How to Cash in on Canada’s Booming Mini-Storage Industry
Here in Canada, one industry seemingly always grows, whether we are in an economic boom or recession: self-storage.
Mini storage has been a cash cow for Canadian business owners for decades and shows no signs of slowing down. The passive income generated by the need to provide Canadians with offsite storage continues to be attractive for investors and entrepreneurs alike.
What’s the Big Deal With Starting in Self-Storage?
As Canada’s shaky economy continues to falter, people seek the safety, security, cleanliness and convenience of offsite storage.
It’s a great way to declutter homes and offices since a single storage unit can fit the contents of anything from a few Christmas decorations all the way up to the contents of a four-bedroom house.
From an entrepreneurial perspective, a self-storage facility can bring stable revenue, and the payoff can be quite lucrative. That being said, success in the self-storage industry will still take time, energy and patience.
Three Ways to Build Your Own Self-Storage Business
One of the most important things to consider when entering the mini-storage industry is how you will build your units. There are three ways here in Canada: building units from scratch, converting a building or using modular construction.
Build Your Units From the Ground Up
For those who want to spend millions of dollars upfront, you can go through the process of designing, planning and building complex, permanent buildings. This option will give your business a large number of new units when it launches, many of which will remain empty for quite a while.
For those without the capital at hand, it will take bank loans or outside investors who seek a quick ROI.
When you start fresh like this, be cautious about delays caused by engineering, approvals, weather and labour shortages.
Although these self-storage facilities often look flashy, the units are not mobile and if you realize that your location or layout is not what your consumers want, you will be unable to move your business and be stuck with what you have.
Convert an Existing Building
You may spot an empty retail location or warehouse that screams, “convert me to a mini-storage facility.”
This may look well and good in your mind, but there are many unknowns that you need to consider. Upgrading or converting a building can cost more than starting with a blank slate, especially when reworking engineering, uncovering asbestos and dealing with trades that may not always be reliable.
There is also the unknown of paying to purchase and renovate an entire building when your business is just starting.
And after you expend all of that time and energy, you may realize that the expensively converted building doesn’t meet your projections, and your business is impossible to move or sell.
Grow Your Business With Modular Self-Storage Units
Wise investors do not expend all of their available time and energy in one project and hope it works out right. For those seeking to succeed in this industry, the key is to start small and grow your facility size as the need grows. This involves starting with a few dozen units and expanding over time.
Customized modular units can be purchased for far less than building new or converting a current structure. It requires a much smaller investment, can be quickly delivered and will provide immediate ROI.
TargetBox is a Canadian company that customizes self-storage units using reclaimed shipping containers. This allows new and established self-storage facilities to grow their facility over time and reduce the number of empty units that take up space and cost money to maintain.
Plus, when you need to pivot your business and adjust your location, picking up your business and moving to a new strategic location has never been easier.
TargetBox can customize each modular unit depending on your needs, whether it is converting a 40’ sea container into four units or a 20’ container into one unit. Many additional modification options are available, such as electricity, insulation, paint and business logos.
Build Your Modular Self-Storage Business With TargetBox
If you don’t value time, energy and money, just build a new self-storage facility. If you like living on the edge and operating in the great unknown, convert a building. If you truly want your business to succeed and allow your business’s capacity to grow with you, trust TargetBox shipping containers.
Learn more on TargetBox’s dedicated self-storage business page that includes the information you need to determine if a mini storage enterprise is in your future. Then reach out to Canada’s self-storage unit professionals today and allow us to help you succeed!