Opportunities In Records Storage
Records storage and management is becoming a very popular ancillary service in the Self Storage Business
. Many operators are discovering the benefit to their existing business of adding Records Management. Although not a new concept, it is growing in popularity as our industry looks to draw a broader customer base and generate additional revenue streams, thereby, lowering overall risk.For those of us already in the Storage Business, we already have two key ingredients for adding Records Management an established base of customers who are potential candidates for Records Management, and an existing facility. If our customers are satisfied with our current level of service for their storage needs, then it is likely that they will at least consider us for their Records Storage Needs. With minimal time and capital investment, you can provide yet another service in an effort to becoming a one stop storage provider.
Some high profile cases have been in the press in recent years with regard to confidential client records being mishandled, and in some cases, thrown in public dumpsters. This has thrust the records management business into the spotlight. Furthermore, with the recent passing of the HIPAA Guidelines, many companies are required to keep confidential clients records in a secure place for up to 7 years. Its no wonder Records Management has become a fast growing and highly profitable business.
One of the reasons it has become so profitable is due to the very nature of the real estate being used. If a Doctor or Lawyers office is storing boxes and boxes, or several cabinets full of records in their Class A Office Space, it can be pretty costly. So can you think of a less costly alternative location to store these records? Yeah, our facilities! In addition, a Records Storage Center with proper software and tracking mechanisms can manage the documents with a greater degree of accuracy than the current office staff.
So whats the benefit to us? Records management is perpetual. Once a Records Client moves in, the account, and their space requirements, continue to grow. Most industry statistics show that the average Records Management account grows at a rate of approximately 10-12 % per year.
Another benefit is the fact that the customers are typically very loyal in nature, without much movement from one Records Management Company to another. As long as the service level is there, and there are no mistakes or mishandling of confidential records, its unlikely the client will move to another vendor. And the hassle for the client to switch vendors means a costly move, a disruption in service, and possibly incurring termination fees.
Sounds good, but what about the liability? Since the business is now run with some pretty high tech software, its a fairly simple business with minimal liability. Operators are protected by using a standard industry agreement, which keeps financial exposure in check. And one more benefit is that the Records Management business can be sold separately from the facility if you choose. One of my associates who planned to sell his facility and Records Storage Business found that he had more to gain by selling the two independently.
A true Records Management business utilizes software that allows the operator to confidently handle the customers records in a safe and professional manner. The software performs such functions such as letting the operator know when it is permissible to delete records or move them to archives, whether electronically or physically. The software is truly the brains of the business. It provides the barcoding and tracking of the data, invoicing, and providing internet access for wireless scanning. It is also customizable and scalable to meet each individual owners needs.
So if youre looking for yet another profit center to boost the overall NOI of your facility, Records Storage should be on your radar. Check out the competition in your area to see how it measures up and do a little homework to uncover the hidden opportunities in your market.
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