If you are thinking of starting a small business that is useful in your community, starting a self-storage facility is a great option. People always accumulate more than they can fit in their homes and look to self-storage facilities for easy and convenient storage in their neighborhood. You can be the answer to the storage needs of your community in just six steps. Read below for a guide on how to start a successful self-storage facility.
Scope Out An Ideal Location
The purpose of many storage facilities is to be located near residential areas so that homeowners can easily access their storage without traveling a long distance. When you begin your plans for your self-storage facility, take the time to scope out an ideal location in your town or city. Because the success of your business relies heavily on the location, you ideally want a property that’s easy to access, visible from major roads, and close to residential neighborhoods or commercial areas. Look for pre-existing facilities or plots of land that are suitable to turn into a storage facility.
Do your research to see that the sites you are looking at are zoned appropriately for self-storage use. If spots you like are not zoned properly, you may need to apply for rezoning or special permits, which can be time-consuming and cost a lot. Also, the topography and soil conditions in different locations should be considered. Flat land with good drainage is ideal, while flood-prone areas or steep terrain are a bad combination with storage facilities, as you could deal with unhappy customers down the line if their storage gets damaged.
Create a Business Plan
Knowing your market is a big part of creating a business plan. Start by doing market research in your area to get a good feel for the demand for self-storage facilities. Once you know there is sufficient demand for self-storage, the next step is crafting a detailed business plan. This document should clearly outline your business goals, target market, financial projections, operational structure, and marketing strategies.
Start with a cost analysis. Factor in the price of land, building construction or renovation, necessary permits and licenses, marketing, staffing, and insurance. You can then project your potential income based on unit pricing and expected occupancy rates. Include a break-even analysis to estimate how long it will take before the business starts to be profitable. A well-thought-out business plan will help you secure financing from banks or investors because you can demonstrate that you’ve done your homework and understand the business.
Secure Financing
The upfront investment in a self-storage facility can be hefty. From putting down a down payment on a property to paying for Self Storage Construction, you will need some help financing the new business long before you start seeing a profit. To get funding, you can take out a small business loan, get a traditional bank loan, or find private investors. If there is enough demand in your area for this kind of facility, then you can likely find local investors to work with.
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Build or Renovate the Facility
Once your financial backing is secured, it is time to break ground on your self-storage facility. You may be starting from the ground up or building upon a pre-existing facility, but either way, you need to focus on creating a design that’s functional, secure, and scalable. The layout of your facility should also allow for easy vehicle access with rows of storage units and wide roads in between each row. Depending on what kind of storage you want to offer, you may need to build storage units of all sizes, including a mix of standard, climate-controlled, and specialty units for RVs or boats.
Market and Open Your Facility
After the construction of the facility is finished, it is time to make your new business known to the local community. You can do this by paying for billboard signage that indicates how close drivers are to the facility and by building your brand online. Invest in local SEO so that when residents of your area search for self-storage facilities, yours is one of the first to show up. You should also claim and fill out your Google Business Profile and encourage reviews from your first customers. Social media platforms and community bulletin boards can also be useful tools to spread the word.
Plan for Growth
As communities grow, there will be more demand for storage facilities, so if you want your business to have longevity, it is important to always plan for growth. Once your business takes off, it is always good to keep your eyes open for other prime locations where you can franchise the business.
Starting a self-storage facility is a big endeavor, but it can lead to a fruitful business that fits well into any community. Follow these steps to find and build a great self-storage facility in your town.
