This is a “trade stimulator” game from the 1940s that proposed to help you decide on your destiny. If you really think that this would really work, then you’ll find it in an antique store near Joplin, Missouri. But hopefully you are going to entrust your future to a different set of priorities.
What’s the difference?
Webster’s defines “luck” as “success or failure apparently brought by chance rather than through one's own actions” while it defines “skill” as “the ability to do something well; expertise”. Effectively, the key difference is having control over your future as opposed to allowing someone else – luck – to be in charge. I think anyone would agree that it is much better to be in control of your destiny than entrusting it to someone else.
Learning how the business works
The first item that let’s you take control over self-storage investing is to understand exactly how the business works. This will allow you to understand what properties are opportunities from those that are not. In real estate, you make most of your money on the front end when you make your selection of what to buy. If you acquire a property that has the wrong location or fundamentals, not even the greatest manager in the world can help you succeed. So an education is paramount to separate luck from skill.
Doing terrific due diligence
Benjamin Franklin once said that “diligence is the mother of good luck”. Here he is referencing using your skill to create good fortune, and that skill is “due diligence” – the checklist of items that you must confirm during property inspection to ensure that the acquisition will be profitable. Due diligence steps include everything from permits to property condition, as well as the economics of the deal.
Making smart choices
Once a storage property is purchased, it’s essential that you continue to make good choices in every area from personnel to marketing. Even a great purchase will fail if you do not properly manage it. And to do so requires making a steady stream of choices. These choices are based on skill and not random guessing.
Using scientific method is a key step to separating luck and skill. A smart storage owner will engage in constant budgeting and tracking to see if they are hitting their numbers or not. Any action that causes the storage facility to fail to hit its budget should be eliminated and any course that increases net income should be accelerated.
Never being satisfied
One huge trait that separates luck from skill is simply the attitude of refusing to accept what others hand you. Many storage owners started with nothing and built an empire by refusing to accept their position in life. This is the moment in which luck is cast aside and skill is embraced as the new leader. And even if you buy a bad property or encounter an economic recession, you understand that sometimes luck can be bad and you don’t have to accept that but can start all over again to employ your skill this next time.
Skill is superior to luck in all regards. Take control of your future in general and your selection and operation of storage facilities in particular. The choice is completely up to you.