This sounds strikingly self-evident, but the industry has had a number of failures because entrepreneurs new to the self-storage business failed to do the research that would have told them their business plan couldn't be executed – sometimes because the local self-storage market was saturated or because their startup and operations costs were higher than the local market self-storage rates would support.Tags: How To Write An Conclusion For A Research PaperAncient China ThesisSteps On How To Write An EssayStructure Essay KidsProblem Solving For Grade 4Rebecca Clarke Essays On A Life In MusicAutonomic Computing Research Papers
This means being active on directories such as Google Places and Yelp! 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.
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.
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 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.
The information here concentrates on the low-budget approach, and key to this approach is doing a feasibility study to locate a building in an area where you can be profitable.
To begin with, assume that you won't be building the rental storage facility because that immediately adds hundreds of thousands of dollars to your startup costs.