Tag Archives: success

Alternate Forms of Revenue: Opening a UPS Store

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As an entrepreneur, chances are you’re looking for every medium possible that can help bring in extra money. Whether it’s adding on a coffee shop, putting in a vending machine, or becoming a certified UPS store, there are always ways to capitalize on your building’s space. Think of the first person to cram a Wendy’s or McDonalds into a gas station. It may have seemed like an unlikely combination at first, but by cutting back on overhead (using a single building) and increasing convenience (the “convenience” store), owners can significantly increase their profits.

One such venture is to turn your facility into a UPS store. This is a combination, unlike gasoline and hamburgers, that goes hand in hand. For example, UPS stores sell packing supplies, boxes, labels, etc. When customers are bringing in items to store, they have easy access to the supplies they will need. And, on the other side, those who come in to pick up or mail a package learn about your storage facility. Plus, you’ll be earning money from the store’s sales, only a fraction of which goes toward royalty and franchise fees.
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Offering Truck Rental Services at Your Storage Facility

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As a self storage facility owner, you may wonder what connection truck rental companies can have with your business. Yes, you’re both in the same field, but generally it’s the customers who rent their own trucks, right? Not necessarily. By pairing with a rental truck service and pooling resources, you can not only make the moving process easier for customers, but can make money in the process. And since you’re offering an all-in-one-stop, renters are more likely to see your bundling services as a way to save time.

Whether you partner up with a specific truck rental company, or decide to offer advice and reviews on all available options, branching out to truck rentals is a great way to expand your business. One storage company in Columbus took the partnering route in order to join forces. Just a few weeks ago, Chatterton Self Storage announced they would be renting out U-Haul trucks to their customers. The trucks will be located on the premises to help reduce travel time and hassle for future movers.
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Being Thankful in the Self Storage Industry

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With Thanksgiving looming around the corner, I thought this week would be a great opportunity to talk about some of the thankless tasks within the self storage industry. Anyone who has ever owned property, managed a business, or even just held down a job, knows how many steps that can be involved in a day-to-day operation. Trash has to be taken out, sidewalks swept and kept clear of ice, billing and paperwork, maintenance – the long list of chores could go on for pages. But, unfortunately, those who complete those tasks don’t always get a pat on the back.

First things first, the manager is the person who makes your business run. They are also the middle man, passer of information, and answerer of questions. Managing means taking care of the small details, and one of the simplest of details is showing others how much you appreciate their work – remind them of how helpful they are. As for other employees, they’ll fulfill countless tasks such as running auctions (no two of which ever turn out the same), and making sure statements get out on time – both of which are the reason you’re making a profit. So, why you’re technically paying the bills, they’re making it possible. Let them know.
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Don’t Overestimate the Self Storage Competition

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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.
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Economy 0, Self Storage Business 1

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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.

How to get into the Self Storage Business Part 4: Cashing in on your Networking Skills

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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.

How to get into the Self Storage Business Part 2: Investing in your manager

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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.

How to get into the Self Storage Business Step 1: Securing a Loan

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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.

Self Storage Business Expansions Prove Market is Stable

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With the current strain that the economy has caused many businesses, it’s not hard to see why many have began to broaden their horizons.  In uncertain times, small business owners are the first to realize just how much a bum economy can affect their profits.  And as property owners, their services may be some of the first to be seen as “trimmed fat.”  However, rather than selling, jacking up their prices, or, just closing up shop, many self storage companies have chosen a different option: branching out.

In the past year we have seen a number of property investment companies not only join up their businesses, but begin to offer more for their current customers. A business that used to offer self storage services is now providing moving truck rentals — an all-in-one deal.  And a company that once focused on storing documents or other climate-controlled items, might now break into the real estate market and start its stint with property rentals.  Other businesses are simply partnering with one another to ensure shared patronage, an example of networking to the extreme.

These company expansions are a show of the self storage market’s willingness to adapt and change in order to continue its success.  It’s also proof that the storage business continues to thrive.  A failing company does not have the ability to expand its empire. The fact that storage company after truck rental business continues to do so shows they have the collateral to support it.  Seeing others expand should be reassuring to any small business owner.  It reassures that the self storage market, despite a down economy, is profitable and stable.

Why is Self Storage so Popular?

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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.