storage facility business plan pdf

Self Storage Business Plan Template

Written by Dave Lavinsky

Self Storage Business Plan

You’ve come to the right place to create your Self Storage business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Self Storage companies.

Below is a template to help you create each section of a storage unit business plan.

Executive Summary

Business overview.

Secure Self Storage is a startup self storage company located in Nashville, Tennessee. The company is founded by Bill Williams, an experienced self storage manager who has been working in the self storage industry for over a decade. Bill has recently earned a bachelor’s degree in Business Administration. Now that Bill has obtained the education and experience that will allow him to successfully navigate the process of starting a business, Bill is ready to open his own company, Secure Self Storage. Bill plans on recruiting a team of highly qualified professionals to help manage the day to day responsibilities of running a successful self storage facility – marketing, security, maintenance, accounting, and rent collection.

Secure Self Storage will provide a convenient, safe, and secure self storage solution for anyone in the Nashville area who needs to store their belongings. Secure will ensure that every storage need of the customer is being met. Secure Self Storage will be the ultimate choice in Nashville for self storage solutions while being the best-priced company in the area.

Product Offering

The following are the self storage solutions that Secure Self Storage will provide:

• Small Storage Units (5×5)
• Medium Storage Units (10×10)
• Large Storage Units (10×25)
• Vehicle Storage Units
• Temperature Controlled Units
• Extra Security Units
• Pickup & Delivery Services
• Disposal Services

Customer Focus

Secure Self Storage will target adults 18 years old and over in Nashville who need a storage unit for any reason such as moving, decluttering, doing home renovations, or those who need storage for business, college, or to store an automobile. No matter the customer, Secure Self Storage will deliver the best communication, service, and security.

Management Team

Secure Self Storage will be owned and operated by Bill Williams. Bill has a bachelor’s degree in Business Administration and has been working as a self storage manager for another local storage facility for over a decade. Now that Bill has obtained the education and experience that will allow him to successfully navigate the process of starting a business, Bill is ready to venture out and open his own self storage company. Bill will be the owner and manager of Secure Self Storage.

Bill has recruited his peer, Ken Smith, a financial professional with a Masters degree and fifteen years of experience doing financial work for various construction companies, to be the financial manager. Ken will help manage all of the finances for the company from finding a cost-effective location to set up shop to reporting and budgeting to make sure the facility is profitable.

Success Factors

Secure Self Storage will be able to achieve success by offering the following competitive advantages:

• Self storage units are easily accessible 24 hours a day, temperature controlled, and have the latest security technology to keep customers’ belongings safe and secure.
• On-site security guards are deployed 24 hours a day to ensure belongings, customers, and employees are safe at all times.
• On-site staff to answer questions, help customers, and keep the facility clean.

Financial Highlights

Secure Self Storage is seeking $250,000 in debt financing to launch its self storage business. The funding will be dedicated towards securing the facility space and purchasing equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs. The breakout of the funding is below:

• Self storage facility build-out: $50,000
• Equipment, supplies, and materials: $20,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $15,000
• Working capital: $15,000

The following graph below outlines the pro forma financial projections for Secure Self Storage.

Company Overview

Who is secure self storage.

Secure Self Storage is a newly established high security self storage company in Nashville, Tennessee. Secure Self Storage will be the most convenient, secure, and customer-focused choice for storage unit renters in Nashville. Secure will provide a variety of self storage solutions for anyone looking for a secure storage option. The company’s customer-centric approach will include 24/7 on-site security and customer service staff, the latest security technology, and temperature controlled units.

Secure Self Storage will give customers peace of mind that their belongings are secure. The management team is composed of experienced professionals including business managers, security officers, and maintenance technicians. Secure Self Storage removes all headaches of the self storage unit renter and ensures all issues are taken care off expeditiously while delivering the best customer service.

Secure Self Storage History

Secure Self Storage is owned and operated by Bill Williams, an experienced self storage manager who has a bachelor’s degree in Business Administration from the University of Tennessee. Bill has worked for a local self storage company in Nashville for over a decade. Bill’s tenure with the self storage company combined with his education has given him the skills and knowledge required to venture out on his own and start his own company.

Since incorporation, Secure Self Storage has achieved the following milestones:

• Registered Secure Self Storage, LLC to transact business in the state of Tennessee.
• Has scouted a few location options and reached out to the owners for more information.
• Reached out to numerous contacts to include former customers to let them know about the upcoming facility.
• Began recruiting a staff of accountants, maintenance workers, security, and other facility personnel to work at Secure Self Storage.

Secure Self Storage Services

Industry analysis.

The United States self storage industry generates an estimated $39.5B in annual revenue with over 49,000 storage facilities throughout the country. The total rentable self storage space is approximately 1.9B square feet. An estimated 10.6% of U.S. households are currently renting a self storage unit. The average self storage space used per person is 5.9 square feet. The average monthly cost to rent a self storage unit is $90.

Self storage construction spending has nearly doubled in the past five years. According to the Self Storage Almanac, the market is highly fragmented with 31% of space being owned by six large public companies, 16% being owned by the next top 94 companies, and 53% being owned by small businesses. Self storage industry operators have the potential to achieve highly lucrative businesses if they manage them smartly. The average self storage company’s profit margin is around 11 percent, which is much higher than many other small businesses in other industries that are often closer to 3-5 percent.

Customer Analysis

Demographic profile of target market.

Secure Self Storage will target adults 18 years of age and older requiring self storage services in Nashville, Tennessee. The company will target people in need of storage space for a variety of reasons including moving, renovating, college, business, or to store a vehicle.

The precise demographics for Nashville, Tennessee are:

Customer Segmentation

Secure will primarily target the following customer profiles:

• People who are in the process of moving
• People who need storage space for a vehicle
• People who need storage for business
• People who need storage for college
• People who are renovating their homes

Competitive Analysis

Direct and indirect competitors.

Secure Self Storage will face competition from other companies with similar business profiles. A description of each competitor company is below.  

Nashville Self Storage

Nashville Self Storage is a temperature controlled self storage facility operating in Nashville, Tennessee. The facility has 400 units of varying sizes from 2×5 up to 30×30. Nashville Self Storage uses state of the art security systems with cameras throughout the facility to keep its patrons and their belongings safe and secure. The company currently has one facility with plans to open a second location in the next few months. The owners of Nashville Self Storage have been working in the storage industry for over 20 years and pride themselves on providing exceptional customer service.  

ALottaStuff Self Storage

ALottaStuff Self Storage is a Nashville-based self storage facility that provides outstanding service and storage solutions for its customers. ALottaStuff Self Storage takes the risk out of leaving your valuables in an unsecure storage facility by providing 24/7 secure monitoring of all of its units. They have temperature controlled units available in addition to non-temperature controlled units. Customers can depend on ALottaStuff Self Storage to handle their belongings with the best of care. The company provides pickup and delivery services for an extra fee.  

In-Boxes Self Storage

In-Boxes Self Storage is a trusted Nashville self storage company that provides superior service to customers in Nashville and the surrounding areas. They are able to provide a convenient storage solution for a wide range of customers with multiple locations throughout the city. In-Boxes Self Storage offers low prices for do-it-yourself storage facilities. Drive-up units are available for a flat monthly fee and indoor temperature controlled units are available for an additional charge. In-Boxes Self Storage maintains a clean, secure atmosphere with friendly staff available during office hours to assist with customers’ storage needs.

Competitive Advantage

Secure Self Storage will be able to offer the following advantages over their competition:

• On-site staff are available to answer questions, help customers, and keep the facility clean at all times.

Marketing Plan

Brand & value proposition.

Secure Self Storage will offer the unique value proposition to its customers:

• Experienced team of security professionals, customer service associates, and maintenance staff on-site 24/7 to help customers and keep the facilities clean, safe, and secure.
• Unbeatable pricing to its clients – Secure Self Storage offers competitive pricing with promotions and discounts for new and returning customers.

Promotions Strategy

The promotions strategy for Secure Self Storage is as follows:

Word of Mouth/Referrals

Bill Williams has built rapport with an extensive list of customers over the years by providing exceptional service during his tenure as a self storage manager. Many have communicated to Bill that they referred their friends to the storage facility because they were happy with the service he was providing. Once Bill advised them he was leaving to open his own self storage business, many contacts have committed to help spread the word of Secure Self Storage.

Professional Associations

Secure Self Storage will become a member of professional associations such as the Self Storage Association, the Nashville Self Storage Association, and Inside Self Storage. Bill will attend industry expos and events to promote the company.

Print Advertising

Secure Self Storage will have print ads and flyers made for newspapers, magazines, direct mailers, and to post around the city and hand out at industry events.

Website & Content Marketing

Secure Self Storage will create and maintain an easy to navigate, well organized, informative, website that will list all of the available storage options and pricing. The website will also contain an informative blog with storage related posts.

SEO Marketing

The company will use SEO marketing tactics so that any time someone types in the Google or Bing search engine “Nashville self storage” or “self storage near me”, Secure Self Storage will be listed at the top of the search results.

Social Media Marketing

Secure Self Storage will create and maintain an active presence across social media platforms including LinkedIn, Facebook, Instagram, Twitter, TikTok, and YouTube.

The pricing of Secure Self Storage will be competitive so customers feel they receive value when purchasing their services.

Operations Plan

The following will be the operations plan for Secure Self Storage.

Operation Functions:

• Bill Williams will be the Owner and Manager of the company. He will oversee all staff and operations. Bill has spent the past year recruiting the following staff:
• Ken Smith – Financial Manager who will provide all accounting, budgeting, tax payments, and monthly financial reporting.
• Shannon Bowman – Marketing Manager who will provide all sales and marketing initiatives for Secure Self Storage including management of the company website and social media accounts.
• Benjamin Stephens – Maintenance Manager who will oversee all maintenance of the facility.
• Micheal Brown – Head of Security who will provide all security for the facility and oversee a small team of on-site security guards.

Milestones:

Secure Self Storage will have the following milestones complete in the next six months.

8/1/2022 – Finalize contract to lease facility space.

8/15/2022 – Finalize personnel and staff employment contracts for the management team.

9/1/2022 – Begin build out of the facility.

9/15/2022 – Begin networking and marketing campaign.

9/22/2022 – Begin moving into the Secure Self Storage facility.

10/1/2022 – Secure Self Storage opens its facility for business.

Bill has recruited the help of his peer, Ken Smith, a financial professional with a Masters degree and fifteen years of experience doing financial work for various construction companies. Ken will help manage the finances for the company from finding a cost-effective location to set up shop to reporting and budgeting to make sure the facility is profitable.

Financial Plan

Key revenue & costs.

The revenue drivers for Secure Self Storage are the self storage fees that will be charged to the customers for their services. The company will charge a monthly fee for unit rentals. The fee will vary depending on the size of the unit.

The cost drivers will be the overhead costs required in order to staff a self storage facility. The expenses will be the payroll cost, utilities, maintenance costs, and marketing materials.

Funding Requirements and Use of Funds

Secure Self Storage is seeking $250,000 in debt financing to launch its self storage business. The funding will be dedicated towards securing the facility space and purchasing equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Average number of occupied units per month: 200 out of the total 500 units (40%)
• Average fees per month: $30,000 (average $150.00 per medium sized unit)
• Annual Lease on Facility: $100,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Self Storage Business Plan FAQs

What is a self storage business plan.

A self storage business plan is a plan to start and/or grow your self storage business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your self storage business plan using our Self Storage Business Plan Template here .

What are the Main Types of Self Storage Businesses?

There are a number of different kinds of self storage business , some examples include: Portable container, Climate controlled storage, and Vehicle storage.

How Do You Get Funding for Your Self Storage Business Plan?

Self storage businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Self Storage Business?

Starting a self storage business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Self Storage Business Plan - The first step in starting a business is to create a storage facility business plan pdf or doc that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your self storage business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your self storage business is in compliance with local laws.

3. Register Your Self Storage Business - Once you have chosen a legal structure, the next step is to register your self storage business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your self storage business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Self Storage Equipment & Supplies - In order to start your self storage business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your self storage business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

Learn more about how to start a successful self storage business:

• How to Start a Self Storage Business

Self Storage Business Plan PDF Example

• June 17, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful self storage business. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your self storage business’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a self storage business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the services industry, this guide, complete with a business plan example, lays the groundwork for turning your self storage business concept into reality. Let’s dive in!

Our self-storage business plan is structured to cover all essential aspects needed for a comprehensive strategy. It outlines the business’s operations, marketing strategy , market environment, competitors, management team, and financial forecasts.

• Executive Summary : Offers an overview of your self-storage business’s concept, market analysis , management, and financial strategy.
• Facility & Location: Describes the facility’s design, amenities, and why its location is appealing to potential clients.
• Services & Rates: Lists the services provided by your self-storage business, including types of storage units, additional services, and pricing structure.
• Key Stats: Shares industry size , growth trends, and relevant statistics for the self-storage market.
• Key Trends: Highlights recent trends affecting the self-storage sector.
• Key Competitors : Analyzes main competitors nearby and how your business differs from them.
• SWOT: Strengths, weaknesses, opportunities, and threats analysis.
• Marketing Plan : Strategies for attracting and retaining customers.
• Timeline : Key milestones and objectives from start-up through the first year of operation.
• Management: Information on who manages the self-storage business and their roles.
• Financial Plan: Projects the business’s 5-year financial performance, including revenue, profits, and expected expenses.

Self Storage Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary introduces your self storage business plan, offering a concise overview of your storage facility and its services. It should detail your market positioning, the range of storage solutions you offer, its location, size, and an outline of day-to-day operations.

This section should also explore how your self storage business will integrate into the local market, including the number of direct competitors within the area, identifying who they are, along with your facility’s unique selling points that differentiate it from these competitors.

Furthermore, you should include information about the management and co-founding team, detailing their roles and contributions to the business’s success. Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your storage facility’s financial plan.

Make sure to cover here _ Business Overview _ Market Overview _ Management Team _ Financial Plan

Business Overview

For a Self storage business, the Business Overview section can be concisely divided into 2 main slides:

Facility & Location

Briefly describe the storage facility’s physical environment, emphasizing its security, cleanliness, and the overall ease of access that welcomes clients. Mention the facility’s location, highlighting its accessibility and the convenience it offers to clients, such as proximity to residential areas or ease of access from main roads. Explain why this location is advantageous in attracting your target clientele.

Services & Rates

Detail the range of storage options and services offered, from small lockers and medium-sized units to large units suitable for vehicle storage. Outline your pricing strategy , ensuring it reflects the quality of services provided and matches the market you’re targeting. Highlight any packages, discounts for long-term rentals, or additional services such as climate control, 24/7 access, or insurance options that provide added value to your clients, encouraging repeat business and customer loyalty.

Make sure to cover here _ Facility & Location _ Services & Rates

Market Overview

Industry size & growth.

In the Market Overview of your self storage business plan, start by examining the size of the self storage industry and its growth potential. This analysis is crucial for understanding the market’s scope and identifying expansion opportunities.

Key Market Trends

Proceed to discuss recent market trends , such as the increasing demand for personal and business storage solutions, the rise of e-commerce leading to a need for inventory storage, and the growing trend of downsizing and decluttering among consumers. Highlight the demand for specialized storage options like climate-controlled units, and the increasing focus on security features and convenient access.

Key Competitors

Then, consider the competitive landscape, which includes a range of storage facilities from high-end, full-service options to budget-friendly alternatives, as well as DIY storage solutions like portable storage containers. Emphasize what makes your storage facility distinctive, whether it’s through superior security measures, exceptional customer service, a wide range of unit sizes, or specialized storage options. This section will help articulate the demand for self storage services, the competitive environment, and how your facility is positioned to thrive within this dynamic market.

Make sure to cover here _ Industry size & growth _ Key competitors _ Key market trends

Dive deeper into Key competitors

First, conduct a SWOT analysis for the self storage business, highlighting Strengths (such as prime location and robust security measures), Weaknesses (including high operational costs and strong competition), Opportunities (for example, increasing demand for storage solutions due to downsizing and e-commerce growth), and Threats (such as economic downturns that may decrease consumer spending on storage services).

Marketing Plan

Next, develop a marketing strategy that outlines how to attract and retain clients through targeted advertising, promotional discounts, engaging social media presence, and community involvement.

Finally, create a detailed timeline that outlines critical milestones for the storage facility’s opening, marketing efforts, client base growth, and expansion objectives, ensuring the business moves forward with clear direction and purpose.

Make sure to cover here _ SWOT _ Marketing Plan _ Timeline

Dive deeper into SWOT

Dive deeper into Marketing Plan

The Management section focuses on the storage business’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the storage business toward its financial and operational goals.

For your self storage business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

Financial Plan

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your self storage business’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your self storage business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

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Self Storage Business Plan Template

Written by Dave Lavinsky

Self Storage Business Plan

Over the past 20+ years, we have helped over 9,000 entrepreneurs and business owners create business plans to start and grow their self-storage facilties. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a self storage business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Self Storage Business Plan?

A business plan provides a snapshot of your self-storage business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Self-Storage Facility

If you’re looking to start a self-storage or storage unit business, or grow your existing self-storage business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your self-storage business in order to improve your chances of success. Your self storage business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Self Storage Facilities

With regards to funding, the main sources of funding for a self-storage business are personal savings, credit cards, bank loans, and angel investors. With regards to bank loans, banks will want to review your self storage business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a self storage facility is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding or, like a bank, they will give you a loan. Venture capitalists will not fund a self-storage business. They might consider funding a self-storage business with a national presence, but never an individual location. This is because most venture capitalists are looking for millions of dollars in return when they make an investment, and an individual location could never achieve such results.

Finish Your Business Plan Today!

How to write a business plan for a self storage business.

If you want to start a self storage facility or expand your current one, you need a business plan. Below we detail what should be included in each section of your business plan for a storage facility.

Executive Summary

Your executive summary provides an introduction to your self storage business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of self-storage business you are operating and the status. For example, are you a startup, do you have a self-storage business that you would like to grow, or are you operating a chain of self-storage facilities.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the self-storage industry. Discuss the type of self-storage business you are operating. Detail your direct competitors. Give an overview of your target market. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of storage business you are operating.

For example, you might operate one of the following types of storage businesses:

• Portable container : this type of storage business allows customers to easily transport self storage units.
• Climate controlled storage : this type of storage business protects and preserves property against harmful temperature and humidity levels.
• Vehicle storage : this type of storage business allows customers to safely store various types of vehicles.

In addition to explaining the type of storage business you will operate, the Company Analysis section of your storage unit business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of occupied self storage units, contract renewals, number of referrals, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

While this may seem unnecessary, it serves multiple purposes.

First, researching the self storage industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your storage business plan:

• How big is the storage industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your self storage facility? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your storage unit business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: students, business owners, families, and people who are relocating.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of self-storage business you operate. Clearly, students would want different service options and would respond to different marketing promotions than families who are relocating, for example.

Try to break out your target market in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the customers you seek to serve. Because most self-storage facilities primarily serve customers living in the same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other self storage facilities.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes businesses with their own storage space and people who store extra items in their attics or basements. You need to mention such competition to show you understand that not everyone who needs storage will utilize a self-storage company.

With regards to direct competition, you want to describe the other self-storage facilities with which you compete. Most likely, your direct competitors will be self-storage facilities located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What types of storage services do they offer?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of the competitive analysis section of your business plan is to document your areas of competitive advantage. For example:

• Will you provide superior services?
• Will you provide services that your competitors don’t offer?
• Will you make it easier or faster for customers to use your services?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your business plan.  

Marketing Plan

Product : In the product section, you should reiterate the type of storage business that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to self storage, will you provide 24-hour security, electronic gate access, or on-site staff?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your self storage business. Document your location and mention how the location will impact your success. For example, is your self storage business located near a main highway, near public transportation, etc. Discuss how your location might provide a steady stream of customers.

Promotions : The final part of your self storage marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to local websites
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your self storage business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your storage business, including security management, facility maintenance, and customer service.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to lease 100 self storage units, or when you hope to reach $X in revenue. It could also be when you expect to expand your facility or launch in a new location.  

Management Team

To demonstrate your self storage business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in managing self storage facilities. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing self storage companies or successfully running small businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $100,000 on building out your self storage business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. For example, let’s say a local office building approached you with a $50,000 contract to provide self storage services for their building occupants. Let’s further assume the contract would cost you $50,000 to fulfill in terms of increased staffing costs. Well, in most cases, you would have to pay that $50,000 now for employee salaries, utilities, etc. But let’s say the company didn’t pay you for 180 days. During that 180-day period, you could run out of money.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting a self storage business and growing it:

• Location build-out including design fees, construction, etc.
• Cost of equipment like surveillance technology, dollies, and climate control systems
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your location lease or a blueprint of your facility.  

Putting together a business plan for your own self storage business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the self storage industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful self storage business.

Self Storage Business Plan FAQs

What is the easiest way to complete my self storage business plan.

Growthink's Ultimate Business Plan Template  allows you to quickly and easily complete your Self Storage Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of self storage business you are operating and the status; for example, are you a startup, do you have a self storage business that you would like to grow, or are you operating multiple self storage businesses.

Don’t you wish there was a faster, easier way to finish your Self Storage business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s business plan consultants can create your business plan for you.

Other Helpful Business Plan Articles & Templates

Everything You Need to Know About How to Start a Self-Storage Business

From Alaska to Alabama, roughly 50,000 self-storage facilities are scattered around the country. That’s about the same number of McDonald’s, Starbucks and Subway locations across the U.S.  combined . These facilities are the foundation of the U.S. self-storage industry , which was projected to generate $37 billion in revenue in 2019.

At each of these self-storage facilities, people pay rent — usually by the month — to store their stuff in units of various sizes. They could be stashing furniture, art, appliances, TVs, documents, holiday decorations, wine, vehicles, boats or RVs. Many small businesses rely on self-storage units to keep business equipment, inventory and supplies. Some customers even have converted self-storage units into high-end “man caves” and “she sheds.”

Each of those self-storage properties is not only a warehouse for our wares — every facility also is a small business. And it can be a lucrative business, at that. By one estimate, the typical profit margin of a self-storage business in the U.S. is 11%. That’s well above the profit margins for many other types of small businesses; for example, the typical profit margin of a restaurant ranges from 3% to 5%.

Given those numbers, starting a self-storage business sounds pretty appealing, doesn’t it? It sure does. However, anybody looking at starting a self-storage company must look beyond the profits and weigh the practical considerations:

• How much will it cost to start a self-storage business?
• What kind of research and planning do you need to do before starting a self-storage business?
• Should you buy an existing self-storage facility?
• Should you build a self-storage facility from the ground up?
• How will you manage and market your self-storage facility?

Those are big questions, of course, but then starting a self-storage business is a big undertaking. Follow along as we guide you through what it takes to start a self-storage business.

How Much Will it Cost to Start a Self-Storage Business?

Before scouting locations for a self-storage facility — no matter whether you’re looking at buying an existing facility or building a new one — you’ll need to crunch some numbers.

At the outset, you’ll need a good sense of how much it’ll cost to get into the self-storage business. The numbers will vary widely based on a variety of factors, such as location, acquisition costs, land costs and facility construction costs . (We’ll get into the details later.)

Not only must you think about the costs to purchase or develop a facility, but you also must examine where the money will come from:

• Do you have enough liquid assets to buy or develop a self-storage facility on your own? Can you afford to earmark those assets for a self-storage facility?
• Do you need to take out and acquisition or construction loan?
• Do you need to recruit self-storage investors to help finance an acquisition or development deal?

After you’ve come up with answers to those questions, you’ll need to figure out how much it’ll cost to operate the facility once it’s yours. Are you and your family going to run it on your own? Will you have to hire staff to operate it? Would it be best to leave the operations side to a third-party management company? Do you need to install self-storage management software such as SiteLink ? In the end, how much time do you want to spend running a self-storage facility?

Remember, a self-storage facility is more than a structure. It’s a business.

To get into the storage business, you’ll almost assuredly need to carve out millions of dollars to purchase or construct a facility, and to cover various operating expenses, particularly payroll and taxes. A report released in early 2018 by commercial real estate company CBRE shows real estate taxes accounted for 28 percent of all self-storage operating expenses, with on-site and off-site management costs eating up another 38 percent of operating expenses.

What Kind of Research and Planning Do You Need to do Before Starting a Self-Storage Business?

Once you’ve done some high-level thinking about starting a self-storage business, it’s time to do some research. All of that research will go into a feasibility study that will, as its name suggests, tell you whether the business idea is feasible. You might be able to do this study on your own, but you’d be better off hiring a self-storage consultant to perform it.

Whichever route you go, you need to answer a critical question:

If I build it or buy it, will they come?

In other words: if you invest money in a self-storage facility, will you generate enough revenue to cover debt service and operating expenses, and still make a profit?

Performing market research is crucial. This exercise will help you pinpoint the demographics of the customer base within a one- to five-mile radius of the facility. A three- to five-mile area is the typical size of a market for a self-storage facility.

You’ll want to nail down the median income in the market area (self-storage renters tend to be in the middle-income and upper-middle-income brackets), along with the median age (self-storage tenants are normally in their early 20s to mid-50s).

In addition, you’ll want to review the following aspects of your proposed market area:

• Current population (anywhere from about 20,000 people in a rural setting to 100,000 or more in an urban setting, as a general guideline).
• Projected population growth (more people means more prospective tenants).
• Daily vehicle traffic (the majority of self-storage facilities depend heavily on drive-by traffic to attract customers).
• Competitive landscape. Which self-storage facilities already are operating in the area? What is their occupancy rate? Are there any facilities that are under construction or are planned within the trade area?

Other components of the feasibility study normally will include an overview of the self-storage industry; long-range projections for rental rates, income, expenses and property value; and details about the storage project’s zoning.

Writing a Business Plan

Every business should have a business plan. Simply put, a business plan can help propel a business toward success, letting you realize your goals and manage issues that might arise. Most lenders will want to see a business plan before extending a loan.

Lots of online templates are available for writing a business plan, so you certainly can try tackling it on your own. You also can seek assistance from a nonprofit like SCORE, which offers free business mentoring, or you can hire a writer who specializes in business plans.

Keep in mind that a business plan for an existing self-storage facility will look quite different from a business plan for a proposed facility.

Each business plan should be tailored to your own needs, but a business plan for a self-storage facility usually will feature information such as:

• Mission statement.
• Vision statement.
• Ownership structure.
• Business structure (such as an LLC, or limited liability corporation).
• Staff roles and responsibilities.
• SWOT analysis (strengths, weaknesses, opportunities and threats).
• Market analysis.
• Competitive analysis.
• Marketing and sales strategies.
• Pricing strategy. Roughly speaking, monthly rents for a self-storage facility in a high-population area can be anywhere from 50 cents to $4 per square foot.
• Menu of product and service offerings, including a rundown of the unit sizes, like 5×5, 10×10 and 10×20.
• Sources of capital.
• Revenue streams.
• Revenue and expense projections covering several years. Financial modeling will enable estimates of revenue and expenses on a per-square-foot basis.

One factor in making sure revenue projections are met is marketing. While drive-by traffic delivers lots of customers, marketing — particularly online self-storage marketing — can’t be ignored. Self-storage consumers increasingly are turning to the internet as their first stop when shopping for a storage unit.

Any smart internet strategy should ensure your facility can be found on search engines like Google as well as through online self-storage marketplaces like SpareFoot. In addition, your facility’s website should be up to date. Companies like storeEDGE specialize in developing, revamping and maintaining mobile-ready websites for self-storage operators .

How to Create a Self-Storage Business Plan [Plus a Free Template!]

Should You Buy an Existing Self-Storage Facility?

In terms of buying an existing facility , prices are all over the map, just as the self-storage facilities themselves are. As you might expect, an existing self-storage facility in New York City, NY, likely will go for tens of millions of dollars, whereas an existing facility in rural Iowa likely can be purchased for less than $1 million.

A spot analysis of storage facilities for sale in March 2019 found that asking prices generally ranged from $1 million to $10 million per facility. Some facilities on the market also were bundled for sale as a single portfolio.

Unless you’re a licensed real estate professional, it’s wise to hire an experienced self-storage broker to help you find and eventually buy a facility. A seasoned broker knows the market and knows how to negotiate the price.

If you’re going to be running the facility, you, of course, will want to buy a facility in the region where you live. But if you’ll be handing over operations to a third-party management company, then it doesn’t necessarily matter where the facility is. Just be sure you and your broker have a good grasp of the local market.

Should You Build a Self-Storage Facility from the Ground Up?

This should come as no surprise, but location also plays a big part in the cost of building a new facility . You might be able to put up a single-story, 40,000-square-foot self-storage development in a small town for $1 million or less, whereas a two-story, 80,000-square-foot facility in a more urban setting could set you back $6 million. Keep in mind that these are rough estimates.

As a rule of thumb, you can expect to spend anywhere from $25 to $75 per square foot on new construction. However, that’s merely an approximate range. Again, the location of the facility — including the cost of the land — will dictate the price tag for construction.

Here are some statistics to keep in mind if you’re developing a self-storage facility:

• Facilities range from 10,000 square feet to 100,000 square feet or more.
• The average self-storage facility encompasses 46,000 net rentable square feet (the amount of money-generating space that can be rented by tenants).
• A facility typically covers 2.5 to 5 acres.

What follows are six things to take into account when you’re building storage units:

• What will the mix of units be?  If the facility is in a trade area that’s populated predominantly by apartment renters, then you might want to include more small units, such as 5×5 or 5×10. But if the residents of the trade area are mostly homeowners, more 10×10 and 10×20 units might be in order.
• Should the facility consistent only of drive-up units or only indoor-access units?  Or should there be a blend of drive-up and indoor-access units. The answers depend on the demographics of the trade area.
• Should there be only climate-controlled units or only non-climate-controlled units?  Or should there be a combination of the two? The local climate will come into play regarding this decision, as will your construction budget.
• Should you limit the facility to one building?  Or will you have enough room — and does it make sense — to spread the units across several buildings? How much land is available, along with how much demand is projected, will influence the configuration of the facility.
• Should space be set aside for storage of boats, RVs and other vehicles?  The answer hinges, in part, on market research indicating how many boat, RV and vehicle owners live in the trade area.
• Should you look at converting an existing structure, such as a shuttered retail store, into a self-storage facility?  A number of self-storage developers have successfully transformed unused and often overlooked spaces into tax-revenue-generating, job-creating storage facilities.

Aside from what the facility will look like, another key factor is zoning and entitlement.

A huge issue will be how the property is zoned. If the property is already zoned for self-storage, then that removes a huge hurdle. But if the property needs to be rezoned, then you could devote months or even years to seeking approval for a zoning change.

In some places, government officials and local residents vigorously oppose self-storage facilities, based on the ill-informed notion that these facilities are magnets for crime and traffic, and that they’re eyesores. The reverse is actually true. Self-storage facilities don’t cause a rise crime or traffic, and many modern facilities are being designed to fit into and even accentuate neighborhoods.

Additionally, there’s the issue of entitlement. This involves obtaining approval from government entities for your development plans. As with rezoning, an entitlement case could drag on for months upon months.

All of that being said, keep two things in mind:

• Development of a self-storage facility takes time and patience (and, of course, money).  Aside from the zoning and entitlement, construction can be delayed by bad weather, shortages of labor and limited supplies of construction materials.
• Development of a self-storage facility requires expertise.  A development team should include seasoned legal, real estate, financial, construction and design professionals. Few people who are new to the self-storage industry can go it alone when developing a new facility.

Financing a Self-Storage Facility

Just as there is with any business, there are some hard truths about self-storage, no matter whether you’re talking about a newly constructed or newly acquired facility.

For one thing, you’ll need money to launch the business and keep it running.

As we mentioned before, the amount of money you put into a facility varies greatly, based on location and myriad other factors. But before you spend a dime, you’ll have to decide how you’ll go about financing an acquisition or a new development.

For instance, will you need to take out a loan? A number of options are available, such as acquisition loans, construction loans and SBA loans. Many of these loans cover terms of 10 to 25 years. Work with a lending professional who’s well-versed in the self-storage industry to point you in the right direction.

To qualify for a self-storage loan, here are four things you’ll likely need:

• A credit score of at least 680.
• A credit history clear of recent bankruptcies, foreclosures and tax liens.
• A cash down payment of 10 percent or more.
• A business track record of at least three years.

Perhaps you don’t need to take out a loan and, instead, have enough liquid capital to buy or build a facility. However, do you have enough money to operate the facility? You don’t want to drain your retirement fund to purchase or develop a self-storage facility.

Or you might consider teaming up with other investors to buy or build a facility. This can be done through:

• A debt partnership, which is a lending relationship that does not assign an ownership stake to the person or entity you are borrowing the money from.
• An equity partnership, with each partner chipping in a certain amount of cash and owning a share of the business.
• A joint venture with, say, a self-storage developer. Each partner owns a certain percentage of the business.
• A syndicate of accredited investors assembled for the sole purpose of buying or developing a facility.
• A tenant-in-common arrangement, which allows at least two people to own a property and enables the relatively seamless transfer of an ownership stake to another party.

Financing Options for Self-Storage Businesses

How Will you Manage and Market Your Self-Storage Facility?

While storage facilities traditionally generate healthy, stable cash flow, anyone entering the self-storage business must realize that this won’t be a get-rich-quick operation.

Generally speaking, the occupancy rates of self-storage facilities range from 70% to 95%. With a facility that’s newly constructed or that’s being repositioned, a new owner often will face a lease-up period of 18 to 36 months before a facility reaches occupancy stabilization. Positive cash flow also could be years down the road.

However, the good news is that the breakeven occupancy rate for a self-storage facility falls well below other asset classes. By one measure, the breakeven point is 40% to 45% occupancy in self-storage , versus 60% or more in the multifamily sector. Furthermore, self-storage facilities boast some of the best shorter-term and longer-term returns in commercial real estate.

When it comes to buying a self-storage facility, one investment number that’s essential to note is the capitalization rate (cap rate for short). “Capitalization rates are always the over-arching consideration for both buyers and sellers in the self-storage industry,” according to self-storage brokerage firm SkyView Advisors.

As explained by SkyView Advisors, the cap rate is the ratio of a property’s NOI (net operating income) to the value of the property. For example, if a property sells for $1.5 million and its NOI is $120,000, then the cap rate is 8% ($120,000 is 8% of $1.5 million).

“In the simplest terms, the cap rate reveals to an income property investor what percentage [he/she] can expect to earn if he buys the property with all cash,” SkyView Advisors said.

For example, if an investor thinks a property is worth a cap rate of 8%, then he or she expects a cash return of 8%.

In the third quarter of 2018, cap rates for self-storage facilities ranged from 4.5% among Class A facilities to 8.5% for Class C facilities, according to CBRE.

Bottom Line

At the end of the day, buying or building a self-storage facility will most certainly consume time, energy and money. However, the payoff can be substantial in a continually growing industry. Evidence of that growth abounds:

• In 2018, self-storage occupancy rates and rental rates in a number of U.S. markets reached record highs.
• Demand for self-storage keeps going up thanks to an array of trends, including the overall downsizing of baby boomers’ households, the general preference among millennials for renting apartments versus owning homes and the sustained mobility of American workers.
• Over time, self-storage has demonstrated that it’s a recession-resistant sector.

In short, self-storage furnishes a wealth of reasons why acquiring an existing facility or building a new facility can open the roll-up door to attractive investment gains.

“Storage facilities need little capital outlay or upkeep, their property taxes are modest, and net acquisitions in that sector have surged,” Forbes.com contributor Brad Thomas observed in November 2017. “And so, in good times and in bad, kind of like marriage, good old storage units are like a trusty … spouse.”

Related Resources:

How to Buy a Self-Storage Facility

Thinking about buying a self-storage facility? Here is what you need to know before starting your search. Keep Reading

How to Sell a Self-Storage Facility

It's time to sell your self-storage facility and cash out. Here's what you need to know to prepare your units for sale. Keep Reading

Do You Need a Self-Storage Feasibility Study?

Before you invest in building, find out why you should first invest in a self-storage feasibility study. Keep Reading

Self Storage Business Plan Template & Guidebook

How to write a self storage business plan in 7 steps:, 1. describe the purpose of your self storage business..

The first step to writing your business plan is to describe the purpose of your self storage business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

Our mission is to provide our customers with top-of-the-line self storage facilities and innovative storage solutions, while preserving a safe and secure environment for their items. We are committed to delivering an exceptional service experience that is tailored to meet the unique needs of each customer, while ensuring an outstanding value.

2. Products & Services Offered by Your Self Storage Business.

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

Target market, customer base , product or service description, competitive analysis, marketing channels, form an llc in your state, 4. write your operational plan..

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

What equipment, supplies, or permits are needed to run a self storage business?

5. management & organization of your self storage business., 6. self storage business startup expenses & captial needed..

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your self storage business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Frequently Asked Questions About Self Storage Business Plans:

Why do you need a business plan for a self storage business.

A business plan for a self storage business is important for identifying goals, strategies, and the resources needed to open and operate a successful facility. It also helps clarify key issues such as customer needs, target market, competitive advantage, and financial projections. It can provide structure for the business and guide decision-making. Additionally, potential lenders and investors will likely review the business plan before deciding whether or not to offer funding.

Who should you ask for help with your self storage business plan?

Can you write a self storage business plan yourself.

Yes, it is possible to write a self storage business plan yourself. To do so, you'll need to research the industry, find potential locations, and analyze the competition. You'll also need to develop a marketing plan, financial projections, and legal considerations for your particular business. Additionally, you'll need to write out your operational plan, detailing how you plan to manage and maintain your facility. Lastly, be sure to thoroughly review your plan with legal and financial advisors before launching your business.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

StorageFacilityBusinessPlan.com

A business planning package for a storage facility.

Storage Facility Business Plan Development Tools

Below is a PDF of the Storage Facility Business Plan that accompanies your purchase of the package. This is the business plan only, and the purchased package contains 10 other documents (Word, Excel, and PowerPoint files) that you can use to develop a plan specific for raising capital to develop a Storage Facility.

$29.95 – Purchase Checkout Added to cart

The Storage Facility Business Plan toolkit features:

• Bank/Investor Ready Business Plan for a Storage Facility
• Complete Industry Research (including analysis of COVID-19 Issues)
• 3 Year Easy-to-Use Question and Answer Based Excel Model
• Storage Facility Marketing Plan
• Interactive Storage Facility Pitch Deck
• Loan Amortization and ROI Tables
• Three Storage Facility SWOT Analysis Templates
• How to Start a Storage Facility Guide
• Easy to Follow Instructions
• Meets SBA Requirements
• All Documents in Word, Excel, and PowerPoint
• Immediate Download After Purchase

The chapter list of the business plan is as follows:

• 1.0 Executive Summary
• 2.0 Use of Funds and Business Ownership Overview
• 3.0 Storage Facility Operations
• 4.0 Economic, Industry, Customer, and Competitive Analysis
• 5.0 Marketing Plan
• 6.0 Personnel Summary, Payroll Overview, and Headcount
• 7.0 Financial Plan (including profit and loss, cash flow analysis, balance sheet, breakeven analysis, marketing ROI, and business ratios)
• Appendix A – SWOT Analysis
• Appendix B – Expanded Profit and Loss Statements
• Appendix C – Expanded Cash Flow Analysis
• Appendix D – Loan Amortization Table

The accompanying marketing plan document has the following chapter list:

• Introduction
• General and Traditional Marketing Strategies
• Online Marketing Strategies
• Demographic Outline
• Return on Marketing Overview
• Service Differentiation
• Financial Results Overview

A video overview of the excel model included in your purchase:

Self Storage Business Plan Template [Updated 2024]

I. Executive Summary

This Section's Contents

Business Overview

Products & services provided, customer focus, management team, success factors, financial highlights.

[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.

[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

[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.

[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 where he was able to learn the ins and outs of the storage industry. His experience will be the company’s most valuable asset.

[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.

[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

Comments are closed.

Self Storage Business Plan Home I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

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Self Storage Business Plan Sample

Published Jun.05, 2018

Updated Apr.24, 2024

By: Jakub Babkins

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Table of Content

Do you want to start self storage business?

Do you want to start a self storage business? A self storage company provides storage space (such as lockers, containers, rooms, outdoor space) to individuals and businesses. People use the services of self storage companies whenever they run out of space, move to a new place or simply do renovations in their homes. Businesses and companies operating in small facilities use the services of self storing companies for storing their business inventory or archives since they are unable to store these things due to limited space. And considering the economic situation of today, where people are forced to live in small homes and business are forced to operate in small offices, self storage businesses have become a need for everyone. So if you want to start this business, chances of making profits are really high. In case, you don’t know how to start your own self storage business , the first thing you must do is to prepare a comprehensive business plan which will establish the basis of your company’s future operations and decisions. To help you make your self-storage business plan, we are here providing you the business plan for a self storage business startup named ‘Houston Self Storage’

Executive Summary

2.1 the business.

Houston Self Storage is licensed and insured self storage company located in Downtown Houston. The company will provide short- and long-term self storage services by offering storage units in various sizes to accommodate all sorts of storage needs of the customers. Our storage units business model is specifically designed to fulfill the requirements of all sorts of customers.

2.2 Management

Houston Self Storage will be a joint venture owned by Jack Elisken and Mike Harvin, both of which are experienced industry professionals. Jack has been associated with storage industry while Mike has been associated with the moving industry, so both of them have the right resources and knowledge needed for starting a self storage business . This venture will be equally funded by both parties and both will have equal ownership in it.

2.3 Customers

Our target market is the residential community, institutions and organizations as well as the corporate sector based in Houston. Considering our target customers, we are based in the best possible location for opening a self storage business .

2.4 Target of the Company

We aim to become the best self storage business of Houston within next five years of our startup. Our main business targets to be achieved as milestones over the course of next three years are as follows:

• To achieve the net profit margin of $10k per month by the end of the first year, $15k per month by the end of the second year, and $25k per month by the end of the third year
• To balance the initial cost of the startup with earned profits by the end of the first year
• To start another storage center in Texas city after six years of startup

Company Summary

3.1 company owner.

Houston Self Storage will be a joint venture owned by Jack Elisken and Mike Harvin. Jack is a highly experienced industry professional and has been serving as the General Manager of New State Warehouse for the last 7 years. Mike owns a moving company, Realtime Movers. The venture will be equally funded by both parties and both will have equal ownership in it.

3.2 Why the Business is being started

Jack and Mike have decided to start self storage business for the purpose of making profits in this industry. Considering the increasing population of Houston and relatively less self storage facilities in the city, their venture has fair chances of succeeding.

3.3 How the Business will be started

Starting a self storage business is not easy since you have to considered a lot of things. In case you don’t know how to start a self storage business , you can take help from this sample self-storage business plan. Houston Self Storage will be located in Downton Houston, a place where it is needed the most. The facility covers an area of about 55,000 square feet and is divided into various segments of 10-by-30-foot storages, 10-by-25-foot storages, 10-by-20-foot storages, 10-by-15-foot storages, 10-by-10-foot storages, 5-by-10-foot storages, and 5-by-5-foot storages. The financial experts have forecasted following costs for expenses, assets, investment, and bank loans for the startup .

The detailed startup requirements, startup funding, startup expenses, total assets, total funding required, total liabilities, total planned investment, total capital and liabilities are given in the table below.

Services for customers

A self storage business can be immensely profitable provided that you plan it effectively and choose the right place for its startup. A self storage business profit margin depends on what services will you provide to your customers so make sure to plan your services before you think about how to start a storage unit business . Planning your services before opening a storage facility is also important because it helps you with the planning of other subsequent components.

Houston Self Storage will provide short- and long-term self storage services to its customers. We will offer storage units in various sizes to accommodate all sorts of storage needs of our customers. All storage units will be completely secure from theft and other sorts of damage. We will be open 24/7 for providing you the services you deserve. Our facilities will always be clean, well-lit and we will provide moving carts to facilitate our customers with loading and unloading of stuff. Our main services can be divided into following categories.

• Standard Self Storage Units: We will provide standard self storage units in various sizes to accommodate all your goods. Our storage units are specially designed while keeping user requirements in mind.
• Temperature-Controlled Self Storage Units: In addition to standard storage units, we will also provide climate-controlled self storage units in which constant temperature will be maintained throughout the year. These storage units are perfect for storing delicate items such as important documents, electronics, wood and furniture.
•  Packing and Storage Supplies: We will also provide a variety of packing and storage material for the convenience of our customers such as packing boxes, tapes and other important supplies.
•  Moving Services: We will also provide moving services to our customers within our storage facility by loading and unloading the goods of our customers.

Marketing Analysis of self storage business

The most important component of an effective <strong>self storage business plan</strong> is its accurate marketing analysis that’s why the company owners acquired the services of marketing experts to help them through this phase.

It is only after this stage that a good storage unit business model could have been developed. After identifying the availability of current self storage facilities and the current demand in Houston, the marketing experts and analysts also helped them to select the best site for starting a storage facility business . The success or failure of a self storage business totally depends upon its marketing strategy which can only be developed on the basis of accurate marketing analysis. Marketing analysis is a must-do thing before you even think about how to run a storage unit business . If you are starting on a smaller scale, you can do marketing analysis yourself by taking help from this self storage business plan template or other storage facility business plan samples available online. But if you are opening a storage business on a larger scale, it is always best to seek the counsel of marketing experts for developing a good storage unit business plan .

5.1 Market & Industry Trends

The first component of the marketing analysis of your storage units business plan is the feasibility analysis of the current self storage industry. Feasibility analysis dictates whether the industry has become saturated or not and helps figure out whether a startup in this industry will succeed or not. That’s why it must be catered before you start storage unit business .

The self storage industry started in 1960’s due to the increasing need for commercial and residential storage. Since its start, the industry has doubled in size each decade and the ROI have been greater as compared to other forms real estate investment. As of now, the self storage industry generates $38 billion annual revenue in just United States. The industry comprises of around 58,000 businesses and is responsible for employing more than 141,000 people across the country.

As per the growth statistics, the industry has seen a 7% growth rate from 2012 to 2017 and is also projected to increase in future. The reason behind this increase is the increasing tendency of people to live in rental house business and the increase in accumulation of leisure articles such as exercise equipment, wind-surfers, and skis etc. In short, considering the ever-increasing population, we can say that self storage industry is feasible for startups. Hence, you can open a storage unit business and can make it immensely profitable provided that you plan it successfully.

5.2 Marketing Segmentation

For developing an effective marketing strategy, it is crucial to analyze the market segmentation of the future customers of our self storage business. A successful and efficient marketing strategy can only be developed after a business completely knows its potential customers that’s why it is important to consider before starting a storage facility . Our target market is the residential community, institutions and organizations as well as the corporate sector based in Houston. Considering our target customers, we are based in the best possible location to open a storage unit business . Our experts have identified the following type of target audience which can become the future consumers of our services.

The detailed marketing segmentation of our target audience is as follows:

5.2.1 Residential Community:

Our first target group is the residential community based in Houston. The residential community comprised of people from all races and all sorts of background, most of which are financially stable. Due to economic decline, which has affected every single person in the United States, people are living in smaller houses which usually are unable to fit everything. Most people have accumulated leisure articles like exercise equipment, wind-surfers, and skis which they occasionally use, so most of the time people store such articles in self storages so as to avoid stuffing their homes. Another important aspect is about 44% of Houston population live on rent and whenever they have to move from one place to another, they use self storage services for temporarily storing their goods.

5.2.2 Local Businesses:

Our second target group is the local businesses and startups based in Houston. Many businesses in the city, such as retail outlets, often use self storage units for storing their stock on a temporary basis. Another important aspect is many startups and even some of the established businesses operate within limited space such as small offices so they need to stock their inventory and products in self storage units.

5.2.3 Institutions & Organizations:

Many institutions and organizations operating in limited space also need the services of self storage businesses to stock their inventory and products. The detailed market analysis of our potential customers is given in the following table:

5.3 Business Target

We aim to become the best self storage business of Houston within next five years of our startup. The company owners aim to start another storage center in Texas city after six years of startup. Our main business targets to be achieved as milestones over the course of next three years are as follows:

• To provide unparalleled services in the industry and set a benchmark of quality

5.4 Service Pricing

Service pricing is one of the most important factors in deciding the marketing strategy. Selecting the prices of services is difficult because startups have to attract customers while yield profit at the same time. These two things cannot be achieved at the same time and the only way out is to select a compromised trade-off between the two. After considering our competition and the market demands, we have priced our services in the similar ranges as of our competitors. The reason behind our pricing policy is to achieve MARR (minimum attractive rate of return) which would not be possible in case of offering our services in lower prices.

After identifying the market trends, the market demand, and the potential customers of the startup, the next step is to develop an ingenious sales strategy. Like marketing analysis, sales strategy is also an important component of a self storage business model and must be considered before you think about how to run a self storage business .

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6.1 Competitive Analysis

Self storage industry is a competitive one considering the fact that there are currently around 58,000 self storage businesses in the United States. However, we hope to excel our competitors due to several competitive aspects. Our first and the most important competitive advantage is our strategic location which is ideal to start a self storage business plan . We are located in Downtown which is the central hub for all local businesses and is very near to the residential zone of the city. In addition to our location, our quality services will also be one of our biggest competitive advantages. We will ensure that our storage units are clean and well-lit as well as safe and secure from theft or other sorts of damages. We will also provide moving carts to facilitate our customers with loading and unloading of stuff. Lastly, we will open round the clock, seven days of week, ensuring your access to your stuff at any time of the day.

6.2 Sales Strategy

After carrying out a detailed. our experts came up with the following brilliant ideas to advertise and sell ourselves.

• We will carry out a large-scale social media campaign for our advertisement.
• We will launch our website by which customers can know whether a storage unit with their desired requirements is vacant or not. Customers will also be allowed to make reservations through our webpage.
• We will offer customer referral awards to promote our services.

6.3 Sales Monthly

Our experts have forecasted following sales on a monthly basis which are summarized in the column charts below.

6.4 Sales Yearly

Our experts have forecasted following sales on a yearly basis which are summarized in the column charts below.

6.5 Sales Forecast

Considering the quality of our services, our sales pattern is expected to increase with years. By analyzing our market segmentation strategy, our experts have forecasted the following sales on a yearly basis which are summarized in the following column charts.

The detailed information about sales forecast, total unit sales, total sales is given in the following table.

Personnel plan

A business can succeed only if it is properly planned during its initial stages. Just like the planning of other components, you must also develop a personnel plan before you think about how to start a self storage facility . The personnel plan not only establishes what staff is required for the startup but it also gives an estimate of the costs incurred on their salaries. However, it is never easy to estimate the number and type of staff needed for a company before it is even launched therefore seek the help of HR experts before you open a self storage business .

7.1 Company Staff

Jack will act as the General Manager of the company while Mike will serve as the Chief Executive Officer of the company. Following staff has been estimated by HR experts for starting a self storage unit business .

• 2 Administrators / Accountants for maintaining financial records
• 4 Sales Executives responsible for marketing and discovering new ventures
• 20 Field Employees for operating and maintaining the storage
• 8 Movers for helping customers load and unload their stuff
• 8 Cleaners for keeping store clean at all times
• 2 Technical Assistants for managing website and social media pages
• 1 Front Desk Officer for acting as a receptionist
• 6 Security Officers

To ensure the best quality service, all employees will be selected through strict testing procedures and will be trained for a month prior to onboarding.

7.2 Average Salary of Employees

The following table shows the forecasted data about employees and their salaries for next three years.

Financial Plan

After deciding the strategy and personnel plan of the company, the next step is to develop a detailed map of the financial projections of the company. Just like the planning of other aspects, you must also prepare a financial plan before you start thinking about how to build a self storage business . The financial plan should craft a detailed map about the cost of startup, inventory, payroll, equipment, rent, utilities and how these costs will be covered with the profits. So, if you are thinking, is the self storage business a profitable business you’ll get your answer after you make a financial plan. To make an accurate financial plan, make sure to consult financial experts before you start your own storage unit business . The financial plan of Houston Self Storage is as follows.

8.1 Important Assumptions

The financial projections of the company are forecasted on the basis of following assumptions. These assumptions are conservative and can show deviation but to a limited level such that the major financial strategy of the company will not be affected.

8.2 Brake-even Analysis

 8.3 Projected Profit and Loss

8.3.1 Profit Monthly

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 Business Ratios

Download Self Storage Business Plan Sample in pdf

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Self Storage Business Plan

Many people tend to want to find a place where they can store anything, may it be cold food items, grain, or even household items they may not have space to store at home. Even when it means that the production or the work they do can be stored somewhere else, they will find a way for that. It goes without saying to be able to do this as a form of business venture, you have to at least be prepared for anything. As they will always say it is best to have all your plans from A to Z. It is no secret that having a place to store the things you want and need is quite helpful as well. But before you are going to do that, do you have a business plan to back up the reason for having a self-storage business? You know you need one. So here are examples you can download for such use. 

8+ Self-Storage Business Plan Examples

1. free self-storage business plan template.

• Google Docs
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2. Self-Storage Business Marketing Plan Template

3. Cold-Chain Self Storage Business Plan

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4. Editable Self-Storage Business Planning

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5. Portable Self-Storage Business Plan

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6. Sample Self-Storage Business Plan

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7. Self Cold Storage Business Plan

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8. Self-Storage Business operation plan

9. Self-Storage Facility Development Business Plan

Size: 11 MB

What Is a Self-Storage Business Plan?

We know that a business plan is a helpful tool used wherein a summary of your strategies is going to be written. A self-storage business plan is a kind of business plan that shows the strategic, comprehensive, and simplest ways to write down what you want to happen for your self-storage business. A management plan. The contents of your business plan will show you the big picture of how your business will grow in the future or at a specific time. In addition to that, a self-storage business plan also helps you write down your goals, objectives, and strategies and how you are going to achieve them. Milestones are also written in order to see how far you have achieved. For a self-storage business owner, a self-storage business plan is a tool they need in order to attain this goal.

How to Construct a Self-Storage Business Plan

Making a self-storage business plan is useful. You may already have heard of that reason before, but it is true. Working on any kind of business plan for your business is useful. Now, you may also already have an idea set in mind for making that self-storage business plan of yours. But it won’t hurt to take a look at these other guidelines to set it up.

1. Draft and Outline Your Self Storage Business Plan

Making a draft and outlining your business plan will be a great help for you. It is also going to be easier if you do this step first before going through the final output. Drafting out your business plan does not mean you are wasting time on it, it simply means that you are meticulous with what you want to happen. To make it even better while you draft it out, use the SMART method for your business plan.

2. List the Tools and the Strategies

Make a checklist or list down the tools and the strategies you are going to be doing for your self-storage business. Making a checklist for the tools is going to be easier for you to list down the necessary things you may need and the right tools to make it work as well. As for the strategies, your strategies must be doable and can help you make your storage business a success. This is why when you think about your strategies, think about how they can make your business a success.

3. Define Your Goals and Objectives

Define the goals and objectives in your business plan. When in doubt, remember the SMART method for your business plan. The goal of your business plan has to be what your self-storage is about. The same goes for your objectives. It should be doable, possible, and well-rounded objectives.

4. Set Up Milestones for Your Business Plan

Milestones for your business plan help maintain where you are in the business plan. It also helps you in a way that gives you a bigger picture of how well the business plan is going. In addition to that, the milestone is also going to be the stepping stone for making your self-storage business flourish.

What is a self-storage business plan?

A self-storage business plan is a kind of business plan that provides an outline of a strategic tool to make your business flourish. It is a roadmap to do your self-storage business without having to go through a lot of risks that go with the job.

Why is it always important to have a business plan?

The reason why a lot of business owners use a business plan is to help them avoid risks that go with the business. It also helps them by giving them a guide to what works and what does not. Without a business plan, most businesses may not be as successful as those with business plans.

What should not be in a self-storage business plan?

What should not be in a self-storage business plan is strategies that are too impossible to do. Strategies should be doable. These strategies help you with your business.

A self-storage business is like any other kind of business. It will need a business plan that will help it flourish. When you have no idea as to how to start one, you can always outline and draft. Define your goals and objectives; you must know what you want to expect in your business plan and go from there.

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Self Storage Unit Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Real Estate Industry » Storage Unit

Are you about starting a self storage unit business? If YES, here is a complete sample self storage unit business plan template & feasibility study you can use for FREE .

If you live In the united states and are interested in owning a business portfolio in the real estate industry and you have not made up your mind on what kind of business to engage in, then you should consider starting your own self storage unit business .

Although, you can also start a self – storage business in London or some couple of cities in Canada and Europe, but the United States of America still remains the only country where this type of business is indeed a big industry. First and Foremost, what you need to do before venturing in into self – storage business is to carry out your survey.

A Sample Self Storage Unit Business Plan Template

1. industry overview.

Self – storage units are mini storage spaces created for people to store their belongings for a short period of time, i.e. on a monthly basis and it is subject to renewal. The storage space could be lockers, rooms, boxes, containers or even an empty space in a secured environment. It is important to state that self – storage unit isn’t open for people to rent and live in it.

It is strictly for storing of personal belongings and goods. For instance’ if you rent a storage space, in a facility, you will be the only one with the key to the storage unit / space and as such the goods you choose to store in your space won’t be covered by the facility insurance.

In the united states, the Self – Storage and Warehouse Facility Leasing industry experienced a solid rebound over the last five years.

It is important to state that with increase in demand from households and businesses the revenue generated in the industry is expected to continue to experience appreciable growth and indeed there is a bright future for players in the industry.

Other factors that will boost revenue growth for the industry are steady population growth, increases in the residential rental market, rising per capita disposable income and the number of relocations by families and individuals.

The entry barriers for new operators in this industry can vary significantly by state and city. Overall, barriers are moderate, but are increasing across the United States. Costs to purchase or lease land or facilities vary across regions and are a major barrier to entry.

These expenses can be more manageable, though, in well-established, highly populated cities, whereas land costs can be significantly lower in smaller cities and suburban regions. There are several regulatory requirements that must be met by companies in the storage and mini warehouse business. The most difficult of these generally relates to zoning and land development conditions

The Self – Storage and Warehouse Leasing Facility industry is indeed a large industry and pretty much thriving in developed countries such as United States of America, Canada, United Kingdom, Germany, Australia and Italy et al.

Statistics has it that in the United States of America alone, there are about 32,437 licensed and registered self – storage and warehouse leasing facilities responsible for employing about 131,990 employees and the industry rakes in a whooping sum of $33bn annually with an annual growth rate projected at 6.1 percent. Public storage Inc. is the market leader in this industry.

Right from when self – storage unit became a business enterprise in 1958 in Fort Lauderdale – Florida, loads of investors have made money from the industry and loads of investors are still making huge profits from this line of business and the industry is still very much open for new investors. It is indeed a capital intensive business and at the same time, highly profitable especially if you are strategically located.

Over and above, starting a self – storage and warehouse leasing business in the United States of America can be started by anybody as long as you have the start – up capital to acquire a property and then design the property to fit into the purpose you want to use it for.

2. Executive Summary

Safe Lock® Self – Storage and Warehouse, LLC is a licensed, standard and secured self – storage and warehouse facility that will be located in a growing community in Asheville – North Carolina. Our basic aim of setting up the business is to make available self – storage and warehouse facility for our clients who are resided in Asheville and neighboring cities.

We have been able to secure a standard facility in a central and easy to locate location in Asheville. Our self – storage facility has a Five-by-5-foot storage spaces, Five-by-10-foot storage spaces, 10-by-10-foot storage spaces, 10-by-15-foot storage spaces, 10-by-20-foot storage spaces, 10-by-25-foot storage spaces, and 10-by-30-foot storage spaces available for rental or short – term leasing. We are well equipped to services the whole of the community as well as visitors and travelers.

We conducted a thorough research and feasibility studies and we were able to come to the conclusion that Asheville community is the right place to start our sport and recreation facility. We will ensure that we offer our facilities at an affordable fee that won’t in any way put a hole in the pocket of our clients.

At Safe Lock® Self – Storage and Warehouse, LLC, our client’s best interest would always come first, and everything we do is guided by our values and professional ethics.

We will offer trusted self – storage and warehouse facility services to all to our individual clients, and corporate clients and also ensure that we work hard to meet and surpass our clients’ expectations whenever they rent or lease our self – storage facilities.

Safe Lock® Self – Storage and Warehouse, LLC will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.

Our plan is to position the business to become one of the leading brands in self – storage and warehouse line of business in the whole of Ashville, and also to be amongst the top 20 self – storage and warehouse companies in the United States of America within the first 10 years of operations.

Safe Lock® Self – Storage and Warehouse, LLC is owned by Pearce Gordon and Henry Michael his business partners for many years.

The business will be managed by both of them since they have adequate working experience to manage such business. Pearce Gordon has well over 10 years of experience working at various capacities in the real estate industry in the United States of America.

3. Our Products and Services

Safe Lock® Self – Storage and Warehouse, LLC is in the self – storage and warehouse facility business to provide safe short – term storage facilities for residence of Asheville – North Carolina which is why we have been able to put up a facility that can help us achieve the goal.

We are optimistic that everyone who make rent or lease our self – storage and warehouse facility will definitely derive huge value for their money. These are the amenities and services that will be made available to our clients;

• 5-by-5-foot storage spaces
• 5-by-10-foot storage spaces
• 10-by-10-foot storage spaces
• 10-by-15-foot storage spaces
• 10-by-20-foot storage spaces
• 10-by-25-foot storage spaces
• 10-by-30-foot storage spaces
• Leasing or rental of mini warehouses and self-storage units
• Rental of self-storage warehousing
• Rental of coin operated lockers
• U-lock storage
• Other facility operation

4. Our Mission and Vision Statement

• Our Vision of starting Safe Lock® Self – Storage and Warehouse, LLC is to build a hedge brand that will become one of the top choices for residents and businesses in the whole of Ashville – North Carolina.
• Our vision reflects our values: integrity, service, excellence and teamwork.
• Our mission for establishing Safe Lock® Self – Storage and Warehouse, LLC is to build a standard and well – secured self – storage and warehouse facility that can favorably compete in the industry in the United States of America and in the world.

Our Business Structure

Safe Lock® Self – Storage and Warehouse, LLC is in business to become the leading self – storage and warehouse facility in the whole of Asheville – North Carolina and we are fully aware that it will take the right facility, management and organization – structure to achieve our goal.

We will ensure that we recruit only the best hands that can help us achieve all that we are set to achieve. Our business will not be built only for the purpose of giving our members / customers value for their money, but also we will ensure that we make our work environment highly conducive for all our employees.

We will provide them with facilities that will help them stay motivated and deliver on their various tasks and goals et al. In view of that, we have made provisions for the following positions to be occupied by highly qualified and experienced staff;

• Chief Executive Officer

Facility Manager

Admin and HR Manager

Marketing and Sales Executive

• Customer Care Executive / Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Office:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Responsible for handling leasing or rental of mini warehouses and self-storage units
• Responsible for handling rental of self-storage warehousing
• Responsible for handling rental of coin operated lockers
• Responsible for handling U-lock storage rentals
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Handle other facility operations such as repairs and renovations et al
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Design job descriptions with KPI to drive performance management for clients
• Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Oversees the smooth running of the daily office activities.
• Identify, prioritize, and reach out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of relevant projects.
• Writes winning proposal documents, negotiate fees and rates in line with company policy
• Responsible for handling business research, marker surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develop, execute and evaluate new plans for expanding increase sales
• Document all customer contact and information
• Represent the company in strategic meetings
• Helps to increase sales and growth for the company
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• create reports from the information concerning the financial transactions recorded by the bookkeeper
• Prepare the income statement and balance sheet using the trial balance and ledgers prepared by the bookkeeper.
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the company
• Serves as internal auditor for the company

Client Service Executive / Front Desk Officer

• Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the manager in an effective and timely manner
• Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
• Receives parcels / documents for the company
• Distributes mails in the organization
• Handles any other duties as assigned my the line manager

Security Officers

• Ensures that the facility is secured at all time
• Control traffic and organize parking
• Gives security tips to staff members from time to time
• Patrols around the building on a 24 hours basis
• Submit security reports on a weekly basis
• Any other duty as assigned by the facility manager.

6. SWOT Analysis

Safe Lock® Self – Storage and Warehouse, LLC engaged the services of a core professional in the area of business consulting and structuring to assist the firm in building a well – structured self – storage and warehouse rental business that can favorably compete in the highly competitive self- storage and warehouse services industry.

Part of what the team of business consultant did was to work with the management of our organization in conducting a SWOT analysis for Safe Lock® Self – Storage and Warehouse, LLC. We hired the services of Dr. Garry Larson, a HR and Business consultant with bias in business structuring to help us conduct SWOT analysis for our company and he did a pretty good job for us.

We know that if we get things right before starting our self – storage and warehouse rental business, we will not have to struggle before attract loyal clients and building the business to a level where we can easily breakeven in record time.

Here is a of the result we got from the SWOT analysis that was conducted on behalf of Safe Lock® Self – Storage and Warehouse, LLC, Asheville – North Carolina;

One of the obvious strength that will definitely stand as a plus for Safe Lock® Self – Storage and Warehouse, LLC is the fact that our facility is centrally located in a densely populated – residential area in Asheville – North Carolina; our location and high level of security is in fact our major strength.

We equally have a team that can go all the way to give our clients value for their money; a team that are trained and equipped to pay attention to details and to deliver excellent services. Lastly our rental package is one of the best that anybody living in Asheville – North Carolina can get; it is cheap and affordable.

We critically looked into our Business model and we were able to identify two major weakness. One is the fact that we are a new business and the second is the fact that we may not have the financial resources required to match up with existing and well established self – storage and warehouse facility rental companies when it comes to acquiring large facilities in choice areas.

• Opportunities:

We are centrally located in one of the busiest area and densely populated area in Ashville – North Carolina and we are open to all the available opportunities that the city has to offer. We will be open 24 hours in a day during weekends (Fridays to Sundays) and from 6:00 am to 12 midnight from Mondays to Thursdays giving us the advantage to leverage on any available opportunity.

Some of the threats that are likely going to confront Safe Lock® Self – Storage and Warehouse, LLC are unfavorable government policies, demographic / social factors, downturn in the economy which is likely going to affect consumers spending and lastly, the emergence of new competitors within the same location where our self – storage and warehouse facility is located.

7. MARKET ANALYSIS

• Market Trends

The trend in the self – storage and warehouse rental industry is such that if a self – storage and warehouse facility is well positioned in a residential area or a place where people can easily access without much stress, there is the likelihood that the facility will enjoy high patronage.

Just like in other business ventures, the owner of self – storage and warehouse facilities are always looking for ways to increase their market share; they go as far as signing deals with merchants, importers and also business men and women   et al to make use of their facility.

It is a common trend that as self – storage and warehouse facility grow (fully occupied throughout the year), it becomes necessary for them to develop new service offerings or install new facilities that will help them attract more people. In order words, it is very important for self – storage and warehouse facilities to continue to improvise if they want to grow their business and generate their target revenues.

8. Our Target Market

We are aware of the fact that for any business to thrive so well in profit, it has to first and foremost define its market. The target market for self – storage and warehouse facilities cuts across people of different walks of life. The fact that people would need a secured place to keep their properties for a short period of time makes the self – storage and warehouse rental business a thriving and growing business.

Safe Lock® Self – Storage and Warehouse, LLC will work towards providing services, facilities and environment that will help us reach out to our target market. These are the category of people that we intend marketing our self – storage and warehouse facility to;

• Working Class Adults / Corporate Executives
• Sport Clubs (soccer team, athletics team and choreographers et al)
• College Students / Schools
• Community an Corporate organization
• Business People / Entrepreneurs
• Government Officials
• Religious centers (Crusade Teams)
• Merchants, Importers and manufacturers
• Sports Men and Women
• Construction companies

Our Competitive Advantage

We also know that competition is one of the best things that could happen to a business because it makes any business tap more from within and be at their best at all times. No doubt, the Self – Storage and Warehouse Rental industry is indeed a profitable and highly competitive industry.

Clients will only rent your self – storage and warehouse facility if they know that your facility is highly secured and spacious enough to contain whatever property they want to store in your facility.

Our competitive advantage is that Safe Lock® Self – Storage and Warehouse, LLC is centrally located in a densely populated – residential area in Asheville – North Carolina; our location and high level of security is in fact our major strength.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (self – storage and warehouse facility rental businesses in the United States) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Safe Lock® Self – Storage and Warehouse, LLC is established with the aim of maximizing profits in the Self – Storage and Warehouse Facility Rental industry and we are going to go all the way to ensure that we do all it takes to attract both individual clients and corporate clients on a regular basis and to ensure that our facilities are fully occupied at any given time.

Safe Lock® Self – Storage and Warehouse, LLC will generate income by offering the following amenities and services;

10. Sales Forecast

From the very beginning it pays to have a sales forecast because this helps to go the extra mile in working so hard to meet the sales goals. It is important to state that our sales forecast is based on the data gathered during our feasibility studies and also some of the assumptions readily available on the field.

It would be hard to create a sales forecast with a newly opened business like self – storage and warehouse facility rental business. This is simply because the statistics that will be provided will be on a short term basis.

Experts said that usually a business should be in operation for at least one year before they can generate the statistics that will be need to help in accurate forecasting; statistics should be at least one year old in order to show the trends and pattern in consumer spending.

We expect to attain 65 percent occupancy of our self – storage and warehouse facility within our first year of operations and then in subsequent year we will grow to full occupancy (between 80 and 100 percent occupancy). Below are the sales projection for Safe Lock® Self – Storage and Warehouse, LLC, it is based on the location of our facility and the services and amenities that we will be offering to our clients;

• First Year-: $200,000
• Second Year-: $450,000
• Third Year-: $750,000

N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major competitor offering same additional services as we do within 4.5 miles radius from our self – storage and warehouse facility.

• Marketing Strategy and Sales Strategy

Our marketing strategies will be directed towards achieving specific objectives that support the strategic goals of the organization.

The truth is that all we do will be geared towards creating new market channels, increasing sales and increase our market share. We will leverage on improving on our services and facility to ensure that we win new clients and retain old clients.

At Safe Lock® Self – Storage and Warehouse, LLC, our marketing strategies will be consistent throughout the marketing mix and we will take into consideration facility improvement, promotion, and price. As part of our sales and marketing strategies, we will pay attention to the promotion of our self – storage and warehouse facility so as to attract people to rent or lease our facilities.

Our unique selling proposition is that we are well positioned and people can easily access our facility, our prices are affordable and we have a complete package for families, schools and sport clubs. Part of the marketing and sales strategies that we will adopt are;

• Open our self – storage and warehouse facility with a big party.
• Advertise our self – storage and warehouse facility on community based newspapers, local TV stations and local radio station
• Promote our self – storage and warehouse facility online via our official website and all available social media platforms
• Introduce our self – storage and warehouse facility by sending introductory letters alongside our brochure to businesses, sports clubs, schools, corporate organizations, households and key stake holders in Asheville – North Carolina
• Print out fliers and business cards and strategically drop them in offices, libraries, public facilities and train stations et al.
• Delivering consistent customer experiences to all our members; making our first impression count positively to those renting or leasing our self – storage and warehouse facility for the first time
• Make use of attractive hand bills to create awareness and also to give direction to our self – storage and warehouse facility
• Adopt direct mailing coupon marketing approach
• Position our signage / flexi banners at strategic places in and around Ashville – North Carolina
• Create a loyalty plan that will enable us reward our loyal clients especially those that refers their family members and friends to us
• Engage on road shows within our neighborhood to create awareness for our self – storage and warehouse facility.

11. Publicity and Advertising Strategy

We have been able to work with our branding and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.

We are set to become the number one choice for both corporate clients and individual clients in the whole of Asheville – North Carolina which is why we have made provisions for effective publicity and advertisement of our self – storage and warehouse facility.

Below are the platforms we intend to leverage on to promote and advertise Safe Lock® Self – Storage and Warehouse, LLC;

• Place adverts on both print (community based newspapers and magazines) and electronic media platforms
• Sponsor relevant community based events
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our brand
• Install our Bill Boards on strategic locations all around Asheville – North Carolina.
• Engage in road show from time to time in targeted neighborhoods
• Distribute our fliers and handbills in target areas in Asheville
• Contact corporate organizations, sport clubs, households and schools by calling them up and informing them of Safe Lock® Self – Storage and Warehouse, LLC and the services and amenities we offer
• List Safe Lock® Self – Storage and Warehouse, LLC on local directories / yellow pages
• Advertise our self – storage and warehouse facility in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our corporate logo et al.

12. Our Pricing Strategy

Our pricing system is going to be based on what is obtainable in the industry, we don’t intend to charge more (except for premium and customized services) and we don’t intend to charge less than what our competitors are charging their members in Asheville – North Carolina.

Be that as it may, we have put plans in place to offer discount services once in a while and also to reward our loyal customers especially when they refer clients to us or when they rent or lease of facility for a longer period. The prices of our services will be same as what is obtainable in the United States’ open market.

• Payment Options

At Safe Lock® Self – Storage and Warehouse, LLC, our payment policy will be all inclusive because we are quite aware that different clients would prefer different payment options as it suits them. Here are the payment options that we will make available to our clients;

• Payment by via bank transfer
• Payment via online bank transfer
• Payment via POS machine
• Payment via check
• Payment via bank draft
• Payment via mobile money
• Payment with cash

In view of the above, we have chosen banking platforms that will help us achieve our plans with little or no itches.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting a self – storage and warehouse facility rental business; it might differ in other countries due to the value of their money. However, this is what it would cost us to set up Safe Lock® Self – Storage and Warehouse, LLC in the United of America;

This is the key areas where we will spend our start – up capital on;

• The Total Fee for Registering the Business in North Carolina – $750.
• Legal expenses for obtaining licenses and permits – $1,500.
• Marketing promotion expenses (8,000 flyers at $0.04 per copy) for the total amount of $10,000.
• Cost for hiring Business Consultant – $5,000.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $30,800.
• Cost of accounting software, CRM software and Payroll Software – $3,000
• Cost for leasing facility for the self – storage and warehouse facility – $500,000.
• Cost for facility remodeling – $250,000.
• Other start-up expenses including stationery – $1000
• Phone and utility deposits – $3,500
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
• The cost for Start-up inventory – $15,000
• Cost for acquiring security locks, CCTV and other security wares – $200,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, tables and chairs et al) – $4,000.
• The cost of Launching a Website – $600
• The cost for our grand opening party – $15,000
• Miscellaneous – $15,000

We would need an estimate of $1.5 million to successfully launch a standard and well – equipped self – storage and warehouse facilities in Asheville – North Carolina. It is important to state that the testing and evaluating expenses would be high because of the large amount of needed to secure a large facility in a good location.

Generating Funding / Startup Capital for Safe Lock® Self – Storage and Warehouse, LLC

Safe Lock® Self – Storage and Warehouse, LLC is a business that will be owned and managed by Pearce Gordon and his friend and business partner Henry Michael. They are the sole financial of the business which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings and sale of his stocks
• Generate part of the start – up capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $500,000 (Personal savings $350,000 and soft loan from family members $150,000) and we are at the final stages of obtaining a loan facility of One Million USD from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Safe Lock® Self – Storage and Warehouse, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to rent or lease of our self – storage and warehouse facility is to ensure that our facility is not just strategically locate, but also highly secured and affordable.

Safe Lock® Self – Storage and Warehouse, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of ten years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• Business Name Availability Check:>Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Acquiring facility and remodeling the facility to fit into our self – storage facility and warehouse: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the Needed office appliances and security gadgets and software: In Progress
• Creating Official Website for the Company: Completed
• Creating Awareness for the business both online and in the neighborhood: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress.

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Self-storage Business Plan: All You Need To Know

What is a self-storage business plan, why do you need a business plan for your self-storage business, components of a self-storage business plan, do you need a professional to write your self-storage business plan, difference between a self-storage business plan and a self-storage business model, challenges of writing a self-storage business plan, self storage business plan examples.

Free Self-storage Business Plan Template

A business plan is necessary if you intend to open a new self-storage facility or develop an existing one. The major things that need to be mentioned in each component of your business plan for a storage facility are discussed below.

A self-storage business plan outlines your growth strategy for the coming five years and gives a full overview of the operation of your self-storage business. It outlines your company's objectives and your plan for achieving them. Market research is also included to help you with your ideas.

You need a business plan if you want to launch a self-storage or storage unit company or expand an already successful one.

A business plan will increase your chances of success by assisting you in obtaining capital, if necessary, and planning the expansion of your self-storage company. As your firm develops and evolves, you should regularly update your self-storage business strategy.

Be sure to take into account the operational requirements needed to run this business in addition to the original planning process. Fortunately, self-storage facility investments are usually appealing since operational costs are often inexpensive.

Make sure the following elements are included in your business plan:

Executive Summary

An executive summary is a condensed description of your company. Imagine it as the very first subject you would mention in a discussion about your company. An executive summary for a self-storage enterprise, for instance, would begin as follows:

This business's goal is to build and run a 100-unit complex on a piece of property outside.

Or you can try this:

This business endeavor sorts for and purchases quality self-storage properties in minor markets. To boost revenue within the next two years, the company will remodel and upgrade its facilities with the newest technology.

An executive summary should continue by summarizing and highlighting important sections of your company's plan, such as predicted revenue and total costs.

Business Description

This section should contain our company structure: sole proprietorship, LLC, C- or S-corporation.

You may outline the specifics of how your self-storage company will function here. Include operational information about your company, such as branding, services that you intend to provide, and anticipated costs, in addition to your legal status.

Today, more than ever before, businesses have been equipped with cutting-edge phone systems, user-friendly applications, and online payment options. Although these features aren't always required for success, having a small number of tech-powered solutions will give you an advantage. Think about the adoption of these devices as soon as possible.

Think about your employment strategies, insurance requirements, and upkeep practices, among other things. Besides self-storage rents, take into account other revenue streams like the sale of renter's insurance or moving materials.

Market Research and Strategy

In this section of your business plan, summarize your most important results from the market analysis you previously conducted and explain how they influence your concept for a self-storage business.

Analyze the supply and demand dynamics and demography of your target market. For instance, you may think about providing RV storage if people ask for it. Make a plan for how you'll generate income and acquire new tenants through techniques like billboard marketing, and digital marketing.

The self-storage market has its own dynamics, just like any other industry. You may carry out a self-storage project more successfully if you are aware of these tendencies.

Management and Personnel Structure

The key players in your self-storage industry are discussed in this section. Explain the executive team's background, credentials, and responsibilities as well as any extra staff you may have on hand or may need to employ in order to carry out your strategy.

Financial Reporting Documents

Is your business concept for a self-storage facility financially/commercially sustainable? You can now prove it by outlining the specifics of your financial condition. What are your possessions and obligations? Will you have to pay back your debt?

The predicted cash flow, balance sheet, and profit and loss for your company for the coming two to three years should all be included in this area.

Developing your self-storage business plan all by yourself may not be a smart move. It is too vital to create on your own. Would you appear in court unrepresented by a lawyer? Would you release an app without a software developer?

However, even if it is recommended to collaborate with a professional, you might want to explore working on your initial draft by yourself.

The effort behind the initial draft should come from you and you alone. You may contact a business consultant for guidance on the right approach for your specific business plan or have one edit it later.

A self-storage business’s backbone is its business model, while its structure is its business plan. Therefore, a business model is the basic idea of the company, strategies for generating revenue, as well as an explanation of how it works. The business plan goes into great depth to demonstrate how this concept may operate.

Actually Starting

Be rest assured that we can all relate to how challenging this is. As a first step, it is recommended that you keep your plan to one page.

You may think that this is impossible, but it is not. Though it is not going to be the finished body of work, it serves as a canvas to plot the structure of the potential result of the main self-storage business plan.

It is a visual tool, a means to brainstorm your ideas into something more organized, built on the basic elements of your plan.

Once you've assembled the building blocks, you've already laid the groundwork for a solid business plan. It makes a lot more sense to do this than to isolate yourself in a space and try to produce a 20-page document in one go.

Budgeting and Financing Estimates

Budgeting and financing for self-storage businesses can feel overwhelming, and because the statistics appear more restrictive, the financial aspect of a business plan does seem to stimulate the most concern.

On the other hand, your business plan is meant to assist you with preparing for the future and scaling your business. Also, note that they are estimations, not forecasts, and there are no wrong or right figures. When you approach them in this manner, they become significantly less intimidating.

Make sure that you're systematic about it. One smart way to do it would be to begin from the bottom and work your way back up. You know how much money you want your company to generate, so figure out how much each part of our self-storage products and services should bring in.

Also, find out what your expenditures may possibly be in order to meet that goal. It sounds simple, yet it is so quickly forgotten. Remember, these are YOURyour figures. Don't be compelled to just select a template and fill it out yourself. Begin with the fundamentals and then link the dots.

Knowing Your Demographics

The most difficult challenge for a growing self-storage business is resisting the temptation to let the perceived momentum of their performance be the basis for broadening their opportunities.

Also, you want to be approachable. However, resist the urge to say yes to everyone and everything. Reacting to who you work with and saying yes to everybody rather than going after specific people that you know you want to work with will simply spread the value you provide clients too thinly and dilute what you do best.

It is critical to understand your target audience. You may utilize a categorization tool like 6SenseRevenueAI, which uses a scoring system to meticulously identify distinct tiers of consumers.

Not only does it keep you informed about your present customer base, but it also serves as a superb screening tool to determine whether new client leads are strong or just something put in to expand your net and weaken your value to your important clients.

Making It Interesting

Anything "interesting" is always conveyed with enthusiasm. Imagine you're chatting to a stranger, you've told them about your self-storage company, and they ask you a question—a passionate tale about how you are of service, the kind of people you help, as well as who you might be able to help in the future, should most likely follow.

That's significantly more intriguing than a scripted sales speech peppered with figures and statistics.

Below, we have included various business plan samples for your self-storage company launch to assist you in developing your own business plan:

• OGS Capital self-storage business plan samples
• Sample.net self-storage business plan samples (PDF)
• SampleTemplates self-storage business plan samples (MS word, google docs, PDF.)
• Examples.com self-storage business plan samples
• ExpertHub self-storage business plan sample

Below is a self-storage business plan template that outlines the important components of a successful self-storage business plan for your guidance.

Above all, in the marketing/management section of your business plan, you should indicate the need for an authentic self-storage property management system. The PMS should feature a sophisticated client management system, single app control, and a richer experience for all.

Your self-storage facilities can be maintained efficiently and optimized using the Booking Ninjas self-storage property management system , enabling you to better manage your clients. With our one-stop system, you may benefit from remote access, ticketing and POS systems, online customer acquisition, and much more. It is time to improve your storage.

We are glad to share our knowledge by giving this preparation guide and application to assist you in getting started in the profitable self-storage industry.

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Starting a Self Storage Business in 2024: Ultimate Guide

In this extensive guide, we delineate how to start a self storage business.

The self storage industry is a rapidly growing market that provides vital services for individuals and businesses who need to store their belongings. There are various self storage units available and several ways to start your own self storage business.

To start a self storage business, one must first understand the basics and then learn how to run a self storage business. This entails finding out what the market needs and identifying potential customers.

As complex as these may seem, we’ve compiled all you need to know and how to go about the entire process in this extensive guide. We’ll walk you through the process of starting your self storage business. We’ll cover the basics of a self storage facility, how to find a location, and what you need to get started, including setting up reliable self storage software .

Download the ultimate Self Storage e-book

Everything you need to know about setting up your self-storage facility.

Important Trends of the Self Storage Business You Must Know

Before outlining the process of starting a self storage business, let’s examine what the self storage niche entails and associated trends.

What Is a Self Storage Business?

A self storage business is a venture that provides consumers with their own space to store goods. The enterprise has exploded in popularity over the past few decades, hitting a global market value of $51.32 billion in 2021 .

A Chron report indicates that over 80% of self storage facilities are privately owned and operated. This means people use private self storage facilities for storing their belongings more often than government-owned enterprises — the latter make up only 30% of self storage clients.

Customers who require storage space for travel or a temporary move tend to take advantage of the ease and adaptability offered by self storage services. Similarly, businesses typically deem renting a storage container as a more cost-effective means to accommodate their goods than moving to larger quarters.

With self storage, there’s no binding long-term commitment, and this in itself is a significant selling point that attracts patronage. Notably, the average person rents storage space for 11 months, and the average business rents for 24 months. This flexibility makes it a good fit for a wide variety of customers’ demands.

Why Should You Invest in Self Storage?

A self storage business is usually successful because it provides an essential service that many people need. The more people who need this service, the better for your business.

If you decide to start a self storage business, know that you won’t be alone. The need for storage space has increased in recent years, leading to the proliferation of storage facilities in unexpected places like shopping malls and downtown areas.

A fairly recent Multi-Housing News post opined that the self storage industry is more resilient to economic downturns than most sectors of the real estate market. Self storage units continue to be a valuable solution for the storage needs of modern society as more and more people relocate and need somewhere to keep their valuables.

Want to learn more about self storage investment , check out the below figure from Self Storage Association Asia .

There are speculations that the self storage market presents fewer complexities than residential housing since the human element is less pronounced in the former. A facility manager may have to deal with tenants, for instance, if they can’t keep up with payments, but otherwise, their paths rarely intersect. However, it’s not a passive investment and has more in common with retail than real estate.  For more data-driven insights on why investing in self-storage is a wise decision, check out our self storage industry statistics .

How to Start a Self Storage Business: A Step-by-Step Guide

1. Find a Suitable Location.

For a company to be successful, it must first be able to meet a need in the market.

Customers may be hard to come by if you set up shop in an area where the demand is already satisfied. On the other hand, if you pick a spot with commercial potential but few existing businesses, you increase your odds of attracting and retaining customers. Hence, it’s vital to identify your options before settling on a spot.

It’s no secret that densely populated regions have a greater need for self storage options. Cities with a variety of housing options benefit greatly from them as well. Similarly, people downsizing or staying in an apartment temporarily often choose to keep their items in storage until they can move into a larger dwelling.

In summary, ensure a sizable customer base in the area before settling on a permanent site for your company. Also, see if any nearby storage facilities aren’t in use and may benefit from some redesign or upgrade. Considering the growing demand for versatile and cost-effective storage solutions, starting a shipping container storage facility could offer a unique opportunity within the self-storage market, combining flexibility with efficiency.

2. Develop a Business Plan That Outlines a Detailed Strategy for Success.

Including critical information about your self storage business in your business plan is crucial. Your business plan needs to outline everything from your target market and how you want to reach them to how you intend to run your company financially and operationally in the first few years.

When starting a business, every company needs a business plan. A credible business plan is crucial to attracting investors or acquiring funding from outside sources, with most financial institutions requiring one before loan approval. A well-thought-out business plan can serve as a powerful catalyst for your company’s development by helping you reach your goals and circumvent potential roadblocks.

You can develop a business plan independently, as many examples are available online . Other options include hiring a professional business plan writer or enlisting the services of a nonprofit organisation like SCORE , which provides free business counselling.

Remember that the business plan for an already operating self storage facility will differ significantly from a brand-new site’s.

Although business plans should be written with the specific needs of the company in mind, a self storage facility business plan would typically include the following elements:

• Mission statement
• Vision statement
• Ownership structure
• Sources of capital
• Revenue streams
• Market research analysis
• Competitive analysis

3. Obtain the Funding Required to Launch Your Business.

Self storage facilities have lower startup and development costs than many other businesses. There are, however, expenses to look into/consider.

Locate a suitable storage facility that can be used as is or modified into units with minimal effort. Regardless of the path you choose, it’s a good idea to talk to an organisation that provides storage engineering and design services. They’ll be able to advise you on how to best organise your company.

For added safety, double-check that your property is adequately secured and fenced. Locks must be installed on all units and feature a secure key-locking system.

Don’t forget to add the price of having full-time workers on site whenever the business is open. Cleaning materials, upkeep charges, and advertising must also be factored in.

After figuring out how much money you’ll need in the first month of business, you’ll have a better sense of the total amount you’ll require in the first year. As a rule of thumb, you should have enough money to cover at least a year’s operating costs before kickstarting your self storage business.

Are you thinking of how to start a self storage business with no money?

A small business loan could be an option if you lack the necessary funds to launch your self storage business. Alternatively, you could seek appropriate investors to join forces in the early stages of your company’s development.

4. Acquire All Necessary Licences and Permits.

Never launch a business, of any kind, without first securing the appropriate licences and permissions. Such endeavours can lead to severe financial penalties or possible closure of the enterprise altogether.

Carefully investigate the prerequisites for opening a self storage company in your chosen area, such as licences, permits, and registrations. You can discover such information about your town of choice by contacting them directly or looking at their website.

A certificate of occupancy, service contracts, small business permits, and other legal paperwork will be required before you can open for business. In a recently published article, we discussed whether you need planning permission for a storage container business , so you should consider having a read.

5. Make a Marketing Game Plan.

Consistently incorporating a strategic self storage marketing plan into your business strategy is essential for reaching your goals.

At the very least, you should have a website and business cards. Digital marketing services and printed marketing materials, however, can help your firm reach its maximum potential through advertising and promotion.

6. Get a Business Insurance Policy.

Insuring a self storage company requires special considerations. The primary service (the rental of self storage units) can’t be separated from the facility itself.

Insuring your commercial structure is a no-brainer because if a customer is injured while visiting your establishment, general liability insurance might help cover the costs. Storage facility insurance provides additional, specialised protection for the assets of self storage business owners beyond the basic coverages mentioned above.

You may modify your self-service storage insurance in various ways to meet your requirements. One method is to offer clients the option of purchasing additional property liability insurance. This may seem extremely kind, but it’s good business sense; we’ll explain how.

The cost of this insurance may be much lower than the expense of defending against negligence claims for failing to safeguard customers’ property when you had the opportunity to do so. You gain an advantage over the competition by insuring your clients’ property while safeguarding your assets by including this provision in your policy. A lot of storage facilities don’t provide this extra perk.

Your customers’ belongings should be insured, especially if they’re being removed or discarded, which is a unique extra. It’s a bummer to sell or otherwise get rid of the belongings of customers who haven’t paid for them.

This insurance might help cover costs if a client successfully sues for the return of their property after it has been removed. It helps keep costs down and offers some security.

You should also talk to your agent about getting cyber, data, and commercial umbrella insurance . If you run a self storage business that relies on online bookings and payments, cyber and data insurance can help you get back on your feet after a hacking incident by covering the costs of defending your business and replacing lost revenue. As for commercial umbrella insurance, it can assist you in covering any losses beyond your general liability policy’s limits.

Customers visiting self storage facilities are at a higher risk of slipping and falling due to the increased activity of carrying items into and out of a unit. Without a comprehensive insurance plan, you may have to spend more on healthcare and legal fees.

However, commercial umbrella insurance provides excess liability coverage for a reasonable price, ensuring that your organisation can survive a substantial loss. It’s like an insurance policy for your company that ensures it doesn’t shut down when things become rough.

Size, location, number of employees, and other criteria should all be considered when deciding on the best self storage company insurance policy. You may tailor your insurance policy to your specific needs by having an open discussion with a local, independent agency.

7. Define Your Brand.

More than just a name, logo, and slogan, branding encompasses everything that represents a company . It implies all the things people think of when they hear your company’s name.

For example, the widespread recognition of real estate investment trusts (REITs) gives them an edge over regional competitors in the self storage industry. According to G5’s report on why you need a self storage brand , the importance of branding for a self storage operator seeking to compete with REITs and raise their company’s profile is growing. You can carve yourself a niche in the regional market if you prove that your product or service is the best option for your demographic.

Through consistent branding, you attract renters who’ll remain loyal to your business over time. Developing a memorable self storage brand evokes feelings, motivates your messaging, and spreads the word about your services to potential customers in your area.

As you build your business, the following questions should be at the back of your mind:

What makes your space unique from others?

Who’re you trying to reach?

What’s your primary message?

If you can give thoughtful answers to these questions, you’ll be well on your way to building a brand that stands out from the crowd and attracts your target audience.

Build a name that people will recognise and trust to attract more prospective tenants and longer lease terms. Expanding your brand’s reach inside the self storage sector can create a more memorable message and establish yourself as the go-to provider for your target demographic.

Here are some helpful tips when branding your self storage business:

Find Out What Sets You Apart from the Competition First.

Explain what sets your business apart, what problems it addresses for customers, and how you can help them. If a consumer is considering a purchase, why should they opt for your company and not a competitor’s? What specific benefits do you offer to renters that they won’t find in another company?

Develop Your Personas.

Branding also involves researching and cultivating a specific demographic of consumers. Demographics, such as geography, and psychographics, such as preferences, motivations, and behaviours, are factored into creating a complete persona. Using these fictitious archetypes, you’re better positioned to relate to and market to your target demographic.

Examine Your Competitors Through SWOT Analysis.

SWOT is an acronym for “strengths, weaknesses, opportunities, and threats,” which is a common method for analysing a situation. You can use this potent tool to stand up to the competition.

Utilise the SWOT analysis to assess the positives and negatives of your competitors. Figure out how to counteract their advantages and take advantage of their flaws. By conducting a SWOT analysis, your organisation can avoid pitfalls and seize the possibilities presented by your rivals.

Create a Distinct Visual Identity for Your Brand.

Your promotional materials—from your website to your ads to your billboards—should look professional and draw in potential customers. Make sure that the primary selling points of your brand are prominently outlined on your website, above the fold, before your visitors have to scroll.

Picking a colour scheme and design that directly addresses your target audience strengthens your brand’s reputation amongst its competitors while increasing your chances of converting visitors into buyers.

8. Create Your Self Storage Business Website, and Invest in Reliable Self Storage Software.

A self storage firm should have a user-friendly website to attract as many consumers as possible. Like with just about anything else, buyers today often begin and conclude their search for self storage facilities online. With that in mind, it’s highly unlikely they’ll come across you if you don’t have a website.

Discussed below are some benefits of having a self storage business website:

Allows You to Take Control of Your Brand.

Unlike with a Facebook or other social media page, you may exert more control over your brand with a personalised website. Your marketing website should be unique by employing your brand’s colours, emblems, and other identifying features. When the website belongs to you, you decide what users can expect.

Makes It Possible to Offer Online Rentals.

Do you want to rent your property online but don’t know how?

Creating a promotional website for your storage facility is the least complicated option.

If you let out units through your website, tenants can reserve a unit at their convenience (day or night) and do the necessary paperwork and rental transactions on their own time. Investing in decent self storage software while setting up your website makes these processes even more seamless for your clients.

Eases The Burden of Payments.

You can expand how your consumers can pay you by launching a website. There’ll be fewer rent arrears if tenants can quickly and easily cover their payments.

If you set up the appropriate automatic billing processes , your tenants can use online tools to manage their accounts and pay their rent. The advantages of accepting payments on your website become readily evident when everything occurs mechanically, and you no longer have to spend time making collections calls.

All these and more are what the Storeganise self storage software offers , making it a must-have for most businesses in this niche.

Makes It Easier for Potential Clients to Find You.

A marketing website increases the likelihood that potential clients will find your storage facility through an online search. You may achieve this by implementing search engine optimisation (SEO) strategies, such as using the appropriate keywords, incorporating title tags and meta descriptions, and ensuring that your website loads quickly and without errors.

9. Enjoy the Process of Managing Your Self Storage Facility.

Self storage business ownership may seem mundane at first, but there are many ways to put your unique imprint on the industry.

Developing the company’s identity through advertising may be fun. Some business owners have found success by incorporating comedy into their marketing strategies, and you never know when your comedic juices will start flowing. The public’s perception of self storage facilities has also been improving recently, making it more likely that local media outlets will want to interview you.

As if that weren’t enough, there are also unintended advantages. If you’ve put money into a sizable area that needs people to run it, you might be in the fortunate position of being able to hire relatives or close friends.

Moreover, you’re likely to encounter certain strange items in units, including taxidermied animals, film celebrity memorabilia, and even an electric chair. That means there’s also a wild side to self storage that, although it won’t harm your business, might offer you some fantastic tales to tell.

However, you shouldn’t let that give you sleepless nights because regulations dictate what can and can’t be kept in storage facilities and what must be done if you need to access and dispose of their contents.

10. Get the Help You Need — Both Technically and Personnel-wise.

Due to the high initial cost of securing land for your storage facility, you must know how much money you’ll need to launch your business.

Customers will feel more at ease leaving their belongings in your care if they’re in a safe and secure area. As a result, you shouldn’t put up shop in a dangerous neighbourhood or somewhere too far from your target audience.

After purchasing land, the bulk of your work will comprise constructing the various storage units your clients would rent. Installing security equipment to keep tabs on the premises is a must. In addition to a computer, a landline phone, a cell phone, a vehicle, and security software, these items will be necessary for the smooth operation of your business. If money is tight, you can get by with somewhat used versions of several things.

As for staffing needs, a storage facility needs the following personnel a start:

• A CEO (this could be the company owner)
• An administrative and human resources (HR) manager
• A business development and marketing executive
• A customer service officer
• An accountant
• An information technology consultant
• A security guard

Today, many people in the United States and the United Kingdom, for example, now use storage facilities to keep their surplus household and commercial items out of the way. Thus, getting started in the self storage industry is quite simple since one only needs to identify a good site and purchase the land to construct the storage facilities.

Once the site is secured and the necessary permits obtained, you may begin construction on storage units of varied sizes, as not all customers will need to keep massive quantities of items.

However, before promoting and renting out the storage units to customers, you must have an attorney prepare the terms and conditions of usage and agreement paperwork.

It is also important to note that even once your business is set up, there will be operating expenses, such as electricity, security, labour, wifi and other ongoing costs.

Should You Buy an Existing Self Storage Facility?

It’s a good idea to purchase an already existing self storage facility, as it’ll save you the stress of finding land and building a new facility. You can renovate the facility according to your tastes and needs and even expand it.

The cost of purchasing an existing self storage facility varies widely, just like the wide variety of self storage options available. This explains why a self storage facility in London would cost tens of millions of pounds, while the same type of facility in rural Carlisle would likely cost less than a million pounds.

If you aren’t a trained real estate agent, you should engage a self storage broker to assist you in your search and purchase. An experienced broker has market knowledge and can negotiate a fair price.

You should buy a facility near your home if you plan to work there full-time. However, location is less of an issue if you want to outsource facility management to a third party. You should check that you and your broker have a solid understanding of the neighbourhood’s market conditions.

How Much Does It Cost to Start a Self Storage Business?

It’s no secret that launching a storage unit business can cost a lot. The cost of construction for a normal single-story building range from $25 to $40 per square foot .

The price per square foot for multi-story structures will be higher than that of single-story ones because of the additional cost of obtaining land. Depending on your location, you can pay between $42 to $70 per square foot for a high-rise apartment.

Building a state-of-the-art facility will require at least 70,000 rentable square feet at $50 to $70 per square foot (not including the land cost). This translates to an investment of almost $3 million to create a cutting-edge establishment.

How do you profit after shelling out that kind of cash?

You should start seeing a profit at about 50–70% occupancy. This becomes even more realistic when you consider that the need for self storage facilities will never go away.

Throughout the year, an ultra-modern, conveniently located self storage facility may easily maintain an occupancy rate of 85–95%. What this means is that your self storage business should generate a respectable profit. Still, you should know when to adjust your marketing plan for when occupancy is high to enable you to reap the most profits.

How Much Profit Can a Self Storage Business Generate?

As was previously said, once occupancy hovers around 50–70%, you can expect to break-even. However, a well-located building can function profitably with about 85–95% occupancy rates, resulting in a net income of around 27% of rental income after deducting all operating expenditures and loan debt payments.

At a yearly rate of $17.04, renting a unit for $1.42 per square foot each month is a good example of how this works out. If your building is 80,000 square feet, you can anticipate a yearly rental income of around $1.4 million and an annual gross cash flow of up to $354,432.

Adding moving truck rental services , moving supply sales, and moving equipment sales could boost your self storage company’s bottom line. Including such services can augment your earnings by up to 5%.

Self storage companies often offer additional services, such as fleet management for vehicles, vans, and moving trailers. The good news is that these companies can function effectively as a unified entity.

As an added service, you can provide moving equipment like furniture pads, hand trucks, and furniture dollies in addition to using your moving vehicles. Selling packing materials, moving boxes, and tape is another option.

Moreover, diversifying into niche storage markets, such as offering specialised facilities for boats, can further enhance your business’s appeal and profitability. Learn more about the specifics of building a boat storage facility to explore this lucrative opportunity.

Final Thoughts

Investing in self storage facilities can be lucrative because the industry is well-established and widely believed to be less labour-intensive than other real estate ventures. Considering the sector’s resilience and that storage space costs far less per square foot than residential property, it may be an especially appealing prospect.

Have you started your self storage business and are looking for ways to strengthen it? Storeganise offers helpful software solutions for self storage businesses, providing them with tools and insights to manage and grow their business. Sign up for a personalised demo to see how we can help!

Frequently Asked Questions

How profitable is a self storage business.

A self storage company is reasonably profitable and offers an excellent opportunity to amass sizable passive annual revenue. Your greatest shot at success is to provide excellent service to your customers and offer additional services like valet storage.

Is It Wise To Invest in a Self Storage Facility?

Yes, it is.

Our research suggests that the allure of investing in self storage facilities hasn’t changed much. These firms do well when times are good and, if managed well, can weather the storms of economic downturn with relative ease.

Why Is the Self Storage Industry Booming?

As a result of the pandemic, more people are looking for ways to declutter their houses by renting out extra space for home offices, relocating to the suburbs, or consolidating their households with relatives. All of these have contributed to a surge in the patronage the self storage industry has recently received.

How Much Can I Charge for Self Storage Units?

The appropriate fee for your self storage units depends on various factors, including unit size, location, items’ value, the unit’s unique features (e.g., climate control ), and the rent period. In the UK, for example, the Self Storage Association (SSA) UK annual industry report pegs the average price of renting a storage unit at £23.94 per square foot annually.

While you may charge more or less, it’s best to keep your pricing as low as possible while still making a profit. At the same time, knowing when to raise prices and how to do so without angering customers is essential.

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How to make a self-storage business plan, 1. write down both your mission and vision statement for your business, 2. know who your target audience should be, 3. state how your storage spaces should be used, 4. point how much you’re going to need to start and run your business, 5. come up with the marketing plan for your self-storage business, 6. write down your executive summary, more in plan templates.

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