• Starting a Mini Storage Business

    Getting Ahead of the Breakeven Curve

Investing in a Mini Storage Business

Scott Schwartz, originally from Minnesota, was brought to Thermopolis, Wyoming, under difficult circumstances. He moved to assist his ailing father in his final days. When his father passed away, Scott was fortunate enough to be left with a share of his father’s stock portfolio. Scott, unable to work himself due to health problems, was grateful to inherit the stocks, but was skeptical of leaving the money in the market. He was confident he could put that money to better use, and with a need for income, he decided to invest in a mini storage business.

Project Details

Building Size 40 x 200 x 8.5
Wall Color Light Stone
Trim Color Rustic Red
Roof Color Galvalume
Roof Pitch 1:12
Location Thermopolis, WY
Project Consultant Stephen Birrittella
Project Coordinator Jonah Goldman

Helping Scott Start a Mini Storage Business

Scott began his communication with our support team through the General Steel chat widget in August of 2014. The chat window is a quick way receive answers to frequently asked questions and direction towards one of our in-depth resource pages that explores topics such as the American mini storage industry. After considering starting a mini storage business for around a month, Scott inquired about one of our current sale buildings and began discussing his project with one of our Project Consultants.

After collaborating with our team, Scott decided to purchase a 40×200 mini storage building in late September of 2014. This was an ambitious move. First-time owners typically start a mini storage business with a 15×130 or 30×100 building, but Scott was confident he could fill the space. Channeling his inner Ray Kinsella from Field of Dreams, Scott stated: “If you build it, they will come.”

40x200 Mini Storage Package
40x200 Mini Storage Building Package

Working with General Steel

Over the next several months, with the help of his Project Coordinator at General Steel, Scott obtained all of the required permits and other pre-construction releases before commencing construction. While working with your local municipality can be a challenging process, Scott found erecting his General Steel building to be extremely easy. In fact, Scott was able to complete the erection process in about a week and get his business up and running in November 2015.

So far, his confidence in purchasing a larger mix of mini storage units is being rewarded. When we checked in with Scott a year after opening his business, he let us know he has filled nearly half of his units with renters. This pace is ahead of the typical 36 months it takes a mini storage business to stabilize and reach the national average occupancy rate of 87 percent. And while he still has a long way to go, Scott is pleased with the quick progress his business has made and is optimistic about expanding in the future.

Stoweaway Mini Storage Buildings

Why Scott's Mini Storage Business is Successful

Here are a few factors that influence the success every self-storage business.

Growth in the Mini Storage Industry

For more than 35 years, the mini storage industry has seen significant growth. As the population continues its trend toward downsizing and renting, vacancy levels are at all-time lows as people simply need more space for their belongings. This is resulting in higher rent and higher profits for mini storage business owners.

Strong Initial Investment

Scott opted for a bigger building, choosing to build a 40×200 instead of the more common 20×100. With the affordable prices of steel buildings, Scott was able to get more out of his investment while allowing for future growth.

Efficient Construction:

Scott was looking to establish a reliable income with what was left from his father. The ability to quickly erect a building allowed Scott to get his business off the ground in a relatively short amount of time.

Easy to Expand

The versatility of prefab metal buildings gave Scott the potential to expand his business in the future. Not only can he expand upon his existing storage units, General Steel designed the building with removable doors to accommodate the needs of various customers. This simple yet effective forward thinking design decision allows Scott to change the size of the storage units that make up the unit mix.

J. Taul, Hardinsburg, KY
“I made my first mini-storage building purchase in spring of 2009. General Steel Corporation helped lead me in the right direction for my storage business to be a success. My business has grown each year and I have made a mini-storage building purchase every year since 2009.”
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Success Stories
How Long Does it Take to Breakeven?

According to nationalrealestateinvestor.com the average mini storage business takes around 36 months to reach average occupancy levels. This timeframe has decreased by 25% from the previous standard of 48 months.

Self Storage Business Plan

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