Self Storage Business

[minnesotacold]

Anybody here with experience in self storage? It sounds like a good business. I will be starting my MBA soon and I was wondering if getting a job at a self storage place with the goal of learning the business and opening my own self storage business in the near future could be a good opportunity for me. Any insight is highly appreciated.

[Grandmarnier]

Well, if you dont know anything about the business, then working there will DEFINATELY benefit you in the long run.

[Phranksizzle]

Definately learn how a business operates before you open one up. At the very least go up to somebody in an area that you wont be competeing with but has similar demographics and talk to the owner and offer to work for a very low fee or free (they will definately go for the for free part) or say you need it for credit for one of your classes.

Learn the business. Ask questions. Why does this do that, whats your target customer, etc.

-Frank

[Skipper]

Absolutely. No amount of reading or outside study can beat actual hands on experience imho. My understanding is that the self storage business can be a very good one. Get in there and learn the system. You'll see how the day to day works, what potential employees of yours will be doing, how they can possibly game the system, pitfalls and what the headaches are. Best of luck!

[minnesotacold]

I think I will try to take a PT job managing a self storage to understand this business. They have an association for the business that has a lot of publications and it seems like a pretty straightforward business. One thing that caught my attention about this business is the fact that a lot of self storage places are small and I noticed a total lack of marketing and branding. There are a lot of "Joe's Self storages" but a few large companies like Public Storage have been able to brand and market themselves effectively. I can totally see an opportunity in this business if you come up with a nice logo, recognizable brand and effective marketing, probably a potential for merger, acquisitions and expansion. I am not interested in starting a "'Joe's self storage" but a recognizable brand name and good marketing are VERY important to me. Let's see if I stick with this idea for a while Thanks for your insight!

[pboychuk]

I am an undergrad and was thinking of doing the same thing, people have told me the market has reached its peak and since gone down due to competition etc. there are also many major players I don't see how you could interrupt the current market. The only hope I see is creating nicer facilities which would cost more, but hopefully bring in more business, and marketing that, thats how I chose the place in town i currently use, they have a small building for their office, with flatscreens, tons of cameras, golf carts, and the units and gates are nice. However, that just creates huge costs, thus I have changed my outlook for the future toward creating something unique and sustainable.

[minnesotacold]

I am an undergrad and was thinking of doing the same thing, people have told me the market has reached its peak and since gone down due to competition etc. there are also many major players I don't see how you could interrupt the current market. The only hope I see is creating nicer facilities which would cost more, but hopefully bring in more business, and marketing that, thats how I chose the place in town i currently use, they have a small building for their office, with flatscreens, tons of cameras, golf carts, and the units and gates are nice. However, that just creates huge costs, thus I have changed my outlook for the future toward creating something unique and sustainable.

I have been reading several publications on the self storage business and I do not exactly agree with you. Some markets are saturated but not all, actually with population growth and migration especially to Sun Belt states, I think there are many opportunities. The major players only account for a small share of the market, basically, most self storage places are small, do not advertise much and do not have good branding/marketing. Obviously, because self storage is "commercial real estate", there are risks involved, one being, saturation of a market which causes rents to go down but overall, I do not think this is a risky business at all. Have not heard of many self storage places that have gone out of business, even the very crappy ones. I definitely see opportunities in this business.

[Wayne@storman.com]

Hi,

I have read all your comments and agree with the majority.

The people behind the company that employs me has been in the business of developing maagement software for the self storage industry since 1987. This company has sent myself around New Zealand, Australia, and the USA. Other staff have been sent to work in the UK and Asia.

We have lots of expertise in this area and if anyone would like to know more about the industry from a local and a global perspective we might be able to help.

compliments,

Wayne

[Usman Sheikh]

@minnesotacold I think you have the right idea. The competition among "Joe's Self Storage" may be getting tougher, there are still a lot of niche's within the segment that can be explored. Something like self storage spaces for students during the holidays, entrepreneurs with inventory that needs to be stored or event management companies when they have multiple events in a particular city.

Differentiation with the right marketing strategy is what makes you stand out and ultimately succeed. I would also recommend getting some experience in the industry before you get into it. With the main aim of understanding the cost structure, pricing structure and networking with individuals who may be of assistance to you in the future.

[parklandgroupohio]

Having such business is good but you much see to it that enough money for its security, much better if you got a insurance to your client.thanks