Storage facilities have boomed over the last few decades, with more and more people utilising them for all kinds of reasons. Some place their belongings there while they are decorating or going on a trip, others because they are downsizing or just want more space in the home, and yet others because they need somewhere for stock or certain equipment.
Whatever the reason, the storage market is looking good, so it can be tempting to want to get in on the action, but is it really a good idea? Here we will take a look at starting your own business to help you decide if, and how, you should go about it.
Is starting a storage business a good idea?
In the USA alone there are over 50,000 storage facilities bringing in tens of billions of dollars in revenue every year. As the world continues to change and grow, more people are downsizing, taking longer trips, and have a need for storage for their belongings.
Across Europe, Asia, and many other places storage businesses are flourishing and look like they will continue to do so for some time to come. That being said, opening your own facility is not for everyone, and involves a degree of knowledge, experience and forethought that isn’t easily gained.
You need to think about where you would like to begin your business for one thing, as many areas are already saturated with high-quality low-cost options. In Bangkok, for instance, Keep It Storage Facility offers a solution to all your possible storage needs in a secure and excellent facility all for a great value.
You really want to find somewhere that doesn’t have too much competition, where you can offer a great service cheaply, and so that you can make a good return on your investment. This is just one aspect of the business to consider, and with hundreds more to think about, you can see why the decision to start your own should be properly thought through.
Being your own boss, providing a much-needed service, and taking a bold step forward can all be fantastic and rewarding benefits, but you also have to consider taxes, finding customers, the time commitment, and the initial expenditure to get you started.
Given the statistics you can find, starting a storage business may be a good idea, but it may not be the right idea for you. Make sure you really think about it, follow some of our steps on how to get your business going, and be quite sure that it is the right decision before you invest too much of your time and money.
Is a storage company profitable?
Storage companies can certainly be highly profitable, with the leading storage firm in the US generating over $2 billion a year in 2020 alone. Even the pandemic didn’t have much of an impression on the statistics on the industry’s profitability, with vacancies remaining at a similar rate, and the average cost actually going up slightly.
Depending on how and where you set up, how well you run your business, and if you do it right, a storage company can be incredibly profitable even with the costs of overheads and the relatively cheap price of certain containers. If you provide a good service people will continue to use you, and you will make money.
If, however, you are improperly prepared, inexperienced, or choose the wrong location, you may well find yourself at a loss. It also does take time to become really profitable, to fill up your space and gain a reputation, so if you are looking to get rich quick, this isn’t the route for you.
Take a look at some of the steps involved in how to start your own storage facility business and consider if you want to invest the time and money here, or if another industry might be a better fit for you.
How do I start a storage facility?
Some of the steps involved in setting up a storage facility are similar to those of creating any business. You need to think about where to start it, how much money you will need, and follow the letter of the law. Here are a few of the key steps to starting your own facility:
- Research the industry – you will want to know everything you can about storage. The different types, the costs involved, your competition, all of this is critical to your business.
- Make a business plan – you can’t do anything if you don’t know what you want to achieve, and how you will get there. Think about how you will appeal to customers, how long it might take to become profitable, and all of the other little details that you can think of to get prepared.
- Secure funding – when you know the costs involved, you have to be sure that you can meet them, and maybe any potential surprises as well, before you get started.
- Pick a name and brand – ideally, you want a name that is memorable, catchy, and not in use at least anywhere near you. Write a list of ten names, leave them, come back and narrow it down until you find the right pick that suits your business.
- Make sure everything is set up legally – you may need at this point to consult a lawyer or accountant to make sure all your paperwork is in order, you know your tax liability, have insurance and anything else you might need.
- Buy or build your premises – for a storage business, you will understandably need an actual building. Again remember that location is key, both where it is and how close to other facilities, to the population centre, and so on.
These are just some of the steps that you will need to take before you can start operating your own storage facility, so make sure you carry out exhaustive research and make a proper plan before you begin.
The storage industry can certainly be a profitable one, but that doesn’t mean that you should run blindly into a new business unless you are fully prepared. With so many excellent existing companies, you will have to really provide a flawless service and have plenty of experience if you hope to compete.