ISS: We understand you're about to launch a new Internet-enabled product. Can you tell us about it?

We're pleased with the new chapter Space Control is entering. For the past two years, we've been immersed in a new product we call NX.gen, our next-generation software. What's so unique about NX.gen is it takes advantage of Internet technology, but in such a way that losing an Internet connection won't shut down your business.

ISS: And how do you do that?

We store all the critical data two places. First, site data is stored at the site, so you operate independently from an Internet connection on routine day-in/day-out functions like renting space, collecting payments, move-outs, etc. During the evening, when the site is closed, the data is sent to a secure Space Control web server, where it is stored and can be accessed by a facility owner, corporate office or regional manager.

ISS: That sounds good, but do self-storage companies place much importance on Internet connectivity?

There are multiple answers to that question. First, you can't build a product for the future by relying only on tools of the past. Second, the web is the fastest-growing phenomenon in history. Its acceptance has far outpaced other technologies, such as the telephone and television. Finally, being web-enabled is more than a way to collect end-of-day numbers. For example, we found consumers go online to shop and make comparisons. When you consider they can also make payments, reserve spaces and secure driving directions via a website, there's no doubt the Internet is not only important but essential. What's more, if a self-storage owner is travelling, he can use his facility's website to keep an eye on business via any Internet connection.

ISS: That's a real benefit in theory, but haven't others tried this already?

Yes. There have been storage packages built using the Internet. Some have been abandoned. Some are very slow, which makes it difficult to use with customers. What we're doing to make ours work reliably is the dual storage of data. If you have to connect to the Internet for every transaction and your connection goes down, you're shut down, too. Or if a site is in an area where you can't get DSL connections and must use a satellite, your customer might have to wait 15 minutes just to make a payment. With NX.gen, no matter what happens, you're protected.

ISS: How do you go about creating something totally new?

We're fortunate. I have 18 years experience in the storage industry and a degree in computer science. Our staff brings considerable industry experience, including years of facility management. The storage business really requires experience because no matter how terrific the programmers are, industry expertise is what gives you answers to hard questions.

When we started our new program, it took six months just to define the architecture. If we were less experienced, we could have done it in one month because we wouldn't have known better. What you don't know can hurt you--or your product--badly.

ISS: Who was this product designed for?

Anyone who uses it is important. Owners buy our products because they use the management tools and have their set of criteria, such as security for absentee owners. But if the day-to-day users aren't comfortable with the software, the owners will have problems. It's the employees who keep the facilities operating, and there are so many quirky things in daily operations that this release handles. In addition to the complexities of Internet architecture, a program has to be intuitive enough that first-time computer users are comfortable, yet sophisticated enough that storage veterans can astutely manage their businesses.

ISS: What new management tools does your release include?

True Yield Management is a great addition. Before, you had to spend hours examining reports and changing move-in rates. Now, you establish parameters just once and NX.gen will manage rates according to occupancy levels and seasonal trends. You can even tell it at what point of occupancy to allow move-in discounts and at what point to stop allowing them. Sophisticated software like this lets an owner take better care of business with far less digging for the needed information.

ISS: But that's not a function of the Internet capability, is it?

It can be. The software has the capability, and the Internet lets an absentee owner watch what's going on. The Internet gives owners and managers a convenient way to call up historical information to make comparisons. For example, how does the current week compare with the same week last year? Or how have the pricing changes we made 90 days ago affected our occupancy rates? Or do we need to change the rates at this point, based on the past quarter?

ISS: Do you have a favorite new addition?

Some of our more astute customers asked for a simple report that tells them three things: How much should I have collected this period? What did I actually collect? And what happened to the difference? If you know the answers to those three questions, you've gained a lot of insight. We put it all on a single page.

ISS: What does NX.gen offer that previous releases don't include?

A helpful tool for the owner is a user ID that's recorded on every transaction. There's no doubt about who did what and when.

ISS: In your opinion, what lies ahead for the industry?

I don't have a crystal ball by any means, but I've seen how computers helped the industry make a tremendous leap from the manual systems. Now the Internet will open up the same magnitude of new possibilities. For example, an innovative owner could set up a kiosk in a mall and actually rent spaces using the computer. By linking to a website, a facility could list available spaces and take reservations or rent online. Of course, payments can be collected. If nothing else, owners can stay connected with the details easier than ever; and first-rate management is all about the details.

The results of all the work you have done to this point will never be seen by any of your customers. Everything you do from here on, however, will result in the end product your customers will see and you will have to live with every day. What you do next will determine the extent of control you will have during the construction of your project.

In this article, we will look at the three most common construction-contract agreements. We will look at the relationships, processes, advantages and disadvantages of each. It would be impossible to address these all in detail in this format. The goal here is to show you the options available, familiarize you with some of the terminology and, most of all, make you aware of the commitment of time, money and resources that may be required with each of these methods. The next step is to choose a method that will determine what your role will be in the construction process.

The Hard-Bid Method

"Because That's the Way We've Always Done It." In this method, the relationships are very structured and rigid. Notice that while you, the owner, are at the top of this structure, you are not dominant. In the hard-bid method, the architect is in control. The architect, in this role, separates the general contractor from the owner, and further separates the subcontractors and suppliers from the owner. Let's look at the process to see how this works.

The first step in this method is to select an architect. You should interview at least two or three different firms. Ask for and talk to references--don't just go by the pretty pictures. I highly recommend you find an architect with some self-storage experience, or at least, with some knowledge of light-gauge steel framing. We will address this more later.

You will then negotiate a fee. The usual fee is from 8 percent to 12 percent of the total construction cost. Some firms may add administrative fees on top of this. What do you get for this kind of money? First, you will get what is referred to as a "design or architectural program." This is a thorough detailed written study of your project requirements. This study usually includes zoning research, code research, land-use studies, traffic studies, access, egress, life-safety code requirements, and ADA regulations, to name a few. Second, the architect will begin to develop some preliminary drawings. A basic footprint and elevations will be established for you to approve.

Next, the architect will involve the engineering team: a civil engineer for topographical studies, drainage and retention plans, and to establish setbacks and easements; a mechanical engineer for heating, ventilation, cooling and plumbing; an electrical engineer who will design the power and lighting requirements; and last, but certainly not least, a structural engineer, who will play a key role we will look at in more detail later.

Then the "working drawing" phase begins. The architect and engineers will produce a complete set of plans and specifications. Specifications are most often contained in large book form. Usually, the first third of the book will be the "boiler plate," legal issues, general conditions, applications for payment, scheduling, etc. The remainder will describe in detail, sometimes by brand name and model number, any and all materials to be used on your project. Instructions for the installation of these materials and warranty requirements will also be listed.

You will notice that instead of "plans" or "blueprints," they will be referred to as "contract documents." This is for good reason: These plans and specifications will become a part of your contract agreement with the general contractor and subcontractors.

The architect will next advertise for open bids. Your plans and specifications will be made available to any and all contractors and suppliers who would like to submit a bid for consideration. The more detailed and complete the drawings are, the more contiguous the bids will be. A bad set of plans will result in questions, confusion as to what is being provided, and wide disparity in the bid amounts. A good set of plans and specifications should result in overall bids that are within just a few percentage points of each other. This will usually allow for a smoother construction process; everyone knows what they are to provide, and when they are to provide it.

Next, a bid date will be set--a date, time and place that sealed bids will be received. You, the architect and, usually, the contractors or their representatives will be present. The sealed bids are opened and read publicly. You and the architect will review the bids, select a general contractor, and begin issuing notices to proceed, followed by contracts. The entire process to this point may take as little as four to six months, or up to a year or longer, depending on the complexity of your project.

Then the "submittal process" begins. Each subcontractor and supplier must submit complete material specifications, shop drawings and installation procedures for all areas of work for which they will be responsible, even if this information is exactly as described in the plans and specifications. The architect and engineers will then review and revise or approve this information prior to procuring any materials.

Finally, you actually start construction of your project. The architect's administration role then begins. The architect and his staff will oversee scheduling, billing and payments and change orders; make site visits and reports; moderate progress meetings; arbitrate any disputes; make final inspections and ensure the project is properly closed out. Does the architect earn 8 percent to 12 percent of the total construction cost? Most do. In the hard-bid method, the architect totally controls every aspect of your project from inception to completion.

What are the advantages of this method? First, it greatly reduces your investment of time and energy. This method can catch mistakes or problems up front. The goal of the architect is to ensure to the greatest degree possible that every material has been specified, these materials will be properly installed, every contractor and supplier understands the scope and extent of his work, and all of this happens in a timely manner. It is the architect's job to see that you get what you pay for.

This brings us to "bonding." Almost always in this process, the contractors will be required to provide bonds. Bonds are simply insurance. A "bid bond" does not allow the general contractor to withdraw his bid after it has been submitted. There may be an error or something has been left out. Unfortunately, the contractor is often forced to take a contract at the original bid price or forfeit the amount of the bond. A "payment and performance bond" ensures that if, for any reason--bankruptcy, death, etc.--the contractor cannot complete your project, monies will be made available so someone can. Again, you are buying insurance, and insurance can be expensive.

What are the disadvantages to the hard-bid method? The cost and the front-end time. It is a thorough but timely process. Other disadvantages are possible over design and over specifying. Finally, the architect or engineers may specify materials or practices that are not common to the self-storage industry, or not common or readily available in your area.

The goal of every contractor and supplier on bid day is to have the lowest price by whatever means. To be competitive, he may be forced to use a sub or supplier he does not want to work with, someone who does poor work or does not finish on time. He may realize a subcontractor's bid is too low or something has been left out, but he knows this is the low number on the street, and his competitors will be using it. The lowest bid is not necessarily the best!

If a contractor or supplier has been forced to cut to the lowest price in order to get the job, what is going happen when you want to add or change something? The dreaded "change order" presents an opportunity to make up some of the difference.

This process creates adversarial relationships. Again, the structure is very rigid. The general contractor, subcontractors and suppliers are not allowed to communicate with you directly. All communication will go through the architect. If a supplier has an idea that may save time or money, he must submit this in writing to the general, who in turn submits it in writing to the architect, who then reviews this to determine whether it will even be offered to you for consideration. No matter how competent your architect may be, after the money you have paid and the time that has been expended, how likely is it he is going to admit he made a mistake or that there is a better way to do something? This method tends to result in a great deal of finger-pointing when there is a problem or a dispute.

It is essential the structural engineer coordinate with the building supplier before drawings are completed and submitted. Building suppliers will provide the engineering design and certified drawings for your building structure. If your engineer decides to reinvent the wheel and come up with his own design, "bad things happen." You must decide if you are going to make the building suppliers bid according to the engineer's design or according to their standard design specifications and practices.

If the building suppliers revert to their standard design and materials, how do you ensure all suppliers are providing the same quality and quantity of materials and labor? If you have submitted the plans with the engineer's design for permit and change that design, you may have to resubmit these revised drawings. You need to strongly recommend that your structural engineer consult with the building suppliers you are considering. This will save them some time, and save you some headaches and money.

The Design-Build Method

"Sleeping With The Enemy." Notice the change in the relationships. The general contractor becomes dominant. The structure becomes less rigid, and everyone involved becomes a part of the "design-build team." The team element is key to this process.

The first step in the design-build process is to select a general contractor, one who has had some design-build experience and, hopefully, some experience with building self-storage facilities.

Here is an outline of how this process works most effectively. You will do a great deal of the front-end work. You will meet with two or three general contractors and give them all the same information: your site requirements, budget, schedule, building requirements, materials you would like to use--a detailed "scope of work." You must have a way to communicate exactly what you expect from each of these contractors.

The contractors will then prepare a design-build proposal. At this point, they will involve the architect and engineers as needed. They will ask the subcontractors and suppliers to give their input on materials to be used and how to use them.

The contractors will then present you with preliminary drawings and an estimate. It will be up to you to carefully review these proposals. Many of the items that were listed as advantages under the hard-bid method now become disadvantages under the design-build method. You need to ensure the correct materials are being proposed, the scope of work is complete, and the schedule is reasonable. You have taken on that responsibility.

You will choose a contractor, and plans and specifications will be completed. Again, these documents will become a part of the contract. Get everything in writing. The drawings required for this method are much less than those required for the hard-bid method, since you are not dealing with an open-bid situation. These drawings serve three purposes: to get a building permit; to clearly communicate to contractors and suppliers what they are to provide; and to clearly communicate to you what you are getting (and not getting).

How do you ensure you are getting a competitive price? The best way is for the contractor to set up a competitive bid situation. The general will hand select two or three subcontractors and suppliers in each area of work, subcontractors who have worked with this general before, and in a design-build environment. A bid date will be set, and the subcontractors will drop off their sealed bids. The general contractor will open and record these bids on a tally sheet, add up the low bids in each category, add his overhead and profit, and show you the result. When an amount is agreed upon, contracts are issued, and you are ready to submit for a permit.

There are some other important issues for you to consider:

• Liquidated damages are a dollar-amount penalty paid by the contractor for each day the project goes beyond the scheduled completion date. This practice is fair if you have set a reasonable amount and date. If you are going to penalize your contractor for being late, are you willing to pay a bonus for finishing early?
• Shared savings is another common practice. Should the contractor find ways to save money after the project has begun, these savings can be split, usually 60 percent to you and 40 percent to the contractor.
• A bid bond is usually not practical with a design-build agreement. Adding the cost of a payment and performance bond will be your call. I suggest you ask that the payment and performance bond be an alternate price with the bid. If the contractor is bondable, this will not be a problem. If the contractor is unable to obtain a bond, you should find out why.
• The greatest advantages to the design-build method are the savings of time and money. You have greatly reduced the front-end time and saved a major portion of the architect's fee. You have taken away the adversarial relationships and created a team environment. The subcontractors and suppliers have some ownership in the design of the project. There will be less finger-pointing--there is no one else to blame! And you have opened up the lines of communication. If there is a problem on the job, instead of taking time to process forms to find a resolution, everyone meets at the site, agrees on a solution and keeps working.
• What are the disadvantages? Your investment of time is greatly increased. You will have to be very involved with the construction process. It will be up to you to make jobsite visits, moderate progress meetings, review and approve payment applications, etc. The architect will not be in an oversight role providing checks and balances for you. You have exposed yourself to greater liability and increased the possibility for disputes.

The Construction-Management Method

"Who's on First?" This method can take on so many forms, it would be difficult to define. Ultimately, you design how the relationships will be structured. We can look at a couple of options.

The professional construction manager is an individual or organization that will basically set up a design-build process, with him/itself at the head of the process. He will take on the administrative and organizational role of the architect. He will become the intermediary and assume some of the responsibility and liability. He will also take the general contractor out of the total-control role and provide some oversight. The construction manager obviously charges a fee for these services. You may save some money over the hard-bid method, you may not.

Another option is you become your own construction manager. It has been my goal to make you aware of some of the issues and difficulties you will encounter throughout the construction process, not to scare you out of this option, but to help you understand the task at hand. I hope you are now more informed about where you might need to enlist professionals or handle things on your own.

This is the role of the construction manager--pulling all of the elements together. Take some of the steps from the hard-bid and design-build methods and put together a plan that best fits you and your project. Most of all, it should be a plan that works with your level of expertise and availability to be involved.

The biggest advantage with the construction-management method is you are in total control. The biggest disadvantage is, you are in total control.

I have found that the majority of self-storage owners are involved in more than just this business. Some are involved in several. If I have accomplished nothing else, I hope I have been able to show you the time, energy and resources required to construct a project. As you consider what method will work best for you, don't just look at the money that you might save, consider the cost to your other endeavors. General contracting is a full-time job.

L. Bruce McCardle has been involved in many aspects of the steel and construction industries for more than twenty years and has designed and built numerous self- storage facilities. Mr. McCardle also manages the East Coast operations of Mako Steel Inc., a supplier and installer of storage buildings from coast to coast. Look for his complete seminar on the issue of construction at the next Inside Self-Storage Expo. For more information, call 800. 383.4932.

One doesn't need to look far to find some New Age pundit extolling the virtues of the Internet and e-commerce. The problem is it takes large sums of capital to secure the hardware infrastructure and technical staff necessary to develop and maintain leading-edge technologies. So what is a small to mid-size organization to do to compete in this new business environment? Enter Centershift.

Centershift Inc., headquartered in Salt Lake City, Utah, is an independent entity spun off the information-technology department of Extra Space Storage LLC in October 2001. Centershift's primary product offering is currently branded as Store, a proprietary solution the company believes will revolutionize the management and control of self-storage facilities.

The groundbreaking first version of the Centershift product was successfully deployed in September 2000 as Extra Space's internally developed site transaction and administration network. Store version 2.1, allowing secure access via any Internet connection, was successfully launched in September 2001. Version 2.2 is the first true commercial release of the product and was available for general distribution in January 2002 as Centershift Store.

Initial Centershift development was undertaken to bring about improved management and control, as well as to realize efficiencies at storage facilities operating with the software suite. Because management, control, communications and other issues are complicated with each additional site assimilated into an investor's portfolio, it became clear a centralized management and control functionality was required to grow business. This functionality also needed the latest open-system architecture available on the technology market to maintain a flexible base from which to grow the product.

With these parameters in mind, Centershift has been engineered to use the most recent advances in computer and communication technology. The database technology and real-time transaction processing rely on Oracle 8i and Microsoft SQL Server 2000 platforms. It is the company's foundation of these databases, along with its web-browser delivery protocol, that set it a generation apart from its competition. Through an outside contract with Center 7 Inc. of Lindon, Utah, Centershift uses a state-of-the-art computer center encompassing advanced networking and computing equipment, an uninterrupted power supply to the entire computing facility, a climate-controlled environment, off-site storage of daily data-backup tapes, high-speed terrestrial and space links, redundant server and storage capabilities, secure entry systems, and 24/7 automated problem-monitoring and notification services.

Store

Store is the first true Internet-based rental-management software product available to the self-storage industry. Individual facilities and customers connect to the Internet via broadband communications and access the full application online. The Store core package includes rental-management functionality to conduct daily business operations, a financial integration module for backend accounting, reporting and analysis services from the data warehouse, an e-commerce module that allows for customer online payments and reservations in real time, web-hosting services, secure extranet reporting services for third-party owners and joint-venture partners, gate modules, credit-card modules, and online support services. Also available are real-time call-center integration, phone-support services, customized web and extranet services, and centralized mail processing.

Store delivers any time, anywhere availability. As long as you have an Internet connection, you can access all your facilities from any single location in real time. For example, rental rates for any or all facilities can be updated in real time from a central location, even while you are on the road. Special features of the software include:

1) Information control: Advanced access, reporting and auditing of centralized data. Powerful reporting and auditing capabilities that can analyze information by company, region, department or individual site using current and archived data. Provides all levels of your organization easy-to-access data, resulting in improved communications and increased productivity.

2) Real-time access: Up-to-the minute analysis of site performance and key statistics that can be accessed remotely via the Internet. Provides secure access to your data for timely analysis.

3) Information security: Full control over critical information through a centralized, secure environment that is monitored and managed 24 hours a day, seven days a week, 365 days a year.

4) Provides the ability to integrate with accounting, call center, online ordering, human resources, payroll and other systems.

5) Accommodates your unique rental and space policies through easy customization, ensuring enforcement at all facilities and departments.

6) Reduces or eliminates redundant activities and data-entry tasks. No more consolidating facility summary reports, e-mails, faxes and dialing into sites to pull data. Centralized data means centralized reporting. Reports accounting for all facilities and their activities are available each morning, week and/or month automatically.

7) Software updates and enhancements are instantly available to all users, resulting in site consistency and maximum cost efficiency.

8) Centralized data means guaranteed backups on a daily basis. Never again will you have to recreate a day's transaction due to lack of a valid backup. Once the daily backups have been performed, the tapes are stored in a climate-controlled, off-site storage facility.

9) Centershift Store performs a daily close operation, which means your facility managers are no longer required to "close the day." The daily close includes a per diem rollup that is available through Centershift's custom financial user interface at the start of each business day. The financial data can be viewed in multiple formats and be "pushed" to the organizations financial package.

For more information, call 801.303.1300 or visit www.centershift.com 

If you had twice as many commerical tenants as you currently have, how much more happy and profitable would you be? My guess is a lot more. Commercial tenants are great to have for three main reasons: First, they pay on time. Second, they tend to stay a lot longer. Third, they tolerate rent increases a lot better.

The average self-storage facility generally gets about 20 percent of its business from commercial tenants. I'd like to show you how to double that figure. It will take a bit of work, but it will be worth it.

Most operators take the passive approach. They wait for commercial customers to walk in the door. Do this, and you'll get what you've always gotten. Follow the steps below, and you'll see a dramatic increase in the number of commercial accounts. But this system will necessitate an active approach. If you're the "sit on your butt" type of manager or owner, you might as well stop reading right now.

Marketing

Your efforts must have two components: an indirect and direct marketing piece. Before talking about each, let me ask you a question: If you had a heart problem, would you see a general practitioner? Of course not. You would go to a cardiologist, someone who specializes in that area. The same approach holds true with commercial tenants. They think their business is unique and want to feel as if they are dealing with someone who truly knows and understands the nuances of what they do.

If you think about it, everyone who rents from you, commercial or otherwise, wants to feel like you specialize in their particular area. If you could, you'd want to represent yourself as a specialist to everyone who walked in the door. Doing things this way will allow you to close a higher percentage of walk-ins and charge higher prices. This being the case, you'll want to go to your computer and create some brochures and other promotional materials that make it appear as if you specialize in working with commercial tenants. Very few storage operators I've seen have a brochure specifically targeting this segment, but they all should.

Prepare one or more promotional pieces that "prove" you're an expert in this area. These items will be essential in the direct and indirect contact you'll be making. When you put this material together, remember the single greatest benefit for these folks: the reduction of storage cost per square foot. An additional, less important benefit would be the reduction of clutter in their offices. Make sure to include these two key benefits as well as any others you can think of in your promotional material.

Direct Contact

Now that you're armed with the literature you'll need, get out a compass and a local map. Draw concentric circles at distances of half, one, two and three miles from your facility. You now have your target area.

You'll now want to go out and personally introduce yourself to the businesses in that market area. Start with those closest to you and work outward. Keep a list of who you visit with notes about them and the conversation you had for future reference and follow-up.

The biggest obstacle to anyone doing this is the fear of rejection, which is true in any sales situation. If you feel this way, trust me, you're not alone. But put aside the fear factor for a moment and look at the numbers. If the average commercial tenant will spend $70 on rent and stay for an average of 12 months, you're looking at a gross revenue from each commercial renter at close to $1,000.

Let's assume you have to visit 20 people to get one of them to rent from you. This is a high estimate. If these numbers were correct, each time you walked in the door of a commercial tenant, the sales call would be worth an average of $50. So when making your sales calls, think of your walking in the door as the mere collection of a $50 bill. The averages will tell you it's true.

Before you walk in the door, you'll want to be armed with two things: first, your promotional literature, and second, your sales pitch. The pitch you develop should clearly communicate that you are competent and easy to deal with. Do not make the mistake of assuming any particular business would not be interested in storage. Just keep in mind this idea of going into the establishment to pick up the $50.

After you leave, make some notes about the business and the individual with whom you spoke. Also make a note (on a scale of one to 10) of the person's degree of interest. For the most part, you won't want to do much follow-up on those who are less than a seven or eight. But with those who showed some serious interest, follow up and try to get them to visit your facility. Remember the steps: make contact, get them interested, get them to visit and get them to sign on the dotted line. You can not skip steps.

Direct Mail

Even though I recommend doing less direct mail, it should be a component of your marketing efforts to capture commercial tenants. The intent of your direct mail should not be to sell storage. This will prove a complete waste of time, money and postage. You cannot sell a concept to someone with one piece of mail. You must understand the process of seduction--yes, seduction!

Just as in the process of dating and mating, people are reluctant to "buy" the first time they see or hear from you. Your first piece of mail must give readers a compelling reason to pick up the phone and call. Let them call and discuss their storage needs. This is the second "date," if you will. The only purpose of the mail piece is to get people to pick up the phone and call you, nothing else. Once they call, list the benefits of commercial storage to them. Ask questions to assess their needs. Then get them to visit and sign a rental agreement.

Web Strategies

You'll also want to have a section on your website that highlights the work you do for commercial clients. Have a page or section on your site that specifically targets these clients and demonstrates you're an "expert" in this area.

It would be nice if you could make yourself look like a specialist to every person who visited your site (and the market segment they represent), but it's impossible to do effectively. Since the website is viewed simultaneously by many, it's difficult for you to look like an expert in more than two or possibly three areas. Instead, just use your site to show you are a specialist in residential and commercial storage. Stick to these two broad categories.

You'll also want to get great search-engine placement for your local area to attract your target market online. Getting high placement in the search engines is an art and science all its own. (You can do an archive search at www.insideselfstorage.com for more information on this topic.)

Do the Work

All this might sound pretty good to you and you want to proceed. Now the question is, who will actually do all this? If you're an owner, don't leave it completely to your manager. You'll have a much higher closing ratio when you make some of these sales calls yourself. Why not go out together and see how each of you do? Practice the pitch and critique each other. As an owner, doing this will let you know how much work it really is and how effective it is. Managers will get practice making the sales calls and prove to owners it's worth the investment of time.

Marketing to commercial clients should be just one segment of your entire marketing plan. A complete marketing program will have each market segmented and a plan for maximum penetration and effect. The thing you should consider with any marketing effort is how many dollars you spend vs. how many you collect. Commercial tenants will be just one of your target groups. Ask yourself: If I could double my commercial-tenant base, would I be willing to follow the prescription above? It would make you a lot more profitable. Think about it. I'm sure you'll agree it's well worth the effort.

Fred Gleeck is a self-storage profit-maximization consultant who helps owners/operators during all phases of the business, from feasibility studies to creating an ongoing marketing plan. Mr. Gleeck is the author of Secrets of Self Storage Marketing Success--Revealed! as well as the producer of the only professional training videos on self-storage marketing. To receive a copy of his Seven-Day Self-Storage Marketing Course and storage marketing tips, send an e-mail to [email protected]. For more information, call 800.FGLEECK; e-mail [email protected].

In these turbulent times of accounting scandals and plummeting stock markets, thank goodness for self-storage. Our industry is solid, safe and secure compared to the rest of the world. Our investments—in property, fixtures and fittings—are under our control. We all are still masters of our own destiny, whether in the United States or Europe. The dependable world of self-storage would appear to be one of the best ports in the current financial storm.

Although self-storage in Europe suffers from lack of product awareness, financial support and credibility, we are harbored in a relatively protected environment. Just as our customers choose to use our services because of high levels of security, our industry offers us a secure investment in uncertain times. Just as our clients use self-storage to keep control over their goods, we are in control of our assets and, therefore, our future.

Because of what is happening around the world, self-storage in Europe will continue to expand as it is perceived by investors to be a low-risk investment. It strikes me that over the next year or so, the industry has the potential to offer better returns than just about any other investment. Serious investors will recognize this as their traditional sources of return hit rock bottom or swing wildly in the hurricane.

With the exception of initial slow fill-up rates, the only barriers to entry for the European market are working/fit-out capital and availability of suitable properties at the right price. On this basis, the more money that comes into the market the better. If some of that money comes with property connections, then expansion via new sites will continue at or above its current rate.

Entrepreneurial operators have managed to fund their expansion via normal money-raising routes—bank loans, overdrafts and their own capital—over the last two to three years. But they have also taken on leasehold sites as opposed to freehold acquisitions due to finance restrictions. This offers further proof that even in a new, cash-starved market sector, self-storage can still grow. When these restrictions are removed, expansion should eventually develop to U.S. proportions.

Some people say I'm far too optimistic or always trying to turn the negative to a positive. However, the more stock-market horror stories I hear, the better our "safe as houses" investment appears. Soon an investment in our sector will be perceived as low-risk.

In last year's Inside Self-Storage Europe supplement issue, I predicted the Internet would be instrumental in raising the profile of self-storage throughout the pioneer marketplace of mainland Europe. This year I predict a fragile, low-level stock market and worldwide confidence crisis will help new and existing operators in Europe raise the money they desperately need to further their expansion. Once one of the three U.K.-listed, Plc, self-storage-only operators turns a profit, the pace of progress across Europe will have gathered sufficient momentum and nothing will be able to stop it.

Speaking of raising the self-storage profile, I received an invitation in the post to meet Her Majesty Queen Elizabeth. And as you read this, I may just be mentioning "self-storage" to Her Majesty. I've just got to keep raising the profile of the industry to anyone who will listen!

Andrew Donaldson is the founder and chief executive of Active Supply & Design (CMD) Ltd. of Cheshire, England. He is also the founder of the Self Storage Sentinel newsletter, Rent-A-Space Ltd. (now a multi-site operator) and selfstorage.uk.net. For more information, e-mail [email protected]; visit www.active.co.uk.

SAF-T-BOX Manufacturing, a U.S. manufacturer and renter of high-security, ground-level, portable storage containers, is introducing two new units to its product line of containers and offices. The EZ Vault and the Heavy-Duty (HD) EZ Vault offer many advantages to the self-storage industry. They are quick and easy to assemble, deliver, retrieve and store. Self-storage facilities can now offer pick-up and delivery at the customer's location.

The EZ Vault.	The EZ Vault is easily towed by a car.
The SAF-T-TOTE with the HD EZ Vault	The EZ Vault with the SAF-T-TOTE

The EZ Vault is 5 by 8 feet, all-steel construction, and weighs approximately 750 pounds. It has an 18-gauge steel roof, 26-gauge galvanized-steel side panels and a 14-gauge diamond-plate steel base. The frame is constructed from 1-by-2-inch tubular steel. This unit is designed to hold up to 2,000 pounds of storage and kept in a warehouse after being loaded.

The HD EZ Vault is an outdoor, high-security unit. This vault is 5 by 8 feet and features all-steel construction but weighs 1,250 pounds. Its 18-gauge steel roof and siding is crimped and corrugated for extra strength. The 14-gauge, diamond-plate steel floor has a framework made from 3-by-4 3/16-inch steel tubing. This heavy-duty unit includes a fully enclosed high-security lock pane that sits flush inside the lock box, making it impervious to break-ins. The HD EZ Vault also has 8-foot-wide double doors for easy entry. This unit is an ideal solution for lot-line limitations and instant rental units on unimproved surfaces. Its watertight construction means it can be rented to customers offsite, saving facility space. Bolt-in shelving is also available.

The two models bolt together without welding. Both units are powder-coat painted as opposed to wet paint, virtually eliminating rust problems with proper maintenance. Custom colors are available with a minimum required order. Units are built with large forklift pockets and can be stacked three high, even when full. These vaults are in many ways an upgrade to current wood and metal boxes, requiring no expensive vinyl covers and little maintenance.

SAF-T-BOX's EZ Vaults can even be transported without the expense of a forklift. The SAF-T-TOTE is a new pallet carrier that combines the lifting power and material-handling flexibility of a forklift and the highway-speed transportation capacity of a large truck. It can carry loads up to 4,500 pounds, and can ride behind a car or pickup truck with a standard ball hitch. Just back the SAF-T-TOTE forks through the EZ Vault forklift pockets and raise it with its powerful, electrically driven, hydraulic lift. Install the two safety bars and locking keys, and release the hydraulic pressure to lower the weight onto the spring-loaded frame.

In addition to the EZ Vaults, SAF-T-BOX's line of containers includes 8-by-10-, 8-by-22- and 8-by-40-foot units. For more information, call 800.818.0000 or 817.246.3361; visit www.SAF-T-BOX.com.

The future of paper-based records management and storage seems safe indeed for the near and midterm future. This article discusses the need for paper, imaging applications for commercial records- management companies and new insights into the "myth of the paperless office."

The storage and destruction of paper documents and records should continue to grow for the foreseeable future, perhaps 20 years or more. The growth of paper documents flies in the face of the development of new technology. The common misconception that technology will do away with paper is purely and simply a myth. There are several important reasons for this misconception. But first, a few words about imaging.

Imaging is the digitalization of paper documents into a bit-map form displayable on a computer screen as a picture of the document imaged. It does not become usable in application software, such as Microsoft Word, until another optical character recognition (OCR) is performed on the document. Today, there are seamless ways to perform both activities at once, but generally with less than perfect results. The resulting translated document will usually require some clean-up, which means human intervention.

Imaging and Commercial Records Management

Years ago, when I was developing records- and document-management products for Xerox Business Services, the outsourcing division of Xerox Corp., I had a saying I would use with the company's sales staff: "Imagin, smimagin." I got so tired of going to the annual AIIM conference and seeing 10,000 solutions that "always fit your company perfectly." (AIIM is the Association of Image and Information Management, a major trade organization. Its tradeshow exhibits thousands of products and services relating to imaging and document management.)

The fact of the matter is imaging is not generally considered a records-management solution but a document-management solution. People are generally confused by the difference. Imaging applications are abundant, but the use of imaging is purely and simply application driven. It is good for some things and a poor choice for others. Business records are supposedly proof of the completion of a business transaction--meaning the transaction is finished. Business records are maintained for regulatory compliance, litigation avoidance and sound business practice. This is still generally done in the form of paper files and documentation.

In a world with a zillion solutions to anyone's problem, imaging certainly has its place. Where it fits in a commercial records center is the real question for us. Here is my best shot at an answer after 25 years of experience in the document-management industry:

1. Scan-on-demand applications are the easiest and best fit. They are easy to use, cheap, and work for some retrieval requests. Scan-on-demand means that after a paper document is retrieved from its box or file, it is imaged as a document on demand only. Then it is attached to an e-mail and forwarded digitally to the requesting client. It may include OCR or simply be in a bit-map or PDF format.

2. Archival imaging applications are for the purpose of saving important archived documents to a CD-ROM on a very selective basis. Be careful to only sell what is of long-term value to the client. This service requires a bit more by the way of hardware and software. It is a good solution for a small subset of the files you have in hard-copy storage.

3. Imaging projects can be great short-term money makers when a commercial records center has a grasp for production management and understands what its costs are. I have done projects of millions of files with more than a 50 percent mark-up. But you better know what you are doing! And be able to measure performance against cost continuously.

4. Back-file conversions are generally a service-bureau job. There are many companies in this market, and bids, for the most part, are won based on price. This is a separate business opportunity. I have always said that imaging is "transient technology." Why? Current technology allows us to create, use, maintain, archive and dispose of documents electronically. But to quote John Philips from his article titled "Paper is King" (newsletter of the Institute of Certified Records Managers), "The idea of a paperless office is now a universally accepted joke."

John Philips is considered one of the gurus of the movement to digital and electronic records within the Association of Records Managers and Administrators and the broader records-management community. I hope this helps some of you who may be considering imaging opportunities for your business. Remember the old adage, "You've got to be who you are, because if your aren't, then you are who you are not." Whatever you do in your records-management business, know who you are.

The Myth of the Paperless Office

A new book by Abigail Sellen and Richard Harper titled The Myth of the Paperless Office discusses in systematic detail why the paperless office has not yet happened and probably will not in the near future. Sellen and Harper are scientists who take a much studied approach using a concept termed "affordances," i.e., the activities an object allows or affords. For example, the properties of paper are that it is thin, light, porous and opaque. These attributes afford the human actions of carrying, folding, writing and others.

According to the authors, it is when we determine how we can create devices that afford these qualities to digital documents that we may begin the transition to a paperless environment. In their book, Sellen and Harper state, "If the computer is the canvas on which documents are created, the desk is the palette on which bits of paper are spread in preparation for the job of writing." It is quite simply the way we work.

Paper will be with us for some time into the future, of this we can be certain. It is a sociological issue more than a technological one. I recommend this book to anyone who still thinks we are marching toward a digital future and a paperless office in the short term.

Regular columnist Cary McGovern, CRM, is the principal of FileMan and FIRMS (FileMan Internet Records Management Services), which offer full-service records- management assistance for commercial records-storage start-ups in self-storage operations. For assistance in feasibility determination, operational implementation or marketing support, or for questions on the FIRMS Sales Manager, call 877.FILEMAN, e-mail [email protected]; www.fileman.com.

Generally, someone wishing to open a self-storage facility engages the services of an architect, who will do the design work that creates a facility according to specified requirements (and incorporates as much of his artistic flair as he can get away with—he is an architect, after all).

In most circumstances, the architect will deal with local authorities on behalf of his client to ensure the building is designed within set requirements. He will apply for any required planning permissions and building-regulation approvals, as any work carried out will need to adhere to strict codes and regulations that state acceptable (and unacceptable) building practices.

Since the property may have been previously used for something completely different, an application will need to be submitted for change of use. The local authority will tell the applicant under which class the current building falls based on The Use Classes Act of 1995. For example, retail comes under Class A1, the sale of hot food is Class A3, and removals and storage is generally Class B8. To change from one class to another requires a planning-permission application made to the local authority, which will have its own requirements based on the area. Generally, to enable a change of use to B8, the authorities will require the building is in a main or secondary employment area.

Assuming all local authority requirements are met, a separate negotiating process could then ensue concerning landlord issues. For example, if someone is assuming a lease from a landlord, he may have his own requirements for the building, which would need careful consideration.

One of the biggest problems for the potential self-storage operator is finding an available site. Competition for suitable sites is strong, with large operators generally having deeper pockets than smaller operators trying to break into the market. The gamble is high. The prospect needs to identify a suitable site, size, location, etc., and it will almost certainly require reclassification. This process takes an average of eight weeks, not including the time required for any design work and engineering calculations for the remodeling.

Since this phase could mean spending a lot of cash, it is critical for an operator to know if he can afford to undertake all this work before purchasing the building. Being denied planning would be bad enough, but if he has already signed the contract to purchase the property, he may be stuck with an empty building he cannot develop.

The best course of action is to apply for outline planning permission before purchasing the site. However, there is always the risk of another developer beating him to the punch. This is where using an experienced team that knows the market, local authorities and the self-storage industry can prevent the waste of time and money.

Graham Lomax is a founding director of Rabco Europe Ltd., based in Essex, England. Rabco Europe opened in August 2001 to expand The Rabco Corp.'s Orlando, Fla.-based operation into the European market. For more information, visit www.rabcoeurope.com.

Before you scoff at applying any principle of "Buffetology" to the real world of self- storage, consider what is really involved in the site selection, development and construction of a successful project. First, site selection is not just finding "cheap dirt" on which the city will allow you to build, but determining an optimally feasible site with respect to location, competition and the overall market. Development includes the facilitation of all government entitlements and permits, building plans and financing, while construction is the execution of all site work and improvements within budget and in a timely manner. Properly performing these functions is a tall order for any one person--without a quality network of people working together toward a common goal.

The People Side of Site Selection

To develop a successful self-storage project, proper site selection is critical, yet often misunderstood by aspiring developers. An experienced commercial real estate broker can be a tremendous help, but be very selective. Be sure the broker has several years experience dealing exclusively in commercial real estate (as opposed to residential), preferably with an emphasis in the retail/raw land sector.

Remember that self-storage is a retail business; you are not looking for an industrial location. Don't be afraid to ask whether the broker has been involved in the purchase or sale of any self-storage sites or facilities. If you are planning to do a single-story facility, explain to the broker that you are looking for 3 to 4 acres in a retail location with good visibility (i.e., a minimum of 100 feet of frontage), population density and traffic count. Particularly ask the broker to keep in mind that self-storage can accommodate a flag-shaped site that may wrap around other retail pads.

Unfortunately, many of the quality retail sites you will encounter will have to be rezoned. A good commercial broker will have a feel for whether the property has a decent chance of being rezoned. In addition, you may want to visit the city's planning and zoning department to inquire on the possibility, but if you encounter resistance, don't be discouraged until you are sure you know who the final decision-makers are. Ask your commercial broker to refer you to a politically connected zoning attorney/consultant. This person can likely give you an indication about whether the rezoning is worth pursuing. If it is reasonably feasible, the consultant can help you with the necessary homeowners-association, planning-and-zoning, and city-council meetings. Remember that the more difficult sites are often the most rewarding!

In conjunction with the commercial real estate broker, you may also want to enlist the help of a self-storage consultant, especially if you are fairly new to site selection. The consultant should be able to help you prepare a market and demand analysis, which takes into account the competition in the area, population demographics and prevailing rents to determine the "net demand" that is yet to be built in that area. In other words, you want to be sure that "If you build it, they will come."

Furthermore, the consultant should be able to assist you in putting together the proper unit mix that will lease up in a timely manner and provide the optimal return. From this information, you and/or the consultant should be able to prepare an entire financial feasibility package, complete with pictures of the site and competition and financial projections, that you may use to obtain financing for the proposed project.

To determine and plan for the soil's bearing capacity, a soil engineer should perform soil borings and make foundation and drive recommendations before you close on the purchase of the site. Be forewarned that because of liability fears, many soil engineers will make recommendations amounting to extreme overkill. The general contractor should have a feel for whether the recommendations are reasonable. In addition to the soils report, the bank will likely require an Environmental Phase I Report prepared by an environmental engineering firm, which provides an analysis of the environmental risks, if any, associated with the site and neighboring properties.

The People Side of Development

Although we are dealing with site selection and development separately, site selection is really a preliminary step of development, and there is a great deal of overlap. For example, in the development phase, one of the first professionals engaged is an experienced civil engineer who can assist with boundary and topographical surveying, preliminary site planning, storm water and utilities, grading, highway-department approvals and other jurisdictional approvals. But in many instances, it is wise to have the engineer spend just a couple of hours looking into the above issues during the site-selection phase to anticipate and avoid major pitfalls during development. If he determines in advance that it will be costly to bring utilities to the property or underground detention will be required for a particular site, the savvy developer can seek a reduction in the purchase price or otherwise budget accordingly; or he can pass on the site and move on to one that doesn't have such problems.

Also early in the development phase, an experienced architect should be engaged to assist with site planning, unit mix, zoning and site-plan approval submittals, floor plans, elevations, detail plans, and finish schedules. Out of all the professionals one must work with during site selection, development and construction, it is extremely important the architect (and general contractor discussed below) have specific self-storage experience.

The site plan and unit mix are critical to optimizing the return on investment. For example, one can build two separate self-storage projects with identical building footprints but different unit mixes, and the fair market value of the two projects at 90 percent occupancy may differ by several hundred thousand dollars! Also, the strategic sizing and layout of the individual buildings by an experienced architect can have a dramatic impact on coverage. In short, engage an architect with self-storage experience to help with these critical issues; don't trip over dollars to save a nickel.

The structural engineer, MEP engineer and landscape architect will complete your design team. As the names imply, the structural engineer handles storm-drainage details, foundations and framing issues. The MEP engineer handles mechanical (HVAC), electrical and plumbing design; and the landscape architect handles landscape and irrigation design. Many MEP subcontractors and landscape companies have engineering/design teams in-house, which can provide some savings in these areas.

The qualified professionals you assemble as your design team will be the essential support that helps you maneuver through the requirements of the city planning department. The planning department is usually comprised of various sections such as zoning, platting, water and sewer, drainage, traffic and sidewalk, landscape/tree, building, electrical, mechanical, plumbing, and fire. To obtain the necessary entitlements and permits, you and your design team must meet the requirements of each and every section of the city planning department. While the approval of each section is necessary, drainage and fire can be two of the more difficult through which to maneuver. While a good design team cannot eliminate all potential problems, a poor design team will almost ensure there will be multiple hang-ups that will cost time and money.

Another characteristic of a successful self-storage developer is the ability to handle multiple tasks at the same time. For example, while supervising the design team and plan submittals, an often consuming task, you must also be coordinating the lender, appraiser, title company and closing attorneys. There is no substitute for building long-term relationships with the financial and legal professionals. The more familiar they are with the developer and each other, the smoother the closing.

The People Side of Construction

Now that you have selected a feasible site, assembled a design team, produced plans and maneuvered through the entitlement process, how do you get the project built? Here, again, professional and qualified contractors can take you to the finish line or, alternatively, disorganized and inexperienced contractors can break you.

With respect to your search for a general contractor, specific self-storage construction experience is extremely important. Many novice developers have put their financial future in the hands of a "home-builder friend" or "friend who builds warehouses" despite the fact these well-meaning friends have never built a self-storage project. These novices don't understand the basics (much less the complexities) of unit mix and building layout, and don't have established relationships and buying arrangements with the quality light-steel, door and security contractors. Since the steel and doors will represent roughly 40 percent of the cost of the project, a neophyte self-storage builder can easily be several hundred thousand dollars over budget due to excessive middlemen and lack of buying power.

The experienced general contractor should excel at estimating, purchasing goods and services, quality control, inventory control, production management and field management. He should also engage qualified contractors and oversee contract administration between the owner, design team and contractors to include change orders, monthly-draw applications and quality-control inspections.

In addition to building according to plans, a good self-storage contractor will provide "value engineering" by analyzing preliminary conceptual plans to determine alternate design and construction methods that may reduce the overall construction cost and/or improve the marketability of the project. With respect to inspections, the general contractor should provide qualified personnel to inspect and report the progress of construction, percentage completions, quality control and any other activity necessary to ensure the contract and loan documents are satisfied.

Working with an experienced general contractor will increase the likelihood of completing the proposed project as planned, within cost constraints, on time and with a minimal amount of stress. Such a contractor will also increase the likelihood of obtaining the necessary equity and debt financing, as lenders and investors will certainly investigate the builder's background and experience. In short, the best general contractors in the self-storage business provide quality turnkey development and design/build services in-house or, at a minimum, have all of the strategic relationships in place to contract for the best products and services.

A Word to the Wise

Would-be owner/developers who are determined to "do it all themselves" typically pay the highest price. We have yet to see the Renaissance Man who is the best commercial real estate broker, self-storage consultant, zoning consultant, soils/environmental/civil/ structural/MEP engineer, architect, planning-department liason, banker, transaction attorney, and general/metal-building/door/security contractor all rolled into one. However, those who are determined to do their homework to 1) assemble a qualified and experienced team or 2) engage a professional and reputable development/design/build team will discover the secret to developing and building a successful self-storage project with the maximum return on investment is really an age-old investor's axiom: "In the long run, you can never go wrong when you invest in good people."

Mike Parham has been involved in the development and construction of nearly 200 self-storage projects and is founder and president of Noah's G.P. Inc., a self-storage development company that develops the Noah's Ark Self Storage chain. Jeff Eckols is a real estate attorney and senior vice president of Noah's G.P. For more information, visit www.noahsgp.com.

I have just returned from my first visit to London, where I had the privilege of addressing a group of real estate investors, developers and self-storage owners at a reception hosted by Inside Self-Storage at the U.S. Embassy. During my four-day visit, I observed firsthand and discussed the explosive growth taking place in the self-storage industry across the United Kingdom and Europe.

I talked with a number of owners about the initial difficulties they are experiencing in getting the general public as well as the business community to understand the basic concept behind self-storage. I toured a 6-month-old, state-of-the-art store built and operated by Big Yellow. Leasing up at a rate in excess of 12 percent a month, the manager reported that many customers were pleasantly surprised they did not have to make a long-term commitment to the space.

These discussions and meetings brought back a number of memories from nearly 18 years ago when I first entered the world of self-storage. In addition to the need to educate the public, our industry faced the task of helping bankers understand why they should be willing to make a loan on a real estate project that was going to be empty when it opened. Similar problems are being experienced in the United Kingdom and Europe, according to the developers I met at the Embassy.

Before I began my trip, I had read how expensive everything was in London. As I walked by one real estate office, I saw signs posted in its windows for available apartments. How about a nice two-bedroom, one-bath flat for only £395 per week? That converts to $605.57 per week or $2,422.28 per month. I was told real estate agents had long ago converted monthly rent into weekly figures in an effort to make the numbers look a little better. Most apartment leases require a one-year minimum.

These rental rates reflect the cost of living in the London metro area. I also had a chance to sample the rates from 19 self-storage stores across London and Westminster. The chart below gives you an indication of the average annualized per-square-foot rates in the United Kingdom. (The exchange rate I used, which changes every day, was £1 = $1.53.)

Many of the stores have an average unit size in the 85- to 95-square-foot range, so you can see for yourself the average store-wide rental rates operators are achieving. But don't be misled; developers are paying a heavy price for their building leases or for the outright purchase of the land.

I must admit this short visit left me with as many questions about development and operations in the United Kingdom and Europe as it answered. I am looking forward to the November ISS conference and tradeshow in London so I have a chance to seek out more answers. The future growth of the self-storage industry overseas is inevitable--it is just a matter of who the players will be. It is one of the best entrepreneurial opportunities in these countries, as it has been and continues to be in the United States.

Keep 'Em Flying

During a recent flight on US Airways, I witnessed an employee who understood what his job was really all about. Because of my seat location, I was able to watch Capt. Ed Clyde greet all passengers as they boarded--not just saying a pre-programmed "hello," but shaking people's hands and thanking them for flying US Airways. On one occasion, he even reached for someone's coat to hang it in the closet.

I could not resist asking him the obvious question. "Captain, what are you doing acting like a flight attendant?" He explained he had one of the best offices in corporate America: six windows that looked out on the beauty and wonder of an ever-changing landscape. "It is really something when you think about the fact that I get paid to fly airplanes. But my job is actually making sure my customers get safely from one city to another and my flight team does everything to make it as pleasurable an experience as possible. I don't get much time to meet the people I am responsible for, so I always like to greet people when I can," he explained.

The captain knew his job, having been a pilot for more than 30 years. But he understood his role was just one part of the overall customer experience. I thought about his actions and comments the entire trip. Does everyone on your team understand the part they are playing in the business while also understanding the big picture of the customer's experience? Many of us do not regularly spend the time to keep all staff members "in the loop." But it's important to provide feedback, not only on the financial side of the business, but of the details of customers' length of stay, telephone closing ratios and from where customers are coming to do business with us.

As we approach the final quarter of the year, I urge all of you owners out there to step back for a minute and look objectively at your working relationship with your entire management team. Are they involved in every aspect of the business? Are they consulted about the new Yellow Pages ad? Do you listen to their input about your website? Does your store literature reflect their participation? Capt. Clyde knew the importance of his job, but he also understood it was only one part of what had to happen to accomplish the team's objective. You may be the captain of your team, but are you all working toward the same goal? Now is a good time to find out.

Jim Chiswell is the president of Chiswell & Associates. Since 1990, his firm has provided feasibility studies, acquisition due diligence and customized manager training for the self-storage industry. In addition to contributing regularly to Inside Self-Storage, Mr. Chiswell is a frequent speaker at Inside Self-Storage Expos and various national and state association meetings. He can be reached via his company's website at www.selfstorageconsulting.com or at the Virginia corporate office at 434.589.4446; write 6 Slice Road, Lake Monticello, VA 22963.