How to Start a Self-Storage Businessby Emma L. Business consultant
As the demand for residential and commercial storage has been growing in the last decades, owning a self-storage business is a lucrative idea for those who are considering their own business venture.
Still, before you decide to invest your time and money in this sector, you should get a thorough understanding of how it works. In order to be successful in this kind of venture, there are some steps you should follow.
Research the market
The first step for you to take is to analyze the local market. You need to determine whether there is a demand for self-storage units in your area, as well as get a notion of who your potential clients would be. Also, it is of crucial importance for you to look into the competition and determine their capacities as well as the quality and the cost of the service they are providing.
During this phase, think of the ways you can differentiate your service from your competitors’. Affordable pricing can be one of the ways to attract your customers, but providing your clients’ assets with extra-security may do even a better job.
Make a plan
The data you gathered through your market research and estimated start-up costs will be included in your business plan, as well as your plans for your future development. As one of the crucial documents for starting your self-storage business successfully, your business plan should also include your business objectives and goals, the ownership structure, marketing strategy, and a detailed financial plan for the first few years of running.
In addition, a clear, credible and well-researched business plan is fundamental if you need to search for external financial support for your start-up. You will need to know precisely what your funding requirements are, as well as whether you will have any future financial requirements in the next few years. For example, as research shows, adding moving equipment and moving truck rentals can boost your profit by 5%, and if you are considering this kind of expansion, it should be included in your plan.
Location and self-storage units
No matter whether you are thinking about buying or leasing the property, choosing a suitable location for your self-storage business can make all the difference in how much time you will need for your investment to return. If you’ve done your research on the market well, you have a pretty good idea on who your prospective clients are, so be sure that your choice of location fits their needs. The location itself needs to be easy to spot and approach, so look for places with a lot of traffic and those that are properly zoned for business.
Also, you need to decide whether you will build your own storage units or buy them. Some companies are specialized in constructing and delivering customized storage solutions, so going through the offers may save you a lot of effort and time, or give you an idea of what the possibilities are.
Check the regulations
When starting a self-storage company, it’s important to make sure to register your business properly and check out all the necessary legal and tax regulations which can apply to the storage unit industry.
If you are new in this sector, it would be wise to consult an attorney who can help you acquire all the permits and licenses you need, as well as give you a hand with the contract documents, insurance policy, employment agreements and other paperwork. As the consequences of not following all these procedures might result in various penalties, ensure you’ve covered this area carefully.
Build a brand
From the early phases of your business development, think about how to best build a brand around it. To succeed, you need to be recognizable at least on your local market, so consider how to best achieve this goal. Building a strong online presence is the first step to take. Make sure your self-storage business is ranking well in local searches in your niche, as statistics say that 46% of Google searches are local.
For your business name to show up in local searches, you need to do several things:
List your name, address and phone number (NAP) in all local directories in your niche;
Have your Google My Business listing with all the relevant information;
Try to get reviews and recommendations on your profiles;
Optimize your content to include maps with location and a geo-targeted service page.
Also, think about ways to actively reach your prospects and offer your services – you can do this with billboards, flyers and mail-outs, as well as with social media promotions. Knowing who your target customers are will be crucial for your marketing efforts.
So, if you want to enter the self-storage business smoothly and seamlessly, it’s essential to make a thorough inquiry of market trends and plan your venture carefully and by following all the relevant requirements. A wise choice of location as well as a fresh and well-tailored marketing strategy will help your self-storage business thrive.
Created on Jun 3rd 2019 02:56. Viewed 334 times.