Negosentro.com | A self-storage business is one of the most appealing businesses for the small investor. However, as any successful storage owner would tell you, launching into the self-storage business market can be stressful and intimidating. If you need to start a self-storage company, you must look beyond the profits as well as weigh all the practical considerations.
There are big questions you must ask yourself before getting your business off the ground. Fortunately, we recently got the opportunity to engage the experts at Canningvale Storage Units for their take on what needs to be done to get a storage business up and running. Below are 6 strategies you need to follow before starting a storage business.
- Weigh the Startup Costs of Starting a Storage Business
Before you even choose a location for your storage facility, it is necessary to weigh all the costs of entering the storage business. The process involves crunching some figures – whether you want to build a new facility or buy an existing one. At the outset, weighing these expenses is necessary to have a good understanding of how much it would cost to get into the storage business.
The numbers may vary widely depending on numerous factors, including acquisition costs, location costs, land costs, and construction costs. Make sure you have the financial muscle to carve out millions of dollars to buy or construct a facility, as well as to cover other operational expenses. Also, set aside some funds to cover any unexpected costs throughout the process of setting up a storage business.
- Do Thorough Research into the Storage Business Market
Conducting the market research and feasibility studies is imperative to gain an understanding of the storage industry before you commit your time and resources into the business. As you might already be aware, the self-storage industry is a rapidly growing sector for small businesses, and it might be highly lucrative if you do things the right way. Before you get the business off the ground, make sure to have a clear picture of things like the profits and costs, the local competition, and the local demand.
You might want to kick-start your research by going through paper listings and online platforms for storage businesses operating within your locality. Focus on the capacity and service they offer, along with the prices they charge. By so doing, you will be able to learn more about them in the quest to counter their efforts.
- Write Your Business Plan
Every business out there has to have some sort of a business plan. In simple terms, this crucial document helps propel a business to achieve the expected success, allowing you to accomplish your objectives and manage issues that might come up along the way. Besides, financial institutions will always want to view your business plan before offering the financial support.
Your business plan should encompass the comprehensive market research you have conducted, your projected business expenses, as well as plans you have in place for the future progress of the business. A crystal-clear and credible business plan is absolutely vital for anyone who wishes to seek financial support from lenders. You can use several templates online to write your own business plan and make the necessary modifications to suit your business objectives.
Bear in mind that a business plan for an existing storage business will appear quite different from a startup facility. Additionally, each business has unique needs, and so the business plan should be tailored to reflect those needs. A business plan for a self-storage business may include the mission statement, vision statement, ownership structure, business structure, staff roles and responsibilities, etc.
- Choose a Strategic Location
Choosing a strategic location is an essential part of setting up a storage business. Simply put, a strategic location is the actual premises where clients will be keeping their stuff. Make sure to obtain a secure place for storage in an accessible location – and also with high traffic.
Moreover, it is fundamental that you secure a location that is properly mapped out for business development. At this stage, you can hire an experienced self-storage broker to help you find a perfect location for your facility. Seasoned brokers often understand the ins and outs of the market, plus they can negotiate prices on your behalf.
- Comply with all the Relevant Tax & Legal Regulations
Every storage business in the storage unit industry must be registered and in compliance with tax and legal regulations. Before your business operates, it must also be licensed by both the State Licensing authorities and Federal Licensing authorities. If you are not sure where to start, you are advised to hire an attorney to inform you of all the relevant laws, licenses and regulations to follow.
Your attorney may also be knowledgeable regarding financial aid and grants available for small businesses. Often, sometimes the government might give you the financial support as you set up your first storage facility. Inquire from your attorney about different financial aid schemes and grants that you might be eligible for from the government.
- Reach out to Customers
An effective way to reach out to customers is to develop an online presence. A successful self-storage business has to have a company website – not necessarily an elaborate one – where customers can learn more about products and services the business offers. Develop a secure and convenient website that is reasonably easy to use by potential customers.
Once you have established an online presence, you can also take your marketing to a whole new level by actively reaching out to potential clients through flyers and mail-outs. Do not forget to leverage the power of social media as a tool for engaging with potential customers. Majority of customers for a business like self-storage often make inquiries through social media platforms like Facebook, Twitter, and other online networking services.
To jump into the self-storage business bandwagon today, you need to adhere to the strategies we have outlined above, which seem easy to learn and implement. Follow the above tips and you will stand ahead of the competition with shoulders way beyond the other startups. If you lay the groundwork properly, you will be able to build a very successful storage business that will create immense wealth for you.