A self storage feasibility study is a great opportunity for current and aspiring self storage owners to guide new builds and conversions. By performing a market feasibility study, you can uncover the market potential for your self storage facility before making the transformation.
Of course, who performs your study is critical. An experienced self storage consultant will know what to look for, how to evaluate the data, and what it means to you.
The information from feasibility studies is critical in helping you move forward with your business in the self storage industry. Learn the importance of performing a self storage feasibility study using an experienced self storage consultant, and what factors you should consider when conducting your analysis for a new build or to convert an existing structure into a storage facility.
What Is a Feasibility Study?
A feasibility study is a thorough examination of the potential financial, operational, and market viability of a proposed business venture. This type of analysis helps inform business owners about the risks and opportunities associated with their proposed venture, as well as the estimated cost, projected returns, and possible net operating income.
When it comes to self storage conversions or new builds, a feasibility study can help you better understand the market potential for your proposed facility. Factors such as the demographics of your target customer base, demand analysis, competitive landscape, and local economic conditions can all impact the success of your self storage business before you go through the effort of converting a building or breaking ground on a new site.
To perform a thorough feasibility study, you will need to gather data from a variety of sources. This includes industry reports, market trends data, and surveys.
What is The Most Important Element of a Feasibility Study
There is no single "most important" element of a feasibility study, as this will depend on the specific needs and goals of your business.
However, some key factors to consider include market research, data analysis, and competitor analysis. By taking these elements into account, you can gain valuable insight into the potential success or failure of your self storage facility.
Why Conduct a Feasibility Study for Conversions
There are many benefits to conducting a feasibility study for conversions. With the right information and analysis, you can make informed business decisions that ensure the success of your conversion project. Some benefits include:
- Identifying market demand and potential for your proposed self storage facility.
- Determining the feasibility of adding new features or services to your existing facilities, such as climate control or enhanced security.
- Gauging customer satisfaction levels with your current operations, so you can make improvements where needed.
- Determining the feasibility of expanding your business to a new location or market area.
- Understanding local competition.
By conducting a feasibility study, you will gain valuable insights into the viability of your proposed venture, helping you make informed decisions and maximize your chances of success.
Additionally, if you are working with a lender, an investor, or developers, they may require you to complete a self storage feasibility study. Who does your feasibility study matters to your lenders and investors as well. So use an expert self storage consultant throughout the planning process. Doing so will help you gain insight into your future self storage tenants, set up operations appropriately, and guide your marketing plan.
Bonus Benefit: Guide Your Marketing Plan
If you can understand your market and the audience demographic you'll be targeting, you can tailor your marketing and messaging to the right people. Then, you can create a more personalized, custom approach to generating leads.
Research shows that 74% of customers are frustrated when website content is not personalized, and 91% of consumers are more likely to shop with brands that offer a personalized experience. Your target audience is expecting a personalized advertising experience, so use your feasibility study to inform your marketing strategy while you are developing it, to give you a boost over your competition.
What a Feasibility Study May Uncover About an Existing Property
A self storage feasibility study can uncover a wide range of information about your existing property, including key market insights and operational considerations. Some of the factors that may be evaluated in this type of market analysis and that you can uncover in a feasibility study of ongoing operations include:
- Demographics of your target customer base including age, income level, occupation, etc.
- Drive by traffic, which many self storage companies rely on to attract customers, even in this digital age.
- The competitive landscape for local self storage facilities, including rental rates and pricing, features and services offered, customer satisfaction levels, etc.
- The recommended unit mix.
- Local economic conditions such as unemployment rates, average income levels, population growth trends, etc.
- The costs and returns associated with your proposed project, including construction costs for your development.
- Potential new features or services you could add to your facility to increase its appeal and profitability.
- Whether expanding your business to other markets or locations is feasible.
A feasibility report will help you determine all of the risks and rewards of your self storage business venture by offering a variety of scenarios to evaluate. With a thorough self storage feasibility study, you can gain valuable insights into the potential of your existing property for a conversion project or a new build, helping you make informed decisions about your next steps.
Protect Your Revenue
Of course, once you’re in operation, you’ll want to maximize revenue and minimize expenses. Storelocal members keep 70% of the revenue they collect from protection plan sales, no matter how many self storage facilities they own and operate. Facilities equipped with Nokē Smart Entry technology keep 75%. This way, you can keep more of your money instead of sending it off to insurance companies or protection providers.
It's just one of the many perks of the Storelocal Protection Program. Learn more about how the Storelocal Protection Program can increase your asset value and help you make more money.