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How do I research buying a self storage business

There are a lot of businesses out there. I figure there will always be a need for self storage, no matter what the economy is. I'm wondering about legal ramifications of disposing of personal goods that are abandoned, etc. I trust it is covered in the documentation customers must sign up front. I am more interested in a smaller , rather than larger, business. Is there a guideline on the break even point on how many units to rent/cost per unit. Thanks for your time.

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Answers (8)
Michael Hamlar
Hamlar Enterprises, LLC
Roanoke City County, VA

Pam,

There are many different ways to evaluate the self storage business. We have one available that profits 21,000/month. It is a very lucrutive business and little to no hands on work. Most self storage is evaluated by the land and how many units are avaiable. It is kind of like a lease agreement with a real estate agent. You can charge per square foot of storage. If you're interested in more information please do not hesitate to contact our office.

Regards,

Michael Lawrence Hamlar
President & CEO
Hamlar Enterprises, LLC
Hamlar Business Broker
P.O. Box 3336
Roanoke, VA 24015
Office: 1.800.682.1950 ext 101
Fax: 1.800.682.1950
Website: www.hamlarenterprises.com
Email: mike@hamlarenterprises.com
Skype: MHamlar

Jul 14, 2010
Harry & Sally Vaishnav
Angel Business Advisors
President
Oakland County, MI

Pam

Talking to existing business owners may give you some insight. I also suggest hiring a business broker who can guide you through the process and also advise you on the questions you have regarding financials.

If you are looking for help in preparing a Business Plan or performing Due Diligence to analyze the financial statements of the seller we can help with that. Visit our web site at http://www.angelbusinessadvisors.com/services.htm to get more details. We have worked with number of businesses with great success.

Jul 14, 2010
Terri Bollman-Wyzkoski
MainStreet Bank
Sr. Commercial Lender
Fairfax County, VA

Pam,

Business Lending Solutions LLC ("BLS") will review each possible transaction you identify and consult through the entire acquisition process...from due diligence (including the necessary break-even - it will be different for each business), to providing a letter of intent, to obtaining the required financing. Through our nationwide lender network, we provide financing for any and all types of and size loan requests. We will value the business, identify all possible financing options & expected costs, inform you of the probable terms and pricing, introduce you to the most appropriate lender for your particular financing need, negotiate the very best pricing, terms and conditions, and finally, we will prepare and present a professionally-prepared loan package request that gives you the highest likelihood of obtaining bank approval.

Fortunately for our clients, we do not require payment for our services unless and until we present you with signed lender commitment. Please give us a call is you think we could provide value to your particular situation.

Terri B. Wyzkoski
Managing Member
Business Lending Solutions LLC
11654 Plaza America Drive #363
Reston, VA 20191
Twyzkoski@BusinessLendingSolutionsLLC.com
Direct: (703) 655-9939

Jul 14, 2010
Jessica Hadler Baines
American Business Group, LLC
President
Orange County, FL

I'd also ring up the owners of local self storage companies. Some may open up and give you the low down on their industry and local market performance (real estate, what to look for, how business has been). One or two may even offer to sell.

HOWEVER, if that's the case, hire a good business broker and attorney to value and review the company so you don't end up with a lemon or overpay. Most brokers can analyze your targeted business for a flat fee.

Jun 23, 2010
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Biz2Credit LLC
New York County, NY

Pam,

The best thing to do is to buy an existing business. You pay a premium for buying a well run business but its still better than starting it from scratch. When you buy a business you can check the last 2-3 years financial statements and also check if any legal issues cropped up.

We at Biz2Credit can help you to get acquisition financing as well as help doing a credit check on the business.

Jun 23, 2010
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BKB Properties/Storage Study.com
President
VA

The best way to research your local market is to just do it. Get out there and visit the local stores. Take note of rates and features and ask questions. Maybe try to meet the owners. You may even find an owner wanting to exit their business. You won't know until you try. Each market, and each deal, is unique, so you have to be able to work with specific details of your deal, and your market. Completing a self storage feasibility study, or a market study, will help you identify those crucial measurements in your analysis. Let me know if I can help: ben@storagestudy.com or www.StorageStudy.com 804-598-8742

Jun 23, 2010
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Franchise Advisory Group
PA

Pam, I represent a Franchise called Smart Box Portable Storage. You don't need experience in the moving and storage business to buy a Franchise, since they will provide all the training and support. If you would like more info on this company, please feel free to call me. 888-241-6629.

Apr 16, 2009
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The BAF Group LLC
MD

This is a loaded, detail-oriented question. First, the disposal of personal goods should not really be one of your initial questions; that is an operational issue. That is not to say it is umimportant, but a competent attorney would better answer that, and he/she should be in your area, since local laws and regulations will affect the answer. Second, the remainder of the research issue is also related, to an extremely large degree, to your location. What is the land cost, in your area? What is the competition? What are the competitive rates? What are the homes like, in your area? What is the density of apartments, locally? All of these are crucial to answering your question, and that is not all. In our area, which is the Baltimore/Washington corridor, land costs are the most vital part of the decision making process. The old cliche about land is true: They ain't making any more of it! And here, the scarcity of readily available land makes the price of every square foot extremely expensive. That means that storage unit developers are now forced to limit the amount of acreage they buy, and instead, they build large, multi-level buildings. The cost of construction to go up several floors and the installation and maintenance of elevators is less expensive and easier than buying larger tracts of land. This is why knowing your area is key. My suggestion is that you write a detailed Business Plan, which I know causes people to groan and do anything they can to avoid that task. But it truly is the only way you can try to organize and address all of the key elements in your decision making process, and come to an intelligent decision on how or even whether to proceed. As someone who has done such work for 30 years, I can tell you that the effort is well worth it! If you want to discuss this further, call me (Don Barrick) at 410-715-0700.

Apr 15, 2009

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