Owning and operating a self-storage facility can be a lucrative business for you to pursue. However, these facilities can be fairly costly to construct, and it is common for individuals to need to obtain special financing to be able to afford the construction costs that are required to erect one of these facilities.
Perform A Viability Study Of The Area Where The Self-Storage Facility Will Be Built
One of the first steps that you should conduct when you are preparing to open a self-storage facility is to conduct a viability study of the area where you are wanting to build it. This study should include the costs that will be involved with building the structure and obtaining the necessary licenses or permits. It will also need to consider the local demand for this type of service along with the amount of traffic that will pass by it. Ensuring that this study is as accurate as possible is essential for this plan to be effective, and as a result, you may want to invest in a professional service to assist with this viability study. In addition to helping to guide your decisions for the business, this study can also be necessary as part of your application for financing.
Develop A Comprehensive Business Plan
Another important step in the process of preparing to open a self storage facility is to prepare a business plan. This is a critical document as it can allow you to understand the operating costs and challenges that the business will experience. Additionally, you will want to include details and plans for the marketing for the self-storage facility as relying on individuals to find your facility on their own can be an extremely ineffective option for developing a client base.
Meet With Several Self-Storage Loan Financing Providers
When you have the viability study and business plan prepared, you will be ready to start the process of applying with self-storage loan financing providers. While it can be time-consuming to complete these applications, you should meet with as many of these providers as possible so that you can compare the various terms that you are offered. This is especially true for those that may not have the best credit history as they may need to apply to numerous providers before they are able to find one that will both accept their application as well as provide them with favorable terms so that the business can be more profitable.
If you'd like a self-storage loan, reach out to a company like Caffrey & Company, LLC to see if you qualify.