business plan for self storage

Everything You Need to Know About How to Start a Self-Storage Business

From Alaska to Alabama, roughly 50,000 self-storage facilities are scattered around the country. That’s about the same number of McDonald’s, Starbucks and Subway locations across the U.S.  combined . These facilities are the foundation of the U.S. self-storage industry , which was projected to generate $37 billion in revenue in 2019.

At each of these self-storage facilities, people pay rent — usually by the month — to store their stuff in units of various sizes. They could be stashing furniture, art, appliances, TVs, documents, holiday decorations, wine, vehicles, boats or RVs. Many small businesses rely on self-storage units to keep business equipment, inventory and supplies. Some customers even have converted self-storage units into high-end “man caves” and “she sheds.”

Each of those self-storage properties is not only a warehouse for our wares — every facility also is a small business. And it can be a lucrative business, at that. By one estimate, the typical profit margin of a self-storage business in the U.S. is 11%. That’s well above the profit margins for many other types of small businesses; for example, the typical profit margin of a restaurant ranges from 3% to 5%.

Given those numbers, starting a self-storage business sounds pretty appealing, doesn’t it? It sure does. However, anybody looking at starting a self-storage company must look beyond the profits and weigh the practical considerations:

• How much will it cost to start a self-storage business?
• What kind of research and planning do you need to do before starting a self-storage business?
• Should you buy an existing self-storage facility?
• Should you build a self-storage facility from the ground up?
• How will you manage and market your self-storage facility?

Those are big questions, of course, but then starting a self-storage business is a big undertaking. Follow along as we guide you through what it takes to start a self-storage business.

How Much Will it Cost to Start a Self-Storage Business?

Before scouting locations for a self-storage facility — no matter whether you’re looking at buying an existing facility or building a new one — you’ll need to crunch some numbers.

At the outset, you’ll need a good sense of how much it’ll cost to get into the self-storage business. The numbers will vary widely based on a variety of factors, such as location, acquisition costs, land costs and facility construction costs . (We’ll get into the details later.)

Not only must you think about the costs to purchase or develop a facility, but you also must examine where the money will come from:

• Do you have enough liquid assets to buy or develop a self-storage facility on your own? Can you afford to earmark those assets for a self-storage facility?
• Do you need to take out and acquisition or construction loan?
• Do you need to recruit self-storage investors to help finance an acquisition or development deal?

After you’ve come up with answers to those questions, you’ll need to figure out how much it’ll cost to operate the facility once it’s yours. Are you and your family going to run it on your own? Will you have to hire staff to operate it? Would it be best to leave the operations side to a third-party management company? Do you need to install self-storage management software such as SiteLink ? In the end, how much time do you want to spend running a self-storage facility?

Remember, a self-storage facility is more than a structure. It’s a business.

To get into the storage business, you’ll almost assuredly need to carve out millions of dollars to purchase or construct a facility, and to cover various operating expenses, particularly payroll and taxes. A report released in early 2018 by commercial real estate company CBRE shows real estate taxes accounted for 28 percent of all self-storage operating expenses, with on-site and off-site management costs eating up another 38 percent of operating expenses.

What Kind of Research and Planning Do You Need to do Before Starting a Self-Storage Business?

Once you’ve done some high-level thinking about starting a self-storage business, it’s time to do some research. All of that research will go into a feasibility study that will, as its name suggests, tell you whether the business idea is feasible. You might be able to do this study on your own, but you’d be better off hiring a self-storage consultant to perform it.

Whichever route you go, you need to answer a critical question:

If I build it or buy it, will they come?

In other words: if you invest money in a self-storage facility, will you generate enough revenue to cover debt service and operating expenses, and still make a profit?

Performing market research is crucial. This exercise will help you pinpoint the demographics of the customer base within a one- to five-mile radius of the facility. A three- to five-mile area is the typical size of a market for a self-storage facility.

You’ll want to nail down the median income in the market area (self-storage renters tend to be in the middle-income and upper-middle-income brackets), along with the median age (self-storage tenants are normally in their early 20s to mid-50s).

In addition, you’ll want to review the following aspects of your proposed market area:

• Current population (anywhere from about 20,000 people in a rural setting to 100,000 or more in an urban setting, as a general guideline).
• Projected population growth (more people means more prospective tenants).
• Daily vehicle traffic (the majority of self-storage facilities depend heavily on drive-by traffic to attract customers).
• Competitive landscape. Which self-storage facilities already are operating in the area? What is their occupancy rate? Are there any facilities that are under construction or are planned within the trade area?

Other components of the feasibility study normally will include an overview of the self-storage industry; long-range projections for rental rates, income, expenses and property value; and details about the storage project’s zoning.

Writing a Business Plan

Every business should have a business plan. Simply put, a business plan can help propel a business toward success, letting you realize your goals and manage issues that might arise. Most lenders will want to see a business plan before extending a loan.

Lots of online templates are available for writing a business plan, so you certainly can try tackling it on your own. You also can seek assistance from a nonprofit like SCORE, which offers free business mentoring, or you can hire a writer who specializes in business plans.

Keep in mind that a business plan for an existing self-storage facility will look quite different from a business plan for a proposed facility.

Each business plan should be tailored to your own needs, but a business plan for a self-storage facility usually will feature information such as:

• Mission statement.
• Vision statement.
• Ownership structure.
• Business structure (such as an LLC, or limited liability corporation).
• Staff roles and responsibilities.
• SWOT analysis (strengths, weaknesses, opportunities and threats).
• Market analysis.
• Competitive analysis.
• Marketing and sales strategies.
• Pricing strategy. Roughly speaking, monthly rents for a self-storage facility in a high-population area can be anywhere from 50 cents to $4 per square foot.
• Menu of product and service offerings, including a rundown of the unit sizes, like 5×5, 10×10 and 10×20.
• Sources of capital.
• Revenue streams.
• Revenue and expense projections covering several years. Financial modeling will enable estimates of revenue and expenses on a per-square-foot basis.

One factor in making sure revenue projections are met is marketing. While drive-by traffic delivers lots of customers, marketing — particularly online self-storage marketing — can’t be ignored. Self-storage consumers increasingly are turning to the internet as their first stop when shopping for a storage unit.

Any smart internet strategy should ensure your facility can be found on search engines like Google as well as through online self-storage marketplaces like SpareFoot. In addition, your facility’s website should be up to date. Companies like storeEDGE specialize in developing, revamping and maintaining mobile-ready websites for self-storage operators .

How to Create a Self-Storage Business Plan [Plus a Free Template!]

Should You Buy an Existing Self-Storage Facility?

In terms of buying an existing facility , prices are all over the map, just as the self-storage facilities themselves are. As you might expect, an existing self-storage facility in New York City, NY, likely will go for tens of millions of dollars, whereas an existing facility in rural Iowa likely can be purchased for less than $1 million.

A spot analysis of storage facilities for sale in March 2019 found that asking prices generally ranged from $1 million to $10 million per facility. Some facilities on the market also were bundled for sale as a single portfolio.

Unless you’re a licensed real estate professional, it’s wise to hire an experienced self-storage broker to help you find and eventually buy a facility. A seasoned broker knows the market and knows how to negotiate the price.

If you’re going to be running the facility, you, of course, will want to buy a facility in the region where you live. But if you’ll be handing over operations to a third-party management company, then it doesn’t necessarily matter where the facility is. Just be sure you and your broker have a good grasp of the local market.

Should You Build a Self-Storage Facility from the Ground Up?

This should come as no surprise, but location also plays a big part in the cost of building a new facility . You might be able to put up a single-story, 40,000-square-foot self-storage development in a small town for $1 million or less, whereas a two-story, 80,000-square-foot facility in a more urban setting could set you back $6 million. Keep in mind that these are rough estimates.

As a rule of thumb, you can expect to spend anywhere from $25 to $75 per square foot on new construction. However, that’s merely an approximate range. Again, the location of the facility — including the cost of the land — will dictate the price tag for construction.

Here are some statistics to keep in mind if you’re developing a self-storage facility:

• Facilities range from 10,000 square feet to 100,000 square feet or more.
• The average self-storage facility encompasses 46,000 net rentable square feet (the amount of money-generating space that can be rented by tenants).
• A facility typically covers 2.5 to 5 acres.

What follows are six things to take into account when you’re building storage units:

• What will the mix of units be?  If the facility is in a trade area that’s populated predominantly by apartment renters, then you might want to include more small units, such as 5×5 or 5×10. But if the residents of the trade area are mostly homeowners, more 10×10 and 10×20 units might be in order.
• Should the facility consistent only of drive-up units or only indoor-access units?  Or should there be a blend of drive-up and indoor-access units. The answers depend on the demographics of the trade area.
• Should there be only climate-controlled units or only non-climate-controlled units?  Or should there be a combination of the two? The local climate will come into play regarding this decision, as will your construction budget.
• Should you limit the facility to one building?  Or will you have enough room — and does it make sense — to spread the units across several buildings? How much land is available, along with how much demand is projected, will influence the configuration of the facility.
• Should space be set aside for storage of boats, RVs and other vehicles?  The answer hinges, in part, on market research indicating how many boat, RV and vehicle owners live in the trade area.
• Should you look at converting an existing structure, such as a shuttered retail store, into a self-storage facility?  A number of self-storage developers have successfully transformed unused and often overlooked spaces into tax-revenue-generating, job-creating storage facilities.

Aside from what the facility will look like, another key factor is zoning and entitlement.

A huge issue will be how the property is zoned. If the property is already zoned for self-storage, then that removes a huge hurdle. But if the property needs to be rezoned, then you could devote months or even years to seeking approval for a zoning change.

In some places, government officials and local residents vigorously oppose self-storage facilities, based on the ill-informed notion that these facilities are magnets for crime and traffic, and that they’re eyesores. The reverse is actually true. Self-storage facilities don’t cause a rise crime or traffic, and many modern facilities are being designed to fit into and even accentuate neighborhoods.

Additionally, there’s the issue of entitlement. This involves obtaining approval from government entities for your development plans. As with rezoning, an entitlement case could drag on for months upon months.

All of that being said, keep two things in mind:

• Development of a self-storage facility takes time and patience (and, of course, money).  Aside from the zoning and entitlement, construction can be delayed by bad weather, shortages of labor and limited supplies of construction materials.
• Development of a self-storage facility requires expertise.  A development team should include seasoned legal, real estate, financial, construction and design professionals. Few people who are new to the self-storage industry can go it alone when developing a new facility.

Financing a Self-Storage Facility

Just as there is with any business, there are some hard truths about self-storage, no matter whether you’re talking about a newly constructed or newly acquired facility.

For one thing, you’ll need money to launch the business and keep it running.

As we mentioned before, the amount of money you put into a facility varies greatly, based on location and myriad other factors. But before you spend a dime, you’ll have to decide how you’ll go about financing an acquisition or a new development.

For instance, will you need to take out a loan? A number of options are available, such as acquisition loans, construction loans and SBA loans. Many of these loans cover terms of 10 to 25 years. Work with a lending professional who’s well-versed in the self-storage industry to point you in the right direction.

To qualify for a self-storage loan, here are four things you’ll likely need:

• A credit score of at least 680.
• A credit history clear of recent bankruptcies, foreclosures and tax liens.
• A cash down payment of 10 percent or more.
• A business track record of at least three years.

Perhaps you don’t need to take out a loan and, instead, have enough liquid capital to buy or build a facility. However, do you have enough money to operate the facility? You don’t want to drain your retirement fund to purchase or develop a self-storage facility.

Or you might consider teaming up with other investors to buy or build a facility. This can be done through:

• A debt partnership, which is a lending relationship that does not assign an ownership stake to the person or entity you are borrowing the money from.
• An equity partnership, with each partner chipping in a certain amount of cash and owning a share of the business.
• A joint venture with, say, a self-storage developer. Each partner owns a certain percentage of the business.
• A syndicate of accredited investors assembled for the sole purpose of buying or developing a facility.
• A tenant-in-common arrangement, which allows at least two people to own a property and enables the relatively seamless transfer of an ownership stake to another party.

Financing Options for Self-Storage Businesses

How Will you Manage and Market Your Self-Storage Facility?

While storage facilities traditionally generate healthy, stable cash flow, anyone entering the self-storage business must realize that this won’t be a get-rich-quick operation.

Generally speaking, the occupancy rates of self-storage facilities range from 70% to 95%. With a facility that’s newly constructed or that’s being repositioned, a new owner often will face a lease-up period of 18 to 36 months before a facility reaches occupancy stabilization. Positive cash flow also could be years down the road.

However, the good news is that the breakeven occupancy rate for a self-storage facility falls well below other asset classes. By one measure, the breakeven point is 40% to 45% occupancy in self-storage , versus 60% or more in the multifamily sector. Furthermore, self-storage facilities boast some of the best shorter-term and longer-term returns in commercial real estate.

When it comes to buying a self-storage facility, one investment number that’s essential to note is the capitalization rate (cap rate for short). “Capitalization rates are always the over-arching consideration for both buyers and sellers in the self-storage industry,” according to self-storage brokerage firm SkyView Advisors.

As explained by SkyView Advisors, the cap rate is the ratio of a property’s NOI (net operating income) to the value of the property. For example, if a property sells for $1.5 million and its NOI is $120,000, then the cap rate is 8% ($120,000 is 8% of $1.5 million).

“In the simplest terms, the cap rate reveals to an income property investor what percentage [he/she] can expect to earn if he buys the property with all cash,” SkyView Advisors said.

For example, if an investor thinks a property is worth a cap rate of 8%, then he or she expects a cash return of 8%.

In the third quarter of 2018, cap rates for self-storage facilities ranged from 4.5% among Class A facilities to 8.5% for Class C facilities, according to CBRE.

Bottom Line

At the end of the day, buying or building a self-storage facility will most certainly consume time, energy and money. However, the payoff can be substantial in a continually growing industry. Evidence of that growth abounds:

• In 2018, self-storage occupancy rates and rental rates in a number of U.S. markets reached record highs.
• Demand for self-storage keeps going up thanks to an array of trends, including the overall downsizing of baby boomers’ households, the general preference among millennials for renting apartments versus owning homes and the sustained mobility of American workers.
• Over time, self-storage has demonstrated that it’s a recession-resistant sector.

In short, self-storage furnishes a wealth of reasons why acquiring an existing facility or building a new facility can open the roll-up door to attractive investment gains.

“Storage facilities need little capital outlay or upkeep, their property taxes are modest, and net acquisitions in that sector have surged,” Forbes.com contributor Brad Thomas observed in November 2017. “And so, in good times and in bad, kind of like marriage, good old storage units are like a trusty … spouse.”

Related Resources:

How to Buy a Self-Storage Facility

Thinking about buying a self-storage facility? Here is what you need to know before starting your search. Keep Reading

How to Sell a Self-Storage Facility

It's time to sell your self-storage facility and cash out. Here's what you need to know to prepare your units for sale. Keep Reading

Do You Need a Self-Storage Feasibility Study?

Before you invest in building, find out why you should first invest in a self-storage feasibility study. Keep Reading

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

Self Storage Business Plan Template

Written by Dave Lavinsky

Self Storage Business Plan

Over the past 20+ years, we have helped over 9,000 entrepreneurs and business owners create business plans to start and grow their self-storage facilties. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a self storage business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Self Storage Business Plan?

A business plan provides a snapshot of your self-storage business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Self-Storage Facility

If you’re looking to start a self-storage or storage unit business, or grow your existing self-storage business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your self-storage business in order to improve your chances of success. Your self storage business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Self Storage Facilities

With regards to funding, the main sources of funding for a self-storage business are personal savings, credit cards, bank loans, and angel investors. With regards to bank loans, banks will want to review your self storage business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a self storage facility is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding or, like a bank, they will give you a loan. Venture capitalists will not fund a self-storage business. They might consider funding a self-storage business with a national presence, but never an individual location. This is because most venture capitalists are looking for millions of dollars in return when they make an investment, and an individual location could never achieve such results.

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How to write a business plan for a self storage business.

If you want to start a self storage facility or expand your current one, you need a business plan. Below we detail what should be included in each section of your business plan for a storage facility.

Executive Summary

Your executive summary provides an introduction to your self storage business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of self-storage business you are operating and the status. For example, are you a startup, do you have a self-storage business that you would like to grow, or are you operating a chain of self-storage facilities.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the self-storage industry. Discuss the type of self-storage business you are operating. Detail your direct competitors. Give an overview of your target market. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of storage business you are operating.

For example, you might operate one of the following types of storage businesses:

• Portable container : this type of storage business allows customers to easily transport self storage units.
• Climate controlled storage : this type of storage business protects and preserves property against harmful temperature and humidity levels.
• Vehicle storage : this type of storage business allows customers to safely store various types of vehicles.

In addition to explaining the type of storage business you will operate, the Company Analysis section of your storage unit business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of occupied self storage units, contract renewals, number of referrals, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

While this may seem unnecessary, it serves multiple purposes.

First, researching the self storage industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your storage business plan:

• How big is the storage industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your self storage facility? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your storage unit business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: students, business owners, families, and people who are relocating.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of self-storage business you operate. Clearly, students would want different service options and would respond to different marketing promotions than families who are relocating, for example.

Try to break out your target market in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the customers you seek to serve. Because most self-storage facilities primarily serve customers living in the same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other self storage facilities.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes businesses with their own storage space and people who store extra items in their attics or basements. You need to mention such competition to show you understand that not everyone who needs storage will utilize a self-storage company.

With regards to direct competition, you want to describe the other self-storage facilities with which you compete. Most likely, your direct competitors will be self-storage facilities located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What types of storage services do they offer?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of the competitive analysis section of your business plan is to document your areas of competitive advantage. For example:

• Will you provide superior services?
• Will you provide services that your competitors don’t offer?
• Will you make it easier or faster for customers to use your services?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your business plan.  

Marketing Plan

Product : In the product section, you should reiterate the type of storage business that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to self storage, will you provide 24-hour security, electronic gate access, or on-site staff?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your self storage business. Document your location and mention how the location will impact your success. For example, is your self storage business located near a main highway, near public transportation, etc. Discuss how your location might provide a steady stream of customers.

Promotions : The final part of your self storage marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to local websites
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your self storage business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your storage business, including security management, facility maintenance, and customer service.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to lease 100 self storage units, or when you hope to reach $X in revenue. It could also be when you expect to expand your facility or launch in a new location.  

Management Team

To demonstrate your self storage business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in managing self storage facilities. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing self storage companies or successfully running small businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $100,000 on building out your self storage business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. For example, let’s say a local office building approached you with a $50,000 contract to provide self storage services for their building occupants. Let’s further assume the contract would cost you $50,000 to fulfill in terms of increased staffing costs. Well, in most cases, you would have to pay that $50,000 now for employee salaries, utilities, etc. But let’s say the company didn’t pay you for 180 days. During that 180-day period, you could run out of money.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting a self storage business and growing it:

• Location build-out including design fees, construction, etc.
• Cost of equipment like surveillance technology, dollies, and climate control systems
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your location lease or a blueprint of your facility.  

Putting together a business plan for your own self storage business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the self storage industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful self storage business.

Self Storage Business Plan FAQs

What is the easiest way to complete my self storage business plan.

Growthink's Ultimate Business Plan Template  allows you to quickly and easily complete your Self Storage Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of self storage business you are operating and the status; for example, are you a startup, do you have a self storage business that you would like to grow, or are you operating multiple self storage businesses.

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Other Helpful Business Plan Articles & Templates

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Self Storage Business Plan

Have you ever found yourself surrounded by a lot of stuff and wondered where to place those extra furniture or boxes of memories?

But you’re not alone; there are so many individuals who can’t get enough of all their belongings. And that’s where self-storage comes into the picture!

The self-storage facility stores people’s stuff by charging some rental fees. It offers a secure haven for your cherished items, from lockers to outdoor spaces.

Surprisingly, if you are planning to start a new self-storage or warehouse business, you will need a solid business plan for a successful business.

So, we have created this sample business plan for you to get a better idea about how a business plan should look and what details you have to include in your self-storage unit business plan.

But before diving right into a detailed business plan, let’s consider a few things you need to understand.

Things to Consider Before Writing a Self-Storage Business Plan

As per statistics, the global self-storage market is projected to reach an astonishing value of $71.37 billion by 2027, with a CAGR of 5.65% from 2021 to 2027.

The primary reason for this rapid market growth is due to the increasing need for commercial and residential storage.

The self-storage companies provide secure spaces and various storage unit types such as containers, compartments, lockers, and outdoor spaces. So that, customers can safely store and retrieve their belongings anytime.

In fact, the self-storage industry has been the fastest-growing sector in commercial real estate since it started in the 1960s.

And the cool part is that self-storage unit operators don’t need a ton of staff, utilities, or maintenance. So, it makes sure that your self-storage facilities earn substantial profits.

Now that you know a little about the industry, it’s time to discover what to include in your self-storage business plan.

What to Include in Your Self Storage Business Plan?

• Executive Summary 
• Company Overview
• Industry Analysis
• Customer Analysis
• Competitive Analysis
• Marketing Plan
• Operations Plan
• Management Team
• Financial Plan

1. Executive Summary 

An executive summary is a brief overview of your entire business plan. Although it is the first section of the plan, entrepreneurs write it at the last when the whole plan is ready.

This section highlights the most important points, from business concept and mission-vision statements to financial outlook. 

You may start this section with a compelling introduction to your self-storage business, including the business name, owners, location, and type of business you are running.

Give a brief overview of your market opportunity, service offerings, management team, and marketing strategies. Highlight financial projections if you’re seeking funding.

Most of the readers will go through the executive summary before making a judgment. So, make sure to keep it clear, concise, and engaging to grab readers’ attention.

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2. Company Overview

The company overview section is a detailed description of your business, including the business idea, name, location, future goals, history, and other business-related facts.

This section helps you provide an in-depth understanding of your business, introducing and positioning your business as an ideal solution for your target audience. So, write it in a clear and concise yet impactful way.

First, you may discuss the basic details of your storage facility and what type of storage business you are operating. It could be a warehouse, portable containers, vehicle storage, lockers, climate-controlled storage, etc.

Have a look at Maxwell’s business introduction written using Upmetrics AI Assistant :

Apart from that, your company analysis section should include the following information:

• Vision and mission statements
• Business legal structure(Sole proprietorship, partnership, LLC, or corporation)
• History and background of storage business (if any)
• Owners’ names with qualifications
• Future business goals(Short-term or long-term)
• Milestones you have accomplished(number of self-storage units occupied, number of referrals, contract renewals, etc.)

3. Industry Analysis

The industry analysis section is an overview of the specific industry and market. It supports you in a better understanding of the external business environment.

While it seems unnecessary, it helps you develop strategies that maximize business opportunities and lower potential risks.

By doing thorough research, you may learn a lot about the storage industry and the market that you will serve. And this will show your readers that you are an industry expert.

So, start this section with a quick introduction to the self-storage industry. Describe the self-storage business in terms of size(in dollars) and mention whether the market is falling or growing in the USA.

You may conduct detailed market research to examine previous trends and market growth potential. This helps you identify the top competitors in the industry and their market shares.

Don’t forget to highlight a few factors that affect the industry, including regulatory rules, market trends, and other businesses’ competitive activities .

4. Customer Analysis

The customer analysis section of your self-storage business plan provides the details of the customers you serve or intend to serve.

It helps you identify your target customers, evaluate their needs, and explain how your services cater to them.

You may consider some examples of customer segments, such as business owners, families, individuals who are relocating, and students. Try to break your target market in terms of their psychographic and demographic profiles. 

For a demographic profile, you should include details of the age, gender, location, and income level of the customers. Most self-storage facilities mainly serve customers staying in the same town or city. 

You may explain the target customers’ wants and needs for demographic profiles. If you properly understand these demands, it will help you attract and retain customers.

You may refer to the below example written from Upmetrics’ self-storage business plan:

Target Market of Maxwell – Storage and Warehouse

We are aware of the fact that for any business to thrive so well in profit, it has to first and foremost define its market. The target market for self-storage and warehouse facilities cuts across people from different walks of life.

The fact that people need a secure place to keep their properties for a short period of time makes the self-storage and warehouse rental business a thriving and growing business.

Maxwell – Storage and Warehouse, LLC will work towards providing services, facilities, and an environment that will help us reach out to our target market. These are the categories of people that we intend to market our self–storage and warehouse facility to:

• Working Class Adults / Corporate Executives
• Sports Clubs (soccer team, athletics team, and choreographers et al)
• College Students / Schools
• Community and Corporate organization
• Business People / Entrepreneurs
• Government Officials
• Religious centers (Crusade Teams)
• Merchants, Importers, and manufacturers
• Sports Men and Women
• Construction companies

5. Competitive Analysis

Competitive analysis is essential to recognize key competitors within the industry, including direct and indirect competitors.

Also, this section will help you know your storage business’s unique selling propositions along with market positioning.

You may start by identifying direct and indirect competitors & other alternative self-storage companies in the industry.

Direct competitors can be other self-storage facilities that provide the same self-storage services as yours. While indirect competitors can be other options or storage businesses with their own storage space.

After specifying such competition, you need to focus more on your direct competitors. Such self-storage facilities are the most threatening to your self-storage company.

Describe an overview of their businesses. Describe their strengths & weaknesses and try to find out key things like:

• Who(type of customers) do they serve?
• What type of self-storage services do they provide?
• What are USPs, including their quality service?
• What is their pricing strategy(medium or low)?
• What do they need to improve as per their customers?

After conducting the above analysis, understand the areas of competitive advantage. For instance, consider your superior self-storage services, unique offerings, better prices, and excellent customer service.

You may perform a SWOT analysis like below to get your storage business’s strong points.

6. Marketing Plan

Your business’s marketing plan provides a detailed outlook of sales strategies and promotional techniques you will use to reach your target audience.

It will help you streamline your marketing efforts and create impactful marketing campaigns to acquire new customers and retain existing ones.

Here are some of the sales and marketing strategies for your self-storage company:

Unique Selling Propositions(USPs)

Specify the USPs that sets your self-storage facility apart from other self-storage businesses. Emphasize a few aspects such as quality services, security features, competitive pricing, etc.

Social Media Marketing

For a successful self-storage business, social media engagement can be very helpful. Use popular social media platforms to target specific audiences. Create visually appealing ads and content to drive traffic.

Partnerships

Establish collaborations with local businesses to promote your storage facilities and generate referrals. This can benefit your self-storage company and local partners.

Website and online reservations

Having a website can establish a strong, professional brand and help you reach a wider audience. Showcase all your storage services on the website and consider the online reservation procedure.

Loyalty programs and special offers

Try to retain existing customers with the help of loyalty programs, special offers, and referral incentives. This can encourage your customers to refer new clients.

7. Operations Plan

The operations plan chapter outlines the daily processes and activities centered on achieving the business objectives mentioned in the earlier sections.

A detailed operations plan helps you and your team define responsibilities, daily tasks, and short-term goals you need to accomplish, keeping track of your long-term objectives.

So, briefly discuss operational planning, highlight how it directly impacts the quality of services, and pique the reader’s interest.

Here are a few key elements to add to this section:

Staffing & Training

Describe your staffing plan, prioritize training programs, and foster a collaborative work environment for smooth administrative processes and excellent customer service.

Facility Management

Consider including security systems to provide the highest level of security for storage units. Also, mention regular maintenance checks to keep the condition and cleanliness of the facility.

Technology and Software

Describe the technology and software you use to easily reserve, access, and manage storage units. This will enhance your customer service and contribute to effective business operations.

8. Management Team

As the name suggests, the management team section introduces the owners and key managers, along with their roles & responsibilities, qualifications, work experience, and compensation plan.

A strong management team is essential to weigh authority and helps potential investors to be confident about your storage company’s idea and vision.

You may start this section with an introduction of the storage owner and team members, including the facility manager, admin & HR manager, sales & marketing executive, accountant, customer care executive, or front desk officer.

Highlight their responsibilities, industry experience, educational background, and skills that can benefit your business. For a better understanding, you may refer to the below example:

You might include an organizational structure that depicts the reporting lines and the flow of the decision-making hierarchy. Also, discuss the compensation plan for each individual, part of your management.

If you have any advisory board members, mention them and emphasize their experience in managing self-storage companies or small businesses.

9. Financial Plan

The financial plan is the most important and demanding aspect of business planning.

When it comes to convincing potential investors and banks to invest in your business or lend money, a financial plan is one of the crucial factors.

This section of your plan describes your self-storage facility’s financial information and how it will achieve its financial goals or how much revenue potential it has.

Here are a few essential elements and financial statements you must add or provide while making a financial plan:

Income Statement

An income statement is generally called a profit and loss(P&L) statement. It defines the revenue and then deducts your self-storage operating expenses to show your gross profitability.

For this, you have to make practical assumptions that help you measure the actual profit margin of your business. Here’s an example of a projected profit and loss statement for 3 years:

Balance Sheet

A balance sheet helps you show your assets and liabilities. While it includes a lot of information, you may simplify it to highlight the most important details, like equity, goodwill, debt ratio, or other intangible assets.

Cash Flow Statement

Your cash flow statement helps you determine how much money you need to start a new self-storage business or grow an existing facility. It also makes sure that you never run out of money.

Once your business is started, you should maintain these cash flow projections even for certain months before you start making profits.

Well, in most cases, you earn profits but still face financial problems that could lead you to bankruptcy. So, you will need proper cash flow planning to avoid such possibilities.

Funding Sources for Your Self-Storage Business

You can access different funding sources to support your self-storage startup or expansion efforts. Here are some common sources to get funding from:

Bootstrapping

Many entrepreneurs use personal savings as initial capital for starting a self-storage business without attracting investments or borrowing money from banks.

Family and friends

After deciding how much money you’ll need to start a business, you may ask family & friends to invest in your self-storage business. Show a solid business plan to the interested ones and assure them that they will make a profit.

The most common source of funding is to cover startup costs and self-storage facility expenses. However, banks will ask for a professional self-storage business plan to make sure that you’ll be able to pay money back with interest.

Investors and partnerships

Bring in some external capital by seeking investors or partnering with individuals or businesses interested in your self-storage industry.

Apart from the above, you may explore other funding sources for your self-storage business:

• Crowdfunding
• Small Business Administration(SBA) loans
• Private equity & venture capital
• Grants and subsidies
• Real Estate Investment Trusts(REITs)

Download a sample self-storage business plan

Are you ready to start writing your self-storage business plan? Here you go; download our free self-storage business plan pdf to get started.

It’s a modern business plan template specifically designed for your storage business. Use this sample business plan as a guide for creating your own plan.

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If you are not good enough at finances, our financial forecasting tool will help you create realistic financial forecasts for 3 or more years.

Whether you’re venturing into a new business or aiming for expansion, Upmetrics provides valuable resources to create successful, professional business plans.

So, what are you waiting for; start planning now!

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Key Components of Business Plan

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Frequently asked questions, what are the key components of a self-storage business plan.

A successful self-storage unit business plan involves the following key components:

• Executive summary
• Company overview
• Self-storage industry analysis
• Customer analysis
• Competitive analysis
• Marketing plan
• Operational plan
• Management team
• Financial plan

What is the average profit margin for self-storage?

Depending on the location, size of the self-storage units, and operational efficiency, the average profit margin for self-storage facilities may range from 30 to 50%.

What are the legal and regulatory considerations for a self-storage business?

A self-storage unit business should consider various legal and regulatory aspects:

• Business legal structure
• Licenses and permits
• Lien rights & late fee policies
• Tax regulations
• Zoning laws
• Vehicle towing

How much capital is needed to start a self-storage facility?

The capital required to start a self-storage business may differ widely. On average, the startup costs can range between $500,000 to $1 million for a small self-storage facility, while larger facilities need the initial capital of several million dollars.

What types of self-storage units should I offer?

There are various types of self-storage units, including:

• Standard units
• Climate-controlled storage
• Drive-up units
• Interior storage units
• Exterior units
• Vehicle storage

About the Author

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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Starting a Self Storage Business in 2024: Ultimate Guide

In this extensive guide, we delineate how to start a self storage business.

The self storage industry is a rapidly growing market that provides vital services for individuals and businesses who need to store their belongings. There are various self storage units available and several ways to start your own self storage business.

To start a self storage business, one must first understand the basics and then learn how to run a self storage business. This entails finding out what the market needs and identifying potential customers.

As complex as these may seem, we’ve compiled all you need to know and how to go about the entire process in this extensive guide. We’ll walk you through the process of starting your self storage business. We’ll cover the basics of a self storage facility, how to find a location, and what you need to get started, including setting up reliable self storage software .

Download the ultimate Self Storage e-book

Everything you need to know about setting up your self-storage facility.

Important Trends of the Self Storage Business You Must Know

Before outlining the process of starting a self storage business, let’s examine what the self storage niche entails and associated trends.

What Is a Self Storage Business?

A self storage business is a venture that provides consumers with their own space to store goods. The enterprise has exploded in popularity over the past few decades, hitting a global market value of $51.32 billion in 2021 .

A Chron report indicates that over 80% of self storage facilities are privately owned and operated. This means people use private self storage facilities for storing their belongings more often than government-owned enterprises — the latter make up only 30% of self storage clients.

Customers who require storage space for travel or a temporary move tend to take advantage of the ease and adaptability offered by self storage services. Similarly, businesses typically deem renting a storage container as a more cost-effective means to accommodate their goods than moving to larger quarters.

With self storage, there’s no binding long-term commitment, and this in itself is a significant selling point that attracts patronage. Notably, the average person rents storage space for 11 months, and the average business rents for 24 months. This flexibility makes it a good fit for a wide variety of customers’ demands.

Why Should You Invest in Self Storage?

A self storage business is usually successful because it provides an essential service that many people need. The more people who need this service, the better for your business.

If you decide to start a self storage business, know that you won’t be alone. The need for storage space has increased in recent years, leading to the proliferation of storage facilities in unexpected places like shopping malls and downtown areas.

A fairly recent Multi-Housing News post opined that the self storage industry is more resilient to economic downturns than most sectors of the real estate market. Self storage units continue to be a valuable solution for the storage needs of modern society as more and more people relocate and need somewhere to keep their valuables.

Want to learn more about self storage investment , check out the below figure from Self Storage Association Asia .

There are speculations that the self storage market presents fewer complexities than residential housing since the human element is less pronounced in the former. A facility manager may have to deal with tenants, for instance, if they can’t keep up with payments, but otherwise, their paths rarely intersect. However, it’s not a passive investment and has more in common with retail than real estate.  For more data-driven insights on why investing in self-storage is a wise decision, check out our self storage industry statistics .

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

1. Find a Suitable Location.

For a company to be successful, it must first be able to meet a need in the market.

Customers may be hard to come by if you set up shop in an area where the demand is already satisfied. On the other hand, if you pick a spot with commercial potential but few existing businesses, you increase your odds of attracting and retaining customers. Hence, it’s vital to identify your options before settling on a spot.

It’s no secret that densely populated regions have a greater need for self storage options. Cities with a variety of housing options benefit greatly from them as well. Similarly, people downsizing or staying in an apartment temporarily often choose to keep their items in storage until they can move into a larger dwelling.

In summary, ensure a sizable customer base in the area before settling on a permanent site for your company. Also, see if any nearby storage facilities aren’t in use and may benefit from some redesign or upgrade. Considering the growing demand for versatile and cost-effective storage solutions, starting a shipping container storage facility could offer a unique opportunity within the self-storage market, combining flexibility with efficiency.

2. Develop a Business Plan That Outlines a Detailed Strategy for Success.

Including critical information about your self storage business in your business plan is crucial. Your business plan needs to outline everything from your target market and how you want to reach them to how you intend to run your company financially and operationally in the first few years.

When starting a business, every company needs a business plan. A credible business plan is crucial to attracting investors or acquiring funding from outside sources, with most financial institutions requiring one before loan approval. A well-thought-out business plan can serve as a powerful catalyst for your company’s development by helping you reach your goals and circumvent potential roadblocks.

You can develop a business plan independently, as many examples are available online . Other options include hiring a professional business plan writer or enlisting the services of a nonprofit organisation like SCORE , which provides free business counselling.

Remember that the business plan for an already operating self storage facility will differ significantly from a brand-new site’s.

Although business plans should be written with the specific needs of the company in mind, a self storage facility business plan would typically include the following elements:

• Mission statement
• Vision statement
• Ownership structure
• Sources of capital
• Revenue streams
• Market research analysis
• Competitive analysis

3. Obtain the Funding Required to Launch Your Business.

Self storage facilities have lower startup and development costs than many other businesses. There are, however, expenses to look into/consider.

Locate a suitable storage facility that can be used as is or modified into units with minimal effort. Regardless of the path you choose, it’s a good idea to talk to an organisation that provides storage engineering and design services. They’ll be able to advise you on how to best organise your company.

For added safety, double-check that your property is adequately secured and fenced. Locks must be installed on all units and feature a secure key-locking system.

Don’t forget to add the price of having full-time workers on site whenever the business is open. Cleaning materials, upkeep charges, and advertising must also be factored in.

After figuring out how much money you’ll need in the first month of business, you’ll have a better sense of the total amount you’ll require in the first year. As a rule of thumb, you should have enough money to cover at least a year’s operating costs before kickstarting your self storage business.

Are you thinking of how to start a self storage business with no money?

A small business loan could be an option if you lack the necessary funds to launch your self storage business. Alternatively, you could seek appropriate investors to join forces in the early stages of your company’s development.

4. Acquire All Necessary Licences and Permits.

Never launch a business, of any kind, without first securing the appropriate licences and permissions. Such endeavours can lead to severe financial penalties or possible closure of the enterprise altogether.

Carefully investigate the prerequisites for opening a self storage company in your chosen area, such as licences, permits, and registrations. You can discover such information about your town of choice by contacting them directly or looking at their website.

A certificate of occupancy, service contracts, small business permits, and other legal paperwork will be required before you can open for business. In a recently published article, we discussed whether you need planning permission for a storage container business , so you should consider having a read.

5. Make a Marketing Game Plan.

Consistently incorporating a strategic self storage marketing plan into your business strategy is essential for reaching your goals.

At the very least, you should have a website and business cards. Digital marketing services and printed marketing materials, however, can help your firm reach its maximum potential through advertising and promotion.

6. Get a Business Insurance Policy.

Insuring a self storage company requires special considerations. The primary service (the rental of self storage units) can’t be separated from the facility itself.

Insuring your commercial structure is a no-brainer because if a customer is injured while visiting your establishment, general liability insurance might help cover the costs. Storage facility insurance provides additional, specialised protection for the assets of self storage business owners beyond the basic coverages mentioned above.

You may modify your self-service storage insurance in various ways to meet your requirements. One method is to offer clients the option of purchasing additional property liability insurance. This may seem extremely kind, but it’s good business sense; we’ll explain how.

The cost of this insurance may be much lower than the expense of defending against negligence claims for failing to safeguard customers’ property when you had the opportunity to do so. You gain an advantage over the competition by insuring your clients’ property while safeguarding your assets by including this provision in your policy. A lot of storage facilities don’t provide this extra perk.

Your customers’ belongings should be insured, especially if they’re being removed or discarded, which is a unique extra. It’s a bummer to sell or otherwise get rid of the belongings of customers who haven’t paid for them.

This insurance might help cover costs if a client successfully sues for the return of their property after it has been removed. It helps keep costs down and offers some security.

You should also talk to your agent about getting cyber, data, and commercial umbrella insurance . If you run a self storage business that relies on online bookings and payments, cyber and data insurance can help you get back on your feet after a hacking incident by covering the costs of defending your business and replacing lost revenue. As for commercial umbrella insurance, it can assist you in covering any losses beyond your general liability policy’s limits.

Customers visiting self storage facilities are at a higher risk of slipping and falling due to the increased activity of carrying items into and out of a unit. Without a comprehensive insurance plan, you may have to spend more on healthcare and legal fees.

However, commercial umbrella insurance provides excess liability coverage for a reasonable price, ensuring that your organisation can survive a substantial loss. It’s like an insurance policy for your company that ensures it doesn’t shut down when things become rough.

Size, location, number of employees, and other criteria should all be considered when deciding on the best self storage company insurance policy. You may tailor your insurance policy to your specific needs by having an open discussion with a local, independent agency.

7. Define Your Brand.

More than just a name, logo, and slogan, branding encompasses everything that represents a company . It implies all the things people think of when they hear your company’s name.

For example, the widespread recognition of real estate investment trusts (REITs) gives them an edge over regional competitors in the self storage industry. According to G5’s report on why you need a self storage brand , the importance of branding for a self storage operator seeking to compete with REITs and raise their company’s profile is growing. You can carve yourself a niche in the regional market if you prove that your product or service is the best option for your demographic.

Through consistent branding, you attract renters who’ll remain loyal to your business over time. Developing a memorable self storage brand evokes feelings, motivates your messaging, and spreads the word about your services to potential customers in your area.

As you build your business, the following questions should be at the back of your mind:

What makes your space unique from others?

Who’re you trying to reach?

What’s your primary message?

If you can give thoughtful answers to these questions, you’ll be well on your way to building a brand that stands out from the crowd and attracts your target audience.

Build a name that people will recognise and trust to attract more prospective tenants and longer lease terms. Expanding your brand’s reach inside the self storage sector can create a more memorable message and establish yourself as the go-to provider for your target demographic.

Here are some helpful tips when branding your self storage business:

Find Out What Sets You Apart from the Competition First.

Explain what sets your business apart, what problems it addresses for customers, and how you can help them. If a consumer is considering a purchase, why should they opt for your company and not a competitor’s? What specific benefits do you offer to renters that they won’t find in another company?

Develop Your Personas.

Branding also involves researching and cultivating a specific demographic of consumers. Demographics, such as geography, and psychographics, such as preferences, motivations, and behaviours, are factored into creating a complete persona. Using these fictitious archetypes, you’re better positioned to relate to and market to your target demographic.

Examine Your Competitors Through SWOT Analysis.

SWOT is an acronym for “strengths, weaknesses, opportunities, and threats,” which is a common method for analysing a situation. You can use this potent tool to stand up to the competition.

Utilise the SWOT analysis to assess the positives and negatives of your competitors. Figure out how to counteract their advantages and take advantage of their flaws. By conducting a SWOT analysis, your organisation can avoid pitfalls and seize the possibilities presented by your rivals.

Create a Distinct Visual Identity for Your Brand.

Your promotional materials—from your website to your ads to your billboards—should look professional and draw in potential customers. Make sure that the primary selling points of your brand are prominently outlined on your website, above the fold, before your visitors have to scroll.

Picking a colour scheme and design that directly addresses your target audience strengthens your brand’s reputation amongst its competitors while increasing your chances of converting visitors into buyers.

8. Create Your Self Storage Business Website, and Invest in Reliable Self Storage Software.

A self storage firm should have a user-friendly website to attract as many consumers as possible. Like with just about anything else, buyers today often begin and conclude their search for self storage facilities online. With that in mind, it’s highly unlikely they’ll come across you if you don’t have a website.

Discussed below are some benefits of having a self storage business website:

Allows You to Take Control of Your Brand.

Unlike with a Facebook or other social media page, you may exert more control over your brand with a personalised website. Your marketing website should be unique by employing your brand’s colours, emblems, and other identifying features. When the website belongs to you, you decide what users can expect.

Makes It Possible to Offer Online Rentals.

Do you want to rent your property online but don’t know how?

Creating a promotional website for your storage facility is the least complicated option.

If you let out units through your website, tenants can reserve a unit at their convenience (day or night) and do the necessary paperwork and rental transactions on their own time. Investing in decent self storage software while setting up your website makes these processes even more seamless for your clients.

Eases The Burden of Payments.

You can expand how your consumers can pay you by launching a website. There’ll be fewer rent arrears if tenants can quickly and easily cover their payments.

If you set up the appropriate automatic billing processes , your tenants can use online tools to manage their accounts and pay their rent. The advantages of accepting payments on your website become readily evident when everything occurs mechanically, and you no longer have to spend time making collections calls.

All these and more are what the Storeganise self storage software offers , making it a must-have for most businesses in this niche.

Makes It Easier for Potential Clients to Find You.

A marketing website increases the likelihood that potential clients will find your storage facility through an online search. You may achieve this by implementing search engine optimisation (SEO) strategies, such as using the appropriate keywords, incorporating title tags and meta descriptions, and ensuring that your website loads quickly and without errors.

9. Enjoy the Process of Managing Your Self Storage Facility.

Self storage business ownership may seem mundane at first, but there are many ways to put your unique imprint on the industry.

Developing the company’s identity through advertising may be fun. Some business owners have found success by incorporating comedy into their marketing strategies, and you never know when your comedic juices will start flowing. The public’s perception of self storage facilities has also been improving recently, making it more likely that local media outlets will want to interview you.

As if that weren’t enough, there are also unintended advantages. If you’ve put money into a sizable area that needs people to run it, you might be in the fortunate position of being able to hire relatives or close friends.

Moreover, you’re likely to encounter certain strange items in units, including taxidermied animals, film celebrity memorabilia, and even an electric chair. That means there’s also a wild side to self storage that, although it won’t harm your business, might offer you some fantastic tales to tell.

However, you shouldn’t let that give you sleepless nights because regulations dictate what can and can’t be kept in storage facilities and what must be done if you need to access and dispose of their contents.

10. Get the Help You Need — Both Technically and Personnel-wise.

Due to the high initial cost of securing land for your storage facility, you must know how much money you’ll need to launch your business.

Customers will feel more at ease leaving their belongings in your care if they’re in a safe and secure area. As a result, you shouldn’t put up shop in a dangerous neighbourhood or somewhere too far from your target audience.

After purchasing land, the bulk of your work will comprise constructing the various storage units your clients would rent. Installing security equipment to keep tabs on the premises is a must. In addition to a computer, a landline phone, a cell phone, a vehicle, and security software, these items will be necessary for the smooth operation of your business. If money is tight, you can get by with somewhat used versions of several things.

As for staffing needs, a storage facility needs the following personnel a start:

• A CEO (this could be the company owner)
• An administrative and human resources (HR) manager
• A business development and marketing executive
• A customer service officer
• An accountant
• An information technology consultant
• A security guard

Today, many people in the United States and the United Kingdom, for example, now use storage facilities to keep their surplus household and commercial items out of the way. Thus, getting started in the self storage industry is quite simple since one only needs to identify a good site and purchase the land to construct the storage facilities.

Once the site is secured and the necessary permits obtained, you may begin construction on storage units of varied sizes, as not all customers will need to keep massive quantities of items.

However, before promoting and renting out the storage units to customers, you must have an attorney prepare the terms and conditions of usage and agreement paperwork.

It is also important to note that even once your business is set up, there will be operating expenses, such as electricity, security, labour, wifi and other ongoing costs.

Should You Buy an Existing Self Storage Facility?

It’s a good idea to purchase an already existing self storage facility, as it’ll save you the stress of finding land and building a new facility. You can renovate the facility according to your tastes and needs and even expand it.

The cost of purchasing an existing self storage facility varies widely, just like the wide variety of self storage options available. This explains why a self storage facility in London would cost tens of millions of pounds, while the same type of facility in rural Carlisle would likely cost less than a million pounds.

If you aren’t a trained real estate agent, you should engage a self storage broker to assist you in your search and purchase. An experienced broker has market knowledge and can negotiate a fair price.

You should buy a facility near your home if you plan to work there full-time. However, location is less of an issue if you want to outsource facility management to a third party. You should check that you and your broker have a solid understanding of the neighbourhood’s market conditions.

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

It’s no secret that launching a storage unit business can cost a lot. The cost of construction for a normal single-story building range from $25 to $40 per square foot .

The price per square foot for multi-story structures will be higher than that of single-story ones because of the additional cost of obtaining land. Depending on your location, you can pay between $42 to $70 per square foot for a high-rise apartment.

Building a state-of-the-art facility will require at least 70,000 rentable square feet at $50 to $70 per square foot (not including the land cost). This translates to an investment of almost $3 million to create a cutting-edge establishment.

How do you profit after shelling out that kind of cash?

You should start seeing a profit at about 50–70% occupancy. This becomes even more realistic when you consider that the need for self storage facilities will never go away.

Throughout the year, an ultra-modern, conveniently located self storage facility may easily maintain an occupancy rate of 85–95%. What this means is that your self storage business should generate a respectable profit. Still, you should know when to adjust your marketing plan for when occupancy is high to enable you to reap the most profits.

How Much Profit Can a Self Storage Business Generate?

As was previously said, once occupancy hovers around 50–70%, you can expect to break-even. However, a well-located building can function profitably with about 85–95% occupancy rates, resulting in a net income of around 27% of rental income after deducting all operating expenditures and loan debt payments.

At a yearly rate of $17.04, renting a unit for $1.42 per square foot each month is a good example of how this works out. If your building is 80,000 square feet, you can anticipate a yearly rental income of around $1.4 million and an annual gross cash flow of up to $354,432.

Adding moving truck rental services , moving supply sales, and moving equipment sales could boost your self storage company’s bottom line. Including such services can augment your earnings by up to 5%.

Self storage companies often offer additional services, such as fleet management for vehicles, vans, and moving trailers. The good news is that these companies can function effectively as a unified entity.

As an added service, you can provide moving equipment like furniture pads, hand trucks, and furniture dollies in addition to using your moving vehicles. Selling packing materials, moving boxes, and tape is another option.

Moreover, diversifying into niche storage markets, such as offering specialised facilities for boats, can further enhance your business’s appeal and profitability. Learn more about the specifics of building a boat storage facility to explore this lucrative opportunity.

Final Thoughts

Investing in self storage facilities can be lucrative because the industry is well-established and widely believed to be less labour-intensive than other real estate ventures. Considering the sector’s resilience and that storage space costs far less per square foot than residential property, it may be an especially appealing prospect.

Have you started your self storage business and are looking for ways to strengthen it? Storeganise offers helpful software solutions for self storage businesses, providing them with tools and insights to manage and grow their business. Sign up for a personalised demo to see how we can help!

Frequently Asked Questions

How profitable is a self storage business.

A self storage company is reasonably profitable and offers an excellent opportunity to amass sizable passive annual revenue. Your greatest shot at success is to provide excellent service to your customers and offer additional services like valet storage.

Is It Wise To Invest in a Self Storage Facility?

Yes, it is.

Our research suggests that the allure of investing in self storage facilities hasn’t changed much. These firms do well when times are good and, if managed well, can weather the storms of economic downturn with relative ease.

Why Is the Self Storage Industry Booming?

As a result of the pandemic, more people are looking for ways to declutter their houses by renting out extra space for home offices, relocating to the suburbs, or consolidating their households with relatives. All of these have contributed to a surge in the patronage the self storage industry has recently received.

How Much Can I Charge for Self Storage Units?

The appropriate fee for your self storage units depends on various factors, including unit size, location, items’ value, the unit’s unique features (e.g., climate control ), and the rent period. In the UK, for example, the Self Storage Association (SSA) UK annual industry report pegs the average price of renting a storage unit at £23.94 per square foot annually.

While you may charge more or less, it’s best to keep your pricing as low as possible while still making a profit. At the same time, knowing when to raise prices and how to do so without angering customers is essential.

Storeganise

Self Storage Business Plan PDF Example

• June 17, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful self storage business. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your self storage business’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a self storage business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the services industry, this guide, complete with a business plan example, lays the groundwork for turning your self storage business concept into reality. Let’s dive in!

Our self-storage business plan is structured to cover all essential aspects needed for a comprehensive strategy. It outlines the business’s operations, marketing strategy , market environment, competitors, management team, and financial forecasts.

• Executive Summary : Offers an overview of your self-storage business’s concept, market analysis , management, and financial strategy.
• Facility & Location: Describes the facility’s design, amenities, and why its location is appealing to potential clients.
• Services & Rates: Lists the services provided by your self-storage business, including types of storage units, additional services, and pricing structure.
• Key Stats: Shares industry size , growth trends, and relevant statistics for the self-storage market.
• Key Trends: Highlights recent trends affecting the self-storage sector.
• Key Competitors : Analyzes main competitors nearby and how your business differs from them.
• SWOT: Strengths, weaknesses, opportunities, and threats analysis.
• Marketing Plan : Strategies for attracting and retaining customers.
• Timeline : Key milestones and objectives from start-up through the first year of operation.
• Management: Information on who manages the self-storage business and their roles.
• Financial Plan: Projects the business’s 5-year financial performance, including revenue, profits, and expected expenses.

Self Storage Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary introduces your self storage business plan, offering a concise overview of your storage facility and its services. It should detail your market positioning, the range of storage solutions you offer, its location, size, and an outline of day-to-day operations.

This section should also explore how your self storage business will integrate into the local market, including the number of direct competitors within the area, identifying who they are, along with your facility’s unique selling points that differentiate it from these competitors.

Furthermore, you should include information about the management and co-founding team, detailing their roles and contributions to the business’s success. Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your storage facility’s financial plan.

Make sure to cover here _ Business Overview _ Market Overview _ Management Team _ Financial Plan

Business Overview

For a Self storage business, the Business Overview section can be concisely divided into 2 main slides:

Facility & Location

Briefly describe the storage facility’s physical environment, emphasizing its security, cleanliness, and the overall ease of access that welcomes clients. Mention the facility’s location, highlighting its accessibility and the convenience it offers to clients, such as proximity to residential areas or ease of access from main roads. Explain why this location is advantageous in attracting your target clientele.

Services & Rates

Detail the range of storage options and services offered, from small lockers and medium-sized units to large units suitable for vehicle storage. Outline your pricing strategy , ensuring it reflects the quality of services provided and matches the market you’re targeting. Highlight any packages, discounts for long-term rentals, or additional services such as climate control, 24/7 access, or insurance options that provide added value to your clients, encouraging repeat business and customer loyalty.

Make sure to cover here _ Facility & Location _ Services & Rates

Market Overview

Industry size & growth.

In the Market Overview of your self storage business plan, start by examining the size of the self storage industry and its growth potential. This analysis is crucial for understanding the market’s scope and identifying expansion opportunities.

Key Market Trends

Proceed to discuss recent market trends , such as the increasing demand for personal and business storage solutions, the rise of e-commerce leading to a need for inventory storage, and the growing trend of downsizing and decluttering among consumers. Highlight the demand for specialized storage options like climate-controlled units, and the increasing focus on security features and convenient access.

Key Competitors

Then, consider the competitive landscape, which includes a range of storage facilities from high-end, full-service options to budget-friendly alternatives, as well as DIY storage solutions like portable storage containers. Emphasize what makes your storage facility distinctive, whether it’s through superior security measures, exceptional customer service, a wide range of unit sizes, or specialized storage options. This section will help articulate the demand for self storage services, the competitive environment, and how your facility is positioned to thrive within this dynamic market.

Make sure to cover here _ Industry size & growth _ Key competitors _ Key market trends

Dive deeper into Key competitors

First, conduct a SWOT analysis for the self storage business, highlighting Strengths (such as prime location and robust security measures), Weaknesses (including high operational costs and strong competition), Opportunities (for example, increasing demand for storage solutions due to downsizing and e-commerce growth), and Threats (such as economic downturns that may decrease consumer spending on storage services).

Marketing Plan

Next, develop a marketing strategy that outlines how to attract and retain clients through targeted advertising, promotional discounts, engaging social media presence, and community involvement.

Finally, create a detailed timeline that outlines critical milestones for the storage facility’s opening, marketing efforts, client base growth, and expansion objectives, ensuring the business moves forward with clear direction and purpose.

Make sure to cover here _ SWOT _ Marketing Plan _ Timeline

Dive deeper into SWOT

Dive deeper into Marketing Plan

The Management section focuses on the storage business’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the storage business toward its financial and operational goals.

For your self storage business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

Financial Plan

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your self storage business’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your self storage business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

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Self Storage Business

Back to All Business Ideas

A Beginner’s Guide to Starting a Self Storage Business

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on March 3, 2022 Updated on July 3, 2024

Investment range

$301,550 - $604,100

Revenue potential

$168,000 - $230,000 p.a.

Time to build

1 – 3 months

Profit potential

$67,000 - $90,000 p.a.

Industry trend

Have you ever felt like your house was overflowing with stuff? A lot of people have that problem, which is why the self-storage industry is worth $23 billion. Starting a self-storage business takes a significant investment, but once you have the business going, you can make a relatively passive and steady income. You just rent units, take payments, and go about your life. 

But getting there takes some hard work and serious knowledge. Fortunately, this step-by-step guide lays out all you need to know to start your successful self-storage business.

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting a self-storage business has pros and cons to consider before deciding if it’s right for you. 

• Passive Income – Not much to do once tenants move in their stuff
• Low Expenses – Just pay off your loan and utilities
• High Demand – Large market of potential customers
• Investment Required – Buying or building a facility can cost $1 million
• Chasing Payments – When people don’t pay, you have to make collection efforts

Self-storage industry trends

Industry size and growth.

• Industry size and past growth – The US self-storage industry was worth $23.2 billion in 2021 after growing 2.5% annually the previous five years.(( https://www.ibisworld.com/united-states/market-research-reports/storage-warehouse-leasing-industry/ )) 
• Growth forecast – The global self-storage industry is projected to grow 35% by 2026.(( https://www.mordorintelligence.com/industry-reports/self-storage-market ))
• Number of businesses – In 2021, 182,063 self-storage businesses were operating in the US.
• Number of people employed – In 2021, the US self-storage industry employed 211,300 people. 

Trends and challenges

Trends in the self-storage industry include:

• A concept called valet self-storage is taking off as an ancillary service for self-storage businesses. With the valet service, items for storage are picked up by the self-storage company at the customer’s home and transported to the facility. This presents a huge opportunity for self-storage businesses to earn additional revenue by offering this service.
• Many self-storage businesses are also offering moving truck rentals and storage box sales to increase revenue.
• A growing number of ecommerce businesses are using self-storage units to store their inventory, increasing the potential market of customers for self-storage businesses.

Challenges in the self-storage industry include:

• A growing number of publicly traded real estate investment trusts (REITs) are buying up warehouses and opening up their own self-storage businesses, increasing competition. These REITs have strong financial backing and can advertise more and charge lower rental rates.
• Security for self-storage units is a growing issue, making it necessary for self-storage businesses to implement additional security measures, which come at a cost.

Demand hotspots

• Most popular states – The most popular states for property managers are New York, Washington, and California.(( https://www.zippia.com/property-manager-jobs/best-states/ ))
• Least popular states – The least popular states for property managers are South Carolina, Tennessee, and Mississippi.

What kind of people work in self-storage?

• Gender – 59.5% of property managers are female, while 36.5% are male.(( https://www.zippia.com/property-manager-jobs/demographics/ ))
• Average level of education – The average property manager has a bachelor’s degree.
• Average age – The average property manager in the US is 47.6 years old.

How much does it cost to start a self-storage business?

Startup costs for a self-storage business range from $300,000 to $600,000. These costs are for purchasing an existing self-storage facility. Alternatively, you could purchase land and build the self-storage units, but you’ll easily spend well over $1 million. 

How much can you earn from a self-storage business?

The average monthly rate for a self-storage unit is around $100. If your facility has 200 units, your profit margin will be about 40% after your mortgage payment and overhead costs. 

In your first year or two, you could have 70% of your units rented year-round, bringing in $168,000 in annual revenue. This would mean more than $67,000 in profit, assuming that 40% margin. As your marketing efforts bring in more business, you could have 95% of units rented. With annual revenue of nearly $230,000, you’d make $90,000.

What barriers to entry are there?

The only barrier to entry for a self-storage business is the high startup costs. You’ll need at least a 30% down payment and most storage facilities cost $1 million or more.

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Step 2: hone your idea.

Now that you know what’s involved in starting a self-storage business, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research self-storage businesses in your area to examine their services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a self-storage business that offers pick-up, or valet service. 

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as climate-controlled units for ecommerce businesses.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your services

In addition to storage unit rentals, you could offer valet services, moving truck rental, storage box sales, and even packing services. 

How much should you charge for storage units?

Prices vary based on the size of the units and whether they are climate-controlled. They could range anywhere from $40 per month up to $200 per month. The average storage unit price across the country is around $100. You should check other storage facilities in your area to see what they charge to make sure that you’re competitive. Your costs will be for your mortgage payment and overhead. You should aim for a profit margin of at least 40%.

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will be very broad. You should spread out your marketing to include sites like TikTok, Instagram, and Facebook. You should also market on LinkedIn, which is where you’re likely to find local ecommerce business owners.

Where? Choose self-storage location

The location of your self-storage business is a critical factor in its success. Look for a spot in a busy commercial district with high visibility and easy access, such as near major highways or busy intersections.

Also, consider the demographics of the area, such as population density, income levels, and the presence of businesses or residential areas that may require storage solutions.

When selecting your location, ensure that it meets all necessary zoning and regulatory requirements for self-storage businesses.

By strategically choosing the right location for your self-storage business, you can establish a profitable and successful enterprise that meets the needs of customers and stands out from competitors.

Step 3: Brainstorm a Storage Facility Business Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “storage” or “self-storage”, boosts SEO
• Name should allow for expansion, for ex: “SecureSpace” over “Garage Storage”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Self Storage Business Plan

Here are the key components of a business plan:

• Executive Summary: Summarize the key aspects of your self-storage business, showcasing how it will meet the storage needs of your target market with a variety of unit sizes and secure facilities.
• Business Overview: Explain the types of storage solutions your business offers, such as climate-controlled units, vehicle storage, and flexible rental terms.
• Product and Services: Detail the specific storage options available, including unit sizes, security features, and any additional services like moving supplies or truck rentals.
• Market Analysis: Assess the local demand for self-storage, identifying the customer base, such as homeowners, apartment dwellers, or small businesses.
• Competitive Analysis: Compare your facility to local competitors, highlighting advantages like better location, security, or customer service.
• Sales and Marketing: Describe your strategy to attract tenants through online listings, promotions, and partnerships with local movers or real estate agents.
• Management Team: Present the qualifications and roles of your management team, emphasizing their experience in property management and customer service.
• Operations Plan: Outline the day-to-day operations, including facility maintenance, customer service, and security management.
• Financial Plan: Provide an overview of startup costs, unit pricing, expected occupancy rates, and revenue projections.
• Appendix: Include supplementary materials like site plans, insurance policies, or market research data that support your business strategy.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to self-storage businesses. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your self-storage business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have. 

Form Your LLC

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Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans : This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans : The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants : A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family : Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding : Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal : Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best options, other than friends and family, for funding a self-storage business.

Step 8: Apply for Self Storage Business Licenses and Permits

Starting a self-storage business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your self-storage business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability : The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property : Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance : Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation : Provides compensation to employees injured on the job.
• Property : Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto : Protection for your company-owned vehicle.
• Professional liability : Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP) : This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as TRACKUM , Storable , or easystorage , to manage your units, billing, and payments.

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial. 

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using services like WordPress, Wix, or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Here are some powerful marketing strategies for your future business:

• Local Partnerships: Forge partnerships with local moving companies, real estate agents, and home renovation businesses to establish a network that can refer clients to your storage facility.
• Local SEO  — Optimize your online presence with local SEO strategies, ensuring your business appears in local searches and maps when potential customers are looking for storage solutions. Regularly update your Google My Business and Yelp profiles to strengthen your local search presence.
• Seasonal Promotions: Offer seasonal promotions or discounts during peak moving times to encourage customers to choose your facility over competitors.
• Referral Programs: Implement a referral program that rewards existing customers for referring new clients, creating a word-of-mouth marketing engine.
• Community Events Sponsorship: Sponsor or participate in local community events, fairs, or markets to increase visibility and connect with potential customers directly.
• Security Assurance: Highlight your facility’s top-notch security features in marketing materials and online to instill trust in potential customers concerned about the safety of their belongings.
• Targeted Social Media Advertising: Use targeted social media advertising to reach specific demographics in your local area, showcasing the convenience and benefits of your storage solutions.
• Flexible Rental Options: Advertise flexible rental terms, such as month-to-month leases, to appeal to customers seeking short-term storage solutions during transitional phases.
• Customer Testimonials: Feature real customer testimonials in your marketing materials and online platforms to build credibility and showcase positive experiences with your facility.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your self-storage business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your self-storage business could be: 

• Valet storage services – we come to get your stuff for you!
• Super secure storage for your valuables and heirlooms
• We not only store it, we pack it!

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a self-storage business or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in self-storage for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in self-storage. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

You may just want to work alone, or you may need workers to fill various roles. Potential positions for a self-storage business include:

• Facility Manager –rent units, customer service, accounting
• Movers – pick up items for valet storage
• Marketing Lead – SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Self Storage Business – Start Making Money!

People have so much stuff it often doesn’t fit in their homes, which is why the self-storage industry is worth $23 billion. Starting your own self-storage business takes a significant investment, but it can provide a relatively passive income for a very long time. Demand for storage units is always high, so you shouldn’t have trouble keeping your units full. 

Now that you know the business side, it’s time to jump into self-storage entrepreneurship!

• Self Storage Business FAQs

A self-storage business can be very profitable and is a great way to get a nice passive income. Your best bet to be successful is to offer superior customer service and provide value added services like valet storage services.

To find the right location for a self-storage facility, consider factors such as population density, proximity to residential areas, accessibility to major roads or highways, and competition in the area. Conduct thorough market research to assess the demand for self-storage services and identify underserved areas.

To attract customers and market your self-storage services, utilize various strategies. Develop a user-friendly website that showcases your facility’s features, security measures, and pricing options. Utilize online platforms and social media to promote your services and engage with potential customers. Implement targeted online advertising or local directories to increase visibility in your area. 

To differentiate your self-storage business from competitors, focus on providing exceptional customer service and unique features. Implement top-notch security measures, such as video surveillance, access control systems, and well-lit facilities. Offer convenient amenities, such as 24-hour access, climate-controlled units, or online reservation and payment options.

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Storage Facility Business Name
• Create a Self Storage Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Self Storage Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Self Storage Business - Start Making Money!

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Step-by-Step: Launching Your Own Self-Storage Business

Main Sections In This Post Steps To Starting A Self Storage Business Points to Consider Resources Knowledge Is Power Featured Video

Introduction

This post offers knowledge about starting a self storage business. We’ll provide you with a step-by-step guide to consider and a valuable collection of resources.

There’s a lot of information to cover, so it might be beneficial to bookmark this page for future reference. Additionally, if you find this post valuable, we kindly ask you to share it with others.

Let’s get started with the steps.

Steps to Starting a Self Storage Business

1. gaining an overview of what you’re getting into.

In this section, we will provide valuable insights and guidance to aid you in making informed decisions for your self storage business.

When achieving success in the self storage industry, the key factor is none other than you. Your personal involvement and dedication play a crucial role in the outcome of your business venture.

It is vital to clearly understand your feelings and motivations towards owning and running a business.

Taking the time to explore this aspect will significantly contribute to making well-informed decisions when starting your self storage business.

a.) Is Starting a Self Storage Business the Right Step for You?

Passion is an indispensable ingredient for achieving success in the self storage industry.

Having a strong passion will fuel your determination to succeed. It will motivate you to seek solutions when faced with challenges and will be the driving force behind your commitment to overcoming obstacles.

Let’s consider the following scenario:

Imagine you win a lottery. You generously help your loved ones and contribute to charitable causes.

Over the next few years, you embark on global adventures, purchase your dream home, and secure a vacation property for relaxing weekend retreats. You have all the cars and gadgets you’ve ever desired. Anything you wish to buy is readily accessible at your fingertips.

Even after indulging in these luxuries, you still have millions of dollars remaining in cash and investments, giving you the freedom to live on your own terms.

Now, let’s reflect on an important question:

In such a scenario, would you still choose to start a self storage business?

If your answer is a resounding yes, it demonstrates your genuine passion for venturing into the self storage business, and you’re heading in the right direction.

However, if your answer is no, it prompts another important question:

What alternative path would you prefer to pursue? Perhaps, it’s worth considering focusing on that path instead.

The above exercise aimed to shift your focus away from solely considering monetary gains and guide you towards selecting a business based on your true passion.

For More, See How Passion Affects Your Business . Also, see,  Considerations Before You Start Your Business to identify key points for a new business owner.

b.) A Quick Overview of Owning a Self Storage Business

Running a self storage business requires dedication and involves various responsibilities. Here’s a neutral overview of what it’s like to be in charge:

Responsibilities:

• Customer Service: Assisting customers with inquiries, leasing units, and providing exceptional service.
• Facility Maintenance: Ensuring the premises are clean, secure, and well-maintained.
• Marketing and Sales: Promoting the business, attracting new customers, and managing rental agreements.
• Financial Management: Handling rent collection, budgeting, and bookkeeping.
• Security and Safety: Implementing security measures to protect customers’ belongings and ensuring compliance with safety regulations.

Average Day:

• Interacting with customers, addressing their needs, and assisting with unit rentals.
• Conducting routine facility inspections and maintenance tasks.
• Handling administrative duties such as managing rental contracts and financial transactions.
• Monitoring security systems and ensuring a safe environment for customers and their belongings.

Running a self storage business entails a balance of customer service, facility maintenance, marketing, financial management, and security measures to provide customers a smooth and secure experience.

c.) Key Points To Succeed in Self Storage Business

To succeed in the self storage business, consider the following key points:

• Customer Satisfaction: Prioritize excellent customer service, including prompt response to inquiries, personalized assistance, and addressing concerns promptly.
• Secure and Well-Maintained Facilities: Maintain a clean, secure, and well-maintained facility to instill trust and ensure the safety of customers’ belongings.
• Competitive Pricing and Flexible Options: To attract and retain customers, offer competitive rates, various unit sizes, and flexible leasing terms.
• Effective Marketing: Implement a comprehensive marketing strategy, including online presence, local advertising, and referral programs to increase visibility and attract potential customers.
• Efficient Budgeting: Carefully manage expenses, track revenue, and create a realistic budget to maintain financial stability and ensure the longevity of your self storage business.

Remember, success in the self storage industry relies on managing the business effectively, marketing strategies, and efficient budgeting practices.

d.) Challenges of Running a Self Storage Business

Running a self storage business poses various challenges that need to be addressed to ensure long-term success. Here’s an overview of some key challenges:

• Building a Customer Base: One of the main challenges is attracting and retaining a sufficient customer base. Implementing effective marketing strategies to reach potential customers and generate enough revenue to cover expenses and generate profit is essential.
• Customer Satisfaction: Keeping customers happy is crucial for maintaining a positive reputation and encouraging repeat business. Providing exceptional customer service, addressing concerns promptly, and ensuring a safe and secure storage environment is vital to customer satisfaction.
• Financial Stability: Having enough funds to sustain the business is crucial, especially during slower periods. Effective budgeting and financial management are necessary to cover operational expenses and maintain a healthy cash flow.

Addressing these challenges is key to running a successful self storage business, allowing for steady growth, customer satisfaction, and long-term sustainability.

e.) Self Storage Business Models

There are various types of self storage business setups, each with its own unique business model. Here are some common setups and their corresponding business models:

Single Facility, Owner-Operated:

• A single self storage facility owned and operated by an individual or a small team.
• Business Model: The owner is responsible for all aspects of the business, including facility management, customer service, marketing, and financial management.

Multi-Facility Chain:

• Multiple self storage facilities owned and operated by a single company or corporation.
• Business Model: The company centrally manages operations, marketing, and financials across all locations. Each facility may have its on-site management team.
• Self storage facilities operated under a franchise agreement with an established brand.
• Business Model: Franchisees benefit from the brand recognition, support, and operational guidelines provided by the franchisor while maintaining independence in managing their individual facility.

Conversion Facilities:

• Repurposing existing structures such as warehouses, retail spaces, or industrial buildings into self storage facilities.
• Business Model: Capitalizing on the existing structure, these facilities often offer unique layouts and features, catering to specific customer segments.

Climate-Controlled Storage:

• Facilities that provide temperature and humidity-controlled storage units, suitable for sensitive or valuable items.
• Business Model: Higher rental rates and specialized facility maintenance requirements justify the added costs of climate control.

Portable Storage Units:

• Offering storage units that can be delivered to customers’ locations, allowing for convenient loading and unloading.
• Business Model: Primarily focused on logistics and transportation, customers rent portable units for temporary storage.

Specialty Storage:

• Business Model: Serving niche markets with specialized storage solutions, often commanding premium pricing.

These are just a few examples of self storage business setups and their corresponding business models. Each model has its advantages, considerations, and target markets, allowing entrepreneurs to choose the one that best aligns with their goals and resources.

f.) Pros and Cons

Pros of Running a Self Storage Business:

• Stable Demand: Self storage is consistently demanded, as people often require extra space for personal belongings or during transitional periods.
• Recurring Revenue: Monthly rentals provide a steady income stream, contributing to financial stability.
• Scalability: It is possible to expand and add more units or facilities to accommodate growing demand.
• Limited Interaction: Compared to some businesses, self storage requires minimal daily customer interaction.
• Low Maintenance: Once set up, self storage facilities require relatively low maintenance.

Cons of Running a Self Storage Business:

• Initial Investment: Starting a self storage business requires a significant upfront investment for land, construction, and security systems.
• Competition: Depending on the location, there may be competition from other self storage facilities.
• Operational Costs: Maintaining and securing the facility and marketing expenses can impact profitability.
• Tenant Management: Dealing with delinquent payments, tenant disputes, and property damage can be time-consuming.
• Economic Factors: Economic downturns may affect occupancy rates and rental prices.

Note: This is a brief summary, and there may be additional pros and cons specific to individual circumstances and locations.

g.) Customer Expectations 

Customers have certain expectations when it comes to self storage businesses. Here’s a brief overview of what customers generally expect:

• Security: Customers expect their belongings to be stored in a secure environment with robust security measures in place, such as surveillance systems, access control, and well-maintained premises.
• Clean and Well-Maintained Facilities: Customers anticipate clean and well-maintained storage units and common areas, ensuring their items are protected from pests, dust, and damage.
• Accessibility and Convenience: Customers expect convenient access to their storage units, including extended operating hours, easy-to-use entry systems, and adequate parking facilities.
• Friendly and Responsive Customer Service: Customers appreciate friendly and helpful staff who can readily address their inquiries, provide assistance, and resolve concerns promptly.
• Transparent Pricing and Contracts: Customers expect clear and transparent pricing structures, rental agreements, and no hidden fees, ensuring they can make informed decisions and understand the costs.

Meeting and exceeding these customer expectations is crucial for building trust, fostering positive relationships, and ensuring customer satisfaction in the self storage industry.

h.) Making Your Self Storage Business stand out

To make a self storage business stand out, consider implementing the following ideas:

• Exceptional Customer Service: Provide personalized and attentive customer service to create a positive client experience.
• Innovative Features: Offer unique amenities such as climate-controlled units, 24/7 access, or online reservation systems.
• Community Involvement: Engage with the local community through sponsorships, events, or partnerships to build brand recognition and trust.
• Value-Added Services: Provide additional services like moving assistance, packing supplies, or package acceptance to go the extra mile for customers.
• Online Presence: Maintain a user-friendly website, active social media accounts, and positive online reviews to enhance visibility and attract tech-savvy customers.

Implementing these ideas can help differentiate your self storage business from competitors and attract customers looking for exceptional service and added value.

i.) Add on Ideas for a Self Storage Business

Consider offering the following add-ons to enhance your self storage business:

• Moving Services: Provide professional moving assistance, including packing, loading, and transporting items.
• Packing Supplies: Sell or offer rental options for packing materials such as boxes, tape, bubble wrap, and moving blankets.
• Shelving and Organization Solutions: Offer shelving units or organizational systems to help customers maximize their storage space.
• Vehicle Storage: Provide storage options for vehicles, such as cars, motorcycles, or recreational vehicles (RVs).

These add-ons can generate additional revenue, attract customers seeking convenience, and provide comprehensive storage solutions for your clients.

2. Research

Self storage business research.

Before embarking on your self storage business venture, conducting thorough industry research is crucial. Familiarizing yourself with the field will provide valuable insights and ensure you’re well-prepared for what lies ahead.

Accessing quality information is paramount for making informed decisions and determining if this business fits you.

One effective way to acquire reliable information is by connecting with industry professionals with firsthand experience.

Engaging with experienced individuals can be invaluable, allowing you to gain insights from their years of expertise.

I’ve crafted an article that offers guidance on identifying the right people to approach and how to approach them.

To gain a comprehensive understanding of the self storage industry and set yourself up for success, I highly recommend reading the article linked below before launching your business

It will provide you with valuable insights and knowledge for the journey ahead.

See An Inside Look Into the Business You Want To Start  for all the details.

Target Audience

Understanding your target market is essential when starting a self storage business. It involves gaining insights into the people likely to be interested in your offerings.

By understanding your target market, you can tailor your marketing efforts and better meet their needs.

Potential customers who may be interested in self storage include:

• Individuals in the midst of moving or relocating
• Small business owners in need of extra storage space
• College students seeking temporary storage during breaks
• Homeowners undergoing renovations or downsizing
• Seasonal travelers requiring storage for their belongings
• People that are moving and need to store belongings during the transition

Understanding your customers’ preferences enables you to improve advertising strategies and enhance sales.

For more in-depth guidance on understanding your target market, please refer to  How To Understand Your Target Market.

3. Looking at Financials:

Welcome to the section that provides an overview of startup costs, monthly expenses, revenues, and profits for your self storage business.

Startup Costs:

• Accurately estimate startup costs to ensure a smooth launch and avoid financial challenges.
• Create a comprehensive list of all necessary items and services, considering factors like size, location, and equipment choices.
• Balancing the cost of new versus used equipment is an important decision.

For more detailed information, refer to my article on  Estimating Startup Costs.

Sales and Profit:

• The popularity and demand for your products and services influence sales.
• Effective marketing strategies are crucial for generating awareness and attracting the right customers.
• Profitability requires considering expenses such as rent, payroll, and overhead costs, not just profit per sale.
• Achieving profitability involves generating sufficient sales with suitable profit margins.
• It’s important to cover monthly expenses and account for personal living costs.

Understanding and effectively managing startup costs, sales, and profitability are key factors for a successful self storage business.

For More, See Estimating Profitability and Revenue

Sample Financial Lists As a Starting Point

Estimated Costs for a New Self Storage Business in the USA:

• Land acquisition: $500,000 – $1,000,000
• Construction costs: $1,000,000 – $1,500,000
• Legal, architectural, and consulting fees: $50,000 – $100,000
• Licensing and permits: $10,000 – $20,000
• Marketing and advertising for launch: $20,000 – $50,000
• Office setup (computers, software, etc.): $5,000 – $10,000
• Security setup (cameras, gates, etc.): $20,000 – $40,000
• Initial inventory for retail sales (locks, boxes, packing supplies): $2,000 – $5,000
• Insurance premiums for the first year: $10,000 – $15,000
• Miscellaneous and unforeseen expenses: $50,000 – $100,000

Grand Total Estimated Startup Costs: $1,667,000 – $2,840,000

Estimated Monthly Expenses for a Self Storage Business in the USA:

• Employee wages: $4,000 – $7,000
• Utilities (Electricity, water, waste disposal): $1,000 – $2,000
• Security maintenance: $200 – $400
• Insurance: $800 – $1,300
• Marketing and advertising: $1,000 – $3,000
• Property taxes: $1,000 – $2,000
• Office supplies and retail inventory: $500 – $1,000
• Routine maintenance and cleaning: $1,000 – $2,000
• Professional services (legal, accounting, etc.): $500 – $1,000
• Miscellaneous: $500 – $1,000

Grand Total Estimated Monthly Expenses: $10,500 – $20,700

Projected Revenue and Profit for a Self Storage Business in the USA:

• Rental income from storage units: $20,000 – $40,000/month
• Retail sales of moving supplies: $1,000 – $2,000/month

Total Monthly Revenue: $21,000 – $42,000

• Monthly expenses: $10,500 – $20,700

Monthly Profit: $10,500 – $21,300

You can use these as a starting point for your research.

Note: Every situation is different, and many factors come into play, but these lists will give you a starting point to build ones for your self storage business.

Remember, these are just estimates and your actual costs or revenue could be higher or lower. Starting a business involves careful planning and consideration. Always seek professional advice when calculating your business’s startup costs, expenses, and potential revenue.

4. Choosing The Right Business Location

Selecting the right location for your self storage business can significantly impact its success. It is crucial to consider the following factors:

Choose a location where there is sufficient demand for self storage services. Ensure there is a market for what you have to offer to avoid launching in an area with limited demand.

Competition:

Avoid areas with excessive competition that may hinder your ability to make sales. Strive for a balance where there is reasonable competition alongside market demand.

Affordability :

Assess the financial feasibility of operating in a particular location. Determine if the potential for increased exposure and profitability justifies the higher costs associated with highly populated areas.

Evaluate if the location aligns with the target market you aim to serve. A cheap operating location may not be viable if it lacks sufficient demand to support your business goals.

Choosing the right location is a critical factor in achieving success. Thoroughly research and analyze potential locations to ensure you make an informed and advantageous choice for your self storage business.

For more about business locations, see Choosing The Best Location for Your Business.

5. Choose a Business Name

When selecting a name for your self storage business, it’s important to choose a catchy and appropriate name that is easy to pronounce and memorable.

Take the time to find a name that aligns with your company and will stand the test of time.

Remember, the name you choose will likely remain with your business, so it’s essential to select one you’ll be satisfied with now and in the future.

Additionally, securing a matching domain name for your online presence is crucial while ensuring another business does not already register it.

Below are business name ideas for a self storage business:

• QuickAccess Storage
• EliteStorage
• SmartLocker
• MetroStorage
• ProGuard Self Storage
• StoreSolutions
• ReliableSpace
• SuperiorStorage
• CityCube Storage
• AccessPoint Self Storage
• KeepSafe Storage
• SpaceSavers

Remember, the list above inspires your creativity in creating a unique and original name that is not already used by another business and is available for registration.

For this important step, see How to Choose a Business Name.

6. Register Your Company

Registering your self storage business is a vital step in establishing and operating your venture legally and responsibly. Here’s an overview of its importance, considerations, and the permits and licenses to consider:

Importance of Registering:

• Legitimacy: Registering your business provides legal recognition, giving it credibility and establishing its legitimacy.
• Compliance: Registration ensures that your self storage business adheres to local, state, and federal laws and regulations.
• Business Name Protection: Registering your business name offers protection against others using the same or similar name in your industry.
• Access to Benefits: Registered businesses may be eligible for certain benefits, such as tax deductions, grants, or business loans.

Considerations for Registration:

• Legal Structure : Determine the appropriate legal structure for your self storage business, such as a sole proprietorship , partnership , LLC , or corporation.
• Business Name : Choose a unique and memorable name that complies with naming guidelines and doesn’t infringe upon existing trademarks.
• Entity Registration: File the necessary paperwork with the appropriate government agency, typically the Secretary of State or a local business registration office.

Permits and Licenses to Consider for a Self Storage Business:

• Business License : Obtain a general business license to operate legally within your jurisdiction.
• Zoning and Land Use Permits: Ensure compliance with local zoning regulations and obtain necessary permits for the chosen location.
• Building and Construction Permits: Secure permits for construction or renovation projects, including structural modifications and fire safety measures.
• Occupancy Permits: Obtain approval for occupancy and compliance with building and safety codes.
• Environmental Permits: If applicable, acquire permits related to waste management, hazardous materials, or environmental impact assessments.

Note: The required permits and licenses may vary depending on your location. It’s crucial to consult with local authorities and professional advisors to ensure full compliance with all applicable regulations.

See, How to Register your Business  for more.

7. Create Your Corporate Identity

A Corporate ID, also known as corporate identity, is a design that visualizes your self storage business. It plays a crucial role because you want to make a positive first impression on potential customers.

Having a consistent and professional design helps establish credibility and professionalism. It communicates your brand values and creates a cohesive visual identity for your business. A well-crafted Corporate ID can help attract and retain customers by building trust and recognition.

A Corporate ID consists of various components such as your logo , business cards , website , stationary, business sign , promotional items, etc.

Consider the following elements for your Corporate ID:

• Logo: Design a memorable and visually appealing logo that represents your brand.
• Color Palette: Choose a harmonious color scheme that reflects your business’s tone and personality.
• Typography: Select fonts that align with your brand image and are easily read.
• Visual Elements: Use consistent graphics and imagery to enhance your brand’s visual identity.

See A Complete Introduction to Corporate Identity Packages for more.

8. Writing a Business Plan

A Business Plan is a vital document for your self storage business. It serves multiple purposes, including acquiring funding and attracting investors. Additionally, it acts as a roadmap to guide you through the startup phase and daily operations.

Writing a comprehensive business plan requires time and careful consideration as you envision the future of your business. It’s an opportunity to express the details and intricacies of your operation.

The effort invested in creating a business plan is worthwhile. Once completed, it clearly outlines the steps to start and operate your self-storage business effectively.

When developing your business plan, remember that you have options available:

• Writing from scratch
• Hiring a professional
• Using a template
• Utilizing business plan software

Regardless of the approach you choose, active participation is crucial. This ensures that your business plan stands out and effectively communicates the nature of your self storage business.

Keep in mind that your business plan is a dynamic document that can be optimized and modified as you gain experience.

Regularly reviewing and making necessary adjustments is advisable to align it with the evolving needs of your business.

By creating a well-crafted and adaptable business plan, you can lay a solid foundation for your self storage business and set yourself up for success.

SAMPLE Business Plan for a Self Storage Business

Executive Summary:

This business plan outlines the objectives, strategies, and financial projections for XYZ Self Storage, a new self-storage facility based in Anytown, USA. The company aims to provide clean, secure, and easily accessible storage units for both individual and business clients.

Company Description:

XYZ Self Storage is a new venture dedicated to providing a range of storage solutions. We plan to offer a variety of storage unit sizes, as well as amenities such as climate-controlled units, vehicle storage, and sale of packing and moving supplies.

Market Analysis:

The self storage industry in the USA is growing due to factors like urbanization, downsizing by baby boomers, and growth in the housing market. Anytown, with its growing population and robust small business sector, presents an opportunity for our business.

• Residential Customers: Those who need storage due to moving, downsizing, or seasonal storage needs.
• Business Customers: Businesses needing space to store records, equipment, or inventory.
• There are a few storage facilities in Anytown, but none that offer the combination of services, quality, and convenience that we plan to provide at XYZ Self Storage.

Organization and Management:

XYZ Self Storage will be a Limited Liability Company owned by [Owner’s Name(s)]. The day-to-day operations will be handled by a facility manager, with additional staff as required for customer service and maintenance.

We will offer self-storage units of various sizes, including options for climate-controlled units and vehicle storage. We will also sell moving and packing supplies. We aim to differentiate ourselves through top-tier customer service, well-maintained and secure facilities, and convenient access hours.

Marketing and Sales Strategy:

• Marketing Strategy: We plan to leverage both online and traditional marketing channels. This includes SEO and PPC advertising, social media promotion, local print media ads, and community engagement through sponsorship of local events.
• Sales Strategy: Our focus will be on delivering exceptional customer service to drive word-of-mouth referrals. We’ll also offer incentives such as discounts for long-term contracts or customer referrals.

Financial Projections:

The financial goal for XYZ Self Storage is to achieve steady growth in rental occupancy and sales, reaching profitability within the first two years of operation.

• Start-Up Costs: Estimated between $1,667,000 and $2,840,000.
• Projected Monthly Revenue: Estimated between $21,000 and $42,000.
• Projected Monthly Expenses: Estimated between $10,500 and $20,700.
• Monthly Profit: Estimated between $10,500 and $21,300.

Funding Request:

We are seeking an initial investment of $X to cover land acquisition, construction costs, and operational expenses for the first year. This funding could come from a combination of owner’s equity, bank loans, or potential investors.

Exit Strategy:

If the need to dissolve the business arises, assets such as land, buildings, and equipment can be sold. Additionally, the business could be sold to a larger storage company or other interested party.

Conclusion:

With a comprehensive understanding of the market, a dedicated team, and a strong marketing strategy, XYZ Self Storage aims to provide an exceptional service to Anytown’s residents and businesses. Our business model and financial projections indicate a promising opportunity for success and growth.

This sample business plan serves as a guideline and may require adjustments based on your local market, specific business model, and personal business goals. Always seek professional advice when creating a business plan.

For information on creating your business plan, see,  How to Write a Business Plan.

9. Banking Considerations

When operating a self storage business, choosing a nearby bank that specializes in serving business owners is beneficial. Consider the following points regarding banking for your business:

Business Account:

• A dedicated business account allows you to separate business expenses from personal finances, simplifying expense tracking and providing tax audit documentation.

Professional Relationship:

• Building a professional relationship with your banker is advantageous. They can assist, advice, and expedite loan processes if you require self-storage business funding.

Merchant Account:

• Applying for a merchant account enables you to accept customer credit and debit card payments. This adds convenience and expands payment options for your clients.

Banker Relationship:

• Cultivating a strong relationship with your banker can streamline setting up a merchant account and ensure smooth communication regarding banking needs.

By selecting a bank that understands the requirements of business owners and establishing a professional rapport with your banker, you can access essential financial services and support for your self storage business, such as business accounts, merchant services, and potential funding opportunities.

For more, see, How to Open a Business Bank Account. You may also want to look at, What Is a Merchant Account and How to Get One.

10. Getting the Funds for Your Operation

When starting and operating a self storage business, securing funding is a crucial step. Consider the following aspects:

Funding Options:

• Explore various funding sources such as traditional lenders, private loans, investors, selling existing assets, or utilizing collateral.
• Research government grants or small business programs that may offer financial support specifically for self storage businesses.

Meeting with a Loan Officer:

• Clearly articulate your business plan, including market analysis, financial projections, and growth strategies.
• Highlight your experience in the self storage industry or relevant business management expertise.
• Demonstrate your commitment by showcasing personal investment in the business.
• Be prepared to discuss collateral options and potential repayment plans.

Sample List of Documents for a Business Loan Application:

• Business plan, including market analysis, financial projections, and growth strategies.
• Personal and business financial statements.
• Tax returns for the previous years.
• Proof of collateral, such as property deeds or equipment valuations.
• Legal documents, including licenses, permits, and registrations.
• Resume or portfolio highlighting relevant experience.

Understanding your funding needs, exploring various options, and preparing a comprehensive loan application will increase your chances of obtaining the necessary funds to start and operate your self storage business successfully.

See, Getting a Small Business Loan for more.

11. Software Setup

When running a self storage business, the right software is crucial for efficient operations. Here are some key points to keep in mind:

Software Considerations:

• Research software options before committing, as it is easier to implement a program from scratch rather than switch systems after your data is already in another program.
• Look for software demos and read reviews and forums to gather insights from others using the software.
• Research accounting software options for tracking expenses and preparing financial documents for tax filing. Consulting with a bookkeeper or accountant can guide you in choosing the best accounting software for your business.

Software Used for a Self Storage Business:

• Management Software: Specifically designed for self storage businesses, these programs help streamline tasks like tenant management, unit reservations, and billing. Examples include SiteLink, Yardi, and storEDGE.
• Accounting Software: Simplify financial management with software like QuickBooks, Xero, or Wave, allowing you to track expenses, generate invoices, and manage payroll efficiently.
• Security and Access Control Software: Implement software solutions like PTI Security Systems, Janus International, or Easy Storage Solutions to monitor facility access, security cameras, and gate control.
• Online Rental and Reservation Platforms: Utilize platforms like SpareFoot, SelfStorage.com, or StoragePug to enable online rentals and reservations, expanding your reach to potential customers.

Choosing the right software can enhance productivity, streamline processes, and improve overall efficiency in your self storage business.

Evaluate your specific needs and consider software options tailored to the industry to optimize your operations.

Check out Google’s latest search results for software packages for a self storage business.

12. Get The Right Business Insurance

When seeking insurance coverage for your self-storage business, addressing specific concerns is important to ensure adequate protection. Consider the following:

Insurance Considerations for a Self Storage Business:

Property Coverage:

Protecting your physical property, including storage units, office space, and equipment, against risks such as fire, theft, or natural disasters.

Liability Coverage:

Safeguarding against potential claims or lawsuits from customers, employees, or visitors who may suffer injury or property damage on your premises.

Customer Belongings Coverage:

Providing insurance options for customers to protect their stored belongings, either through offering coverage directly or recommending third-party insurance providers.

Business Interruption Coverage:

Considering coverage to mitigate financial losses in the event of unexpected disruptions, such as a fire or natural disaster, that temporarily halt business operations.

Workers’ Compensation:

Ensuring coverage for employees in case of work-related injuries or illnesses, providing medical expenses and lost wages.

Professional Liability Insurance:

If offering additional services such as packing, moving assistance, or document shredding, obtaining professional liability insurance to protect against claims of negligence or errors.

Home-Based Business Considerations:

Informing your home insurance agent if you plan to operate or manage your self storage business from your home, as it may affect your existing home insurance policy.

Consulting with a competent insurance broker who specializes in commercial insurance can guide you through the process and help identify the appropriate coverage options tailored to your self storage business’s unique needs.

For more, see What to Know About Business Insurance . You can also browse the latest Google search results for self storage business insurance .

13. Physical Setup

The physical setup or layout of a self storage business plays a crucial role in providing a functional and accessible space for customers to store their belongings securely.

It strategically organizes storage units, driveways, and access points to optimize convenience and efficiency.

You will want to consult with a professional to ensure the layout of self storage operation is laid out in a way to maximize units. At the same time, it’s convenient for customers to store their belongings.

Setting up signage is essential for a self storage business.

Besides installing your main business sign, it is important to add signs to all relevant locations, such as parking lots, exits, and special areas. Well-designed signs guide people, direct them to specific areas, and demonstrate professionalism in your operation.

Office Setup:

Managing your self storage business will take up most of your time in the office. Therefore, having an organized office is crucial to increase productivity and efficiency.

Your office should be fully equipped with everything you need to manage your business effectively, including necessary furniture, computer systems, storage for paperwork, and office supplies.

A well-equipped and well-organized office enables you to handle customer inquiries, administrative tasks, financial management, and other essential operations smoothly and professionally.

See, Here are Considerations for The Setup of Your Office, for tips and ideas to make your office work for you. Also, have a look at our article About Company Signs.

14. Creating a Website

Having a website for your self storage business offers several benefits. It serves as a virtual storefront, allowing potential customers to find and learn about your services online.

A website provides convenience and accessibility, allowing customers to reserve units, make payments, and access information anytime. It enhances your credibility and professionalism, showcasing your business in a competitive market.

Additionally, a website enables effective marketing, reaching a broader audience and promoting your unique features and offerings.

Overall, having a website boosts visibility, customer engagement, and growth opportunities for your self storage business.

For more, see How to Build a Website for Your Business .

15. Create an External Support Team

Building an external support team of professionals is crucial for your self storage business. These experts provide valuable advice and services without being part of your payroll.

Ideally, you can engage them to peruse, contract, or hourly. While you may already work with some individuals, recognizing them as part of your team helps acknowledge their significance and encourages adding more members over time.

You don’t need to assemble the entire team before starting, as building professional relationships takes time. However, it’s important to continuously work on expanding and strengthening your team.

Your support team may include an accountant, lawyer, financial advisor, marketing specialist, technical advisor, consultants, and more. Having a strong team of professionals ensures you have reliable support whenever you need their expertise.

For more, see, Building a Team of Professional Advisors for Your Business.

16. Hiring Employees

At the early stages of your self storage business, it may be feasible to operate independently without hiring employees. This approach helps minimize payroll expenses, particularly during the initial phase.

However, managing and operating everything single-handedly may become challenging as your business grows. Hiring employees can significantly enhance productivity and efficiency, provided you select the right individuals for the job.

The following are job positions or outsourced services you may want to consider as your self storage business grows and becomes successful:

• Facility Manager: Responsible for overseeing daily operations, customer service, and facility maintenance.
• Customer Service Representative: Assists customers with inquiries, unit rentals, payments, and issue resolution.
• Maintenance Technician: Handles repairs, maintenance, and upkeep of the storage facility and units.
• Sales Representative: Focuses on attracting new customers, conducting tours, and promoting the facility’s features and benefits.
• Marketing Specialist: Develops and implements marketing strategies to increase brand visibility and attract potential customers.
• Accounting/Bookkeeping: Manages financial records, prepares invoices, tracks expenses, and ensures accurate financial reporting.
• IT Support: Provides technical assistance for computer systems, software, and website maintenance.
• Security Personnel: Ensures the safety and security of the premises, monitoring access and surveillance systems.
• Cleaning Staff: Maintains cleanliness and hygiene throughout the facility.

As your self storage business grows, considering these positions and services can help you manage operations more effectively and efficiently.

For more, see, How and When to Hire a New Employee.

Points To Consider

Getting customers through the door.

Attracting customers is essential for the success of your self storage business. Initially, it can be challenging as your operation is new and unfamiliar to people. However, as time passes and you build a good reputation, attracting customers becomes easier.

To gain traction in the early stages, I recommend reading the following article that provides ideas on how to get customers through the door for a new business.

Implementing effective marketing strategies, creating awareness in the local community, and leveraging online platforms can help increase customer visibility and drive traffic to your self storage facility.

As you gain experience and establish a solid reputation, word-of-mouth referrals, and positive customer reviews will attract new customers.

Continuous marketing efforts and excellent customer service will help you build a loyal customer base and ensure the success and growth of your self-storage business.

See our article How To Get Customers Through the Door ; you’ll find a few ideas you can use.

Marketing Ideas

Marketing your self storage business is a continuous endeavor that yields increased revenue. While you can engage a marketing agency or expert, it is not always necessary. Simplify the marketing process by raising awareness about your business whenever opportunities arise.

Bringing awareness to your self storage business can be achieved through various strategies and tactics. Investing time and effort in effective marketing techniques can attract more customers and boost your revenue.

For ideas and insights on bringing awareness to your self storage business, refer to our marketing section, where you can find articles that offer valuable tips and techniques.

These resources will help you develop effective marketing strategies and enhance your overall marketing efforts to drive success in your self storage business.

See our marketing section for articles that will provide ideas to bring awareness to your self storage business.

Focusing on your skill set and evaluating if you possess the necessary abilities is crucial when running a self storage business. Recognize any skill gaps and determine whether to acquire the skills through learning or by hiring someone with expertise in those areas.

Essential Skills for a Self Storage Business Owner:

• Customer Service: Providing exceptional service and building positive customer relationships.
• Organization: Managing inventory, paperwork, and operational tasks efficiently.
• Communication: Effectively communicating with customers, employees, and suppliers.
• Financial Management: Handling budgets, tracking expenses, and ensuring profitability.
• Marketing: Promoting the business, attracting customers, and implementing effective marketing strategies.
• Problem-Solving : Resolving customer issues, addressing operational challenges, and making informed decisions.
• Time Management: Prioritizing tasks, managing schedules, and maximizing productivity.
• Adaptability: Being flexible and responsive to changing market demands and customer needs.

Hours of Operation to Consider for a Self Storage Business:

• Weekdays: Generally, operating from Monday to Friday during standard business hours.
• Weekends: Offering limited hours on Saturdays and Sundays to accommodate customers’ access needs.
• Extended Hours: Providing extended access hours during weekdays or weekends to cater to specific customer requirements.
• 24/7 Access: Offering round-the-clock access for customers who require constant availability of their stored belongings.

Selecting the appropriate hours of operation depends on your target market, customer preferences, and operational feasibility for your self storage business.

Here’s a list of equipment you may need to run a self-storage business:

• Storage Units: The main component of any self-storage business, these should be secure and in a variety of sizes to cater to different customer needs.
• Security Equipment: This includes CCTV cameras, burglar alarms, security lighting, and access control systems such as electronic gates and keycard systems. Some businesses also invest in on-site security staff and live-in managers.
• Office Equipment: Computers, printers, fax machines, telephones, and point-of-sale systems for processing payments and managing customer accounts.
• Moving Equipment: Carts and dollies to assist customers in moving items to and from their units.
• Maintenance Equipment: Cleaning supplies, power washers, paint and brushes, landscaping tools, snow removal equipment (if in a region with snow), and other tools necessary for regular upkeep and repair.
• Climate Control Systems: For facilities that offer climate-controlled units, HVAC systems are necessary to maintain temperature and humidity levels.
• Packaging Supplies: Items like boxes, bubble wrap, tape, and locks for sale to your customers.
• Furniture: Desks, chairs, filing cabinets, and other furnishings for the main office where customers will be served.
• Vehicles: Depending on the size of your facility, you may need a vehicle to get around the property. In some cases, a company van for moving large items could be useful.

This list provides a general guideline. Your specific needs may vary depending on the size of your business, the services you offer, and your local regulations and conditions.

In this section of the post, you will find valuable resources to support your self storage business during its operation.

These resources are designed to enhance your understanding of the industry and offer practical tips for improving your business.

Explore these resources to gain insights, stay updated on industry trends, and access valuable information that can contribute to the success and growth of your self storage business.

Industry Trends and Statistics

Examining industry trends and statistics offers several benefits for a self storage business. It provides valuable insights into market demand, customer preferences, and emerging opportunities.

By staying informed, businesses can make informed decisions, adapt strategies, and stay competitive in a dynamic industry.

See the latest search results for trends and statistics related to a self storage business.

Self Storage Associations

Trade associations provide various benefits, such as industry news updates, networking opportunities, and valuable events, enhancing knowledge and connections within the business community.

See the search results for self storage associations.

Self Storage Construction Companies

If you’re planning to install new self storage units instead of purchasing an existing business, it’s important to research the products and services available that meet your specific needs.

Use the link below to explore companies in your area that can provide guidance and assistance with your facility setup.

See the latest search results for the self storage construction companies.

Top Self Storage Business

Examining established self storage businesses can inspire innovative ideas to fill gaps in the industry or identify overlooked aspects within your business.

It offers an opportunity to learn from successful practices, discover untapped potential, and enhance the overall operations of your self storage business.

See the latest search results for the top self storage businesses.

The Future of the Self Storage Industry

Researching the future of the self storage industry provides valuable insights for aspiring entrepreneurs.

It helps identify emerging trends, market opportunities, and potential challenges.

By understanding the industry’s future, individuals can make informed decisions, develop strategic plans, and position their self storage business for long-term success.

See the search results for the future of the self storage industry.

Researching industry prices offers several benefits for someone starting their own self storage business.

It provides insights into pricing strategies, market rates, and competitive pricing.

This knowledge helps in setting competitive prices, maximizing profitability, and attracting customers in a competitive market.

See the latest self storage prices.

Self Storage Businesses for Sale

Buying an existing self storage business that’s already operational has both advantages and disadvantages:

Benefits of buying an established self storage business:

• Immediate Revenue: You start earning income from the day you take over.
• Skip the Startup Phase: You bypass the time-consuming and risky startup process.
• Proven Business Model: You know the business is viable and has a track record of success.
• Financial Visibility: You can access historical revenue, profit, and expense data.
• Existing Customer Base: You inherit an established customer base, reducing the need for extensive customer acquisition efforts.
• Established Reputation: The business has already built a reputation within the market.

Disadvantages of buying an existing self storage business:

• Higher Cost: Purchasing an established business usually comes with a higher price tag due to the value of its customer base and goodwill.
• Risk of Losing Customers: Significant business operations changes could result in customer attrition, requiring careful transition management.
• Inherited Reputation: The reputation of the business, both positive and negative, becomes part of your ownership.

Consider these pros and cons carefully to make an informed decision about whether buying an existing self storage business aligns with your goals and resources.

See self storage – businesses for sale to browse the latest listings.

Self Storage Franchise Opportunities

Considering a self storage franchise has its advantages and disadvantages, but it’s worth exploring as an alternative to starting a business from scratch.

Pros of buying a self storage franchise:

• Proven Business Model: You can follow a well-established plan created by the franchise’s corporate office.
• Brand Reputation and Marketing: Benefit from the existing reputation and marketing efforts of the franchise.
• Preexisting Knowledge: Gain comprehensive insights into the business before getting involved.
• Corporate Support: Receive support from the corporate office throughout your franchise journey.

Cons of buying a self storage franchise:

• Higher Cost: Purchasing a franchise can be expensive, including initial fees and ongoing royalty payments.
• Limited Autonomy: Major changes to the business require approval from the corporate office.
• Restricted Product/Service Offerings: You must adhere to approved products and services determined by the franchise.
• Operational Limitations: Your business operations must align with the terms outlined in the franchise agreement.
• Ongoing Franchise Fees: Expect regular payments of franchise fees to the corporate office.

Carefully evaluate the pros and cons to determine if buying a self storage franchise aligns with your goals, resources, and desired level of control and autonomy.

See self storage franchise opportunities to browse the latest listings.

Knowledge Is Power if You Use It!

Knowledge is a powerful tool for your self storage business. Utilize valuable online resources to gather industry insights during research, startup, and operations.

Access the provided links for valuable information to make informed decisions and stay updated on industry trends. Empower your business with knowledge for success.

A Day in the Life

“A Day in the Life of a self storage business owner” provides valuable tips and insights from industry professionals, offering a comprehensive overview of what to expect in managing a self storage business.

Gain valuable insights and guidance from those with firsthand experience in the industry.

See the search results for a day in the life of self storage business owners.

Self Storage Business Owners Interviews

Interviews with self storage business owners provide crucial information and insights for understanding the industry.

Spending time on this section offers diverse perspectives and valuable insights, helping you gain a comprehensive understanding and set realistic expectations for your own venture.

See the search results for interviews of self storage business owners.

Publications

Publications are an excellent source for staying updated on the latest information and trends in the self storage business.

They provide valuable insights, industry news, and best practices, keeping you informed and equipped to make informed decisions for your business.

See the search results for publications related to a self storage business.

Engaging in self storage forums offers the opportunity to participate in discussions on trending topics.

Active forum participation fosters relationship-building with industry peers, facilitating knowledge sharing and networking within the self storage community.

See the latest search results for the top self storage forums.

Courses related to the self storage business offer valuable opportunities to learn, enhance skills, and stay updated in the industry.

These courses provide knowledge and practical insights to improve your expertise and keep pace with the evolving trends in the self storage industry.

See the latest courses related to running a self storage business.

Self Storage Blogs

Subscribing to self storage blogs offers a valuable resource for generating ideas and staying informed about industry trends.

By subscribing to relevant blogs and curating a collection of informative sources, you can access a continuous stream of valuable information to support your self storage business.

Look at the latest search results for self storage blogs  to follow.

Keeping up with the news is a reliable method to stay updated on the latest developments in the self storage industry.

Setting up alerts ensures timely notifications whenever relevant media coverage occurs. Stay informed and make informed business decisions.

See what’s in the news related to a self storage business?

Watching videos about the self storage industry provides valuable tips and insights. Additionally, exploring related videos suggested by YouTube can uncover new topics and perspectives that you may not have considered before. Expand your knowledge and gain fresh perspectives through video content.

See the links to YouTube Videos Below.

• Videos related to starting a self storage business can be found here.

Privacy Overview

Self Storage Business Plan Template & Guidebook

How to write a self storage business plan in 7 steps:, 1. describe the purpose of your self storage business..

The first step to writing your business plan is to describe the purpose of your self storage business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

Our mission is to provide our customers with top-of-the-line self storage facilities and innovative storage solutions, while preserving a safe and secure environment for their items. We are committed to delivering an exceptional service experience that is tailored to meet the unique needs of each customer, while ensuring an outstanding value.

2. Products & Services Offered by Your Self Storage Business.

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

Target market, customer base , product or service description, competitive analysis, marketing channels, form an llc in your state, 4. write your operational plan..

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

What equipment, supplies, or permits are needed to run a self storage business?

5. management & organization of your self storage business., 6. self storage business startup expenses & captial needed..

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your self storage business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Frequently Asked Questions About Self Storage Business Plans:

Why do you need a business plan for a self storage business.

A business plan for a self storage business is important for identifying goals, strategies, and the resources needed to open and operate a successful facility. It also helps clarify key issues such as customer needs, target market, competitive advantage, and financial projections. It can provide structure for the business and guide decision-making. Additionally, potential lenders and investors will likely review the business plan before deciding whether or not to offer funding.

Who should you ask for help with your self storage business plan?

Can you write a self storage business plan yourself.

Yes, it is possible to write a self storage business plan yourself. To do so, you'll need to research the industry, find potential locations, and analyze the competition. You'll also need to develop a marketing plan, financial projections, and legal considerations for your particular business. Additionally, you'll need to write out your operational plan, detailing how you plan to manage and maintain your facility. Lastly, be sure to thoroughly review your plan with legal and financial advisors before launching your business.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

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Self-storage Business Plan: All You Need To Know

What is a self-storage business plan, why do you need a business plan for your self-storage business, components of a self-storage business plan, do you need a professional to write your self-storage business plan, difference between a self-storage business plan and a self-storage business model, challenges of writing a self-storage business plan, self storage business plan examples.

Free Self-storage Business Plan Template

A business plan is necessary if you intend to open a new self-storage facility or develop an existing one. The major things that need to be mentioned in each component of your business plan for a storage facility are discussed below.

A self-storage business plan outlines your growth strategy for the coming five years and gives a full overview of the operation of your self-storage business. It outlines your company's objectives and your plan for achieving them. Market research is also included to help you with your ideas.

You need a business plan if you want to launch a self-storage or storage unit company or expand an already successful one.

A business plan will increase your chances of success by assisting you in obtaining capital, if necessary, and planning the expansion of your self-storage company. As your firm develops and evolves, you should regularly update your self-storage business strategy.

Be sure to take into account the operational requirements needed to run this business in addition to the original planning process. Fortunately, self-storage facility investments are usually appealing since operational costs are often inexpensive.

Make sure the following elements are included in your business plan:

Executive Summary

An executive summary is a condensed description of your company. Imagine it as the very first subject you would mention in a discussion about your company. An executive summary for a self-storage enterprise, for instance, would begin as follows:

This business's goal is to build and run a 100-unit complex on a piece of property outside.

Or you can try this:

This business endeavor sorts for and purchases quality self-storage properties in minor markets. To boost revenue within the next two years, the company will remodel and upgrade its facilities with the newest technology.

An executive summary should continue by summarizing and highlighting important sections of your company's plan, such as predicted revenue and total costs.

Business Description

This section should contain our company structure: sole proprietorship, LLC, C- or S-corporation.

You may outline the specifics of how your self-storage company will function here. Include operational information about your company, such as branding, services that you intend to provide, and anticipated costs, in addition to your legal status.

Today, more than ever before, businesses have been equipped with cutting-edge phone systems, user-friendly applications, and online payment options. Although these features aren't always required for success, having a small number of tech-powered solutions will give you an advantage. Think about the adoption of these devices as soon as possible.

Think about your employment strategies, insurance requirements, and upkeep practices, among other things. Besides self-storage rents, take into account other revenue streams like the sale of renter's insurance or moving materials.

Market Research and Strategy

In this section of your business plan, summarize your most important results from the market analysis you previously conducted and explain how they influence your concept for a self-storage business.

Analyze the supply and demand dynamics and demography of your target market. For instance, you may think about providing RV storage if people ask for it. Make a plan for how you'll generate income and acquire new tenants through techniques like billboard marketing, and digital marketing.

The self-storage market has its own dynamics, just like any other industry. You may carry out a self-storage project more successfully if you are aware of these tendencies.

Management and Personnel Structure

The key players in your self-storage industry are discussed in this section. Explain the executive team's background, credentials, and responsibilities as well as any extra staff you may have on hand or may need to employ in order to carry out your strategy.

Financial Reporting Documents

Is your business concept for a self-storage facility financially/commercially sustainable? You can now prove it by outlining the specifics of your financial condition. What are your possessions and obligations? Will you have to pay back your debt?

The predicted cash flow, balance sheet, and profit and loss for your company for the coming two to three years should all be included in this area.

Developing your self-storage business plan all by yourself may not be a smart move. It is too vital to create on your own. Would you appear in court unrepresented by a lawyer? Would you release an app without a software developer?

However, even if it is recommended to collaborate with a professional, you might want to explore working on your initial draft by yourself.

The effort behind the initial draft should come from you and you alone. You may contact a business consultant for guidance on the right approach for your specific business plan or have one edit it later.

A self-storage business’s backbone is its business model, while its structure is its business plan. Therefore, a business model is the basic idea of the company, strategies for generating revenue, as well as an explanation of how it works. The business plan goes into great depth to demonstrate how this concept may operate.

Actually Starting

Be rest assured that we can all relate to how challenging this is. As a first step, it is recommended that you keep your plan to one page.

You may think that this is impossible, but it is not. Though it is not going to be the finished body of work, it serves as a canvas to plot the structure of the potential result of the main self-storage business plan.

It is a visual tool, a means to brainstorm your ideas into something more organized, built on the basic elements of your plan.

Once you've assembled the building blocks, you've already laid the groundwork for a solid business plan. It makes a lot more sense to do this than to isolate yourself in a space and try to produce a 20-page document in one go.

Budgeting and Financing Estimates

Budgeting and financing for self-storage businesses can feel overwhelming, and because the statistics appear more restrictive, the financial aspect of a business plan does seem to stimulate the most concern.

On the other hand, your business plan is meant to assist you with preparing for the future and scaling your business. Also, note that they are estimations, not forecasts, and there are no wrong or right figures. When you approach them in this manner, they become significantly less intimidating.

Make sure that you're systematic about it. One smart way to do it would be to begin from the bottom and work your way back up. You know how much money you want your company to generate, so figure out how much each part of our self-storage products and services should bring in.

Also, find out what your expenditures may possibly be in order to meet that goal. It sounds simple, yet it is so quickly forgotten. Remember, these are YOURyour figures. Don't be compelled to just select a template and fill it out yourself. Begin with the fundamentals and then link the dots.

Knowing Your Demographics

The most difficult challenge for a growing self-storage business is resisting the temptation to let the perceived momentum of their performance be the basis for broadening their opportunities.

Also, you want to be approachable. However, resist the urge to say yes to everyone and everything. Reacting to who you work with and saying yes to everybody rather than going after specific people that you know you want to work with will simply spread the value you provide clients too thinly and dilute what you do best.

It is critical to understand your target audience. You may utilize a categorization tool like 6SenseRevenueAI, which uses a scoring system to meticulously identify distinct tiers of consumers.

Not only does it keep you informed about your present customer base, but it also serves as a superb screening tool to determine whether new client leads are strong or just something put in to expand your net and weaken your value to your important clients.

Making It Interesting

Anything "interesting" is always conveyed with enthusiasm. Imagine you're chatting to a stranger, you've told them about your self-storage company, and they ask you a question—a passionate tale about how you are of service, the kind of people you help, as well as who you might be able to help in the future, should most likely follow.

That's significantly more intriguing than a scripted sales speech peppered with figures and statistics.

Below, we have included various business plan samples for your self-storage company launch to assist you in developing your own business plan:

• OGS Capital self-storage business plan samples
• Sample.net self-storage business plan samples (PDF)
• SampleTemplates self-storage business plan samples (MS word, google docs, PDF.)
• Examples.com self-storage business plan samples
• ExpertHub self-storage business plan sample

Below is a self-storage business plan template that outlines the important components of a successful self-storage business plan for your guidance.

Above all, in the marketing/management section of your business plan, you should indicate the need for an authentic self-storage property management system. The PMS should feature a sophisticated client management system, single app control, and a richer experience for all.

Your self-storage facilities can be maintained efficiently and optimized using the Booking Ninjas self-storage property management system , enabling you to better manage your clients. With our one-stop system, you may benefit from remote access, ticketing and POS systems, online customer acquisition, and much more. It is time to improve your storage.

We are glad to share our knowledge by giving this preparation guide and application to assist you in getting started in the profitable self-storage industry.

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How To Start a Self Storage Business In 6 Steps

Follow these six prep and planning steps to learn how to start a self storage business that’s primed for success from the ground up.

Starting a new business in an unfamiliar industry can be a bit daunting. But you’re not alone; most new self storage facilities are started by folks who are completely new to self storage. You’ve probably had a successful career in another sector, heard tales of the generous returns self storage generates for investors (they’re true!), and are now pretty set on starting this new adventure. We’ve been there , and we’re here to help.

How to start a self storage business?

Before you get caught up in picking a catchy business name and looking at fit outs, there are six prep and planning steps we recommend in order to give your new business the strongest chance of success:

• Decide your investment amount
• Choose the right location
• Plan your storage type + size
• Find your premises
• Decide your operational model
• Research the red tape

Here’s what to do.

1. Decide your investment amount

Work out how much you have to invest, because during this planning phase, your budget will affect:

• where you can afford to get property;
• which types of self storage are feasible; and
• which operational model will be your best option.

Later on, your budget will influence the spec of your fit out, how sophisticated you can get with technology, etc.

Phase your investment?

Starting a self storage business doesn’t have to be an all-at-once proposition. In fact, self storage lends itself particularly well to a phased, modular approach. So when working out your budget, it’s worthwhile breaking out how much you want to invest now, and how much more capital you’re certain you could invest in a year or so to complete your facility if things go well (either from your own funds or with the help of external investors). For example, when our CEO started a self storage business for the first time, he used an initial €120K investment to cover one-off set up costs (taking out a long lease, signage, website and tech costs) and fitted out 1/3rd of the total space, just 49 units initially. Then, a year later, he released a further €110K of home equity to complete the final two fit out stages, taking the facility to 149 units.

2. Choose the right location

Will your facility be in your hometown, the next town over, near where your office is located? Will you spend your days manning the site or will you run it remotely without staff there? Or will you have staff there and you’ll simply check in now and again? Finding the right location for your business makes success more likely.

Every business requires some degree of face-time, so a good starting point is to decide the max you’re willing to commute a few times per week to manage operations, or to commute every day if you plan to work from there. Even if this diminishes over time as you’re able to delegate work, when getting set up (and especially during the fit out phase), you’ll be back and forth a lot.

Starting your search

Use a map like this to work out your search radius (we know it’s not the prettiest tool, but it works!). For example, input your full home address (city, state, zipcode, etc) and the distance you’re willing to travel, then click ‘New Circle’. Make a note of all of the cities/towns in your catchment area.

Researching populations

To decide which locations are viable contenders, list out the towns or cities within your commute area in a table or spreadsheet and work out their populations. This can take a bit of time depending on how many places are on your list and where in the world you’re researching, but here are few links to help you:

• US Census Bureau —Scroll to the ‘Incorporated Places’ section and click on your state. An Excel file will download listing every town’s/city’s population as of 2020 and a 2021 projection.
• Statistics Canada —Scroll midway down the page to use their city/zip code search box.
• United Kingdom—Getting population details on all UK towns and cities still isn’t easy online, but you can use the Scotland Census Area Overview (2011 stats), and try this Area Explorer for Northern Ireland data. In addition, non-government sites like citypopulation.de aggregate publicly-available population data worldwide, and you can search English or Welsh town names to view 2020 population estimates (we just don’t know how accurate their data is).
• Ireland’s Central Statistics Office— Download this spreadsheet of the 2016 census’ total populations for 874 towns in Ireland.
• Australian Bureau of Statistics —Enter your town name in the ‘Search by Area’ field. A search results section will appear a little further down the page. Click its ‘All Persons’ button to quick-view the ‘People’ stats for that location.

Finding unmet demand

With your population table complete, the next step in picking your location is to work out which area presents you with the best business potential.

Start by applying your country’s figure for the average square footage per person. Most Self Storage Associations have this figure available on their website.

In the US, it’s 9.44 sq.ft./head, so you’d multiply the population of each town by this to determine how much self storage the area can support. So a town of 20,000 people could support 188,800 sq.ft. of rental storage space.

The next question: How much self storage space is already on offer in each location on your list? Go online, find out approximately how much space your competitors have built in each town/city and add this to your spreadsheet. Then subtract the two values for each town to see how much space is up for grabs in each area. The more space for the taking, the better your returns should be.

If you want to get even more precise about potential vs competitor capacity, go back to your radius map and plot 3 or 5-mile radius circles around each competitor’s address. Most customers won’t drive more than 5 miles from their home for self storage, and this could help you visualise any lucrative unclaimed locations between your competitors’ catchments.

It’s worth noting that the current supply of self storage per head isn’t necessarily the same as the current demand. There’s likely to be significant unmet demand in most markets. The biggest opportunities are often found in smaller towns. They can present a number of benefits including:

less-expensive commercial properties than cities;

lower property taxes;

less or no competition for business;

faster word-of-mouth promotion;

nobody to outbid in online advertising; and

nobody to get into a price war with.

3. Plan your storage type + size

Once you’ve found a good area to base your business in, you need to decide what type of self storage business you want to open. It might surprise you to hear that there are dozens of types of storage businesses to choose from, including climate controlled storage, portable/mobile storage, vehicle storage, student storage, military storage, boat storage, business storage, 24 hour storage and more. But most of these fall into one of three simple categories: indoor storage, outdoor storage and drive-up storage. At this step, your investment size comes back into play.

What €56K–€110K will buy

If you have between €56K and €110K to invest, outdoor storage or drive-up storage are probably your best options. Both involve buying or leasing some land.

With outdoor storage, you provide a plot where goods are stored unsheltered or semi-sheltered (perhaps with a canopy covering overhead but no walls). A private parking lot is a familiar example of outdoor storage, where cars or large camper vans are stored.

With drive-up storage, on the other hand, you either fill your land with storage containers (usually shipping containers) or rows of units with rollup doors like on your home’s garage. Customers park their vehicles in front of their unit to load and unload, and they store their belongings within these—fully covered and better protected from the elements, their fellow storers using your facility, or passersby. What’s great about the containers approach is you can buy them as you grow. You can limit your risk by buying a few and seeing how long they take to rent out. And if you end up with more than you can fill, they’re easy to sell on to others and relocate.

What €110K+ will buy

If you have €110k or more, then, depending on you can afford to go the indoor route. For this type of self storage business, you buy or lease a warehouse and fit it out with indoor storage units. To keep initial costs down, you can do this fit out across multiple stages, too.

Investment inflators

There are a few variables worth mentioning that will push up your initial investment:

Buying instead of leasing—Obviously buying land or a warehouse will cost you more upfront than leasing will.

Extent of construction and repairs—The more work needed, the more money you’ll need. For example, outdoor sites may require you to tarmac the ground for cars and build a high, quality fence and gate for security. Indoor sites might require a mezzanine floor or a new roof.

To help you fine tune your numbers, try our free self storage financial modeller to work out the initial and maximum funding you’ll need for your self storage business in years one through four.

4. Find your premises

When it comes to visibility, footfall, demand, ease of access, your precise property location matters. So when you’ve narrowed down your location(s), start shopping for premises:

Check out every real estate website there is.

Drive around the towns or cities.

Pay attention to where the outdoor advertising billboards are located.

Meet with realtors and let them know what you’re looking for.

It’s impossible to get the perfect site, but look out for (and perhaps score each site against) benefits such as:

Lots of passing traffic with a building visible from the road

Lots of nearby houses and businesses

Ideally new home building going on nearby

Not too much competition in the area

The ability to rent or buy land or a warehouse at prices that work

Finding all of the above is almost impossible, so simply try your best to get a good combination of each, but don’t rule a site out if it’s missing one or more because it could still work.

This is the fun part of the process, but it’s also the bit where a lot of people give up … because finding suitable sites isn’t easy. It takes time, hard work, and luck!

5. Select an operational model

The final step of how to start a self storage business is deciding how you’ll operate. In other words, what way are you going to run this business?

Staffed, semi-manned, or unmanned?

On premise or remotely managed?

Success is possible with any model, if you’re willing to invest the necessary time, money, and manpower in the business. And of course there are perks, drawbacks, and special considerations for each approach—from flexibility, customer experience and company culture to job satisfaction, sales processes, technology costs, and site security.

6. Research the red tape

If you’ve run businesses in the past, you will already be familiar with the local laws and regulations that will impact your build and operations. If not, make sure to carefully familiarise yourself with the following in your location, as failure to comply can result in unwanted fines and penalties:

Planning permission

Legally permitted opening hours for your location

Building control requirements

Fire safety requirements

Self storage insurance

Can Stora help you?

If you're looking to take the plunge into the wonderful world of self storage, discover if Stora would be a good fit for your business.

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Useful links

Check out some of our other helpful resources for those new to self storage.

The Self Storage Academy Explore our wide-ranging guides and resources. The Self Storage Growth Guide The ultimate guide to growing your self storage business.

Self Storage Brand Marketplace Still need a logo? Check out our ready-to-go brands.

Self Storage Investment Calculator Quickly see what you can earn from investing in self storage.

Stora is self storage sales and management software for modern operators who want to run their businesses with as little admin and as much profit as possible. Our platform offers automated web sales, facility management + marketing all in one.

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Self Storage Business Plan

Many people tend to want to find a place where they can store anything, may it be cold food items, grain, or even household items they may not have space to store at home. Even when it means that the production or the work they do can be stored somewhere else, they will find a way for that. It goes without saying to be able to do this as a form of business venture, you have to at least be prepared for anything. As they will always say it is best to have all your plans from A to Z. It is no secret that having a place to store the things you want and need is quite helpful as well. But before you are going to do that, do you have a business plan to back up the reason for having a self-storage business? You know you need one. So here are examples you can download for such use. 

8+ Self-Storage Business Plan Examples

1. free self-storage business plan template.

• Google Docs
• Apple Pages

2. Self-Storage Business Marketing Plan Template

3. Cold-Chain Self Storage Business Plan

Size: 332 KB

4. Editable Self-Storage Business Planning

Size: 235 KB

5. Portable Self-Storage Business Plan

Size: 76 KB

6. Sample Self-Storage Business Plan

Size: 854 KB

7. Self Cold Storage Business Plan

Size: 527 KB

8. Self-Storage Business operation plan

9. Self-Storage Facility Development Business Plan

Size: 11 MB

What Is a Self-Storage Business Plan?

We know that a business plan is a helpful tool used wherein a summary of your strategies is going to be written. A self-storage business plan is a kind of business plan that shows the strategic, comprehensive, and simplest ways to write down what you want to happen for your self-storage business. A management plan. The contents of your business plan will show you the big picture of how your business will grow in the future or at a specific time. In addition to that, a self-storage business plan also helps you write down your goals, objectives, and strategies and how you are going to achieve them. Milestones are also written in order to see how far you have achieved. For a self-storage business owner, a self-storage business plan is a tool they need in order to attain this goal.

How to Construct a Self-Storage Business Plan

Making a self-storage business plan is useful. You may already have heard of that reason before, but it is true. Working on any kind of business plan for your business is useful. Now, you may also already have an idea set in mind for making that self-storage business plan of yours. But it won’t hurt to take a look at these other guidelines to set it up.

1. Draft and Outline Your Self Storage Business Plan

Making a draft and outlining your business plan will be a great help for you. It is also going to be easier if you do this step first before going through the final output. Drafting out your business plan does not mean you are wasting time on it, it simply means that you are meticulous with what you want to happen. To make it even better while you draft it out, use the SMART method for your business plan.

2. List the Tools and the Strategies

Make a checklist or list down the tools and the strategies you are going to be doing for your self-storage business. Making a checklist for the tools is going to be easier for you to list down the necessary things you may need and the right tools to make it work as well. As for the strategies, your strategies must be doable and can help you make your storage business a success. This is why when you think about your strategies, think about how they can make your business a success.

3. Define Your Goals and Objectives

Define the goals and objectives in your business plan. When in doubt, remember the SMART method for your business plan. The goal of your business plan has to be what your self-storage is about. The same goes for your objectives. It should be doable, possible, and well-rounded objectives.

4. Set Up Milestones for Your Business Plan

Milestones for your business plan help maintain where you are in the business plan. It also helps you in a way that gives you a bigger picture of how well the business plan is going. In addition to that, the milestone is also going to be the stepping stone for making your self-storage business flourish.

What is a self-storage business plan?

A self-storage business plan is a kind of business plan that provides an outline of a strategic tool to make your business flourish. It is a roadmap to do your self-storage business without having to go through a lot of risks that go with the job.

Why is it always important to have a business plan?

The reason why a lot of business owners use a business plan is to help them avoid risks that go with the business. It also helps them by giving them a guide to what works and what does not. Without a business plan, most businesses may not be as successful as those with business plans.

What should not be in a self-storage business plan?

What should not be in a self-storage business plan is strategies that are too impossible to do. Strategies should be doable. These strategies help you with your business.

A self-storage business is like any other kind of business. It will need a business plan that will help it flourish. When you have no idea as to how to start one, you can always outline and draft. Define your goals and objectives; you must know what you want to expect in your business plan and go from there.

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Self Storage Business Plan

Written by Elma Steven | Updated on April, 2024

How to Write a Self Storage Business Plan?

Self Storage Business Plan is an outline of your overall Self Storage business. The business plan includes a 5 year projection, marketing plan, industry analysis, organizational overview, operational overview and finally the executive summary. Remember to write your executive summary at the end as it is considered as a snapshot of the overall business plan. The creation of a plan requires careful consideration of various factors that might impact the business’s success.

You can spend 3 to 4 weeks trying to write your own Business Plan by browsing through free online resources or hire a professional writer for $2,000. There is a better way to do this-  Download our Self Storage Business Plan to write a plan in just 2 days .

This depends on your expected revenue and cost. Also, we need to consider the startup cost. Find out the answer- Is Self Storage Profitable?

Executive Summary

We at   SecureSpace provide a wide range of facilities and services to meet all of your storage requirements. Florida City is the entrance to the Florida Keys and is a great place to start various experiences. To assist you in entirely using your outdoor chances, we provide a variety of storage alternatives. Key Largo, Ocean Reef, and other nearby areas may use us as a handy storage alternative if they are in the Florida Keys region. There is no question that self-storage facilities are a considerable aid to both homes and enterprises, whether for commercial purposes or remodeling, moving out, storing a loved one’s things, or other reasons.

Problem Summary: The demand for self-storage facilities has been increasing rapidly in recent years, driven by factors such as urbanization, population growth, downsizing, and the rise of e-commerce. However, there is a lack of modern and secure self-storage facilities that provide customers with a hassle-free experience. Many of the existing facilities are outdated, unappealing, and fail to meet the expectations of today’s customers, who demand easy access, climate-controlled units, and advanced security features.

Solution Summary: SecureSpace is a state-of-the-art self-storage facility that aims to fill the gap in the market by providing modern, secure, and customer-focused storage solutions. We offer a wide range of unit sizes, including climate-controlled units, and our facility is equipped with advanced security features such as 24/7 surveillance, access control systems, and individual unit alarms. Our customers will have the option to access their units at any time of the day or night, and our friendly and knowledgeable staff will be on hand to assist them with any queries or concerns.

Industry Overview: The self-storage industry has experienced steady growth over the past decade, with a compound annual growth rate (CAGR) of 7.6% between 2016 and 2021. In 2021, the industry generated $44.7 billion in revenue, and there were approximately 59,500 self-storage facilities in the US. The industry is expected to continue growing at a CAGR of 6.6% between 2021 and 2026, driven by factors such as urbanization, population growth, and the increasing demand for e-commerce. However, the industry is also becoming more competitive, with many new players entering the market and existing players upgrading their facilities to meet the changing demands of customers. Check out this guide on  how to write an executive summary?  If you don’t have the time to write on then you can use this  custom Executive Summary Writer  to save Hrs. of your precious time.

Financial Overview:

Source: ibisworld

Business Description

Business Name: SecureSpace 

Founder: Jacob Harrison

Management Team: 

Legal Structure: LLC

Location: 1234 Main St, Bellevue, WA 98004

Mission: “Our mission is to provide a modern and secure self-storage facility with a focus on exceptional customer service. We aim to ensure that our clients’ possessions are kept safe and secure while offering convenience, flexibility, and affordability.”

Vision: “Our vision is to become the leading self-storage provider in the area, known for our state-of-the-art facilities, exceptional customer service, and commitment to meeting the evolving needs of our clients.”

Goals: 

• Achieving and maintaining high occupancy rates
• Providing exceptional customer service and ensuring customer satisfaction
• Continuously upgrading our facilities to meet the changing demands of our clients
• Expanding our reach through targeted marketing efforts
• Establishing SecureSpace as a trusted and reliable provider of self-storage solutions

Products: 

Our primary product at SecureSpace is secure and convenient self-storage units of various sizes, including climate-controlled units. Our facilities are equipped with advanced security features such as 24/7 surveillance, access control systems, and individual unit alarms to ensure the safety of our clients’ possessions. In addition, we offer flexible lease options, including short-term and long-term leases, to accommodate the varying needs of our clients. We also provide exceptional customer service, with knowledgeable and friendly staff on hand to assist our clients with any queries or concerns.

Financial Overview

Fund Usage Plan

Click here for Updated Chart

Source: harriswilliams

Key Metrics

Business Model 

Check out  100 samples of business model canvas .

SWOT ANALYSI S

it offers a clear lens into a company’s strengths, weaknesses, opportunities, and threats. This self-awareness enables effective resource allocation and strategic positioning against competitors. Businesses can mitigate risks, make informed decisions, and set realistic goals. In addition, presenting a SWOT analysis in a business plan communicates to stakeholders that the company possesses a deep understanding of its market environment. In essence, SWOT ensures a business’s strategy is grounded in reality enhancing its chances of success. Check out the  100 SWOT samples  which will give you a better idea on SWOT writing process.

Organizational Overview

Jacob Harrison

Founder/ CEO/ Jacob Harrison

Hi there! My name is Jacob Harrison and I am the founder and CEO of SecureSpace, a modern and secure self-storage facility with a focus on exceptional customer service. I have over 10 years of experience in the real estate industry, with a specific focus on property management and development.

Prior to founding SecureSpace, I worked as a property manager for several large commercial real estate firms, where I gained valuable experience in facility management, tenant relations, and leasing. I recognized a need for a modern, secure, and customer-focused self-storage solution, which led me to start SecureSpace.

I am a driven and innovative entrepreneur who is dedicated to providing the best possible self-storage experience for my clients. I am passionate about meeting the evolving needs of my clients and staying ahead of industry trends to ensure SecureSpace remains a leader in the field.

I hold a Bachelor’s degree in Business Administration from the University of California, Los Angeles (UCLA) and a Master’s degree in Real Estate Development from the University of Southern California (USC). I am a member of several industry organizations and am committed to staying up-to-date on the latest developments in the real estate and self-storage industries.

Management & Operations:

Marketing & Sales:

Finance & Accounting:

Industry Analysis

Industry problems .

• Limited availability of modern and secure self-storage facilities in certain geographic areas
• Perceived lack of customer service and support in some self-storage facilities
• Increasing competition from established and new players in the industry
• Vulnerability to economic downturns affecting demand for self-storage solutions
• Limited flexibility in lease options and contract terms

Industry Opportunities

• Increasing demand for self-storage solutions as the population grows and urbanization continues
• Ability to expand the business by acquiring additional properties or franchises
• Offering additional services such as moving or packing supplies to increase revenue
• Developing strategic partnerships with other businesses to increase exposure and customer base
• Incorporating new technologies such as online booking and smart security systems to improve efficiency and security

Market Segmentation

• Demographic Segmentation:  
• Homeowners in need of storage solutions during home renovations or downsizing
• College students in need of temporary storage during breaks
• Individuals and families in the process of moving or relocating
• Businesses in need of storage space for inventory or equipment
• Travelers in need of secure storage solutions for personal belongings
• Psychographic Segmentation:
• Busy professionals who value convenience and ease of use
• Environmentalists who prefer eco-friendly storage solutions
• Minimalists who value simplicity and minimalism in their lives
• Tech-savvy individuals who prefer the latest technology in their storage solutions
• Safety-conscious individuals who prioritize the security of their possessions
• Behavioral Segmentation:  
• Short-term renters who require temporary storage solutions
• Long-term renters who require extended storage solutions
• Frequent renters who require regular storage solutions
• Large item renters who require storage solutions for bulky items such as vehicles or boats
• Budget-conscious renters who prioritize affordability in their storage solutions

Market Size

Marketing Plan

Marketing budget.

Marketing Objectives

• Boost brand awareness: Increase recognition and recall by 20% within 12 months using targeted campaigns and social media.
• Grow market share: Expand market share by 10% in two years with innovative products and new segments.
• Retain customers: Raise repeat customer rate by 15% within a year through personalization, loyalty programs, and customer support.
• Enhance online presence: Increase website traffic by 25% and social media followers by 30% in 18 months using engaging content and SEO.
• Increase sales revenue: Achieve a 20% revenue growth in the next financial year with promotional strategies and product expansion.
• Strengthen brand loyalty: Improve net promoter score (NPS) by 10 points in 12 months by focusing on customer satisfaction and loyalty benefits.
• Promote sustainability: Increase eco-friendly products by 30% in two years to appeal to environmentally conscious consumers.
• Improve customer engagement: Boost email open rates by 20% and click-through rates by 15% in a year with targeted email campaigns.
• Enter new markets: Launch products in two international markets within 24 months using market research and strategic partnerships.
• Enhance product positioning: Raise top-of-mind awareness as a leader in comfort and innovation within 18 months through marketing and product innovation.

Go-to-Market (GTM) Strategy

• Social Media Marketing:

a. Create and share engaging content that reflects the brand’s values and showcases products.

b. Collaborate with influencers who resonate with your target audience to increase reach and brand awareness.

c. Utilize paid advertising campaigns on platforms like Instagram, Facebook, and Pinterest to target specific customer segments.

d. Engage with followers, respond to comments, and address customer inquiries to strengthen customer relationships and loyalty.

• Content Marketing:

a. Develop a blog on the brand’s website featuring educational and informative content about undergarments, trends, and styling tips.

b. Leverage video content on platforms like YouTube to showcase products, share tutorials, and engage with customers.

c. Create infographics or visually appealing content to share on social media platforms and drive website traffic.

• Email Marketing:

a. Build and segment email lists based on customer behavior, preferences, and demographics.

b. Send personalized email campaigns with targeted offers, promotions, and relevant content.

c. Utilize automation tools to nurture leads and encourage repeat purchases.

• Public Relations:

a. Develop press releases and media kits to promote product launches, collaborations, or brand milestones.

b. Cultivate relationships with industry journalists and bloggers to secure coverage in relevant publications.

c. Participate in industry events, trade shows, and fashion weeks to increase brand visibility and networking opportunities.

• Search Engine Marketing (SEM) and Search Engine Optimization (SEO):

a. Optimize website content and structure to improve organic search ranking on search engines like Google.

b. Utilize keyword research and on-page optimization to target relevant search queries.

c. Implement paid search campaigns (Google Ads) to capture high-intent search traffic and drive conversions.

• Affiliate and Influencer Marketing:

a. Develop an affiliate program to incentivize bloggers, influencers, and content creators to promote the brand and products in exchange for a commission on sales.

b. Collaborate with influencers on content creation, product reviews, and giveaways to generate buzz and increase brand exposure.

• Offline Advertising and Promotions:

a. Place ads in print magazines, newspapers, or on billboards that cater to your target audience.

b. Host in-store events, pop-up shops, or fashion shows to create memorable experiences and connect with customers.

Budget allocation across channels: 

Income Statement

Cash Flow Statement

Balance Sheet

Revenue Summary

Cost Summary

Non- Current Asset Schedule

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Storage Unit Size Guide: Choosing the Ideal Space for Your Belongings

If you’re new to self storage, determining what size storage unit you need can feel daunting. From personal items to household furniture, this guide to understanding storage unit sizes will help you find the perfect fit for your belongings. Let’s dive in!

Understanding Storage Unit Sizes First-Time Renters

The basics of storage unit sizes.

If you’ve never rented storage before, you’re probably scratching your head about the right size . You don’t want to oversize for the number of items you have, but you definitely want enough space to fit all your things comfortably. No worries—we’re here to simplify it for you. Storage units are typically categorized into small, medium, and large sizes. Units range from the size of a small walk-in closet to that of a one-car garage or larger.

Common Storage Unit Dimensions Explained

• Small Units (5×5, 5×10): These units are comparable to small walk-in closets.
• Medium Units (10×10, 10×15): Think of these as the size of a one-bedroom apartment or a compact studio.
• Large Units (10×20, 10×30): These can be as spacious as a two-bedroom apartment or a one-car garage.

Deciding How Much Space You Need

How do I calculate how much storage space I need? Start by assessing your inventory. Create a list of everything you plan to store, and categorize items by size—small, medium, and large. Factor in the size and number of boxes and tubs as well. This will give you a clearer picture of your storage needs.

Small Units: Ideal for Personal Items and Boxes

Overview of small storage units (5×5, 5×10).

Small storage units are perfect for individuals needing to store a few boxes or seasonal items. A 5×5 unit is roughly the size of a small walk-in closet, while a 5×10 unit offers a bit more room, similar to a large closet.

Perfect Fit for Seasonal Items, Clothes, and Small Furniture

Have holiday decorations, off-season clothes, or a few small furniture pieces cluttering your home? A small storage unit might be your ideal solution.

Visualizing What Fits in a Small Unit

Imagine stacking around 8-10 boxes or placing a couple of small furniture items like chairs or a dresser. Visual aids like our Find Your Fit Guide can be incredibly helpful here.

Medium Units: The Best Choice for Multiple Rooms

Features of medium storage units (10×10, 10×15).

Now let’s talk about medium units. A 10×10 storage unit is about the size of a one-bedroom apartment, making it perfect for storing the contents of several rooms.

Perfect Fit for: Apartment Dwellers and  Downsizers

If you’re moving from a two-bedroom apartment or simply need extra room for downsizing, a medium unit will offer adequate space for your belongings.

Examples of Items for Medium Units: Furniture Sets and Appliances

Think bedroom sets, living room furniture, and larger appliances. This unit size can comfortably hold items like sofas, dining tables, and mattresses.

Large Units: Solving Storage for Entire Households

Understanding large storage units (10×20, 10×30).

For those with more extensive storage needs, large units come into play. A 10×20 unit can be visualized as a one-car garage, while a 10’x30’ unit offers even more space.

Perfect Fit for: Families, Home Renovations, and Major Life Events

Planning a move, undergoing home renovations, or dealing with major life changes? A large storage unit can store the contents of an entire household, or serving as a temporary or long-term storage solution for a relocation or move

Organizing a Large Unit: Tips for Maximum Efficiency

Utilize shelving, stack boxes strategically, and create walkways to access your items easily. Don’t forget to label boxes and tubs. A good rule of thumb is to keep items you use frequently at the front of your unit. Creating a walking path in your storage unit is essential for accessing items at the back.

Specialized Units: Climate-Controlled and Unique Needs

The need for climate-controlled units: what to consider.

Climate-controlled units are essential for storing delicate items like electronics, artwork, and wine. These units maintain a consistent temperature, protecting your valuables from fluctuating weather conditions.

Specialty Units for Vehicles, Wine, and Delicate Items

Need to store a vehicle, or perhaps a beloved wine collection? Specialized units cater to these unique needs, ensuring your possessions remain in top condition.

Making the Decision: Cost vs. Benefits of Climate-Control

While climate-controlled units come at a premium, the added protection they offer can be invaluable. If many of your items are affected negatively by temperature fluctuations, the additional cost of a climate-controlled unit may help make your decision for you.

Choosing Your Perfect Storage Unit: A Step-by-Step Guide

Assessing your storage needs: practical tips.

Start by listing all the items you wish to store and categorizing them by size. This will help you visualize the space required and narrow down your choices.

Calculating Space Requirements: Tools and Resources

Visual aids and online calculators can assist with how much space you’ll need for your unit. CubeSmart’s helpful customer service representatives and store managers can also assist with helping you pick the right unit size.

Location, Security, and Access: What Else to Consider?

Consider the location of the storage facility, the security measures in place, and your access needs. Remote access, 24/7 video recording, and flexible online bill pay options are things to consider that make your experience easier.

CubeSmart can Help you Find the Best Fit

If you’re new to self storage, picking the right unit is one of the first steps on your journey. CubeSmart makes it easy with friendly storage experts available by phone, online, or in person to help you make your decision. But first, check out our size guides to get started. With online bill pay, remote access, and moving supplies available at most locations, we’re ready to help with all of your storage needs. Visit CubeSmart.com to find the perfect storage unit at a location near you.

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About CubeSmart

With storage locations nationwide, you’re sure to find a CubeSmart location in your area. We offer storage, service, and solutions sure to exceed your expectations. Call us at 1-844-248-3104 for more information on our storage services or visit any one of our convenient locations across the United States.

©2023 CubeSmart . All rights reserved.

1400 Memorex Drive - Santa Clara, CA 95050

PH: 408-492-1960

PH:408-492-1960

Reserve Your Storage Space

Interested in reserving storage space in Santa Clara, California? El Camino Self Storage has a variety of self storage unit sizes available. You can reserve your storage space today (using the form below) or if you would like to talk to one of our Self Storage specialist over the phone. Do not hesitate to give EL Camino Self Storage a call at 408-492-1960 (we are always happy to assist).

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