Storage Facilities as a Business

Starting a small business begins with an idea for a service or product that consumers are willing to buy. One of the most abstract things that people need is space, which storage facilities provide for a charge. But starting a storage facility business isn't without its challenges, even if it does meet a universal need that never goes out of style.


A small-business storage facility can take a number of different forms. Some facilities offer public storage in relatively small lockers where customers store personal goods they don't have room for at home. Other facilities resemble warehouses and offer oversized storage areas for businesses and private individuals with large items to store, such as merchandise inventories, industrial machinery, boats and cars. Another type of storage facility offers specialized storage. For example, facilities may store medical specimens, archival documents and artifacts.


One of the key requirements for a storage facility is acquiring a large space to house storage units or construct a new facility. Building a new storage facility is costly, especially if your business intends to offer special security features or climate-controlled storage. This likely means borrowing money until you can attract clients and begin collecting storage fees. Personnel requirements for a storage facility business are relatively minor; workers include customer service representatives, a marketing staff, and maintenance and security personnel to keep the facility clean and safe.

Doing Business

A storage facility's business plan depends, in large part, on the type of clients it seeks to attract and the specialized services it offers. For example, a public storage facility may need to advertise to new area residents and local renters — an apartment search website or real estate magazine would be ideal venues. Meanwhile, a facility that specializes in climate-controlled storage can market itself to local universities, historical societies and museums. The number of potential clients in the area should determine the size of a storage facility investment. Owners also need to determine whether they'll offer shipping or insurance services.


Business for storage facilities tends to shift with other factors in the economy. For example, cash-strapped museums may sell off or lend artifacts to other organizations when they can't afford to exhibit or store them, reducing the demand for specialty storage facilities. In the case of public storage, the housing market is an accurate predictor. When people are building new homes and moving into larger homes due to low mortgage interest rates, they have less need for storage facilities. However, when people move to smaller homes or abandon homeownership for renting, as may happen during a recession, storage facilities see higher occupancy rates. These trends guide storage facility owners as they plan expansion and marketing efforts.



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