Mini self storage units.
Starting a mini self storage business can be as complicated as you make it. However, there are ways to make the process very simple. Setting up shop includes having a strong plan and a viable location. The following information will help you get started.
Instructions
1. Know the business. The mini-storage business involves a bit more than simply renting out storage units to people in need of space to keep their belongings. There are some basic legal, real estate, construction and other matters that must be considered and understood before you simply throw up some buildings or buy some storage units. It is, therefore, recommended that you pick the brains of those already successful. If you currently have industry experience, then you are likely off on the right foot.
2. Familiarize yourself with your market. This is important as it will help you determine if there is enough potential business to accommodate another self-storage company in your area. It will also help you determine how big your company needs to be in order to be profitable. Set up shop in an area where demographics will produce business for you, such as near apartment complexes, airports, or in college towns or areas with a lot of traffic.
3. Draft a business plan that includes a budget. Opening a mini self storage company will likely involve some up-front capital to get started. $100,000 or more is not uncommon, especially if you're building from the ground up. A business plan will help you realize your vision as it will detail what needs to be done and how much it will cost you. Your business plan should include how you plan to run your company such as your rates, which forms of payment you will accept, collect on unpaid rent and a solid accounting system.
4. Decide what types of units you will rent. Some things in need of storage must be kept at certain temperatures and in specific spaces. Generally speaking, renting out a dusty garage to a furrier in need of storing excess inventory would likely result in damaged items. Talk to a contractor about building the proper units or have them installed from a wholesaler. There many construction companies that specialize in building such structures.
5. Know your collection rights in terms of dealing with unpaid rents. It is common for mini-storage owners to have the right to auction off items belonging to deadbeat clients. However, this needs to done according to the law. Never attempt to sell the contents of an unpaid unit until you've properly posted notices of public auction in the local newspaper. Contacting an attorney is, therefore, wise.
6. Begin prospecting for business. Mini self storage companies get business from all walks of life, depending on what types of storage units they offer. A good way to start marketing is to buy small classified and display ads in newspapers and contact people in your immediate area. Mini storage companies also commonly grow by word-of-mouth, especially among corporate sectors.
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