If you’re looking to start a business that’s aimed for success, look no further.
The self-storage industry is booming. In fact, it boasted a 7.7% annual growth rate since 2012, according to analysts. And, in 2016 alone self-storage returned a profit of over $32 billion dollars in the United States.
Best of all, you don’t need special training or even a college degree to be successful.
If you’re ready to start your own self-storage business, read on for the tips you can’t afford to miss!
7 Must-Have Tips to Rake In Profits With Your Own Self Storage Business
Self-storage might not be the first thing that comes to mind when you think of the most essential businesses dominating the world today. But, the truth is that we’ve become collectors of too much stuff. And, self-storage units have become our go-to solution.
Statistics report that 1 in 11 Americans pay nearly $100 dollars each month to store their extra “stuff”. And, with our habit of accumulating clutter holding strong, the market doesn’t show signs of slowing down.
If you want to get in on the self-storage cash cow, here are some tips you’re going to want to remember.
1. Location, Location, Location
The success of every business depends on its’ ability to fulfill a demand. If you choose a location where the need is already being met, then you might struggle to find customers.
But, if you choose a location that has the potential for business, but doesn’t yet have established competitors operating in the area, you’re much more likely to find a steady stream of clientele.
Prior to choosing a location, scout out the possibilities.
Self-storage facilities are in high demand in areas that are highly populated. They also come in handy in cities that have a good mix of housing solutions. For example, many times people who are downsizing or temporarily living in an apartment will choose to store their belongings until moving to a larger home.
When deciding on a permanent location for your business, make sure that there will be people in close proximity requiring your services. And, you should also check to ensure that there isn’t already near-by self-storage units that are staying empty.
2. Secure the Necessary Funds to Start Your Business
Luckily, the overhead to start a self-storage business isn’t as high as many of your other options. But, there are still costs to consider.
You will need to find a storage facility that is either functional as-is or can easily be converted into units. No matter which route you take, you might consult a company that specializes in storage engineering and design. They can help you formulate the best possible layout for your business.
In addition, you should make sure that your facility is properly fenced and gated, to maintain proper security. You will also need to install locks on your units and decide on the most efficient key-locking system to use.
Factor in how much it will cost to maintain staff on premises during operating hours. You will also want to think about cleaning supplies, maintenance fees, and promotional costs.
Once you calculate how much you will need during the first month of operation, you’ll have a better idea of the annual expenses needed during your first year. Ideally, you would have at least one year’s worth of expenses secured prior to opening for business.
If you don’t have the funds on hand to start your self-storage business, you might consider taking out a small-business loan. Or, you could find suitable investors to partner with during your company’s early days.
3. Consider All Possible Challenges & Threats to Your Success
It’s never smart to start a business without considering the potential challenges and obstacles that you’re likely to face.
For example, you will need to establish your company as a legal entity. You will need to employ professionals to make up for skillsets that you are lacking, such as a lawyer, accountant, and contractor.
You should definitely make sure that your business is insured from the start. This is especially true due to the fact that you are in charge of other people’s prized possessions. Should a theft or an unforeseen natural disaster occur, your customers will want to be compensated for any losses.
If you don’t have an adequate insurance policy, then you might find that people are unwilling to use your facility. Of course, that would be the least of your concerns should you encounter a situation requiring you to tap into your coverage.
4. Choose the Right Fencing & Gate For Your Business
Self-storage facilities are typically fenced and gated, so to keep out unwelcome intruders. This is an essential element that you don’t want to overlook.
Your best bet is an economical, durable all-in-one fence and gate combination.
There are several options to choose from, but steel tends to be a popular material for fencing due to its’ durability and affordability. Aluminum is also frequently used at self-storage facilities.
Check out a variety of possibilities before settling on your pick. You might find that one option is priced right. But, you could fare better with a slightly more expensive option that carries a more extensive warranty.
5. Map Out a Winning Marketing Plan
When planning a successful business, you should always include a marketing plan that will help you get where you want to go.
You’ll need a website and business cards, at a minimum. If you want to reach your business to reach its’ full potential, you might also consider digital marketing services and printed marketing materials to advertise your company and boost business.
6. Invest In Climate-Controlled Units
When starting out, you might be tempted to opt for units that aren’t climate-controlled. But, climate-controlled units tend to be a biggie with the self-storage consumer market.
If you fail to invest in climate-controlled units in the beginning, you will likely end up modifying this decision down the road. This can be a complicated procedure once you already have customers occupying units.
Also, you’ll be less likely to compete with other self-storage facilities without offering the benefit of climate control.
7. Practice Good Business-Sense
Finally, you want to be sure to use good old-fashioned common business-sense when starting your own company.
This includes keeping detailed financial records and refusing to cut corners on the things that matter most.
Don’t attempt to do it all. If there is an area that you feel you need professional guidance, it’s best to seek the help you need until you feel completely capable of handling the task yourself.
Also, don’t forget that it takes money to make money. You may have to spend a little before you see the profits roll in. Try to make the wisest decisions possible when it comes to spending and don’t overextend your budget during your first year.
Ready to Start Your Own Storage Business?
If you’re ready to start your own self-storage business, we can help.
We have experience in designing and manufacturing top-notch storage solutions. And, we can help you determine the best plan to suit your business needs.
Contact us today to find the best solution for starting your own storage company!