Running a small business means making smart decisions about space and costs. Storage units can be a cost-effective alternative to renting expensive commercial space or warehouse space, especially if you don't need daily access or a large footprint.
Here's how small businesses use storage to save money and operate more efficiently.
Common Business Storage Uses
1. Inventory Storage
Storing product inventory, especially seasonal items, can be much cheaper than renting commercial warehouse space. Perfect for:
- E-commerce businesses
- Retail stores with seasonal stock
- Businesses with overflow inventory
- Online sellers storing products
2. Equipment and Tools
Contractors, tradespeople, and service businesses can store tools and equipment between jobs. This is often cheaper than renting a dedicated shop or garage.
3. Documents and Records
Businesses often need to keep records for years. Storage units provide secure, affordable space for document storage.
4. Seasonal Items
Holiday decorations, seasonal displays, and promotional materials can be stored during off-seasons.
5. Office Furniture and Supplies
Extra desks, chairs, filing cabinets, and office supplies can be stored when not in use.
Cost Comparison: Storage vs. Commercial Space
Example: Small e-commerce business
Needs to store 200 boxes of inventory (about 10x10 unit size).
Option 1: Commercial warehouse space
- Rent: $800-1,500/month
- Utilities: $100-200/month
- Insurance: $50-100/month
- Total: $950-1,800/month
Option 2: Storage unit
- Rent: $100-150/month
- Utilities: Included
- Insurance: $15-25/month
- Total: $115-175/month
Savings: $835-1,625/month
Benefits of Using Storage for Business
- Cost-effective — Much cheaper than commercial space
- Flexible — Month-to-month rentals, no long-term leases
- Secure — 24/7 access, gated facility, CCTV monitoring
- Scalable — Upgrade or downgrade unit size as needed
- No utilities — No separate utility bills
- Tax deductible — Business storage expenses are typically tax deductible
What to Consider
Access needs
How often will you need to access your unit? Storage units offer 24/7 access, but if you need daily access, make sure the location is convenient.
Climate control
If you're storing electronics, documents, or sensitive inventory, climate control may be necessary.
Size requirements
Make sure you choose the right size. Too small and you'll need to upgrade. Too big and you're wasting money.
Insurance
Make sure your business insurance covers items in storage, or purchase storage insurance.
Best Practices for Business Storage
- Keep an inventory — Know exactly what's in your unit
- Organize efficiently — Label everything clearly
- Use shelving — Maximize vertical space
- Create zones — Organize by product type or season
- Check regularly — Visit your unit periodically to ensure everything is in good condition
- Keep records — Document what's stored for tax and insurance purposes
Tax Considerations
Storage unit rental fees are typically tax deductible as a business expense. Keep receipts and records for tax purposes. Consult with your accountant to ensure you're following proper tax procedures.
The Bottom Line
Storage units can be a smart, cost-effective solution for small businesses that need extra space but don't want to commit to expensive commercial leases. Whether you're storing inventory, equipment, documents, or seasonal items, storage can save you money while giving you the flexibility to scale up or down as needed.
At East Side Self Storage, we work with many small businesses in Winnipeg. We understand business needs and can help you find the right storage solution for your specific situation.