What are the top 10 reasons to invest in a self storage business?
As we enter the year 2023, the self-storage industry is more popular than ever before. With the rise of online shopping and people moving more frequently, the need for storage solutions has never been greater. If you are considering investing in a self-storage business, here are the top 10 reasons why it is a smart move in 2023:
1. High Demand for Self-Storage
The demand for self-storage has been steadily increasing over the past decade, and it is expected to continue growing in the coming years. With more people moving and the rise of e-commerce, there is a need for secure and convenient storage options.
2. Potential for high returns
Self-storage businesses have the potential to generate high returns on investment. The demand for storage solutions is constant, and self-storage facilities can often be run with minimal staff, which can lead to strong profit margins.
3. Low startup costs
Starting a self-storage business can be relatively inexpensive compared to other businesses. You can often purchase existing facilities at a reasonable price, and there are few upfront costs associated with the operation of a self-storage facility.
4. Multiple revenue streams
Self-storage facilities can generate revenue through renting units to individuals and businesses, as well as through the sale of packing and moving supplies. This can provide a consistent stream of income.
5. Flexibility in location
These businesses can be located in a variety of locations; from urban areas to rural communities. This means you have the flexibility to choose a location that meets your needs and budget.
6. Long-term leases
Many self-storage facilities offer long-term leases, which can provide a stable source of income. These leases can also be adjusted to reflect market demand, ensuring you are maximizing your revenue potential.
7. Low overhead costs
Self-storage facilities have relatively low overhead costs compared to other businesses. They typically do not require a lot of staff, and the operating costs are minimal.
8. Potential for expansion
As demand for self-storage grows, there’s potential to expand your facility or open new locations. This can provide additional revenue streams and help your business grow.
9. Relatively recession-proof Business
Self-storage facilities are considered relatively recession-proof. Even during economic downturns, people still need to move and store their belongings, which can provide a steady stream of income for your business.
10. A Growing industry
This industry is expected to continue growing in the coming years. Investing in a self-storage business now can allow you to get in on the ground floor and benefit from this growth.
In summary, if you invest in a self storage business in 2023, then it’s not uncommon to expect high demand, high returns, low startup costs, multiple revenue streams, flexibility in location, long-term leases, low overhead costs, and expansion in this still-growing industry. It’s a smart investment that can provide a stable and profitable business for years to come.
If you’d like to learn more about investing in a self-storage business, check out the SBOA’s Storage for Rookies live webinars!