Mobile storage is a wise investment that can generate a handsome profit for savvy investors. With millions of Americans on the move every year, it is a recession-proof opportunity that can provide a strong foundation for your portfolio. As with any investment, it’s important to clear the air about the costs and requirements of operating a successful enterprise.
Myth #1: The Costs are Prohibitive
Land, physical facilities, and mobile storage containers are not cheap, but they’re not expensive, either. Most land for self-storage facilities will cost under $7 per square foot, and storage structures will run in the neighborhood of $26 per square foot to construct. The cost for mobile containers varies considerably. 16′ containers made of aluminum can run $4,400 while similar 20′ containers can cost $5,000 or more. Containers come in all shapes, sizes, and quality. When choosing containers, it is important to strike a balance between cost and construction.
Myth #2: The Market is Saturated
The mobile storage business is growing rapidly. There are currently 54,000 self-storage operators in the United States, but only a small percentage offer mobile options to their clients. As consumers seek ever easier ways to move and store their possessions, the mobile self-storage industry has plenty of room for growth. Right now, there are roughly 8.32 square feet of storage space for every American. That is less than the size of a single closet and shows that there is plenty of room for growth within the industry.
Myth #3: The “Big Boys” are the Competition
While a few large operators, such as PODS, have considerable visibility, they are not the primary competitor you will be up against. While PODS planted the mobile storage concept within the mainstream, mom-and-pop operators are giving the industry wings. Today, the majority of mobile storage providers operate small- to medium-sized operations that have the ability to offer the lower costs and faster service.
Myth #4: Failure Rates are High
Year after year, self-storage is ranked as one of the safest and most profitable investments. It does well when the economy is good, and it does even better when the economy sputters. As with all businesses, the success or failure of the endeavor boils down to planning, execution, and dedication. Those who are dedicated to building a solid mobile storage business will find that the sky is the limit to their ambitions and profitability. The industry is growing by leaps and bounds. As Americans become more mobile, the demand for mobile storage solutions will continue to expand.
Myth #5: Location Doesn’t Matter
The location of your self-storage facility will have an impact on your success. The first choice is your business region. You will want to select a region where there is a solid need for mobile self-storage services. Locations near military bases, universities, industrial centers, etc. provide ample opportunities for finding clients. Moreover, it’s important to locate your facilities near major road arteries, which facilitate the transport of containers from point to point, wherever your clients need you to transport them.
Once you cut through the myths, it’s easy to see why mobile storage is one of the best investment opportunities in the world. Low barriers to entry, manageable levels of competition, and solid industry performance provide a foundation for profit that you can bank on. For individuals seeking an opportunity to build a successful business from the ground up, mobile self-storage is an industry where anything and everything can be achieved with a solid work ethic and a little bit of elbow grease.