Offsite records storage housed in self-storage used to be a solution for small businesses running out of room for cardboard boxes jammed with files. Self-storage managers were happy to rent them a unit and leave them to their own devices. Things have changed.
 
Today, records management is a hot topic, an extremely vital and lucrative service, with profits increasing every yeareven for self-storage operators. The proliferation of new laws and regulations, terrorist threats, natural disasters, data breaches and dramatic headlines have been quite a wake-up call to businesses. And what a sound, peaceful sleep it has been.

But the alarm has gone off, and every company is seeing records management in a whole new light. Now more than ever, records management is an essential activity to ascertain and confirm the credibility of many business transactions and government activities. And as their volume of data continues to increase, companies are turning to outside help for records storage and management.

You might be saying to yourself, But Im in self-storage, not records management. How do I operate that kind of business day to day?

This article illustrates the basics: records storage and services. Armed with the facts, you can decide if it's the right business for you. Odds are, you already have the client base. And what customers wouldnt want the option of having their information delivered to their doorstep? For your customer, it means convenience; for you, it means a chargeable service.

Outlined below are the very basic methods for operating a records-management business. With a few simple steps, you can start storing, servicing and billing customers in this profitable industry.
 
Step 1: Talk to Current Tenants

This may seem obvious, but have you ever spoken to your existing business tenants about offering records-management services? You may be surprised at the response. Recently, one law firm had more than 5,000 boxes of business records stored in multiple units and was delighted at the opportunity to have it managed. This one contract would be a great start for any records-management business.
 
Step 2: Purchase Software Tools

Dont make the mistake of using spreadsheets or manually managing records. Its OK when youre small; but over time, youll need to provide reports, proof of activities and other audit documents. Start off right and get software specifically designed for the task at hand.

Records management has been made easy through the use of barcodes, mobile barcode scanners and sophisticated software. These tools have been fine-tuned over many years and can help you control every records-management activity. If you can scan box barcodes onto shelving and deliver them to the customer, you can master the fundamentals of the business.

Dont forget to take into account that, as time goes by, you may want to offer other services such as web access. Think about the future when purchasing software, not just the present. Set up your software system correctly from the get-go. Attend a training class, learn your software and do it right the first time.
 
Step 3: Racking

Storing boxes requires racking. You can rack as you go, or rack out a certain percentage of your facility. Racking is broken down into sections and barcoded with individual location stickers. Typically, racking is set up so a single location will hold nine, 1-cubic-foot boxes that are stacked three high and three deep. Each barcode location sticker is assigned in the software, so boxes can be quickly located and each location can have a box size assigned to it (this helps automate billing).

Heres how it ties together: Each new customer is given barcodes to be placed on the boxes. These barcodes are either assigned to the account prior to being released or, when a work order is created to pick up those containers, the boxes become assigned to that account via the work order. When the account returns its containers with the barcodes applied, you place the boxes on the shelving. As you place each box, it is scanned to the location (first you scan the location barcode, and then the box barcode).
 
Step 4: Pricing

In your records-center software, youll establish pricing, setting up service and storage prices for each account, or you may use a standard default. Right now, we'll focus on storage rates.

When establishing rates, you can give a price for each box size per calendar month. When you run your invoice at months end, the system will tally how many boxes each account has by counting box barcodes. It will know how big the box is from the location barcode. It then multiplies the number of boxes by size to calculate total storage charge.

Just think: All charges are completely automated even though you only scanned boxes to the shelf. Additionally, when a customer calls you for a box, you will know exactly where it is by the location number.
 
Step 5: Servicing and Charging Customers

When storing boxes, one expectation is that, upon request, a box or individual file can and will be delivered. You can accomplish this via your own vehicles or using a courier. Outsource these functions if you can contract with a reliable provider and save money.

When a box is requested, charge to pull the box from the shelf and for delivery. If the customer wants the delivery expedited, charge a rush fee. If he wants a box picked up, charge for pick-up and re-filing (putting the box back on the shelf). All these service charges can be set up in your software on an account-by-account basis or as a standard default.

Using your records-management software for every service request, you can create a work order, select an account number and add the delivery items. This work order should be given to the driver or courier to obtain a customer signature upon receipt of service.

By placing a box on the work order, you tell the system the box is unavailable to anyone else. It knows to bill for pulling the box and delivering it, placing all fees on account. At the end of the billing cycle, the software automatically ties the services completed to the associated rate and bills the customer.

The same applies to a pickup. A work order is generated and boxes are picked up. The boxes are scanned into locations. The system now indicates that these boxes are in, and charges for the pickup and re-file. At the end of the billing cycle, everything ties back to invoices. You have complete automation: 

Remember, you dont have to pick up or deliver boxes when you first start out. You could choose to just pull boxes or put them away, requiring customers to come to you. The choice is yours. 
  
Step 6: Ancillary Profit Sources

As mentioned earlier, storage and service are the basics. Your storage revenue will grow annually for each customer, with the industry average between 10 to 20 percent. Yet there are many other services and profit streams that you can generate.

For example, your customer base will need and purchase boxes. Knowing that, simply add the box-order purchase to your work order. Some customers may also want you to complete data entry on each box, providing an inventory of what they have in storage. The report could be an ancillary service you provide to them for an added fee. Additionally, you can complete inventory projects that catalog the contents of containers too. The thing to remember is for every service you provide, you should bill the customer. Service means additional revenue.
 
Step 7: Sales

Without sales, everything is meaningless. If current and prospective tenants dont know you offer these services, how will you profit from them? Its vitally important to keep a sales and service mentality, with a financial reward structure for referrals and sales. This is a topic all on its own, and I shall leave it for another article.

Nowadays, every company needs a policy for records management. Storing critical business information offsite has become priority. And although records management in self-storage operations has always included the minimal service options, with todays technology, you can offer higher levels of service without needing a degree in rocket science.
 
Ian Thomas is vice president of business development for O'Neil Software. For 25 years, O'Neil has provided software and hardware solutions for more than 850 records centers in more than 60 countries, ranging from startups to multi-nationals. O'Neil's software solutions manage multiple types of data including traditional storage boxes, file folders, documents and tapes. O'Neil also provides barcode tracking, portable printers, laser scanners, wireless handhelds and web technology featuring RSMobile software. For more information, visit www.oneilsoft.com.