Self Storage Facility Business Plan
Whether you’re starting a self-storage business or expanding an existing facility, it is a strategic real estate investment, and a clear business plan is crucial to a successful facility.
A self-storage business plan should include a thorough market analysis, detailed financial projections, and effective marketing and sales strategies for attracting and retaining your target customers. Your storage business plan will help you validate your business concept, manage expenses, and capitalize on market opportunities, ensuring success and a return on investment for your own company.
Sample Business Plan Template for a Self-Storage Facility
Conduct local market research and use the business plan template below to help you write each of the key components for a successful self-storage business plan.
I. Executive Summary
Business Overview
[Self-Storage Business] is a self-storage company with [x] storage units available for rental to individuals and businesses in [location]. With multiple unit size options, all customer storage needs will be satisfied. In addition, we offer short- and long-term storage options to accommodate various customer needs.
Self-Storage Services Provided
[Self-Storage Business] will be able to provide safe and secure short- and long-term storage facilities to individuals and businesses in [location].
- Standard Self-Storage Units
- Temperature-Controlled Self-Storage Units
- Packing & Storage Supplies
- Moving Services
To better serve a variety of customers, we have multiple unit size options available to choose from:
- 5 x 5 foot storage unit
- 5 x 10 foot storage unit
- 10 x 10 foot storage unit
- 10 x 15 foot storage unit
- 10 x 20 foot storage unit
- 10 x 30 foot storage unit
Customer Focus
[Self-Storage Business] will primarily serve residents in need of storing personal belongings. The storage units are also available for lease by business owners in need of storage for stock overflow. This is especially helpful for small business owners who run a business from their home.
Management Team
[Self-Storage Business] is headed by [Founder’s Name], who graduated from [University] with a degree in Business Administration. Before starting [Self-Storage Business], [Founder’s Name] worked as an operations manager at a moving and self-storage company for [x] years, where he was able to learn the ins and outs of the storage industry. His experience will be the company’s most valuable asset.
Success Factors
[Self-Storage Business] is uniquely qualified to succeed for the following reasons:
- [Self-Storage Business] will fill a specific market niche in the growing moving and storage industries.
- With only one existing self-storage facility, the need for additional self-storage space is essential in [location].
- In addition, we have surveyed the target market and received extremely positive feedback saying that they explicitly want to make use of our services when launched.
- The management team has a track record of success in the self-storage industry.
Financial Highlights
[Self-Storage Business] is seeking a total funding of $270,000 of debt capital to open its storage business. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses, and working capital.
Specifically, these funds will be used as follows:
- Facility design/build: $110,000
- Working capital: $160,000 to pay for marketing, salaries, and lease costs until [Self-Storage Business] reaches break-even
Top-line projections over the next five years are as follows:
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | $738,000 | $1,716,272 | $2,007,297 | $2,331,125 | $2,694,524 |
| Total Expenses | $639,595 | $1,021,515 | $1,110,127 | $1,190,308 | $1,273,715 |
| EBITDA | $98,405 | $694,757 | $897,169 | $1,140,817 | $1,420,809 |
| Depreciation | $16,560 | $16,560 | $16,560 | $16,560 | $16,560 |
| EBIT | $81,845 | $678,197 | $880,609 | $1,124,257 | $1,404,249 |
| Interest | $18,554 | $16,235 | $13,916 | $11,596 | $9,277 |
| Pre Tax Income | $63,291 | $661,962 | $866,694 | $1,112,661 | $1,394,972 |
| Income Tax Expense | $22,152 | $231,687 | $303,343 | $389,431 | $488,240 |
| Net Income | $41,139 | $430,276 | $563,351 | $723,230 | $906,732 |
II. Company Overview
Who is [Self-Storage Business]?
[Self-Storage Business] is a licensed and insured self-storage facility located in [location]. With a total of [x] storage units ranging in size, we can accommodate the storage needs of both residents and businesses in [location]. Availability, security, and cost-effectiveness are the main driving factors for the success of [Self-Storage Business]. Customers are provided with a variety of short- and long-term storage options to meet their needs. With 24/7 entry, customers may access their belongings when they need them the most. Our staff strives to develop relationships with the members of our community while providing the best service possible to every customer.
[Self-Storage Business]’s History
The number of businesses has grown in the past few years in [location], and housing construction has flourished. As the community grows and thrives, the need for reliable storage also increases. In [year], [Founder’s Name] decided to meet this market need by investing in a storage unit business to provide services to residents and small business owners.
Upon incorporation, [Self-Storage Business] was able to achieve the following milestones:
- Purchased commercial real estate and began construction of self-storage and drive-up units
- Developed the storage company’s name, logo, and website located at [website]
- Determined equipment and fixture requirements
- Began recruiting key employees
[Self-Storage Business]’s Services
[Self-Storage Business] has [x] storage units in its facility for short- and long-term needs. Our self-storage services include:
- Standard Self-Storage Units
- Temperature-Controlled Self-Storage Units
- Storage and packing materials
- Moving Services
Each unit is secured, insured, and available to the lessee 24/7. [Self-Storage Business] will be able to provide these short- and long-term storage services for the following unit sizes:
- 5 x 5 (25 square foot) unit
- 5 x 10 (50 square foot) unit
- 10 x 10 (100 square foot) unit
- 10 x 15 (150 square foot) unit
- 10 x 20 (200 square foot) unit
- 10 x 30 (300 square foot) unit
III. Industry Analysis
According to market research, the self-storage industry will increase to $25 billion over the next five years. Demand for services in the self-storage industry has benefited from an increase in per capita disposable income. Self-storage business owners generally have low start-up costs and operating expenses, limited staff, few utilities, and low maintenance costs, all of which contribute to substantial profitability (measured as earnings before interest and taxes).
Many major population centers have begun to reach market saturation, so operators will likely branch out into different regions to seek growth opportunities. Competition in metropolitan areas is already intense and is anticipated to heighten in other areas as national companies seek to expand into the local self-storage market.
IV. Customer Analysis
Demographic Profile of Target Market
[Self-Storage Business] will primarily serve residents and small businesses in [location] that may need short- or long-term storage services for their personal belongings or business products.
The population and business breakdown in the U.S. is as follows:
| Total | Male | Female | |
|---|---|---|---|
| Total population | 314,107,084 | 154,515,159 | 159,591,925 |
| AGE | |||
| 30 to 34 years | 6.60% | 6.80% | 6.50% |
| 35 to 39 years | 6.30% | 6.40% | 6.20% |
| 40 to 44 years | 6.70% | 6.70% | 6.60% |
| 45 to 49 years | 6.90% | 7.00% | 6.90% |
| All establishments | |
|---|---|
| Total for all sectors | 7,860,674 |
| Agriculture, forestry, fishing and hunting | 23,363 |
| Mining, quarrying, and oil and gas extraction | 25,732 |
| Utilities | 18,965 |
| Construction | 715,641 |
| Manufacturing | 290,936 |
| Wholesale trade | 409,656 |
| Retail trade | 1,064,449 |
| Transportation and warehousing | 237,308 |
| Information | 153,934 |
| Finance and insurance | 478,224 |
| Real estate and rental and leasing | 406,568 |
| Professional, scientific, and technical services | 914,718 |
| Management of companies and enterprises | 56,363 |
| Administrative and support and waste management and remediation services | 419,844 |
| Educational services | 105,173 |
| Health care and social assistance | 897,635 |
| Arts, entertainment, and recreation | 143,396 |
| Accommodation and food services | 726,167 |
| Other services (except public administration) | 764,840 |
| Industries not classified | 7,762 |
Customer Segmentation
We will primarily target the following customer segments:
- Small business owners who work out of their home and need more room for the storage of their products.
- Residents in need of temporary storage during a period of transition.
- Residents in need of long-term storage for personal belongings.
V. Competitive Analysis
Direct & Indirect Competitors
Westerville Toy Storage
Hours: Monday – Saturday: 9:00 am – 5:00 pm
Westerville Toy Storage is a locally owned and operated full-service self-storage facility. They offer drive-up units, climate-controlled storage, boat storage, RV storage, boxes and moving supplies, as well as U-Haul trucks and trailers.
Customers may also book a truck or trailer for either a local or cross-country move. The company is a U-Haul neighborhood dealer.
Eduardo’s Boat and RV Storage
Hours: Open 24/7
Eduardo’s Boat and RV Storage is a family-owned self-storage facility that offers cost-effective solutions and 24/7 access for boat and recreational vehicle storage. The facility ensures security with features like an electronic gate, new fencing, security cameras, round-the-clock access, and an on-site dump station.
Done Right RV Self Storage
Hours: Accessible 24/7
Done Right RV Self Storage offers outdoor storage for RVs, boats, trailers, and other vehicles, as well as indoor storage for non-vehicle needs. It also offers a broad range of amenities, including a dump site, free air and firewood, well-lit grounds, and a system of high-tech security cameras. The property is fenced and accessible through a computerized security gate.
Competitive Advantage
[Self-Storage Business] enjoys several advantages over its competitors. These advantages include:
- Location: [Self-Storage Business]’s storage facility provides much-needed additional storage for businesses and residents in [location]. We are centrally located and accessible 24/7, increasing the safety and convenience for customers.
- Client-oriented service: [Self-Storage Business] will have a full-time customer service manager to keep in contact with clients and answer their everyday questions.
- Management: [Founder’s Name] has been extremely successful working in the moving & storage industry and will be able to use his previous experience to provide the best sales and customer service experience.
- Relationships: Having lived in the community for [x] years, [Founder’s Name] knows many of the local leaders, business owners, and other media influencers within [location]. With his [x] years of experience and good relationships with business leaders in the area, he is well-connected to develop a strong initial client base
VI. Marketing Plan
The [Self-Storage Business] Brand
The [Self-Storage Business] brand will focus on the Company’s unique value proposition:
- We offer secured and insured storage units of various sizes to accommodate a variety of residential and commercial storage needs
- A convenient location that offers 24/7 access to unit lessees
- Providing excellent customer service
Promotions Strategy
[Self-Storage Business] expects its target market to be residents and business owners working and/or living within a 10-mile radius of the facility. The Company’s promotions strategy to reach these individuals includes:
Direct Mail
[Self-Storage Business] will blanket neighborhoods surrounding its location with direct mail pieces. These pieces will provide general information on [Company Name], offer discounts, and/or provide other inducements for people to utilize the storage facility.
Public Relations
We will contact all local and area newspapers and television stations to tell them about the opening and unique value proposition of [Self-Storage Business].
Internet
[Self-Storage Business] will invest resources in organic search engine optimization. The Company will develop its website in such a manner as to direct as much traffic from search engines as possible. Additionally, it will use highly-focused, specific keywords to draw traffic to its website, where potential clients will find a content-rich site that presents [Self-Storage Business] as the safe and convenient self-storage facility that it is.
Advertising
[Self-Storage Business] will initially advertise in local newspapers and sponsor community events to gain awareness.
Referrals
[Company Name] understands that the best promotion comes from satisfied customers. The Company will encourage its clients to refer their friends and neighbors and will reward clients with discounts for these referrals. This strategy will increase in effectiveness after the business has already been established.
Pricing Strategy
[Self-Storage Business]’s pricing will be competitive with [Competitor]. Short-term customers will receive our normal pricing structure for each storage unit. However, customers in need of long-term storage will be offered a discount for prepaid fees.
VII. Operations Plan
Functional Roles
[Self-Storage Business] will carry out its operations through phone calls, internet service bookings, and walk-in bookings. The business location will be used for sales and customer service. It will house the [x] full-time staff.
[Founder’s Name] will work as the primary salesperson for the company’s services, although the assistant manager and administrative assistant may be trained in sales activities over time. The assistant manager will oversee facility management under [Founder’s Name]’s supervision. The administrative assistant will handle basic customer service, including answering the phones and assisting walk-in customers.
Milestones
[Self-Storage Business] expects to achieve the following milestones in the following [x] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Self-Storage Business] is led by [Founder’s Name], who has been in the moving & storage business for 20 years. While [Founder] has never run a storage facility himself, he has worked as the operations manager for a local moving and storage facility and has developed local connections to help build a solid client base. [Founder] will manage the day-to-day business operations and train new team members.
The assistant manager is an experienced marketing manager and will help manage the marketing strategies and campaigns for the facility and social media presence.
Hiring Plan
[Founder] will serve as the self-storage facility manager. To launch our own self-storage business, we need to hire the following personnel:
- Assistant Manager – 1 full-time employee who will manage the marketing for the facility
- Maintenance & Moving Assistant – 1 full-time employee who will help customers move belongings into and out of the storage facility and maintain the safety of the grounds and units
- Administrative Assistant – 1 full-time employee who will manage the front office, including answering phones and assisting walk-in customers
IX. Financial Plan
Revenue and Cost Drivers
Revenue for [Self-Storage Business] will be generated through rental fees collected from customers utilizing both short-term and long-term storage.
The major self-storage operating expenses will be facility maintenance costs and salaries of the staff. In the initial years, the company’s marketing spend will be high as it establishes itself in the market.
Capital Requirements and Use of Funds
[Self-Storage Business] is seeking a total funding of $270,000 to launch a successful self-storage facility. The capital will be used for funding capital expenditures, employee salaries, marketing expenses, and working capital.
Specifically, these funds will be used as follows:
- Facility design/build: $110,000
- Working capital: $160,000 to pay for marketing, salaries, and lease costs until [Self-Storage Business] reaches break-even
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Annual Number of Customers | |
|---|---|
| Year 1 | 200 |
| Year 2 | 300 |
| Year 3 | 400 |
| Year 4 | 500 |
| Year 5 | 600 |
| Average annual growth rate | 5% |
| Monthly mortgage/lease | $3000 |
Financial Projections
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRE-TAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
