From Self-Storage To Self-Pity: Major Mistakes Stopping Your Self-Storage Startup From Finding Success
If you’re keen to start a new business, then self-storage can seem like a fantastic fast-fire option. After all, self-storage units have been cropping up all over the place for a fair few years now, and the passive nature of this money-making solution holds undeniable appeal. Without needing to develop a product, you can simply invest in land, get set up, and let self-serve solutions broadly take care of themselves. Or, at least, that’s what you hoped.
But, if the reality is more like endless maintenance, costly losses, and a general lack of uptake, then this business option probably won’t feel quite as easy as you imagined. Why are things going so spectacularly wrong, and how can you turn them around for good?
In this article, we’ll consider the worst mistakes you could make in a new self-storage business, and how you can overcome them to flourish at last.
# 1- A ‘Site’ For Sore Eyes
In theory, you only need a plot of land to get started with self-storage, but there’s inevitably more to success here. For instance, countless business owners are surprised to discover that some zoning laws forbid or severely restrict the operation of self-storage setups, especially in suburban locations. Setting up in these areas could see you facing fines or other damaging limitations.
You may also find yourself facing location problems if you jump into site investment before doing your research. For instance, many self-storage companies fail because they’ve simply assumed that an audience will exist in their chosen location, only to be disappointed.
All of this points to the fact that a lack of research could hold your company back. And, putting the work in is the only way to rectify that. Obviously, this is best if you haven’t yet chosen a site, as you’ll be able to take a step back and consider vitals like demand, legality, and local competition. But, if you have already chosen a site that’s not selling, research can still help you to locate niche priorities, such as the need for vehicle storage vs business spaces, which could lead to more bookings down the line.
# 2 - A Poor Product All Round
You don’t need a bright idea, a product development period, and the manufacturing to bring it all to life with a self-storage business. You simply need the right location and the storage units to fill it. But that’s not to say you can’t still slip up in terms of the ‘product’ you’re offering.
Ongoing negative reviews or customer issues certainly suggest that you’re doing something wrong. Instead of gradually losing your customer base, you’ll want to work out what that is, and how you can change it.
TThe most likely problem is your storage units themselves. Poorly secured, uninsulated or rusting units certainly won’t wash well with a budding client base. Instead, you need to ensure the best self-storage buildings you can find, which should ideally consist of durable materials like steel, with benefits including pest and weather resistance to keep all stored belongings safe. It’s also essential to ensure the security of your facility itself, which should have daily monitoring, 24/7 CCTV, and secure access systems to avoid major losses due to theft.
# 3 - Failing to Think About the Future
You may also find yourself in trouble if you don’t spare a thought for the future. For instance, if you don’t select a large enough location to begin with, or at least one with potential for expansion, then you could soon end up sending business away. You certainly won’t be able to scale your self-storage ideas with this being the case.
The key is, obviously, to always keep your eye on growth. This is most important when it comes to location, which should provide you with the opportunity to either grow your site or invest in multiple locations.
Remember that you may also want to expand into entirely new towns and territories if your business becomes successful enough. For this reason, it’s also worth avoiding limiting mistakes like a location-heavy brand name that could quickly limit your options.
# 4 - Long-Winded Rentals
You can have the best self-storage units in the world, as well as the highest class of security, and you’ll still struggle to succeed if you’re relying on long-winded, outdated rental processes. Remember that this entire business model is built for ease. Clients won’t spend hours on the phone or wait until working hours before they can book with you.
Instead, you need to ensure anytime rentals, ideally via online portals that allow clients to easily book their rental term and receive their access code, no matter what time they choose to do so. You should also have an online system set up for rental changes, which could include easy term extensions, unit size upgrades, or cancellations. And, of course, you should have accessible, real-life chat options to ensure that, even if they encounter problems, clients are satisfied with the fast fixes you have to offer.
# 5 - Self-Storage in a Void
You could perfect every point on this list, and your business will still fail your customers can't find you. Unfortunately, if this is happening right now, then it’s a sure sign that your marketing efforts aren’t enough. And a lack of marketing can very quickly lead to business failure.
But how do you market a self-storage company? Traditionally, this will have involved large signs on the side of your building, and that can still work well. But, in the modern age, you also need to take marketing online in various ways.
You’ll need a website, of course, with an easy online booking system as discussed, but further marketing efforts like social media, where you can also upload photos of your units and team, will also help to find new audiences and keep existing users up to date at all times.
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