storage building business plan

Self Storage Business Plan Template

Written by Dave Lavinsky

Self Storage Business Plan

You’ve come to the right place to create your Self Storage business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Self Storage companies.

Below is a template to help you create each section of a storage unit business plan.

Executive Summary

Business overview.

Secure Self Storage is a startup self storage company located in Nashville, Tennessee. The company is founded by Bill Williams, an experienced self storage manager who has been working in the self storage industry for over a decade. Bill has recently earned a bachelor’s degree in Business Administration. Now that Bill has obtained the education and experience that will allow him to successfully navigate the process of starting a business, Bill is ready to open his own company, Secure Self Storage. Bill plans on recruiting a team of highly qualified professionals to help manage the day to day responsibilities of running a successful self storage facility – marketing, security, maintenance, accounting, and rent collection.

Secure Self Storage will provide a convenient, safe, and secure self storage solution for anyone in the Nashville area who needs to store their belongings. Secure will ensure that every storage need of the customer is being met. Secure Self Storage will be the ultimate choice in Nashville for self storage solutions while being the best-priced company in the area.

Product Offering

The following are the self storage solutions that Secure Self Storage will provide:

• Small Storage Units (5×5)
• Medium Storage Units (10×10)
• Large Storage Units (10×25)
• Vehicle Storage Units
• Temperature Controlled Units
• Extra Security Units
• Pickup & Delivery Services
• Disposal Services

Customer Focus

Secure Self Storage will target adults 18 years old and over in Nashville who need a storage unit for any reason such as moving, decluttering, doing home renovations, or those who need storage for business, college, or to store an automobile. No matter the customer, Secure Self Storage will deliver the best communication, service, and security.

Management Team

Secure Self Storage will be owned and operated by Bill Williams. Bill has a bachelor’s degree in Business Administration and has been working as a self storage manager for another local storage facility for over a decade. Now that Bill has obtained the education and experience that will allow him to successfully navigate the process of starting a business, Bill is ready to venture out and open his own self storage company. Bill will be the owner and manager of Secure Self Storage.

Bill has recruited his peer, Ken Smith, a financial professional with a Masters degree and fifteen years of experience doing financial work for various construction companies, to be the financial manager. Ken will help manage all of the finances for the company from finding a cost-effective location to set up shop to reporting and budgeting to make sure the facility is profitable.

Success Factors

Secure Self Storage will be able to achieve success by offering the following competitive advantages:

• Self storage units are easily accessible 24 hours a day, temperature controlled, and have the latest security technology to keep customers’ belongings safe and secure.
• On-site security guards are deployed 24 hours a day to ensure belongings, customers, and employees are safe at all times.
• On-site staff to answer questions, help customers, and keep the facility clean.

Financial Highlights

Secure Self Storage is seeking $250,000 in debt financing to launch its self storage business. The funding will be dedicated towards securing the facility space and purchasing equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs. The breakout of the funding is below:

• Self storage facility build-out: $50,000
• Equipment, supplies, and materials: $20,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $15,000
• Working capital: $15,000

The following graph below outlines the pro forma financial projections for Secure Self Storage.

Company Overview

Who is secure self storage.

Secure Self Storage is a newly established high security self storage company in Nashville, Tennessee. Secure Self Storage will be the most convenient, secure, and customer-focused choice for storage unit renters in Nashville. Secure will provide a variety of self storage solutions for anyone looking for a secure storage option. The company’s customer-centric approach will include 24/7 on-site security and customer service staff, the latest security technology, and temperature controlled units.

Secure Self Storage will give customers peace of mind that their belongings are secure. The management team is composed of experienced professionals including business managers, security officers, and maintenance technicians. Secure Self Storage removes all headaches of the self storage unit renter and ensures all issues are taken care off expeditiously while delivering the best customer service.

Secure Self Storage History

Secure Self Storage is owned and operated by Bill Williams, an experienced self storage manager who has a bachelor’s degree in Business Administration from the University of Tennessee. Bill has worked for a local self storage company in Nashville for over a decade. Bill’s tenure with the self storage company combined with his education has given him the skills and knowledge required to venture out on his own and start his own company.

Since incorporation, Secure Self Storage has achieved the following milestones:

• Registered Secure Self Storage, LLC to transact business in the state of Tennessee.
• Has scouted a few location options and reached out to the owners for more information.
• Reached out to numerous contacts to include former customers to let them know about the upcoming facility.
• Began recruiting a staff of accountants, maintenance workers, security, and other facility personnel to work at Secure Self Storage.

Secure Self Storage Services

Industry analysis.

The United States self storage industry generates an estimated $39.5B in annual revenue with over 49,000 storage facilities throughout the country. The total rentable self storage space is approximately 1.9B square feet. An estimated 10.6% of U.S. households are currently renting a self storage unit. The average self storage space used per person is 5.9 square feet. The average monthly cost to rent a self storage unit is $90.

Self storage construction spending has nearly doubled in the past five years. According to the Self Storage Almanac, the market is highly fragmented with 31% of space being owned by six large public companies, 16% being owned by the next top 94 companies, and 53% being owned by small businesses. Self storage industry operators have the potential to achieve highly lucrative businesses if they manage them smartly. The average self storage company’s profit margin is around 11 percent, which is much higher than many other small businesses in other industries that are often closer to 3-5 percent.

Customer Analysis

Demographic profile of target market.

Secure Self Storage will target adults 18 years of age and older requiring self storage services in Nashville, Tennessee. The company will target people in need of storage space for a variety of reasons including moving, renovating, college, business, or to store a vehicle.

The precise demographics for Nashville, Tennessee are:

Customer Segmentation

Secure will primarily target the following customer profiles:

• People who are in the process of moving
• People who need storage space for a vehicle
• People who need storage for business
• People who need storage for college
• People who are renovating their homes

Competitive Analysis

Direct and indirect competitors.

Secure Self Storage will face competition from other companies with similar business profiles. A description of each competitor company is below.  

Nashville Self Storage

Nashville Self Storage is a temperature controlled self storage facility operating in Nashville, Tennessee. The facility has 400 units of varying sizes from 2×5 up to 30×30. Nashville Self Storage uses state of the art security systems with cameras throughout the facility to keep its patrons and their belongings safe and secure. The company currently has one facility with plans to open a second location in the next few months. The owners of Nashville Self Storage have been working in the storage industry for over 20 years and pride themselves on providing exceptional customer service.  

ALottaStuff Self Storage

ALottaStuff Self Storage is a Nashville-based self storage facility that provides outstanding service and storage solutions for its customers. ALottaStuff Self Storage takes the risk out of leaving your valuables in an unsecure storage facility by providing 24/7 secure monitoring of all of its units. They have temperature controlled units available in addition to non-temperature controlled units. Customers can depend on ALottaStuff Self Storage to handle their belongings with the best of care. The company provides pickup and delivery services for an extra fee.  

In-Boxes Self Storage

In-Boxes Self Storage is a trusted Nashville self storage company that provides superior service to customers in Nashville and the surrounding areas. They are able to provide a convenient storage solution for a wide range of customers with multiple locations throughout the city. In-Boxes Self Storage offers low prices for do-it-yourself storage facilities. Drive-up units are available for a flat monthly fee and indoor temperature controlled units are available for an additional charge. In-Boxes Self Storage maintains a clean, secure atmosphere with friendly staff available during office hours to assist with customers’ storage needs.

Competitive Advantage

Secure Self Storage will be able to offer the following advantages over their competition:

• On-site staff are available to answer questions, help customers, and keep the facility clean at all times.

Marketing Plan

Brand & value proposition.

Secure Self Storage will offer the unique value proposition to its customers:

• Experienced team of security professionals, customer service associates, and maintenance staff on-site 24/7 to help customers and keep the facilities clean, safe, and secure.
• Unbeatable pricing to its clients – Secure Self Storage offers competitive pricing with promotions and discounts for new and returning customers.

Promotions Strategy

The promotions strategy for Secure Self Storage is as follows:

Word of Mouth/Referrals

Bill Williams has built rapport with an extensive list of customers over the years by providing exceptional service during his tenure as a self storage manager. Many have communicated to Bill that they referred their friends to the storage facility because they were happy with the service he was providing. Once Bill advised them he was leaving to open his own self storage business, many contacts have committed to help spread the word of Secure Self Storage.

Professional Associations

Secure Self Storage will become a member of professional associations such as the Self Storage Association, the Nashville Self Storage Association, and Inside Self Storage. Bill will attend industry expos and events to promote the company.

Print Advertising

Secure Self Storage will have print ads and flyers made for newspapers, magazines, direct mailers, and to post around the city and hand out at industry events.

Website & Content Marketing

Secure Self Storage will create and maintain an easy to navigate, well organized, informative, website that will list all of the available storage options and pricing. The website will also contain an informative blog with storage related posts.

SEO Marketing

The company will use SEO marketing tactics so that any time someone types in the Google or Bing search engine “Nashville self storage” or “self storage near me”, Secure Self Storage will be listed at the top of the search results.

Social Media Marketing

Secure Self Storage will create and maintain an active presence across social media platforms including LinkedIn, Facebook, Instagram, Twitter, TikTok, and YouTube.

The pricing of Secure Self Storage will be competitive so customers feel they receive value when purchasing their services.

Operations Plan

The following will be the operations plan for Secure Self Storage.

Operation Functions:

• Bill Williams will be the Owner and Manager of the company. He will oversee all staff and operations. Bill has spent the past year recruiting the following staff:
• Ken Smith – Financial Manager who will provide all accounting, budgeting, tax payments, and monthly financial reporting.
• Shannon Bowman – Marketing Manager who will provide all sales and marketing initiatives for Secure Self Storage including management of the company website and social media accounts.
• Benjamin Stephens – Maintenance Manager who will oversee all maintenance of the facility.
• Micheal Brown – Head of Security who will provide all security for the facility and oversee a small team of on-site security guards.

Milestones:

Secure Self Storage will have the following milestones complete in the next six months.

8/1/2022 – Finalize contract to lease facility space.

8/15/2022 – Finalize personnel and staff employment contracts for the management team.

9/1/2022 – Begin build out of the facility.

9/15/2022 – Begin networking and marketing campaign.

9/22/2022 – Begin moving into the Secure Self Storage facility.

10/1/2022 – Secure Self Storage opens its facility for business.

Bill has recruited the help of his peer, Ken Smith, a financial professional with a Masters degree and fifteen years of experience doing financial work for various construction companies. Ken will help manage the finances for the company from finding a cost-effective location to set up shop to reporting and budgeting to make sure the facility is profitable.

Financial Plan

Key revenue & costs.

The revenue drivers for Secure Self Storage are the self storage fees that will be charged to the customers for their services. The company will charge a monthly fee for unit rentals. The fee will vary depending on the size of the unit.

The cost drivers will be the overhead costs required in order to staff a self storage facility. The expenses will be the payroll cost, utilities, maintenance costs, and marketing materials.

Funding Requirements and Use of Funds

Secure Self Storage is seeking $250,000 in debt financing to launch its self storage business. The funding will be dedicated towards securing the facility space and purchasing equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Average number of occupied units per month: 200 out of the total 500 units (40%)
• Average fees per month: $30,000 (average $150.00 per medium sized unit)
• Annual Lease on Facility: $100,000

Financial Projections

Income statement, balance sheet, cash flow statement, self storage business plan faqs, what is a self storage business plan.

A self storage business plan is a plan to start and/or grow your self storage business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your self storage business plan using our Self Storage Business Plan Template here .

What are the Main Types of Self Storage Businesses?

There are a number of different kinds of self storage business , some examples include: Portable container, Climate controlled storage, and Vehicle storage.

How Do You Get Funding for Your Self Storage Business Plan?

Self storage businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Self Storage Business?

Starting a self storage business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Self Storage Business Plan - The first step in starting a business is to create a storage facility business plan pdf or doc that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your self storage business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your self storage business is in compliance with local laws.

3. Register Your Self Storage Business - Once you have chosen a legal structure, the next step is to register your self storage business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your self storage business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Self Storage Equipment & Supplies - In order to start your self storage business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your self storage business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

Learn more about how to start a successful self storage business:

• How to Start a Self Storage Business

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Starting a Self Storage Business

Profit and opportunity analysis, how to start a self storage business.

If you've been thinking about starting a self storage business, we make it easy at General Steel. Our self storage building packages require a low initial investment, feature expandable walls so you can accommodate a variety of customers and can be easily expanded in the future. Most importantly, our self storage kits can be erected in a matter of days which allows you to get your business up and running quickly and easily.

Self Storage Business Profit Analysis

Explore the profit analysis below based on industry averages for vacancy and rental rates to uncover the opportunity that exists in the self storage business currently.

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How To Start a Storage Business

Our Comprehensive Guide to Launching a Profitable Self-Storage Rental Unit Business in 2023

We’re about to dive deep into the thriving, fast-paced world of the self storage business. 

Believe it or not, this under-the-radar sector of commercial real estate has been steadily growing, churning out a staggering $39 billion in annual revenue as of 2023, with the U.S. leading the charge. It’s a veritable gold rush, and it’s time you staked your claim.

So, you might be thinking, “That sounds great, but how do I start a self-storage business?”

Don’t worry, we’ve got your back.

In This Article

Flexible Pricing

Brand awareness, customer service, property selection, getting to grips with the landscape of the mini storage unit business, identifying the key drivers of demand when starting a self-storage business, licenses and permits, zoning laws, business structure, average occupancy and facility size, construction costs, technology and operations, revenues and profit margins, startup costs, financing options, establish a strong brand identity, build a robust online presence, implement a referral program, collaborate with local businesses, deciphering the average cost, implementing a pricing strategy, the most in-demand cities for self storage units, revenue generation, wrapping up: starting and running a successful self storage business – a recap, self-storage keys to success.

Adapt your storage unit prices to the ever-changing demand in your local market.

Integrate your company into the community and make sure residents know who you are!

Meet your customer’s needs to reduce turnover and increase word-of-mouth advertising.

Find land that is affordable, yet accessible. Work with a real estate agent to identify the best fit.

This comprehensive guide is packed to the brim with all the crucial information you’ll need. From breaking down financial projections to unraveling the complexities of operational strategies, and even unveiling insights from industry case studies, we’ve left no stone unturned.

After navigating through this guide, you won’t just understand the ins and outs of how to kick-start a storage business, you’ll be pumped and ready to plunge into your very own storage unit venture.

So, are you ready to turn the key and open the door to your future in the self storage business? 

Let’s hit the ground running!

Let’s flip the lid and take a peek at the vast expanse of the self-storage industry. Now, if you’re wondering whether there’s room for one more in this arena, let’s crunch some numbers. As of 2023, this buzzing beehive of a business is generating a hefty $39 billion in annual revenue right here in the U.S. alone. That’s no small change, my friends! And get this, the U.S. is not just playing in the big leagues, it’s practically owning the entire stadium, accounting for 90% of the global self-storage inventory.

But what about the competition, you ask? Well, there’s no sugarcoating it – the storage business is a bustling marketplace. With over 182,000 storage businesses operating nationwide, you’re certainly not alone. But don’t let that intimidate you! This number also serves as a testament to the industry’s robust nature and the vast demand for storage space.

The beauty of the storage unit business lies in its versatility. From folks looking to declutter their homes to businesses in need of extra space storage, there’s a demand across the board. And that’s precisely what makes this business such a good bet. It caters to a need that’s not going away anytime soon.

Starting a self storage business may seem like a daunting task, but with the right plan, resources, and a dash of entrepreneurial spirit, it’s a mountain you can conquer. So, are you ready to ride this wave and make your mark in the storage industry? Let’s roll up those sleeves and get down to business!

Now, let’s get down to brass tacks and look at who is driving the demand in the mini storage business. As a potential new business owner, understanding consumer demand is the compass that’ll guide your storage unit business towards success. Here’s a snapshot of the movers and shakers in the storage market:

• The Nomads: With life on the move becoming the norm, moving remains the primary reason folks seek out mini storage solutions. Be it a job relocation, downsizing, or even a gap year spent globetrotting, having a safe space to store their belongings offers peace of mind during these transitional periods. So, if you’re wondering how to start a self storage business that resonates with this demographic, consider offering flexible rental terms and hassle-free access to the storage units.
• The Space Savers: Did you know that over 1 in 5 renters in the U.S. utilize self storage units? That’s a significant market slice to cater to! From apartment dwellers looking to declutter their space to small businesses needing extra inventory storage, the demand spans across various user groups. Offering a range of unit sizes can help you cater to this diverse clientele.
• Generation X: Representing a considerable user group within the self-storage industry, Gen Xers often require storage space for myriad reasons. From moving homes to storing inherited items, their demand for storage facilities is quite robust. To start a storage business that appeals to this demographic, you might want to consider offering services like controlled storage or extra space storage.
• The Ladies: Female renters constitute another significant user group in the self-storage industry. Safety and cleanliness are often high on their priority list. To attract this demographic, focus on ensuring well-lit facilities, 24/7 surveillance, and immaculate storage units.

It’s clear as day that the storage business is not a one-size-fits-all kind of deal. The key to running a successful storage business lies in understanding the unique needs of these consumer groups and tailoring your services to meet them. And with the right approach, you could be well on your way to turning your business idea into a thriving self-storage business in 2023!

Comprehending Legal and Regulatory Essentials for Running a Self Storage Unit Business

When you’re ready to start your mini storage business, it’s crucial to get your ducks in a row when it comes to legal and regulatory requirements. It might seem like you’re jumping through hoops, but each step is essential for getting your business off the ground and avoiding potential hiccups down the line. Here’s a breakdown:

Every business, including a storage facility, requires specific licenses and permits to operate legally. Typically, you’ll need a general business license, but depending on your location and the nature of your business, additional permits may be required. For instance, if your self-storage unit business plans on offering RV storage, you might need extra permits. Remember, it’s important to register your business and open a business bank account to keep your finances in order.

Do you know the saying, “location, location, location”? Well, it’s not just about finding a spot with high demand. Zoning laws can dictate what type of business you can run in certain areas. These laws vary widely, so you’ll need to check with your local planning or zoning department to ensure your storage facilities are in compliance.

Here’s the deal: starting a self-storage business in 2023 without the right insurance policies is like walking a tightrope without a safety net. Different types of insurance, such as property insurance, liability insurance, and workers’ compensation insurance, will protect your business from potential financial losses. It’s also worth considering specialized insurance that covers customers’ belongings in storage.

Deciding on your business structure isn’t just a box to tick—it’s a decision that can impact your business in many ways, from how much you pay in taxes to your personal liability. You can choose to set up as a sole proprietorship, partnership, corporation, or Limited Liability Company (LLC). Each type of business entity has pros and cons, so it’s essential to get advice from a professional or the Small Business Administration.

Starting a storage business involves more than just renting out storage units—it requires a good understanding of the legal and regulatory landscape. However, with a little bit of elbow grease and the right guidance, you can navigate these waters and launch your business with confidence. 

Planning Facilities and Operations for Your Startup Self Storage Business

Starting a mini storage business is no small task—it requires careful planning and efficient operations management. It’s not just about having space; it’s about making the best use of that space and providing exceptional customer service. To give you an idea of what you’re stepping into, here’s a bit of data and a few considerations for you.

If you’re thinking about starting a storage company, the numbers are promising. In the U.S., the average occupancy rate for storage facilities sits at an impressive 96.5 percent.

When it comes to facility size, the average mini storage facility in the U.S. covers approximately 56,900 square feet. This doesn’t mean your facility must fit this mold—it’s just the average. Your facility size will depend on factors like location, demand, and your business plan.

When it comes to construction costs, figures can range from $1.25 million to $3.5 million. The costs can vary depending on factors like location, land cost, facility size, and construction materials.

Remember, starting a business is an investment, and the initial costs can be steep. However, with the right planning, management, and a good business loan, you can navigate these costs and set up a profitable storage unit business.

In today’s digital age, the incorporation of technology into your storage business operations is more of a necessity than a luxury. There’s a wealth of management software and online booking systems available that can streamline your operations and enhance the customer experience. Consider the following:

• Management Software : These tools can help you track your occupancy rate, manage rental rates, and handle other administrative tasks.
• Online Booking Systems : These can offer convenience to your customers, allowing them to book storage units at their leisure and streamline the rental process.
• Security Systems : High-quality surveillance systems and access control are a must for any self-storage unit business. Customers need to know that their belongings are safe.
• Website : Your business online is essential in this digital age. An intuitive, user-friendly website can help you reach more customers and provide them with the information they need about your storage services.

Starting a self storage business might seem daunting, but with the right planning and a clear understanding of the industry, it’s a journey you can confidently embark on. Remember, every business requires dedication and hard work—yours will be no exception. So, are you ready to take the leap?

Financial Aspects to Consider: From Business Plan to Small Business Loan

Money makes the world go ’round, and it certainly sets the wheels in motion for your storage business. Understanding the financial aspects, from revenues and profit margins to startup costs and financing options, is crucial. So let’s dive into the numbers, shall we?

Let’s talk earnings. The average annual revenue for a self-storage business is about $450,000, boasting a healthy profit margin of 41%.

These figures can vary based on factors like location, unit sizes, number of units, and additional services you may offer. So, while you might start a bit lower as a newcomer, with strategic planning and excellent customer service, there’s potential for growth.

The start-up cost for a mini storage business can seem a tad intimidating, ranging from $1.5 million to $2.4 million, averaging around $2 million. These figures account for land acquisition, construction, operational setup, and initial marketing efforts.

While it might seem like a lot, remember that starting a business is a significant investment. It’s about putting in the capital now to reap the benefits later.

With numbers like these, it’s no wonder you might be considering financing options. One viable route is through SBA (Small Business Administration) loans. These loans are designed to help entrepreneurs like you get their dreams off the ground.

• SBA 7(a) Loans : This is the most common type of SBA loan. It can be used for a variety of purposes, including purchasing land or buildings, construction costs, or even as working capital.
• SBA CDC/504 Loans : These loans are specifically for purchasing major fixed assets like land or buildings. If you’re looking at building a new facility, this could be a great option.

Remember, it’s crucial to have a solid business plan when applying for these loans. The lenders want to see that you’ve thought things through and have a plan for making your business profitable.

The journey of starting a self storage business might seem daunting, especially when you’re staring at these numbers. But don’t let it deter you. With the right planning, a clear understanding of your costs, and the help of financial tools, you’re one step closer to opening for business. Remember, every successful business started with someone taking that first daunting step. Are you ready to take yours?

Mastering Marketing and Customer Acquisition for Your Self Storage Business

In a world where competition is fierce and standing out is vital, setting up a winning marketing and customer acquisition strategy for your storage business is a must. From brand identity to digital marketing, let’s roll up our sleeves and dive into the nuts and bolts of getting your business noticed and attracting customers.

A strong brand identity sets your business apart from the competition. This goes beyond just your business name. It includes everything from your logo and tagline to your company’s mission and values.

• Choose a Unique Business Name : Research existing storage businesses to avoid duplication and check if the name is available for trademark. Your business name should be easy to spell, pronounce, and remember. It should also hint at the services you provide. Use tools like a business name generator for inspiration and don’t forget to check domain availability for your website.
• Design a Memorable Logo : Your logo should reflect the nature and values of your business. Consider hiring a professional graphic designer who can bring your vision to life. Tools like Canva also offer easy-to-use design templates for those on a budget. Remember, your logo will be on your website, marketing materials, and possibly even on the signboard of your storage facility, so it’s worth the investment.
• Define Your Mission and Values : This involves a deep understanding of your business, your goals, your customers, and the market you operate in. A mission statement should clearly communicate what your business does, who it serves, and how it does it. Your values should reflect the principles and beliefs that guide your company’s actions. These will help you to create a business culture and a brand that resonates with your target audience.

In 2023, your digital footprint matters more than ever. From your website to social media, make sure your self-storage company is easy to find and hard to forget.

• Website : Your website is your virtual storefront. Make sure it’s clean, easy to navigate, and mobile-friendly. Highlight your services, provide clear pricing information, and include a simple booking system. It’s also crucial to have your contact information prominently displayed.
• SEO : SEO, or search engine optimization, is about making your website more visible on search engines like Google. This involves keyword optimization, quality content creation, and building backlinks. Consider hiring an SEO expert or using SEO tools like SEMRush or Yoast SEO.
• Social Media : To start, choose the social media platforms where your target customers spend most of their time. Create engaging content that provides value to your followers. This could be tips on how to pack a storage unit or a behind-the-scenes look at your facility. Be consistent in your posting and engage with your followers by responding to comments and messages.
• Google My Business : To set this up, go to the Google My Business website and follow the prompts to add your business. Include as much information as possible, like your address, hours of operation, and photos of your facility. Encourage happy customers to leave reviews to boost your credibility.

Word-of-mouth is a powerful marketing tool. Implement a referral program that incentivizes your existing customers to refer their friends and family.

• Offer Discounts : For every successful referral, you might offer your existing customer a percentage off their next month’s rent. The key is to make the discount enticing enough that customers want to participate.
• Provide Extra Services : This could include providing a free moving truck for a day, offering complimentary moving supplies, or providing a free upgrade to a larger storage unit for a certain period.

Build relationships with local businesses and explore potential collaboration opportunities.

• Moving Companies : Reach out to moving companies in your area and propose a partnership. This could be as simple as distributing each other’s marketing materials or as formal as a referral fee agreement.
• Real Estate Agencies : Similar to moving companies, real estate agencies can be a great source of referrals. Introduce your business and offer promotional materials they can share with their clients.

Last but not least, invest in advertising. This can range from traditional methods like print ads and billboards to digital advertising like Google Ads or social media promotions.

Starting your self-storage business involves many moving parts, and marketing and customer acquisition are crucial pieces of the puzzle. Implementing these strategies will help you attract and retain customers, ensuring your business doesn’t just survive, but thrives in the competitive storage industry. Ready to make your mark?

Pricing Strategies and Revenue Generation in the Storage Unit Business

Taking the plunge into starting a storage business can be a lucrative venture, but let’s not skip over the crucial aspect of pricing and revenue generation. After all, a well-thought-out pricing strategy could be the difference between a storage facility that’s half-empty and one that’s making bank.

The price is a major determinant for customers choosing between different storage companies. As of 2023, the average monthly cost for a storage unit is a cool $100.04. Now, you might be wondering, “How much does it cost to provide these storage units?” Well, that’s where your cost analysis comes in. It’s vital to consider expenses like maintenance, security, and overhead when setting your prices.

For a mini storage business, utilizing market-based and target-based pricing approaches can help you set competitive and profitable unit prices.

Market-based Pricing

This approach involves setting your prices based on the going rate in your specific market. It’s a simple concept – you’re essentially pricing your units similar to (or slightly lower than) your competitors to attract customers. However, it’s vital that you’re still covering your costs and securing a profit.

Target-based Pricing

Target-based pricing, on the other hand, is when you price your units based on the profit margin you aim to achieve. You calculate this by adding your desired profit to the cost of running a storage unit. This approach requires a solid understanding of both your costs and the value your customers place on your service.

While Houston, TX, holds the crown as the most in-demand city for self storage units, it’s not the only city with a buzzing market. The demand for storage units varies greatly from city to city, often in line with factors such as population growth, real estate trends, and local economic conditions. Below is a table highlighting the top five cities in the U.S. for self-storage demand and their average monthly prices.

Los Angeles, CA

The City of Angels comes in second place, with an average monthly price of $112.35 for a unit. Given its dense population and high real estate prices, it’s no surprise that people in LA are turning to self-storage as a space-saving solution.

New York, NY

With space at a premium in The Big Apple, New Yorkers are willing to pay an average of $176.42 per month for storage. This city is a prime example of high demand driving up prices in the storage industry.

Texas makes the list again with Dallas, where the average price for a storage unit is $91.87 per month. The city’s growth, combined with a strong economy, has led to an increased demand for storage units.

Chicago, IL

Chicago, the Windy City, rounds out our top five with an average monthly storage unit price of $98.73. Like the other cities on this list, Chicago’s dense population and urban living conditions contribute to the demand for storage facilities.

Aside from rental income from your storage units, there are other revenue streams to tap into:

• Late Fees : It’s common practice to charge late fees when customers don’t pay their rent on time. Make sure these fees are clearly outlined in your rental agreement.
• Sales of Packing Supplies : You can offer boxes, packing tape, bubble wrap, and other packing supplies for sale at your facility. It’s a convenient option for your customers and an additional revenue stream for you.
• Insurance : Many self-storage companies offer optional insurance coverage for the items stored in their facilities. If a customer chooses to purchase this, it can add to your revenue.
• Truck Rentals : If you have the resources, offering truck rentals can be a profitable add-on service.

It’s worth noting that running a self-storage business requires a keen understanding of your local market and a flexible approach to pricing. Keep an eye on your competitors, stay aware of the need for storage in your area, and adjust your pricing strategy as necessary to keep your business thriving. Remember, starting a self storage business is not just about providing space – it’s about offering a service that meets your customers’ needs at a price they’re willing to pay.

As we wrap up this guide on how to start a self storage business, it’s clear that the storage industry presents a significant business opportunity. With the average occupancy rate of self storage facilities standing at an impressive 96.5% and a robust annual revenue, it’s no wonder entrepreneurs are drawn to starting such a business. However, running a storage business requires a comprehensive understanding of the market, strategic planning, and a credible business plan to ensure success.

When considering the cost to launch a self storage business, it’s crucial to factor in both the initial construction or acquisition costs and the ongoing operational expenses. Remember, there are various ways to open a storage business, each with their pros and cons. For those starting with no money, options like small business loans and other financing alternatives can make your business dreams a reality.

The key to a successful self storage company in 2023 and beyond will be in offering competitive rental storage rates, providing excellent customer service, and staying ahead of the technological curve. The storage market is evolving, and those who adapt will thrive. Don’t forget, the location of your storage units plays a crucial role in your business’s potential success, with cities like Houston, Los Angeles, and New York being particularly in-demand.

In conclusion, starting your own self-storage business is one venture with immense business potential. However, you need to know the ins and outs, from average storage unit prices to ways to generate business income. With this guide as your starting point, you’re well on your way to carving out your own corner in the storage industry. Go ahead, learn how to start, run the business like a pro, and get ready to open for business!

LaunchKit Founder

Tim loves building businesses and has a long history of buying, developing, and selling them successfully. He was featured on Entrepreneur.com as a top online entrepreneur and has now dedicated his career to helping others launch their own business in pursuit of personal and financial freedom.

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As I was reading through your post, one question popped into my mind: With the self-storage market being so competitive, how can new businesses set themselves apart from the existing players and attract customers? With over 182,000 storage businesses operating nationwide, it’s crucial to find unique strategies that can give entrepreneurs an edge. Any ideas?

Hey Michael!

Great question. Pricing and branding would be the obvious first places to start. Undercutting your competition and potentially taking an early loss to get customers in the door could mean a fruitful year 2. On the other hand… investing in high quality marketing efforts from the start could allow you to charge more. Be very careful about selecting a business name that lends itself to a memorable campaign.

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How to Start a Storage Business

Starting a storage business can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful storage business.

Importantly, a critical step in starting a storage business is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here .

Download our Ultimate Business Plan Template here

14 Steps To Start a Storage Business :

• Choose the Name for Your Storage Business
• Develop Your Storage Business Plan
• Choose the Legal Structure for Your Storage Business
• Secure Startup Funding for Your Storage Business (If Needed)
• Secure a Location for Your Business
• Register Your Storage Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Storage Business
• Buy or Lease the Right Storage Business Equipment
• Develop Your Storage Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Storage Business
• Open for Business

1. Choose the Name for Your Storage Business

The first step to starting a self-storage business is to choose your business’ name.  

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your storage business:

• Make sure the name is available . Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep it simple . The best names are usually ones that are easy to remember, pronounce and spell.
• Think about marketing . Come up with a name that reflects the desired brand and/or focus of your storage business.

2. Develop Your Storage Business Plan

One of the most important steps in starting a storage facility is to develop your storage business plan . The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

Your business plan should include the following sections:

• Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your storage business.
• Company Overview – this section tells the reader about the history of your storage business and what type of storage business you operate. For example, are you a self-storage, data storage, or a wine storage business?
• Industry Analysis – here you will document key information about the storage industry. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis – in this section, you will document who your ideal or target market are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing services like the ones you will offer?
• Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
• Product : Determine and document what products/services you will offer 
• Prices : Document the prices of your products/services
• Place : Where will your business be located and how will that location help you increase sales?
• Promotions : What promotional methods will you use to attract customers to your storage business? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
• Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team – this section details the background of your company’s management team.
• Financial Plan – finally, the financial plan answers questions including the following:
• What startup costs will you incur?
• How will your storage business make money?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your business?

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3. choose the legal structure for your storage business.

Next you need to choose a legal structure for your storage business and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole proprietorship

A sole proprietorship is a business entity in which the owner of the storage business and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small business owners. It is an agreement between two or more people who want to start a storage business together. The partners share in the profits and losses of the business. 

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a storage business include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a storage business is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your storage business, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

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4. Secure Startup Funding for Your Storage Business (If Needed)

In developing your storage business plan , you might have determined that you need to raise funding to launch your business.

If so, the main sources of funding for a storage business to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a storage business that they believe has high potential for growth.

5. Secure a Location for Your Business

When looking for a location for your storage business, it’s important to consider the following factors:

• First, consider the needs of your business. What kind of storage do you need: personal or commercial? Do you need climate controlled units? What are your storage space requirements?
• Once you’ve determined what kind of storage you need, research the areas in your city that best meet those needs. Consider factors such as cost of living, population density, and proximity to highways and public transportation.
• Narrow down your choices to a few neighborhoods that fit your criteria, and then take a closer look at the individual locations to see if they meet your specific needs (e.g., access, security, parking).
• Finally, visit each location at different times of the day to see how busy the roads are, and whether there’s enough parking for your needs.

Make sure to consult a commercial real estate specialist before you sign a lease. You may save yourself some time and money because they may be able to help find a location that meets all of your needs from the start.

6. Register Your Storage Business with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

7. Open a Business Bank Account

It is important to establish a bank account in your storage business’ name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

8. Get a Business Credit Card

You should get a business credit card for your storage business to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

9. Get the Required Business Licenses and Permits

Before you can start a storage business, there are a few licenses and permits you will need. 

The most important license you need is a business license from your local government. In addition, you may need a special license to store certain types of items, such as hazardous materials. You will also need the local fire department to review and approve the installation of a fire alarm system in your business.

Make sure to check with your local government to find out what licenses and permits you need to start a self-storage business.

10. Get Business Insurance for Your Storage Business

The type of insurance you need to operate a storage business will vary depending on the state in which you operate.

Some business insurance policies you should consider for your storage business include:

• General liability insurance : This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
• Auto insurance : If a vehicle is used in your business, this type of insurance will cover if a vehicle is damaged or stolen.
• Workers’ compensation insurance : If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
• Commercial property insurance : This covers damage to your property caused by fire, theft, or vandalism.
• Business interruption insurance : This covers lost income and expenses if your business is forced to close due to a covered event.
• Professional liability insurance : This protects your business against claims of professional negligence.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs.

11. Buy or Lease the Right Storage Business Equipment

In order to start a storage business, you’ll need some basic equipment. You may need a truck or van to transport items, a self-storage unit to store them in, and locks and packing materials to keep them secure. You will also need some office equipment like a computer, phone, and printer.

12. Develop Your Storage Business Marketing Materials

Marketing materials will be required to attract and retain customers to your self-storage company.

The key marketing materials you will need are as follows:

• Logo : Spend some time developing a good logo for your storage business. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
• Website : Likewise, a professional storage business website provides potential customers with information about the services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
• Social Media Accounts : establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your storage business.

13. Purchase and Setup the Software Needed to Run Your Storage Business

To run a storage business, you will need accounting software, customer relationship management (CRM) software, and invoicing software.

14. Open for Business

You are now ready to open your storage business. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.

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How to Start a Storage Business FAQs

Is it hard to start a storage business.

It is easy to run a self-storage facility successfully. The reason for this is it only requires minimum investment to start. In fact, you can do it by using your own garage or even a spare room in your house.

How can I start a storage business with no experience?

There are a few things you can do to get started in the storage business with no experience. First, do some research on the industry and learn as much as you can about it. Next, try to find a mentor or someone who can help guide you through the process. Finally, start small and gradually grow your business as you learn more about it.

What type of storage business is most profitable?

The most profitable storage business is the self-storage business. Self-storage businesses are those that allow customers to store their belongings in a storage unit that the customer rents. Storage facilities charge a rental fee that may be paid monthly, yearly or by another time period specified in the rental agreement. Self-storage businesses generally have higher average prices per square foot than other storage types because the customer is paying for the convenience of the short-term use of a storage unit and to keep a valued possession safely stored away.

Self-storage facilities are generally very profitable because the average revenue per storage unit is high. The self-storage business model has a lot of flexibility, allowing its owners to vary rental prices according to demand by offering discounts during slow periods and charging premium rates when occupancy is high.

Self-storage businesses are attractive to investors because of the business model's high average revenue per square foot, relatively low overhead expenses, and government regulations that protect storage owners from liability for stored items. 

How much does it cost to start a storage business?

To start a storage business, you will need to invest in some initial equipment and supplies. The cost of setting up your business will vary depending on the type of storage business you want to start, but can range from a few thousand dollars to several hundred thousand dollars. You will also need to factor in the cost of marketing and advertising your business.

Some startup costs estimates for storage businesses include: 

• $500 to $5,000 for a used storage container and trailer
• $12,000 to $25,000 for a new storage container and trailer
• $4,800 to $11,200 for a portable storage unit
• $7,400 to $1M+ for a prefab facility
• $200-$500 for packing materials and boxes
• $1,000-$5,000 for advertising and marketing

What are the ongoing expenses for a storage business?

The ongoing expenses for a storage business can vary depending on the size of the business, the services offered, and the location. However, some of the most common operating expenses include rent or lease payments, insurance, employee salaries and benefits, and advertising and marketing costs.

How does a storage business make money?

Many self-storage facilities make money by charging customers to store their belongings. They may also charge for access to the self- storage units, or for certain services such as moving items in and out of the units. Another way storage businesses make money is by subletting the storage space they control to third parties.

Is owning a storage business profitable?

Storage businesses are profitable. One reason is that the storage market is growing rapidly. In addition, the storage industry is fragmented, which means there are many small players in the market. This presents opportunities for consolidation. Finally, the storage industry is recession-resistant, meaning that demand for storage services remains relatively stable during economic downturns.

Why do storage businesses fail?

One of the main reasons storage businesses fail is because they do not have a solid business plan in place. This includes having a detailed marketing plan, pricing strategy, and financial plan. Other businesses also fail because they do not have the right team in place to help them run the business. It's important to hire employees who are knowledgeable in the storage industry and have the same values as your business. Finally, another reason storage businesses fail is because they do not have a good customer service strategy in place. Make sure you are responsive to customer inquiries and complaints, and always provide excellent customer service.

Other Helpful Business Plan Articles & Templates

Small Business Trends

How to start a storage business.

People are on the move, and they need self storage units. They are changing jobs, buying houses, going to college, downsizing and more.

A business may also need a self-storage facility. A business might need to temporarily store a piece of equipment or products while remodeling or moving.

With so many possibilities for profit, it’s no wonder that storage businesses are consistently in high demand. This guide will walk you through how to start a storage business, including a full business startup checklist tailored to this industry.

The Self Storage Industry

The self-storage industry has generally been doing well in the United States. It tends to be relatively recession-resistant, as people often need storage during life changes like moves, divorces, or downsizing, which can happen regardless of economic conditions. However, like any industry, success can depend on various factors like location, management, and market saturation.

What is a Self Storage Business?

There are various types of self storage businesses:

• Traditional Self-Storage : This is the garage-style unit most people think of.
• Climate-Controlled Storage : These units have temperature and humidity control.
• Vehicle Storage : For boats, RVs, and other vehicles.
• Portable Storage : Companies deliver a container to your door, which you fill up, and they take it away for storage.
• Indoor Storage : Units are inside a building and may have more security.
• Outdoor Storage : Mostly for vehicles or large machinery.
• Specialty Storage : For specific items like wine, art, or documents.

Why Self Storage Facilities Are In Demand

People seem to always have a need for a self storage unit, whether it’s short or long term. Businesses also regularly use storage facilities.

• Life Events : People often need storage during significant life changes.
• Downsizing : As people age, they might downsize but want to keep their belongings.
• Business Needs : Companies often need storage for equipment or inventory.
• Seasonal Storage : Storing items like holiday decorations or seasonal gear.
• Student Storage : Students may need storage during breaks.

Steps to Starting Your Successful Self Storage Business

Before you start, take the necessary steps to lay the groundwork for a successful business. The following steps walk you through how to start a business in this field.

Market Analysis for a Profitable Storage Business

A thorough market analysis is a must. In some areas, it may seem that there are self storage businesses everywhere. Does that indicate an ongoing need for the self storage facilities, or is the market saturated?

What are the local demographics? Are there entities nearby, such as colleges/universities or military bases, that generate an ongoing need for self storage businesses? Is the housing market in the area booming or stagnant?

Drafting a Business Plan for Your Own Self Storage Business

A self storage unit business owner should draft a detailed business plan . The plan should describe the business, including its structure (limited liability corporation, partnership, corporation).

Other key elements of the business plan include the financials of the key people involved and plans for marketing strategies. Many businesses start small and grow, and the business plan should include the timeline and strategy for that.

When it’s time to grow, a lender will want to see all the financials and the business plan.

Buying an Existing Self Storage Facility

• Existing customer base
• Established location
• Immediate cash flow
• Potentially high upfront cost
• May inherit issues like outdated equipment
• Limited flexibility for changes

Franchising Opportunities in the Self Storage Industry

Franchises like Extra Space Storage and Public Storage offer storage franchise opportunities, although many storage facilities are independently owned.

Selecting the Right Location for Your Self Storage Business

Of course, zoning is your first concern. Research local zoning ordinances and requirements to be sure such a business can get approval to be located in your area.

Other considerations include ease of access. Many people and businesses moving items will use a truck and trailer, so access roads to and within the facility should be easy to navigate.

Also, consider the demographics of the area, which can feed demand. Is the area growing in population? Are there new businesses or housing developments coming to the area?

Creating a Self Storage Business Website

You should hire a professional to ensure your website will pop up during online searches with words such as “Self Storage” or “Storage Unit”. No matter how good your website is, it won’t help you unless it is found on a search.

Your website should include a map/directions feature and a link to do online bookings and registrations. The sizes and locations of the units should be accurately described. You’ll also need a list of items not permitted in the storage units, such as gasoline-powered equipment.

Hours of operation should be noted. State the most desirable features of the business, such as 24-hour video security. Pictures of the units’ interiors are helpful, as well as descriptions of how much square footage is typically needed for household goods.

Choosing a Business Structure

Different business structures are common in the storage unit business. Some common business structures are a limited liability corporation, or LLC, with a sole proprietor.

In other cases, a business structure could be a partnership, with two investors starting the venture. This can be common when one of the partners owns the land or an existing building, such as a warehouse.

The corporation as a business structure may be developed when a self storage business expands and opens one or more additional locations.

Secure Necessary Permits and Licenses for a Self Storage Company

You’ll need building permits for construction and business licenses to operate. Some facilities may also require small business insurance . Specifics vary by jurisdiction but could include fire safety permits, environmental permits, etc.

Zoning is another concern. Often, neighbors who live nearby are concerned about an increase in traffic and the lighting requirements of a storage business. A self-storage business owner can alleviate these concerns by establishing certain hours for the facility, but good lighting is important for security reasons.

Designing Your Self Storage Units for a Successful Self Storage Business

As you design the facility, make sure the aisles between the units are easy to navigate outdoors and indoors. Clients may use trucks and trailers outdoors and pallet jacks and carts indoors.

Outdoor facilities should be high-fenced, and you’ll need to allow access to the fencing for repairs or weed/snow control.

Areas for outdoor storage of items such as campers or trailers should be large enough to allow for vehicles to be maneuvered and backed up into spaces. The spaces should be clearly defined and numbered.

If the business will be located in a northern climate, be sure to allow room for the removal of snow/ice.

Setting Prices for Units in Your Storage Facility

One great technique used to build a clientele for a self-storage facility is offering significant introductory discounts. For day-to-day operations, there are various factors to consider:

• Location : Urban vs. rural rates differ.
• Unit Sizes : Different sizes command different rates.
• Features : Climate control, security features, etc.
• Competitor Pricing : Know the market rate.

Hiring and Training Staff

Some self-storage businesses operate with on-site staff members. Customers make appointments and are met by a staff member, especially for the initial signing-up process.

More often, bookings are done online or through a customer service representative. That person must, of course, be courteous and informed, and also be able to advise on the unit size that will be needed.

For example, here is key information staff members should know:

Approximate Storage Unit Sizes

• 5×5 (25 sq ft) : Suitable for boxes, small furniture, or seasonal items. Probably too small for an 800-square-foot apartment move.
• 5×10 (50 sq ft) : Can hold some furniture and boxes. Might work if you only have a minimal amount of furniture and are good at packing.
• 10×10 (100 sq ft) : Often recommended for a one-bedroom or studio apartment. Could be tight for an 800-square-foot apartment, depending on how much stuff you have.
• 10×15 (150 sq ft) : More appropriate for a two-bedroom apartment. This would likely give you enough space for an 800-square-foot apartment, especially if you have several pieces of large furniture or appliances.
• 10×20 (200 sq ft) : Suitable for a multi-bedroom house and would provide ample space for an 800-square-foot apartment.

Questions staff members should ask:

• Furniture Size : Do you have bulky furniture like sofas, beds, or dining tables?
• Appliances : Will you be storing a fridge, washer, or other large appliances?
• Boxes : The number and size of boxes can add up quickly.
• Vertical Space : Remember, you can stack items to take advantage of vertical space.

Marketing Your Self Storage Business

You may wonder, “what is marketing for a self storage business, anyway?” Your strategy should include building an online presence, with at least a website and Facebook page. Our website startup guide can walk you through how to create one and what to include.

You can do lots of marketing offline. Definitely join your local Chamber of Commerce, where you can network with other business owners. If there’s a military base or educational institution in the area, see if you can post information about your facility with those entities.

Embracing Technology: Online Bookings and Security

There are software solutions specifically for self-storage management that help with online bookings, payment processing, and security monitoring.

For example, a new client can book entirely online. The new client is given an access code to use on a keypad which will open a gate into the facility. An online map of the business gets the client to the storage unit. A combination lock is on the unit, and a keyed lock is inside the unit for the customer to use. The customer drops the combination lock in a dropbox.

Security monitoring can be done remotely using cameras and live feeds. Also, a camera or cameras are positioned so that the license plate of each vehicle entering/leaving the facility is recorded.

Customers will choose one self-storage business over another based on the ease of booking and security monitoring.

How to Start a Storage Unit Business with No Money

It’s challenging to start with no money due to the costs of land, construction, and operation, but leasing existing structures for conversion might be an option. Some also start small with just a few units.

It may be possible to start a facility by partnering with a property owner, such as the owner of a vacant warehouse or fenced lot. If a space is unused, the property owner may be willing to lease the property to gain some income from it.

Container-based storage units could be an option for that type of arrangement. The container is dropped at the client’s residence or business to be filled. When full it is picked up and brought to the storage facility. It can be delivered to a new location when the customer is ready for it.

Navigating the Challenges of a Self Storage Business

Though there are many benefits of running a storage business, there are also challenges. Here are some of the most common:

• Nonpayment : Customers not paying fees.
• Vacancies : Keeping units filled.
• Security : Theft or vandalism.
• Maintenance : Regular upkeep is essential.

FAQs: How to Start a Self Storage Business

How profitable are self storage businesses.

The self-storage business has the potential to be profitable, especially when well-located and well-managed. Profit margins can be decent due to the low overhead after initial setup.

Earnings can vary widely based on size, location, and other factors. Some estimates suggest profit margins between 11% and 20%, but this can fluctuate.

What security measures are needed for a self storage facility?

24-hour video surveillance is a must. Also, the facility should be physically checked, especially its fenced perimeter, at a minimum of two times daily.

If the owner of the facility is going to be away on business or vacation, be sure to ask the local law enforcement entity to make patrols in the area.

What is the best location to start a self storage unit business?

The best location for starting a self-storage business is one where the area isn’t saturated with similar entities.

The self-storage unit business should be positioned in a growing area, and be situated along a road system which provides easy access to customers driving a truck and trailer, or large cargo vans and vehicles.

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How to Start a Self Storage Business in (2024): Step-by-Step Guide

Matthew Khalili

10 Min Read

The 44.37 billion dollars self-storage market grows prolifically as the demand for self-storage facilities has grown throughout the country.

With an average occupancy rate of 85-90%, most self-storage businesses in the US enjoy a profit margin of 11-18%. It is indeed a profitable business venture for someone ready to invest and put in some hard work.

Well, if you have made up your mind to venture into the self-storage industry you must be wondering how to start a self-storage business and turn it profitable.

Well, this guide has all your answers. It details all the essential steps that will help you set up a well-planned and legally compliant self-storage business in a hassle-free manner.

So without any further ado, let’s dive right in.

Steps to Start a Self-Storage Business

• Self-Storage Business Planning and Market Research
• Prepare your Self-Storage Business Plan
• Choose the Location for your Storage Facility
• Register Self-Storage Business
• Acquire Essential Licenses and Permits
• Insure the Self-Storage Facilities
• Open a Business Bank Account
• Calculate your Startup and Operational Costs
• Acquire the Fundings
• Build your Brand and Marketing Plan

Let’s uncover this step-by-step guide that will help you set up a legally compliant and financially planned storage business in a proper way.

1. Self-Storage Business Planning and Market Research

As the first step of starting a self-storage facility, evaluate the feasibility of your storage business idea. For this, you must gather a foundational understanding of the market by diving deep into the research.

Analyze your market area by studying its current population and projected population growth. Evaluate the competitive landscape and see if there is room for new self-storage businesses in your chosen locality or region.

Dive further deep, understanding who your ideal customer is. For instance, would you open your self-storage facility for commercial people or residential people?

An answer to this will influence many other decisions like location, size of self-storage units, storage facilities you will be offering, and your startup costs.

Further, decide whether you will operate the self-storage company on your own or hire a third-party company to oversee the management.

Once you have a rough idea of your business concept, take a step further and nail your business planning with a solid plan.

2. Prepare your Self-Storage Business Plan

Proceeding without a business plan is like aiming your shot in the dark hoping it reaches the target. Well, you sure don’t want to take that risk, especially when planning to invest millions in your self-storage business.

A realistic and credible business plan is a worthy document that will drive your business in a specific direction helping you realize your business goals and objectives. Besides, most investors won’t even pay you heed if you don’t have a business plan.

So, better start writing a credible self-storage business plan that resonates with your core objectives, mission values, goals, and business concepts.

Keep in mind that the business plan for getting an existing self-storage facility off the ground will be much different than building a new storage business. However, if we consider the fundamental components of a business plan, you must try to cover the following topics:

• Executive Summary
• Company Overview
• Industry and Market Analysis
• Self-storage products and services
• Management Team
• Self-Storage operations plan
• Marketing and sales plan
• Financial plan

Writing a business plan is taxing. It requires utmost attention to detail and precision and is time-consuming.

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3. Choose Location for your Storage Facility

Location plays a crucial role in determining the success of self-storage businesses. It’s better to start sourcing the ideal location for your storage space business ASAP!

The preliminary market research will help you identify the localities that have surging or unmet demands. For instance, the demand for self-storage facilities is high in commercial regions and densely populated residential areas.

Now, answer whether you will buy land for storage facilities or remodel an existing facility. Besides, do you plan to spread across the facilities on the same level or will you create multi-story facilities? And lastly, will you offer indoor access to the facilities or only drive-up to storage units?

Usually, the self-storage facilities are spread across a 10,000-100,000 sq. ft. area housing nearly 500 storage units. Now, evaluate your needs and start looking for easy-to-access locations near your target market.

Take help from real estate investors to help you find the right business location. While finalizing the contract, ensure that all the legal compliances are met.

4. Register Self-Storage Business

It is essential to legally register your business with the state. While registering, you have to choose between different business entities like sole proprietorship, partnership, LLC (limited liability company), and Corporation.

Businesses in the self-storage industry can benefit greatly from registering LLCs and Corporations as their legal entity.

Further, register your self-storage business for state and federal taxes and acquire your Employer Identification Number (EIN) from the IRS portal .

EIN is a 9-digit security code unique to your self-storage business and is essential for filing taxes, registering a business bank account, applying for business credit cards, and generating payroll.  Besides, EIN can be generated for free.

5. Acquire Essential Licenses and Permits

To ensure all-around compliance, identify the permits and licenses essential for your self-storage facilities from SBA .

If you are building a self-storage facility from the ground level up, get a Certificate of occupancy (CO) ensuring that your business meets all the zoning, government, and building code requirements.

However, if you are renting an existing self-storage facility, ensure that the owner has an occupancy certificate essential for your compliant business.

Ensure that you have all the essential licenses that comply with Occupational Safety and Health Administration requirements.

While it is still a long way before you start offering your storage unit for rent,  draft the service agreement contracts highlighting the terms and conditions, payment terms, and rental time to minimize the legal dispute.

Failure to get your business legally compliant can attract fines, penalties, and sometimes permanent closure of the business. Ideally, you should avail a legal help to look after the compliances for your business.

6. Insure the Self-Storage Facilities

Just like licenses, you need insurance to ensure that your storage unit business operates safely and lawfully. Federally, business insurance is mandatory for all businesses.

Now, if there is one insurance you definitely need, it is general liability insurance. This offers general protection against injuries, thefts, and property damage- so it’s a good start for your business.

Now, if you are hiring workers to look after your storage unit business, you also need a worker’s compensation fund to cover employees’ injuries and health expenses.

Also, it is wise to get tenant protection insurance to secure the interest of prospective tenants. This can enhance the credibility of your self-storage business amongst your target audience.

Lastly, get umbrella insurance to secure your business interests on all fronts.

7. Open a Business Bank Account

Setting up a separate bank account for your storage unit business helps you protect your personal assets from business liabilities. Not only that, it also eases the bookkeeping and tax filing for your business.

With that EIN procured earlier, you can apply for a separate business bank account. While you apply for a bank account, also apply for a separate business credit card.

A credit card will build credit history for your business making it easier for you to acquire loans in the future.

8. Calculate your Startup and Operational Costs

If the financial section of your business plan is not worked out yet, it is time to calculate your startup cost and operating expenses now.

Evaluate your startup costs by making projections for different expenses. This includes accounting for land purchase, construction, permits, insurance, and much more.

While you calculate your startup costs, also consider the operating expenses for the first 3-6 months. This is a good enough time for you to reach at least break even.

Talking about self-storage operating expenses, here are a few things you should include in your startup cost calculation:

• Mortgage/ Lease payments
• Payroll expenses
• Utility bills
• Professional services bills
• Insurance payments
• Marketing and advertising

Depending on the concept, size, location, and nature of your self-storage business, you can expect to spend anywhere between $1 million-$2.5 million to start your business.

However, it is possible to start a small business with less than a million dollars if you decide to lease or buy existing storage facilities in the lower borough regions of your town.

Once you have a rough estimate of your initial capital needs, you can start making arrangements for the same.

9. Acquire the Funding

As we discussed, it’s quite expensive to start a self-storage business even on a small scale. Personal savings aren’t adequate especially when you need a million dollars for an upfront investment.

Evaluate your monetary position and determine how much funding you require to turn your idea into a successful self-storage business.

In terms of funding options, you can opt for a variety of loans. This includes SBA (small business administration)-guaranteed loans for small businesses, business loans, acquisition loans, construction loans, working capital loans, etc. Evaluate your credit standing and interest rates before choosing this mode of finance.

Additionally, you can raise capital by seeking funding from angel investors and Venture Capitalists. For a certain stake in your business, these investors will provide you with essential funding.

Apart from this, you can also choose the mode of crowdfunding and lending from friends and families to gather essential capital.

10. Build your Brand and Marketing Plan

A strong self-storage business brand is essential to build a successful and profitable business. Ideally, you should start the branding and marketing activities as the facilities start shaping up together.

Define your brand elements to put together a consistent brand image across all the platforms. Get your self-storage business website ready and create your social media accounts to grow your brand’s presence.

You want your target market to find you easily. So get the banners, freeway hoardings, and billboards ready to guide the customers to your self-storage facility.

Define different marketing strategies you will use to attract potential clients to your business. This includes streamlining your GMB (Google My Business) account, email marketing, setting up your phone system, running paid ads, content marketing, and much more.

Allocate your resources to different marketing activities and track the results to see what type of marketing brings you the most benefit.

By now you must have a thorough understanding regarding how to set up your own self-storage business. Let’s take the first step and translate your business idea into a business plan by referring to online business plan samples .

Also, ease your business planning process by using cutting-edge tools from the Upemtrics business planning app . We have financial forecasting and AI writing assistant tools to strengthen your business planning along with free resources and extensive guides to help small business startups.

So let’s turn your vision for self storage business into a reality.

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Frequently Asked Questions

How much money do you need to start a self-storage business.

The cost of starting a self-storage business right from ground level up costs anywhere between $1M-$2.5M . However, it is comparatively much cheaper to buy existing storage facilities and upscale them to meet the concepts and nature of your self-storage business idea.

Are storage businesses profitable?

Absolutely yes. The average profit margins of a self-storage unit business in the US is anywhere between 11-18% Sometimes, storage units with streamlined operations and consistent occupancy rates can manage to earn margins up to 40% as well.

Is starting a storage business a good idea?

Indeed, starting a storage business would add a prominent source of income to your financial standing. In fact, most of the storage business owners hire a third party for facility management. This way they can earn a significant passive income while working on their other business ventures. Moreover, since storage facilities are always in demand, you can stay assured of reaping high benefits by running a highly functional storage unit business.

How many storage units are there at a self-storage facility?

Considering a 10*10 square foot size for one storage unit, you can fit nearly 130-215 units in one acre of land. Generally, self-storage facilities are spread over 10,000-100,000 sq. ft. of land making room for nearly 500-600 storage units in total.

What is the average sq. ft rent in self-storage facilities?

According to Statista, the average asking rent per square foot for storage facilities in the US is $1.3. Considering a 10*10 average size per unit, per month rental of a storage unit is anywhere around $130 .

About the Author

Matthew Khalili is an experienced business planning expert and the founder of The Plan Writers. With over a decade of experience in the field, he has helped numerous entrepreneurs in creating investor-ready pitch decks and business plans. Matt has enabled 5000+ startups to raise over $1 billion through his business plan, market research, and financial modeling services. Read more

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How To Start a Self-Storage Unit Business and How Much Will it Make?

October 13, 2022

Adam Hoeksema

IBIS World gives us a general insight into the $23 billion a year self-storage and warehouse leasing industry raging in the US. Over 182,000 businesses have opened nationwide to take their share of the pot. Increasing in both 2020 and 2021, despite the pandemic, profit is expected to reach the highest share of revenue since 2002 with a growth of 2.5% every year.

How Much Profit do Storage Unit Owners Make?

The average profit for a storage unit business owner is $184,500 annually. Of course the potential profit for any specific storage unit facility will depend on the size of the facility, the market rate for rent in the area, and the operating efficiency of the business. We estimated the annual profit of $184,500 by taking the average storage unit facility size of 50,000 square feet x the average annual rental rate of $9 per square foot = $450,000 in annual revenue. Then taking a profit margin of 41% gives us a forecasted annual profit of $184,500.

We will dive into the sources for these assumptions and the ranges in revenue and profit margins in the article below, and show you how to use our templates to create your own projections.  We have three templates that I will reference throughout the article:

• Simple Self Storage Facility Template - best for smaller and existing storage facilities.
• Self Storage Developer Template - best for developers looking to raise capital for new self storage facilities.
• Self Storage Acquisition Template - best for investors that are buying, renovating and selling storage facilities.

Common Steps to Starting a Self-Storage Unit Business

Such promising revenue numbers beckon forward when it comes to making the decision to start such a business. Let’s review some of the most common steps needed for a successful and profitable business.

• Budget for the business and determine the potential size
• Determine the target market and perform market research in the area
• Finance the business and purchase or rent space and equipment
• Complete all required paperwork and form a legal entity
• Obtain required permits and insurance to operate as a business in the area
• Set up necessary accounting and banking
• Start an advertising campaign
• Complete any necessary renovations before opening the doors to the public

How Much Does It Cost to Start a Self-Storage Unit Business?

The average cost to start a self storage unit business is $2 million.

Three sources ( Storable , LovetoKnow , MakoSteel ) give us estimated startup costs of starting a new self-storage unit business. 

• Minimum startup cost for a self-storage business = $1.5 million
• Maximum startup cost for a self-storage business = $2.4 million
• Average startup costs for a self-storage business = $2.0 million

The majority of the expenses incurred during the startup process fall into the following categories:

• Land purchase
• Construction
• Permits and licenses
• Outfitting the premises

What is the Average Size of a Storage Unit Facility?

The average size of a storage unit facility in the US is 56,900 square feet according to Easy Storage Solutions .  For easy math throughout this article we will use a 50,000 square foot facility as an example. 

Self Storage Facility Layout

The layout of your storage facility is going to be determined based on the land that you have.  Details around road access, drainage, zoning, etc.  The cost of your land and location will also determine whether you are building a multi story storage facility or spreading out the units on the same level.  Obviously the construction cost per unit will be more expensive if you build a multi-story facility, but if the land is expensive or you are landlocked your only option may be to build up.  Ultimately the goal of your layout will be to maximize your rentable square feet of storage space.  

Once you have solidified your facility layout that will maximize your rentable square feet, next you need to determine what your self storage unit mix should be. 

How Many Storage Units Per Acre?

On average you can fit between 130 and 215 storage units per acre assuming a 10 ft x 10 ft “standard” unit.  

We were able to calculate this based on the following assumptions:

• There are 43,560 square feet in 1 acre
• Most storage unit facilities will cover between 30 and 50% of the parcel with units according to SelfStorageNinjas .
• This means there would be between 13,000 square feet and 21,750 square feet available per acre.  
• Since the “standard” storage unit is 100 square feet, we estimate that you can fit between 130 and 215 storage units per acre.    

Of course if your average storage unit is larger than 100 square feet you will be able to fit fewer units per acre.  

Average Number of Units per Storage Unit Facility

According to a survey of 10,000 storage unit facilities the average number of storage units per facility was 546.

Self Storage Unit Mix

There is not a one size fits all unit mix when it comes to self storage facilities.  Although you might be able to charge a higher rate per square foot if you had all very small units, the reality is that your customers will need a more diverse mix of storage units.  If your target market is in the city, and your customers are typically in small apartments, then you might need more small storage units.  If you are located in a suburban area where the average home is 4,000 square feet, you are likely going to have more customers that need a larger unit.  

Average Unit Mix for Self Storage

According to Inside Self Storage the average unit mix for self storage is as follows:

Cost to Construct a Storage Unit Facility

The average cost to construct a storage unit facility can range from $1.25 million to $3.5 million.  We estimate this range based on an average size 50,000 square foot facility and a construction cost of $25 to $70 per square foot based on information provided by Storable . This does not include the cost of the land or other operational startup costs.  

Self Storage Construction Budget

Our self storage developer template will allow you to build a construction budget for your self storage facility as seen below:

Acquiring a Storage Unit Business

Rather than spending $1.25 to $3.5 million to build a new storage unit facility, you might want to consider acquiring an existing storage facility .  Although an existing facility would be older and might require some additional repairs and maintenance, if the facility is already fully operational and leased up with tenants, you will be able generate positive cash flow faster.  It can take 2 to 4 years to reach a stabilized occupancy rate for a new 50,000 square foot storage unit facility, so acquiring an existing facility with tenants can really speed things along.

You can find hundreds of self storage facilities for sale on LoopNet .  

Acquiring vs. Constructing a Self Storage Facility

One of the great things about our self storage financial models is that they will allow you to easily compare the differences between acquiring an existing facility versus constructing a new storage facility.  You can enter assumptions about the purchase price or construction price into the model, details about financing, and the number of units available to rent.  

Bonus Video Content - How to Acquire a Storage Unit Facility .

How Much Can a Self-Storage Unit Business Make in Sales?

The potential revenue for any business varies due to a number of factors. The size of the self-storage facility, whether it’s one or two floors, the market need for storage in the area, and how many units are likely to get rented at any time. 

How to Set the Price of One Unit?

The price of each unit is the key to running a successful business and making a profit. The revenue potential is held within this business element. There are two approaches to setting the right price. 

Market-Based Pricing

A quick and simple approach to setting a price is completing market research. Staying competitive in the market can make all the difference and it’s not time-consuming. Search engines provide quite a bit of information on prices in the same area. 

Target Based Pricing

This approach will require more work than the first, but it has an end goal in mind. Rather than setting the price to match those of competitors, you work to set the price of potential gross profit margin. 

The typical profit margin of a self-storage business, according to Storable , is around 41%. Target-based pricing means setting the price in such a way that you’ll meet that goal. According to QT Business Solutions , there are around $3 in operating expenses for every raw square footage of the facility.

Calculating the amount to charge per storage unit will depend on a couple of factors. For example, you’ll need the exact amount of square footage of the facility and the sizes of the units, and their number. Once you have the information, you can double any potential expenses to get to the required revenue to meet at least the 41% profit, unless you are aiming higher. 

Self Storage Rent per Square Foot

The average rent per square foot for self storage space in the US was $1.28 in 2022 according to Statista .  Although this is the average, the rate that you will be able to charge is going to differ based on your location.  Additionally, the rate per square foot for self storage units is related to the size of the units that you are renting.  You can check out SpareFoot for the most up to date rent per square foot data.  As of February 2023 you can see their estimates and the major differences in rent per square foot for small vs. large units. 

How full will the facility get?

Self-storage unit businesses run year-round which alleviates one potential worry. However, estimating revenue will depend on how many renters there will be. QT Business Solutions explains that most facilities see an occupancy rate sitting at around 90% in today’s market. 

Though most businesses in the industry will shoot for occupancy of around 80% to 90%, Storable tells us that 65% of occupancy will at least cover the operating and debt expenses of the business. 

With the current trend in downsizing homes and apartment versus home rentals, self-storage units are a popular choice among millennials. 2020 showed an occupancy average of 91.7% , and those numbers have been holding steady, if not growing. 

Of course, those who own a self-storage unit business should not shoot for anything higher than around 90% so that there is always storage to rent. You do not want to find yourself shooting for 100% occupancy and have nothing left for new customers.

Self-storage unit business revenue potential

The revenue potential for a self-storage unit business is quickly calculated once you have all the right information on hand. 

To start with our example, let’s say we are using a facility the size of 50,000 square feet -- the average for these types of businesses. To cover the expenses required to run the business, Truic advises setting the price at around $9 per square foot, per year. 

This estimates the yearly revenue around $450,000, or $37,500 monthly. Of course, this number is for 100% occupancy, which means we need to deduct vacancies of at least 10%. This brings us to a total of $405,000 a year before any other expenses are taken into account. 

Download the Storage Unit 5 year financial projection template

Self-storage unit business annual revenue.

The average revenue for a self storage business is $450,000 per year.

Three sources ( Truic , SweatyStartUp , BizFluent ) tell us the expected revenue amount for a 50,000 square foot self-storage unit business.

• Minimum revenue for a self-storage unit business = $90,000
• Maximum revenue for a self-storage unit business = $600,000
• Average revenue for a self-storage unit business = $450,000

What Are Common Operating Expenses for A Self-Storage Unit Business?

The common operating expense categories for self storage units include:

• Real Estate Taxes
• Property Insurance
• Repairs and maintenance
• Administrative Costs
• Off-site Management
• On-site Management
• Advertising
• Miscellaneous

Average Operating Costs for Self Storage Facilities

The average operating cost as a percentage of revenue for self storage facilities is roughly 35%. 

We calculated this number based on the SEC financial statement filings for Extra Space Storage, one of the largest and most diversified storage facility owners in the US.  In 2021 and 2022 their property operational costs and their general and administrative costs amounted to roughly 35% of revenue in both years.  This does not include depreciation or amortization costs.  Because depreciation costs can vary dramatically based on accelerated depreciation, we wanted to look at true operating costs only which are more stable.  Your depreciation and amortization costs will vary depending on your specific property and financing details.   

Typical Operating Costs for Self Storage Facilities

Based on a report from CBRE that analyzed 808 self storage facilities, the average operating cost per square foot was $4.03.  This is based on 2017 data, so you can expect these costs to have increased, but we can still gain some valuable insight from this information. 

Self Storage Operating Expenses as a Percentage of Revenue

Once we have estimated our expenses, we can now estimate our net operating income.

How much profit can a self-storage business generate?

Profit from a self-storage unit business will vary drastically. Depending on the area, the size, and the market need, this business has the potential for a high return on investment. 

Self-Storage Unit Business Profit Margin

The average profit margin for a self storage business is 41%.

Three different sources ( Storable , BizFluent , RoadLessTraveledFinance ) provide us with the expected profit margin for a self-storage unit business so that you too know what goals to set.

• The minimum profit margin for a self-storage unit business = 11%
• The maximum profit margin for a self-storage unit business = 60%
• The average profit margin for a self-storage unit business = 41%

Financing a Storage Unit Business

Whether you are looking to finance an acquisition of a storage facility or finance the new construction, a self storage SBA loan can be an excellent option for you.  Because a storage unit facility can be used as collateral and since the primary use of the proceeds will be for real estate, you will likely be able to secure a longer term than average with an SBA 7a loan.  SBA 7a loans offer terms of up to 25 years for real estate loans. 

Raising Investment for a Storage Unit Business

You will only be able to borrow a percentage of the acquisition price or construction cost of your storage unit facility, so you will need to raise some investment.  That could be your own personal investment into the business, or you might look to pitch investors to join you in the business.  If you are pitching investors, you should have a good understanding of what the internal rate of return that your potential investors expect.  Once you create a set of cash flow projections for your storage facility, you can calculate the IRR - internal rate of return that you expect investors would be able to generate. This video will teach you how to calculate IRR with our projection templates. 

Self Storage Business IRR

The average IRR for a self storage facility was 16.9% between 2009 and 2018 according to Forbes . So as you are calculating your forecasted IRR you will want to make sure that the facility can get within the range of returns that investors expect.  You can use our developer template as a self storage IRR calculator .

Once you complete your storage unit projections you will be able to see how your facility compares to industry standards in our Profit and Loss at a Glance table as seen below:

If you’re exploring starting your own self-storage facility and need to create comprehensive financial projections for planning, investors, or lenders we offer a CPA-developed, easy-to-use, and affordable template built specifically for self storage businesses, please check out our self storage pro forma template .

Self Storage Business Plan Outline

If you are moving forward with starting or buying a self storage business, your SBA lender may ask you for a business plan. Here is a quick business plan outline that you can use for your self storage startup.

I. Executive Summary

• Business Overview
• Management Team
• Business Goals

II.  Company Description

• Industry Analysis
• Company Objectives

III.  Market Analysis

• Target Market
• Competitive Analysis

IV.  Products and Services

• Description of Services
• Pricing Structure

V.  Operational Plan

• Business Hours

VI.  Financial Plan

• Sales Projections
• Income Statement
• Cash Flow Projection
• Break-even Analysis

VII.  Conclusion

You can get the self storage financial projection template.

The template is simple to use and will save you loads of time while still producing professional looking storage unit business projections. ProjectionHub has helped more than 50,000 businesses create financial projections so you can be confident that you can do it too.

The self storage projection template includes:

5 Year Self Storage Pro Forma Financial Statements

CPA Developed & Completely Customizable

Free Support & Projections Review

Compatible with Google Sheets

Free expert review of your completed projections

The template is easy to use and you do not need to be an excel wizard to fill it out. Editable cells are highlighted in blue, a video guide is included, and our team is available to answer any questions you have.

You can see the complete walkthrough and demonstration of the storage unit business forecast template here:

Get the template today for just $99

If you have any questions before purchasing, please feel free to begin a live chat or email us at [email protected]

100% money back guarantee in accordance with our terms and conditions

Top Right Photo by Ketut Subiyanto from Pexels

About the Author

Adam is the Co-founder of ProjectionHub which helps entrepreneurs create financial projections for potential investors, lenders and internal business planning. Since 2012, over 50,000 entrepreneurs from around the world have used ProjectionHub to help create financial projections.

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How to Start a Storage Business: A Step-by-Step Guide

With over 92% of storage businesses turning a profit - the average being nearly $200,000 annually - and never-ending demand for space, there’s always room for more facilities (no pun intended).

Figuring out how to start a storage business can be an exciting venture, especially when you're armed with the right know-how. This comprehensive guide will walk you through crafting a solid business plan , evaluating startup costs and financing options, and deciding whether it's smarter for you to buy or build your facility. It's all about location - choosing wisely could mean the difference between bustling activity and vacant units.

We'll also cover designing your storage unit layout for maximum profitability and marketing strategies that really pull in customers. And once those customers are using your services, managing day-to-day operations efficiently is key to keeping them happy.  Crafting a Comprehensive Business Plan for Your Storage Business

Establishing a storage business begins with developing a robust business plan. These are the elements of what a comprehensive plan should include. 

Mission and Vision Statements

A mission statement succinctly defines what your storage facility aims to achieve in the present, while the vision statement projects where you see it heading in the future. These statements are not just words; they encapsulate your business's ethos and aspirations. They inform decision-making processes and give prospective investors or partners insight into what drives your company.

Your mission might revolve around offering secure, accessible and affordable storage industry solutions, whereas your vision could be to become a leader within the local market area by continuously adapting to customer needs. 

Remember that a 11.9% profit margin is typical for self-storage businesses in the US - your financial goals should align with industry benchmarks while also reflecting ambitious yet achievable targets.

Conducting Market Analysis

An exhaustive market analysis is pivotal when drafting business plans. You'll need to scrutinize factors like current population demographics, median income levels of residents within driving distance from potential locations and daily vehicle traffic patterns - these can all affect occupancy rates significantly. 

Furthermore, projected population growth gives clues about future demand trends, and rental rates provide comparison points against competitors while considering whether more urban settings or rural ones suit long-term strategic positioning better. The Cooper Center has national and statewide population projections for 2030-2050. Having these insights at hand will help refine strategies for acquiring customers - a critical step towards profitability.

Evaluating Storage Unit Start Up Costs and Financing Options

Starting a storage business is an adventure that comes with its fair share of number-crunching. It's not just about finding the right location or having the shiniest padlocks. Instead, it begins with understanding the cost to start a self storage business and how to fund this entrepreneurial leap.

Estimating Initial Investment Needs

The initial investment for launching a storage facility can be substantial, but don't let sticker shock stall your dreams. Real estate taxes are a significant portion of your operating expenses, so make sure you take this into consideration when working on your storage unit start up business plan and as you scout locations. 

Your storage business start up cost should take into consideration more than just the business. The cost of land varies widely based on locale, so align your budget accordingly - don’t forget to account for overhead costs , which should be no more than 35% of income.

To build or buy: that is the question every storage mogul must answer - and each path has its own set of price tags attached. Buying might get you in the game faster, but building allows customization to fit market needs precisely.

Exploring Funding Sources

You've crunched numbers for real estate and construction - or maybe purchasing an existing facility - but where will this money come from? 

Traditional bank loans are one option, though securing them often requires demonstrating industry knowledge alongside a solid business plan. Investor partnerships may offer another route; presenting potential partners with clear visions can turn prospects into stakeholders.

If traditional financing options feel tighter than a drumhead, consider SBA loans tailored for small businesses like yours or look into specialized self-storage lending institutions that understand your niche's unique demands.

Deciding Whether to Buy or Build Your Storage Facility

Owning a storage facility can be a lucrative business venture, but one of the first and most critical decisions you'll face is whether to buy an existing property or build from scratch. This decision will significantly impact your startup timeline, costs, and potential profit margin.

Pros and Cons of Buying an Existing Facility

The appeal of buying an existing storage facility lies in its immediate operational capability. You get infrastructure that's already up-and-running with established rental rates, which means you could start turning a profit sooner rather than later. But it comes with trade-offs - older facilities might need renovations or technology upgrades to meet current market standards.

While renovation needs may seem like a hurdle, they also present opportunities for modernization that could help attract customers seeking secure and state-of-the-art storage space options. Assessing the occupancy rate is also crucial - it reflects on the facility’s past performance and future profitability prospects.

Considerations for Building New Construction

If starting fresh appeals more to you - and potentially offering customized solutions right out of the gate - building new construction allows just that. With this option comes control over every square foot of design, ensuring optimal use of space based on specific market demands within your area; however, remember that zoning laws are often complex puzzles that need careful navigation before breaking ground.

New construction does have its setbacks, though: timelines can stretch due to permits or construction delays, while costs tend to be higher upfront compared to purchasing pre-existing properties. Yet these challenges should not overshadow long-term benefits such as creating precisely what local demographics demand-an important consideration given projected population growth rates in many regions across America today. 

Selecting the Ideal Location for Maximum Profitability

When launching a storage business, selecting an optimal location is not just about finding available real estate; it's a strategic decision that can significantly impact your bottom line. A well-chosen site leverages market area characteristics and traffic to boost occupancy rates.

Understanding Demographics

An in-depth analysis of demographics within your target area forms the foundation for choosing a profitable location. Assessing factors like the current population, projected population growth, median age, and median income gives insight into who will use your facility and their storage needs. For instance, areas with higher median incomes may be able to afford larger units or climate-controlled options.

Furthermore, evaluating local demographic trends can help predict future demand. With around 50,000 self-storage facilities across the US and most customers renting for anywhere from three months to two years , understanding these patterns becomes critical to ensuring sustained success in such a competitive landscape. More than a third of Americans rely on self-storage facilities , and rising rents and consumption will likely only increase that number.

Traffic Counts and Visibility

The volume of daily vehicle traffic near potential sites serves as an indicator of visibility - a key factor in attracting drive-by customers. The concept here is simple: more eyes on your facility equates to more prospective tenants walking through your doors.

In addition to raw numbers related to daily vehicle counts along nearby roads or highways, consider accessibility from major thoroughfares and ease of entry and exit. These enhance customer convenience while contributing positively towards overall satisfaction levels. All of these factors support customer satisfaction, which can lead to repeat customers who spread word-of-mouth recommendations.

Designing Your Storage Units Facility Layout

When setting up a self-storage facility, every square foot counts. It's about maximizing space utilization to create a profitable mix of unit sizes and types. Designing for efficiency is key.

Maximizing Space Utilization

It’s important to strategically determine how best to utilize each available square foot for various storage unit dimensions that meet customer demands while maintaining accessibility and ease of movement within the property.

An effective layout considers both large items requiring more expansive spaces and smaller units suited for personal belongings or business storage needs. These decisions impact profitability and occupancy rates, as they cater to a diverse customer base looking for tailored solutions in their respective market areas.

Incorporating Security Features

A robust security system does more than protect property; it builds trust with customers, ensuring peace of mind when storing their valuables. Design considerations should include high-quality surveillance cameras, secure gate access systems, ample lighting throughout the premises and individual alarms on each unit if budget permits.

This level of security enhances your facility's reputation and can be leveraged in marketing strategies aimed at attracting customers who prioritize safety alongside convenience - a sentiment shared by many prospective tenants assessing options within any given median income bracket or rural setting where such features may stand out even more prominently against competitors lacking similar offerings.

Marketing Strategies to Attract and Retain Customers

Developing a comprehensive marketing strategy.

A comprehensive marketing strategy must go beyond basic advertising; it should encompass both an online presence and traditional methods to engage prospective customers while retaining existing ones. It's worth noting that BTC service companies usually spend about 6.5% of their revenue on marketing efforts .

To stay ahead in this competitive industry, businesses need robust strategies that attract new tenants through savvy digital tools while maintaining relationships with their current clientele through consistent, quality service.

Establishing an Online Presence

The power of digital tools cannot be underestimated when reaching out to a wider audience effectively and cost-efficiently. In today’s market landscape, social media platforms , optimized websites, and SEO are indispensable elements for increasing visibility. For instance, Multihousing News demonstrates why, despite economic fluctuations, the demand for self-storage remains steady - digital resilience plays a role here.

Building Brand Awareness Through Offline Channels

Moving offline doesn't mean diminishing impact - quite the opposite. Utilizing signage at high-traffic locations can draw eyes towards your storage facility business start-up like moths to a flame because, let's face it, who isn’t looking for extra space? Hosting community events or partnering with local businesses broadens brand recognition and solidifies your place within the community as more than just another storage option - it positions you as part of their daily life narrative.

Incorporating print ads into local publications can similarly anchor your business within its physical context by ensuring residents associate storing treasured possessions with safety - a sense fortified by choosing you over competitors.

Maintenance For Your Self-Storage Business

Operating a successful self-storage facility involves more than just providing storage units. The way your self-storage looks and feels is key—it draws in folks and keeps them coming back. A well-maintained property not only looks professional but also assures potential storage building rental clients that their belongings will be safe and secure.

The Importance of Grounds Maintenance

First impressions matter, especially when it comes to the competitive world of self-storage facilities. When prospective clients visit your site, they are likely to gauge the quality of your services based on how well you maintain the grounds around your storage units.

A spotless, well-kept space shows you're all in on every detail of your work, right down to a welcoming front yard. A well-maintained outdoor area not only shows off your attention to detail but also builds a solid brand image that customers will surely notice and appreciate.

Saving Time with TaskEasy

When running a commercial property like a self-storage facility, time is always at a premium. Juggling office work, drumming up business, and keeping the place secure takes a ton of time – who's got a minute for trimming hedges?

This is where TaskEasy comes into play. TaskEasy links you up with local pros who deliver top-notch upkeep, from mowing to mulching. Keeping your commercial space looking sharp demands top-notch lawn care, something that's both an art and a science to maintain the welcoming vibe of your property. From lawn care services to power washing, we've got a range of services designed just for commercial spaces like the one you've got.

Beyond Aesthetics: Other Benefits Of Regular Maintenance

• Safety: Regular maintenance helps identify potential safety hazards before they become serious issues that could lead to injuries or damage to stored items.
• Durability: Regular check-ups help keep buildings strong, stretching out their life and saving you a bundle on having to fix or replace stuff down the line.
• Pest Control: Regular cleaning and maintenance reduce the chances of pest infestation, which could lead to the loss or damage of stored items.

Pouring resources into upkeep for your self-storage spot? It's savvy. You'll boost how folks feel about your service, give your place a longer life, and beef up those profits. And with TaskEasy on board, you can focus more on running your business while professionals handle all aspects of property upkeep.

Closing Thoughts

Starting strong means knowing your path. 

• Step one: Crafting a solid business plan ensures strategy for current and future decisions
• Picking the right location helps attract customers and keep units filled
• Investing smartly keeps you grounded on your financial journey Growing wisely sets you apart, especially with savvy marketing 
• Operating smoothly promotes strong customer satisfaction and business wins

At TaskEasy , we believe that everyone's needs are unique as you start your new business venture. With so many other factors to consider, we can handle your landscaping maintenance needs and make your job easier. Get a free custom quote to see how TaskEasy can help your business grow.

FAQs in Relation to How to Start a Storage Business

How profitable is a storage business.

A well-run storage facility can be quite lucrative, with average profit margins of around 12% in the US.

How to start a storage business without money?

To kick off without cash, you might seek partners, investors, or consider loans specifically for startups.

Is a storage company a good investment?

Owning a storage company can be solid. They often thrive even when other businesses falter due to consistent demand.

How do I start a storage warehouse?

Dig into local market needs, secure funding, pick an accessible location, and design your warehouse efficiently for maximum use.

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Is a Self-Storage Business Profitable?

Profitability is in the eye of the beholder. But, generally speaking, a self-storage business can be profitable. In fact, it can be more profitable than many other types of business out there.

“Self-storage has evolved from the homely stepsister to the Cinderella of the commercial real estate industry. Once relegated to sites unsuitable for other productive uses and stigmatized as unsightly metal buildings, self-storage properties historically haven’t attracted sophisticated investors’ attention,”  according to the CCIM Institute , a commercial real estate network. “Yet in recent years, the segment’s solid performance and stable returns have piqued the interest of a growing number of investors.”

Starting a storage business

What makes a self-storage facilities profitable? A self-storage facility is an attractive investment because of the relatively low operating costs. It requires less upkeep than an office building or multifamily complex, for instance, and demands less overhead — namely in the form of labor — than most other kinds of income-generating real estate .

Furthermore, aside from the main business of renting out storage units, a self-storage facility can make money by selling locks, cardboard boxes, packing tape, insurance, and other products and services.

Additionally, the month-to-month nature of self-storage leases enables a facility owner to raise rent more easily than for properties that traditionally offer long-term leases, such as office buildings and multifamily complexes. This allows for more frequent pricing increases if desired.

As  noted by Marc Goodin , co-founder of Storage Authority Franchising, “a properly planned, operated and funded facility can be a very rewarding and profitable business.” This includes creating and adhering to a  self-storage business plan , which most lenders will want to see from someone considering the purchase or construction of a storage facility.

Pros and cons of owning a storage unit business

Among the five pros and five cons of owning a self-storage business are:

• Pro:  Great potential for profit.
• Pro:  Growing demand.
• Pro:  Low overhead compared to other real estate investments.
• Pro:  Often-minimal management.
• Pro:  Prospects for lucrative add-on products and services.
• Con:  Self-storage facility is a business, not just a piece of property.
• Con:  Possibility of picking poor location.
• Con:  Up-and-down movement in occupancy and rental rates.
• Con:  Constant concerns about hiring and managing employees.
• Con:  Stiff competition from other storage operators, particularly ones with a big regional or national footprint.

Profit margin of a self-storage business

As you’re mulling the pros and cons of a self-storage business and you’re pondering the moneymaking potential, keep in mind that there’s not necessarily one right or wrong way to look at profitability. In many cases, someone may use the word “profit” as a proxy for financial success.

For instance, one self-storage business owner might measure profitability based on the profit margin. According to one estimate, a self-storage facility generates a typical  profit margin of 41% .

Net operating income of self-storage units

Meanwhile, another self-storage investor might focus on net operating income, or NOI. Owners of income-generating properties use NOI as a yardstick for profitability. To come up with NOI for your small business, you subtract operating expenses from revenue.

The five publicly traded self-storage REITs in the U.S. like to emphasize NOI when they are reporting financial results to investors.

Public Storage, the largest of the REITs, posted same-store NOI (an apples-to-apples financial comparison of facilities open at least a year) of nearly $1.75 billion in 2020. Public Storage forecasts same-store NOI growth of 9.4% to 11.9% in 2021 versus the previous year.

Extra Space Storage, another self-storage REIT, notched same-store NOI of nearly $770 million in 2020. For 2021, the company predicts NOI growth of 13.5% to 15.5% compared with the previous year.

Revenue is only one part of boosting NOI, controlling expenses for your small business is the other. Some major expenses that can hamper your facility’s profitability include property taxes, snow removal, and debt service.

Return on investment for self-storage businesses

Another way to approach profitability, in the loosest sense of the word, is to examine the return on investment, or ROI. In self-storage, there are two key types of ROI: cash-on-cash ROI and cap-rate ROI.

According to Investopedia, cash-on-cash ROI measures — normally on an annual basis — the amount of cash flow relative to the amount of cash invested in a property. Cash-on-cash ROI is expressed as a percentage. “It is considered relatively easy to understand and one of the most important real estate ROI calculations,” the website says.

Then there’s cap-rate ROI. As Chron.com explains, the cap-rate ROI is the profitability ratio obtained when you divide ROI by the purchase price of a storage facility. In the self-storage industry, you’ll often hear folks refer not to the cap-rate ROI but simply to the cap rate, or capitalization rate, of a facility.

In calculating the cap rate, “the purchase price is used rather than down payment because down payments can vary widely, which can skew the results; your cash-on-cash ROI for the identical facility using the same NOI will be a lot different if you buy a facility with a 20% down payment compared to a 5% down payment,” Chron.com says.

A cap rate in self-storage might be 6.5%, whereas the cap rate for a retail or office building might be 5%. Cap rates vary according to a property’s fundamentals and location, and fluctuate over time.

Building a self-storage facility

Of course, the profitability equation almost certainly will change if you’re going to build a new facility from the ground up instead of buying an existing facility.

The Millionacres investment website  points out  that developing a facility “is the most cost- and labor-intensive method for investing in this industry; however, it can be extremely lucrative if done properly. It takes a high level of experience, knowledge and resources to help make this a successful endeavor.”

Bottom line: development costs and construction costs can eat into your business venture’s profits if you aren’t careful.

Maintaining occupancy

Regardless of whether you build or buy a self-storage facility, the business’ long-term profitability and viability rests largely on maintaining healthy occupancy numbers. While a 65% occupancy rate might cover operating and debt expenses, experts generally recommend shooting for an occupancy rate of 80% to 90%. Buoyed by pandemic-driven demand, the industrywide occupancy rate averaged 91.7% in 2020.

Industry observers say the robust occupancy rates achieved during the pandemic and the accompanying economic downturn further underscored the recession resilience of the self-storage sector. The sector’s resilience likely will remain for some time to come, with one forecast indicating an annualized growth rate of 8% in the U.S. market from 2020 to 2025.

Long term outlook

In August 2021, Joe Russell, president and CEO of Public Storage, said the rise of hybrid work arrangements “gives us confidence that overall adoption of self-storage will continue to grow, and is looked upon favorably by consumers and businesses as a cost-efficient alternative to storing goods in residential or commercial space.”

The long term feasibility of the self-storage industry seems to be stronger than ever.

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How to build your own storage facility

If you are considering installing a storage facility to start your business, then you are one of the many Americans that are taking this leap of faith. It is clear that self-storage buildings can be a profitable solution when you are starting out on your own in business, especially when you see that steel storage buildings are cheap and easy to install. However, as with most things in life, there is a more complicated backstory that you will need to consider. In fact, it can be a complex process with you needing to make significant decisions right now that will have a ripple effect for the lifetime of your new venture.

The Good, the Bad, and the Ugly

Before you spend your money on self-storage buildings, take a moment to check out some of the main pros and cons so that you feel well-educated on what you are getting yourself into:

Over the past five years, many people have had to declare bankruptcy than over the past twenty years. The main reasons for this are choosing the wrong location, building too big, and poor rental income. The main reason these people have failed is not that the business premise is wrong but more because they have not taken the time to plan and prepare before jumping in.

Interestingly, over the past four years, there has been a limited amount of prefab storage buildings being installed, which has given the existing companies time to fill up. This also means that there is now an opportunity to install metal storage buildings in locations where there is a good demand. If you are interested in trying out this self-storage business model, then we have shared some of the most important aspects that you need to consider across the rest of this article.

Finding Out Everything You Need to Know About Storage Facilities and Building Them

Starting any new self-storage business comes with a number of risks, and this is as true for storage facilities as it is for any other entity. It can also be hard to find the best and most accurate information in a world that is filled with unchecked online sources. To help you get started, we have compiled the most up-to-date and on-point set of steps that you can follow so that your business is ready to go and is set to thrive.

Work Out Your Costings

The first thing you need to do is take an honest look at your finance and work out how much you can afford to spend and invest in your self-storage business. Armed with that information, you can then work out the size of the storage building you can afford and the location of your new business. Remember, you need to consider the ongoing costs before you manage to fill your facility, as this is often where people fail.

Create Your Feasibility Study

Creating a feasibility study will help you analyze if your project will work in the area you have selected. These studies take into account the economic, legal, technical, and scheduling aspects that will need to be considered before you can commit to starting your business. The more detailed this study, the less likely your business will fail.

Write Your Business Plan

The biggest mistake anyone can make when going into self-storage business is to avoid writing a business plan. Your business plan will not only set out your ideas, costings, and projected earnings, but it will act as a document that can be shared with investors, banks, and other financial agents when you are looking for financial support. Plus, a good self-storage business plan will help you work out the kinks in your plan so that your new venture has a greater chance of success.

Choosing the Right Storage Building

When all your plans and finances are in place, it is time to select the right storage building for your venture. Contact an expert supplier like us at Storage Building Central. We can work with you to choose the right storage building and the right costings so that you stick to a budget and maximize your potential earnings. Plus, with our design experts on hand, we will help you to maximize every inch of your new build.

Developing Your Build into a Storage Facility

With your storage building ordered and installed, you will then need to begin developing it into a storage facility. This means getting the inner space constructed, thinking about branding, and setting up security so that your potential clients feel confident that you can meet their needs.

Finding Finance for Your Storage Building

If you are unable to finance your storage building or need ongoing investment to maintain the building, then you will need to turn to banks and potential investors to get the capital you need. There are many different options available, and you are more likely to be successful if you have a thorough plan and timescale to share.

Choose Storage Building Central for Your New Storage Facility

If you are ready to enter the storage building business, then the advice we have provided should stand you in good stead. Remember to take the time to plan your costs, map out your proposal and find the best location before you part with any cash.

Then, when you are ready to build, get in touch with us here at Storage Building Central to order your self storage buildings . With over twenty years of industry expertise, our team is on hand and ready to help you create the business you have been dreaming of.

We take pride in delivering at speed and have the best materials in the trade so that you end up with storage buildings that will last for many years to come. If you are ready to start your journey, then we are here to help. Call us today at +1 (844) 315-3151 to discuss your needs – we cannot wait to hear from you!

Claude English

LOOKING FOR A PRESS BOX SOLUTION FOR BASEBALL COMPLEX WITH LOWER LEVEL STORAGE.

Stephan Michaels

Hi Claude! Sorry for the delay in response. If you still are in the market for that press box solution give our building specialists a call at +1(844)315-3151 so they can go over details with you. Thanks!

Chelsea Estep

I’m interested in exploring the demographic aspect. Would it be better to need more units or have some empty? Any ideas for a happy medium. How Mom and Pop can a facility be?

Hi Chelsea! Thanks for dropping us a line! Please give us a call at 1-844-315-3151 so our building specialist can go over details with you and make sure you are on the right track.

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Self Storage Business Plan Sample

JUN.05, 2018

Do you want to start self storage business?

Do you want to start a self storage business? A self storage company provides storage space (such as lockers, containers, rooms, outdoor space) to individuals and businesses. People use the services of self storage companies whenever they run out of space, move to a new place or simply do renovations in their homes. Businesses and companies operating in small facilities use the services of self storing companies for storing their business inventory or archives since they are unable to store these things due to limited space. And considering the economic situation of today, where people are forced to live in small homes and business are forced to operate in small offices, self storage businesses have become a need for everyone. So if you want to start this business, chances of making profits are really high. In case, you don’t know how to start your own self storage business , the first thing you must do is to prepare a comprehensive business plan which will establish the basis of your company’s future operations and decisions. To help you make your self-storage business plan, we are here providing you the business plan for a self storage business startup named ‘Houston Self Storage’

Executive Summary

2.1 the business.

Houston Self Storage is licensed and insured self storage company located in Downtown Houston. The company will provide short- and long-term self storage services by offering storage units in various sizes to accommodate all sorts of storage needs of the customers. Our storage units business model is specifically designed to fulfill the requirements of all sorts of customers.

2.2 Management

Houston Self Storage will be a joint venture owned by Jack Elisken and Mike Harvin, both of which are experienced industry professionals. Jack has been associated with storage industry while Mike has been associated with the moving industry, so both of them have the right resources and knowledge needed for starting a self storage business . This venture will be equally funded by both parties and both will have equal ownership in it.

2.3 Customers

Our target market is the residential community, institutions and organizations as well as the corporate sector based in Houston. Considering our target customers, we are based in the best possible location for opening a self storage business .

2.4 Target of the Company

We aim to become the best self storage business of Houston within next five years of our startup. Our main business targets to be achieved as milestones over the course of next three years are as follows:

• To achieve the net profit margin of $10k per month by the end of the first year, $15k per month by the end of the second year, and $25k per month by the end of the third year
• To balance the initial cost of the startup with earned profits by the end of the first year
• To start another storage center in Texas city after six years of startup

Company Summary

3.1 company owner.

Houston Self Storage will be a joint venture owned by Jack Elisken and Mike Harvin. Jack is a highly experienced industry professional and has been serving as the General Manager of New State Warehouse for the last 7 years. Mike owns a moving company, Realtime Movers. The venture will be equally funded by both parties and both will have equal ownership in it.

3.2 Why the Business is being started

Jack and Mike have decided to start self storage business for the purpose of making profits in this industry. Considering the increasing population of Houston and relatively less self storage facilities in the city, their venture has fair chances of succeeding.

3.3 How the Business will be started

Starting a self storage business is not easy since you have to considered a lot of things. In case you don’t know how to start a self storage business , you can take help from this sample self-storage business plan. Houston Self Storage will be located in Downton Houston, a place where it is needed the most. The facility covers an area of about 55,000 square feet and is divided into various segments of 10-by-30-foot storages, 10-by-25-foot storages, 10-by-20-foot storages, 10-by-15-foot storages, 10-by-10-foot storages, 5-by-10-foot storages, and 5-by-5-foot storages. The financial experts have forecasted following costs for expenses, assets, investment, and bank loans for the startup .

The detailed startup requirements, startup funding, startup expenses, total assets, total funding required, total liabilities, total planned investment, total capital and liabilities are given in the table below.

Services for customers

A self storage business can be immensely profitable provided that you plan it effectively and choose the right place for its startup. A self storage business profit margin depends on what services will you provide to your customers so make sure to plan your services before you think about how to start a storage unit business . Planning your services before opening a storage facility is also important because it helps you with the planning of other subsequent components.

Houston Self Storage will provide short- and long-term self storage services to its customers. We will offer storage units in various sizes to accommodate all sorts of storage needs of our customers. All storage units will be completely secure from theft and other sorts of damage. We will be open 24/7 for providing you the services you deserve. Our facilities will always be clean, well-lit and we will provide moving carts to facilitate our customers with loading and unloading of stuff. Our main services can be divided into following categories.

• Standard Self Storage Units: We will provide standard self storage units in various sizes to accommodate all your goods. Our storage units are specially designed while keeping user requirements in mind.
• Temperature-Controlled Self Storage Units: In addition to standard storage units, we will also provide climate-controlled self storage units in which constant temperature will be maintained throughout the year. These storage units are perfect for storing delicate items such as important documents, electronics, wood and furniture.
•  Packing and Storage Supplies: We will also provide a variety of packing and storage material for the convenience of our customers such as packing boxes, tapes and other important supplies.
•  Moving Services: We will also provide moving services to our customers within our storage facility by loading and unloading the goods of our customers.

Marketing Analysis of self storage business

The most important component of an effective self storage business plan is its accurate marketing analysis that’s why the company owners acquired the services of marketing experts to help them through this phase.

It is only after this stage that a good storage unit business model could have been developed. After identifying the availability of current self storage facilities and the current demand in Houston, the marketing experts and analysts also helped them to select the best site for starting a storage facility business . The success or failure of a self storage business totally depends upon its marketing strategy which can only be developed on the basis of accurate marketing analysis. Marketing analysis is a must-do thing before you even think about how to run a storage unit business . If you are starting on a smaller scale, you can do marketing analysis yourself by taking help from this self storage business plan template or other storage facility business plan samples available online. But if you are opening a storage business on a larger scale, it is always best to seek the counsel of marketing experts for developing a good storage unit business plan .

5.1 Market & Industry Trends

The first component of the marketing analysis of your storage units business plan is the feasibility analysis of the current self storage industry. Feasibility analysis dictates whether the industry has become saturated or not and helps figure out whether a startup in this industry will succeed or not. That’s why it must be catered before you start storage unit business .

The self storage industry started in 1960’s due to the increasing need for commercial and residential storage. Since its start, the industry has doubled in size each decade and the ROI have been greater as compared to other forms real estate investment. As of now, the self storage industry generates $38 billion annual revenue in just United States. The industry comprises of around 58,000 businesses and is responsible for employing more than 141,000 people across the country.

As per the growth statistics, the industry has seen a 7% growth rate from 2012 to 2017 and is also projected to increase in future. The reason behind this increase is the increasing tendency of people to live in rental house business and the increase in accumulation of leisure articles such as exercise equipment, wind-surfers, and skis etc. In short, considering the ever-increasing population, we can say that self storage industry is feasible for startups. Hence, you can open a storage unit business and can make it immensely profitable provided that you plan it successfully.

5.2 Marketing Segmentation

For developing an effective marketing strategy, it is crucial to analyze the market segmentation of the future customers of our self storage business. A successful and efficient marketing strategy can only be developed after a business completely knows its potential customers that’s why it is important to consider before starting a storage facility . Our target market is the residential community, institutions and organizations as well as the corporate sector based in Houston. Considering our target customers, we are based in the best possible location to open a storage unit business . Our experts have identified the following type of target audience which can become the future consumers of our services.

The detailed marketing segmentation of our target audience is as follows:

5.2.1 Residential Community:

Our first target group is the residential community based in Houston. The residential community comprised of people from all races and all sorts of background, most of which are financially stable. Due to economic decline, which has affected every single person in the United States, people are living in smaller houses which usually are unable to fit everything. Most people have accumulated leisure articles like exercise equipment, wind-surfers, and skis which they occasionally use, so most of the time people store such articles in self storages so as to avoid stuffing their homes. Another important aspect is about 44% of Houston population live on rent and whenever they have to move from one place to another, they use self storage services for temporarily storing their goods.

5.2.2 Local Businesses:

Our second target group is the local businesses and startups based in Houston. Many businesses in the city, such as retail outlets, often use self storage units for storing their stock on a temporary basis. Another important aspect is many startups and even some of the established businesses operate within limited space such as small offices so they need to stock their inventory and products in self storage units.

5.2.3 Institutions & Organizations:

Many institutions and organizations operating in limited space also need the services of self storage businesses to stock their inventory and products. The detailed market analysis of our potential customers is given in the following table:

5.3 Business Target

We aim to become the best self storage business of Houston within next five years of our startup. The company owners aim to start another storage center in Texas city after six years of startup. Our main business targets to be achieved as milestones over the course of next three years are as follows:

• To provide unparalleled services in the industry and set a benchmark of quality

5.4 Service Pricing

Service pricing is one of the most important factors in deciding the marketing strategy. Selecting the prices of services is difficult because startups have to attract customers while yield profit at the same time. These two things cannot be achieved at the same time and the only way out is to select a compromised trade-off between the two. After considering our competition and the market demands, we have priced our services in the similar ranges as of our competitors. The reason behind our pricing policy is to achieve MARR (minimum attractive rate of return) which would not be possible in case of offering our services in lower prices.

After identifying the market trends, the market demand, and the potential customers of the startup, the next step is to develop an ingenious sales strategy. Like marketing analysis, sales strategy is also an important component of a self storage business model and must be considered before you think about how to run a self storage business .

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6.1 Competitive Analysis

Self storage industry is a competitive one considering the fact that there are currently around 58,000 self storage businesses in the United States. However, we hope to excel our competitors due to several competitive aspects. Our first and the most important competitive advantage is our strategic location which is ideal to start a self storage business plan . We are located in Downtown which is the central hub for all local businesses and is very near to the residential zone of the city. In addition to our location, our quality services will also be one of our biggest competitive advantages. We will ensure that our storage units are clean and well-lit as well as safe and secure from theft or other sorts of damages. We will also provide moving carts to facilitate our customers with loading and unloading of stuff. Lastly, we will open round the clock, seven days of week, ensuring your access to your stuff at any time of the day.

6.2 Sales Strategy

After carrying out a detailed. our experts came up with the following brilliant ideas to advertise and sell ourselves.

• We will carry out a large-scale social media campaign for our advertisement.
• We will launch our website by which customers can know whether a storage unit with their desired requirements is vacant or not. Customers will also be allowed to make reservations through our webpage.
• We will offer customer referral awards to promote our services.

6.3 Sales Monthly

Our experts have forecasted following sales on a monthly basis which are summarized in the column charts below.

6.4 Sales Yearly

Our experts have forecasted following sales on a yearly basis which are summarized in the column charts below.

6.5 Sales Forecast

Considering the quality of our services, our sales pattern is expected to increase with years. By analyzing our market segmentation strategy, our experts have forecasted the following sales on a yearly basis which are summarized in the following column charts.

The detailed information about sales forecast, total unit sales, total sales is given in the following table.

Personnel plan

A business can succeed only if it is properly planned during its initial stages. Just like the planning of other components, you must also develop a personnel plan before you think about how to start a self storage facility . The personnel plan not only establishes what staff is required for the startup but it also gives an estimate of the costs incurred on their salaries. However, it is never easy to estimate the number and type of staff needed for a company before it is even launched therefore seek the help of HR experts before you open a self storage business .

7.1 Company Staff

Jack will act as the General Manager of the company while Mike will serve as the Chief Executive Officer of the company. Following staff has been estimated by HR experts for starting a self storage unit business .

• 2 Administrators / Accountants for maintaining financial records
• 4 Sales Executives responsible for marketing and discovering new ventures
• 20 Field Employees for operating and maintaining the storage
• 8 Movers for helping customers load and unload their stuff
• 8 Cleaners for keeping store clean at all times
• 2 Technical Assistants for managing website and social media pages
• 1 Front Desk Officer for acting as a receptionist
• 6 Security Officers

To ensure the best quality service, all employees will be selected through strict testing procedures and will be trained for a month prior to onboarding.

7.2 Average Salary of Employees

The following table shows the forecasted data about employees and their salaries for next three years.

Financial Plan

After deciding the strategy and personnel plan of the company, the next step is to develop a detailed map of the financial projections of the company. Just like the planning of other aspects, you must also prepare a financial plan before you start thinking about how to build a self storage business . The financial plan should craft a detailed map about the cost of startup, inventory, payroll, equipment, rent, utilities and how these costs will be covered with the profits. So, if you are thinking, is the self storage business a profitable business you’ll get your answer after you make a financial plan. To make an accurate financial plan, make sure to consult financial experts before you start your own storage unit business . The financial plan of Houston Self Storage is as follows.

8.1 Important Assumptions

The financial projections of the company are forecasted on the basis of following assumptions. These assumptions are conservative and can show deviation but to a limited level such that the major financial strategy of the company will not be affected.

8.2 Brake-even Analysis

 8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

Download Self Storage Business Plan Sample in pdf

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How to Start a Storage Unit Business With No Money

By: Author Tony Martins Ajaero

Home » Business ideas » Real Estate Industry » Storage Unit

A storage unit business, also known as a self-storage or storage facility business, involves renting out storage space to individuals or businesses on a short-term or long-term basis.

Customers typically rent storage units to store personal belongings, household items, business inventory, or other items that they may not have space for in their homes or offices.

The storage units are usually secure, climate-controlled, and accessible to customers, allowing them to store and retrieve their belongings as needed.

These facilities come in various sizes, ranging from small lockers to larger units that can accommodate furniture, vehicles, or other large items.

Storage unit businesses often provide security features such as surveillance cameras , access control systems, and on-site personnel to ensure the safety of stored items.

Additionally, some facilities offer amenities like 24-hour access, climate-controlled units, and packing supplies for added convenience.

Can You Start a Storage Unit Business with No Money?

Yes, you can start a storage unit business with no money. A good percentage of the people who started storage units, started the business because they have a space or a facility that they are not making use of. In essence, you can start a storage unit business from a facility you are not using or even from a shipping container.

The whole idea of a storage unit is to provide a safe and secure place where people can store their belongings for a short time.

The only niche storage unit business you may not be able to start with no money is a cold storage unit and a mobile storage unit business.

Steps on How to Start a Storage Unit Business

Conduct market research.

Conducting market research is crucial for understanding the demand, competition, and potential success of a storage unit business.

First, you start by clearly outlining your research goals. Understand what specific information you need, such as the size of the target market, customer preferences, competitor analysis, and potential growth opportunities.

Next, you are expected to define your target customer demographic. Consider factors like age, income, location, and storage needs.

Understand the specific needs and preferences of potential customers in the area where you plan to establish your storage unit business. Examine the local demographics of the area where you plan to operate.

Look at population size, income levels, lifestyle patterns, and other relevant factors. This information will help you tailor your services to meet the specific needs of your target market.

Determine the demand for storage units in your chosen location. Look for signs of increasing population density, a growing number of businesses, or other factors that suggest a need for additional storage space. Identify existing storage unit facilities in the area.

Analyze their services, pricing, and customer reviews. Understand their strengths and weaknesses. This information will help you differentiate your business and identify areas where you can offer better value.

Lastly, develop a marketing strategy based on your research findings. Identify the most effective channels to reach your target audience and promote your storage unit business.

a. Who is the Target Market for the Storage Unit Business?

• People moving to a new city or downsizing their homes.
• Individuals undergoing major life changes such as divorce, marriage, or retirement.
• Small businesses in need of extra space for inventory or equipment.
• Companies requiring temporary storage during office relocations or renovations.
• E-commerce businesses seeking space for product storage.
• Individuals storing seasonal items such as holiday decorations, winter clothing, or sports equipment.
• Businesses with seasonal inventory fluctuations.
• People with limited storage space in their homes or apartments.
• Individuals needing storage for cars, motorcycles, boats, or recreational vehicles.
• Hobbyists and collectors looking for a secure place to store valuable items.
• College students needing storage during summer breaks or while studying abroad.
• People facing unexpected situations like natural disasters, where temporary storage may be necessary.

b. Is Storage Unit Business a Profitable Business?

A storage unit business has the potential to be profitable , but like any business, success depends on various factors.

Available data shows that the self-storage market size is estimated at USD 58.26 billion in the current year and is expected to reach USD 72.15 billion by the end of the forecast period, registering a CAGR Of 4.37% during the forecast period.

Keep in mind that profitability might not be immediate; it often takes time to establish a customer base and build a reputation in the market.

c. Are There Existing Niches in the Industry?

Yes, there are existing niches when it comes to storage unit business, and some of them are:

• Outdoor storage
• Indoor storage
• Climate controlled storage
• Wine storage
• Car Storage
• Boat storage
• ATV storage
• Mobile Storage.

d. Who are the Major Competitors?

• Public Storage
• Extra Space Storage
• Life Storage, Inc.
• Simply Self Storage
• SmartStop Self Storage
• StorageMart
• Safeguard Self Storage
• Uncle Bob’s Self Storage (now Life Storage)
• StorQuest Self Storage
• Metro Self Storage
• Prime Storage Group
• US Storage Centers
• SecurCare Self Storage
• National Storage Affiliates Trust
• Compass Self Storage
• Devon Self Storage
• Storage Pros Management LLC.

e. Are There County or State Regulations or Zoning Laws for Storage Unit Business?

Yes, regulations and zoning laws for storage unit businesses in the United States are typically determined at the local level, which means that they can vary from county to county and state to state.

Zoning laws dictate where certain types of businesses, including storage facilities, can be located and under what conditions they can operate.

Different areas within a municipality or county are designated for specific types of land use. Zoning laws determine whether a storage unit business is allowed in a particular zone.

Storage unit businesses often require permits from local authorities. These permits may cover aspects such as construction, occupancy, signage, and environmental impact.

Zoning laws may specify requirements for the design and appearance of storage facilities, including building aesthetics, landscaping, and signage.

Some local regulations may outline security measures that storage unit facilities must implement to ensure the safety of stored items and the surrounding community.

Local regulations may address the environmental impact of storage facilities, including issues related to stormwater management, waste disposal, and hazardous materials storage.

Zoning laws may include provisions related to traffic flow, parking requirements, and the impact of the storage facility on local transportation infrastructure.

f. Is There a Franchise for the Storage unit Business?

Yes, there are franchise opportunities for storage unit business, and some of them are;

• Devon Self Storage.

g. What Do You Need to Start a Storage Unit Business?

• Business Plan
• Legal Structure and Registration
• Zoning Approval
• Secure and Accessible Location
• Storage Units and Infrastructure
• Security Systems
• Permits and Licenses
• Marketing and Branding
• Online Booking System
• Financial Capital.

Choose a Memorable Business Name

When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with.

It is essential that the name you come up with can easily be pronounced, is unique and easily memorable. Some of the catchy business name ideas suitable for a storage unit business are;

Creative Storage Unit Name ideas

• John Parker® Storage Unit Company, Inc.
• Rowe Yorke™ Storage Unit Company, LLC
• Maurice Adams© Storage Unit Company, Inc.
• Shawn Miller® Storage Unit Company, Inc.
• Jack Townsend® Storage Unit Company, LLC
• Folly Alison™ Storage Unit Company, Inc.
• Owen Silas® Storage Unit Company, Inc.
• Creflo Giovani™ Storage Unit Company, LLC
• Tony Martins© Storage Unit Company, Inc.
• Rav Fourteen® Storage Unit Company, Inc.
• Auckland Group® Storage Unit Company, Inc.
• Jamel McFadyen™ Storage Unit Company, Inc.
• Jose Mario™ Storage Unit Company, LLC
• John Hannah® Storage Unit Company, Inc.
• Cean Markson® Storage Unit Company, Inc.
• Mark Shannan© Storage Unit Company, Inc.
• West Brownson® Storage Unit Company, Inc.
• Julius Bornean© Storage Unit Company, LLC
• Collins Macklin® Storage Unit Company, Inc.
• Fortran Group® Storage Unit Company, Inc.

Register Your Business

A. what type of business structure is best for storage unit business.

The ideal business structure for a storage unit business is determined by a variety of factors, including the size of the company, the number of owners, the level of personal liability the owners are ready to accept, and the tax consequences of the various business structures.

However, we normally recommend that you start the business with minimal liability. An LLC is a hybrid corporate form that provides the flexibility of a partnership while also providing its owners with limited liability protection.

An LLC can have one or more owners, and the owners are not personally accountable for the debts or liabilities of the business. This business form is frequently used for small to medium-sized organizations.

b. Steps to Form an LLC

• Choose a Name for Your LLC.
• File Articles of Organization.
• Choose a registered agent.
• Decide on member vs. manager management.
• Create an LLC operating agreement.
• Comply with other tax and regulatory requirements.
• File annual reports.

c. What Type of License is Needed to Open a Storage Unit Business?

• Business License
• Zoning Permit
• Building Permit
• Environmental Permits
• Fire Department Permit
• Health Department Permit
• Signage Permit
• Occupancy Permit
• State Sales Tax License
• Storage Facility License.

d. What Type of Certification is Needed to Open a Storage Unit Business?

There is no specific certification required to start a storage unit business.

e. What Documents are Needed to Open a Storage Unit Business?

• Legal Structure Documentation (e.g., Articles of Incorporation, LLC Operating Agreement)
• Zoning Approval Documentation
• Property Lease or Ownership Documents
• Building and Construction Plans
• Security System Plans
• Insurance Policies
• Employee Identification Number (EIN) from the IRS
• Environmental Compliance Documents
• Health Department Approval (if applicable)
• Fire Department Approval
• Signage Permit Documents
• Financial Statements and Capital Verification.

f. Do You Need a Trademark, Copyright, or Patent?

For a storage unit business, the need for a trademark, copyright, or patent depends on the specific aspects of your business and the services you provide.

If you have a unique company name, logo, or tagline associated with your storage unit business that you want to protect, you might consider registering a trademark. This can help prevent others from using similar marks.

In the context of a storage unit business, you might consider copyright if you create original marketing materials, website content, educational resources, or software. For instance, if you develop unique storage unit software, you could potentially protect them through copyright.

In the context of a storage unit business, patents might be relevant if you develop a new and innovative technology or method that provides a unique advantage in the industry.

Cost Analysis and Budgeting

A. how much does it cost to start a storage unit business.

The cost to start a storage unit business can vary widely depending on factors such as the size of the business, location, equipment, and supplies needed, staffing costs, marketing expenses, and more.

However, a rough estimate could range from $120,000 to $500,000 or more, depending on the type, size (number of storage units) and scope of the business.

b. What are the Costs Involved in Starting a Storage Unit Business?

• Legal and administrative costs (the cost of obtaining business licenses and permits, registering the business, and consulting with attorneys and accountants): $2,500
• Equipment, and software: $55,000
• Staffing costs: $65,000
• Rent/lease: $125,000
• Marketing and advertising costs: $3,000
• Insurance costs: $2,800
• Miscellaneous Expenses: $5,000.

c. What Factors Determine the Cost of Opening a Storage Unit Business?

• The size of the storage unit business
• The choice of location
• The required licenses and permits
• The cost of hiring and paying a business consultant and attorney
• The cost of branding, promotion, and marketing of the storage unit business
• The cost of furnishing and equipping the storage unit business office
• The cost of the insurance policy covers
• The cost of registering the business
• Source of your supplies and ongoing expenses
• The cost of recruiting and training your staff
• The cost of the purchase and customizing of uniforms for your employees
• The cost for the grand opening of the storage unit business.

d. Do You Need to Build a Facility? If YES, How Much Will It Cost?

It is not necessary to build a new facility for your storage unit business , especially if you choose to operate from a leased facility. But, if you have the required finance, it will pay you to build your own facility.

The truth is that building or reconstructing a facility for your storage unit business will allow you to come up with a facility that will perfectly fit into your overall business goals and vision.

e. What are the Ongoing Expenses of a Storage Unit Business ?

• Property Lease or Mortgage Payments
• Property Maintenance and Repairs
• Utilities (Electricity, Water, Gas)
• Security System Maintenance and Monitoring
• Insurance Premiums (Property, Liability, etc.)
• Property Taxes
• Marketing and Advertising Costs
• Staff Salaries and Benefits
• Software and Technology Expenses (e.g., online booking systems)
• Pest Control and Facility Cleaning Costs
• Miscellaneous costs.

f. What is the Average Salary of your Staff?

• Facility Manager – $75,000 per year
• Accountant – $56,000 per year
• Sales and Marketing Manager – $40,000 per year
• Compliance and Safety Officer – $38,000 per year
• Administrative Staff – $34,000 per year
• Customer Service Representative – $33,000 per year
• Security Guard – $35,000 per year.

g. How Do You Get Funding to Start a Storage Unit Business?

• Raising money from personal savings and sale of personal stocks and properties
• Raising money from investors and business partners
• Sell shares to interested investors
• Applying for a loan from your bank/banks
• Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
• Source for soft loans from your family members and friends.

Write a Business Plan

A. executive summary.

Auckland Group™ Storage Unit Company, LLC is a dynamic and innovative storage unit business set to redefine the storage solutions landscape in San Francisco, California.

Our company is committed to providing secure, convenient, and customizable storage options to meet the diverse needs of individuals and businesses in the bustling urban environment of San Francisco.

Strategically situated in San Francisco, our storage facility is easily accessible to clients. The prime location ensures convenience and meets the growing demand for secure and accessible storage in the city.

Auckland Group™ Storage Unit Company, LLC aims to establish a state-of-the-art storage facility equipped with cutting-edge security features, climate-controlled units, and a user-friendly online booking system. Our commitment is to offer a seamless storage experience for customers seeking reliable and flexible storage solutions.

b. Products and Service

• Security: Implementing the latest security technologies to ensure the safety of stored items.
• Climate-Controlled Units: Offering specialized storage options for temperature-sensitive items.
• Online Booking: Providing customers with a user-friendly online platform for easy reservations and payments.
• Flexible Unit Sizes: Catering to a variety of storage needs, from small personal items to larger commercial inventory.
• 24/7 Access: Enabling customers to access their belongings at their convenience.

c. Mission Statement

“At Auckland Group™ Storage Unit Company, LLC, our mission is to redefine the storage experience by providing secure, convenient, and personalized solutions.

We are committed to offering a safe and accessible space for individuals and businesses to store their belongings, coupled with exceptional customer service.

With a focus on innovation and community engagement, we aim to exceed expectations and become the trusted choice for storage solutions in San Francisco.”

Vision Statement:

Our vision at Auckland Group™ Storage Unit Company, LLC is to be the premier storage destination in San Francisco, setting the standard for excellence in the industry.

We envision a future where our state-of-the-art facilities, cutting-edge technology, and commitment to sustainability make us the go-to choice for customers seeking reliable, flexible, and secure storage options.

d. Goals and Objectives

The goals of a storage unit business are to provide secure and convenient storage solutions for individuals and businesses.

Objectives include implementing cutting-edge security measures, offering climate-controlled units, fostering a user-friendly experience, achieving financial sustainability, and becoming a trusted leader in the storage industry.

e. Organizational Structure

• Chief Executive Officer (Owner)
• Facility Manager
• Sales and Marketing Manager
• Compliance and Safety Officer
• Administrative Staff
• Customer Service Representative
• Security Guard.

Marketing Plan

A. swot analysis.

• Strategic Location : Prime placement in San Francisco, a high-demand urban market.
• Innovative Technology : Advanced security systems and a user-friendly online booking platform.
• Diverse Storage Options : Flexible unit sizes, climate-controlled units, catering to varied customer needs.
• Customer-Centric Approach : Commitment to exceptional service and customer satisfaction.
• Initial Establishment Costs : High upfront costs for facility setup and technology integration.
• Competition : Presence of established competitors in the local storage industry.
• Dependence on Local Economy : Vulnerability to economic downturns affecting storage demand.

Opportunities

• Market Expansion : Explore opportunities for additional locations in neighboring areas.
• Partnerships : Form strategic partnerships with local businesses for mutual benefits.
• Service Diversification : Introduce specialized storage services, such as unique collections or business inventory management.
• Economic Fluctuations : Adverse economic conditions impacting customer spending on storage services.
• Regulatory Changes : Changes in zoning laws or regulations affecting storage facility operations.
• Security Risks : Evolving cybersecurity threats and the need to continuously invest in security measures.

b. How Do Storage Unit Businesses Make Money?

Storage unit businesses generate revenue by renting out storage space to individuals and businesses on a short-term or long-term basis. Customers pay a recurring fee based on the size of the rented unit and the duration of use.

Additional revenue streams may include charges for climate-controlled units, security deposit fees, and fees for added services like packing supplies.

c. Payment Options

• Credit Card Payments
• Bank Transfers
• Electronic Funds Transfer (EFT)
• Payment Platforms (PayPal, Square, etc.)
• Mobile Payment Apps.

d. Sales & Advertising Strategies

• Utilize a user-friendly website with online booking capabilities. Implement digital marketing strategies such as search engine optimization (SEO), social media advertising, and targeted online campaigns to reach potential customers.
• Attract new customers and encourage repeat business by offering special promotions, discounts for long-term rentals, or referral incentives. Create limited-time offers to drive urgency and boost sales.
• Forge partnerships with local businesses, real estate agencies, or relocation services to expand your reach.
• Optimize your online presence for local search by ensuring accurate business information on Google My Business and other online directories.
• Invest in clear and attractive signage at your storage facility to capture the attention of passersby.
• Establish a referral program where existing customers receive incentives for referring new clients.
• Showcase your storage facility with high-quality photographs and virtual tours on your website.

Financial Projection

A. how much should you charge for your product/service.

Base Rental Fee: The primary charge is based on the size of the storage unit, typically expressed every month.

Climate-Controlled Unit Fee: Additional charges for units equipped with climate control.

Security Deposit: Refundable upfront payment to cover any potential damages or unpaid fees.

Insurance Premium: Optional or mandatory insurance coverage for stored items.

Access Hours Fee: Some facilities may charge extra for extended access hours or 24/7 access.

Late Payment Fee: Penalties for payments made after the due date.

Admin or Move-In Fee: A one-time fee covering administrative costs and initial setup when renting a unit.

Packing and Moving Supplies: Charges for boxes, tape, locks, and other packing materials available for purchase.

Unit Upgrades or Downgrades: Charges associated with changing to a larger or smaller storage unit.

Transfer Fee: A fee for transferring items between units within the facility.

Special Promotions or Discounts: Discounts for long-term rentals, promotions for new customers, or referral incentives.

Cleaning Fee: A fee for cleaning and preparing the unit after it has been vacated.

b. How Much Profit Do Storage Unit Business Owners Make a Year?

The annual profit for storage unit business owners varies widely based on factors like location, facility size, and management efficiency.

On average, small to mid-sized facilities may generate profits ranging from $30,000 to $100,000 per year, while larger operations in high-demand areas can exceed $500,000 annually.

c. What Factors Determine the Amount of Profit to Be Made?

• Location and Market Demand
• Operating Expenses
• Unit Occupancy Rates
• Unit Size and Specialty Offerings
• Marketing and Customer Retention.

d. What is the Profit Margin of a Storage Unit Business?

The profit margin of a storage unit business typically ranges from 11% to 30%. Profitability is influenced by factors such as location, occupancy rates, operating expenses, and effective marketing. Well-managed facilities in high-demand areas can achieve higher profit margins within this range.

e. What is the Sales Forecast?

• First Fiscal Year (FY1): $750,000
• Second Fiscal Year (FY2): $1 million
• Third Fiscal Year (FY3): $1.5 million

Set Up your Shop/Office

A. how do you choose a perfect location for a storage unit business.

• Select areas with a significant population and a growing community to ensure a consistent demand for storage services.
• Choose a location with easy accessibility, high visibility from main roads, and convenient proximity to residential and commercial areas.
• Analyze the level of competition in the chosen area. Consider locations with moderate competition or opportunities to offer unique services that stand out.
• Ensure that the chosen location complies with local zoning regulations and has the necessary permits for operating a storage facility.
• Conduct thorough market research to understand the storage needs of the local population.

b. What State and City is Best to Open a Storage Unit Business?

• Atlanta, Georgia
• Los Angeles, California
• Chicago, Illinois
• Dallas/Fort Worth, Texas
• Denver, Colorado
• New York City, New York
• San Francisco, California
• Seattle, Washington
• Las Vegas, Nevada
• Orlando, Florida.

c. What Equipment is Needed to Operate a Storage Unit Business?

• Storage Units (Various sizes and types to accommodate different storage needs.)
• Surveillance cameras, access control systems, and alarm systems
• Climate Control Systems
• Online Booking and Management Software
• Office Equipment (Computers, printers, and other office supplies for administrative tasks.)
• Furniture and Fixtures
• Moving Equipment (Dollies, carts, and other moving equipment to assist customers with transporting their items.)
• Pest Control Equipment
• Clear and visible signage for directions, rules, and branding.
• Tools and equipment for routine facility maintenance and repairs.
• Security Lighting
• Online Security Measures
• Communication Systems (Phones, intercoms, or communication tools for customer inquiries and assistance.)
• Transportation Vehicles (If offering mobile storage or pickup/delivery services.)
• Waste Disposal Equipment.

Hire Employees

Hiring employees for a new storage unit business is essential for efficient operations and customer service. Trained staff can handle customer inquiries, maintain security, and ensure the facility’s smooth day-to-day functioning.

Key employees include a facility manager to oversee operations, customer service representatives to assist clients, maintenance personnel for upkeep, and security personnel to monitor the premises.

Launch the Business Proper

Organizing an opening party for a new storage unit business can be a good way to introduce your business to the community and create awareness about your services. However, whether or not to have an opening party is ultimately a decision that depends on your business and goals.

If you want to organize a proper launch for your storage unit business, then you must make sure to invite members of the community who may be interested in your services.

a. What Makes a Storage Unit Business Successful?

• Selecting a strategic and easily accessible location in a high-demand area.
• Implementing robust marketing strategies, both online and offline, to create awareness, attract customers, and differentiate the business from competitors.
• Ensuring top-notch security with surveillance systems, access controls, and other measures to instill trust and protect stored items.
• Prioritizing exceptional customer service
• Streamlining operations, including online booking, payment systems, and efficient facility management, to provide a seamless and hassle-free experience for customers.

b. What Happens During a Typical Day at a Storage Unit Business?

On a typical day at a storage unit business , staff engage in customer interactions, assisting with inquiries, reservations, and payments.

Facility maintenance is ongoing, ensuring cleanliness and order. Security measures are regularly monitored, including surveillance systems and access controls.

New units may be prepared for occupancy, and existing units may undergo inspections. Administrative tasks, such as record-keeping and responding to emails or phone calls, contribute to operational efficiency. Marketing efforts, both online and onsite, may be implemented to attract new customers.

c. What Skills and Experience Do You Need to Build a Storage Unit Business?

• Skills in strategic planning, financial management, and business operations to ensure the overall success of the storage unit business.
• Understanding of real estate principles and market trends to select an ideal location for the storage facility.
• Skills in marketing strategies, customer acquisition, and sales to attract and retain customers.
• Strong customer service skills to address inquiries, and concerns, and ensure a positive customer experience.
• Knowledge of security systems and protocols to safeguard stored items and maintain the integrity of the facility.
• Familiarity with local zoning laws, permits, and regulations related to storage facilities.
• Negotiation skills for securing favorable lease agreements, vendor contracts, and other business-related contracts.
• Competence in using technology for online booking systems, security monitoring, and other operational aspects.
• Knowledge of facility maintenance to ensure the physical infrastructure remains in optimal condition.
• Ability to identify and address challenges promptly, whether related to customer concerns, facility maintenance, or operational issues.

Related Posts:

• Self Storage Unit Business Plan [Sample Template]
• 10 Best Marketing ideas for Self Storage Units
• How Much Does It Cost to Start a Storage Unit Business?
• How Much Land is Enough for Self Storage Building Project?
• Can You Transform Existing Buildings into Storage Facilities?

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Moscow's High Rise Bohemia: The International Business District With No Business

• Written by Dario Goodwin
• Published on March 17, 2015

The Moscow International Business Center (Also known as Moskva-City ) was meant to be Russia ’s ticket into the Western world. First conceived in 1992, the district at the edge of Moscow’s city center is intended to contain up to 300,000 inhabitants, employees and visitors at any given moment and, when completed, will house over 4 million square meters of prime retail, hotel and office space to create what the Russian government desired most from this project: an enormous financial district that could dwarf London’s Canary Wharf and challenge Manhattan . Twenty three years later though, Moscow-based real estate company Blackwood estimates that as much as 45% of this new space is entirely vacant and rents have plummeted far below the average for the rest of Moscow. The only press Moskva-City is attracting is for tenants like the High Level Hostel , a hostel catering to backpackers and other asset-poor tourists on the 43rd floor of the Imperia Tower , with prices starting at $25.50 for a bed in a six-person room. This is not the glittering world of western high finance that was envisioned back in the post-Soviet 90s; but what has it become instead?

As one might expect from a project of this sheer ambition, Moskva-City has a troubled past. The economic crash in 2008 hit Russia hard enough to evict the previous Mayor of Moscow , Yuri Luzhkov, who had been a cheerleader for the district, and replace him with the considerably more austere Sergei Sobyanin, who famously declared that the whole idea was an “urban planning mistake.” But as recently as 2013, the Wall Street Journal was triumphantly claiming that Moskva-City had risen from the dead, citing 80% occupancy rates and glowing quotes from industry insiders claiming that Moskva-City was the "place to be." Driven by record highs in oil prices, Moscow looked poised to become the next Dubai .

Instead, Moscow is now in the grip of an economic winter prompted by western sanctions and drops in the price of oil. The large financial groupings that Moskva-City was meant to shelter have been warned off by their inability to issue credit to international markets, for example - but Moskva-City isn’t just an Empire State Building left empty by the Great Depression.

A fundamental problem that is holding Moskva back compared to the rest of Moscow is the simple fact that currently, getting to Moskva-City is nigh-on impossible at peak hours. Moscow has long been plagued with transport problems, ever since the government failed to match the dramatic expansion of the city with a dramatic expansion of the transport system after the Second World War. Despite being only 2.5 miles from the Kremlin , Moskva-City is only just inside the ring road that bounds the city center and which acts as the only real transport link to it (and as a result, is clogged by construction vehicles.) A railway and metro hub has been finished, but so far only runs a one-stop shuttle service to the closest Metro station that is actually integrated with the rest of Moscow Metro. The isolation of the outer districts is a large, negative part of the Moscow psyche, and it’s not surprising that this is driving away the globetrotting financial elite this project was meant to attract.

The project is managed by architectural practice No.6, which is a constituent part of the large Moscow based practice Mosproject-2 , which is itself a public corporation headed up by Mikhail Vasilyevich Posokhin, who is apparently the “People’s Architect of Russia.” Despite all this state involvement, the project has still managed to become bogged down in bureaucratic infighting - each lot is managed and developed individually, which has led to developers competing for occupants by slashing rates.

Much has been written about the way modern financial districts and towers that inhabit them can be unwelcoming, forbidding or even hostile by design, but the skyscrapers of Moskva-City seem even less friendly than usual. The site - a former stone quarry, chosen out of necessity as the only place in the city center where a new district could be plausibly constructed - is isolated both physically and visually, leaving the cluster a stark anomaly on the city skyline. Even the names seem more imposing than optimistic now: Imperia, City of Capitals , Steel Peak.

The Mercury City Tower , so far the tallest completed building on the site, is officially “a strong reference to Russian constructivism, [which] gives the tower a strong vertical thrust similar to the one found in New York's Chrysler building .” It would be easy to criticize the Mercury City Tower for picking ‘inspirations’ that are so totally opposed to each other - The Chrysler building the defining emblem of American pre-crash confidence and Constructivism created with the express purpose (especially architecturally) of extending the Bolshevik revolution into a social revolution - but the way they smash those two inspirations together is almost beautifully ironic.

Even though the High Level Hostel is less an asset to a financial district than it is a PR problem, it’s been a huge success since opening in September, already ranked 27th out of 766 hostels in Moscow by TripAdvisor. According to the management agency for Moskva-City , 58% of the new occupant signings this year have been non-financial, including a number of small to medium size businesses. Other areas of office space have been occupied by a restaurant and a culinary school, while another space has been redeveloped into a 6,000 seat theater.

While Moskva-City is failing to be a financial district that could take on the world, it’s inadvertently becoming a humanized space catering to the very groups that the Russian economic miracle left behind. Taking advantage of rents lower than the rest of Moscow , the world class facilities and the sheer desperation of the developers, the humanization of Moskva-City could well create the world’s first high-rise bohemia.

Of course, these are not spaces designed for a community, or even for people: these are spaces designed for money, and there’s little scope for changing something that seems so baked into the design of Moskva-City . The High Level Hostel is trading off of the irony of being a hostel in a banking tower, but it’s perfectly possible that at some point people will no longer find this joke funny (especially in a building that seems hostile to the very idea of humor). The isolation of Moskva, even though it allowed this community to spring up in the first place, is just as detrimental to a humanized district as it is to a financial one: even bohemians need to move around the city, or the district risks becoming a black-spot instead of a hot-spot.

Moskva-City’s isolation won’t last forever. The end of construction will open the roads up to traffic, and plans to properly integrate the spur lines of the Metro in this area into the wider system are well under way. The integration of the district will inevitably push up rents, and the Russian economy will eventually boom once again. When that happens, Moskva-City is prime territory to be reconquered by the giants of international finance, and it seems unlikely that the municipal or national governments would want to step in to protect this accidental district. For now, though, the towers capture perfectly this moment of Russia ’s schizophrenic understanding of its place in the world.

• Sustainability

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The spiraling 246m high Evolution Tower is located on plots 2-3 of Moscow-City high-rise business district on Presnenskaya Embankment of Moscow river. New multi-function center occupies the territory of 2.5ha in area, 2ha of which is a landscaped terraced civic plaza, the integral part of the new city piazza, the central open public space of Moscow-City business downtown.

ivic plaza includes 10m high ceremonial stairs (leading from embankment and pedestrian Bagration Bridge to the higher terraced levels) as well as landscaped areas with green lawns, trees, water features, travellators and feature lightboxes.

Evolution Tower

Location: Moscow, Russia

Typology: High-Rise, Office, Mixed-Use

Years: Construction 2011-2014

Status: Built

Height: 246m

Design team: GORPROJECT  (2011-2015), 

RMJM Scotland Ltd 

(original concept 2005-2007)

Under the piazza levels the 2-storey retail mall connects the Evolution Tower with metro station and pedestrian bridge over Moscow river, thus integrating the new development into the large Moscow-City district, the Europe's newest and most ambitious high-rise cluster (7 of 10 highest European skyscrapers ae located here), housing over 4 million square meters of office and retail areas with associated transport and engineering infrastructure.   

The Evolution Gallery mall houses food court and 6,000m2 family entertainment and educational center for various children activities (the first center of that kind in Moscow). 

The 82,000m2 office tower has 52 levels rotated 3 degrees each floor with overall twist reaching 156 degrees clockwise. With world’s largest innovative cold-bent glazing the tower façade provides seamless floating reflection that rotates the panoramas of Moscow skyline vertically, where the reflected clouds moving up enhance the dynamic visual impact of the twisted tower, an unprecedented optical effect in the world architecture.  The Crown with supporting steel structure made of two twisted arches provides the helipad at the very top as well as the open observation roof decks at Levels 51-52 featuring the best panoramas of Moscow riverside with views towards the historical center. 

From the very beginning the developer and architects have set an ambitious task to create a recognizable and symbolic tower, the new icon of contemporary Moscow.  The sculptural DNA-shaped twisting tower symbolizes the evolution spiral with the white façade ribbon wrapping over the roof in a form of 90-degree twisted infinity symbol, which speaks of philosophical concept of evolution and celebrates the development of human civilization. From spiraling onion domes of St. Basil to the iconic Tatlin Tower concept the Russian architecture was obsessed with idea of spiral. The simple and innovative design was based on principles of twisting square-shaped floor plates with vertical structural RC frame supported by a central core and 8 columns with continuous beams and 4 spiraling columns at the corners. 

The proposed structural scheme with cantilevered continuous RC beams and cantilevered floor slabs  picking up the overhangs from the twisted floor plates appeared to be simple, efficient and economical. The complex sculptural tower façade envelope was built using the innovative cold-bent glazing with flat double glazed units cold-formed in 3D within the aluminum frame under its own weight to avoid stepping in geometry. This approach appeared to be both more energy-efficient and more cost-efficient solution in comparison to the stepped curtain wall units previously applied in some twisted unitized facades. 

The multifunctional architectural glass by Guardian significantly reduces the solar gain whilst providing the double glazed unit thermal performance equal to standard triple glazed unit normally used in Moscow to withstand harsh winter conditions. The use of innovative TWIN elevators by ThyssenKrupp saved 2 shafts within the core (10 TWINs instead of 12 double-deckers in the original concept) and contributed to the overall project sustainability with lesser power consumption per passenger. Other sustainable design features include green roofs over the retail mall and integrated coil floor heating under landscaped civic piazza levels using the return water in winter to melt the snow and ice for the safety of pedestrians. The reinforced concrete formwork by PERI, including self-climbing ACS formwork specially designed for the twisting corner columns, allowed to achieve the impressive speed of RC frame construction of 6 days per floor due to perfect site logistics by Renaissance Construction as main contractor. 

All innovative design solutions and optimizations secured the delivery of this fairly unique skyscraper within the project plan and almost within the budget of the standard ‘benchmark’ high-rise building. This turned out to be a major achievement of the design and construction teams. 

The organic twisting silhouette dominates on its background of extruded glass towers greatly contributing into the overall composition of the high-rise Moscow-City cluster. The development delivered a significant open public space on the landscaped roof of the retail mall, thus providing the perfect mix of business uses with public and social activities of the civic plaza and the mall with its food court and core family entertainment function. The synergy of that mix with large underground car-park complemented by the direct link to the metro station and pedestrian bridge as means of main public transportation secured the successful project completion with the recent entire tower acquisition. Bold shape and timeless aesthetics as added values brought by its unique architecture materialized in a commercial success of this project with the tower being fully acquired for corporate headquarters even in the context of oversupply in the Moscow office market. The outstanding quality of architecture and its fine detailing, state of the art building services and communications of Class A office Tower together with the highest level of transport accessibility  (direct access to metro station from the lobby, large car-parking, proximity to boat pier and helipads) make this property very attractive for tenants and visitors. The beautiful riverside panoramas from offices are complemented by green roof and water features of the large 2ha terraced civic piazza as the main recreational outdoor space with direct link from the office tower lobby. 

The highest quality of façade cladding, glazing, vertical transportation and MEP equipment from leading European and international suppliers provided the truly Class-A office environment with the luxury of minimalist spirit in the architecture of the new landmark on the Moscow skyline. Even before its completion the sculptural spiral of Evolution Tower, more often appearing in commercials, posters and magazines, became a new icon for modern Moscow as the symbol of its business ambitions and fast development. The Evolution Tower also became the monument to the courage of its developer (Snegiri Group) and investors, who built the great deal of trust with architects, engineers and contractors by investing their efforts and funds in a challenging adventure of designing and building the unique and innovative skyscraper for the capital of Russia. 

Evolution Reflections

Philipp nikandrov.