Most business owners believe they don’t have any unused space to rent out. But if you search a little, you may be able to turn unnecessary space into increased profits.
Look at how these four businesses improved their bottom lines:
- An automobile dealer was open 6 days a week. The owner initially thought he didn’t have any extra space. But a financial advisor pointed out that the dealer had a parking lot and could lease parking spaces since his inventory levels were low. After asking nearby businesses if they were interested, the owner found a taker. A bank one block away had a parking problem and was happy to rent a place for its employees to leave their cars.
- A travel agency was busy all day but closed at night. A financial advisor suggested establishing an evening training school. Now, people pay a fee to learn how to become travel agents at night. The agency even offers jobs to the best students.
- A medical facility operated from 8 a.m. to 5:30 p.m. But what about from 5:30 at night until 8:00 in the morning? The doctors who owned the facility ended up establishing an evening walk-in clinic that was run by contract physicians. The owners receive 50 percent of the evening patient fees. Since a nearby hospital has an average emergency room wait of two hours, business at the walk-in clinic is booming. And the owners are profiting nicely.
- A large discount store had an area with a separate entrance that included several unused training rooms. This wasted space added to their insurance and utilities cost, without generating any revenue. An overcrowded vocational school next door was pushing out its walls trying to find enough classroom space. The CEOs of the two companies put their heads together and solved both problems. The school rented the training rooms as additional classrooms five days a week. And the rental revenue turned an expensive waste into a healthier bottom line for the store.
- An insurance agent liked his high-profile business address, but had three times the space he needed. To help offset the extravagance throughout the year, each January through April he rented the extra office space to a tax-season-only business. In just those four months he could recoup enough cost to make the office affordable the rest of the year, and the seasonal business was able to have a reliable location without having to pay rent in the months they weren’t operational.
So, take another look around your building. Brainstorm about what your company can do with your unused space. Perhaps you can offer part of your warehouse to nearby businesses for additional storage, or rent empty offices to a non-competing start-up company that needs a commercial address but can’t afford the going rates. By thinking creatively, you might be able to turn extra space into extra revenue. Talk over the implications with your business and financial advisors.