Starting a self-storage business is an admirable and exciting pursuit. Moving house is a stressful time in people’s lives, and to give them one less thing to worry about by keeping their most precious belongings safe is a great gift. For those who have hit a rough patch and have nowhere to store their stuff, you’re also providing safety and reassurance.
In the United States, the industry generates over $39 billion annually, with the growth fueled mostly by one simple metric – people need more space to store their things than ever before. This is true whether it be businesses requiring inventory storage, home owners struggling to cope with the demands of moving home (or having simply accumulated too much stuff), and more. When all’s said and done, now is a great time to jump into the industry.
That said, as is the case with setting up any business, getting things off the ground isn’t easy. There’s a great deal that goes into acquiring your first customer, so in this article, you’ll learn about some of the key aspects that go into running this sort of business to get you going.
Choosing the Right Location
Choosing the right location is one of the most critical elements of starting a self-storage business. There are two main metrics to consider here: the affordabiulity of the site, and the accessibility for the public. Straddling the line between the two can be quite a difficult balancing act.
The closer you are to the city center and large, urbanized areas, the better placed you are as a convenient option for people and businesses looking for somewhere to store their belongings. At the same time, these areas are often some of the most pricy. The problem will likely seem too overwhelming at first, so it’s best to split it up into sections:
1. Demographics
Be very clear regarding the data on your target market and where and how they live: consider elements like age, population density, salary in the area, and whether the place has certain populations nearby that would benefit most, such as families and college students.
2. Zoning and Permits
As is the case with most types of businesses, there are many considerations to be made in regard to zoning and permits – your permission to operate given the local laws and regulations. Make sure to approach your local authorities early to save yourself problems later on down the line.
3. Competition
Finally, it’s important to scout out the local competition. Take a look to see who else is in the self-storage game in the area, and not only to check that they exist and their proximity, but what they’re offering. You’ll do much better if you can offer something unique.
To delve more deeply into each of the above three categories, it can be helpful to invest in a feasibility study: such an analysis can plainly and simply show you the facts from an evidenced-based perspective.
Designing and Building Your Facility
Efficiency is crucial in a self-storage business facility, and if efficiency is your top priority, you should ensure your design is robust.
The overall design and layout of your facility is one of the most critical aspects to get right, as it has a huge impact on your future profitability. Approach architects and contractors early to help you design a layout that maximizes the available space, allowing you to account for more customers without compromise. Here are the key considerations:
1. Unit Size
You’ll need to make sure you offer a wide variety of different unit sizes to suit customers of all kinds. Some people will only need a small space, while others, such as larger businesses operating in retail, may need a comparatively huge area to store a great amount of stock. Then, there’s everything in between. Carefully consider the sorts of clients you’ll likely be taking on, evaluate each potential need, and plan your space accordingly.
2. Security
When you’re in the business of housing and protecting people’s belongings, security is going to be a massive concern. Ensuring both the facility itself and each individual unit is locked and sealed with industry-standard equipment is a must: there are many benefits of automating a self-storage business with features such as fingerprint scanning and facial recognition, aswell as setting up robust CCTV monitoring systems that keep the entire site safe and secure at all times. Reliance on this sort of technology can greatly reduce the risk of human error, assuring you and your customers that everything is being well looked after.
3. Climate Control and Other Safeguarding Elements
Beyond the more acute matters of security such as theft and vandalism, you’ll also have a duty to protect people’s belongings from contaminants and damage. The environment within each cell is incredibly important: some goods must be stored at a particular temperature, while others must be kept in a moisture-free environment (requiring a dehumidifier). There’s also general upkeep to consider for each unit, such as protection from mold and dampness – regularly inspect each unit for signs of damage.
4. The Environment
Given the fact that power will need to be supplied to your entire site – as well as potentially to each unit – all day every day, you also have a duty to do your bit to protect the environment as best you can during your daily opperations. You can do so by incorporating solar panels across your site and using energy-efficient lighting, and to mitigate the risk of customers leaving lights and electricity on when they visit, you can implement electronic timers so that everything switches off after a certain time period.
Wrapping Up
There may be a lot that goes into running a self-storage business, but once you’re set-up, staying on top of things is the same as with any other business – big or small. It requires you to maintain a tight schedule, conduct regular maintenance, and listen to your customers. Take things one step at a time and think through things methodically, and people will be flocking to you in no time.
