August 16, 2019
Interested in learning about the initial investment of owning a storage units business. The reasons for being interested in such an enterprise are easy to understand. A storage unit business is a relatively low-stress venture that isn’t sunk by recessions in the economy, and it is highly scalable, enabling an entrepreneur to continue to grow. Here is some further reading on The Pros and Cons of Starting a Local Storage Unit Business.
People are always on the move, and they need safe storage for their belongings. You understand the demand, but how do you get started?
Though there are a number of considerations and elements of planning involved in entering the storage unit industry, for now, we’ll focus on the initial investment — because without the proper funding, one need not spend time on the rest of the planning. The good news is that it’s pretty affordable to start a storage unit business.
And there are two key types of businesses in the storage industry: fixed self-storage and portable storage. You’ll need to key in on which type you want to operate, because the options sometimes differ from one to the other.
The Initial Investment for a Traditional Storage Business
If you are planning to open a traditional storage facility, where customers bring their belongings to store in fixed-location storage units, here is a good education on doing a cashflow analysis. The tricky foray into calculations is likely to fall on the operator to get right, because traditional storage facilities, by and large, are independent operations. Relatively few franchise brands, with established systems, plans, and guidance, exist in this realm.
Real estate is going to be one of the larger costs involved. According to ProfitableVenture.com, entrepreneurs likely will spend around $1.25 per square foot of property — though that obviously depends on the location.
And then comes the cost of construction and development of the facility. How much this costs can vary wildly, and is dependent on the allowable percentage of the site the operator may develop under applicable ordinances — which themselves also will dictate, ultimately, how much net-leasable coverage is allowed on the site.
Many other expenses come under the umbrella of the initial investment. For a deep dive into the calculations of mapping out financial requirements for different projected models of traditional storage facilities, dig in here.
Entry Investment for a Portable Storage Units Business
The other side of the storage unit industry is portable storage. Unlike a fixed storage unit business, a moving solutions or portable storage operation makes things easier for the customer, by delivering empty containers to the customer’s location, allowing them to pack their belongings. Then, the operator moves the containers by truck, either cross-country to another location for the customer, or to its own warehouse for storage until it’s time for the next move.
Options Within Portable Storage
The moving solutions or portable storage industry features more franchise brands, making it perhaps a more attractive option for those entrepreneurs looking to take advantage of hard-won industry wisdom and systematic business launch plans. Especially for potential franchise partners who hope to start such a business on the side while continuing to work another career, a franchise portable storage unit business is appealing.
And for the same reasons that operating an already established franchise business model is typically more efficient than an independent startup, the initial investment is often lower. The numbers have been crunched again and again by franchise leadership, who have put in the time and sweat to get it right.
An example of how the initial investment is regimented and broken down, for an entrepreneur who becomes a franchise partner, is a UNITS franchise. The entry level typically is somewhere from $460,022 to $1,008,322. This encompasses the $55,000 franchise fee, which grants exclusivity to a territory with at least 300,000 population. It also gives the operator 90 containers as well as the use of the UNITS UPS Delivery System.
Finally, still using the UNITS example, the up-front investment also gets the franchise partner a secure warehouse for storage of containers.
Beyond the Initial Investment
Now, take a breath and realize that we’ve only barely touched on the initial investment itself here. The return on that investment is another matter, and in the storage unit business, the outlook is good — especially with ongoing support by an established franchise company.
Don’t forget, the process and time to get a fixed storage business off the ground is significantly longer than portable storage. It can take years to get a fixed storage business up and running when it comes to site development, permitting/zoning, construction and more. Conversely, a portable business can be operational within months.
Founded by Michael McAlhany in 2004, the mission of UNITS Moving and Portable Storage is to provide personal customer service while supplying the most innovative equipment in order to eliminate frustrations associated with moving and storage space issues.
UNITS Moving and Portable Storage currently has 24 franchised and three corporate territories across the United States. With a presence in more than 40 markets, and growing, the brand is looking to expand with the right people in the right markets.
For more information on how to take advantage of this opportunity, or simply to learn more about the moving and portable storage industry, visit https://www.unitsfranchisegroup.com/ and fill out the inquiry form. We will reach out to you to talk more about your interest in our brand, and how UNITS Moving and Portable Storage can help you reach your personal and financial goals.