Self-Storage Business with Scott Krone.
The Self-Storage Business with entrepreneur Scott Krone – he shares his expertise and tips on investing in self-storage businesses.
Self storage, or self-service storage, is an industry that rents storage space (such as rooms, lockers, containers, and/or outdoor space), also known as “storage units,” to tenants, usually on a short-term basis (often month-to-month).
Scott Krone is a business owner, real estate investor. He is the founder of One Stop Self-Storage, and the founder of Coda Management. Coda Management Group facilitates commercial and real estate investments.
One Stop Self Storage is a regional self-storage company serving communities in Milwaukee, Chicago, Jackson, Toledo, Dayton, and Ellsworth. Soon to be brought online are Louisville and Cleveland.
Scott lives in Northbrook, Illinois.
Self-Storage Business with Scott Krone:
- Please briefly share the story of your early career and what led you to starting your first small business.
- What are the different models or variants of the Self-Storage business?
- Why is the Self-Storage business so popular for investors and small business owners?
- What continues to drive the demand for self-storage units?
(death, divorce, downsizing, and dislocation)
- Is there still room for more self-storage businesses? Are some markets saturated?
- What 3 Mind-blowing Facts About Self Storage Investing?
- Should I buy an existing self-storage business or build my own?
- What are some common misunderstandings people have about this business?
- What are some of the bigger challenges with this business? To start one and to operate it.
- What is the typical capital investment range for a typical self-storage business?
- What is the potential profit margin range for a typical self-storage business?
- What are some of the keys to owning and operating a successful self-storage business?
- Why do you invest in self-storage businesses?
- If someone is considering investing in a self-storage business, where should they start?
Episode Host: Henry Lopez is a serial entrepreneur, small business coach, and the host of this episode of The How of Business podcast show – dedicated to helping you start, run and grow your small business.
Books mentioned in this episode:
[We receive commissions for purchases made through these links (more info)].
- The Road Back to You: An Enneagram Journey to Self-Discovery by Ian Morgan Cron and Suzanne Stabile
- Self-Storage Association – the official trade organization and voice of the U.S. and international self storage industry.
More about the Self-Storage Industry:
The self-storage industry has witnessed remarkable growth, making it an enticing opportunity for small business owners and investors. With its potential for consistent income and manageable operational costs, self-storage facilities have become a popular investment choice.
1. The Growing Demand for Self-Storage:
The self-storage industry has experienced a surge in demand in recent years, driven by various factors such as changing lifestyles, downsizing, and the need for extra space. According to the Self Storage Association, around 10% of American households currently utilize self-storage services. This increasing demand presents an excellent opportunity for small business owners and investors to enter a thriving market.
2. Recurring Revenue and Cash Flow:
One of the most appealing aspects of the self-storage business is the potential for recurring revenue. As a small business owner or investor, you can enjoy a steady stream of income through monthly rental fees. With effective marketing and management strategies, you can ensure a consistent cash flow that contributes to the financial stability of your business.
3. Relatively Low Overhead and Maintenance Costs:
Compared to other real estate ventures, self-storage facilities generally have lower overhead and maintenance costs. The design of self-storage units emphasizes durability and minimal upkeep. This cost advantage enables small business owners and investors to allocate resources more efficiently, maximizing profitability.
4. Flexibility and Adaptability:
Self-storage facilities offer a flexible business model that can be tailored to meet the specific needs of various markets. Whether you target residential customers, businesses, or both, you have the freedom to choose your niche and customize your services accordingly. This adaptability ensures that you can cater to evolving demands and optimize occupancy rates.
5. Professional Management Support:
Managing a self-storage facility requires attention to detail, customer service skills, and effective marketing strategies. Engaging with professional management companies, such as those recommended by the SSA and Coda Management Group, can provide invaluable assistance in areas such as facility operations, marketing, and tenant acquisition. This support can help small business owners and investors optimize their operations and achieve better returns on investment.
6. Networking and Industry Associations:
Getting involved in industry associations like the Self Storage Association can offer access to valuable resources, educational opportunities, and networking events. These associations connect self-storage professionals, allowing for knowledge sharing, staying updated on industry trends, and fostering relationships with like-minded individuals. The Self Storage Association provides a wealth of information and resources that can help you navigate the intricacies of the self-storage business.
7. Embracing Technology and Security:
Self-storage facilities have embraced technological advancements to enhance security and convenience for tenants. Implementing features such as digital surveillance systems, automated access controls, and online reservation platforms can attract more customers and increase tenant satisfaction. Leveraging technology helps streamline operations, improve security measures, and provide a seamless experience for tenants.
The self-storage business offers a compelling opportunity for small business owners and investors seeking a stable and profitable venture. With a growing demand, potential for recurring revenue, and manageable overhead costs, self-storage facilities present a viable path to financial success. By leveraging professional management support, embracing technology, and engaging with industry associations like the Self Storage Association, you can navigate the dynamic self-storage industry with confidence. So, take the leap, explore the opportunities, and unlock the potential of the self-storage business for your entrepreneurial journey or investment
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