to security. Although self-storage facilities may be vulnerable to theft, security systems can alleviate the threat. One important step is to ensure accurate data input of tenants names and addresses. At any time, records can be requested by law enforcement authorities, Homeland Security or other agencies. The reasons for a search can be many, making it critical to provide these investigating agencies with reliable data.

Software vendors are continually creating additional information fields to software to satisfy users. Many fields require entry of data that is significantly important for operational and security reasons. Ive heard many managers excuses for not filling in these fields: We didnt have time or I didnt get his number. Nobody is so busy they shouldnt fill out the required fields. Its ludicrous not to keep a minimal amount of data on tenants.

Case in Point

In a recent court case, a facility had rented a unit to an individual (whose name was on the lease) but his place of employment paid the storage fees. The company folded and the storage fees fell into arrears. The storage facility took court action against the personnot the companyto recover the fees, because his name was on the contract.

Unfortunately, the original contract was not accessible because the manager who had possession of it was no longer employed by the facility. The defense demonstrated the companynot the tenantwas liable because the company had paid all the fees. In retrospect, and with reference to the importance of complete data entry, if the tenant and his company were both identified as responsible parties on the contract, the facility would have had redress. In this case, the facility lost a good sum of moneyall of which might have been recovered if the data accuracy had been up to snuff.

When there is a dispute (and you will have one!), your documents and computer records will form the basis of your defense not only with a tenant but possibly in court, as well. Make sure your records are legible, accurate and easily found by employees at your site. And remember that the few minutes it takes to input the necessary data when a new unit is rented can save you time, money and frustration later on. 

Dallas Dogger is the CEO of StorMan Software, developer of the award-winning MultiView enterprise suite for multi-facility operators. MultiView is used by major self-storage operators in Australia and New Zealand. StorMan uses 4D technology, the same software tool used by organizations such as Merrill Lynch, NASA and Yahoo. For more information, e-mail [email protected]; visit www.storman.com. 

Can you increase sales by providing better customer service? Is it possible to turn your renters into raving fans? Yes, you can create devotees through incredible service. A solid fan-base will increase rentals and improve your referral program. If fact, you can decrease your marketing budget at the same time.

Initially, you must know what level of customer service you are providing, and what improvements you would like to make. Start off by identifying the best ways to take care of customers. For example, how are you treating people when they first call? This is the first impression they will have of your company and likely will determine if they rent a unit from you or go elsewhere.

Also notice how people are treated while they visit your store. This is when theyll form an opinion about how much you care about their needs. Finally, once the unit is rented, look at your level of service. This may determine tenants length of stay and their future storage decisions.

Use these questions to develop an effective customer-service program, and you can take your self-storage operation to a new level of success.

Customer Care

To develop an effective program, you must evaluate the best and most effective methods of customer care. To begin, develop systems that will ensure that each and every tenant is receiving the highest level of service possible.

For instance, develop and implement a phone-sales presentation that will educate, build trust and show the value of renting with you. If done properly, the phone presentation will provide all the differential advantages of storing at your facility. It will also give you the opportunity to build a rapport and set yourself apart from the rest of the competition.

The First Visit and Thereafter

Once someone visits your site, its vital you stay focused on providing exceptional care. It starts with your welcome. Treat everyone with the same level of respect and deliver the same warmth and enthusiasm you provide over the phone. This not only makes customers comfortable, it confirms you are committed to providing them with an excellent storage experience.

If you arent careful, its easy to forget about someone after they rent a unit. It happens frequently throughout the industry. What if you were the exception and carried through with giving people great storage experiences throughout tenancy?

In other words, your customers receive great service on the phone and when they rent units, and they also have a great experience during their rental period. Would this level of consistency throughout the entire customer experience allow you to create a fan club?

Begin to measure how many customer referrals you receive as well as how many previous customers return, and youll discover how effective this strategy is. In fact, over a period of time, youll probably find that repeat business and referrals will outpace almost every other form of advertising and marketing. This may help lower your advertising and marketing budgets, and even allow you to charge more for that top-notch service.

Final Notes

Unfortunately, a brilliant level of customer service is the exception and not the rule in most storage operations. When it is found, customer referrals are generally much stronger because renters are more inclined to tell friends and families about how great a facilitys service has been.

As a rule of thumb, for every outstanding experience customers encounter with a company, they will tell two to three people. For every bad experience they will tell eight to 10 people. Its vital you minimize the negatives and maximize the positives. One way of achieving this is by continuing to provide the highest level of servicefrom initial phone calls, to first visits and through every opportunity that arises during tenancy.

One final note: On-going training is vital to ensure each person involved in the selling effort is providing the same level of sales performance. This helps develop consistency so all tenants receive the royal treatment. Over time, your new delivery of care will improve your ability to set appointments, increase customer visits, transform renters into raving fans and, ultimately, raise the rentals at your site. 

Brad North is founder of Advantage Business Consulting, which specializes in on-site sales, marketing, feasibility and operational training for the self-storage industry. He has produced two live videos and a workbook, Maximizing Your Sales and Marketing Program, designed to help managers improve their sales and marketing efforts. Mr. North most recently launched A TelePro, a mystery shopping service that assists in educating, evaluating and improving the phone-sales performance of self-storage professionals. For more information, call 513.229.0400; visit www.advantagebusinessconsulting.com. 

Accepting timely payments is a must for your business to survive; however, in this ever-changing world where everyone is on the move, conventional methods limit a business' ability to collect on a timely basis. Businesses are forced to create solutions to meet customer demands while streamlining accounts receivables. Fortunately, electronic payment systems can save the day.

Electronic payments are available in several varieties and are accepted through different payment portals. As payment technologies have advanced, so too have the needs and expectations of customers. Traditional cash and check payments are now being processed with debit/credit cards or by direct withdrawal from checking or savings accountsvia the Automated Clearing House (ACH). These payments are made in person, over the telephone, or online through a secure website.

ACH processing utilizes the Federal Reserve's financial backbone. This is the process of transferring funds directly from your customer's checking or savings account to the depository account you designate during the set-up process.

The ACH system is simple and easy for businesses and customers to use. All you need is the routing number and account number located at the bottom of a check, and funds can be transferred from your customers' accounts. This eliminates paper checks altogether.

A good ACH service will provide you with control, reporting and reconciliation tools needed to track and monitor your ACH activity. Since the start of the 21st century, paper-check usage has been on a 5 percent decline annually, while ACH transactions have increased by more than 13 percent. In fact, in 2003, for the first time in history, electronic payments were used more often than paper checks, according to the Federal Reserve's spring 2005 report.

Modes of Capturing Payments 

The Internet is increasing in popularity as a payment portal and the fastest-growing communication medium in U.S. history. Fading quickly are the fears Internet users once had about purchasing goods and services online. According to Internet World Stats website, more than 200 million Americans are surfing the web, a huge indicator that ecommerce is changing our lives. In fact, 65 percent of Internet users had purchased products and services online by the end of 2005, according to the Dallas Morning News. It's clearly time your self-storage customers had the option of online payment.

ACH payments also can be conducted over the phone. Many service providers offer a "phone-in" option to attract additional payments from customers without Internet access or who remain leery of it. Phone payments can and should be offered via a toll-free number and made available for use 24/7. By offering both phone and online transactions, you can capture the greatest number of timely.

Moving Ahead 

Choosing the right payment provider from the crowd isn't as simple as picking up the phonebook. When evaluating potential providers, consider the following:

1. Pick a service that offers multiple payment options as well as portals for payments to be made. The ability to offer both ACH and credit-card payments is key to giving customers the flexibility they want. But don't stop there. Implement the options in as many places as possible. Allow tenants to come into the facility to make payments. This maintains face-to-face contact and keeps you at your best. At the same time, offer the telephone option for those who don't want to go online.

2. Don't overlook website integration, which enables customers to make payments directly through your website. Customers should be able to visit your site and access every payment they've made using the service, increasing your web traffic by as much as 15 percent. More visitors to your website means it has more merchandising and sales power. Don't use your site merely to advertise the facility: Use it to make more money.

3. You will need a provider who is offering great customer service, a company that will go above and beyond for you and your customers. Remember, a friendly, helpful customer service department should be there to represent you and your business.

4. Software integration allows all electronic payments to be imported directly into your management software. This saves huge amounts of time each monthtime that can be used for customer service or focusing on marketing. Imagine, all those checks you once had to handle will now be automatically deposited into your bank account and propagated to your management software, eliminating manual data entry.

5. Keep an eye on security. Advanced Encryption Standard (AES) is the 256-bit encryption method adopted by the National Institute of Standards and Technology. AES is a federal standard and has been accepted by HIPAA and other agencies for use in securing sensitive information. Pass the responsibility of security onto your service provider. But first, be sure the provider is CISP compliant and uses the latest in 256-bit encryption.

Finding the right service provider to offer electronic payments can save your organizationand your tenantstime and money. Throughout the past three years, electronic payments have moved from a "nice-to-have" to a "need-to-have" service for successful self-storage operators. Electronic payments are a benefit for everyone involved.

Allowing customers to talk to a live representative or use a round-the-clock automated system ensures you've employed every tool available for your business. Never miss another payment or hear the dreaded "the check is in the mail" again. Let the ease and simplicity of electronic payments save the day for your business. 

David Batterman is the regional sales director and Brent Hoffmann is vice president of sales for Payment Service Network (PSN), a provider of electronic-payment processing solutions for the self-storage and multifamily housing industries. PSN's solutions combine the latest in ACH and debit/credit card processing solutions together with phone-in, online and face-to-face processing environments. In addition, services work with organizations to streamline accounts receivables, increase the number of on-time rent payments and provide customer-preferred payment options. For more information, call 866.917.7368, ext. 5088; visit www.paymentservicenetwork.com. 

• They allow managers to concentrate on core responsibilities and increase productivity.
• They provide additional payment options to offer customers, increasing retention.
• As the first self-storage owner to offer the service, you might distinguish your site from the competition.

• Fear of the unknown: Although electronic payments help to streamline accounts receivables, it's considered a fairly new way of doing business. As with all change, the unknown can be your biggest hurdle. Your new payment processor should provide training and support.
• No physical cash contact: There is a certain sense of comfort in knowing you have the payment physically in your hands. Still, a good service provider will provide you with reporting tools to receive instant-payment notifications.
• Less face-to-face interaction: Truth be told, customers who want face-to-face communication will continue to deliver their payments personally. Electronic payments offer managers more time to give personal attention to new customers and those tenants who prefer to come in.

While a large number of self-storage operators are sticking with the traditional business scheme, others are adding services to differentiate themselves and generate traffic and income. One self-storage facility in Australia now includes a McDonalds restaurant!

Maybe youve considered the potential of extras but have been unsure about what goes hand-in-hand with boxes, storage and secure facilities. As several self-storage companies have discovered, records storage fits the bill. The idea isnt new, but its gaining momentum.

Ready?

Consider that your business already has two essential assets for successful records management: an established customer base, which consists of great candidates for records-storage services, and the warehouse. If your customers are already satisfied with your service, chances are they will favorably consider your company to safeguard their records. To provide this critical service, all you need is a little imagination, a sound business plan and the desire to do it.

Learning by Mistake

Mismanaging critical business records can result in disastrous consequences. Moreover, dealing with events after the fact can be dangerous and costly.

Recent media reports on the mishaps of several well-known companies have thrust records management and corporate accountability into the spotlight. As weve all seen, noncompliance with industry and government regulations can lead to litigation, financial penalties, bankruptcy and jail sentences. Poor or inadequate recordkeeping plays a major role in such cases. And, because records can easily get lost or fall into the wrong hands, society is now demanding higher standards for the accuracy and availability of content.

Additionally, weve all experienced a sense of panic when a document or record somehow gets deleted. Now, imagine the lost document contained proof of an accounting infraction, or was the only copy of a sales agreement for a million-dollar order!

Consider, too, some of the main events of our generation: terrorist attacks, natural disasters, changing technologies. Its imperative companies document plans for their vital records and business resumption in the event of such scenarios. Most plans require records be maintained offsite within a specified distance.

With issues such as these grabbing headlines, records management, which was once a relatively sleepy and quiet concern, has turned into a thriving business. Moreover, with an ever-growing customer base it seems here to stay. An unlimited number of law firms, insurance companies and other businesses find it cost-prohibitive to store records onsite when the records center can do it for less.

Once business owners are familiar with records storage and realize its value, they pick up the phone, call the first number they find, barcode the boxes and out they go. As long as they have a list of what is stored at the records center and the boxes are no longer cluttering their office space, the problem is solved. Its a headache reliever, for which they are willing to pay.

Another reason records management is on the rise is real estate. Records dont need to be housed in premium locales. Developers can invest in a less-desirable area and arm themselves with sophisticated security and tracking devices.

Whats in Store for You?

Records management is constant. You sell an account one time and it keeps growing, even if you do nothing. If you look at the statistics, an average account grows at a rate of 12 percent, and larger accounts even more rapidly.

Another benefit is a stable customer base. Once you win an account, it tends to stay with you. As long as you provide good service, its unlikely a customer will ever move to another vendor. Deciding to switch facilities in records management means moving inventory and, in most cases, paying costly out-charges from the current provider. Many customers dont feel comfortable moving their critical information, much less paying termination fees.

Additionally, records management, although it has become far more high tech, is still a rather simple business model with minimal liability. Claims for breakage and damage are virtually eliminated. Through the use of standard industry contracts, financial exposure is typically limited. Customers who require excess values pay for the additional insurance.

Finally, another great attribute of the records-management business is the sale value of the established business. There is an active market for existing records management operations.

Enter: Records-Storage Software

When people think record storage they may think low-tech and visualize pallets, forklifts and warehouses. These are typically the tools of storage companies. On the other hand, true records management is the discipline of managing records to meet customers operational needs, accountability requirements and community expectations.

Records-management software enables users to attach rules to the system to perform specific functions, such as deleting or moving records to a data archive, either physically in boxes or electronically on storage devices such as tapes.

Software should be the foundation of your records center. It should provide everything from the fundamentals of barcode tracking of containers, files and tapes, to invoicing, Internet access and wireless scanning. Most importantly, software should provide key rules to enable you to optimize your business.

Well-established software ensures that your records center cannot make many common business mistakes. For example, something as rudimentary as not allowing a duplicate barcode number is critical. Good software protects you from making such an error.

Therefore, choosing and partnering with the most experienced and knowledgeable software provider is critical to business success. Keep in mind that you are not only buying products and services; youre buying the company behind them as well. Make certain the organization youre partnering with has a long and reliable track records in the industry. Find a company whose offerings lighten the load on your records center staff and solve your business challenges quickly and effectively. 

Christine Spisto is the marketing communications and public relations director for ONeil Software. For 25 years, ONeil has provided software and hardware solutions for more than 850 records centers in more than 60 countries, ranging from start-ups to multi-nationals. ONeils software solutions manage/track multiple types of data including traditional storage boxes, file folders, documents, tapes, from deposit to destruction, work order to invoice. ONeil also provides barcode tracking, portable printers, laser scanners, wireless handhelds and web technology, featuring award-winning RSMobile software. For more information, visit www.oneilsoft.com. 

Being a self-storage operator doesnt necessarily mean youre cut out for records storage. Answer the following questions to determine if you are prepared to graduate to become a records-management business operator.

1. Do you have the desire and drive to provide a vital service in a thriving, profitable industry?
2. Are you able to utilize your existing assets and resources?
3. Can you choose a partner with a solid, enduring software industry experience, someone who might be considered an expert provider?
4. Do you think you can create a record center vs. a warehouse, realizing that selling your services is equally as important as selling storage?
5. Do you have the proven ability to build and maintain customer relationships? (This truly is a service business. If the service level remains high and the relationship is properly maintained, your customer base will do nothing but grow).

The greater control your records center can provide your customers, the more successful you will be. The greater access you can provide your customers to their information, the more valuable you will be. The faster you can get the information in your customers hands, the more tangible your services will be.

Do you make the grade? If so, its time to get ready, set, grow!

Self-storage owners are always seeking better products to make their businesses run more efficiently. Technology has answered the call in many ways. Integration makes these technologies even better. Just about everyone prefer keypads to tire bells, right? Todays technology allows credit card systems to work with management software, which also works with keypad gate access, door alarms and video systems. The bottom line is integration works, saving time and money. When planning your system, you want to keep it top of mind.

Seamless Integration

The best integrated systems work together seamlessly. Multiple systems that are incompatible or require manual input create extra work and the potential for human error, both of which are costly.

Integration should involve as many functions of self-storage operation as possible:

• Door alarms should work with access-control systems.
• Keypads should relate to intercoms and built-in cameras.
• Customers should be able to make payments at the gate.
• Management software must have real-time credit card processing.
• Video should integrate with the event log to allow instant high-quality viewing.

All said, the more a business is integrated, the easier it is to manage.

Integration Automation

Integration that requires manual intervention misses the point. For instance, a system that allows the customer to pay via the Internet is great, but not if the site manager receives card info via e-mail and then has to manually process the payment and credit the account.

An integrated credit card payment over the Internet should process the card through the management software, bill a customers account, release the unit if suspended for late payment, and provide a receipt for the customer. That is true automated integration.

Two-Way Transfer

Most integrated operations require two-way information transfer. In one-way transfers, management software creates files of updated customer information. The data is then transferred from the management software to the security software, which reads it.

Total integration and two-way transfers allow dynamic back-and-forth communication between security devices and management software. A tenant might swipe a card at the gate, triggering the management software to process the transaction. If the transaction is approved, the management software signals the keypad to open the gate. This is one of many great features of two-way integration.

A World Awaits

Ever since the first gate keypad, security vendors have worked with customers to design products to integrate other technologies. At first, keypads handled a single code, but were advanced to accept multiple codes, each of which was assigned to individual tenants. Todays keypads can be configured with message displays, intercoms, cameras, proximity card readers and credit card readers. Individual door alarms have been added for additional customer security as well as to alert site owners against illegal entry.

Other benefits of integration include elevator and lighting control as well as biometric readers (for fingerprints) to provide heightened security for higher-risk services such as wine and gun storage.

Vendor Benders

Three types of vendors have designed products for self-storage:

1) Management software providers 
2) Security products manufacturers 
3) Suppliers of both management and security software 

Each aims to provide great products with exceptional features, but suppliers of both management and security software have a clear advantage. They specialize in fully integrated products and features. Single-product vendors cant achieve this level of sophistication. The result is integration of unique features such as:

• Manager access to video recordings.
• Internet access for customers to rent units, make payments and use other account services.
• Tenant payments at the entry keypad.
• Delivery of custom messages to tenants (to let them know about specials or just to say Happy birthday!) via the keypad.

Quality integration requires access to information anytime, anywhere. Therefore, you want your applications to be Internet capable, highly secured and flexible.

Internet communication is based on TCP/IP, the communication protocol for wide area networks as well as local area networks used for office PCs and printers. Applications and equipment that network over the Internet are a great resource, making TCP/IP critical to any vendors solution.

Additionally, applications need to be Internet secure. Databases used in the 1990s to develop management and security solutions dont work with the online solutions demanded by business today. Too often, theyve been copied onto a memory stick or downloaded off the web to be used by thieves. Hardened solutions (Microsoft SQL or Pervasive) are required for todays applications and tomorrows more sophisticated, integrated solutions.

Scalability, or the ability to size the integrated products to your needs, is highly important. Any integrated system should be able to grow with your business, handling small, large and multiple sites. If the integration isnt capable of expanding, conversion to a new system will be difficult and costly.

When shopping for new technology, dont overlook the benefits of integration. Some facility owners prefer to work with a single vendor, believing the components will work better together than if they are supplied by multiple makers.

Good integration eliminates duplicate entry, manual activity and unsatisfactory service. In the long run, smooth operations and satisfied customers yield high occupancies. 

Tom Lewellen is the commercial business development manager for Scottsdale, Ariz.-based PTI Integrated Systems, which offers a complete line of integrated management software and access-control systems for self-storage facilities worldwide. For more information, call 800.331.6224; visit www.ptisecurity.com.