Revenue, Profit and Cash: Is my self storage business making any money?

accounting Jan 23, 2018

Have you heard the saying, “Revenue is vanity, profit is sanity, cash is reality”? Nearly all business owners have, but most aren’t entirely sure what it means, and that’s okay. Self Storage business owners need to understand the difference to make sure their facility is making money. Let’s break this down right now, and you’ll be wiser than most of your competition.

Revenue is Vanity: Revenue is the top line on your income statement. For a storage business, it is normally the cumulative amount of rent, inventory sales, and truck rentals. Rental income is usually the largest number in the revenue section, since that is your main business. Seeing a large monthly rental income number and a high occupancy rate can make you feel like your storage business is a success, since you are mostly full and the hard work of marketing and breaking even is over, but don’t let vanity block your view. Here are some factors to consider:

  • Are you charging...
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