Why Offer Records-Management Services?

By Cary F. McGovern

Records management is adifferent business from self-storage. So why would a self-storage operator optto offer records management at his facility? I have assisted more than 135business owners and entrepreneurs in offering those services--30 in the lastyear alone. What in the world is going on? Why records management? Why now?

What's Going On?

In an era where computers are a dime a dozen and everyone is using theInternet, why do business records still predominantly come in paper form? Thisis a question I am asked by my customers and consulting clients all the time. Ihave heard industry pundits discuss this phenomenon. I have read hundreds ofarticles discussing the movement to digital data. I have watched Star Trek andseen the paperless office on the 23rd-century starship. How do we get there fromhere?

There are literally hundreds of reasons that paper proliferates. Here arejust a few:

Why the Growth in Commercial Records Management?

The commercial records-management industry has grown from the infant it wasafter World War II to a giant in recent years. This industry, like all others,has witnessed significant consolidation over the past few years. Pierce-Lehay,Iron Mountain or Brambles--all big industry players--have bought most of thelarge local and regional commercial records centers in major markets of 1.5million and more. Last year, Iron Mountain bought Pierce-Lehay, and Bramblesbecame Recall. These are the high-end players who have hundreds of millions ofboxes in storage throughout the world.

The Australian and European markets are booming, and there is a rise incommercial records centers in Asia and South America. In the United States andCanada, local and regional entrepreneurs have new opportunities to formcommercial records businesses where Iron Mountain has bought up the competition.

Why Records Management in Self-Storage?

There are several reasons self-storage facilities are likely prospects toenter the records-management business. A few of them include:

How Do I Decide If This Is for Me?

I receive three or four phone calls or e-mails a day from self-storage,moving-and-storage, courier and warehouse companies asking me about thisbusiness. I always recommend they first do some research. Articles on the topicof records management can be found at www.fileman.com under"Resources" or at www.insideselfstorage.com (search for my name).Although they may seem redundant if you read them all at once, they cover a widevariety of records-management topics. This will give you a better basis fromwhich to ask questions. I am also available for free consultation on thesubject.

Only you can determine if the records-management business is for you. Manyself-storage operators have made the leap--but with differing results. It is thetype of business where you can determine how fast you want to grow. Fast growthrequires a full-time, aggressive marketing program. Slow growth can beaccommodated with very little marketing. It's your choice. You can give it a tryand make some money. If you get into the business and decide a year later youdon't like it, you can sell your book of business to a competitor.

Some Things to Remember

I could provide several tips for succeeding in the records-managementbusiness--too many to list here. These are a few:

Regularcolumnist Cary F. McGovern is a certified records manager and the principal ofFile Managers Inc., a records-management consulting firm specializing inimplementation assistance and training for new, commercial records-centerstart-ups, as well as marketing support for existing records centers. For moreinformation, visit www.fileman.com.

FileMan Records Management is developing a model for sellingrecords-management services on the Internet. The company will soon be pilotingseveral versions of its method. If you are interested in becoming a FileManPilot participant, e-mail [email protected]or call toll-free (877) FILE-MAN.