When people think of self storage businesses, the storage giants, such as Shurgard or Big Yellow, conveniently located in a busy city, often come to mind. However, there’s a hidden gem that investors are starting to discover: the rural self storage market.
While the countryside might not seem like the obvious choice, there are numerous benefits to starting a self storage business in a village or a town. In fact, the countryside might just be the perfect location for your next business venture.
Lower Land Costs
As expected, the cost of land is less in rural areas. We know city prices can be extortionate, and rural properties are often much more affordable. Opting for a rural location means you can acquire more land for your investment, allowing for future expansions without breaking the bank. It has also become increasingly challenging to find self storage facilities or properties for sale in cities. A wide range of options, such as old farm buildings, or abandoned buildings, can be found in the countryside.
Self Storage Construction Materials
When building self storage units, self storage construction materials and installation costs are often higher in cities like London due to stricter zoning laws and building codes. The funds you save could be allocated to other important aspects of your business, such as improving your marketing strategy or customer service.
Lower Overhead Costs
In addition to lower land and self storage construction materials costs, operating a business in a rural area generally means lower overall expenses. Utility costs and even employee wages are often substantially less compared to cities. These reduced overhead costs can improve your profit margins – boosting your overall financial performance.
Less Competition
Cities are often saturated with self storage facilities. It’s a regular occurrence for two or three competitors to be located on the same street in London! This makes it challenging to stand out and attract new customers. In contrast, rural areas often have fewer self storage options, providing a golden opportunity to fill a gap in the market.
Strong Community Support
Villages and smaller towns are known for their strong sense of community and support for local businesses. By starting a self storage business in a rural area, you have the chance to become an integral part of the community. Building relationships with local residents and businesses can lead to word-of-mouth referrals and a loyal customer base. This leads us to our final point…
Word-of-mouth Marketing
Businesses often spend a fortune on marketing. Rural self storage facilities rely heavily on word-of-mouth marketing, meaning that as an operator, you don’t always have to fork out your savings for a new marketing campaign. When you provide excellent service and build a positive reputation, your customers are likely to spread the word to their friends, family, and neighbours. This organic form of marketing is incredibly powerful cost-effective and often, overlooked.
Want to discover more benefits? Hear first-hand from our customers who have set up facilities across the UK.
Are you a new self storage operator? Find out more about The Self Storage Association.
Resources:
Starting a Self Storage Business in 2024.
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