Self Storage Business Plan Template

Self Storage Business Plan Template

If you want to start your own self storage business or expand your current storage company, you need a business plan.

The following Self Storage business plan template gives you the key elements to include in a winning business plan for your storage company or storage unit business. In addition to this template, conducting research on the self storage industry will help you better understand the business, identify your target market and help implement a smart marketing plan.

You can download our self storage plan template (including a full, customizable financial model) to your computer here.

 

Sample Self Storage Business Plan Template

Below is a self storage business plan example with each of the key sections to help you write a self storage business plan for your own company.

I. Executive Summary

Business Overview

[Company Name] 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.

Products & Services Provided

[Company Name] 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

[Company Name] 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

[Company Name] is headed by [Founder’s Name] who graduated from [University] with a degree in Business Administration. Prior to starting [Company Name], [Founder’s Name] worked as an operations manager at a moving and storage company for [x] years when 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

[Company Name] is uniquely qualified to succeed for the following reasons:

• [Company Name] will fill a specific market niche in the growing moving and storage industries.
• With only one existing 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 storage unit business.

Financial Highlights

[Company Name] is seeking 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 [Company Name] reaches break-even

Topline projections over the next five years are as follows:

 

II. Company Overview

Who is [Company Name]?

[Company Name] 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 [Company Name]. Customers are provided with a variety of short- and long-term storage options to meet their needs. And 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 each and every customer.

[Company Name]’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 facility to provide storage services to residents and small business owners.

Upon incorporation, [Company Name] was able to achieve the following milestones:

• Found a business location and signed Letter of Intent to lease it
• Developed the company’s name, logo and website located at [website]
• Determined equipment and fixture requirements
• Began recruiting key employees

[Company Name]’s Products/Services

[Company Name] has [x] storage units in its storage facility for short- and long-term needs. Our services include:

• Standard Self-Storage Units
• Temperature-Controlled Self-Storage Units
• Packing & Storage Supplies
• Moving Services

Each unit is secured, insured, and available to the lessee 24/7. [Company Name] will be able to provide these short- and long-term storage services for the following unit sizes:

• 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

 

III. Industry Analysis

The self storage industry will increase to $25 billion over the next five years. Demand for industry services has benefited from an increase in per capita disposable income. Industry operators generally have low overhead costs, 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 different companies seek to expand into similar markets.

 

IV. Customer Analysis

Demographic Profile of Target Market

[Company Name] 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:

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 storage, 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 locally owned and operated self-storage facility. The company distinguishes itself from the competition by offering affordable pricing and 24/7 access to their boat or RV. They are a secure storage facility that offers an electronic gate, new fencing, security cameras, 24-hour 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 system of high-tech security cameras. The property is fenced and accessible through a computerized security gate.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include:

• Location: [Company Name]’s storage facility provides the much-needed additional storage for businesses and residents in [location]. We are centrally located, and accessible 24/7, which increases safety and convenience for customers.
• Client-oriented service: [Company Name] 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

You can download our self storage plan template (including a full, customizable financial model) to your computer here.

The [Company Name] Brand

The [Company Name] brand will focus on the Company’s unique value proposition:

• Offering secured and insured storage units of various sizes to accommodate a variety of residential and commercial storage needs
• Offering a convenient location that offers 24/7 access to unit lessees
• Providing excellent customer service

Promotions Strategy

[Company Name] 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
[Company Name] 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 [Company Name].

Internet
[Company Name] 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 [Company Name] as the safe and convenient self-storage facility that it is.

Advertising
[Company Name] will initially advertise in local newspapers and sponsor community events in order 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

[Company Name]’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

[Company Name] 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 manage company operations, under [Founder’s Name]’s supervision. The administrative assistant will handle basic customer service including answering the phones and assisting walk-in customers.

Milestones

[Company Name] expects to achieve the following milestones in the following [x] months:

 

VIII. Management Team

Management Team Members

[Company Name] 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 promotional campaigns for the facility and maintain the company’s online presence and reputation.

Hiring Plan

[Founder] will serve as the store manager. In order to launch our store, 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

[Company Name]’s revenues will come from the rental fees from the short- and long-term rentals of the self-storage units to our customers.

The major costs for the company 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

[Company Name] is seeking total funding of $270,000 to launch its 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 [Company Name] reaches break-even

Key Assumptions

The following table reflects the key revenue and cost assumptions made in the financial model:

 
5 Year Annual Income Statement

 
5 Year Annual Balance Sheet

 
5 Year Annual Cash Flow Statement