Storage auctions offer a fun and lucrative venture with near-limitless earnings potential. From autographed sports memorabilia and collectable vintage dolls, to antique furniture and gold jewelry, you can find just about anything buried within these abandoned storage units. But if you’re looking to get started in the buy-sell storage auction business, you’ll need to first acquire capital. Without capital, you won’t be able to bid on storage units, let alone run a successful business. So, from where can you can acquire capital to run a storage auction business?
One of the easiest ways to acquire capital for a storage auction business is simply use your own personal cash. Some people may turn their heads at the thought of using their own cash, but the fact is that most business owners and entrepreneurs invest at least some of their own cash into their respective business.
Venture Capitalist Firms
Another option is to acquire capital from a venture capitalist firm. Basically, these are investment firms that loan money to up-and-coming businesses in exchange for partial ownership. You are essentially selling a part of your business for the capital. Venture capitalist firms offer a great way to acquire capital for a buy-sell storage auction business, but you’ll have to forfeit a portion of your ownership, which may deter some entrepreneurs from this option.
Of course, another option is to seek capital in the form of a business loan. Buying and reselling the contents from a storage auction is a business — and a very lucrative business. If you’re able to prepare a solid business plan that shows lenders you can and will pay back them back, you should have little-to-no problem acquiring a business loan.
Manage Your Existing Cash Flow
The good news is that once you get some initial funding for your business, you can typically stay afloat by following a smart business model. Storage auction businesses require very little “ongoing” capital. Granted, you’ll need to buy things like transportation, storage overhead, supplies, etc., but that’s about it. So as long as you resell your items for a profit, you can use those profits to keep your business up and running, meaning you shouldn’t need to acquire additional capital from outside sources.
Be sure to check out some of our previous blog posts for more tips and tricks on how to run a successful storage auction business.