The popularity of self-storage services seems to be on the rise. Perhaps it’s because people are more inclined to move at any given time of the year, or maybe it’s simply because the moms and dads of the world no longer have room in the basement for all the kids’ old stuff.
Whatever the reason, self-storage units offer short and long term solutions for individuals and businesses. If you’re a savvy entrepreneur, here are some tips to help you get on board with the trend and start a self-storage business.
The different stages of starting a business
Starting a self-storage business requires some preparation. You need to understand the clientele and competition in your area and learn about the obligations entailed in running such a business. Certain preliminary steps are essential. You’ll need to:
- Do some market research
- Do some planning
- Draw up your official business plan
- Get funding to build or renovate the facilities
- Organize your human resources and start up the business
Of course, if you purchase a franchise, you will receive assistance during the launch process. Ask your franchisor.
1. Market research
You need to have knowledge of the major self-storage trends in your area. A market study helps you assess the needs of your future customers while evaluating the services provided by your competitors and at what price they offer them. This stage helps you target your customers and find the best location to start a self-storage business.
2. Planning
A checklist allows you to schedule your self-storage company’s startup and move quickly into action. Here are some important steps:
- Find one or more potential sites
- Validate the market.
- Determine the number of storage units to be built and the capacity for future development
- Assess your staffing needs
- Select the appropriate legal structure of your business
- Draw up your personal balance sheet and obtain the necessary financing
- Obtain all necessary permits for construction or municipal zoning.
- Open a business bank account
- Get your business number, tax numbers and employer number
- Assess your insurance needs
- Develop your marketing strategy
3. The business plan
This step entails writing down your precise goals and strategies. Your business plan clarifies who you are and where you want to go. Make sure the plan is clear, precise and based on verifiable data. The latter allows you to analyze your real strengths and weaknesses and demonstrate the feasibility and profitability of your project. This document serves as your business card when you start looking for financing and gives credibility to your project.
4. Financing
Equipped with a market study, a checklist and a business plan, you will be able to apply for financial assistance with your financial institution. Your personal balance sheet (equity and liabilities) and your financial participation in the project can be instrumental in obtaining financing.
5. The startup
You are now ready to start your self-storage business and you can begin to advertise your services through newspapers, a website, flyers and an official launch event. Oh, and be sure to have your lease contracts ready for your first customers. Good luck!
