How to Start a Self-Storage Business
A self-storage business provides storage solutions for a variety of users. These include individuals who are moving and need temporary storage, small businesses that need daily storage for their business products, and large businesses that need to store excess merchandise. With a steady demand for storage and low operating costs, a self-storage business can be a profitable one to own.
Think about the type of storage business you plan to run. Traditional storage companies have fixed storage units on site. New storage businesses have portable units that are delivered to the customer’s home and then returned to the storage site when the customer has filled it up.
Secure financing. It will take at least $50,000 to lease a large space, build storage structures, secure permits and obtain other related business needs. Of course, the amount of financing you require will depend on the type of storage facility you are building.
Choose between purchasing an existing business and building your own. Purchasing an established business may be more expensive but most of the work would have been done for you. Building your own business may take more time but it allows you the flexibility of creating your structures as you wish in your preferred location.
Consider your customer base. The type of customers you plan to serve will decide the mix of storage structures you build as well as the location of your business.
Search for a location. Research the areas you are interested in to ensure that it is not saturated with competitors. You will also need to consider the type of customers you wish to attract. Self-storage businesses that cater mainly to other businesses are usually located in commercial areas.
Build your structures. Most storage businesses have more commercial clients than individual clients and build their structures to fit. Storage units for large businesses are generally bigger and cost more to build than those for individual customers.
Hire your employees. Most self-storage companies usually have three people on staff to handle security, maintenance and office operations, respectively.
Join the Self Storage Association. The SSA provides a variety of benefits, including information and resources, to its members. There are different types of membership and membership dues are accessed accordingly.
Find out more about the self-storage business. Learn how to select and run a self-storage business with “How To Make Money In Self-Storage: The Keys to Unlocking Self-Storage Profits” by RK Klibenstein and “Self-Storage Investments” by Richard Stephens (see Resources below).
Tips:
The economic level of your service area also decides the size of the storage units. Higher economic levels call for bigger and more luxurious structures. Lower economic level areas call for smaller storage units.
Warning:
Self-storage businesses are not instantly profitable. It will take about a year or two to recoup your initial investment.
Resources:
Join the Self Storage Association
Learn strategies for success with How To Make Money In Self-Storage: The Keys to Unlocking Self-Storage Profits
Discover the various types of self-storage business available in Self-Storage Investments
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