Storage Facility Business Plan Solve Algebra Word Problems Online Free
The clientele of a self-storage business can vary dramatically given the location, pricing, and quality of the facilities.
To begin with, assume that you won't be building the rental storage facility because that immediately adds hundreds of thousands of dollars to your startup costs.
This sounds strikingly self-evident, but the industry has had a number of failures because entrepreneurs new to the self-storage business failed to do the research that would have told them their business plan couldn't be executed – sometimes because the local self-storage market was saturated or because their startup and operations costs were higher than the local market self-storage rates would support.
Often these failures were the consequence of both factors: As the saturation point for storage rentals is approached, owners lower their rates.
The key drivers as assumptions for the plan will include the overall pricing, capacity level, and utilization level.
Other considerations to factor into the model include the marketing budget, cost of capital, and expenses related to sustaining the facility.