This article shows you how to start a storage unit business with no money. Is it possible? This is one of the things we’ve discussed below. If you’re thinking about starting one, this guide would prove helpful.
Often considered recession-resistant, warehouse or self-storage businesses are viable and can fetch you consistent profit if you do things strategically.
How to Start a Storage Unit Business Without Money
Setting up a storage unit operation with no money of your own involves a range of procedures, including assessing the cost, having a plan, and weighing your options (business model to adopt).
Other steps involve choosing a niche, sourcing loans from private investors, selling business shares, applying for a bank loan, considering soft loans, or selling assets to raise capital.
Assessing the Cost Factor
Because we’re discussing starting a storage unit business with no money of your own, it’s necessary to determine how much is needed.
This can be a bit vague as many factors are involved. In other words, the cost is never the same for any two self-storage businesses, as each has unique requirements and investor preferences.
Despite this fact, we can provide an estimate of around $150,000 to $1,500,000. This shows how widely startup costs can vary.
In breaking down this cost, you have business registration fees, marketing promotion costs, operational or running costs for the first three months, website building costs, phone and utility deposits, and hiring or building a storage facility.
Have a Plan
Your plan reveals the level of preparedness for your storage unit business. Investors use this document to determine business viability.
In other words, your plan helps them decide whether your business will make a good return on investment. A storage unit business plan should have an executive summary.
Other crucial sections include company description, products and services, market analysis, and strategy and implementation.
Your storage unit business plan should also have an organization, management team, and financial plan and projections sections.
You have a comprehensive and implementable plan by carefully expanding on each.
Weigh your Options
By weighing your options, we mean choosing between franchising and starting from scratch. Of the two models, franchising tends to require the most minor investment in the short term.
Plus, it’s easier to establish because you use the franchisor’s business model, including ongoing support throughout the franchise term.
These franchises may also offer financing, which may be in-house or from third-party sources. Such may cover critical areas of operation like the franchise fee, equipment, and many more.
Starting a storage unit business from scratch has its advantages and challenges. Plus, there are well-established funding options like those discussed below.
Choose a Preferred Niche Area
Storage unit businesses operate in a variety of niches. Knowing these allows you to identify a more appealing and exciting niche that aligns with your business objectives.
We must clarify that we aren’t implying that other niche areas are more lucrative than others. It’s all a matter of perspective and how well you strategize.
Speaking of storage unit niches, you may wish to operate as a mobile storage or moving company, U-lock storage, have the rental of coin-operated lockers, lease storage units, or rent storage units.
When discussions are had about storage unit business niches, you’ll have varying views, with some believing there are no niche areas while others think otherwise.
Whatever the case, it’s best to stick with what serves your needs best.
Source for Loans From Private Investors
To achieve your goal of starting a storage unit business with no money of your own, you might want to look for loans from private investors. These investors are always looking for the next big idea.
Not only that, such an idea must be viable enough to qualify for investment. One way to showcase viability is through your business plan. How well is it put together?
You’ll need to determine the requirements for accessing such loans. This involves speaking directly with these private investors while having everything set in order.
It would help if you were not caught unprepared, as this can determine whether or not you get the funding you seek.
Sell Business Shares
Selling some business shares is an effective way of raising capital for any business venture. Here, you’re ceding control or ownership of some of your business.
While this may sound interesting, it’s not suitable for every type of business. You’ll need to assess your business needs, including deciding if you wish to go public to raise capital.
Apply for a Bank Loan
Banks are among the traditional lending institutions you can rely on to raise funding for a storage unit business. However, there are minimum requirements to be met, which you must find research about.
For most banks, having a good credit rating is one of several requirements for getting a loan. You might want to start exploring by making inquiries about lending provisions.
Soft Loans from Friends and Family
Friends and family are critical support systems that can offer much-needed support for establishing a business. This includes soft loans for establishing your storage unit business.
However, this depends on how financially buoyant they are. You need to show proof of the viability of your business idea for it to be considered worthy of funding.
Sell Assets to Raise Business Capital
Selling assets is another way to raise business capital for your storage unit operation. This can be anything valuable or an investment.
You’re liquidating or converting your assets to cash to actualize your business idea.
Shares are among the assets you can sell. If you have none, you might want to stick with the other strategies mentioned.
The best part is that you can use a combination of multiple strategies listed above to raise capital for your storage unit business. However, this must be done strategically to achieve the desired outcomes.
We must also state that these aren’t the only steps to starting a storage unit business with no money of your own. You can research other ways of doing the same.
Start your storage unit business even with no money of your own by using the tips provided above. These have been proven to work and can be replicated in your situation.
Also, consider seeking advice from a business consultant for additional tips on how to get the desired outcome.