Baby Boomers Cash In With Self Storage Business

Along with the twenty first century came the baby boomer retirees. And instead of traveling around the country in their posh RVs and puttering their time in 18 holes at the golf course, many are starting their own businesses. The self storage business is a good fit for many of them.

After working for 30 or more years these people suddenly want to work for themselves. The average age of someone likely to begin a new business ranges from about 55 to 64 years of age. These people are ready and have the money and experience to be their own boss. They have the contacts built up from years in the workforce.

This business is a good investment for these baby boomers. It is relatively low in risk, with a high reward. Some of the rewards are below:

There is a good chance for success. The self storage business has a low failure rate, about 8 percent where many commercial real estate ventures have a rate of 50 to 60 percent, a rate nearly six times as high.

The loan can be paid off quickly. The average occupancy of these buildings is around 80 percent. Even with a loan against your land, material, the construction and everything else, you should be able to pay your entire loan off within six years.

You can manage the business yourself. The low maintenance might require you to hire one or two others for the day to day upkeep of the business, but most of the management can be done by you. After working in corporate world among thousands of others, the minimal workers you have might just be a blessing.

The self storage business is a growing industry in demand. It is one of the fastest growing areas of commercial real estate for at least 30 years. Revenues in 2006, for major facilities were on average over 400,000 dollars per facility.

All new businesses are risky. Those risks should be taken into account before taking the sinking any money into the venture. The risks of this business are lower than much other start up commercial ventures. Familiarize yourself with the self storage business in general.

Success in this business may look easy, requiring an empty building and a simple security system. But to be successful, the would be entrepreneur should develop a business plan that includes these risks as well as how they plan to market and grow the business. You should address your advertising plan, employee pay and lots of other issues related to continued growth. Write your plan to help get your startup funds and guidance for your workers.

There is no guarantee the business will survive, but with such a low failure rate, this enterprise is more secure than many investments.

It is not only a safe industry, but has steady growth and high demand. Many different people need places to store their goods. Businesses might need space for extra office supplies and equipment. Students returning home for the summer need to store their things when they go home for the summer and the military personnel use the space for their stuff when they are overseas. Even the homeowner uses the extra space to store their overflowing belongings.

The low risk and initial investment makes a self storage business a perfect retirement career for the baby boomer.

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Disclamer: This entry is intended to promote our partner StorageMart and some or all participants received compensation.

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