self storage unit business plan

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.

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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.

Self Storage Business Plan FAQs

What is the easiest way to complete my self storage business plan.

Growthink's Ultimate Business Plan Template  allows you to quickly and easily complete your Self Storage Business Plan.

What is the Goal of a Business Plan's Executive Summary?

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 multiple self storage businesses.

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Other Helpful Business Plan Articles & Templates

How To Start a Self-Storage Unit Business and How Much Will it Make?

October 13, 2022

Adam Hoeksema

IBIS World gives us a general insight into the $23 billion a year self-storage and warehouse leasing industry raging in the US. Over 182,000 businesses have opened nationwide to take their share of the pot. Increasing in both 2020 and 2021, despite the pandemic, profit is expected to reach the highest share of revenue since 2002 with a growth of 2.5% every year.

How Much Profit do Storage Unit Owners Make?

The average profit for a storage unit business owner is $184,500 annually. Of course the potential profit for any specific storage unit facility will depend on the size of the facility, the market rate for rent in the area, and the operating efficiency of the business. We estimated the annual profit of $184,500 by taking the average storage unit facility size of 50,000 square feet x the average annual rental rate of $9 per square foot = $450,000 in annual revenue. Then taking a profit margin of 41% gives us a forecasted annual profit of $184,500.

We will dive into the sources for these assumptions and the ranges in revenue and profit margins in the article below, and show you how to use our templates to create your own projections.  We have three templates that I will reference throughout the article:

• Simple Self Storage Facility Template - best for smaller and existing storage facilities.
• Self Storage Developer Template - best for developers looking to raise capital for new self storage facilities.
• Self Storage Acquisition Template - best for investors that are buying, renovating and selling storage facilities.

Common Steps to Starting a Self-Storage Unit Business

Such promising revenue numbers beckon forward when it comes to making the decision to start such a business. Let’s review some of the most common steps needed for a successful and profitable business.

• Budget for the business and determine the potential size
• Determine the target market and perform market research in the area
• Finance the business and purchase or rent space and equipment
• Complete all required paperwork and form a legal entity
• Obtain required permits and insurance to operate as a business in the area
• Set up necessary accounting and banking
• Start an advertising campaign
• Complete any necessary renovations before opening the doors to the public

How Much Does It Cost to Start a Self-Storage Unit Business?

The average cost to start a self storage unit business is $2 million.

Three sources ( Storable , LovetoKnow , MakoSteel ) give us estimated startup costs of starting a new self-storage unit business. 

• Minimum startup cost for a self-storage business = $1.5 million
• Maximum startup cost for a self-storage business = $2.4 million
• Average startup costs for a self-storage business = $2.0 million

The majority of the expenses incurred during the startup process fall into the following categories:

• Land purchase
• Construction
• Permits and licenses
• Outfitting the premises

What is the Average Size of a Storage Unit Facility?

The average size of a storage unit facility in the US is 56,900 square feet according to Easy Storage Solutions .  For easy math throughout this article we will use a 50,000 square foot facility as an example. 

Self Storage Facility Layout

The layout of your storage facility is going to be determined based on the land that you have.  Details around road access, drainage, zoning, etc.  The cost of your land and location will also determine whether you are building a multi story storage facility or spreading out the units on the same level.  Obviously the construction cost per unit will be more expensive if you build a multi-story facility, but if the land is expensive or you are landlocked your only option may be to build up.  Ultimately the goal of your layout will be to maximize your rentable square feet of storage space.  

Once you have solidified your facility layout that will maximize your rentable square feet, next you need to determine what your self storage unit mix should be. 

How Many Storage Units Per Acre?

On average you can fit between 130 and 215 storage units per acre assuming a 10 ft x 10 ft “standard” unit.  

We were able to calculate this based on the following assumptions:

• There are 43,560 square feet in 1 acre
• Most storage unit facilities will cover between 30 and 50% of the parcel with units according to SelfStorageNinjas .
• This means there would be between 13,000 square feet and 21,750 square feet available per acre.  
• Since the “standard” storage unit is 100 square feet, we estimate that you can fit between 130 and 215 storage units per acre.    

Of course if your average storage unit is larger than 100 square feet you will be able to fit fewer units per acre.  

Average Number of Units per Storage Unit Facility

According to a survey of 10,000 storage unit facilities the average number of storage units per facility was 546.

Self Storage Unit Mix

There is not a one size fits all unit mix when it comes to self storage facilities.  Although you might be able to charge a higher rate per square foot if you had all very small units, the reality is that your customers will need a more diverse mix of storage units.  If your target market is in the city, and your customers are typically in small apartments, then you might need more small storage units.  If you are located in a suburban area where the average home is 4,000 square feet, you are likely going to have more customers that need a larger unit.  

Average Unit Mix for Self Storage

According to Inside Self Storage the average unit mix for self storage is as follows:

Cost to Construct a Storage Unit Facility

The average cost to construct a storage unit facility can range from $1.25 million to $3.5 million.  We estimate this range based on an average size 50,000 square foot facility and a construction cost of $25 to $70 per square foot based on information provided by Storable . This does not include the cost of the land or other operational startup costs.  

Self Storage Construction Budget

Our self storage developer template will allow you to build a construction budget for your self storage facility as seen below:

Acquiring a Storage Unit Business

Rather than spending $1.25 to $3.5 million to build a new storage unit facility, you might want to consider acquiring an existing storage facility .  Although an existing facility would be older and might require some additional repairs and maintenance, if the facility is already fully operational and leased up with tenants, you will be able generate positive cash flow faster.  It can take 2 to 4 years to reach a stabilized occupancy rate for a new 50,000 square foot storage unit facility, so acquiring an existing facility with tenants can really speed things along.

You can find hundreds of self storage facilities for sale on LoopNet .  

Acquiring vs. Constructing a Self Storage Facility

One of the great things about our self storage financial models is that they will allow you to easily compare the differences between acquiring an existing facility versus constructing a new storage facility.  You can enter assumptions about the purchase price or construction price into the model, details about financing, and the number of units available to rent.  

Bonus Video Content - How to Acquire a Storage Unit Facility .

How Much Can a Self-Storage Unit Business Make in Sales?

The potential revenue for any business varies due to a number of factors. The size of the self-storage facility, whether it’s one or two floors, the market need for storage in the area, and how many units are likely to get rented at any time. 

How to Set the Price of One Unit?

The price of each unit is the key to running a successful business and making a profit. The revenue potential is held within this business element. There are two approaches to setting the right price. 

Market-Based Pricing

A quick and simple approach to setting a price is completing market research. Staying competitive in the market can make all the difference and it’s not time-consuming. Search engines provide quite a bit of information on prices in the same area. 

Target Based Pricing

This approach will require more work than the first, but it has an end goal in mind. Rather than setting the price to match those of competitors, you work to set the price of potential gross profit margin. 

The typical profit margin of a self-storage business, according to Storable , is around 41%. Target-based pricing means setting the price in such a way that you’ll meet that goal. According to QT Business Solutions , there are around $3 in operating expenses for every raw square footage of the facility.

Calculating the amount to charge per storage unit will depend on a couple of factors. For example, you’ll need the exact amount of square footage of the facility and the sizes of the units, and their number. Once you have the information, you can double any potential expenses to get to the required revenue to meet at least the 41% profit, unless you are aiming higher. 

Self Storage Rent per Square Foot

The average rent per square foot for self storage space in the US was $1.28 in 2022 according to Statista .  Although this is the average, the rate that you will be able to charge is going to differ based on your location.  Additionally, the rate per square foot for self storage units is related to the size of the units that you are renting.  You can check out SpareFoot for the most up to date rent per square foot data.  As of February 2023 you can see their estimates and the major differences in rent per square foot for small vs. large units. 

How full will the facility get?

Self-storage unit businesses run year-round which alleviates one potential worry. However, estimating revenue will depend on how many renters there will be. QT Business Solutions explains that most facilities see an occupancy rate sitting at around 90% in today’s market. 

Though most businesses in the industry will shoot for occupancy of around 80% to 90%, Storable tells us that 65% of occupancy will at least cover the operating and debt expenses of the business. 

With the current trend in downsizing homes and apartment versus home rentals, self-storage units are a popular choice among millennials. 2020 showed an occupancy average of 91.7% , and those numbers have been holding steady, if not growing. 

Of course, those who own a self-storage unit business should not shoot for anything higher than around 90% so that there is always storage to rent. You do not want to find yourself shooting for 100% occupancy and have nothing left for new customers.

Self-storage unit business revenue potential

The revenue potential for a self-storage unit business is quickly calculated once you have all the right information on hand. 

To start with our example, let’s say we are using a facility the size of 50,000 square feet -- the average for these types of businesses. To cover the expenses required to run the business, Truic advises setting the price at around $9 per square foot, per year. 

This estimates the yearly revenue around $450,000, or $37,500 monthly. Of course, this number is for 100% occupancy, which means we need to deduct vacancies of at least 10%. This brings us to a total of $405,000 a year before any other expenses are taken into account. 

Download the Storage Unit 5 year financial projection template

Self-storage unit business annual revenue.

The average revenue for a self storage business is $450,000 per year.

Three sources ( Truic , SweatyStartUp , BizFluent ) tell us the expected revenue amount for a 50,000 square foot self-storage unit business.

• Minimum revenue for a self-storage unit business = $90,000
• Maximum revenue for a self-storage unit business = $600,000
• Average revenue for a self-storage unit business = $450,000

What Are Common Operating Expenses for A Self-Storage Unit Business?

The common operating expense categories for self storage units include:

• Real Estate Taxes
• Property Insurance
• Repairs and maintenance
• Administrative Costs
• Off-site Management
• On-site Management
• Advertising
• Miscellaneous

Average Operating Costs for Self Storage Facilities

The average operating cost as a percentage of revenue for self storage facilities is roughly 35%. 

We calculated this number based on the SEC financial statement filings for Extra Space Storage, one of the largest and most diversified storage facility owners in the US.  In 2021 and 2022 their property operational costs and their general and administrative costs amounted to roughly 35% of revenue in both years.  This does not include depreciation or amortization costs.  Because depreciation costs can vary dramatically based on accelerated depreciation, we wanted to look at true operating costs only which are more stable.  Your depreciation and amortization costs will vary depending on your specific property and financing details.   

Typical Operating Costs for Self Storage Facilities

Based on a report from CBRE that analyzed 808 self storage facilities, the average operating cost per square foot was $4.03.  This is based on 2017 data, so you can expect these costs to have increased, but we can still gain some valuable insight from this information. 

Self Storage Operating Expenses as a Percentage of Revenue

Once we have estimated our expenses, we can now estimate our net operating income.

How much profit can a self-storage business generate?

Profit from a self-storage unit business will vary drastically. Depending on the area, the size, and the market need, this business has the potential for a high return on investment. 

Self-Storage Unit Business Profit Margin

The average profit margin for a self storage business is 41%.

Three different sources ( Storable , BizFluent , RoadLessTraveledFinance ) provide us with the expected profit margin for a self-storage unit business so that you too know what goals to set.

• The minimum profit margin for a self-storage unit business = 11%
• The maximum profit margin for a self-storage unit business = 60%
• The average profit margin for a self-storage unit business = 41%

Financing a Storage Unit Business

Whether you are looking to finance an acquisition of a storage facility or finance the new construction, a self storage SBA loan can be an excellent option for you.  Because a storage unit facility can be used as collateral and since the primary use of the proceeds will be for real estate, you will likely be able to secure a longer term than average with an SBA 7a loan.  SBA 7a loans offer terms of up to 25 years for real estate loans. 

Raising Investment for a Storage Unit Business

You will only be able to borrow a percentage of the acquisition price or construction cost of your storage unit facility, so you will need to raise some investment.  That could be your own personal investment into the business, or you might look to pitch investors to join you in the business.  If you are pitching investors, you should have a good understanding of what the internal rate of return that your potential investors expect.  Once you create a set of cash flow projections for your storage facility, you can calculate the IRR - internal rate of return that you expect investors would be able to generate. This video will teach you how to calculate IRR with our projection templates. 

Self Storage Business IRR

The average IRR for a self storage facility was 16.9% between 2009 and 2018 according to Forbes . So as you are calculating your forecasted IRR you will want to make sure that the facility can get within the range of returns that investors expect.  You can use our developer template as a self storage IRR calculator .

Once you complete your storage unit projections you will be able to see how your facility compares to industry standards in our Profit and Loss at a Glance table as seen below:

If you’re exploring starting your own self-storage facility and need to create comprehensive financial projections for planning, investors, or lenders we offer a CPA-developed, easy-to-use, and affordable template built specifically for self storage businesses, please check out our self storage pro forma template .

Self Storage Business Plan Outline

If you are moving forward with starting or buying a self storage business, your SBA lender may ask you for a business plan. Here is a quick business plan outline that you can use for your self storage startup.

I. Executive Summary

• Business Overview
• Management Team
• Business Goals

II.  Company Description

• Industry Analysis
• Company Objectives

III.  Market Analysis

• Target Market
• Competitive Analysis

IV.  Products and Services

• Description of Services
• Pricing Structure

V.  Operational Plan

• Business Hours

VI.  Financial Plan

• Sales Projections
• Income Statement
• Cash Flow Projection
• Break-even Analysis

VII.  Conclusion

You can get the self storage financial projection template.

The template is simple to use and will save you loads of time while still producing professional looking storage unit business projections. ProjectionHub has helped more than 50,000 businesses create financial projections so you can be confident that you can do it too.

The self storage projection template includes:

5 Year Self Storage Pro Forma Financial Statements

CPA Developed & Completely Customizable

Free Support & Projections Review

Compatible with Google Sheets

Free expert review of your completed projections

The template is easy to use and you do not need to be an excel wizard to fill it out. Editable cells are highlighted in blue, a video guide is included, and our team is available to answer any questions you have.

You can see the complete walkthrough and demonstration of the storage unit business forecast template here:

Get the template today for just $99

If you have any questions before purchasing, please feel free to begin a live chat or email us at [email protected]

100% money back guarantee in accordance with our terms and conditions

Top Right Photo by Ketut Subiyanto from Pexels

About the Author

Adam is the Co-founder of ProjectionHub which helps entrepreneurs create financial projections for potential investors, lenders and internal business planning. Since 2012, over 50,000 entrepreneurs from around the world have used ProjectionHub to help create financial projections.

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How to Start a Self Storage Business

A self-storage business makes it easy for people to store their personal belongings without the hassle and clutter of keeping things at home. These businesses also cater to other businesses who need storage space for equipment like office supplies, furniture, and more.

The lack of space in homes and offices, and the desire to be able to store and forget about items, are the driving forces behind self-storage businesses.

Learn how to start your own Self Storage Business and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Start a self storage business by following these 10 steps:

• Plan your Self Storage Business
• Form your Self Storage Business into a Legal Entity
• Register your Self Storage Business for Taxes
• Open a Business Bank Account & Credit Card
• Set up Accounting for your Self Storage Business
• Get the Necessary Permits & Licenses for your Self Storage Business
• Get Self Storage Business Insurance
• Define your Self Storage Business Brand
• Create your Self Storage Business Website
• Set up your Business Phone System

We have put together this simple guide to starting your self storage business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

• What are the startup and ongoing costs?
• Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Self Storage Business Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability .

It's very important to secure your domain name before someone else does.

Want some help naming your self storage business?

Business name generator, what are the costs involved in opening a self storage business.

MakoSteel says to allocate 25% to 30% of the total development project budget to buy the land. If land costs $1.25 per square foot and there is the ability to build out the coverage to 40% of the job site, then the land cost for the building would be about $3.13 for each rentable square foot.

A single story facility costs $25 to $45 per square foot to build. A multi-story building is $42 to $70 per square foot for construction. For a businessperson wanting to start up a new self-storage facility, they would have to have the financial clout (or investor support) to be able to finance the land purchase and the construction costs. Typical projects require financing of $2 to $3 million with 10 to 20% down payment.

Inside Self Storage gives an example of a development budget:

Statement of Development Cost Annual

What are the ongoing expenses for a self storage business?

The monthly expenses include loan debt service, staff expenses, maintenance, marketing expenses, utilities, security expenses, and insurance.

Inside Self Storage gives an example of the financials for a business able to rent 50,000 square feet for $9 per square foot per year. This is about half the current national average because the example is based on the year 2000. Even so, a modest operation such as this one is still nicely profitable.

Financial Model

Who is the target market?

The best customers are the ones that have a longer-term need for storage, such as a military member who is on active duty outside of the United States, and who are able to pay for the monthly rental by using some method of automatic payment, such as a monthly credit card payment or an electronic fund transfer (EFT) from a bank account.

The most popular storage size is a 10’ by 10’ by 10’ space with the best customers renting one for up to two years or more.

How does a self storage business make money?

The income streams include monthly rental collections, auction proceeds from past due accounts, fees, and sales of related products such as moving supplies and locks.

These businesses make extra money from administrative fees, lost key fees, lock removal services, late fees, and other fees, in addition to the normal rental fee structure. Some charge a premium rate for the rental of storage spaces in a climate-controlled building. Others offer insurance, for an additional monthly premium, to insure the contents of the items placed in a storage space.

Easy Storage reports the average monthly rate per square foot (PSF) of non-climate controlled storage units in America is $1.26 PSF and for climate-controlled space the average monthly rate is $1.60 PSF. The overall average is $1.42 PSF. The most popular size is a 10’ by 10’ unit. This means the average rental income for each of these units would be $126.00 to $160.00 per month, depending on whether the building was climate-controlled.

During 2015, there was a national average of 90%+ occupancy for all storage units. Some that are located in more popular areas have waiting lists and therefore may charge rates that are higher than these national averages.

An average moving truck rental customer, pays around $200 to $500 for the rental truck and equipment needed to make the move, if the move is a local one. They may pay up to three or four times this amount if the move is long distance, depending on the distance driven.

How much profit can a self storage business make?

The Parham Group says that an average storage facility will be 60,000 to 80,000 of rentable square feet and break-even once occupancy reaches about 40 to 60%. A successful facility will operate with 83% to 93% occupancy and produce net income of about 26% of rental income after paying for expenses and loan debt service.

At the average rent of $1.42 PSF per month ($17.04 per year), this example would produce $1,022,400 to $1,363,200 in annual rental income and $265,824 to $354,432 in before tax cash flow per year.

How can you make your business more profitable?

Adding moving truck rental services, moving equipment, and supplies to the business will increase income by about 5% according to the Parham Group.

Many self-storage facilities extend their business operations to include managing a fleet of rental trucks, vans, and moving trailers, such as those offered by national franchises like U-Haul or Budget . These businesses can operate side-by-side or as one combined enterprise. Besides offering moving vehicles, the moving equipment offered for rent includes furniture dollies, furniture pads, and hand trucks. The rental office may also sell moving materials such as packing tape, packing supplies, and moving boxes.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your self storage business is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a self-storage business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

Services Contract (e.g. MSA)

Self-storage businesses should require clients to sign a services agreement before leasing a space to a new customer. This agreement should clarify client expectations and minimize risk of legal disputes by setting out payment terms and conditions, service level expectations, and length of the rental. Here is an example of one such services agreement.

Liability Waiver

Labor safety requirements.

It is important to comply with all Occupational Safety and Health Administration requirements.

Certificate of Occupancy

A self-storage business is generally run out of a warehouse. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO) . A CO confirms that all building codes, zoning laws and government regulations have been met.

If you plan to lease a location:

• It is generally the landlord’s responsibility to obtain a CO.
• Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a self-storage business.
• After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.

If you plan to purchase or build a location:

• You will be responsible for obtaining a valid CO from a local government authority.
• Review all building codes and zoning requirements for your business’ location to ensure your self-storage business will be in compliance and able to obtain a CO.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your Self Storage Business needs and how much it will cost you by reading our guide Business Insurance for Self Storage Business.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a self storage business

The location of a self-storage facility is a critical factor. It is best if it is located near a highly populated area that has many renters. Large billboards are effective advertising on the nearby freeways. Bus stop ads are also effective. Having the facility painted with signage to be a prominent advertisement can be very helpful. Easy access to major freeways is very desirable.

National companies that offer franchise opportunities have cooperative media advertising campaigns that coordinate efforts on the Internet with websites using standardized branding and style. They make use of radio promotion, physical ads, and television ads to create more brand awareness and advertise the locations in the local area.

How to keep customers coming back

In order to compete with larger national companies, smaller self-storage companies may consider offering more competitive rates and cater to a previously underserved area. Hand delivery of discount flyers to apartment buildings and neighborhoods that contain potential renters helps attract customers. Active digital marketing is important using the best search engine optimization techniques available.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

People who succeed in this business enjoy working with people and are excellent when it comes to tenant relations. It helps to have simple maintenance skills to fix some of the things that may need repairs. You should be able to use a ladder to change light bulbs and be able to keep the place painted nicely.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a self storage business?

Many of the storage spaces are owned and operated by a team. Marketing of available spaces is ongoing. Interested new tenants are shown the facilities. Applications need to be taken and processed with background and credit checks. Security deposits, key deposits, and the collection of rental payments, all need to be handled properly. Monthly accounting records need to be up-to-date and accurate.

The facility needs to be kept clean and constantly supervised to prevent vandalism and theft. Rent for any storage space that is past due needs to be collected, and if there is a serious problem with the rental payments, the proper legal processes need to be taken to manage the problem. This may include turning the account over to collections, filing court papers, giving eviction notices, and/or selling the items left abandoned in storage spaces after the correct amount of time has passed according to the local laws and the rental contract agreement.

Statistics Brain says that the contents of about 155,000 storage spaces are auctioned each year, for the average price of $425, because of past due rental payments.

What are some skills and experiences that will help you build a successful self storage business?

As this type of business bears many similarities to the real estate business, previous experience in the real estate field may be a helpful skill when starting this type of business. Renting and maintaining storage spaces is similar to renting apartments.

What is the growth potential for a self storage business?

This industry sector has everything from locally run single storage facilities, to huge major national operations with thousands of locations. There are over 54,000 storage locations in America with over $30 billion in annual revenues. The SpareFoot Storage Beat reported on the largest public storage companies, their market valuation, and revenues for 2015. They are:

• Public Storage: Market Valuation $2.38 billion
• Extra Space Storage: Market Valuation $782.27 million
• CubeSmart: Market Valuation $444.5 million
• Sovran Self Storage (Uncle Bob’s): Market Valuation $366.6 million
• U-Haul: Market Valuation $211.1 million (self-storage revenue only)

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting a self storage business?

If you plan to open a new facility, be prepared to finance a negative cash flow for about 18 month to two years before the facility has an occupancy rate that is high enough to create long-term sustainable profitability. The key in the early years is to focus efforts on getting the facility rented and work hard to reach higher occupancy rates.

Once a self-storage business has stabilized with plenty of renters, it has a tendency to create a long-term profitable revenue stream and become much easier to manage after the first two years.

How and when to build a team

There needs to be enough staff to cover the hours of operations for the administrative office. This depends on the size of the facility. Smaller facilities, usually have just two people running the administrative office. If there is a larger volume of new customer flow, then additional staff may be necessary during certain times to respond to the customer needs. You want to make sure the customers do not have to stand in line for extended periods.

Most storage facilities are highly automated and require very few staff. Statistics Brain notes that during 2015, there were 58,000 storage facilities in the United States, with an average of 566 units each. They employed around 172,000 people in total. This means there was only an average of three people per location across America.

A storage facility may also offer extended hours of operation for tenants who wish to move things in and out of their storage space. Some facilities allow 24-hour access by issuing security codes for the drive-in gates. During the extended hours, the administrative office may be closed so that the only requirement for staff is to cover facility security, which can be done remotely by video surveillance.

Useful Links

Industry opportunities.

• Self Storage Association
• Franchise opportunity with U-Haul, a popular storage/moving company

Real World Examples

• Public Storage - the number one self-storage company in America
• UHaul - a large self-storage company
• Business profile with president of Affordable Storage

Further Reading

• How-to guide detailing the process of starting a self-storage business
• Resource detailing the costs associated with opening a self-storage facility
• Resource for further information about opening a self-storage facility
• Book: Creating Wealth Through Self-Storage

Have a Question? Leave a Comment!

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

• Beginners Guide , Self Storage

Your Complete Guide to Owning a Self-Storage Business

Written by simplystoring team.

Are you ready to embark on an exciting journey into the world of self-storage? Before you dive in, equip yourself with the essential knowledge and strategies to make your venture a resounding success.

From understanding the intricacies of the industry to navigating the legal and financial aspects, our complete guide has you covered. Discover the secrets to setting up and managing a thriving self-storage business, and unlock the potential for growth and profitability. Get ready to turn your passion for storage into a lucrative and fulfilling enterprise. Let’s dive in!

A self-storage business allows you to allow people in need of a storage unit to store their belongings. They’ll not have to struggle with too much clutter at home and in the office. A self-storage business helps clients with the storage of furniture, office, equipment, and more. Owning a business that will help people store their items and declutter their homes and offices can be profitable because many people need such services.

If the idea of starting a self-storage business sounds good, then it’s time for you to make the first step. Here is everything you need to know about starting a self-storage business.

Start With a Market Research

Before you open the doors to your self-storage facility , you first need to conduct some market research. A good grasp of how the market looks like will help gain traction into the business right from the start. Doing some market research will help you understand whether this business is worth the effort, time, and money.

Of course, you understand that people already need the storage facility, but what’s in it for you? You must understand the profit margin of this business and the competition around it. You need to understand how the local market looks like for you.

Start by having a look at your competitors. Remember, there are other people who’ve been there before you, and other businesses are yet to enter the market. Find out the competitors’ prices, their customers, and their marketing strategies. Find out if the competitors are already meeting the market demand and if there’s anything left for you. You don’t want to invest in an already saturated market.

In your research, you should also consider factors such as the weather in your area. Consider whether you need storage for an RV or boat. Consider how valuable a climate-control unit can be valuable in your business location. Think about the unit sizes and the layout of your business. And finally, consult with security advisors for suitable technology and security layout for your facility.

What’s Your Target Market

Your market research must also put into consideration the target market. You need to define your market. Consider targeting customers who’re likely to need your storage facility for a long time basis. People like the military members can pay for storage on a monthly basis when they’re out on duty.

Consider families that are in the middle of a move and need some space for temporary storage. Think about those families that don’t have enough space at home and will rather store their extra items than sell them out. Other customers may be business facilities that are moving or undergoing renovations. They could also be expanding or need extra space for seasonal storage.

Consider the Location

During your marketing process, you should also find out a good location for your business. You don’t want to locate your storage facility where the market is already saturated. A good business should be able to fulfill the demands on the market. It won’t work for you if you place it where there’s no demand. You’re going to have a hard time finding customers in a place where the demand is already met.

Choose a location with good potential for business. You should ensure there are no established competitors already in the area. You need to build your clientele without having to struggle to steal some from your competitors.

Choose an area that’s already populated. Cities with mixed housing solutions can work well. It will even work better if you find areas where people are likely to downsize. You can also choose areas where people live in temporary apartments and are likely to look for storage needs from time to time. Make sure you’ll get the locals who need your services because they’re better customers to start with.

Don’t forget to consider security in the area where you choose to locate your business. As far as you want to make money by attracting many customers, make sure their precious belongings are safe. So, when it comes to your business location, you need to think about traffic, the zone for business development, accessibility, and security. You’ll also need to consider whether you’re going to build the storage unit, buy, or rent.

Plan Your Business

To succeed in your business endeavor, you need to have a clear business plan. Your business plan should contain all the key information for your storage business. The plan should include your findings on the market research, your services, and your management structure. The plan should contain how you plan to run the business for the first few years, including your goals and objectives for these years.

Have a clear plan of what you need to achieve. Do you want to run your business on a part-time basis, or do you want to build a large business that will need much time and money? Based on your answer, you can come up with your estimated startup cost as well as your development plan.

A clear and good business plan will help you source support and financial aid. Many lenders will want to see a business plan before extending their loans. You can even attract good investors to help boost your business plan. Take your time to plan and develop an incredible plan if you want to show a good impression.

Here are the sections you must include in your business plan :

• An executive summary with all the details of your goal and development plan
• A summary of the location, entity, and nature of your business
• A summary of the services you plan to deliver
• A detailed analysis of the market
• Marketing strategies
• Management structure and approach
• A financial plan with all the costs and projections of the first years

Come Up With a Marketing Strategy

How are you going to market your business and get the customers? When you open your business doors, customers are not going to come to you out of nowhere. You’re the one who has to get to them first and introduce your services. That’s where a good marketing strategy and plan comes in.

Marketing your business and finally getting the first customer is not an easy thing. One thing you must know that one method will not work for you. You need to be flexible and adaptive to any approach that can work for your business.

A good marketing plan should contain how you plan to penetrate the market, communicate, and grow your business. You also need to come up with a website for your business. This will increase your credibility and help you command trust. You can also consider digital marketing services once your business starts to grow and bring in some capital.

Don’t forget about traditional marketing methods such as the use of fliers, cards, and posters. Embrace any kind of advertisement that can help put your business get out there and boost it.

Legalizing the Business

The next step is to get your business to stand and open its doors for customers. But that won’t take place without a permit, license, and registration. After getting everything in order, the next step will be to register the business, acquire permits, and get licensing. Visit the website of your state secretary to do all these.

Ensure proper registration and compliance with the tax laws to avoid getting into problems with the authorities. Research the State License and Federal License before you launch your business.  Contact the US Small Business Administration to find out everything you need on licensing and navigating the red tape of your storage facility business.

You should also consider getting an experienced attorney to help you decide on a suitable business entity. You’ll also get a tax identification number so you can comply with the tax laws of your state. Your attorney can also offer you advice on the best grants and financial aids suitable for your small business. You can then open a business bank account and start applying for necessary financial aid.

Consider the Costs of Opening a Self-Storage Business

There is no general cost of opening a self-self-storage facility, although you don’t expect to spend much at the startup stage. The cost depends on whether you’re going to build, buy, or rent . If you’re going to build a new facility, you’ll have to account for the land, the building materials, and the builders. The cost of buying or renting will depend on the location and size of the facility.

You also need to consider the size of the facility in your budget. A small facility that will only run part-time will cost less than a larger one that requires more time. You also need to compute ongoing expenses. These include maintenance, staff salaries, equipment like temperature control, loan debt, marketing expenses, insurance , security, and utilities. If you’re going to operate online, then you need to budget for the costs of hosting a website.

Remember, the business might not be able to pay for itself during the first few days. The costs you’re going to spend to get your storage facility off the ground are called sunk-up costs. You must have a plan of where you’re going to get the money to finance all the expenses before the business catches up.

Check the Financing Options for a Self-Storage Facility

When the costs of starting your self-storage business are too high for you to finance, you don’t have to worry because there are various financing options for you. Consider various options that can help get your business to its feet. One of the options includes the small business association (SBA) that offers loans to self-storage investors. SBAs can be highly competitive, but it’s worth giving a short.

Another great alternative is conventional financing. You’ll need at least 20% down to apply for these loans. This will not include working capital or improvements. Another option that gives you more chances is owner financing. This is where the owner offers to finance for the buyer. Others that are not so popular include crowdfunding, private funding, and bridge loans.

Develop an Online Presence

The internet is taking over all kinds of businesses. A self-storage facility that doesn’t have an online presence is none existent. You need a strong online presence to reach your customers and build credibility. Make sure you have an informative website that’s easy to navigate. A user-friendly website will ensure you convert any customer that visits your site.

People will always go online to look for a self-storage facility near them. If your storage facility has an online presence, its name will appear in the search. Adopt various online strategies to make your storage facility visible to online customers.

Take care of the reviews on your site, as many people will go through the online reviews before hiring you. Any negative review on your site spells doom in your search for customers.

You can also consider creating various social media pages for your site where you can interact with your customers and answer their queries. Establish a strong online presence on social media platforms such as Facebook, Instagram, and LinkedIn. Most of your customers are always on these platforms, and you need to follow them there. A social media platform is a great way to show the human side of your business as you engage and answer the queries of your customers.

Map Out the Challenges and Threats to Your Business

No business ever operates smoothly, whether it’s a startup or an established one. You’re likely to face several threats and challenges that might even push you out of business. Map out the potential obstacles that are likely to get in your way and work out how you’re going to tackle them.

Some challenges may start when you need to register your business and establish a legal entity. You might face some strict rules and requirements that seem impossible to achieve. You’ll need higher professionals such as lawyers to help you register your business and acquire a permit.

Other threats include theft and unforeseen disasters such as water damage. You’ll need to ensure your business right from the day you open its doors. Customers always have confidence working with insured businesses as they’ll get compensated in cases of damages or theft. Without a good insurance policy, you might lose your business in case of a disaster as you might not be able to compensate your customers.

Invest in a Climate-Controlled Unit and Other Tools

One of the essential equipment you need to have in your facility is a climate control unit. Theirs is a tremendous demand for storage facilities with a climate control unit, especially among clients who will store their items for an extended period. If you don’t invest in this unit at your startup levels, you’re still going to consider it in the future.

A climate control unit will give you more competitiveness in the market. Just the impression that your facility has premium equipment is enough to attract the attention of your customers. Some of your customers will store highly prized possessions that you can’t expose to heat, cold, and humidity.

A climate control unit will ensure the storage room remains 55 and 88 degrees even with constant weather changes. This unit will cost you a lot to invest in, but it’s worth it because you’ll be able to keep your client’s possessions for a long time and not expose even a single one to humidity and high temperatures.

Here is a list of items that you’ll need to store in a temperature control unit:

• Leather and wooden furniture
• Music instruments
• Electronics
• Household appliances

Final Remarks

A self-storage unit is a good investment, but only if you take your time to think about the ins and outs of the business. Like any business, self-storage is highly competitive, and you need to come up with the best strategies to cut through the competition. Expect to put a lot of hard work into it because the road to developing a business is not smooth.

You need to cut through all the aspects of running your business, including all the paperwork, financial aspects, and marketing. You also need to come up with a solid work ethic and dedicate yourself to the community to succeed. If you do your research and find out all the ways to overcome challenges, you’ll end up a successful entrepreneur for the self-storage business.

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Self Storage Business Plan

Have you ever found yourself surrounded by a lot of stuff and wondered where to place those extra furniture or boxes of memories?

But you’re not alone; there are so many individuals who can’t get enough of all their belongings. And that’s where self-storage comes into the picture!

The self-storage facility stores people’s stuff by charging some rental fees. It offers a secure haven for your cherished items, from lockers to outdoor spaces.

Surprisingly, if you are planning to start a new self-storage or warehouse business, you will need a solid business plan for a successful business.

So, we have created this sample business plan for you to get a better idea about how a business plan should look and what details you have to include in your self-storage unit business plan.

But before diving right into a detailed business plan, let’s consider a few things you need to understand.

Things to Consider Before Writing a Self-Storage Business Plan

As per statistics, the global self-storage market is projected to reach an astonishing value of $71.37 billion by 2027, with a CAGR of 5.65% from 2021 to 2027.

The primary reason for this rapid market growth is due to the increasing need for commercial and residential storage.

The self-storage companies provide secure spaces and various storage unit types such as containers, compartments, lockers, and outdoor spaces. So that, customers can safely store and retrieve their belongings anytime.

In fact, the self-storage industry has been the fastest-growing sector in commercial real estate since it started in the 1960s.

And the cool part is that self-storage unit operators don’t need a ton of staff, utilities, or maintenance. So, it makes sure that your self-storage facilities earn substantial profits.

Now that you know a little about the industry, it’s time to discover what to include in your self-storage business plan.

What to Include in Your Self Storage Business Plan?

• Executive Summary 
• Company Overview
• Industry Analysis
• Customer Analysis
• Competitive Analysis
• Marketing Plan
• Operations Plan
• Management Team
• Financial Plan

1. Executive Summary 

An executive summary is a brief overview of your entire business plan. Although it is the first section of the plan, entrepreneurs write it at the last when the whole plan is ready.

This section highlights the most important points, from business concept and mission-vision statements to financial outlook. 

You may start this section with a compelling introduction to your self-storage business, including the business name, owners, location, and type of business you are running.

Give a brief overview of your market opportunity, service offerings, management team, and marketing strategies. Highlight financial projections if you’re seeking funding.

Most of the readers will go through the executive summary before making a judgment. So, make sure to keep it clear, concise, and engaging to grab readers’ attention.

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2. Company Overview

The company overview section is a detailed description of your business, including the business idea, name, location, future goals, history, and other business-related facts.

This section helps you provide an in-depth understanding of your business, introducing and positioning your business as an ideal solution for your target audience. So, write it in a clear and concise yet impactful way.

First, you may discuss the basic details of your storage facility and what type of storage business you are operating. It could be a warehouse, portable containers, vehicle storage, lockers, climate-controlled storage, etc.

Have a look at Maxwell’s business introduction written using Upmetrics AI Assistant :

Apart from that, your company analysis section should include the following information:

• Vision and mission statements
• Business legal structure(Sole proprietorship, partnership, LLC, or corporation)
• History and background of storage business (if any)
• Owners’ names with qualifications
• Future business goals(Short-term or long-term)
• Milestones you have accomplished(number of self-storage units occupied, number of referrals, contract renewals, etc.)

3. Industry Analysis

The industry analysis section is an overview of the specific industry and market. It supports you in a better understanding of the external business environment.

While it seems unnecessary, it helps you develop strategies that maximize business opportunities and lower potential risks.

By doing thorough research, you may learn a lot about the storage industry and the market that you will serve. And this will show your readers that you are an industry expert.

So, start this section with a quick introduction to the self-storage industry. Describe the self-storage business in terms of size(in dollars) and mention whether the market is falling or growing in the USA.

You may conduct detailed market research to examine previous trends and market growth potential. This helps you identify the top competitors in the industry and their market shares.

Don’t forget to highlight a few factors that affect the industry, including regulatory rules, market trends, and other businesses’ competitive activities .

4. Customer Analysis

The customer analysis section of your self-storage business plan provides the details of the customers you serve or intend to serve.

It helps you identify your target customers, evaluate their needs, and explain how your services cater to them.

You may consider some examples of customer segments, such as business owners, families, individuals who are relocating, and students. Try to break your target market in terms of their psychographic and demographic profiles. 

For a demographic profile, you should include details of the age, gender, location, and income level of the customers. Most self-storage facilities mainly serve customers staying in the same town or city. 

You may explain the target customers’ wants and needs for demographic profiles. If you properly understand these demands, it will help you attract and retain customers.

You may refer to the below example written from Upmetrics’ self-storage business plan:

Target Market of Maxwell – Storage and Warehouse

We are aware of the fact that for any business to thrive so well in profit, it has to first and foremost define its market. The target market for self-storage and warehouse facilities cuts across people from different walks of life.

The fact that people need a secure place to keep their properties for a short period of time makes the self-storage and warehouse rental business a thriving and growing business.

Maxwell – Storage and Warehouse, LLC will work towards providing services, facilities, and an environment that will help us reach out to our target market. These are the categories of people that we intend to market our self–storage and warehouse facility to:

• Working Class Adults / Corporate Executives
• Sports Clubs (soccer team, athletics team, and choreographers et al)
• College Students / Schools
• Community and Corporate organization
• Business People / Entrepreneurs
• Government Officials
• Religious centers (Crusade Teams)
• Merchants, Importers, and manufacturers
• Sports Men and Women
• Construction companies

5. Competitive Analysis

Competitive analysis is essential to recognize key competitors within the industry, including direct and indirect competitors.

Also, this section will help you know your storage business’s unique selling propositions along with market positioning.

You may start by identifying direct and indirect competitors & other alternative self-storage companies in the industry.

Direct competitors can be other self-storage facilities that provide the same self-storage services as yours. While indirect competitors can be other options or storage businesses with their own storage space.

After specifying such competition, you need to focus more on your direct competitors. Such self-storage facilities are the most threatening to your self-storage company.

Describe an overview of their businesses. Describe their strengths & weaknesses and try to find out key things like:

• Who(type of customers) do they serve?
• What type of self-storage services do they provide?
• What are USPs, including their quality service?
• What is their pricing strategy(medium or low)?
• What do they need to improve as per their customers?

After conducting the above analysis, understand the areas of competitive advantage. For instance, consider your superior self-storage services, unique offerings, better prices, and excellent customer service.

You may perform a SWOT analysis like below to get your storage business’s strong points.

6. Marketing Plan

Your business’s marketing plan provides a detailed outlook of sales strategies and promotional techniques you will use to reach your target audience.

It will help you streamline your marketing efforts and create impactful marketing campaigns to acquire new customers and retain existing ones.

Here are some of the sales and marketing strategies for your self-storage company:

Unique Selling Propositions(USPs)

Specify the USPs that sets your self-storage facility apart from other self-storage businesses. Emphasize a few aspects such as quality services, security features, competitive pricing, etc.

Social Media Marketing

For a successful self-storage business, social media engagement can be very helpful. Use popular social media platforms to target specific audiences. Create visually appealing ads and content to drive traffic.

Partnerships

Establish collaborations with local businesses to promote your storage facilities and generate referrals. This can benefit your self-storage company and local partners.

Website and online reservations

Having a website can establish a strong, professional brand and help you reach a wider audience. Showcase all your storage services on the website and consider the online reservation procedure.

Loyalty programs and special offers

Try to retain existing customers with the help of loyalty programs, special offers, and referral incentives. This can encourage your customers to refer new clients.

7. Operations Plan

The operations plan chapter outlines the daily processes and activities centered on achieving the business objectives mentioned in the earlier sections.

A detailed operations plan helps you and your team define responsibilities, daily tasks, and short-term goals you need to accomplish, keeping track of your long-term objectives.

So, briefly discuss operational planning, highlight how it directly impacts the quality of services, and pique the reader’s interest.

Here are a few key elements to add to this section:

Staffing & Training

Describe your staffing plan, prioritize training programs, and foster a collaborative work environment for smooth administrative processes and excellent customer service.

Facility Management

Consider including security systems to provide the highest level of security for storage units. Also, mention regular maintenance checks to keep the condition and cleanliness of the facility.

Technology and Software

Describe the technology and software you use to easily reserve, access, and manage storage units. This will enhance your customer service and contribute to effective business operations.

8. Management Team

As the name suggests, the management team section introduces the owners and key managers, along with their roles & responsibilities, qualifications, work experience, and compensation plan.

A strong management team is essential to weigh authority and helps potential investors to be confident about your storage company’s idea and vision.

You may start this section with an introduction of the storage owner and team members, including the facility manager, admin & HR manager, sales & marketing executive, accountant, customer care executive, or front desk officer.

Highlight their responsibilities, industry experience, educational background, and skills that can benefit your business. For a better understanding, you may refer to the below example:

You might include an organizational structure that depicts the reporting lines and the flow of the decision-making hierarchy. Also, discuss the compensation plan for each individual, part of your management.

If you have any advisory board members, mention them and emphasize their experience in managing self-storage companies or small businesses.

9. Financial Plan

The financial plan is the most important and demanding aspect of business planning.

When it comes to convincing potential investors and banks to invest in your business or lend money, a financial plan is one of the crucial factors.

This section of your plan describes your self-storage facility’s financial information and how it will achieve its financial goals or how much revenue potential it has.

Here are a few essential elements and financial statements you must add or provide while making a financial plan:

Income Statement

An income statement is generally called a profit and loss(P&L) statement. It defines the revenue and then deducts your self-storage operating expenses to show your gross profitability.

For this, you have to make practical assumptions that help you measure the actual profit margin of your business. Here’s an example of a projected profit and loss statement for 3 years:

Balance Sheet

A balance sheet helps you show your assets and liabilities. While it includes a lot of information, you may simplify it to highlight the most important details, like equity, goodwill, debt ratio, or other intangible assets.

Cash Flow Statement

Your cash flow statement helps you determine how much money you need to start a new self-storage business or grow an existing facility. It also makes sure that you never run out of money.

Once your business is started, you should maintain these cash flow projections even for certain months before you start making profits.

Well, in most cases, you earn profits but still face financial problems that could lead you to bankruptcy. So, you will need proper cash flow planning to avoid such possibilities.

Funding Sources for Your Self-Storage Business

You can access different funding sources to support your self-storage startup or expansion efforts. Here are some common sources to get funding from:

Bootstrapping

Many entrepreneurs use personal savings as initial capital for starting a self-storage business without attracting investments or borrowing money from banks.

Family and friends

After deciding how much money you’ll need to start a business, you may ask family & friends to invest in your self-storage business. Show a solid business plan to the interested ones and assure them that they will make a profit.

The most common source of funding is to cover startup costs and self-storage facility expenses. However, banks will ask for a professional self-storage business plan to make sure that you’ll be able to pay money back with interest.

Investors and partnerships

Bring in some external capital by seeking investors or partnering with individuals or businesses interested in your self-storage industry.

Apart from the above, you may explore other funding sources for your self-storage business:

• Crowdfunding
• Small Business Administration(SBA) loans
• Private equity & venture capital
• Grants and subsidies
• Real Estate Investment Trusts(REITs)

Download a sample self-storage business plan

Are you ready to start writing your self-storage business plan? Here you go; download our free self-storage business plan pdf to get started.

It’s a modern business plan template specifically designed for your storage business. Use this sample business plan as a guide for creating your own plan.

Import data into your editor and start writing!

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

Fill-in-the-blanks and automatic financials make it easy.

Start Preparing Your Business Plan with Upmetrics

No doubt, creating a comprehensive business plan is daunting; but it’s a lot smoother with the help of Upmetrics! It offers easy-to-follow steps, 400+ sample business plans, and AI support that will serve you perfectly.

If you are not good enough at finances, our financial forecasting tool will help you create realistic financial forecasts for 3 or more years.

Whether you’re venturing into a new business or aiming for expansion, Upmetrics provides valuable resources to create successful, professional business plans.

So, what are you waiting for; start planning now!

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Frequently asked questions, what are the key components of a self-storage business plan.

A successful self-storage unit business plan involves the following key components:

• Executive summary
• Company overview
• Self-storage industry analysis
• Customer analysis
• Competitive analysis
• Marketing plan
• Operational plan
• Management team
• Financial plan

What is the average profit margin for self-storage?

Depending on the location, size of the self-storage units, and operational efficiency, the average profit margin for self-storage facilities may range from 30 to 50%.

What are the legal and regulatory considerations for a self-storage business?

A self-storage unit business should consider various legal and regulatory aspects:

• Business legal structure
• Licenses and permits
• Lien rights & late fee policies
• Tax regulations
• Zoning laws
• Vehicle towing

How much capital is needed to start a self-storage facility?

The capital required to start a self-storage business may differ widely. On average, the startup costs can range between $500,000 to $1 million for a small self-storage facility, while larger facilities need the initial capital of several million dollars.

What types of self-storage units should I offer?

There are various types of self-storage units, including:

• Standard units
• Climate-controlled storage
• Drive-up units
• Interior storage units
• Exterior units
• Vehicle storage

About the Author

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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Starting a Self Storage Business in 2024: Ultimate Guide

In this extensive guide, we delineate how to start a self storage business.

The self storage industry is a rapidly growing market that provides vital services for individuals and businesses who need to store their belongings. There are various self storage units available and several ways to start your own self storage business.

To start a self storage business, one must first understand the basics and then learn how to run a self storage business. This entails finding out what the market needs and identifying potential customers.

As complex as these may seem, we’ve compiled all you need to know and how to go about the entire process in this extensive guide. We’ll walk you through the process of starting your self storage business. We’ll cover the basics of a self storage facility, how to find a location, and what you need to get started, including setting up reliable self storage software .

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Important Trends of the Self Storage Business You Must Know

Before outlining the process of starting a self storage business, let’s examine what the self storage niche entails and associated trends.

What Is a Self Storage Business?

A self storage business is a venture that provides consumers with their own space to store goods. The enterprise has exploded in popularity over the past few decades, hitting a global market value of $51.32 billion in 2021 .

A Chron report indicates that over 80% of self storage facilities are privately owned and operated. This means people use private self storage facilities for storing their belongings more often than government-owned enterprises — the latter make up only 30% of self storage clients.

Customers who require storage space for travel or a temporary move tend to take advantage of the ease and adaptability offered by self storage services. Similarly, businesses typically deem renting a storage container as a more cost-effective means to accommodate their goods than moving to larger quarters.

With self storage, there’s no binding long-term commitment, and this in itself is a significant selling point that attracts patronage. Notably, the average person rents storage space for 11 months, and the average business rents for 24 months. This flexibility makes it a good fit for a wide variety of customers’ demands.

Why Should You Invest in Self Storage?

A self storage business is usually successful because it provides an essential service that many people need. The more people who need this service, the better for your business.

If you decide to start a self storage business, know that you won’t be alone. The need for storage space has increased in recent years, leading to the proliferation of storage facilities in unexpected places like shopping malls and downtown areas.

A fairly recent Multi-Housing News post opined that the self storage industry is more resilient to economic downturns than most sectors of the real estate market. Self storage units continue to be a valuable solution for the storage needs of modern society as more and more people relocate and need somewhere to keep their valuables.

Want to learn more about self storage investment , check out the below figure from Self Storage Association Asia .

There are speculations that the self storage market presents fewer complexities than residential housing since the human element is less pronounced in the former. A facility manager may have to deal with tenants, for instance, if they can’t keep up with payments, but otherwise, their paths rarely intersect. However, it’s not a passive investment and has more in common with retail than real estate.  For more data-driven insights on why investing in self-storage is a wise decision, check out our self storage industry statistics .

How to Start a Self Storage Business: A Step-by-Step Guide

1. Find a Suitable Location.

For a company to be successful, it must first be able to meet a need in the market.

Customers may be hard to come by if you set up shop in an area where the demand is already satisfied. On the other hand, if you pick a spot with commercial potential but few existing businesses, you increase your odds of attracting and retaining customers. Hence, it’s vital to identify your options before settling on a spot.

It’s no secret that densely populated regions have a greater need for self storage options. Cities with a variety of housing options benefit greatly from them as well. Similarly, people downsizing or staying in an apartment temporarily often choose to keep their items in storage until they can move into a larger dwelling.

In summary, ensure a sizable customer base in the area before settling on a permanent site for your company. Also, see if any nearby storage facilities aren’t in use and may benefit from some redesign or upgrade. Considering the growing demand for versatile and cost-effective storage solutions, starting a shipping container storage facility could offer a unique opportunity within the self-storage market, combining flexibility with efficiency.

2. Develop a Business Plan That Outlines a Detailed Strategy for Success.

Including critical information about your self storage business in your business plan is crucial. Your business plan needs to outline everything from your target market and how you want to reach them to how you intend to run your company financially and operationally in the first few years.

When starting a business, every company needs a business plan. A credible business plan is crucial to attracting investors or acquiring funding from outside sources, with most financial institutions requiring one before loan approval. A well-thought-out business plan can serve as a powerful catalyst for your company’s development by helping you reach your goals and circumvent potential roadblocks.

You can develop a business plan independently, as many examples are available online . Other options include hiring a professional business plan writer or enlisting the services of a nonprofit organisation like SCORE , which provides free business counselling.

Remember that the business plan for an already operating self storage facility will differ significantly from a brand-new site’s.

Although business plans should be written with the specific needs of the company in mind, a self storage facility business plan would typically include the following elements:

• Mission statement
• Vision statement
• Ownership structure
• Sources of capital
• Revenue streams
• Market research analysis
• Competitive analysis

3. Obtain the Funding Required to Launch Your Business.

Self storage facilities have lower startup and development costs than many other businesses. There are, however, expenses to look into/consider.

Locate a suitable storage facility that can be used as is or modified into units with minimal effort. Regardless of the path you choose, it’s a good idea to talk to an organisation that provides storage engineering and design services. They’ll be able to advise you on how to best organise your company.

For added safety, double-check that your property is adequately secured and fenced. Locks must be installed on all units and feature a secure key-locking system.

Don’t forget to add the price of having full-time workers on site whenever the business is open. Cleaning materials, upkeep charges, and advertising must also be factored in.

After figuring out how much money you’ll need in the first month of business, you’ll have a better sense of the total amount you’ll require in the first year. As a rule of thumb, you should have enough money to cover at least a year’s operating costs before kickstarting your self storage business.

Are you thinking of how to start a self storage business with no money?

A small business loan could be an option if you lack the necessary funds to launch your self storage business. Alternatively, you could seek appropriate investors to join forces in the early stages of your company’s development.

4. Acquire All Necessary Licences and Permits.

Never launch a business, of any kind, without first securing the appropriate licences and permissions. Such endeavours can lead to severe financial penalties or possible closure of the enterprise altogether.

Carefully investigate the prerequisites for opening a self storage company in your chosen area, such as licences, permits, and registrations. You can discover such information about your town of choice by contacting them directly or looking at their website.

A certificate of occupancy, service contracts, small business permits, and other legal paperwork will be required before you can open for business. In a recently published article, we discussed whether you need planning permission for a storage container business , so you should consider having a read.

5. Make a Marketing Game Plan.

Consistently incorporating a strategic self storage marketing plan into your business strategy is essential for reaching your goals.

At the very least, you should have a website and business cards. Digital marketing services and printed marketing materials, however, can help your firm reach its maximum potential through advertising and promotion.

6. Get a Business Insurance Policy.

Insuring a self storage company requires special considerations. The primary service (the rental of self storage units) can’t be separated from the facility itself.

Insuring your commercial structure is a no-brainer because if a customer is injured while visiting your establishment, general liability insurance might help cover the costs. Storage facility insurance provides additional, specialised protection for the assets of self storage business owners beyond the basic coverages mentioned above.

You may modify your self-service storage insurance in various ways to meet your requirements. One method is to offer clients the option of purchasing additional property liability insurance. This may seem extremely kind, but it’s good business sense; we’ll explain how.

The cost of this insurance may be much lower than the expense of defending against negligence claims for failing to safeguard customers’ property when you had the opportunity to do so. You gain an advantage over the competition by insuring your clients’ property while safeguarding your assets by including this provision in your policy. A lot of storage facilities don’t provide this extra perk.

Your customers’ belongings should be insured, especially if they’re being removed or discarded, which is a unique extra. It’s a bummer to sell or otherwise get rid of the belongings of customers who haven’t paid for them.

This insurance might help cover costs if a client successfully sues for the return of their property after it has been removed. It helps keep costs down and offers some security.

You should also talk to your agent about getting cyber, data, and commercial umbrella insurance . If you run a self storage business that relies on online bookings and payments, cyber and data insurance can help you get back on your feet after a hacking incident by covering the costs of defending your business and replacing lost revenue. As for commercial umbrella insurance, it can assist you in covering any losses beyond your general liability policy’s limits.

Customers visiting self storage facilities are at a higher risk of slipping and falling due to the increased activity of carrying items into and out of a unit. Without a comprehensive insurance plan, you may have to spend more on healthcare and legal fees.

However, commercial umbrella insurance provides excess liability coverage for a reasonable price, ensuring that your organisation can survive a substantial loss. It’s like an insurance policy for your company that ensures it doesn’t shut down when things become rough.

Size, location, number of employees, and other criteria should all be considered when deciding on the best self storage company insurance policy. You may tailor your insurance policy to your specific needs by having an open discussion with a local, independent agency.

7. Define Your Brand.

More than just a name, logo, and slogan, branding encompasses everything that represents a company . It implies all the things people think of when they hear your company’s name.

For example, the widespread recognition of real estate investment trusts (REITs) gives them an edge over regional competitors in the self storage industry. According to G5’s report on why you need a self storage brand , the importance of branding for a self storage operator seeking to compete with REITs and raise their company’s profile is growing. You can carve yourself a niche in the regional market if you prove that your product or service is the best option for your demographic.

Through consistent branding, you attract renters who’ll remain loyal to your business over time. Developing a memorable self storage brand evokes feelings, motivates your messaging, and spreads the word about your services to potential customers in your area.

As you build your business, the following questions should be at the back of your mind:

What makes your space unique from others?

Who’re you trying to reach?

What’s your primary message?

If you can give thoughtful answers to these questions, you’ll be well on your way to building a brand that stands out from the crowd and attracts your target audience.

Build a name that people will recognise and trust to attract more prospective tenants and longer lease terms. Expanding your brand’s reach inside the self storage sector can create a more memorable message and establish yourself as the go-to provider for your target demographic.

Here are some helpful tips when branding your self storage business:

Find Out What Sets You Apart from the Competition First.

Explain what sets your business apart, what problems it addresses for customers, and how you can help them. If a consumer is considering a purchase, why should they opt for your company and not a competitor’s? What specific benefits do you offer to renters that they won’t find in another company?

Develop Your Personas.

Branding also involves researching and cultivating a specific demographic of consumers. Demographics, such as geography, and psychographics, such as preferences, motivations, and behaviours, are factored into creating a complete persona. Using these fictitious archetypes, you’re better positioned to relate to and market to your target demographic.

Examine Your Competitors Through SWOT Analysis.

SWOT is an acronym for “strengths, weaknesses, opportunities, and threats,” which is a common method for analysing a situation. You can use this potent tool to stand up to the competition.

Utilise the SWOT analysis to assess the positives and negatives of your competitors. Figure out how to counteract their advantages and take advantage of their flaws. By conducting a SWOT analysis, your organisation can avoid pitfalls and seize the possibilities presented by your rivals.

Create a Distinct Visual Identity for Your Brand.

Your promotional materials—from your website to your ads to your billboards—should look professional and draw in potential customers. Make sure that the primary selling points of your brand are prominently outlined on your website, above the fold, before your visitors have to scroll.

Picking a colour scheme and design that directly addresses your target audience strengthens your brand’s reputation amongst its competitors while increasing your chances of converting visitors into buyers.

8. Create Your Self Storage Business Website, and Invest in Reliable Self Storage Software.

A self storage firm should have a user-friendly website to attract as many consumers as possible. Like with just about anything else, buyers today often begin and conclude their search for self storage facilities online. With that in mind, it’s highly unlikely they’ll come across you if you don’t have a website.

Discussed below are some benefits of having a self storage business website:

Allows You to Take Control of Your Brand.

Unlike with a Facebook or other social media page, you may exert more control over your brand with a personalised website. Your marketing website should be unique by employing your brand’s colours, emblems, and other identifying features. When the website belongs to you, you decide what users can expect.

Makes It Possible to Offer Online Rentals.

Do you want to rent your property online but don’t know how?

Creating a promotional website for your storage facility is the least complicated option.

If you let out units through your website, tenants can reserve a unit at their convenience (day or night) and do the necessary paperwork and rental transactions on their own time. Investing in decent self storage software while setting up your website makes these processes even more seamless for your clients.

Eases The Burden of Payments.

You can expand how your consumers can pay you by launching a website. There’ll be fewer rent arrears if tenants can quickly and easily cover their payments.

If you set up the appropriate automatic billing processes , your tenants can use online tools to manage their accounts and pay their rent. The advantages of accepting payments on your website become readily evident when everything occurs mechanically, and you no longer have to spend time making collections calls.

All these and more are what the Storeganise self storage software offers , making it a must-have for most businesses in this niche.

Makes It Easier for Potential Clients to Find You.

A marketing website increases the likelihood that potential clients will find your storage facility through an online search. You may achieve this by implementing search engine optimisation (SEO) strategies, such as using the appropriate keywords, incorporating title tags and meta descriptions, and ensuring that your website loads quickly and without errors.

9. Enjoy the Process of Managing Your Self Storage Facility.

Self storage business ownership may seem mundane at first, but there are many ways to put your unique imprint on the industry.

Developing the company’s identity through advertising may be fun. Some business owners have found success by incorporating comedy into their marketing strategies, and you never know when your comedic juices will start flowing. The public’s perception of self storage facilities has also been improving recently, making it more likely that local media outlets will want to interview you.

As if that weren’t enough, there are also unintended advantages. If you’ve put money into a sizable area that needs people to run it, you might be in the fortunate position of being able to hire relatives or close friends.

Moreover, you’re likely to encounter certain strange items in units, including taxidermied animals, film celebrity memorabilia, and even an electric chair. That means there’s also a wild side to self storage that, although it won’t harm your business, might offer you some fantastic tales to tell.

However, you shouldn’t let that give you sleepless nights because regulations dictate what can and can’t be kept in storage facilities and what must be done if you need to access and dispose of their contents.

10. Get the Help You Need — Both Technically and Personnel-wise.

Due to the high initial cost of securing land for your storage facility, you must know how much money you’ll need to launch your business.

Customers will feel more at ease leaving their belongings in your care if they’re in a safe and secure area. As a result, you shouldn’t put up shop in a dangerous neighbourhood or somewhere too far from your target audience.

After purchasing land, the bulk of your work will comprise constructing the various storage units your clients would rent. Installing security equipment to keep tabs on the premises is a must. In addition to a computer, a landline phone, a cell phone, a vehicle, and security software, these items will be necessary for the smooth operation of your business. If money is tight, you can get by with somewhat used versions of several things.

As for staffing needs, a storage facility needs the following personnel a start:

• A CEO (this could be the company owner)
• An administrative and human resources (HR) manager
• A business development and marketing executive
• A customer service officer
• An accountant
• An information technology consultant
• A security guard

Today, many people in the United States and the United Kingdom, for example, now use storage facilities to keep their surplus household and commercial items out of the way. Thus, getting started in the self storage industry is quite simple since one only needs to identify a good site and purchase the land to construct the storage facilities.

Once the site is secured and the necessary permits obtained, you may begin construction on storage units of varied sizes, as not all customers will need to keep massive quantities of items.

However, before promoting and renting out the storage units to customers, you must have an attorney prepare the terms and conditions of usage and agreement paperwork.

It is also important to note that even once your business is set up, there will be operating expenses, such as electricity, security, labour, wifi and other ongoing costs.

Should You Buy an Existing Self Storage Facility?

It’s a good idea to purchase an already existing self storage facility, as it’ll save you the stress of finding land and building a new facility. You can renovate the facility according to your tastes and needs and even expand it.

The cost of purchasing an existing self storage facility varies widely, just like the wide variety of self storage options available. This explains why a self storage facility in London would cost tens of millions of pounds, while the same type of facility in rural Carlisle would likely cost less than a million pounds.

If you aren’t a trained real estate agent, you should engage a self storage broker to assist you in your search and purchase. An experienced broker has market knowledge and can negotiate a fair price.

You should buy a facility near your home if you plan to work there full-time. However, location is less of an issue if you want to outsource facility management to a third party. You should check that you and your broker have a solid understanding of the neighbourhood’s market conditions.

How Much Does It Cost to Start a Self Storage Business?

It’s no secret that launching a storage unit business can cost a lot. The cost of construction for a normal single-story building range from $25 to $40 per square foot .

The price per square foot for multi-story structures will be higher than that of single-story ones because of the additional cost of obtaining land. Depending on your location, you can pay between $42 to $70 per square foot for a high-rise apartment.

Building a state-of-the-art facility will require at least 70,000 rentable square feet at $50 to $70 per square foot (not including the land cost). This translates to an investment of almost $3 million to create a cutting-edge establishment.

How do you profit after shelling out that kind of cash?

You should start seeing a profit at about 50–70% occupancy. This becomes even more realistic when you consider that the need for self storage facilities will never go away.

Throughout the year, an ultra-modern, conveniently located self storage facility may easily maintain an occupancy rate of 85–95%. What this means is that your self storage business should generate a respectable profit. Still, you should know when to adjust your marketing plan for when occupancy is high to enable you to reap the most profits.

How Much Profit Can a Self Storage Business Generate?

As was previously said, once occupancy hovers around 50–70%, you can expect to break-even. However, a well-located building can function profitably with about 85–95% occupancy rates, resulting in a net income of around 27% of rental income after deducting all operating expenditures and loan debt payments.

At a yearly rate of $17.04, renting a unit for $1.42 per square foot each month is a good example of how this works out. If your building is 80,000 square feet, you can anticipate a yearly rental income of around $1.4 million and an annual gross cash flow of up to $354,432.

Adding moving truck rental services , moving supply sales, and moving equipment sales could boost your self storage company’s bottom line. Including such services can augment your earnings by up to 5%.

Self storage companies often offer additional services, such as fleet management for vehicles, vans, and moving trailers. The good news is that these companies can function effectively as a unified entity.

As an added service, you can provide moving equipment like furniture pads, hand trucks, and furniture dollies in addition to using your moving vehicles. Selling packing materials, moving boxes, and tape is another option.

Moreover, diversifying into niche storage markets, such as offering specialised facilities for boats, can further enhance your business’s appeal and profitability. Learn more about the specifics of building a boat storage facility to explore this lucrative opportunity.

Final Thoughts

Investing in self storage facilities can be lucrative because the industry is well-established and widely believed to be less labour-intensive than other real estate ventures. Considering the sector’s resilience and that storage space costs far less per square foot than residential property, it may be an especially appealing prospect.

Have you started your self storage business and are looking for ways to strengthen it? Storeganise offers helpful software solutions for self storage businesses, providing them with tools and insights to manage and grow their business. Sign up for a personalised demo to see how we can help!

Frequently Asked Questions

How profitable is a self storage business.

A self storage company is reasonably profitable and offers an excellent opportunity to amass sizable passive annual revenue. Your greatest shot at success is to provide excellent service to your customers and offer additional services like valet storage.

Is It Wise To Invest in a Self Storage Facility?

Yes, it is.

Our research suggests that the allure of investing in self storage facilities hasn’t changed much. These firms do well when times are good and, if managed well, can weather the storms of economic downturn with relative ease.

Why Is the Self Storage Industry Booming?

As a result of the pandemic, more people are looking for ways to declutter their houses by renting out extra space for home offices, relocating to the suburbs, or consolidating their households with relatives. All of these have contributed to a surge in the patronage the self storage industry has recently received.

How Much Can I Charge for Self Storage Units?

The appropriate fee for your self storage units depends on various factors, including unit size, location, items’ value, the unit’s unique features (e.g., climate control ), and the rent period. In the UK, for example, the Self Storage Association (SSA) UK annual industry report pegs the average price of renting a storage unit at £23.94 per square foot annually.

While you may charge more or less, it’s best to keep your pricing as low as possible while still making a profit. At the same time, knowing when to raise prices and how to do so without angering customers is essential.

Storeganise

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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As I was reading through your post, one question popped into my mind: With the self-storage market being so competitive, how can new businesses set themselves apart from the existing players and attract customers? With over 182,000 storage businesses operating nationwide, it’s crucial to find unique strategies that can give entrepreneurs an edge. Any ideas?

Hey Michael!

Great question. Pricing and branding would be the obvious first places to start. Undercutting your competition and potentially taking an early loss to get customers in the door could mean a fruitful year 2. On the other hand… investing in high quality marketing efforts from the start could allow you to charge more. Be very careful about selecting a business name that lends itself to a memorable campaign.

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Home » Sample Business Plans » Real Estate

How to Write a Self Storage Unit Business Plan [Sample Template]

Are you about starting a self storage unit business? If YES, here is a complete sample self storage unit business plan template & feasibility study you can use for FREE . If you live In the united states and are interested in owning a business portfolio in the real estate industry and you have not made up your mind on what kind of business to engage in, then you should consider starting your own self storage unit business.

Although, you can also start a self – storage business in London or some couple of cities in Canada and Europe, but the United States of America still remains the only country where this type of business is indeed a big industry. First and Foremost, what you need to do before venturing in into self – storage business is to carry out your survey.

A Sample Self Storage Unit Business Plan Template

1. industry overview.

Self – storage units are mini storage spaces created for people to store their belongings for a short period of time, i.e. on a monthly basis and it is subject to renewal. The storage space could be lockers, rooms, boxes, containers or even an empty space in a secured environment. It is important to state that self – storage unit isn’t open for people to rent and live in it.

It is strictly for storing of personal belongings and goods. For instance’ if you rent a storage space, in a facility, you will be the only one with the key to the storage unit / space and as such the goods you choose to store in your space won’t be covered by the facility insurance.

In the united states, the Self – Storage and Warehouse Facility Leasing industry experienced a solid rebound over the last five years. It is important to state that with increase in demand from households and businesses the revenue generated in the industry is expected to continue to experience appreciable growth and indeed there is a bright future for players in the industry.

Other factors that will boost revenue growth for the industry are steady population growth, increases in the residential rental market, rising per capita disposable income and the number of relocations by families and individuals.

The entry barriers for new operators in this industry can vary significantly by state and city. Overall, barriers are moderate, but are increasing across the United States. Costs to purchase or lease land or facilities vary across regions and are a major barrier to entry.

These expenses can be more manageable, though, in well-established, highly populated cities, whereas land costs can be significantly lower in smaller cities and suburban regions. There are several regulatory requirements that must be met by companies in the storage and mini warehouse business. The most difficult of these generally relates to zoning and land development conditions

The Self – Storage and Warehouse Leasing Facility industry is indeed a large industry and pretty much thriving in developed countries such as United States of America, Canada, United Kingdom, Germany, Australia and Italy et al.

Statistics has it that in the United States of America alone, there are about 32,437 licensed and registered self – storage and warehouse leasing facilities responsible for employing about 131,990 employees and the industry rakes in a whooping sum of $33bn annually with an annual growth rate projected at 6.1 percent. Public storage Inc. is the market leader in this industry.

Right from when self – storage unit became a business enterprise in 1958 in Fort Lauderdale – Florida, loads of investors have made money from the industry and loads of investors are still making huge profits from this line of business and the industry is still very much open for new investors. It is indeed a capital intensive business and at the same time, highly profitable especially if you are strategically located.

Over and above, starting a self – storage and warehouse leasing business in the United States of America can be started by anybody as long as you have the start – up capital to acquire a property and then design the property to fit into the purpose you want to use it for.

2. Executive Summary

Safe Lock® Self – Storage and Warehouse, LLC is a licensed, standard and secured self – storage and warehouse 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 and warehouse facility for our clients who are resided in Asheville and neighboring cities.

We have been able to secure a standard facility in a central and easy to locate location in Asheville. Our self – storage facility has a Five-by-5-foot storage spaces, 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. We are well equipped to services the whole of the community as well as visitors and travelers.

We conducted a thorough research and feasibility studies and we were able to come to the conclusion that Asheville community is the right place to start our sport and recreation facility. We will ensure that we offer our facilities at an affordable fee that won’t in any way put a hole in the pocket of our clients.

At Safe Lock® Self – Storage and Warehouse, LLC, our client’s best interest would always come first, and everything we do is guided by our values and professional ethics. We will offer trusted self – storage and warehouse facility services to all to our individual clients, and corporate clients and also ensure that we work hard to meet and surpass our clients’ expectations whenever they rent or lease our self – storage facilities.

Safe Lock® Self – Storage and Warehouse, LLC will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.

Our plan is to position the business to become one of the leading brands in self – storage and warehouse line of business in the whole of Ashville, and also to be amongst the top 20 self – storage and warehouse companies in the United States of America within the first 10 years of operations.

Safe Lock® Self – Storage and Warehouse, LLC is owned by Pearce Gordon and Henry Michael his business partners for many years. The business will be managed by both of them since they have adequate working experience to manage such business. Pearce Gordon has well over 10 years of experience working at various capacities in the real estate industry in the United States of America.

3. Our Products and Services

Safe Lock® Self – Storage and Warehouse, LLC is in the self – storage and warehouse facility business to provide safe short – term storage facilities for residence of Asheville – North Carolina which is why we have been able to put up a facility that can help us achieve the goal.

We are optimistic that everyone who make rent or lease our self – storage and warehouse facility will definitely derive huge value for their money. These are the amenities and services that will be made available to our clients;

• 5-by-5-foot storage spaces
• 5-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
• 10-by-30-foot storage spaces
• Leasing or rental of mini warehouses and self-storage units
• Rental of self-storage warehousing
• Rental of coin operated lockers
• U-lock storage
• Other facility operation

4. Our Mission and Vision Statement

• Our Vision of starting Safe Lock® Self – Storage and Warehouse, LLC is to build a hedge brand that will become one of the top choices for residents and businesses in the whole of Ashville – North Carolina.
• Our vision reflects our values: integrity, service, excellence and teamwork.
• Our mission for establishing Safe Lock® Self – Storage and Warehouse, LLC is to build a standard and well – secured self – storage and warehouse facility that can favorably compete in the industry in the United States of America and in the world.

Our Business Structure

Safe Lock® Self – Storage and Warehouse, LLC is in business to become the leading self – storage and warehouse facility in the whole of Asheville – North Carolina and we are fully aware that it will take the right facility, management and organization – structure to achieve our goal.

We will ensure that we recruit only the best hands that can help us achieve all that we are set to achieve. Our business will not be built only for the purpose of giving our members / customers value for their money, but also we will ensure that we make our work environment highly conducive for all our employees.

We will provide them with facilities that will help them stay motivated and deliver on their various tasks and goals et al. In view of that, we have made provisions for the following positions to be occupied by highly qualified and experienced staff;

• Chief Executive Officer

Facility Manager

Admin and HR Manager

Marketing and Sales Executive

• Customer Care Executive / Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Office:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Responsible for handling leasing or rental of mini warehouses and self-storage units
• Responsible for handling rental of self-storage warehousing
• Responsible for handling rental of coin operated lockers
• Responsible for handling U-lock storage rentals
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Handle other facility operations such as repairs and renovations et al
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Design job descriptions with KPI to drive performance management for clients
• Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Oversees the smooth running of the daily office activities.
• Identify, prioritize, and reach out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of relevant projects.
• Writes winning proposal documents, negotiate fees and rates in line with company policy
• Responsible for handling business research, marker surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develop, execute and evaluate new plans for expanding increase sales
• Document all customer contact and information
• Represent the company in strategic meetings
• Helps to increase sales and growth for the company
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• create reports from the information concerning the financial transactions recorded by the bookkeeper
• Prepare the income statement and balance sheet using the trial balance and ledgers prepared by the bookkeeper.
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the company
• Serves as internal auditor for the company

Client Service Executive / Front Desk Officer

• Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the manager in an effective and timely manner
• Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
• Receives parcels / documents for the company
• Distributes mails in the organization
• Handles any other duties as assigned my the line manager

Security Officers

• Ensures that the facility is secured at all time
• Control traffic and organize parking
• Gives security tips to staff members from time to time
• Patrols around the building on a 24 hours basis
• Submit security reports on a weekly basis
• Any other duty as assigned by the facility manager.

6. SWOT Analysis

Safe Lock® Self – Storage and Warehouse, LLC engaged the services of a core professional in the area of business consulting and structuring to assist the firm in building a well – structured self – storage and warehouse rental business that can favorably compete in the highly competitive self- storage and warehouse services industry.

Part of what the team of business consultant did was to work with the management of our organization in conducting a SWOT analysis for Safe Lock® Self – Storage and Warehouse, LLC. We hired the services of Dr. Garry Larson, a HR and Business consultant with bias in business structuring to help us conduct SWOT analysis for our company and he did a pretty good job for us.

We know that if we get things right before starting our self – storage and warehouse rental business, we will not have to struggle before attract loyal clients and building the business to a level where we can easily breakeven in record time.

Here is a of the result we got from the SWOT analysis that was conducted on behalf of Safe Lock® Self – Storage and Warehouse, LLC, Asheville – North Carolina;

One of the obvious strength that will definitely 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 in fact our major strength.

We equally have a team that can go all the way to give our clients value for their money; a team that are 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 weakness. 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 and warehouse facility rental companies when it comes to acquiring large facilities in choice areas.

• Opportunities:

We are centrally located in one of the busiest area and densely populated area in Ashville – North Carolina and we are open to all the available opportunities that the city has to offer. We will be open 24 hours in 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 on 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, downturn in the economy which is likely going to affect consumers spending and lastly, the emergence of new competitors within the same location where our self – storage and warehouse facility is located.

7. MARKET ANALYSIS

• Market Trends

The trend in the self – storage and warehouse rental industry is such that if a self – storage and warehouse facility is well positioned in a residential area or a place where people can easily access without much stress, there is the likelihood that the facility will enjoy high patronage.

Just like in other business ventures, the owner of self – storage and warehouse facilities are always looking for ways to increase their market share; they go as far as signing deals with merchants, importers and also business men and women   et al to make use of their facility.

It is a common trend that as self – storage and warehouse facility grow (fully occupied throughout the year), it becomes necessary for them to develop new service offerings or install new facilities that will help them attract more people. In order words, it is very important for self – storage and warehouse facilities to continue to improvise if they want to grow their business and generate their target revenues.

8. Our Target Market

We are aware of the fact that for any business to thrive so well in profit, it has to first and foremost define its market. The target market for self – storage and warehouse facilities cuts across people of different walks of life. The fact that people would need a secured place to keep their properties for a short period of time makes the self – storage and warehouse rental business a thriving and growing business.

Safe Lock® Self – Storage and Warehouse, LLC will work towards providing services, facilities and environment that will help us reach out to our target market. These are the category of people that we intend marketing our self – storage and warehouse facility to;

• Working Class Adults / Corporate Executives
• Sport Clubs (soccer team, athletics team and choreographers et al)
• College Students / Schools
• Community an Cooperate organization
• Business People / Entrepreneurs
• Government Officials
• Religious centers (Crusade Teams)
• Merchants, Importers and manufacturers
• Sports Men and Women
• Construction companies

Our Competitive Advantage

We also know that competition is one of the best things that could happen to a business because it makes any business tap more from within and be at their best at all times. No doubt, the Self – Storage and Warehouse Rental industry is indeed a profitable and highly competitive industry.

Clients will only rent your self – storage and warehouse facility if they know that your facility is highly secured and spacious enough to contain whatever property they want to store in your facility.

Our competitive advantage is that Safe Lock® Self – Storage and Warehouse, LLC is centrally located in a densely populated – residential area in Asheville – North Carolina; our location and high level of security is in fact our major strength.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (self – storage and warehouse facility rental businesses in the United States) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Safe Lock® Self – Storage and Warehouse, LLC is established with the aim of maximizing profits in the Self – Storage and Warehouse Facility Rental industry and we are going to go all the way to ensure that we do all it takes to attract both individual clients and corporate clients on a regular basis and to ensure that our facilities are fully occupied at any given time.

Safe Lock® Self – Storage and Warehouse, LLC will generate income by offering the following amenities and services;

10. Sales Forecast

From the very beginning it pays to have a sales forecast because this helps to go the extra mile in working so hard to meet the sales goals. It is important to state that our sales forecast is based on the data gathered during our feasibility studies and also some of the assumptions readily available on the field.

It would be hard to create a sales forecast with a newly opened business like self – storage and warehouse facility rental business. This is simply because the statistics that will be provided will be on a short term basis.

Experts said that usually a business should be in operation for at least one year before they can generate the statistics that will be need to help in accurate forecasting; statistics should be at least one year old in order to show the trends and pattern in consumer spending.

We expect to attain 65 percent occupancy of our self – storage and warehouse facility within our first year of operations and then in subsequent year we will grow to full occupancy (between 80 and 100 percent occupancy). Below are the sales projection for Safe Lock® Self – Storage and Warehouse, LLC, it is based on the location of our facility and the services and amenities that we will be offering to our clients;

• First Year-: $200,000
• Second Year-: $450,000
• Third Year-: $750,000

N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major competitor offering same additional services as we do within 4.5 miles radius from our self – storage and warehouse facility.

• Marketing Strategy and Sales Strategy

Our marketing strategies will be directed towards achieving specific objectives that support the strategic goals of the organization. The truth is that all we do will be geared towards creating new market channels, increasing sales and increase our market share. We will leverage on improving on our services and facility to ensure that we win new clients and retain old clients.

At Safe Lock® Self – Storage and Warehouse, LLC, our marketing strategies will be consistent throughout the marketing mix and we will take into consideration facility improvement, promotion, and price. As part of our sales and marketing strategies, we will pay attention to the promotion of our self – storage and warehouse facility so as to attract people to rent or lease our facilities.

Our unique selling proposition is that we are well positioned and people can easily access our facility, our prices are affordable and we have a complete package for families, schools and sport clubs. Part of the marketing and sales strategies that we will adopt are;

• Open our self – storage and warehouse facility with a big party.
• Advertise our self – storage and warehouse facility on community based newspapers, local TV stations and local radio station
• Promote our self – storage and warehouse facility online via our official website and all available social media platforms
• Introduce our self – storage and warehouse facility by sending introductory letters alongside our brochure to businesses, sports clubs, schools, corporate organizations, households and key stake holders in Asheville – North Carolina
• Print out fliers and business cards and strategically drop them in offices, libraries, public facilities and train stations et al.
• Delivering consistent customer experiences to all our members; making our first impression count positively to those renting or leasing our self – storage and warehouse facility for the first time
• Make use of attractive hand bills to create awareness and also to give direction to our self – storage and warehouse facility
• Adopt direct mailing coupon marketing approach
• Position our signage / flexi banners at strategic places in and around Ashville – North Carolina
• Create a loyalty plan that will enable us reward our loyal clients especially those that refers their family members and friends to us
• Engage on road shows within our neighborhood to create awareness for our self – storage and warehouse facility.

11. Publicity and Advertising Strategy

We have been able to work with our branding and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to become the number one choice for both corporate clients and individual clients in the whole of Asheville – North Carolina which is why we have made provisions for effective publicity and advertisement of our self – storage and warehouse facility.

Below are the platforms we intend to leverage on to promote and advertise Safe Lock® Self – Storage and Warehouse, LLC;

• Place adverts on both print (community based newspapers and magazines) and electronic media platforms
• Sponsor relevant community based events
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our brand
• Install our Bill Boards on strategic locations all around Asheville – North Carolina.
• Engage in road show from time to time in targeted neighborhoods
• Distribute our fliers and handbills in target areas in Asheville
• Contact corporate organizations, sport clubs, households and schools by calling them up and informing them of Safe Lock® Self – Storage and Warehouse, LLC and the services and amenities we offer
• List Safe Lock® Self – Storage and Warehouse, LLC on local directories / yellow pages
• Advertise our self – storage and warehouse facility in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our corporate logo et al.

12. Our Pricing Strategy

Our pricing system is going to be based on what is obtainable in the industry, we don’t intend to charge more (except for premium and customized services) and we don’t intend to charge less than what our competitors are charging their members in Asheville – North Carolina.

Be that as it may, we have put plans in place to offer discount services once in a while and also to reward our loyal customers especially when they refer clients to us or when they rent or lease of facility for a longer period. The prices of our services will be same as what is obtainable in the United States’ open market.

• Payment Options

At Safe Lock® Self – Storage and Warehouse, LLC, our payment policy will be all inclusive because we are quite aware that different clients would prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;

• Payment by via bank transfer
• Payment via online bank transfer
• Payment via POS machine
• Payment via check
• Payment via bank draft
• Payment via mobile money
• Payment with cash

In view of the above, we have chosen banking platforms that will help us achieve our plans with little or no itches.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting a self – storage and warehouse facility rental business; it might differ in other countries due to the value of their money. However, this is what it would cost us to set up Safe Lock® Self – Storage and Warehouse, LLC in the United of America;

This is the key areas where we will spend our start – up capital on;

• The Total Fee for Registering the Business in North Carolina – $750.
• Legal expenses for obtaining licenses and permits – $1,500.
• Marketing promotion expenses (8,000 flyers at $0.04 per copy) for the total amount of $10,000.
• Cost for hiring Business Consultant – $5,000.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $30,800.
• Cost of accounting software, CRM software and Payroll Software – $3,000
• Cost for leasing facility for the self – storage and warehouse facility – $500,000.
• Cost for facility remodeling – $250,000.
• Other start-up expenses including stationery – $1000
• Phone and utility deposits – $3,500
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
• The cost for Start-up inventory – $15,000
• Cost for acquiring security locks, CCTV and other security wares – $200,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, tables and chairs et al) – $4,000.
• The cost of Launching a Website – $600
• The cost for our grand opening party – $15,000
• Miscellaneous – $15,000

We would need an estimate of $1.5 million to successfully launch a standard and well – equipped self – storage and warehouse facilities in Asheville – North Carolina. It is important to state that the testing and evaluating expenses would be high because of the large amount of needed to secure a large facility in a good location.

Generating Funding / Startup Capital for Safe Lock® Self – Storage and Warehouse, LLC

Safe Lock® Self – Storage and Warehouse, LLC is a business that will be owned and managed by Pearce Gordon and his friend and business partner Henry Michael. They are the sole financial of the business which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings and sale of his stocks
• Generate part of the start – up capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $500,000 (Personal savings $350,000 and soft loan from family members $150,000) and we are at the final stages of obtaining a loan facility of One Million USD from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Safe Lock® Self – Storage and Warehouse, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to rent or lease of our self – storage and warehouse facility is to ensure that our facility is not just strategically locate, but also highly secured and affordable.

Safe Lock® Self – Storage and Warehouse, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of ten years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• Business Name Availability Check:>Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Acquiring facility and remodeling the facility to fit into our self – storage facility and warehouse: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the Needed office appliances and security gadgets and software: In Progress
• Creating Official Website for the Company: Completed
• Creating Awareness for the business both online and in the neighborhood: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress.

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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 $130k 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 $120k 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 $61K–$122K will buy

If you have between $61K and $122K 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 $122K+ will buy

If you have $122k 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?

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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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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.

Building a Fortress: A Guide to Self-Storage Security

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When you’re looking to develop a self-storage facility, you obviously must decide where to build it. Be prepared, finding a great site for storage can be tricky. Keep Reading

How to Start a Self-Storage Business

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The future of self storage units: exploring new software solutions.

The self storage industry is rapidly evolving, driven by advances in technology that promise to revolutionize how units are managed and utilized. Modern software solutions are setting new standards, offering unprecedented levels of efficiency and user engagement. From automated access systems to real-time inventory management, these innovations are not just enhancing the operational aspects of self storage facilities but also transforming them into more customer-focused services. This guide delves into the latest software developments and their implications for the future of self storage, highlighting how they cater to both business owners and consumers by streamlining operations and improving the overall storage experience.

Market Trends

The self storage industry is experiencing significant growth, driven by both increasing consumer demand and technological advancements. Facilities like self storage units Northwest Self Storage are at the forefront of this expansion, integrating new technologies that enhance accessibility and security. These innovations are not only attracting more users by offering convenience and efficiency but are also enabling facilities to manage a larger number of units without corresponding increases in staffing or operational costs. 

As more people and businesses recognize the benefits of self storage, market analysts predict a continued rise in adoption rates, further fueled by urbanization and the downsizing trends among both millennials and baby boomers.

Note: Did you know that the self storage industry was one of the fastest to recover after the last economic downturn, demonstrating its resilience and essential role?

Software Innovations

The integration of innovative software is reshaping the self storage industry by introducing a suite of advanced features designed to enhance both operational efficiency and customer satisfaction. 

These technological advancements include:

• Automated Access Control : Systems that allow customers to access units via smartphone apps, reducing the need for physical keys.
• Real-Time Inventory Tracking : Software that provides facility managers and customers with up-to-the-minute data on unit availability.
• Customer Management Systems : Platforms that streamline billing, account management, and customer communication.
• Mobile App Integration : Apps that enable customers to manage their storage experience from anywhere, offering features like payment processing and notifications.
• Predictive Analytics : Tools that analyze usage patterns to optimize pricing and promotions.

For more insights into how technology is being integrated into business practices today, visit the U.S. Chamber of Commerce . An expert in digital transformation within the industry states, “These software solutions not only drive cost savings but also significantly enhance the user experience, setting new standards in the self storage industry.”

Customer Experience

The advent of new software solutions in the self storage industry has dramatically transformed the customer experience. These technological enhancements not only simplify the process of renting and managing storage units but also provide greater transparency and convenience. Customers can now choose units, manage rental agreements, and make payments all from their smartphones, which increases their satisfaction and loyalty. 

Additionally, these systems offer improved communication tools that enable storage providers to send timely updates and alerts about unit status or promotional offers directly to customers’ devices.

An industry expert comments, “ Modern software has revolutionized customer interaction within the self storage sector, making it more streamlined and user-friendly than ever before.”

Research Insight : A study conducted by the Storage Association found that storage facilities that implemented customer-centric software reported a 30% increase in customer retention rates. The research also noted improvements in customer reviews and overall satisfaction, highlighting the direct impact of these digital solutions on service perception. These findings underscore the importance of technology in enhancing the customer experience, suggesting that facilities that invest in these solutions gain a competitive edge by catering to the evolving expectations of modern consumers.

Operational Efficiency

The deployment of new software solutions in the self storage industry has markedly increased operational efficiency. 

These tools help streamline several key aspects of running a storage facility:

• Automated Billing and Payments : Software now automates these processes, reducing the administrative burden and minimizing errors. This efficiency allows for more timely collections and better cash flow management.
• Dynamic Pricing Models : Advanced algorithms analyze market data to adjust prices dynamically, optimizing revenue based on demand and competitor pricing.
• Facility Management : Integrated systems provide a comprehensive dashboard that allows for remote monitoring and management of multiple locations, reducing the need for onsite supervision.

Implementing these advanced software solutions not only reduces operational costs but also enhances the service quality, making facilities more competitive. For businesses needing to relocate or expand their operations, professional services like movers in Fort Lauderdale, FL can assist in the efficient transportation of physical assets, complementing the digital enhancements with physical logistics support. This synergy between digital management and physical logistics is crucial for modernizing operations and catering to a broader customer base.

Security Enhancements

The future of self storage units is not only about operational efficiency and customer experience but also significantly about enhancing security. Modern software solutions have introduced sophisticated security features that provide peace of mind to both facility owners and customers. These systems include advanced surveillance technologies that offer real-time monitoring through high-definition cameras, motion sensors that detect unauthorized activity, and access control systems that allow entry only to authorized users via secure digital keys. Additionally, these platforms integrate alarms and mobile notifications that alert staff and customers immediately of any potential security breaches.

This shift towards integrated, technology-driven security measures significantly reduces the risk of theft and vandalism, ensuring that customers’ belongings are safely stored. Moreover, the data collected by these systems can be used to analyze patterns of access and identify potential security weaknesses, further strengthening the preventive measures in place.

• 75% reduction in theft incidents at facilities using integrated security systems.
• 90% of customers report feeling more confident in the security of digitally monitored units.

By implementing these advanced security technologies, self storage facilities are setting new standards for safety in the industry, protecting assets and building trust with their clients.

Wrapping Up

As we look toward the future of self storage units, it’s evident that software solutions are playing a pivotal role in shaping the industry. These innovations not only enhance operational efficiency and customer satisfaction but also fortify security measures, creating a more robust and responsive service environment. The integration of advanced technology ensures that self storage facilities can meet the evolving needs of modern consumers and stay competitive in a digital era. As software continues to evolve, we can expect even more sophisticated solutions that will further revolutionize the way self storage units operate, making them smarter, more accessible, and safer than ever before.

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Out of the Centre

Savvino-storozhevsky monastery and museum.

Zvenigorod's most famous sight is the Savvino-Storozhevsky Monastery, which was founded in 1398 by the monk Savva from the Troitse-Sergieva Lavra, at the invitation and with the support of Prince Yury Dmitrievich of Zvenigorod. Savva was later canonised as St Sabbas (Savva) of Storozhev. The monastery late flourished under the reign of Tsar Alexis, who chose the monastery as his family church and often went on pilgrimage there and made lots of donations to it. Most of the monastery’s buildings date from this time. The monastery is heavily fortified with thick walls and six towers, the most impressive of which is the Krasny Tower which also serves as the eastern entrance. The monastery was closed in 1918 and only reopened in 1995. In 1998 Patriarch Alexius II took part in a service to return the relics of St Sabbas to the monastery. Today the monastery has the status of a stauropegic monastery, which is second in status to a lavra. In addition to being a working monastery, it also holds the Zvenigorod Historical, Architectural and Art Museum.

Belfry and Neighbouring Churches

Located near the main entrance is the monastery's belfry which is perhaps the calling card of the monastery due to its uniqueness. It was built in the 1650s and the St Sergius of Radonezh’s Church was opened on the middle tier in the mid-17th century, although it was originally dedicated to the Trinity. The belfry's 35-tonne Great Bladgovestny Bell fell in 1941 and was only restored and returned in 2003. Attached to the belfry is a large refectory and the Transfiguration Church, both of which were built on the orders of Tsar Alexis in the 1650s.  

To the left of the belfry is another, smaller, refectory which is attached to the Trinity Gate-Church, which was also constructed in the 1650s on the orders of Tsar Alexis who made it his own family church. The church is elaborately decorated with colourful trims and underneath the archway is a beautiful 19th century fresco.

Nativity of Virgin Mary Cathedral

The Nativity of Virgin Mary Cathedral is the oldest building in the monastery and among the oldest buildings in the Moscow Region. It was built between 1404 and 1405 during the lifetime of St Sabbas and using the funds of Prince Yury of Zvenigorod. The white-stone cathedral is a standard four-pillar design with a single golden dome. After the death of St Sabbas he was interred in the cathedral and a new altar dedicated to him was added.

Under the reign of Tsar Alexis the cathedral was decorated with frescoes by Stepan Ryazanets, some of which remain today. Tsar Alexis also presented the cathedral with a five-tier iconostasis, the top row of icons have been preserved.

Tsaritsa's Chambers

The Nativity of Virgin Mary Cathedral is located between the Tsaritsa's Chambers of the left and the Palace of Tsar Alexis on the right. The Tsaritsa's Chambers were built in the mid-17th century for the wife of Tsar Alexey - Tsaritsa Maria Ilinichna Miloskavskaya. The design of the building is influenced by the ancient Russian architectural style. Is prettier than the Tsar's chambers opposite, being red in colour with elaborately decorated window frames and entrance.

At present the Tsaritsa's Chambers houses the Zvenigorod Historical, Architectural and Art Museum. Among its displays is an accurate recreation of the interior of a noble lady's chambers including furniture, decorations and a decorated tiled oven, and an exhibition on the history of Zvenigorod and the monastery.

Palace of Tsar Alexis

The Palace of Tsar Alexis was built in the 1650s and is now one of the best surviving examples of non-religious architecture of that era. It was built especially for Tsar Alexis who often visited the monastery on religious pilgrimages. Its most striking feature is its pretty row of nine chimney spouts which resemble towers.

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Moscow Oblast Regional Investment and Business Guide Paperback

• Publisher Int'l Business Publications, USA
• ISBN-10 073970849X
• ISBN-13 978-0739708491
• See all details

Product details

• ISBN-10 ‏ : ‎ 073970849X
• ISBN-13 ‏ : ‎ 978-0739708491

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