Warehouse Space

[coinvestor]

For the last 5 years I have been renting a couple of storage spaces at a local storage facility. I need more space now, and they are booked up in the 10X20 size. I have been thinking about looking for some space with a loading dock and spliting the facility with 2 other businesses that are currently also using the storage place I use now. Thoughts good or bad? Where would you start looking? What do you do?

Thanks

JD

[mission vending]

For the last 5 years I have been renting a couple of storage spaces at a local storage facility. I need more space now, and they are booked up in the 10X20 size. I have been thinking about looking for some space with a loading dock and spliting the facility with 2 other businesses that are currently also using the storage place I use now. Thoughts good or bad? Where would you start looking? What do you do?

Thanks

JD

.

Been there, done that and have the tattoo to prove it . I am currently subleaseing warehouse space from a friend that has another business. Having been in several of these situations over the years I can say for the most part it's worked out fairly well. The only time I had any real problems was sharing a space with another vendor. That's a whole other story.

A warehouse type facility will likely require a lease so you will need to make sure everyone is on the lease and that you have a separate agreement among the participants that specifies the duties and responsiblities you have to each other and the terms under which one or more partners can "lock out" another for failure to perform on their obligations. The agreement is not for when things go right its for IF they go wrong so you can protect yourself and business.

If its just 3 or 4 of you guys as small business owners it should not present much of a problem. If there are a number of employees also involved I'd also recommend looking at putting up some fencing inside the warehouse where your inventory can be kept locked up. If you don't want to do that then plan on bringing stale and damaged goods in where anyone can have at them, its better then someone helping themselves to saleable inventory. I hate to sound so negative sometimes but I have learned time and time again that being too trusting in this business means its going to cost me.