The portable storage business is one of the most profitable businesses in the country. Although it has its own challenges, it offers a myriad of opportunities for people who would like to earn extra money or quit their full-time employment completely.
Traditional storage appears to be limited in some way. That’s probably the reason some of the current business owners are changing their business models to take advantage of the existing opportunities. Portable storage is lucrative considering the premium rental rates being charged.
Nonetheless, every business that generates good profits comes with its own share of challenges. The same applies to portable storage. It requires commitment and a high level of attention for everything to run smoothly.
Here are tips on how to start a portable business:
1. Develop a business plan
Just like any other business, portable storage requires a clear business plan on how the business will operate. A business plan will give you the direction in which your portable storage business should take. For example, it should have a mission statement that clearly stipulates why the business exists.
You can also use a business plan to lay strategies that will drive your business in terms of growth. The other thing that your business plan should contain is the amount of money required for the daily operations of the business. Last but not least, your plan should indicate the projected revenue – either quarterly or annually.
2. Market conditions
Before starting your portable storage business, it is important to conduct some research on the viability of the business in your area. If there is already high demand for portable storage, then the best thing is to try and see what your competitors are currently doing.
The demand for portable storage services will be based on the population in a particular area. Smaller containers may be perfect for places that are crowded whereas larger containers can serve rural areas better. Understanding your population will help you to determine which business model to adopt.
3. Estimated costs
The cost of starting a portable storage business will depend on a number of factors. In fact, containers may turn out to be your biggest investment. Although they might be expensive to purchase, it won’t take a long time before you recouping your capital. It is, therefore, better to invest in spacious and durable containers compared to cheap ones.
Wood crates generally don’t last for long compared to steel or plastic containers. Besides, they can be stored outside without tarps and transferred to desired locations by specialized trucks. Additionally, you should also factor in the cost of land or warehousing.
4. Market your storage business
There is no business that can succeed without proper marketing. As soon as you have everything in place, come up with marketing strategies that will attract clients to your business. Remember you are not the only one doing portable storage in your area. That’s why you should employ marketing strategies that will give you a competitive advantage.
5. Have a back-up plan
When getting started with your portable storage business, you may be having just a single truck. But what will happen if it gets stalled? Or if your driver has an emergency? It is important to make arrangements to take care of any emergencies. You don’t want the operations of your business to come to standstill because you didn’t prepare.
6. Legal permits and insurance
You can’t do a portable storage business without the necessary permits and licenses from relevant authorities. Ensure that your business meets all the legal and insurance requirements to avoid running into trouble with state and federal authorities.