Can You Run a Business from a Storage Unit?

Running a business from home has its challenges, especially when your spare room starts resembling a warehouse and your partner can barely squeeze past towers of inventory. Small business owners are increasingly turning to self storage as a practical solution, but can you actually run a business from a storage unit?

The short answer is: it depends on what you mean by “run a business.” While you can’t exactly set up shop with customers dropping by for a chat and carry out day-to-day business operations, self storage units have become game-changers for many entrepreneurs who need space for business equipment without the hefty price tag of commercial premises.

Business Types That Work Best with Self Storage Units

Think of storage units as your business’s backstage area – perfect for everything that happens behind the scenes, but not suitable for the main performance.

Online Retailers and E-commerce Sellers

Online businesses make up the biggest chunk of storage unit users. eBay sellers, Etsy shop owners, and Amazon FBA traders have discovered that these spaces work brilliantly for managing stock, packing orders and to store excess inventory. Instead of converting their dining room into a makeshift warehouse, they can keep business and home life separate while still maintaining easy access to their inventory.

Tradespeople and Service Providers

Tradespeople have also jumped on this trend. Rather than leaving expensive tools in vans overnight or cluttering their homes with equipment, they’re using storage units as secure, organised bases for their gear. It’s like having a mini-workshop that’s always locked up tight.

Market Traders and Seasonal Businesses

Market stall holders and car boot sellers find these spaces perfect for storing seasonal stock. Christmas decorations in January? Wedding favours in March? No problem – everything stays organised and ready for the next selling season.

Photography businesses, sports clubs, and even theatre companies use self storage units for equipment and props. The common thread? These businesses need space for their stuff, but they don’t need customers walking through the door.

What You Can and Can’t Do

Here’s where things get interesting – and where you need to pay attention to the fine print.

Most storage facilities welcome business use, but they’re quite specific about what that means. You can store stock, business documents, equipment, and raw materials. Packing orders? Absolutely fine. Organising inventory? Go for it. Using the space as a storage and fulfilment base works well for many sole traders, though don’t expect to run it as a full office or meeting space.

But here’s what you can’t do: you can’t have customers visiting your unit, and you generally can’t bring employees along either. This keeps storage units firmly in sole trader territory. You also can’t trade directly from the unit – think of it as your stockroom, not your shop floor.

These restrictions are typically outlined in facility contracts, which follow industry standards set by the Self Storage Association UK. Breaching these terms could result in termination of your agreement, so it’s worth understanding the specifics before you sign.

Some facilities get picky about certain equipment too. Power-hungry devices like laptops for extended periods might raise eyebrows, and anything flammable is definitely off the table. Each facility has its own quirks, so it’s worth having a proper chat with them before you sign anything.

The truth is, you’re not really running a business from a storage unit – you’re using it to support your business. It’s a subtle but important distinction that affects everything from insurance to local regulations.

Cost Benefits and Practical Advantages

The money aspect is hard to ignore. Commercial premises in most UK areas cost significantly more than storage units, and that’s before you factor in business rates, utilities, and long-term lease commitments. Storage units offer a way to scale your space needs without the financial headache.

Modern storage facilities have upped their game too. CCTV surveillance keeps your stock secure, many offer free WiFi for managing orders on the go, and the staff often understand business needs better than you might expect. Some facilities even provide trolleys and packing materials, making the whole experience more business-friendly.

Access is usually straightforward – you can pop in whenever you need to grab stock, organise a shipment, or just check on things. This flexibility works well for businesses that operate outside traditional hours.

The order fulfilment process works particularly well in storage units. You’ve got space to spread out, organise your packing materials, and handle the logistics without competing with household activities for space. Many business owners find they’re more efficient in a dedicated space.

Legal and Insurance Considerations

Before you dive in, have a proper conversation with your chosen storage facility. Not all providers allow the same level of business activity, and some have restrictions that might affect how you operate. It’s better to know upfront than get caught out later.

Insurance Requirements

Insurance deserves serious attention. Your home insurance probably won’t cover business stock stored elsewhere, and your business insurance might not cover items in self storage. Some facilities offer their own insurance, but you’ll need to check whether it covers your specific business needs. The Association of British Insurers recommends getting separate commercial insurance for business stock stored off-site.

Think about the practical side too. How often will you need to visit? Do the facility’s opening hours work with your schedule? Is the location convenient for your operations? These might seem like small details, but they add up quickly.

Tax Implications

Tax implications can be trickier than you might expect. Using a storage unit for business purposes might affect your tax situation or require you to register the address for certain activities. HMRC guidance suggests that storage costs are typically deductible as business expenses, but specific circumstances vary.

Don’t forget about local regulations either. While storage units exist in something of a grey area for business use, you still need to comply with general trading laws and business requirements.

Is This Right for Your Business?

Storage units work brilliantly for online selling, trades, and back-end stock management. If your business operates primarily online or doesn’t require face-to-face customer interaction, this arrangement could be perfect.

However, if you need customers visiting regularly or your business requires daily footfall, a storage unit won’t provide the right environment. Similarly, if you need employees accessing the space regularly, you’ll hit limitations pretty quickly.

The benefits are compelling: lower costs, flexibility, and professional storage conditions without the commitment of commercial premises. But the limitations around customer access and commercial activities mean this solution works better for some business types than others.

Success with storage units often comes down to matching your business model with what’s allowed and practical. A bit of planning upfront can save considerable time and money down the line.

Getting Started

Ready to explore whether storage units could work for your business? The best approach is to speak directly with storage providers about your specific needs. They can walk you through what’s permitted and help you understand how their facilities might support your operations.

Remember, every facility has different policies and features. Some offer better access, security, or additional services that might benefit your particular business. Taking time to compare options and ask the right questions will help you make a decision that works for your situation.

The storage unit approach isn’t right for every business, but for those where it fits, it can be a game-changer. Lower overheads, professional storage conditions, and the flexibility to scale as your business grows – sometimes the best business solutions are hiding in plain sight.