Containers vs Bricks and Mortar

Discussion in 'Building a Property' started by Michael Carter, Aug 25, 2017.

  1. Michael Carter

    Michael Carter Administrator

    While a lot can be said for building any business from the ground up, Self storage I feel requires planing from the outset. Property, land, Location, Competitors, Software etc, but these are just some of the factors you need to take into consideration when building a self storage business from scratch.

    Personal I've developed both Containers and Bricks and Mortar business models, and for peace of mind, I prefer Containers for a passive income, and a building for a more diverse retail product range.

    Containers:


    • Shipping Containers can be the most cost effective way to build your first self-storage business. You need only the land to place them on, the security to protect them, and the software to run your business. Obviously marketing and obtaining clients is also required, but is with any business.
    • Container sizes vary these days with the introduction of 8ft, 10ft, 20ft and 40ft containers. These offer business an appeal to a wider demographic of clients. Commercial, Residential and even Students.
    • Moving your Containers is always an option to maximise your returns, but depending on your property size and location. I've found long term clients who don't want or need to access their containers are happy for them to be buried to the back of the yard, or stacked vertically if space allows for it. To achieve this you need a Fork Lift able to lift over 5 tonnes, and while this may not be practical for everyone, those with the space should think about this as a viable option.
    Bricks and Mortar:

    • Existing Buildings are always a challenge, unless they have large open spaces to build units inside of a way to allocate space for the deployment of storage units.
    • Warehouse and Factories offer a great amount of space a new business can grow into, but with many outside of high traffic areas it will require more marketing to attract clients. The best thing is most properties like these have height, which allows you to potential double your space by building up.
    • New Builds are fantastic if you have the funding to build your own centre, and with technology in evolving all the time, a new centre has the potential to be automated completely.
    container-storage1-300x225.jpg 8a.jpg





    Retail Products are also a great source of additional revenue, and when done well, can provide a point of difference to competition. with e-commerce and apps being integrated inside of storage technology selling related products is even simpler.
     

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