When something works, why change it? In the world of self storage facilities, there is an obvious formula that works. Consider these reasons as to why you should avoid trying to “fix” something that is not broken.
Stick with the basic
You will find that most people have made the biggest amount of money have followed the roadmap laid out by other successful owners and have focused on the basic need for storage space. Prior to the Great Recession in 2008, some owners tried to get fancy and cater to those looking for “luxury” storage. Honestly, all someone needs to store their belongings is a basic 10X10 space with a light and a roll up door.
Avoid building in locations that have difficult access or visibility
Difficult road access and poor visibility are going to do nothing for you business! It doesn’t matter how clever you are at marketing, some locations are just not suitable.
If it’s failed once, why would you be different?
Buying a self storage facility that is already in bankruptcy is another
pioneering” concept that many have tried. While you no doubt could get a good deal on this kind of facility, it has obviously failed for a reason. Unless the property was failing due to poor management or from carrying a heavy debt load, chances are it is probably just a lousy market. That is something that can’t be fixed by an owner.
Trying to sneak it in without a permit
We have seen some facilities that are just completely illegal. How so? Usually it’s a commercial building that has been subdivided into individual units and rented out. They have no operating permit for this! If you don’t have a permit, you have no ability to gain financing or a future buyer. Don’t be a “pioneer” of illegal activity.
It’s always a great feeling when you are able to accomplish something that is new. Don’t take such risks, though, when you are entering the realm of self storage. There is a reason why this business thrives, you just have to follow the roadmap to do it. Always fun and exciting? No. Always profitable? Yes!
