There are several differentiating points in each of these models that can each be equally profitable, but their feasibility and overall interest to investors will depend on how they compare to regional competitors relative to the market demand for a given area.
The business model section of a self-storage company is designed to provide information on where the facility is located, the cost of construction/leasehold modifications, the qualifications of the management team, and several other variables.
Some have attempted to acquire positioning by offering additional services, whereas others recognize that it is largely a combination of price and location.
However, it also helps to be visible during the consumer search process for a self-storage company.
Each building will have different conversation costs, which you'll need to take into account.
An example makes this clear: You've discovered a qualifying area (high traffic, 90 percent occupancy or better) where the going rate is about 0 per month for a 10-by-10-foot facility or per month per square foot.The information here concentrates on the low-budget approach, and key to this approach is doing a feasibility study to locate a building in an area where you can be profitable.To begin with, assume that you won't be building the rental storage facility because that immediately adds hundreds of thousands of dollars to your startup costs.To avoid this kind of failure, you need to do research, beginning with storage facility demand.If you have sufficient funds, hiring a feasibility consultant solves a lot of problems for you.The key drivers as assumptions for the plan will include the overall pricing, capacity level, and utilization level.Other considerations to factor into the model include the marketing budget, cost of capital, and expenses related to sustaining the facility.So, what kind of existing facility should you be looking for?You need a storage facility that's rentable to a sufficient number of customers to make a profit at the rental rate those customers are willing to pay.When you can't afford one, do the feasibility study yourself, beginning with assessing the market demands in several local market areas with high traffic where zoning regulations allow self-storage businesses.Two critical questions you need to answer - and you can often get them chatting with an on-site employee - are: Armed with answers to these questions, you're prepared to look for affordable buildings to rent.