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Build Self Storage And They will Come, Or Will They?

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Build Self Storage And They will Come, Or Will They?

At face value, having the idea to build self storage units seems like a licence to print money, but it is not quite that simple. The self storage business is more complex than that!

Of course, you don’t have many issues that other businesses must concern themselves with, such as ordering and managing a product range and spoilage, but if you are going to build self storage, you must be sure there is a demand for it and that’s where you need professional help.

Clever advertising and competitive prices might work to sell some products that are more about want than need, but they won’t work if you build self storage where there is no real need or demand. Slow let up could cost you dearly.

Build Self Storage And They will Come, Or Will They?

You may think ‘if I build it, they will come’ but if people don’t have possessions to store, or have enough space to store things at their home or business, they won’t need what you have to offer and they won’t be interested in paying for it. This is a business and like any business, if you plan to build self storage, you need to do your homework first.

If you are to build self storage units, one of the first questions you need to answer (or get expert help to do so) is whether you will generate enough income to cover your investment and give you a profit – or whether you should invest in something else!

It seems a simple question with what should be a simple answer but it’s the most important one before you go too much further with your plan. Feasibility is the key.

However, in order to answer that question, you need to do your homework on several considerations first. They are:

If you are to build self storage, how much can you expect to earn from rent?, how much will it cost you to build a  self storage facility and operate it, how much profit do you need to make a good return on your investment, and what is your long-term goal for this investment?

You will need to check what your competition is doing before you can answer these, and certainly well before you start to build self storage units, because that knowledge will help you decide whether or not to go ahead.

If you build self storage that is more attractive or more convenient than your rivals, you may attract their customers to your site and you may be able to charge a bit more than the competition, but you need to remember that people want convenience most of all, so your facility needs to be close to homes, or major roads that those potential customers use on a regular basis.

Having said that, while you may build self storage that is more attractive than the opposition, just because you have built it, the customers may not come, so make sure you do all your homework first.

You will need to have a mix of different sized units when you build self storage sites, and that mix will depend on your demographic. Are you planning to build self storage in a predominantly residential area, or an area with lots of commercial outlets? You will need different sizes to suit those different needs.

Once you know what your unit mix will be, you will have a better idea of your costs and your potential income – and, hopefully, your potential profit. Of course, when you build self storage, you cannot expect to have 100 per cent occupancy 100 per cent of the time, so you will also need to factor that into your calculations.

Again, while you can do a lot of the investigative research yourself, a really good investment before you build self storage is the investment of talking to the experts in the industry first, Steel Storage has the experts who can help with feasibility, design and council submissions. And they can build it!

See us at Storage Expo 2016 on the Gold Coast 25th to 26th February 2016.