TIPS TO GET STARTED

Getting started in self storage?

The SSAA has welcomed many new members recently who are considering embarking on their first self storage project. Based on the combined experience of our members over many years, we share some hard-earned wisdom with those just getting started.

Do your research

Self storage is a local business, so it’s important you understand your local market inside and out. You can engage a range of advisors to help with research and feasibility studies and it is worth seeking out experts in self storage for the task. Don’t underestimate how important these fundamentals will be to the success of your self storage venture.

You should be researching your chosen location and primary target market, including demographics and suburban trends. Keep a keen eye on operators already in market. Insights from surrounding facilities on style, sizes and rates might help you identify a gap in the market or model the potential for your facility.

Location, location, location

Self storage is a real estate business after all. Customers are seeking convenience and accessibility so a great location is key. A high degree of visibility, access to main roads or major thoroughfares and passing traffic all make for great self storage locations. Think about opportunities for branding and signage as you’re assessing your location options.

The 5 Ps

You know the saying. Proper preparation prevents poor performance – or whatever version you’re familiar with. It rings just as true in self storage.

There are three aspects of proper preparation you’ll want to consider when you’re starting out: Business planning – make sure you’ve considered all aspects of your strategic plan, particularly where external investment or funding is concerned. Do the numbers stack? Project management – an experienced project manager will add value at every step and ensure things run as smoothly as possible. The execution phase of your build will include everything from structural engineering to ventilation and electrical design, fire safety, approvals and much more. If you’re managing the project yourself, make sure your reach out to your service providers to ensure you’ve covered every aspect. Operational readiness – are you considering operating the facility yourself, engaging a third party management provider or thinking about full automation? Whatever the scenario, consider your operating model ahead of time. There’s insurance, technology, security solutions, marketing and customer experience to consider so don’t leave it all until the build is nearly done.

What’s inside counts

Maximising your available space or net lettable area (NLA), determining the most efficient unit mix (the size, type and layout of units) and choosing the right fit out are all essential for success in self storage. There are a wide range of self storage solutions including different types of partition systems, doors, lockers, modular units and more. If this is your first experience with self storage then engage an expert for valuable advice. What you invest at this stage will return dividends both in operating revenue and if it comes time to divest down the track.

Budget surprises

The 5Ps should help limit any budget surprises. Beyond your initial purchase, design, development and operating costs, don’t forget to consider: l External building requirements such as parking, signage and landscaping costs l Internal requirements such as a retail space or box shop and associated fit outs, bathrooms, office furniture and other amenities l Insurance l Security setup and any ongoing monitoring costs l Technology l Retail merchandise l Staffing l Marketing; and l Maintenance

Looking for support?

The SSAA is here to support new entrants to industry. Check out the SSAA Self Storage Supplier Guide for case studies, resources and a range of experienced industry suppliers. Login to your SSAA Member Portal to learn more. l

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Before After

Southwell Engineering

Southwell is a proud, family owned company. Since 1945 we’ve been engineering and manufacturing high-quality hoists and scissor lift products at Camden, New South Wales, delivering and installing them around Australia, New Zealand and the world. We design registered one of the original Australian hoist designs and we’ve continued to innovate with creations like our Car Lift with Integrated Turntable, adding neatly to our standard range of Car Lifts and Goods Hoists.