Warehousing for Small Businesses: Part 1

Small business owners must handle a difficult balance of cost versus need when managing their inventory levels. More storage means more room for growth, but it also means more money out of the business's limited income. If you are considering warehousing for your small business, you need to understand how this process works and what you can do to minimize your overhead. The guide below will show you how to invest in the right amount of space for your business so you can keep your profit margins high.

Opt for Flexible Warehousing Options

Some warehouses will only allow you to reserve a certain amount of space for a certain amount of time, similar to paying for a storage unit or a parking spot. Other warehouses offer a more open-ended approach, allowing you to reserve the amount of space you need for that given time while increasing or decreasing your space as needed. For instance, you may require more space in the warehouse before the winter months because of the holiday season. Then you may only need half the same area for the rest of the year. If you get a flexible plan, you will only have to pay for the space you require, saving you a ton of money in the long run.

Consider Your Importing and Exporting Needs

If you import or export a lot of products for your business, you should think about the location of your warehouse with regards to sea ports and airports. You will save money in shipping and distribution if your warehouse is in a good location, and you will be able to maximize the efficiency of your services. At OverFlo, our public warehousing facility is just minutes away from piers and marine terminals, and we make daily deliveries to Maryland, New Jersey, Pennsylvania, Delaware, and Virginia. We would glad to take care of everything you need for your small business.

Don't Be Fooled by Cheap Pricing

It's easy to get lured in by cheap warehousing and distribution options, especially if you are working on a tight budget. If you choose a substandard warehouse, you risk losing the valuable customers that keep your business running strong. If you are trying to expand your business or build your brand, you will have a hard time doing that if your products are consistently lost or damaged in your facility, or if your inventory management is not up to par. Consider what you are getting for your money before you invest in services that aren't right for you.

Keep in mind that you may be able to bundle services together that you already use through other companies. For instance, your warehouse may be able to take care of your deliveries or customer service needs for you. Ask about these options when you get a price quote for your small business warehousing so you can ensure you get the most for your money.

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