Growing businesses often reach a pivotal moment: realizing their garage—or multiple garages—can no longer efficiently support their inventory and fulfillment needs. Transitioning to a dedicated warehouse is a daunting step, but getting it right can set your business on a path for rapid growth and increased efficiency. Get it wrong, and you risk unnecessary costs, operational headaches, and missed opportunities.
But moving into a warehouse isn’t only about square footage and shelving—it also means stepping into a new world of building codes, fire safety standards, and compliance requirements that didn’t apply in your garage.
Before choosing your warehouse, ensure you’re ready to navigate essential city regulations like obtaining a racking permit. Check out this guide on 6 Steps to Obtaining a Racking Permit to simplify this critical process.
Here are five essential things you must get right before making the big move from a garage into your first warehouse.
1. You Probably Need Less Space Than You Think
One common mistake companies make is overestimating how much warehouse space they actually need. It’s easy to assume you’ll require extensive square footage, but professional space assessments often reveal businesses need significantly less—by as much as 50%.
Optimized warehouse layouts, efficient racking, and proper storage systems allow you to do more with less. Utilizing every square foot effectively means you can keep your overhead lower and avoid paying for wasted space.
See It in Action: Watch how Sparkle in Pink transitioned to a professional warehouse and discovered they needed far less space than initially estimated:
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2. Invest in a Warehouse Management System (WMS)
As your business scales, managing inventory using manual methods or basic software becomes increasingly difficult and error-prone. Investing in a robust Warehouse Management System (WMS) will streamline operations including receiving, inventory storage, picking, packing, shipping, and real-time inventory management.
Your chosen WMS must integrate smoothly with your existing order management and shipping platforms. This ensures efficiency, reduces costly errors, and helps you scale without friction.
According to Matt Howard, MBA, Warehouse Fulfillment Experience Manager at WarehouseOS with 16 years of experience in the warehouse industry, business owners should ask themselves the following questions when evaluating their first Warehouse Management System (WMS):
- “What type of hardware does the system require—iPads, Zebra scanners, label printers, etc…?
- Is the system easy for employees to learn and use, or is it overly complex?
- Can the WMS integrate smoothly with our existing software?
- Does the provider offer customizations to fit the specific needs of our operation?
- What is the total cost of the system, how much will it save me and does it align with our budget?
- Will it automate manual tasks that are currently slowing us down?
- Most importantly, does it solve our current pain points without creating new ones in areas that are already functioning well?”
These questions, according to Howard, are key to finding a system that truly supports your operation’s long-term efficiency and growth. There are plenty of resources available to help businesses find a cloud-based warehouse management system that fits their needs.
3. Barcoding is Non-Negotiable
Manual counting and memorization of product locations may work in your garage, but it will quickly become impossible at warehouse scale.
Barcoding your inventory allows for:
- Instant, accurate counts
- Real-time visibility of stock levels
- Improved operational efficiency and reduced fulfillment errors
Barcoding is the key to accuracy, speed, and complete inventory transparency. Robert Lyon, VP Innovations Engineering at Hoj Innovations with over 40 years of warehouse solutions expertise, echoed this sentiment, stating:
“Implementing barcodes is one of the best things you can do if you are operating your own warehouse. They allow your operators to quickly scan a barcode to identify items for receiving, picking, shipping and inventory management versus having to type in an item number thus eliminating errors and improving efficiency.
Barcodes also proved a positive transfer of data to your inventory management system for an automated real-real time solution, critical in managing product availability for order management.”
4. Think Cubic Feet, Not Square Feet
When moving into a warehouse, shift your mindset from “floor area” to “total available space.” Warehouses have vertical space that is often overlooked—empty air above you is potential storage you’re already paying for but not using.
Maximize this vertical space through structured pallet racking and efficient storage solutions. This simple shift can dramatically increase your storage capacity without the need for additional square footage.
5. Implement an Organizational System That Actually Works
While manual processes like printed pick lists or informal inventory tracking may work in smaller operations, they typically become inefficient at scale.
Matt Howard also emphasizes the need to implement a good organizational system, “Adopting a WMS allows you to begin gathering structured data—providing the transparency, control, and flexibility your warehouse needs to grow without becoming overwhelmed.”
Key strategies include:
- Organizing inventory by sales data: Ensure fast movers are quickly accessible, while slow movers can be placed in deeper storage.
- Replacing paper-based systems with digital solutions: Digital tracking ensures accuracy, efficiency, and scalability.
Old Methods To Avoid When Scaling:
- Paper-based picking and manual entry
- Inventory memorization
- Handwritten signage and labeling
- Ignoring vertical space
- Random or inefficient product placement
What to Implement When Scaling
- Professional space assessment and planning
- Barcode systems for accuracy and transparency
- Robust WMS that integrates with existing systems
- Structured vertical storage (use your cubic space!)
- Data-driven inventory placement (fast movers within easy reach)
Key Takeaway
A successful warehouse transition depends on fully utilizing vertical space, implementing a data-driven organizational system, and adopting scalable tools like barcoding and integrated warehouse management software.
Getting these foundational elements right from the start will set you up for efficient operations, controlled costs, and future growth.
About the author:
Jeremy Barth is a Content Marketing Specialist at HOJ Innovations, specializing in warehouse fulfillment, automation technologies, and distribution efficiency. He combines industry insights and compelling storytelling to help businesses optimize warehouse operations and drive growth.
1 comment
This article offers valuable insights for businesses transitioning from a garage setup to a warehouse. The emphasis on optimizing space, investing in a suitable Warehouse Management System (WMS), and implementing barcoding systems highlights the complexities of scaling operations. It’s a timely reminder that moving to a warehouse involves more than just acquiring additional space; it requires strategic planning and consideration of various operational factors.