In the US, storage units can generate profits of anywhere between $50,000 to over $500,000. These numbers may amaze you, considering that compared to other businesses, storage units don’t take much work to maintain.
You might be dreaming of large profits now, but there’s one problem: you have no starting capital, which means you’re stuck at square one. But of course, if there’s a will, there’s a way; if you’re creative with resources, you may be able to make this dream a reality.
Keep reading to see how to start a storage unit business with no money. We’ll give you several options that’ll put you on the path to entrepreneurship.
How Much Does It Cost to Start a Storage Unit Business?
Before you start exploring your financing options, it’s good to know how much you’ll need in the first place.
Sadly, there’s no narrow ballpark number to give you, as there are many factors that affect the total price. For example, these are questions where the answers will skew the costs significantly:
- Will you be an independent company or will you be part of a storage unit franchise?
- Are you renting or buying land?
- How big will the piece of land be?
- Where will your business be located?
- Are you working with existing storage units or do you have to build your own?
- If you’re building, will the facilities be single-story or multi-story?
- What materials are you using for your facilities?
In general, you can expect to pay between $4.25 to $8.00 per square foot if you’re building your own facilities. However, it’s best to consult with a builder to get a better understanding of what the costs will be.
How to Start a Storage Unit Business With No Money
Now that you have a better understanding of the details involved in starting a self-storage business, you can move on to the methods to secure funding if you don’t have money.
One great place to start is your family and close friends. These people will want to see you thrive, and typically, the “loan” terms are much more flexible than with official lenders.
However, money can be a touchy subject, and it’s common for people to fall out and have ruined relationships over it. And they may not have large sums of money to lend you anyway.
So if you don’t want to risk that, or your loved ones can’t help, here are some other ways to get funding.
Seek Investors or Loans
A fantastic resource is angel investors. These people provide the seed money needed to get your business off the ground. The only drawback is that they’ll have ownership equity, but if you’re confident in your company, this shouldn’t be too big of an issue.
Also, GoFundMe (and other crowdfunding) campaigns are very popular nowadays, so why not join the crowd? There’s a chance that other people believe in you, and you never know what wealthy person might run across your page.
Otherwise, you can try a small business loan. Look for ones with low interest rates by checking with community banks or credit unions. Make sure you have a strong business plan first, as it’ll be essential in securing the loan.
Utilize Government and Non-Profit Programs
Often, there are government and non-profit grants available for small businesses. In fact, some grants are specifically for new entrepreneurs or niche businesses (like storage units), so if this is your first try as a small business owner, then that’s perfect.
Some areas also provide tax incentives for starting new businesses, which can reduce your financial burden. Do some research or consult with a tax professional to find out more.
Leverage Partnerships
If you have social connections, now’s the time to use them. Try partnering with someone who already has land or property. Tell them you’ll handle the business side of things while they provide the initial infrastructure.
Another thing to try is offering to manage an existing storage facility for someone in exchange for a share of the profits. This will give you experience without requiring a big investment. Once you get enough money to start your own company, you’ll know how things go, so it’ll be a smoother experience.
Start Small
It’s not a requirement to start off with a traditional storage facility. Instead, you can begin with mobile storage, such as shipping containers or portable units; obtain these with the methods above. You can then rent out a few units and expand over time.
You can also start by renting a warehouse or a small space. Partition it into multiple storage units so you can scale slowly without needing to rent or buy large pieces of land.
Negotiate With Suppliers and Contractors
Some suppliers and contractors may be willing to defer payments or offer credit terms, so it won’t hurt to ask around. This will give you time to generate revenue before having to make large payments.
In addition, you can barter services. It may seem old-school, but you can exchange your services for initial setup help, which includes anything from manual labor to web design and marketing.
Use Business Anywhere
Starting a business can be a costly endeavor, and we’re not only talking about the logistics. Simply registering a company can take huge chunks out of your bank account, and you can’t afford that right now.
Thankfully, we at Business Anywhere offer a free business registration service. All you have to pay are the state fees, which can range from $40 to over $500, depending on where you create your company and which business entity you choose.
Get Creative to Start Your Dream Business
Knowing how to start a storage unit business with no money can easily give you hope if you want to be an entrepreneur, but don’t have the starting capital.
As you can see, you don’t need to front the money yourself, and many small business owners don’t do that anyway. If you start small, leverage partnerships, and use the other strategies in this post, then you’ll be able to get your storage unit business off the ground with little or no money upfront.
Sign up now with Business Anywhere to use our free business registration service. We also have other affordable services you can add on later, such as virtual mailboxes.
