Want to start a storage business but don’t know how? You have come to the right place. In this post, we sort of boil down the humongous task of opening a self-storage business and mention the essentials that you need to start a self-storage unit business in the US. This is just the starting point. Each of the steps mentioned has a lot to unpack. You can use this list as a sort of signpost and find some of the best self-storage units. Selfstorageunits.io provides you with the best self storage units near you.
Understand the Expenses and Plan Your Business
This is the most important part of starting a self-storage unit business. It is not an easy task. A lot of people give up in the planning phase itself. The first thing that you need to think about is real estate. Where will your storage facility be? You need to convert the entire piece of land to support storage units. In addition to that, you will need to install security measures like fences, security gates, digital surveillance, lights etc.
Depending on your location the real estate price will vary. Next, you have to factor in the construction cost as well. Depending on the types of units you are going to build the prices will vary. Smaller 10 X 10 units are quite popular but many good self-storage providers also provide units to store RVs, trailers, boats etc. You may also need to add a few climate-controlled units for the storage of documents.
A general estimate of the cost can be $25 to $45 per square foot for constructing a single storage facility. For multi-story facilities, the cost can shoot up to $60 to $70. In general, there is an initial investment of $3 to $4 million to get the entire facility up and running.
Take Care of Legal Stuff
Next, you have to take care of the legal stuff. Love it or hate it, there is a lot of paperwork involved in starting a business. To ensure that your business is completely legit and follows all the guidelines you have to take some time to sort out all the paperwork. This will save you a lot of trouble down the line. Register your business as a legal entity and for taxes. Forming a legal entity means forming an LLC or corporation around your business. There is a fee involved. This will save you from being personally responsible if your business is sued.
Depending on whether you create an LLC or a corporation you have to register the business for taxes. Next, ensure that you get all the required permits and licenses. There might be local licenses and permits as well. All this is to ensure that your business is up to code. It saves a lot of trouble down the line. In addition to this, get your business insured. This is very important as you are protected from various losses depending on the insurance coverage.
Set Up Bank Accounts and Accounting For Your Business
Do not skip this step. You will need to separate your personal assets from your business assets. Apply for a business bank account. Keep everything separate and all the transactions related to the business should take place via that account. Self-storage businesses can have daily income and expenses and things can often blow up. Set up accounting for your business to track down every transaction. This will help a lot in understanding how well your business is performing or if you are spending resources on something that you shouldn’t. Also, this will help while filing for taxes. So, keeping a detailed day-to-day account of all the business transactions can make your job easier.
Set Up Contacts – Email and Phone
Your customers and other parties involved might need to contact you for queries. This is why you need to set up a way for people to contact your business. You can set up a phone for your business and create a business email id. Again, try to keep it separate from your personal ones. A separate contact can make your business seem more legitimate. Also, you don’t want to get calls on your personal number regarding your business when you just want to take a day off.
Build a Website
Websites are one of the most important tools of business promotion. Today, a lot of people search for businesses online. If someone is looking for storage units near your location then they will likely Google it. If you have a website then your business will show up giving your brand more exposure and visibility. Set up secure online transactions so that people can pay online if they want to. A lot of people often opt for hassle-free online payments. So, having that may add more credibility to your business.
So, these were some of the basic tips that you have to keep in mind if you want to start a self-storage business in the US. Use social media platforms to promote your business. Google or Facebook ads can do the trick. Besides this, we also suggest doing more research on the expenses and legalities involved. We hope you found some useful info from our post. We wish for you to create a successful business.