Know Before You Buy: Things To Consider Before Buying a Self-Storage Franchise

Category: Entrepreneur

Know Before You Buy: Things To Consider Before Buying a Self-Storage Franchise

 

Becoming a business owner will change your life. Now, see if a self-storage franchise is right for you.

With over 4,000 companies selling franchises in the U.S., choosing an industry can be challenging. People often want to become owners of their favorite gyms or restaurants. However, some industries that are light on glamour can be high on owner satisfaction.

As you explore franchises, give the self-storage industry heavy consideration.

For one thing, it’s booming. According to the Wall Street Journal, average monthly bills totaled $155.65 in November, which is the highest they’ve been in five years. More than 10% of all U.S. households rent a unit, and the number of rentals increased by a whopping 14% from 2017 to 2020.

For another, a self-storage facility is one of the few recession-proof investments a business owner can make. As an entrepreneur, those are two pillars you can build a very profitable - and secure - career on.

 

Join The Self-Storage Boom

Many industries were wounded by the coronavirus pandemic. Self-storage is not one of them.

Just the opposite. As people and businesses continue to downsize, work remotely, or explore nomadic lifestyles, they need space to store their things until their lives return to equilibrium. As a result, there’s now a widespread demand for more facilities.

Forbes calls self-storage “one of the most recession-resistant asset classes.” Usually, recessions cause real estate values to decrease because there’s less demand for homes or investment properties. However, self-storage is a service that people and businesses desperately need when recession strikes. If you’re keen to own a business but are wary of risk, a self-storage franchise could be a great choice for you.

Just look at the numbers. In 2019, the industry was estimated to be worth $87.65 billion. It’s expected to reach $11.625 billion by 2025.

This projection is a big green light on your journey to become your own boss driving a profitable franchise business.

Bill Gates saw the green light. The billionaire entrepreneur started investing in StorageMart, one of the largest competitors, in 2020.

Ask your franchise consultant to help you research the right franchises out there for you. Your franchise consultant’s inside knowledge of the industry and the players will quickly narrow the list to those companies best matched to your needs and interests.

 

Look For Red Flags

Even investing in a booming, low-risk industry requires you to watch for red flags. This is your livelihood you’re dealing with. You can never be too diligent.

You might encounter a franchisee who wants to sell their existing franchise to you. This is awfully appealing - so much of the work has been done for you! Evaluating an opportunity like this is when you need your business mentor (a.k.a. your franchise consultant) most of all.

Your franchise consultant knows how to evaluate the business before you buy to make sure you’ll be taking over something that’s thriving from the inside out. You don’t want any nasty surprises once you’ve signed and can’t go back.

One of the few downsides to the self-storage boom is that real estate is highly sought after - i.e., expensive. Whether you’re leasing a franchise location that has already been developed or you rent or buy a location to build the franchise from scratch, it probably won’t be cheap. Bringing in professionals like a real estate agent and a franchise consultant can help you sidestep any hidden mines as you search for property.

Franchise ownership is an investment that goes beyond the franchise fee. Talk with your franchise consultant about our free consultation to match you with the right franchises. With their expert help, you can get a clear picture of what the future would look like if you went ahead with the venture. Together, you can make a realistic budget.

Don’t put your dreams in storage. Schedule your free consultation with a franchise consultant today.

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