Do you have to have a storage unit to be a reseller? At what point should you get a storage unit? These are some of the questions we frequently hear from people new to the reselling business.
When We Added A Storage Unit
When I started reselling, it was after I moved out of my parent’s house. I started with my spare bedroom. I had a duplex, and I used the spare bedroom to store items I was reselling and my office. Back then, I was 24 years old. Today I have a 1,500-square-foot warehouse and multiple trailers and trucks for my business. How did I make that jump?
It took time.
When I started flipping, I had two vehicles, a four-door Tahoe and a convertible car. I sold exercise equipment and some bigger items using those vehicles. I didn’t have a storage unit, but eventually, I bought a $350 shed and put it behind my duplex. Eventually, I outgrew that and was making enough to justify getting more storage. A shed might be an option depending on where you’re at with your business.
The whole point is you don’t want to run before you walk. Getting a storage unit and trying to cover the monthly expense when the money is not coming in is usually not a good decision, and it’s not how we did it.
Then I went to one storage unit and outgrew that. From there, we had four storage units and finally consolidated them into a warehouse. I started with one and filled it up, and as the business grew, so did the physical space. It was slow growth.
Look At Your Numbers Before Getting A Storage Unit
I recently did a coaching call with one of my Flipper University students, and he told me he hadn’t touched his income from the flipping business. He was doing it part-time, had made $30,000, and wondered if he should get a storage unit. He proved the model worked and so it made sense for him to take the next step for a little bit more storage. It boils down to knowing your numbers. Know what you make each month and does it make sense for your business. A storage unit can run you $100 to $200 monthly, but it is a business expense. You don’t want to take a recurring expense unless it makes sense for your business.
If you’re going from a hobby to a business, you probably will start selling more because you’re treating it like a business. It might make sense if you need a little more room to work to grow. If the money is coming in and you can go to that next level, consider getting a storage unit.
Don’t go out and get a warehouse and have $1,500 or $2,000 looming over your head if you do not see enough money every month. We don’t ever recommend somebody doing that. It causes too much stress, and it’s very hard for you to live up to that overhead in your business.
If you are working out of your house, have an extra bedroom, and feel like you are outgrowing it, it might be time to think about a storage unit. You run the numbers, and it makes sense; it can be great to move into another space because you are treating it more like a business instead of just a hobby, and you have the space to do that.
How To Flip Without A Truck Or Large Vehicle
If you don’t have a truck and trailer or an SUV, that doesn’t mean you can’t flip big items. Start where you’re at. Ask a friend to borrow their vehicle. You can rent a truck. You can rent a truck from Lowe’s. You can rent a truck from Home Depot, U-Haul, and all these different places to get to that level, and it’s a lot cheaper than spending money on a truck and not liking the profession. Test it out first.
Other Storage Unit Options
There are other options than just a storage unit, too, such as sheds, pods, renting a container, or even storing items in a semi-truck.
We recommend taking stepping stones in this business. Start where you’re at and then grow it into something else. If you enjoy it, you love it, and you want to go to that next level, that’s when you start slowly scaling it.
Show Notes
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