Marc Goodin - Self Storage Business Plan

Self Storage BusinessPlan

Make A Good Impression WithYour Bank

Marc Goodin

Copyright @ 2012 by MarcGoodin

SmashwordsEdition

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While the author has usedhis best efforts in preparing this book, no representation orwarrantees with respect to the accuracy or completeness of thecontents of this book and specifically disclaims any impliedwarrantees of merchantability or fitness for a particular purpose.The advice and strategies contained herein may not be suitable foryour situation. You should consult with a professional whereappropriate. The author or publisher shall not be liable for anyloss of profit, any other commercial damages or otherdamages.

All trademarks mentionedherein are for identification only and used without intent toinfringe on the owners trademarks or other proprietaryrights.

ISBN: 978-0-9855460-3-8

For additional marketingideas and other self storage books by the author visit www.SelfStorageMarketing101.com

Catch YourDreams

About the Author

Marc Goodin is uniquely positioned to provide unusually simpleinformation you need to increase your profits. At a very young agehe not only learned the importance of a good product but also theimportance of good communications, a great marketing message andcampaign. Long before the Internet he would go to work with dad, areal estate developer. At age eight he cleaned up after theconstruction workers and learned the importance of marketing. Tothis day he still remembers one of his dads marketing campaignsthat filled up his dads 300 apartments long before the competition.Gateway Apartments, where your neighbors aresquirrels.

As a civil engineer andowner of an engineering company he learned the lifeblood of thecompany depended on skilled people and marketing, especially if youwanted to be an industry leader. Not only did you have to do anoutstanding job but also you had to find a way to let everyone knowthey get more than their moneys worth when they buy fromyou.

Marc designed his first selfstorage over 20 years ago and dozens more for many clients sincethen. He presently owns two self storage facilities in the UnitedStates, he designed and built. His first personal internationalself storage facility was recently built in Canada. Again hedesigned, obtained the approvals, built the facility and managesthe facility. His expertise and experience with management,ownership, sales and marketing in the business world and selfstorage is clearly evident in his writings.

Marc has learned about selfstorage and marketing from real life experiences and his streetsmarts continue to expand everyday. Afterreading hundreds of marketing books full of general theory hedecided it was time to put his experiences form the trenches in toa book for self storage owners and managers. He accomplished hisgoal with several easy to use guides and a specific how to, handson marketing book, complete with examples, tactics and ideas thatcan be implemented immediately for more profits. Visit www.SelfStorageMarketing101.com for the authors complete list of self storage books andguides.

Authors Offer

If your have any questionsregarding the items in this book or other self storage items emailme at selfstoragemarc@gmail.com and I will be happy to get back toyou.

Why a Self Storage BusinessPlan

The purpose of a self storage business planis two fold. First it requires you do substantial investigation soyou can determine and better understand the construction cost,operational expenses, expected income and local competition.Creating a business plan will also help you determine the time andinvestment required for a successful project.

Secondly it gives your bank some confidenceof your understanding of the business and that you are a good loanrisk. The Bank typically will require an independent appraisal ofthe proposed project as well. Your business plan will have some ofthe basic information the appraiser will require from you.

The following is a typicalSelf Storage Business Plan. Obviously you will have to revise thedetails to meet the information and details of your project. I have added several explanations and tips initalics.

Your Self Storage,LLC

Address

Business Plan

January 2013

Your Name

Address

Phone number

Email

Photographs throughout your business planwill punch up your plan.

Your SelfStorage

Pro FormaSummary

Build Out Cost

Landcost............................................xxx

Professional soft costs:

Engineering , Legal,Accounting.......xxx

Construction....................................... xxx

TotalCost:..........................................xxx

You can provide a detailed construction costin the appendix if your bank requires it.

................................................... MonthlyCash Flow ............. Annual Cash Flow

Income:

Rental income @ 85% occupancy.................$$$...............................$$$

Expenses:

OperatingCost:......................... $$$ ........................ $$$

Gross income:..........................$$$........................$$$

Mortgage $600,000

7% @ 20 yramort.................... $$$ ........................ $$$

NetIncome:..............................$$$.........................$$$

The projected income and expenses areprovided in more detail later in the marketing plan.

You need to research your construction cost.Until you have final plans and prices from contractors your pricesare subject to change drastically. Typically a general contractorcan give you some preliminary budget site cost when you haveconcept plans. Make sure you give him a list of items to includesuch as: fencing, security cameras, bollards, climate controlsystems, landscaping, utilities, etc.

Do not forget to include closing costs andloan fees, construction period interest, and at least a10%contingency expense. Some banks will also let you include operatingand interest reserve for the rent up period prior to breaking evenin the cost and loan.

ExecutiveSummary

Your Self Storage, LLC is proposed as a fullservice new self storage business. It will provide for the storageneeds of the community by making available and renting 25 to 300square feet of protected self storage spaces for low use items suchas business records, home furniture or equipment, personal andrecreation items. Phase one consists of xxx square feet in xbuildings, divided into xx units. This includes a xxx square footrental/retail office. Additionally there will be xx spaces foroutside vehicle storage. One full time employee and one part timeemployee are proposed. The land is under option with a closingscheduled for xxx. It is anticipated construction will start xxxand be completed xxx.

The estimated construction cost for phaseone is $900,000 as follows:

Land: $150,000, Construction: $700,000,Start up cost: $50,000.