You’ve probably noticed no storage solutions in your region, and you’re considering starting a self-storage business in Canada. Unfortunately, you are unsure of how to go about it, maybe because you lack the experience to manage such companies. Well, you are in the right place!
Opening a self-storage business in Canada is a long-term investment with excellent income potential. However, planning adequately and staying patient as your new business grows is advisable. You must prepare a business plan, build storage facilities, and market your services.
This guide explores the tips and ideas to help you start and manage a self-storage company. Also, you’ll learn the requirements you must fulfill to run a self-storage business successfully.
That said, let’s dive straight into the facts!
How to Start a Self-Storage Business
Self-storage services are becoming increasingly popular in Canada. Many homes and offices lack enough storage space and need to store their items elsewhere. So, you can take advantage of this lucrative opportunity and start your self-storage business.
All you should do is prepare a business plan for the company and consult self-storage experts like Vaultra Storage. We offer third-party storage management services to help you run all the aspects of your self-storage business, including accounting, operations, sales, and marketing.
Step 1: Research the Market and Plan Adequately
Before committing much time, effort, and money to the self-storage business, it’s essential to understand the self-storage trends in your location. Then, perform a market study to assess the needs of potential clients as you evaluate the services and prices offered by your competitors.
You can quickly search online or check the paper listings for the storage businesses around your locality. Once you’ve gained a clear picture of the local demand and competition, outline your goals. That will help you plan well and develop effective marketing strategies.
Step 2: Determine the Startup Costs
At the start, you must determine the amount of money it will cost you to set up a self-storage business. Startup costs are the expenses you’ll incur to get the company running separately from the recurring maintenance or business costs. They are also known as sunk costs.
The figures can vary based on location, land, acquisition, and facility construction costs. Considering the costs of hosting your business website and the marketing materials you’ll use to launch the business would be best. The information will help you create a business plan.
Step 3: Prepare a Strategic Business Plan
Your business plan should contain your specific goals and strategies. Since the plan clarifies your business objectives and brand, ensure that it’s precise, clear, and based on verifiable data. The data should help you analyze the business’s strengths, weaknesses, and feasibility.
The good news is that a business plan can serve as a business card when looking for financing from external sources. But remember, it must show the projected cost of running the business. The business plan should also have a section explaining your business’s services.
Step 4: Seek Financial Support for the Business
Like any other business, you need money to launch and run your new self-storage business. With the help of your business plan and market research report, you can apply for financial aid from your financial institution. But the loan you can secure will depend on your balance sheet.
You should be ready to provide the following information when seeking financial assistance.
Amount of money required to get the self-storage business up and running
Future funding requirements you might have for the next five years
How you’ll spend the money, providing specific information on capita expenses
Pro Tip: If you are unwilling to secure loans from banks or other financial institutions, you can team up with other investors to get enough funds to set up a storage facility.
Step 5: Secure Your Location and Storage Units
The crucial part of the new self-storage business is the location of the premises where clients will store their things. Consider opening the company in an accessible area with a lot of traffic. Also, consider sites zoned for business development, as you’ll find many customers there.
Once you’ve chosen a good location, you can build storage facilities from scratch on land you’ve purchased for your business. Alternatively, you can buy an existing self-storage facility. Thanks to companies that construct and deliver the units to those who wish to start storage businesses.
Step 6: Apply for the Necessary Permits and Licenses
As a new business, you must obtain the necessary licenses and register your company with the relevant authorities. That way, you’ll ensure that your storage business fulfills the region’s legal requirements. Besides, it will help you win your customers’ trust and loyalty.
Failure to get the necessary licenses and permits can attract hefty fines or result in the closure of your business. Besides, ensure you’ve familiarized yourself with the tax regulations in your region. Working with an attorney specialized in regulations and taxation can be helpful.
Step 7: Create a Website and Market Your New Business
Creating an official website can help improve your business’s online presence and reach many potential customers. So, build an elaborate website that describes your services and reasonable fees. Besides, ensure that your company ranks top in search engines and directories.
Having a professional website shows that your business is legitimate and trustworthy. It’s one of the best platforms to market your new business, although you can explore other options like social media marketing. Don’t forget to advertise the company to reach out to more customers.
Now that you know how to start a self-storage business in Canada, you can confidently venture into this business. Remember to create a professional brand name that suits your company’s objectives. Once your business has gained traction, you can consider expanding it.
However, how you manage your new self-storage business will influence its success. The good news is that Vaultra Storage can help you run the company until you achieve remarkable success. We’ve been in this business for many years and understand all the aspects.