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The storage industry is booming all over the country. Savvy business investors realize the demand for self-storage in cities and small towns everywhere.

Before you dive headlong into a commitment to build or buy a storage unit business, there are several important considerations to know and understand. 

If you plan on taking on this endeavor, you'll need intensive pre-planning before starting. First, determine what type and size of business you want to own. Knowing your budget can also help guide your decision-making process. Consult with experts to find out how to start a storage business and determine critical elements to address. 

Remember that self-storage business profit is only substantial if adequate self-storage business models are in place. Part of creating a successful business is choosing the correct business model and implementing each facet of your business, scaled to fit your endeavor and carefully crafted to reduce issues and risk. 

When choosing your ideal business model, some considerations include the location, size of the storage facility, demand, and competition. Self-storage business models vary depending on these and other factors, so be sure to give it some thought and research before moving forward. 

You must also know the pros and cons of owning storage units. There may be more pros in your situation, but the cons must also be kept in mind and become a part of your business plan. Once you're well-informed on the storage unit business, have a solid business plan, and prepare for both pros and cons, you can move on to the building or acquisition phase.

This portion of your business endeavor also requires research and planning.

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The more information you have in advance, the easier to make decisions. You'll also be able to prepare for any setbacks, delays, or other issues.

How Much Does It Cost To Start A Self Storage Business

So, how much does it cost to start a self-storage business?

You can break the figure down a few ways. You may want to know how much does it cost to build 100 storage units, or you may want to figure the 10x10 storage unit cost to build. A storage unit building calculator is the best way to get a more precise number. 

Once you understand the approximate cost, you can determine if you want to build or decide to buy a storage unit business for sale in your price range and locale. Include the cost in your self-storage business plan. You can create your business plan in a standard method to present to any organizations or financial institutions providing you with money to build or buy. 

Some key elements to know when calculating your cost to get started include the following.

  • Acquiring property
  • Labor costs
  • Equipment rental
  • Cost to ship materials
  • Taxes and permits

Of course, this is just a basic overview of some most common costs. You may have more depending on where you live, your type of storage unit, and more. 

Consider consulting with your contractor or someone familiar with the storage unit business to get input and advice on calculating expenses and preparing for unexpected costs that may pop up during the acquisition or building process. 

Running a few different scenarios when it comes to cost can prove beneficial and show you where there may be variances taking into consideration extra cost and delays. 

Annual Income Owning Storage Units.

Many people want to know, is owning a storage unit business profitable? In short answer, yes. However, that answer is subjective and requires adequate research for your business endeavor before deciding.

Calculating annual income owning storage is easily achieved with a basic formula.

The average income for most storage unit businesses is $184,000 per 50,000-square-foot facility. To calculate your business, multiply the average figure of 50,000 by the average rental profit per square foot, which gives you $184,000. You'll arrive at a figure of $450,000, and then you'll need to subtract the 41% average annual profit margin. This calculation can also be broken down when you divide by 12 to find out how much storage units make a month. 

Remember that this is a basic estimate, and your profit hinges on various aspects of your business, including the following.

  • Marketing
  • Location
  • Population density
  • Average rent rates for the area
  • Size of the facility
  • Specialties (boats, Climate control for collectors, etc.)

You can also use a storage unit income calculator. This can answer how much it costs to start a storage unit business and how much it costs to build 100 storage units, for example. They can be quite handy when you need to calculate several different figures or variances in your business plan. 

If you need to raise capital, you may want to research how to start a storage unit business with no money. You'll also need a solid, professional business plan to present for consideration.

There are instances where you can secure property already in place with no money upfront. Another positive aspect of owning a storage unit business is that may be some tax breaks. Inquire as to what are tax benefits of owning storage units.

Self-Storage Business Model.

There are a few storage unit business models that are common in the industry. An example of a widely used self-storage business model would be a simple, non-climate-controlled storage unit with basic security features like a keypad entry gate, minimal security personnel, and the capability to pay, rent, or communicate with management from the online platform or app. These storage spaces are popular with people with few items or who are cost-conscious. 

Another example would be a highly tech-enabled, climate-control storage unit with significant security and safety features for people who store their collectibles. If you want to cater to a niche market of this type, your profits will be greater than the average storage unit facility, but you need to address many facets of your business, such as the cost of the technology you use, online interfaces, security entry features, insurance, and automation. 

Yet another example of a business model would be a multipurpose storage unit facility that offered both basic non-climate-controlled storage spaces and climate-controlled spaces of varying sizes. This particular business model tends to be the most popular in suburban areas across the country. One reason people use non-climate-controlled space in a multipurpose storage property is these facilities tend to have better security and more amenities than basic storage facilities on a smaller lot with basic services. 

When you're crafting your self-storage business model, be sure to use a self-storage business plan template to stay organized and help you address the most important aspects of your self-storage business model. These templates help you stay on track and look more professional. 

Self-Storage Marketing Plan.

A solid self-storage marketing plan can make or break a storage unit business.

It's not enough to simply buy or build your business. You need a marketing plan that takes into consideration several factors that, include your type of storage facility.

Do you cater to a special crowd or niche? Do you have tons of competition in your area? Do you have anything unique to offer? Add to those considerations how you plan to attract your initial customers with deals and offers. Highlight those and include several forms of media and advertising strategies that include these avenues. 

These are a few examples of a few of the many ways to reach your target audience. Include as many of these avenues as possible to get the most attention. Your self-storage marketing plan should also include a tech-enabled ad management platform. 

Choosing to work with marketing companies that offer the most effective and advanced methods of advertising can help tremendously. Companies like Adverank allow you to create and propel a robust pay-per-click advertising campaign on Google that gets results. 

It's worth the initial investment to get started off on the right track when it comes to your marketing campaigns. You'll need to generate as much visibility and interest as possible right away to fill up your storage units and create demand for your spaces. 

How We Can Help You Get Started.

If you're ready to get started as an owner of a self-storage unit facility, we can help you. Adverank has a highly knowledgeable team to craft a customer advertising campaign that harnesses the power of Google to deliver incredible results. Not only does this service work to generate your initial clients, but it also helps you keep your storage units filled year-round. 

If you would like to work with an industry leader in pay-per-click advertising, now is the time to reach out to Adverank. One of our helpful staff can provide you with more details and answer your questions. You can also sign up for a demo of our service to see if it is right for you. Let us help you propel your business to success right away and maintain traction over the coming years.