We spoke with Clair, an Adelaide-based business owner and a co-founder of Unleased. Clair’s first recycling business depended on finding the right space for a large industrial shredder. What started as an exhausting search for affordable warehouse space turned into a highly successful partnership with a local plastic manufacturing business.
Take us back to the beginning. What problem were you trying to solve?
Clair: My business couldn’t actually get off the ground until I found a home for my shredder. The machine was essential to the operation, but it was far too large to fit in my garage, plus it required three-phase power. Without the machine operating, there was no business!
How difficult was it to find somewhere suitable?
Clair: Much harder than I expected. I spent weeks ringing around trying to find either a small warehouse space to sub-lease or friends who might be willing to lease me some space in their garages. Most places were either too expensive, didn’t have the power requirements, or weren’t interested in the bother of working out a sub-lease arrangement — I felt like I had been shoved into the too hard basket!
I was stuck in a chicken-and-egg situation. I couldn’t generate revenue without the machine, but I couldn’t justify a full commercial lease before the revenue existed.
How did you eventually find the right solution?
Clair: I was incredibly lucky to find a plastic manufacturing business that had some spare warehouse space. They understood what I was trying to build and were open to sub-leasing a small section of their warehouse.
For $400 a month, I suddenly had access to a professional industrial environment that I never could have afforded on my own. Plus I was only paying for the small amount of space I needed — nothing more, nothing less.
What made this arrangement so valuable?
Clair: Having the space to operate my machine was the obvious and major benefit. I was also generously granted access to shared amenities that would have been impossible for me to afford as a start-up. They had a forklift available when I needed to move heavy materials. There were people onsite to receive deliveries if I was away. The warehouse already had the right infrastructure, safety systems and power supply. Those things sound small, but they save an enormous amount of time and hassle when you’re running a one-person operation.
A super valuable benefit was that it added to my business’s credibility without any extra effort on my behalf. Just being located in a professional manufacturing facility built trust with suppliers and customers.
Were there any unexpected benefits?
Clair: The networks were probably the biggest surprise. The owner introduced me to people he knew, shared advice from his years in manufacturing, and opened doors for me. He basically saved me years of effort. Those introductions and relationships were incredibly valuable and led to my first big customer.
It sounds like the arrangement benefited both parties. How did the warehouse owner benefit?
Clair: It’s probably why it was such a smooth partnership — they had unused space sitting there doing nothing! By sub-leasing a small area to me, they generated additional income without changing their core business at all. Plus, they got to hang out with me!
From their perspective, it was fairly passive. The space was already there, the facilities already existed, and they were helping another local business get started. It was genuinely a win-win situation.
What’s your advice to other small business owners looking for their first warehouse space?
Clair: Don’t assume you need to sign a big lease on your own. Look for complementary businesses with unused space. The right sub-lease can provide far more than square metres. It can provide equipment, knowledge, connections and opportunities that accelerate your growth.
“Sometimes your best business advocate is simply the neighbour sharing the warehouse with you.”
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