Self-storage facilities are all over the country and are used by just about everyone. Individuals store their personal belongings and valuables, and small businesses use them for inventory. These storage facilities are also businesses themselves, and a profitable one at that.
If you’re interested in starting a storage unit business, here are five things you should know.
1. Start-up Costs
The first step to deciding how to start a storage unit business is by your budget. There are a lot of different types of storage facilities you can own and develop, and they’ll all serve a different type of client. How much you spend will also depend on location, land costs, and construction costs.
Do you have enough liquid assets to construct your own facility or will you buy a pre-existing one and build upon it? How much will it cost to operate the facility?
2. Business Outlook
People like to buy things off of Amazon, but they also have limited storage space in their homes and apartments. As a result, self-storage facilities are profiting from this hoarding mentality.
They could be returning home from college and have extra stuff that needs storage space. Grandparents who have recently moved into care facilities also have possessions they’re reluctant to part with.
Register for an educational summit to learn more about how you can invest in self-storage.
3. Feasibility Study
A feasibility study will tell you how well you can go about opening a self-storage facility and maintain it. If you build one, will people in your area actually use it? You don’t want to start a self-storage company if another one has recently opened nearby and has done well.
A self-storage consultant can help you perform the study and make sure you’ve considered all aspects of your business endeavor.
4. The Type of Facility You Want
The four main types of self-storage you’ll consider are climate-controlled, non-climate controlled, cold storage, and portable.
Climate-controlled storage is great for anything that responds to humidity and heat. For smaller items, portable storage takes and delivers bins to your home. Cold storage facilities work mainly with perishable foods and are much more specialized.
A storage unit business using climate-control or cold storage will require more investment and upkeep than the alternatives, but they also make more money in the long run.
5. Marketing and Online Presence
Before your facility is even open for business, you should invest in and develop a marketing strategy. Whether you do so through television or internet ads is up to you, but expect to spend about 7 percent of your annual income on it.
Luckily, once you’ve landed a customer, they tend to provide long-term income for your business.
Starting a Storage Unit Business
Investing in a business is always risky. Starting a storage unit business without any training or support can be especially challenging.
If you’re set on it, why not join a mentorship program to learn how to build a successful one? Give us a call to learn how to invest in related real estate and learn the ins and outs of the industry.