Are you looking to invest in a storage franchise but not sure whether it’s the right move?
For starters, the storage and warehouse leasing industry generated $37 billion in 2018. It has over 58,000 established businesses, employs over 142,000 people and, importantly, recorded a 3.7% annual growth.
Clearly, now is a good time to break into the industry, and you can buy a franchise instead of building a new storage business from scratch.
In greater detail, here are reasons why investing in a storage unit franchise is a smart idea.
Increasing Demand for Self Storage Services
In a country where most homes have garages and storage spaces, who needs to rent a storage facility?
Well, a recent survey established that 64 percent of people who have rented self-storage in the past did so even when they had enough space in their homes to store the items!
So, what exactly is driving the demand for self-storage services? The ease of use and security of storage facilities, affordable rental costs, and fancy features such as air conditioning are some of the major demand drivers.
As an entrepreneur, your goal is to offer a product or service that will sell. With a storage unit franchise, you can’t go wrong.
Ability to Convert Old Buildings/Dead Space Into a Storage Facility
To run a self-storage, you need a building or warehouse.
Erecting a new building or warehouse is a capital-intensive project, but you don’t have to do that. If you own an old building or warehouse, you can renovate and convert it into a storage facility. Even if you don’t own any property, nothing stops you from snapping up a fixer-upper and turning it into a commercial storage space.
The ability to convert old buildings into ideal storage spaces will shave a sizeable amount of money off your startup costs.
Keep in mind, though, the structural integrity, design and curb appeal of the property will go a long way in attracting potential customers. View here to learn more about some canopy designs you can use to make the facility more attractive.
No Shortage Storage Unit Brands/Franchisers
Investing in a storage unit franchise means you will have to find a franchiser. But how easy is it to find an established franchiser?
Although the storage industry might not yet have massive franchises such as those in the restaurant industry (think Starbucks and McDonalds), there are several established and well-recognized brands offering franchising opportunities.
However, the fact that there are many storage brands in the market means you have to be more careful with your selection.
Start by drawing a list of storage brands you’d love to approach for a franchising opportunity. Next, do extensive research to establish the market share held by each brand, their offline and digital reputation, as well as the requirements for becoming a franchisee.
This information will help you to zero in on a brand that best suits your needs.
You’re Investing in a Proven Business Model
Franchising takes the guesswork out of starting a business.
When you buy a storage unit franchise, you’re putting your money in a proven business model. This is not to say a franchise cannot fail — a bad location and poor management can take down any franchise.
What we mean is franchising gives you a big head start. In fact, top franchises have strong survival rates.
Easier to Receive Business Financing
Lack of capital is one of the common reasons most new businesses fail.
As a storage unit franchise owner, you need to ensure you have adequate capital to keep the business running until its making a sustainable profit.
What if your working capital runs out?
The good news is unlike other businesses, franchise owners have easier access to financing. Because franchised businesses are operating on proven business models, lenders consider them low risk.
No Branding and Marketing Headaches
When building a business from scratch, you have to craft the name, design a logo, determine the colors that will best represent the business, and craft a catchy tagline among other branding details. Once the business is up, you’ll need to deploy an effective marketing strategy to make your target market aware of the new business in town.
Franchising takes away most of these tasks or makes them a lot easier.
First, you won’t have to worry about coming up with the name, colors, tag line and whatnot. You’ll adopt the franchiser’s corporate name and image. You’re also free to use their marketing methods.
Receive Ongoing Support
Building a storage business from scratch means you’re in charge of everything, from service development to customer support.
You can hire specialists to fill those roles but your budget might not allow. If you’ve little entrepreneurship or business management experience, it’s easy to make mistakes that can cause the business the fail.
When you invest in a franchised business, however, you’re assured of ongoing support from your franchiser. Plus, they’ll take you through some training to help you learn about their processes and the common challenges facing storage franchises.
Time to Invest in a Storage Unit Franchise
Investing in a storage unit franchise is a smart move that has the potential to earn you a good income.
The demand for storage services is rising, it’s easier to get startup financing, there’s no shortage of established self-storage brands and you’ll receive ongoing business support. Make the move already!
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