According to Mordor Intelligence Research, the self storage business industry is expected will grow to $115.62 billion by 2025. This fast-growing industry appears to be bulletproof. Through-out the pandemic, people continued to seek out self storage businesses, whether to downsize, make space for a home office, or just due to a change in their lifestyles.
If you are interested in this fast-growing industry, read on. We will share the five key steps you need to know to start a self storage business to expand your wealth.
Step 1 – Create a Solid Plan
Every great idea becomes realized when it is implemented with a solid plan. If you are planning to start a self storage business, you should take time to learn from experts in the field. The Self Storage Starter is a great place to start. It helps you conceptualize your idea and create a plan that is profitable and easy to implement.
Step 2 – Know Your Target Market
People look for storage near their work or their homes, depending on their needs. When picking a location for your business, know the audience and the individuals sharing your zip code.
Step 3 – Establish Your Goal; Map to Your Budget
Self storage units are relatively easy to run. One key is knowing your own goals. Is this a part-time business that you will run? Or will you be looking to bring in others (investors) and replicate your success with one location to others?
Both goals are viable; the main difference is the amount of upfront funds you will need to start the project.
Step 4 – Ensure Compliance
Take time to research all the Federal, State, & local business tax and legal requirements. The Small Business Administration is a great place to start. They can outline all the appropriate actions to take to start a business.
If you are purchasing an existing business, engage the help of a business attorney to help you navigate all the red tape associated with a business purchase.
Step 5 – Hire the Right Team
A self storage business isn’t complex, but it does require some specific skills. If you don’t have them, work to develop them. If you are planning on hiring staff, look for these specific skills.
Focus on the small stuff. Rental agreements, monitoring property all are activities that require attention to detail.
Organization. The larger the business, the larger the organization. You will need to track renewals, new clients, storage unit move-outs, all of which require organization skills. Don’t forget the technical side of organizing. Harness the right software to stay on top of business activities.
Don’t forget those customer service skills. While you may not see your customers every day, the size of self storage businesses means they have options. Set yourself apart from the crowd by having top-notch customer service skills.
Are You Ready to Invest in Self Storage?
We support investors in the self storage business. Our goal is to provide the knowledge needed to harness the power of this fast-growing industry.
Contact us, our team can help you learn the ins and outs of self storage businesses. We have free resources to help serious investors.