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Self Storage Business Plan Template

Written by Dave Lavinsky

Self Storage Business Plan

You’ve come to the right place to create your Self Storage business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Self Storage companies.

Below is a template to help you create each section of a storage unit business plan.

Executive Summary

Business overview.

Secure Self Storage is a startup self storage company located in Nashville, Tennessee. The company is founded by Bill Williams, an experienced self storage manager who has been working in the self storage industry for over a decade. Bill has recently earned a bachelor’s degree in Business Administration. Now that Bill has obtained the education and experience that will allow him to successfully navigate the process of starting a business, Bill is ready to open his own company, Secure Self Storage. Bill plans on recruiting a team of highly qualified professionals to help manage the day to day responsibilities of running a successful self storage facility – marketing, security, maintenance, accounting, and rent collection.

Secure Self Storage will provide a convenient, safe, and secure self storage solution for anyone in the Nashville area who needs to store their belongings. Secure will ensure that every storage need of the customer is being met. Secure Self Storage will be the ultimate choice in Nashville for self storage solutions while being the best-priced company in the area.

Product Offering

The following are the self storage solutions that Secure Self Storage will provide:

• Small Storage Units (5×5)
• Medium Storage Units (10×10)
• Large Storage Units (10×25)
• Vehicle Storage Units
• Temperature Controlled Units
• Extra Security Units
• Pickup & Delivery Services
• Disposal Services

Customer Focus

Secure Self Storage will target adults 18 years old and over in Nashville who need a storage unit for any reason such as moving, decluttering, doing home renovations, or those who need storage for business, college, or to store an automobile. No matter the customer, Secure Self Storage will deliver the best communication, service, and security.

Management Team

Secure Self Storage will be owned and operated by Bill Williams. Bill has a bachelor’s degree in Business Administration and has been working as a self storage manager for another local storage facility for over a decade. Now that Bill has obtained the education and experience that will allow him to successfully navigate the process of starting a business, Bill is ready to venture out and open his own self storage company. Bill will be the owner and manager of Secure Self Storage.

Bill has recruited his peer, Ken Smith, a financial professional with a Masters degree and fifteen years of experience doing financial work for various construction companies, to be the financial manager. Ken will help manage all of the finances for the company from finding a cost-effective location to set up shop to reporting and budgeting to make sure the facility is profitable.

Success Factors

Secure Self Storage will be able to achieve success by offering the following competitive advantages:

• Self storage units are easily accessible 24 hours a day, temperature controlled, and have the latest security technology to keep customers’ belongings safe and secure.
• On-site security guards are deployed 24 hours a day to ensure belongings, customers, and employees are safe at all times.
• On-site staff to answer questions, help customers, and keep the facility clean.

Financial Highlights

Secure Self Storage is seeking $250,000 in debt financing to launch its self storage business. The funding will be dedicated towards securing the facility space and purchasing equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs. The breakout of the funding is below:

• Self storage facility build-out: $50,000
• Equipment, supplies, and materials: $20,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $15,000
• Working capital: $15,000

The following graph below outlines the pro forma financial projections for Secure Self Storage.

Company Overview

Who is secure self storage.

Secure Self Storage is a newly established high security self storage company in Nashville, Tennessee. Secure Self Storage will be the most convenient, secure, and customer-focused choice for storage unit renters in Nashville. Secure will provide a variety of self storage solutions for anyone looking for a secure storage option. The company’s customer-centric approach will include 24/7 on-site security and customer service staff, the latest security technology, and temperature controlled units.

Secure Self Storage will give customers peace of mind that their belongings are secure. The management team is composed of experienced professionals including business managers, security officers, and maintenance technicians. Secure Self Storage removes all headaches of the self storage unit renter and ensures all issues are taken care off expeditiously while delivering the best customer service.

Secure Self Storage History

Secure Self Storage is owned and operated by Bill Williams, an experienced self storage manager who has a bachelor’s degree in Business Administration from the University of Tennessee. Bill has worked for a local self storage company in Nashville for over a decade. Bill’s tenure with the self storage company combined with his education has given him the skills and knowledge required to venture out on his own and start his own company.

Since incorporation, Secure Self Storage has achieved the following milestones:

• Registered Secure Self Storage, LLC to transact business in the state of Tennessee.
• Has scouted a few location options and reached out to the owners for more information.
• Reached out to numerous contacts to include former customers to let them know about the upcoming facility.
• Began recruiting a staff of accountants, maintenance workers, security, and other facility personnel to work at Secure Self Storage.

Secure Self Storage Services

Industry analysis.

The United States self storage industry generates an estimated $39.5B in annual revenue with over 49,000 storage facilities throughout the country. The total rentable self storage space is approximately 1.9B square feet. An estimated 10.6% of U.S. households are currently renting a self storage unit. The average self storage space used per person is 5.9 square feet. The average monthly cost to rent a self storage unit is $90.

Self storage construction spending has nearly doubled in the past five years. According to the Self Storage Almanac, the market is highly fragmented with 31% of space being owned by six large public companies, 16% being owned by the next top 94 companies, and 53% being owned by small businesses. Self storage industry operators have the potential to achieve highly lucrative businesses if they manage them smartly. The average self storage company’s profit margin is around 11 percent, which is much higher than many other small businesses in other industries that are often closer to 3-5 percent.

Customer Analysis

Demographic profile of target market.

Secure Self Storage will target adults 18 years of age and older requiring self storage services in Nashville, Tennessee. The company will target people in need of storage space for a variety of reasons including moving, renovating, college, business, or to store a vehicle.

The precise demographics for Nashville, Tennessee are:

Customer Segmentation

Secure will primarily target the following customer profiles:

• People who are in the process of moving
• People who need storage space for a vehicle
• People who need storage for business
• People who need storage for college
• People who are renovating their homes

Competitive Analysis

Direct and indirect competitors.

Secure Self Storage will face competition from other companies with similar business profiles. A description of each competitor company is below.  

Nashville Self Storage

Nashville Self Storage is a temperature controlled self storage facility operating in Nashville, Tennessee. The facility has 400 units of varying sizes from 2×5 up to 30×30. Nashville Self Storage uses state of the art security systems with cameras throughout the facility to keep its patrons and their belongings safe and secure. The company currently has one facility with plans to open a second location in the next few months. The owners of Nashville Self Storage have been working in the storage industry for over 20 years and pride themselves on providing exceptional customer service.  

ALottaStuff Self Storage

ALottaStuff Self Storage is a Nashville-based self storage facility that provides outstanding service and storage solutions for its customers. ALottaStuff Self Storage takes the risk out of leaving your valuables in an unsecure storage facility by providing 24/7 secure monitoring of all of its units. They have temperature controlled units available in addition to non-temperature controlled units. Customers can depend on ALottaStuff Self Storage to handle their belongings with the best of care. The company provides pickup and delivery services for an extra fee.  

In-Boxes Self Storage

In-Boxes Self Storage is a trusted Nashville self storage company that provides superior service to customers in Nashville and the surrounding areas. They are able to provide a convenient storage solution for a wide range of customers with multiple locations throughout the city. In-Boxes Self Storage offers low prices for do-it-yourself storage facilities. Drive-up units are available for a flat monthly fee and indoor temperature controlled units are available for an additional charge. In-Boxes Self Storage maintains a clean, secure atmosphere with friendly staff available during office hours to assist with customers’ storage needs.

Competitive Advantage

Secure Self Storage will be able to offer the following advantages over their competition:

• On-site staff are available to answer questions, help customers, and keep the facility clean at all times.

Marketing Plan

Brand & value proposition.

Secure Self Storage will offer the unique value proposition to its customers:

• Experienced team of security professionals, customer service associates, and maintenance staff on-site 24/7 to help customers and keep the facilities clean, safe, and secure.
• Unbeatable pricing to its clients – Secure Self Storage offers competitive pricing with promotions and discounts for new and returning customers.

Promotions Strategy

The promotions strategy for Secure Self Storage is as follows:

Word of Mouth/Referrals

Bill Williams has built rapport with an extensive list of customers over the years by providing exceptional service during his tenure as a self storage manager. Many have communicated to Bill that they referred their friends to the storage facility because they were happy with the service he was providing. Once Bill advised them he was leaving to open his own self storage business, many contacts have committed to help spread the word of Secure Self Storage.

Professional Associations

Secure Self Storage will become a member of professional associations such as the Self Storage Association, the Nashville Self Storage Association, and Inside Self Storage. Bill will attend industry expos and events to promote the company.

Print Advertising

Secure Self Storage will have print ads and flyers made for newspapers, magazines, direct mailers, and to post around the city and hand out at industry events.

Website & Content Marketing

Secure Self Storage will create and maintain an easy to navigate, well organized, informative, website that will list all of the available storage options and pricing. The website will also contain an informative blog with storage related posts.

SEO Marketing

The company will use SEO marketing tactics so that any time someone types in the Google or Bing search engine “Nashville self storage” or “self storage near me”, Secure Self Storage will be listed at the top of the search results.

Social Media Marketing

Secure Self Storage will create and maintain an active presence across social media platforms including LinkedIn, Facebook, Instagram, Twitter, TikTok, and YouTube.

The pricing of Secure Self Storage will be competitive so customers feel they receive value when purchasing their services.

Operations Plan

The following will be the operations plan for Secure Self Storage.

Operation Functions:

• Bill Williams will be the Owner and Manager of the company. He will oversee all staff and operations. Bill has spent the past year recruiting the following staff:
• Ken Smith – Financial Manager who will provide all accounting, budgeting, tax payments, and monthly financial reporting.
• Shannon Bowman – Marketing Manager who will provide all sales and marketing initiatives for Secure Self Storage including management of the company website and social media accounts.
• Benjamin Stephens – Maintenance Manager who will oversee all maintenance of the facility.
• Micheal Brown – Head of Security who will provide all security for the facility and oversee a small team of on-site security guards.

Milestones:

Secure Self Storage will have the following milestones complete in the next six months.

8/1/2022 – Finalize contract to lease facility space.

8/15/2022 – Finalize personnel and staff employment contracts for the management team.

9/1/2022 – Begin build out of the facility.

9/15/2022 – Begin networking and marketing campaign.

9/22/2022 – Begin moving into the Secure Self Storage facility.

10/1/2022 – Secure Self Storage opens its facility for business.

Bill has recruited the help of his peer, Ken Smith, a financial professional with a Masters degree and fifteen years of experience doing financial work for various construction companies. Ken will help manage the finances for the company from finding a cost-effective location to set up shop to reporting and budgeting to make sure the facility is profitable.

Financial Plan

Key revenue & costs.

The revenue drivers for Secure Self Storage are the self storage fees that will be charged to the customers for their services. The company will charge a monthly fee for unit rentals. The fee will vary depending on the size of the unit.

The cost drivers will be the overhead costs required in order to staff a self storage facility. The expenses will be the payroll cost, utilities, maintenance costs, and marketing materials.

Funding Requirements and Use of Funds

Secure Self Storage is seeking $250,000 in debt financing to launch its self storage business. The funding will be dedicated towards securing the facility space and purchasing equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Average number of occupied units per month: 200 out of the total 500 units (40%)
• Average fees per month: $30,000 (average $150.00 per medium sized unit)
• Annual Lease on Facility: $100,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Self Storage Business Plan FAQs

What is a self storage business plan.

A self storage business plan is a plan to start and/or grow your self storage business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your self storage business plan using our Self Storage Business Plan Template here .

What are the Main Types of Self Storage Businesses?

There are a number of different kinds of self storage business , some examples include: Portable container, Climate controlled storage, and Vehicle storage.

How Do You Get Funding for Your Self Storage Business Plan?

Self storage businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Self Storage Business?

Starting a self storage business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Self Storage Business Plan - The first step in starting a business is to create a storage facility business plan pdf or doc that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your self storage business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your self storage business is in compliance with local laws.

3. Register Your Self Storage Business - Once you have chosen a legal structure, the next step is to register your self storage business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your self storage business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Self Storage Equipment & Supplies - In order to start your self storage business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your self storage business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

Learn more about how to start a successful self storage business:

• How to Start a Self Storage Business

Self Storage Business Plan Template

Written by Dave Lavinsky

Self Storage Business Plan

Over the past 20+ years, we have helped over 9,000 entrepreneurs and business owners create business plans to start and grow their self-storage facilties. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a self storage business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Self Storage Business Plan?

A business plan provides a snapshot of your self-storage business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Self-Storage Facility

If you’re looking to start a self-storage or storage unit business, or grow your existing self-storage business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your self-storage business in order to improve your chances of success. Your self storage business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Self Storage Facilities

With regards to funding, the main sources of funding for a self-storage business are personal savings, credit cards, bank loans, and angel investors. With regards to bank loans, banks will want to review your self storage business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a self storage facility is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding or, like a bank, they will give you a loan. Venture capitalists will not fund a self-storage business. They might consider funding a self-storage business with a national presence, but never an individual location. This is because most venture capitalists are looking for millions of dollars in return when they make an investment, and an individual location could never achieve such results.

Finish Your Business Plan Today!

How to write a business plan for a self storage business.

If you want to start a self storage facility or expand your current one, you need a business plan. Below we detail what should be included in each section of your business plan for a storage facility.

Executive Summary

Your executive summary provides an introduction to your self storage business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of self-storage business you are operating and the status. For example, are you a startup, do you have a self-storage business that you would like to grow, or are you operating a chain of self-storage facilities.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the self-storage industry. Discuss the type of self-storage business you are operating. Detail your direct competitors. Give an overview of your target market. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of storage business you are operating.

For example, you might operate one of the following types of storage businesses:

• Portable container : this type of storage business allows customers to easily transport self storage units.
• Climate controlled storage : this type of storage business protects and preserves property against harmful temperature and humidity levels.
• Vehicle storage : this type of storage business allows customers to safely store various types of vehicles.

In addition to explaining the type of storage business you will operate, the Company Analysis section of your storage unit business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of occupied self storage units, contract renewals, number of referrals, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

While this may seem unnecessary, it serves multiple purposes.

First, researching the self storage industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your storage business plan:

• How big is the storage industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your self storage facility? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your storage unit business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: students, business owners, families, and people who are relocating.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of self-storage business you operate. Clearly, students would want different service options and would respond to different marketing promotions than families who are relocating, for example.

Try to break out your target market in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the customers you seek to serve. Because most self-storage facilities primarily serve customers living in the same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other self storage facilities.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes businesses with their own storage space and people who store extra items in their attics or basements. You need to mention such competition to show you understand that not everyone who needs storage will utilize a self-storage company.

With regards to direct competition, you want to describe the other self-storage facilities with which you compete. Most likely, your direct competitors will be self-storage facilities located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What types of storage services do they offer?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of the competitive analysis section of your business plan is to document your areas of competitive advantage. For example:

• Will you provide superior services?
• Will you provide services that your competitors don’t offer?
• Will you make it easier or faster for customers to use your services?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your business plan.  

Marketing Plan

Product : In the product section, you should reiterate the type of storage business that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to self storage, will you provide 24-hour security, electronic gate access, or on-site staff?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your self storage business. Document your location and mention how the location will impact your success. For example, is your self storage business located near a main highway, near public transportation, etc. Discuss how your location might provide a steady stream of customers.

Promotions : The final part of your self storage marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to local websites
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your self storage business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your storage business, including security management, facility maintenance, and customer service.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to lease 100 self storage units, or when you hope to reach $X in revenue. It could also be when you expect to expand your facility or launch in a new location.  

Management Team

To demonstrate your self storage business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in managing self storage facilities. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing self storage companies or successfully running small businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $100,000 on building out your self storage business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. For example, let’s say a local office building approached you with a $50,000 contract to provide self storage services for their building occupants. Let’s further assume the contract would cost you $50,000 to fulfill in terms of increased staffing costs. Well, in most cases, you would have to pay that $50,000 now for employee salaries, utilities, etc. But let’s say the company didn’t pay you for 180 days. During that 180-day period, you could run out of money.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting a self storage business and growing it:

• Location build-out including design fees, construction, etc.
• Cost of equipment like surveillance technology, dollies, and climate control systems
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your location lease or a blueprint of your facility.  

Putting together a business plan for your own self storage business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the self storage industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful self storage business.

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How To Start a Storage Business

Our Comprehensive Guide to Launching a Profitable Self-Storage Rental Unit Business in 2023

We’re about to dive deep into the thriving, fast-paced world of the self storage business. 

Believe it or not, this under-the-radar sector of commercial real estate has been steadily growing, churning out a staggering $39 billion in annual revenue as of 2023, with the U.S. leading the charge. It’s a veritable gold rush, and it’s time you staked your claim.

So, you might be thinking, “That sounds great, but how do I start a self-storage business?”

Don’t worry, we’ve got your back.

In This Article

Flexible Pricing

Brand awareness, customer service, property selection, getting to grips with the landscape of the mini storage unit business, identifying the key drivers of demand when starting a self-storage business, licenses and permits, zoning laws, business structure, average occupancy and facility size, construction costs, technology and operations, revenues and profit margins, startup costs, financing options, establish a strong brand identity, build a robust online presence, implement a referral program, collaborate with local businesses, deciphering the average cost, implementing a pricing strategy, the most in-demand cities for self storage units, revenue generation, wrapping up: starting and running a successful self storage business – a recap, self-storage keys to success.

Adapt your storage unit prices to the ever-changing demand in your local market.

Integrate your company into the community and make sure residents know who you are!

Meet your customer’s needs to reduce turnover and increase word-of-mouth advertising.

Find land that is affordable, yet accessible. Work with a real estate agent to identify the best fit.

This comprehensive guide is packed to the brim with all the crucial information you’ll need. From breaking down financial projections to unraveling the complexities of operational strategies, and even unveiling insights from industry case studies, we’ve left no stone unturned.

After navigating through this guide, you won’t just understand the ins and outs of how to kick-start a storage business, you’ll be pumped and ready to plunge into your very own storage unit venture.

So, are you ready to turn the key and open the door to your future in the self storage business? 

Let’s hit the ground running!

Let’s flip the lid and take a peek at the vast expanse of the self-storage industry. Now, if you’re wondering whether there’s room for one more in this arena, let’s crunch some numbers. As of 2023, this buzzing beehive of a business is generating a hefty $39 billion in annual revenue right here in the U.S. alone. That’s no small change, my friends! And get this, the U.S. is not just playing in the big leagues, it’s practically owning the entire stadium, accounting for 90% of the global self-storage inventory.

But what about the competition, you ask? Well, there’s no sugarcoating it – the storage business is a bustling marketplace. With over 182,000 storage businesses operating nationwide, you’re certainly not alone. But don’t let that intimidate you! This number also serves as a testament to the industry’s robust nature and the vast demand for storage space.

The beauty of the storage unit business lies in its versatility. From folks looking to declutter their homes to businesses in need of extra space storage, there’s a demand across the board. And that’s precisely what makes this business such a good bet. It caters to a need that’s not going away anytime soon.

Starting a self storage business may seem like a daunting task, but with the right plan, resources, and a dash of entrepreneurial spirit, it’s a mountain you can conquer. So, are you ready to ride this wave and make your mark in the storage industry? Let’s roll up those sleeves and get down to business!

Now, let’s get down to brass tacks and look at who is driving the demand in the mini storage business. As a potential new business owner, understanding consumer demand is the compass that’ll guide your storage unit business towards success. Here’s a snapshot of the movers and shakers in the storage market:

• The Nomads: With life on the move becoming the norm, moving remains the primary reason folks seek out mini storage solutions. Be it a job relocation, downsizing, or even a gap year spent globetrotting, having a safe space to store their belongings offers peace of mind during these transitional periods. So, if you’re wondering how to start a self storage business that resonates with this demographic, consider offering flexible rental terms and hassle-free access to the storage units.
• The Space Savers: Did you know that over 1 in 5 renters in the U.S. utilize self storage units? That’s a significant market slice to cater to! From apartment dwellers looking to declutter their space to small businesses needing extra inventory storage, the demand spans across various user groups. Offering a range of unit sizes can help you cater to this diverse clientele.
• Generation X: Representing a considerable user group within the self-storage industry, Gen Xers often require storage space for myriad reasons. From moving homes to storing inherited items, their demand for storage facilities is quite robust. To start a storage business that appeals to this demographic, you might want to consider offering services like controlled storage or extra space storage.
• The Ladies: Female renters constitute another significant user group in the self-storage industry. Safety and cleanliness are often high on their priority list. To attract this demographic, focus on ensuring well-lit facilities, 24/7 surveillance, and immaculate storage units.

It’s clear as day that the storage business is not a one-size-fits-all kind of deal. The key to running a successful storage business lies in understanding the unique needs of these consumer groups and tailoring your services to meet them. And with the right approach, you could be well on your way to turning your business idea into a thriving self-storage business in 2023!

Comprehending Legal and Regulatory Essentials for Running a Self Storage Unit Business

When you’re ready to start your mini storage business, it’s crucial to get your ducks in a row when it comes to legal and regulatory requirements. It might seem like you’re jumping through hoops, but each step is essential for getting your business off the ground and avoiding potential hiccups down the line. Here’s a breakdown:

Every business, including a storage facility, requires specific licenses and permits to operate legally. Typically, you’ll need a general business license, but depending on your location and the nature of your business, additional permits may be required. For instance, if your self-storage unit business plans on offering RV storage, you might need extra permits. Remember, it’s important to register your business and open a business bank account to keep your finances in order.

Do you know the saying, “location, location, location”? Well, it’s not just about finding a spot with high demand. Zoning laws can dictate what type of business you can run in certain areas. These laws vary widely, so you’ll need to check with your local planning or zoning department to ensure your storage facilities are in compliance.

Here’s the deal: starting a self-storage business in 2023 without the right insurance policies is like walking a tightrope without a safety net. Different types of insurance, such as property insurance, liability insurance, and workers’ compensation insurance, will protect your business from potential financial losses. It’s also worth considering specialized insurance that covers customers’ belongings in storage.

Deciding on your business structure isn’t just a box to tick—it’s a decision that can impact your business in many ways, from how much you pay in taxes to your personal liability. You can choose to set up as a sole proprietorship, partnership, corporation, or Limited Liability Company (LLC). Each type of business entity has pros and cons, so it’s essential to get advice from a professional or the Small Business Administration.

Starting a storage business involves more than just renting out storage units—it requires a good understanding of the legal and regulatory landscape. However, with a little bit of elbow grease and the right guidance, you can navigate these waters and launch your business with confidence. 

Planning Facilities and Operations for Your Startup Self Storage Business

Starting a mini storage business is no small task—it requires careful planning and efficient operations management. It’s not just about having space; it’s about making the best use of that space and providing exceptional customer service. To give you an idea of what you’re stepping into, here’s a bit of data and a few considerations for you.

If you’re thinking about starting a storage company, the numbers are promising. In the U.S., the average occupancy rate for storage facilities sits at an impressive 96.5 percent.

When it comes to facility size, the average mini storage facility in the U.S. covers approximately 56,900 square feet. This doesn’t mean your facility must fit this mold—it’s just the average. Your facility size will depend on factors like location, demand, and your business plan.

When it comes to construction costs, figures can range from $1.25 million to $3.5 million. The costs can vary depending on factors like location, land cost, facility size, and construction materials.

Remember, starting a business is an investment, and the initial costs can be steep. However, with the right planning, management, and a good business loan, you can navigate these costs and set up a profitable storage unit business.

In today’s digital age, the incorporation of technology into your storage business operations is more of a necessity than a luxury. There’s a wealth of management software and online booking systems available that can streamline your operations and enhance the customer experience. Consider the following:

• Management Software : These tools can help you track your occupancy rate, manage rental rates, and handle other administrative tasks.
• Online Booking Systems : These can offer convenience to your customers, allowing them to book storage units at their leisure and streamline the rental process.
• Security Systems : High-quality surveillance systems and access control are a must for any self-storage unit business. Customers need to know that their belongings are safe.
• Website : Your business online is essential in this digital age. An intuitive, user-friendly website can help you reach more customers and provide them with the information they need about your storage services.

Starting a self storage business might seem daunting, but with the right planning and a clear understanding of the industry, it’s a journey you can confidently embark on. Remember, every business requires dedication and hard work—yours will be no exception. So, are you ready to take the leap?

Financial Aspects to Consider: From Business Plan to Small Business Loan

Money makes the world go ’round, and it certainly sets the wheels in motion for your storage business. Understanding the financial aspects, from revenues and profit margins to startup costs and financing options, is crucial. So let’s dive into the numbers, shall we?

Let’s talk earnings. The average annual revenue for a self-storage business is about $450,000, boasting a healthy profit margin of 41%.

These figures can vary based on factors like location, unit sizes, number of units, and additional services you may offer. So, while you might start a bit lower as a newcomer, with strategic planning and excellent customer service, there’s potential for growth.

The start-up cost for a mini storage business can seem a tad intimidating, ranging from $1.5 million to $2.4 million, averaging around $2 million. These figures account for land acquisition, construction, operational setup, and initial marketing efforts.

While it might seem like a lot, remember that starting a business is a significant investment. It’s about putting in the capital now to reap the benefits later.

With numbers like these, it’s no wonder you might be considering financing options. One viable route is through SBA (Small Business Administration) loans. These loans are designed to help entrepreneurs like you get their dreams off the ground.

• SBA 7(a) Loans : This is the most common type of SBA loan. It can be used for a variety of purposes, including purchasing land or buildings, construction costs, or even as working capital.
• SBA CDC/504 Loans : These loans are specifically for purchasing major fixed assets like land or buildings. If you’re looking at building a new facility, this could be a great option.

Remember, it’s crucial to have a solid business plan when applying for these loans. The lenders want to see that you’ve thought things through and have a plan for making your business profitable.

The journey of starting a self storage business might seem daunting, especially when you’re staring at these numbers. But don’t let it deter you. With the right planning, a clear understanding of your costs, and the help of financial tools, you’re one step closer to opening for business. Remember, every successful business started with someone taking that first daunting step. Are you ready to take yours?

Mastering Marketing and Customer Acquisition for Your Self Storage Business

In a world where competition is fierce and standing out is vital, setting up a winning marketing and customer acquisition strategy for your storage business is a must. From brand identity to digital marketing, let’s roll up our sleeves and dive into the nuts and bolts of getting your business noticed and attracting customers.

A strong brand identity sets your business apart from the competition. This goes beyond just your business name. It includes everything from your logo and tagline to your company’s mission and values.

• Choose a Unique Business Name : Research existing storage businesses to avoid duplication and check if the name is available for trademark. Your business name should be easy to spell, pronounce, and remember. It should also hint at the services you provide. Use tools like a business name generator for inspiration and don’t forget to check domain availability for your website.
• Design a Memorable Logo : Your logo should reflect the nature and values of your business. Consider hiring a professional graphic designer who can bring your vision to life. Tools like Canva also offer easy-to-use design templates for those on a budget. Remember, your logo will be on your website, marketing materials, and possibly even on the signboard of your storage facility, so it’s worth the investment.
• Define Your Mission and Values : This involves a deep understanding of your business, your goals, your customers, and the market you operate in. A mission statement should clearly communicate what your business does, who it serves, and how it does it. Your values should reflect the principles and beliefs that guide your company’s actions. These will help you to create a business culture and a brand that resonates with your target audience.

In 2023, your digital footprint matters more than ever. From your website to social media, make sure your self-storage company is easy to find and hard to forget.

• Website : Your website is your virtual storefront. Make sure it’s clean, easy to navigate, and mobile-friendly. Highlight your services, provide clear pricing information, and include a simple booking system. It’s also crucial to have your contact information prominently displayed.
• SEO : SEO, or search engine optimization, is about making your website more visible on search engines like Google. This involves keyword optimization, quality content creation, and building backlinks. Consider hiring an SEO expert or using SEO tools like SEMRush or Yoast SEO.
• Social Media : To start, choose the social media platforms where your target customers spend most of their time. Create engaging content that provides value to your followers. This could be tips on how to pack a storage unit or a behind-the-scenes look at your facility. Be consistent in your posting and engage with your followers by responding to comments and messages.
• Google My Business : To set this up, go to the Google My Business website and follow the prompts to add your business. Include as much information as possible, like your address, hours of operation, and photos of your facility. Encourage happy customers to leave reviews to boost your credibility.

Word-of-mouth is a powerful marketing tool. Implement a referral program that incentivizes your existing customers to refer their friends and family.

• Offer Discounts : For every successful referral, you might offer your existing customer a percentage off their next month’s rent. The key is to make the discount enticing enough that customers want to participate.
• Provide Extra Services : This could include providing a free moving truck for a day, offering complimentary moving supplies, or providing a free upgrade to a larger storage unit for a certain period.

Build relationships with local businesses and explore potential collaboration opportunities.

• Moving Companies : Reach out to moving companies in your area and propose a partnership. This could be as simple as distributing each other’s marketing materials or as formal as a referral fee agreement.
• Real Estate Agencies : Similar to moving companies, real estate agencies can be a great source of referrals. Introduce your business and offer promotional materials they can share with their clients.

Last but not least, invest in advertising. This can range from traditional methods like print ads and billboards to digital advertising like Google Ads or social media promotions.

Starting your self-storage business involves many moving parts, and marketing and customer acquisition are crucial pieces of the puzzle. Implementing these strategies will help you attract and retain customers, ensuring your business doesn’t just survive, but thrives in the competitive storage industry. Ready to make your mark?

Pricing Strategies and Revenue Generation in the Storage Unit Business

Taking the plunge into starting a storage business can be a lucrative venture, but let’s not skip over the crucial aspect of pricing and revenue generation. After all, a well-thought-out pricing strategy could be the difference between a storage facility that’s half-empty and one that’s making bank.

The price is a major determinant for customers choosing between different storage companies. As of 2023, the average monthly cost for a storage unit is a cool $100.04. Now, you might be wondering, “How much does it cost to provide these storage units?” Well, that’s where your cost analysis comes in. It’s vital to consider expenses like maintenance, security, and overhead when setting your prices.

For a mini storage business, utilizing market-based and target-based pricing approaches can help you set competitive and profitable unit prices.

Market-based Pricing

This approach involves setting your prices based on the going rate in your specific market. It’s a simple concept – you’re essentially pricing your units similar to (or slightly lower than) your competitors to attract customers. However, it’s vital that you’re still covering your costs and securing a profit.

Target-based Pricing

Target-based pricing, on the other hand, is when you price your units based on the profit margin you aim to achieve. You calculate this by adding your desired profit to the cost of running a storage unit. This approach requires a solid understanding of both your costs and the value your customers place on your service.

While Houston, TX, holds the crown as the most in-demand city for self storage units, it’s not the only city with a buzzing market. The demand for storage units varies greatly from city to city, often in line with factors such as population growth, real estate trends, and local economic conditions. Below is a table highlighting the top five cities in the U.S. for self-storage demand and their average monthly prices.

Los Angeles, CA

The City of Angels comes in second place, with an average monthly price of $112.35 for a unit. Given its dense population and high real estate prices, it’s no surprise that people in LA are turning to self-storage as a space-saving solution.

New York, NY

With space at a premium in The Big Apple, New Yorkers are willing to pay an average of $176.42 per month for storage. This city is a prime example of high demand driving up prices in the storage industry.

Texas makes the list again with Dallas, where the average price for a storage unit is $91.87 per month. The city’s growth, combined with a strong economy, has led to an increased demand for storage units.

Chicago, IL

Chicago, the Windy City, rounds out our top five with an average monthly storage unit price of $98.73. Like the other cities on this list, Chicago’s dense population and urban living conditions contribute to the demand for storage facilities.

Aside from rental income from your storage units, there are other revenue streams to tap into:

• Late Fees : It’s common practice to charge late fees when customers don’t pay their rent on time. Make sure these fees are clearly outlined in your rental agreement.
• Sales of Packing Supplies : You can offer boxes, packing tape, bubble wrap, and other packing supplies for sale at your facility. It’s a convenient option for your customers and an additional revenue stream for you.
• Insurance : Many self-storage companies offer optional insurance coverage for the items stored in their facilities. If a customer chooses to purchase this, it can add to your revenue.
• Truck Rentals : If you have the resources, offering truck rentals can be a profitable add-on service.

It’s worth noting that running a self-storage business requires a keen understanding of your local market and a flexible approach to pricing. Keep an eye on your competitors, stay aware of the need for storage in your area, and adjust your pricing strategy as necessary to keep your business thriving. Remember, starting a self storage business is not just about providing space – it’s about offering a service that meets your customers’ needs at a price they’re willing to pay.

As we wrap up this guide on how to start a self storage business, it’s clear that the storage industry presents a significant business opportunity. With the average occupancy rate of self storage facilities standing at an impressive 96.5% and a robust annual revenue, it’s no wonder entrepreneurs are drawn to starting such a business. However, running a storage business requires a comprehensive understanding of the market, strategic planning, and a credible business plan to ensure success.

When considering the cost to launch a self storage business, it’s crucial to factor in both the initial construction or acquisition costs and the ongoing operational expenses. Remember, there are various ways to open a storage business, each with their pros and cons. For those starting with no money, options like small business loans and other financing alternatives can make your business dreams a reality.

The key to a successful self storage company in 2023 and beyond will be in offering competitive rental storage rates, providing excellent customer service, and staying ahead of the technological curve. The storage market is evolving, and those who adapt will thrive. Don’t forget, the location of your storage units plays a crucial role in your business’s potential success, with cities like Houston, Los Angeles, and New York being particularly in-demand.

In conclusion, starting your own self-storage business is one venture with immense business potential. However, you need to know the ins and outs, from average storage unit prices to ways to generate business income. With this guide as your starting point, you’re well on your way to carving out your own corner in the storage industry. Go ahead, learn how to start, run the business like a pro, and get ready to open for business!

LaunchKit Founder

Tim loves building businesses and has a long history of buying, developing, and selling them successfully. He was featured on Entrepreneur.com as a top online entrepreneur and has now dedicated his career to helping others launch their own business in pursuit of personal and financial freedom.

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How to Start a Storage Business: From A-Z

Step 8: Calculate startup and operational costs

Step 7: handle accounting and taxes, step 5: create effective advertising campaigns, adapting to market changes.

Starting a storage business requires strategic planning and thorough research. This guide provides essential steps to lay a strong foundation for success. From crafting a solid business plan and conducting market research to choosing a business structure and identifying the ideal location, each step is vital. Additionally, you’ll learn about financing options, legal requirements, branding, and operational best practices to ensure your storage business thrives.

Is storage business profitable?

How to start a storage business without money?

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Are storage sites profitable?

Stage 1: Planning your storage business

Step 1: Create a solid business plan

A solid business plan is essential for starting a self-storage business. Include details like the initial investment, projected population growth in your target area, and an operation plan. Outline your goals, marketing strategies, and financial planning. This plan will not only guide you but also help in attracting investors and securing loans.

Step 2: Conduct a thorough market research

Thorough market research is crucial before launching your storage business. Investigate local demand for storage units, the competition in your area, and market saturation. Look at trends and understand what services your competitors offer. Make informed decisions on unit sizes, pricing, and additional services based on this research.

Step 3: Understand the demand in your area

Determine the demand for self-storage units by considering factors like population growth and household size. Areas with high population growth often have higher demand for storage solutions. Analyze data on new housing developments and rental markets. This helps in deciding the best location and the right mix of unit sizes for your facility.

Step 4: Choose your business structure

Selecting the right business structure affects your taxes, liability, and investment potential. Options include sole proprietorship, partnership, LLC, or corporation. Each has its advantages and challenges. Consult with a legal or business advisor to choose the structure that best suits your self-storage business goals.

Each step in starting your storage business, from planning to choosing a business structure, is vital for ensuring long-term success.

Step 5: Identify the ideal location

Choosing the right location is crucial for attracting customers. You’ll want to find an area with a growing population and a high demand for storage units. Proximity to residential or commercial areas is a key factor. Areas near town centers, universities, and apartment complexes often offer the best opportunities.

Demographics also play an essential role. Locations with a mix of young professionals, college students, and families typically have higher storage needs. Conducting a market study can reveal insights into the local housing trends and businesses that could drive demand.

Step 6: Evaluate the costs of land and construction

Land acquisition can be a significant portion of your initial investment. Depending on the location, land costs can range from $500,000 to over $2 million. Prime spots near cities or in densely populated areas usually command higher prices but offer better business potential.

Once you’ve secured land, construction costs come into play. Budget for expenses like zoning approvals, permits, and professional services, which can total $5,000 to $20,000. Building your storage facility will include costs for materials, labor, and infrastructure. Typical startup costs might range from $1 million to $5 million, covering everything from land to initial marketing efforts.

To manage these costs, consider options like pre-fabricated buildings or phased construction, which can help spread expenses over time. Researching local contractors and suppliers can also lead to better pricing and reliable services. Planning and budgeting carefully at this stage will set your storage business on a solid path to success.

Step 7: Explore funding options

Securing the right funding is crucial for kickstarting your self-storage business. Small Business Administration (SBA) loans, particularly SBA 504 and 7(a) loans, are popular choices. They offer long repayment terms and reasonable interest rates. SBA 504 loans are ideal for purchasing or refurbishing properties and can go up to $5 million. SBA 7(a) loans can be used for various purposes including working capital and have a similar cap.

Conventional loans from banks are traditional options but may require significant collateral. Bridge loans are short-term solutions, perfect for covering immediate expenses until permanent financing is secured. For higher-risk ventures, hard money loans might be an option, though they come with higher interest rates. If you have robust business plans, consider mezzanine financing, blending debt with equity, suitable for high-capital projects.

Understanding all costs involved in starting a self-storage business is essential for securing funding. Startup costs may include property acquisition, construction, permits, and initial marketing. For example, land and building costs can vary greatly depending on location and size. A 10,000-square-foot facility might cost between $300,000 to $500,000.

Include expenses for construction and renovation if you’re building or upgrading facilities. Operational costs encompass salaries, utilities, insurance, and security systems. Monthly expenses can also be influenced by marketing and maintenance requirements.

Break down your budget into categories like property purchase, construction, staffing, marketing, and operational expenses. This detailed approach helps manage your funds effectively, ensuring you stay within your financial plan and making it easier to secure loans or attract investors.

Stage 2: Designing and managing your storage facility

Creating a well-thought-out storage facility requires deciding on the types of storage units you will offer and carefully planning the layout. Each decision will have a significant impact on your business’s success.

Step 1: Choose the types of storage units

When selecting the types of storage units, you need to consider the needs of potential customers in your area. Standard units are popular for household items, while climate-controlled units are essential for delicate items like electronics and documents.

Unit types to consider:

• Standard units: Suitable for general storage
• Climate-controlled units: Protect items from extreme temperatures and humidity
• Vehicle storage: For cars, boats, and RVs

Offering various sizes like small (5×5), medium (10×10), and large (10×20) units can attract a broader customer base. Think about adding specialty units for items like wine or expensive art if there’s demand.

It’s important to consider unit sizes and accessibility. Small units are perfect for students, while larger units can accommodate business inventory or entire households. Offering different lease terms (short-term and long-term) will also appeal to a broader demographic.

Step 2: Offer value-added services

Additional services can set your storage business apart. Common extra services include:

• 24/7 Access : Allows renters to access their belongings at any time, providing flexibility.
• Security features : Install cameras, alarms, and secure locks to give customers peace of mind.
• Packing supplies : Sell boxes, bubble wrap, and tape on-site for convenience.

Consider offering moving truck rentals and assistance to make the storage process easier. Some facilities provide concierge services, including pickup and delivery of items. Make sure to provide online account management so customers can easily handle payments and reservations.

Step 3: Plan the facility layout

A good layout makes your storage facility efficient and user-friendly. Start by organizing your units to maximize space while ensuring ease of access for customers.

Key aspects to focus on are the following:

• Accessibility: Ensure that all units are easy to reach.
• Security: Install cameras and good lighting.
• Traffic flow: Create wide aisles for easy navigation.
• Office space: Design a welcoming area for customers.

Install ramps or elevators for multi-story facilities. Maintain clear signage to guide customers, making their experience smooth and straightforward. Planning for future expansion can also save time and money down the line.

Step 4: Secure necessary permits and licenses

First, you need to determine what permits and licenses are required in your area. Here are the key steps:

• Research local regulations: Check your city and county regulations to see what permits you need. These can vary widely depending on the location.
• Zoning permits: Ensure your chosen location is zoned for commercial use. You may need a zoning permit or variance if the area isn’t zoned for storage businesses.
• Business license: Apply for a general business license to operate legally in your city or county. This license is often required for tax purposes and local compliance.
• Environmental permits: Depending on what items you plan to store, you might need environmental permits. This is especially true if your facility will house hazardous materials.
• Fire safety permits: Storage facilities may need fire safety inspections and permits. These ensure your building meets local fire codes and has adequate safety measures.

Step 5: Get the right insurance coverage

Insurance is essential for protecting your business from various risks. Here is what you should consider:

General liability insurance: This covers general claims like property damage or injuries that happen on your premises. It’s a must-have for any business.

Property insurance: Protects your building and assets from damage due to fire, theft, or other disasters. This is crucial for a storage business where customer property is involved.

Business interruption insurance: Covers lost income if your business operations are halted due to a covered event like a natural disaster.

Workers’ compensation insurance: If you have employees, you’ll need this insurance to cover medical costs and lost wages if they’re injured on the job.

Specialized storage insurance: This includes coverage tailored to specific storage needs, such as protection against damage to items stored by your clients.

By securing the right permits, licenses, and insurance, you’ll set up a strong legal foundation for your storage business and ensure it’s protected from various risks.

Step 6: Set competitive rental prices

Rental pricing is critical because it impacts your revenue and profit margins. Research local market rates to find what customers are willing to pay. For example, monthly rents can range from 50 cents to $4 per square foot depending on the area. Offer various unit sizes to attract different customer needs.

Consider costs like property taxes, utilities, and maintenance when setting prices. These influences will help ensure you’re covering all expenses while remaining competitive. Implement occasional discounts or promotions to draw in new customers. Tracking rental income regularly helps you adjust prices based on demand and occupancy rates.

Proper accounting is essential for monitoring your profit and costs. Use accounting software to track expenses, revenue, and individual unit rentals. This helps you manage your profit margins effectively. Opening a dedicated business bank account can simplify financial tracking and separate personal finances from business transactions.

Stay on top of tax obligations. Keep detailed records of income and expenses for filing taxes. You’ll need to handle property taxes, sales taxes (if applicable), and other local taxes. Consulting with a tax professional can help you maximize deductions and ensure compliance with tax laws. Proper financial management not only keeps your books in order but also ensures the longevity and success of your business.

Stage 3: Launching your brand and marketing presence

To make your storage business stand out, you need a strong brand and a powerful online presence. This includes developing a unique brand identity, creating an engaging website, and implementing effective digital marketing strategies.

Step 1: Identify your target market

Knowing who your customers are is crucial. Think about the people who are most likely to need storage. This could include students, families, businesses, or people who are moving.

Steps to identify your target market:

• Conduct surveys: Ask potential customers what they need in a storage facility.
• Analyze competitors: Look at who they are targeting and how.
• Use data: Leverage online tools like Google Analytics to understand local search trends.

Step 2: Develop a brand identity

Your brand is more than just a logo; it reflects your business values and services. Start by identifying your target audience. Are you catering to college students who need short-term storage or families needing more space? Or both?

Next, design a logo that is simple yet striking. Colors should reflect your brand’s personality. For example, blue often conveys trust and professionalism.

Create a tagline that captures your business’s essence. Always ensure your brand elements are consistent across all platforms to build recognition and trust.

Step 3: Create an engaging and professional website

A well-designed website is crucial for your storage business. Your website should be user-friendly and visually appealing. Use clear headings and easy navigation to guide visitors. Include essential information like services, pricing, and unit sizes. High-quality images of your facility and units can build trust. Make contact information and location details prominent. Consider adding a Book Now button for online reservations. Use a mobile-friendly design as many people will access your site via smartphones. Testimonials and reviews can also enhance your credibility.

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Step 4: Implement digital marketing strategies

Digital marketing is key to attracting customers. It is the new Google people are looking for the information they need. Start with search engine optimization (SEO) to make sure your website appears in search results. Include keywords like “self-storage” and “secure storage units” in your content.

Use social media platforms to engage with your audience. Share photos, promotions, and tips related to storage. Paid advertising on Google and Facebook can target local customers looking for storage solutions.

Keep in mind that your online presence is often the first impression potential customers will have of your business. Make it count!

Advertising is key to getting customers through your door. Focus on both online and traditional methods to reach a broader audience.

Steps for effective advertising:

• Online advertising: Use social media, Google Ads, and SEO to attract people searching for storage solutions.
• Traditional advertising: Use flyers, local newspapers, and radio ads to reach different segments of your target market.
• Special offers: Run promotions, such as a discount for the first month, to attract new customers.

Tips for success in your storage business

Adopting the latest technology.

Utilizing modern technology can streamline operations and increase revenue streams. Implement a digital management system to track occupancy rates, manage customer information, and handle billing efficiently. Offering online reservation and payment options makes it convenient for customers, enhancing customer service and improving cash flow. Additionally, installing climate control systems in your units can attract clients needing special storage conditions, creating an additional revenue stream.

Analyzing and adapting to the market

Starting a storage business requires a thorough market analysis and the ability to adapt to changes. After you have your store up and running, identifying gaps in the market, such as services that are in demand but not widely offered, like climate-controlled units or 24/7 access, can help differentiate your services.

Staying updated on industry trends is also crucial. The self-storage industry is growing due to lifestyle changes like downsizing and urbanization. Many facilities are now adopting digital tools for managing bookings, payments, and security, which can enhance the customer experience. Customer preferences are also shifting towards facilities with added amenities like security cameras, on-site management, and climate-controlled units.

Markets can change quickly, and your storage business needs to be flexible to stay competitive. Stay responsive to customer feedback by regularly gathering and analyzing it to improve services and address pain points. If you notice a shift in customer needs, such as increased demand for smaller units or additional services, adjust your offerings accordingly. Keep up with industry updates by attending conferences, joining self-storage associations, and subscribing to relevant publications to stay informed about market developments.

Starting a storage business involves careful planning, strategic decision-making, and thorough research. By following this comprehensive guide, you’ll be well-equipped to establish a successful storage business from the ground up. From creating a solid business plan and conducting market research to choosing the right business structure and securing the perfect location, every step is vital.

More than that, designing an engaging website with the help of 10Web’s AI Website Builder and implementing effective digital marketing strategies will ensure your business attracts and retains customers. With the right foundation and continuous adaptation to market needs, your storage business can thrive and grow in a competitive market.

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Is a Self-Storage Business Profitable?

Profitability is in the eye of the beholder. But, generally speaking, a self-storage business can be profitable. In fact, it can be more profitable than many other types of business out there.

“Self-storage has evolved from the homely stepsister to the Cinderella of the commercial real estate industry. Once relegated to sites unsuitable for other productive uses and stigmatized as unsightly metal buildings, self-storage properties historically haven’t attracted sophisticated investors’ attention,”  according to the CCIM Institute , a commercial real estate network. “Yet in recent years, the segment’s solid performance and stable returns have piqued the interest of a growing number of investors.”

Starting a storage business

What makes a self-storage facilities profitable? A self-storage facility is an attractive investment because of the relatively low operating costs. It requires less upkeep than an office building or multifamily complex, for instance, and demands less overhead — namely in the form of labor — than most other kinds of income-generating real estate .

Furthermore, aside from the main business of renting out storage units, a self-storage facility can make money by selling locks, cardboard boxes, packing tape, insurance, and other products and services.

Additionally, the month-to-month nature of self-storage leases enables a facility owner to raise rent more easily than for properties that traditionally offer long-term leases, such as office buildings and multifamily complexes. This allows for more frequent pricing increases if desired.

As  noted by Marc Goodin , co-founder of Storage Authority Franchising, “a properly planned, operated and funded facility can be a very rewarding and profitable business.” This includes creating and adhering to a  self-storage business plan , which most lenders will want to see from someone considering the purchase or construction of a storage facility.

Pros and cons of owning a storage unit business

Among the five pros and five cons of owning a self-storage business are:

• Pro:  Great potential for profit.
• Pro:  Growing demand.
• Pro:  Low overhead compared to other real estate investments.
• Pro:  Often-minimal management.
• Pro:  Prospects for lucrative add-on products and services.
• Con:  Self-storage facility is a business, not just a piece of property.
• Con:  Possibility of picking poor location.
• Con:  Up-and-down movement in occupancy and rental rates.
• Con:  Constant concerns about hiring and managing employees.
• Con:  Stiff competition from other storage operators, particularly ones with a big regional or national footprint.

Profit margin of a self-storage business

As you’re mulling the pros and cons of a self-storage business and you’re pondering the moneymaking potential, keep in mind that there’s not necessarily one right or wrong way to look at profitability. In many cases, someone may use the word “profit” as a proxy for financial success.

For instance, one self-storage business owner might measure profitability based on the profit margin. According to one estimate, a self-storage facility generates a typical  profit margin of 41% .

Net operating income of self-storage units

Meanwhile, another self-storage investor might focus on net operating income, or NOI. Owners of income-generating properties use NOI as a yardstick for profitability. To come up with NOI for your small business, you subtract operating expenses from revenue.

The five publicly traded self-storage REITs in the U.S. like to emphasize NOI when they are reporting financial results to investors.

Public Storage, the largest of the REITs, posted same-store NOI (an apples-to-apples financial comparison of facilities open at least a year) of nearly $1.75 billion in 2020. Public Storage forecasts same-store NOI growth of 9.4% to 11.9% in 2021 versus the previous year.

Extra Space Storage, another self-storage REIT, notched same-store NOI of nearly $770 million in 2020. For 2021, the company predicts NOI growth of 13.5% to 15.5% compared with the previous year.

Revenue is only one part of boosting NOI, controlling expenses for your small business is the other. Some major expenses that can hamper your facility’s profitability include property taxes, snow removal, and debt service.

Return on investment for self-storage businesses

Another way to approach profitability, in the loosest sense of the word, is to examine the return on investment, or ROI. In self-storage, there are two key types of ROI: cash-on-cash ROI and cap-rate ROI.

According to Investopedia, cash-on-cash ROI measures — normally on an annual basis — the amount of cash flow relative to the amount of cash invested in a property. Cash-on-cash ROI is expressed as a percentage. “It is considered relatively easy to understand and one of the most important real estate ROI calculations,” the website says.

Then there’s cap-rate ROI. As Chron.com explains, the cap-rate ROI is the profitability ratio obtained when you divide ROI by the purchase price of a storage facility. In the self-storage industry, you’ll often hear folks refer not to the cap-rate ROI but simply to the cap rate, or capitalization rate, of a facility.

In calculating the cap rate, “the purchase price is used rather than down payment because down payments can vary widely, which can skew the results; your cash-on-cash ROI for the identical facility using the same NOI will be a lot different if you buy a facility with a 20% down payment compared to a 5% down payment,” Chron.com says.

A cap rate in self-storage might be 6.5%, whereas the cap rate for a retail or office building might be 5%. Cap rates vary according to a property’s fundamentals and location, and fluctuate over time.

Building a self-storage facility

Of course, the profitability equation almost certainly will change if you’re going to build a new facility from the ground up instead of buying an existing facility.

The Millionacres investment website  points out  that developing a facility “is the most cost- and labor-intensive method for investing in this industry; however, it can be extremely lucrative if done properly. It takes a high level of experience, knowledge and resources to help make this a successful endeavor.”

Bottom line: development costs and construction costs can eat into your business venture’s profits if you aren’t careful.

Maintaining occupancy

Regardless of whether you build or buy a self-storage facility, the business’ long-term profitability and viability rests largely on maintaining healthy occupancy numbers. While a 65% occupancy rate might cover operating and debt expenses, experts generally recommend shooting for an occupancy rate of 80% to 90%. Buoyed by pandemic-driven demand, the industrywide occupancy rate averaged 91.7% in 2020.

Industry observers say the robust occupancy rates achieved during the pandemic and the accompanying economic downturn further underscored the recession resilience of the self-storage sector. The sector’s resilience likely will remain for some time to come, with one forecast indicating an annualized growth rate of 8% in the U.S. market from 2020 to 2025.

Long term outlook

In August 2021, Joe Russell, president and CEO of Public Storage, said the rise of hybrid work arrangements “gives us confidence that overall adoption of self-storage will continue to grow, and is looked upon favorably by consumers and businesses as a cost-efficient alternative to storing goods in residential or commercial space.”

The long term feasibility of the self-storage industry seems to be stronger than ever.

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How to Start a Self Storage Business in (2024): Step-by-Step Guide

Free Self Storage Business Plan Template

Matthew Khalili

10 Min Read

The 44.37 billion dollars self-storage market grows prolifically as the demand for self-storage facilities has grown throughout the country.

With an average occupancy rate of 85-90%, most self-storage businesses in the US enjoy a profit margin of 11-18%. It is indeed a profitable business venture for someone ready to invest and put in some hard work.

Well, if you have made up your mind to venture into the self-storage industry you must be wondering how to start a self-storage business and turn it profitable.

Well, this guide has all your answers. It details all the essential steps that will help you set up a well-planned and legally compliant self-storage business in a hassle-free manner.

So without any further ado, let’s dive right in.

Steps to Start a Self-Storage Business

• Self-Storage Business Planning and Market Research
• Prepare your Self-Storage Business Plan
• Choose the Location for your Storage Facility
• Register Self-Storage Business
• Acquire Essential Licenses and Permits
• Insure the Self-Storage Facilities
• Open a Business Bank Account
• Calculate your Startup and Operational Costs
• Acquire the Fundings
• Build your Brand and Marketing Plan

Let’s uncover this step-by-step guide that will help you set up a legally compliant and financially planned storage business in a proper way.

1. Self-Storage Business Planning and Market Research

As the first step of starting a self-storage facility, evaluate the feasibility of your storage business idea. For this, you must gather a foundational understanding of the market by diving deep into the research.

Analyze your market area by studying its current population and projected population growth. Evaluate the competitive landscape and see if there is room for new self-storage businesses in your chosen locality or region.

Dive further deep, understanding who your ideal customer is. For instance, would you open your self-storage facility for commercial people or residential people?

An answer to this will influence many other decisions like location, size of self-storage units, storage facilities you will be offering, and your startup costs.

Further, decide whether you will operate the self-storage company on your own or hire a third-party company to oversee the management.

Once you have a rough idea of your business concept, take a step further and nail your business planning with a solid plan.

2. Prepare your Self-Storage Business Plan

Proceeding without a business plan is like aiming your shot in the dark hoping it reaches the target. Well, you sure don’t want to take that risk, especially when planning to invest millions in your self-storage business.

A realistic and credible business plan is a worthy document that will drive your business in a specific direction helping you realize your business goals and objectives. Besides, most investors won’t even pay you heed if you don’t have a business plan.

So, better start writing a credible self-storage business plan that resonates with your core objectives, mission values, goals, and business concepts.

Keep in mind that the business plan for getting an existing self-storage facility off the ground will be much different than building a new storage business. However, if we consider the fundamental components of a business plan, you must try to cover the following topics:

• Executive Summary
• Company Overview
• Industry and Market Analysis
• Self-storage products and services
• Management Team
• Self-Storage operations plan
• Marketing and sales plan
• Financial plan

Writing a business plan is taxing. It requires utmost attention to detail and precision and is time-consuming.

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3. Choose Location for your Storage Facility

Location plays a crucial role in determining the success of self-storage businesses. It’s better to start sourcing the ideal location for your storage space business ASAP!

The preliminary market research will help you identify the localities that have surging or unmet demands. For instance, the demand for self-storage facilities is high in commercial regions and densely populated residential areas.

Now, answer whether you will buy land for storage facilities or remodel an existing facility. Besides, do you plan to spread across the facilities on the same level or will you create multi-story facilities? And lastly, will you offer indoor access to the facilities or only drive-up to storage units?

Usually, the self-storage facilities are spread across a 10,000-100,000 sq. ft. area housing nearly 500 storage units. Now, evaluate your needs and start looking for easy-to-access locations near your target market.

Take help from real estate investors to help you find the right business location. While finalizing the contract, ensure that all the legal compliances are met.

4. Register Self-Storage Business

It is essential to legally register your business with the state. While registering, you have to choose between different business entities like sole proprietorship, partnership, LLC (limited liability company), and Corporation.

Businesses in the self-storage industry can benefit greatly from registering LLCs and Corporations as their legal entity.

Further, register your self-storage business for state and federal taxes and acquire your Employer Identification Number (EIN) from the IRS portal .

EIN is a 9-digit security code unique to your self-storage business and is essential for filing taxes, registering a business bank account, applying for business credit cards, and generating payroll.  Besides, EIN can be generated for free.

5. Acquire Essential Licenses and Permits

To ensure all-around compliance, identify the permits and licenses essential for your self-storage facilities from SBA .

If you are building a self-storage facility from the ground level up, get a Certificate of occupancy (CO) ensuring that your business meets all the zoning, government, and building code requirements.

However, if you are renting an existing self-storage facility, ensure that the owner has an occupancy certificate essential for your compliant business.

Ensure that you have all the essential licenses that comply with Occupational Safety and Health Administration requirements.

While it is still a long way before you start offering your storage unit for rent,  draft the service agreement contracts highlighting the terms and conditions, payment terms, and rental time to minimize the legal dispute.

Failure to get your business legally compliant can attract fines, penalties, and sometimes permanent closure of the business. Ideally, you should avail a legal help to look after the compliances for your business.

6. Insure the Self-Storage Facilities

Just like licenses, you need insurance to ensure that your storage unit business operates safely and lawfully. Federally, business insurance is mandatory for all businesses.

Now, if there is one insurance you definitely need, it is general liability insurance. This offers general protection against injuries, thefts, and property damage- so it’s a good start for your business.

Now, if you are hiring workers to look after your storage unit business, you also need a worker’s compensation fund to cover employees’ injuries and health expenses.

Also, it is wise to get tenant protection insurance to secure the interest of prospective tenants. This can enhance the credibility of your self-storage business amongst your target audience.

Lastly, get umbrella insurance to secure your business interests on all fronts.

7. Open a Business Bank Account

Setting up a separate bank account for your storage unit business helps you protect your personal assets from business liabilities. Not only that, it also eases the bookkeeping and tax filing for your business.

With that EIN procured earlier, you can apply for a separate business bank account. While you apply for a bank account, also apply for a separate business credit card.

A credit card will build credit history for your business making it easier for you to acquire loans in the future.

8. Calculate your Startup and Operational Costs

If the financial section of your business plan is not worked out yet, it is time to calculate your startup cost and operating expenses now.

Evaluate your startup costs by making projections for different expenses. This includes accounting for land purchase, construction, permits, insurance, and much more.

While you calculate your startup costs, also consider the operating expenses for the first 3-6 months. This is a good enough time for you to reach at least break even.

Talking about self-storage operating expenses, here are a few things you should include in your startup cost calculation:

• Mortgage/ Lease payments
• Payroll expenses
• Utility bills
• Professional services bills
• Insurance payments
• Marketing and advertising

Depending on the concept, size, location, and nature of your self-storage business, you can expect to spend anywhere between $1 million-$2.5 million to start your business.

However, it is possible to start a small business with less than a million dollars if you decide to lease or buy existing storage facilities in the lower borough regions of your town.

Once you have a rough estimate of your initial capital needs, you can start making arrangements for the same.

9. Acquire the Funding

As we discussed, it’s quite expensive to start a self-storage business even on a small scale. Personal savings aren’t adequate especially when you need a million dollars for an upfront investment.

Evaluate your monetary position and determine how much funding you require to turn your idea into a successful self-storage business.

In terms of funding options, you can opt for a variety of loans. This includes SBA (small business administration)-guaranteed loans for small businesses, business loans, acquisition loans, construction loans, working capital loans, etc. Evaluate your credit standing and interest rates before choosing this mode of finance.

Additionally, you can raise capital by seeking funding from angel investors and Venture Capitalists. For a certain stake in your business, these investors will provide you with essential funding.

Apart from this, you can also choose the mode of crowdfunding and lending from friends and families to gather essential capital.

10. Build your Brand and Marketing Plan

A strong self-storage business brand is essential to build a successful and profitable business. Ideally, you should start the branding and marketing activities as the facilities start shaping up together.

Define your brand elements to put together a consistent brand image across all the platforms. Get your self-storage business website ready and create your social media accounts to grow your brand’s presence.

You want your target market to find you easily. So get the banners, freeway hoardings, and billboards ready to guide the customers to your self-storage facility.

Define different marketing strategies you will use to attract potential clients to your business. This includes streamlining your GMB (Google My Business) account, email marketing, setting up your phone system, running paid ads, content marketing, and much more.

Allocate your resources to different marketing activities and track the results to see what type of marketing brings you the most benefit.

By now you must have a thorough understanding regarding how to set up your own self-storage business. Let’s take the first step and translate your business idea into a business plan by referring to online business plan samples .

Also, ease your business planning process by using cutting-edge tools from the Upemtrics business planning app . We have financial forecasting and AI writing assistant tools to strengthen your business planning along with free resources and extensive guides to help small business startups.

So let’s turn your vision for self storage business into a reality.

The Quickest Way to turn a Business Idea into a Business Plan

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Frequently Asked Questions

How much money do you need to start a self-storage business.

The cost of starting a self-storage business right from ground level up costs anywhere between $1M-$2.5M . However, it is comparatively much cheaper to buy existing storage facilities and upscale them to meet the concepts and nature of your self-storage business idea.

Are storage businesses profitable?

Absolutely yes. The average profit margins of a self-storage unit business in the US is anywhere between 11-18% Sometimes, storage units with streamlined operations and consistent occupancy rates can manage to earn margins up to 40% as well.

Is starting a storage business a good idea?

Indeed, starting a storage business would add a prominent source of income to your financial standing. In fact, most of the storage business owners hire a third party for facility management. This way they can earn a significant passive income while working on their other business ventures. Moreover, since storage facilities are always in demand, you can stay assured of reaping high benefits by running a highly functional storage unit business.

How many storage units are there at a self-storage facility?

Considering a 10*10 square foot size for one storage unit, you can fit nearly 130-215 units in one acre of land. Generally, self-storage facilities are spread over 10,000-100,000 sq. ft. of land making room for nearly 500-600 storage units in total.

What is the average sq. ft rent in self-storage facilities?

According to Statista, the average asking rent per square foot for storage facilities in the US is $1.3. Considering a 10*10 average size per unit, per month rental of a storage unit is anywhere around $130 .

About the Author

Matthew Khalili is an experienced business planning expert and the founder of The Plan Writers. With over a decade of experience in the field, he has helped numerous entrepreneurs in creating investor-ready pitch decks and business plans. Matt has enabled 5000+ startups to raise over $1 billion through his business plan, market research, and financial modeling services. Read more

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Starting a Self Storage Business

Profit and opportunity analysis, how to start a self storage business.

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Self Storage Business Profit Analysis

Explore the profit analysis below based on industry averages for vacancy and rental rates to uncover the opportunity that exists in the self storage business currently.

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We have over 550 sample business plan templates . So, make sure the plan is a close match, but don't get hung up on the details.

Your business is unique and will differ from any example or template you come across. So, use this example as a starting point and customize it to your needs.

2. Remember it's just an example

Our sample business plans are examples of what one business owner did. That doesn't make them perfect or require you to cram your business idea to fit the plan structure.

Use the information, financials, and formatting for inspiration. It will speed up and guide the plan writing process.

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To create a plan that fits your needs , you need to know what you intend to do with it.

Are you planning to use your plan to apply for a loan or pitch to investors? Then it's worth following the format from your chosen sample plan to ensure you cover all necessary information.

But, if you don't plan to share your plan with anyone outside of your business—you likely don't need everything.

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Is Owning a Storage Unit Business Profitable in 2024?

The rapidly growing state of the self storage industry implies it's a great business - but how profitable really is the sector?

In 2021 alone, the United States recorded 5.4 million filed applications to begin a new business . However, how many of them make it? With the BLS putting first-year business closure rates at 20%, is owning a storage unit business profitable?

Owning and running a storage unit business can be lucrative for those with the right resources. With the right self storage software and business plan, you can generate a steady income from your storage unit business. Intelligent self storage marketing strategies can also help you attract customers and turn them into repeat clients.

In addition to outlining the annual income from owning storage units, this guide also provides credible data on the annual income from owning storage units.

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Everything you need to know about setting up your self-storage facility.

Is Owning a Self Storage Business Profitable? (Quick Answer)

In short: yes, owning a self storage business is profitable if done right.

The annual income from owning storage units can range from $365,000 to $800,000. However, how much money you make hinges on several factors, such as the facility’s location and size, whether or not you had to take out a loan to buy it, and the range of services you offer.

Seeking a self storage business in a high-demand location will increase your chances of maximising profits even if your prices are low. Similarly, consider providing extra services that your consumers could appreciate. You could, for instance, market packaging materials such as boxes and tape.

How Much Profit Do Storage Unit Owners Make?

If you’ve ever pondered the question, “how much does the average storage unit owner make?” Here’s your answer: owners of storage facility businesses typically earn a yearly profit of $184,500.

Naturally, the potential payoff for each storage unit facility will vary based on the facility’s size, local rental market, and operational efficiency. The $184,500 mentioned is based on an average annual rental rate of $9 per square foot, an average storage unit facility size of 50,000 square feet, and a profit margin of around 41%.

Why Is Self Storage Profitable?

Having addressed the query, “is the storage business profitable?”, it’s only fair that we provide reasons as to why self storage is profitable.

Most people have a lot of possessions but need somewhere to store them — not everyone wants to end up in an episode of Hoarders. Reports show that an impressive 38% of Americans have rented a self storage unit or planned to do so in the future — a 5% jump from the 2020 figure.

Military personnel, students, and people who are downsizing or relocating to a new house are some of the most typical people considering self storage options. According to the most recent census estimates, 15.3 million households relocate annually in the US, meaning that each one must leave some unwanted belongings behind, needing storage.

Self storage has shown to be a viable business that can cater to customers of all ages. The baby boomer generation accounts for 21.16% of the US population and should be taken into account because they’re the ones who downsize most frequently. Gen Z accounts for 20.67% of the population, Gen Xers contribute 19.83%, while millennials (who seem to be taking over the self storage industry) account for 21.75%.

These statistics make more sense when you consider that Gen Xers, baby boomers, and millennials have a 54%, 51%, and 40% likelihood of employing self storage services , respectively.

Many operators of brand-new storage facilities overlook college students as possible renters. Yet, they make for ideal customers since, as we all know, a dorm room doesn’t leave much space for storage, and they move houses each year. You should consider employing tactics to get more student renters, especially during the school season.

Overall, the economy’s expansion, the rise in household income and size, and the increase in population are the accurate engines behind the rising need for storage space. With the world’s population expected to keep advancing and the need for storage space growing, this is terrific news for entrepreneurs interested in venturing into the self storage industry.

For more insights into the profitability and statistical analysis of the self-storage industry, explore our detailed self storage industry statistics .

6 Factors Influencing the Annual Income From Owning Storage Units

For established self storage facility owners and new investors, understanding the factors influencing annual income is crucial for success.

Here are 6 key factors that can significantly impact annual income from owning storage units:

Location : The location of a self storage facility plays a vital role in determining its income potential. Facilities in densely populated areas or near residential neighbourhoods tend to attract more customers, resulting in higher occupancy rates and increased revenue. Access to major highways or busy thoroughfares can also increase visibility and convenience for potential renters.

Unit Size and Type : The size and type of storage units available can impact annual income. Offering a variety of unit sizes allows owners to cater to a broader customer base, accommodating individuals and businesses with diverse storage needs. Additionally, providing specialised units such as climate-controlled storage options or vehicle storage can increase rental rates, boosting overall income.

Rental Rates : Determining the appropriate rental rates for self storage units is vital to maximising annual income. It’s essential to strike a balance between competitive pricing and maintaining profitability. Conducting market research and analysing local competitors can help owners determine optimal rental rates that attract customers while ensuring a healthy return on investment.

Occupancy Rates : The percentage of occupied units within a self storage facility directly impacts annual income. Higher occupancy rates translate into increased rental income, while lower rates can lead to revenue loss. Implementing effective marketing strategies, providing exceptional customer service, and ensuring a well-maintained facility can help attract and retain customers, boosting occupancy rates and overall income.

Ancillary Services : Additional services beyond basic storage units can contribute to increased annual income. These services may include selling packing supplies, providing truck rentals, offering insurance options, or partnering with moving companies. By diversifying revenue streams, self storage unit owners can enhance profitability and create a more comprehensive storage solution for customers.

Operational Efficiency : Efficient operational practices can significantly impact annual income. Streamlining processes, optimising staff schedules, and implementing self storage management software can reduce costs and increase overall revenue. In a nutshell, self storage unit owners can improve their bottom line by maximising operational efficiency.

The Relevance of Net Operating Income to Self Storage Businesses

Real estate investors and entrepreneurs rely on net operating income (NOI) to gauge a property’s financial health. In the same vein, a self storage investor may draw valuable insights from this critical metric.

You may calculate the net operating income by subtracting the operating costs from the entire period’s sales. Let’s illustrate how NOI comes into play within the self storage industry and how it applies to established REITs.

The five publicly traded US self storage real estate investment trusts (REITs) often reveal NOI when disclosing financial results to investors.

The most important real estate investment trust (REIT), Public Storage, reported nearly $1.75 billion in same-store NOI in 2020. This metric compares the profitability of identically situated properties that have been open for a minimum of 12 months. Compared to the 2020 value of 9.4%, Public Storage saw a same-store NOI increase to 11.9% in 2021.

One other self storage REIT, Extra Space Storage, reported an approximate same-store NOI of $770 million for 2020. What’s more, the organisation predicted the NOI to increase from 13.5 in 2020 to 15.5% in 2021.

Boosting your annual income from owning storage units goes beyond focusing on sales growth alone. Other significant additional costs that may slash your company’s profitability include debt servicing, snow removal, and property taxes.

Return on Investment (ROI) for Self Storage Businesses

How profitable is a self storage facility when offering a return on investment (ROI)? The ROI is another metric that can assist in approximating profitability for self storage business solutions. The two major forms are cash-on-cash ROI and capitalisation rate ROI.

According to Investopedia, cash-on-cash ROI calculates the rate of return on cash invested in a property every year. The ROI calculated in terms of cash flows is often reported as a percentage. “It’s considered relatively straightforward to understand and one of the essential real estate ROI metrics,” the site states.

Chron.com defines the capitalisation rate ROI as the profitability ratio calculated by dividing the return on investment (otherwise known as the ROI) by the cost of acquiring the storage facility. A facility’s capitalisation rate, or “cap rate ,” is a more common term in the self storage sector than the ROI cap rate

Since down payments can vary widely and skew results, experts recommend using the purchase price rather than the down payment when calculating the cap rate.

The average capitalisation rate (cap rate) for self storage facilities is 6.5%, while the cap rate for retail and office properties is typically 5%. However, cap rates change over time and differ from property to property based on the underlying economics and location.

Financing a Storage Unit Business

An SBA (small business administration) bank loan can be a great way to fund the purchase of an existing storage facility or the building of a brand-new one. Since the principal use of the loan proceeds will be for real estate and a storage unit facility can be used as collateral, you may get a longer term with an SBA 7(a) loan . SBA 7(a) loans can give terms of up to 25 years, offering great flexibility in repayment options.

Should You Invest in Self Storage?

If you’re looking to start a new business and still on the fence about whether or not to invest in self storage, we’d suggest you get on with it, and for valid reasons. For one, revenue for the sector reached $39.5 billion in 2022 in the US, with an average occupancy of 92%. What’s more, the average profit margin throughout the industry sits at an impressive 41%, indicating a profitable business.

Your new storage facility can be anything from a simple, one-story drive-up to something more complex, such as a climate-controlled establishment or multi-story building. While the business may have a slow start, most establishments can still turn a profit once they attain an occupancy rate of 60–70%.

Summarily, self storage facilities are an excellent option for those entirely new to establishing a business. It’s proven successful more often than not, so don’t write it out as a possibility for your new venture. We’d suggest you read through our comprehensive guide on starting a self storage business to know how to go about the entire process.

6 Reasons Why You Should Invest in Self Storage

There are several reasons you should consider a self storage investment , some of which have been touched on at some point in this extensive guide. However, here’s a more detailed outline of 6 important reasons:

Self storage businesses are thriving.

High return profits.

Continually growing industry.

Minimal experience requirements.

Offers versatility in terms of management options.

Multiple options exist for generating extra money.

There are several reasons you should consider a self storage investment , some of which have been touched on at some point in this extensive guide. However, here’s a more detailed outline of those reasons.

1.  Self storage businesses are thriving.

Self storage businesses have a high likelihood of success, but a new firm’s risk of failure is still always present. You may choose to look on the bright side by considering that 92% of new businesses prosper in this industry. As a result, many lenders provide loans to self storage entrepreneurs to fund the facility-building process, with some requiring to pay a deposit of as little as 10%.

2.  High return profits.

The profit margin for firms with high capital requirements, such as restaurants, is 3–5%. On the other hand, profit margins on annual income from owning storage units can be up to 11%. This way, you may recoup the original cost of constructing a self storage facility more quickly than in other types of business.

3.  Continually growing industry.

Nonetheless, forecasts suggest that the self storage business will expand by more than 5% yearly through 2023 up to 2027. Aged individuals moving into assisted living facilities, divorcing couples who rent rather than buy, downsizing families, removal companies for short periods, and graduating college students contribute to the industry’s growth.

4.  Minimal experience requirements.

Any investor looking to invest in certain industries, such as the hospitality and infrastructure development sectors, requires adequate experience in such fields. Alternatively, they tend to seek the counsel of professionals, resulting in extra expenses. On the other hand, self storage managers barely need any specific experience to succeed. However, you may enrol for digital self storage certification classes organised by the Self Storage Association (SSA).

5.  Offers versatility in terms of management options.

Self storage companies may have less contact with their clientele than other businesses. Since self storage is primarily a “self-service,” “hands-off” industry, it can be managed effectively by a small group or even an individual. In fact, over 75% of businesses are owned by independent managers.

Furthermore, having a reliable automated security system in place slashes the number of security guards needed, thereby saving money in the long run. The only time management may need to contact tenants is when they sign contracts, pay rent, and vacate.

Essentially, a wide range of participation levels is available to you as an owner. You might operate the facility independently, employ a manager, or contract the management entirely to a management company. The last two management options afford you the luxury of time so you can focus on other projects you may have.

6.  Multiple options exist for generating extra money.

Many kinds of income are available to those who own a storage facility, and some are unique to the storage business. Popular extras that many storage facilities provide include the sale of moving supplies and the leasing of moving trucks. You may also increase the profitability of your self storage company by offering a tenant protection package.

3 Challenges Associated With Operating a Self Storage Business

As good as owning a self storage business may seem, it does have some drawbacks, as with any other business.

Here are the most prominent ones:

Finding qualified employees may take some time.

Locating an ideal spot may prove difficult.

Security is a necessary expense.

1.  Finding qualified employees may take some time.

Good management is essential to the success of a self storage business, as with any other field. Given the typically modest size of storage facility teams, each member of your group must shoulder a sizable burden. Hence, hiring competent managers and executives is critical to ensuring smooth business operations.

Finding qualified personnel to fill managerial roles in your company can be time-consuming and challenging. Therefore, if you eventually have access to competent hands, you should endeavour to reward success with fair pay and respect, synonymous with the level of responsibility they’re handling.

2.  Locating an ideal spot may prove difficult.

Location is critical for any storefront enterprise, and self storage enterprises aren’t an exception. Easy access and excellent visibility are two essential qualities of a good location.

The occupancy rate of a storage facility might be severely impacted by its location if it’s difficult to get to or if it’s not visible from the main road. If you’re building from the ground up, this may be an easy factor to consider when selecting a site. Still, if you’re buying an existing building, you must be aware of any opportunities to improve the building’s visibility.

3.  Security is a necessary expense.

To ensure the safety of tenants’ possessions, a storage facility must implement stringent security measures across the entire site. Any criminal activity on your property can damage the trust of your tenants, who depend on you to keep their belongings secure. Therefore, it’s in your best interest to take security seriously.

All of your security equipment— from the gate’s entry and controls to the building’s surveillance cameras and locks on residents’ units —should be current, well-maintained, and fully operational at all times.

The safety measures for warehouses have improved as technology has progressed. Maximise your initial investment, after which you can continue to put money back into your company by upgrading systems as necessary and financially feasible. Some updates and system installations can be pricey, but they’re essential for your company’s development and the security of your customers’ possessions.

To learn more about how often self storage units get broken into, check out this blog .

So, is owning a storage unit business profitable in the long term? Yes, it is. You can generate substantial annual income from owning storage units if you set up your business appropriately.

However, as with any business, there’s always some risk involved when operating a self storage facility. Suppose you’re able to weather the inevitable storms of self storage entrepreneurship, use the necessary self storage software and are dedicated to seeing your business succeed. In that case, you’ll have an excellent opportunity to offer valuable service to your community—in the form of storage options—while reaping financial rewards.

Storeganise offers software solutions that help streamline business operations in a highly efficient manner. With features like contactless booking, automated payments, multiple language support, etc., our software can immensely transform how you run your self storage business. Book a personalised demo with us today to get started.

To further enhance your understanding of how self-storage associations can impact the success and profitability of your business, explore the impact of self storage associations for valuable insights and resources.

Frequently Asked Questions

What is a self storage company’s net income margin.

Making a profit is often synonymous with being financially successful. In the self storage industry, the profit margin is a reliable indicator of profitability and typically hovers around the 41% mark.

Is it a brilliant idea to open a storage facility?

In our opinion: yes, it is, as long as you do it right. There are several factors to back up this viewpoint as well. For one thing, new self storage businesses have a 92% success rate.

How much net profit does a storage owner make?

In our opinion, yes, it is, as long as you do it right. There are several factors to back up this viewpoint as well. For one thing, new self storage businesses have a 92% success rate.

A storage facility owner may expect an average profit of $184,500 in one year. Naturally, the potential payoff for each storage unit facility will vary depending on the facility’s size, local rental market, and efficiency.

How much should you charge for storage units?

Storage units cost as little as $40 monthly or as much as $200 monthly, or even higher, so you may charge within this range. On a global scale, the average cost of a storage unit is around $100 per month. An excellent way to ensure that your storage facility’s rates are competitive is to research the rates of nearby competitors. While you’re at it, ensure you factor in direct expenses like mortgage and general operating charges while aiming for at least a 40% profit margin.

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How To Start a Self Storage Business In 6 Steps

Follow these six prep and planning steps to learn how to start a self storage business that’s primed for success from the ground up.

Starting a new business in an unfamiliar industry can be a bit daunting. But you’re not alone; most new self storage facilities are started by folks who are completely new to self storage. You’ve probably had a successful career in another sector, heard tales of the generous returns self storage generates for investors (they’re true!), and are now pretty set on starting this new adventure. We’ve been there , and we’re here to help.

How to start a self storage business?

Before you get caught up in picking a catchy business name and looking at fit outs, there are six prep and planning steps we recommend in order to give your new business the strongest chance of success:

• Decide your investment amount
• Choose the right location
• Plan your storage type + size
• Find your premises
• Decide your operational model
• Research the red tape

Here’s what to do.

1. Decide your investment amount

Work out how much you have to invest, because during this planning phase, your budget will affect:

• where you can afford to get property;
• which types of self storage are feasible; and
• which operational model will be your best option.

Later on, your budget will influence the spec of your fit out, how sophisticated you can get with technology, etc.

Phase your investment?

Starting a self storage business doesn’t have to be an all-at-once proposition. In fact, self storage lends itself particularly well to a phased, modular approach. So when working out your budget, it’s worthwhile breaking out how much you want to invest now, and how much more capital you’re certain you could invest in a year or so to complete your facility if things go well (either from your own funds or with the help of external investors). For example, when our CEO started a self storage business for the first time, he used an initial €120K investment to cover one-off set up costs (taking out a long lease, signage, website and tech costs) and fitted out 1/3rd of the total space, just 49 units initially. Then, a year later, he released a further €110K of home equity to complete the final two fit out stages, taking the facility to 149 units.

2. Choose the right location

Will your facility be in your hometown, the next town over, near where your office is located? Will you spend your days manning the site or will you run it remotely without staff there? Or will you have staff there and you’ll simply check in now and again? Finding the right location for your business makes success more likely.

Every business requires some degree of face-time, so a good starting point is to decide the max you’re willing to commute a few times per week to manage operations, or to commute every day if you plan to work from there. Even if this diminishes over time as you’re able to delegate work, when getting set up (and especially during the fit out phase), you’ll be back and forth a lot.

Starting your search

Use a map like this to work out your search radius (we know it’s not the prettiest tool, but it works!). For example, input your full home address (city, state, zipcode, etc) and the distance you’re willing to travel, then click ‘New Circle’. Make a note of all of the cities/towns in your catchment area.

Researching populations

To decide which locations are viable contenders, list out the towns or cities within your commute area in a table or spreadsheet and work out their populations. This can take a bit of time depending on how many places are on your list and where in the world you’re researching, but here are few links to help you:

• US Census Bureau —Scroll to the ‘Incorporated Places’ section and click on your state. An Excel file will download listing every town’s/city’s population as of 2020 and a 2021 projection.
• Statistics Canada —Scroll midway down the page to use their city/zip code search box.
• United Kingdom—Getting population details on all UK towns and cities still isn’t easy online, but you can use the Scotland Census Area Overview (2011 stats), and try this Area Explorer for Northern Ireland data. In addition, non-government sites like citypopulation.de aggregate publicly-available population data worldwide, and you can search English or Welsh town names to view 2020 population estimates (we just don’t know how accurate their data is).
• Ireland’s Central Statistics Office— Download this spreadsheet of the 2016 census’ total populations for 874 towns in Ireland.
• Australian Bureau of Statistics —Enter your town name in the ‘Search by Area’ field. A search results section will appear a little further down the page. Click its ‘All Persons’ button to quick-view the ‘People’ stats for that location.

Finding unmet demand

With your population table complete, the next step in picking your location is to work out which area presents you with the best business potential.

Start by applying your country’s figure for the average square footage per person. Most Self Storage Associations have this figure available on their website.

In the US, it’s 9.44 sq.ft./head, so you’d multiply the population of each town by this to determine how much self storage the area can support. So a town of 20,000 people could support 188,800 sq.ft. of rental storage space.

The next question: How much self storage space is already on offer in each location on your list? Go online, find out approximately how much space your competitors have built in each town/city and add this to your spreadsheet. Then subtract the two values for each town to see how much space is up for grabs in each area. The more space for the taking, the better your returns should be.

If you want to get even more precise about potential vs competitor capacity, go back to your radius map and plot 3 or 5-mile radius circles around each competitor’s address. Most customers won’t drive more than 5 miles from their home for self storage, and this could help you visualise any lucrative unclaimed locations between your competitors’ catchments.

It’s worth noting that the current supply of self storage per head isn’t necessarily the same as the current demand. There’s likely to be significant unmet demand in most markets. The biggest opportunities are often found in smaller towns. They can present a number of benefits including:

less-expensive commercial properties than cities;

lower property taxes;

less or no competition for business;

faster word-of-mouth promotion;

nobody to outbid in online advertising; and

nobody to get into a price war with.

3. Plan your storage type + size

Once you’ve found a good area to base your business in, you need to decide what type of self storage business you want to open. It might surprise you to hear that there are dozens of types of storage businesses to choose from, including climate controlled storage, portable/mobile storage, vehicle storage, student storage, military storage, boat storage, business storage, 24 hour storage and more. But most of these fall into one of three simple categories: indoor storage, outdoor storage and drive-up storage. At this step, your investment size comes back into play.

What €56K–€110K will buy

If you have between €56K and €110K to invest, outdoor storage or drive-up storage are probably your best options. Both involve buying or leasing some land.

With outdoor storage, you provide a plot where goods are stored unsheltered or semi-sheltered (perhaps with a canopy covering overhead but no walls). A private parking lot is a familiar example of outdoor storage, where cars or large camper vans are stored.

With drive-up storage, on the other hand, you either fill your land with storage containers (usually shipping containers) or rows of units with rollup doors like on your home’s garage. Customers park their vehicles in front of their unit to load and unload, and they store their belongings within these—fully covered and better protected from the elements, their fellow storers using your facility, or passersby. What’s great about the containers approach is you can buy them as you grow. You can limit your risk by buying a few and seeing how long they take to rent out. And if you end up with more than you can fill, they’re easy to sell on to others and relocate.

What €110K+ will buy

If you have €110k or more, then, depending on you can afford to go the indoor route. For this type of self storage business, you buy or lease a warehouse and fit it out with indoor storage units. To keep initial costs down, you can do this fit out across multiple stages, too.

Investment inflators

There are a few variables worth mentioning that will push up your initial investment:

Buying instead of leasing—Obviously buying land or a warehouse will cost you more upfront than leasing will.

Extent of construction and repairs—The more work needed, the more money you’ll need. For example, outdoor sites may require you to tarmac the ground for cars and build a high, quality fence and gate for security. Indoor sites might require a mezzanine floor or a new roof.

To help you fine tune your numbers, try our free self storage financial modeller to work out the initial and maximum funding you’ll need for your self storage business in years one through four.

4. Find your premises

When it comes to visibility, footfall, demand, ease of access, your precise property location matters. So when you’ve narrowed down your location(s), start shopping for premises:

Check out every real estate website there is.

Drive around the towns or cities.

Pay attention to where the outdoor advertising billboards are located.

Meet with realtors and let them know what you’re looking for.

It’s impossible to get the perfect site, but look out for (and perhaps score each site against) benefits such as:

Lots of passing traffic with a building visible from the road

Lots of nearby houses and businesses

Ideally new home building going on nearby

Not too much competition in the area

The ability to rent or buy land or a warehouse at prices that work

Finding all of the above is almost impossible, so simply try your best to get a good combination of each, but don’t rule a site out if it’s missing one or more because it could still work.

This is the fun part of the process, but it’s also the bit where a lot of people give up … because finding suitable sites isn’t easy. It takes time, hard work, and luck!

5. Select an operational model

The final step of how to start a self storage business is deciding how you’ll operate. In other words, what way are you going to run this business?

Staffed, semi-manned, or unmanned?

On premise or remotely managed?

Success is possible with any model, if you’re willing to invest the necessary time, money, and manpower in the business. And of course there are perks, drawbacks, and special considerations for each approach—from flexibility, customer experience and company culture to job satisfaction, sales processes, technology costs, and site security.

6. Research the red tape

If you’ve run businesses in the past, you will already be familiar with the local laws and regulations that will impact your build and operations. If not, make sure to carefully familiarise yourself with the following in your location, as failure to comply can result in unwanted fines and penalties:

Planning permission

Legally permitted opening hours for your location

Building control requirements

Fire safety requirements

Self storage insurance

Can Stora help you?

If you're looking to take the plunge into the wonderful world of self storage, discover if Stora would be a good fit for your business.

Get started →

Useful links

Check out some of our other helpful resources for those new to self storage.

The Self Storage Academy Explore our wide-ranging guides and resources. The Self Storage Growth Guide The ultimate guide to growing your self storage business.

Self Storage Brand Marketplace Still need a logo? Check out our ready-to-go brands.

Self Storage Investment Calculator Quickly see what you can earn from investing in self storage.

Stora is self storage sales and management software for modern operators who want to run their businesses with as little admin and as much profit as possible. Our platform offers automated web sales, facility management + marketing all in one.

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How to Start a Storage Unit Business With No Money

By: Author Tony Martins Ajaero

Home » Business ideas » Real Estate Industry » Storage Unit

A storage unit business, also known as a self-storage or storage facility business, involves renting out storage space to individuals or businesses on a short-term or long-term basis.

Customers typically rent storage units to store personal belongings, household items, business inventory, or other items that they may not have space for in their homes or offices.

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The storage units are usually secure, climate-controlled, and accessible to customers, allowing them to store and retrieve their belongings as needed.

These facilities come in various sizes, ranging from small lockers to larger units that can accommodate furniture, vehicles, or other large items.

Storage unit businesses often provide security features such as surveillance cameras , access control systems, and on-site personnel to ensure the safety of stored items.

Additionally, some facilities offer amenities like 24-hour access, climate-controlled units, and packing supplies for added convenience.

Can You Start a Storage Unit Business with No Money?

Yes, you can start a storage unit business with no money. A good percentage of the people who started storage units, started the business because they have a space or a facility that they are not making use of. In essence, you can start a storage unit business from a facility you are not using or even from a shipping container.

The whole idea of a storage unit is to provide a safe and secure place where people can store their belongings for a short time.

The only niche storage unit business you may not be able to start with no money is a cold storage unit and a mobile storage unit business.

Steps on How to Start a Storage Unit Business

Conduct market research.

Conducting market research is crucial for understanding the demand, competition, and potential success of a storage unit business.

First, you start by clearly outlining your research goals. Understand what specific information you need, such as the size of the target market, customer preferences, competitor analysis, and potential growth opportunities.

Next, you are expected to define your target customer demographic. Consider factors like age, income, location, and storage needs.

Understand the specific needs and preferences of potential customers in the area where you plan to establish your storage unit business. Examine the local demographics of the area where you plan to operate.

Look at population size, income levels, lifestyle patterns, and other relevant factors. This information will help you tailor your services to meet the specific needs of your target market.

Determine the demand for storage units in your chosen location. Look for signs of increasing population density, a growing number of businesses, or other factors that suggest a need for additional storage space. Identify existing storage unit facilities in the area.

Analyze their services, pricing, and customer reviews. Understand their strengths and weaknesses. This information will help you differentiate your business and identify areas where you can offer better value.

Lastly, develop a marketing strategy based on your research findings. Identify the most effective channels to reach your target audience and promote your storage unit business.

a. Who is the Target Market for the Storage Unit Business?

• People moving to a new city or downsizing their homes.
• Individuals undergoing major life changes such as divorce, marriage, or retirement.
• Small businesses in need of extra space for inventory or equipment.
• Companies requiring temporary storage during office relocations or renovations.
• E-commerce businesses seeking space for product storage.
• Individuals storing seasonal items such as holiday decorations, winter clothing, or sports equipment.
• Businesses with seasonal inventory fluctuations.
• People with limited storage space in their homes or apartments.
• Individuals needing storage for cars, motorcycles, boats, or recreational vehicles.
• Hobbyists and collectors looking for a secure place to store valuable items.
• College students needing storage during summer breaks or while studying abroad.
• People facing unexpected situations like natural disasters, where temporary storage may be necessary.

b. Is Storage Unit Business a Profitable Business?

A storage unit business has the potential to be profitable , but like any business, success depends on various factors.

Available data shows that the self-storage market size is estimated at USD 58.26 billion in the current year and is expected to reach USD 72.15 billion by the end of the forecast period, registering a CAGR Of 4.37% during the forecast period.

Keep in mind that profitability might not be immediate; it often takes time to establish a customer base and build a reputation in the market.

c. Are There Existing Niches in the Industry?

Yes, there are existing niches when it comes to storage unit business, and some of them are:

• Outdoor storage
• Indoor storage
• Climate controlled storage
• Wine storage
• Car Storage
• Boat storage
• ATV storage
• Mobile Storage.

d. Who are the Major Competitors?

• Public Storage
• Extra Space Storage
• Life Storage, Inc.
• Simply Self Storage
• SmartStop Self Storage
• StorageMart
• Safeguard Self Storage
• Uncle Bob’s Self Storage (now Life Storage)
• StorQuest Self Storage
• Metro Self Storage
• Prime Storage Group
• US Storage Centers
• SecurCare Self Storage
• National Storage Affiliates Trust
• Compass Self Storage
• Devon Self Storage
• Storage Pros Management LLC.

e. Are There County or State Regulations or Zoning Laws for Storage Unit Business?

Yes, regulations and zoning laws for storage unit businesses in the United States are typically determined at the local level, which means that they can vary from county to county and state to state.

Zoning laws dictate where certain types of businesses, including storage facilities, can be located and under what conditions they can operate.

Different areas within a municipality or county are designated for specific types of land use. Zoning laws determine whether a storage unit business is allowed in a particular zone.

Storage unit businesses often require permits from local authorities. These permits may cover aspects such as construction, occupancy, signage, and environmental impact.

Zoning laws may specify requirements for the design and appearance of storage facilities, including building aesthetics, landscaping, and signage.

Some local regulations may outline security measures that storage unit facilities must implement to ensure the safety of stored items and the surrounding community.

Local regulations may address the environmental impact of storage facilities, including issues related to stormwater management, waste disposal, and hazardous materials storage.

Zoning laws may include provisions related to traffic flow, parking requirements, and the impact of the storage facility on local transportation infrastructure.

f. Is There a Franchise for the Storage unit Business?

Yes, there are franchise opportunities for storage unit business, and some of them are;

• Devon Self Storage.

g. What Do You Need to Start a Storage Unit Business?

• Business Plan
• Legal Structure and Registration
• Zoning Approval
• Secure and Accessible Location
• Storage Units and Infrastructure
• Security Systems
• Permits and Licenses
• Marketing and Branding
• Online Booking System
• Financial Capital.

Choose a Memorable Business Name

When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with.

It is essential that the name you come up with can easily be pronounced, is unique and easily memorable. Some of the catchy business name ideas suitable for a storage unit business are;

Creative Storage Unit Name ideas

• John Parker® Storage Unit Company, Inc.
• Rowe Yorke™ Storage Unit Company, LLC
• Maurice Adams© Storage Unit Company, Inc.
• Shawn Miller® Storage Unit Company, Inc.
• Jack Townsend® Storage Unit Company, LLC
• Folly Alison™ Storage Unit Company, Inc.
• Owen Silas® Storage Unit Company, Inc.
• Creflo Giovani™ Storage Unit Company, LLC
• Tony Martins© Storage Unit Company, Inc.
• Rav Fourteen® Storage Unit Company, Inc.
• Auckland Group® Storage Unit Company, Inc.
• Jamel McFadyen™ Storage Unit Company, Inc.
• Jose Mario™ Storage Unit Company, LLC
• John Hannah® Storage Unit Company, Inc.
• Cean Markson® Storage Unit Company, Inc.
• Mark Shannan© Storage Unit Company, Inc.
• West Brownson® Storage Unit Company, Inc.
• Julius Bornean© Storage Unit Company, LLC
• Collins Macklin® Storage Unit Company, Inc.
• Fortran Group® Storage Unit Company, Inc.

Register Your Business

A. what type of business structure is best for storage unit business.

The ideal business structure for a storage unit business is determined by a variety of factors, including the size of the company, the number of owners, the level of personal liability the owners are ready to accept, and the tax consequences of the various business structures.

However, we normally recommend that you start the business with minimal liability. An LLC is a hybrid corporate form that provides the flexibility of a partnership while also providing its owners with limited liability protection.

An LLC can have one or more owners, and the owners are not personally accountable for the debts or liabilities of the business. This business form is frequently used for small to medium-sized organizations.

b. Steps to Form an LLC

• Choose a Name for Your LLC.
• File Articles of Organization.
• Choose a registered agent.
• Decide on member vs. manager management.
• Create an LLC operating agreement.
• Comply with other tax and regulatory requirements.
• File annual reports.

c. What Type of License is Needed to Open a Storage Unit Business?

• Business License
• Zoning Permit
• Building Permit
• Environmental Permits
• Fire Department Permit
• Health Department Permit
• Signage Permit
• Occupancy Permit
• State Sales Tax License
• Storage Facility License.

d. What Type of Certification is Needed to Open a Storage Unit Business?

There is no specific certification required to start a storage unit business.

e. What Documents are Needed to Open a Storage Unit Business?

• Legal Structure Documentation (e.g., Articles of Incorporation, LLC Operating Agreement)
• Zoning Approval Documentation
• Property Lease or Ownership Documents
• Building and Construction Plans
• Security System Plans
• Insurance Policies
• Employee Identification Number (EIN) from the IRS
• Environmental Compliance Documents
• Health Department Approval (if applicable)
• Fire Department Approval
• Signage Permit Documents
• Financial Statements and Capital Verification.

f. Do You Need a Trademark, Copyright, or Patent?

For a storage unit business, the need for a trademark, copyright, or patent depends on the specific aspects of your business and the services you provide.

If you have a unique company name, logo, or tagline associated with your storage unit business that you want to protect, you might consider registering a trademark. This can help prevent others from using similar marks.

In the context of a storage unit business, you might consider copyright if you create original marketing materials, website content, educational resources, or software. For instance, if you develop unique storage unit software, you could potentially protect them through copyright.

In the context of a storage unit business, patents might be relevant if you develop a new and innovative technology or method that provides a unique advantage in the industry.

Cost Analysis and Budgeting

A. how much does it cost to start a storage unit business.

The cost to start a storage unit business can vary widely depending on factors such as the size of the business, location, equipment, and supplies needed, staffing costs, marketing expenses, and more.

However, a rough estimate could range from $120,000 to $500,000 or more, depending on the type, size (number of storage units) and scope of the business.

b. What are the Costs Involved in Starting a Storage Unit Business?

• Legal and administrative costs (the cost of obtaining business licenses and permits, registering the business, and consulting with attorneys and accountants): $2,500
• Equipment, and software: $55,000
• Staffing costs: $65,000
• Rent/lease: $125,000
• Marketing and advertising costs: $3,000
• Insurance costs: $2,800
• Miscellaneous Expenses: $5,000.

c. What Factors Determine the Cost of Opening a Storage Unit Business?

• The size of the storage unit business
• The choice of location
• The required licenses and permits
• The cost of hiring and paying a business consultant and attorney
• The cost of branding, promotion, and marketing of the storage unit business
• The cost of furnishing and equipping the storage unit business office
• The cost of the insurance policy covers
• The cost of registering the business
• Source of your supplies and ongoing expenses
• The cost of recruiting and training your staff
• The cost of the purchase and customizing of uniforms for your employees
• The cost for the grand opening of the storage unit business.

d. Do You Need to Build a Facility? If YES, How Much Will It Cost?

It is not necessary to build a new facility for your storage unit business , especially if you choose to operate from a leased facility. But, if you have the required finance, it will pay you to build your own facility.

The truth is that building or reconstructing a facility for your storage unit business will allow you to come up with a facility that will perfectly fit into your overall business goals and vision.

e. What are the Ongoing Expenses of a Storage Unit Business ?

• Property Lease or Mortgage Payments
• Property Maintenance and Repairs
• Utilities (Electricity, Water, Gas)
• Security System Maintenance and Monitoring
• Insurance Premiums (Property, Liability, etc.)
• Property Taxes
• Marketing and Advertising Costs
• Staff Salaries and Benefits
• Software and Technology Expenses (e.g., online booking systems)
• Pest Control and Facility Cleaning Costs
• Miscellaneous costs.

f. What is the Average Salary of your Staff?

• Facility Manager – $75,000 per year
• Accountant – $56,000 per year
• Sales and Marketing Manager – $40,000 per year
• Compliance and Safety Officer – $38,000 per year
• Administrative Staff – $34,000 per year
• Customer Service Representative – $33,000 per year
• Security Guard – $35,000 per year.

g. How Do You Get Funding to Start a Storage Unit Business?

• Raising money from personal savings and sale of personal stocks and properties
• Raising money from investors and business partners
• Sell shares to interested investors
• Applying for a loan from your bank/banks
• Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
• Source for soft loans from your family members and friends.

Write a Business Plan

A. executive summary.

Auckland Group™ Storage Unit Company, LLC is a dynamic and innovative storage unit business set to redefine the storage solutions landscape in San Francisco, California.

Our company is committed to providing secure, convenient, and customizable storage options to meet the diverse needs of individuals and businesses in the bustling urban environment of San Francisco.

Strategically situated in San Francisco, our storage facility is easily accessible to clients. The prime location ensures convenience and meets the growing demand for secure and accessible storage in the city.

Auckland Group™ Storage Unit Company, LLC aims to establish a state-of-the-art storage facility equipped with cutting-edge security features, climate-controlled units, and a user-friendly online booking system. Our commitment is to offer a seamless storage experience for customers seeking reliable and flexible storage solutions.

b. Products and Service

• Security: Implementing the latest security technologies to ensure the safety of stored items.
• Climate-Controlled Units: Offering specialized storage options for temperature-sensitive items.
• Online Booking: Providing customers with a user-friendly online platform for easy reservations and payments.
• Flexible Unit Sizes: Catering to a variety of storage needs, from small personal items to larger commercial inventory.
• 24/7 Access: Enabling customers to access their belongings at their convenience.

c. Mission Statement

“At Auckland Group™ Storage Unit Company, LLC, our mission is to redefine the storage experience by providing secure, convenient, and personalized solutions.

We are committed to offering a safe and accessible space for individuals and businesses to store their belongings, coupled with exceptional customer service.

With a focus on innovation and community engagement, we aim to exceed expectations and become the trusted choice for storage solutions in San Francisco.”

Vision Statement:

Our vision at Auckland Group™ Storage Unit Company, LLC is to be the premier storage destination in San Francisco, setting the standard for excellence in the industry.

We envision a future where our state-of-the-art facilities, cutting-edge technology, and commitment to sustainability make us the go-to choice for customers seeking reliable, flexible, and secure storage options.

d. Goals and Objectives

The goals of a storage unit business are to provide secure and convenient storage solutions for individuals and businesses.

Objectives include implementing cutting-edge security measures, offering climate-controlled units, fostering a user-friendly experience, achieving financial sustainability, and becoming a trusted leader in the storage industry.

e. Organizational Structure

• Chief Executive Officer (Owner)
• Facility Manager
• Sales and Marketing Manager
• Compliance and Safety Officer
• Administrative Staff
• Customer Service Representative
• Security Guard.

Marketing Plan

A. swot analysis.

• Strategic Location : Prime placement in San Francisco, a high-demand urban market.
• Innovative Technology : Advanced security systems and a user-friendly online booking platform.
• Diverse Storage Options : Flexible unit sizes, climate-controlled units, catering to varied customer needs.
• Customer-Centric Approach : Commitment to exceptional service and customer satisfaction.
• Initial Establishment Costs : High upfront costs for facility setup and technology integration.
• Competition : Presence of established competitors in the local storage industry.
• Dependence on Local Economy : Vulnerability to economic downturns affecting storage demand.

Opportunities

• Market Expansion : Explore opportunities for additional locations in neighboring areas.
• Partnerships : Form strategic partnerships with local businesses for mutual benefits.
• Service Diversification : Introduce specialized storage services, such as unique collections or business inventory management.
• Economic Fluctuations : Adverse economic conditions impacting customer spending on storage services.
• Regulatory Changes : Changes in zoning laws or regulations affecting storage facility operations.
• Security Risks : Evolving cybersecurity threats and the need to continuously invest in security measures.

b. How Do Storage Unit Businesses Make Money?

Storage unit businesses generate revenue by renting out storage space to individuals and businesses on a short-term or long-term basis. Customers pay a recurring fee based on the size of the rented unit and the duration of use.

Additional revenue streams may include charges for climate-controlled units, security deposit fees, and fees for added services like packing supplies.

c. Payment Options

• Credit Card Payments
• Bank Transfers
• Electronic Funds Transfer (EFT)
• Payment Platforms (PayPal, Square, etc.)
• Mobile Payment Apps.

d. Sales & Advertising Strategies

• Utilize a user-friendly website with online booking capabilities. Implement digital marketing strategies such as search engine optimization (SEO), social media advertising, and targeted online campaigns to reach potential customers.
• Attract new customers and encourage repeat business by offering special promotions, discounts for long-term rentals, or referral incentives. Create limited-time offers to drive urgency and boost sales.
• Forge partnerships with local businesses, real estate agencies, or relocation services to expand your reach.
• Optimize your online presence for local search by ensuring accurate business information on Google My Business and other online directories.
• Invest in clear and attractive signage at your storage facility to capture the attention of passersby.
• Establish a referral program where existing customers receive incentives for referring new clients.
• Showcase your storage facility with high-quality photographs and virtual tours on your website.

Financial Projection

A. how much should you charge for your product/service.

Base Rental Fee: The primary charge is based on the size of the storage unit, typically expressed every month.

Climate-Controlled Unit Fee: Additional charges for units equipped with climate control.

Security Deposit: Refundable upfront payment to cover any potential damages or unpaid fees.

Insurance Premium: Optional or mandatory insurance coverage for stored items.

Access Hours Fee: Some facilities may charge extra for extended access hours or 24/7 access.

Late Payment Fee: Penalties for payments made after the due date.

Admin or Move-In Fee: A one-time fee covering administrative costs and initial setup when renting a unit.

Packing and Moving Supplies: Charges for boxes, tape, locks, and other packing materials available for purchase.

Unit Upgrades or Downgrades: Charges associated with changing to a larger or smaller storage unit.

Transfer Fee: A fee for transferring items between units within the facility.

Special Promotions or Discounts: Discounts for long-term rentals, promotions for new customers, or referral incentives.

Cleaning Fee: A fee for cleaning and preparing the unit after it has been vacated.

b. How Much Profit Do Storage Unit Business Owners Make a Year?

The annual profit for storage unit business owners varies widely based on factors like location, facility size, and management efficiency.

On average, small to mid-sized facilities may generate profits ranging from $30,000 to $100,000 per year, while larger operations in high-demand areas can exceed $500,000 annually.

c. What Factors Determine the Amount of Profit to Be Made?

• Location and Market Demand
• Operating Expenses
• Unit Occupancy Rates
• Unit Size and Specialty Offerings
• Marketing and Customer Retention.

d. What is the Profit Margin of a Storage Unit Business?

The profit margin of a storage unit business typically ranges from 11% to 30%. Profitability is influenced by factors such as location, occupancy rates, operating expenses, and effective marketing. Well-managed facilities in high-demand areas can achieve higher profit margins within this range.

e. What is the Sales Forecast?

• First Fiscal Year (FY1): $750,000
• Second Fiscal Year (FY2): $1 million
• Third Fiscal Year (FY3): $1.5 million

Set Up your Shop/Office

A. how do you choose a perfect location for a storage unit business.

• Select areas with a significant population and a growing community to ensure a consistent demand for storage services.
• Choose a location with easy accessibility, high visibility from main roads, and convenient proximity to residential and commercial areas.
• Analyze the level of competition in the chosen area. Consider locations with moderate competition or opportunities to offer unique services that stand out.
• Ensure that the chosen location complies with local zoning regulations and has the necessary permits for operating a storage facility.
• Conduct thorough market research to understand the storage needs of the local population.

b. What State and City is Best to Open a Storage Unit Business?

• Atlanta, Georgia
• Los Angeles, California
• Chicago, Illinois
• Dallas/Fort Worth, Texas
• Denver, Colorado
• New York City, New York
• San Francisco, California
• Seattle, Washington
• Las Vegas, Nevada
• Orlando, Florida.

c. What Equipment is Needed to Operate a Storage Unit Business?

• Storage Units (Various sizes and types to accommodate different storage needs.)
• Surveillance cameras, access control systems, and alarm systems
• Climate Control Systems
• Online Booking and Management Software
• Office Equipment (Computers, printers, and other office supplies for administrative tasks.)
• Furniture and Fixtures
• Moving Equipment (Dollies, carts, and other moving equipment to assist customers with transporting their items.)
• Pest Control Equipment
• Clear and visible signage for directions, rules, and branding.
• Tools and equipment for routine facility maintenance and repairs.
• Security Lighting
• Online Security Measures
• Communication Systems (Phones, intercoms, or communication tools for customer inquiries and assistance.)
• Transportation Vehicles (If offering mobile storage or pickup/delivery services.)
• Waste Disposal Equipment.

Hire Employees

Hiring employees for a new storage unit business is essential for efficient operations and customer service. Trained staff can handle customer inquiries, maintain security, and ensure the facility’s smooth day-to-day functioning.

Key employees include a facility manager to oversee operations, customer service representatives to assist clients, maintenance personnel for upkeep, and security personnel to monitor the premises.

Launch the Business Proper

Organizing an opening party for a new storage unit business can be a good way to introduce your business to the community and create awareness about your services. However, whether or not to have an opening party is ultimately a decision that depends on your business and goals.

If you want to organize a proper launch for your storage unit business, then you must make sure to invite members of the community who may be interested in your services.

a. What Makes a Storage Unit Business Successful?

• Selecting a strategic and easily accessible location in a high-demand area.
• Implementing robust marketing strategies, both online and offline, to create awareness, attract customers, and differentiate the business from competitors.
• Ensuring top-notch security with surveillance systems, access controls, and other measures to instill trust and protect stored items.
• Prioritizing exceptional customer service
• Streamlining operations, including online booking, payment systems, and efficient facility management, to provide a seamless and hassle-free experience for customers.

b. What Happens During a Typical Day at a Storage Unit Business?

On a typical day at a storage unit business , staff engage in customer interactions, assisting with inquiries, reservations, and payments.

Facility maintenance is ongoing, ensuring cleanliness and order. Security measures are regularly monitored, including surveillance systems and access controls.

New units may be prepared for occupancy, and existing units may undergo inspections. Administrative tasks, such as record-keeping and responding to emails or phone calls, contribute to operational efficiency. Marketing efforts, both online and onsite, may be implemented to attract new customers.

c. What Skills and Experience Do You Need to Build a Storage Unit Business?

• Skills in strategic planning, financial management, and business operations to ensure the overall success of the storage unit business.
• Understanding of real estate principles and market trends to select an ideal location for the storage facility.
• Skills in marketing strategies, customer acquisition, and sales to attract and retain customers.
• Strong customer service skills to address inquiries, and concerns, and ensure a positive customer experience.
• Knowledge of security systems and protocols to safeguard stored items and maintain the integrity of the facility.
• Familiarity with local zoning laws, permits, and regulations related to storage facilities.
• Negotiation skills for securing favorable lease agreements, vendor contracts, and other business-related contracts.
• Competence in using technology for online booking systems, security monitoring, and other operational aspects.
• Knowledge of facility maintenance to ensure the physical infrastructure remains in optimal condition.
• Ability to identify and address challenges promptly, whether related to customer concerns, facility maintenance, or operational issues.

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How to Start a Self Storage Business

Last Updated: September 7, 2024 Approved

This article was co-authored by Gina D'Amore . Gina D'Amore is a Financial Accountant and the Founder of Love's Accounting. With 12 years of experience, Gina specializes in working with smaller companies in every area of accounting, including economics and human resources. She holds a Bachelor's Degree in Economics from Manhattanville College and a Bookkeeping Certificate from MiraCosta College. There are 11 references cited in this article, which can be found at the bottom of the page. wikiHow marks an article as reader-approved once it receives enough positive feedback. In this case, 100% of readers who voted found the article helpful, earning it our reader-approved status. This article has been viewed 218,824 times.

Owning a self-storage business can be very lucrative. You are responsible for the personal property of your customers, so you need to make sure that you are prepared to manage that obligation. You will need to do some careful research and detailed planning before you start the business.

Planning Your Business

• Start by searching online and through paper listings for self-storage businesses operating in your locality.
• Look at the prices they charge and the kind of capacity and service they can offer.
• An area with a lot of storage business suggests high demand, but also may be already well-catered for.
• According to one analysis, sites that are three or four years old, and are only 70 per cent occupied indicate a soft market that you should avoid. [1] X Research source
• Trade journals and specialist websites are generally excellent sources of trade specific information. [2] X Trustworthy Source U.S. Small Business Administration U.S. government agency focused on supporting small businesses Go to source [3] X Research source [4] X Research source

• Your start-up costs might include the initial rental costs for the storage facility or land you will be using, the costs of hosting a website, and the promotional material you will use to launch your business.
• This information will feed into your business plan.

• An executive summary detailing your objectives and the keys to success.
• A company summary outlining the nature, size, location and ownership structure of your business.
• A section on the services that your business will deliver.
• A market analysis summary.
• A clear outline of your marketing and implementation strategy for the business.
• A summary of the business's management structure and approach.
• A detailed financial plan with costings and projections to cover the first few years of business. [7] X Research source

• Market penetration: this means how you will enter the market and create a distinct space for your business.
• Communications strategy: this section deals with how you will reach your customers directly. This could include promotions, advertising, and printed materials like flyers.
• Growth strategy: this will cover your strategy for growing and expanding your business over time. This might include elements on securing more storage units, or employing staff.

Starting Your Business

• Your funding requirement and how much money you need.
• Any future funding requirements you may have for the next five years.
• How you will use the funding, giving precise information on capital expenses or other costs you intend to use it for.
• Any strategic financial plans for future, such as selling your business or paying off debt.

• You can build your own storage units on land you have purchased and have the rights to use.
• There are companies that construct and deliver storage units in a variety of shapes and sizes that you can buy direct.

• You should hire an attorney who specialises in regulations and taxation for small businesses to ensure that everything is taken care of properly.
• Ask your attorney about the various grants and financial aid schemes that exist for small businesses to determine if you are eligible for financial support from the government.

• Don't limit your online presence to a smart website. Self-storage directories get a lot of traffic.
• When people search through these databases, you want your business to appear in the results.
• Using self-storage directories is a good way to make your company visible without getting to the top of ordinary search engine results. [10] X Research source

• When you think about how to reach out to customers, you should also be thinking about how you respond to inquiries.
• Ensure whoever answers the phone has an excellent phone manner and is fully up-to-speed with all the pertinent information about the storage units. [11] X Research source
• If a potential customer calls up, and the person who answers the phone cannot give an accurate price or indication of availability, you will not get many customers.

• You will need to get all the relevant insurance and register new employees with your State.
• Talk to your attorney to ensure that all of the paperwork is completed correctly, and all of the taxes and regulations are met.

Community Q&A

• Networking and word of mouth is a great way to grow and expand your business. Thanks Helpful 0 Not Helpful 0

You Might Also Like

• ↑ http://www.insideselfstorage.com/articles/2012/06/looking-to-build-your-first-selfstorage-facility-read-these-insights-first.aspx
• ↑ https://www.sba.gov/business-guide/plan-your-business/market-research-competitive-analysis
• ↑ http://www.selfstorage.org
• ↑ http://www.insideselfstorage.com
• ↑ https://www.sba.gov/category/navigation-structure/starting-managing-business/starting-business/how-write-business-plan
• ↑ http://www.bplans.com/self-storage_business_plan/executive_summary_fc.php
• ↑ http://www.bplans.com/self-storage_business_plan/financial_plan_fc.php
• ↑ https://www.sba.gov/business-guide/10-steps-start-your-business
• ↑ https://www.insideselfstorage.com/suppliers-products/tap-into-the-buying-power-of-self-storage-third-party-directories
• ↑ http://www.bplans.com/self-storage_business_plan/strategy_and_implementation_summary_fc.php

About This Article

To start a self-storage business, first you'll need to secure funding for all of the startup costs, including things like rental costs for a storage facility, the costs of hosting a website, and promotional materials. Then, once you have enough money saved up, you can rent an existing storage location or buy land and have your own storage units built on it. You'll also need to register your business and make sure you're in compliance with all local regulations. To learn how to secure funding for your business, scroll down! Did this summary help you? Yes No

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Home » Real Estate

How to Start a Storage Unit Business [Business Plan]

Self-storage facilities rent space on a short-term basis (often month-to-month, though options for longer-term leases are available) to individuals (usually for storing household goods) or to businesses (usually for storing excess inventory or archived records). Some facilities offer boxes, locks, and packaging supplies for sale to assist tenants in packing and safekeeping their goods, and may also offer truck rentals.

Studies show that the industry was worth $38 billion in 2018. Modern storage facilities grew slowly through the 90s, at which time demand outpaced supply and caused a rush of new self-storage developments. From 2000 to 2005, over 3,000 new facilities were built every year in America.

At year-end 2019, there were 47,539 self-storage facilities in the United States on industrial and commercial land parcels. There are more than 1.9 billion square feet of available self-storage in space in the U.S. The six largest publicly traded storage operators (four REITs, and U-Haul) own or operate approximately 18 percent of all self-storage facilities.

Steps on How to Start a Storage Business With No Money

1. conduct market research.

The first step in conducting market research for a storage business is to develop market-based research questions in line with your overall business goal and objective. In this regard, you should source information that will help you maximize your business, help you know what your potential market is looking for from a storage facility, and also help you operate your storage business with less stress, thus helping you gain a fair share of the available market in your city.

a. Who is the Target Market of Storage Business?

• Families (Homes)
• Business owners
• Merchants, Importers, and manufacturers
• Construction companies

b. Is Storage Service a Profitable Business?

Yes, the storage service business is quite profitable. Statistics show that the industry generates an average of $33 billion annually in the United States of America. Self-storage facilities can earn around $361,000 to $798,800 gross per year with the states of Maryland, Arkansas, and New York winning the highest number of sales.

It might also interest you to note that, from 2009 to 2018, self-storage facilities averaged an annual ROI of 16.9%. This number was higher than office, industrial, retail, or apartments during that time. Due to such elevated ROI, the self-storage industry is a highly sought-after form of real estate and can often be difficult to find.

c. Are There Existing Niches in the Industry?

No, there are no existing niche ideas when it comes to the storage business, but a self-storage business may also operate as a mobile storage and moving company.

d. Who are the Major Competitors?

• Public Storage
• ExtraSpace Storage
• Life Storage
• National Storage Affiliates
• StorageMart
• Prime Storage Group
• Simply Self Storage
• SmartShop Asset Management
• Metro Storage, LLC.
• Sovran Self Storage Inc.

e. Are There County or State Regulations or Zoning Laws for the Storage Business?

Yes, there are county or state regulations and zoning laws for a storage service business. In the United States, self-storage facilities can be classed as Class A, Class B, and Class C properties, and you cannot legally register a self-storage unit as your business location nor can you invite employees to work from it with you as an official office space. You can, however, run your business from a storage space by using it as a place to store your stock or tools.

f. Is There a Franchise for Storage Business?

Yes, there are franchise opportunities for the storage service business, and here are some of them;

• Go Mini’s Storage and Moving
• MyWay Mobile Storage
• Storage Authority, LLC
• Units Moving and Portable Storage
• WG Storage and Delivery
• Big Box Storage Franchising Inc.
• Zippy Shell Moving and Storage

g. What Do You Need to Start a Storage Business?

• A Feasibility Report
• Business and Marketing Plans
• Business Licenses and Permits
• A Safe Storage Facility
• Computers, Laptops, and Software Apps
• EIN (Employer Identification Number)/Federal Tax ID Number.
• A Corporate Bank Account
• Locks and Keys
• Startup Capital

Memorable Business Name ideas for Storage Service

• Safe and Sure® Storage Service, Inc.
• Douglass Road® Storage Service, LLC
• Grass House© Storage Service, Inc.
• Storage Solutions® Storage Service, Inc.
• The Safe™ Storage Service, Inc.
• Chris Morgan™ Storage Service, LLC.
• Jacinth Dean© Storage Service, LLC
• Caddy Zeal® Storage Service, Inc.
• Fred Nathan© Storage Service, Inc.
• Marcelo Ray© Storage Company, Inc.
• Japhet Edison® Storage and Moving Service, Inc.
• Leo Star® Storage and Moving Service, LLC
• Perfect Safe® Storage and Moving Service, Inc.
• Banny Darlington® Storage and Moving Service, Inc.
• Martis Mosely® Storage and Moving Service USA LLC.
• Shae Harold® Storage and Moving Service, Inc.
• Box 2 Box® Storage and Moving Service USA LLC
• Storage and More® Storage and Moving Service, LLC
• Steel Safe® Storage and Moving Service USA LLC
• Tim Woods® Storage and Moving Service USA LLC.

Register Your Business

A. what type of business structure is best for storage business.

Even though there are several options when it comes to the business structure of a storage service, the one that most players in this line of business consider is LLC. It is common to consider LLC because providers want to protect themselves from lawsuits.

Please note that an LLC will need an EIN if it has any employees or if it will be required to file any of the excise tax forms listed below. Most new single-member LLCs classified as disregarded entities will need to obtain an EIN.

b. Steps to Form an LLC

• Choose a Name for Your LLC.
• File Articles of Organization.
• Choose a registered agent.
• Decide on member vs. manager management.
• Create an LLC operating agreement.
• Comply with other tax and regulatory requirements.
• File annual reports.

c. What Type of License is Needed to Open a Storage Business?

• General Business License
• Health and Safety Permit
• Zonal Permits (Applicable in some cities)
• Signage Permit
• Operational State Facility Inspections

d. What Type of Certification is Needed to Open a Storage Business?

These are some of the certifications you can work towards achieving if you want to run a storage service business;

• The Certified Self Storage Manager (CSSM) Certification

e. What Documents are Needed to Open a Storage Business?

These are some of the basic legal documents you are expected to have if you want to legally run a storage service business in the United States of America;

• Business and liability insurance
• Federal Tax Payer’s ID
• State Permit and Building Approval
• Certificate of Incorporation
• Business License
• Fire and Safety Permit
• Business Plan
• Employment Agreement (offer letters)
• Operating Agreement for LLCs
• Insurance Policy
• Online Terms of Use
• Online Privacy Policy Document
• Contract Document
• Company Bylaws
• Memorandum of Understanding (MoU)

f. Do You Need a Trademark, Copyright, or Patent?

If you are considering starting a storage service business, you may not need to file for intellectual property protection, copyright, patent, or trademark. This is because the storage service business does not require one except on rare occasions.

Cost Analysis and Budgeting

A. how much does it cost to start a storage business.

When it comes to starting a storage service business, the startup cost will vary and it can range from $250,000 to over $1.5 million. This is because, on average, a single-story storage facility costs $25 to $45 per square foot to build, while multi-story costs $42 to $70 per square foot for construction. A high-end storage unit facility has 60,000 and 80,000 rentable square feet and costs $45 to $65 on construction per square foot as estimated by Mako Steel.

b. What are the Costs Involved in Starting a Storage Business

• The total fee for registering the business in the United States of America – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines, and other software) – $3,300.
• Marketing promotion expenses – $3,500, and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
• The cost for hiring a business consultant – $2,500.
• Insurance (general liability, workers’ compensation, and property-casualty) coverage at a total premium – $2,400.
• The cost for securing a facility and reconstruction of the facility – $1.2 million
• Other start-up expenses including phone and utility deposits ($2,500).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $30,000
• The cost for storage equipment (keys, locks, boxes, crates, pallets, and safes et al): $75,000
• The cost of launching a website: $600
• Miscellaneous: $5,000

c. What Factors Determine the Cost of Opening a Storage Business?

• The size of the storage service business
• The choice of location
• The required licenses and permits
• Additional service offerings (moving and mobile storage services)
• The cost of hiring and paying a business consultant and attorney
• The cost for branding, promotion, and marketing of the storage business
• The cost for the purchase of storage equipment.
• The cost for insurance policy covers
• The cost for registering the business
• Source of your supplies and ongoing expenses
• Cost of recruiting and training your staff
• The cost for the purchase and customizing of uniforms

d. Do You Need to Build a Facility? If YES, How Much Will It Cost?

It is not compulsory to build a new facility for your storage business, but if you have the required finance, it will pay you to build your storage facility from the scratch. The truth is that building or reconstructing a storage facility will help you come up with an edifice that will conform to what is expected of a standard self-storage in your city.

e. What are the Ongoing Expenses of a Storage Business?

• Supplies such as keys and locks, crates and pallets et al
• Fueling and maintenance of equipment and utility truck
• Utility bills – (phone bills, signage, and software renewal fees et al)
• Salaries of employees

f. What is the Average Salary of your Staff?

• Chief Executive Officer (Owner) – $65,000 Per Year
• Facility Manager – $42,000 Per Year
• Sales and Marketing Executive – $28,000 Per Year
• Accountant – $32,000 Per Year
• Facility Assistants – $26,100 Per Year
• Front Desk Officer -$25,000 Per Year
• Security Guards – $24,000 Per Year

g. How Do You Get Funding to Start a Storage Business?

• Raise money from personal savings and sale of personal stocks and properties
• Raise money from investors and business partners
• Sell shares to interested investors
• Apply for a loan from your bank/banks
• Source for soft loans from your family members and your friends.

Write a Business Plan

A. executive summary.

Safe Lock® Self – Storage and Warehouse, LLC is a licensed and secured self–storage facility that will be located in a growing community in Asheville – North Carolina. Our basic aim of setting up the business is to make available self–storage space for our clients who are resided in Asheville and neighboring cities.

We have been able to secure a standard facility in a central location in Asheville. Our self–storage facility has a Five-by-5-foot storage space, Five-by-10-foot storage spaces, 10-by-10-foot storage spaces, 10-by-15-foot storage spaces, 10-by-20-foot storage spaces, 10-by-25-foot storage spaces, and 10-by-30-foot storage spaces available for rental or short–term leasing.

b. Products and Service

• Leasing or rental of self-storage units
• Rental of coin-operated lockers
• U-lock storage
• Other facility operation

c. Mission Statement

Our mission for establishing Safe Lock® Self – Storage and Warehouse, LLC is to build a standard facility that can favorably compete in the industry in the United States of America.

Vision Statement

Our Vision of starting Safe Lock® Self – Storage and Warehouse, LLC is to build a brand that will become one of the top choices of residents and businesses in the whole of Ashville – North Carolina. Our vision reflects our values: integrity, service, excellence, and teamwork.

d. Goals and Objectives

The goals and objectives of the storage service business are to provide a space on a short-term basis (often month-to-month, though options for longer-term leases are available) to individuals or businesses who want to store their household goods or goods meant for sale et al).

e. Organizational Structure

• Chief Executive Officer (Owner)
• Facility Manager
• Sales and Marketing Executive
• Facility Assistants
• Front Desk Officer
• Security Guards

Marketing Plan

A. swot analysis.

One of the obvious strength that will stand as a plus for Safe Lock® Self – Storage and Warehouse, LLC is the fact that our facility is centrally located in a densely populated residential area in Asheville – North Carolina; our location and high level of security is our major strength.

We equally have a team that can give our clients value for their money; a team that is trained and equipped to pay attention to details and to deliver excellent services. Lastly, our rental package is one of the best that anybody living in Asheville – North Carolina can get; it is cheap and affordable.

We critically looked into our business model and we were able to identify two major weaknesses. One is the fact that we are a new business and the second is the fact that we may not have the financial resources required to match up with existing and well-established self–storage companies when it comes to acquiring large facilities in choice areas.

Opportunities:

We are centrally located in one of the busiest and densely populated areas in Ashville – North Carolina and we are open to all the opportunities that the city has to offer. We will be open 24 hours a day during weekends (Fridays to Sundays) and from 6:00 am to 12 midnight from Mondays to Thursdays giving us the advantage to leverage any available opportunity.

Some of the threats that are likely going to confront Safe Lock® Self – Storage and Warehouse, LLC are unfavorable government policies, demographic/social factors, the downturn in the economy which is likely going to affect consumer spending, and lastly, the emergence of new competitors within the same location where our self-storage and warehouse facility is located.

b. How Do Storage Service Business Make Money?

Storage service businesses make money by providing space for businesses, organizations, and individuals to rent and store their personal or business belongings.

Payment Options

• Payment via bank transfer
• Payment via credit cards
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

c. Sales & Advertising Strategies

• Open your self–storage and warehouse facility with a big party.
• Advertise your self–storage and warehouse facility on community-based newspapers, local TV, and radio stations
• Promote your self–storage and warehouse facility online via your official website and all available social media platforms
• Introduce your self–storage and warehouse facility by sending introductory letters alongside your brochure to businesses, sports clubs, schools, corporate organizations, households, and key stakeholders in your city
• Print out fliers and business cards and strategically drop them in offices, libraries, public facilities, and train stations et al.
• Make use of attractive handbills to create awareness and also to give direction to your self–storage and warehouse facility
• Adopt a direct mailing coupon marketing approach
• Position your signage/Flexi banners at strategic places in and around your city
• Create a loyalty plan that will enable us to reward loyal clients especially those that refer their family members and friends to us

Financial Projection

A. how much should you charge for your product/service.

We will charge based on storage unit sizes and average monthly cost and they are as follow;

• Small (5×5–5×10 ft.) – $90 (per month)
• Medium (5×15–10×15 ft.) – $160 (per month)
• Large (10×20–10×30 ft.) – $290 (per month)

b. How Much Profit Do Storage Business Owners Make a Year?

It depends, but typically, a self-storage facility still makes a profit at 60 percent to 70 percent of full occupancy. Currently, the industry average occupancy stands near 90 percent, according to Statista. Many self-storage owners run family operations. However, those not interested in hands-on management simply hire a qualified manager.

c. What Factors Determine the Amount of Profit to Be Made?

• The capacity of the storage service business
• The location the storage service business is covering
• The management style of the storage service business
• The business approach of the storage service business
• The advertising and marketing strategies adopted by the storage service business.
• The number of years the storage service is in business

d. What is the Profit Margin of a Storage Business?

The profit margin of a storage service business is not fixed; to a large extent, it will depend on some factors that are unique to your location. But on average self-storage units earn up to 11 percent return on investment per year.

e. What is the Sales Forecast?

Below is the sales forecast for a Storage service business based on the location of the business and other factors as it relates to such startups in the United States;

• First Fiscal Year (FY1): $360,000
• Second Fiscal Year (FY2): $480,000
• Third Fiscal Year (FY3): $650,000

Set Up your Office

A. how do you choose a perfect location for a storage business.

• The demography of the location
• The demand for the services offered by storage service businesses in the location
• The purchasing power of businesses and residents of the location
• Accessibility of the location
• The number of storage service facilities in the location
• The local laws and regulations in the community/state
• Traffic, parking and security et al

b. What State and City are Best to Open a Storage Business?

• Little Rock, Arkansas
• Los Angeles, California
• Chicago, Illinois
• New York City, New York
• Las Vegas, Nevada
• Phoenix, Arizona
• Baltimore, Maryland
• Portland, Oregon
• Richmond, Virginia
• Green Bay, Wisconsin
• Dallas, Texas

c. What Equipment is Needed to Operate a Storage Business?

You should be prepared to purchase different types of locks and keys, crates, boxes and pallets et al and also forklifts. You will also need computers and laptops, internet facility, a telephone, a fax machine, and office furniture (chairs, tables, and shelves), and all these can be gotten fairly used.

Hire Employees

When it comes to hiring employees for a standard storage service business, you should make plans to hire a competent chief executive officer (owner), facility manager, sales and marketing executive, accountant, facility assistants, front desk officer, and security guards.

Launch the Business Proper

It is the norm for new businesses to organize a grand opening party to officially launch their business. You can choose to do a soft opening if you are operating on a low budget or you can go for a grand opening party.

The bottom line is that with a proper launching of the storage service business, you will be able to officially inform people in your city that your storage service is open for business.

a. What Makes a Storage Business Successful?

• Having an innovative business idea
• Following a clear vision
• Creating a solid business plan
• Developing missing skills
• Finding the right talent and network
• Being financially prepared
• Building a strong company culture
• Maintaining excellent customer service and outreach
• Analyzing your competitors
• Being open to change
• Security consciousness
• Accepting and learning from feedback

b. What Happens During a Typical Day at a Storage Business?

• The business is open for the day’s work
• The to-do list is reviewed
• Employees go straight to their job description (customers are attended to and in some cases, their goods are stored and they are charged appropriately or they come to collect their goods or belongings that are stored in the facility)
• On some occasions, goods stored are delivered as requested.
• The business is closed for the day.

c. What Skills and Experience Do You Need to Build a Storage Business?

• Good managerial and human development skills
• Facility information and technology management.
• Excellent communication and negotiation skills.
• Organizational skills.
• A strong understanding of the self-storage industry
• Attention to detail and the ability to inspect goods
• The ability to analyze quality or performance.
• Good supervisory skills
• Familiarity with all aspects of self-storage trends
• Experience in working as a facility or warehouse manager
• Experience in managing people
• Experience in business administration

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Follow our news, recent searches, exclusive-intel ceo to pitch board on plans to shed assets, cut costs, source says, advertisement.

Intel CEO Pat Gelsinger and key executives are expected to present a plan later this month to the company’s board of directors to slice off unnecessary businesses and revamp capital spending, according to a source familiar with the matter, as they try to revive the once-dominant chipmaker's fortunes.

The plan will include ideas on how to shave overall costs by selling businesses, including its programmable chip unit Altera, that Intel can no longer afford to fund from the company’s once-sizeable profit.

Gelsinger and other high-ranking executives at Intel are expected to present the plan at a mid-September board meeting, the same source said.

Details of Gelsinger's proposal is reported here for the first time.

Intel declined to comment.

The proposal does not yet include plans to split Intel and sell off its contract manufacturing operation, or foundry, to a buyer such as Taiwan Semiconductor Manufacturing Co., according to the source and another person familiar with the matter.

The presentation, including the plans around its manufacturing operations, are not yet finalized and could change ahead of the meeting.

Intel has already broken off its foundry business from its design business, and has been reporting its financial results separately since the first calendar quarter of this year.

The company has erected a wall between the design and manufacturing businesses to assure that potential customers of the design division would have no access to technology secrets of customers using Intel’s factories, known as fabs, to manufacture their chips.

Intel is suffering through one of its worst periods as it attempts to play catchup in the AI era against the likes of Nvidia, the dominant AI chipmaker with a $3 trillion market capitalization. In contrast, Intel's has now sunk to below $100 billion after a disastrous second-quarter earnings report in August.

The proposal Gelsinger and others will present is likely to include plans to further reduce the company’s capital spending on factory expansion. The pitch may include plans to pause or altogether halt its $32 billion factory in Germany, a project that has reportedly been delayed, the source said.

In August, Intel said it expects to cut capital spending to $21.5 billion in 2025, down 17 per cent from this year, and issued a weaker-than-expected third-quarter forecast. 

In addition to the CEO and executive plans, Intel has retained Morgan Stanley and Goldman Sachs to advise the board on what businesses Intel can sell and what it needs to retain, according to two sources with knowledge of the company's advisory plans. 

Intel has not yet asked for bids on the product units, but will likely do so once the board endorses a plan, according to the two sources familiar with the company's advisory plans.

ALTERA SPIN OUT

The mid-September board meeting is pivotal for the one-time chipmaking king. Intel reported a disastrous second quarter in August, which included pausing the company’s dividend payments and a 15 per cent staff cut, aimed at saving $10 billion.

Weeks later, chip industry veteran Lip-Bu Tan resigned from the board after months of debate over the company’s future, Reuters reported, creating a vacuum of deep semiconductor business experience on the board.

Last Thursday, after the Reuters report, Gelsinger sought to reassure investors about the company’s weak financial performance.

“It's been a difficult few weeks,” Gelsinger said at a Deutsche Bank conference. “And we’ve been working hard to address the issues.”

Gelsinger said the company is “taking seriously” what investors have said and that Intel is focused on phase two of the company’s turnaround plan.

Part of those plans will remain unresolved until the mid-September meeting. Then, the company’s directors will likely make crucial decisions about which businesses Intel will keep and which it will shed.

One potential unit the company may look to unload is its programmable chip business, Altera, which Intel acquired for $16.7 billion in 2015. Intel has already taken steps to spin it out as a separate but still wholly owned subsidiary and has said it planned to sell a portion of its stake in an initial public offering in the future, though it has not set a date.

But Altera could also be sold entirely to another chipmaker interested in growing its portfolio, and the company has quietly begun exploring whether a sale would be possible, according to one source familiar with its advisory plans and one of the sources familiar with the plans to cut businesses.

Infrastructure chipmaker Marvell is one potential buyer for such a transaction, according to one of the sources.

Bloomberg earlier reported various options for Intel including a potential split of Intel’s product design and manufacturing businesses that is expected to be discussed at the board meeting.

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