Texas State Storage is a proposed self-storage facility in San Marcos, Texas that will provide 46 quality storage units ranging from 10x10 to 30x20. The business plan outlines the target market as students, locals, businesses and visitors. Primary research found that most storage users want carpeted units with shelving and cabinets. Competition is analyzed and the business model discusses revenue projections and incentives. Financial projections show increasing sales and income over three years.
1. Texas State Storage Business Plan
Prepared for:
Dr. Minifie
Department of Management
McCoy College of Business
Texas State University
2 May 2016
Tyler Jaquess
2. Table of Contents
I. Executive Summary pg1
II. Problem pg2
III. Product/Service pg3
IV. Market/Industry Profile: Target Market pg4
V. Market/Industry Profile: Primary Research pg5
VI. Market/Industry Analysis: Industry Analysis pg6
VII. Competition pg7
VIII. Business Model: Client Acquisition pg8
IX. Business Model: Revenue Model pg9
X. Team/Employees pg10
XI. Financials
XII. References
XIII. Appendix
3. 1
Executive Summary
This storage business plan describes a proposed self-storage facility to be established in San Marcos, Texas involving the buildout of a new
facility costing roughly $700,000. Texas State Storage will be located at 905 Hugo Rd. San Marcos, Texas 78666. To get in contact with
Texas State Storage call Hunter Tomlin at 361-392-0517 or Tyler Jaquess at 214-223-2537. Our business will operate as a partnership
corporation, providing quality storage in Hays County. San Marcos is the fastest growing city in the nation with a 31% growth rate and
continuing to rise. Therefore, Texas State Storage would like to supply college students, locals, new residents, businesses, and travelers a safe
place to store their property.
Property can be stolen, lost, or overcrowded. Therefore, we have taken the liberty of creating Texas State Storage to provide the community
of Hays County with a top notch, secure, and an easily accessible facility for their extra belongings.
Our Purpose: Texas State Storage will provide self-storage owners with professional management, consulting services, and a safe
storage environment.
Our Mission: Create and maintain successful relationships with our customers, team members and investors by delivering
excellence in quality and service.
Our Values: Leadership, Integrity, Communication, Teamwork, Excellence, Honesty, and Dedication
to the community of Hays County.
4. 2
Problem
Current storage unit facilities are usually outdated and often infested with rodents. In addition, old storage facilities that have been around for
a while close early and do not provide much access to your property. More than 80% of complaints from consumers to storage companies
correlate with the issue of accessibility. More importantly, a huge issue with modern day storage companies is their lack of options and
choices when deciding on a storage unit. We will have various sized units to fit your needs and likings. Many storage units are plain and do
not have much organization to them. Here at Texas State Storage, we will provide shelving and cabinets to keep your items organized and off
the ground. Keeping your items off the ground is beneficial because we have heard many complaints about mice and varmints in storage
units. We will also have critter control come out once a month to ensure you that no annoying critters will be in your unit.
We realize storage units can be messy, unorganized, and can get dirty. We will have movers on hand that will help you move your
belongings, organize your storage unit the way you desire, or clean up anything you want cleaned. We strive for our customers to do as little
as possible while being completely satisfied with their unit.
5. 3
Product
Texas State Storage will provide 46 quality storage units to Hays County. Half of the units or 23 of them will be climate controlled and the
other half will be regular units. Units will range in size from 10x10, all the way up to 30x20. We will also provide our customers with an
electronic security gate, security guards, a forklift, and moving helpers upon request. Our prices will be very competitive in the market. Our
prices range from $49 to $119. Our customers are provided with the option of a one month, six month, and one year leases, with better
incentives for the longer you lease. Many storage units are not easily accessible and are poor quality. Here at Texas State Storage we will
have an easily accessible facility along with top of the line storage quality. Our units will have carpet, shelving, cabinets, and we will provide
locks. In addition, we will have six total units for automobile or boat storage. We will ensure our customers amazing customer service and
protection.
Texas State Storage will be open 24/7 with a secretary in the office from 7am to 10pm. We will have a website where our clients can go
online to read more about our facility view our facility, pay rent, and ask questions. We believe in good customer service; therefore, any
questions asked will get a response within 24 hours.
Our SIC code is 4225
Our NAICS/ISIB code is 53113
6. 4
Market/Industry Profile: Target Market
Texas State Storage will have a target market of students, businesses, locals, and visitors.
The way we will target students is by having our facility close to Texas State University. The price of our units are cheap, therefore students
can afford them. We know that students go back home for the summer and need a place to store their belongings. We will have a discount
offered to any student that shows their ID and proof of current enrollment.
Businesses always have extra items they need stored so that is where our bigger units will come in handy. They will be able to store their
items in shelves and cabinets to ensure it is off the ground. It will be convenient for businesses being that our facility is located down town
and we offer moving services to make sure all their time is spent on growing their business.
Locals will be able to use our services for extra space. We know how crowded an attic and house can get. We want the people of San Marcos
to enjoy their homes while being able to have their things a few miles away. Locals love to float the river, canoe, and be outdoors. We can
ensure them that they will have plenty of space in our units to store their canoes, tubes, ATVâs, seasonal clothes, etc.
San Marcos has many visitors visiting the river and lakes we have. We want to save visitors the trouble of hauling their boats and vehicles
down from their residents. We will provide premium boat, ATV, and automobile storage for an affordable price for our visitors!
7. 5
Market/Industry Profile: Primary Research
Our primary research was conducted by handing out 50 surveys to students, locals, visitors, and a few local businesses. Our results proved
that the 90% of the community uses or has used storage units. We asked which company had the best storage units in San Marcos and the
results proved scattered among three different businesses. That proves to be beneficial for Texas State Storage being that people would be
willing to try a new facility with a better product and price. The majority of our respondents proved that they would pay movers to help them
move, organize, and clean their units. Therefore, we will provide them with a moving, cleaning, and organizing service.
Our surveys showed that 85% of respondents wished their units had carpet, shelving, and/or cabinets. We believe that by providing these
accessories to our units it will ensure us that our facility is occupied. In addition, the ages of storage users ranged from 18 to 85 years of age.
Our results yielded consistent responses that users prefer the facility to be within 10 minutes from there residency. In addition, the survey
results showed that most users did not like how most facilities closed early and had poor customer service. We will take great pride in giving
our customers the best service at all times.
Our survey indicated that 35% of storage users were dissatisfied
with their current storage facility in San Marcos.
Facility Ranking
AAA Self Storage 1
Uncle Bobâs Self Storage 2
123 Self Storage 3
8. 6
Market/Industry Profile: Industry Analysis
The current size of the market consists of about 16,000 establishments with about $8 billion in annual revenue. Projections show the
storage industry will increase to $30 billion in annual revenue by 2019, which is a substantial increase. This graph represents the
average annual revenue growth projection between years 2015 and 2019.
Our storage company will be entering the market during the growth stage of the service life cycle. During the growth stage, your
business is not a child anymore and is now an adult. Profits do begin to rise, but competition also begins to surface and reduce
potential customers.
The industry trends regarding technology are computer-controlled access systems, key pads, camera surveillance systems, fingerprint
scanning, DVRs, and proprietary software. Products include self-storage, automobile, RV, and boat storage. Demand shifts depend on
location and seasonality. The market does not appeal to a certain group, it appeals to the public as a whole.
8
14
19.2
24.7
30
0
5
10
15
20
25
30
35
2015 2016 2017 2018 2019
RevenueinMillions
Years
Annual Revenue Growth
Years Linear (Years)
9. 7
Competition: Direct Competitors
There are two major direct competitors in the self-storage industry that we have to analyze and differentiate ourselves from such as; Uncle
Bobâs Self Storage and 123 Storage. Through surveys, we have discovered that people are most likely to drive approximately 7 to 9 miles for
storage.
Uncle Bobâs Self Storage: Uncle Bobâs is very helpful, has a clean facility, and has great people. The storage units are well kept and the
people are very friendly. The only downside to Uncle Bobâs Self-Storage facility is the prices are incredibly high prices. The unit sizes they
provide are tiny compared to ours. Their largest unit (5x7) is $75.00/month compared to our smallest unit (10x10) which is $49.99/month to
lease.
123 Storage: 123 Storage is a strong direct competitor that offers a wide range of storage unit sizes, but their weakness is the quality of the
units. We offer storage units that have built-in shelves and cabinets, which gives us a competitive advantage.
Indirect Competitors
AAA Storage: This business is an indirect competitor, because they offer a wide array of other services such as; moving trucks, trailer and
towing, and indoor/outdoor storage units. The downside of this company is that they offer so many different services instead of focusing on
one specific area. This gives good consumer choice but not exceptional quality.
10. 8
Business Model: Client Acquisition
Texas State Storageâs target market are individuals that reside in the San Marcos area that are between the ages of 18 to 70 years of age. We
attempt to focus mainly on individuals with an average disposable income ranging from $25,000-$100,000, but college students are a primary
concentration as well. Marketing strategies will target Hispanic and White males or females since they make up 90.5% of the population in
San Marcos, Texas.
Since social media is rapidly increasing with popularity, we will create a Facebook page that the head secretary will manage. This page will
consist of; our unit sizes, availability, accessibility, appointment information, general information, and other storage features and discounts.
To better or marketing and branding strategies, we will have provide various coupons in the Texas State University College Coupons Book
for students to get additional discounts. You can find these coupons in local bookstores, restaurants, and at Texas State University.
11. 9
Business Model: Revenue Model
The Texas State Storage team has considered all cost factors related to the development of our storage facility. We have chosen three
pricing models to base our business off; commercial and retail, subscription and usage fees, and auction and bids.
Sales Projections
Current storage unit facilities have a few thousand units available, but we will get our competitive edge from the quality of our forty-
six storage units. For example, our regular 10x10 units cost $49.99/month compared to the average price in the U.S., which is $80.00
to $100.00/month to lease. These numbers demonstrate high margins consisting of a 50% to a 62.5% discount rate when leasing with
Texas State Storage.
Incentives
1. If you sign a 12-month lease, you will get two additional months for free.
2. If you sign a 6-month lease, you will receive an additional month free of charge.
3. In addition, one of the best features that Texas State Storage will offer is the 10% discount a customer will receive upon
presenting a valid copy of his/her Texas State University identification card.
12. 10
Texas State Storage Team
Texas State Storage operating hours are twenty-four hours a day, seven days a week. Positions will consist of; two General Managers, four
secretaries, and four security guards. The shifts will be either 12-hour shifts or 6-hour shifts depending on the individualâs schedule.
General Managers: Delegate and run the business according to what the vision and mission of the company is. They will be paid $20.00/hour
and are responsible for training any new employees.
Secretaries: Take calls, book appointments, take walk-ins, co-sign for leases and set them up, have basic accounting knowledge, make
monetary transactions. Each secretary will be paid $9.00/hour and should expect to work long shifts. One of the secretaries will be the head
secretary and will make $12.00/hour.
Security Guards: Monitor and protect the premise from theft. The security guards will be paid $10.00/hour and will be responsible for dealing
with any; theft, loitering or trespassing issues.
13. Financials: Balance Sheet
Year 1 Year 2 Year 3
Assets Assets Assets
Cash $100,000 Cash $464,050 Cash $525,350
A/R A/R A/R
Inventory $0 Inventory $0 Inventory $0
Equipment Equipment Equipment
Equipment $0 Equipment $0 Equipment $0
Less: Depr $0 Less: Depr $0 Less: Depr $0
Net Equipment $0 Net Equipment $0 Net Equipment $0
Building Building Building
Cost $600,000 Cost $600,000 Cost $600,000
Less: Depr -$5,000 Less: Depr -$5,000 Less: Depr -$5,000
Net Building $605,000 Net Building $605,000 Net Building $605,000
Total Assets $705,000 Total Assets $1,059,050 Total Assets $1,130,350
Liabilities Liabilities Liabilities
A/P A/P A/P
Loan $600,000 Loan $598,450 Loan $597,900
Principal $500 Principal $500 Principal $500
Less: Payment $50 Less: Payment $50 Less: Payment $50
Loan Balance $598,450 Loan Balance $597,900 Loan Balance $597,350
Total Liabilities $598,450 Total Liabilities $597,900 Total Liabilities $597,350
Retained Earnings Retained Earnings Retained Earnings
Owner's Equity $0 Owner's Equity $0 Owner's Equity $0
Income $0 Income $0 Income $0
Total RE $0 Total RE $0 Total RE $0
Total Liab. & RE $598,450 Total Liab. & RE $597,900 Total Liab. & RE $597,350
14. Financials: Income Statement Years (2017-2019)
Year One Year Two Year Three
Income Statement
Sales $365,500.00 Sales $357,500.00 Sales $367,500.00
Less: COGS $0.00 Less: COGS $0.00 Less: COGS $0.00
Net Sales $365,500.00 Net Sales $357,500.00 Net Sales $367,500.00
Expenses: Expenses: Expenses:
Supplies -$600,000.00 Supplies -$210,350.00 Supplies -$153,535.00
Taxes -$39,000.00 Taxes -$37,000.00 Taxes -$42,000.00
Depreciation $0.00 Depreciation $0.00 Depreciation $0.00
Interest -$2,500.00 Interest -$2,500.00 Interest -$3,000.00
Total Expenses -$641,500.00 Total Expenses -$249,850.00 Total Expenses $198,535.00
Net Income -$274,050.00 Net Income $107,650.00 Net Income $168,965.00
18. References
Research
"The Growth of Self Storage: Market for Improved Visibility." Self-Storage Web Design & Management Software. N.p., n.d. Web. 02 May
2016.
"Self-Storage Still Attractive, but Good Deals Will Be Harder to Find in 2015." Self-Storage Still Attractive, but Good Deals Will Be Harder
to Find in 2015. N.p., n.d. Web. 02 May 2016.
"Self-storage Industry Statistics." The Spare Foot Storage Beat. N.p., 26 May 2015. Web. 02 May 2016.
"Feasibility Studies and Site Selection | Learn Self Storage." Learn Self-Storage. N.p., 06 July 2014. Web. 02 May 2016.
Photos
"Self-Storage Service | AAA Self Storage in El Paso, TX." AAA Self Storage. N.p., n.d. Web. 02 May 2016.
"123 Storage San Marcos." 123 Storage San Marcos. N.p., n.d. Web. 02 May 2016.
"College Coupons - Coupon Business Directory - Coupon Advertising Resources for Coupon Media Professionals, Designers and
Publishers." College Coupons - Coupon Business Directory - Coupon Advertising Resources for Coupon Media Professionals, Designers and
Publishers. N.p., n.d. Web. 02 May 2016.
âSovran Self Storage." Brands of the Worldâ˘. N.p., n.d. Web. 02 May 2016.
"Self-Storage Units." Champlain Valley Self Storage RSS. N.p., 19 Sept. 2012. Web. 02 May 2016.
19. Appendix
Documents available upon request:
1. Complete list of all financials
2. Primary research
3. Resumes of staff
4. Pricing data
5. Market analysis
6. Logo
7. Legal terms
8. Target market
9. Competitor analysis
10. Revenue model
11. Business model
12. Financial overview
13. Map of business location
14. Management guideline
15. Survey results
16. References