It is good times for the self-storage industry.
Demand for self-storage is rising, and these companies are scrambling to fill demand and build more units, the The Wall Street Journal reported.
Building a new self-storage business can be challenging. But the self-storage business offers plenty of lessons on how to make a steady profit, look for an opportunity and run a business.
Here are five key lessons that any entrepreneur can take from the self-storage industry to apply to his or her own business.
1. Have a strategy for good times and bad.
The key advantage that self-storage units have over other potential real estate investments is that they are recession-resistant. Businesses and people will always need to store things.
During good times, they want to store less valuable things while they buy more valuable equipment. During bad times, they try to store what things they can save.
In fact, self storage is so resilient that during the 2008 recession, it was the only real estate sector that managed positive growth. And while most business models will have problems during a recession, every entrepreneur should try to figure how he or she can build a business so that they will customers during tough times.
Innovation is the best method, but focusing on quality and downsizing when necessary are other important steps.
2. Know what you are good at.
A self-storage business may seem pretty easy to run, but it is still a business. A businessperson can't build a self-storage facility, crack open a beer and wait for the money to flow in.
In fact, self storage isn't that different from any other business. Entrepreneurs still have to sell the business, make sure operations are in order, and keep track of funds.
But as Inside Self Storage pointed out, an entrepreneur probably won't be good at all those things.
As a result, that means that the entrepreneur must hire the right people, but it also means that constant supervision is important.