Nationwide — As the population continues to rise exponentially, so does the need for personal and corporate storage. People will always need a place to store their belongings, and companies will always need a place to store their inventory. This inherent societal need represents a money-making opportunity for any ambitious entrepreneur who is willing to do a bit of research. More specifically, here are 4 reasons why many black entrepreneurs are gravitating towards the storage and warehousing industries:
1. High Demand and Relatively Easy Entry
While founding a successful storage or warehousing company will certainly require an initial investment, other than covering the cost of buying or leasing the facilities, you won’t need to jump through many hoops to get started. You may want to use a platform like Utility Bidder to compare warehousing utility prices. That way, you can use real quotes to estimate your monthly operating costs.
2. Catering to an Underserved Market
In an economic climate where black-owned businesses are often pushed aside (e.g. – the cause of the Byron Allen media lawsuit), establishing yourself as a local option for storage or warehousing can help you cater to an underserved market. Many black business owners prefer to deal with other black-owned businesses, so you’ll have that particular advantage. On the other hand, setting competitive prices is still paramount because we all know that a great deal overrides all other motivating factors.
3. Scalability and Profitability
The straightforwardness of getting into this business means that there’s a certain amount of predictability in terms of where you set your pricing and how much profit you’ll be making. Once your first location starts to do well, you can accurately predict how much it will cost and how long it will take to scale up. This is a great perk for black entrepreneurs who only want to pursue the most sure-fire business models and simply don’t have the time for “maybes.” By knowing your average occupancy and how much you charge for each unit or space, you can estimate your returns with a fair amount of accuracy in comparison to other industries that are more “hit or miss.”
4. Easy Money
Most entrepreneurs would prefer the fastest, easiest, and most abundant route to the money. The storage and warehousing industries provide that kind of convenience because the business can be turned into a turnkey endeavour with the hiring of a few employees. Getting the ball rolling can be as simple as bringing the right warehouse manager on board and letting them take care of the hiring process for the rest of the crew.
Many Markets Aren’t Competitive
If you’re looking in a major city or populous area, you might get the impression that there’s no need for another storage service or warehouse in your region. To find a real gem of an opportunity, you may need to expand your search into other geographical areas where there are fewer competitors. Fortunately, there are still many places where you can make a name for yourself by offering the most appealing rates.