Why Invest in a Storage Unit Franchise?
When you think of owning a perfect business, the thoughts of reinventing the wheel are quite difficult to resist. Though you may have a unique or original start-up idea, sometimes it’s smarter to consider industries and businesses with a history of success. If there is one thing that people always want more of, it is the space to store things. With age, we accumulate more and more stuff, creating a huge opportunity in the storage industry. And the growth is only just getting started.
If there is one thing that people always want more of, it is the space to store things. With age, we accumulate more and more stuff, creating a huge opportunity in the storage industry. And the growth is only just getting started.
Investing in Storage Business
Storage facilities may not have the charisma and glamour of something like a tech start-up, but they are far from a passing trend. Instead, storage facilities can make great business opportunities and investments, and it’s time to find one for you.
The storage business is booming in the US. According to IBIS World, the storage industry produces approximately $38 billion annually. If you are thinking of breaking into this niche, a storage unit franchise business can be an excellent way to start it.
Read on, and we will walk you through everything you must know about self-storage unit franchises before getting one for yourself.
Storage Unit Industry Outlook
The reluctance of Americans to discard their stuff is legendary. Hence, the storage market continues to grow at an astonishing rate. The self-storage industry has grown and turned into a popular and highly competitive sector over the past decade, offering plenty of business opportunities.
Due to its recession-resistant nature, its demand has increased further during the looming pandemic. Renters need to store their belongings when their rental spaces shrink, they adapt to a more nomadic lifestyle, o move in with family. The self-storage unit industry has experienced significant capital intersection from the real estate sector, mainly from retail and multifamily investors.
Improved economic outlook, lifestyle changes, and increasing rate of urbanization have raised the expectation of growth in the storage industry. The market is expected to reach $53.92 billion by 2026 from the previous value of $40.73 billion in 2020.
Around 15% of Americans move each year. Most renters procrastinate to clear the stored items, and renters keep their storage units for over three years on average.
Storage Facilities Offer Recurring Revenue
People look for a steady income when they think of starting a business. One of the best ways to run the business is via generating predictable revenue in the future. Storage unit facilities charge their customers every month to generate a steady flow of income.
A business established with recurring income has a higher value of resale when compared to a business with no predictable cash stream. Moreover, storage unit facilities don’t need much to turn a profit.
Evolving to Serve a Wider Market
The modern generations of storage facilities are found in light commercial, retail locations, and multifamily dwelling neighborhoods contrary to the basic slab warehouses along the interstate. They are safe, secure, and well-developed facilities constructed to please customers aesthetically and camouflage with the surroundings.
Storage businesses offer many customer services such as full-time staff and security, packing and moving supplies, climate-controlled units, and loading docks. Furthermore, new storage facilities serve many business purposes, such as start-up incubators in addition to just storing personal possessions.
The Top Storage Unit Franchise Opportunities
Storage unit franchise opportunities are the best way to break into a booming business market. In a franchise operation, the franchisor typically provides training and advice to develop the skills required to operate the business. Furthermore, banks and other lenders may be more open to providing financing if they can see the franchisor’s successful track record.
Many popular storage unit franchise opportunities include plenty of other concepts, such as mobile storage, trailers containing storage containers, portable storage solutions, and more.
We’ve assembled a list of five of the best storage unit franchise opportunities:
Franchise fee: $35,000
Initial investment: $500,000–$4,000,000
Storage Authority came into being when self-storage veterans Marc Goodin and Garrett Byrd developed a self-storage franchise. It provides a franchise opportunity that focuses on self-storage at the consumer level. The company provides more than 50 years of franchise experience and self-storage, including ownership, operation, construction, and design.
Storage Authority offers franchisees the reservation systems, sales and marketing, knowledge and experience, critical brand recognition, and much more to maximize the occupancies and profits of the franchisee for the years to come.
Franchise Fee: $45,000
Initial investment: $224,604–$453,000
Founded in 2002, Go Mini’s offers portable storage containers that make storing and moving your valuables easy. Franchisees can rent out portable or mobile storage containers to commercial and residential customers who are renovating, storing, or moving. It offers them the option to transport the container to another location, keep it on-site, or store it at the facility provided by Go Mini’s.
Go Mini’s also offers financing avenues for prospective franchisees.
Franchise Fee: $75,000
Initial investment: $1,200,000–$2,000,000
Founded in 1998 by Peter Warhurst in Florida, PODS (Portable on Demand Storage) is one of the leading storage unit franchisees in the moving and storage industry. It offers commercial and residential services in 46 states as well as the UK, Australia, and Canada.
PODS provides you with two business models: moving and storing. Customers can load their unit and store it at their house or the local facility.
Franchise Fee: $75,000–$150,000
Initial investment: $657,450–$1,219,830
Zippy Shell was originally founded in Australia but has several franchise locations in US markets and is open for further expansion. Zippy Shell franchisees deliver trailers with storage containers to customers’ businesses and homes. The customer fills the container, and Zippy Shell will pick it up and store it in its climate-controlled facility.
MyWay Mobile Storage
Franchise Fee: $40,000
Initial investment: $180,800–$760,200
Founded in 2006, MyWay Mobile Storage is the leading provider of DIY moving and portable storage. Their vision is to be in 50 locations in 5 years. Thus, the company is looking for the limited number of franchise partners who will suit and fit into their work culture.
MyWay Mobile Storage offers customer services, sales support, and marketing for franchisees. You can use your resources and time to focus on the other aspects of running and growing your storage franchise business.
To Wrap Up
Storage Unit facilities can be very wise investments that will never go out of trend. As a business owner, you may find these simple and inexpensive to operate. People will always need space to store their stuff in both good and bad times. So, invest wisely and get a steady flow of revenue.