Self-storage is a growing sector as many people seek to store their items in portable units. Many small businesses are relying on outsourcing portable storage facilities to store their wares. Some clients are also using portable storage units for accommodation. Investing in this business is worthy as the units’ demand keeps increasing due to the units’ varied use. The following are tips for running a successful portable storage company in your locality,
Cost of Entering the Self-Storage Business
Before you consider the location to set up your business, it is crucial to consider the start-up costs implications. You may need to choose whether to start from scratch or buy an existing facility. Your start-up costs will be determined by factors such as acquisition costs, construction costs, location, and land costs.
Having determined the amount you need to invest in the business, you need to examine where to source the finances. Ask yourself whether you have enough liquid assets for a start-up or you will take a loan.
After you resolve the start-up costs issues, you should figure out the operation costs of the business.
The study will tell you whether the business is viable in the targeted area. You might want to survey on your own, but it would be advisable to hire a reputable self-storage consultant to do it.
The research should answer critical questions such as whether the clients will visit the premises and whether the self-storage business generates revenue to cover the debt, operation expenses, and profit. Being privy to market demographics is critical.
You know what size of the container is preferred in the targeted areas. The ideal size for a self-storage facility market is a three to a five-mile radius.
Writing a Business Plan
A business plan shows the projections and the expectations of the proprietor. It documents the steps you will be taking to propel your business to success. The plan will also help you mitigate any deviations that may arise.
Most financiers will want to scrutinize your business plan before giving a loan facility. Non-profit organizations such as SCORE may come in handy in this regard. Your business plan should be tailored to your unique needs. However, there is standard feature information that all business plans should capture.
Some municipalities regulate the placement of portable storage facilities. The laws are fair and may allow for short-term use of the units for remodeling and moving. You must be on the lookout for such laws before you set up shop. You do not expect to get a market where such restrictive laws are in place. Avoid such areas.
No one will know that you offer excellent service unless you aggressively advertise your business. Portable storage and traditional warehouses serve different needs, and you must identify your target market.
Formulate marketing strategies that put you ahead of your competitors. Though you are in the same business, differentiate yourself by uniquely giving the service. You might consider branding your portable storage units with your company logo, making them rolling billboards. You may also partner with local realtors with whom you share the same clients and have them distribute your coupons.
Effective marketing strategies will assure your business income streams and profitability.
The tips discussed works in tandem with all other standard business good practices. If personally running the company as a family business, you should buy a facility where you live. It will be easy to manage the business. If a third-party management company will handle the facility, then the location does not matter.