Self-Storage Startups: How to Pick the Right Location for Your Facility

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Self-Storage Startups
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The self-storage industry has witnessed a boom in the US, with the rise in real estate prices and limited inventories. Both homeowners and business owners prefer using these facilities to adopt minimalism and reduce their real estate investment. Relocation is another factor spurring the growth of the industry because it facilitates safe and easy storage of belongings while people move to other locations.

According to statistics, the American self-storage market will cross the $43.34 billion mark in 2023 and reach $48.73 billion by 2028. The impressive growth rate makes it a lucrative opportunity for entrepreneurs. However, expect the competition to be stiff because the country already has an estimated 51,206 storage facilities in service.

Aspiring entrepreneurs can still make it big because the market has room for more businesses. Before getting your business on track, you must have a proper plan. It should begin with choosing the right location for your facility. Location determines the demand and growth potential of your business in a competitive landscape.

We will share some actionable insights for new self-storage providers to choose the right location for their facilities.

Conduct a Demographic Analysis

Defining your target audience is the key to success in all verticals, and self-storage is no exception. Demographic research is a key aspect of a self-storage feasibility study when it comes to assessing potential locations. It includes identifying the population density, lifestyle, and income levels in the area. A location with a growing population and a high demand for storage solutions sets you up for success.

According to Self Storage 101, a market feasibility survey eliminates guesswork from your business plan and makes it more data-driven. By understanding your target audience better, you can determine the area where they are more likely to seek services. For example, startup owners targeting commercial clients should look for a location in or near a business hub. 

Check the Competitor Landscape

The US Small Business Administration notes that competitive analysis can help you make your business unique. You can use this knowledge to gain a competitive advantage for your startup. Analyze the existing self-storage facilities in the location you plan to pick for your facility. Are there too many of them? Look for another option where you have a better chance of getting leads.

If you still want to start in the same location, check the offerings, pricing strategies, and customer reviews of the potential competition. Some competition is healthy because it pushes you to go above and beyond with your services. Conversely, startups should avoid oversaturated markets and choose places with a demand-supply gap. 

Ensure Visibility and Accessibility

Self-storage businesses are like retail stores, where visibility and accessibility define success. You cannot expect people to know about your startup unless they see your facility. Moreover, it should be easily accessible to enable customers to reach your facility and pick up and drop off their belongings without hassles.

A location near major roads and highways is a good one because it ensures both visibility and accessibility. You can do your bit to make it more visible by setting up prominent banners and signboards. Also, establish a robust online presence with a business profile and map to help people reach the location easily once you set up your facility. 

Consider Zoning Regulations and Permits

According to Inside Self Storage, these facilities are overbuilt in many markets. Not surprisingly, business owners face several zoning regulations and permits specific to the jurisdiction of their premises. As a startup entrepreneur, you must consider them before finalizing a location for your facility. The last thing you want is to go through a complex maze of regulations to get a valid permit.

Different areas may have specific zoning requirements, and obtaining the proper permits can be an expensive and time-consuming process. If you are starting, checking these factors can save you a lot of time, money, and stress in the long run. It also keeps the operation of your business on track by preventing legal complications.

Prioritize Security

When customers leave their belongings at your facility, they expect you to go the extra mile with security. It applies to personal stuff with sentimental value and business assets with financial value. Customers may skip your facility if they see any risks to their items due to an unsafe location or a lack of robust security measures.

You can avoid losing customers by picking a secure location and adding extra layers of safety with steps like optimal lighting, access controls, and surveillance systems. Also, look for locations with proximity to law enforcement and emergency services. These measures show a commitment to security and establish trust for your business.

Summing up, the right location is one of the key determinants of the success of a self-storage startup. You must choose it wisely, investing time and effort in thorough research. Consulting industry experts is an even better idea for entrepreneurs just stepping into the industry and seeking long-term success in the growing market.

Must Read: 4 Different Uses of a Storage Unit