If you are starting a self-storage company, it is likely that you will require investment at some point. The experts at Pro Business Plans have helped many self-storage companies to start and grow with a business plan. This article provides information about what is included in a self-storage business plan and how it is structured.
There are many things to consider when forming a business plan for a self-storage facility. The clientele of a self-storage business can vary dramatically given the location, pricing, and quality of the facilities. A self-storage business located in an area where rent is very high, such as a dense urban area, will be substantially different than one in a rural community targeting the working class. There are several differentiating points in each of these models that can each be equally profitable, but their feasibility and overall interest to investors will depend on how they compare to regional competitors relative to the market demand for a given area.
The business model section of a self-storage company is designed to provide information on where the facility is located, the cost of construction/leasehold modifications, the qualifications of the management team, and several other variables. Overall, investors will want to understand how your company compares to alternative self-storage options in the area in terms of price, location, and services. For instance, your self-storage business may offer free pickup and have additional security features in place in order to account for being in a less attractive location than competing locations. The business model should be able to build a case that communicates why your company will outperform others in the market.
It can be quite difficult for a self-storage company to acquire positioning within the market. Some have attempted to acquire positioning by offering additional services, whereas others recognize that it is largely a combination of price and location. However, it also helps to be visible during the consumer search process for a self-storage company. This means being active on directories such as Google Places and Yelp! and also engaging in search engine marketing. An increasingly large number of self-storage companies are also taking to social media in order to target prospective customers within the radius of their service area. While the marketing section is not extremely important to all investors, it will be critical when implementing your business plan to acquire new customers quickly and efficiently.
The financial forecasting section of your business plan will likely be requested by investors if your company is seeking investment. Most investors will request to see three to five-years of financial statements. The key drivers as assumptions for the plan will include the overall pricing, capacity level, and utilization level. Other considerations to factor into the model include the marketing budget, cost of capital, and expenses related to sustaining the facility. In some cases, the company may actually own the storage facility, whereas it may rent it from a larger commercial space in other circumstances. In either case, there will be expenses associated with growing and managing the facility that should be accounted for.
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