Aflevering #104: '.' | Tijdwinst Podcast

Welcome to the Tijdwinst Podcast

Introduction to Self Storage Business

• The host, Buren Deusingss, introduces the podcast and discusses the concept of self-storage as a business model that can be standardized for efficiency.

• Today's guest is Taco Jansen, who owns a storage facility. The discussion will focus on entrepreneurship in a sector that operates without staff.

Insights into the Self Storage Sector

• Taco acknowledges that self-storage isn't typically viewed as an exciting industry; few aspire to work in it.

• Taco shares his personal experience with self-storage, explaining how he became interested after needing extra space for personal items when moving to Spain.

Transition into Business Ownership

• After struggling to find available storage in Marbella, Taco recognized the potential profitability of entering this market.

• Within six months of identifying this opportunity, he rented a property, built units, and began renting them out.

Marketing Strategies and Initial Success

• Despite its unglamorous nature, there is consistent demand for self-storage services. Effective marketing is crucial for visibility.

• Taco emphasizes the importance of establishing an online presence through Google searches and AdWords campaigns before officially opening.

Early Experiences with Customers

• On July 1st, they received keys to their new location but had not completed renovations by July 4th when their first customer arrived unexpectedly.

• This initial customer was accommodating and has remained loyal for over two years since then.

Background Before Entering Self Storage

• Prior to starting his storage business in Spain, Taco worked in customer service roles in the Netherlands and transitioned through various positions including telemarketing and project management.

• He spent 20 years working independently (ZZP), developing software solutions before deciding to shift focus towards self-storage ventures.

Transitioning to Spain: A Personal Journey

Decision to Move

• The speaker discusses the decision-making process behind relocating from the Netherlands to Spain, emphasizing a desire for change and adventure.

• Initially, they planned to establish a boutique hotel in Malaga but found property prices too high for their vision of a true boutique experience.

• They ultimately purchased a property in Marbella with plans for a 50/50 lifestyle split between the Netherlands and Spain.

Impact of COVID-19

• The onset of COVID-19 raised concerns about travel restrictions affecting their investment in Spain, prompting them to reconsider their plans.

• On January 2nd or 3rd, 2022, they made the decisive choice to fully commit to living in Spain, selling everything in the Netherlands within six months.

Adjusting to Life in Spain

• The speaker reflects on how most people might view such a move as daunting due to uncertainty; however, being part of Europe made it feel less intimidating.

• They compare travel times between locations in both countries, noting that distance is not significantly different despite cultural adjustments.

Navigating Bureaucracy

• Adapting to life in Spain involved learning new systems and processes; unlike the Netherlands where many services are online, Spanish bureaucracy often requires physical visits.

• The speaker shares experiences with receiving fines through online notifications rather than traditional mail, highlighting differences in communication methods.

Learning Experiences

• They discuss challenges faced while obtaining a Spanish driver's license and navigating point systems associated with it.

• Despite frustrations with bureaucratic hurdles, there’s an appreciation for overcoming these challenges and feeling accomplished once resolved.

How Does Entrepreneurship in Spain Compare to the Netherlands?

Ease of Starting a Business

• The speaker reflects on their experience of entrepreneurship in Spain compared to the Netherlands, noting that while bureaucracy exists, starting a business is perceived as easier in the Netherlands.

• In the past, specific qualifications like a "middenstandsdiploma" were required in the Netherlands, but currently, it is relatively straightforward to register a business.

• Establishing a company in Spain requires navigating through more complex processes, such as visiting a notary for incorporation, which differs from the more streamlined procedures available in the Netherlands.

Time and Digitalization Challenges

• The speaker mentions that setting up a business takes longer in Spain due to less digital infrastructure; unlike the Netherlands where businesses can be established within 24 hours.

• Many processes still require physical presence and signatures, leading to longer wait times at offices like notaries compared to Dutch standards of punctuality.

Cultural Differences in Business Practices

• There is an observed cultural difference regarding time management; appointments may not be strictly adhered to as they are in the Netherlands.

• The concept of "appointment is appointment" does not hold as strongly in Spain. Delays or changes are common without significant repercussions.

Customer Service Experiences

• The speaker shares experiences with suppliers who do not always adhere to agreed delivery times, reflecting a more relaxed attitude towards punctuality.

• Unlike Dutch expectations where missed appointments lead to frustration, there seems to be less stress about timing among Spanish service providers.

Communication and Responsiveness Issues

• When dealing with service providers like internet installers or utility companies, communication tends to be less proactive than what one might expect from Dutch companies.

• If issues arise during scheduled services (like installations), Spanish companies may not inform customers promptly about delays or rescheduling.

Navigating Bureaucracy

• The speaker notes that if urgent matters arise requiring immediate attention from service providers, individuals must take initiative themselves rather than relying on timely responses from businesses.

• While online services exist for customer interactions (e.g., water companies), they often lack responsiveness compared to face-to-face interactions at local offices.

Cultural Differences in Business Practices

The Importance of Personal Interaction

• The speaker discusses the decline of physical offices and the necessity to visit in person for tasks like picking up a bank card, contrasting this with preferences for mail delivery.

• Emphasizes how cultural identity shapes business practices, highlighting punctuality and commitment to agreements as key values in Dutch culture.

Flexibility vs. Efficiency

• Describes the Dutch preference for efficiency, wanting quick resolutions without unnecessary meetings, while noting that local customs may view this as impolite.

• The speaker reflects on their own adaptability to local business practices, acknowledging the need to adjust scheduling habits when working abroad.

Adapting to Local Norms

• Discusses the adjustment process required when moving to a different country and how it impacts one's professional routine.

• Mentions that adapting is part of choosing to live in another country; different locations (like Madrid) may have distinct business cultures.

Optimizing Business Processes

Streamlining Operations

• The speaker advocates for optimizing and standardizing processes within their company, aiming for simplicity and efficiency.

• Highlights self-storage as an example of maximizing operational efficiency through streamlined processes.

Automation in Business

• Shares insights about running a lean operation without staff, relying on automation for intake processes and billing.

• Explains how customer access is managed through technology, allowing clients entry during specific hours with mobile phone control.

Security Measures in Self Storage

Controlled Access Hours

• Details operational hours from 6 AM to 10 PM due to security concerns regarding after-hours access at storage facilities.

Monitoring Systems

• Discusses surveillance measures implemented at storage sites to track customer activity and ensure safety.

Customer Management Strategies

Client Base Composition

• Describes managing multiple units per client, including businesses utilizing several spaces for various needs.

Seasonal Demand Considerations

• Talks about catering to temporary customers such as vacationers needing short-term storage solutions.

Business Operations and Customer Interaction

Overview of Business Operations

• The speaker discusses managing 150 units at a standard location, emphasizing the importance of online processes for efficiency while acknowledging some personal interactions.

• Cash transactions are prevalent in Spain, with customers often visiting to pay in cash, indicating a need for physical presence despite digital operations.

Customer Service and Accessibility

• The office operates on a strict schedule from Monday to Friday, 10 AM to 2 PM, with appointments available in the afternoon. This structure helps manage customer flow effectively.

• An anecdote illustrates how quickly the speaker can facilitate unit rentals remotely; a customer was able to rent a unit without ever meeting in person.

Rules and Compliance

• The speaker emphasizes having clear rules that most customers adhere to, resulting in high compliance rates (90%-95%) among clients regarding operational procedures.

• Despite strict regulations, exceptions occur; however, the established system generally ensures smooth operations and positive customer experiences.

Communication Channels

• Customers frequently use WhatsApp for communication; this platform is essential for quick responses and problem-solving when issues arise with access or services.

• The speaker highlights the necessity of being responsive and available for customer inquiries at all times to maintain service quality.

Work-Life Balance and Process Management

• The integration of personal and business life is discussed; both partners are entrepreneurs who ensure they remain accessible throughout the week.

• Acknowledging potential issues like power outages is crucial as it affects access control systems. Quick responses are necessary during such events to maintain service continuity.

Stress Management Strategies

• The speaker prefers not to experience stress from work by structuring processes efficiently. They have set cut-off times (5 PM) for same-day bookings which alleviates last-minute pressures.

• By establishing clear boundaries around availability and response expectations, the speaker manages their workload effectively while ensuring customer satisfaction.

Customer Engagement and Automation in Service Management

Importance of Customer Communication

• Emphasizes the significance of being proactive with customer communication, especially for those who have registered online and completed payment. A simple message can enhance their experience.

• Discusses the practice of sending timely updates to customers about their information needs, managing expectations effectively.

Operational Efficiency and Automation

• Highlights that most operations run smoothly once initial setup costs are covered, particularly when dealing with repeat customers.

• Mentions ongoing efforts to automate systems linking door access and management software to eliminate manual intervention.

Challenges in System Integration

• Identifies a challenge due to a supplier's closed system, necessitating workarounds for full automation.

• Reflects on the time investment during the initial phase of building operations but notes that it becomes more manageable over time.

Building Phase Insights

• Compares overseeing business development to home renovation, stressing the importance of being present during critical decision-making moments.

• Expresses enjoyment in witnessing transformation from an empty space into a fully operational self-storage facility.

Expansion Plans and Location Challenges

• Shares current expansion efforts in San Pedro and Tormolinos while facing challenges finding suitable properties at acceptable rental prices.

• Discusses difficulties locating viable spaces in Estopona due to high demand but expresses determination to continue searching for new locations.

Staffing Considerations for Future Growth

• Contemplates future staffing needs as the number of locations increases, considering part-time roles for flexibility across sites.

• Plans to maintain minimal staff presence while ensuring operational efficiency through local friends or acquaintances who can assist when needed.

Cultural Differences in Work Ethic

Perceptions of Work Mentality

• The speaker contrasts work habits between the Netherlands and Spain, noting that Dutch workers plan their commutes around traffic, while Spaniards often arrive late without concern for delays.

• There is a perceived lack of drive among local Spanish workers; they focus on current tasks rather than anticipating future responsibilities, requiring extensive guidance to stay productive.

• The speaker expresses frustration with the work ethic observed in the region, preferring to hire individuals who are proactive and self-motivated.

Regional Variations in Work Attitudes

• The speaker suggests that different regions within Spain exhibit varying work cultures, citing Malaga as an example where businesses may attract more driven employees.

• Acknowledging regional differences, the speaker notes that Madrid's workforce is viewed as more industrious compared to those in other areas of Spain.

Comparisons Between Regions

• The speaker reflects on how people from Madrid perceive those in other regions as lazy, highlighting a cultural divide regarding work ethics across Spain.

• Clients from Madrid express dissatisfaction with the local mentality, emphasizing a need for consistent productivity and customer satisfaction.

Hiring Preferences and Challenges

• While recognizing that there are capable individuals in the local workforce, the speaker prefers not to invest time searching for them due to past experiences.

• The discussion shifts towards operational simplicity; hiring should be straightforward if processes are well established.

Business Operations Insights

• The process of client interaction is described as simple: understanding client needs and facilitating transactions efficiently can be taught easily to new hires.

• Emphasizing scalability, the speaker believes that once effective systems are set up, managing multiple locations becomes feasible.

Service Industry Considerations

• Unlike restaurants or hotels where customer experience is paramount throughout their stay, this business model focuses primarily on initial client interactions during service provision.

• Many clients only interact during specific times (e.g., weekends), which limits ongoing engagement but does not detract from overall service quality.

Business Processes and Customer Interactions

Differences in Customer Relationships

• The speaker discusses the nature of customer interactions, noting that business clients have a different relationship compared to restaurant guests. This difference is attributed to the varying levels of contact and engagement.

Standardization of Business Processes

• A common theme in businesses is the repetition of processes. For instance, renting a space involves showing units and completing contracts, which mirrors operations in hotels where certain expectations are consistently met.

Streamlining Operations

• The conversation shifts towards optimizing business processes by identifying key steps and eliminating unnecessary elements. This approach aims to enhance efficiency and clarity in service delivery.

Automation Aspirations

• The speaker expresses a desire for full automation within their business model but acknowledges that current market readiness poses challenges. They emphasize the importance of simplifying operations down to essential components.

Cultural Considerations in Service Delivery

• There’s a discussion about cultural differences affecting customer preferences, particularly regarding personal interaction versus automation. In some regions, customers prefer seeing staff occasionally rather than having fully automated services.

Challenges with Client Expectations

Adapting to Seasonal Changes

• The speaker notes reduced client visits during August due to seasonal factors, indicating how external conditions can influence business operations and staffing needs.

Cash Transactions Preference

• Many local clients prefer cash transactions and face-to-face interactions at the office, complicating efforts toward complete automation in service offerings.

Digital Transformation Experiences

Resistance to Digital Solutions

• The speaker shares past experiences with traditional accounting practices that relied heavily on paper documentation. They highlight frustrations with inefficiencies before transitioning to digital solutions.

Pilot Programs for Digital Adoption

• They recount being a pilot customer for an accountant's digital system, advocating for modern practices over outdated methods that involved cumbersome paperwork.

Client Management Strategies

Balancing Client Needs with Business Viability

• The speaker reflects on managing client demands while maintaining operational integrity. They mention instances where they must refuse specific requests (like 24/7 access), emphasizing adherence to established policies despite potential pushback from clients.

Identifying Risky Clients

• There’s an acknowledgment of discerning between legitimate client needs versus potentially risky or shady requests, underscoring the importance of safeguarding business interests while serving customers effectively.

Self-Storage Business Insights

Challenges in Customer Interactions

• The speaker reflects on uncomfortable situations encountered with customers, noting that such instances are rare, occurring only twice in the past 2.5 years.

• There are specific conditions regarding what can be stored; if customers refuse to answer questions about their storage, it raises red flags about their intentions.

• Customers often walk in without prior online arrangements, which may lead to unexpected issues during interactions.

Security and Access Protocols

• The business has protocols for police access to units when necessary, but they do not routinely check the contents of customer boxes.

• The anonymity of self-storage can lead to potential problems; cash payments raise suspicion compared to credit card transactions.

Flexibility and Work-Life Balance

• The speaker emphasizes the flexibility of running a self-storage business, allowing for a better work-life balance and personal time management.

• They enjoy activities like playing padel during the day without being tied to an office schedule.

Financial Viability and Scalability

• Successful self-storage businesses require careful selection of properties; profitability hinges on scale—having enough units is crucial for generating income.

• A single facility with limited units (e.g., 50 units) does not yield significant profit; scalability is essential for sustainability.

Risks Associated with Leasing Properties

• Renting space poses risks; if a landlord decides to terminate the lease, relocating all customer belongings becomes complicated and costly.

• Unlike traditional businesses that can easily move inventory, self-storage requires rebuilding units at new locations—a logistical challenge.

Future Plans and Property Management

• The current rented property has an option for purchase, but the speaker expresses no strong desire to own real estate. They are considering renting smaller properties instead.

Business Strategies in Competitive Markets

Adapting to Market Dynamics

• The speaker discusses the advantages of smaller properties, which allow for easier relocation and flexibility in operations. They mention adopting a strategy from a competitor who manages multiple smaller units.

• Emphasizes that sometimes it's better to borrow successful ideas from competitors rather than trying to innovate poorly. The market is highly competitive with many players offering similar services at comparable prices.

Local Competition Insights

• The speaker notes the presence of four direct competitors within close proximity, highlighting the intense competition in San Pedro where businesses are located nearly 100 meters apart.

• Contrasts their business model with Spanish variants that operate only when staff is available, indicating a more personnel-driven approach compared to their own operational strategy.

Pricing Strategy and Market Positioning

• Discusses the use of dynamic pricing based on unit availability; prices increase with scarcity and decrease when there’s ample supply. This strategy allows them to remain competitive while adjusting prices quarterly based on market analysis.

• Aims for a price point just above the average market rate while ensuring superior service quality, positioning themselves effectively within the competitive landscape.

Storage Solutions Landscape

• Highlights differences between local storage solutions and those in the Netherlands, noting that many local options are not yet fully digitalized or standardized like larger companies such as Sureguards.

• Describes various types of storage facilities available locally, including open plan storage requiring appointments and container-based storage solutions, each with different pricing structures.

Growth Potential and Strategic Vision

• Identifies self-storage as a growing business segment in Northern Spain but notes that most players are still local rather than large national chains.

• Mentions strategies involving acquisitions by larger firms looking to expand into new markets without building from scratch, suggesting this could be part of their future growth plans.

Entrepreneurial Philosophy

• Reflects on what it means to be an entrepreneur versus merely running a small shop; emphasizes creating value that attracts potential buyers or partners interested in expansion opportunities.

• Stresses the importance of being an attractive business entity for acquisition discussions rather than remaining stagnant with limited growth potential.

Business Growth and Strategic Choices

The Entrepreneur's Perspective on Business Operations

• The speaker discusses a business owner who is content with their current operations, earning a stable income from their property and has multiple options for future actions, including selling the business or leasing the property.

• There is an emphasis on the desire for growth and expansion, not just in terms of physical locations but also in establishing a recognizable presence on platforms like Google Maps.

• The speaker highlights the importance of being attractive to potential buyers or partners, indicating a proactive approach to business development rather than settling for minimal growth.

Challenges of Small Businesses

• Acknowledgment that small businesses may struggle against larger competitors, likening it to smaller players being pushed out by supermarkets; thus, maintaining competitiveness is crucial.

• The speaker expresses a need for sufficient scale to compete effectively and be taken seriously in negotiations with larger entities.

Personal Reflections on Career Longevity

• After 20 years in customer service, the speaker reflects on their career trajectory and expresses uncertainty about remaining in the storage industry long-term.

• They advocate for diversification across multiple locations to enhance service offerings and customer satisfaction while minimizing dependency on any single site.

Service Innovation and Market Adaptation

• Discusses providing additional services such as logistics support (e.g., transporting items between locations), which can enhance customer experience and operational efficiency.

• Emphasizes that everything is negotiable within business; if an attractive offer arises or if personal interests shift, selling the business could be considered without emotional attachment.

Future Focus and Continuous Improvement

• The speaker acknowledges that while self-storage isn't glamorous, it can be profitable through automation; they express interest in exploring new ventures when ready.

• They stress the importance of ongoing innovation within their current operations to stay ahead of competitors while preparing mentally for potential transitions away from this sector.

• Concludes with thoughts about balancing focus between current growth initiatives and future opportunities, suggesting readiness to adapt based on market conditions.

Focus and Business Strategy

Importance of Focus in Business

• The speaker emphasizes the significance of directing attention to one primary focus, particularly in maintaining customer satisfaction.

• They express a desire for customers to be happy and become ambassadors for their brand, regardless of the product's appeal.

• The speaker dismisses influencer marketing as unappealing, preferring genuine customer satisfaction over promotional tactics.

Navigating Business Challenges

• The discussion highlights the need for adaptability in business strategies, especially learned during the pandemic.

• The speaker identifies certain industries (like HOREC) as risky investments due to their vulnerability during crises.

• They stress the importance of scalability and minimal complications in business operations.

Decision-Making and Future Planning

• Reflecting on past decisions, they acknowledge that some ventures may have been overly romanticized without practical viability.

• A shift from hotel plans to storage solutions is discussed as a rational response to changing circumstances caused by COVID-19.

Rational Choices in Entrepreneurship

• The speaker notes that making tough decisions is essential; no one else will make them for you in entrepreneurship.

• Recognizing when to pivot or abandon ideas is crucial for long-term success and avoiding potential failure.

Reflection on Past Ventures

• Despite initial disappointment about not pursuing a boutique hotel, they find current business operations more manageable and less complex.

• There’s an acknowledgment that while past choices may still sting emotionally, they ultimately led to better control over current business endeavors.

Strategic Business Decisions During Challenging Times

Transitioning Business Models

• The speaker discusses the rationale behind a significant business decision to shift operations, emphasizing that it was the most logical choice given the circumstances at the time.

• The transition involved generating business in a new way, which included selling property that was not easy to market, especially during the pandemic.

Challenges of Development Projects

• Development projects are described as visually appealing once completed; however, logistical challenges arise due to limited access for delivery vehicles, necessitating manual transport of materials.

• This manual process is labor-intensive and costly, indicating that while development can be rewarding, it also requires careful planning and resource allocation.

Personal Reflections on Industry Perception

• The speaker reflects on the perception of their industry as "not sexy," yet acknowledges that there are substantial financial opportunities if managed well.

• Effective organization can lead to less workload compared to competitors, allowing for easier scalability and personal effectiveness in operations.