Entering a Crowded Service Market and Crushing the Competition with Nick Huber | BP Business 14

TL;DR

Nick Huber scaled a college storage business into a multi-state operation.

Transcript

welcome to the BiggerPockets business podcast show number 14 welcome to a real-world MBA from the school of hard knocks where entrepreneurs reveal what it really takes to make it whether you're already in business or you're on your way there this show is for you this is bigger pockets business hey there everybody I am J Scott I am your co-host for ... Read More

Key Insights

• Nick Huber began Storage Squad in college, initially storing items in dorm rooms and personal vehicles.
• The business expanded by leveraging lean startup principles and grassroots marketing, including sidewalk chalk.
• Storage Squad's growth was fueled by targeting international and out-of-state students at universities.
• The company prioritized customer service, using technology to improve logistics and response times.
• Nick and his partner avoided traditional employment, focusing on scaling their business full-time post-graduation.
• Exclusive contracts with universities significantly boosted Storage Squad's market presence and credibility.
• The company employs a decentralized model, hiring student managers at each campus to oversee operations.
• Nick emphasizes the importance of doing common things uncommonly well, rather than pursuing flashy, high-risk ventures.

Questions & Answers

Q: How did Nick Huber start Storage Squad?

Nick Huber started Storage Squad in college by storing students' items in his dorm room and car. He saw an opportunity when a parent asked him to store their child's belongings over the summer. This led to a partnership with a friend, and they expanded the business while still in school.

Q: What strategies did Nick use to grow Storage Squad?

Nick used lean startup principles and grassroots marketing strategies, such as sidewalk chalk and flyers, to grow Storage Squad. He focused on providing excellent customer service and leveraged technology to improve logistics and communication with customers.

Q: How did Storage Squad secure contracts with universities?

Storage Squad secured contracts by demonstrating superior service and efficiency compared to competitors. Nick and his team met with university executives, showcasing their technology-driven approach and competitive pricing, which eventually led to exclusive agreements.

Q: What challenges did Storage Squad face during expansion?

During expansion, Storage Squad faced logistical challenges, such as coordinating pickups and deliveries across multiple states simultaneously. They also struggled with staffing, relying on student managers and part-time workers to meet demand during peak times.

Q: How does Storage Squad manage its operations across multiple locations?

Storage Squad manages operations by employing student managers at each campus, who are responsible for hiring and overseeing part-time staff. Centralized customer support and scheduling systems help maintain consistency and efficiency across all locations.

Q: What advice does Nick Huber offer to aspiring entrepreneurs?

Nick advises aspiring entrepreneurs to focus on doing common tasks uncommonly well. He suggests starting small, using resources efficiently, and avoiding the pressure to pursue flashy, high-risk ventures. He also emphasizes the importance of grassroots marketing and customer interaction.

Q: What role does technology play in Storage Squad's operations?

Technology plays a crucial role in Storage Squad's operations by enabling efficient logistics and communication. The company uses technology to manage scheduling, track orders, and provide real-time updates to customers, setting them apart from competitors using outdated methods.

Q: What future plans does Storage Squad have for growth?

Storage Squad plans to continue expanding by securing more university contracts and exploring related services, such as moving and self-storage. The company aims to maintain healthy growth while refining its systems and customer experience.

Summary & Key Takeaways

• Nick Huber founded Storage Squad while in college, initially using personal resources to store students' belongings. The business quickly grew by focusing on customer service and leveraging technology to streamline operations.

• Storage Squad expanded to 11 states, employing 350 part-time workers, and gained exclusive contracts with major universities. The company's success is attributed to targeting specific student demographics and maintaining a personal touch.

• Nick advises entrepreneurs to focus on doing common tasks exceptionally well and to start small, using resources efficiently. He emphasizes the value of grassroots marketing and building a business without heavy reliance on external funding.