Mobile self-storage industry really on the move

By Michael McAlhany

The $40 billion dollar mobile self-storage industry is changing the way American consumers and businesses safely transport and store possessions as it straddles two rapidly growing sectors of the U.S. economy: moving and storage. What began as a unique way for traditional storage facilities to differentiate themselves among competitors in the marketplace, has now spawned an industry revolution that has created a recession resistant business opportunity for investors.

With nearly 41 million Americans throughout the nation moving into new cities each year and the rise in home foreclosures at an all-time high, the residential housing market is a prime example of the business opportunities that exist in the mobile self-storage industry. Plus, with commercial and industrial businesses downsizing and new infrastructure projects created under the economic stimulus package that will result in demand for secure, onsite construction storage containers, the need for mobile self-storage solutions is on the rise.

For new investors seeking to enter the mobile self-storage market or for existing investors wanting to expand and diversify their portfolios, buying a franchise in this industry can provide for a promising business opportunity in the growing mobile self-storage industry.

New to the Industry: Investing in a Mobile Self-storage Franchise

Franchise systems allow investors to utilize an operational platform that is backed with the knowledge and expertise of experts in the industry. Instead of having to “reinvent” the wheel, a franchise business provides a new owner with the tools and resources to focus on getting the company up and running. As a franchise owner, you also have a talented peer-to-peer networking group, as in other business owners within the system to rely upon and bounce ideas around with on a regular basis.

For example, at UNITS Mobile Storage, for an initial investment starting from $350,000, including an initial franchise free of $75,000 per territory, franchisees are provided with a wide range of support tools that includes comprehensive training programs, help with financing, advertising, marketing and public relations support as well as strong brand name recognition in the mobile self-storage industry. Our franchise owners are involved in weekly “seminar sessions” where they can ask advice and give insights. With that extra support, our franchise owners are armed with the necessary tools to effectively run the business.

How to Find the Right Mobile Self-storage Franchise Opportunity

Many factors come into play when one is choosing the right mobile self-storage franchise opportunity. With several franchise operators in the marketplace, it can be hard to determine which is the best concept to invest with, but it can be made easier in small steps.

First and foremost, an interested franchise investor must thoroughly research the business opportunity, understanding the demand for their service or product and competitors in the market place. Here are several questions to ask as an investor:

• How many storage and moving facility operations – both mobile and traditional storage/mover facilities – are in my area and surrounding areas?

• Are there areas with large numbers of multifamily dwellings? (Condos, apartment buildings, small houses)

• What is the business landscape? (Industrial, commercial)

• What is the age demographic of the area?

Performing due diligence and finding out where the competition is hiding in the local market can save investors time, frustration and money, as well as provide much needed insight on where the demand is for self-storage solutions. For example, if the market is oversaturated with traditional storage facilities, it may be a great opportunity for a business owner to enter the market with an enhanced mobile self-storage concept.

It is only natural to want to open a business where there is an abundance of customers from a variety of industries. Opening a mobile self-storage facility in a rural town might not be the best location; however, towns such as these can still be serviced from a nearby area with ample customers.

As with all investments, it is important to compare and contrast all viable options when it comes to researching franchise opportunities. Remember, no two franchise systems are alike. Here are some questions to ask when identifying the right business model for you:

• What is the image of the company in the industry and what are customers and business owners saying about it?

• Who is leading the company? A novice, a longtime franchise expert, an expert in mobile self-storage?

• What support tools does the franchisor provide?

• Is it possible to have a full-time manager run the business?

• Is the business model simple and easy to operate?

• How large of a territory can I purchase? How many potential clients will that give me?

As with anything, a business owner needs to find a franchise model that best fits with their lifestyle and professional goals. As the mobile self-storage indsutry continues to remain heavily influenced by today’s consumers and the demand for affordable convenience, their has never been a better time to jump aboard an industry that is setting the standard for the way people and businesses move and store their belongings.

Michael McAlhany founded UNITS Mobile Storage in 2003. The chain is a mobile storage company offers door-to-door mobile storage. UNITS Mobile Storage has more than 30 territories operating throughout the nation with several signed development agreements to open in 2009. The company projects to open more than 25 locations in 2009 throughout Boston, New York, Baltimore, Illinois, Indiana, Florida, Texas and Colorado.