The self-storage business gained immense popularity worldwide during the 1960s, and to this date, it continues. Like any other business, self-storage businesses also have some prerequisites that need to be fulfilled. A successful, profit-generating storage business requires proper planning, market research, a competent team, and an influx of funds.
When the world was facing financial setbacks dawned upon by the pandemic, self-storage business was one of few that did not have any difficulty. People who had already rented storage units continued to do so, while lots of new people also booked their storage units. The self-storage business is on the rise all over the world, storage units are deemed great commodities and an easy fix for solving storage problems.
If you want to start your very own business, a self-storage business is the safest bet on the market. Any business related to real estate is considered profitable, and self-storage business also falls into the same category.
By following a simple demand and supply rule, you can successfully launch your own storage company and build it up from scratch with dedication and hard work. Following the traditional business model templates is not feasible today as market trends continuously change nowadays.
A successful business model
So what makes any business successful? The answer can be detailed and complicated, as there are no set parameters that need to be fulfilled to succeed. Self-storage services are pretty straightforward. You have space that you rent out to people who need to increase their storage space. A successful self-storage business model consists of the following attributes.
Research the market
Market research is essential for any business, but it becomes mandatory when it comes to services. Recognising your target audience is recommended in order to tailor services for a specific clientele.
While conducting thorough research of the market, you will get to know about the demand for your services. You will also identify what is lacking in the market and what service you can introduce to fill the market gap. Before diving straight into the business, have a definite answer so that you can go in all prepared.
Build your brand
There are hundreds of storage facilities in London alone, with a new one popping up every couple of weeks. The storage industry is already saturated, in order to make a name for your business, you have to make sure you have a unique USP.
Introducing a service that only offers traditional Cardiff storage units might not be very profitable as tens of companies already do that. You can offer unique features like free van rental service, pick and drop service in order to distinguish your brand.
Make sure you have a steady influx of cash to invest in branding and marketing your business. Get all the work done by professional agencies that specialize in brand image.
Digitalise your services
Times have changed, people now live on the go. Nobody has time to go out and waste a whole working day to find a suitable storage provider. The only way to go forward is to align your business with the latest advancements in technology. Digitalize your service so that people can browse and book your storage units without setting a foot out of the house.
Make sure your business is easily accessible to everyone online. Hire professional services to develop a website for your business. Create your website with attention to detail, carefully mentioning all the services you provide. Design your website in a manner it is easy to navigate and use, mention your contact details in easily readable fonts.
Go the extra mile
A typical self-storage industry business model is based only on a storage facility’s rental revenue. Even after full occupancy of a storage facility, the profit margins stop at 11%, which is a good figure but can be improved.
You can rake in extra profits by offering value-added services and features that are unique and unheard of. You can offer pickups, collections, and drop-offs of your client’s stuff for a nominal fee. You can also sell packing materials such as cardboard boxes, tapes, and shrink wraps to increase your profit margins.
Recognise your competition
Since the self-storage industry already has some giant corporations with chains of storage facilities scattered nationwide, the competition can get brutal. For your business to hold its ground, make sure you offer discounted packages and offers initially.
STORED, Big Yellow, and Alexanders Removals are some of the major BySTORED – self storage bristol industry players. Have a look at their business model, services, prices, and customer support carefully to determine your business strategy. To attract more customers, you can offer first-time discounts, and to keep them, you can offer discounts on long-term storage packages.
Diversify your services
The self-storage business is already in a revolutionary phase, still, it has so much untapped potential. You can diversify your services and attract a new client base as well. You can offer student storage packages at low prices, you can also provide vehicle parking service for automobiles, jet skis, and boats.
Zeeshan Hussain Bhatti is a blogger by passion. He is a Digital Strategist and Tech Geek by profession with extensive knowledge and hands-on experience as a Sr. Digital Marketer. Zeeshan Bhatti continuously and eagerly explores the modern-day tech landscapes contributing his knowledge seldom as a Writer for various subjects such as leading Edge Techs, AI, Automotive and Design Industry.