The turn of the century brought with it another turn: that of the baby boomer generation into retirees. However, retired boomers aren't spending their free time puttering around the country in RVs or taking in 18 holes on the golf course. Rather, they're starting their own businesses.
According to a 2006 study by the Ewing Marion Kauffman Foundation, people between the ages of 55 and 64 were those most likely to start up a new business. Many boomers built a huge network of contacts over their years in the corporate world, which they can use in the post-retirement world to enhance their own businesses. And after spending so many years working for corporations, many are ready for a chance to be their own boss while doing something that they love.
Growing right along with the number of baby boomer entrepreneurs is the self storage industry. It's been the fastest-growing sector of the United States commercial real estate industry for the past 30 years. In 2006, gross revenues for primary self storage facilities were $22.6 billion – an average of $441,208 per facility.
For boomers with an entrepreneurial itch, getting started in the self storage industry could be the perfect outlet.
Self storage has a good chance of success
Any new business is risky, and those risks have to be accounted for before taking the plunge into entrepreneurship. However, self storage steel buildings have a better track record than other start-up commercial ventures.
According to an in-depth study by National Development Services, Inc. of the performance of multi-family, office, retail and self storage developments in Texas, Oklahoma, New Mexico, Colorado and Louisiana, self storage steel buildings have a failure rate of about 8 percent, while other real estate ventures have a failure rate nearly six times that amount.
No business is a guarantee by any means, but with a failure rate of only 8 percent, self storage buildings are more secure than many other small business investments.
It's not a huge initial investment
Compared to other new businesses, you're also looking at a smaller initial investment with self storage steel buildings. If you consider an 80 percent occupancy rate, which is about average, then even including the purchase of the land, you could still have your loan paid off in about six years. That's considerably less than other small businesses.
Plus, self storage buildings don't require a huge staff to maintain upkeep. Most likely you'll just be managing yourself and a couple of other people. That way, the hiring process won't be a headache.
Self storage: Make it your industry today
Self storage is not only a stable industry, but a steadily growing one, with demonstrated demand. Businesses require storage for surplus office supplies or equipment while moving. College students need storage when they go home for the summer. Military personnel need storage for their belongings while they're overseas. The possibilities are absolutely endless.
With relatively low risk and initial investments, it's one of the best "retirement careers" available for boomers who've been bitten by the entrepreneurial bug.
Darren Newberry is the general manager of American Steel Buildings, one of the largest self storage steel building suppliers in the Midwest. American Steel Buildings has a proven track record of outstanding customer service. Let them help you get started in self storage today by visiting
http://www.gosteelgo.com for a free quote.
