Small startups and new businesses don’t always need a warehouse to start operations. Warehouses are the kind of thing that you only start thinking about as a bigger business – but how do you know that it’s time to make the switch? Once you’re past print-on-demand companies or third-party suppliers, your business might need its own warehouse just to keep up. Here’s how to assess your business, and how to spot the signs that you’re finally ready for your own warehouse.
5 Signs Your Business Needs a Warehouse
Listed below are five telling signs that your business needs a warehouse.
1. You’re in Commerce
Businesses that are in commerce could need a warehouse from the moment their operations have moved out of their garage, bedroom, basement, or kitchen. Once the business has more than that basic need you could fill in your garage, it’s time to look at other options – like a warehouse.
Commerce and e-commerce businesses that have warehouse access, have an immediate advantage set above companies who are still operating from their homes.
2. There’s Increased Customer Demand
Once your product has built a following or loyal customer base, it could be time to set your brand up with a warehouse. Most startup stories begin small, but there’s always the point where you’re doing more than just breaking even – and where it’s clear that people want what you sell.
If you’re not there yet, just keep going. Increased customer demand is within your reach, as long as you’re selling yourself and your product as a constant.
Are you suddenly getting more orders or more customers?
This is a tell-tale sign that your business needs a warehouse.
3. Changes in Your Current Storage Plans
Businesses that lack their own warehouse space have to use third-party storage options that can heighten costs. In some cases, you might be storing your stock at a friend’s house, or it’s taking too much space up in your own home or office.
When suppliers start charging more or your current storage option doesn’t work out for the long haul, it’s time to consider the merits of having your own warehouse.
Warehouses can be more cost-effective and reliable than what you’re currently doing to store inventory.
4. Larger Contracts for Your Business
Let’s say that business starts going really well for you from next week: a larger client contacts you, and says that they’re going to need a thousand toasters for a corporate event. What if you only have the storage space for about two-hundred toasters? That’s a telling sign that your business could use a warehouse.
It’s not just individual sales that can make your business skyrocket. Sometimes, larger contracts come in – and then your business might need a little more storage space to meet these demands.
5. Expansion for Your Business
When a business is no longer just selling stuff locally, it could be one more reason to have a warehouse. Shipping costs can be expensive. For example, let’s say that your hub and where most of your orders come from aren’t in the same area. Instead of charging customers added shipping costs, have a warehouse in an area where most of your orders are shipped to. A warehouse is one way to expand your business and bring the product closer to the customer.
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