Starting a Self Storage Business: A Comprehensive Guide

Introduction

This post offers knowledge about starting a self storage business. We’ll provide you with a step-by-step guide to consider and a valuable collection of resources.

There’s a lot of information to cover, so it might be beneficial to bookmark this page for future reference. Additionally, if you find this post valuable, we kindly ask you to share it with others.

Let’s get started with the steps.

Steps to Starting a Self Storage Business

1. Gaining an Overview of What You’re Getting Into

In this section, we will provide valuable insights and guidance to aid you in making informed decisions for your self storage business.

When achieving success in the self storage industry, the key factor is none other than you. Your personal involvement and dedication play a crucial role in the outcome of your business venture.

It is vital to clearly understand your feelings and motivations towards owning and running a business.

Taking the time to explore this aspect will significantly contribute to making well-informed decisions when starting your self storage business.

a.) Is Starting a Self Storage Business the Right Step for You?

Passion is an indispensable ingredient for achieving success in the self storage industry.

Having a strong passion will fuel your determination to succeed. It will motivate you to seek solutions when faced with challenges and will be the driving force behind your commitment to overcoming obstacles.

Let’s consider the following scenario:

Imagine you win a lottery. You generously help your loved ones and contribute to charitable causes.

Over the next few years, you embark on global adventures, purchase your dream home, and secure a vacation property for relaxing weekend retreats. You have all the cars and gadgets you’ve ever desired. Anything you wish to buy is readily accessible at your fingertips.

Even after indulging in these luxuries, you still have millions of dollars remaining in cash and investments, giving you the freedom to live on your own terms.

Now, let’s reflect on an important question:

In such a scenario, would you still choose to start a self storage business?

If your answer is a resounding yes, it demonstrates your genuine passion for venturing into the self storage business, and you’re heading in the right direction.

However, if your answer is no, it prompts another important question:

What alternative path would you prefer to pursue? Perhaps, it’s worth considering focusing on that path instead.

The above exercise aimed to shift your focus away from solely considering monetary gains and guide you towards selecting a business based on your true passion.

For More, See How Passion Affects Your Business. Also, see, Considerations Before You Start Your Business to identify key points for a new business owner.

b.) A Quick Overview of Owning a Self Storage Business

Running a self storage business requires dedication and involves various responsibilities. Here’s a neutral overview of what it’s like to be in charge:

Responsibilities:

Customer Service: Assisting customers with inquiries, leasing units, and providing exceptional service.
Facility Maintenance: Ensuring the premises are clean, secure, and well-maintained.
Marketing and Sales: Promoting the business, attracting new customers, and managing rental agreements.
Financial Management: Handling rent collection, budgeting, and bookkeeping.
Security and Safety: Implementing security measures to protect customers’ belongings and ensuring compliance with safety regulations.

Average Day:

Interacting with customers, addressing their needs, and assisting with unit rentals.
Conducting routine facility inspections and maintenance tasks.
Handling administrative duties such as managing rental contracts and financial transactions.
Marketing efforts, including online promotions and maintaining a strong online presence.
- Monitoring security systems and ensuring a safe environment for customers and their belongings.

Running a self storage business entails a balance of customer service, facility maintenance, marketing, financial management, and security measures to provide customers a smooth and secure experience.

c.) Key Points To Succeed in Self Storage Business

To succeed in the self storage business, consider the following key points:

Customer Satisfaction: Prioritize excellent customer service, including prompt response to inquiries, personalized assistance, and addressing concerns promptly.
Secure and Well-Maintained Facilities: Maintain a clean, secure, and well-maintained facility to instill trust and ensure the safety of customers’ belongings.
Competitive Pricing and Flexible Options: To attract and retain customers, offer competitive rates, various unit sizes, and flexible leasing terms.
Effective Marketing: Implement a comprehensive marketing strategy, including online presence, local advertising, and referral programs to increase visibility and attract potential customers.
Efficient Budgeting: Carefully manage expenses, track revenue, and create a realistic budget to maintain financial stability and ensure the longevity of your self storage business.

Remember, success in the self storage industry relies on managing the business effectively, marketing strategies, and efficient budgeting practices.

d.) Challenges of Running a Self Storage Business

Running a self storage business poses various challenges that need to be addressed to ensure long-term success. Here’s an overview of some key challenges:

Building a Customer Base: One of the main challenges is attracting and retaining a sufficient customer base. Implementing effective marketing strategies to reach potential customers and generate enough revenue to cover expenses and generate profit is essential.
Customer Satisfaction: Keeping customers happy is crucial for maintaining a positive reputation and encouraging repeat business. Providing exceptional customer service, addressing concerns promptly, and ensuring a safe and secure storage environment is vital to customer satisfaction.
Financial Stability: Having enough funds to sustain the business is crucial, especially during slower periods. Effective budgeting and financial management are necessary to cover operational expenses and maintain a healthy cash flow.

Addressing these challenges is key to running a successful self storage business, allowing for steady growth, customer satisfaction, and long-term sustainability.

e.) Self Storage Business Models

There are various types of self storage business setups, each with its own unique business model. Here are some common setups and their corresponding business models:

Single Facility, Owner-Operated:

A single self storage facility owned and operated by an individual or a small team.
Business Model: The owner is responsible for all aspects of the business, including facility management, customer service, marketing, and financial management.

Multi-Facility Chain:

Multiple self storage facilities owned and operated by a single company or corporation.
Business Model: The company centrally manages operations, marketing, and financials across all locations. Each facility may have its on-site management team.

Franchise:

Self storage facilities operated under a franchise agreement with an established brand.
Business Model: Franchisees benefit from the brand recognition, support, and operational guidelines provided by the franchisor while maintaining independence in managing their individual facility.

Conversion Facilities:

Repurposing existing structures such as warehouses, retail spaces, or industrial buildings into self storage facilities.
Business Model: Capitalizing on the existing structure, these facilities often offer unique layouts and features, catering to specific customer segments.

Climate-Controlled Storage:

Facilities that provide temperature and humidity-controlled storage units, suitable for sensitive or valuable items.
Business Model: Higher rental rates and specialized facility maintenance requirements justify the added costs of climate control.

Portable Storage Units:

Offering storage units that can be delivered to customers’ locations, allowing for convenient loading and unloading.
Business Model: Primarily focused on logistics and transportation, customers rent portable units for temporary storage.

Specialty Storage:

Facilities catering to specific storage needs, such as vehicle storage, wine storage, document storage, or boat/RV storage.
- Business Model: Serving niche markets with specialized storage solutions, often commanding premium pricing.

These are just a few examples of self storage business setups and their corresponding business models. Each model has its advantages, considerations, and target markets, allowing entrepreneurs to choose the one that best aligns with their goals and resources.

f.) Pros and Cons

Pros of Running a Self Storage Business:

Stable Demand: Self storage is consistently demanded, as people often require extra space for personal belongings or during transitional periods.
Recurring Revenue: Monthly rentals provide a steady income stream, contributing to financial stability.
Scalability: It is possible to expand and add more units or facilities to accommodate growing demand.
Limited Interaction: Compared to some businesses, self storage requires minimal daily customer interaction.
Low Maintenance: Once set up, self storage facilities require relatively low maintenance.

Cons of Running a Self Storage Business:

Initial Investment: Starting a self storage business requires a significant upfront investment for land, construction, and security systems.
Competition: Depending on the location, there may be competition from other self storage facilities.
Operational Costs: Maintaining and securing the facility and marketing expenses can impact profitability.
Tenant Management: Dealing with delinquent payments, tenant disputes, and property damage can be time-consuming.
Economic Factors: Economic downturns may affect occupancy rates and rental prices.

Note: This is a brief summary, and there may be additional pros and cons specific to individual circumstances and locations.

g.) Customer Expectations

Customers have certain expectations when it comes to self storage businesses. Here’s a brief overview of what customers generally expect:

Security: Customers expect their belongings to be stored in a secure environment with robust security measures in place, such as surveillance systems, access control, and well-maintained premises.
Clean and Well-Maintained Facilities: Customers anticipate clean and well-maintained storage units and common areas, ensuring their items are protected from pests, dust, and damage.
Accessibility and Convenience: Customers expect convenient access to their storage units, including extended operating hours, easy-to-use entry systems, and adequate parking facilities.
Friendly and Responsive Customer Service: Customers appreciate friendly and helpful staff who can readily address their inquiries, provide assistance, and resolve concerns promptly.
Transparent Pricing and Contracts: Customers expect clear and transparent pricing structures, rental agreements, and no hidden fees, ensuring they can make informed decisions and understand the costs.

Meeting and exceeding these customer expectations is crucial for building trust, fostering positive relationships, and ensuring customer satisfaction in the self storage industry.

h.) Making Your Self Storage Business stand out

To make a self storage business stand out, consider implementing the following ideas:

Exceptional Customer Service: Provide personalized and attentive customer service to create a positive client experience.
Innovative Features: Offer unique amenities such as climate-controlled units, 24/7 access, or online reservation systems.
Community Involvement: Engage with the local community through sponsorships, events, or partnerships to build brand recognition and trust.
Value-Added Services: Provide additional services like moving assistance, packing supplies, or package acceptance to go the extra mile for customers.
Online Presence: Maintain a user-friendly website, active social media accounts, and positive online reviews to enhance visibility and attract tech-savvy customers.

Implementing these ideas can help differentiate your self storage business from competitors and attract customers looking for exceptional service and added value.

i.) Add on Ideas for a Self Storage Business

Consider offering the following add-ons to enhance your self storage business:

Moving Services: Provide professional moving assistance, including packing, loading, and transporting items.
Packing Supplies: Sell or offer rental options for packing materials such as boxes, tape, bubble wrap, and moving blankets.
Shelving and Organization Solutions: Offer shelving units or organizational systems to help customers maximize their storage space.
Vehicle Storage: Provide storage options for vehicles, such as cars, motorcycles, or recreational vehicles (RVs).

These add-ons can generate additional revenue, attract customers seeking convenience, and provide comprehensive storage solutions for your clients.

2. Research

Self Storage Business Research

Before embarking on your self storage business venture, conducting thorough industry research is crucial. Familiarizing yourself with the field will provide valuable insights and ensure you’re well-prepared for what lies ahead.

Accessing quality information is paramount for making informed decisions and determining if this business fits you.

One effective way to acquire reliable information is by connecting with industry professionals with firsthand experience.

Engaging with experienced individuals can be invaluable, allowing you to gain insights from their years of expertise.

I’ve crafted an article that offers guidance on identifying the right people to approach and how to approach them.

To gain a comprehensive understanding of the self storage industry and set yourself up for success, I highly recommend reading the article linked below before launching your business

It will provide you with valuable insights and knowledge for the journey ahead.

See An Inside Look Into the Business You Want To Start for all the details.

Target Audience

Understanding your target market is essential when starting a self storage business. It involves gaining insights into the people likely to be interested in your offerings.

By understanding your target market, you can tailor your marketing efforts and better meet their needs.

Potential customers who may be interested in self storage include:

Individuals in the midst of moving or relocating
Small business owners in need of extra storage space
College students seeking temporary storage during breaks
Homeowners undergoing renovations or downsizing
Seasonal travelers requiring storage for their belongings
People that are moving and need to store belongings during the transition

Understanding your customers’ preferences enables you to improve advertising strategies and enhance sales.

For more in-depth guidance on understanding your target market, please refer to How To Understand Your Target Market.

3. Looking at Financials:

Welcome to the section that provides an overview of startup costs, monthly expenses, revenues, and profits for your self storage business.

Startup Costs:

Accurately estimate startup costs to ensure a smooth launch and avoid financial challenges.
Create a comprehensive list of all necessary items and services, considering factors like size, location, and equipment choices.
Balancing the cost of new versus used equipment is an important decision.

For more detailed information, refer to my article on Estimating Startup Costs.

Sales and Profit:

The popularity and demand for your products and services influence sales.
Effective marketing strategies are crucial for generating awareness and attracting the right customers.
Profitability requires considering expenses such as rent, payroll, and overhead costs, not just profit per sale.

Profit:

Achieving profitability involves generating sufficient sales with suitable profit margins.
It’s important to cover monthly expenses and account for personal living costs.

Understanding and effectively managing startup costs, sales, and profitability are key factors for a successful self storage business.

For More, See Estimating Profitability and Revenue

Sample Financial Lists As a Starting Point

Estimated Costs for a New Self Storage Business in the USA:

Land acquisition: $500,000 – $1,000,000
Construction costs: $1,000,000 – $1,500,000
Legal, architectural, and consulting fees: $50,000 – $100,000
Licensing and permits: $10,000 – $20,000
Marketing and advertising for launch: $20,000 – $50,000
Office setup (computers, software, etc.): $5,000 – $10,000
Security setup (cameras, gates, etc.): $20,000 – $40,000
Initial inventory for retail sales (locks, boxes, packing supplies): $2,000 – $5,000
Insurance premiums for the first year: $10,000 – $15,000
Miscellaneous and unforeseen expenses: $50,000 – $100,000

Grand Total Estimated Startup Costs: $1,667,000 – $2,840,000

Estimated Monthly Expenses for a Self Storage Business in the USA:

Employee wages: $4,000 – $7,000
Utilities (Electricity, water, waste disposal): $1,000 – $2,000
Security maintenance: $200 – $400
Insurance: $800 – $1,300
Marketing and advertising: $1,000 – $3,000
Property taxes: $1,000 – $2,000
Office supplies and retail inventory: $500 – $1,000
Routine maintenance and cleaning: $1,000 – $2,000
Professional services (legal, accounting, etc.): $500 – $1,000
Miscellaneous: $500 – $1,000

Grand Total Estimated Monthly Expenses: $10,500 – $20,700

Projected Revenue and Profit for a Self Storage Business in the USA:

Revenue:
- Rental income from storage units: $20,000 – $40,000/month
- Retail sales of moving supplies: $1,000 – $2,000/month

Total Monthly Revenue: $21,000 – $42,000

Monthly expenses: $10,500 – $20,700

Monthly Profit: $10,500 – $21,300

You can use these as a starting point for your research.

Note: Every situation is different, and many factors come into play, but these lists will give you a starting point to build ones for your self storage business.

Remember, these are just estimates and your actual costs or revenue could be higher or lower. Starting a business involves careful planning and consideration. Always seek professional advice when calculating your business’s startup costs, expenses, and potential revenue.

4. Choosing The Right Business Location

Selecting the right location for your self storage business can significantly impact its success. It is crucial to consider the following factors:

Demand:

Choose a location where there is sufficient demand for self storage services. Ensure there is a market for what you have to offer to avoid launching in an area with limited demand.

Competition:

Avoid areas with excessive competition that may hinder your ability to make sales. Strive for a balance where there is reasonable competition alongside market demand.

Affordability:

Assess the financial feasibility of operating in a particular location. Determine if the potential for increased exposure and profitability justifies the higher costs associated with highly populated areas.

Market:

Evaluate if the location aligns with the target market you aim to serve. A cheap operating location may not be viable if it lacks sufficient demand to support your business goals.

Choosing the right location is a critical factor in achieving success. Thoroughly research and analyze potential locations to ensure you make an informed and advantageous choice for your self storage business.

For more about business locations, see Choosing The Best Location for Your Business.

5. Choose a Business Name

When selecting a name for your self storage business, it’s important to choose a catchy and appropriate name that is easy to pronounce and memorable.

Take the time to find a name that aligns with your company and will stand the test of time.

Remember, the name you choose will likely remain with your business, so it’s essential to select one you’ll be satisfied with now and in the future.

Additionally, securing a matching domain name for your online presence is crucial while ensuring another business does not already register it.

Below are business name ideas for a self storage business:

SecureStor
EasyStore
StorageHub
SafeSpace
SpaceGuard
QuickAccess Storage
StorWise
PrimeVault
EliteStorage
SmartLocker
MetroStorage
ProGuard Self Storage
StoreSolutions
ReliableSpace
SuperiorStorage
CityCube Storage
AccessPoint Self Storage
KeepSafe Storage
FlexiStore
SpaceSavers

Remember, the list above inspires your creativity in creating a unique and original name that is not already used by another business and is available for registration.

For this important step, see How to Choose a Business Name.

6. Register Your Company

Registering your self storage business is a vital step in establishing and operating your venture legally and responsibly. Here’s an overview of its importance, considerations, and the permits and licenses to consider:

Importance of Registering:

Legitimacy: Registering your business provides legal recognition, giving it credibility and establishing its legitimacy.
Compliance: Registration ensures that your self storage business adheres to local, state, and federal laws and regulations.
Business Name Protection: Registering your business name offers protection against others using the same or similar name in your industry.
Access to Benefits: Registered businesses may be eligible for certain benefits, such as tax deductions, grants, or business loans.

Considerations for Registration:

Legal Structure: Determine the appropriate legal structure for your self storage business, such as a sole proprietorship, partnership, LLC, or corporation.
Business Name: Choose a unique and memorable name that complies with naming guidelines and doesn’t infringe upon existing trademarks.
Entity Registration: File the necessary paperwork with the appropriate government agency, typically the Secretary of State or a local business registration office.

Permits and Licenses to Consider for a Self Storage Business:

Business License: Obtain a general business license to operate legally within your jurisdiction.
Zoning and Land Use Permits: Ensure compliance with local zoning regulations and obtain necessary permits for the chosen location.
Building and Construction Permits: Secure permits for construction or renovation projects, including structural modifications and fire safety measures.
Occupancy Permits: Obtain approval for occupancy and compliance with building and safety codes.
Environmental Permits: If applicable, acquire permits related to waste management, hazardous materials, or environmental impact assessments.

Note: The required permits and licenses may vary depending on your location. It’s crucial to consult with local authorities and professional advisors to ensure full compliance with all applicable regulations.

See, How to Register your Business for more.

7. Create Your Corporate Identity

A Corporate ID, also known as corporate identity, is a design that visualizes your self storage business. It plays a crucial role because you want to make a positive first impression on potential customers.

Having a consistent and professional design helps establish credibility and professionalism. It communicates your brand values and creates a cohesive visual identity for your business. A well-crafted Corporate ID can help attract and retain customers by building trust and recognition.

A Corporate ID consists of various components such as your logo, business cards, website, stationary, business sign, promotional items, etc.

Consider the following elements for your Corporate ID:

Logo: Design a memorable and visually appealing logo that represents your brand.
Color Palette: Choose a harmonious color scheme that reflects your business’s tone and personality.
Typography: Select fonts that align with your brand image and are easily read.
Visual Elements: Use consistent graphics and imagery to enhance your brand’s visual identity.

See A Complete Introduction to Corporate Identity Packages for more.

8. Writing a Business Plan

A Business Plan is a vital document for your self storage business. It serves multiple purposes, including acquiring funding and attracting investors. Additionally, it acts as a roadmap to guide you through the startup phase and daily operations.

Writing a comprehensive business plan requires time and careful consideration as you envision the future of your business. It’s an opportunity to express the details and intricacies of your operation.

The effort invested in creating a business plan is worthwhile. Once completed, it clearly outlines the steps to start and operate your self-storage business effectively.

When developing your business plan, remember that you have options available:

Writing from scratch
Hiring a professional
Using a template
Utilizing business plan software

Regardless of the approach you choose, active participation is crucial. This ensures that your business plan stands out and effectively communicates the nature of your self storage business.

Keep in mind that your business plan is a dynamic document that can be optimized and modified as you gain experience.

Regularly reviewing and making necessary adjustments is advisable to align it with the evolving needs of your business.

By creating a well-crafted and adaptable business plan, you can lay a solid foundation for your self storage business and set yourself up for success.

SAMPLE Business Plan for a Self Storage Business

Executive Summary:

This business plan outlines the objectives, strategies, and financial projections for XYZ Self Storage, a new self-storage facility based in Anytown, USA. The company aims to provide clean, secure, and easily accessible storage units for both individual and business clients.

Company Description:

XYZ Self Storage is a new venture dedicated to providing a range of storage solutions. We plan to offer a variety of storage unit sizes, as well as amenities such as climate-controlled units, vehicle storage, and sale of packing and moving supplies.

Market Analysis:

The self storage industry in the USA is growing due to factors like urbanization, downsizing by baby boomers, and growth in the housing market. Anytown, with its growing population and robust small business sector, presents an opportunity for our business.

Market Segmentation:
- Residential Customers: Those who need storage due to moving, downsizing, or seasonal storage needs.
- Business Customers: Businesses needing space to store records, equipment, or inventory.
Competitive Analysis:
- There are a few storage facilities in Anytown, but none that offer the combination of services, quality, and convenience that we plan to provide at XYZ Self Storage.

Organization and Management:

XYZ Self Storage will be a Limited Liability Company owned by [Owner’s Name(s)]. The day-to-day operations will be handled by a facility manager, with additional staff as required for customer service and maintenance.

Services:

We will offer self-storage units of various sizes, including options for climate-controlled units and vehicle storage. We will also sell moving and packing supplies. We aim to differentiate ourselves through top-tier customer service, well-maintained and secure facilities, and convenient access hours.

Marketing and Sales Strategy:

Marketing Strategy: We plan to leverage both online and traditional marketing channels. This includes SEO and PPC advertising, social media promotion, local print media ads, and community engagement through sponsorship of local events.
Sales Strategy: Our focus will be on delivering exceptional customer service to drive word-of-mouth referrals. We’ll also offer incentives such as discounts for long-term contracts or customer referrals.

Financial Projections:

The financial goal for XYZ Self Storage is to achieve steady growth in rental occupancy and sales, reaching profitability within the first two years of operation.

Start-Up Costs: Estimated between $1,667,000 and $2,840,000.
Projected Monthly Revenue: Estimated between $21,000 and $42,000.
Projected Monthly Expenses: Estimated between $10,500 and $20,700.
Monthly Profit: Estimated between $10,500 and $21,300.

Funding Request:

We are seeking an initial investment of $X to cover land acquisition, construction costs, and operational expenses for the first year. This funding could come from a combination of owner’s equity, bank loans, or potential investors.

Exit Strategy:

If the need to dissolve the business arises, assets such as land, buildings, and equipment can be sold. Additionally, the business could be sold to a larger storage company or other interested party.

Conclusion:

With a comprehensive understanding of the market, a dedicated team, and a strong marketing strategy, XYZ Self Storage aims to provide an exceptional service to Anytown’s residents and businesses. Our business model and financial projections indicate a promising opportunity for success and growth.

This sample business plan serves as a guideline and may require adjustments based on your local market, specific business model, and personal business goals. Always seek professional advice when creating a business plan.

For information on creating your business plan, see, How to Write a Business Plan.

9. Banking Considerations

When operating a self storage business, choosing a nearby bank that specializes in serving business owners is beneficial. Consider the following points regarding banking for your business:

Business Account:

A dedicated business account allows you to separate business expenses from personal finances, simplifying expense tracking and providing tax audit documentation.

Professional Relationship:

Building a professional relationship with your banker is advantageous. They can assist, advice, and expedite loan processes if you require self-storage business funding.

Merchant Account:

Applying for a merchant account enables you to accept customer credit and debit card payments. This adds convenience and expands payment options for your clients.

Banker Relationship:

Cultivating a strong relationship with your banker can streamline setting up a merchant account and ensure smooth communication regarding banking needs.

By selecting a bank that understands the requirements of business owners and establishing a professional rapport with your banker, you can access essential financial services and support for your self storage business, such as business accounts, merchant services, and potential funding opportunities.

For more, see, How to Open a Business Bank Account. You may also want to look at, What Is a Merchant Account and How to Get One.

10. Getting the Funds for Your Operation

When starting and operating a self storage business, securing funding is a crucial step. Consider the following aspects:

Funding Options:

Explore various funding sources such as traditional lenders, private loans, investors, selling existing assets, or utilizing collateral.
Research government grants or small business programs that may offer financial support specifically for self storage businesses.

Meeting with a Loan Officer:

Prepare for meetings with loan officers by considering the following:
- Clearly articulate your business plan, including market analysis, financial projections, and growth strategies.
- Highlight your experience in the self storage industry or relevant business management expertise.
- Demonstrate your commitment by showcasing personal investment in the business.
- Be prepared to discuss collateral options and potential repayment plans.

Sample List of Documents for a Business Loan Application:

Business plan, including market analysis, financial projections, and growth strategies.
Personal and business financial statements.
Tax returns for the previous years.
Proof of collateral, such as property deeds or equipment valuations.
Legal documents, including licenses, permits, and registrations.
Resume or portfolio highlighting relevant experience.

Understanding your funding needs, exploring various options, and preparing a comprehensive loan application will increase your chances of obtaining the necessary funds to start and operate your self storage business successfully.

See, Getting a Small Business Loan for more.

11. Software Setup

When running a self storage business, the right software is crucial for efficient operations. Here are some key points to keep in mind:

Software Considerations:

Research software options before committing, as it is easier to implement a program from scratch rather than switch systems after your data is already in another program.
Look for software demos and read reviews and forums to gather insights from others using the software.
Research accounting software options for tracking expenses and preparing financial documents for tax filing. Consulting with a bookkeeper or accountant can guide you in choosing the best accounting software for your business.

Software Used for a Self Storage Business:

Management Software: Specifically designed for self storage businesses, these programs help streamline tasks like tenant management, unit reservations, and billing. Examples include SiteLink, Yardi, and storEDGE.
Accounting Software: Simplify financial management with software like QuickBooks, Xero, or Wave, allowing you to track expenses, generate invoices, and manage payroll efficiently.
Security and Access Control Software: Implement software solutions like PTI Security Systems, Janus International, or Easy Storage Solutions to monitor facility access, security cameras, and gate control.
Online Rental and Reservation Platforms: Utilize platforms like SpareFoot, SelfStorage.com, or StoragePug to enable online rentals and reservations, expanding your reach to potential customers.

12. Get The Right Business Insurance

When seeking insurance coverage for your self-storage business, addressing specific concerns is important to ensure adequate protection. Consider the following:

Insurance Considerations for a Self Storage Business:

Property Coverage:

Protecting your physical property, including storage units, office space, and equipment, against risks such as fire, theft, or natural disasters.

Liability Coverage:

Safeguarding against potential claims or lawsuits from customers, employees, or visitors who may suffer injury or property damage on your premises.

Customer Belongings Coverage:

Providing insurance options for customers to protect their stored belongings, either through offering coverage directly or recommending third-party insurance providers.

Business Interruption Coverage:

Considering coverage to mitigate financial losses in the event of unexpected disruptions, such as a fire or natural disaster, that temporarily halt business operations.

Workers’ Compensation:

Ensuring coverage for employees in case of work-related injuries or illnesses, providing medical expenses and lost wages.

Professional Liability Insurance:

If offering additional services such as packing, moving assistance, or document shredding, obtaining professional liability insurance to protect against claims of negligence or errors.

Home-Based Business Considerations:

Informing your home insurance agent if you plan to operate or manage your self storage business from your home, as it may affect your existing home insurance policy.

Consulting with a competent insurance broker who specializes in commercial insurance can guide you through the process and help identify the appropriate coverage options tailored to your self storage business’s unique needs.

For more, see What to Know About Business Insurance.

13. Physical Setup

Layout:

The physical setup or layout of a self storage business plays a crucial role in providing a functional and accessible space for customers to store their belongings securely.

It strategically organizes storage units, driveways, and access points to optimize convenience and efficiency.

You will want to consult with a professional to ensure the layout of self storage operation is laid out in a way to maximize units. At the same time, it’s convenient for customers to store their belongings.

Signage:

Setting up signage is essential for a self storage business.

Besides installing your main business sign, it is important to add signs to all relevant locations, such as parking lots, exits, and special areas. Well-designed signs guide people, direct them to specific areas, and demonstrate professionalism in your operation.

Office Setup:

Managing your self storage business will take up most of your time in the office. Therefore, having an organized office is crucial to increase productivity and efficiency.

Your office should be fully equipped with everything you need to manage your business effectively, including necessary furniture, computer systems, storage for paperwork, and office supplies.

A well-equipped and well-organized office enables you to handle customer inquiries, administrative tasks, financial management, and other essential operations smoothly and professionally.

See, Here are Considerations for The Setup of Your Office, for tips and ideas to make your office work for you. Also, have a look at our article About Company Signs.

14. Creating a Website

Having a website for your self storage business offers several benefits. It serves as a virtual storefront, allowing potential customers to find and learn about your services online.

A website provides convenience and accessibility, allowing customers to reserve units, make payments, and access information anytime. It enhances your credibility and professionalism, showcasing your business in a competitive market.

Additionally, a website enables effective marketing, reaching a broader audience and promoting your unique features and offerings.

Overall, having a website boosts visibility, customer engagement, and growth opportunities for your self storage business.

For more, see How to Build a Website for Your Business.

15. Create an External Support Team

Building an external support team of professionals is crucial for your self storage business. These experts provide valuable advice and services without being part of your payroll.

Ideally, you can engage them to peruse, contract, or hourly. While you may already work with some individuals, recognizing them as part of your team helps acknowledge their significance and encourages adding more members over time.

You don’t need to assemble the entire team before starting, as building professional relationships takes time. However, it’s important to continuously work on expanding and strengthening your team.

Your support team may include an accountant, lawyer, financial advisor, marketing specialist, technical advisor, consultants, and more. Having a strong team of professionals ensures you have reliable support whenever you need their expertise.

For more, see, Building a Team of Professional Advisors for Your Business.

16. Hiring Employees

At the early stages of your self storage business, it may be feasible to operate independently without hiring employees. This approach helps minimize payroll expenses, particularly during the initial phase.

However, managing and operating everything single-handedly may become challenging as your business grows. Hiring employees can significantly enhance productivity and efficiency, provided you select the right individuals for the job.

The following are job positions or outsourced services you may want to consider as your self storage business grows and becomes successful:

Facility Manager: Responsible for overseeing daily operations, customer service, and facility maintenance.
Customer Service Representative: Assists customers with inquiries, unit rentals, payments, and issue resolution.
Maintenance Technician: Handles repairs, maintenance, and upkeep of the storage facility and units.
Sales Representative: Focuses on attracting new customers, conducting tours, and promoting the facility’s features and benefits.
Marketing Specialist: Develops and implements marketing strategies to increase brand visibility and attract potential customers.
Accounting/Bookkeeping: Manages financial records, prepares invoices, tracks expenses, and ensures accurate financial reporting.
IT Support: Provides technical assistance for computer systems, software, and website maintenance.
Security Personnel: Ensures the safety and security of the premises, monitoring access and surveillance systems.
Cleaning Staff: Maintains cleanliness and hygiene throughout the facility.

As your self storage business grows, considering these positions and services can help you manage operations more effectively and efficiently.

For more, see, How and When to Hire a New Employee.

Points To Consider

Getting Customers Through The Door

Attracting customers is essential for the success of your self storage business. Initially, it can be challenging as your operation is new and unfamiliar to people. However, as time passes and you build a good reputation, attracting customers becomes easier.

To gain traction in the early stages, I recommend reading the following article that provides ideas on how to get customers through the door for a new business.

Implementing effective marketing strategies, creating awareness in the local community, and leveraging online platforms can help increase customer visibility and drive traffic to your self storage facility.

As you gain experience and establish a solid reputation, word-of-mouth referrals, and positive customer reviews will attract new customers.

Continuous marketing efforts and excellent customer service will help you build a loyal customer base and ensure the success and growth of your self-storage business.

See our article How To Get Customers Through the Door; you’ll find a few ideas you can use.

Marketing Ideas

Marketing your self storage business is a continuous endeavor that yields increased revenue. While you can engage a marketing agency or expert, it is not always necessary. Simplify the marketing process by raising awareness about your business whenever opportunities arise.

Bringing awareness to your self storage business can be achieved through various strategies and tactics. Investing time and effort in effective marketing techniques can attract more customers and boost your revenue.

For ideas and insights on bringing awareness to your self storage business, refer to our marketing section, where you can find articles that offer valuable tips and techniques.

These resources will help you develop effective marketing strategies and enhance your overall marketing efforts to drive success in your self storage business.

See our marketing section for articles that will provide ideas to bring awareness to your self storage business.

Skill Set:

Focusing on your skill set and evaluating if you possess the necessary abilities is crucial when running a self storage business. Recognize any skill gaps and determine whether to acquire the skills through learning or by hiring someone with expertise in those areas.

Essential Skills for a Self Storage Business Owner:

Customer Service: Providing exceptional service and building positive customer relationships.
Organization: Managing inventory, paperwork, and operational tasks efficiently.
Communication: Effectively communicating with customers, employees, and suppliers.
Financial Management: Handling budgets, tracking expenses, and ensuring profitability.
Marketing: Promoting the business, attracting customers, and implementing effective marketing strategies.
Problem-Solving: Resolving customer issues, addressing operational challenges, and making informed decisions.
Time Management: Prioritizing tasks, managing schedules, and maximizing productivity.
Adaptability: Being flexible and responsive to changing market demands and customer needs.

Hours of Operation to Consider for a Self Storage Business:

Weekdays: Generally, operating from Monday to Friday during standard business hours.
Weekends: Offering limited hours on Saturdays and Sundays to accommodate customers’ access needs.
Extended Hours: Providing extended access hours during weekdays or weekends to cater to specific customer requirements.
24/7 Access: Offering round-the-clock access for customers who require constant availability of their stored belongings.

Selecting the appropriate hours of operation depends on your target market, customer preferences, and operational feasibility for your self storage business.

Equipment

Here’s a list of equipment you may need to run a self-storage business:

Storage Units: The main component of any self-storage business, these should be secure and in a variety of sizes to cater to different customer needs.
Security Equipment: This includes CCTV cameras, burglar alarms, security lighting, and access control systems such as electronic gates and keycard systems. Some businesses also invest in on-site security staff and live-in managers.
Office Equipment: Computers, printers, fax machines, telephones, and point-of-sale systems for processing payments and managing customer accounts.
Moving Equipment: Carts and dollies to assist customers in moving items to and from their units.
Maintenance Equipment: Cleaning supplies, power washers, paint and brushes, landscaping tools, snow removal equipment (if in a region with snow), and other tools necessary for regular upkeep and repair.
Climate Control Systems: For facilities that offer climate-controlled units, HVAC systems are necessary to maintain temperature and humidity levels.
Packaging Supplies: Items like boxes, bubble wrap, tape, and locks for sale to your customers.
Furniture: Desks, chairs, filing cabinets, and other furnishings for the main office where customers will be served.
Vehicles: Depending on the size of your facility, you may need a vehicle to get around the property. In some cases, a company van for moving large items could be useful.