Reselling Storage Unit Finds: How to Develop a Strong Business Plan
Summary
Earning a decent income by bidding on storage unit auctions and selling their contents is possible. People all over the country do it. But as with any business, maximizing your income is easier when you approach it with a good business plan in place.
Purchasing and reselling storage unit finds is what we are all about at Lockerfox. What we represent to our customers is a fantastic opportunity to build an exciting and profitable side hustle, or even a primary income-producing business. But like any business, taking full advantage of storage unit auctions relies on developing a strong business plan.
Creating a business plan begins with understanding the business model. Once you understand exactly how it works, you can plug the bigger idea of bidding on storage auctions and selling what you find into your actual goals for running a business. It is classic entrepreneurship at its finest.
If you are ready to get started, there is an endless supply of live and online storage auctions waiting for you. Bid on your favorite units, sort through your acquisitions, and start selling on eBay, Facebook Marketplace, and even at flea markets.
The Basic Business Model
The business model behind selling storage auction finds is easy enough to understand. You are looking to purchase things other people leave behind in storage units they have failed to pay rent on. Some of what you find will not have any resale value. But you are also likely to find items you can get good money for.
Three key elements define the business model:
- Buying Low – Because there are no guarantees you will sell everything you find, you need to be able to acquire storage units for the lowest possible price. It’s like how investors approach the stock market. The idea is to buy low and sell high.
- Valuing Items – In order to sell high, you must understand the value of what you have purchased. Therefore, the second aspect of the business model involves learning how to research and properly assess value. As you learn how to value items, you should also be able to refine how you bid on auction units.
- Identifying Trends – The third and most critical part of the business model is learning to identify trends. The demand for most items sold on sites like eBay and Facebook Marketplace ebbs and flows. You need to pay attention to what is trending at any given time in order to bid wisely.
New entrepreneurs should be prepared for a learning curve. It’s very hard to get into storage auctions and start turning a strong profit on day one. Truth be told, it is possible to lose money on those first few auctions. But as you learn the lay of the land, so to speak, a combination of experience and knowledge gained should help you turn the corner.
Develop a Business Plan First
As an organization specializing in online storage auctions, we want to see all our customers succeed. To that end, we know how important developing a business plan is. A business plan is essentially a strategy for success. It is thought-out, deliberate, and reasonable. Most importantly, it is written down.
There is no black-and-white formula for developing a business plan. Your plan can contain whatever information, parameters, and objectives you choose. That said, a typical business plan includes the following:
1. Executive Summary
The executive summary is more or less a description of your business, its purpose, and your goals for it. So you are going to start a business that involves bidding on storage auctions and reselling as much of the storage unit contents as possible. Your purpose is to earn some extra income. Finally, your goal is to earn enough to pay for things your full-time job will not support.
2. Market Research
A solid business plan includes at least a basic level of market research. You might go online and dig around to find out what people typically store in off-site storage units. Assuming you would find most of these items in storage units at auction, you then research how often such items are sold on eBay, Facebook Marketplace, and other platforms.
The point of this research, and writing it down, is to give you an idea of what you are getting yourself into from a financial standpoint. You need to know what the market potential is so that you can move to the next step of your business plan: budgeting.
3. A Basic Budget
A solid business plan includes a basic budget. Note that budgets change every year. What you put in your business plan is just a starting point. Be sure to account for any cost you think you will incur to run your business. Consider how much you are willing to pay per auction along with costs for storage, workspace, seller platform fees, and even marketing.
4. Pricing Strategy
Next up is a pricing strategy. This explains how you will determine pricing for each of the items you intend to sell. You are not setting prices here. You are just writing down the method you will use to establish prices later on.
5. Sales Strategy
Writing down your sales strategy is a good idea because it helps you think through how you plan to sell what you buy. Maybe your primary target will be eBay. Perhaps you will sell at a local flea market. Maybe you’ll combine both flea market and online sales. The point is to think it through before you start bidding on storage units.
6. Goals and Milestones
Finally, your business plan might include a set of goals and milestones. Like your budget, these things can evolve over time. The point of adding them to your business plan is to establish a roadmap of sorts. With each milestone reached and goal fully achieved, you are further along the road to success.
Remember that writing your business plan down is crucial. That way, you can always refer to it when you feel like your business is not performing the way it should. Just know this: whether you are looking for a side hustle or are hoping to build a full-time income from storage unit auctions, success comes easier with a plan in place.
FAQs
What is the first step in establishing a storage unit resale business?
We recommend researching the business model and then creating a detailed business plan. With a plan in place, success should come easier.
Why is writing my plan down important?
Writing a business plan down will encourage you to think things through. It will also give you a document you can reference if you feel like things are off track.
Where can I find storage auctions to bid on?
You can probably find storage sites in your local community that hold auctions on a regular basis. You can also sign up with Lockerfox to find auctions all over the country.
Can I bid on auctions outside my local area?
Yes. You are free to bid on auctions wherever you like. But if you win a storage unit that isn’t local, you’ll either have to travel to pick up the items or hire someone to clean out the unit and ship the items to you.
