You are in the process of financing your self-storage facility. Have you thought about a business plan yet?
You have options for the management of your new facility. You can choose to manage the facility yourself, hire a manager, have a kiosk or some other technology to fulfill this role or even use a third-party property management company.
Regardless of what you decide, developing a plan that includes details about how you’ll manage your property is crucial. This needs to be decided early on in the process, even before the actual purchase.
Management is an area of your business that will make or break you. It can determine whether your business will make money, lose money or break even. Don’t take this decision lightly, because your success–and the success of your self-storage business–will depend heavily on it.
If you have never managed a facility yourself before, there are companies out there that will train you and your staff on how to operate and manage a self-storage facility properly. At Live Oak Bank, we have the tools and relationships needed to introduce you to these companies. You can also take advantage of educational opportunities at trade shows, state shows and other industry events that feature helpful information about successfully managing a self-storage business.
We also recommend that you find out about your state’s self-storage association–and join it. Most of these associations are well-run and can offer you many benefits and advantages such as training, education and political representation for things like sales tax, code issues, etc. Many of the state associations also provide you with a lease agreement that is written specifically for your state by an attorney. This alone is often worth many times the membership fee.
Now that you’ve found the right facility for you, determined its value, completed your due diligence, explored your financing options and put careful thought around your business plan, you’re ready to go out there and do the work necessary to buy and operate it successfully. Then, you could even do it again.
Our team at Live Oak would love to be part of your success story. Let us know how we can help, whether that be through financing or advice. We have decades of experience in the industry–which also includes ownership–so we may be able to help you in some way throughout your journey to self-storage business acquisition. For more information about our financing options for the self-storage industry, visit our website or view additional resources.