The self-storage industry has been booming around the world in recent years thanks to the mass urbanization and the constant need for new residential and commercial building projects. As the world’s population is increasingly migrating to cities and towns, both homeowners and business owners are in a need for more storage space. This is where your business comes in.
By investing in a self-storage company, you can create a passive source of income (by renting the storage space to tenants), and thus create a lucrative business in a matter of months. That said, you will need to plan for this venture and execute your strategy just right in order to ensure long-term success. Here’s what you need to do.
It all starts with a business plan
No matter how much a product or a service might be in demand, you still need to write a comprehensive business plan with strategies and complementary tactics that will ensure the success of your business. Don’t rely solely on the demand of the market, but rather conduct a thorough analysis of your company’s strengths and weaknesses in order to prevent common pitfalls.
You can start by creating a basic SWOT analysis of your idea. Identify the unique strengths, weaknesses, opportunities, and threats to your business, and then proceed to research your competitors as well as your demographic. These insights will help you shape your business plan and your growth strategy.
Obtain the necessary finances
As with any new business venture, the success of your company will rely on your ability to obtain the necessary capital, as well as to secure the finances needed to cover all operational costs until you start making a profit. While gathering the finances to build your storage building might be a cumbersome task, the good thing about self-storage is that it doesn’t have high overhead costs.
This means that once you have obtained a loan and have finished the construction process, your expenses will be minimal. These will include basic building upkeep and electricity, as well the maintenance of any other features it might have.
Complement with modern features
Speaking of features, it’s important to know that self-storage is not just about constructing big storage boxes for tenants to use – it’s also about equipping them with modern features that will appeal to the modern tenant. Nowadays, prospective tenants want modern self-storage to boast functional storage solutions that will complement their exact needs.
For example, a homeowner might just need a big empty space to put their belongings, but a business leaders might need a space with storage features that make it easy to organize files and other important things from the office. Additionally, you’ll want to invest in security features right off the bat, as modern tenants want and need to know that their belongings are protected at all times.
Find the best location in town
When it comes to physical products, even self-storage units, location will be the key to your success. People need their storage units to be within easy reach should they need to pop out to grab something at a moment’s notice. While you don’t need to buy a plot in the middle of town, it will still be important to find a location that is easily accessible. And don’t forget, it’s best to position your building in a residential or commercial district.
Invest heavily in marketing
On a final note, understand that business will not grow all on its own – you need to market your way to success. Be sure to invest in online and offline marketing, and craft appealing marketing plans that will grab the attention of the local demographic. You can build a website to list all of the features of your facility, and send out emails along with flyers and pamphlets to get your business in front of the eyes and ears of your potential customers.
Self-storage is a growing industry, and an excellent career path for aspiring entrepreneurs who want to create a passive source of income over the long term. Follow these tips to build a thriving self-storage company, and don’t forget to revisit them when the time comes to expand into new markets.