Building Your New Self-Storage Facility
Throughout the years, self-storage has proven itself to be one of the number one real estate investments globally. Think about this… there are over 50,000 self-storage facilities in the United States alone, and the majority of people who have invested in self-storage find it to be one of the most efficient and reliable business opportunities because it is more stable with lower overhead than many other commercial real estate investments. So what’s stopping you from entering into the highly profitable world of self-storage? Here are six reasons to consider when contemplating whether to build or invest in your very own self-storage facility (and a few tips for building as well!)....
Self-storage grows rapidly each year. The most substantial growth we’ve seen so far began in the early 2000s when the demand of properties doubled in size from one billion square feet to two billion square feet in just five years. There is over at least $500,000 in revenue for each of these blooming facilities. It’s obvious that there is most definitely a remarkable demand for self-storage. Whether you want to proceed with investing in your own small development or want to construct a series of locations in a broader, competitive area, the industry is without a doubt not declining any time soon.
Outline Your Goal
When building your facility you want to have a well-structured goal before proceeding. You might consider where you want your facility to be located, a well-designed blueprint or layout, the estimated expense to start, and what it’s going to take to maintain and preserve your self-storage facility. Having a realistic goal for your business will make it much easier to get started. It wouldn't be the best idea to walk into something without having a sufficient goal first.
Financial Support & Tax Fees
Most likely when starting a business from scratch, you’re going to need some type of financial support. In order to do so, you need to make sure you have a clear business plan as well as an elaborate standing on your financial information. Be prepared to answer questions they may have for you. They may ask you some of the following:
- What is your funding requirement and how much money will you need?
- What do you intend on using the funding for?
- What is your plan for the next five to ten years?
- Will this business be used to sell and pay off any financial debts?
It’s necessary to have a strategic plan to support your financial needs. You may not even need any financial support, but it is clever to at least have a layout of what the costs for your business will look like to prepare your future business. Also, you need to make sure that you’re properly registered with relevant tax and legal regulations. It would be a great idea to do some research on both Federal and State licenses before you proceed. In order to make sure everything is done correctly, it wouldn’t be a bad idea to hire an attorney who specializes in tax regulations for small businesses.
When considering your layout, be sure to include nice shrubbery, working lights and signs, a visible logo, check for any water leaks, be free of any rodents or insects, and also have a spotless environment. You want your customers to feel more at home and not have to worry about their belongings being damaged or ruined. Curb appeal will make or break your business. You don’t want to receive bad reviews or scare away any potential customers.
Security and Safety Precautions
Customers want to know that not only are they being protected, but are their valuables safe as well? Having installed cameras and security throughout the perimeter of your facility will ensure your customers a safe environment. Not only should you make your cameras visible so people are aware of security, but you should also hide them on places like dumpsters, light poles, or anywhere you feel someone won’t tamper with your cameras. Also, it wouldn't hurt to have a smart entry system for your business making your and your customer's experience a whole lot easier! The smart entry system is a Bluetooth activated lock that works right from your cell phone to open the security gate and the storage units!
Reaching Out to Potential Customers
Once you get your business up and running, the next task you need to focus on is how to attract customers to your business. First, you should start a well-organized website including information regarding the facility, have a contact number, pricing information, and any additional information you would like to incorporate on your website for your customers. Furthermore, once you have a well put together website, it’s time to reach out to potential customers. You could do this in numerous ways, from using social media to sending out flyers or mail-outs. When you’re thinking about how to reach out to customers think about the following:
- How you are going to respond to inquiries
- Make sure whoever answers the phone has great communication skills along with knowledge about the storage units and facility
- If a potential customer calls, be sure the person who is answering phone calls is also up to date with accurate pricing, availability of the units, etc.
Not having an employee who is aware and knowledgeable about your facility will often tend to drive customers away seeking a more superior facility to use instead.
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