A good entrepreneur knows what businesses to get involved in and which ones to pass on. You’ve hunted for the perfect business investment for a while now.
The self storage market has exploded in the United States over the past few years. Market analysts say the annual industry revenue comes to almost $40 billion!
But, how do you run a self-storage business and make profits? How do you make sure to start out on the right foot?
Don’t worry, we put in a ton of legwork and came up with our best tips to help you build a self storage business plan. Keep reading to learn everything you need to know before dive into the self storage market.
Starting From Scratch or Taking Over an Existing Business?
Before you start working on your business plan. you’ll need to know where your starting point is. A business plan for a brand new facility looks different than a business plan for a pre-owned facility.
For a new storage building, you’ll need to consider everything involved with the construction. Include any permits, regulations, and zoning laws in your business plan so those issues can’t surprise you later.
For those who want to bolster their knowledge in the self storage business, consider looking for a seminar, self storage academy, or business course to get you headed in the right direction.
Building a Great Self Storage Business Plan
Once you’re ready to start hashing out your business plan, gather all the information you need and get comfortable. These are the main components of any storage business plan.
- Mission/Vision Statement
- Structure of Company Ownership
- Business Structure (i.e. LLC)
- Staff Job Descriptions and Responsibilities
- Analysis of Any Business Strengths, Weaknesses, Possible Opportunities, and Potential Threats
- Market and Competition Analysis
- Marketing and Sales Plans
- Menu of the Products and Services Your Company Offers, Including the Unit Sizes
- Pricing Plans
- Sources of Business Capital
- Revenue and Expense Projections Spanning Several Years
If you get stuck, you can hire a business analyst to look at what you have and give you tips for improving your business plan. The key to success is setting yourself apart from the other 30.7 million small businesses in the United States.
Finding Financing for Your Venture
After you have an air-tight business plan nailed down, you can take that plan and bring in investors. If you did the business plan well, they should have no trouble seeing why they should join you in a business partnership.
If you have a sloppy or incomplete business plan, then no one will want to trust you with their money. Also, know that how you present the offer matters too. Many investors choose to invest in the person rather than the company.
An Investment in Knowledge Pays Out the Most Interest
Over the past few years, the self storage market has skyrocketed in popularity. Between people downsizing their homes and trying to store their clutter outside of their homes, it seems like everyone wants to rent a good storage unit!
But, even though this kind of business seems easy to run, you can fail. To have the best shot as a successful storage business is to have a well thought out business plan to back it up.
We hope you enjoyed reading this article and that you learned a few things about building a self storage business plan. If you have questions about this article or self storage investing, contact us today!