How Much Does It Really Cost to Start a Self Storage Business?

Starting a self storage business might seem like a significant investment, but the truth is, it’s more accessible than you think. With the right planning and a clear understanding of the costs involved, launching your own self storage site can be a profitable and sustainable venture.

At Cleveland Containers, we understand how challenging it can be to navigate startup costs and projections. That’s why we’ve broken down the essentials to help you better understand the process and make informed decisions.

The example figures below are based on a real site currently being evaluated by self storage expert and successful business owner Dean Booty. With his hands-on experience in the industry, these projections provide valuable, practical insights into the financial considerations of starting and running a profitable self storage business.

Initial Setup Costs (Capital Expenditure)

The following are the high level upfront costs required to establish the new self storage site:

• Planning Permissions
• Signage
• Groundworks (if necessary)
• Solicitor Fees
• Utilities Setup
• CCTV Installation
• Lighting
• Access Systems

Estimated Total Capital Expenditure: £45,000

(Keep in mind, many of these expenses can be asset-financed to reduce upfront outlay. Did you know we have a finance partner? Click here to find out more.)

Ongoing Fixed Costs

Once the site is operational, these are high level recurring monthly costs:

• Mortgage or Rent
• Business Rates
• Utilities
• Advertising
• Repayments for Asset Financing (e.g., purchasing 20ft New (One Trip) Shipping Containers in batches of 10)

Estimated Total Fixed Costs: £10,000 per month

Cashflow and Projections

This self storage site may require around 10 months to become cashflow positive. During this time, total negative cashflow is projected to be approximately £28,000.

Here’s a breakdown of the financial outlook:

• Total Cash Outlay: £73,000
• Projected Year 2 Cashflow: £25,000

(This represents a 34% cash-on-cash return.)

Looking further ahead, by Year 4 and beyond, the site will generate an annual net cashflow of around £120,000, offering an impressive 164% cash-on-cash return every year.

Why Self Storage is a Strong Investment

These numbers highlight that starting a self storage business doesn’t require millions in capital. With a clear plan and strategic investment, it’s possible to establish a profitable business with long-term growth potential.

At Cleveland Containers, we’re here to support your journey into self storage. With our BOX+ service we can connect you to the industry's best suppliers to help with everything you need to set up a self storage site. Whether you’re looking to start small or scale up quickly, we can help you achieve your goals.

A big thank you to Dean Booty for inspiring this blog! Dean’s expertise and passion for the self storage industry are unmatched, and his insights have been invaluable in shaping this content. If you’re looking for expert advice and inspiration to grow your self storage business, be sure to follow Dean on LinkedIn and visit his website at mrselfstorage.com. You won’t want to miss his invaluable tips and resources!