How to run a self-storage business
Thinking of setting up a self-storage business? You’ve made the right choice. The storage industry has boomed during the last decade or so, all because people realized the value and benefits of putting items and stocks in storage. The demand for more commercial and residential storage has increased, and there’s no better time to set up your own self storage company than now.
More and more Australians have adapted to apartment living, which means more business for you. The driving forces behind self-storage purposes are many:
- Lack of office storage space.
- Lack of home storage space.
- Moving from a bigger home to a smaller apartment due to life changes.
- Renters get the ability to store things and forget about them.
As a business owner, it’s your responsibility to ensure that all items are kept safely.
Here are some tips on how you can manage this obligation.
Research The Market
Before setting up shop, it’s important to understand the self-storage market as it currently stands. You can search paper listings and the internet for storage companies around your local vicinity. A high concentration of storage companies operating in an area may suggest a high demand, but it won’t necessarily mean you can get a share of the pie easily. Scout for important facts such as the pricing, the storage capacity, and other services these companies offer. Once you have a feel for the market, you can start drawing up your business plan. Include all market research, expected costs, and future growth, development into one detailed report.
Determine The Costs Involved
Compute for all estimated start-up costs so you can settle on a rough figure to start. Let’s say you live in Melbourne, how much land will you need to set up your self storage Melbourne business? Factor in the rental fees for the land or the facility, marketing and campaigning costs, setting up a website, etc. Keep in mind that startup costs are different from operating costs once your business has launched, i.e., hiring staff, commodities, and utilities. As with all businesses, you’ll need to raise capital first to meet the projected costs involved.
How Will You Make Money?
During the first few months, it’s advisable for you to get renters in and work on achieving a high occupancy rate. When the business gets more renters, then it’s a sign of stability. From there, you can draw up long-term revenue plans. Additional income streams include holding an auction from non-paying renters, charging administrative fees on locks, lost keys, and late fees, in addition to the normal rental structure. Other entrepreneurs have managed to include related items and products for moving items back and forth, i.e., packing materials, boxes, locks, carts, etc. You can also partner up with a local insurance company and offer insurance for a nominal fee.
Give yourself the best possible chance of success by planning ahead before setting up a self storage business. The aforementioned points should help you conduct careful research and capitalize on expenses. On top of the huge earning potential in daily operations, you can embark on the more lucrative aspects of running a self storage company. Like any other business venture, self-storage can give you plenty of extra income and profits when it’s done right and proper.