How to Start a Self-Storage Business in Canada
Starting a self-storage business in Canada requires a lot of work by the business owner. Not only must he create a business plan that will make money, but he also must abide by Canadian business rules. A person who does not focus an equal amount of attention on both of these components will likely be disappointed in his business results.
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Instructions
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Join the Self Storage Association (See Resources). Network with other self-storage business owners in other territories in Canada to get good advice about what kinds of things they did to start up their businesses. The phone number for the worldwide headquarters is (888) 735-3784.
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Research how many self-storage businesses are in the areas you think you may want to build in. Speak with government entities in the province you are in about what kinds of taxes must be paid on income and land use. Find out about zoning laws to know where the business can and cannot be built. All of this information can be obtained at the city hall of whichever Canadian city you are establishing your business.
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Choose a storage unit style and hire a contractor. Depending on the size of the business, it may not take long for the contractor to install the units, particularly because these units are pre-made and often do not need to be hooked up to electricity. A list of contractors in Canada can be found in Resources.
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Buy the proper equipment needed. People who will be using your self-storage business will want to have items like dollies that they can use. Other equipment needed include ladders to reach the higher areas of the storage units and locks for people to use to close the doors.
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Get security. The only way you will be able to convince a person that they should use your storage units is if you can promise them that their items will be secure. Most successful storage units have items like cameras, motion detectors and door sensors. Security companies like ADT or First Alert can provide these services (See Resources).
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Tips & Warnings
Write a business plan. The business plan is a several-page document that discusses the range of services the self-storage business will offer. This document should include budgetary information and outlooks on when a profit will be made. This document is vitally important if you plan to apply for a small business loan.
Wait to hire employees until as close to the opening of the business as possible, so you can get a feel for exactly how many employees you will need.
Canadian business owners are legally required to visit the Corporate Registry website to fill out a Name Approval Request form. There will likely be a charge of less than $50. Business owners in Newfoundland do not need to register the business name.
Apply for a loan. Unless you have the money saved up, you will likely need to apply for a small business loan at the bank. The bank will let you know the documentation that is required to finalize the loan, however it is important to bring to the first meeting your business plan. The strength of the business plan will help to persuade a loan officer that you are a good candidate for a loan.
Register for the Goods and Services Tax and the Harmonized Sales Tax. No business can operate legally in Canada without registering for these taxes.
# Be prepared to not make a profit for a while. It takes time for a self-storage business to gain customers.
