1.0 Executive Summary

The purpose of this business plan is to raise $1,850,000 of debt funds for the development of a self storage facility while showcasing the expected financials and operations over the next three years. Storage Facility, Inc. (“the Company”) is a New York based corporation that will provide a number of varying sized self storage spaces to customers in its targeted market. The Company was founded by John Doe.

1.1 The Services

The Company intends to operate a substantial self storage facility its targeted market outside of the New York metropolitan area. The facility will feature approximately five acres of space so that customers can rent large (full scale), medium, and small storage spaces for their personal belongings.

The Company will be able to generate recurring streams of income on a monthly basis from the continued rental of these spaces to customers. Management, based on the architectural plans for the facility, expects to develop 100 full sized spaces (about the size of a small garage), 200 medium sized spaces (approximately 10 feet by 5 feet), and 500 small sized space (5 feet by 5 feet).

The third section of the business plan will further describe the services offered by the Self Storage Facility.

1.2 Financing

Mr. Doe is seeking to raise $1,850,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 25 year loan with a 5% fixed interest rate. The financing will be used for the following:

• Development of the Company’s Storage Facility location.
• Financing for the first six months of operation.
• Capital to security equipment for the Self Storage Facility.

Mr. Doe will contribute $150,000 to the venture. It should be noted that the Company would be an excellent candidate for a working capital line of credit or business expansion loan in the future given the recurring streams of revenue generated. The equity created could be hypothecated in order to develop subsequent self storage facilities. However, this business plan assumes no further capital (outside of the capital sought in this document) will be used during the next three years.

1.3 Mission Statement

The Self Storage Facility’s mission is to provide customers with an easily accessible location where they can securely store their personal items.

1.4 Management Team

The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the real estate development industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.

1.5 Sales Forecasts

Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.

1.6 Expansion Plan

The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals seeking storage space within the target market.

Additionally, Mr. Doe may seek to develop additional facilities with the accrued profits of the business after the third year of operations. He may seek to refinance the equity of the self storage complex to be used as a down payment for a second facility.

2.0 Company and Financing Summary

2.1 Registered Name and Corporate Structure

Storage Facility, Inc. The Company is registered as a corporation in the State of New York.

2.2 Required Funds

At this time, the Storage Facility requires $1,850,000 of debt funds. Below is a breakdown of how these funds will be used:

2.3 Investor Equity

Mr. Doe is not seeking an investment from a third party at this time.

2.4 Management Equity

John Doe owns 100% of the Storage Facility, Inc.

2.5 Exit Strategy

In the event that Mr. Doe wishes to sell the Storage Facility, he will contract a real estate brokerage firm to showcase the property to potential buyers. Typically, these businesses have a very high resale value due to the increased value of the property over time plus the recurring nature of the facility’s revenues. Mr. Doe expects that the business could be sold for ten times earnings (including the real estate).

3.0 Services

As stated earlier, the Company’s primary revenue source will come from the management of the self storage facility that Mr. Doe intends to develop outside of the New York metropolitan area. This facility will be of a substantial size, and Management expects that it will have 800 customers by the end of the first year of operation. Demand for additional storage space in the target market is immense, and by developing an easily accessible location the business will be able to maintain a near 100% occupancy rate at all times. Customers will be billed on a monthly basis directly to a credit/debit card account. This will ensure that the business does not need to worry about maintaining and collecting late receivables from customers.

Additionally, customers will benefit from the fact that the storage facility will offer 24 hour access, and a security patrol guard will be on the premises at all times to ensure the safety of the customer’s stored items. The facility will have state of the art surveillance equipment installed on the premises to ensure maximum security.

4.0 Strategic and Market Analysis

4.1 Economic Outlook

This section of the analysis will detail the economic climate, the storage facility industry, the customer profile, and the competition that the business will face as it progresses through its business operations.

Currently, the economic climate is uncertain. The pandemic stemming from COVID-19 has created a substantial amount of turmoil within the capital markets. It is expected that a prolonged economic recession will occur given that numerous businesses are being forced to remain closed for an indefinite period of time (while concurrently having their respective employees remain at home). However, central banks around the world have taken aggressive steps in order to ensure the free flow of capital into financial institutions. This is expected to greatly blunt the economic issues that will arise from this public health matter.

However, once self storage facilities (especially in large metropolitan areas) are somewhat immune from deleterious economic changes once they reach near full capacity. In major metropolitan areas, space is an expensive commodity, and people (regardless of the economic climate) will continue to require additional storage for their belongings.

4.2 Industry Analysis

Within the United States, there are approximately 180,000 companies that operate one or more self storage facilities. Each year, these companies aggregately generate $22 billion of revenues while concurrently providing jobs to more than 200,000 people.

One of the common trends within this industry is to partner with a self-storage facility marketing company that charges a royalty for mass marketing the developer’s facility. This business model is similar to major hotel chains that provide marketing services to customers, but do not directly own the properties.

4.3 Customer Profile

The Storage Facility’s average client will be a middle to upper middle class man or woman living in the Company’s target market. Common traits among clients will include:

• Annual household income exceeding $50,000
• Lives or works no more than 15 miles from the Company’s self storage facility location.
• Will spend $100 to $300 per month with the Storage Facility.

4.4 Competition

This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.

5.0 Marketing Plan

The Storage Facility intends to maintain an extensive presence within its targeted market so that the business can have its facility reach maximum (or near maximum) capacity by the ninth month of operation.

5.1 Marketing Objectives

• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
• Develop relationships with real estate brokers that are assisting clients with moves (who require storage space that will not fit into their new living spaces).
• Potentially partner with a national self-storage marketing company that will brand the Company’s facility, thus providing it with greater visibility in the targeted market.

5.2 Revenue Overview

5.3 Marketing Strategies

Management intends on using a number of marketing strategies that will create immediate visibility for the Storage Facility at the onset of operations. Prior to the completion of the facility, the business will develop a local marketing campaign that will include traditional advertisements in locally distributed newspapers and periodicals that will inform the general public of the Storage Facility’s opening, its pricing, and its location.

The business will also develop a website showcasing the Storage Facility’s operations, its location, directions to the location, pricing of various sized spaces, the security on premises, and how a person can become a customer of the Storage Facility. Mr. Doe will register this website with several online directories as many people now use the internet to find local service providers. This website will feature ecommerce functionality so that users can update their payment information from time-to-time.

As mentioned above, the Company will also develop referral relationships with local real estate agents and brokers that will refer business to the Storage Facility from clients that are moving to the area, but lack the space to store all of their belongings in their new homes or apartments. This will become an invaluable source for marketing the business to the general public.

Storage Facility will develop ongoing relationships with moving companies so that individuals will be referred to the business when they have specific short term or long term storage needs. In turn, the Company will provide referrals for moving services when a customer needs transportation services for their personal belongings.

Finally, the business will maintain relationships with companies that purchase storage units when it is abandoned over a certain period of time and no payment has been made for services. This will allow for quick removal of items when they are no longer maintained by the customer. It should be noted that the Company will adhere to all applicable state laws when this type of event occurs.

6.0 Organizational Plan and Personnel Summary

6.1 Corporate Organization

6.2 Organizational Budget

7.0 Financial Plan

7.1 Underlying Assumptions

The Company has based its proforma financial statements on the following:

• The Storage Facility will have an annual revenue growth rate of 5% per year.
• The Owner will acquire $1,850,000 of debt funds to develop the business.
• The loan will have a 25 year term with a 5% interest rate.
• The property and real estate owned by the business will appreciate at a 4% rate per year.
• Management will contribute $150,000 towards the development of the Storage Facility.

7.2 Sensitivity Analysis

The Storage Facility’s revenue should not be sensitive to changes in the general economy. Once a customer rents a space from the facility, they will most likely continue to use the space for years to come. Additionally, all fees will be billed on a monthly basis to a credit or debit card, which will ensure that the business maintains minimal receivables issues and that the debt undertaken by the Company can be serviced on a monthly basis.

7.3 Source of Funds

7.4 General Assumptions

7.5 Profit and Loss Statement

7.6 Cash Flow Analysis

7.7 Balance Sheet

7.6 Breakeven Analysis

7.7 Business Ratios

Appendix A – SWOT Analysis

Strengths

• Economically insulated business.

• High gross margins from ongoing self storage rental services.

• Recurring streams of revenue on a monthly basis.

• An owner-operator (John Doe) that has extensive experience in the self storage facility industry.

Weaknesses

• Many regulatory and compliance issues.

• Large property tax expenditures.

• Competitors within the same New York metropolitan area market.

Opportunities

• Expansion of the business to maintain several facilities.

• Attract additional equity capital from private equity firms and angel investors.

• Refinancing the equity of the first facility in order to facilitate the development of additional locations.

Threats

• Many other businesses targeting the same customer base throughout the New York metropolitan area. 

• Changes in interest rates can impact the growth of the business in the event that additional facilities are to be developed.

• Liabilities resulting from onsite client injury can severely damage the Company. 

Please note that the expanded P&L, expanded cash flow analysis, and amortization tables have been omitted for brevity. They can be seen on the Samples Page.