What It Takes To Start A New Self-Storage Business.

Your success in starting any business depends largely on how well you know your target market and the niche that you’re looking to get into. Self-storage centres have been on the rise across the board, and if you think that you have found a good location for your own, then it might be an opportunity worth jumping into. However, before you do, it’s worth taking the time to think about the business’s viability, as well as what you need to make it a success. Here are some of the key considerations to keep in mind.

Photo by Steve Johnson

Be Thorough With Your Research

One of the biggest advantages that any self-storage business can have is its location and its proximity to a target market that’s likely to make use of it. The populations that tend to drive up demand for storage services include moving trends, such as colleges, apartment complexes, as well as growing or changing commercial areas. Of course, you should also look at your competition. Having some storage options nearby doesn’t necessarily mean you’re out of luck, especially if you can find a better location for your units than they offer. However, too crowded a market and it may be difficult to stand out if you can’t identify a gap in service types or unit sizes.

You Need A Business Plan

Although the operation of a self-storage facility might seem relatively simple, you still need a clear and well-thought-out plan to plot out your way to success. A good business plan includes your startup and operational budgets, your financing strategy, plans for your site, as well as an outline for your marketing plans. A business plan doesn’t just serve as the blueprint for your business, but a demonstration of its financial viability, including your pricing structure, projected occupancy rates, and break-even point. This can be important not only to show yourself that you’re on the right track, but to earn the funding that you need to get the business up and running, as well.

A Good Location

As mentioned, the location that you choose for your self-storage facility is going to play a major role in its success. There’s a lot that goes into a good location, such as making sure that it’s both highly visible and easily accessible with connections to good traffic flow. Proximity to residential areas, universities, or growing suburbs is best for high demand. However, you should make sure to check the location’s zoning laws to make sure that the property allows for storage use. To make sure that a location is financially viable, you should try to calculate its land cost versus income potential, as higher property expenses can sometimes undermine the additional revenue that can come with, for instance, urban lots.

The Right Buildings

As they are the primary draw of your services, you need to make sure that any self-storage buildings you erect can meet both the functional demands of the service as well as the expectations of your customers. You can quickly get set up with prefab steel self-storage buildings to help you launch your business more quickly, but you need to make sure that they meet your needs.

A mixture of different unit sizes is typically recommended, including climate-controlled options, especially in areas that see extreme weather or if you want to cater to more sensitive storage needs. Steel buildings are typically chosen for their durability, cost-effectiveness, and resistance to threats such as pests, fire, and weather damage. The design of the site itself matters a great deal as well. You should aim for wide driveways, good lighting, and smart unit layouts that help your clients quickly find their stored goods.

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Get The Permits That You Need

Running a self-storage facility means that you’re going to be trusted with a lot of your clients’ belongings, which necessitates diligence and dedication to good practices. To that end, you’re likely going to have to navigate permits, regulations, and more.

As self-storage sites can be pretty large in their span, you are also going to have to understand zoning rules, environmental impact assessments, stormwater management, and construction codes. You’ll also likely need building, fire, and business operation permits. Make sure that you have the funding to meet your needs as well, whether it’s through SBA loans, private investors, or commercial lenders.

Invest In Strong Security And Technology Features

Resilient and sturdy buildings that can keep your clients’ belongings safe are good, but modern security and safety can go a lot further. Your clients are going to expect some features that can offer them some peace of mind beyond a door with a lock. To that end, you should look closely at options like high-quality fencing, gate-controlled access, bright lighting, and 24/7 security cameras.

Digital access systems and individual door alarms can also give you a competitive edge, especially for higher-priced units. Technology isn’t just about making your site more secure; however, it can also make your services a lot more convenient, such as through online booking and payment systems.

You Need A Marketing Strategy

The viability of your business and your ability to make a profit are tied directly to your tenancy rate. Absences can become costly quickly, so you should be ready to invest in a marketing strategy that’s going to help you fill units faster. Work with a digital marketing agency to build a strong online presence, including a mobile-friendly website, search engine optimisation to attract local attention, and outbound methods like Google Ads and putting your name in local directories.

You may also want to reach out to local moving companies, apartment managers, and realtors to create referral networks that might make them more likely to direct their clients your way, and vice versa. Consider grand opening promotions like discounted first-month rates or free moving supplies to attract early customers.

With the tips above, you should have a good idea of what it takes to get your self-storage business up and running. From there, it’s all about ensuring that you’re able to offer the quality of storage and level of service needed to keep customers coming back.