Starting a Self Storage Services Business

Self storage services provide a convenient and cost effective way for people to store their personal possessions. There are currently about 54,000 self storage facilities in the United States. That is more than the number of McDonald’s, Starbucks and Subway locations combined. Self storage facilities range from companies with national footprints to regional operators to stand-alone independent “mom and pop” operations. The industry generates a healthy cash flow and is well suited to both owner-operators and investors looking for a solid business opportunity.

One of the first steps to starting a successful self storage business is developing a thorough business plan. This can be done on a self-serve basis using online tools or through the help of professional business plan writers and consultants. There are also many nonprofit organisations that offer free business counseling to entrepreneurs. A good business plan will include a detailed business model, market research, competitive analysis and financial projections.

After completing the business plan, it is important to obtain the funds necessary to begin the operation. The costs associated with constructing or purchasing the property, as well as the operational expenses will need to be covered before your facility is ready for business. Many lenders have special financing for the construction and development of self storage facilities. This financing may be available through an investor syndicate or a tenant-in-common arrangement.

The self storage services typically caters to both residential and commercial customers. The residential sector includes apartment renters and homeowners. The storage space acts as a extension of their living spaces, which often are not large enough to accommodate all of the possessions they own.

Businesses may need extra space to house inventory, equipment and supplies. Creating an affordable, easy-to-access location for these items is a valuable service to small businesses. In addition, the flexibility of storage services allows for businesses to scale up or down as their needs change without the need to invest in new space.

Self storage companies offer both indoor and outdoor spaces. Outdoor units are more accessible and can be accessed through a drive-up entrance. Inside, units are usually climate controlled.

Some storage facilities also have specialized spaces for vehicles, wine and other products. These spaces can be customized with shelving and other features to maximize storage capacity. Some storage companies also offer packing supplies for an additional fee. These supplies can include moving boxes and locks.

Before opening a self storage business, it is crucial to know what types of storage spaces are in demand in your local area. This can be done through a SWOT analysis, which is a common business planning exercise that involves listing the strengths, weaknesses, opportunities and threats to your company. Performing a SWOT analysis can also help you identify your target audience and create an advertising campaign that appeals to them.

Whether you are starting a new facility or acquiring an existing site, a careful review of the market will determine what type of storage space is required and what size it should be. You will also need to determine what amenities your facility should offer. Some examples of these amenities are gated entry, on-site security personnel, CCTV surveillance and secure locks for storage spaces.