Over the years I’ve seen and heard hundreds of excuses for people not starting their own self storage business. “There’s already too many facilities in our area.” “I wouldn’t know where to start.” Or, “My neighbor rents from such-and-such.” And while the excuses themselves may vary, they all have the same theme: overestimating the competition. Many of these startup businesses fall short before they can even launch due to lack of confidence. But, there are several reasons you should have faith in your abilities.

Why Certain Fears are Invalid

When I hear “There’s already too many facilities in our area,” I always ask for more info. How many facilities? Are there climate-controlled units? Individually alarmed? Business Centers…? More often than not, these questions can’t be answered. Just because there are “a lot” of self storage facilities doesn’t mean every market is covered. Many owners overestimate what their customers will want, offering services that are more than consumers are willing to spend. Others may have underestimated storage needs. The key is to find a gap in the market and take advantage of it.

These other excuses can simply be solved by gaining confidence in what you’re doing. Do bigger-named companies have “control” of the market? Start advertising as a self-owned shop. Offer competitive prices, or simply connect with your customers. Never assume the current businesses have it under control. The self storage market is a versatile one. The business is continuing to expand, and those who are staying ahead of the curve are the ones seeing this growth – not necessarily the ones who own the most facilities. Find a gap in the industry and take charge, regardless of what the other guys are doing.

Out of all of the successful tips I’ve found, none have been as helpful as simply understanding what the customer wants. Tap into your inner consumer, and you’ll find it can be easy to compete with even the largest of self storage facility companies.

It’s nothing shocking to hear yet another blog/article/news piece about the failing economy. Every day the media is announcing one more way the US economy is hitting the ground. From banks, to small business, to Fortune 500, it seems that everyone has taken a hard hit from the Great Recession. However, it seems that, with all of this negative financial news does come an up side, there is one industry that is thriving more than ever: the self storage business. (I knew I got into this business for a reason.) And for those still standing on the outside of those storage garage doors, it’s not too late for you either.

How is the Self Storage Business Thriving in This Economy?

If you’re wondering how the self storage market is thriving when financial companies can’t even make it, you’re not alone. People from all across the country are analyzing the self storage business and looking to duplicate its success. Their results? There are several for the current success rate. Here’s the top three contributors I’ve researched:

1. Banks aren’t approving many loans. Rather than purchasing land, building, and then renting, owners are buying up current properties. Bankrupt furniture businesses, grocery stores that have closed – no matter the building, almost any property can be built with plans for a storage units in mind. (And many for prices much lower than their worth.)
2. People are downsizing. With the looming thought of an increasing mortgage payment, or just the realization that a home is too large, many are packing up and moving their excess belongings into a self storage unit.
3. Bang for your buck. Buying a property outright can be expensive. But renting for a few months is much more cost-friendly and allows renters the flexibility to use a unit for as little or as long as they need.

But, as many have found, why the self storage business is thriving isn’t so much as important as the why-haven’t-I-been-doing-this-for-years. Newcomers from all over the employment map are beginning to purchase storage units and renting them out. Former businessmen/women, former salespersons, and even those just looking for some extra side money have bought units and started turning a profit almost immediately. And just because you haven’t gotten in the game yet doesn’t mean it’s too late. To find out more on how to get into the self storage business, contact us or check back here for weekly tips.

In our past few blogs, we’ve talked about some of the essential skills one should have when starting a self storage business, or any property-ownership business for that matter. We’ve shared our expertise on the importance of learning to network, but now we’re going to take it a step further and show you how to capitalize on those connections. With solid networking skills and maintaing business relationships, you can help further your company in ways that, alone, would have never been possible.

First of all, it’s important to follow up with your connections. (Trust me, I would have gotten nowhere in this business without learning how to network.) Whether you’ve met a fellow property owner at a convention, through an online meeting, or while getting your oil changed, you should be sure to cash in on that relationship. So, what is a follow up? It’s a second chance to talk to a connection, remind them of who you are, and to discuss where you’d like your working relationship to go. It shouldn’t be too forward or intimidating, just a chance to say, “It was nice meeting with you; are you interested in working together in the future?”

Start off by reminding the connection how they met you, “We met on such-and-such day and talked about this-and-that.” (It’s best to follow up within 72 hours of meeting so faces and conversations haven’t been forgotten.) This will help the connection feel at ease and confident that you aren’t a telemarketer or a cold caller. For example, when I meet a new person, I make a point to talk about something interesting so they’ll be sure to remember the conversation. Ask them if they heard about that storage company selling their property for $1, or how do they feel about giving their customers stock options?

Then, once you’ve got them to remember you, it’s time to discuss your future plans. Is the connection a contractor who you’d like to work with? Are they looking for rental space, which you have to offer? Do you simply want to keep each other in mind if an opportunity should arise? It’s also a good idea to offer an incentive so they don’t feel as though you’re hunting for a sale/handout. “If you rent with me, I’ll offer you a six month discount,” or “Do you offer any construction deals for first time clients?”

Finally, now that your connection has been made, keep the relationship alive. Perhaps you ended up doing business together, or maybe you simply earned a space in the other’s rolodex. Either way, it’s a good idea to make yourself fresh in their mind – after all, what is it going to hurt if you send the occasional email? LinkedIn connections are also a great way to keep in touch, or if you have a company newsletter, add them to the mail out list.

With these networking tips, you’ll be sure to help stay on top of your connections, and manage to give yourself the upper hand in your new business venture.

In the past month we’ve discussed a few different tips to help newcomers break into the self storage business. Today, we’ll talk about one more important tool to put in your belt that will help any new property ownership business flourish: networking. While no one will argue that networking is an important aspect for any self storage business, many may not see the full potential that can be found in solid networking skills. Knowing the right people and knowing how to get in touch with knowledgable people can often help make or break your self storage company.

Networking and Your Manager

When it comes to networking in the self storage industry, this is one skill that you should look for in a manager or be willing to teach them. Having the proper networking skills can provide multiple opportunities for your business, and, in the long run, the time and energy spent on networking will more than make up for itself. Whether you find a manager who is a networking pro, or choose to invest in their training, it’s a good idea to make sure their skills are as current as possible. Subscribe managers to newsletters, send them to managing events, or just ask that they keep in contact with others in the self storage business. Then, when an important event is coming up, they will not only have current contacts, they will have the necessary skills to make new ones.

And as the owner, it’s always a good idea for you to keep up on your networking skills as well. There is plenty to be learned from others in the business, and the sooner you take the time to get to know more experienced self storage facility owners, the more you’ll be able to gain from those relationships. Reach out to others, and attend business related events – one of the best ways to meet up with other self storage investors.

Remember that solid networking skills will only help you in the long run and keep you connected with others in the business. Be sure to check back in for our next post on breaking into the self storage industry.

Here in the self storage business there are many important aspects to keeping your business in line. However, perhaps none are more important that who you choose to manage your facility/ies. A good manager can turn a self storage facility into a booming, profitable business, and in the same light, an awful one can bring it tumbling to the ground. Finding the right manager may be a time consuming task, but a necessary one when you consider all of their responsibilities.

Choosing your manager

When it comes to finding a self storage facility manager, do your homework. Do your potential hires have experience? Is that experience topic related? Or will their other skills translate? Just because a potential manager has minimal experience with the self storage industry doesn’t make them a bad choice. Look at their backgrounds: have they worked in retail? Dealt with customer service? All of these things will fall under your manager’s jurisdictions. Look beyond their former positions and see what skills will help them succeed in the self storage industry.

Another aspect to consider when hiring your manager is to get help from an outside source. Having a personal relationship with a potential hire or choosing after first impressions aren’t always a good idea. Ask a fellow property owner to help you decide, or a close friend who has experience owning their own business or working in management. When it comes to picking your manager, you can’t afford to get emotionally involved and risk choosing the wrong hire.

Ongoing education

Next, once you’ve made your pick, don’t forget that the self storage business is always changing, and so are the management techniques. There are hundreds of opportunities for continued education, and allowing your manager to expand their knowledge will only make them better at their job. Treat your manager to seminars, webinars, speakers, or a training sessions on a regular basis. Not only will the expense help your employees, but it will have a direct (and positive) effect on your business; helping it run smoother. And although it may seem like a costly expense, remember that with employees, you get what you pay for and your manager is the central piece holding your business together.

From the outside looking in, the self storage business can often look intimidating. Especially in an economy where it’s difficult for anyone to get a loan, particularly first time property owners. However, there are steps that you can take to make getting into the self storage business easier and less stressful.

First of all, it’s important to understand why banks are so selective when it comes to self storage borrowing. Not only is it a property loan, but the self storage industry is unique from most other property ownerships. In fact, it’s more of a retail business – meaning you not only have to known how to be a successful landlord, you have to know how to run a sustainable retail business. And if you have little or no experience in either field, banks and credit unions are often hesitant to cough up the loan.

How to Gain Credit

Before heading into the loan office, it’s a good idea to build up your credit. Whether it be business or personal, having a good track record will only help your chances at getting approved. If you’re working under a company name, be sure to register with the three credit bureaus. It will put you on the map with creditors and allow banks to check your Small Business Credit Risk Score. Another way to earn a high credit score is to open up a checking account or credit card in your business name. And if you’re operating under your personal accounts, make sure your debts are paid up and any previous property loans are in order.

Next, get to work on your paperwork. Your loan application is one of the most important steps when purchasing your very own self storage facility. Make is shine by highlighting all of your assets. Have you owned property before? Worked in retail? Show the bank your skills and why you’ll be great in the self storage business. On the other hand, though, make sure the skills you’re listing are worth bragging about. Selling retail in college for a few months isn’t exactly going to impress a possible investor.

Finally, utilize your resources. Do you currently own properties? What collateral do you have to offer?Having a sufficient amount of insurance is sure to help any lender feel at ease when handing you a check. Another helpful resources is hiring an experienced manager. Bringing in an employee who is well-versed in the business will prove to the bank or credit union you’ve done your research and are serious about the loan and the self storage industry.

In the past few decades, it’s safe to say that the self storage industry has taken a sharp turn in the upward direction. People are accumulating more and more over the years, and have less space to store them. We’ve also witnessed a steep increase in people moving over the past several years, while the desire to relocate everything you own is not quite as popular. Where there’s a need, there’s room for a popular business, and with the increase of all of the above, self storage companies have been popping up ever since.

Of course there are still many who have a large enough basement to hold all of their belongings, or people who are less sentimental and hold an annual garage sale to rid themselves of any extra items. But that hasn’t slowed the market for self storage investing down in the least. As a self storage facility owner, it is important to know where this business is coming from. And the next time you’re marketing or looking for new customers, keep these demographics in mind.

Top Self Storage Users

1. Military Families

With the constant moving and unpredictability military families (or singles) often face, many choose to keep certain belongings in a self storage unit. While they may be stationed overseas, across country, or even across town, they have the flexibility to move freely while still keeping their things safe. This option is often more fiscally responsible for those who frequently move.

2. College Students

Younger generations may move from home and find they simply don’t have the space they did in their former homes. Perhaps they’re parents have moved, or whatever they need to store needs to be closer than their previous residence. Self storage is also a good option for students or those just starting out on their own as it is much cheaper than purchasing or renting a larger property.

3. Those who have downsized

Many people who have decided to sell their larger homes are left with an overwhelming amount of belongings they no longer have the space to store. Using self storage units are a great option for them to hold onto their keepsakes, while not having to commit to a larger property than they need. And, if these people are still in limbo, it offers them a safe place to keep their things until they can get settled into a new and more permanent home.

4. Just need the extra space

Finally, self storage businesses everywhere are help kept full by those who simply don’t have the room to hold everything. Whether they are storing a family member’s belongings, waiting to sell their goods on eBay, or just have a hard time getting rid of things, these renters have the flexibility to rent space as it is needed. Building a garage or shed is expensive, but renting a storage unit allows someone else to pay all of the property bills. It also provides the option of using as much or as little space as you need. 

Last week, we talked about new tips for marketing strategies for your self storage business by purchasing TV time slots. Today, we’ll take the idea of marketing through television and expand on it even further. For those who have already made an investment in TV time slots, you’ll understand the ease of getting your name out there through the power of commercials. However, for those who are wanting to expand on their commercial, there are many options to utilize TV ratings even further.

Start by checking in with your local TV station(s). Oftentimes, smaller stations will have a channel that is very similar to a radio show. Radio ads are played along with a picture of the business and contact info. This is not only a way to reach a larger number of people, but to capitalize on another channel through advertising, while essentially offering them two separate ads as only one is through video.

Next, check the station’s website. Do they sell ads? Purchasing an online ad next to the classifieds will ensure that interested consumers will see your self storage ad. The ad can also be seen by those who may be more technology savvy and may record their shows or watch them online.

Finally, ask any TV or radio stations if they are looking for any sponsors. When they cover a live event, these stations may have banners or give away items for listeners and viewers. By buying one of these spaces for your company, you will get your name out there by spending minimal amounts. And if you participate in the giveaways (self storage businesses could offer free keychains or calendars), consumers will be reminded of your business while also passing along your info to others.

The next time you’re working on your self storage business’s marketing strategies, keep these simple yet effective ideas in mind.

Seven Hallmarks Of A Great Self Storage Workplace

I often consider the concept of a workplace and what in particular defines it. What makes it remarkable? What makes it distinguished? Particularly, what prevailing elements do workplaces in general share that might be deemed outstanding or unrivaled? Putting aside preconceived notions of larger versus smaller companies or of viability in any particular industry, I believe a workplace can still become prestigious if it takes into account and adheres to the following: Read the rest of this entry »